Document:

Exhibit
10.8

 

MITEL®
authorizedPARTNER Agreement

Contract No.

 

INTRODUCTION.
This Mitel authorizedPARTNER
Agreement (together with all Schedules attached hereto and/or incorporated by
reference herein) is entered into this 28 day of September,2007
by and between Mitel Networks, Inc.,
a Delaware corporation, with
its corporate headquarters located at 205 Van Buren Street, Suite 400,
Herndon, Virginia 20170-5344 (hereinafter referred to as “Mitel”), and Xeta
Technologies. Inc doing business as Xeta Technologies, Inc a(n) Corporation
organized under the state of Oklahoma, with its principal place of
business located at 1814 W Tacoma St., Broken Arrow. OK hereinafter
referred to as “AP”. For avoidance of doubt, the use of term authorizedPARTNER
(“AP”) in this AP Agreement shall not be construed to mean that a partnership
has been created between the parties.

 

PURPOSE
CLAUSE. Mitel is continually
engaged in the research and development of state of the art communications
solutions, and it desires to appoint certain quality APs to market, sell,
install, and maintain certain of its leading edge products in a way that meets
Mitel’s highest standards in order to enhance the goodwill of Mitel’s name and
of its product lines in the marketplace.

 

NOW
THEREFORE, in consideration of the
mutual covenants flowing by and between the parties hereto, the parties,
intending to be bound, hereby agree, in writing, as follows:

 

1.                                    MITEL APPOINTS AP.

 

1.1                               Appointment. Mitel hereby appoints Xeta Technologies, Inc as an authorizedPARTNER to purchase and market, sell, lease, install and maintain
certain versions of its Mitel brand communications solutions (hereinafter “PRODUCTS”)
which appear on the level appropriate Mitel U.S. Price List provided to you on
a strictly confidential basis via Mitel’s password protected Mitel Online site
(“MOL”). Such price list is incorporated by reference herein. Mitel will update
such Mitel U.S. Price List on a regular basis. It is the responsibility of the
AP to periodically review the price list in order to ensure it has current
pricing when providing quotations to end-users. AP also agrees to utilize the
Mitel pricing tools provided to AP for quality control purposes subject to
applicable terms and conditions, disclaimers and warnings regarding its utilization.
AP agrees that it must make sure the pricing is current before submitting a bid
and AP agrees that the configuration it chooses must be properly customized by
AP for its own end-user customer’s particular needs. Certain PRODUCTS will be
sold and/or licensed to AP directly from Mitel in accordance with Mitel policy
(contained on MOL) while other PRODUCTS will be sold and/or licensed to AP
through Mitel Authorized Wholesalers (e.g., Graybar Electric Company and
EMBARQ). Mitel will honor quotes for PRODUCTS based on the U.S. Price List in
effect at the time of the quote for a period of sixty (60) days from the date
of the quote PROVIDED that AP furnishes a copy of the quotation to Mitel
clearly indicating that the quote was made prior to the change in the U.S.
Price List.

 

1.2                               Sales to End-Users Only. AP agrees to sell or sub-license (in the case of software)
PRODUCTS only to its own end-user customers for installation and use in the
United States of America (U.S.). AP also agrees not to export PRODUCTS from the
U.S. AP also agrees not to transship or otherwise sell to wholesalers or other
authorizedPARTNERS, interconnects or brokers of communication solutions
(whether authorized resellers of Mitel or otherwise and whether in the U.S. or
otherwise) without the prior express written consent of an Officer of Mitel.

 

1.3                               Non-exclusive. This appointment by Mitel is non-exclusive. Mitel expressly
reserves the right, in its reasonable discretion, to appoint other APs or enter
into Sales Agency Agreements, or to enter into Dedicated Account Agreements, as
well as to sell direct (including via national account programs), and through
manufacturer’s representatives or through OEM Distributors on a branded or
non-branded basis, or on a two tier basis all as it sees fit, from time to time
hereafter. Mitel also reserves the right, in its reasonable discretion, to
develop new channels of distribution through which certain PRODUCTS may be best
sold including but not limited to distributing through CLECs, ILECs, ISPs, Carriers,
System Integrators, and Master Distributors. Access to such channels will be
based on meeting certain standards as set by Mitel from time to time in its
reasonable discretion. Mitel also reserves the right to distribute PRODUCTS in
open distribution.

 

1.4                               Ethically Promote Products. AP agrees to use its best efforts to legally and ethically
promote the marketing, sale, licensing, installation, servicing, and
maintenance of all PRODUCTS in a manner designed to promote the good will of
Mitel and avoid inappropriate channel conflict. AP also understands and agrees
to the implied covenant of good faith and fair dealing, as well as, agreeing to
abide by fair trade practices with respect to the purchase and sale of Mitel
PRODUCTS and the provision of services for such. AP likewise agrees not to
defame or falsely disparage the products or services of another supplier or
encourage an end-user to breach or dishonor a contract it may have with a
competitor of AP.

 

2.                                    TERM. This
Agreement will commence upon execution by Mitel after AP has duly signed and
returned such to Mitel. It will continue until April SO”(1) of the
fiscal year in which the agreement was signed, and then from year to year
thereafter unless either party shall give prior written notice to the other on
or before March 1st of a given term to the effect that the contract will
be terminated and not renewed as of April 30th of that year. This
Agreement may also be terminated in accordance with the provisions of paragraph
number 14 entitled “Termination” found hereinbelow. Unless otherwise stated
herein, “year end” or “fiscal year end” shall be April 30th and a number
of “days” shall be considered as calendar days. For financial accounting
purposes it is understood that Mitel’s fiscal month-end is the last day of each
month.

 

3.                                    TERRITORY.

 

                                              3.1                                 U.S. AP
shall be permitted to distribute Mitel PRODUCTS anywhere in the U.S. (defined
as its fifty states, the US Virgin Islands, Puerto Rico and Guam) so long as AP
is able to service what it sells, with Mitel certified technicians, that are
certified on the PRODUCT (including software level) being installed. AP may
conduct limited sales to its customers located within Canada provided that AP
executes a Limited Export Addendum for each Canadian customer, a blank copy of
which is attached hereto in Schedule B for reference, listing the customer and
the location, and agreeing to the terms therein regarding AP’s responsibility
for compliance with ail laws including, but not limited to, export laws. Such
Canadian customer must be within fifty (50) miles of the U.S. border. AP agrees
to submit each Limited Export Addendum to Mitel for approval. Mitel may, in its
sole discretion, accept or reject the Limited Export Addendum submitted by AP.

 

                                              3.2                                 Advertising. To the extent AP chooses to promote Mitel PRODUCTS via a web
site on the internet or via a national and/or regional publication (e.g., The Wall Street Journal (national or regional edition) or
Telecom Gear), AP agrees to place the
following statement in a prominent, conspicuous location on all web site and/or
newspaper and/or magazine pages promoting or referring to Mitel PRODUCTS,
in no less than ten (10) point type and in all caps as follows: “THIS
PROMOTION OF MITEL PRODUCTS IS NOT INTENDED AS A SOLICITATION OF ANYONE LOCATED
OUTSIDE OF OUR SERVICE AREA WHICH IS (at this point insert a description of the
geographic area in which you are able to service what you sell)”. Should AP
wish to advertise PRODUCT pricing via their web site, or otherwise, AP shall
comply with Mitel’s Advertising Policy (a true copy of which may be reviewed on
MOL).

 

4.                                    MITEL’S OBLIGATIONS TO AP.

 

4.1                               Mitel agrees to offer a marketing program to the AP based on
AP’s accredited level within Mitel’s authorizedPARTNER program. Mitel agrees to
provide thirty (30) days notice of any changes to the program via MOL and/or
other written or email notification.

 

4.2                               Manufacture and Supply of Mitel Products, Accessories, and
Spare Parts. Mitel agrees to use
commercially reasonable efforts to provide AP with PRODUCTS in sufficient
quantities to facilitate AP’s reasonable needs. Mitel will supply certain
PRODUCTS direct to AP and will supply certain other PRODUCTS through its
Authorized Wholesalers, subject to the right to change its method of
distribution, as it deems appropriate from time to time.

 

4.3                               Non-Disclosure of Confidential Information. Mitel agrees to use commercially reasonable efforts to
prevent the disclosure of or unauthorized use of any proprietary information
provided to Mitel by AP in compliance with the terms of this Agreement. Mitel
acknowledges that the parties have previously executed a stand-alone
confidentiality agreement on June 22, 2007 (the “NDA”) which is
incorporated herein by reference. Mitel agrees that any confidential and/or
proprietary information provided by AP to Mitel shall be subject to the terms
of such NDA and Mitel shall protect the confidentiality, prevent the disclosure
(except pursuant to a government order or subpoena) and limit the use of such
information all in accordance with the terms of such NDA. By this Agreement,
the term of Period of Protection contained within the NDA is hereby amended as
follows: the Period of Protection shall be either three (3) years from the
end of Disclosure Period or shall be the until the date of termination of this
Agreement, whichever occurs later.

 

4.4                               Product Warranty and Software Warranty & License
Agreement. Mitel agrees to provide
AP with its Mitel U.S. Product Warranty (a true copy of which is attached as Schedule A) with
respect to PRODUCTS sold or licensed by Mitel to AP hereunder, and AP agrees to
offer its version of Mitel’s U.S. Product Warranty to its end-users, subject to
including, in concept, Mitel’s material terms and conditions, disclaimers, and
limitations of liability. If Mitel makes any material change to the U.S.
Product Warranty, it will abide the terms of the prior U.S. Product Warranty
for a period of six (6) months from the date of such change. Procedures
and policies for both in and out-

 

	
  APName

  	
   

  	
  © Copyright Mitel Networks, Inc. 2007

  
	
  MITEL authorizedPARTNER
  Agreement – Contract No.

  	
   

  	
   

  

 

1

 

of-warranty
repair services and the Repair Price List shall also be provided via MOL. Mitel
also agrees to provide AP, via MOL, with a separate form of Software Warranty
and License Agreement with respect to Mitel’s Time Division Multiplex and
Integrated Communications Platforms which AP agrees to accept from Mitel and
abide by in all respects, as well as sub-license its end-user customer(s) for
their usage (offering substantially the same terms and conditions).

 

4.5                               Ongoing Technical Support and Field Services. Mitel agrees to provide ongoing technical support, including
necessary field services, to AP at then current rates, plus reasonable costs
for transportation, lodging, and meals. If the Mitel PRODUCT being installed is
defective, Mitel agrees at no cost to AP to either replace such defective.
PRODUCT and/or, in Mitel’s sole discretion, provide field services to AP. From
time to time, Mitel may introduce Release Levels of software, which improve the
capability of and/or disseminate generic corrections to Mitel software. When
these new Release Levels are made commercially available, they shall be
provided electronically via download from MOL to the extent AP has purchased
the appropriate software download kit from Mitel to enable AP to so proceed.
Otherwise Mitel will provide the correction at nominal cost (shipping/handling)
to AP if the new Release Level is of a corrective nature. If, however, new
features are incorporated in addition to operational corrections and/or if the
Release consists solely of new features or functionality, then AP will still be
provided with the corrections as aforesaid, but said new features or functionality
will be made available to AP at the then current AP price for such new features
or functionality. Mitel reserves the right to give thirty (30) days prior
written notice that it will no longer provide out-of-warranty after market
technical support to a particular PRODUCT and/or Release Level. Notwithstanding
the foregoing, Mitel will provide the foregoing cancelled out-of-warranty after
market technical support for an additional thirty (30) days past the
aforementioned thirty (30) day notice period. In utilizing the electronic
software download feature via MOL, AP agrees to read and be bound by the
applicable terms and conditions, disclaimers and warranty information posted on
the pertinent web page associated with the particular software being
downloaded.

