Document:

QuickLinks
 -- Click here to rapidly navigate through this document
  

EXHIBIT 4.9  

Confidential
Materials omitted and filed separately with the

Securities and Exchange Commission. Asterisks denote omissions. 

 
 

COMPACT 605 WITH WISMO FLEX AGREEMENT    
    

        This Compact 605 with Wismo Flex Agreement (this "Agreement") effective as of the date of signing of this Agreement (the "Effective Date"), is entered into by and
between: 

        Wavecom Asia Pacific Limited, a company with its principal place of business at Room 501/02, 5th Floor, Shui On Center
6 - 8 Harbour Road, Wanchai, Hong Kong (hereafter, "Wavecom APAC"), 

And

        TCL Mobile Communication (HK) Company Limited, a company incorporated in Hong Kong S.A.R. with its principal place of business at Room
904, Tower l, China Hong Kong City, 33 Canton Road, Tsimshatsui, Kowloon, Hong Kong (hereafter, "TCL"). 

        Wavecom
APAC and TCL are collectively referred to herein as the "Parties" and individually as a "Party". 

RECITALS  

        Whereas Wavecom APAC and Wavecom S.A. entered into a Master Agreement with TCL providing that, together with other agreements between Wavecom APAC and TCL and
between Wavecom SA and TCL, Wavecom APAC would enter into the Agreement to govern the sales of Wismo Flex from Wavecom APAC to TCL and the grant of a license by Wavecom APAC to TCL on compact 605 to
be integrated in the Wismo Flex, 

AGREEMENT  

        NOW, THEREFORE, in consideration of the mutual covenants contained herein, and for other good and valuable consideration, the parties agree as follows: 

1      DEFINITIONS.  

	Confidential Information	 	shall mean all information and material relating to the Products, Software, TCL Devices and/or the Parties' respective businesses or finances in whole or in part, which is disclosed or provided by Wavecom to TCL, or by
TCL to Wavecom, in each Party's performance of its obligations under this Agreement or otherwise in connection with or as a result of this Agreement, and any information which relates to or is derived therefrom, whether in tangible, intangible, oral,
written, machine-readable or human-readable form and whether the same is marked as being confidential or by virtue of its nature could reasonably be expected to be confidential.
	

Date-code	
 	

shall mean the date of manufacturing of a Sub-product in week and year number.
	

First Project	
 	

shall mean the first project jointly developed between Wavecom and TCL for the GSM mobile phone as defined in Appendix 2.
	 	 	 

1

 

	

Force Majeure	
 	

shall mean any act of God, fire, natural disaster, earthquake, accident, strike, act of government, or an act beyond either Party's reasonable control, or any act that is beyond the reasonable control of the Party affected by such
circumstances.
	

Intellectual Property Rights	
 	

shall mean any intellectual property rights, including, without limitation, patents, patent rights, design rights, trade secrets, know-how trade marks, service marks, applications for any of the foregoing, copyright and any other similar protected
rights under any laws or international conventions in any country or jurisdiction in the world, whether registered or unregistered, existing now or in the future, anywhere in the world.
	

Minimum Guarantee Period	
 	

shall mean the period described in Section 2.2 hereof.
	

Minimum Guaranteed Units	
 	

shall mean [**] ([**]) units of Products and Software.
	

Products	
 	

shall mean Wavecom's Wismo Flex Identified in Appendix 3 attached hereto.
	

Purchase Order	
 	

shall mean a written purchase order issued by TCL.
	

Software	
 	

shall mean collectively: (i) all Compact 605 software including Third Pam Software identified in Appendix 4 to this Agreement, which is to be integrated into the Products; and (ii) all the contents of the disk(s), CD Rom(s), electronic
mail and its file attachments or any other media with which such software is provided (if any), including the object code thereof; and (iii) any related explanatory written materials, user manuals or other documentation which may be provided by
Wavecom and/or its licensors.
	

Sub-products	
 	

shall mean, individually, the base band chip, the RF module, the power management chip and the audio filter chip that constitute together the Product and that are further described in Appendix 3.
	

Third Party Software	
 	

shall mean third party software identified in Appendix 4 to this Agreement.
	

Tools	
 	

shall mean collectively the software produced by Wavecom and/or its third party licensors (if applicable) in either Source Code or Object Code as defined in and governed by the Tools License Agreement between Wavecom SA and TCL.
	

TCL Devices	
 	

shall mean the GSM / GPRS portable phone made with the Products and Software under this Agreement.
	 	 	 

	2	 	ORDERS AND PURCHASE PROCEDURES.
	

2.1	
 	
Purchase Orders.
	

2.1.1.	
 	

Pursuant to a same written Purchase Order executed by TCL and accepted by Wavecom APAC, Wavecom APAC shall: (1) sell to TCL and TCL shall purchase from Wavecom APAC, the Products at the prices as set forth on Appendix 1 attached hereto and (2) grant to TCL and TCL shall accept the grant by Wavecom APAC of a license on the Software at the prices as set forth on Appendix 1 attached hereto.
	

2.1.2.	
 	

TCL shall issue Purchase Orders for Products and the Software on its official corporate letterhead paper duly signed by an authorized representative of TCL. TCL will submit Purchase Orders to Wavecom APAC in writing (by facsimile transmission,
registered airmail, or any other method as the Parties may agree) on a monthly basis throughout the term of this Agreement.
	 	 	 	 	 

2

 

	

2.1.3.	
 	

Purchase Orders shall cover [**] rolling time period and a further [**] rolling forecast. Purchase Orders shall be binding and not subject to adjustment or cancellation, except as follows:
	

 	
 	

(a)	
 	

For the quantity of Products and Software ordered for delivery within [**], such quantity may not be adjusted downward but their delivery may be rescheduled within a maximum time period of [**] and
	

 	
 	

(b)	
 	

For the quantity of Products and Software ordered for delivery between [**], such quantity may be adjusted downward by no more than [**] percent ([**]%) or their delivery may be rescheduled within a maximum time period of [**].
	

 	
 	

(c)	
 	

For the quantity of Products and Software ordered for delivery beyond [**], such quantity may be adjusted downward or cancelled.
	

2.1.4.	
 	

All such Purchase Orders shall refer to this Agreement by its agreement number (set forth above) and contain the following information: (a) a description and reference number of the Products and Software ordered; (b) the precise quantity of
Sub-products ordered with a maximum difference of +/- [**]% of quantities between Sub-products; (c) the selling price per unit (as set forth on Appendix 1) of such Products and Software; (d) the total price of such Products and
Software ordered (exclusive of tax); and (e) the desired date, place and conditions of delivery of such Products and Software.
	

2.1.5.	
 	

Purchase Orders shall not bind Wavecom APAC unless accepted in writing. Wavecom APAC's acceptance shall not be tacit and shall take the form of an order confirmation ("Order Confirmation") issued by Wavecom APAC within five (5) working days
following the receipt of the Purchase Order. No Purchase Order shall be deemed accepted without Wavecom APAC's written acceptance, which acceptance shall not be unreasonably withheld, and which acceptance shall specify the scheduled delivery date of
the Products and Software. TCL shall be responsible towards Wavecom APAC for ensuring the accuracy of the terms of any Purchase Order submitted by TCL and for giving Wavecom APAC any necessary information with respect thereof within a sufficient time
to enable Wavecom APAC to deliver the Products and Software in accordance with that Purchase Order and this Agreement. Accepted Purchase Orders shall not be cancelled or modified, in whole or in part, without Wavecom APAC's prior written
acceptance.
	

2.1.6.	
 	

All Purchase Orders for Products and Software placed by TCL shall be governed only by the terms and conditions of this Agreement and the Purchase Order, even if TCL fails to refer to this Agreement by its number in the Purchase Order, notwithstanding
any other terms and conditions in any other documents. In the event the terms of this Agreement are inconsistent with the terms in a Purchase Order, the terms of this Agreement shall prevail, unless otherwise agreed to in writing by the
Parties.
	

2.2	
 	
Commitment to Purchase Units. Save and except for any early termination of the Agreement under Section 13.2 for contractual breach by Wavecom APAC, TCL shall purchase and pay for the
Minimum Guaranteed Units in the first twelve (12) months following the first delivery of Products and Software to TCL (the "Minimum Guarantee Period").
	

 	
 	

In the event of delays attributable to Wavecom APAC, the Minimum Guarantee Period shall be extended by a period equivalent to the period of delay unless otherwise agreed by the Parties.
	

 	
 	

The prices defined in Appendix I are based on expected sales from Wavecom APAC to TCL of two and a half million units of Products and Software.
	 	 	 	 	 

3

 

	

 	
 	

If TCL fails to meet its obligation of purchasing the Minimum Guaranteed Units during the Minimum Guaranteed Period and provided the shortfall is not filled up by the delivery of another product of Wavecom APAC called P5186 to TCL during the same
period, Wavecom APAC shall be entitled to claim for losses based on the calculation that TCL shall have fulfilled its obligation to purchase the Minimum Guaranteed Units during the Minimum Guaranteed Period provided that such amount shall not exceed
the balance between effective purchases of the Products and of the P5186 during the Minimum Guaranteed Period and price applied to Minimum Guaranteed Units. The damages which TCL is liable hereof shall be paid to Wavecom APAC either (I) in
connection with the next Purchase Order issued by TCL under this Agreement or subsequent agreements for the three (3) months following the Minimum Guarantee Period, (II) upon termination or expiration of this Agreement, whichever is
later.
	

2.3	
 	
Forecasts.
	

2.3.1.	
 	

In addition to binding Purchase Orders issued pursuant to Section 2.1.3 hereof, TCL will, prior to the beginning of each calendar month, supply Wavecom APAC with a monthly forecast of its requirements for the Products and Software for each of
the five (5) months commencing with such calendar month. The forecast for those months following the two (2)-month periods covered by the Purchase Order issued pursuant to Section 2.1.3 hereof shall be non-binding and provided for planning
purposes only. However, TCL shall use reasonable efforts to provide precise forecasts that shall not substantially vary from one to another, in order for this forecast to serve its purpose.
	

