Document:

exv10w7

 

Exhibit 10.7

EXHIBIT C TO SEPARATION AGREEMENT

INTELLECTUAL PROPERTY ASSIGNMENT AGREEMENT

     This
Intellectual Property Assignment Agreement (the “Agreement”), entered into as of December
31, 2002 among ECI TELECOM LTD. (“ECI TELECOM”), ECI TELECOM NGTS LTD. (“NGTS”) and VERAZ NETWORKS,
LTD. (formerly Chorale Networks Ltd.) (“Veraz”). ECI TELECOM and NGTS are referred to collectively
as “ECI.” Veraz and ECI are referred to collectively as the “Parties.”

WITNESSETH:

     WHEREAS, ECI and Veraz have entered into a Separation and Asset Purchase Agreement dated as of
even date herewith (the “APA”); and

     WHEREAS, it is a condition to closing of the APA that this Agreement be entered into between
the Parties to effect the assignment of the intellectual property rights related to the VoIP
Business to Veraz, as set forth herein.

     NOW, THEREFORE, it is hereby agreed by and between the Parties as follows:

ARTICLE 1

DEFINITIONS

As used herein, the following terms have the following meanings:

	1.1	 	“Businesses” shall have the meaning ascribed to it in the APA.
	 
	1.2	 	“Closing Date” and “Closing” shall have the respective meanings assigned to them in the APA.
	 
	1.3	 	“Veraz Know-How” shall mean all Know-How relating to the VoIP Business, including without
limitation the Know-How incorporated into or used solely in the development, manufacturing,
marketing, sale, distribution, service and support of the products and services listed in
Appendix 1.3 attached hereto.
	 
	1.4	 	“Veraz Patents” shall mean the Patents listed in Appendix 1.4 attached hereto.
	 
	1.5	 	“Veraz Trademarks” shall mean the Trademarks listed in Appendix 1.5 attached hereto.
	 
	1.6	 	“Veraz IP” shall mean Veraz Know-How, Veraz Patents and Veraz Trademarks.
	 
	1.7	 	“Intellectual Property Rights” shall mean all past, present, and future rights which may
exist or be created under the laws of any jurisdiction in the world with respect to all: (i)
rights associated with works of authorship, including exclusive exploitation rights,
copyrights, moral rights, and mask works; (ii) trademark and trade name rights and similar
rights; (iii) trade secret rights; (iv) patents, patent applications, and industrial

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	 	 	property rights; (v) other proprietary rights in intellectual property of every kind and
nature; and (vi) rights in or relating to registrations, renewals, extensions, combinations,
divisions, and reissues of, and applications for, any of the rights referred to in
subclauses (i) through (v) above.
	 
	1.8	 	“Know-How” shall mean technology, software (whether in source code or in executable code
form), ideas, concepts, know-how, techniques, technical and commercial information, data and
documents of whatever kind, including drawings, specifications, photographs, samples, models,
processes, procedures, reports and correspondence, including works of authorship embodying the
foregoing, as well as information incorporated in formal or informal databases,
correspondence, email, proprietary methods and processes of conducting business as well as
know-how and show-how, customer lists, marketing plans, business plans, strategies, workflows
and other information of value maintained in secrecy, in existence as of the Closing Date.
	 
	1.9	 	“License Agreement” shall mean that certain Intellectual Property License Agreement by and
between the Parties as of even date herewith, which, among other things, grants ECI a license
to use the Veraz IP as set forth in the License Agreement.
	 
	1.10	 	“Patents” shall mean patents and patent applications (including utility model applications),
including any and all divisionals, continuations, re-examinations, renewals, provisionals,
continuations-in-part, re-issues, and foreign equivalents thereof.
	 
	1.11	 	“Trademarks” shall mean registered trademarks and pending trademark applications in existence
as of the Closing Date, including any and all renewals and foreign equivalents thereof.
	 
	1.12	 	“VoIP Business” shall have the meaning ascribed to it in the APA.

