Document:

exv10w4

Exhibit 10.4

     Agreement No:

NETRONOME SYSTEMS INC.

ORIGINAL EQUIPMENT MANUFACTURER AGREEMENT

     This ORIGINAL EQUIPMENT MANUFACTURER AGREEMENT is entered into as of November 25, 2008 (the
“Effective Date”) between Netronome Systems Inc., a Delaware corporation with its principal place
of business at 144 Emeryville Drive, Suite 230, Cranberry Township, PA 16066 (“Netronome”) and
Sourcefire, Inc., a Delaware corporation with its principal place of business at 9770 Patuxent
Woods Drive, Columbia, MD 21046 (“OEM”). Capitalized terms used in this Agreement and not
otherwise defined in Exhibit A (“Definitions”) hereto shall have the meanings set forth
elsewhere in this Agreement. Netronome and OEM may be individually referred to herein as a “Party”
and collectively as the “Parties”.

BACKGROUND

     Netronome manufactures and sells, among other things, Equipment as more fully described below.
OEM desires to purchase the Equipment and license the Licensed Materials from Netronome on an
original equipment manufacturer basis in order to resell, sublicense or lease such Equipment or
other Licensed Materials to its Customers throughout the Territory in combination with its own
products and services. Netronome is willing to sell such Equipment and license such Licensed
Materials to OEM. The provisions of this “Background” section are intended to generally explain the
reasons that Netronome and OEM have entered into this Agreement, but do not constitute a portion of
the contractual obligations, terms or conditions agreed to by the Parties, which are set forth in
the following sections of the Agreement

     NOW, THEREFORE, in consideration of the mutual promises contained herein, and intending to be
legally bound hereby, the Parties agree as follows:

1. APPOINTMENT AND AUTHORITY OF OEM

     1.1. Appointment. Subject to the terms and conditions set forth herein, Netronome hereby
appoints OEM as Netronome’s nonexclusive distributor of the Equipment and other Licensed Materials
to OEM’s Customers and End-Users in the Territory, and OEM hereby accepts such appointment.
Nothing in this Agreement shall preclude Netronome from marketing, selling, leasing or maintaining
any Netronome Products to or for any other customer, including, without limitation, End-Users,
original equipment manufacturers or other distributors.

     1.2. Territorial Responsibility. OEM may not market or distribute any Netronome Products to
End-Users located outside of the Territory without the prior written consent of Netronome and shall
refer to Netronome all inquiries and referrals received by OEM regarding potential sales of
Netronome Products outside the Territory.

     1.3. Independent Contractors. The relationship of Netronome and OEM established by this
Agreement is that of independent contractors, and nothing contained in this Agreement shall be
construed to (i) give either Party the power to direct and control the day-to-day activities of the
other, (ii) constitute the Parties as partners, joint venturers, co-owners or otherwise as
participants in a joint or common undertaking, or (iii) allow either Party to create or assume any
obligation on behalf of the other Party for any purpose whatsoever.

2. TERMS OF PURCHASE OF EQUIPMENT BY OEM

     2.1. Terms and Conditions. This Agreement covers the (i) purchase of the Hardware components
of the Equipment, (ii) license and permitted use of the Licensed Materials, (iii) purchase of
Support Services associated with the Equipment and the Licensed Materials; and (v) the purchase of
other Services pursuant to the terms and conditions contained in a separately executed statement of
work. All purchases of Equipment and
licenses of Licensed Materials by OEM from Netronome during the Term shall be subject to the terms
and conditions of this Agreement, and except as otherwise agreed in writing by the Parties nothing
contained in any

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Purchase Order shall in any way modify such terms of purchase or license, or
otherwise add any additional terms or conditions.