2.3.2.	
 	

In the event that TCL has failed to provide Wavecom APAC with reliable forecast information required by Section 2.3.1 hereof, Wavecom APAC shall have the right to refuse Purchase Orders as described in Section 2.1 hereof.
	

2.4	
 	
Shipment and Delivery.
	

2.4.1.	
 	

Wavecom APAC will ship the Products and Software in high quality commercial packaging sufficient to protect the Products and Software during shipping and normal handling. Wavecom APAC will use all reasonable endeavors to ship all Products and
Software to TCL for delivery on the date set forth in an accepted Purchase Order in accordance with Section 2.1 hereof; provided that Wavecom APAC's obligations in respect of delivery of Products and Software are subject to TCL having complied
with its obligation to provide forecasts in accordance with Section 2.3.1 hereof. In the event of delay in delivery attributable to Wavecom APAC, the Minimum Guaranteed Units shall be reduced by such delayed quantity.
	

2.4.2.	
 	

Wavecom APAC will notify TCL of any delay in delivery as soon as Wavecom APAC is aware of such delay and shall use its best efforts to minimize such delay by working reasonable overtime at its own expense.
	

2.4.3.	
 	

Unless otherwise agreed in writing by the Parties, Wavecom APAC shall deliver the Products and Software FCA Hong Kong SAR, including delivery to TCL's warehouse in Hong Kong, and as defined in Incoterms ICC 2000.
	

2.4.4.	
 	

Risk in the Products and Software shall pass to TCL at delivery according to Incoterm agreed to in section 2.4.3 (or otherwise, in writing by the parties). If TCL fails to take delivery of the Products and Software or fails to give Wavecom APAC
adequate delivery instructions then both Parties shall agree the delivery and/or storage arrangement in good faith.
	

2.5	
 	
Title.
	

2.5.1.	
 	

Notwithstanding delivery and the passing of risk in the Products or any other provision of this Agreement, title to the Products shall not pass to TCL until Wavecom APAC has received payment in full of the price of the Products to be sold by Wavecom
APAC to TCL for which payment is then due.
	 	 	 	 	 

4

 

	

2.5.2.	
 	

Until such time as title to the Products passes to TCL, TCL shall hold the Products as Wavecom APAC's fiduciary agent and bailee, and shall endeavor to keep the Products separate from those of TCL, and third parties and properly stored, protected and
insured and identified as Wavecom APAC's property, but TCL may resell or use the Products in the ordinary course of its business.
	

2.5.3.	
 	

If TCL default such payment for [**], Wavecom APAC may at any time require TCL to deliver up the Products to Wavecom APAC and, if TCL fails to do so forthwith, enter on any premises of TCL or any third party where the Products are stored and
repossess the Products. TCL shall not be entitled to pledge or in any way charge by way of security for any indebtedness any of the Products that remain the property of Wavecom APAC, but if TCL does so, all amounts owing by TCL to Wavecom APAC shall
(without limiting any other right or remedy of Wavecom APAC) forthwith become due and payable.
	

2.6	
 	
Exportation. Before exporting TCL Device, TCL shall obtain any necessary license required in respect of TCL Device, Products and Software (as applicable) from any authorized government agency
or authority in the territory where Customer Device, Products and Software (as applicable) are to be exported.
	
3	
 	

CHANGES TO THE PRODUCTS AND/OR SOFTWARE; DISCONTINUANCE OF PRODUCTS AND/OR SOFTWARE.
	

3.1	
 	
Changes to Products and/or Software:
	

3.1.1.	
 	

Wavecom APAC may make changes in specification, construction, design, brand designation, labeling, packaging of the Products and/or Software or to its manufacturing process or to critical components ("the Changes") at any time. Wavecom APAC will use
reasonable efforts to give TCL as much as possible prior notice to Changes, but in no event less than [**] before the effectiveness of Changes and provided all changes in critical components would require not less than [**] prior notice to TCL and
would be subject to the prior written consent of TCL which consent shall not be unreasonably withheld.
	

3.1.2.	
 	

TCL shall consider at its sole and absolute discretion whether to accept the Changes or to continue to purchase Products integrated with the Changes. This decision by TCL shall not be considered a breach of Section 2.2 above if the Changes
affect fit, form, function or reliability of the TCL Devices.
	

3.1.3.	
 	

If Wavecom implements a major Change, TCL shall have the right to place "Last Buy" orders for the Products and/or Sub-products within one (1) month from Wavecom APAC's notice of Changes.
	

3.2	
 	
Discontinuance of Products and/or Software. In the event Wavecom APAC unilaterally desires to discontinue the manufacture and sale of Products and/or the licensing of the Software to TCL,
Wavecom APAC shall use best efforts to give TCL as much advanced written notice as possible, but in no event less than [**], prior to discontinuing sales of Products and/or licensing of Software under this Agreement. Following receipt of such notice,
TCL may issue a firm and non-cancelable Purchase Order for Products and Software at least [**] prior to the effective date of Product or Software discontinuation specified in such notice.
	
4	
 	

LICENSE OF SOFTWARE.
	

4.1	
 	

Wavecom APAC, for itself and (where applicable) on behalf of any Third Parties, hereby grants to TCL and TCL hereby accepts a non-exclusive, non-transferable, personal license to use the Software solely to be integrated in the Products, and to
distribute and sell TCL Devices, or, (b) when applicable, to use the Software integrated in the Products for evaluation and demonstration purposes.
	 	 	 	 	 

5

 

	

4.2	
 	

The license shall continue unless and until terminated in accordance with Section 13 hereof and in the event any such license is temporary, it shall continue in accordance with Section 13 below.
	

4.3	
 	

Limitations on the license; TCL shall:
	

 	
 	

(a)	
 	

not copy, distribute, or make derivative works of the Software in whole or in part except that TCL may make one copy of the Software on magnetic media as an archival back up copy, provided TCL's archival back up copy is not installed or used on any
computer. Any other copies TCL makes of the Software are in violation of these license conditions;
	

 	
 	

(b)	
 	

not use, modify, translate, reproduce or transfer, sublicense or otherwise delegate the right to use the Software or copy the Software except as expressly provided in this Agreement or expressly authorized by Wavecom APAC in writing;
	

 	
 	

(c)	
 	

not resell, sublicense, rent, lease or lend the Software;
	

 	
 	

(d)	
 	

not reverse engineer, reverse compile, disassemble or otherwise attempt to discover the source code of the Software or create derivative works based on the Software.
	

 	
 	

(e)	
 	

not modify any copyright notices or other notices of Wavecom and/or any Third Parties as they appear in or on the Software and shall reproduce such notices on any copies which TCL makes of the Software;
	

 	
 	

(f)	
 	

only use the Software in a manner that complies with all applicable laws in the jurisdiction in which it uses the Software, including, but not limited to, applicable restrictions concerning the copyright and other Intellectual Property
Rights.
	
5	
 	

PRODUCT PRICE—SOFTWARE PRICE.
	

5.1	
 	

Prices for the Products shall be as stated in Appendix 1 attached hereto. All payments made by TCL hereunder shall be made in the currency indicated in Appendix 1 attached hereto. Product prices stated in Appendix 1 exclude the cost of customs, duties and other taxes, which TCL shall be liable for.
	

5.2	
 	

TCL shall pay the Software price identified in Appendix 1 to Wavecom APAC and/or any applicable Third Parties identified in Appendix 1 hereto.
Such Software price excludes the cost of customs, duties and other taxes, which TCL shall be liable for.
	
6	
 	

PAYMENTS.
	

6.1	
 	

TCL shall pay each invoice ("Invoice") received from Wavecom APAC for Products sold and Software licensed hereunder no later than [**] after the date of such Invoice, unless otherwise agreed in writing by the Parties in the Order Confirmation.
Wavecom APAC may submit an Invoice to TCL upon or after tendering or making delivery of the applicable Products and Software in accordance with Section 2.4 hereof.
	

6.2	
 	

Payment of each Invoice shall be made by way of irrevocable letter of credit. No later than [**] prior to the expected delivery date of the Products and Software, TCL shall provide Wavecom APAC with a matching irrevocable, non-transferable and
confirmed letter of credit payable at sight the form and issuing bank of which must have been approved by Wavecom APAC prior to or when TCL places the applicable Purchase Order, and which shall become effective and payable in accordance with the time
periods in Section 6.1 hereof.
	 	 	 	 	 

6

 

	

6.3	
 	

If TCL fails to pay on the due date any amount which is payable to Wavecom APAC under this Agreement, then without limiting Wavecom APAC's rights in respect thereof (including under Section 13 hereof): (a) Wavecom may notify TCL in writing
of the default and TCL shall have [**] from the date of such notice to settle the amount overdue; in the event the overdue amount is not settled by TCL within the said [**] such amount shall bear interest from the due date until payment is made in
full at LIBOR plus 2%; and (b) Wavecom APAC may suspend deliveries of the Products and Software until Wavecom APAC has received the past due amount from TCL.
	
7	
 	

WARRANTIES.
	

7.1	
 	
Warranty. Wavecom APAC warrants that the Sub-products supplied to TCL under this Agreement shall be free from defects in materials and workmanship, and shall otherwise conform to the express
requirements of this Agreement and the laws of the applicable jurisdiction(s). The Sub-products are individually covered by the warranty and, therefore, the provisions of the present Section 7 shall apply individually to each Sub-product. Each
Sub-product has a Date-code. The warranty period for a Sub-product incorporated into a TCL Device within a [**] time period from its Date-code is [**] from such Date-code. The warranty of a Sub-product shall lapse if such Sub-product has not been
incorporated into a TCL Device within the [**] time period from its Date-code.
	

