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[*] = CERTAIN CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 24B-2 OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.  

  
 

    Exhibit 10.29    
  

Ditech Communications TELOGY SOFTWARE LICENSE AGREEMENT  

        This Telogy Software Agreement (this "Agreement") sets forth the terms and conditions under which Ditech Communications, having a place of
business at 825 East Middlefield Rd., Mountain View, CA 94043 (the "Licensee") shall receive the Software Licenses and other products specified in Exhibit A hereto from Texas Instruments
Incorporated ("TI"), having a place of business at 12500 TI Boulevard, Dallas, TX 75243-4136 (Texas Instruments, together with its wholly owned subsidiary Telogy Networks, Inc. and
other Texas Instruments subsidiaries is referred to herein as "Telogy"). The Effective Date of this Agreement is April 16, 2002. This Agreement also sets forth other agreements between the
parties. 

1.    Definitions  

        1.1  "Initial
Term" means, for purposes of the Voice Software (as defined below) 2 years from the Effective Date, and which for purposes of the Echo Cancellation
Software (as defined below) means 4 years from the Effective Date. 

        1.2  "Additional
Software" or "Testing Software" means the testing software acquired by TI pursuant to a certain Asset Purchase Agreement by and between Licensee and TI dated
as of April 16, 2002. 

        1.3  "Defined
Standard" means any software function which is incorporated in the Software licensed to Licensee under the Agreement and which is required to be implemented to
comply with the published and industry recognized ITU Standard(s) contained in the Software delivered by Telogy to Licensee. 

        1.4  "Distributors"
means resellers, distributors, subdistributors, or other channel partners. 

        1.5  "Echo
Cancellation Software" means the Software Products as defined in, and as acquired by TI pursuant to, a certain Asset Purchase Agreement by and between Licensee and
TI dated as of April 16, 2002, including updates, upgrades, enhancements, releases and developments of such computer programs. 

        1.6  "Echo
Cancellation System" means a stand-alone echo cancellation device or product that includes a printed circuit board, one or more integrated circuits and echo
cancellation software, the primary function for which device or product is to reduce echo in a network, provided, however, that "Echo Cancellation
System" shall not include the echo cancellation component of a larger voice processing system the primary function of which is not to reduce echo in a network, even if the echo cancellation functions
are segregated from the other voice processing functions within such system, so long as such echo cancellation component is distributed solely as part of such larger processing system and not as a
separate product. 

        1.7  "Essential
Patent" means any duly issued United States, European Union member country, Canadian, Japanese or Australian patent that is owned and/or asserted by an ITU
Member and claimed by such ITU Member to be essential to the implementation of the "Defined Standard", wherein "essential to the implementation of the Defined Standard" means the applicable standard
cannot be implemented without infringing the patent owned and/or being asserted. 

Telogy
Networks, Inc.

Proprietary and Confidential 

 

        1.8  "Other
Patent" means any duly issued United States, European Union member country, Canadian, Japanese or Australian patent which is not "essential to the implementation
of the Defined Standard" (i.e. the Defined Standard can be implemented without infringing the patent owned and/or being asserted). 

        1.9  "ITU
Member" means a company that is a member of the International Telecommunications Union (which is an international telecommunications organization), and which ITU
member is obligated to, or has expressed a willingness to, license patents which are essential to the Defined Standard under reasonable and non-discriminatory terms. In clarification of
the foregoing, the definition "ITU Member" does not include an individual person who is a member of the ITU nor an incorporated entity which is a member of the ITU which exists primarily as a "holding
company" for patents. 

        1.10 "Licensee's
Products", or a "Product" means any device or product line manufactured by or for Licensee which utilizes TI or Telogy DSPs and which contains or embeds any
Software licensed by Licensee from Telogy, it being understood that each such Licensee device or product shall be set forth on an Exhibit B attached hereto as updated from time to time by
Licensee. The parties shall work together in good faith to determine when a Licensee product represents a new "Product" for which additional Starters Kit and Software Support fees are due, but in
general each "Product" shall mean a distinct product or set of products or product line. A Product will generally be characterized by use of the same or similar processors, and the sharing of certain
printed circuit board modules and will be aggregated in a single sub-exhibit within Exhibit B. Telogy agrees that the re-configuration of a Licensee Product to scale
such product to run fewer or more channels shall not be considered a "new Product" if substantially the same Telogy Software is used in such re-configured Product and such
re-configuration does not result in considerably more Software Support obligations for Telogy with respect to such re-configured Product. 

        1.11 "Reference
Design" means schematics and documentation relating to the hardware design for a product incorporating the Software which are provided by Telogy to Licensee. 

        1.12 "Software"
means DSP Software and the MCU Software. 

        1.13 "DSP
Software" means the various computer programs (including Voice Software and Echo Cancellation Software) licensed under this Agreement as set forth on
Exhibit A attached hereto which operate on TI digital signal processors together with related documentation and all updates, upgrades, enhancements, releases and developments of such computer
programs. The parties understand that the DSP Starters Kit is provided in object code only. 

        1.14 "MCU
Software" means the various computer programs (including Voice Software and Echo Cancellation Software) licensed under this Agreement as set forth on
Exhibit A attached hereto which operate on microprocessors, together with related documentation and all updates, upgrades, enhancements, releases and developments of such computer programs. The
parties understand that the MCU Starters Kit is provided in source and object code. 

        1.15 "Voice
Software" means Telogy's integrated software products to send voice, fax or data over networks using, for example, Internet Protocol, frame relay and
asynchronous transfer mode (ATM) technology. 

2.    Software and Reference Design License

        a.    License Unit License.    Subject to the provisions of Section 6 entitled "Price & Payment" herein
and provided that Licensee has committed to pay the fees (if any) for the applicable Starters Kit Licenses as set forth below, Telogy grants to Licensee a limited, nonexclusive,
non-transferable (except as provided in Section 15), worldwide, royalty-bearing (subject to the terms in Section 6 and Exhibit A), object code license to use, copy and
distribute (directly or indirectly through multiple tiers 

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of Distributors), the object code of the Software solely on (with respect to the DSP Software) or in conjunction with (with respect to the MCU Software) TI DSPs and solely when embedded in Licensee's
Products. Licensee may sublicense to Licensee's Distributors and customers the right to use the object code of the Software solely when embedded in Licensee's Product. Licensee agrees any such
sublicense to the Software shall be pursuant to a written license agreement between Licensee and sublicensee which restricts sublicensee's use to object code embedded in the Product and prohibits
sublicensee from copying the Software, or reverse engineering, decompiling, or disassembling the Software. Licensee may not sublicense the Software other than as explicitly set forth in this
Section 1a. Licensee does not obtain any rights pursuant to the License Unit License other than as explicitly granted in this Agreement. 

        b.    DSP Starters Kit License.    Subject to the provisions of Section 6 entitled "Price & Payment"
herein, Telogy grants to Licensee a limited, nonexclusive, non-transferable (except as provided in Section 15), object code license (i) to use the DSP Software for Licensee's
internal use on the Product at the following location: 825 East Middlefield Rd., Mountain View, CA 94043 (the "Location") (and such other locations, as applicable, pursuant to Licensee's notification
to Telogy that it desires to use the Software at another Licensee location), and (ii) to use the DSP Software to demonstrate Licensee's Product to Licensee's Distributors, customers and
potential customers. This DSP Starters Kit License only entitles Licensee to use the DSP Software for internal use and demonstration as set forth herein, and does not give Licensee the right to use
the DSP Software at a location other than the Location, modify the DSP Software or distribute, sublicense or otherwise transfer the DSP Software directly or indirectly through third parties. Licensee
does not obtain any rights pursuant to the DSP Starters Kit License other than as explicitly granted in this Agreement. 

        c.    MCU Starters Kit License.    Subject to the provisions of Section 6 entitled "Price & Payment"
herein, Telogy grants to Licensee a limited, nonexclusive, non-transferable (except as provided in Section 15), license (i) to use, reproduce, modify and have modified the
source code of the MCU Software solely at the Location and for Licensee's internal use on the Project, and such other locations, as applicable, pursuant to Licensee's purchase of additional MCU
Starters Kit licenses as set forth in Section 6a
below, and (ii) to use the object code of the MCU Software to demonstrate Licensee's Product to Licensee's Distributors, customers and potential customers. This MCU Starters Kit License only
entitles Licensee to use the MCU Software for internal use and demonstration as set forth herein, and does not give Licensee the right to use the MCU Software at a location other than the Location, or
distribute, sublicense or otherwise transfer the MCU Software directly or indirectly through third parties. Licensee does not obtain any rights pursuant to the MCU Starters Kit License other than as
explicitly granted in this Agreement. 

        d.    Testing Software License.    Telogy grants to Licensee a limited, nonexclusive, non-transferable
(except as provided in Section 15), object code license (i) to use the Testing Software for Licensee's internal use on its Products at the applicable Locations, and (ii) to use
the Testing Software to demonstrate Licensee's Product to Licensee's Distributors, customers and potential customers. This Testing Software License only entitles Licensee to use the Testing Software
for internal use and demonstration as set forth herein, and does not give Licensee the right to use the Testing Software at a location other than the Location, modify the Testing Software or
distribute, sublicense or otherwise transfer the Testing Software directly or indirectly through third parties. Licensee does not obtain any rights pursuant to the Testing Software License other than
as explicitly granted in this Agreement. 

        e.    Reference Design License.    Subject to the provisions of Section 6 entitled "Price and Payment" herein,
Telogy grants to Licensee a limited, non-exclusive, non-transferable (except as provided in Section 15), worldwide, royalty-free (except as set forth below)
license to use the Reference Design in the development of its Product. Licensee may distribute Products developed utilizing the Reference Design solely in connection with its distribution of the
Software, but may not sublicense or otherwise transfer or divulge the Reference Design to any third party or use the Reference Design or any part 

3

 

thereof in the development of any other product. Licensee does not obtain any rights pursuant to the Reference Design License other than as explicitly granted in this Agreement. 

        f.    Limited Exclusive License.    Notwithstanding the non-exclusive nature of the license rights granted
above, Telogy hereby grants Licensee, solely with respect to the Echo Cancellation Software, an exclusive license as follows: (i) for a period of two (2) years after the Effective Date
(the "Initial Exclusive Period"), Licensee shall have an exclusive license with respect to those Persons listed on Exhibit D and any other company with respect to use of the Echo Cancellation
Software in Echo Cancellation Systems and (ii) for a period of two (2) additional years after the Initial Exclusive Period, Licensee shall have an exclusive license with respect to those
Persons listed on Exhibit D with respect to use of the Echo Cancellation Software in Echo Cancellation Systems. Telogy further agrees for a period of four (4) years after the Effective
Date that such exclusive license shall extend to Telogy in that Telogy shall not use the Echo Cancellation Software or Additional Software in Echo Cancellation Systems developed by or for Telogy.
Finally, in clarification of the foregoing, such exclusive license shall mean that Telogy shall not license, nor sublicense another party to further sublicense, the Echo Cancellation Software or
Additional Software to the Persons and companies defined above for use in Echo Cancellation Systems. This Limited Exclusive License shall not be interpreted in a manner that prevents Telogy from
fulfilling its obligations under that certain Subcontractor Agreement between the parties of even date herewith. 

        g.    Echo Cancellation Software Source Code for Escrow Purposes.    Upon Licensee's reasonable request, Telogy agrees
to work and cooperate in good faith and in an expeditious manner with Licensee and a Licensee customer which is requesting an escrow for the Echo Cancellation Software. If such customer demands that
the Echo Cancellation Software be put into escrow following such cooperation and discussions, Telogy shall execute with such Licensee customer a source code escrow agreement granting such customer
access to the source code of the Echo Cancellation Software in the event a release condition as set forth in such escrow agreement is triggered. 

3.    Title.    As between the parties, title to the Software and Reference Design, including all copies and derivative works
thereof shall be in and remain with Telogy. Licensee shall retain title to all software and intellectual property belonging to Licensee before the Effective Date, and any original software or hardware
independently developed by Licensee after the Effective Date and incorporated in or added to the Software or Reference Design. Any confidential information, including without limitation the Software
and Reference Design, disclosed by one party to the other under the terms of this Agreement, shall be governed by the terms of the Non-Disclosure Agreement executed by the parties on even
date herewith. Licensee agrees not to "unlock", decompile, or reverse-assemble the binary or object code portions or versions of the Software, as the terms are generally used in the trade. Telogy
claims and reserves all rights and benefits afforded federally and internationally copyrighted works. Licensee shall reproduce and include in all copies of the Software prepared by Licensee's
organization the copyright notice(s) and proprietary legend(s) of Telogy as they appear in the Software. 

4.    Warranty.    Telogy warrants for a period of six (6) months from Telogy's delivery of the Software to Licensee (the
"Software Warranty Period") that the Software provided by Telogy to Licensee will conform in all material respects to Telogy's published specifications. Telogy does not warrant that the operation of
the Software will be uninterrupted or error-free, or that the Software functions will meet Licensee's individualized requirements. Licensee understands that any such repairs or
replacements to the Software supplied by Telogy shall not extend the Software Warranty Period. The warranties set forth in this article will not apply with respect to Software that has been altered or
modified by Licensee or failures resulting from improper operation, interconnection, or installation unless such alteration, modification, operation, interconnection or installation was provided by
Telogy. 

        Telogy
represents and warrants that it has all title, right and interest to grant the licenses it grants Licensee under this Agreement in accordance with the terms of this Agreement and
its Exhibits. 

4

 

        TELOGY
DISCLAIMS ALL OTHER WARRANTIES, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR OTHERWISE WITH
RESPECT TO THE SOFTWARE PROVIDED PURSUANT TO THIS AGREEMENT. 

        THE
TELOGY REFERENCE DESIGN IS PROVIDED "AS IS" AND WITHOUT WARRANTY, INCLUDING BUT NOT LIMITED TO ANY WARRANTY AGAINST THIRD PARTY INTELLECTUAL PROPERTY INFRINGEMENT. LICENSEE
UNDERSTANDS AND ACKNOWLEDGES THAT THE REFERENCE DESIGN HAS NOT BEEN TESTED OR CERTIFIED BY ANY GOVERNMENT OR INDUSTRY REGULATORY ORGANIZATION. 