     2.2. Purchase Prices. The Purchase Price for any Equipment purchased or Licensed Materials
licensed hereunder shall be the List Price therefore as of the date Netronome Receives a Purchase
Order therefore, less the applicable discount set forth in Exhibit C-2 (“OEM Pricing”).
Netronome shall have the right at any time to prospectively revise the List Price for any Equipment
or Licensed Materials upon at least forty-five (45) days’ advance written notice to OEM, provided
that any proposed increase in the Purchase Price shall be tolled for as long as and to the extent
necessary to take into account the following restrictions: (i) any such price increase may not be
greater than those sold to another customer with similar volumes, (ii) any such price increase
shall only apply to Purchase Orders Received by Netronome after the effective date of such price
revision, (ii) any such price increase shall not affect unfulfilled Purchase Orders accepted by
Netronome prior to the effective date of the price revision, (iii) any such price decrease shall
apply to unfulfilled Purchase Orders accepted by Netronome prior to the effective date of the price
revision but not yet shipped, and (iv) except as mutually agreed to by the Parties, the Purchase
Price for any Equipment purchased or Licensed Materials licensed hereunder may be increased no more
than by five percent (5%) in any twelve (12) month period, unless such price increase is directly
attributable to the increase in the production costs of the Equipment.. In the event the Parties
fail to agree upon a Purchase Price increase proposed under Section 2.2.(iv) by the proposed
effective date of the change, then pursuant to Section 7.2.2. hereof (“Termination for Cause”), OEM
shall have the right to terminate this Agreement for “cause”, as well as any outstanding Purchase
Orders placed against this Agreement affected by the proposed increase, without any cost to, or
liability or obligation of, OEM related to such outstanding Purchase Orders and any remaining units
under the Cumulative Commitment. .

     2.3. Taxes. OEM agrees to pay, and to indemnify and hold Netronome harmless from, any sales,
use, excise, import or export, value added or similar tax, not based on Netronome’s net income, as
well as the collection or withholding thereof, including penalties and interest, as well as any
costs associated with the collection or withholding thereof, and all government permit or license
fees and all customs, duty, tariff and similar fees levied upon Delivery of the Equipment or other
Licensed Materials, as well as any costs associated with the collection of any of the foregoing
items. OEM will be responsible for obtaining, at its expense, all required import licenses, permits
or other governmental orders. If a resale certificate or other certificate, document or other
evidence of exemption or payment or withholding of taxes by OEM is required in order to exempt the
distribution of the Equipment or licensing of the Licensed Materials from any such liability or to
enable Netronome to claim any tax exemption, credit, or other benefit, OEM will promptly furnish
such certificate or document to Netronome.

     2.4. Order and Acceptance. All Purchase Orders for Equipment or Licensed Materials submitted
by OEM shall be initiated by a Purchase Order sent to Netronome and requesting a Scheduled Delivery
Date during the Term; provided, however, that a Purchase Order may initially be placed orally or by
telecopy or telex if a confirming hard copy of the Purchase Order is received by Netronome within
ten (10) days after such oral, telecopy or telex Purchase Order. No Purchase Order shall be
binding upon Netronome until accepted by Netronome in writing (electronically or otherwise), and
Netronome shall have no liability to OEM with respect to Purchase Orders that are not accepted.
Netronome shall use reasonable commercial efforts to notify OEM of the acceptance or rejection of a
Purchase Order and of the assigned delivery date for accepted Purchase Orders within five (5) days
after Receipt of the Purchase Order. OEM shall submit Purchase Orders and Change Orders to
Netronome consistent with the applicable lead times set forth in Exhibit B-1 (as amended
from time to time by Netronome). No partial shipment of a Purchase Order shall constitute the
acceptance of the entire Purchase Order, absent the written acceptance of such entire Purchase
Order. Netronome shall use reasonable commercial efforts to Deliver Equipment or other Licensed
Materials as specified in Netronome’s written acceptance of OEM’s Purchase Order; provided,
however, that in the case of an accepted Emergency Purchase Order, Netronome shall use reasonable
best efforts to Deliver such Equipment or other Licensed Materials.

     2.5. Cancellation and Reschedule Charges. OEM may utilize written change orders (“Change
Order(s)”) without penalty for Purchase Orders that have not yet been accepted by Netronome. For
Purchase Orders that have been accepted by Netronome but have not yet been shipped, OEM may utilize
a Change Order to
change the quantity ordered, delay Delivery, or cancel the Purchase Order altogether. Unless
Netronome agrees otherwise in writing (electroncally or otherwise), no Change Order shall be
effective unless accompanied by the following
Change Order Fees, if any, specified below:

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     2.5.1. Requests Made Greater than 60 Days. In the event Netronome Receives a
Change Order more than sixty (60) days before the Scheduled Delivery Date as specified under
the current Purchase Order, Netronome will honor the modified Purchase Order as requested at
no charge.

     2.5.2. Requests Made Between 31 and 60 Days. In the event (i) (a) Netronome
Receives a Change Order between sixty (60) and thirty-one (31) days before the Scheduled
Delivery Date as specified under the current Purchase Order, and (b) OEM agrees to
pay Netronome a Change Order Fee equal to ten percent (10%) of the Purchase Price of the
Equipment requested to be modified under the Change Order, then (ii) Netronome may either
(a) accept the Change Order as requested and invoice OEM for the Change Order Fee, or (b)
cancel the Purchase Order.