 	
 	

Wavecom APAC warrants that any Software (other than Third Party Software) supplied to TCL under this Agreement shall, for a period of [**] from first delivery of the Software, under normal use, perform in accordance with any specifications published
by Wavecom APAC in respect of the Software and shall be of quality and functionality that complies the corresponding definition and acceptance specifications. However TCL acknowledges that Wavecom APAC makes no warranty that the operation of the
Software will be uninterrupted, error-free or bug-free or that any such errors or bugs will be corrected and in the event of which the parties shall negotiate in good faith the remedy to cure the interruption, error or bug.
	

7.2	
 	
Procedure. If any Sub-products or Software (other than Third Party Software) furnished by Wavecom APAC fail to conform to the above warranty (and provided that any warranty shall be excluded
if the default alleged a misuse of the Sub-products or Software, modifications made by TCL to the Products or Sub-products or Software, a lack of supervision or maintenance of the Products or Sub-products or Software), in order to activate the above
warranty, TCL shall: (a) immediately notify Wavecom APAC in writing that the Products or Sub-products or Software (other than Third Party Software) are defective and shall furnish a detailed explanation of any alleged deficiency; and
(b) return to Wavecom APAC the defective Sub-products or Software (other than Third Party Software) in an appropriate packaging in accordance with Wavecom APAC's customer return policy and in particular, as far as Sub-products are concerned,
Wavecom APAC's RMA procedures as defined in Appendix 5.
	

7.3	
 	
Repair or Replacement of Sub-products / Modification or Replacement of Software. If Wavecom APAC finds the Sub-products to be defective, Wavecom APAC shall at its sole discretion and in a
reasonable period, decide to repair or replace the defective Sub-product. If Wavecom APAC finds the Software (other than Third Party Software) to be defective, Wavecom APAC shall at its sole discretion and in a reasonable period, decide to modify or
replace the Software (other than Third Party Software). Under this Section 7.3, Wavecom APAC shall be liable for and shall compensate TCL for any defective Product, Sub-Product or Software supplied by Wavecom APAC to TCL due to the fault of
Wavecom APAC and/or its suppliers.
	 	 	 	 	 

7

 

	

7.4	
 	
Limitations on Warranty. This limited warranty does not extend to (a) any Product or Sub-product or Software that has been misused, abused, neglected, or damaged due to any negligence of
TCL or its customers or any third parties, (b) any Product or Sub-product or Software repaired, serviced or modified otherwise than as authorized hereunder by anyone other than an authorized representative of Wavecom APAC, or a party authorized
by Wavecom APAC, (c) any failure of the Product or Sub-product or Software to conform to such warranties as a result of improper maintenance, installation, testing or service, operation or use contrary to furnished instructions, due to willful
damage, negligence or abnormal working conditions due to the negligence of TCL, (d) the improper transportation or improper storage of any Product or Sub-product or Software due to the negligence of TCL, (e) any damages due to Force Majeure,
 (f) parts, materials or equipment not manufactured by Wavecom APAC or its suppliers, in respect of TCL shall only be entitled to the benefit of any such warranty or guarantee (if any) as is given by the manufacturer to Wavecom APAC,
(g) any Third Party Software.
	

7.5	
 	
No Other Wavecom APAC Warranties. SAVE AND EXCEPTED AS REQUIRED BY THE LAWS OF THE HONG KONG SPECIAL ADMINISTRATIVE REGION, WAVECOM APAC MAKES NO WARRANTIES, EXPRESS OR IMPLIED, INCLUDING
WITHOUT LIMITATION, ALL IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE OR OTHERWISE WHICH WOULD EXTEND BEYOND THE WARRANTIES EXPRESSLY CONTAINED HEREIN.
	

7.6	
 	
Out of Warranty Sub-products. As defined in Appendix 5 "After Sales", Wavecom APAC will replace any out of warranty defective Sub-products upon TCL's request at a price and a replacement
lead time to be mutually agreed. In the event of a discontinuation of any Sub-products, the conditions of Section 32 will apply to the Parties. TCL agrees that Sub-Products can only be ordered to serve After Sales purposes.
	
8	
 	

THIRD PARTY ACTION.
	

Subject to Section 10, either Party (hereafter the "Defending Party") shall defend, hold harmless and indemnify the other Party (hereafter the "Defended Party"), from any and all suits, losses, expenses and third party claims including
reasonable attorneys fees, due to any breach of this Agreement by the Defending Party, including any default under any Purchase Order, provided that with respect to any third party claim: (a) the Defending Party is notified promptly of such
claim in writing; (b) the Defending Party controls the defense or settlement of the claim and the Defended Party makes no such settlement itself:, and (c) the Defending Party is given all necessary authority, information and assistance in
respect thereof by the Defended Party at the Defending Party's reasonable expense.
	
9	
 	

INTELLECTUAL PROPERTY RIGHTS AND DEFENSE.
	

9.1	
 	
Intellectual Property Rights. No right, title or interest in any Intellectual Property Rights with respect to the Products or Software shall pass to TCL under this Agreement; rather, they
shall remain with Wavecom APAC and/or its licensors (as applicable). The reference to "Software" in this Section 9.1 shall include all translations, modified forms, derivative works or copies of the Software that may be created by or for the
benefit of TCL in accordance with this Agreement.
	

9.2	
 	
Third-Party Infringement. In the event that TCL knows of a third party having made any use and/or infringement whatsoever of the Intellectual Property Rights and/or the Products and/or the
Software, TCL shall forthwith inform Wavecom APAC in writing thereof, and generally assist Wavecom APAC in defending such rights in accordance with any request made by Wavecom APAC with respect thereto.
	 	 	 	 	 

8

 

	

9.3	
 	
Defense. Subject to Section 10, Wavecom APAC shall defend any third party claims of infringement of any patents and copyrights existing as of the Effective Date, by reason of the
manufacture, sale, marketing, or use of the Products or Software (other than Third Party Software), provided that with respect to any third party claim: (a) Wavecom APAC must be notified promptly of such claim in writing; (b) Wavecom APAC
controls the defense or settlement of the claim and TCL makes no such settlement itself; and (c) Wavecom APAC is given all necessary authority, information and assistance in respect thereof by TCL at Wavecom APAC's reasonable
expense.
	

 	
 	

If the use of any Product or Software is permanently enjoined, Wavecom APAC shall, at its expense and option, make its best efforts to (i) procure the right to continue using any part of that Product or Software, (ii) replace the infringing
Product or Software (other than Third Party Software) with a non-infringing Product or Software of similar performance, or (iii) modify the Product or Software (other than Third Party Software) to make it non-infringing. Notwithstanding anything
to the contrary in the Agreement and subject to Section 10, if Wavecom APAC is unable to reasonably do any of the above, Wavecom APAC will refund the purchase price in respect either of the Product or Software affected.
	

9.4	
 	

Wavecom APAC shall have no liability under this Section 9 hereof for any claim or suit where such claim would have been avoided but for (a) the combination, operation or use of the Products or Software with TCL's or a third party's
applications, devices, parts, products, software or documentation not supplied by Wavecom APAC or (b) the modification (except where such modification is approved by Wavecom APAC and furnished to TCL as part of the Software), addition, repair or
misuse of the Products or Software by TCL or any third party or (c) the use of the Products or Software as part of an infringing process, or (d) the compliance by Wavecom APAC to TCL's specific requirements, (e) the use of any Software
after Wavecom APAC has provided TCL with a modified version of or replacement for such Software, (f) the use of any Software other than as expressly authorized by this Agreement, or (g) any Third Party Software. The provisions of
Section 8 will apply.
	

 	
 	

TCL acknowledges and agrees that the implementation of certain audio and picture formats such as Nokia Smart Messaging and Gif may require TCL to obtain additional licenses from third parties. TCL agrees that it shall be solely responsible for
determining whether it requires such additional licenses.
	

9.5	
 	

THIS SECTION 9 STATES WAVECOM'S TOTAL RESPONSIBILITIES, LIABILITIES, AND REMEDIES TO TCL FOR ANY ACTUAL OR ALLEGED INFRINGEMENT OF ANY INTELLECTUAL PROPERTY RIGHTS OF ANY THIRD PARTIES.
	
10	
 	

LIMITATION OF LIABILITY.
	

10.1	
 	
NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT AND ITS APPENDICES, IN NO EVENT SHALL WAVECOM APAC BE LIABLE FOR ANY LOSS OF PROFITS, INTELLECTUAL PROPERTY RIGHTS INFRINGEMENT, LOSS OF
USE, INCIDENTAL, INDIRECT, CONSEQUENTIAL OR SPECIAL DAMAGES IRRESPECTIVE OR WHETHER WAVECOM APAC HAS ADVANCE NOTICE OF THE POSSIBILITY OF SUCH DAMAGES. FOR THE AVOIDANCE OF DOUBT, THIS PROVISION SUPERSEDES ANY OTHER PROVISION OF THIS AGREEMENT OR ITS
APPENDICES.
	 	 	 	 	 

9

 

	

10.2	
 	
NOTWITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT AND ITS APPENDICES, EXCEPT FOR GROSS NEGLIGENCE OR WRONGFUL INTENTIONAL ACTS, THE LIABILITY OF WAVECOM APAC ARISING OUT OF EACH DELIVERY
UNDER THIS AGREEMENT SHALL BE LIMITED TO THE TOTAL COST PRICE OF THE PRODUCTS AND SOFTWARE SUBJECT OF THE CORRESPONDING DELIVERY SUPPLIED UNDER THIS AGREEMENT. FOR THE AVOIDANCE OF DOUBT, THIS PROVISION SUPERSEDES ANY OTHER PROVISION OF THIS
AGREEMENT OR ITS APPENDICES.
	