 

4.6                               Discounts. Mitel agrees to afford discounts (Volume, Functional and
otherwise) to AP all as per Mitel’s published guidelines on MOL. AP understands
that Mitel reserves the right on a quarterly basis to review the purchases of
the AP. Based on the findings, Mitel may adjust the discount provided to the
AP. Mitel agrees to afford discounts to AP should it meet the pertinent
criteria for such. Mitel also reserves the right to adjust and/or modify and/or
cancel the Discount Program for the entire channel, upon providing thirty (30)
days prior written notice but AP shall have the right to terminate this
Agreement by giving Mitel thirty (30) days prior written notice in return if it
does not accept such change and its election to terminate shall be its sole and
exclusive remedy.

 

4.7                               Bonding. Mitel, at its sole discretion, may provide AP with bid and
performance bonding services in appropriate instances with a minimum lead time
of ten (10) business days. It is agreed that AP will reimburse Mitel (or
Mitel may set-off against any credits owed AP) for costs of such services
(including bond premiums). AP agrees to timely follow Mitel’s rules and
regulations in applying for and implementing such bonding.

 

5.                                    AP’s OBLIGATIONS  TO
MITEL.

 

5.1                               Payment. AP agrees to timely pay for Mitel PRODUCTS ordered under
the Agreement. Terms of payment shall be net thirty (30) days from date of
invoice and shipment by Mitel. All amounts which are more than fifteen (15)
days past due shall accrue interest from the due date at a rate equal to the
lesser of one and one half percent (1.5%) per month or any part of a month
(eighteen per cent (18%) per annum) or the highest rate allowed by applicable
state law.

 

5.2                               Promote Mitel Products and Usage of Mitel Name. In
consideration of AP’s appointment AP agrees to use commercially reasonable
efforts to actively promote, market, sell, and service Mitel PRODUCTS in all
instances where Mitel offers a competitive communications solution having the
features and functionality desired by AP’s end-user. Notwithstanding the
foregoing, Mitel agrees and acknowledges that AP is free to sell products
manufactured by competitors of Mitel. AP shall not use the name Mitel Networks
or any of its brand names or trademarks in its own name and/or tradename (actual
or fictitious) or as part of its URL or internet domain name or in an “800”
type toll free number without the prior express written consent of Mitel. AP,
likewise, agrees to conform to the Lanham Act, as well as Federal Trademark and
Copyright Law when engaging in such permitted usage. AP also agrees to comply
with the Mitel Networks Corporate Identity Guidelines as found on MOL.

 

5.3                               Use Only Certified Technicians and Maintain
Certifications. AP agrees that each and
every installation of PRODUCT shall be directly supervised and approved by a
Mitel certified technician with the requisite certifications for the particular
PRODUCT involved. AP agrees that technician shall be certified by Mitel or a
Mitel Certified Training Partner (at AP’s expense) as meeting the minimum
standards necessary to install and maintain the particular PRODUCT in question,
in accordance with Product Learning Maps published on MOL. AP agrees to
maintain a sufficient number of trained sales executives and trained
technicians in accordance with the certification requirements provided on MOL.
Should an AP only be certified for sales, the AP agrees to partner with Mitel
or a properly certified AP to provide technical services as required herein.

 

5.4                               Limit Claims to Written Specifications. AP
agrees to limit its claims and representations concerning PRODUCTS to those in
conformity with Mitel’s published written specifications and/or Mitel produced
marketing collaterals. AP agrees not to misrepresent the features,
functionality or capacity of Mitel PRODUCTS.

 

5.5                               Security Interest/Set-off. AP
hereby grants to Mitel a purchase money security interest in all Mitel PRODUCTS
for which Mitel has not been timely paid, either now possessed by AP or
hereafter acquired by AP, pursuant to this Agreement (the “collateral”). AP
hereby authorizes Mitel to sign for it, as its attorney-in-fact, and to file
U.C.C. 1 Financing Statements with respect to the collateral after giving five (5) days
prior written notice to AP but only in instances where Mitel feels reasonably
insecure regarding the extension of credit. AP, likewise, grants a right of
set-off to Mitel regarding any monies owed by Mitel to AP.

 

5.6                               Supply Financial Information. AP agrees to provide financial information (balance
sheet/profit and loss statement) to Mitel upon application to become an AP and
on a periodic basis as requested by Mitel from time to time.

 

5.7                               Protect Proprietary Information. AP agrees to protect Mitel proprietary and/or confidential
information and not to disclose such to others or use such except for the
purposes of this Agreement. Upon termination, AP likewise agrees not to utilize
such information in a way that is not in the best interests of Mitel. AP also
understands and agrees that this contract itself, along with its Schedules
(including those reflected via MOL) is confidential information.

 

                                              5.8                                 Provide Warranty. AP agrees to provide a substantially similar version of Mitel’s
U.S. Product Warranty, attached hereto and incorporated by reference herein as Schedule A, to and
in favor of its customer(s), including AP’s version of Mitel’s disclaimers and
limitations of liability. AP agrees to incorporate its version of said warranty
along with the material terms, disclaimers, and limitations of liability of
said warranty in its written agreement with its customer(s). AP also agrees to
provide its customers, at no charge to Mitel, with the warranty service
inherent in honoring the aforesaid Mitel warranty and/or in providing the
services as stated in paragraph 4.4, above.

 

5.9                               Indemnification. AP agrees to indemnify, defend, and hold Mitel harmless from
any and all costs, expenses, damages or liabilities arising against Mitel by a
third party as a result of a material breach of this Agreement by AP or as a
result of negligent acts or omissions of AP in performing hereunder. Mitel
likewise agrees to indemnify, defend and hold harmless AP from any and all
costs, expenses, damages, or liability arising to AP from a material breach by
Mitel of the terms and conditions of the Mitel Product Warranty, or the
negligent acts or omissions of Mitel in performing hereunder to the extent such
negligence causes personal injury, death or property damage to occur.
Notwithstanding the foregoing, neither party shall be obligated to indemnify the
other for indirect or consequential damages based either in contract or tort.

 

5.10                        Purchases from Mitel. AP agrees that it will procure all its new and/or unused
PRODUCTS as well as all refurbished and/or remanufactured PRODUCT (to the
extent not already manufacturer discontinued) solely and directly from Mitel
itself and/or from an Authorized Wholesaler of Mitel. AP agrees to disclose to
its customer the extent to which any system or components are used. AP agrees
not to transfer used Mitel software without abiding with the CONDITIONS
CONCERNING RESTRICTIONS ON USE OF SOFTWARE (see Schedule A attached).
Mitel will not unreasonably withhold its consent to transfer software so long
as the transferee agrees to execute and abide by an acceptable sublicense and
so long as the transferor agrees to comply with Mitel’s Software Re-Licensing
Policy (a true copy of which may be reviewed on MOL). In no event, however, may
AP substitute new or unused software in a used and/or refurbished system
without first obtaining Mitel’s prior express written consent and without
conspicuously disclosing to the end-user, in writing, whether or not the system
is “like new”, used, or otherwise.

 

5.11                        Data Network Assumptions/Duty to Develop. AP agrees to develop a mutually agreeable written schedule
with its customer that depicts the data network that Mitel PRODUCTS are
expected to interface with and be compatible with that its customer either
already has in place or will have in place before the installation of Mitel
PRODUCTS to include its specific cabling, equipment and characteristics as well
as whether or not any upgrades are necessary to be implemented (e.g., increased
robustness/memory or other necessary improvements). It would also behoove AP to
place in its contract with its customer a requirement that any technician labor
costs expended by AP in diagnosing problems caused by any misrepresentation
with respect to the said network be reimbursed.

 

5.12                        Product Data. AP agrees, upon request by Mitel, to provide end user PRODUCT
data (e.g. customer contact information, lists of equipment sold to customers,
and locations where Mitel equipment was sold).

 

6.                                    PRICE, ORDER ENTRY, AND SHIPMENT TERMS AND CONDITIONS.

 

6.1                               Prices. Prices
for PRODUCTS and offered Services shall be as found in the U.S. Mitel Price
List which can be found on MOL. Mitel reserves the right to make any desired
changes to said list by giving thirty (30) days prior written notice to AP.

 

2

 

Prices
charged for PRODUCTS that are purchased by AP from a Mitel Authorized
Wholesaler shall be as set from time to time by such wholesale distributor.

 

6.2                               Purchase Orders. AP agrees to place orders on Mitel by Purchase Order for all
PRODUCTS and Services to be ordered directly from Mitel hereunder. All such
Purchase Orders shall be issued by AP in accordance with the Mitel ordering
process: (i) as detailed on MOL or upon request of AP and (ii) in
effect at the time the Purchase Order is issued by AP. Mitel reserves the right
to reject any Purchase Order, in whole or in part, or fail to ship an accepted
order should it feel insecure in AP’s ability to pay. Mitel also reserves the
right to impose a minimum purchase amount per order of Three Hundred Dollars
($300) before taxes and net of all discounts or reductions. Mitel also reserves
the right to allocate production as may be necessary from time to time.

 

6.3                               Sales Acknowledgement. Mitel will transmit an acknowledgment of the Purchase Order
by electronic means. The acknowledgment incorporates by reference Mitel’s
standard Sales Acknowledgment, a true copy of which is available via

 

3

 

MOL.
AP agrees that the terms and conditions of said Sales Acknowledgment shall take
precedence over the Purchase Order in the event of a conflict, and that this
Agreement shall prevail in the event of a conflict between it and either the
Purchase Order or said Sales Acknowledgment.

 

6.4                               Invoices. Mitel
shall issue invoices to AP for Mitel PRODUCT shipped to it hereunder which
shall be due and payable thirty (30) days from that date. AP shall pay to Mitel
the full amount of the invoice on or before its due date. AP shall be afforded
a one percent (1%) prompt pay discount to the extent Mitel receives payment within
fifteen (15) days of invoice date. AP’s obligation to pay and Mitel’s right to
receive same shall be absolute and unconditional and not subject to reduction,
set-off or abatement. If, at any time, in Mitel’s judgment, AP’s financial
condition and/or payment record makes Mitel feel insecure, Mitel may deny the
further extension of credit, place AP on “credit hold”, require C.O.D. terms or
otherwise.

 

6.5                               Invoice Errors. AP shall notify Mitel within twenty (20) days from receipt of
invoice of any errors on the invoice. Mitel may grant an extended payment term
of ten (10) business days on the portion of the invoice which is in
dispute; the remainder of the invoice shall be timely paid notwithstanding the
extension.

 

6.6                               Arrears. Mitel
reserves the right to refuse to accept or process Purchase Orders from AP when
its account with Mitel is in arrears, and AP hereby grants unto Mitel a lien on
any PRODUCT being repaired for it by Mitel until AP’s account with Mitel is
brought current.

 

6.7                               Taxes. AP
shall pay all taxes, levies or duties now or hereafter imposed on the
importation and/or sales of goods or rendering of services with respect to
Mitel PRODUCTS or services unless it has first provided Mitel with a properly
completed applicable state sales tax resale or exemption certificate, which
then must be referenced on all Purchase Orders.

 

6.8                               Returns. AP
may, in Mitel’s reasonable discretion, return unused Mitel PRODUCT, if that
type of PRODUCT is still in production, subject to a reasonable restocking
charge at Mitel’s then current rate (which is currently twenty percent (20%) of
Net Price) and subject to the following: Returns for credit must be returned
within thirty (30) days of shipment and must be in unopened factory sealed
packaging. Mitel does not accept the return of software or software options.