     2.5.3. Requests Made 30 Days or Less. In the event Netronome Receives a Change
Order thirty (30) days or less before the Scheduled Delivery Date as specified under the
current Purchase Order, Netronome shall not be obligated to honor the modified Purchase
Order as requested.

Notwithstanding subsections 2.5.2. and 2.5.3. above, (i) in no event shall OEM be liable for any
Change Order Fees to the extent the the Change Order, if accepted, would result in an increase in
quantity of the units of Equipment ordered under the current Purchase Order, and (ii) in no event
will either Party be liable for the fees described therein to the extent the Change Order seeks to
(a) correct any typographical or clerical errors, or (b) change the Place(s) of Delivery prior to
the date of shipping. Any increase in the quantity of the Equipment on a Change Order may be at a
Scheduled Delivery Date different than the original Purchase Order.

     2.6. Delivery. Netronome shall ship the Equipment to the Place(s) of Delivery specified in
the Purchase Order, and Delivery shall be deemed to have occurred at Netronome’s shipping point
upon shipment in accordance with this Agreement. Unless otherwise stipulated in this Agreement,
the Equipment shall be Delivered duty unpaid. The time of Delivery as specified in this Agreement
shall be strictly adhered to, and time shall be of the essence. Netronome may Deliver any
Equipment or other Licensed Materials electronically to the extent that such Equipment or other
Licensed Materials, or portion thereof, can be so Delivered subject to its then-current delivery
procedures.

     2.7. Shipping. To the extent any Equipment or other Licensed Materials cannot be Delivered
electronically, Netronome will ship, unless instructed otherwise, by standard ground and prepay and
add freight costs from Netronome’s shipping point to the Place(s) of Delivery specified on the
Purchase Order. All freight arrangements will be billed to OEM. All Equipment shipped pursuant to
the terms of this Agreement shall be suitably packed for shipment in Netronome’s standard shipping
cartons, marked for shipment to the Place(s) of Delivery, and shipped FOB Origin (Netronome’s
designated manufacturing facility in Cranberry Township, Pennsylvania). Upon Delivery, risk of
loss to the Equipment or other Licensed Materials (and title to the Hardware included in such
Equipment) shall pass to OEM. Unless otherwise instructed in writing by OEM, Netronome shall
select the carrier. All freight, insurance and other special shipping expenses, as well as any
special packing expense, shall be paid by OEM from the FOB shipping point.

     2.8. Payment. Netronome shall invoice OEM upon shipment in United States dollars, net thirty
(30) days from the date of invoice, including any freight, taxes or other applicable costs
initially paid by Netronome but to be borne by OEM. OEM agrees to pay any amounts invoiced by
Netronome in accordance with this Agreement by wire transfer or as otherwise directed by Netronome.
With Netronome’s written permission, OEM may off-set any amounts due under such invoices by any
claim for discrepancies and/or defective Equipment made in accordance with this Agreement. In the
event the number of DOA units exceed twenty percent (20%) of the total comparable unit shipments
for the previous ninety (90) day period, OEM may, without penalty, hold-back up to twenty percent
(20%) of its payment of any valid invoice rendered hereunder (“short pay”) until such time as the
DOA percentage falls below twenty percent (20%) of the total unit shipments measured over a
succeeding ninety (90) day period. Netronome reserves the right to charge OEM a late payment in
the event OEM fails to remit
invoice payments when due, in an amount not to exceed one and one-half percent (11/2%) per month with
respect to any amount in arrears, or the maximum rate allowable by law, whichever is less. OEM
shall pay all of Netronome’s costs and expenses (including reasonable attorney’s fees) to enforce
Netronome’s rights under this section (Section 2.8).

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     2.9. Inspection; Quality Assurance. The Parties acknowledge the requirement that the
Equipment be supplied with as close to a “zero defect rate” as is practicably possible, that they
be designed for long life and robustness and that they should generally perform to their
Specifications for up to five years (the “Service Life”). The Equipment and the Licensed Materials
should be subjected to the quality test plan specified in Exhibit H (“Quality Test Plan”).
Prior to Delivery of the Equipment, Netronome will perform its standard test procedures or programs
which are applicable to the Equipment and the Licensed Materials as well as the Enhanced Inspection
specified in Exhibit G (“Enhanced Inspection”) hereto. If OEM has conveyed in writing its
intention to witness Netronome’s tests or the Enhanced Inspection, OEM shall be responsible for any
out-of-pocket expenses or charges that may be associated with witnessing such tests. OEM shall be
deemed to have accepted each such Netronome Product upon Netronome’s completion of final acceptance
tests at Netronome’s designated facility in Cranberry Township, Pennsylvania.