11	
 	

CONFIDENTIALITY.
	

To protect certain Confidential Information that may be disclosed between them, the Parties agree that:
	

11.1	
 	

The recipient of Confidential Information shall, for a period of five (5) years after the date of termination of this Agreement, not disclose such Confidential Information to any third party individual, corporation, or other entity without the
prior written consent of the discloser and shall limit its disclosure to its employees having a need to know such information for the purposes of this Agreement. The recipient shall protect the disclosed Confidential Information by using the same
degree of care, but no less than a reasonable degree of care, to prevent the unauthorized dissemination or publication of the Confidential Information as the recipient uses to protect its own confidential information of a like nature and the
recipient shall immediately upon termination of this Agreement return to the discloser all Confidential Information of the discloser which is in the recipient's control or possession.
	

11.2	
 	

The obligations herein will not apply to any Confidential Information which the recipient proves to be (a) available to the public other than by breach of this Agreement by the recipient; (b) received by the recipient from a third party
without confidential limitations; (c) independently developed by the recipient's employees; (d) known to the recipient prior to first receipt of same from discloser; (e) hereinafter disclosed by the discloser to a third party without
restriction on disclosure, or (f) disclosed pursuant to judicial order or lawful requirement of governmental agency.
	

11.3	
 	

Each Party warrants that it has the right to make the disclosures under this Agreement.
	
12	
 	

TERM OF AGREEMENT.
	

This Agreement shall enter into force from the Effective Date set forth above for an initial term of thirty six (36) months (the "Initial Term") and shall be automatically renewed for the same period of time unless otherwise terminated in
accordance with Section 13 hereof. The terms and conditions of this Agreement shall continue to apply to any Purchase Order issued by TCL and accepted by Wavecom APAC hereunder until final delivery is made, even if such delivery is made after
the term of this Agreement expires.
	
13	
 	

TERMINATION.
	

13.1	
 	

After the Initial Term, either Party may terminate this Agreement without cause by providing written notice of termination at least six (6) months in advance.
	

13.2	
 	

Either Party may terminate this Agreement for cause at any time (during or after Initial Term) forthwith upon written notice if the other Party fails to comply with any material term or condition of this Agreement and fails to remedy it within thirty
(30) days (or seven days with respect of any failure by TCL to comply with a term and condition relating to the Software and its license) after receipt of written notice giving full particulars of the breach and requiring it to be
remedied.
	 	 	 	 	 

10

 

	

13.3	
 	

If either Party should be adjudicated bankrupt or go into liquidation, or should make a general assignment for the benefit of creditors, or if a receiver should be appointed due to a Party's insolvency, or a Party ceases or threatens to cease to
carry on business, then the other Party may without prejudice to any other right or remedy terminate this Agreement or any Purchase Order issued hereunder upon seven (7) days prior written notice.
	

13.4	
 	

Wavecom APAC may terminate this Agreement upon seven (7) days prior written notice in the event that, for any reason, (a) a third party acquires all or substantially all of the assets and/or business of TCL, by merger or acquisition or any
other operation, or (b) a change of Control occurs at TCL. For the purpose of this Section 13.4, "Control" shall mean the power to direct the affairs of another entity by reason of (i) ownership of voting stock or other equity
interests, or (ii) the ability to elect a majority of the Board of Directors or other governing body of the entity.
	

13.5	
 	

For the purpose of Section 13.2 hereof, a failure shall be considered capable of remedy if the Party in breach can comply with the provision in question in all respects other than as to the time of the performance.
	

13.6	
 	

The rights to terminate this Agreement shall not prejudice any other right or remedy of either Party in respect of the failure to comply with any term or condition of this Agreement.
	

13.7	
 	

On the termination of this Agreement for any reason, subject as expressly otherwise provided in this Agreement and to any rights or obligations which have accrued prior to termination, neither Party shall have any further obligation to the other
under this Agreement. For the avoidance of doubt and except in case of termination under Section 13.2 for breach of the Agreement by Wavecom APAC, TCL shall remain bound by its obligations under Section 2.2 (Minimum Guaranteed Units),
Section 2.1.5 and Section 6 as far as they related to any outstanding amount due prior to termination.
	

13.8	
 	

The license granted on Third Party Software shall lapse on expiry or termination of the agreements pursuant to which Wavecom APAC has the right to grant to TCL the rights and licenses hereunder.
	
14	
 	

GENERAL.
	

14.1	
 	
Force Majeure. Neither Party will be deemed in default of this Agreement to the extent that performance of its obligations or attempts to cure any breach are delayed or prevented by reason of
a Force Majeure, provided that such Party gives the other Party written notice thereof promptly and, in any event, within fifteen (15) days after discovery thereof and uses its best efforts to continue to so perform or cure. In the event of such
a Force Majeure, the time for performance or cure will be extended for a period equal to the duration of the Force Majeure provided that if either Party invokes this Section 14.1 for a period or periods totaling one (1) month or more on any
particular occasion or three (3) months or more in aggregate the other Party may terminate this Agreement by written notice with immediate effect and without damages.
	

14.2	
 	
Assignment. Subject to Section 13.4, the rights and liabilities of the Parties hereto will bind and inure to the benefit of their respective successors, executors and administrators, as
the case may be. Neither party may assign subcontract or otherwise delegate its obligations, other than as specified herein, under this Agreement either in whole or in part, without the prior written consent of the other party (which will not be
unreasonably withheld or delayed). However, Wavecom APAC may subcontract the manufacture, supply and delivery of the Products and Software to any third party. Any attempted assignment in violation of the provisions of this Section 14.2 will be
void.
	

14.3	
 	
Severability. If any term or provision of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable, this fact shall not invalidate the rest of this
Agreement, which shall remain in full force and effect as if such invalid or unenforceable term or provision had not been part of this Agreement.
	 	 	 	 	 

11

 

	

14.4	
 	
No Waiver. All rights and remedies conferred under this Agreement or by any other instrument or law shall be cumulative, and may be exercised singularly or concurrently. Failure by either
Party to enforce any provision of this Agreement shall not be deemed a waiver of future enforcement of that or any other provision. No waiver shall be effective unless the waiving party provides such waiver in writing.
	

14.5	
 	
Notices. All notices required or permitted under this Agreement will be in writing, will reference this Agreement and will be deemed given: (a) when delivered personally; (b) when
sent by confirmed telex or facsimile; (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (d) one (1) day after deposit with a commercial overnight carrier, with
written verification of receipt. All communications will be sent to the addresses set forth below to or such other address as may be designated by a Party by giving written notice to the other Party pursuant to this Section 14.5:
	 	 	 	 	 

	 	TCL:	 	TCL Mobile Communication (HK) Company Limited
	

 	
 	

Address:	
 	

Room 904, Tower 1, 9th Floor, China Hong Kong City, 33 Canton Road, Tsimshatsui, Kowloon, Hong Kong SAR
	

 	
 	

Facsimile:	
 	

+852 2302-0996
	 	
Wavecom:	
 	

Wavecom Asia Pacific Limited
	

 	
 	

Address:	
 	

Suite 501. 5`h Floor, Shui On Centre. 6 - 8 Harbour Road, Wanchai. Hong Kong SAR
	

 	
 	

Facsimile:	
 	

+852 2824-0591
	 	 	 	 	 

	14.6	 	Survival. The obligations of the parties under Sections 2.2, 2.4.4, 5, 6, 7, 8, 9, 10, 11, 13.6, 13.7 and 14 hereof shall survive any termination of
this Agreement. Notwithstanding the foregoing, in the event that Wavecom APAC terminates this Agreement due to breach by TCL, then the warranty set forth in Section 7.1 hereof shall not survive termination of this Agreement to the extent it
relates to the Products or Sub-products or Software that are the subject of the breach.
	

14.7	
 	
Disputes—Governing Law. This Agreement and any Purchase Orders for Products and Software shall be governed by and construed in accordance with the Laws of Hong Kong S.A.R. and the parties
hereto submit to the exclusive jurisdiction of the Courts of Hong Kong S.A.R. Neither Party shall submit any dispute to the Court before an amicable settlement of the dispute has been sought with the other Party. In order to reach such amicable
settlement whenever possible, the aggrieved Party shall give written notice to the other Party that a dispute has arisen. The Parties shall discuss within four (4) weeks of such notice. If within four (4) weeks after such meeting no
amicable settlement is reached, the matter shall be referred to the Senior Officers of both Parties. If no amicable settlement is reached within a further four (4) weeks, the aggrieved Party may submit the dispute to the Court.
	

14.8	
 	
Interpretation. The headings and captions are included for reference purposes only and do not affect the interpretation of the provisions hereof. When used herein, the word "including" will
not be construed as limiting.
	 	 	 	 	 

12

 

	

14.9	
 	
Complete Agreement. This Agreement, including all Appendices and any Purchase Orders issued hereunder (all which are deemed to form part of this Agreement) constitute the entire agreement
between the Parties in connection with the subject matter hereof, and supersede all prior agreements, understandings, negotiations and discussions, whether oral or written, between the parties and relating to the same subject matter. In case of
conflict between the terms of this Agreement with the terms of any other documents between the Parties, the terms of this Agreement shall prevail. No amendment to or modification of this Agreement will be binding unless in writing and signed by both
Parties.
	

14.10	
 	
Press Releases.
	

14.10.1.	
 	

Notwithstanding any other provisions of this Agreement, TCL acknowledges that Wavecom is listed on both the NASDAQ and the Nouveau Marche stock exchanges and that Wavecom is released from the provisions of Section 11 hereof to the extent
necessary to comply with the requirements of such stock exchanges, of any relevant regulations and of the law generally, provided that Wavecom shall advise TCL of such occurrence before disclosing and TCL may propose alternative disclosures serving
the same purpose. If TCL is required to disclose confidential information to the government and the statutory bodies, TCL shall advise Wavecom APAC of such occurrence before disclosing and Wavecom APAC may propose alternative disclosures serving the
same purpose.
	