ARTICLE 2

ASSIGNMENT OF VERAZ IP TO VERAZ

2.1 Effective as of the Closing, ECI hereby irrevocably and unconditionally assigns, contributes,
transfers, conveys and delivers to Veraz and its successors and assigns, all of its rights, title
and interests in and to the Veraz IP and all Intellectual Property Rights therein, and the right to
recover and take all proceedings as may be necessary for the recovery of damages or otherwise in
respect of past, present and future infringement or misappropriation of the Veraz IP. At Closing
ECI shall deliver or cause to be delivered to Veraz the following; (i) possession of any tangible
embodiments of the Veraz IP; and (ii) duly signed deeds of assignments for all Veraz IP effecting
the assignment described in the immediately preceding sentence and (iii) any duly signed consents
to the assignments thereof that have been obtained. ECI hereby acknowledges and agrees that it
retains no right to use the Veraz IP, except as provided in Sections 2.5(a) and (b) of the License
Agreement, and agrees not to challenge the validity of Veraz’s ownership of the Veraz IP.

2.2 In the event that any assignment under Section 2.1 above may be ineffective or incomplete as a
result of any moral rights, artists’ rights, or any other similar rights worldwide (“Moral
Rights”), ECI hereby irrevocably and unconditionally transfers and assigns to Veraz any

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and all Moral Rights that ECI may have in or with respect to the Veraz IP. To the extent that ECI
cannot transfer and assign such Moral Rights to Veraz, ECI hereby waives and agrees never to assert
such Moral Rights against Veraz or any of Veraz’s licensees. If ECI has any rights to the Veraz IP
that cannot be assigned to Veraz or waived by ECI, then ECI unconditionally and irrevocably grants
to Veraz, during the term of such rights, an exclusive (including with respect to ECI, except as
provided in Sections 2.5(a) and (b) of the License Agreement), irrevocable, perpetual, worldwide,
fully-paid and royalty-free license, with rights to sublicense throughout multiple tiers of
sublicensees, to use, reproduce, modify, create derivative works of, distribute, perform, display,
distribute directly and indirectly, and otherwise exploit the Veraz IP by all means now known or
later developed, and to make, have made, sell, offer to sell, lease, offer to lease and import
products and services that contain or embody such Veraz IP.

2.3 All reasonable administrative, governmental and other necessary costs that are actually
incurred to assign the Veraz IP from ECI to Veraz pursuant to Section 2.1 above shall be allocated
as follows: (a) Veraz shall bear the first Ten Thousand U.S. Dollars (U.S. $10,000) of actually and
reasonably incurred costs; and (b) any additional actually and reasonably incurred costs shall be
allocated equally between ECI and Veraz, provided that ECI shall manage the process of such
assignment. ECI shall execute and deliver at or prior to the Closing all documents and perform
promptly all acts which are reasonably necessary or desirable to procure, maintain, perfect, and
enforce the full benefits, enjoyment, rights, title, and interests on a worldwide basis of the
Veraz IP assigned to Veraz under this Agreement, and shall render promptly all reasonably necessary
assistance in making application for and obtaining for Veraz the assignment of original,
divisional, renewal, provisional, continuation, continuation-in-part, re-examinations or reissued
patents and patent applications and foreign equivalents thereof, copyrights, mask works,
trademarks, trade secrets, and all other Intellectual Property Rights constituting part of the
Veraz IP, in Veraz’s name and sole benefit. ECI shall provide promptly to Veraz a copy of any
assignment documents, and provide Veraz with a reasonable opportunity to comment thereon, prior to
the filing thereof, but in no event later than the Closing. In the event Veraz fails, after
commercially reasonable efforts, to secure ECI’s signature on any document needed in connection
with the actions specified in this Section 2.3, ECI hereby irrevocably and unconditionally
designates and appoints Veraz and its duly authorized officers and agents as its agent and attorney
in fact, which appointment is coupled with an interest, to act for and in its behalf to execute,
verify and file any documents and to do all other lawfully permitted acts to further the purposes
of this Section 2.3 with the same legal force and effect as if executed by ECI. ECI hereby waives
and quitclaims to Veraz any and all claims, of any nature whatsoever, which ECI now or may
hereafter have for infringement of any Veraz IP assigned hereunder. Veraz shall bear all costs of
prosecution and maintenance of the Veraz Patents and Veraz Trademarks after the Closing Date to the
extent that Veraz, in its sole discretion, chooses to so prosecute or maintain.