5.    Software Support.    In consideration for the Annual Software Support Fee (as set forth in Section 6 below), Telogy
shall provide to Licensee Software support services for the Software. 

        a.    Software Fixes.    During the Software Support Period, Telogy shall, as its exclusive remedy for any
nonconformity in the Software, and at its facilities in Germantown, Maryland, U.S.A., repair or replace (at its option) the Software with a conforming version thereof, provided that Licensee gives
Telogy prompt notice of such non-conformity and supplies to Telogy reasonably requested documentation, error descriptions, program traces, or other debugging information related to the
reported non-conformity as set forth in Exhibit C. Resolution may take the form of a written response, supplementary documentation, work-around, coding change, product
patch, postponement to the next release, or other correctional aids as set forth in Exhibit C. Any supplied repair or replacement of the Software shall be supplied as a single copy in suitable
electronic media format. 

        b.    Technical Support.    As further described in Exhibit C, Telogy will provide telephone, fax, pager,
email, and written technical support as follows: 

	1.
	Telogy
will assist Licensee in determining if problems Licensee may encounter are caused by Software errors,

	2.
	Telogy
will answer questions concerning the installation and configuration of the Software,

	3.
	Telogy
will offer assistance with resolving Licensee's problems which occur during the normal usage of the Software. Telogy may at its discretion refer Licensee to support consulting
services, for which Telogy requires an additional fee, if Telogy determines that Licensee requires ongoing help with a particular problem which is not caused by Telogy, or that the problem involves
customization of the Products. 

        c.    MCU Software Special Provision.    Licensee understands and acknowledges that for the purposes of determining
Telogy's maintenance obligations the MCU Software is categorized and designated as follows: the "Porting Source Code" which is necessary for Licensee's porting of the MCU Software to its Product, and
the "Core Source Code", which encompasses the remaining MCU software and includes the core functionality. Licensee's modification of the Porting Source Code shall not affect Telogy's Software support
obligations under this agreement. Licensee's modification of the Core Source Code shall void Telogy's Software support obligations with respect to the MCU Software. 

        d.    Future Updates.    Telogy shall make all reasonable efforts to notify Licensee of each upcoming Update a minimum
of sixty (60) days prior to the General Availability release date. The notification from Telogy shall consist of a written document containing, as applicable, a summary of planned changes.
Future Updates do not include new features announced as extra cost options. Notwithstanding the foregoing, during the applicable Initial Period, Licensee shall be entitled to receive such new
features, for no charge. 

5

 

6.    Price & Payment.    Licensee agrees to pay Telogy the following fees: 

        a.    Software Starters Kit and Reference Design License Fees.    In consideration for the Software Starters Kit and
Reference Design License granted Licensee in Section 2 of this Agreement, Licensee agrees to pay Telogy the one-time license fee as set forth in Exhibit A. Licensee
understands that the fees for the Software Starters Kit and Reference Design are due upon delivery. 

        b.    License Unit Fee.    Licensee agrees to purchase the License Units as set forth in Exhibit A, where such
License Unit contains the number of licenses on a per channel basis for Licensee's Products. Licensee shall not owe any additional royalties for distribution of Products developed using the Reference
Design provided that Licensee has paid the Software License Units for such Products. In consideration for the licenses in the Software License Unit License granted to Licensee in Section 2 of
this Agreement, Licensee agrees to pay Telogy the license fees (if any) set forth in Exhibit A. Licensee may pay for the License Units in volume increments and at intervals in accordance with
Licensee's requirements unless otherwise provided in Exhibit A. Within thirty (30) days following the end of each calendar quarter, Licensee agrees to pay Telogy the applicable Royalties
due for Software distributed in the preceding quarter, such payment to be made concurrently with Licensee's report on Software Royalties due for such quarter. The amount of the Telogy Software Royalty
and the method of calculating the amounts due are set forth in Exhibit A. The parties understand that Royalty payments do not require the submission of an invoice from Telogy. 

        Licensee
shall keep full, clear and accurate records with respect to Licensee's Products containing the Software. These records shall be retained for a period of three (3) years
from date of payment notwithstanding the expiration or other termination of this Agreement. Telogy shall have the right through an independent certified public accountant and at its expense, to
examine and audit at Licensee facilities, upon reasonable notice to Licensee and during normal business hours, all such records and such other records and accounts as may under recognized accounting
practices contain information bearing upon the amount of Licensee's Products shipped under this Agreement. Prompt adjustment shall be made to correct for any errors and/or omissions disclosed by such
examination or audit. If, following such examination of Licensee's records, Licensee has shipped Licensee's Products for which Licensee did not have a license, Licensee shall immediately pay the
license fees for these Licensee's Products, and if the records show an underpayment of 5% or more, Licensee will pay the costs of such audit. Such audits will be conducted no more than once every six
months. 

        c.    Software Support Payment.    Licensee agrees to purchase Software Support for the applicable products and on the
price and payment terms as set forth in Exhibit A (the "Annual Software Support Fee"), which fee represents Telogy's current Annual Software Support Fee valid for the first annual period
following the delivery of the applicable Starters Kit. Software Support shall automatically renew for subsequent 1 year periods at Telogy's standard then-current Annual Software
Support Fee, unless Telogy receives written notice of termination from Licensee at least thirty (30) days prior to expiration of the then-current Software Support period. Telogy
shall invoice Licensee for Annual Software Support Fees for the applicable products prior to the payment due date, which payment for annual Software Support is due thirty (30) days prior to the
expiration of the then-current Software Support period. Reinstatement of Software Support following a lapse shall require payment by Licensee of Telogy's applicable Annual Software Support
Fees, calculated on a pro rata basis for the lapsed period. Licensee shall have the right to discontinue Software Support upon providing thirty (30) days' written notice, whereupon Licensee
shall be entitled to a pro rata refund of any prepaid Software Support Fees. 

        d.    Delivery.    Telogy shall deliver the Software and Reference Design to Licensee FCA Germantown, Maryland. 

        e.    Payments.    All payments hereunder shall be made in United States Dollars by means of (i) check sent to
Telogy care of Accounts Receivable Department, or (ii) by telegraphic transfer to the 

6

 

bank account of Telogy. Telogy shall supply telegraphic transfer information to Licensee within a reasonable period after the Effective Date. Payment Terms are Net 30 days. Any outstanding
balances unpaid on the date when due to Telogy shall be subject to interest at the rate of twelve percent (12%) per annum of such balance until paid. 

        f.    Taxes.    Licensee shall be solely responsible for payment of any and all international, federal, state and
local sales, use, value-added and excise taxes, any other taxes or duties of any nature whatsoever assessed upon or with respect to the services or equipment provided hereunder or licenses,
sublicenses or leases granted hereunder, or otherwise arising from this Agreement and the transactions contemplated hereby, except that items of tax based in whole or in part on the income of a party
shall be the sole responsibility of such party. Should Telogy be required to remit sales and/or use taxes on behalf of Licensee for any reason whatsoever, Licensee agrees to reimburse Telogy for all
such amounts without regard to any prior or planned transaction(s) between Licensee and any taxing authority. 

        g.    Standards-Based IP which is not a Defined Standard.    The parties understand and acknowledge that the above
fees do not include fees or royalties which may be payable to third parties who claim such fees or royalties based on adherence to an ITU, ATM Forum, Frame Relay Forum or other published standard
which is not listed as a Defined Standard, and Licensee is responsible for any such third party fees or royalties resulting from Licensee's use and distribution of the Software and Reference Design.
To the extent Telogy becomes aware of any such fees or royalties being credibly claimed by third parties, Telogy shall use its reasonable good faith efforts to notify Licensee of such claims, it being
understood and agreed that Telogy's failure to so notify Licensee shall not be deemed a breach of this Agreement. 

7.    Term and Termination.    Either Party may terminate this Agreement if the other Party (a) fails to pay any amount owed
when due or breaches any other material term or condition of the Agreement, and fails to submit a plan to cure such breach, which plan is reasonably acceptable to the nonbreaching Party, at least
thirty (30) days after the breaching Party receives written notice of such breach from the other Party, or (b) assigns or transfers this Agreement without the other Party's consent
except as provided herein, or (c) makes an assignment for the benefit of creditors, or (d) files or has filed against it, petition for relief under federal or state bankruptcy laws. 

        After
the Initial Term, the licenses for the applicable Software shall expire in accordance with their terms as set forth in this Agreement and its Exhibits, provided that, Licensee
shall have the right to extend the licenses for any Software for which the Initial Term is expiring, by agreeing to pay Telogy the appropriate license fees for such Software, as set forth in the
applicable Section of Exhibit A for such Software. 

        Upon
termination or expiration, Licensee shall cease from using the applicable Software and Reference Design and return or destroy all copies of the Software and Reference Design,
including derivative works thereof, and the licenses as set forth in Section 2 shall terminate. Any termination hereunder shall not affect the sublicenses granted to Licensee's customers
pursuant to Section 2, which have been paid for pursuant to Section 6 of this Agreement. In the event of termination, Telogy shall be relieved of any warranty or Software Support
obligations. Further, any termination of one portion of the Software shall not affect the continuation of the license for other Software for which the licenses were not terminated or did not expire. 

8.    Telogy Indemnification for Software

        In
consideration for the fees paid to Telogy as set forth in the attached Exhibit A, the Parties hereby agree that the following indemnification provision shall govern the
parties' rights and obligations under this Agreement 

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        8.1    Essential Patents    

        8.1.1    Telogy Indemnification for Essential Patents.    Telogy will indemnify and hold Licensee harmless against any
damages or liabilities (excluding consequential and exemplary damages, provided that for
purposes of this Agreement the parties understand and agree that third party infringement damages claims for royalties and/or lost profits shall be deemed "direct" damages) finally awarded against
Licensee and will defend any claim, suit or proceeding against Licensee insofar as such claim, suit or proceeding is based on an allegation that the manufacture of the Software or the use or
distribution thereof directly infringes an Essential Patent, and will pay those costs and damages (including settlement costs) finally awarded or agreed-upon, as applicable, as the result
of any suit based on such claim provided (i) Telogy is promptly notified of such claim, suit or proceeding (provided that delay in providing prompt notice shall relieve Telogy of its
obligations only to the extent that it can demonstrate that it has been actually prejudiced by such delay), (ii) Telogy is given all reasonably applicable evidence in Licensee's possession,
custody or control, to the extent such evidence does not breach any confidentiality obligations or waive any attorney-client privilege or attorney work product of Licensee (iii) Telogy is given
reasonable assistance in and sole control of the defense thereof and all negotiations for its settlement or compromise, (iv) Licensee has paid all fees due to Telogy under the Agreement and
continues to pay all such fees as such fees become due under the Agreement, (v) if Licensee has a license under any patents that may be the subject of an infringement allegation hereunder, to
the extent permitted by such license Telogy is allowed to use such patent license to assist in resolving any third party claim hereunder, and (vi) in the event Licensee owns or has a license to
or any other rights in an Essential Patent, to the extent possible and considered commercially reasonable by Licensee Telogy is allowed to use such Essential Patent rights in resolving the third party
claim hereunder. If Telogy requests in writing for reasonable assistance for such defense from Licensee, Telogy will pay for reasonable expenses incurred by Licensee in providing such assistance.
Furthermore, Telogy agrees to indemnify Licensee from and reimburse Licensee for reasonable costs and expenses incurred by Licensee in the defense of such suit or claim, if Telogy does not undertake
the defense thereof. The foregoing sentence does not limit Licensee's right to sue Telogy for breach of this Agreement and to seek equitable relief, including without limitation specific performance. 

        8.1.2    Telogy Remedies for Essential Patent Infringement Claims.    In the event of an infringement allegation for
an Essential Patent, Telogy will, at its option and expense, either (i) obtain a license or make other arrangement that allows Licensee to continue to use, copy and distribute the Software in
accordance with Section 2 hereof, or (ii) modify such Software suitably or substitute suitable Software therefor in a manner which shall not materially affect the functionality of the
Software. Telogy agrees that it will not enter into a settlement that adversely affects Licensee "s rights under this Agreement or otherwise binds Licensee in any way without Licensee's prior written
consent, which consent shall not be unreasonably withheld or delayed. With respect to a particular claim relating to an Essential Patent, if Telogy fulfills the obligations in subpart 8.1.1 above and
provides Licensee one of the options in this 8.1.2, then as of the date of Telogy taking such action Telogy's indemnity obligation for that claim shall be entirely fulfilled and Telogy shall have no
liability to Licensee for any damages, liabilities or costs incurred after that date with respect to such claim. 

        8.2    Other Patents    

        8.2.1    Telogy Indemnification for Other Patents.    Telogy will indemnify and hold Licensee harmless against any
damages or liabilities (excluding consequential and exemplary damages, provided that for purposes of this Agreement the parties understand and agree that third party infringement damages claims for
royalties and/or lost profits shall be deemed "direct" damages) finally awarded against Licensee and will defend any claim, suit or proceeding against Licensee 

8

 

insofar as such claim, suit or proceeding is based on an allegation that the manufacture of the Software or the use or distribution thereof directly infringes any Other Patent, copyright or other
intellectual property right, and will pay those costs and damages (including settlement costs) finally awarded or agreed-upon, as applicable, as the result of any suit based on such claim,
provided (i) Telogy is promptly notified of such claim, suit or proceeding (provided that delay in providing prompt notice shall relieve Telogy of its obligations only to the extent that it can
demonstrate that it has been actually prejudiced by such delay), (ii) Telogy is given all reasonably applicable evidence in Licensee's possession, custody or control, to the extent such
evidence does not breach any confidentiality obligations or waive any attorney-client privilege or attorney work product of Licensee (iii) Telogy is given reasonable assistance in and sole
control of the defense thereof and all negotiations for its settlement or compromise, (iv) Licensee has paid all fees due to Telogy under the Agreement and continues to pay all such fees as
such fees become due under the Agreement, (v) in the event Licensee owns or has a license to or any other rights in an Essential Patent, to the extent possible and considered commercially
reasonable by Licensee, Telogy is allowed to use such Essential Patent rights in resolving the third party claim hereunder. If Telogy requests in writing for reasonable assistance for such defense
from Licensee, Telogy will pay for reasonable expenses incurred by Licensee in providing such assistance. Furthermore, Telogy agrees to indemnify Licensee from and reimburse Licensee for reasonable
costs and expenses incurred by Licensee in the defense of such suit or claim, if Telogy does not undertake the defense thereof. The foregoing sentence does not limit Licensee's right to sue Telogy for
breach of this Agreement and to seek equitable relief, including without limitation specific performance. 