14.10.2.	
 	

Wavecom may make press releases and announcements relating to the subject matter of this Agreement in forms to be agreed from time to time between Wavecom and TCL, with TCL's consent not to be unreasonably withheld or delayed.
	
15	
 	

TABLE OF CONTENT OF APPENDICES.
	

In declining order of precedence, Agreement proceeding over Appendices:
	 	 	 	 	 

	 Agreement (this document)
	 	
 Appendix 1	
 	

:	
 	

Prices for Compact 605 with Wismo Flex
	 	
 Appendix 2	
 	

:	
 	

The First Project
	 	
 Appendix 3	
 	

:	
 	

Hardware Technical Details and Deliverables
	 	
 Appendix 4	
 	

:	
 	

Software Details and Deliverables
	 	
 Appendix 5	
 	

:	
 	

After Sales Services

13

 

        IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives as of the date first
above written. 

	TCL Mobile Communication (HK) Co. Ltd.	 	WAVECOM Asia Pacific Limited
	

By:	
 	

/s/  LUN TAK LEUNG, EDWARD       
	
 	

By:	
 	

/s/  DIDIER DUTRONC      

	 	 	(Signature of Authorized Representative)	 	 	 	(Signature of Authorized Representative)
	

Name:	
 	

Lun Tak Leung, Edward
	
 	

Name:	
 	

Didier Dutronc

	 	 	(Printed Name)	 	 	 	(Printed Name)
	

Title:	
 	

Chief Operating Officer
	
 	

Title:	
 	

MD. Wavecom APAC

	

Date:	
 	

October 20, 2003
	
 	

Date:	
 	

October 20, 2003

14

   APPENDIX 1  

 PRICES FOR COMPACT 605 AND WISMO FLEX  

15

 

APPENDIX 1: Prices for Products and Compact 605  

1    PRODUCTS + COMPACT 605: USD[**].-  

	

	Description
	 	F 1106
	 	Compact Phone

605 S/W (U/P)
	 	Remarks

	

	 	 	 	 	 	 	 	 	 
	

	Compact Phone 605 with F1106

(F1106-605)	 	USD[**]	 	USD[**]	 	1.	 	The above prices are based on the minimum quantity of [**] millions
	

 	
 	

 	
 	

 	
 	

2.	
 	

The software fee for 605 Development Lab includes Third Party Software and essential GSM/GPRS IPR charges.
	

 	
 	

 	
 	

 	
 	

3.	
 	

Prices shall be subject to further discussion and written agreement by both Parties
	

 	
 	

 	
 	

 	
 	

4.	
 	

Prices shall be subject to further changes with reference to prevailing market conditions and further written agreement by both Parties
	

	

 	
 	

 	
 	

 	
 	

 	
 	

 

16    PRICES OF SUB-PRODUCTS FOR AFTER SALES  

	

	Description
	 	Price
	 	Remarks
	 	 
	 	 

	

	 	 	 	 	 	 	 	 	 
	

	Spares for F1106:	 	 	 	The spare parts can only be ordered for After Sales purposes.
	

• F1106-RF	
 	

USD[**]	
 	

 	
 	

 	
 	

 
	

• F1106-BB	
 	

USD[**]	
 	

 	
 	

 	
 	

 
	

• F1106-PM	
 	

USD[**]	
 	

 	
 	

 	
 	

 
	

• F1106-AF	
 	

USD[**]	
 	

 	
 	

 	
 	

 
	

	

 	
 	

 	
 	

 	
 	

 	
 	

 

16

   APPENDIX 2  

 THE FIRST PROJECT  

17

 

APPENDIX 2: THE FIRST PROJECT  

        The First Project includes the development of two (2) types of GSM handset with the features briefly summarized as below: 

	1.
	GC20
: Dual color clamshell GSM / GPRS phone with built-in camera, MMS and Java

	2.
	GC21
: Flip type GSM / GPRS phone with touch panel display, built-in camera, MMS and Java. 

18

   APPENDIX 3  

 HARDWARE TECHNICAL DETAILS AND DELIVERABLES  

19

 

APPENDIX 3: HARDWARE TECHNICAL DETAILS & DELIVERABLES  

        Wavecom's Wismo Flex F1106 consists of 4 Sub-products: 

	•
	Basehand
chip (Fl106-BB)

	•
	RF
module (Fl106-RF)

	•
	Power
management chip (F1106-PM)

	•
	Audio
Filter chip (Fl 106-AF) 

        The
sketch of Wismo Flex F1106 is illustrated as the following picture. 

[Wismo
Flex F1106 Illustration] 

        The
hardware development kit developed for the Wismo Flex has two (2) different platforms available for TCL. The first one is the Flex demonstrator to show the complete
architecture of Flex offer based on Compact 605 (see block diagram below). 

        The
second one is the Open Development Kit. It is a development tool to allow engineers to test all interfaces. 

20

 

1    DEMONSTRATOR  

        This is a demonstration tool, not a development kit. It consists of a complete phone board and is fully functional. TCL can use this board to design a phone based
on the same layout and components in order to optimise validation and certification process. 

        A
picture of this demonstrator is below: 

[Picture
of complete phone board] 

21

 

        The
below block diagram shows the main components. The full list of components is provided in a document called "Demonstrator Component List". 

[DIAGRAM] 

        The
Compact 605 runs on the external memory, the following features can be demonstrated, such as MMS, Java, camera and USB. 

22

 

2    OPEN DEVELOPMENT KIT  

        This is a development tool for TCL. It consists of a phone board based on Wismo Flex that allows the access to all interfaces between key components. 

3    HARDWARE TECHNICAL DOCUMENTS DELIVERABLES  

	

	General
	 	Description
	 	Due Date Pending Execution

(in the year 2003)

	

	Hardware Element
	

	 	 	Flex data sheet (first draft)	 	End September
	

	 	 	Data sheet of each components: F1106-RF, F1106-BB, Fl106-PM, F1106-AF	 	Mid September
	

	 	 	Recommended critical component list	 	End September
	

	 	 	Customer Design Guidelines (including application notes)—first draft	 	Mid September
	

	Hardware Demonstrator
	

	 	 	Demonstrator component list (first draft)	 	End August
	

	 	 	Demonstrator schematics (first draft)	 	End August
	

	 	 	Demonstrator PCB layout (first draft)	 	End August
	

	 	 	GCF certification test report	 	End November
	

	 	 	Open Development Kit description	 	End October
	

	Manufacturing
	

	 	 	"Customer guideline": Report process guidelines for F1106-RF, F1106-BB, F1106-PM, F1106-AF	 	End October
	

	 	 	Storage conditions specifications for the sub-products	 	End October
	

	 	 	Testing Design Guideline including methods for testing F1106-RF, Fl106-BB, Fl106-PM, F1106AF	 	End October
	

	 	 	Specification of SW libraries for test bench, i.e. test and calibration procedures	 	End October
	

	 	 	Process specification to remove and replace each defective sub-product from TCL Devices and the packaging specifications of the defective sub-products for return	 	End November
	

4    HARDWARE TOOLS DELIVERABLES (AND S/W ASSOCIATED)  

	

	General
	 	Description
	 	Due Date Pending Execution

(in the year 2003)

	

	Hardware Tools
	

	 	 	SW debug tools (binaries) for BB + user manual and getting started doc (first draft)	 	Mid September
	

	 	 	SW debug tools (binaries) for RF + user manual and getting started doc (first draft)	 	Mid October
	

	Hardware Demonstrator
	

	 	 	Complete phone board scale 1 with all components and SW	 	End September
	

	Hardware Open Development Kit
	

	 	 	Complete phone board at higher scale	 	End October
	

23

 

5    HARDWARE PRODUCTS DELIVERABLES  

	

	General
	 	Description
	 	Due Date Pending Execution

(in the year 2003)

	

	F1106-BB	 	Wavecom Base band Chipset	 	 
	

	 	 	Phase: MP	 	Now
	

	F1106-PM	 	Wavecom Power Management chip	 	 
	

	 	 	Phase: MP	 	Now
	

	F1106-AF	 	Wavecom Audio Filter chip	 	 
	

	 	 	Phase: MP	 	Now
	

	F1106-RF	 	Wavecom RF module	 	 
	

	 	 	Phase: ES sample	 	September 19th
	

	 	 	Phase: MP	 	December 8th
	

24

   APPENDIX 4  

 SOFTWARE DETAILS AND DELIVERABLES  

25

 

APPENDIX 4: SOFTWARE DETAILS AND DELIVERABLES  

	Software
	 	Software Price
	 	 

	Wavecom Software	 	 	 	 
	
Compact 605 Development Lab	
 	

USD[**](To be discussed and agreed in writing by both Third Party Software Parties)	
 	

 
	
Third Party Software	
 	

 	
 	

 
	
[**]	
 	

 	
 	

 
	

[**]	
 	

 	
 	

 
	

[**]	
 	

 	
 	

 
	

[**]	
 	

 	
 	

 
	

[**]	
 	

 	
 	

 
	

[**]	
 	

 	
 	

 
	

[**]	
 	

 	
 	

 

	Note:
	*
[**] is Third Party Software licensed solely for demonstration and evaluation purposes. TCL shall refer to the appropriate Third Party
([**]) for a commercial licence (which may include the right to sell and distribute TCL's Devices). TCL informs Wavecom that it is already a
[**] licensee. 