     2.10. Epidemic Failure. In the case of an Epidemic Failure, Netronome shall, within ten (10)
business days, propose an action plan to fix the failure of any affected Netronome Product(s) and
to implement this action plan immediately upon OEM’s acceptance thereof. If the action plan is not
acceptable to OEM, OEM can require Netronome to repair or replace, at Netronome’s option, the
affected Netronome Product(s). The repair or replacement shall be done at mutually agreed-upon
location(s); provided, however, that costs of repair or replacement together with the reasonable
shipping, transportation and other costs of gathering and redistributing the Netronome Products
shall be borne by Netronome. In addition to bearing the costs associated therewith, if requested by
OEM, Netronome shall support and provide at Netronome’s expense a sufficient number of Netronome
Products to permit the field exchange or “hot swap” of Netronome Product(s) at customer sites. The
Parties agree to make all reasonable efforts to complete the repair and replacement of all of the
affected Netronome Product(s) within thirty (30) business days after written notice of Epidemic
Failure by either Party. Netronome also agrees that OEM will be supported with accelerated
shipments of replacement Netronome Product(s) to cover OEM’s supply requirements. OEM to make all
reasonable efforts to return any replaced Netronome Products as soon as reasonably practicable.

     2.11. Allocation. If Netronome is unable to meet its Delivery commitments hereunder and is
required to allocate its capacity, inventory, test equipment, resources, use of personnel, parts,
components, supplier resources or capabilities under 2-615 of the Uniform Commercial Code (or 13
Pa. C.S. §2615), Netronome may adopt an equitable plan of allocation and adjust delivery schedules
accordingly, taking into consideration the percentage of volume purchased by OEM for specific
Equipment or resources affected by the plan, and provided that Netronome (i) acts in good faith,
and (ii) allocates its capacity, inventory, test equipment, resources, use of personnel, parts,
components, and available supply of Equipment to fill orders for OEM in accordance with the
following priorities: (a) Emergency Purchase Orders for Spare(s) to be filled first; and (b) a fair
allocation between OEM’s other Purchase Orders and Netronome’s other non-expedited purchase orders
/ requirements to be filled next.

3. SOFTWARE LICENSING RIGHTS

     3.1. License to OEM. Subject to the terms of this Agreement, Netronome hereby grants to OEM
(including its Affiliates) a non-exclusive, royalty-free, fully-paid license and right to use,
copy, market, distribute and demonstrate the Licensed Materials in the Territory in carrying out
OEM’s rights and obligations under this Agreement. Such rights shall not include sub-licensing the
Licensed Materials except as permitted in Section 3.2.

     3.2. Right to Sublicense. Subject to the terms of this Agreement, Netronome hereby grants to
OEM (including its Affiliates) a non-exclusive, royalty-free, non-transferable, right to sublicense
the Licensed Materials (directly or indirectly through one or more tiers of distribution) to its
Customers and End-Users located in the Territory solely for use with the Equipment purchased or
leased by such End-Users. Each sale of Equipment shall
include a non-exclusive, royalty-free, fully-paid license for the Licensed Materials which OEM may
transfer and sublicense to its Customers and End-Users within the Territory. Except as set forth
in this Agreement, no right or license is granted by this Agreement to OEM to use, copy, sublicense
or otherwise transfer the Licensed Materials apart from the Equipment or to make any modifications
or derivative works to the Licensed Materials. OEM shall not copy the Licensed Materials in whole
or in part, except as reasonably necessary for distribution or maintenance of the Equipment. All
copies of the Licensed Materials must contain all proprietary marks, legends and copyright notices
that appear on the original copies delivered to OEM by Netronome.

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     3.3. End-User Software License Agreement. OEM is authorized to transfer and sublicense the
Licensed Materials to End-Users under the terms and restrictions of an End-User Software License
Agreement provided it remains at least as protective of Netronome’s Intellectual Property Rights as
those found in Netronome’s form of End-User license agreement attached hereto as Exhibit
D-2 (“Netronome Form of End User License Agreement”). OEM shall require each End-User to
accept the End-User Software License Agreement as a condition precedent to the purchase of the
Equipment. Netronome has the right to review procedures for ensuring that End-Users enter into the
End-User Software License Agreement and OEM shall comply with all modifications to such procedures
reasonably requested by Netronome. OEM agrees that it will accept the return of the Equipment from
End-Users who have not consented to be bound by the terms and restrictions of such End-User
Software License Agreement.