        8.2.2    Telogy Remedies for Other Patent Infringement Claims.    In the event of any such suit or threatened suit or
claim, Telogy will, at its option and expense, either (i) obtain a license or make other arrangement that allows Licensee to continue to use, copy and distribute the Software in accordance with
Section 2 hereof, (ii) modify such Software suitably or substitute suitable Software therefor in a manner which shall not materially affect the functionality of the Software, or
(iii) if (i) or (ii) cannot be effected by Telogy's reasonable and diligent efforts, repurchase Telogy-provided Software at its then-current depreciated value. Telogy
agrees that it will not enter into a settlement that adversely affects Licensee's rights under this Agreement or otherwise binds Licensee in any way without Licensee's prior written consent, which
consent shall not be unreasonably withheld or delayed. With respect to a particular claim relating to an Other Patent, if Telogy fulfills the obligations in subpart 8.2.1 above and provides Licensee
one of the options in this subpart 8.2.2, then as of the date of Telogy taking such action Telogy's indemnity obligation for that claim shall be entirely fulfilled and Telogy shall have no liability
to Licensee for any damages, liabilities or costs incurred after that date with respect to such claim. 

        8.3    Exceptions to Telogy Liability and Obligations.    Telogy shall have no liability for any costs, losses or
damages resulting from Licensee's willful acts, or any settlement or compromise incurred or made by Licensee without Telogy's prior written consent. Telogy shall have no obligation to defend and shall
have no liability for any costs, losses or damages to the extent an infringement allegation is based upon: (i) use of the Software in combination with any device or software (including
derivative works of the Software developed by Licensee) not provided by Telogy, to the extent the claim is based upon such combination, (ii) use of the Software on a product other than the
Licensee Product on which the Software is licensed to be used; (iii) a manufacturing or other process carried out by or through Licensee and utilizing any Software provided by Telogy, to the
extent the infringement is caused by such manufacturing or other process (iv) use of the Software in a manner or for an application other than for which it was licensed; (v) Licensee
modifications to the Software; (vi) Telogy's compliance with
Licensee's particular design or specifications (such claims—i.e. (i) through (vi) above—being both individually and collectively referred to herein as "Other
Claims"). 

9

 

        8.4    Licensee Indemnification.    Licensee shall indemnify and hold Telogy harmless against any damages, liabilities
(excluding consequential and exemplary damages, provided that for purposes of this Agreement the parties understand and agree that third party infringement damages claims for royalties and/or lost
profits shall be deemed "direct" damages) incurred by Telogy and shall defend any claim, suit or proceeding brought against Telogy insofar as such claim, suit or proceeding is based on (i) an
allegation that Telogy has contributed to or induced Licensee to infringe an Essential Patent by Licensee's use of the Software in a manner other than that for which it is licensed hereunder, or
(ii) an allegation that Telogy has contributed to or induced Licensee to infringe a third party patent based on the Software's adherence to an ITU, ATM Forum, Frame Relay Forum or other
published standard which is not listed as a Defined Standard or (iii) an infringement allegation arising from Other Claims, and will pay those costs and damages (including settlement costs)
finally awarded or agreed-upon, as applicable, as the result of any suit based on such claim provided Licensee (a) is promptly notified of such claim, suit or proceeding (provided
that delay in providing prompt notice shall relieve Licensee of its obligations only to the extent that it can demonstrate that it has been actually prejudiced by such delay), (b) is given all
reasonably applicable evidence in Telogy's possession, custody or control relating to such claim, suit or proceeding, to the extent such evidence does not breach any confidentiality obligations or
waive any attorney-client privilege or attorney work product of Telogy, (c) is allowed to control the defense thereof and all negotiations for its settlement or compromise. If Licensee requests
in writing for assistance for such defense from Telogy, Licensee will pay for reasonable expenses incurred by Telogy in providing such assistance. Furthermore, Licensee agrees to indemnify Telogy from
and reimburse Telogy for reasonable costs and expenses incurred by Telogy in the defense of such suit or claim, if Licensee does not undertake the defense thereof. The foregoing sentence does not
limit Telogy's right to sue Licensee for breach of this Agreement and to seek equitable relief, including without limitation specific performance. 

        In
the event of a third party claim, suit or proceeding including both claims for which Telogy is responsible under this Section 8 and also claims for which Licensee is
responsible under this Section 8, the parties shall work together in good faith to ensure each party has adequate and appropriate control of the defense in order to enable such party to protect
its rights and fulfill its obligations under the Agreement. 

        THIS
INDEMNITY IS IN LIEU OF ANY OTHER INDEMNITY OR WARRANTY, EXPRESS OR IMPLIED, WITH RESPECT TO PATENTS AND COPYRIGHTS. 

9.    Entire Agreement.    This Agreement (including its Exhibits) between Telogy and Licensee constitutes the entire agreement
between the parties relating to the subject matter herein and all prior proposals, discussions, and writings by and between the parties and relating to the subject matter herein are superseded hereby;
provided that this Agreement shall be interpreted in a manner consistent with that certain Subcontractor Agreement between TI and Licensee of even date herewith and that certain
Letter Agreement related to support by Mu Tian of even date herewith. In the event of any conflict or inconsistency in the definition or interpretation of any term or provision set forth in the body
of this Agreement and Exhibit A, such conflict or inconsistency shall be resolved by giving precedence first to the body of this Agreement, and then to Exhibit A. Licensee shall have the
right to use its standard purchase order forms to order products and services from Telogy hereunder, but the parties hereby acknowledge and agree that no terms or provisions which may appear on any
such purchase order form shall modify or supplement the terms and conditions set forth in this Agreement or Exhibit A. 

10.    Export Control Regulations.    It is expressly agreed by the parties hereto that the delivery of the Software in accordance
with this Agreement shall be subject to all applicable export controls imposed or administered by any agency of the U.S. Government which may impose such controls, including but not limited to the
export of technical data, equipment, software and know-how. Licensee agrees not to directly or indirectly export any Software, including, but not limited to software or technical
data/documentation without first obtaining the required U.S. Government export license(s), if any. If 

10

 

Licensee intends to export Software to another country other than the U.S., Licensee shall determine whether an export license is required and, if so, obtain that license from the U.S. Government.
Licensee shall indemnify Telogy from any loss or liability due to Licensee's failure to comply with export regulations. 

11.    Limitation of Liability.    EXCEPT FOR CLAIMS ARISING FROM EITHER PARTY'S BREACH OF OBLIGATIONS RELATING TO CONFIDENTIALITY
AND LICENSEE'S BREACH OF THE SOFTWARE LICENSE TERMS SET FORTH IN SECTION 2, IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF, OR IN CONNECTION WITH, THIS
AGREEMENT, INCLUDING, WITHOUT LIMITATION, BREACH OF ANY OBLIGATION OR WARRANTY IMPOSED ON EITHER PARTY HEREUNDER. Consequential damages shall include, without limitation, loss of use, income or
profit, or loss sustained as the result of injury to any person, or loss or damage to any property, or loss or damaged sustained as the result of work stoppage. EXCEPT FOR CLAIMS ARISING FROM EITHER
PARTY'S BREACH OF OBLIGATIONS RELATING TO CONFIDENTIALITY, LICENSEE'S BREACH OF SOFTWARE LICENSE TERMS SET FORTH IN SECTION 2, AND TELOGY'S ESSENTIAL PATENT INDEMNIFICATION OBLIGATIONS SET FORTH IN
SECTION 8.1, IN NO EVENT SHALL EITHER PARTY'S LIABILIITY EXCEED THE GREATER OF (I) $250,000 PER YEAR CUMULATIVE OVER THE FIRST FOUR YEARS AFTER THE EFFECTIVE DATE, I.E. MAXIMUM OF $1,000,000
AFTER FOUR YEARS, OR (II) THE LICENSE FEES PAID BY LICENSEE HEREUNDER. 

12.    Governing Law.    This Agreement is deemed to have been entered into in the State of Texas and its interpretation, its
construction, and the remedies for its enforcement or breach are to be applied pursuant to and in accordance with the laws of the State of Texas (excluding the choice-of-law
rules thereof). 

13.    Dispute Resolution.    If any dispute, including but not limited to a breach or an alleged breach of any of the terms and
conditions of this Agreement, shall arise or occur between the parties hereto, such
dispute shall initially be referred to the senior management of each party who shall meet and attempt in good faith to resolve the dispute. Except where clearly prevented by the subject matter of the
dispute, both parties agree to continue performing their respective obligations under this Agreement while the dispute is resolved. 

14.    Nature of Relationship.    The relationship between Licensee and Telogy under this Agreement is that of independent
contractors only. Nothing in this Agreement shall be construed so as to constitute Licensee and Telogy as partners or joint venturers, or either party hereto as the employee or agent of the other
party hereto, or in any other manner other than as independent contractors. 

15.    Binding Effect/Assignment.    This Agreement shall be binding upon and inure to the benefit of the parties hereto, their
successors and assigns. This Agreement and the respective rights, benefits and obligations embodied herein shall not be assignable by either party without the prior written consent of the other party
hereto, which consent shall not be unreasonably withheld. Any purported assignment in contravention of this paragraph shall be of no force or effect. Notwithstanding the foregoing, either party may
assign this Agreement to such party's successor in interest in the event of a change of control or a sale of all or substantially all of such party's assets, upon prior written notice to the other
party. 

16.    Severability.    In the event that a court of competent jurisdiction holds that a particular provision or requirement of this
Agreement is in violation of any applicable law, each such provision or requirement shall be enforced only to the extent it is not in violation of such law or is not otherwise unenforceable and all
other provisions and requirements of this Agreement shall remain in full force and effect. 

11

 

17.    Survival.    Neither expiration nor termination of this Agreement shall terminate the obligations and rights of the parties
pursuant to provisions of this Agreement which by their terms are intended to survive, including without limitation Sections 1, 3, 5, 6(f), 7, 8, 9, 11, 12, 13, 14, 15, 16, 17, 18, and such provisions
shall survive the expiration or termination of this Agreement for any reason. 

18.    Benefit of this Agreement.    It is the explicit intention of the parties hereto that no person or entity other than the
parties hereto is or shall be entitled to bring any action to enforce any provision of this Agreement against either of the parties hereto, and that the covenants, undertakings, and agreements set
forth in this Agreement shall be solely for the benefit of, and shall be enforceable only by, the parties hereto or their respective successors and assigns as permitted hereunder. 

19.    Press Release/Confidentiality.    Licensee hereby agrees that Telogy may include Licensee's name in Telogy's published list
of customers. The parties agree, within a reasonable time following shipment of Licensee's Product, to issue a press release announcing Licensee's use of the Software in Licensee's
Product. The parties agree that the timing and content of the press release shall be subject to mutual agreement but neither party shall unreasonably withhold or delay such agreement. Subject to the
foregoing, the parties' confidentiality obligations are as set forth in the Non-Disclosure Agreement executed by the parties on even date herewith. 

20.    Force Majeure.    Neither party shall be held responsible for any delay or failure in performance under this Agreement
arising out of cause beyond its control or without its fault or negligence. Such causes may include, but are not limited to war (whether an actual declaration thereof has been made or not), fires,
floods, strikes, embargoes, shortages of supplies or raw materials or components or finished goods, acts of God, acts of regulatory agencies, or national disasters. 

21.    Waiver.    No waiver shall be valid against any party hereto unless made in writing and signed by the party against whom
enforcement of such waiver is sought and then only to the extent expressly specified therein. 

22.    Headings.    Article, section and subsection headings contained in this Agreement are inserted for convenience of reference
only, shall not be deemed to be a part of this Agreement for any purpose, and shall not in any way define or affect the meaning, construction or scope of any of the provisions hereof. 

23.    Execution in Counterparts and Via Facsimile.    This Agreement may be executed in counterparts, each of which shall be deemed
an original but both of which together shall constitute one and the same instrument. A faxed signature shall have the same legally binding effect as an original signature. 

12

        IN
WITNESS WHEREOF, EACH OF THE PARTIES HERETO HAS EXECUTED THIS AGREEMENT, OR HAS CAUSED THIS AGREEMENT TO BE DULY EXECUTED ON ITS BEHALF, AS OF THE EFFECTIVE DATE SET FORTH ABOVE. 

	DITECH COMMUNICATIONS	 	TELOGY NETWORKS, INC.
	

/s/ William J. Tamblyn
 (Signature)	
 	

/s/ William Simmelink
 (Signature)
	

William J. Tamblyn
 (Printed Name)	
 	

William Simmelink
 (Printed Name)
	

Vice President and Chief Financial Officer
 (Title)	
 	

President
 (Title)
	

 TEXAS INSTRUMENTS CORPORATION	

 	

 
	

/s/ Michael J. Hames
 (Signature)	
 	

 
	

Michael J. Hames
 (Printed Name)	
 	

 
	

Senior Vice President
 (Title)	
 	

 

Telogy
Networks, Inc.

Proprietary and Confidential 

Ditech Communications TELOGY SOFTWARE LICENSE AGREEMENT  

 
 

EXHIBIT A    
    
    LICENSED SOFTWARE, PRICE AND PAYMENT    
  

Telogy
Networks, Inc.

Proprietary and Confidential 

[Telogy Networks Logo]

 
 

Exhibit A    
    

  Ditech Communications  

	ITEM
	 	Part Number
	 	Description
	 	Quantity
	 	Unit Price
	 	Extended Price

	1.	 	Open	 	SK: Any Telogy Voice Software Product*	 	1	 	[*]	 	[*]
	2.	 	Open

Open	 	SK: Any Telogy Echo Cancellation Product*

SK: Testing Software	 	1

1	 	[*]

[*]	 	[*]

[*]
	 	 	 	 	 	 	 	 	 	 	

	4.	 	Open	 	SS: Voice Software	 	1	 	[*]	 	 
	5.	 	Open

Open	 	SS: Echo Cancellation Software

SS: Testing Software	 	1

1	 	[*]

[*]	 	[*]
	 	 	 	 	 	 	 	 	 	 	

	7.	 	04-IN-32001	 	IN: Voice Software	 	1	 	[*]	 	[*]
	8.	 	01-IN-32001	 	IN: Echo Cancellation Software	 	1	 	[*]	 	[*]
	 	 	 	 	 	 	 	 	 	 	

	9.	 	02-TS-10000	 	TS: Training	 	1	 	[*]	 	 

*
This includes any Standard Telogy Software Product. Custom Features and modifications to the Standard Software Product Builds will be negotiated in good faith by the parties, and any such Custom
Feature development will be subject to the availability of Telogy resources. 

