Document:

Exhibit
10.1

THIS AGREEMENT HAS CONFIDENTIAL PORTIONS OMITTED, WHICH PORTIONS HAVE
BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMISSION. OMITTED
PORTIONS ARE INDICATED IN THIS AGREEMENT WITH BRACKETS ([*]).

 

MASTER
DISTRIBUTION AGREEMENT

THIS MASTER DISTRIBUTION
AGREEMENT (“Master Agreement” or “Agreement”) is made as of
the 20th day of November, 2006 (“Effective Date”).

	
  BETWEEN

  	
   

  	
  Motorola, Inc., a company
  incorporated in Delaware, U.S.A., and having a principal place of business at
  600 North U.S. Highway 45, Libertyville, IL 60048-1286 (hereinafter referred
  to as “Motorola”)

  
	
   

  	
   

  	
   

  
	
  AND

  	
   

  	
  CellStar, Ltd., a Texas
  limited partnership, and having a principal place of business at 601 S. Royal
  Lane, Coppell, TX 75019 (hereinafter referred to as “CellStar” or
  “Distributor”).

  

 

WHEREAS:

A.                                   Motorola
is a manufacturer and supplier of cellular telephone products and accessories (“Products”)
and sells them directly to is operator customers and also through independent
distributors and retailers around the world; and

B.                                     Motorola
seeks to continue selling Products directly, and also through independent
distributors and retailers, to customers on a global basis; and,

C.                                     Distributor
seeks to expand its role as a major distributor of Products in many of the
regions where Motorola currently sells Products; and,

D.                                    Both
Motorola and Distributor recognize the efficiency in managing the worldwide
sale of Products through a global set of terms and conditions pursuant to this
Master Agreement while implementing amendments to address region-specific
programs (“Regional Amendments,” an example of which is set forth as Exhibit A)
and daily business operations within each territory; and,

E.                                      Both
parties agree that any applicable agreements in the regions shall remain in
full force and effect and shall control the relationship of the parties until
such time as an applicable Regional Amendment is executed between the parties.

THEREFORE, in
consideration of the mutual covenants and promises and subject to the terms and
conditions of this Agreement, the parties agree as follows:

1.  APPOINTMENT AND ACCEPTANCE

1.1           Subject to the terms of this
Agreement, Motorola hereby appoints Distributor and Distributor accepts the
appointment as an authorized non-exclusive Distributor for selected Motorola
manufactured and supplied cellular telephone products and accessories as
determined by Motorola in its sole and absolute discretion and listed in a Term
Sheet or Regional Amendment, incorporated herein by reference and as may be
amended from time to time, or on Motorola’s Products and Accessories Price
Lists given to Distributor from time to time (hereinafter referred to as the “Products”),
which lists may be amended from time to time by Motorola at its sole discretion
without any prior notification.  In the
event of a conflict between this Agreement and the Term Sheet, the Term Sheet
shall control as to the subject matter of the Term Sheet.

1.2           Unless
otherwise specified in a Regional Amendment, any conflict between this Agreement
and a Regional Amendment shall be resolved in favor of the Agreement.

1.3           Distributor is authorized to purchase
Products directly from Motorola and its subsidiaries (i.e. Motorola Electronics
Pty. Ltd., in Singapore) pursuant to the ordering process set forth in Section
3 and to resell such Products solely within the territories specified in either
this Agreement or a Regional Amendment (the “Territory”).  Distributor acknowledges and agrees that
Motorola reserves the right, at any time and without prior notice, to appoint
other distributors within the Territory and that 

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Motorola may, at its sole
and unrestricted discretion, choose to use other agents, dealers, distributors,
representatives and independent contractors, as well as its regularly employed
sales force and that of its subsidiaries or affiliated companies for direct
sales, to promote the sale of Products within the Territory.  Distributor acknowledges and agrees that
Motorola reserves the right to restrict the distribution of specific models of
Products to specific areas and/or customers within the Territory and
Distributor agrees to limit its distribution of such models accordingly.

1.4           In addition to the rights granted in
this Section, Distributor shall also have the non-exclusive right to sell
Products to any master agent, sub-agent or independent agent of any carrier
customer of Motorola, (hereinafter collectively referred to as “Agents”) so
long as the Agent directly activates Products on networks owned and operated by
any wireless carrier that allows Distributor to sell to its Agents.  In the event that any wireless carrier
specifies to Motorola that Distributor is not permitted to sell to its Agents,
Motorola shall promptly notify Distributor and Distributor shall immediately
cease and desist selling any Products to that particular wireless carrier’s
Agents.  In the event that Distributor
violates the terms of this Section by selling to any company or entity that
does not directly activate Products on a wireless carrier’s network, or by
selling Products to an Agent after notice by Motorola that Distributor is not
authorized to sell to its Agents, then Motorola may, in addition to any other
remedy or recourse it may possess at law or equity, terminate this Master
Agreement, with no further obligation or liability to Distributor.

2.  DISTRIBUTOR RESPONSIBILITIES

2.1           Distributor’s
territory of distribution shall be specified in the relevant Regional
Amendments (hereinafter referred to as “Territory”).  Distributor shall not knowingly or intentionally
transship, sell, or otherwise transfer Products outside the Territory, and
Distributor shall incorporate this restriction into all of its agent and
distributor equipment agreements as a condition of resale of the Products and
use all reasonable commercial efforts to enforce the same.  Sales within the Territory without
intentional transshipment is a material condition to Distributor’s rights under
this Agreement, and it is agreed that any knowingly or intentional direct or
indirect distribution, transshipment and/or sale of the Products outside the
Territory by Distributor or others purchasing through Distributor shall be a
material breach of this Agreement and will result in substantial damage to
Motorola which will be difficult to quantify. 
If Products (regardless of quantity) are found outside the Territory in
breach of this provision, then in addition to any other remedies Motorola may
have under applicable law or this Agreement, Motorola may, in its sole and
reasonable discretion:

(a)   reject, or refuse to fill, some or all of
Distributor’s Purchase Orders for a particular Product that is found outside
the Territory until Distributor can demonstrate that it has instituted policies
and procedures reasonably acceptable to Motorola to prevent such occurrences in
the future;

(b)   require Distributor to reimburse Motorola for
the reasonable expenses Motorola incurs to recover all transshipped Products
(based on Products with an ESN traceable to purchases by Distributor that are
found outside the Territory);

(c)   suspend sales of any Products to Distributor
for up to ninety (90) days or until Distributor can demonstrate that it has
instituted policies and procedures reasonably acceptable to Motorola to prevent
such occurrences in the future;

(d)   suspend payment of all, or a portion of any,
rebates, marketing funds, or other discounts related to the Products found
outside the Territory; and/or

(e)   request Distributor to terminate its
relationship with its customer and/or stop selling Products to its customer.

2.2           If Distributor, or any of its
affiliates, dealers, distributors, agents or resellers place Products
on an operator’s network (regardless of location) that have not been
approved for sale on that network by Motorola, Distributor shall pay
Motorola an appropriate reconfiguration fee to repair and reflash the
Products for the particular network and/or territory.  Under these
circumstances, Motorola will have the further right to exercise any of the
options listed above in Section 2.1.

2.3           Distributor agrees to furnish to
Motorola information relating to inventory of Products and Product forecasts as
described in Section 3, and furnish detailed market analysis and reports,
orders, sales, service and sales budget information as Motorola may from time to
time request.  Distributor shall on a
monthly basis provide Motorola with “sell-through” information based on its
sales and the sales of its Dealers where applicable, and accurate monthly
reports of Distributor’s inventory of each of the Products as of the end of
each month.  The reports shall include
all inventories maintained by Distributor and its affiliates, including
inventories maintained by agents or at drop-ship distribution points.  Such “sell-through” information and reports
shall be delivered to the designated Motorola employee (as appointed by
Motorola account manager) no later than two (2) weeks after the end of each
calendar month.  Motorola reserves the
right to conduct reasonable inspections and audits of Distributor’s inventory
and inventory records.

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2.4           Distributor shall use its best
efforts to promote the sale and use of Products throughout the Territory and
satisfy market demand therefore as described further in a Regional
Amendment.  Motorola and Distributor will
meet annually to establish the annual total available market (“TAM”) for each
regional carrier.  Motorola and
Distributor will meet at least quarterly to review Distributor’s performance in
obtaining and maintaining market share and serving these accounts, as well as
an analysis and discussion of other pertinent issues.  With Motorola’s prior written permission and
subject to the conditions set forth in Section 14, Distributor shall appoint
agents, sub-agents, sub-distributors, wholesalers, retailers or dealers
(collectively “Dealers”) for the term of this Agreement as necessary and use
reasonable commercial efforts to cause such Dealers to comply with Motorola’s
rules and policies concerning trademark and trade names, ethical business
practices, and compliance with law. 
Distributor shall be liable to Motorola for the activities or omissions
of Dealers appointed by Distributor in connection with this Agreement.

2.5           Distributor shall obtain Motorola’s
Legal Department written approval for all advertising and promotional materials
produced or used by Distributor and its Dealers for the sale, display or
promotion of any Product.  Distributor
must also receive Motorola Legal Department approval for items that contain any
Motorola trademark, logo or picture of Motorola products.  Notwithstanding the foregoing, Distributor
may use Motorola’s trademark or logo in photos and descriptions of
Motorola’s products solely in connection with Distributor’s non-promotional
sale of Motorola phones with a wireless plan on Distributor’s website(s)
or in its day-to-day advertising, without Motorola’s prior written consent,
provided Distributor complies with Motorola’s Corporate Identity Standards and
Trademark Basics documents, as amended and/or updated from time to
time.  For purposes of clarification, the foregoing sentence shall
not include any use of the Motorola Marks as part of a gift with
purchase, rebate, sweepstakes, contests, premiums, coupons, or any other
promotional activities conducted by Distributor, either individually or in
conjunction with any third party, including wireless carriers,
which shall all be subject to Motorola’s prior written permission. 
Distributor acknowledges and agrees to comply with Motorola’s Corporate
Identity Standards and Trademark Basics documents, as amended and/or updated
from time to time.  Distributor agrees to properly mark Motorola’s Marks
with an ® or TM as the case may be, to provide attribution to Motorola as the
owner of such Marks, and to not otherwise misuse Motorola’s Marks. Under
either circumstance, Distributor must receive permission prior to such
advertising and promotional materials being published or released to the
public.

2.6           Distributor shall fully indemnify and
hold Motorola and its subsidiaries, affiliates, successors and assigns harmless
from and against any and all claims, losses, obligations, liabilities, costs
and expenses (including without limitation legal and other fees) arising out of
any acts, omissions, mistakes or representations made by Distributor or its
Dealers in any advertising or promotional materials which are not approved by
Motorola’s Legal Department prior to their publication or release to the
public.

2.7           Specifically, Distributor agrees and
undertakes that it shall only purchase Motorola cellular telephone products and
accessories (including the Products) for sale and distribution in the specified
Territory from the Motorola entity in that Territory, unless otherwise agreed
upon by Motorola in writing and in advance which shall not be unreasonably
withheld or delayed, directly pursuant to this Agreement or Regional Amendment
and shall not, subject to the immediately preceding exception, obtain or
procure Motorola cellular telephone products and/or accessories from any other
sources including without limitation the Distributor’s own affiliates or
subsidiaries.  Distributor agrees that
violation of this Section shall constitute just cause for immediate termination
of this Agreement by Motorola.