 

6.9                               Shipping Terms and Insurance. AP recognizes and agrees that all prices shall be FCA Canada
at warehouse shipping point or FCA U.S. at warehouse shipping point, as
applicable and as solely determined by Mitel in each instance (“shipping point”).
The specific Canadian or U.S. shipping point locations are available upon
request by AP. Prices do not include any taxes or charges for insurance or
freight, all of which are the obligation of AP. Risk of loss shall be
transferred to AP upon delivery to the carrier at the shipping point. Mitel
shall retain a security interest pursuant to the Uniform Commercial Code until
payment is made. AP agrees to insure PRODUCT purchased hereunder from the point
of receipt by carrier at the shipping point until an accepted installation at
customer’s site has been achieved, against loss by fire, theft or other
casualty, as well as to maintain errors and omissions, product liability and
public casualty liability insurance covering the sale and installation of the
Mitel PRODUCT. Such insurance shall be in amounts acceptable to Mitel, and AP
agrees to provide Mitel with a true copy of a certificate of insurance
evidencing such coverage upon Mitel’s request.

 

7.                                    DELIVERY, RISK OF LOSS, TITLE, INSPECTION, AND CANCELLATION.

 

7.1                               Delivery. Mitel
shall use commercially reasonable efforts to meet any reasonable delivery date,
but Mitel does not guarantee delivery by that date; and Mitel shall not be
liable to AP or any third-party (including, but not limited to, customer) for
any loss or damage, whether direct, special, collateral, incidental,
consequential or otherwise arising from any failure to ship any Mitel PRODUCTS,
or any delay or errors in such shipment, regardless of notice to Mitel of the
possibility of such loss. Each shipment shall be considered an independent and
separate transaction, and payment, therefore, shall be made accordingly.

 

7.2                               Risk of Loss. Risk of loss shall pass to AP upon delivery of the PRODUCT to
the carrier at the shipping point.

 

7.3                               Inspection. Within
twenty (20) days following date of shipment AP agrees to inspect the PRODUCTS
ordered and shall promptly notify Mitel, in writing, of any discrepancies or
damages. Failure to timely notify Mitel shall be conclusive proof that the
PRODUCTS were received by AP as ordered and in good condition.

 

7.4                               Cancellation. AP may cancel any or all portions of a Purchase Order upon a
minimum of thirty (30) days prior written notice to Mitel in advance of the
requested ship date. In the event Mitel ships any or all portions of a Purchase
Order prior to receipt of the cancellation notice, then the purported
cancellation notice shall have no force or effect. In the event AP cancels any
or all portions of a Purchase Order within thirty (30) days of requested ship
date, AP agrees to pay a cancellation charge equal to twelve percent (12%) of
the AP’s cost of the item(s) canceled, as liquidated damages, and not as a
penalty.

 

8.                                    THIRD-PARTY PRODUCT WARRANTIES, LICENSES. Mitel agrees to pass through to AP and honor in all respects
any warranty provided by a third-party on products ordered hereunder that are
not manufactured by Mitel; such product warranties shall likewise be subject,
at a minimum, to the disclaimers and limitations of liability as stated in the
Mitel U.S. Product Warranty. AP accepts all such express limited warranties
(from either Mitel or from a third-party) as its sole and exclusive remedy for
defects in Mitel

 

PRODUCT
(including product procured from a third-party by Mitel, as aforesaid) and
agrees to the terms and conditions, disclaimers, and limitations of liability
thereof.

 

9.                                    CHANGES TO PRODUCT SPECIFICATION; MANUFACTURER
DISCONTINUANCE. Mitel reserves the right
to make changes in the design or construction of any of its products as it
deems necessary or desirable. Mitel will make a reasonable effort to provide
prior notification to AP of said changes. AP agrees that Mitel shall incur no
obligation to make any changes whatsoever on PRODUCTS previously sold hereunder
nor shall any changes create any implications whatsoever that any part
manufactured or furnished without such changes is in any way defective. Mitel
further agrees to provide reasonable notice, at least sixty (60) days in
advance, of its intent to discontinue the manufacture of a PRODUCT and AP
understands and agrees that Mitel may do so in its sole discretion. Following
the aforementioned sixty (60) days notice, Mitel shall reasonably endeavor to
provide AP with remaining stocks of manufacturer discontinued PRODUCTS for an
additional thirty (30) days, but AP acknowledges that this is subject to
availability of said products. Should a PRODUCT be manufacturer discontinued
Mitel shall have no duty relating to such PRODUCTS beyond that stated in the
discontinuation notice with respect to Post Termination Rights afforded AP (see
section 14.7, below).

 

10.                             SOFTWARE LICENSE, PROCESS. Mitel hereby grants to AP a non-exclusive, paid-up license to
use Mitel copyrighted software subject to the terms and conditions concerning
restrictions on use of software as stated on Schedule A, attached,
and AP agrees to abide by the terms and conditions of such. AP also agrees to
enter into a written sub-license agreement with its customer regarding the use
of Mitel copyrighted software. AP agrees that such sub-license shall
incorporate the essential material terms and conditions of the Mitel software
license. AP recognizes and understands that it receives no license from Mitel
should it purchase new or unused software from a third party (except from Mitel
Authorized Wholesalers) and AP agrees not to deal in such unlicensed software.
AP also agrees to abide by Mitel’s Software Re-licensing Policy with respect to
any handling of used software. Furthermore, Mitel reserves the right from time
to time to distribute its software via MOL and to the extent AP downloads such
for its business purposes it agrees to abide by the Software License contained
herein in all respects. Likewise, AP agrees that NO ADDITIONAL WARRANTY is
offered by Mitel on software updates or maintenance releases and that such are
provided “AS IS/WHERE IS”.

 

11.                             PATENT AND TRADEMARK INFRINGEMENT.

 

11.1                        Mitel’s Responsibilities To Defend. Mitel shall indemnify, defend and otherwise hold AP harmless
from all cost, loss, damage or liability (excluding consequential damages to
AP) arising from any proceeding brought against AP, to the extent such
proceedings are based on a claim that PRODUCT furnished by Mitel under this
Agreement constitutes an infringement of any U.S. or Canadian patent, trademark
or copyright or which is alleged to be a trade secret of a third party. Mitel
shall defend any suit alleging such infringement which is brought against AP or
any of its customers, and shall pay all costs and expenses incurred and satisfy
all judgments and decrees against AP in such actions or suits, so long as AP
notifies Mitel, in writing, within ten (10) business days of the date any
such claim becomes known to AP, so long as AP makes no admission concerning the
claim, allows Mitel to control the defense of such claim, and AP provides such
assistance and cooperation to Mitel as is reasonably requested.

 

11.2                        Mitel’s Options. In the event AP or its customers are enjoined from their use
of PRODUCTS due to a proceeding based upon any infringement of any U.S. or
Canadian patent, trademark, copyright or trade secret, Mitel shall have the
following options:

 

(i)                                     Promptly render the PRODUCT non-infringing and capable of
providing services as intended; or

(ii)                                  Procure for AP the right to continue using the PRODUCT; or

(iii)                               Replace the PRODUCT with non-infringing goods capable of
providing services as intended; or

(iv)                              In the event that none of the foregoing options is available,
remove the PRODUCT and refund the purchase price thereof less depreciation for
use, if any.

 

11.3                           LIMIT OF MITEL’S LIABILITIES. THE FOREGOING CONSTITUTES THE ENTIRE LIABILITY OF
MITEL WITH RESPECT TO INFRINGEMENT OF PATENTS, TRADEMARKS, COPYRIGHTS, AND
TRADE SECRETS FOR PRODUCTS PURCHASED PURSUANT TO THIS AGREEMENT. SUCH LIABILITY
DOES NOT INCLUDE CONSEQUENTIAL, SPECIAL OR PUNITIVE DAMAGES TO AP, SUCH AS,
WITHOUT LIMITATION, LOSS OF ACTUAL OR PROSPECTIVE 

 

4

 

PROFITS, OR LOSS OF USE, ALL OF WHICH ARE HEREBY EXPRESSLY DISCLAIMED.

 

11.4                           NO LIABILITY. NOTWITHSTANDING ANYTHING TO THE CONTRARY HEREINABOVE
MITEL SHALL HAVE NO LIABILITY FOR ANY CLAIM OF INFRINGEMENT WHICH IS BASED
UPON:

 

(I)                                    USE OF THE PRODUCT OTHER THAN IN ACCORDANCE WITH
APPLICABLE WRITTEN SPECIFICATIONS PUBLISHED BY MITEL;

(II)                                USE OF THE PRODUCT OTHER THAN IN A MANNER FOR WHICH
THE PRODUCT WAS INTENDED TO BE USED;

 

5

 

 

III)                                USE, OPERATION OR COMBINATION OF THE PRODUCT WITH
OTHER NON-MITEL PRODUCTS IF SUCH CLAIM OF INFRINGEMENT WOULD HAVE BEEN AVOIDED
BUT FOR SUCH USE, OPERATION OR COMBINATION; AND

(iv)                              TO THE EXTENT A THIRD-PARTY LICENSE IS NECESSARY IN
ORDER TO IMPLEMENT A PARTICULAR APPLICATION TO BE UTILIZED BY AP’S END-USER, AP
AGREES TO PROVIDE SUCH OR HAVE END-USER OBTAIN SUCH AND MITEL SHALL HAVE NO
LIABILITY TO AP FOR CONTRIBUTORY INFRINGEMENT AND/OR INDUCEMENT TO INFRINGE.

 

12.  INDUSTRIAL AND TRADE SECRETS.

 

12.1                      AP Acknowledgment. AP acknowledges that Mitel has developed and used valuable technical and
non-technical information, patents, copyrights, trade secrets, confidential
information, and the like in the development of the PRODUCTS. AP  shall use its best efforts to ensure that neither it
nor any of its employees will convert to their own use or to the use of any
other party any industrial secrets, copyrights, trade secrets, patents,
manufacturing or other processes (confidential information) or the like, owned
by Mitel, that is obtained by AP  by reason of this Agreement or otherwise. AP  agrees to use the same degree of care in protecting
such information as it would use in protecting its own trade secrets.

 

12.2                      AP’s Responsibilities And Limitations. Any confidential information of a proprietary
character, as aforesaid, shall be clearly and conspicuously marked by each
party as proprietary or confidential information or otherwise under a
Non-Disclosure Agreement. Neither party shall be liable to the other for
disclosure or use of such information marked as proprietary information as
provided above which:

 

(i)                                   Is or becomes legally available to the public from a
source other than Mitel before or during the period of this Agreement;

(ii)                                Is released in writing by Mitel to the general
public;

(iii)                             Is at any time developed by the other party
completely independent of any such disclosure or disclosures.

 

12.3                      No License Implied. Except as expressly stated in this Agreement, no
license is granted to AP  from Mitel by merely entering into this Agreement.

 

13.                             INDEPENDENT CONTRACTORS. AP’s officers, employees or agents shall not be deemed to be officers,
employees or agents of Mitel, and AP  shall not represent that its relationship with Mitel
is other than that of an independent contractor. Nothing in this Agreement
shall create in either party any right or authority to incur any obligations on
behalf of, or to bind in any respect, the other party. The parties hereto agree
that the arrangement created by this Agreement is not in the nature of a
franchise or agency. AP  agrees that there is no required payment to become a Mitel AP  and the purchase of any offering from Mitel is
solely to promote PRODUCTS  and/or for the purpose of acquiring PRODUCTS  for resale.

 

14.                             TERMINATION.

 

14.1                      Acknowledgment Of Mitel’s Marketing Needs. AP  fully understands the business necessity for Mitel
to retain flexibility in Mitel’s methods of selling, marketing, distributing,
installing, maintaining, and servicing its PRODUCTS, as well as the need to maintain the good will of Mitel. Accordingly, AP expressly recognizes the valid business need for,
and agrees to, the termination provisions set forth below.