	SK:	 	Starters Kit Software License. A license to use the Telogy Software at the specified location.
	SB:	 	Annual Basic Software Support Services. Provides Software support services including customer assistance (problem troubleshooting and resolution, software installation and configuration), and
release updates (quality improvements and software fixes)
	SS:	 	Annual Standard Software Support Services: Includes services listed under SB, plus support for customer hardware design review, hardware diagnostics check point and initial on-site
integration.
	TS:	 	Training. A Two-day classroom instruction at Telogy facilities.
	IN:	 	Indemnification: Upfront portion of the fee for the Product Indemnification package.
	LU:	 	Software License Units. The License to include and distribute Telogy software. The Software License charges are per channel for both the DSP and the MCU Software. Quoted quantities are based on
annual volume commitments.
	EK:	 	Evaluation Kit. Provides two hardware platforms plus Networks Impairment Simulation Software for Internal Lab evaluation only.
	LC:	 	Software License Units: The License to include and distribute Telogy Software. This software license includes indemnification. The Software License charges are per channel. Quoted quantities are
based on annual volume commitments.

	Subject to Telogy Networks' Standard Terms and Conditions
	

	Telogy Networks, Inc.

20250 Century Boulevard

Germantown, MD 20874

TN@telogy.com

http://www.telogy.com	 	Telogy Networks, Inc.

Proprietary and Confidential	 	Account Manager:

Phone Number:

Fax Number:

Email Address:	Mr. Lee Cresswell

[44] 1296-640341

[1] (301) 515-4312

lcresswell@telogy.com

[Telogy Networks Logo]

 
 

Exhibit A    
    

  Ditech Communications  

License Unit Pricing for Ditech Echo Cancellation System Products:  

	ITEM
	 	Part Number
	 	Description
	 	Quantity
	 	Unit Price
	 	Extended Price

	11.	 	Open	 	LC: Voice Software	 	N/A	 	[*]	 	[*]
	12.	 	Open	 	LU: Voice Software	 	N/A	 	[*]	 	[*]
	13.	 	Open	 	LC: Echo Cancellation Software	 	N/A	 	[*]	 	[*]
	14.	 	Open	 	LC: Echo Cancellation Software	 	N/A	 	[*]	 	[*]

License Unit Pricing for Ditech Echo Cancellation Blade Products (see Note 1 below):  

	Description
	 	Quantity
	 	Unit Price
	 	Extended Price

	LC: Voice Software	 	1	 	[*]	 	[*]
	LU: Voice Software	 	1	 	[*]	 	[*]
	LC: Echo Cancellation Software	 	1	 	[*]	 	[*]
	LC: Echo Cancellation Software	 	1	 	[*]	 	[*]

Note 1 Below: See Section 7 

	SK:	 	Starters Kit Software License. A license to use the Telogy Software at the specified location.
	SB:	 	Annual Basic Software Support Services. Provides Software support services including customer assistance (problem troubleshooting and resolution, software installation and configuration), and
release updates (quality improvements and software fixes)
	SS:	 	Annual Standard Software Support Services: Includes services listed under SB, plus support for customer hardware design review, hardware diagnostics check point and initial on-site
integration.
	TS:	 	Training. A Two-day classroom instruction at Telogy facilities.
	IN:	 	Indemnification: Upfront portion of the fee for the Product Indemnification package.
	LU:	 	Software License Units. The License to include and distribute Telogy software. The Software License charges are per channel for both the DSP and the MCU Software. Quoted quantities are based on
annual volume commitments.
	EK:	 	Evaluation Kit. Provides two hardware platforms plus Networks Impairment Simulation Software for Internal Lab evaluation only.
	LC:	 	Software License Units: The License to include and distribute Telogy Software. This software license includes indemnification. The Software License charges are per channel. Quoted quantities are
based on annual volume commitments.

Price & Payment for the Telogy Software Products  

Section 1—Starters Kit Payment Terms  

During
the 2-year Initial Period for Voice Software, Ditech shall be entitled to order Telogy's Standard Voice Products for [*]. 

During
the 4-year Initial Period for Echo Cancellation Software, Ditech shall be entitled to order Telogy's Standard Echo Cancellation Products for [*]. 

Section 2—Software Support Payment Terms  

Ditech
shall be entitled to Software Support for the Telogy Software Products at [*] for such Software Support. Payment for Software Support fees is due at the time of Order
with payment terms of Net 30 days. (By way of example, Software Support fees for a typical Software Product generally costs between [*] to [*]) 

Section 3—Up-front and Per Unit Indemnification Payment Terms  

During
the 2-year Initial Period for Voice Software, Ditech shall be entitled to order Telogy's Standard Voice Product Essential Patent Indemnification for [*]. 

During
the 4-year Initial Period for Echo Cancellation Software, Ditech shall be entitled to order Telogy's Standard Echo Cancellation Product Essential Patent Indemnification
[*]. 

Section 4—Training Payment Terms  

Ditech
shall be entitled to order Training for the Telogy Software Products at [*] for such Training. Payment for Training is due at the time of Order with payment terms of Net
30 days. (By way of example, Training fees for a typical Software Product training session at Telogy's Germantown headquarters generally costs between [*] to
[*].) 

Section 6—License Units Payment Terms for Software used in Ditech System Products  

During
the 2-year Initial Period for Voice Software, Ditech shall be entitled to order Telogy's Standard Voice Product License Units for [*]. 

During
the 4-year Initial Period for Echo Cancellation Software, Ditech shall be entitled to order Telogy's Standard Echo Cancellation Product License Units for
[*]. 

Section 7—License Units Payment Terms for Software used in Ditech System Products  

During
the applicable Initial Periods, Ditech will be offered the Telogy [*] depending on the customer to which Ditech is selling its Blade Products. The intent behind this
structure is to ensure that no conflict exists for the TI/Telogy sales force when they are selling into an account where the customer may decide to purchase the more highly integrated Blade Product
from Ditech, or the silicon and software solution from TI/Telogy. The intent is to encourage the Sales Force to focus on the best solution for the customer rather than the solution that will generate
the highest commissions for the Salesperson. The intent is also not to put Ditech in a non-competitive position in these potential design wins, so Telogy will work with Ditech to ensure
this also does not occur. 

Section 8: Post Initial Period Products and Licensing  

After
the applicable Initial Period, Licensee shall be entitled to continue the license for the applicable Telogy Software Products by notifying Telogy that it desires to continue the licenses and
negotiate in good faith the appropriate License Unit fees for such Telogy Software Products. Telogy agrees that Licensee shall be entitled to prices no less favorable than Telogy's
then-current standard pricing for the Telogy Software based upon the volume pricing discount in Telogy Standard Tables. Furthermore, Telogy agrees that (i) with respect to the Echo
Cancellation Software, Licensee shall be entitled to 

pricing at [*]) for such Echo Cancellation Software, and (ii) with respect to the Voice Software, pricing offered shall take into consideration and shall be based upon
overall volume of Licensee Products containing Telogy Software and not just the volume projections for an individual Product or Product Line. 

Licensee
may order License Units as set forth in volume increments and at intervals in accordance with Licensee's requirements. Within thirty (30) days following the end of each calendar
quarter, Licensee agrees to pay Telogy the applicable Royalties due for Software distributed in the preceding quarter,
such payment to be made concurrently with Licensee's report on Software Royalties due for such quarter. The amount of the Telogy Software Royalty and the method of calculating the amounts due are set
forth in Exhibit A. The parties understand that Royalty payments do not require the submission of an invoice from Telogy. 

With
respect to Software License Unit shipments for which Licensee desires indemnification (i.e. LC License Units), Licensee understands and agrees the Licensee will only be indemnified for License
Unit payments made which include an indemnification component. Licensee must clearly specify those LC License Units shipped and the category of LC License Units or LU License
Units shipped in the categories set forth above, to enable (i) Licensee to have accurate records of those License Units shipped which are indemnified, and
(ii) Telogy to have accurate records of those License Units shipped for which Telogy has indemnification obligations. 

Telogy
Networks, Inc.

Proprietary and Confidential 

Ditech Communications TELOGY SOFTWARE LICENSE AGREEMENT  

 
 

EXHIBIT B    
    
    LICENSEE'S PRODUCTS    
  

18t1

18e1

SX24

SX30

Quad T1

Quad E1

OC3

STM1 

Telogy
Networks, Inc.

Proprietary and Confidential 

Ditech Communications TELOGY SOFTWARE LICENSE AGREEMENT  

 
 

EXHIBIT C
  
    SUPPORT    
  

Telogy
Networks, Inc.

Proprietary and Confidential 

Texas Instruments—The World Leader in DSP and Analog  

 
  Customer Support    
  

Support to Help You Create Better Communications Products...Faster  

When
you base your communications products on Texas Instruments' programmable DSPs and award-winning Telogy SoftwareTM product for Voice/Fax/Data over IP, you get more than advanced
technology. You receive comprehensive technical services and support from our software and systems experts—valuable assistance that can help you increase your speed
to market and shorten your time to profit. 

TI's
Comprehensive Documentation, including the Telogy Software Product Technical Specification, Interface Control
Document, and Porting Guide, provides the information you need to create innovative communications products in less time than
ever. 

Our
Hardware Reference Designs provide a proof-of-concept tool and integration and test platform to verify your own solution. Backing up these clear and
concise materials, our In-Depth Training gives you a thorough grounding in Telogy Software functions and interfaces, including seeing the
software run on a demonstration platform. 

Plus,
we offer targeted support at Key Milestones in the Development Process: hardware design review, hardware diagnostics checkpoint, and
on-site software/hardware integration. And, if you have unique requirements, our Custom Engineering option can meet those needs. 

If
you ever have a software question or problem, we never leave you to your own devices. Our World Class Technical Support Team is easy to reach by
phone, fax, email, or pager. 

TI's
Deployment Support provides a single point of contact to resolve technical issues with our third party partners. And, once you've chosen Telogy
Software products, we protect your investment through updates, upgrades, and customer input on our enhancement roadmap. 

For
more information on TI's Customer Support Services or Telogy Software for Voice/Fax/Data over IP, contact your TI sales representative or call 301-515-6690 today. You can
also visit TI's websites at www.ti.com/sc or www.telogy.com for current information, customer listings, white papers, application notes and product bulletins. 

 
 

CUSTOMER SUPPORT PRINCIPLES    
  

	•
	Help
Customers Get to Market Quickly

	•
	Lower
Customers' Lifecycle Costs by Providing High Quality Software

	•
	Offer
Custom Engineering for Unique Customer Requirements

	•
	Provide
Responsive Deployment Support 

 
 

SOFTWARE SUPPORT OFFERINGS    
  

	Basic (8AM to 8PM EST)

 GG-SB-31001—43003	 	Telephone, fax, pager, e-mail and written technical support to:

-  assist customer in determining if problem is caused by a software error

-  answer questions concerning installation and configuration of software

-  assist with resolving problems which occur during normal usage of the software

-  proactive problem notification

-  provide software fixes for any non-conformity in the software
	
Standard (8AM to 8PM EST)

 GG-SS-31001—43003	
 	

All Basic Support services plus:

-  Designated engineer

-  Support at key milestones in development process, including hardware design review, hardware diagnostics checkpoint and software/hardware initial on-site integration

-  Transition to new TI DSPs by application
	
Premium (7x24x52)

 GG-SP-31001—43003	
 	

All Standard Support services

-  Dedicated engineer

-  Critical troubles reported whenever they occur (pager out of hours)

-  Weekly Status Reports
	
Training

 GG-TS-10000—10003	
 	

2 day product training classes are available for pre- and post-sales requirements
	
On-Site Software Support	
 	

Available for customers who have additional on-site software support requirements
	
Custom Engineering	
 	

A wide variety of services are available for customers who have unique requirements

 
 

CUSTOMER TROUBLE REPORT HANDLING    
  

	Severity Levels
	 	Acknowledge/Plan

Time
	 	Targeted Closure

Time
	 	Status Update Period

	Severity 1

-primary function is inoperable

-progress is stopped	 	-  Acknowledge in 4 hours.

-  Plan in 24 hours.	 	5 working days to Workaround or Permanent Solution	 	Daily
	Severity 2

-  primary functionality operates with reduced capability

-  progress is impacted	 	-  Acknowledge in 8 hours.

-  Plan in 3 days.	 	14 working days to a Workaround or Permanent Solution	 	Every 3rd day
	Severity 3

-  subordinate functionality operates abnormally

-  progress is inconvenienced	 	-  Acknowledge in 24 hours.	 	30 working days to a Workaround or Permanent Solution	 	Every 14th day

Telogy
Software is a trademark of Texas Instruments

For more information please contact your TI sales representative or call 301-515-6690.

www.ti.com/sc

www.telogy.com 

  

Information herein is subject to change without notice.

© 2000 Texas Instruments Incorporated 

Ditech Communications TELOGY SOFTWARE LICENSE AGREEMENT  

 
 

EXHIBIT D
  
    EXCLUDED PERSONS    
  

[*] 

Telogy
Networks, Inc.

Proprietary and Confidential 

QuickLinks

Exhibit 10.29

EXHIBIT A LICENSED SOFTWARE, PRICE AND PAYMENT

Exhibit A

Exhibit A

EXHIBIT B LICENSEE'S PRODUCTS

EXHIBIT C SUPPORT

Customer Support

CUSTOMER SUPPORT PRINCIPLES

SOFTWARE SUPPORT OFFERINGS

CUSTOMER TROUBLE REPORT HANDLING

EXHIBIT D EXCLUDED PERSONSExhibit 10.63  

OFFICE SPACE LEASE AGREEMENT
  and other premises for business use contrary to article 7A:1624 BW (Dutch Civil Code) 

In
accordance with the model drawn up by the Raad voor Onroerende Zaken (Dutch Real Estate Council) in February 1996.

This model may only be referred to, if the text that has been inserted, added or changed is clearly recognizable as such. Additions and deviations should preferably be detailed under the heading
"Extraordinary stipulations".

The Council denies all liability for any detrimental effects arising from the use of the model text. 

The
undersigned 

Vof Forward Erenha, with registered offices in Rijsenhout, represented in this matter by Messrs. H van Luling and C.H.D.J.M. van Duin, Master of
Laws, hereafter referred to as the 'lessor'

and
 QAD Netherlands B.V., with registered offices in Nieuwegein, and principal place of business at Fultonbaan 20, 3449 NE Nieuwegein hereafter referred to
as the 'lessee'

	•
	registered
in the Trade Register in Utrecht

	•
	under
number 30152748

	•
	represented
by QAD Europe B.V., registered in the trade register in Amersfoort under number 34081924,
represented in this matter by Mr. C.D. Kemme

agree
the following 

Article 1—The accommodation, occupancy and use  

	1.1
	This
lease agreement pertains to the business premises, hereafter referred to as "the accommodation', consisting of approx. 3,336 m2 of office/business
space (including the lessee's share of the shared areas), known locally as: Gebouw Euro, Beechavenue ongenummerd te Schiphol Rijk (Oude Meer) (Plot 6000, location D), as well
as 84 (eighty four) parking places, of which 73 parking spaces are located in the car park area under the deck and 11 on top of the deck, as detailed in
the drawing and/or description attached to this deed, which has been certified by both parties and which is an integral part of this agreement, and in the technical description which forms an integral
part of this agreement as Appendix 2. Recorded in the Land Register under: Gemeente Haarlemermeer, Section AK, number 1470 (partial) and 1471 (partial). 