2.8           From time to time Motorola may, at
its sole discretion, offer training in the selling and marketing of the
Products to Distributor’s personnel at such locations as Motorola may
specify.  Distributor shall be
responsible for the expenses incurred by its personnel in connection with the
training, including but not limited to all travel costs and expenses.

2.9           Additionally, the parties contemplate
that Distributor may provide additional services which are separate and apart
from any fee structure included in the distribution model and which are
addressed in the relevant Regional Amendments and/or term sheets, to Motorola,
Motorola’s customers, or Customers which may include, without limitation,
packaging, reflashing, assembly, kitting or rework (“Activities”), the parties
agree that the terms and conditions for such Activities will be controlled by a
Professional Services Agreement and all amendments (if executed), to the extent
agreed upon between the parties  (“PSA”).  The parties agree that in the event of a
conflict between the terms of the PSA and this Agreement, the terms of the PSA
shall control as to any and all Activities.

2.10         Distributor shall maintain a technical
support organization, which in Motorola’s reasonable opinion, is sufficient to
effectively provide first tier support.

2.11         Motorola will from time to time provide
Volume Incentive Rebates (VIR) or other incentives to a select group of
regional carriers or to the Distributor.  Motorola will execute Term
Sheets with Distributor that reflect the VIR. 
If Distributor 

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elects to use Motorola’s
VIR or other form of incentives, Distributor is responsible for passing through
any credits earned by the regional carrier through the VIR.

2.12         Motorola will provide Distributor with
regional carrier test units for various network carrier technologies. 
Distributor will be responsible to program these units and distribute all test
units within five (5) business days upon receipt from Motorola.  Distributor must provide Motorola with
reports identifying who these units have been sent to within two (2) business
days of sending the units to regional carrier. 
Distributor agrees to use commercially reasonable efforts to work with
regional carriers to ensure test units are processed through approvals process
in a timely manner.  Distributor must
also provide the regional carrier approvals to Motorola within twenty-four
hours of receipt of approval or reasons for rejection.

3.  PRICES, ORDERS AND FORECASTS

3.1           Pricing of the Products shall be as
stipulated in the Term Sheet, Regional Amendment, or Motorola’s Products and
Accessories Price List current at the date of placement of purchase orders by
Distributor as stated therein.  Motorola
will provide Distributor with at least sixty (60) days prior notice of any end
or life or discontinued Product.

3.2           Distributor shall provide Motorola,
on a monthly basis a rolling twelve (12) month forecast of Distributor’s
estimated Product purchases, not less than thirty (30) days prior to the start
of the next month, to assist Motorola in maintaining an orderly production flow
for the purpose of Distributor’s delivery requirements.  Distributor shall indicate the Product model
number and projected purchase volume by units for each month of the Forecast.

The parties agree
to participate in Collaborative Planning Forecasting and Replenishment (“CPFR”),
as defined by the Voluntary Inter-Industry Commerce Standards Committee.  The parties shall develop mutually acceptable
CPFR guidelines and processes to increase efficiencies in supply chain
management, inventory management, manufacturing capacity, materials reservation,
replenishment and sales forecasting.

3.3           If Motorola procures materials to
meet Distributor’s forecasts for Customized Products, as defined below, but
Distributor does not issue corresponding purchase orders, Distributor agrees
that its liability to Motorola shall include reimbursement for expenses
including total cost of goods inventory, both on-hand inventory as well as
forecasted demand that Motorola committed to and that can not be reused in
other products in a time frame acceptable to Motorola; Distributor specific
materials and components; work in process incurred by Motorola before
termination; and reimbursement of expenses for which Motorola became legally
liable on Distributor’s behalf prior to termination.  In such circumstances Distributor shall
purchase from Motorola, at cost, all finished goods and all works in process
including that of all subcontractors to which Motorola is obligated and all raw
material inventories, provided that such goods, obligations and the safety
stock remaining were produced in accordance with the forecast.  those Products which are modified from the
original product specification document to accommodate changes requested by
Distributor; such changes may include but are not limited to hardware,
firmware, third party software, functionality, color, and materials, as set
forth or modified in any relevant Term Sheet; and, 2) include any customer
specific collateral materials including, without limitation, retail packaging,
sales literature, advertising materials, and printed technical information.

3.4           In the event that the Parties agree
to minimum volume commitments for purchases of Products by Distributor under
this agreement, such volume commitments will be specified in the Term
Sheet.  The Parties acknowledge and agree
that any accessories purchased pursuant to this Agreement will not count
towards the satisfaction of those volume commitments.  If
Distributor fails to satisfy the volume commitments for Customized Products,
Distributor agrees that its liability to Motorola shall include (i) payment for
actual work, including complete and partially complete services, performed
before termination; (ii) reimbursement for expenses including design and
development costs, any special tooling (on-hand or on-order); total cost of
goods inventory, both on-hand inventory as well as forecasted demand that
Motorola committed to; Distributor specific materials and components; and, work
in process incurred by Motorola before termination; and (iii) reimbursement of
expenses for which Motorola became legally liable on Distributor’s behalf prior
to termination.  In such circumstances
Distributor shall purchase from Motorola, at cost, all finished goods and all
works in process including that of all subcontractors to which Motorola is obligated
and all raw material inventories, provided that such goods, obligations and the
safety stock remaining were produced in accordance with this Agreement.

3.5           Distributor may enter orders with
Motorola under this Agreement provided that the terms and conditions of this
Agreement, as amended from time to time, shall solely govern the sale of the
Products to the exclusion of all other terms and conditions including any terms
or conditions which Distributor may purport to apply under any purchase order,
confirmation of order or similar document.

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3.6           Distributor shall submit orders no
less than thirty (30) days prior to the requested shipment dates.  No order is binding on Motorola until
accepted.  If Motorola does not accept
such purchase order within five days of receipt thereof, such order shall be
deemed to be rejected by Motorola. 
Unless otherwise set forth in a Regional Amendment, delivery dates are
best estimates only.  Motorola reserves
the right in its sole discretion, including without limitation for the failure
of Distributor to satisfy Motorola’s credit requirements, to accept or reject
any purchase order received from Distributor, even if a previous quotation has
been made, without any further liability and without changing or prejudicing
the relationship between Motorola and Distributor.

4.  PAYMENT AND CREDIT

4.1           Payments are due net thirty (30) days
from date of invoice, unless otherwise specified or as provided for in Section
4.5 herein.  If Distributor shall fail to
pay any invoice for the Products in accordance with the terms provided herein,
Motorola shall have the right, in its sole discretion, to cancel any
Distributor’s order(s) for the Products previously accepted, or to delay any
further shipment(s) of Products to Distributor, without incurring any liability
for loss or damage of any kind occasioned by reason of cancellation or delay.

4.2           Motorola agrees to provide
Distributor with a credit line that Motorola determines is appropriate based
upon standard credit industry criteria that determine the credit worthiness of
Distributor (“Credit Line”).  The Credit
Line represents the total available credit for the Products for all Distributor’s
divisions, affiliates, parent companies, and subsidiaries worldwide.  The Credit Line will remain available to
Distributor as long as Distributor’s financial status remains acceptable to
Motorola based upon Motorola’s review of publicly available information and
subject to compliance with the terms in any Motorola, or wholly-owned
subsidiary, financing agreements. 
Distributor agrees to comply with all terms of agreements, instruments
or other documents under which, now or hereafter, the Credit Line or any other
obligation of Distributor and/or any of its subsidiaries or affiliates to
Motorola and/or any of its subsidiaries or affiliates is created, evidenced,
guaranteed or secured, as any of the foregoing may be amended, restated,
supplemented or otherwise modified, refinanced or replaced from time to time
(collectively, the “Financing Agreements”). 
In the event of a conflict or inconsistency between the terms of this
Master Distribution Agreement and any of the Financing Agreements, the terms of
the Financing Agreements will control.

4.3           If Motorola determines that
Distributor’s orders and/or forecasts indicate
that the Credit Line will be exceeded during any given month, Motorola may, at
Motorola’s sole option, at any time to impose any credit terms, decrease,
eliminate or otherwise limit the amount or duration of credit, pursue a fee for
service model for selected accounts and/or Products, and/or payment terms
extended to Distributor in general and/or with respect to any specific order.

4.4                                 If
Motorola deems Distributor’s financial condition or credit inadequate or
unsatisfactory under standard credit industry criteria, then in addition to
Motorola’s other rights, Motorola may take any of the following actions without
incurring further liability:  (i) cancel
any previously accepted Purchase Order for Products; (ii) require Distributor
pay cash for the Purchase Order, (iii) delay any further shipment of Products
to Distributor; and/or (iv) terminate this Agreement.

5.  DELIVERY, PASSING OF TITLE AND RISK OF LOSS

5.1           All delivery dates are best estimates
only.  In no event will Motorola be
liable for increased cost, loss of profits or goodwill or any other special,
incidental or consequential damages due to late delivery or non-delivery of the
Products.

5.2           The risk of loss of or damage and
title to the Products shall pass to Distributor from Motorola at the point of
delivery specified by the shipping term, defined by Incoterms 2000.  Unless otherwise specified, the shipping term
for orders hereunder is FOB, Motorola’s distribution facility (Incoterms 2000).

6.  WARRANTY

6.1           Distributor shall provide to its customers
at its sole expense a warranty for all the Products which shall meet all
applicable warranty requirements under the laws and competitive conditions of
the Territory, which warranty shall not be less than one (1) year, except for
batteries, which warranty shall be not less than the warranty extended to
Distributor by Motorola as provided in Exhibit B, as may be updated from time
to time.  Motorola warrants the Products
only in accordance with its warranty set forth in Exhibit B,
as may be amended by Motorola from time to time (to be applicable to units
shipped by Motorola on or after the effective date of such revision).  Motorola makes no
additional representations or warranties of any other kind, express or
implied.  Except as otherwise provided in
Exhibit B and subject to any applicable laws, Motorola expressly disclaims any
implied warranty of merchantability or fitness for a particular purpose.

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6.2           Motorola expressly disclaims
responsibility and liability for any service provider’s range, coverage,
design, grade of service, audio quality, equipment compatibility, system
downtime or billing practices.  The
warranties in Exhibit B are the full extent of
Motorola’s liability and the Distributor’s exclusive remedy.  In addition, Distributor shall provide to it
customers warranty support and service for the Products to Motorola’s
reasonable satisfaction.