 

14.2                      Termination Provisions. This Agreement may be terminated by Mitel, in its
entirety, with ten (10) business day’s prior written notice by first class  U.S. mail, courier, ore-mail in the event:

 

14.2.1.           Insolvency Or General Assignment For Creditors. AP becomes bankrupt or insolvent; the filing by AP of a petition in bankruptcy; the making of an assignment for the benefit
of creditors by  AP; the appointment of a receiver or trustee for AP or for any assets of AP; or the institution by or against  AP of any other type of insolvency. The term insolvent
shall mean either: inability of AP to pay its bills as they mature or total liabilities exceed total assets.
All calculations shall be determined in accordance with generally accepted
accounting principles; or

 

14.2.2.           Breach Of Representations And Warranties. AP breaches any of its material representations and warranties or (except as
provided in 14.2.3 below) any other term or obligation of this
Agreement and fails to cure such within thirty (30) days of receiving written notice from Mitel regarding same in the event
the breach is capable of being cured; or

 

14.2.3.           Failure To Pay. AP fails to pay in full all amounts due Mitel within sixty  (60) days of invoice (not including invoices about which
there is a reasonable dispute) except as expressly provided for under the terms
and conditions of this Agreement or if Mitel, in good faith, believes and has
commercially reasonable grounds to believe that the prospect of payment is or
is about to become impaired; or

 

14.2.4.           Attempt To Assign Or Transfer. AP attempts to assign or transfer its rights or delegate, transfer or
subcontract its obligations under this Agreement to a third party without the
prior written consent of Mitel; or

 

14.2.5.           Change Of Business Nature, Ownership Or Control. AP notifies Mitel or Mitel becomes aware that there is a material change in
the nature or ownership of AP or its parent or change of control of AP  or its parent during the term of  this
Agreement including, but not limited to, any change in which a competitor of

 

6

 

14.2.6.           Mitel becomes financially involved in the business of AP or
any change in which a majority of the stock or substantial portion of the
assets of AP are transferred in a transaction; or

 

14.2.7.           Termination For Convenience. Either party may, upon the giving of ninety (90) days prior
written notice, terminate this Agreement for its convenience without incurring
any liability to the other except the obligation to meet all duties arising
prior to said termination, as well as adhere to those obligations which by their
inherent nature are intended to survive termination.

 

14.3                      Post Termination Sales. The acceptance by Mitel of any Purchase Order from AP or the
sale of any PRODUCTS by Mitel to AP after the expiration and/or termination of
this Agreement shall not be construed as a renewal or an extension, or as a
waiver of termination of this Agreement; but, in the absence of a new written
Agreement, all such transactions shall be specifically governed by the
provisions of this Agreement with regard to the obligations as stated in
paragraphs numbered 5, 6,7, and 8 above as well as sub-paragraph numbers
14.4,14.5,14.6 and 14.7, below.

 

14.3.2.           Upon giving notice of termination, regardless of the reason
for such termination, Mitel reserves the right in its sole discretion to
immediately restrict or prohibit the access of AP to Mitel forums and
confidential information (including but not limited to marketing initiatives).

 

14.4                      Post Termination Rights & Responsibilities. Termination under this Agreement shall not affect the rights
and obligations of the parties concerning orders accepted by Mitel prior to the
effective date of the termination.

 

14.5                      Limitation Of Post Termination Liabilities. Mitel shall not, by reason of the termination, expiration or
non-renewal of the AP Agreement hereby created, be liable to AP for recoupment,
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 goodwill of AP. AP
shall likewise have no such liability to Mitel.

 

14.6                      Obligations After Termination.

 

14.6.1.           Payment To Mitel; Survival Of Obligations. Termination of this Agreement shall not relieve AP of any
obligations to pay Mitel for any amount payable for transactions prior to or
after termination, expiration, or non-renewal, or of the duty to perform as
agreed with regard to paragraphs 5,6 or 7, with reference to PRODUCTS sold by
AP to its end-user customers.

 

14.6.2.           Fulfillment Of Orders. Mite! shall have no obligation to fill any orders for systems
as opposed to spare parts (see 14.7 below), placed by AP after the date of
termination, expiration, or non-renewal of this Agreement, whether previously
quoted or otherwise.

 

14.6.3.           No Post Termination Advertising. AP agrees not to promote, advertise or market Mitel PRODUCTS
or AP’s prior relationship with Mitel post termination.

 

14.7                      Post Termination Support Services. In the event of the termination, expiration and/or
non-renewal of this Agreement, for reasons other than AP’s material breach,
bankruptcy or insolvency, Mitel shall make available to AP, for a period of one
(1) year from the date of such termination, expiration, and/or
non-renewal, spare parts at MLP less twenty-five percent (25%) for IP PRODUCTS,
for TDM PRODUCTS, for Mitel Branded Applications and Small Business Solutions
PRODUCTS. With respect to repair services they shall be offered at list price
(as published from time to time hereafter), along with technical support services
at a reasonable fee (such repair services and technical support, however, shall
only be made available for a period of one (1) year from termination,
expiration or non-renewal). Such availability of spares, repair services and
technical support shall collectively be hereinafter referred to as “support
materials” and shall be those support materials generally available to Mitel’s
APs which would enable said former AP to maintain and support its Mitel
installed base as such existed (site and system) as of the date of termination,
expiration or non-renewal. To the extent a PRODUCT has been manufactured
discontinued (“MD’d”) said AP will be entitled to the rights Mitel announces
upon MD of the PRODUCT pursuant to standard policy. Former AP, in order to be
eligible for these rights agrees to provide Mitel, within thirty (30) days of
the date of termination, expiration, or non-renewal, with a confidential
listing of such installed base. In no event may the former AP purchase systems
for such base, however, nor may it purchase new software releases introduced by
Mitel after said termination, expiration or non-renewal occurs. These support
materials and prices will be listed on your password protected subsection of
MOL for terminated APs and will be sold in accordance with Mitel’s then
standard terms and conditions of sale along with Mitel’s then standard
published express limited warranty subject to its terms and conditions,
disclaimers and limitations of liability. Former AP shall not be eligible,
however, to receive any discounts over and above those defined above for spare
parts or be able to take advantage of any marketing programs or benefits. The
above undertakings by Mitel do not give former AP a right, however, to purchase
new PRODUCTS (including new software releases) added to the Mitel US Price List
after the termination, expiration or non-renewal of this Agreement.
Termination, expiration or non-renewal is also agreed to eliminate the right of
AP to any rebates and/or benefits it would have been eligible for in the
ensuing term or extension of this contract had cessation of the Agreement not
transpired as it did.

 

7

 

15.                             MISCELLANEOUS.

 

15.1                        Force Majeure. Neither Mitel nor AP shall be deemed to be in default of any
provision of this Agreement for a failure in performance resulting from acts of
God or events beyond their reasonable control. Such acts shall include
accidents, civil disturbances, terrorism, strikes, lightning, fires, floods,
earthquakes or other natural catastrophes, or other force majeure events beyond
the reasonable control of such non-performing party.

 

15.2                        Governing Law And Venue. This Agreement shall be governed by the substantive laws of
the Commonwealth of Virginia, and venue is agreed to be in Fairfax County,
Virginia.

 

15.3                        Severability. The provisions of this Agreement shall be deemed severable.
If any provision of this Agreement shall be held to be unenforceable by any
court of competent jurisdiction, the remaining provisions shall nevertheless
remain in full force and effect.

 

15.4                        Headings. All
headings and captions contained herein are for convenience and ease of
reference only.

 

15.5                        Paragraphs. Numbered
or lettered paragraphs, subparagraphs, and schedules contained in this Agreement
refer to paragraphs, subparagraphs, and schedules of this Agreement.

 

15.6                        Notices. Any
official legal notices required to be given to AP may be sent via first class
US mail or courier addressed to the AP’s principal place of business as
indicated in this Agreement. Likewise notices to Mitel may be sent in the same
manner to Herndon, Virginia at 205 Van Buren Street, Suite 400 (zip
20170-5344) in c/o Legal Department. Alternatively, such notices may be sent
via electronic mail or bulletin or via facsimile to the e-mail address provided
to Mitel by the AP.

 

15.7                        Execution. This
Agreement may be executed online via electronic signature.

 

15.8                        Waiver. Any
failure by either party to enforce any right hereunder shall not constitute a
waiver of such right. Each party may waive its rights hereunder only by
execution of a written instrument expressly waiving such right.

 

15.9                        Intent. It is
the intent of the parties to create a binding, legally enforceable contract as
to all items discussed herein.

 

15.10                 Government Compliance. Each party agrees to comply with the F.C.C. rules and
regulations, with the provisions of the Fair Labor Standards Act of 1938, as
amended, the Federal Occupational Safety and Health Act (OSHA), as amended, the
Federal/Hazardous Substances Act and with any other Federal, State, County or
Municipal rules, regulations, and codes, including those pertaining to packing
and shipping, and to obtain any and all required licenses, permits and
certificates. Each party agrees to indemnify the other for any loss or damage
sustained because of their respective noncompliance with this representation.

 

15.11                 Consequential Damages. Except as provided in Section 11 of this Agreement, in
no event shall either party be liable to the other or to any third-party for
special, incidental, indirect, or consequential damages (including, but not
limited to, loss of use, loss of profits or downtime), whether or not PRODUCTS
sold hereunder are still in warranty or are out of warranty, when the dispute
arises. The parties hereto acknowledge a good faith duty to work with each
other to help solve legitimate end-user problems.

 

15.12                 Publicity. Any
publicity regarding this Agreement shall be achieved only by mutual consent of
the parties. Any such publicity shall be in the form of a general announcement
only. The specific terms shall be held in strict confidence. Notwithstanding
the foregoing, Mitel may, in its sole discretion, publically announce awards,
joint initiatives, or other forms of recognition regarding the AP without
having to obtain permission from the AP beforehand.

 

15.13                 Confidentiality. The parties hereto agree to maintain the absolute
confidentiality of the terms and conditions of this Agreement. Notwithstanding
the foregoing, AP, as a publicly traded company, shall be entitled to disclose
this Agreement, but only to the extent that such disclosure is required by law
(including without limitation the rules and regulations of securities
laws) as determined in the reasonable judgment of the AP and its legal counsel.

 

15.14                 Authorization Of Execution. The party signing on behalf of AP represents and warrants
that he/she has all necessary corporate authority to legally bind AP to this
Agreement. At the request of Mitel, AP shall provide a Board of Directors’
Resolution authorizing execution of this Agreement. This Agreement shall not be
binding on Mitel unless signed by a corporate officer of Mitel.

 

15.15                 Toll Fraud Disclaimer/Warning. Mitel disclaims any express or implied warranty that its
PRODUCTS are technically immune from or prevent fraudulent intrusions into
and/or unauthorized use (including its interconnection to the long distance
network). AP is hereby warned that fraudulent use of the system, including but
not limited to DISA, auto-attendant, voice mail, 800 type toll free number
service and 10XXX/10XXXXX, is possible, and AP agrees to generally warn its
customers of such. AP also agrees to follow Mitel’s published Technical
Bulletins on this issue. Mitel reserves the right to publish such bulletins
electronically.

 

15.16                 Invasion Of Privacy Disclaimer/Warning. Mitel hereby disclaims any express or implied warranty that
its PRODUCTS are technically immune from or prevent unlawful and/or
unauthorized utilization that may result in invasion of one’s right to privacy.
Mitel hereby warns AP that such is possible, and AP agrees to warn its
customers of such.

 

15.17                 Loss Or Theft Of Data. Mitel hereby disclaims any express or implied warranty that
its PRODUCTS are technically immune from or prevent improper, unlawful and/or
unauthorized utilization that may result in the loss of or theft of electronic
data. Mitel hereby warns AP that such is possible, and AP agrees to warn its
customers of such.