	

 	

The floor area for let is divided up as follows in the building:
	 	– ground floor	 	:769 m2 floor area for let;
	 	– 1st floor	 	:743 m2 floor area for let;
	 	– 2nd floor	 	:806 m2 floor area for let;
	 	– 4th floor	 	:781 m2 floor area for let;
	 	– 5th floor	 	:237 m2 floor area for let;

	1.2
	The
accommodation may only be used as office/business space with corresponding parking places.

	1.3
	The
lessee is not permitted to use the accommodation for purposes other than described in 1.2, without prior written permission from the lessor. Permission to use the accommodation
for other purposes may not be refused without reasonable grounds.

	1.4
	The
maximum load capacities of the floor(s) of the accommodation amount to:

	 	– level- 1:	 	1,000 kg/m2;
	 	– level 0 (ground floor):	 	650 kg/m2;
	 	– level 1 - 4:	 	400 kg/m2.

 

Article 2—Terms and Conditions  

	2.1
	The
general terms and conditions for office space lease agreements and other premises for business use, contrary to
article 7A:1624 BW (Dutch Civil Code), filed and registered at the Office of the District Court in 's Gravenhage on the 29th of February 1996 under no. 34/1996, referred to
hereafter as 'general terms and conditions' are an integral part of this agreement. The contents of these general terms and conditions are known to both parties. The lessee has received a copy of
these general terms and conditions.

	2.2
	The
terms and conditions mentioned in 2.1 are applicable except where it has been explicitly deviated from them in this agreement or where they cannot be applied to the accommodation. 

Article 3—Duration of the agreement, prolongation and termination  

	3.1
	This
agreement is made for a period of 5 (five) years, commencing on May 1 2002
and continuing up to and including 30 April 2007.

	3.2
	Once
the period described in 3.1 has passed, this agreement will be continued for a further period of 5 (five) years, and therefore
until 30th April 2012.

	3.3
	This
agreement may be ended by giving notice towards the end of a lease period, with observance of a notice period of at least 12
(twelve)  months.

	3.4
	Notice
of termination must be given by bailiff's writ of by registered letter.

	3.5
	Premature
termination of this agreement is possible under the conditions detailed in section 7 of the general terms and conditions. 

Article 4—Payment obligation, payment period  

	4.1
	The
lessee's payment obligation consists of:

	–
	the
rent;

	–
	the
payment of charges for additional services and facilities plus the turnover tax due;

	–
	the
turnover tax due over the rent, or a corresponding amount consistent with 15.2 and 15.3 of the general terms and conditions, in the event that parties have agreed a
rental sum subject to turnover tax. 

	4.2
	The
rent amounts to € 651,174.60 (f  1,435,000.—) annually

in words: six hundred and fifty one thousand, one hundred and seventy four euro and sixty eurocent (one million, four hundred and fifty three thousand
guilders), allocated as follows:

	 	– 3,336 m2 of floor space for lease

office/business space level — 1	 	€583,107.57 / f 1,285,000.—
	 	– 84 parking places	 	€  68,067.03 / f  150,000.—
	 	 	 	

	 	Total annual rent	 	€651,174.60 / f 1,435,000,—

The quantities of square meters shown are floor space for let according to NEN 2580.

	4.3
	The
first rent payment is due on May 1st 2003, and thereafter on May 1st
of each subsequent year, reviewed in accordance with 4.1 up to and including 4.2 of the general terms and conditions.

	4.4
	The
charges for additional services and facilities will be determined according to article 12 of the general terms and conditions. These charges are invoiced under a fixed
installment prepayment system with a periodic settlement payment as described in article 12. 

2

 
	4.5
	The
payments that the lessee must pay to the lessor are to be made in advance in successive payment periods as shown in 4.6 and must be fully paid up before or on the first day of the
corresponding period.

	4.6
	The
sum due for each payment period of three calendar months consists of 

	 	• the rent	 	€162,793.65 / f 358,750.—
	 	• the prepayment of the charges for additional services and facilities provided by or on behalf of the lessor	 	€  18,922.64 / f  41,700.—
	 	 	 	

	 	Total	 	€181,716.29 / f 400,450.—
	 	 	 	

in
words; one hundred and eighty one thousand, seven hundred and sixteen euro and twenty nine eurocent (four hundred thousand, four hundred and fifty
guilders). These amounts are exclusive of turnover tax. 

	4.7
	In
view of the date of commencement of the lease, the first payment period corresponds to the period from May 1st 2002 up to and including
June 30th 2002 and the amount due over the first period is € 121,144.19 (f  266,966.66), exclusive of
turnover tax. The lessee will pay this amount inclusive of turnover tax before or on May 1st
2002.

Article 5—Turnover tax  

	5.1
	All
sums mentioned in this agreement are exclusive of turnover tax. The lessee owes turnover tax over the charges for additional services and facilities. This also applies to the
rent, if rent subject to turnover tax has been opted for. The turnover tax is invoiced by the lessor and must be paid at the same time as the rent and the charges for additional services and
facilities, or advances on those charges.

	5.2
	The
parties agree that the lessor will invoice turnover tax on the rent to the lessee.

	5.3
	If
it has been agreed that turnover tax will invoiced additionally to the rent, the lessee grants the lessor and the lessor's legal successors by this present agreement an irrevocable
power of attorney to submit a request (request opting for taxed rent) in the lessee's name according to article 11, paragraph 1 sub b, 5e of the "Wet op de Omzetbelasting 1968" (Dutch
Turnover Tax Act 1968). If so requested, the lessee will sign and send the request back to the lessor within 14 days or receipt from the lessor for this purpose. 

3

   Article 6—Services and facilities  

6.
The parties agree on the following additional services and facilities provided by or on behalf of the lessor: 

	a.
	janitor
service (subscription), electricity consumed, fuel consumed, water consumed, measurement of usage, operation, repair of breakdowns, certification costs and so on with regard
to:

	1.
	elevator(s);

	2.
	window
washing system(s);

	3.
	air
conditioning unit(s) / ventilation unit(s);

	4.
	central
heating system(s);

	5.
	hot
water system(s);

	6.
	high
pressure water installation(s);

	7.
	low
voltage electrical system(s);

	8.
	emergency
power system(s);

	9.
	(parking)
garage equipment;

	10.
	fire
extinguisher units and filling

	11.
	all
other installations / equipment; 

	b.
	supply
of water, gas and electricity, including the costs of meter hire;

	c.
	heating
and hot water supply, including the costs of chimney sweeping, boiler cleaning, meter installations, breakdown repairs etc;

	d.
	air
conditioning and ventilation, including the cost of chemicals;

	e.
	lighting,
including the costs of bulbs and TL tubes;

	f.
	glass
insurance for all window panes;

	g.
	washing
of the windows on the outside;

	h.
	washing
of the windows of the general and service rooms as well as the arcade roof on the outside and the inside;

	i.
	other
services and facilities;

	j.
	handling
and administrative fee for services and facilities amounting to 5% of the total costs plus turnover tax;

	k.
	turnover
tax over the costs of services and facilities

	l.
	all
management costs; pro-rated to the share of the accommodation in the Business Park, in this case the contribution to the Schiphol-Rijk Business Park
Co-operative Society. 

4

 

A number of the items included above under the so-called "service costs", can, with the lessor's consent, be undertaken and paid for by the lessee directly. Further
agreements in this respect can be made between the lessor and the lessee and recorded in writing.

	Article 7—Bank guarantee
	

7.1	
 	

The amount of the bank guarantee according to 8.1 of the general terms and conditions amounts to € 216,242,39 (f 476,535,50)

in words: two hundred and sixteen thousand, two hundred and forty two euro and thirty nine eurocent (four hundred and seventy six thousand, five hundred and thirty five guilders and fifty cents)

	

 	
 	

This bank guarantee must be taken out with a bank with registered offices in the Netherlands and which is registered as a credit institution as determined in the Wet Toezicht Kredietwezen (Dutch laws regarding supervision of credit institutions), in
accordance with the ROZ (Dutch Real Estate Council) model attached.
	

7.2	
 	

The lessee is entitled to convert the bank guarantee referred to in paragraph 1 of this article to a deposit from the date of signature of this agreement.
	
Article 8—Supervisor
	

8.	
 	

The lessor will act as supervisor, until otherwise announced by the lessor,
	
Article 9—Extraordinary Stipulations
	
BTW (Dutch Value Added Tax or turnover tax)
	

9.1.1	
 	

Article 4.1, third dash, is replaced by: "the turnover tax due over the rent or the amount corresponding to the stipulations of 9.1.2 up to and including 9.1.8 of the extraordinary stipulations. The stipulations of 15.2 and 15.3 of the general
terms and conditions which form an integral part of this agreement are herewith explicitly declared not to apply".
	

9.1.2	
 	

The lessee and the lessor explicitly declare that the rent has been agreed based on the premise that the lessee will permanently use the accommodation for at least the minimum percentage prescribed or to be prescribed by the law for activities which
are subject to BTW (Dutch VAT) deduction. The lessee declares that he will use the property for purposes for which input tax is totally or nearly totally credited (presently known as the so-called 90% or 70% criterion).
	

9.1.3	
 	

Should the lessee not use the accommodation (any more) for activities which are subject to BTW (Dutch VAT) deduction according to paragraph 9.1.2, then the lessee will no longer be liable to pay the lessor BTW over the rent, however, from the
date that the rent is no longer subject to BTW, in addition to the rent exclusive of BTW, the lessee is liable to pay the lessor a separate amount to compensate him fully for:

	1.
	The
BTW which is no longer deductible on the operational costs for the accommodation and/or investments therein as a consequence of the lapsing of the taxed rent.

	2.
	The
BTW which, the lessor must pay back to the tax authorities and/or can no longer reclaim from the tax authorities as a consequence of the lapsing of the taxed rent, due to
recalculation in the sense of article 15, paragraph 4 of the Wet op de Omzetbelasting 1968 (Dutch Turnover Tax Act 1968) or review in the sense of articles 11 up to and including 13 of
the Uitvoeringsbeschikking Omzetbelasting 1968 (Dutch Turnover Tax Implementation Decree 1968).

	3.
	All
other damages which the lessor suffers as a consequence of the lapsing of the taxed rent. 

5

 

	

9.1.4	
 	

Whenever the situation described in 9.1.3 arises, the lessor will inform the lessee which sums are required to be paid to the tax authorities by the lessor and will provide insight into the other damages in the sense of 9.1.3.
	

 	
 	

The lessor will cooperate if the lessee wishes to have the lessor's statement checked by an independent chartered accountant. The costs of this are for the account of the lessee.
	

 	
 	

The financial disadvantage suffered by the lessor due to the lapsing of the taxed rent must be paid by the lessee at the first request of the lessor.
	

9.1.5	
 	

Article 5.3 (request opting for taxed rent) is herewith declared invalid. The levying of turnover tax over the rent will take place in accordance with the Besluit van de Staatssecretaris van Financiën (Decree of the Dutch State Secretary of
Finance) dated March 24 1999 under number VB 99/571. The starting date for rent subject to turnover tax is the same as the date of commencement of the lease agreement, which is May 1 2002. The commencement date of the lessee's financial
year is: February 1.
	

9.1.6	
 	

The lessee is bound to inform the lessor, by means of a signed declaration, whether he has used the accommodation during the last financial year for purposes subject to full or nearly full deduction of BTW (at least 90%) in accordance with
article 15 of the Wet op de omzetbelasting 1968 (Dutch Turnover Tax Act 1968), within four weeks of the end of his financial year in which he started to rent the accommodation (even if the accommodation is entirely or partially used by a third
party).
	

 	
 	

Furthermore, the lessee is bound to inform the lessor, by means of a signed declaration, if the accommodation (even if the accommodation is entirely or partially used by a third party) in any subsequent financial years has not been used for purposes
subject to full or nearly full deduction of BTW (at least 90%) in accordance with article 15 of the Wet op de omzetbelasting 1968 (Dutch Turnover Tax Act 1968), within four weeks of the end of the financial year concerned.
	

 	
 	

In both instances, the lessor is bound to send a copy of the declaration to the Tax Inspector within the same period of time.
	

9.1.7	
 	

Should the lessee not comply with the obligation to provide information described above or should it be established in hindsight that his base assumptions were not correct and that the lessor, in hindsight, has wrongfully levied BTW over the rent,
then the lessee is in default and the lessor is entitled to claim financial damages arising from this situation from the lessee. These financial damages are the entire sum of BTW owed by the lessor to the tax authorities in this instance plus
interest and any other costs incurred, as well the BTW which the lessor cannot deduct.
	

 	
 	

The stipulations of this paragraph provide for a compensation payment arrangement in the event that the taxed rent should come to an end retrospectively, in addition to the arrangements described in 9.1.3 and 9.1.4. The extra damages for the lessor,
arising from such a retrospective change, are claimable forthwith, completely and in one installment from the lessee. The lessor will cooperate if the lessee wishes to have the lessor's statement of these extra damages checked by an independent
chartered accountant. The costs of this are for the account of the lessee.
	

9.1.8	
 	

The stipulations of 9.1.3, 9.1.5 and 9.1.7 are equally applicable if the lessor after termination of the lease agreement, whether this be premature or not, is first confronted by damages due to the lapsing of the taxed rent agreed between the parties,
 such damages being claimable forthwith, completely and in one installment from the lessee.
	
 	
 	

 

6

 

	

9.2	
 	
Prolongation
	

 	
 	

The lessor and the lessee agree that, in departure from and in addition to the stipulations of article 3.3, the lease agreement may only be terminated by the lessee.
	

 	
 	

Consequently the next period from May 1 2007 up and including April 30 2012 can be seen as an option right of the lessee. As of May 1 2012 both parties have the right to terminate the lease agreement, in observance of the stipulations
in article 3.4.
	