26

   APPENDIX 5  

 AFTER SALES SERVICES OF PRODUCTS  

27

 

APPENDIX 5: AFTER SALES SERVICES OF PRODUCTS  

RETURN MATERIAL AUTHORIZATION (RMA)  

	1.
	In
the event TCL finds defective Products and/or Sub-products, TCL will immediately notify WAVECOM in writing of such defect and will provide Wavecom with the following
information for the Product and/or Sub-product:

	•
	part
number

	•
	date
code

	•
	quantity

	•
	description
of the defect

	2.
	Upon
Wavecom's request, TCL will provide Wavecom with samples of the defective Products and/or Sub-product. Wavecom will provide TCL with the RMA number relating to the
defective Products and/or Sub-product within [**] from the receipt of TCL's samples.

	3.
	Upon
receipt of the RMA number by TCL Wavecom shall arrange to pick up the concerned defective Products and/or Sub-product from the warehouse of TCL, in Hong Kong or
Huizhou, China, who shall arrange such defective Products and/or Sub-product be packed according to Wavecom packaging specification.

	4.
	At
Wavecom's option, Wavecom will either

	i)
	repair
or replace the defective Products and/or Sub-product. Wavecom will deliver the repaired of replace Products and/or Sub-product to the warehouse in Hong
Kong or Huizhou, China as assigned by TCL within [**] from the receipt of the defective Products and/or Sub-product. TCL will have the opportunity to submit RMA
batches to Wavecom. Once the RMA is accepted by Wavecom, the replacement of the failing products will occur not later then [**]. The elapsed time of the RMA acceptance by
Wavecom will not be longer than [**]. 

Or

	ii)
	authorize
TCL to take a quantity of Sub-products contained in the consignment stock ("the Stock") hereunder defined, to replace the defective sub-products.

	5.
	Wavecom
will deliver Products to TCL in order to constitute a consignment stock ("the Stock") which will be exclusively located within TCL's premises in Hong Kong or
Huizhou, China. 

The
Parties agree that the Products contained in the Stock remains Wavecom's property and that TCL must use required care for the preservation of the Sub-products in safety and in good
condition in respect of the storage specifications provided by Wavecom. 

TCL
shall support and be responsible for all risks relating to the Sub-products whilst they are in TCL's control or possession. 

TCL
may in no case sell, transfer, pledge or assign the Sub-products in whole or in part for any reason whatsoever, or allow them to become subject to any liens or encumbrances, including,
without limitation, in connection with any particularly as security interest. 

TCL
certifies that it has taken out and will maintain during the term of this Agreement, insurance covering all risks that may be incurred by this Agreement particularly in case of loss, theft,
injury, destruction or damage, in an amount not less than the maximum value of the Sub-products stored in the Stock. At Wavecom's first request, TCL shall provide a copy of such insurance
contract. 

28

 

The
minimum quantity of Sub-products contained in the Stock shall be [**] pieces and the maximum quantity shall be [**] pieces. Wavecom will
define and deliver the quantity of Sub-products needed to supply the Stock and maintain a consistent level. 

The
Parties agree to meet on a quarterly basis to agree on the evolution of the sizing of the Stock. 

Wavecom
is entitled to audit, at any time and upon request the Stock and in particular the level of the Sub-products in the Stock. 

In
any case of termination or expiration of the Agreement for whatever cause, the Stock shall be immediately returned to Wavecom APAC. 

	6.
	Unless
an agreement is reached under following section 8, Wavecom shall provide TCL with free spare parts, the quantity of which to be agreed by both parties, with each shipment
of Products under the Purchase Order issued by TCL to Wavecom pursuant to this Agreement for TCL to conduct its after sales services to its customers.

	7.
	Unless
an agreement is reached under following section 8, both Parties shall discuss and agree on the setting up of an escrow fund from the proceeds of the sale of the Products
by Wavecom APAC to TCL under this agreement for use in the after sales service by TCL to its customers caused by defects or quality problem of the Products supplied by Wavecom APAC. Such agreement in
writing and signed by both Parties shall form an integral part of this Agreement.

	8.
	Both
Parties shall use best efforts to reach an agreement on an alternative solution to the above sections 6 and 7, covering the same concerns. 

29

QuickLinks

COMPACT 605 WITH WISMO FLEX AGREEMENTQuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10(i)  

THIS AGREEMENT made as of the 29th day of October, 2002. 

BETWEEN  

METALLIC VENTURES INC., a corporation

incorporated under the Laws of Ontario 

(hereinafter
called the "Corporation") 

OF THE FIRST PART

and:

TERRA ANDROMEDA

(hereinafter
called the "Executive") 

OF THE SECOND PART  

WITNESSES THAT:  

        WHEREAS the Executive is presently employed by the Corporation in the capacity of Controller reporting to the
Chair of the Board of Directors of the Corporation; 

        AND WHEREAS the Corporation and the Executive are desirous of having certain rights and benefits in the event that the Executive is
dismissed or the employment of the Executive with the Corporation is terminated in a manner set forth hereinafter; 

        AND WHEREAS the Corporation wishes to retain the benefit of the employment of the Executive with the Corporation and to ensure that the
Executive is able to carry out his responsibilities with the Corporation free from any distractions associated with any potential change in the ownership or control of the Corporation or its assets; 

        NOW THEREFORE in consideration of the promises and the mutual covenants and agreements hereinafter contained, and for other good and
valuable consideration, the receipt and sufficiency of which is hereby acknowledged by each of the Executive and the Corporation, it is agreed by and between the Executive and the Corporation as
follows: 

-2- 

 
 

ARTICLE ONE    
    
    DEFINITIONS AND INTERPRETATION    
    

Section
1.01 Definitions: In this Agreement, the following words and terms with the initial letter or letters thereof
capitalized shall have the meanings set forth below: 

	(a)
	"Accountant"
means a Certified Accountant reasonably acceptable to the Executive. If the Executive and the Auditor cannot agree on an Accountant, then both the Executive and the
Auditor shall nominate an accountant. The two nominees shall select a third accountant who shall act as Accountant hereunder and whose determinations shall be binding on the parties. All fees and
disbursements and other expenses incurred in the nomination process and the retainer of the Accountant shall be borne by the Corporation;

	(b)
	"Agreement"
means this agreement as amended from time to time;

	(c)
	"Auditor"
means the accounting firm which was, immediately prior to the Change in Control, the Corporation's independent auditor;

	(d)
	"Benefit
Plans" means all stock option or share purchase plans, employee loans, home purchase loans, insurance, long-term disability, medical, dental or other executive and employee
benefit plans, including without limitation any pension or company sponsored retirement savings plans, and all privileges (including without limitation automobile leases) provided by the Corporation
or any subsidiary of the Corporation to the Executive;

	(e)
	"Cause"
shall mean termination by the Corporation of the Executive's employment based upon (i) the willful and continued failure by the Executive substantially to perform the
Executive's duties with the Corporation after a written demand for substantial performance is delivered to the Executive by the board of directors of the Corporation, which demand specifically
identifies the manner in which the board believes that the Executive has not substantially performed the Executive's duties, other than any (a) such failure resulting from the Executive's
incapacity due to physical or mental illness, (b) any such actual or anticipated failure after the issuance of a notice of termination by the Executive following a Triggering Event or
(c) the Corporation's active or passive obstruction of the performance of the Executive's duties and responsibilities or (ii) the willful engaging by the Executive in conduct which is
demonstrably and materially injurious to the Corporation monetarily after a written explanation from the board detailing the conduct and the injury is delivered to the Executive. For purposes of this
definition, no act, or failure to act, on the Executive's part shall be deemed willful unless done, or omitted to be done, by the Executive not in good faith and without reasonable belief that the
Executive's act, or failure to act, was in the best interest of the Corporation; 

-3- 

	(f)
	"Change
in Control" means a transaction or series of transactions whereby directly or indirectly;

	(i)
	any
Person or combination of Persons acting jointly and in concert (other than the Executive or a corporation controlled directly or indirectly by the Executive)
acquires a sufficient number of securities of the Corporation to affect materially the control of the Corporation and for the purposes of this Agreement, a Person or combination of Persons acting
jointly and in concert, holding shares or other securities in excess of the number which, directly or following the conversion or exercise thereof, would entitle the holders thereof to cast 20% or
more of the votes attached to all shares of the Corporation which may be cast to elect directors of the Corporation, shall be deemed to be in a position to affect materially the control of the
Corporation, in which case the Change in Control shall be deemed to occur on the date that is the later of the date that the security representing one more than that required to cast 20% of the votes
attached to all shares of the Corporation which may be cast to elect directors of the Corporation is acquired or the date on which the persons acting jointly and in concert agree to so act;

	(ii)
	the
Corporation shall consolidate or merge with or into, amalgamate with, or enter into a statutory arrangement with, any other Person (other than a corporation
controlled directly or indirectly by the Executive) and, in connection therewith, all or part of the outstanding shares of the Corporation which have voting rights attached thereto shall be changed in
any way, reclassified or converted into, exchanged or otherwise acquired for shares or other securities of the Corporation or any other Person or for cash or any other property, in which case the
Change in Control shall be deemed to occur on the date of closing of the consolidation, merger, amalgamation or statutory arrangement, as the case may be; or

	(iii)
	the
Corporation shall sell or otherwise transfer, including by way of the grant of a leasehold interest (or one or more subsidiaries of the Corporation shall sell or
otherwise transfer, including without limitation by way of the grant of a leasehold interest) property or assets (A) aggregating more than 50% of the consolidated assets (measured by either
book value or fair market value) of the Corporation and its subsidiaries as at the end of the most recently completed financial year of the Corporation or (B) which during the most recently
completed financial year of the Corporation generated, or during the then current financial year of the Corporation are expected to generate, more than 50% of the consolidated operating income or cash
flow of the Corporation and its subsidiaries, to any other Person or Persons, in which case the Change in Control shall be deemed to occur on the date of transfer of the assets representing one dollar
more than 50% of the consolidated assets in the case of clause (A) or 50% of the consolidated operating income or cash flow in the case of clause (B), as the case may be; 