 

15.18                 Record A Call Feature. Mitel hereby makes AP aware that the “Record a Call Feature”
has legal implications as outlined in the Mitel technical documentation. Record
a Call does not provide a warning tone, therefore, end-users should indicate
verbally that the call is being recorded when activating this feature. AP agrees
to warn its end-user customers of this matter during its training sessions and
to pass on the pertinent documentation warnings and disclaimers concerning such
in order to comply with the laws of the pertinent jurisdiction(s) involved.
Mitel disclaims any responsibility for improper use of this feature.

 

                                              15.19                   External Listen & Music On Hold. The External Listen feature contained in the Mitel Networks
3100 and 3300 ICP PRODUCT may violate state or federal statutes including,
without limitation, criminal law, or privacy legislation. AP is hereby warned
to check local laws to ensure that use of this feature does not contravene any
such statutes and to properly warn its end-user customers of such. Mitel
disclaims any responsibility for improper use of this feature.

 

15.20                 E-911 Warning. Certain Mitel PRODUCTS (see appropriate product
specifications and warnings and see for example the 6010 teleworker
application) do not provide specific user location identification and AP agrees
to warn its end-users of such.

 

15.21                 No Intent To Create Third-Party Beneficiary Status. The parties understand and agree that this Agreement is for
their own respective benefit only, and it is not intended to and does not
create third-party beneficiary status on any other person or entity whatsoever,
including, but not limited to, customer (end-user).

 

15.22                 Attorney Fees. In any dispute arising out of this Agreement the prevailing
party shall be entitled to reasonable attorney fees and costs.

 

15.23                 Entire Agreement. This Agreement constitutes the entire Agreement of the
parties with respect to the subject matter contained herein and supersedes all
prior written reseller, Solution Provider, or any other such agreements between
the parties. There are no other agreements pertaining to the subject matter
hereof, either oral or written. A waiver of any provisions in any one instance
shall not be deemed a waiver of any provision in any other instance. This
Agreement may only be amended or modified by the written agreement of the
parties.

 

15.24                 NO ORAL MODIFICATIONS. ALL CHANGES TO THIS AGREEMENT (INCLUDING ANY ATTACHMENTS OR
ADDENDA HERETO) MUST BE IN WRITING AND SIGNED BY BOTH PARTIES. MITEL SHALL NOT
BE BOUND BY ANY VERBAL AGREEMENT OR VERBAL MODIFICATIONS.

 

15.25                 Assignment. AP
shall not assign or transfer any executory rights under this Agreement, in
whole or in part, without the prior written consent of Mitel, which consent
shall not be unreasonably withheld. Mitel shall have the right to assign this
Agreement to any Mitel subsidiary or affiliated company, or to any third party
in connection with the transfer of all or substantially all of the assets of
the business unit relating to this Agreement, or the sale or transfer of the
voting stock or shares of Mitel resulting in a change in its effective control.
Either party may assign rights that are no longer executory such as the right
to obtain damages for material breach and the right to collect payment on an
account.

 

16.                               ELECTRONIC MAIL AND INTERNET CONNECTIVITY. AP must possess the capability to communicate via electronic
mail, and to connect to the Internet so Mitel will be able to provide, at no
charge to the AP, access to the following: Sales and Product Bulletins, Sales
Collateral, Marketing Newsletters, Configuration Tools, Press Releases, Price
Bulletins, Technical Bulletins, and any other items deemed appropriate by
Mitel. Electronically provided collateral materials will be updated by Mitel on
a continual basis. Should the AP experience difficulty in accessing the
Internet, Mitel will provide the AP access to printed copy of above literature
for a period of time. Mitel reserves the right to charge a fee for such. Glossy
sales brochures may be provided in hard copy from time to time. Mitel reserves
the right to charge for such hard copies.

 

17.                               MITEL PASSWORDS, CODES. It is the obligation of AP to keep all electronic password(s) and
codes provided by Mitel confidential at all times. It is also the obligation of
the AP to notify Mitel immediately when an employee of AP who had access to an
assigned Mitel password or code is terminated or changes status. Likewise, AP
agrees to 

 

8

 

notify
the Mitel Training group when it hires a Mitel certified technician or the
employment of a Mitel certified technician has terminated. All such
notifications should be made via email to MOLSupport@mitel.com.

 

18.                               SOFTWARE AND SOFTWARE TOOLS. AP acknowledges that Mitel develops and distributes part of
its communications via the Internet, or by CD via the U.S. mail. Mitel uses the
following software, among others, to accomplish this task: Microsoft (MS) Word,
MS Excel, MS PowerPoint, Adobe Acrobat and Mitel also uses Microsoft Windows
Operating Systems for its software tools. AP will, at its own expense, make
available for its own use, that certain software and/or operating system that
is the functional equivalent of or otherwise compatible with such programs.

 

19.                               PRIOR SERVICE SOLUTIONS ADDENDUMS AND IMPLEMENTATION AND
SUPPORT SERVICES ADDENDUMS. In the
event that AP previously executed either a Service Solutions Addendum and/or an
Implementation Fulfillment Addendum (collectively “Addendums”) with Mitel in
its former capacity as a Solution Provider or SP, the terms and conditions of
such Addendums shall remain in full force and effect. Notwithstanding the
foregoing, AP agrees to the following changes to their existing addendums:(i) the
term Solution Provider Agreement or SP Agreement, whenever used in the
addendums, shall be replaced with the terms authorizedPARTNER agreement or AP
agreement, respectively, and (ii) the terms Solution Provider or SP shall
be replaced, respectively, with authorizedPARTNER or AP.

 

IN
WITNESS WHEREOF, the parties hereto have
caused this Agreement to be executed hereinbelow by their respective duly
authorized representatives on the date first appearing above.

 

	
  Mitel Networks, Inc.

  	
   

  	
  Xeta Technologies, Inc

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
  By

  	
  /s/ Greg Forrest

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dan Mondor

  	
   

  	
  Printed Name and Title:
  Greg Forrest

  
	
  President

  	
   

  	
  CEO
  & President

  

 

9

 

SCHEDULE A

U.S. Product Warranty

for Mitel authorizedPARTNERS

 

a.                                       Mitel warrants that its products (hereinafter “PRODUCTS”)
except the firmware and software components thereof and except for those
specific products expressly noted below (hereinafter “SPECIAL PRODUCTS”) will
be free from defects in material and workmanship, under normal use and service
for a period of fifteen (15) months from the date of shipment by Mitel to
authorizedPARTNER or to Mitel’s Authorized Wholesalers from whom
authorizedPARTNER may purchase certain PRODUCTS including certain SPECIAL
PRODUCTS.

 

b.                                      Mitel likewise warrants that the software and firmware
program components (including the media itself) of PRODUCTS, to the extent such
are utilized to provide an operating system or an embedded application (“inside
the skins”) will likewise perform for fifteen (15) months from the date of
shipment, as aforesaid, substantially in conformity with Mitel technical
documentation (functional and operating specifications) that Mitel publishes
regarding same (reference and operating manuals and guides relating to the
program).

 

c.                                       Mitel likewise warrants that the software and firmware
program components of its PRODUCTS, to the extent such are utilized to provide
an external or peripheral operating system or application will perform for a
period of either one hundred twenty (120) days from shipment or ninety (90)
days from the date authorizedPARTNER installs and cuts over such, whichever is
sooner. The software and firmware media for such will nevertheless be warranted
for fifteen (15) months from shipment.

 

d.                                      The MAS 6000, SIP enabled phone sets (e.g., the 5055, 5215
and 5220 SIP phones), Your Assistant and the Mitel Conference Units (IP and TDM
versions), are SPECIAL PRODUCTS and the hardware, firmware, and software
components thereof, including media, are warranted against defects in material
and workmanship under normal use and service for a period of one hundred twenty
(120) days from shipment or ninety (90) days from installation and cutover,
whichever is sooner.

 

e.                                       MITEL DOES NOT, HOWEVER, WARRANT OR REPRESENT THAT THE
FUNCTIONS OR FEATURES CONTAINED IN THE SYSTEM AND/OR FIRMWARE PROGRAMS
DESCRIBED IN SUB-PARAGRAPHS B, C, AND D ABOVE WILL SATISFY authorizedPARTNER’S
OR ITS END-USER’S PARTICULAR PURPOSE AND/OR REQUIREMENTS OR THAT THE OPERATION
OF THE PROGRAM WILL BE UNINTERRUPTED OR ERROR FREE.

 

f.                                         Notwithstanding anything hereinabove to the contrary, any
third-party developed and licensed software that is not branded by Mitel as a
Mitel PRODUCT (including SPECIAL PRODUCTS) carries just the warranty, if any,
of the Licensor which Mitel will pass through to authorizedPARTNER in
accordance with its terms and conditions, disclaimers and limitations of liability.
SUCH PROGRAMS ARE NOT SEPARATELY WARRANTED BY MITEL.

 

g.                                      Mitel shall incur no liability under this warranty and this
warranty is voidable by Mitel (a) if the PRODUCT (including SPECIAL
PRODUCT) is used other than under normal use, if the PRODUCT (including SPECIAL
PRODUCT) is not properly serviced and maintained by certified technicians, and
if the PRODUCT (including SPECIAL PRODUCT) is not maintained under proper
environmental conditions, (b) if the PRODUCT (including SPECIAL PRODUCT)
is subject to abuse, damage, misuse, neglect, flooding, fire, lightning, power
surges or “dirty” power, third-party error or omission, acts of God, damage,
force majeure or accident, (c) if the PRODUCT (including SPECIAL PRODUCT)
is modified or altered (unless expressly authorized in writing by Mitel), (d) if
the PRODUCT (including SPECIAL PRODUCT) is installed or used in combination or
in assembly with products not supplied or authorized by Mitel and/or which are
not compatible with or are of inferior quality, design or performance to Mitel
supplied PRODUCTS (including SPECIAL PRODUCT) so as to cause a diminution or
degradation in functionality, (e) if there is a failure to follow specific
restrictions in operating instructions, or (f) if payment for PRODUCT
(including SPECIAL PRODUCT) has not been timely made.

 

h.                                      The sole obligation of Mitel and the exclusive remedy and
recourse of authorizedPARTNER under this warranty, or any other legal
obligation, with respect to PRODUCT (including SPECIAL PRODUCT), including
hardware, firmware, and software media, is for Mitel, at its election, to
either repair and/or replace the allegedly defection PRODUCT (including SPECIAL
PRODUCT) or component(s) thereof and return (prepaid) same (if necessary),
or grant a reimbursement credit with respect to the PRODUCT (including SPECIAL
PRODUCT) or component thereof, as applicable. With regard to a software and/or
firmware program design defect, however, to the extent it prevents the program
from providing specified functionality and/or operating as intended by Mitel,
is service affecting and prevents beneficial use of the product, Mitel does
undertake to use commercially reasonable efforts to devise a suitable
corrective solution to the problem within a reasonable period of time. Should
said action, however, not substantially resolve the problem, then Mitel
reserves the right to incorporate such solution in a new release (“stream”) of
software. The above, with regard to a software design defect, likewise,
constitutes the sole obligation of Mitel and the exclusive remedy of
authorizedPARTNER hereunder with respect to PRODUCT (including SPECIAL
PRODUCT).