2.4 ECI further agrees to deliver to Veraz upon the Closing any and all tangible manifestations of
the Veraz IP, including, without limitation, all notes, records, files and tangible items of any
sort in its possession or under its control relating solely to the Veraz IP. Such delivery shall
include all present and predecessor versions. In addition, in the event that, from time to time,
Veraz lacks the relevant knowledge and expertise and ECI has the relevant knowledge and expertise,
ECI agrees to provide to Veraz from and after the Closing and at the expense of Veraz competent and
knowledgeable assistance to facilitate the transfer of all

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information, know-how, techniques, processes and the like related to such tangible manifestations
and otherwise comprising the intangible aspects of the Veraz IP.

2.5 Should Veraz decide to abandon the prosecution or maintenance of any Veraz Patents, Veraz shall
provide promptly to ECI written notice of any such planned abandonment and, upon ECI’s request and
at ECI’s expense, and provided that ECI has requested in writing for Veraz to assign and transfer
Veraz’s ownership rights in and to any such Veraz Patents within thirty (30) days of such notice,
Veraz shall unconditionally and irrevocably assign and transfer complete and exclusive ownership in
and to any such Veraz Patents to ECI upon reasonable terms that are to be agreed upon by the
parties. Upon the making of any such assignment or transfer to ECI, ECI covenants to grant to
Veraz a royalty-free and fully paid license under such assigned Veraz Patents of the same scope and
duration and with the same restrictions as provided for other similar patents for which ECI grants
a license to Veraz under the License Agreement. Any assignment or transfer that is made by Veraz
of any Veraz Patents pursuant to the provisions of this Section 2.5 shall be made subject to any
underlying license grants, covenants and license restrictions granted or undertaken by Veraz in and
to any such Veraz Patents. Upon written request by ECI, Veraz shall assist in the completion of
such assignment at the sole cost of ECI.

ARTICLE 3

ECI’S REPRESENTATIONS

ECI hereby represents and warrants to Veraz that the following representations and warranties are
true and accurate in all respects, and acknowledges that Veraz is entering into this Agreement in
reliance thereon:

3.1 As of the date of the execution of this Agreement by the Parties and as of the Closing Date,
ECI is duly incorporated and validly existing under the laws of Israel. ECI has the corporate
power and authority to execute, deliver and perform this Agreement.

3.2 As of the date of the execution of this Agreement by the Parties and as of the Closing Date,
the execution and delivery by ECI of this Agreement and the agreements attached as exhibits hereto
and the performance by ECI of its obligations hereunder have been (or, as of the Closing Date, will
be) duly authorized by all requisite corporate action.

ARTICLE 4

VERAZ’S REPRESENTATIONS

Veraz hereby represents and warrants to ECI that the following representations and warranties are
true and accurate in all respects, and acknowledges that ECI is entering into this Agreement in
reliance thereon:

4.1 As of the date of the execution of this Agreement by the Parties and as of the Closing Date,
Veraz is duly incorporated and validly existing under the laws of Israel. Veraz has the corporate
power and authority to execute, deliver and perform this Agreement.

4.2 As of the date of the execution of this Agreement by the Parties and as of the Closing Date,
the execution and delivery by Veraz of this Agreement and the agreements attached as

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exhibits hereto and the performance by Veraz of its obligations hereunder have been (or, as of the
Closing Date, will be) duly authorized by all requisite corporate action.

ARTICLE 5

GOVERNING LAW; DISPUTE RESOLUTION

5.1 This Agreement shall be governed by and construed in accordance with the laws of the State of
Israel, regardless of the laws that might otherwise govern under applicable principles of conflicts
of laws thereof.

5.2 In the event of any controversy or claim arising out of or in connection with this Agreement,
Section 11.5 of the APA shall govern, mutatis mutandis.