-4- 

other
than a transaction or series of transactions which involves a sale of securities or assets of the Corporation with which the Executive is involved as a purchaser in any manner, whether directly
or indirectly, and whether by way of participation in a corporation or partnership that is a purchaser or by provision of debt, equity or purchase leaseback financing, but excluding where the
Executive's sole involvement with such a purchase is the ownership of an equity interest of less than 5% of the acquirer where the acquirer is a public company, and the Executive and persons acting
jointly and in concert with the Executive hold securities of the acquirer which, directly, or following the conversion or exercise thereof, would entitle the holders thereof to cast 5% or more of the
votes attached to all shares or other interests of the acquirer which may be cast to elect directors or the management of the acquirer; 

	(g)
	"Code"
shall mean the United States Internal Revenue Code of 1986, as amended from time to time;

	(h)
	"Disability"
shall be deemed to be the reason for the termination by the Corporation of the Executive's employment if, as a result of the Executive's incapacity due to physical or
mental illness, the Executive shall have been absent from the full-time performance of the Executive's duties with the Corporation for a period of twelve (12) consecutive months, the
Corporation shall have given the Executive a notice of termination for Disability, and, within thirty (30) days after such notice of termination is given, the Executive shall not have returned
to the full-time performance of the Executive's duties;

	(i)
	"Exchange
Act" shall mean the United States Securities Exchange Act of 1934, as amended from time to time;

	(j)
	"Expiry
Date" means the date which is 24 months after a Change in Control occurs; 

-5- 

	(k)
	"Person"
has the meaning given in Section 3(a)(9) of the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof, except that such term shall not include (i) the
Corporation or any of its subsidiaries, (ii) a trustee or other fiduciary holding securities under an employee benefit plan of the Corporation or any of its affiliates, (iii) an
underwriter temporarily holding securities pursuant to an offering of such securities, or (iv) a corporation owned, directly or indirectly, by the stockholders of the Corporation in
substantially the same proportions as their ownership of the stock of the Corporation;

	(l)
	"Severance
Payments" means the payments provided for in Articles 2 and 3 hereof;

	(m)
	"Total
Payments" means any payment or benefit received or to be received by the Executive in connection with a Change in Control or the termination of the Executive's employment
(whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement with the Corporation, any Person whose actions result in a Change in Control or any Person affiliated with
the Corporation or such Person); and

	(n)
	"Triggering
Event" means any one of the following events which occurs without the express agreement in writing of the Executive;

	(i)
	an
adverse change in any of the duties, powers, rights, discretion, salary or benefits of the Executive as they exist immediately prior to the Change of Control

	(ii)
	a
diminution of the title of the Executive as it exists immediately prior to the Change of Control

	(iii)
	a
change in the person or body to whom the Executive reports immediately prior to the Change of Control, except if such person or body is of equivalent rank or stature
or such change is as a result of the resignation or removal of such person or the persons comprising such body, as the case may be, provided that this shall not include a change resulting from a
promotion in the normal course of business, or

	(iv)
	a
change in the location at which the Executive is regularly required immediately prior to the Change of Control to carry out the terms of his employment with the
Corporation, unless the terms of employment of the Executive include the obligation to receive geographic transfers from time to time in the normal course of business. 

-6- 

Section
1.02 Plural and Gender: Whenever used in this Agreement, words importing the singular number only shall include the
plural and vice versa and words importing the masculine gender shall include the feminine gender. 

Section
1.03 Binding Effect: This Agreement shall be binding on the successors and assigns of the Corporation and shall
enure to the benefit of the personal representatives and heirs of the Executive. 

Section
1.04 Monetary Amounts: All references to monetary amounts in this Agreement are to lawful money in the
United States of America. 

 
 

ARTICLE TWO    
    
    RIGHTS OF EXECUTIVE    
    

Section
2.01 Right Upon Occurrence of Triggering Event:

	(a)
	Right:
If Change in Control occurs and if, in respect of the Executive, a Triggering Event occurs on or before the Expiry Date, the Executive shall be
entitled to elect to terminate his employment with the Corporation and to receive a payment from the Corporation in the amount an amount represented by the formula
A × (B + C) where: 

A
= 3; 

B
= the highest annualized rate of monthly base salary received by the Executive in the thirty-six months immediately preceding the Change in Control; and 

C
= the highest bonus amounts received by the Executive in the calendar year of the Change in Control or in any one of the three calendar years immediately preceding the calendar year of the Change in
Control; 

subject
to the monetary limitations set out in Article 4 below. 

	(b)
	Condition:
The right of the Executive provided for in subsection 2.01(a) hereof is conditional upon the Executive electing to exercise such right by
notice given to the Corporation within six months after the Triggering Event. 

Section
2.02 Right Upon Dismissal: The Executive shall be entitled to a payment from the Corporation in the amount
calculated in accordance with subsection 2.01(a) hereof, subject to the monetary limitations set out in Article 4, below, if the Executive is dismissed from his employment with the Corporation
prior to the Expiry Date for any reason other than Cause, death or Disability of the Executive. The Corporation shall not dismiss the Executive for any reason unless such dismissal is specifically
approved by the board of directors of the Corporation. 

-7-

Section
2.03 Benefit Plans: In the event that the Executive is entitled to a payment pursuant to section 2.01, 2.02 or 2.03
hereof, the Executive shall be entitled to have all Benefit Plans continued for a period of 24 months after the date of the giving of notice by the Executive pursuant to section 2.01 hereof or
the dismissal from employment with the Corporation of the Executive as referred to in section 2.02 hereof, as the case may be, or for such longer period as is available under any Benefit Plan when
coverage is provided from a source other than the Corporation. 

Section
2.04 Stock Options: All options to purchase common shares of the Corporation granted to the Executive shall vest
and become immediately exercisable upon the occurrence of a Change in Control. In the event that the Executive is entitled to a payment pursuant to section 2.01 or 2.02 hereof, the term during which
any option to purchase common shares of the Corporation granted to the Executive by the Corporation or any subsidiary of the Corporation may be exercised shall be extended to the later of the expiry
date of the option and 24 months after the date of the giving of notice by the Executive pursuant to section 2.01 hereof or the dismissal from employment with the Corporation of the Executive
as referred to in section 2.02 hereof, as the case may be, provided that the maximum term of any such option shall not exceed 10 years from the date of grant of such option. In addition, in
such event any provisions of such an option which restricts the number of common shares of the Corporation which may be purchased before a particular date shall be waived. In the event that the price
at which common shares of the Corporation may be purchased upon the exercise of any option granted at the same time as the option was granted to the Executive is reduced, the price at which common
shares of the Corporation may be purchased by the Executive pursuant to the exercise of the option held by the Executive shall be reduced to the lowest price at which common shares of the Corporation
may be purchased pursuant to any such option. The terms of any option agreement evidencing such option shall be deemed to be amended to reflect the provisions of this section 2.04. Nothing in the
provisions hereof shall preclude the Executive from participating in any purchase or exchange of options or shares which may occur upon a Change in Control. 

Section
2.05 Retransfer: In the event that the Executive moved to Nevada to accept employment with the Corporation, if the
Executive exercises pursuant to section 2.01 hereof or upon giving notice to the Corporation within six (6) months of dismissal from employment with the Corporation of the Executive as referred
to in section 2.02 hereof, as the case may be, the Corporation shall pay to the Executive an amount equal to the direct expenses of moving the Executive and his immediate family and their household
effects back to the location from which the Executive moved. 

-8-

Section
2.06 Outplacement Services: The Corporation shall pay the reasonable costs (to a maximum of 15% of the applicable
annual base salary and bonus of the Executive immediately prior to the Change in Control) of the services of any outplacement counseling service mutually satisfactory to the Corporation and the
Executive, and for a maximum period of 12 months, for the Executive in the event that the Executive is entitled to receive a payment pursuant to either section 2.01 or 2.02 hereof. 

Section
2.07 Notice of Termination: After a Change in Control and prior to the Expiry Date, any purported termination of
the Executive's employment (other than by reason of death) shall be communicated by notice of termination from one party to the other party in accordance with section 5.03 hereof. 

Section
2.08 Dispute Concerning Termination: If within fifteen (15) days after any notice of termination is given, or, if
later, prior to the date of termination (as determined without regard to this section 2.08), the party receiving such notice of termination notifies the other party that a dispute exists concerning
the effect of the termination under this Agreement either due to the Corporation's assertion that the termination was for Cause or due to the Corporation's denial of a Triggering Event, the date of
termination shall be extended until the date on which the dispute is finally resolved: (A) either by mutual written agreement of the parties or (B) by a final judgment, order or decree
of a court (which is not appealable or with respect to which the time for appeal therefrom has expired and no appeal has been lodged) adjudicating the rights and obligations of the Executive and the
Corporation under this Agreement with respect to the termination; provided, however, that the date of termination shall be extended by a notice of dispute given by the Executive only if such notice is
given in good faith and the Executive pursues the resolution of such dispute with reasonable diligence. 

Section
2.09 Compensation During Dispute: If a purported termination occurs following a Change in Control and prior to the
Expiry Date and the date of termination is extended in accordance with section 2.08 hereof, the Corporation shall continue to pay the Executive the full compensation in effect when the notice giving
rise to the dispute was given or, if higher, the compensation in effect immediately prior to the Change in Control, and shall continue the Executive as a participant in all compensation, benefit and
insurance plans in which the Executive was participating when the notice giving rise to the dispute was given, until the date of termination, as determined in accordance with section 2.08 hereof.
Amounts paid under this section 2.09 are in addition to all other amounts due under this Agreement and shall not be offset against or reduce any other amounts due under this Agreement. 