6.3           DOA Returns.  This paragraph shall define the criteria and
process for the return and acceptance of Dead on Arrival (“DOA”) Products.  Returns not meeting the below criteria, after
Motorola inspection and testing, will be removed from the credit line of the
applicable Motorola Return Material Authorization (“RMA”), returned to
Distributor in the originally received condition and packaging at Distributor’s
cost.  Futhermore, such units not meeting
all of these requirements will be handled under Motorola’s normal warranty
policy.  The following conditions are
required:

a.  There is a valid sales contract or other
sales agreement for the purchase of Products currently in effect between
Motorola and Distributor.

b.  The Product is a Motorola new Product sold to
Distributor in the Territory.

c.  The returned Product(s) are in the original
packaging with all required contents and accessories.  Motorola may charge a per unit service fee
for missing or incorrect package contents and accessories.

d.  An end-user proof of purchase or initial
activation date is included with each Product, indicating a sale and return
within thirty (30) days of purchase by end-user.

e.  If a product is an out of box failure
(defined as defective to the point that it cannot be initially sold to an
end-user) and where a proof of purchase and initial activate date do not exist,
the manufacturer’s serial number must not exceed one-hundred twenty (120) days
prior to the date of return; any talk time must be less than ten (10) minutes.

f.  After test, a functional failure exists where
the Product does not meet the requirements of Motorola’s limited end-user
warranty.

g.  A Motorola supplied RMA number must be
visible on the box or pallet and accompany all DOA claims.  Product arriving without an RMA number, or
associated line item, will be returned to Distributor or its third party
service provider, at Distributor’s expense. 
Distributor agrees to ensure that all Products will be shipped, either
by Distributor or its third party service provider, within thirty (30) days of
receipt of the RMA.

h.  Units that show sign of customer misuse,
previous repair, or history of refurbished products will not be accepted as DOA
and will be returned to Distributor or its third party service provider at
Distributor’s expense.

i.  A system generated test printout of the
nature of the failure status and a document specifying the customer complaint
should accompany all DOA returns.

j.  Prior to shipping any Products to Motorola or
its ASC for DOA claims, Distributor is fully responsible, at its own expense,
for Prescreening Products, or ensuring that Products are Prescreened by a third
party, utilizing Motorola authorized equipment and procedures, for defects or
damage to ensure that only Products that are actually defective under the terms
of Motorola’s Limited Warranty are received by Motorola under this DOA
process.  The purpose of the Prescreening
is to eliminate claims that are outside the Limited Warranty including, but not
limited to, units that test as no trouble found (“NTF”), could not duplicate,
buyer’s remorse, or customer abuse. 
Motorola may charge the customer a service processing fee for each NTF received.

6.4           For those Products meeting all of the
above requirements, Motorola, in its sole option, will either repair or replace
the DOA Product(s) or issue a credit memo to Distributor in the amount of the
Net Price, which if not set forth on the Term Sheet shall be defined as the
Invoice Price, as set forth in the Term Sheet or on the invoice, less any
credits, of all returned Products.

7.  FORCE MAJEURE

7.1           Motorola will not be liable to
Distributor or any third party for any delay or failure to perform due to any
cause beyond its reasonable control. 
Such causes include but are not limited to, compliance with any laws,
regulations or orders, acts or omissions of Distributor, strikes, acts of God,
interruptions or transportation or inability to obtain necessary labor,
materials or facilities, or default of any supplier.  The delivery schedule will be considered
extended by a period of time equal to the time lost because of any excusable
delay.  Either party wishing to claim
relief under this Section shall, without delay, notify the other party in
writing accordingly.  In the event
Distributor is unable to perform due to a Force Majeure event for a cumulative
total of fourteen days during any thirty (30) day period, Motorola may
terminate this Agreement immediately upon written notice to Distributor.

7.2           In the event Motorola is unable to
wholly or partially perform for a period greater than two (2) months due to any
cause beyond its reasonable control, either party may cancel any delayed order
without liability.

 

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8.  PARTY RELATIONSHIP

8.1           Distributor is an independent
contractor to Motorola.  This Agreement
does not create any agency, joint venture or partnership between Distributor
and Motorola.  Distributor shall not
impose or create any obligation or liability of any kind, express or implied,
or make any promises, representations or warranties on behalf of or in the name
of Motorola, other than as expressly provided herein.  Any and all expenses, liabilities, resources
expenditures and costs incurred by either party in furtherance of this
Agreement or any Regional Amendment shall be at that parties’ sole risk and
responsibility without recourse to the other party and shall not be set off
against any other claims or monies due hereunder.

9.  INTELLECTUAL PROPERTY RIGHTS

9.1           Distributor acknowledges that the
word “Motorola” is the dominant feature of the trade names of Motorola and its
subsidiaries and affiliated companies which use “Motorola” in such names, and
that the marks “Motorola”, the stylized “M” within a circle, and derivatives
thereof or any other mark used on the Products are important and valuable
trademarks/copyrights owned by Motorola (collectively referred to as “the
Intellectual Property Rights”) and used for products manufactured or sold by
Motorola and for services provided by Motorola in connection with such
products.

9.2           Any use of Motorola’s trade names,
trademarks or service marks whether in their entirely or in part, shall be for
the benefit of Motorola only. 
Distributor agrees that it will not in any manner use the Motorola trade
names, trademarks or service marks, or any imitation or variant thereof as a
part of Distributor’s trade name or company or firm name, nor will it grant or
purport to grant such use to any subsidiary or affiliate of Distributor or to
any agent or representative of Distributor.

9.3           Distributor shall not remove, alter
or obliterate any trademark appearing on the Products, and Distributor shall
not have the right to use any Motorola originated trademark on any product, or
in any advertising or sales promotion except as such use or the manner of such
use is authorized by this Agreement or separately authorized by Motorola in
writing and approved by Motorola’s Legal Department.  Distributor shall not publish, cause to be
published, encourage or approve any advertising or practice which might mislead
or deceive the public or might be detrimental to the good name, trademark,
trade name, service mark, goodwill or reputation of Motorola or Motorola’s
products.  Distributor shall, upon
notification by Motorola, immediately discontinue any advertising, practice or
use deemed by Motorola to have such misleading, deceptive or detrimental
effect.  To the extent Motorola grants
permission to Distributor  to use the
Motorola trademark, Distributor agrees that any advertising will comply with
Motorola’s Trademark Usage Guidelines, attached hereto as Exhibit D.

9.4           Without prior written consent of
Motorola, Distributor shall not have the right to institute proceedings for
infringement of any trademark which it is permitted to use under this
Agreement, or to institute proceedings against a competitor for unfair
competition or improper use of trademarks, or to incur any cost or obligations
on behalf of Motorola.

9.5           Distributor shall not during this
Agreement or thereafter use any Motorola trademark, trade name or service mark
or any word likely to be confused with any such trademark, trade name or
service mark, either alone or in combination with other words.  In the event that Distributor should acquire
any right in any other trademark, trade name or service mark which Motorola
owns or which originated with Motorola, it shall on request by Motorola
immediately assign such rights including the goodwill associated therewith to
Motorola and Distributor shall forthwith sign all documents necessary for such
assignment unless Distributor has acquired such rights lawfully from Motorola
with good consideration.

9.6           [*], provided that (i) Distributor
promptly notifies Motorola in writing of the claim, (ii) that Distributor
retains no counsel regarding such claim without the prior written consent of
Motorola, (iii) that Motorola has sole control of the instructing of counsel
retained by Motorola or Distributor (with the consent of Motorola) and sole
control of the defense and all related settlement negotiations, and (iv) that
Distributor gives Motorola information and reasonable assistance related to the
defense of the claim.  Motorola’s
obligation under this Section is conditioned on Distributor’s agreement that if
the Products become, or in Motorola’s opinion are likely to become, the subject
of such a claim, [*]

Brackets ([*]) indicate
portions of this document have been deleted and separately filed with the
Securities and Exchange Commission.

 7
 

 

9.6 (a) SUBJECT TO ITS INDMNIFICATION OBLIGATIONS
HEREIN, IN NO EVENT WILL MOTOROLA BE LIABLE FOR INCIDENTAL, SPECIAL OR
CONSEQUENTIAL DAMAGES ARISING FROM INFRINGEMENT OR ALLEGED INFRINGEMENT OF
PATENTS OR OTHER INTELLECTUAL PROPERTY RIGHTS.

9.6 (b)     This indemnity does
not extend to any suit based upon any infringement or alleged infringement
arising from Products furnished by Motorola that are: (1) altered in any way by
Distributor or any third party if the alleged infringement would not have
occurred but for such alteration; (2) combined with any other products or
elements not furnished by Motorola if the alleged infringement would not have
occurred but for such combination; or (3) designed and/or manufactured in
accordance with Distributor’s designs, specifications, or instructions if the
alleged infringement would not have occurred but for such designs,
specifications, or instructions.  In no
event shall Motorola’s liability resulting from its indemnity obligation to
Distributor extend in any way to royalties payable based on a per use basis, or
subscriber revenues derived by Distributor therefrom, or any royalty basis
other than a reasonable royalty based upon revenue derived by Motorola from
Distributor from sales or license of the infringing Product.

9.6 (c)     The indemnity provided
in this Section 9.6 is the sole, exclusive, and entire liability of Motorola
and the remedies provided in this section shall be Distributor’s exclusive
remedies against Motorola for patent, copyright infringement or trade secret
misappropriation, whether direct or contributory, and is provided in lieu of
all warranties, express, implied or statutory in regard thereto, including,
without limitation, the warranty against infringement specified in the Uniform
Commercial Code.  Distributor agrees that
violation of any provision of this Section shall constitute just cause for
immediate termination of this Agreement by Motorola.

9.7           Laws in the United States and other
countries including the Territory preserve for Motorola certain exclusive
rights in Motorola software, firmware or other computer programs or data
residing in the Products (hereinafter referred to collectively as “Software”),
including without limitation the exclusive right to prepare works derived from
same, reproduce same in copies and distribute copies of same.  The Software is proprietary in nature to
Motorola and its subsidiaries and affiliated companies, whether or not so
marked.  Distributor may be made liable
for any loss or damage suffered by Motorola or its subsidiaries and affiliated
companies from any unauthorized disclosure or application of such proprietary
data.  Distributor shall not prepare
works derived from, reproduce in copies or distribute copies of the
Software.  The Software may be used in
and redistributed with only the item or items of the products associated with
same.  No other use, including without
limitation reproduction, modification, or disassembly of such Software or
exercise or exclusive rights in same is permitted.  Distributor shall not, whether directly or
indirectly, either by itself or through any other person decompile,
disassemble, reverse engineer or re-engineer the Software.  Distributor shall not enhance or alter or
improve the Software without written consent of Motorola.  All legal, moral, intellectual property
rights in the Software including the improvement and alteration, if any, made
after prior written consent of Motorola shall belong to Motorola.  ALL RIGHTS ARE RESERVED TO THE SOFTWARE.

9.8           Except for the right to use the
Software and Products for the purposes provided herein which arises by
operation of law and except as expressly provided herein, nothing contained in
this Agreement shall be deemed to grant to Distributor either directly or by
implication, estoppels, or otherwise, any license or right under any patents,
copyrights, trademarks or trade secrets of Motorola.

9.9           Any alternative packaging design
proposed by Distributor for the Products shall in all instances be subject to
Motorola’s Legal Department prior written approval before usage and to Motorola’s
terms and conditions as to such usage.

9.10         Distributor shall not store, market,
offer for sale or otherwise commercially exploit any products or accessories
specifically for Motorola cellular telephones unless they are supplied to the
Distributor by Motorola or a subsidiary thereof.  Furthermore, Distributor shall not purchase
any products or accessories that it knowingly infringes Motorola’s patents or
other Intellectual Property Rights.  This
Agreement shall be immediately terminated by Motorola in the event that
Distributor is found to be purchasing and/or distributing such counterfeit
products and/or accessories.