 

i.                                          The responsibility of Mitel to honor the express limited
warranty stated above also shall be predicated on receiving timely written
notice of the alleged defect(s) with as much specificity as is known
within thirty (30) calendar days of the malfunction or by the expiration of the
warranty period (plus thirty (30) calendar days), whichever occurs first. Mitel
shall further have the right to inspect and test the PRODUCT (including SPECIAL
PRODUCT) to determine, in its reasonable discretion, if the alleged malfunction
is actually due to defects in material or workmanship caused by Mitel. Unless
waived by Mitel, authorizedPARTNER agrees to return (prepaid) the allegedly
defective PRODUCT (including SPECIAL PRODUCT) or component thereof to Mitel for
inspection and/or testing, and, if appropriate, for repair and/or replacement.
In partial consideration of this warranty authorizedPARTNER agrees to provide
on site warranty service and support to its end-users (e.g., diagnosis, trouble
shooting, remediation, de-install and re-install) as necessary and appropriate
during the warranty period.

 

j.                                          THE ABOVE EXPRESS LIMITED WARRANTY IS IN LIEU OF ALL OTHER
WARRANTIES, EXPRESS OR IMPLIED, FROM MITEL (INCLUDING MITEL NETWORKS
CORPORATION) AND THERE ARE NO OTHER WARRANTIES WHICH EXTEND BEYOND THE FACE OF
THIS WARRANTY. ALL OTHER WARRANTIES WHATSOEVER, INCLUDING THE IMPLIED WARRANTY
OF MERCHANTABILITY AND THE IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE
RELATING TO THE USE OR PERFORMANCE OF THE PRODUCT (INCLUDING SPECIAL PRODUCT)
INCLUDING THEIR PARTS, ARE HEREBY EXCLUDED AND DISCLAIMED.

 

                                              k.                                         IN NO EVENT SHALL MITEL (INCLUDING MITEL NETWORKS
CORPORATION) UNDER ANY CIRCUMSTANCES, BE LIABLE FOR NOR SHALL authorizedPARTNER
(DIRECTLY OR INDIRECTLY), BE ENTITLED TO ANY SPECIAL, CONSEQUENTIAL,
INCIDENTAL, INDIRECT, PUNITIVE, OR EXEMPLARY DAMAGES AS A RESULT OF THE SALE OR
LEASE AND/OR LICENSE OF PRODUCT (INCLUDING SPECIAL PRODUCT), INCLUDING BUT NOT
LIMITED TO FAILURE TO TIMELY DELIVER THE PRODUCT (INCLUDING SPECIAL PRODUCT) OR
FAILURE OF PRODUCT (INCLUDING SPECIAL PRODUCT) TO ACHIEVE CERTAIN
FUNCTIONALITY, OR ARISING OUT OF THE USE OR INABILITY TO USE THE PRODUCT (INCLUDING
SPECIAL PRODUCT), IN WHOLE OR IN PART, AND INCLUDING BUT NOT LIMITED TO LOSS OF
PROFIT, LOSS OF USE, DAMAGE TO BUSINESS OR DAMAGE TO BUSINESS RELATIONS. MITEL
SHALL NOT BE LIABLE FOR PERSONAL INJURY OR PROPERTY DAMAGE UNLESS CAUSED SOLELY
BY MITEL’S NEGLIGENCE.

 

6

 

COMPOSITE SCHEDULE A

U.S. Product Warranty

for Mitel authorizedPARTNERS

 

CONDITIONS CONCERNING USE OF MITEL SOFTWARE

 

a.                                       authorizedPARTNER receives no right to use any Mitel Software
except by the grant of an express written license from Mitel as delineated in
the underlying Agreement. authorizedPARTNER agrees to use the Mitel Software
only in conjunction with the Mitel PRODUCTS (including SPECIAL PRODUCT) with
which it is intended to operate. authorizedPARTNER agrees that all Mitel
Software shall be treated as the exclusive property of Mitel or its suppliers,
as appropriate, and a proprietary trade secret of Mitel or its suppliers, as
appropriate. authorizedPARTNER shall take those steps as may be necessary to
hold the Mitel Software in confidence for the benefit of Mitel or its
suppliers, as appropriate. authorizedPARTNER shall not provide or make the
Mitel Software available to any person other than its employees on a “need to
know” basis and shall issue adequate instructions to those persons necessary to
satisfy authorizedPARTNER’s obligations under this provision.

 

b.                                      authorizedPARTNER shall not execute, use, copy, alter or
modify the Mitel Software (except for making a back-up archival copy) or take
any action inconsistent with the exclusive ownership interest of Mitel or its
suppliers, as appropriate, in the Mitel Software. authorizedPARTNER shall not
decompile, reverse assemble, analyze or otherwise examine for reverse
engineering purposes the Mitel Software, in whole or in part, or any firmware
implementation of the Mitel Software. authorizedPARTNER may not sub-license the
Mitel Software, in whole in or part, without

 

c.                                       first assuring that its sublicensee agrees, in writing, to
adhere to the terms hereof. authorizedPARTNER may only use the Mitel Software
in conjunction with the Mitel equipment configuration on which the Mitel
Software is executed and at the originally installed site without first
obtaining written permission otherwise from Mitel; such permission shall not be
unreasonably withheld. Upon termination of this license, authorizedPARTNER
shall deliver to Mitel all material supplied by Mitel pertaining to the
license.

 

d.                                      During the term of this Agreement, and when not in default or
breach hereunder, authorizedPARTNER shall have the right to sublicense the
Mitel Software to its customers subject to the terms hereof and only for the
operation by its customers of associated Mitel PRODUCTS (including SPECIAL
PRODUCT). authorizedPARTNER agrees to take prompt steps to terminate any
sub-license granted hereunder by authorizedPARTNER under direction from Mitel
if its customer fails to comply with the terms of such sublicense and does not
cure such failure within ten (10) days written notice from
authorizedPARTNER.

 

e.                                       authorizedPARTNER agrees to abide by Mitel’s Software
Re-licensing Policy as delineated on MOL in all material respects concerning
the transfer of used software.

 

7

 

SCHEDULE B

SAMPLE LIMITED EXPORT ADDENDUM

 

LIMITED EXPORT ADDENDUM

 

This Limited Export Addendum (“Addendum”) is between [Mitel
Networks Inc./Mitel Networks Corporation] (“Mitel”) and Xeta Technologies,
Inc, (“AP”) (collectively the “Parties”). By this Addendum, the parties
hereby agree to modify the Partner Agreement! dated September 28.2007
(the “AP Agreement”) subject to the following terms and conditions:

 

I.                                       Scope

 

The parties agree to modify Section 3.1 of the AP
Agreement to permit AP to conduct certain specific sales of Mitel products
within U.S as described within Section II of this Addendum.
Notwithstanding the foregoing, AP agrees that except as permitted by this
Addendum, it remains fully bound by the terms and conditions of the AP
Agreement, including but not limited to those contained in Section 3.1
prohibiting sales of Mitel products outside of U.S. (defined as its fifty
states the us Virgin Islands Puerto Rico and Guam). Furthermore, unless
specifically stated otherwise in this Addendum, this Addendum is subject to all
of the terms and conditions of the AP Agreement.

 

II.                                   U.S. (defined as its fifty states, the US Virgin
Islands, Puerto Rico and Guam) Sales

 

Mitel agrees that the AP may sell Mitel products to End User,
(a “customer”) at the following location only:

 

Name
and Address of End User to be determined.

 

III.                               Import/Export

 

In connection with the aforementioned U.S. Sales, AP agrees
to purchase Mitel products in U S (defined as above) via Mitel distribution
channels set forth in the AP Agreement. AP agrees to be responsible for payment
of all duties and taxes related to exporting Mitel products into U.S. from
U.S.. AP further agrees to comply with all U.S. laws and regulations, including
but not limited to export and import restrictions, as well as all other laws
and regulations pertaining to sales in U.S.. AP agrees to only sell Mitel
products under this addendum to its customers at the locations defined in Section II
above and to not permit its customers to re-export the Mitel products to another
country.

 

IV.                               Indemnification

 

AP AGREES TO HOLD MITEL HARMLESS FOR ANY AND ALL DAMAGES,
INCLUDING REASONABLE ATTORNEYS FEES AND COURT COSTS, THAT MAY RESULT FROM
AP’S FAILURE TO ABIDE BY THE LAWS OF U.S. (as defined above) AND U.S. AND FOR
ANY OTHER DAMAGES TO MITEL WHICH MIGHT RESULT FROM AP’S FAILURE TO COMPLY WITH
THE TERMS AND CONDITIONS OF THIS ADDENDUM.

 

AGREED:

 

	
  Mitel Networks Inc.

  	
   

  	
  Xeta Technologies. Inc.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Printed Name:

  	
   

  	
   

  	
  Printed Name:

  	
   

  
	
  Printed Title:

  	
   

  	
   

  	
   

  	
  Printed Title:

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  
												

 

2exhibit_10-1.htm

    Exhibit
10.1

    DENDREON
CORPORATION

     

    EXECUTIVE
EMPLOYMENT AGREEMENT

     

    (WASHINGTON
STATE)

     

    This
Executive Employment Agreement (this “Agreement”)
is entered into as of the date of the last signature to this Agreement (“Effective
Date”), by and between Dendreon Corporation, a Delaware corporation (the
“Company”),
and Hans Bishop (“Employee”).

     

    The
parties agree as follows:

     

    1. Employment.  The Company
hereby employs Employee as Executive Vice President and
Chief Operating Officer,
and Employee hereby accepts such employment, upon the terms and conditions set
forth in this Agreement.

     

    2. Duties.

     

    2.1 Position.  Employee shall
perform such duties as are customary for the position of Executive Vice President and Chief Operating Officer
and any additional duties that Employee’s immediate supervisor may reasonably
prescribe from time to time.  Employee shall devote Employee’s full
business time and efforts to the performance of Employee’s assigned duties for
the Company, provided, however, that
Employee may devote reasonable periods of time to (a) serving on the board of
directors of other corporations subject to the prior approval of the CEO, and
(b) engaging in charitable or community service activities, so long as none of
the foregoing additional activities materially interfere with Employee's duties
under this Agreement.

     

    2.2 Work
Location.  Employee’s
principal place of work shall be located in Seattle, Washington, or such other
location as the parties may agree upon from time to time.

     

    3. Term.  The employment
relationship pursuant to this Agreement shall begin on the Effective Date, will
be for no specified term, and may be terminated by Employee or the Company at
any time, with or without Cause (as defined in Section 6), subject to the
provisions regarding termination set forth in Section 6.

     

    4. Compensation.

     

    4.1 Base
Salary.  As compensation
for Employee’s performance of   duties under this Agreement, the
Company shall pay Employee a base salary (“Base
Salary”), which shall initially equal Four Hundred and Fifty Thousand
dollars ($450,000.00) per calendar year, payable in accordance with the normal
payroll practices of the Company, less required deductions for state and federal
withholding tax, social security and all other required employment taxes and
payroll deductions.  For purposes of Section 6 hereof, Employee’s Base
Salary shall be the current Base Salary as of the date of termination of
employment (“Termination Date”).  The Base Salary may not be reduced
unless the base salaries of all other 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
employees
of the Company at the Vice President level and above are proportionally reduced
and in the case of such reduction, Base Salary shall not be reduced by more than
10%.

     

    4.2 Incentive
Compensation.  Within thirty
(30) days after the end of each calendar year, if the Company and Employee meet
specified targets agreed upon in advance by the Board,  Employee shall
be entitled to receive a target bonus of forty-five percent (45%)
of  Base Salary (the “Annual
Bonus”) as determined by the Board or its designee, in its sole
discretion.  Employee must be currently employed by the Company as of
the date of payment of any Annual Bonus in order to be entitled to such
payment.  If the Company and Employee do not fully meet such targets,
the Company may pay Employee a bonus of such amount as the Board or its
designee deems
appropriate in its sole discretion.  Before the beginning of a new
bonus year, the Board may, in its discretion, reduce the percentage of the
Annual Bonus applicable to employees, provided that Employee’s Annual Bonus may
be reduced only to the extent that the percentage annual bonuses of all other
employees of the Company at the Vice President level and above are
proportionally reduced.