ARTICLE 6

MISCELLANEOUS

6.1 All notices, requests and other communications hereunder shall be in writing and shall be
governed by Section 11.13 of the APA, mutatis mutandis.

6.2 The headings of this Agreement are included for convenience only, and the articles or sections
shall not be construed in accordance with their headings.

6.3 The Parties hereto agree that the invalidity or unenforceability of any of the provisions
hereof shall not in any way affect the validity or enforceability of any other provisions of this
Agreement except those from which the invalidated or unenforceable provisions comprise an integral
part or are otherwise clearly inseparable.

6.4 Nothing contained in this Agreement shall be deemed or construed to constitute or create among
the Parties hereto a partnership, association, joint venture franchise or other agency.

6.5 This Agreement and the License Agreement is the entire agreement by and among the Parties with
respect to this subject matter, and supersedes all prior discussions, negotiations, communications
and agreements with respect thereto. This Agreement may be modified only in writing signed by all
Parties hereto. Any purported oral modification of this Agreement shall be without any effect
whatsoever.

6.6 The failure of any party to enforce any of the provisions of this Agreement shall not be deemed
to be a waiver of the right of such party thereafter to enforce such provision.

ARTICLE 7

ASSIGNMENT

After the Closing Date, Veraz may freely assign or transfer this Agreement or any of its rights
hereunder to any third party without seeking consent from ECI, subject to the licenses granted
pursuant to, and Veraz’s covenants set forth in, Sections 2.5(a) and (b) of the License Agreement.
Following any such assignment or transfer, ECI shall have no further obligations

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hereunder. ECI may not assign or transfer this Agreement, or assign any rights or delegate any
obligations hereunder, to any third party without the prior written consent of Veraz (which
consent may be withheld in Veraz’s sole discretion), except to a successor-in-interest to all or
substantially all of ECI’s business. Subject to the foregoing, the rights, duties and
liabilities of the Parties under this Agreement will bind and inure to the benefit of their
successors, respectively. This Agreement shall survive and remain in full force and effect upon
any change of control event of any of the Parties, including without limitation, if either party is
merged, consolidated or sells all or substantially all of its assets.

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above
written.

	 	 	 	 	 
	VERAZ NETWORKS LTD.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Zamir Segev
	 	 
	 

	 	 	 	 
	Printed Name: Zamir Segev	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 
	Date:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	ECI TELECOM LTD.	 	 
	 
	 	 	 	 
	By:
	 	/s/ Illegible	 	 
	 

	 	 	 	 
	Printed Name:

	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 
	Date:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	ECI TELECOM-NGTS LTD.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Giora Bitan	 	 
	 

	 	 	 	 
	Printed Name: Giora Bitan	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 
	Date:
	 	 	 	 
	 

	 	 	 	 

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LIST OF APPENDICES:

	 	 	 
	Appendix 1.3

	 	“Veraz Know-How”
	 
	 	 
	Appendix 1.4

	 	“Veraz Patents”
	 
	 	 
	Appendix 1.5

	 	“Veraz Trademarks”

7exv10w8

 

Exhibit 10.8

Appendix 2.4(a) to Intellectual Property License Agreement

LICENSE AGREEMENT

THIS LICENSE AGREEMENT (this “License Agreement”) is entered as of October ___, 2002, by and
between ECI TELECOM LTD. (“ECI” or
“Licensee”) and VERAZ NETWORKS LTD. [formerly Chorale Networks
Ltd.](“Veraz” or “Licensor”); ECI or Licensee, on the one hand, and Veraz or Licensor, on the
other, may each individually be referred to in this License Agreement
as a “Party”, and
collectively referred to in this License Agreement as the “Parties”.