9.3	
 	
Assessment of changes in market rental value
	

 	
 	

Notwithstanding any rent increase on the basis of 4.3 of the lease agreement, each of the parties is authorized to request a change of rent in accordance with market value. Such a change may take place for the first time on May 1 2007 and
subsequently after a period of at least 5 (five) years after the last rent change in accordance with market value. If one of the parties wishes to make use of this authority, he must inform the other party thereof by registered letter with
confirmation of delivery, 12 (twelve) months at the latest before the rent change must take effect.
	

 	
 	

If the parties are unable to reach an agreement over the change in rent in accordance with market value within two months of receipt of this letter, then the rent will be decided by three experts. When assessing the rent, the experts must be
instructed to consider all the agreements made between the parties with regard to the accommodation and the circumstances of the case in question, such as the situation, size, layout and quality of the accommodation and the facilities in an around
the accommodation, as well as mutually agreed rent or rent decided by the court for comparable business premises.
	

 	
 	

Each party will appoint one of these three experts within fourteen days after the request for this made by one of the parties has reached the other party. An expert will make known whether or not he accepts the assignment within eight days of the
date of order.
	

 	
 	

The third expert will be appointed by these two experts within eight days of them accepting their appointment. The judgment of the third expert is decisive if the experts are unable to reach agreement over the rent. Should one of the parties remain
in default with regard to the appointment of an expert or should the experts appointed by the parties be unable to appoint a third expert, then the most interested party can request the Chairman of the Chamber of Commerce of Trade and Industry
responsible for the area in which the accommodation is situated to appoint the expert(s).
	

 	
 	

Each party will bear the costs of the expert he appoints. Half of the costs of the third expert will be born by each party. The experts will be instructed to bring out their report within six weeks after their appointment has become
official.
	

 	
 	

Once the rent has been changed in accordance with market value, the next rent indexation will take place on the date as agreed in 4.3 of the lease agreement on condition that that rent indexation will be made proportional to the period which has
passed from the date of the rent change in accordance with market value.
	

 	
 	

The rent established in this way will at no time be lower than the original rent.
	

 	
 	

When establishing the rent any direct or indirect work carried out to the building at the cost of QAD as mentioned in art. 11.5 (including extra work and furnishing) may not be considered, so that the new rent must always be decided on the basis of
the state in which the building would be should this work not have been carried out.
	
 	
 	

 

7

 

	

9.4	
 	
Amendments to the general terms and conditions
	

9.4.1	
 	

Article 1.2 of the general terms and conditions should read as follows; "The accommodation is handed over and accepted in the condition as indicated in the certified description belonging to this agreement, to be drawn up at the moment the
accommodation is made available.

	

9.4.2	
 	

Article 2.8 of the general terms and conditions is completely changed and reads as follows:
	

 	
 	

"The lessee is permitted to place an illuminated sign against or on the building of which the accommodation is a part, in order to display his own name and logo. The lessee has the first choice regarding the location of this name sign. This
illuminated sign will comply with the guidelines of the authorized (government) bodies in terms of size and intensity and will be agreed with the building's architect and must be approved by the lessor. The lessor will only grant permission for
illuminated signs with respect to other lessees after the lessee (QAD) has given permission for this in writing, such in order to protect the corporate identity of the lessee (QAD). The aforementioned permission will not be withheld on unreasonable
grounds".
	

9.4.3	
 	

Article 2.10.1.b of the general terms and conditions is completely changed and reads as follows:
	

 	
 	

"to impose higher loads on the floors of the accommodation and of the building or complex of which it is a part, than those indicated in the lease agreement".
	

9.4.4	
 	

Supplementary to 2.10.2 of the general terms and conditions, the parties agree that permissions in the sense of this paragraph may not be withheld on unreasonable grounds.
	

9.4.5	
 	

in 4.1 of the general terms and conditions "1995=100" should be read instead of "1990=100".
	

9.4.6	
 	

Supplementary to article 7.2 of the general terms and conditions both the parties agree that before terminating the agreement the lessor will make his intention known to the lessee. The lessee is granted a reasonable period following this
announcement in order to nullify the reason for termination.
	

9.5	
 	
Subletting/allowing third parties occupancy
	

 	
 	

The lessee has the right to fully or partially sublet and/or fully or partially grant occupancy of the accommodation to a third party, such after informing and having received permission to do so from the lessor and having assessed the sub lessee
against the zoning ordinance in force. The lessor will answer the request for permission adequately and within a reasonable period of time and permission will not be refused on unreasonable grounds.
	

9.6	
 	
Changes to and in the accommodation
	

9.6.1	
 	

The lessor gives the lessee permission to make a number of changes to and in the accommodation, namely:

	

 	
 	

– the air conditioning system;
	

 	
 	

– any other changes to be taken up by mutual agreement.
	

 	
 	

With regard to the maintenance and repair of the accommodation, any extra costs arising from these changes will be charged to the lessee. These changes will not be undone by the lessee at the end of the lease, such contrary to article 5.1 of the
general terms and conditions.
	

9.6.2	
 	

The lessor grants the lessee permission to fit:
	

 	
 	

•    a kitchen;
	

 	
 	

•    carpeting;
	

 	
 	

•    a reception desk;
	
 	
 	

 

8

 

	

 	
 	

•    data cables;
	

 	
 	

•    partitions;
	

 	
 	

•    any other changes to be taken up by mutual agreement.
	

 	
 	

The lessee and lessor will consult further with respect to the nature and the placement. Upon termination of the lease the procedure according to 5.1 of the general terms and conditions will be followed, notwithstanding the stipulations determined
below in this paragraph.
	

 	
 	

The lessee has the right to install his own reception desk on the ground floor in the main entrance hall. The lessee will take receive and give directions to visitors to the building for other lessees. Other lessees are permitted to place a name sign
in the main entrance hall on the ground floor after the lessee (QAD) has granted written permission for this. The aforementioned permission will not be refused on unreasonable grounds.
	

 	
 	

If the lessee terminates the lease agreement, the lessee and the lessor can agree which furnishings are not required to be removed as well as which furnishings are not required to be returned to the original state.
	

 	
 	

The lessee is permitted to get in touch with the estate agent acting for the lessor in order to determine whether potential lessees are inclined to take over the furnishings mentioned in this paragraph 9.6.2.
	

9.7	
 	
Right of first refusal
	

 	
 	

The lessee has the so-called "right of first refusal" regarding the first leasing of the office space which is still available in the Euro building on the 3rd floor amounting to 806m2 of floor space for let with the corresponding 21 parking places,
18 of which are situated in the car parking area under the deck and 3 of which on top of the deck, as well as the area in the basement amounting to 731m2 of floor space for let with the corresponding 20 parking places, 17 of which are situated in the
car parking area under the deck and 3 of which on top of the deck.
	

 	
 	

Before leasing this area to a third party, the lessor will inform the lessee of this in writing. Should the lessee wish to exercise this right, then he must inform the lessor of this by letter within 15 days of receipt of the information from
the lessor.
	

 	
 	

If the decision is positive the additional area will be leased from the commencement date of the lease agreement in force by means of a rider clause under the same terms and conditions as the agreement in force.
	

 	
 	

Should the commencement date of the agreement in force have already passed, then the commencement date of the rider clause will be the first day of the following calendar month.
	

 	
 	

For the entire duration of the lease agreement with the lessee, the remaining areas in the building will not be leased to any of the following companies / organizations:
	

 	
 	

SAP, Baan, JD Edwards, Siebel, Ariba, i2 Technologies and Commerce One.
	

9.8	
 	
Conduits: shafts etc.: tolerance obligation etc.
	

 	
 	

If and in as much as there are conduits, service shafts and/or meter cupboards and suchlike for the remaining business areas situated in the accommodation or solely accessible from the accommodation, the lessee undertakes on behalf of the lessor to
ensure that these conduits, service shafts and/or meter cupboards and suchlike are accessible and remain accessible at all times.
	
 	
 	

 

9

 

	

 	
 	

The stipulations of article 10 of the general terms and conditions, amongst others, apply unimpaired with regard to inspections and/or work in/on these conduits, service shafts and/or meter cupboards and suchlike.
	

9.9	
 	
Final delivery report at the commencement and termination of the lease agreement/penalty for late delivery.
	

9.9.1	
 	

The accommodation will be delivered/made available to the lessee by the lessor in the condition it is in on the delivery date/ date of availability to be decided by the lessor. The condition of the accommodation and the date of delivery/date of
availability are laid down in a final delivery report which will be drawn up in duplicate and dated and undersigned by both parties, of which each party will receive a specimen. The date of delivery/ date of availability will be May 1 2002 at
the latest.
	

9.9.2	
 	

Should final delivery take place after May 1 2002, the lessor will be liable to pay a penalty of € 378.91 (f 835.—) per day, for each calendar day later after May 1 2002 that the
accommodation is delivered.
	

9.9.3	
 	

Upon termination of the lease agreement, the procedure according to 5 of the general terms and conditions will be followed, notwithstanding the stipulations of article 9.6 of this lease agreement, on the understanding that article 1.2 of 5
in the general terms and conditions should be read as "the final delivery report as mentioned in 9.9" of this agreement.

Duly drawn up in duplicate and signed on 24/12/01 in Den Haag by: 

	The lessor:	 	The lessee:
	VOF Forward Erenha	 	Qad Netherlands B.V.
	

H. van Luling	
 	

C.D.Kemme
	

mr. C.H.D.J.M. van Duin	
 	

 

Appendices:

	–
	the
general terms and conditions as referred to in 2.1

	–
	the
technical description of the accommodation dated August 15 2000

	–
	drawings
of the accommodation belonging to the technical description

	–
	the
certified final delivery / availability report to be made up later by the parties in the sense of article 10.1 

	

 	
 	

 
	Lessor's initials:	 	Lessee's initials:

10

  

 

GENERAL TERMS AND CONDITIONS FOR OFFICE SPACE LEASE AGREEMENTS

and other premises for business use contrary to article 7A:1624 BW (Dutch Civil Code)

        In
accordance with the model drawn up by the Raad voor Onroerende Zaken (Dutch Real Estate Council) on February 29 1996 and filed and registered at the Office of the District
Court in "s Gravenhage under no. 34/1996. The Council denies all liability for any detrimental effects arising from the use of the model text. The headings above the articles of these general
terms and conditions are purely intended to improve readability. The content and scope of an article under a particular heading is not therefore limited only to that indicated by the heading
concerned. 

	
The accommodation
	

1.1	
 	

The installations and fixtures present in the accommodation are understood to form part of the accommodation, in as much as they are not excluded in the certified description ancillary to this agreement.
	

1.2	
 	

The accommodation is made available for occupation and accepted in the condition described in the certified description ancillary to this agreement or, in the absence thereof, is accepted to be in good condition and free of defects at the
commencement of the lease.
	
Occupancy
	

2.1	
 	

For the entire duration of the lease agreement, the accommodation may only in fact be used by the lessee himself, in a proper manner and exclusively for the purpose described in the lease agreement. The lessee must take into account existing
restricted rights and requirements set or to be set by government bodies or by public utilities. The lessee must also provide and maintain an adequate level of furnishings and inventory in the property.
	

2.2	
 	

The lessee will act in accordance with the law and local regulations as well as complying with customary practice in respect of leasing and letting, government regulations, public utility and insurance regulations and, if applicable, the regulations
of the Bureau voor Sprinklerbeveiliging (Dutch centre for sprinkler systems) and of the Stichting Nederlands Instituut voor Lifttechniek (Dutch Institute of elevator technology) and other official bodies authorized to issue the required certificates.
Likewise the lessee will act upon verbal and written instructions made by or on behalf of the lessor in the interests of proper usage of the accommodation and the internal and external spaces, installations and fixtures of the building or complex of
which the accommodation is a part. This includes instructions in respect of upkeep, appearance, noise levels, public order, fire safety, parking and the correct operation of installations and the building or complex of which the accommodation is a
part.
	

2.3	
 	

The lessee may not cause nuisance or inconvenience by his use of the accommodation, or of the building or complex of which the accommodation is a part and will ensure that third parties present at his behest also do not so.
	

2.4	
 	

The lessee has the right to and a duty to use the common facilities and services which are available or will be made available in the interests of the proper functioning of the complex of which the accommodation is a part.
	
Licenses
	

2.5.1	
 	

The lessee is bound to ensure the necessary licenses and/or dispensations required for the activities, for which the accommodation is to be used, are obtained. Refusal or withdrawal thereof will not lead to dissolution or nullification of the lease
agreement or to any other action against the lessor.
	
 	
 	

 

11

 

	

2.5.2	
 	

If alterations or modifications to the accommodation in respect of 2.5.1 are necessary, whether these are prescribed by the authorities or not, the lessee (notwithstanding the stipulations of 2 .6 and 2.10) is responsible for ensuring that all
relevant requirements set or to be set by the authorities are met during the execution of the alterations, as well as obtaining the licenses required, whilst all costs of the alterations or modifications are for the account of the lessee.
	
Environment
	

2.6.1	
 	

If an environmental investigation of the accommodation is instituted at the commencement of or during the course of the lease agreement, and subsequently an equivalent investigation during the course of the lease agreement or directly after the
termination of the lease agreement, reveals high concentrations of one or more substances under, in or around the accommodation other than those which were the subject of the earlier investigation, then the lessee is bound to reimburse the damages
caused by the contamination and he is liable for costs incurred by the lessor for neutralizing the contamination or other measures taken.
	

 	
 	

The lessee indemnifies the lessor in this respect against claims from third parties, including government bodies.
	

2.6.2	
 	

The stipulations of 2.6.1 do not apply if the lessee can demonstrate that the contamination has been neither caused through the actions or omissions of himself, of his personnel or of persons or things under his supervision, nor through circumstances
which can be attributed to the lessee.
	

2.6.3	
 	

The lessor does not indemnify the lessee against (official) warrants for further investigations or for taking measures.
	
Refuse/chemical waste
	

2.7	
 	

In the event of government guidelines or regulations being in force with regard to (sorting and) offering refuse for collection, or such guidelines and regulations laid down by other competent authorities, then the lessee is bound to fully comply
with these instructions at all times. The lessee is liable for all financial consequences, criminal charges and other possible consequences arising from not complying or not fully complying with this obligation.
	
Advertising
	

2.8	
 	

If the accommodation is part of a building or complex, the lessor has the right to place (illuminated) signs and other advertising materials on the roofs or outside walls, or in the gardens and the land belonging to that building or complex, both for
his own purposes and for the purposes of the lessee or third parties.
	

 	
 	

The lessor will consider the interests of the lessee when exercising this right.
	