9.11         Distributor’s rights to use any
Motorola trademark, trade name or service mark under this Section shall
terminate upon termination or expiration of this Agreement and shall ensure
such cessation of use by all persons claiming to have received the right to
such use from Distributor.  If
Distributor shall refuse or neglect to keep and perform the provision of this
Section, Distributor shall reimburse Motorola for all costs, attorney’s fees
(on a solicitor and client basis) and other expenses incurred by Motorola in
connection with legal actions required to have Distributor comply herewith.

10. TERM AND TERMINATION

10.1         The term of this Agreement shall be for
a period of one (1) year from the Effective Date, unless terminated as
permitted herein.  This Agreement shall
be automatically renewed for successive periods of one (1) year per renewal.  The 

 8
 

 

number of renewals
notwithstanding, this Agreement is and shall always be interpreted as a fixed
term agreement and not as an indefinite term agreement.  Any Regional Amendment implemented during the
Term shall automatically expire upon the expiration of the Master Agreement.

10.2         In the event that either party is in
breach of any of the terms or conditions of this Agreement and such breach
continues for a period of thirty (30) days after the non-breaching party has
given the breaching party written notice of such breach, then subject to the
other terms and conditions of this Agreement, the non-breaching party, in
addition to other rights and remedies it may have in law or equity, will have
the right to immediately terminate this Agreement without any liability
whatsoever.  Additionally, this Agreement
may also be terminated at any time: 1) by either party immediately by written
notice to the other if the other party enters into any insolvency proceedings
whether voluntarily or involuntarily, including composition, liquidation or
arrangement, and the equivalent thereof; or 2) by Motorola immediately upon
written notice to Distributor if Distributor fails to provide the financial
information requested in connection with Motorola’s establishment and review of
Distributor’s Credit Line within ten (10) days following Motorola’s notice of
such failure; or 3) by Motorola immediately upon written notice to Distributor
if Distributor’s financial reports as provided for in Section 4.3 and/or other
publicly available information indicate, as determined by Motorola in its sole
discretion, that a material adverse effect upon Distributor’s ability to
fulfill its obligations (including payment) to Motorola, or Distributor’s
obligations to its customers, has occurred or may occur; or 4) by Motorola upon
the occurrence of a breach of any term in one or more of the following
Sections: Appointment As Distributor, Prohibition Against Transshipment,
Intellectual Property Rights, Government Sales, Ethical Business Practices
Policy, Compliance With Law, or Confidentiality; or a change in the control or
management of Distributor which is unacceptable to Motorola; or Distributor’s
failure to make a payment when due.

10.3         Notwithstanding the above, this
Agreement may be terminated at any time by either party without cause upon not
less than sixty (60) days prior written notice to the other party.

10.4         Upon expiration of this Agreement in
accordance with its terms, Distributor shall have the right to cancel any order
yet to be acknowledged by Motorola but shall honor any order already acknowledged
by Motorola.  However, upon Distributor’s
breach and/or termination by Motorola of this Agreement for any reason, (i)
Motorola shall be relieved of any obligations to make any further shipments
hereunder, and may cancel all of Distributor’s unshipped orders for the
Products, (ii) Motorola shall have no obligation or liability to Distributor or
its prospective customers in connection with any such cancellations; (iii)
outstanding invoices for the Products shall become immediately payable by
Distributor and invoices for Products ordered prior to termination but for
which an invoice has not been submitted shall be payable immediately upon
submission of the invoice; (iv) Distributor shall have no claim against
Motorola for compensation for loss of distribution rights, loss of goodwill or
any similar loss; and (v) subject to the accrued rights of either party in
respect of any breaches of this Agreement, neither party shall have any further
obligation to the other under this Agreement.

10.5         Neither Motorola nor Distributor shall
be liable by reason of termination, expiration or non-renewal of this Master
Agreement to the other for compensation, reimbursement or damages on account of
the loss of prospective profits on anticipated sales or on account of expenditures,
investments, leases or commitments in connection with the business, or good
will of Motorola or Distributor or otherwise. 
Distributor represents to Motorola that, as of the date of this Master
Agreement, Distributor had on hand a trained staff of personnel, facilities,
and equipment necessary to effectively distribute the Products in the Territory
and that Distributor has incurred no extra expense in respect of the same upon
entering into this Master Agreement for which Distributor will seek reimbursement.

10.6         The terms, provisions, representations,
and warranties contained in this Agreement that by their sense and context are
intended to survive the performance thereof by either or both parties hereunder
shall so survive the completion of performances and termination of this
Agreement, including Sections 9 and 17 and the making of any and all payments
due hereunder.

11. OPTION TO REPURCHASE

11.1         Upon the termination of this Agreement,
Distributor shall have the right to sell through any remaining Product
inventory then in its warehouse facilities or subject to a non-cancelable
purchase order; provided however, that such termination is not by Motorola in
accordance with Section 10.2 (4) above, in which case, all sales of Product
must immediately cease except as otherwise agreed upon in writing by the
parties.  Such Product sell through shall
comply with the terms and conditions set forth herein, as may be amended from
time to time.  Motorola shall have the
option but not the obligation to repurchase all or any part of the remaining
inventory of the Products then held by the Distributor, at the net price paid
to Motorola for such inventory or Motorola’s price for such Products to its
authorized Distributors or such Products at the time of such repurchase,
whichever is lower, provided that Motorola shall be responsible for arranging
and for the cost of, transport and insurance. 
Distributor shall deliver the same to such place(s) as Motorola shall
designate, free and clear of any liens or encumbrances thereon, undamaged and
in the original and unopened packaging therefore.  Motorola shall pay Distributor for 

 9
 

 

the Products repurchased,
within thirty (30) days after receipt of repurchased Products by Motorola.  The repurchase option shall be exercisable upon
written notice to Distributor mailed within ninety (90) days following the
mailing of a notice of termination of this Agreement by Motorola or
Distributor.

11.2         In any event, even if Motorola does not
exercise its option to repurchase herein, prior to selling the Products in its
possession in bulk to any third party, Distributor shall first have offered in
writing to sell such Products to Motorola for the lower of Distributor’s net
purchase price or the price offered by such third party and Motorola shall have
refused to accept such offer within ten (10) days after receipt of such written
offer.  Distributor shall not transship,
sell, or otherwise transfer Products subject to this Section 11 outside the
Territory to any third party.

12. TAXES AND FEES

12.1         Distributor shall pay all applicable
fees, custom duties, assessments or taxes which may be assessed or levied by
the government of the Territory and any departments and subdivisions thereof,
as a result of the performance of this Agreement or against any of the Products
ordered by the Distributor.

13. LIMITATION OF LIABILITY,
REMEDIES AND INDEMNITY

13.1         Failure of either party at any time to
require performance of any provision hereof shall not affect its right to
require full performance thereof at any time thereafter.  The waiver by either party of a breach of any
such provisions shall not constitute a waiver of any subsequent breach thereof
or nullify the effect of such provisions.

13.2         In the event that Distributor is in
default with respect to any of the terms and conditions of this Agreement,
Motorola may, without incurring liability to Distributor or Distributor’s
customers, and without prejudice to any other rights or remedies Motorola may
have in law or equity, defer further shipments of the Products to Distributor
(whether or not Motorola has accepted orders from Distributor with respect to
unshipped Products) until such default is remedied.  The exercise by Motorola of its rights
hereunder shall not constitute an election of remedies or a waiver of any other
right or remedy.

13.3         Distributor shall pay interest on all
amounts due to Motorola which are in default at the rate of four percent (4%)
above the prime lending rate of Motorola’s principal bankers.  Motorola may apply any outstanding amount due
to Distributor against indebtedness by Distributor to Motorola, whether due or
to become due.

13.4         Distributor shall fully indemnify,
defend and save Motorola and its subsidiaries, affiliates, successors, assigns,
and its officers, directors, shareholders, employees and agents, harmless from
and against any and all claims, proceedings, losses, obligations, liabilities,
costs and expenses (including without limitation legal and other fees) arising
from acts or omissions of Distributor or its agents, including without
limitation any such claims, losses, obligations, liabilities, costs and
expenses arising out of any breach of or failure to perform any of Distributor’s
representations, warranties, covenants and agreements herein.

13.5         Distributor agrees to indemnify, defend
and save Motorola and its subsidiaries, affiliates, successors, assigns, and
its officers, directors, shareholders, employees and agents, harmless from and
against all claims, proceedings, losses, penalties, damages or actions, and all
expenses incidental to any investigation, negotiation or defense thereof, based
upon, arising out of, or in connection with: (i) damage or injury (including
death) to persons or property caused by or sustained in connection with the
performance of services hereunder or by conditions created hereby, except for
damage or injury resulting solely and directly from Motorola’s negligence or
willful misconduct; (ii) Distributor’s refusal or failure to comply with any of
the requirements, provisions, terms or conditions of this Agreement; (iii) any
material misrepresentation or omission made by Distributor in connection with
the G9 Form A (Third Party Sales Representative Application); (iv) any
representation or warranty hereunder, or other written or oral statements made
to Motorola in connection with this Agreement or the application process; or
(v) any breach of any of Distributor’s warranties or covenants provided in this
Agreement.  Notwithstanding the
foregoing, Distributor shall not be liable to Motorola or any third party
acting by or through Motorola for any consequential, incidental, special, or
punitive damages, whether or not foreseeable and regardless of Distributor’s
knowledge of the potential existence of any such damages.

13.6         [*]; provided that Motorola is notified
promptly in writing of any such claims and, at Motorola’s request and expense,
is given control of and all requested reasonable assistance for the defense of
any such claims.  This indemnity does not
extend to any damages, claims, liabilities, or expenses attributable to the combination
of any Products furnished by Motorola with other elements added thereto by
Distributor or third parties or to any unauthorized modification carried out on
the Products nor does it extend to any damages, claims, liabilities, or
expenses arising 

Brackets ([*]) indicate
portions of this document have been deleted and separately filed with the
Securities and Exchange Commission.

 10
 

 

from Motorola’s
compliance with Distributor-furnished specifications, designs, or instructions
or Motorola’s use of Distributor-furnished components.  Motorola shall not be responsible for any
settlement made without its written consent.

13.7         Except with respect to Motorola’s
indemnification obligations herein, Motorola’s total liability arising out of
or related to this Agreement, whether for breach of contract, warranty,
Motorola’s negligence, strict liability in tort or otherwise, is limited to the
price of the particular Product(s) sold hereunder with respect to which losses
or damages are claimed.  Distributor’s
sole remedy is to request Motorola, at Motorola’s option, to either refund the
purchase price or repair or replace the Product(s) or software that is not as
warranted.  IN NO EVENT
WHETHER FOR BREACH OF WARRANTY, BREACH OF CONTRACT, NEGLIGENCE OR OTHERWISE
SHALL MOTOROLA BE LIABLE FOR SPECIAL INCIDENTAL OR CONSEQUENTIAL DAMAGES,
INCLUDING BUT NOT LIMITED TO LOSS OF PROFITS OR REVENUES, COST OF CAPITAL, COST
OF SUBSTITUTE PRODUCTS, FACILITIES OR SERVICES, DOWNTIME COSTS OR CLAIMS OF
CUSTOMERS OR DISTRIBUTOR FOR SUCH DAMAGES, TO THE FULL EXTENT SUCH MAY BE
DISCLAIMED BY LAW.