WITNESSETH: THAT

WHEREAS, Licensee and Licensor are parties to that certain Separation and Asset Purchase Agreement
dated as of October ___, 2002 (the “APA”); and

WHEREAS, Licensee and Licensor are parties to that certain Intellectual Property License Agreement
dated as of October ___, 2002 (the “Intellectual
Property License Agreement”); and

WHEREAS, as part of the Intellectual Property License Agreement, Licensor and Licensee have agreed
to enter into this License Agreement; and

WHEREAS; Licensee is desirous of obtaining from Licensor, and Licensor is willing to grant to
Licensee, subject to the terms and conditions set forth herein, a license to use Licensor IPR (as
defined below) for certain prescribed purposes; and

NOW, THEREFORE, in consideration of the mutual covenants and provisions herein contained, it is
hereby agreed by and between the Parties as follows:

ARTICLE 1

DEFINITIONS

As used herein, the following terms have the following meanings unless otherwise defined herein.
Additionally, all capitalized terms used herein shall have the meanings as set forth in the
Intellectual Property License Agreement:

	1.1	 	“Assignment Agreement” shall mean that certain Intellectual Property Assignment Agreement of
even date herewith for which the Parties have entered into.

	1.2	 	“Intellectual Property Rights” shall mean all rights under the laws of any jurisdiction in
the world with respect to: (i) rights associated with works of authorship, including exclusive
exploitation rights, copyrights, moral rights, and mask works; (ii) trade secret rights; (iii)
contract rights in intellectual property of every kind and nature; and (iv) rights in or
relating to registrations, renewals, extensions, combinations, divisions, and reissues of, and
applications for, any of the rights referred to in subclauses (i) through (iii) above; but
excluding all Patents, trademarks, service marks, trade names, and service names.

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	1.3	 	“Licensor Know-How” shall mean the Know-How of Licensor listed on Appendix 1.3 attached
hereto that has been assigned to Licensor under the Assignment Agreement, which is the
Know-How licensed to Licensee hereunder.

	1.4	 	“Licensor Patents” shall mean the Patents of Licensor listed on Appendix 1.4 attached hereto
that have been assigned to Licensor under the Assignment Agreement, which are those Patents
that are licensed to Licensee hereunder.

	1.5	 	“Licensor IPR” shall mean the Licensor Know-How and Licensor Patents.

	1.6	 	“Licensee Business” shall mean the development, manufacturing, distribution, sale, service
and support solely of Licensee Products.

	1.7	 	“Licensee Products” shall mean those products of Licensee listed on Appendix 1.7 attached
hereto that contain and are used substantially to perform bandwidth optimization functions and
features for mobile radio cellular networks only.

	1.8	 	“Term” shall have the meaning set forth in Article 9 hereof.

ARTICLE 2

LICENSE TO ECI

	2.1	 	Grant of License. Effective as of Closing and subject to the terms and conditions of
this License Agreement, including the license restrictions set forth in Section 2.2 below,
Licensor grants to Licensee an irrevocable, perpetual, nonexclusive, worldwide, fully paid,
royalty-free, non-transferable (except as provided in Section 8.2) license:

     (a) under the Licensor Patents to use, develop, design, integrate, make, have made,
market, sell, offer to sell, lease, offer to lease, import and otherwise transfer any
products and services with respect to activities conducted within the Licensee Business, and
to use any apparatus and practice any method in the manufacture or use thereof; and

     (b) under the Licensor’s Intellectual Property Rights, to use, develop, market, sell,
offer to sell, lease, offer to lease, import, service, reproduce, display, perform, design,
integrate, import, modify, create derivative works of, adapt, further develop, distribute
directly or indirectly, and otherwise exploit the Licensor Know-How with respect to
activities conducted within the Licensee Business.

Licensee may, at its discretion, sublicense the foregoing rights solely to the extent
necessary for Licensee to develop, market, sell, offer to sell, lease, offer to lease,
import, distribute, service and support the Licensee Products with respect to activities
conducted by Licensee within the Licensee Business.

	2.2	 	Limitations on Use. Licensee shall not under any circumstances use, or encourage any
third party to use, any of the Licensor IPR to perform any activities within the Veraz
Business (as that term is defined in the Intellectual Property License Agreement).
Notwithstanding the above, Licensee shall not be restricted in any way from pursuing any joint
venture that involves independent development or making any financial investment in any
company whatsoever provided, however, that Licensee does not breach or

2.