     

    4.3 Equity
Grants.  Employee shall be entitled to annual grants of stock
options, restricted stock and other equity based long term incentive
compensation generally made available to comparable senior executives of the
Company on substantially the same terms and conditions as generally applicable
to such other executives.

     

    4.4 Performance
and Compensation Review.  The Employee’s
performance will be reviewed no less frequently than annually to determine
whether Employee’s salary or other compensation should be modified.

     

    4.5 Vacation.  Employee shall be
eligible to earn five (5) calendar weeks of paid vacation in each year of this
Agreement.  Vacation will accrue at the rate of five (5) hours per pay
period, and may be carried over from year to year up to a maximum cap of 240
hours and in accordance with Company policy.  Additional paid vacation
shall accrue in accordance with Company policy. Any accrued unused vacation will
be cashed out upon termination of employment at Employee’s then current Base
Salary rate in accordance with Company policy and applicable law.

     

    4.6 Benefits
and Insurance.  In addition to
the vacation benefits in Section 4.5 above, Employee shall be entitled to all
benefits that the Company may make generally available from time to time to its
employees, subject to the terms and conditions of the applicable policy or plan,
and provided that Employee understands that he will be designated as a key
employee for purposes of any leave granted under the Family and Medical Leave
Act.

     

    5. Business
Expenses.  The Company shall
pay, or promptly reimburse, Employee for all reasonable, out-of-pocket travel
and business expenses incurred in the performance of Employee’s duties on behalf
of Company for which Employee submits the required supporting documentation and
otherwise fully complies with the Company’s travel and expense reimbursement
policy as in effect from time to time.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    6. Separation of Employee’s
Employment.

     

    6.1 Termination
for Cause by Company.  The Company may
terminate Employee’s employment at any time for Cause.  For purposes
of this Agreement, “Cause” is
defined as:  Employee’s continued neglect or failure to
perform  duties and responsibilities, after written notice thereof and
an opportunity to cure; willful misconduct by Employee with respect
to  duties and responsibilities under this Agreement; conduct which is
materially injurious (monetarily or otherwise) to the Company, including without
limitation, misuse of Company funds or property; unethical business practices or
dishonesty related to the Company’s business; any other material breach by
Employee of this Agreement or any noncompetition, nondisclosure and/or invention
agreement with the Company; conviction of a felony (other than a moving vehicle
violation); or any similar or related act or failure to act by Employee related
to the Company’s business or the Employee’s duties under this Agreement which is
materially adversely injurious to the Company.  In the event that
Employee’s employment is terminated in accordance with this Section ‎6.1,
Employee shall be entitled to receive, on Employee’s first regular payday
following Termination Date, a lump sum payment equal to the
following:  (i) any portion of Employee’s Base Salary that has been
earned but not yet paid as of the Termination Date, and (ii) any accrued unused
vacation as of the Termination Date, all of the foregoing to be less required
withholding.  All other Company obligations to Employee, including but
not limited to any bonus as described in Section 4.2 and Severance (as defined
in Section 6.2), will automatically terminate and be completely extinguished as
of the Termination Date; provided, however, Employee shall continue to be
entitled to any accrued benefits under the Company’s benefit and welfare plans
and to indemnification and continued coverage under the Company’s D&O
policies.

     

    6.2 Termination
Without Cause; Change in Control.

     

    (a) If the
Company terminates Employee’s employment without Cause, or if Employee resigns
for Good Reason in accordance with Section 6.3, then Employee will be entitled
to receive, on Employee’s first regular payday following his Termination Date,
the following:

     

    (i) a lump
sum severance payment in an amount equal to nine (9) months of Employee’s then
current Base Salary, less required withholding,

     

    (ii) seventy
five percent (75%) of the amount of target Annual Bonus payable to Employee for
the then calendar year, less required withholding, and

     

    (iii) the
amounts set forth in paragraph (c) below.

     

    (b) If the
Company terminates Employee without Cause, or if Employee resigns for Good
Reason in accordance with Section 6.3, in either case within three months before
and twelve (12) months following a Change of Control (as defined in paragraph
(d) below), then Employee will be entitled to receive in lieu of those payments
set forth in Section 6.2(a) above, on Employee’s first regular payday
following   Termination Date, the following:

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (i) a lump
sum severance payment in an amount equal to two hundred percent (200%) of
Employee’s then current Base Salary, less required withholding,

     

    (ii) one
hundred percent (100%) of the amount of target Annual Bonus payable to Employee
for the then calendar year, less required withholding, and

     

    (iii) the
amounts set forth in paragraph (c) below.

     

    (c) In
addition to those amounts set forth in paragraphs (a) or (b) above, as
applicable, Employee shall be entitled to (i) payment of all accrued and unused
vacation; (ii) reasonable costs not to exceed $10,000 for outplacement services
provided by a purveyor approved by Company, moving expenses or any other
reemployment cost, upon delivery to the Company of an itemized invoice for such
services provided that such costs are incurred within six (6) months of the
Termination Date; (iii) payment by the Company for continuation of all Health
Benefits in effect on the Termination Date and timely elected by Employee under
COBRA, for a period of eighteen (18) months following the Termination Date, or
until Employee is eligible to receive comparable health benefits from another
employer; (iv) any unpaid Annual Bonus with respect to the calendar year ended
prior to the termination of Employee’s employment; and (v) full accelerated
vesting of any and all unvested stock options and restricted stock grants held
by Employee.

     

    (d) “Change of Control” shall mean
the occurrence, in a single transaction or in a series of related transactions,
of one or more of the following events:

     

    (i) Any
Person, as defined under the Securities Exchange Act of 1934, as amended,
becomes the owner of securities of the Company representing more than fifty
percent (50%) of the combined voting power of the Company’s then-outstanding
securities, other than by virtue of a merger, consolidation or similar
transaction;

     

    (ii) The
consummation of a merger, consolidation or similar transaction that directly or
indirectly involves the Company (a “transaction”), and the stockholders of the
Company immediately before consummation of the transaction do not own
immediately after consummation of the transaction,
either:  (A) more than fifty percent (50%) of the combined voting
power of the outstanding voting securities of the entity that survives the
transaction; or (B) more than fifty percent (50%) of the combined voting
power of the outstanding voting securities of an entity that owns the surviving
entity;

     

    (iii) The
stockholders of the Company approve, or the Board approves, a plan of complete
dissolution or liquidation of the Company, or a complete dissolution or
liquidation of the Company otherwise occurs;

     

    (iv) The
consummation of a sale, lease or other disposition of all or substantially all
of the consolidated assets of the Company (a “disposition”) that requires
approval of Company stockholders under Delaware corporate law; provided that
this paragraph (d)(iv) excludes a disposition to an entity with respect to which
stockholders of the Company own immediately after the disposition more than
fifty percent (50%) of the combined voting power of the entity’s outstanding
voting securities; or

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (v) The Board
ceases to be composed of at least a majority of Incumbent
Directors.  “Incumbent Directors” are the current members of the Board
of Directors and any subsequent Board member who was nominated or elected by a
majority vote of the Incumbent Directors then in office.

     

    Notwithstanding
the above clauses (i) through (v), a “Change of Control” shall not have occurred
(unless the Board determines otherwise) by reason of either of the
following:  (A) any corporate reorganization, merger,
consolidation, transfer of assets, liquidating distribution or other transaction
entered into solely by and between the Company and any subsidiary (a
“reorganization”), provided the reorganization was approved by at least
two-thirds (2/3) of the Incumbent Directors (as defined above) then in office
and voting; or (B) any of the transactions described in clauses (i) through
(v) above occurs pursuant to an Insolvency Proceeding.  An “Insolvency
Proceeding” means (A) the Company institutes or consents to the institution
of any proceeding under any debtor relief law, makes an assignment for the
benefit of creditors, or applies for or consents to the appointment of any
receiver, trustee, custodian, conservator, liquidator, rehabilitator or similar
officer for the Company or for all or any material part of the Company’s
property; or (B) any receiver, trustee, custodian, conservator, liquidator,
rehabilitator or similar officer is appointed without the application or consent
of the Company and the appointment continues undischarged or unstayed for 60
calendar days; or (C) any proceeding under any debtor relief law relating
to the Company or to all or any material part of the Company’s property is
instituted without the consent of the Company and continues undismissed or
unstayed for 60 calendar days, or any order for relief is entered in any such
proceeding.

     

    (e) In the
event that any payment to Employee described in Section 6.2(a) or 6.2(b) shall
be deemed at the relevant time to be subject to Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”), then such payment shall be made
on the later of the date that is six months following the Termination Date or
when due.  The payments and benefits to which Employee is entitled
under paragraphs (a) and (b) of this Section are referred to as
“Severance.”  All other Company obligations to Employee pursuant to
this Agreement other than the Employee’s accrued benefits under the Company’s
benefit and welfare plans and his rights to indemnification and continued
coverage under the Company’s D&O policies will automatically terminate and
be completely extinguished as of the Termination Date.

     

    6.3 Resignation
of Employee for Good Reason.  Employee may
resign for “Good
Reason” upon notice to the Company within thirty (30) days following the
relevant event or condition if any of the following occurs without the
Employee’s express consent:

     

    
      	
              (a)  

            	
              The
      Board or Company (i) alters Employee’s duties, responsibilities or title
      resulting in a significant diminution of the Employee’s position, duties,
      responsibilities or status with the Company or, (ii) requires Employee to
      report to anyone other than the most senior executive of the Company or
      (iii) reduces Employee’s Base Salary, unless the base salaries of all
      other employees of the Company at the Vice President level or above are
      proportionately reduced and such reduction does not exceed 10% of
      Employee’s Base Salary; or

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
      	
              (b)  

            	
              The
      Board or Company transfers or assigns Employee to any location that is
      more than fifty (50) miles from the location of Employee’s principal
      office.  Required travel on the Company’s business that is
      consistent with the business travel obligations of Employee’s position is
      excluded from this Section.

            

    

     

    
      	
              (c)  

            	
              The
      Company materially breaches its obligations under this Agreement, but only
      after the Employee has provided written notice to the Company specifying
      such material breach and the Company fails to cure such breach within 20
      days after its receipt of such
notice.

            

    

     

    6.4 Resignation
by Employee Without Good Reason.  Employee may
voluntarily resign position with the Company without Good Reason at any time on
thirty (30) days’ advance written notice.  In the event Employee’s
resignation is without Good Reason, Employee will be entitled to receive, on
Employee’s first regular payday following Termination Date, a lump sum payment
equivalent to the following:  (i) the Base Salary then in effect,
prorated to the Termination Date; and (ii) accrued unused vacation as of the
Termination Date, all of the foregoing to be less required
withholding.  All other Company obligations to Employee pursuant to
this Agreement other than the Employee’s accrued benefits under the Company’s
benefit and welfare plans and his rights to indemnification and continued
coverage under the Company’s D&O policies will automatically terminate and
be completely extinguished.

     

    6.5 Employee’s
Execution of Release.  The payment of
Severance pursuant to Section 6.2, 6.3, or Section 6.6(b) is expressly
contingent upon execution by Employee or   duly authorized
representative of a full and general release of any and all claims against the
Company and its officers and directors which related to Employee’s employment
with the Company and the termination of such employment in the form reasonably
required by the Company.