14. BUSINESS POLICY AND
COMPLIANCE WITH LAW

14.1         Motorola has historically depended on
product quality and superiority combined with outstanding support capability to
sell its products in all parts of the world. 
Motorola believes it can continue to grow and to prosper without
succumbing to legally questionable or unethical demands.  Motorola will not do business with any
distributor, agent, customer or any other person where they know or suspect the
existence of questionable practices.

14.2         Distributor certifies that information
provided to Motorola for the G9 Third Party Sales Representative Application
review was complete and accurate. 
Distributor will inform Motorola in writing of any material changes to
the original information supplied and as such Motorola shall have the right to
review appointment of Distributor in such event.  Distributor further agrees that a material
omission or misrepresentation of such information shall constitute just cause
for the immediate termination of this Agreement without any liability
whatsoever of Motorola to Distributor. 
Additionally, Distributor agrees to immediately inform Motorola of any
material change of its ownership or principals. 
Distributor agrees from time to time as requested by Motorola to furnish
additional information to renew and/or update G9 Application review.

14.3         Distributor hereby acknowledges that it
has been provided a copy of Motorola’s Code of Business Conduct and Distributor
hereby certifies that it will comply with the provisions thereof.  Distributor agrees to cooperate fully in any
investigation of Distributor, or appointed Dealer(s) activities by any legal or
regulatory body.  Distributor further
agrees that in the event of a violation of law and/or violation of the provisions
of Motorola’s Code of Business Conduct shall constitute just cause for the
immediate termination of this Agreement without any liability whatsoever of
Motorola to Distributor.

14.4         Prior to appointment of Dealer(s) by
Distributor, Distributor agrees to obtain and provide background information to
Motorola for G9 Application reviews for potential Dealer(s) and shall not
appoint or utilize said Dealer(s) without prior written authorization from
Motorola.  Distributor will inform
Motorola in writing of any material changes to the original information
supplied and as such Motorola shall have the right to review appointment of
Dealer(s) in such event.  Distributor
further agrees that a material omission or misrepresentation of such
information shall constitute just cause for the immediate termination of this
Agreement without any liability whatsoever of Motorola to Distributor.  Additionally, Distributor agrees to
immediately inform Motorola of any material change of the ownership or
principals of said Dealer(s). 
Distributor agrees from time to time as requested by Motorola to furnish
additional information on Dealer(s) to renew and/or update G9 Application
review.

14.5         Distributor shall at all times conduct
its efforts hereunder in strict accordance with all applicable laws and
regulations and with the highest commercial standards.  Distributor shall effect or secure and
maintain at its own cost all necessary governmental permits, licenses,
approvals and registrations required in connection with the execution or
performance of this Agreement and any Regional Amendment and the importation
and resale of the Products.  Distributor
shall indemnify and hold Motorola harmless for any losses, damages or other
liabilities resulting from Distributor’s failure to comply with the provisions
of this Section 14.5.

14.6         Distributor shall not engage in any
practice or activity with respect to any of the services and assistance
rendered by Distributor under this Agreement which is prohibited or in
violation of any applicable federal, state or local law in the United States or
in the Territory, or which in the opinion of legal counsel to Motorola is
illegal or in violation of any applicable federal, state, or local law in the
United States or the Territory.

14.7         Distributor, including its officers,
directors, employees and agents, shall use only legitimate and ethical business
practices in the activities contemplated by this Agreement.  Distributor
shall comply fully with all laws applying to the sale and distribution of the
Products, including the United States Foreign Corrupt Practices Act, local
anti-corruption laws and laws 

 11
 

 

prohibiting the payment
of commercial or private bribes.  In connection with this Agreement,
neither the Distributor nor any of its officers, directors, employees or agents
shall pay, offer, promise, or authorize the payment, directly or indirectly, of
any monies or anything of value to any person, including but not limited to any
government official or employee, any political party or candidate for political
office, or any employee or official of a public international organization, for
the purpose of inducing or rewarding any favorable action or obtaining any
improper advantage in any commercial transaction or in any governmental matter.  Distributor further agrees to comply with all
United States laws and regulations regarding export licenses or the control or
regulation of exportation or re-exportation of products or technical data sold
or supplied to Distributor.  Both Motorola and Distributor further agree
to take the required steps necessary to satisfy any laws or requirements to
declare, file, record or otherwise render this Agreement valid.  Distributor commits that neither its owners,
officers, nor employees are agents, employees, officers, or representatives of
any government or any agency or other instrumentality of any government.  Distributor further agrees to inform Motorola
of any change in such status or representation.

14.8      In addition, Distributor shall provide
Motorola details, to Motorola’s reasonable satisfaction, on the following
initiatives to ensure compliance with this Section:

(i)                                     The
implementation of a code of business conduct designed to govern Distributor’s
global business activities.

(ii)                                  Implementation
of a robust ethics and compliance program to ensure business practices across
Distributor’s regions comply with legal requirements and anti-corruption
regulations.

(iii)                               Assignment
of a senior Ethics Officer responsible for the ethics and compliance program,
adherence to the Distributor code of business conduct, and
investigating/resolving ethical or compliance issues.

(iv)                              Comprehensive
ethics and compliance training programs for key teams (sales, marketing
finance, sourcing, etc.) on a regular basis, including training on Motorola’s
G-9 policy.

14.9         Distributor agrees with the policy as
stated in this Section, and further agrees that failure by Distributor or any
persons under its responsibility including but not limited to its directors,
officers, employees and agents to comply with any provision of this Section
shall constitute just cause for immediate termination of this Agreement and
thereupon Distributor shall have no claims whatsoever against Motorola.

15.  SALES TO THE UNITED STATES OR OTHER
GOVERNMENTS

15.1         In the event that Distributor elects to
sell the Products to any federal, state, provincial or local government, or
non-government entity (including but not limited to a non-governmental entity
that receives funding from the government) in a territory, including any state,
county or municipal entity in the Unites States, or to a prime contractor or
other subcontractor selling to such entities, Distributor does so solely at its
own risk and option.  Except as Motorola
expressly accepts specific terms in writing, Distributor remains exclusively
responsible for compliance with all procurement laws, regulations or guidelines
governing such sales and agrees not to obligate Motorola as a subcontractor or
otherwise to such entities.  Further,
Motorola makes no representations, certifications or warranties whatsoever with
respect to the ability of its Products, services, or prices to satisfy any such
statues, regulations, or guidelines.

16.  EXPORT CONTROLS

16.1         If, at any time or times of Motorola’s
performance hereunder, a license is required for Motorola or its affiliated
company/ies to lawfully export the Products or associated technical data, then
the issuance of the appropriate licenses to Motorola or its affiliated
companies shall constitute a condition precedent to Motorola’s obligations
hereunder.

16.2         Distributor agrees to comply with all
applicable export laws, regulations and orders. 
Specifically, but without limitation, Distributor agrees that it will
not transship, resell, re-export or ship, directly or indirectly, any Products
or technical data in any form without first obtaining Motorola’s prior written
consent and the appropriate export or re-export licenses from the government of
the Territory and/or the United States government.  Distributor agrees that violation of any
provision of this Section shall constitute just cause for immediate termination
of this Agreement by Motorola.

17.  CONFIDENTIAL INFORMATION

17.1         Distributor shall at all times during
the continuance of this Agreement and after its termination or expiration, keep
all information disclosed to Distributor by Motorola pursuant to or in
connection with this Agreement or any Regional Amendment, including the
existence thereof, confidential (whether orally, in writing or in some other
tangible form, and whether or not such information is expressly stated to be
confidential or marked as such) including without limitation, the terms of this
Agreement or any Regional Amendment, all prices quoted by Motorola in the Term
Sheets and the various 

 12
 

 

catalogues and quotations
conveyed to Distributor during the course of business, proprietary market
research and commercial terms and conditions. 
Distributor shall not be obligated to keep confidential any information
received hereunder, which is or becomes publicly known without breach of this
Agreement by Distributor.

17.2         Neither party shall forward or disclose
any information contained in relation to this Agreement or Regional Amendment
to any unauthorized third party without the prior written consent of the other
party.  Each party’s obligations under
this Section shall survive the termination of this Agreement.  All confidential information (and all copies
thereof, authorized or unauthorized) shall be returned to each party
immediately upon termination of this Agreement, or Regional Amendment as to the
information specific to it or the business activities under that Regional
Amendment.  Distributor agrees that
violation of any provision of this Section shall constitute just cause for
immediate termination of this Agreement by Motorola.

18.  GOVERNING LAW AND ALTERNATIVE DISPUTE
RESOLUTION

18.1         The governing law of this Agreement
shall be the substantive law of Illinois, USA.

18.2         The parties agree that any claims or
disputes under this Agreement will be submitted to non-binding mediation prior
to initiation of any formal legal process in a mutually-agreeable location
pursuant to the rules of the American Arbitration Association.  Costs of mediation will be shared equally.  If a mediated resolution cannot be reached,
the parties agree to resolve the dispute in accordance with the laws of the
State of Illinois and any court actions shall be filed in a state or federal
court of competent jurisdiction in the State of Illinois.  Distributor hereby consents to exclusive
jurisdiction by such courts.  Distributor
waives personal service of any process upon it and consents that all service of
process shall be made by registered mail to it at the address set forth in the
introductory paragraph of this Master Agreement.  Nothing in this Section 18 will prevent
either party from resorting to judicial proceedings, if:  (a) good faith efforts to resolve the dispute
have been unsuccessful, (b) the claim or suit involves intellectual property
rights, or (c) interim relief from a court is necessary to prevent serious and
irreparable injury to that party or to others.

19.  JOINT AND SEVERAL LIABILITY

Distributor and
any regional subsidiary or entity of Distributor, shall be jointly and
severally liable for all obligations, (past, present, and future), of the
Distributor to Motorola and its affiliates arising under this Master Agreement,
or any other Agreement which Distributor may enter into with Motorola or its
affiliates.

20.  NOTICES

Any notices to be
given under this Agreement must be in writing, may be given by personal
delivery or sent either by first class prepaid post or facsimile (with
confirmed answerback) addressed to the appropriate party (as appointed by
Motorola account manager) at the address stated on the first page of this Agreement
(or to a new address or facsimile number provided by written notice to the
other party).  Any notice sent by first
class prepaid post shall be deemed to be given at the time when in due course
of post it would be expected to be delivered to the address to which it is
sent.

21.  GENERAL

21.1         Distributor is aware that Motorola has
a license from Qualcomm, Inc. (“Qualcomm”) to integrate Binary Runtime
Environment for Wireless (“BREW”) technology into certain Motorola CDMA
wireless devices being offered to various CDMA wireless carriers in the United
States.  Distributor wishes to purchase
such BREW devices for resale to various CDMA wireless carriers in the United
States.  Accordingly, the parties agree
to the terms contained in Exhibit C, attached hereto and incorporated herein,
as it relates to BREW devices.

21.2         This Agreement and the Exhibits
attached herein constitute the entire and final expression of agreement between
the parties pertaining to the subject matter hereof and supersedes all other
communications between the parties.