 

	 	 	otherwise violate any license grant, license restriction or other obligation in this License
Agreement.
	 
	2.3	 	Grant Back Right. Licensor and ECI hereby acknowledge that Licensor has agreed to
grant certain limited licenses under the specified Licensor Patents listed in Appendix 2.3
attached hereto to the respective parties set forth therein, upon their written request to
Licensor, to permit them to use, develop, design, integrate, make, have made, market, sell,
offer to sell, lease, offer to lease, import and otherwise transfer certain products that are
not competitive to Veraz’s products, with respect to activities conducted within the fields of
use identified in Appendix 2.3 for such products, and to use any apparatus and practice any
method in the manufacture or use thereof. Should any of the respective parties set forth in
Appendix 2.3 request in writing for Licensor to grant such license thereto to them, Licensor
shall grant a license under the ownership rights that Licensor has in such applicable
specified Licensor Patents at such time to such respective party of the same scope and
duration and with appropriate field of use, product line and other similar restrictions as
those provided in this License Agreement with regard to such specified Licensor Patents.
	 
	2.4	 	Technical Support. For a period of two (2) years after the date of execution of this
License Agreement by the Parties, at Licensee’s written request and subject to the
availability and agreement by the Parties upon the amounts, including the rates for support,
to be paid by Licensee for technical support to be provided by Licensor, Licensor will provide
at mutually agreed dates and times technical support to the extent required for Licensee to
resolve technical problems encountered with the Licensee’s use of the Licensor Know-How in
connection with the Licensee Business. Any amount that is agreed upon between the Parties to
be paid by Licensee for technical support to be provided hereunder shall be paid within ten
(10) days after services are performed by Licensor. Licensor will invoice Licensee for
technical support services on at least a monthly basis after services are rendered. Any
technical support that will be provided to Licensee by Licensor hereunder, at Licensee’s
written request, will be further limited solely to the permitted use by Licensee of the
Licensor Know-How that is existing as of Closing and generally available at the time of
Licensee’s written request in accordance with the license rights granted in Section 2.1.

ARTICLE 3

INTELLECTUAL PROPERTY MATTERS

	3.1	 	Intellectual Property Protection. Licensee shall promptly notify Licensor of any and
all infringements, imitations, simulations or other illegal use or misuse of the licensed
Licensor IPR which come to its attention. Licensor shall determine whether to take any action
to prevent the infringement, imitation, simulation or other illegal use or misuse of the IPR.
If it elects not to take such action, Licensee may take such action if it has received
Licensor’s prior written approval to take such action. In this event, Licensor shall, at
Licensee’s expense, cooperate in such action with Licensee including, without limitation,
joining as a party. Any money recovered by way of damages or otherwise with respect to such
action shall be kept by the Party which bore the costs of such action; or, in any case where
the Parties have shared the costs, such money shall be shared in proportion to the costs borne
by each Party. Licensee shall render Licensor all reasonable

3.

 

	 	 	assistance in connection with any matter pertaining to the protection, enforcement or
infringement of the licensed Licensor IPR, whether in the courts, administrative or
quasi-judicial agencies, or otherwise.
	 
	3.2	 	No Warranty. ANY AND ALL LICENSOR KNOW-HOW AND TECHNICAL SUPPORT IS PROVIDED BY
LICENSOR TO LICENSEE “AS IS,” AND LICENSOR SHALL HAVE NO LIABILITY WHATSOEVER TO LICENSEE IN
CONNECTION WITH LICENSEE’S USE THEREOF IN ANY MANNER WHATSOEVER. ADDITIONALLY, LICENSOR MAKES
NO REPRESENTATIONS OR WARRANTIES REGARDING WHETHER ANY OF THE LICENSOR PATENTS ARE VALID OR
USEFUL TO LICENSEE.LICENSOR MAKES NO REPRESENTATION, EXTENDS NO WARRANTIES OR INDEMNIFICATION
OF ANY KIND, EXPRESSED OR IMPLIED, NOR ASSUMES ANY RESPONSIBILITIES WHATSOEVER WITH RESPECT TO
THE COMMERCIAL UTILITY OR QUALITY OF ANY OF THE LICENSOR IPR OR TECHNICAL SUPPORT. LICENSOR
DISCLAIMS ALL WARRANTIES, INCLUDING, WITHOUT LIMITATION, ALL IMPLIED WARRANTIES OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE AND NONINFRINGEMENT OF THIRD PARTY
RIGHTS. LICENSOR SHALL HAVE NO OBLIGATIONS OR LIABILITIES UNDER THIS LICENSE AGREEMENT
RELATING TO THE USE BY LICENSEE OF ANY SUCH LICENSOR IPR OR ANY TECHNICAL SUPPORT.
	 