Apartment right
	

2.9.1	
 	

If the building or complex, of which the accommodation is a part, is or will be split up in apartment rights, then the lessee is bound to comply with the provisions arising from the deed of division and the division regulations regarding the use
thereof. The same applies should the building or complex be or become owned by a cooperative society.
	

2.9.2	
 	

The lessor, in as much as he is able to, will not be a party to the bringing about provisions which are contrary to the lease agreement.
	

2.9.3	
 	

The lessor will ensure that the lessee come into possession of the provisions regarding use referred to in 2.9.1.
	
 	
 	

 

12

 

	
Prohibitory stipulations and rules of procedure
	

2.10.1	
 	

The lessee is not permitted:
	

 	
 	

a.    to hold items in, on or against or in the direct surroundings of the accommodation, which are detrimental to the environment, such as malodorous, flammable or explosive items, unless these form a part of the normal
occupational or business activities;
	

 	
 	

b.    to impose higher loads on the floors of the accommodation, or of the building or complex of which it is a part, than those permitted by the construction or indicated in the lease agreement;
	

 	
 	

c.    to use the accommodation in a way that may cause contamination of the ground or other environmental contamination, structural damage to the accommodation or damage to the appearance of the accommodation, including the use of
means of conveyance which can cause damage to floors and walls;
	

 	
 	

d.    to make changes or modifications in, on or against the accommodation which are contrary to government and public utility regulations, contrary to the provisions under which the owner of the accommodation acquired ownership
thereof, contrary to other restricted rights, or which cause nuisance to other lessees or neighbors or hinder their occupation.
	

2.10.2	
 	

Without first gaining the lessor's prior consent, the lessee is not permitted:
	

 	
 	

a.    to make changes or modifications in, on or against the accommodation, including making holes in the outside walls;
	

 	
 	

b.    to hold or affix items in, on or against the accommodation or in the direct surroundings of the accommodation, including name signs, advertising, boards, announcements, publications, buildings, wooden structures, racks,
packaging materials, goods, automatic dispensers, lighting, sun blinds, aerials and accessories, flag poles, etc., nor to black out windows;
	

 	
 	

c.    to enter or to allow others to enter the services and technical installation rooms, the roofs and roof leads, gutters and all rooms and places of the accommodation or of the building or complex of which it is a part, which
are not open for general use, unless this is for carrying out work or repairs, which the lessee is bound to do under the provisions of this agreement;
	

 	
 	

d.    to park or store vehicles in places other than those designated for that purpose.
	

2.10.3	
 	

The lessor is in no way liable for the changes and modifications referred to under 2.10.2 a and b.
	

2.10.4	
 	

The lessee is bound to keep fire extinguishers and hoses and escape-routes free of obstacles at all times.
	

2.10.5	
 	

If an elevator, moving walkway, escalator or automatic door mechanism belongs to the accommodation or one or more of these items are used to gain access to the accommodation, then the use of these items is explicitly at the user's own risk. All
regulations, set by or to be set by the lessor or on behalf of the lessor, by the installers involved and by the authorities, must be exactly complied with. The lessor may—if necessary and for as long as required—take these items out of
service without incurring liability for compensation or reduction of the rent in respect of the lessee.
	

2.10.6	
 	

If items affixed by the lessee (including advertisements or other signs) must be temporarily removed for maintenance or other work on the accommodation, or respectively the building or complex of which it is a part, then the costs of removal, any
storage costs and costs of reinstalling will be for the account and risk of the lessee, irrespective of whether the lessor has consented to the installation of the items referred to.
	
 	
 	

 

13

 

	
Requests/Permission
	

2.11.1	
 	

If the lessee, having signed this agreement, should desire a change and/or supplement to any stipulation in this agreement, then the lessee must request this in writing.
	

2.11.2	
 	

If and in as much as any stipulation in this agreement requires the consent of the lessor, then this will only be seen to have been given, when made in writing.
	

2.11.3	
 	

Any consent granted by the lessor is non-recurrent and does not apply to other or subsequent cases. The lessor has the right to make his consent subject to conditions.
	
Subletting
	

3.1	
 	

Without prior consent of the lessor, the lessee is not permitted to let, sublet or allow third parties to use the complete accommodation or a part thereof, nor to transfer the lease rights partly or fully to third parties or to a partnership or a
legal person.
	

3.2	
 	

In the event that the lessee violates the above stipulation, he will forfeit an immediately payable penalty to the lessor for each calendar day that the transgression lasts, equal to twice the daily rent current for the lessee at that time,
notwithstanding the lessor's right to demand compliance or termination, as well as compensation.
	
Rent Reviews
	

4.1	
 	

A rent review in accordance with 4.3 of this lease agreement will be effected based upon the change of the monthly price index according to the consumer price index (CPI) series CPI-Werknemers Laag (CPI-Employees Low) (1990 = 100), published by
the Centraal Bureau voor Statistiek (Dutch Central Statistical Office).
	

 	
 	

The rent review will be calculated according to the following formula; the reviewed rent is equal to the current rent on the date that the rent is reviewed, multiplied by the index figure for the calendar month four months prior to the calendar month
in which the rent is reviewed, divided by the index figure for the calendar month sixteen months prior to the calendar month in which the rent is reviewed.
	

4.2	
 	

The rent will not be changed if the review would lead to a lower rent than the last current rent. In that case the last current rent remains unchanged, until the next review period when the index figure of the calendar month four months prior to the
calendar month in which the rent is reviewed, is higher than the index figure for the calendar month four months prior to the calendar month in which the rent was increased. In that case the index figures of the months referred to in the last
sentence are used to calculate the rent increase.
	

4.3	
 	

The reviewed rent applies, even if not explicitly made known to the lessee.
	

4.4	
 	

Should the CBS (Dutch Central Statistical Office) discontinue the publication of the index figure referred to, or should the method of calculation change, then a modified index figure or one which is as comparable as possible will be used. Should
parties not be in agreement with this, the most interested party may request a ruling from the director of the CBS (Dutch Central Statistical Office) which is binding for both parties. Any costs incurred will be split equally between the
parties.
	
 	
 	

 

14

 

	
Termination of the agreement or occupancy
	

5.1	
 	

With the exception of any legal rights he may have, the lessee is bound to hand the accommodation over to the lessor, to his full satisfaction, upon termination of the lease agreement or occupancy, in the original state, laid down in the certified
description drawn up at the beginning of the agreement as described in 1.2 and in the absence thereof in good condition, fully vacated, free of occupancy and rights of usage and properly cleaned along with all keys, keycards etc. The lessee is bound
to remove all items installed by him in, on or against the accommodation or taken over from the previous lessee or occupant at his own cost.
	

 	
 	

The lessor is not liable to pay compensation for any items which are not removed.
	

5.2	
 	

The lessor has the right to deem the lease terminated, if the lessee had ended occupancy with or without due notice without having handed the keys over to the lessor, and to gain entrance to the accommodation at the cost of the lessee and take
possession thereof, without the lessee having any right to compensation of damages or any other rights.
	

5.3	
 	

All items which the lessee has apparently relinquished by leaving them behind in the accommodation when he in fact left the accommo- dation, may be removed by the lessor, at his discretion, without incurring any liability, at the cost of the lessee,
unless the lessor is aware that the next lessee has taken over such items.
	

5.4	
 	

A timely inspection of the accommodation should take place, carried out jointly by both parties, before the termination of occupancy or of the lease agreement.
	

 	
 	

The parties will draw up a report of this inspection, in which the findings are noted. Also any work still to be carried out in respect of any necessary repairs noted during the inspection, or in respect of overdue maintenance to be paid for by the
lessee, will be laid down along with the way in which this should be done.
	

5.5	
 	

If the lessee, having been given all due opportunity to do so, does not make an appointment for the inspection within a reasonable period of time and/or does not cooperate with the recording of the findings and agreements in the inspection report,
then the lessor is authorized to carry out the inspection without the lessee being present and to draw up the report which is then binding for both parties. The lessor will make a copy of this report available to the lessee without delay.
	

5.6	
 	

The lessee is bound to carry out the work recorded in the inspection report, or to have this work carried out by others, within the period agreed to in the report—or within a period to be further agreed between both parties- to the full
satisfaction of the lessor.
	

 	
 	

If the lessee, even after notice of default, remains fully or partly negligent in meeting of the obligations arising from the report, then the lessor has the right to have this work carried himself and to charge all cost to the lessee.
	

5.7	
 	

For the period necessary for repairs, calculated from the date of termination of the lease agreement, the lessee will owe the lessor an amount calculated according to the last current rent and increased with the cost of extra services or deliveries,
notwithstanding the lessor's claim to compensation of further damage or costs.
	
Damage
	

6.1	
 	

The lessee is bound to timely take all necessary measures to avoid and restrict damage to the accommodation, such as damage arising from electrical short-circuits, fire, leakage, storm, frost or any other weather conditions, and the passage of gases
or liquids in or out of the accommodation. The lessee is furthermore bound to inform the lessor immediately if any such damage or an event as described in 6.5 should occur or be imminent.
	
 	
 	

 

15

 

	

6.2	
 	

Where the lessee is able to do so, the above applies also to the appearance of the building or complex of which the accommodation is a part.
	

6.3	
 	

The lessee has a responsibility with respect to the lessor for all damage and losses to the accommodation unless the lessee can prove that he, the persons he has allowed into the accommodation, his personnel and the persons for whom he is liable, are
not to blame for such damage or loss, or that he cannot be charged with negligence in that respect.
	

6.4	
 	

The lessee indemnifies the lessor from all fines which can be imposed upon him for negligence or actions of the lessee.
	

6.5	
 	

The lessor is not liable for damage caused to the person or property of the lessee or of third parties—and the lessee indemnifies the lessor from claims by third parties in that respect—by the occurrence of or by the consequences of visible
and invisible defects in the accommodation or in the building or complex of which it is a part, or by the occurrence of or as a consequence of weather conditions, of blockages of access to the accommodation, or interruptions in the supply of gas,
water, electricity, heat, ventilation or air-conditioning, by breakdowns of the technical installations and equipment, by the passage of gases or liquids in and out of the accommodation, by fire, by explosions and other events, by disruption of the
peaceful enjoyment of the lease agreement and by disruption or shortcomings of services and facilities, all with the exception of cases of damage arising from gross negligence of the lessor with respect of the state of repair of the accommodation or
of the building or complex of which it is a part.
	

6.6	
 	

The lessor is not liable for consequential loss suffered by the lessee nor for damages arising from the activities of other lessees or from restrictions in the usage of the accommodation caused by third parties, unless in the case of gross negligence
of the lessor in this respect.

16

   Premature termination, breach of contract  

	

7.1	
 	

If the lessee
	

 	
 	

–    does not pay the sums owed at the times agreed;
	

 	
 	

–    discontinues his occupation or business in the accommodation fully or for a major part;
	

 	
 	

–    does not comply with any other stipulation of the lease agreement;
	

 	
 	

–    does not observe any condition applying to a permission granted by the lessor;
	

 	
 	

–    loses the free disposal over all his assets or a part of his assets;
	

 	
 	

–    in the event he is not a natural person, loses his corporate personality, is dissolved, or is liquidated de facto;
	

 	
 	

–    is declared bankrupt;
	

 	
 	

–    offers a settlement outside a liquidation procedure, or if the lessee's goods are seized;
	

 	
 	

–    should pass away;
	

 	
 	

the lessor is entitled to end the agreement prematurely. Notice of termination will only be given if required by the law.
	

7.2	
 	

The lessee is in breach of contract if a single payment is missed or if just one of the circumstances described above should occur.
	

7.3	
 	

The lessee is bound to reimburse all damages, costs and interest as a consequence of the circumstances described in 7.1 and as a consequence of premature termination of the lease agreement, also in the event of bankruptcy and suspension of
payments.
	

 	
 	

The rent, the reimbursement of additional services and facilities, such as heating costs, turnover tax and other sums owed, the costs of re-leasing and all cost of actions taken by the lessor in the law courts and extra-judicially, including those
for legal advice arising from the circumstances described under 7.1, are considered to be included in such damages in all events.
	

7.4	
 	

The determinations of 7.1 up to an including 7.3 do not prevent the lessor from exercising his other rights, including demanding his right to performance with damage compensation.
	
Bank Guarantee
	

8.1	
 	

As security that he will properly meet the obligations arising from the lease agreement, the lessee will provide the lessor with a bank guarantee upon signature of the lease agreement, in accordance with a model designated by the lessor, amounting to
the sum shown in the lease agreement, commensurate to the payment obligation of the lessee with respect to the lessor, including turnover tax at the current rate. This bank guarantee should be made valid for prolongation of the lease agreement
including any reviews thereof, and for a period of six months subsequent to the date that the accommodation is in actual fact vacated, concurrent with the lease agreement being terminated. The bank guarantee must additionally apply for legal
successors of the lessor.
	

8.2	
 	

The lessee has no right to deduct any amount in respect of the bank guarantee.
	

8.3	
 	

In the event that the bank guarantee must be used, the lessee will ensure that a new bank guarantee is raised at the first request of the lessor, which meets the stipulations in 8.1 and 8.4, bringing the guaranteed sum back to the full
amount.
	
 	
 	

 

17

 

	

8.4	
 	

The lessee is bound to take out a new bank guarantee corresponding to the new payment obligation immediately following the lessor's request to do so, when the rent, charges for services and facilities or the advance payment thereof and the turnover
tax at the current rate are increased.
	

8.5	
 	

If the lessee does not comply with the obligations described in this article, he is liable to pay the lessor a directly payable penalty for each offence of f 500.—per calendar day that he is in
default, after he has been notified of default by registered letter.
	
Maintenance and upkeep
	
For the account of the lessor
	

9.1	
 	

Unless it is work that must be viewed as small and daily repairs in the sense of the law (article 7A:1619 BW (Dutch Civil Code)), or work on items which have not been installed by the lessor or on behalf of the lessor in, on or against the
accommodation, the following is for the account of the lessor:
	

 	
 	

a.    maintenance, repair and renewal of the constructional elements of the accommodation, such as foundations, columns, beams, load bearing floors, roofs, roof leads, load bearing walls, outside facades;
	

 	
 	

b.    maintenance, repair and renewal of stairs, staircase steps, sewers, gutters, outside door and window frames, and suchlike. In the case of sewers the stipulations of 9.2.4 remain undiminished in force;
	

 	
 	

c.    replacement of parts and renewal of technical installations such as the elevator installation, central heating and high pressure water systems;
	

 	
 	

d.    outside paintwork.
	