21.3         Except for unilateral changes by
Motorola in the various Exhibits attached hereto as specifically permitted
herein, any amendment of this Agreement or Regional Amendment must be in
writing and signed by an authorized representative of each party.  Motorola shall be entitled at it sole
discretion to modify the design or specifications of any Products or parts
thereof as it may think fit, without any liability or obligation to Distributor
or its customers.  Any verbal agreement,
or modification via email or other informal electronic method, purportedly
modifying the terms herein or any Regional Amendment shall have no force or
effect.

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21.4         If any term or provision of this
Agreement is to any extent held by a court or other tribunal to be invalid,
void or unenforceable, insofar as it is in conflict with law, the remaining
rights and obligations of the parties will be construed and enforced as if this
Agreement did not contain the particular term or provision held to be invalid,
void or unenforceable.

21.5         Distributor shall notify Motorola in
writing forthwith in the event of change in the name, control, management or
ownership of Distributor.  In addition,
neither this Agreement nor Regional Amendment nor any of the rights or obligations
of Distributor hereunder nor thereunder shall be assigned or transferred by
Distributor, in whole or in part by operation of law or otherwise; nor shall
this Agreement nor Regional Amendment or any rights of Distributor inure to the
benefit of any trustee in bankruptcy, receiver, creditor, trustee or successor
of Distributor’s business or of its property, whether by operation of law or
otherwise, or to a purchaser of the business or of any of the assets of
Distributor, without the prior written consent of Motorola.  Motorola reserves the right to terminate this
Agreement or Regional Amendment if this Agreement, Regional Amendment, or the
interest of Distributor hereunder is sold, assigned or transferred, in whole or
in part, without the prior written consent of Motorola or if Distributor has a
substantial change in ownership.

21.6         Motorola reserves the right to advise
Distributor from time to time which Motorola subsidiary to place orders for the
Products with and which Motorola subsidiary to make payments to for such orders
provided always that the terms and conditions of this Agreement, as amended
from time, shall solely govern the sale of such Products to the exclusion of
all other terms and conditions including but not limited to any terms or conditions
which Distributor may purport to apply under any order, purchase order,
confirmation of order or other similar document generally.

21.7         Motorola may apply any outstanding
amount due to Distributor against indebtedness by Distributor to Motorola, whether
due or to become due.

IN WITNESS WHEREOF,
the Parties have signed this Agreement on the date first written above by their
duly authorized representatives.

	
  MOTOROLA, INC.

  	
   

  	
  CELLSTAR, LTD.

  	
   

  
	
  

  	
   

  	
  By:

  	
  National Auto Center, Inc.

  	
   

  
	
   

  	
   

  	
   

  	
        its General Partner

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

	
  /s/  Richard Gadd

  	
   

  	
  /s/ Robert Kaiser

  	
   

  
	
  Signature

  	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Richard Gadd

  	
   

  	
  Robert Kaiser

  	
   

  
	
  Name

  	
   

  	
  Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  VP, Sales

  	
   

  	
  CEO

  	
   

  
	
  Title

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  11-20-06

  	
   

  	
  11-17-06

  	
   

  
	
  Date

  	
   

  	
  Date

  	
   

  
					

 

 14Exhibit
10.2

THIS AGREEMENT HAS
CONFIDENTIAL PORTIONS OMITTED, WHICH PORTIONS HAVE BEEN FILED SEPARATELY WITH
THE SECURITIES AND EXCHANGE COMMISSION. 
OMITTED PORTIONS ARE INDICATED IN THIS AGREEMENT WITH BRACKETS ([*]).

REGIONAL AMENDMENT FOR THE SALE OF PRODUCTS

BETWEEN MOTOROLA AND CELLSTAR IN NORTH AMERICA

THIS
NORTH AMERICA REGIONAL AMENDMENT (“Regional Amendment”) is
made as of the 20th day of November, 2006 (“Effective Date”) for the sale of
Products as specified below by and through the following entities:

	
  BETWEEN

  	
   

  	
  Motorola, Inc., a company
  incorporated in Delaware, U.S.A., and having a principal place of business at
  600 North U.S. Highway 45, Libertyville, IL 60048-1286 (hereinafter
  referred to as “Motorola”)

  
	
   

  	
   

  	
   

  
	
  AND

  	
   

  	
  CellStar Ltd., a Texas limited
  partnership, and having a principal place of business at 601 S. Royal Lane,
  Coppell, TX 75019 (hereinafter referred to as “CellStar” or “Distributor”).

  

 

THEREFORE, in
consideration of the mutual covenants and promises and subject to the terms and
conditions of this Regional Amendment, the parties agree as follows:

The
parties recognize that the Master Distribution Agreement between the parties,
having an effective date of November 20, 2006, will continue in full force and
effect and be incorporated herein by reference and will provide the underlying
terms and conditions by which Motorola and CellStar will conduct business on a
global level.  Any conflict between the
terms and conditions of this Regional Amendment and the Master Distributor
Agreement will be resolved in favor of the Master Distributor Agreement unless
specifically noted in this Amendment.

1.              Territory
for sale of Products  

United States of America

2.              Products/Quantity/Prices

Prices, quantities and products will be set forth separately in a Term
Sheet.

 

For those Products: 1) which Distributor purchases from Motorola in the
United States and which is resold for distribution solely in the United States;
and, 2) which exclude global or intra-regional sales offers, Motorola will
offer Product pricing to Distributor that is at least as favorable as Product
pricing made available by Motorola to any other distributor, defined as an
entity that purchases products for resale to other entities and not to
end-users, in the Territory that purchases the same quantities of the same
Products under the same terms and conditions.

Motorola will cause the Product ordered to be shipped within five days
of the requested shipment date in the purchase order unless Motorola notifies
Distributor within five days of receipt of the purchase order that the
requested shipment date is not feasible and proposes an alternative shipment
date.  The portion of any Products
subject to an accepted purchase order that is not shipped by Motorola within
ten (10) business days of the requested or agreed shipment date may be
cancelled by Distributor without liability or further obligation with respect
thereto.

To the extent agreed upon in a Term Sheet, during the term of this
Agreement, if Motorola reduces the price of a particular model of Product, then
Motorola will credit Distributor’s account an amount equal to the difference
between the old and the new net purchase price (in each case, invoice price
less rebate and any promotional amounts) multiplied by the number of such
Product units purchased from Motorola that: 1) were shipped within thirty (30)
days prior to the new price effective date; and, 2) remain in Distributor’s
inventory (“Eligible Products”). 
Eligible Products shall not include: (i) close out products where
Distributor is notified in advance of the Products status prior to shipment;
(ii) Products purchased pursuant to special or promotional pricing where
Distributor is notified in advance of shipment, or; (iii) Products for which
Motorola provided Distributor with at least sixty (60) days advance written
notice of a scheduled price decrease prior to placement of orders.  Any amounts due Distributor under this
Section will be credited within thirty (30) days after the new price effective
date, to apply to future orders of Products only, and upon receipt of required
inventory and other documentation from Distributor.  For purposes of this Section, “close out
products” are defined as those Products the manufacturer of which has
terminated, or will be terminated within ninety (90) days of the date of
shipment thereof to Distributor and for which Motorola provides Distributor at
least sixty (60) days advance notice.

3.              Special
Program Details (to be amended as needed and added as an Attachment)

A.  Assigned and Pooled Accounts

1.  Applicability

Subject to the terms set
forth in this Regional Amendment, with respect to sales by Distributor and
distributors generally to the regional carriers in the U.S., the parties agree
that the following terms and conditions in Sections 3.A.3. through and
including 3.A.6. shall supersede the Master Distributor Agreement but only as to Motorola’s ability
to appoint other

 

distributors who can sell to
Assigned Accounts or Pooled Accounts, as defined below, without limit.  All other terms of the Master Distributor
Agreement remain in full force and affect and shall control as to any conflicts
between it and this Regional Amendment. 
For the avoidance of doubt, all other sales of Products by Distributor
to other customers are governed by the remaining terms in this Regional
Amendment and Master Distributor Agreement.

2.  Definitions

Assigned Account — A regional carrier account that is served on a
limited exclusivity basis by Distributor, subject to the terms contained
herein, and are listed on Exhibit A, Assigned Accounts, attached hereto and
incorporated herein, as may be amended from time to time.

Open Account — A regional carrier account that is subject to Section
1.3 of the Master Distributor Agreement and can be served by the following,
without limitation:  CellStar, any
additional domestic distributor or distributors, or other domestic entities as
appointed by Motorola, and Motorola direct. 
Such Accounts may be served only by distributors located within the
Territory.

Pooled Account — A regional carrier account that is served by
Distributor and one other distributor, as determined by Motorola in its sole
and absolute discretion, and are listed on Exhibit B, Pooled Accounts, attached
hereto and incorporated herein, as may be amended from time to time.

Market Share — Market Share will be determined by [*].  In the case of Pooled Accounts, Market Share
shall be determined by [*].

3.  Assigned
Accounts Initial Market Share Threshold

As of the Effective Date of this Regional Amendment, Distributor will
be required to have [*].  Any Assigned
Account which does not satisfy the Initial Market Share Threshold will be
immediately converted into a Pooled Account.

4.  Assigned
Accounts Quarterly Minimum Market Share Threshold

During the Term of this Regional Amendment, Distributor will be
required to achieve a minimum Market Share in each of its Assigned Accounts on
a quarterly basis in order for such account to remain an Assigned Account (“Assigned
Accounts Quarterly Minimum Market Share Threshold”).  The Assigned Accounts Quarterly Minimum
Market Share Thresholds are as follows:

Brackets ([*])
indicate portions of this document have been deleted and separately filed with
the Securities and Exchange Commission.

 

 

	
  Quarter Ending

  	
   

  	
   

  	
   

  	
  Minimum Market

  Share Threshold

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  September 30, 2006

  	
   

  	
  [*]

  	
   

  
	
  December 31, 2006

  	
   

  	
  [*]

  	
   

  
	
  March 31, 2007

  	
   

  	
  [*]

  	
   

  
	
  June 30, 2007

  	
   

  	
  [*]

  	
   

  

 

In the event that Distributor does not achieve the Assigned Accounts
Quarterly Minimum Market Share Threshold as specified above, such Assigned
Account will immediately be converted to a Pooled Account effective upon
delivery by Motorola of a written notice to Distributor notifying it that such
Assigned Account will be converted to a Pooled Account to be effective
immediately.  During the Term of this
Regional Amendment, and subject to the provisions of Section 3.A.6., any
accounts that have been converted from Assigned Accounts to Pooled Accounts
will remain Pooled Accounts for the remaining Term of this Regional Amendment,
subject to Section 6 herein.

Notwithstanding the above, if Motorola is notified in writing by an
Assigned Account that: 1) Distributor is not providing adequate and appropriate
service, subject to adequate product availability and quality by Motorola as
determined in Motorola’s reasonably judgment, by way of example only such
claims may include late deliveries, issues with product returns; or, 2)
Assigned Account no longer wishes to be served by Distributor, such account will
become a Pooled Account effective immediately upon receipt of written notice
from Motorola to Distributor notifying it that such Assigned Account will be
converted to a Pooled Account effective immediately.  During the Term of this Regional Amendment, and
subject to the provisions of Section 3.A.6., any accounts that have been
converted from Assigned Accounts to Pooled Accounts will remain a Pooled
Account for the remaining Term of this Regional Amendment, subject to Section 6
herein.