-9-

 
 

ARTICLE THREE    
    
    PAYMENTS AND REVIEW    
    

Section
3.01 Payments Under this Agreement: Any payment to be made by the Corporation pursuant to the terms of this
Agreement shall be paid by the Corporation in cash in a lump sum within ten business days of the giving of notice by the Executive pursuant to section 2.01 hereof or within ten business days of the
dismissal from employment with the Corporation of the Executive as referred to in section 2.02 hereof, as the case may be. Any such payment shall be calculated, in the case of section 2.01 hereof, at
the date of giving notice pursuant to section 2.01 hereof and, in the case of section 2.02 hereof, at the date of dismissal. 

Section
3.02 Review of Agreement: In the event of a threatened or pending Change in Control, or following a Change in
Control which is not followed within six months by a Triggering Event in respect of the Executive, the Corporation in either case shall review the terms of this Agreement and shall implement any
amendments hereto which are agreed to by both the Corporation and the Executive. 

Section
3.03 Designation of Beneficiary: In the event that the Executive dies prior to the satisfaction of all of the
obligations of the Corporation under this Agreement, any remaining amounts payable to the Executive by the Corporation shall be paid to the person or persons previously designated by the Executive to
the Corporation for such purposes. Any such designation of beneficiaries shall be made in writing, signed by the Executive and dated and filed with the Secretary of the Corporation. In the event that
no designation is made, all such amounts shall be paid by the Corporation to the estate of the Executive. 

Section
3.04 Agreement Supplemental: This Agreement shall be supplemental to any other contract of employment, whether
written or oral, that exists between the Corporation or any subsidiary of the Corporation and the Executive, except insofar as any such contract of employment relates to the termination of the
employment relationship between the Corporation or any subsidiary of the Corporation and the Executive after a Change in Control, in which case this Agreement shall supersede the termination
provisions of any such contract of employment. 

Section
3.05 Installment Payments: Notwithstanding Section 3.01, the Executive may elect by written notice to receive any
payments due to him hereunder by way of periodic or installment payments. 

-10- 

 
 

ARTICLE FOUR    
    
    COMPLIANCE WITH THE CODE    
    

Section
4.01 Maximum Payments: Notwithstanding any other provisions of this Agreement, in the event that any of the Total
Payments would not be deductible (in whole or in part), by the Corporation, an affiliate or Person making such payment or providing such benefit as a result of section 280G of the Code, then, to the
extent necessary to make the Total Payments deductible in their entirety (and after taking into account any reduction in the Total Payments provided by reason of section 280G of the Code in any
other plan, arrangement or agreement pursuant to which any of the Total Payments are paid), the cash Severance Payments shall first be reduced, and all other Severance Payments shall thereafter be
reduced; provided however that the Executive may elect to have the noncash Severance Payments reduced (or eliminated) prior to any reduction of the cash Severance Payments. 

Section
4.02 Procedures Related to Section 280G: For the purposes of this Article 4, (i) no portion of the
Total Payments the receipt or enjoyment of which the Executive shall have waived at such time and in such manner as not to constitute a "payment" within the meaning of section 280G of the Code shall
be taken into account, (ii) no portion of the Total Payments shall be taken into account which, in the opinion of the Accountant, does not constitute a "parachute payment" within the meaning of
section 280G of the Code, including by reason of section 280G(b)(4)(A) of the Code, (iii) the Severance Payments shall be reduced only to the extent necessary so that the Total Payments (other
than those referred to in clauses (i) or (ii) in their entirety constitute reasonable compensation for services actually rendered within the meaning of section 280G(b)(4)(B) of the Code
or are otherwise not subject to disallowance as deduction by reason of section 280G of the Code, in the opinion of the Accountant, and (iv) the value of any noncash benefit or any deferred
payment or benefit included in the Total Payments shall be determined by the Auditor in accordance with the principles of sections 280G(d)(3) and (4) of the Code. 

Section
4.03 Repayment in Certain Circumstances: If it is established pursuant to a final determination of a court or a
final Internal Revenue Service proceeding that, notwithstanding the good faith of the Executive and the Company in applying the terms of this Article 4, the Total Payments paid to or for the
Executive's benefit are in an amount that would result in any portion of such Total Payments being subject to the excise tax imposed under section 4999 of the Code, then, if a repayment by the
Executive would result in (i) no portion of the remaining Total Payments being subject to the excise tax imposed under section 4999 of the Code and (ii) a dollar-for-dollar reduction in
the Executive's taxable income and wages for purposes of federal, state and local income and employment taxes, the Executive shall have an obligation to pay the Corporation upon demand an amount equal
to the sum of (a) the excess of the Total Payments paid to or for the Executive's benefit over the Total Payments that could have been paid to or for the Executive's benefit without any portion
of such Total Payments being subject to the excise tax imposed under section 4999 of the Code; and (b) interest on the amount set forth in clause (a) at the rate provided in section
1274(b)(2)(B) of the Code from the date of the Executive's receipt of such excess until the date of such payment. 

-11-

 
 

ARTICLE FIVE    
    
    MISCELLANEOUS    
    

Section
5.01 Assignment and Assumption: This Agreement shall be assigned by the Corporation to any successor corporation of
the Corporation and shall be binding upon such successor corporation. For the purposes of this section 5.01, "successor corporation" shall include without limitation any Person referred to in
paragraphs 1(c)(ii) or (iii) hereof. The Corporation shall ensure that the successor corporation shall continue the provisions of this Agreement as if it were the original party in place of the
Corporation; provided however that the Corporation shall not thereby be relieved of any obligations to the Executive pursuant to this Agreement. In the event of a transaction or series of transactions
as described in paragraphs 1(c)(ii) or (iii) hereof, appropriate arrangements shall be made by the Corporation for the successor corporation to honor this Agreement as if the Executive had exercised
his maximum rights hereunder as of the effective date of such transaction. 

Section
5.02 Further Assurances: Each of the Corporation and the Executive agrees to make, do and execute or cause to be
made, done and executed all such further and other things, acts, deeds, documents, assignment and assurances as may be necessary or reasonable required to carry out the intent and purpose of this
Agreement fully and effectually. Without limiting the generality of the foregoing, the Corporation shall take all reasonable steps in order to structure the payment or payments provided for in this
Agreement in the manner most advantageous to the Executive with respect to provisions of the Code or similar legislation in place in the jurisdiction of residence of the Executive. 

Section
5.03 Notice: Any election or designation to be made by the Executive pursuant to the terms of this Agreement shall
be by notice in writing and shall be delivered to the Corporation at the following address: 

METALLIC
VENTURES INC.

2100 – 40 King St. West

Toronto ON M5H 3C2 

Attention:
President or Chief Executive Officer 

Section
5.04 Costs: The Corporation shall pay all costs and expenses, including without limitation legal fees, incurred by
the Executive in connection with the enforcement of the provisions of this Agreement. 

-12-

Section
5.05 Governing Law: This Agreement shall be governed by and be construed in accordance with the laws of the State
of Nevada and the federal laws of the United States of America applicable therein. 

Section
5.06 Severability: Any provision of this Agreement which contravenes any applicable law or which is found to be
unenforceable shall, to the extent of such contravention or unenforceability, be deemed severable and shall not cause this Agreement to be held invalid or unenforceable or affect any other provision
or provisions of this Agreement. 

Section
5.07 Independent Advice: The Executive acknowledges having been advised that he is entitled to obtain independent
legal advice with respect hereto prior to executing this Agreement. 

Section
5.08 Release of Claims: Notwithstanding any other provisions contained in this Agreement, the Corporation shall
require, as a condition precedent to the payment of the Severance Payments to the Executive, that the Executive execute, after his last day of employment by the Corporation, a release and covenant in
favor of the Corporation and its stockholders, officers, employees, directors and affiliates in the form appended hereto as Exhibit "A". If the Executive fails to provide the required release and
covenant, or within seven days following its delivery to the Corporation revokes the required release and covenant, and the Corporation has not alleged just cause for termination or denied a
Triggering Event in connection with the termination of employment, the sole obligation of the Corporation to the Executive under this Agreement shall be the payment of the equivalent of two weeks
salary calculated as at the time of termination. 

Section
5.09 No Mitigation: The Corporation agrees that, if the Executive's employment with the Corporation is terminated
hereunder, the Executive is not required to seek other employment or to attempt in any way to reduce any amounts payable to the Executive by the Corporation pursuant to the terms of this Agreement.
Further, the amount of any payment or benefit provided for in this Agreement shall not be reduced by any compensation earned by the Executive as the result of employment by another employer, by
retirement benefits, by offset against any amount claimed to be owed by the Executive to the Corporation, or otherwise. 

Section
5.10 Limitation of the Executive's Rights: This Agreement shall not give the Executive the right to remain employed
by the Corporation or interfere with or restrict the right of the Corporation to discharge or retire the Executive. The Executive is and shall remain an at-will employee of the Corporation in
accordance with the Corporation's policies, as are all employees of the Corporation. 

        IN
WITNESS WHEREOF the parties hereto have caused this Agreement to be executed as of the date first above written. 

-13-

	 	 	 	METALLIC VENTURES INC.

By:
	 	 	 	 
	 	 	 	 
	 	 	 	              /s/ RICHARD D. McNEELY              c/s

	SIGNED, SEALED AND DELIVERED	)	 	 
	in the presence of	)	 	 
	 	)	 	 
	 	)	 	 
	/s/  MILES BACHMAN      
	)	 	/s/  TERRA ANDROMEDA      

	Witness	)

)	 	TERRA ANDROMEDA

QuickLinks

ARTICLE ONE DEFINITIONS AND INTERPRETATION

ARTICLE TWO RIGHTS OF EXECUTIVE

ARTICLE THREE PAYMENTS AND REVIEW

ARTICLE FOUR COMPLIANCE WITH THE CODE

ARTICLE FIVE MISCELLANEOUS

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00065-of-00352.parquet"}]]