For the account of the lessee
	

9.2.1	
 	

All other maintenance, repair and renewal are for the account of the lessee, such as;
	

 	
 	

a.    external maintenance if and in as much as these is work that must be viewed as small and daily maintenance in the sense of the law (article 7A:1619 BW (Dutch Civil Code)), as well as internal maintenance not covered by
the stipulations of 9.1, notwithstanding the further stipulations here below;
	

 	
 	

b.    maintenance, repair and renewal of locks and hinges, mirrors, windows and other glass panes, both inside and outside;
	

 	
 	

c.    maintenance, repair and renewal of roller shutters, Venetian blinds, awnings and other sun shades;
	

 	
 	

d.    maintenance, repair and renewal of switches, power points, bell systems, lamps, lighting (including armatures), carpeting, curtains, drapes and upholstery, internal paintwork, kitchen sinks, sanitation;
	

 	
 	

e.    maintenance, repair and renewal of pipe work and valves of gas, water and electricity from the meter or main connection valve including all ancillary items, except for renewal due to normal wear and tear;
	

 	
 	

f.    maintenance, repair and renewal of boundary partitions as well maintaining the gardens and the grounds;
	

 	
 	

g.    daily maintenance and repair (and replacement of minor parts) of the technical installations belonging to the accommodation;
	
 	
 	

 

18

 

	

9.2.2	
 	

Maintenance, repair and renewal of items installed by or on behalf of the lessee, on account of a provisional sum made available to him by the lessor, are for the account of the lessee.
	

9.2.3	
 	

Furthermore the costs of cleaning and maintaining cleanliness of the accommodation, both internally and externally, including the cleaning of windows, door and window frames and facades of the accommodation are for the account of the
lessee.
	

9.2.4	
 	

In addition the costs of emptying grease traps, cleaning and unblocking pits, gutters, and all drains/sewers of the accommodation up to the local authority main drainage system, sweeping chimney stacks and cleaning ventilation ducts.
	

9.3	
 	

If the lessee, after receiving a reminder, neglects to carry out maintenance, repair and renewal for which he is responsible—or if the such maintenance, repair and renewal in the opinion of the lessor has been carried out poor or
incompetently—the lessor is entitled to carry out or have carried out such maintenance, repair and renewal at the costs and risk of the lessee.
	

 	
 	

If delay of the work for the account of the lessee cannot be tolerated, the lessor is entitled to carry this out or have this carried out without delay, at the cost of the lessee.
	

9.4	
 	

In the case of maintenance, repair and renewal work to be carried out by the lessor, the lessor will consult the lessee beforehand in order to take the interests of the lessee into consideration as much as possible. If the lessee requests such work
to be done outside of normal working hours, then the extra costs of this are for the account of the lessee.
	

9.5	
 	

The lessee is responsible for the correct and competent use of the accommodation including all the technical installations in the accommodation. The lessee is responsible for entering into service contracts at his own cost and risk. Service contracts
with regard to the installations must be approved by the lessor. With regard to maintenance the above applies except in as much as 12.2 is applicable.
	

9.6	
 	

The lessee will inform the lessor of defects in the accommodation without delay.
	

9.7	
 	

If the lessee and the lessor agree that the items which are for the account of the lessee according to this article will not carried out by order of the lessee but by order of the lessor, then the costs thereof will be invoiced to the lessee by the
lessor. In a number of instances the lessor will enter into maintenance contracts for that purpose.
	
Alterations
	

10.	
 	

If the lessor judges it necessary to carry out or have carried out maintenance, repair and renewal, including extra facilities and alterations, renewal work or other work in, on or against the accommodation or the building or complex of which the
accommodation is a part or to adjoining buildings, or if this is necessary due to (environmental) requirements of the government or public utilities, the lessee will tolerate the work and measures and any possible inconvenience, without being able to
demand any damage compensation or reduction in the payment obligation or termination of the lease agreement, even if this work takes longer than forty days, notwithstanding however the stipulations of article 7A:1589 BW (Dutch Civil Code). The
lessor will take the interests of the lessee into account as much as possible during the carrying out of the work.
	
Lessor access
	

11.1	
 	

If the lessor wishes to have the accommodation valued, or wishes to have carry out work in the sense of 2.6, 5, 9.3 or 10, the lessee is bound to provide access to the lessor or those persons who will approach the lessee for this purpose and make it
possible for them to carry out the work seen as necessary.
	
 	
 	

 

19

 

	

11.2	
 	

For the execution of the stipulations of the first paragraph, the lessor and all persons to be appointed by him are entitled to have access to the accommodation, after first consulting the lessee, on working days between 07.00 and
17.30 hours.
	

 	
 	

In emergencies the lessor is entitled to enter the accommodation without first consulting the lessee, if necessary outside of the times notified above.
	

11.3	
 	

In the case of the intended sale or auctioning of the accommodation and after termination of the lease agreement, the lessee is bound, without any compensation, during at least two working days per week, following the prior announcement of the lessor
or his appointed representative, to provide access to the accommodation for viewing. He will tolerate the usual "for rent" or "for sale" signs or posters on or in the area of the accommodation.
	
Costs of services and facilities
	

12.1	
 	

In addition to the rent, the costs of water and energy consumption for the accommodation, including the costs of entering into a supply agreement and the meter hire, as well as any other costs and fines which are invoiced by the public utility
companies, are for the account of the lessee. The lessee must enter into supply agreements with the companies involved himself, unless the accommodation does not have its own connection point and the lessor provides this as part of the agreed extra
services and facilities.
	

12.2	
 	

If both parties have agreed on additional services and facilities to be provided by or on behalf of the lessor, the lessor will set the payment thereof owed by the lessee on the basis of the costs which are incurred by the services and facilities and
the administrative costs incurred in this respect. This applies to both the technical installations as well as other services and facilities. If the accommodation is a part of a building or complex and the services and facilities are shared with
other parts belonging to that building or complex, the lessor will determine the lessee's share of the costs of the services and facilities on a reasonable basis. When doing this, the lessor is not required to take into account the fact that the
lessee does not make use of one or more of these services or facilities. If one or more parts of the building or complex are not in use, the lessor when determining the lessee's share will ensure that this is no higher than when the building or
complex would be fully occupied.
	

12.3	
 	

The lessor will provide the lessee each year with a specified statement of the costs of the services and facilities, detailing the way they have been calculated and, in as much as applicable, the lessee's share in the costs.
	

12.4	
 	

At the end of the lease agreement a statement will be provided over the period, for which this has not yet occurred. This last statement will be provided at the latest within 14 months of the date upon which the previous statement was made
available. Neither the lessee nor the lessor will claim premature settlement.
	

12.5	
 	

The sum, according to the statement over the period concerned and taking the advance prepayments into account, which has been underpaid by the lessee or excessive payments received by the lessor, will be paid or returned respectively within one month
of the statement being supplied. This obligation will not be suspended, in the event of the correctness of the statement being challenged.
	

12.6	
 	

The lessor is entitled to change or to stop services and facilities, having first consulted the lessee.
	

12.7	
 	

The lessor is entitled to prematurely adjust the advance payments on the charges owed by the lessee for the services and facilities in the light of the expected costs, in the sense of 12.6 amongst other things.
	
 	
 	

 

20

 

	

12.8	
 	

In the event that the supply of heat and/or hot water is included in the services and facilities, the lessor can, having first consulted the lessee, adjust the way in which the consumption is established and as a consequence, the lessee's share in
the costs of the consumption.
	

12.9	
 	

If the consumption of heat and /or hot water is determined using meters and a dispute should arise over the lessee's share in these costs due to the meters not functioning or incorrectly functioning, then the lessor will consult a company specialized
in measuring and determining heat and hot water consumption, who will establish the lessee's share in the costs. This will also occur in the event of damage, destruction, or fraud with regard to the meters, notwithstanding all other rights the lessor
has against the lessee in that case, such as the right to repair or renewal of the meters and compensation for the damages suffered.
	

12.10	
 	

Except in the case of gross negligence, the lessor is not liable for any damage whatsoever resulting from the non-functioning or incorrect supply of the aforementioned services and facilities.
	

 	
 	

Neither will the lessee claim rent reduction in such cases.
	
Costs
	

13.	
 	

In all cases where the lessor issues a summons, notice of default or a bailiff's writ on the lessee, or in the case of procedures against the lessee to force him to observe the agreement or to vacate the accommodation, the lessee is bound to
reimburse all costs thereby incurred to the lessor, both in court and extra-judicially—with the exception of court costs which a court has directed the lessor to pay. In anticipation the costs incurred between the parties are set at an amount
that is no lower than the usual rates charged by bailiffs of the court.
	
Payments
	

14.1	
 	

The payment of the rent and all other payments owed pursuant to this lease agreement will be deposited on or transferred by bank transfer to a bank account to be advised by the lessor, on the due dates at the latest and in legal Dutch
tender—without any delay, discount, deduction or offset against an outstanding claim the lessee has or means he has against the lessor. The lessor is free to make changes in the place or means of payment, by notifying the lessee in writing. The
lessor is entitled to decide to which account receivable arising from the agreement a payment received from the lessee is allotted, unless the lessee explicitly indicates otherwise when making payment. In this last case, article 6:50 BW (Dutch
Civil Code) does not apply.
	

14.2	
 	

In each instance that a sum owed by the lessee in accordance with the lease agreement is not paid promptly on the date due, the lessee forfeits to the lessor by law a directly payable fine of 2% per month of the sum owed with a minimum of
f 250.—per calendar month, whereby each calendar month that has begun counts as a full month.
	
Taxes, charges, levies, premiums etc.
	

15.1	
 	

If it has been agreed that turnover tax will be paid over the rent, the lessor will submit the request opting for taxable rent, in the sense of 5.2 of the lease agreement, to the tax inspector concerned.
	

15.2	
 	

If the request opting for taxable rent is not granted, then the lessee will owe the lessor an amount extra to the rent which corresponds to the amount of turnover tax that would have been due, had the request opting for taxable rent been
granted.
	

 	
 	

If a request opting for taxable rent is granted at a later date than initially requested, the lessee owes the lessor an amount extra to the rent which corresponds to the amount of turnover tax due, from the agreed date of commencement up to the date
of commencement of the taxable rent.
	
 	
 	

 

21

 

	

15.3	
 	

If the lessee can demonstrate that the request for taxable rent is not granted at all or not granted on the requested date due to default by the lessor, he will not owe the amount of turnover tax due in the sense of 15.2.
	
Other taxes, charges, levies, premiums etc.
	

15.4	
 	

The following are for the account of the lessee, even if the lessor receives the tax assessment:
	

 	
 	

a.    real estate tax and water board charges or polder charges with regard to the actual use of the accommodation and the actual use of the service rooms, general areas and the so-called common areas;
	

 	
 	

b.    other existing or future taxes, municipal taxes on encroachments on or above public land, charges, levies and retributions with regard to the accommodation and items belonging to the lessee, with the exception of the real
estate tax and the water board charges or polder charges with regard to ownership rights as well as sewerage charges;
	

 	
 	

c.    environmental levies including the surface water pollution levy and the contribution to the cost of purifying waste water and all other contributions with regard to protecting the environment;
	

15.5	
 	

If in connection with the nature of the occupation or business of the lessee or his business activities in the accommodation, or the building or complex of which the accommodation is a part, a higher than normal fire insurance premium for the
building or inventory and goods is charged to the lessor or other lessees of the building or complex, the lessee will pay the excess above the normal premium to the lessor or other lessees.
	

 	
 	

The lessor and the other lessees are free in their choice of insurance company, the establishing of the insured value and the judgment whether the premium owed is reasonable.
	

 	
 	

'Normal premium' is defined as the premium that the lessor or lessee can negotiate with a respectable and well-known insurer registered in the Netherlands for insuring the accommodation, respectively the inventory and goods, against fire risk on the
date directly prior to this lease agreement being entered into, without making allowances for the nature of the occupation or business of the lessee or his business activities in the accommodation, as well as—for the duration of the lease
agreement—each revision of this premium, which is not a consequence of a change in the nature or size of the insured risk.
	
Severalty
	

16.1	
 	

If various (natural or legal) persons are joint lessee, these are always jointly and severally liable in all respects with regard to the lessor, for all obligations arising from the lease agreement.
	

 	
 	

Deferment of payment or remission by the lessor in respect of one of the lessees, or a proposal to that effect, applies only to that lessee.
	

16.2	
 	

The obligations in the lease agreement are several with respect to heirs and successors of the lessee.
	
Late delivery
	

17.1	
 	

If the accommodation is not available on the date agreed in the lease agreement, due to the accommodation not yet being fully constructed—unless explicitly so requested by the lessee—, due to the previous occupant not having vacated on time,
 or if the lessor has not yet received the licenses required by the authorities, the lessee is not liable to pay rent or additional charges for services and facilities until the date that the accommodation is made available to him, and all his other
obligations and the agreed payment installments are correspondingly postponed. Rent indexation remains unchanged.
	
 	
 	

 

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17.2	
 	

The lessor is not liable for damages suffered by the lessee due to late delivery, unless he can be charged with gross negligence.
	

17.3	
 	

The lessee cannot demand dissolution, unless the late delivery has been caused intentionally or by negligence on behalf of the lessor and has resulted in such a long delay, that the lessor cannot reasonably demand that the agreement valid in its
original form.
	
Data Protection Act
	

18.	
 	

If the lessee is a natural person, the personal details of the lessee may have been recorded by the lessor and administrator (if any) in a data base for personal details.
	
Domicile
	

19.1	
 	

From the date of commencement of the rent, all announcements by the lessor to the lessee with regard to this lease agreement, will be sent to the address of the accommodation.
	

19.2	
 	

The lessee is bound to inform the lessor without delay, if he in fact ceases to carry out his business in the accommodation and apprise him of a new domicile in the Netherlands.
	

19.3	
 	

In the event the lessee should leave the accommodation without apprising the lessor of a new domicile in the Netherlands, the address of the accommodation will be seen as the domicile of the lessee.
	
Complaints
	

20.	
 	

The lessee will submit complaints and requests in writing. This may be done verbally in urgent cases. In such cases the lessee will confirm the complaint or request in writing as soon as possible.
	
Administrator
	

21.	
 	

If the lessor has appointed or appoints an administrator, the lessee will contact the administrator with all circumstances relevant to the agreement.
	
Final provision
	

22.	
 	

If a part of the agreement or of these general terms and conditions is null and void or voidable, this does not affect the validity of the remaining part of the agreement or of these general terms and conditions. In place of the part which is null
and void or voidable, the stipulation or stipulations will apply, which in a legally permissible way most closely approach what the parties would have agreed, had they been aware that the part in question was null and void or voidable.

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