	3.3	 	Limitation of Liability. EXCEPT FOR ALL BREACHES AND VIOLATIONS OF CONFIDENTIALITY
OBLIGATIONS, IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR (I) ANY INCIDENTAL OR CONSEQUENTIAL
DAMAGES, INCLUDING LOST PROFITS OR SAVINGS, RESULTING FROM, ARISING OUT OF OR CONNECTED WITH
THIS LICENSE AGREEMENT OR THE PERFORMANCE OR BREACH THEREOF OR (H) COST OF PROCUREMENT OF
SUBSTITUTE GOODS, TECHNOLOGY OR SERVICES, AND EVEN IF ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES. FOR THE AVOIDANCE OF DOUBT, DAMAGES INCURRED BY VERAZ FROM ECI’S BREACHES OR
VIOLATIONS OF THE LICENSE GRANTS OR EXCLUSIVITY OBLIGATIONS IN SECTION 2.2 OF THIS AGREEMENT
SHALL BE DEEMED DIRECT DAMAGES TO WHICH THIS LIMITATION OF LIABILITY PROVISION SHALL NOT
APPLY.

ARTICLE 4

OWNERSHIP ACKNOWLEDGEMENT

Licensee hereby acknowledges and agrees that Licensor owns the Licensor IPR that is licensed by
Licensor to Licensee hereunder and all rights therein and that nothing in this License Agreement
shall give Licensee any right, title or interest in or to such Licensor IPR, other than the limited
and restricted license granted in Section 2.1 of this License Agreement.

4.

 

ARTICLE 5

GOVERNING LAW; DISPUTE RESOLUTION

	5.1	 	This License Agreement shall be governed by and construed in accordance with the laws of the
State of Israel, regardless of the laws that might otherwise govern under applicable
principles of conflicts of laws thereof.

	5.2	 	In the event of any controversy or claim arising out of or in connection with this License
Agreement, Section 11.5 of the APA shall govern, mutatis mutandis.

ARTICLE 6

MISCELLANEOUS

	6.1	 	The term of this License Agreement shall commence upon the Effective Date and will continue
indefinitely.

	6.2	 	All notices, requests and other communications hereunder shall be in writing and shall be
governed by Section 11.13 of the APA, mutatis mutandis.

	6.3	 	The headings of this License Agreement are included for convenience only, and the articles or
sections shall not be construed in accordance with their headings.

	6.4	 	The Parties hereto agree that the invalidity or unenforceability of any of the provisions
hereof shall not in any way affect the validity or enforceability of any other provisions of
this License Agreement except those from which the invalidated or unenforceable provisions
comprise an integral part or are otherwise clearly inseparable.

	6.5	 	Nothing contained in this License Agreement shall be deemed or construed to constitute or
create among the Parties hereto a partnership, association, joint venture franchise or other
agency.

	6.6	 	This License Agreement establishes the rights, duties and obligations of Licensor and
Licensee with respect to the subject matter hereof.

	6.7	 	This License Agreement is the entire agreement by and among the Parties with respect to this
subject matter, and supersedes all prior discussions, negotiations, communications and
agreements with respect thereto. This License Agreement may be modified only in writing
signed by all Parties hereto. Any purported oral modification of this License Agreement shall
be without any effect whatsoever.

	6.8	 	The failure of any Party to enforce at any time any of the provisions of this License
Agreement shall not be deemed to be a waiver of the right of such Party thereafter to enforce
such provision.