5.  Pooled
Accounts Initial Market Share Threshold

As of the Effective Date of this Regional Amendment, Motorola Pooled
Market Share in each Pooled Account will be [*].  Any Pooled Account which does not satisfy the
Pooled Accounts Initial Market Share Threshold will be immediately converted
into an Open Account.

6.  Pooled
Accounts Quarterly Minimum Market Share Threshold

During the Term of this Regional Amendment, Motorola’s Pooled Market
Share with Pooled Accounts will be subject to a minimum Pooled Market Share
requirement (“Pooled Accounts Quarterly Minimum Market Share 

Brackets ([*])
indicate portions of this document have been deleted and separately filed with
the Securities and Exchange Commission.

 

Threshold”) on a quarterly basis in order for such account to remain a
Pooled Account.  The Pooled Accounts
Quarterly Minimum Market Share Threshold will be as follows:

	
  Quarter Ending

  	
   

  	
   

  	
   

  	
  Minimum Market

  Share Threshold

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  September 30, 2006

  	
   

  	
  [*]

  	
   

  
	
  December 31, 2006

  	
   

  	
  [*]

  	
   

  
	
  March 31, 2007

  	
   

  	
  [*]

  	
   

  
	
  June 30, 2007

  	
   

  	
  [*]

  	
   

  

 

In the event that Motorola’s Pooled Market Share does not exceed the
Pooled Accounts Quarterly Minimum Market Share Threshold as specified above,
such Pooled Account will immediately become an Open Account upon provision by
Motorola of a written notice to Distributor notifying it that such Pooled
Account will be converted to an Open Account effective immediately.  During the Term of this Regional Amendment,
any accounts that have been converted from Pooled Accounts to Open Accounts will
remain Open Accounts for the remaining Term of this Regional Amendment.

Notwithstanding the above, if Motorola is notified in writing by a
Pooled Account that: 1) Distributor is not providing adequate and appropriate
service, subject to adequate product availability and quality by Motorola as
determined in Motorola’s reasonable judgment, by way of example only such
claims may include late deliveries, issues with product returns; or, 2) Pooled
Account no longer wishes to be served by Distributor, such account will become
an Open Account effective immediately upon receipt of written notice from
Motorola to Distributor notifying it that such Pooled Account will be converted
to an Open Account effective immediately.

7.              Right to Sell Direct

Notwithstanding anything to the contrary herein and subject to 1.3 of
the Master Distributor Agreement, Motorola has the right to sell direct to any
Assigned Account, Pooled Account, or Open Account at any time upon thirty (30)
days prior written notice; provided, however, that if Motorola determines to
sell direct to any Assigned or Pooled account, CellStar may, , at its option,
modify or cancel any Product forecasts and any then-open purchase orders
submitted for Product, (including accessories) specifically for such Assigned
or Pooled Accounts.

Brackets ([*])
indicate portions of this document have been deleted and separately filed with
the Securities and Exchange Commission.

 

8. 
Upgrading of Accounts

In the event that a Pooled Account provides written notice to Motorola
notifying it that such Pooled Account wishes to be converted to an Assigned
Account and Distributor’s Motorola Market Share in such Pooled Account has
equaled or exceeded the Assigned Accounts Quarterly Minimum Market Share
Threshold in the two (2) consecutive immediately preceding quarters as
specified above, Motorola may in its sole discretion convert such Pooled
Account to a Protected Account of Distributor within seven (7) calendar days of
receipt of such notice.  During the Term
of this Regional Amendment, and subject to the provisions of this Section 3.A.,
any accounts that have been converted from Pooled Accounts to Assigned Accounts
will remain Assigned Accounts, as appropriate, for the remaining Term of this
Regional Amendment.

B. 
Non-exclusive Appointment

Notwithstanding anything to the contrary herein, Distributor’s status
as an exclusive distributor to Assigned Accounts and with limited exclusivity
to Pooled Accounts, is exclusive of any direct sales by Motorola and subject to
the terms contained herein and in the Master Distributor Agreement.

C.            Quarterly
Reviews

Distributor and Motorola will meet within 30 calendar days after the
end of each quarter to review Distributor’s performance in obtaining and
serving Assigned and Pooled Accounts, and maintaining Market Share or Pooled
Market Share, as the case may be.  These
reviews will include an analysis and discussion of, among other items, TAM
projections, competitive activity, Motorola sales activity, current promotions
and other pertinent issues.  During these
reviews Motorola and Distributor will determine whether the Distributor has met
the Pooled Accounts Quarterly Minimum Market Share Threshold and the Assigned
Accounts Quarterly Minimum Market Share Threshold, as appropriate.

If it is determined that Distributor has not meet the Pooled Accounts
Quarterly Minimum Market Share Threshold or the Assigned Accounts Quarterly
Minimum Market Share Threshold, as appropriate, Distributor must submit a plan
of action to Motorola within seven (7) days of such notification.  Motorola will notify Distributor whether such
plan is agreeable.  If such plan is not
agreeable or if Distributor fails to meet the objectives of the plan of action
as agreed to, such Account will be immediately characterized as a Pooled or
Open Account, as set forth and subject to the terms contained herein.

If, based upon the quarterly review, the parties agree that Distributor
has maintained a forty (40) percent Market Share or Pooled Market Share, as the
case may be, in Eligible Units, with such Eligible Units to be defined in the
applicable

 

Term Sheet, as compared to TAM, Distributor will be eligible for a one
(1) dollar per Eligible Unit marketing fund for those units in excess of the
forty (40) percent Market Share or Pooled Market Share, as the case may be,
which will be credited to Distributor’s account within thirty (30) days of the
quarterly meeting, unless otherwise specified in the Term Sheet.

D.  Launch
Kits

The parties acknowledge and agree that Motorola will provide launch
kits which may include display phones and/or other materials, as agreed upon
with the regional carrier, directly to the regional carriers.  The parties further agree that Motorola will
not provide launch kits to the Distributor.

4.              Term
and Effective Date

The
term of this Regional Amendment will commence as of the Effective Date
specified above and run concurrently with the Term of the Master Distributor
Agreement (“Term”) and may be terminated in accordance with the rights
contained therein.

5.              Regional-Specific
Legal Requirements

The governing law of this
Regional Amendment will be the substantive law of Illinois, USA.

IN WITNESS WHEREOF, the parties have caused this
REGIONAL AMENDMENT to be executed by their duly authorized representatives on
the dates under their signatures below.

	
  MOTOROLA, INC.

  	
   

  	
  CELLSTAR, LTD.

  	
   

  
	
  

  	
   

  	
  By:

  	
  National Auto Center, Inc.

  	
   

  
	
   

  	
   

  	
   

  	
        its General Partner

  	
   

  

 

	
  /s/ 
  Richard Gadd

  	
   

  	
  /s/ Robert Kaiser

  	
   

  
	
  Signature

  	
   

  	
  Signature

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Richard Gadd

  	
   

  	
  Robert Kaiser

  	
   

  
	
  Name

  	
   

  	
  Name

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  VP, Sales

  	
   

  	
  CEO

  	
   

  
	
  Title

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  11/20/06

  	
   

  	
  11-17-06

  	
   

  
	
  Date

  	
   

  	
  Date

  	
   

  

 

 

 

 

 

EXHIBIT A

ASSIGNED ACCOUNTS

[*]

(one page redacted)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brackets ([*]) indicate
portions of this document have been deleted and separately filed with the
Securities and Exchange Commission.

 

 

EXHIBIT B

POOLED ACCOUNTS

[*]

(3 pages redacted)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brackets ([*]) indicate portions of this document have
been deleted and separately filed with the Securities and Exchange Commission.

 

 

EXHIBIT B
— MOTOROLA LIMITED WARRANTY

MOTOROLA LIMITED WARRANTY
FOR PERSONAL COMMUNICATION PRODUCTS, ACCESSORIES AND SOFTWARE PURCHASED IN THE
UNITED STATES OR CANADA

What Does this Warranty Cover?
Subject to the exclusions contained below, Motorola, Inc. warrants its wireless
telephones, pagers and consumer two-way radios that operate via Family Radio
Service or General Mobile Radio Service (“Products”), Motorola-branded or
certified accessories sold for use with these Products (“Accessories”) and
Motorola software contained on CD-Roms or other tangible media and sold for use
with these Products (“Software”) to be free from defects in materials and
workmanship under normal consumer usage for the period(s) outlined below.  This limited warranty is a consumer’s
exclusive remedy, and applies as follows to new Motorola Products, Accessories
and Software purchased by consumers in the United States or Canada, which are
accompanied by this written warranty:

	
  PRODUCTS COVERED

  	
   

  	
  LENGTH OF COVERAGE

  	
   

  	
  EXCLUSIONS

  
	
  A.
  Products and Accessories as defined above, unless otherwise provided for below.

   

   

  1. Decorative Accessories and Cases. Decorative covers, bezels,
  PhoneWrapä covers and cases.

   

  2. Monaural Headsets. Ear
  buds and boom headsets that transmit mono sound through a wired connection.

   

  3. Consumer Two-Way Radio Accessories.

   

   

  4. Products and Accessories that are Repaired or Replaced.

  	
   

  	
  A. One (1) year from
  the date of purchase by the first consumer purchaser of the product unless
  otherwise provided for below.

   

  1. Limited lifetime warranty for the lifetime of
  ownership by the first consumer purchaser of the product.

   

  2. Limited lifetime warranty
  for the lifetime of ownership by the first consumer purchaser of the product.

   

  3. Ninety (90) days from the
  date of purchase by the first consumer purchaser of the product.

   

  4. The balance of the original warranty or for
  ninety (90) days from the date returned to the consumer,
  whichever is longer.

  	
   

  	
  Normal Wear and Tear.
  Periodic maintenance, repair and replacement of parts due to normal wear and
  tear are excluded from coverage.

   

  Batteries.
  Only batteries whose fully charged capacity falls below 80% of their rated
  capacity and batteries that leak are covered by this limited warranty.

   

  Abuse & Misuse.
  Defects or damage that result from: (a) improper operation, storage, misuse
  or abuse, accident or neglect, such as physical damage (cracks, scratches,
  etc.) to the surface of the product resulting from misuse; (b) contact with
  liquid, water, rain, extreme humidity or heavy perspiration, sand, dirt or
  the like, extreme heat, or food; (c) use of the Products or Accessories for
  commercial purposes or subjecting the Product or Accessory to abnormal usage
  or conditions; or (d) other acts which are not the fault of Motorola, are
  excluded from coverage.

   

  Use of Non-Motorola Products and
  Accessories. Defects
  or damage that result from the use of Non-Motorola branded or certified
  Products, Accessories, Software or other peripheral equipment are excluded
  from coverage.

   

  Unauthorized Service or
  Modification. Defects or damages resulting from
  service, testing, adjustment, installation, maintenance, alteration, or
  modification in any way by someone other than Motorola, or its authorized
  service centers, are excluded from coverage.

   

  Altered Products.
  Products or Accessories with (a) serial numbers or date tags that have been
  removed, altered or obliterated; (b) broken seals or that show evidence of
  tampering; (c) mismatched board serial numbers; or (d) nonconforming or
  non-Motorola housings, or parts, are excluded form coverage.

   

  Communication Services.
  Defects, damages, or the failure of Products, Accessories or Software due to
  any communication service or signal you may subscribe to or use with the
  Products Accessories or Software is excluded from coverage.