     

    6.6 Termination Upon Death or
Disability.

     

    (a) Death.  Employee’s
employment will terminate automatically upon death of the
Employee.  In the event of Employee’s death, Employee’s Base Salary
then in effect, prorated to the Termination Date, and any accrued unused
vacation as of the Termination Date, all of the foregoing to be less required
withholding, shall be paid, on the Employee’s first regular payday following
Termination Date, to the beneficiary designated in writing by the Employee
(“Beneficiary”) or, if no such Beneficiary is designated, to the Employee’s
estate.  In addition, (i) the Company will continue the Employee’s
Base Salary until the earlier of six months from the Termination Date or the
commencement of death benefits under any existing Company Group Life Insurance
Plan, (ii) the Company shall pay any unpaid Annual Bonus with respect to the
calendar year ended prior to the termination of Employee’s employment and a pro
rata Annual Bonus (based upon his Target Bonus) for the year in which the
termination of employment occurs; and (iii) the Company shall fully accelerate
vesting of any and all unvested stock options and restricted stock grants held
by Employee.

     

    (b) Disability.  In the event that
Employee becomes physically or mentally disabled such that [he/she] is unable to
perform  duties for a period of three (3) consecutive months as
determined by a medical professional (“Disability”),
the Company may 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
terminate
Employee’s employment, unless otherwise prohibited by law.  In the
event of termination due to Disability, Employee shall be paid, on the
Employee’s first regular payday following  Termination Date, a lump
sum payment equivalent to Employee’s Base Salary then in effect prorated to
Employee’s Termination Date, and any accrued unused vacation as of the
Termination Date, all of the foregoing to be less required
withholding.  In addition, (i) the Company will continue Employee’s
Base Salary (less any short term disability payments Employee receives from the
Company) until the earlier of six (6) months from the Termination Date or the
commencement of Long Term disability payments under any existing Company Long
Term Disability Policy; (ii) the Company shall pay any unpaid Annual Bonus with
respect to the calendar year ended prior to the termination of Employee’s
employment and a pro rata Annual Bonus (based upon his Target Bonus) for the
year in which the termination of employment occurs; and (iii) the Company shall
fully accelerate vesting of any and all unvested stock options and restricted
stock grants held by Employee.

     

    6.7 Board
Action.  The Company
agrees to take all actions required by the Board or otherwise to accelerate
Employee’s unvested stock options and restricted stock grants as required by
Sections 6.2, 6.3, or 6.6.

     

    6.8 Adjustment
of Payments and Benefits.  Notwithstanding
any provision of this Agreement to the contrary, if any payment or benefit to be
paid or provided hereunder would be an “Excess Parachute Payment,” within the
meaning of Section 280G of the Code, or any successor provision thereto, but for
the application of this sentence, then the payments and benefits to be paid or
provided hereunder shall be reduced to the minimum extent necessary (but in no
event to less than zero) so that no portion of any such payment or benefit, as
so reduced, constitutes an Excess Parachute Payment; provided, however, that the
foregoing reduction shall be made only if and to the extent that such reduction
would result in an increase in the aggregate payments and benefits to be
provided, determined on an after-tax basis (taking into account the excise tax
imposed pursuant to Section 4999 of the Code, or any successor provision
thereto, any tax imposed by any comparable provision of state law, and any
applicable federal, state and local income taxes).  The determination
of whether any reduction in such payments or benefits to be provided hereunder
is required pursuant to the preceding sentence shall be made at the expense of
the Company, if requested by Employee or the Company, by the Company's
independent accountants.  The fact that Employee's right to payments
or benefits may be reduced by reason of the limitations contained in this
Section shall not of itself limit or otherwise affect any other rights of
Employee under this Agreement.  In the event that any payment or
benefit intended to be provided hereunder is required to be reduced pursuant to
this Section, Employee shall be entitled to designate the payments and/or
benefits to be so reduced in order to give effect to this
Section.  The Company shall provide Employee with all information
reasonably requested by Employee to permit Employee to make such
designation.  In the event that Employee fails to make such
designation within 10 business days of  receipt of the information
requested, the Company may effect such reduction in any manner it deems
appropriate.

     

    7. Agreement Not to
Compete.

     

    7.1 No
Employment with, or Connection to, Competitor.  Employee agrees
that, during the term of  employment with the Company and for a period
of six (6) months, Employee will not, without securing the prior written
permission of the Company:

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (a) be
employed by, act as an agent for, or consult with or otherwise perform services
for, a Competitor (as defined below); or

     

    (b) own any
equity interest in, manage or participate in the management (as an officer,
director, partner, member or otherwise) of, or be connected in any other manner
with, a Competitor, except that this section shall not restrict Employee from
owning less than one percent (1%) of the equity interests of any publicly held
entity.

     

    7.2 Nonsolicitation
of Company Employees and Customers.  Employee agrees
that for a period of one (1) year following Employee’s Termination Date,
Employee will not, without securing the prior written permission of the Company,
induce or attempt to induce any Employee, officer, director, agent, independent
contractor, consultant, customer, strategic partner, licensor, licensee,
supplier or other service provider of the Company to terminate a relationship
with, cease providing services or products to, or purchasing products or
services from, the Company.

     

    7.3 Definition
of Competitor.  The term “Competitor”
as used in this Agreement means any individual or entity that is directly or
indirectly engaged in the development and/or commercialization in the United
States of one or more ex vivo cellular immunotherapies for the therapeutic
treatment of cancer, which ex vivo cellular immunotherapies generate twenty
percent (20%) or more of either the annual gross revenue or worldwide operating
expense of such Competitor in the United States.  The term “Competitor”
also includes an individual or entity that is preparing to directly or
indirectly engage in the development and/or commercialization in the United
States of ex vivo cellular immunotherapies, if such ex vivo immunotherapies are
anticipated to generate twenty (20%) or more of either the annual gross revenue
or annual operating expense of such Competitor in the United States during the
first calendar year of development and/or commercialization.

     

    7.4 Reasonableness
of Restrictions.  The Company and
Employee agree that, in light of all of the facts and circumstances relating to
the relationship that exists and is expected to exist between the Company and
Employee, these restrictions (including, but not limited to, the scope of the
restricted activities, the duration of the restrictions, and the geographic
extent of the restrictions) are fair and reasonably necessary for the protection
of the goodwill and other protectable interests of the Company.  If a
court or arbitrator of competent jurisdiction declines to enforce any of these
restrictions, the Company and Employee agree that the restrictions shall be
enforceable to the maximum extent allowed by law.

     

    8. General
Provisions.

     

    8.1 Successors
and Assigns.  The rights and
obligations of Company under this Agreement shall inure to the benefit of and
shall be binding upon the successors and assigns of the
Company.  Employee shall not be entitled to assign any of Employee’s
rights or obligations under this Agreement.

     

    8.2 Waiver.  Either party’s
failure to enforce any provision of this Agreement shall not in any way be
construed as a waiver of any such provision, or prevent that party thereafter
from enforcing each and every other provision of this Agreement.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    8.3 Severability.  In the event any
provision of this Agreement is found to be unenforceable by an arbitrator or
court of competent jurisdiction, such provision shall be deemed modified to the
extent necessary to allow enforceability of the provision as so limited, it
being intended that the parties shall receive the benefits contemplated in this
Agreement to the fullest extent permitted by law.  If a deemed
modification is not satisfactory in the judgment of such arbitrator or court,
the unenforceable provision shall be deemed deleted, and the validity and
enforceability of the remaining provisions shall not be affected.

     

    8.4 Interpretation;
Construction.  The headings set
forth in this Agreement are for convenience only and shall not be used in
interpreting this Agreement.  Both parties have participated in the
negotiation of this Agreement.  Therefore, the normal rule of
construction to the effect that any ambiguities are to be resolved against the
drafting party shall not be employed in the interpretation of this
Agreement.

     

    8.5 Notices.  Any notice
required or permitted by this Agreement shall be in writing and shall be
delivered as follows with notice deemed given as indicated:  (a) by
personal delivery when delivered personally; (b) by overnight courier upon
written verification of receipt; (c) by telecopy or facsimile transmission upon
acknowledgment of receipt of electronic transmission; or (d) by certified or
registered mail, return receipt requested, upon verification of
receipt.  Notice shall be sent to the addresses set forth below, or
such other address as either party may specify in writing.

     

    8.6 Survival.  Section 6
(“Separation of Employee’s Employment”), Section 7 (“Agreement Not to Compete”),
Section 8 (“General Provisions”) of this Agreement shall survive Employee’s
employment by the Company.

     

    8.7 Entire
Agreement.  This Agreement,
the Offer Letter from Erin Shackelford, dated November 25, 2009, the Company’s
stock option plan and documents reflecting options and restricted stock granted
to Employee, the Proprietary Information and Inventions Agreement entered into
by Employee at the commencement of  employment with the Company, and
the Indemnity Agreement entered into by the Company and Employee, if any,
constitute the entire agreement between the parties relating to this subject
matter and supersede all prior or simultaneous representations, discussions,
negotiations, and agreements, whether written or oral.  This Agreement
may be amended or modified only with the written consent of Employee and a duly
authorized officer of the Company.  No oral waiver, amendment or
modification will be effective under any circumstances whatsoever.

     

    8.8 Injunctive
Relief.  Notwithstanding
the foregoing, any action brought by the Company under this Agreement seeking a
temporary restraining order, temporary and/or permanent injunction and/or decree
of specific performance of the terms of this Agreement may be brought in any
court of competent jurisdiction.  The Company shall not be required to
post a bond as a condition for the granting of such relief.

     

    8.9 Governing
Law and Venue.  This Agreement
shall be governed by, and construed in accordance with, the laws of the State of
Washington as though made and to be fully performed in that
State.  Venue for any action arising from this Agreement shall be
exclusively in King County, Washington.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    8.10 Compliance
with Section 409A of the Code.  To the extent
applicable, it is intended that this Agreement complies with the provisions of
Section 409A of the Code.  This Agreement shall be administered in a
manner consistent with this intent, and any provision that would cause this
Agreement to fail to satisfy Section 409A of the Code shall have no force and
effect until amended to comply with Section 409A of the Code (which amendment
may be retroactive to the extent permitted by Section 409A of the Code and may
be made by the Company without the consent of Employee).  In
particular, to the extent Employee becomes entitled to receive a payment or
benefit subject to Section 409A upon an event that does not constitute a
permitted distribution event under Section 409A(a)(2) of the Code, then
notwithstanding anything to the contrary in this Agreement, payment will be made
to Employee on the earlier of (a) Employee’s “separation from service” with the
Company (determined in accordance with Section 409A); provided, however, that if
Employee is a “specified employee” (within the meaning of Section 409A) and the
payment of any amounts described in this Agreement on account of Employee’s
“separation from service” (within the meaning of Section 409A of the Code) would
not meet the “short-term deferral” exemption under Section 409A of the Code (or
otherwise qualify for exemption under Section 409A of the Code), then the
Company will pay such amounts to Employee six months following Employee’s
"separation from service” (within the meaning of Section 409A of the Code) or
(b) Employee’s death.  Notwithstanding the foregoing, the Company
shall not be obligated to guarantee any particular tax result for Employee with
respect to any payment or benefit provided to Employee hereunder, and Employee
shall be responsible for any taxes imposed on Employee in connection with any
such payment or benefit.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    THE
PARTIES TO THIS AGREEMENT HAVE READ THIS AGREEMENT AND FULLY UNDERSTAND EACH AND
EVERY PROVISION.

     

    
    

     

    
      	 	HANS BISHOP
	
               

              Dated: January 4,
      2010

            	
               

              /s/
      Hans  Bishop    
       

            
	 	
              Address:

               

            
	 	
               60 West 66th Street,
      26A           

            
	 	 New York, NY 
      10023                  
	 	 
	 	DENDREON
      CORPORATION
	 	
               

              
                /s/ Mitchell H.
      Gold, M.D.  
      

              

            
	  

              Dated: January 4,
      2010

            	
               

              Mitchell
      H. Gold, M.D.

            
	 	Its: President &
      CEO

    

     

     

    11

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