	6.9	 	The obligations of any Party shall be excused to the extent, and for the period during which,
that performance is rendered impossible by strike, fire, flood, earthquake, other natural
disasters, governmental acts, orders or restrictions, or any other reason beyond the
reasonable control of such Party.

5.

 

	6.10	 	Each Party’s performance of this License Agreement, including without limitation the
Licensee’s use of the Licensor Patents and Licensor Know-How shall at all times comply with
all requirements, rules, laws and regulations of all governmental bodies having proper
jurisdiction, and including without limitation any requirements to obtain any licenses under
the export or similar laws applicable jurisdiction, and including without limitation any
requirements to obtain any licenses under the export or similar laws of the United States.

	6.11	 	In the event of any breach or violation of any of the confidentiality obligations, license
grants or license restrictions in Section 2.2, each Party hereby acknowledges and agrees that
the harm suffered by the affected Party would not be compensable by monetary damages alone
and, accordingly, that the affected Party shall, in addition to any other available legal or
equitable remedies, be entitled to seek an injunction or other equitable relief against the
other Party in connection with any breach or violation of any such provisions.

ARTICLE 7

CONFIDENTIALITY

	7.1	 	Licensee acknowledges and agrees that all CONFIDENTIAL INFORMATION of Licensor that Licensee
has obtained prior to Closing or Licensee receives or obtains in the context of this License
Agreement is the confidential proprietary property of Licensor. Except as expressly allowed
herein, the Licensor will hold in confidence and not use or disclose any CONFIDENTIAL
INFORMATION of Licensor for any purpose other than for which it was disclosed and shall
similarly bind all of Licensee’s employees and subcontractors in writing. The Licensee shall
not be obligated under this Article 7 with respect to information that Licensee can document:

	 	(i)	 	is or has become readily publicly available without restriction
through no fault of the Licensee or its employees or agents;
	 
	 	(ii)	 	is required to be disclosed by legal process, court order or
governmental regulations, provided that the Licensee , subject to any such
process, order or regulations, shall furnish notice of any required disclosure
and reasonably assists the Licensor in any effort of the Licensor to limit or
restrict any such disclosure.

	7.2	 	For purposes hereof, CONFIDENTIAL INFORMATION means, without limitation, the Licensor
Know-How and any informative technical material, technical information, know-how, software and
firmware (including all copies derived from material furnished hereunder) of Licensor, whether
written or oral, furnished to or obtained by Licensee that is marked as, or otherwise
reasonably understood by Licensee to be, confidential or proprietary to Licensor.

6.

 

ARTICLE 8

ASSIGNMENT

	8.1	 	This License Agreement and the rights, duties and liabilities of the Parties under this
License Agreement will bind and inure to the benefit of their successors and assigns,
respectively, as permitted pursuant to this Article 8.

	8.2	 	Neither Party may assign, transfer or delegate its rights and obligations under this License
Agreement, either in whole or in part, without the prior written consent of the other Party,
provided, however, that either Party may assign this License Agreement without obtaining such prior
written consent to a successor-in-interest to it that agrees to be bound by all of the terms and
conditions in this License Agreement, in connection with (i) the sale of all or substantially all
of the assets of such Party, (ii) the purchase of all or a majority of such Party’s outstanding
voting shares, or (iii) a consolidation, merger or reorganization of such Party. Any such attempted
assignment or delegation in derogation of the foregoing shall be null and void and without any
legal effect.

IN WITNESS WHEREOF, the undersigned have executed this License Agreement as of the date first above
written in the introductory paragraph hereof.

	 	 	 	 	 
	ECI TELECOM LTD.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Giora Bitan
	 	 
	 

	 	 	 	 
	Name: Giora Bitan	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	VERAZ NETWORKS LTD.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Zamir Segev	 	 
	 

	 	 	 	 
	Name: Zamir Segev	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 

7.

 

LIST OF APPENDIXES:

Appendix 1.3: Licensor Know-How

Appendix 1.4: Licensor Patents

Appendix 1.7: Licensee Products

Appendix 2.3: Specified Patents

8.

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