  

 

 

 

	
  B. Software. Applies only to
  physical defects in the media that embodies the copy of the software (e.g.
  CD-ROM, or floppy disk).

  	
   

  	
  B. Ninety (90) days from the date of purchase.

  	
   

  	
  Software Embodied in Physical
  Media. No warranty is made that the software will meet
  your requirements or will work in combination with any hardware or software
  applications provided by third parties, that the operation of the software
  products will be uninterrupted or error free, or that all defects in the
  software products will be corrected.

   

  Software NOT Embodied in Physical
  Media. Software that is not embodied in physical media
  (e.g. software that is downloaded from the internet), is provided “as is” and without warranty.

  

 

Who is covered?
This warranty extends only to the first consumer purchaser, and is not
transferable.

What will Motorola Do?  Motorola, at its option,
will at no charge repair, replace or refund the purchase price of any Products,
Accessories or Software that does not conform to this warranty.  We may use functionally equivalent
reconditioned/refurbished/pre-owned or new Products, Accessories or parts.  No data, software or applications added to
your Product, Accessory or Software, including but not limited to personal
contacts, games and ringer tones, will be reinstalled.  To avoid losing such data, software and
applications please create a back up prior to requesting service.

How to Obtain Warranty Service or Other Information? To obtain
service or information, please call:

	
  USA

  	
  Phones 1-800-331-6456

  	
  CANADA

  	
  All Products 1-800-461-4575

  
	
   

  	
  Pagers 1-800-548-9954

  	
   

  	
  TTY 1-888-390-6456

  
	
   

  	
  Two-Way Radios 1-800-353-2729

  	
   

  	
   

  
	
   

  	
  TTY 1-888-390-6456

  	
   

  	
   

  
	
  For Accessories and Software,
  please call the telephone number designated above for the product with which
  they are used.

  

 

You will receive
instructions on how to ship the Products, Accessories or Software, at your expense,
to a Motorola Authorized Repair Center. To obtain service, you must include:
(a) a copy of your receipt, bill of sale or other comparable proof of purchase;
(b) a written description of the problem; (c) the name of your service
provider, if applicable; (d) the name and location of the installation facility
(if applicable) and, most importantly; (e) your address and telephone number.

What Other Limitations Are There? ANY IMPLIED
WARRANTIES, INCLUDING WITHOUT LIMITATION THE IMPLIED WARRANTIES OF MERCHANTABILITY
AND FITNESS FOR A PARTICULAR PURPOSE, SHALL BE LIMITED TO THE DURATION OF THIS
LIMITED WARRANTY, OTHERWISE THE REPAIR, REPLACEMENT, OR REFUND AS PROVIDED
UNDER THIS EXPRESS LIMITED WARRANTY IS THE EXCLUSIVE REMEDY OF THE CONSUMER,
AND IS PROVIDED IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OF IMPLIED. IN NO
EVENT SHALL MOTOROLA BE LIABLE, WHETHER IN CONTRACT OR TORT (INCLUDING
NEGLIGENCE) FOR DAMAGES IN EXCESS OF THE PURCHASE PRICE OF THE PRODUCT,
ACCESSORY OR SOFTWARE, OR FOR ANY INDIRECT, INCIDENTAL, SPECIAL OR
CONSEQUENTIAL DAMAGES OF ANY KIND, OR LOSS OF REVENUE OR PROFITS, LOSS OF
BUSINESS, LOSS OF INFORMATION OR DATA, SOFTWARE OR APPLICATIONS OR OTHER
FINANCIAL LOSS ARISING OUT OF OR IN CONNECTION WITH THE ABILITY OR INABILITY TO
USE THE PRODUCTS, ACCESSORIES OR SOFTWARE TO THE FULL EXTENT THESE DAMAGES MAY
BE DISCLAIMED BY LAW.

 

Some states and jurisdictions do not allow the limitation or
exclusion of incidental or consequential damages, or limitation on the length
of an implied warranty, so the above limitations or exclusions may not apply to
you. This warranty gives you specific legal rights, and you may also have other
rights that vary from state to state or from one jurisdiction to another.

Laws in the United States and other countries preserve
for Motorola certain exclusive rights for copyrighted Motorola software such as
the exclusive rights to reproduce and distribute copies of the Motorola
software.  Motorola software may only be
copied into, used in, and redistributed with, the Products associated with such
Motorola software.  No other use,
including without limitation disassembly of such Motorola software or exercise
of the exclusive rights reserved for Motorola, is permitted.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXHIBIT C
— BREW AGREEMENT

WHEREAS,
Distributor is aware that Motorola has a license from Qualcomm, Inc. (“Qualcomm”)
to integrate Binary Runtime Environment for Wireless (“BREW”) technology into
certain Motorola CDMA wireless devices;

WHEREAS,
Distributor as an authorized distributor of certain wireless products desires
to purchase BREW Devices for resale to certain CDMA wireless carriers in the
United States; and

WHEREAS, Motorola
desires to sell such BREW Devices to Distributor;

NOW THEREFORE, the
Parties hereto agree as follows;

1.             Definitions.

a.                                       “BREW
Device” means a complete end-user CDMA wireless device into which Motorola has
integrated the Qualcomm BREW technology.

b.                                      “BREW
OEM Kit” means the kit provided by Qualcomm to Motorola to enable Motorola to
integrate the BREW into the Devices to create BREW Devices.  The term BREW OEM Kit includes all BREW OEM
Kit upgrades, if any, to such kit that Qualcomm makes available to Motorola.  As of the date of this Agreement, the
commercial version of the BREW OEM Kit will consist of those items set forth
below.

2.                                       With
respect to Distributor’s purchase of BREW Devices, Distributor hereby agrees
to:

a.                                       only
sell such BREW Devices to the CDMA wireless carriers in the United States as
described in this Agreement;

b.                                      not
reproduce, modify, distribute, reverse engineer, decompile or otherwise
discover the source code for any component of the BREW OEM Kit; and

c.                                       protect
Qualcomm’s interest in the Intellectual Property Rights in the BREW OEM Kit.

3.                                       Distributor
shall be limited to using the components of the BREW OEM Kit solely as
integrated into the BREW Devices sold to Distributor to Motorola.

4.                                       Within
20 calendar days after the end of each quarter, Distributor shall provide
Motorola with a written report, (“Report”) in the form to be provided by
Motorola that includes the number of BREW Devices shipped to each CDMA wireless
carrier in the United States for each month of the quarter.  Motorola may make reasonable changes to the
Report from time to time.

BREW Documentation

BREW SDK Documentation:

BREW Client Reference Guide

BREW Device Configurator Guide

BREW MIF Editor Guide

BREW Resource Editor Guide

BREW SDK User’s Guide

BREW Client Documentation:

BREW Client Porting Guide

BREW OEM App Test (OAT) Guide

BREW Stone User Guide

BREW OEM Client Reference Guide

BREW Core Application Guide (e.g., Application Manager and MobileShop)

 

 

Release notes as
required.

Software

BREW SDK (and all components thereof) in Object Code, including
software support tools (including The GrinderTM)

BREW Client and
ARM Libraries Object Code

OEM Reference Source Code (Chip Interface Layers and OEM Interface
Layers) and header files for MSM Integration (the “BREW Kit Integration Layers”)

Application Manager/MobileShop Source Code (the “Core BREW Kit
Applications”)

Test Software
(the “OEM Kit Tools”)

BREW Stone Test
Applet (benchmarking) as an executable

BREW OEM acceptance tests or OAT Test Applets (Chip Interface Layers
and OEM Interface Layers interface testing) as an executable BREW OEM
acceptance tests or OAT Test Applets (Chip Interface layers and OEM Interface
Layers interface testing).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXHIBIT D
— MOTOROLA TRADEMARK USAGE GUIDELINES

From
time to time, during the term of the Agreement, Motorola may provide to Distributor
additional trademark usage guidelines under this Exhibit D.

Trademark Usage Guidelines

Pursuant
to the terms of the Agreement, Distributor may be permitted to use Motorola
trademarks (the “Marks”) for purposes of approved advertising.  The Marks are important and valuable assets
of Motorola and proper use of the Marks (especially for all published
materials, including articles, newsletters, press releases, webpages,
multimedia and advertisements) is critical to maintaining the value of the
Marks and the good will associated with the Marks.

The
following requirements must be followed by Distributor:

·                  You must receive
approval from Motorola in order to use any of its Marks. Distributor must
provide Motorola with specimens of Mark usage prior to use, and a reasonable
opportunity to review and approve Distributor’s use of the Marks prior to their
use. Motorola reserves the right to review any use of the Marks at any time.

·                  Do not use the
Marks in or as a company name or in combination with any other trade name,
trademark, service mark or trade dress unless approved in writing in advance by
Motorola.

·                  Do not
incorporate the Marks into your own product names, service names, trademarks or
logos and do not adopt or use any trade name, trademark, service mark or trade
dress which is likely to be confused with, or to dilute, any of the Marks.

·                  Do not use any
of the Marks for any business, goods or services other than Motorola’s goods
and services.

·                  Do not apply to
register or own any registration of any of the Marks.

·                  Do not
sublicense or permit any third party to use any of the Marks without the prior
written approval of Motorola.

·                  Do not use Marks
in conjunction with the marks or logos of other wireless service providers or
other third parties.

·                  Use logos
exactly as used by Motorola, without any alteration or modification to the
design, words, colors and/or proportions. Do not vary any Mark by abbreviating
it or changing its spelling.

·                  Do not use the
Marks, or confusingly similar versions of the Marks, in a domain name.  If Distributor uses the Marks in this manner,
Distributor agrees to transfer ownership of the domain name to Motorola.

·                  Do not use the
Marks in a manner which could cause confusion as to Motorola’s sponsorship,
affiliation or endorsement of the goods or services being offered or promoted.

·                  Do not use the
Marks, or confusingly similar versions of the Marks, in a manner that is
inaccurate, distasteful or that disparages Motorola.  Distributor may not use the Marks, or
confusingly similar versions of the Marks, in any manner that Motorola
determines, in its sole discretion, diminishes or damages Motorola’s goodwill
in the Marks.

 

 

·                  Upon termination
of the Agreement for any reason, Distributor must deliver to Motorola all
literature, materials, business cards, signs, labels, and other documents, and
all registrations, upon which or in which the Marks appear.

·                  Certain Company
products and/or services include products and/or technology of third
parties.  Dealer may not use any marks of
third parties without their express permission.

·                  A Mark should
always be used as an adjective and should be accompanied by an appropriate
noun.  Do not use a Mark as a noun or
verb, or in the possessive or plural form.

·                  You must use a
noun (a generic term) in association with each Mark the first time the Mark
appears in text, and as often as possible after that.

·                  In addition to attributing
ownership of the Marks to Motorola and using the appropriate trademark symbols
(®, TM or SM), please use the following trademark notice on the same page or in
the area in which a Mark appears:  “[Mark]
is a trademark and/or registered trademark of Motorola, Inc. in the U.S. and/or
in other countries.”

·                  Always use the
appropriate symbol (®, TM or SM) in connection with all of the Marks.  At a minimum, the proper symbol must be used
at the most prominent use of the Mark (usually a headline) and again on the
first occurrence of the Mark in text.

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