4. LIMITED WARRANTIES AND DISCLAIMERS

     4.1. Limited Warranties. Netronome shall, and hereby does, provide the following limited
warranties for the warranty periods specified below; provided, however, that OEM’s subscription to
Netronome’s Support Plan may include the continuation of the warranty obligations specified below
for the term of the Support Plan subscription:

     4.1.1. Equipment Warranty. Netronome warrants that the Equipment delivered
under this Agreement will be (i) made entirely from new or equivalent to new parts, and (ii)
free and clear of all liens, claims, encumbrances and other restrictions. In addition,
Netronome warrants that during the period of fifteen (15) months following the Warranty
Start Date (the “Equipment Warranty Period”), any Equipment obtained under this Agreement
will (i) be free of defects in materials and workmanship, and (ii) under normal use,
substantially conform to its Documentation.

     4.1.2. Software Warranty. Netronome warrants that during the period of ninety
(90) days following the Warranty Start Date (the “Software Warranty Period”), any Software
obtained under this Agreement will, under normal use, substantially conform to its
Documentation.

     4.1.3. Media Warranty. Netronome warrants that for a period of one hundred and
twenty (120) days following the Warranty Start Date, any media containing the Software (but
not the Software itself) will, under normal use, be free of defects in materials and
workmanship. If a defect in any such media should occur during this one hundred and twenty
(120) day period, the media may be returned to Netronome and Netronome will replace the
media without charge. Netronome shall have no responsibility to replace media if the
failure of the media results from OEM’s accident, abuse or misapplication of the media.

     4.1.4. DOA Warranty. Netronome warrants that for a period of sixty (60) days
following the Warranty Start Date, in the event any Equipment or other Licensed Materials
materially fails to substantially perform in accordance with its respective Documentation
(“DOA”), Netronome shall replace the failed Netronome Product with a new Netronome Product
by shipping its replacement within five (5) days of notification (including the results of
any diagnostic tests reasonably requested by Netronome support), waiving any expedited
charges, in order to effect the earliest reasonable replacement of such defective Netronome
Product(s). Notwithstanding the foregoing, cosmetic or other deficiencies that do not
materially affect the Equipment or other Licensed Materials’ performance shall not, in and
of themselves, render Equipment or other Licensed Materials “DOA” hereunder.

     4.2. Exclusive Remedy. If any Equipment or Licensed Materials furnished by Netronome under
this Agreement fails to conform to any warranty during the applicable warranty period, Netronome’s
sole and exclusive liability for breach of warranty under this Article 4 will be, at Netronome’s
option, to either repair or replace the Equipment or other Licensed Materials. To receive the
benefit of the foregoing warranties, OEM (or its designated agent) shall, within the applicable
warrany period, notify Netronome of its warranty claim and request a Return Material Authorization
(“RMA”) number. Netronome shall use reasonable commercial efforts to either (i) notify OEM of the
RMA number within three (3) business days after Receipt of the request, or (ii) elect to advance
replace any Equipment or other Licensed Materials subject to a warranty claim after consultation
with OEM. In either event, within ten (10) days after Receipt of the RMA number or Netronome’s
confirmation that it will advance

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replace the Equipment or other Licensed Materials subject to the
warranty claim, OEM (or its designated agent) shall return to Netronome the Equipment or other
Licensed Materials subject to the warranty claim, freight prepaid, in an appropriate shipping
carton with the RMA number displayed on the outside of the carton. As promptly as possible but no
later than thirty (30) working days after receipt by Netronome of properly rejected Equipment or
other Licensed Materials, Netronome shall, at its option and expense, either repair or replace the
Equipment or other Licensed Materials. Netronome shall pay the shipping charges back to OEM for
properly rejected Equipment or other Licensed Materials; otherwise, OEM shall be responsible for
the shipping charges. This is the Netronome’s only liability and OEM’s exclusive remedy for any
claim under this Article 4, whether arising in tort or contract.

     4.3. Disclaimer. EXCEPT FOR WARRANTIES SPECIFICALLY STATED IN THIS ARTICLE 4, NETRONOME
HEREBY DISCLAIMS ALL EXPRESS OR IMPLIED WARRANTIES OF ANY KIND, INCLUDING, WITHOUT LIMITATION, ANY
IMPLIED WARRANTIES OF MERCHANTABILITY, NON-INFRINGEMENT AND FITNESS FOR A PARTICULAR PURPOSE.

     4.4. Limitation of Liability. NETRONOME’S LIABILITY UNDER THE WARRANTY SHALL BE LIMITED TO A
REFUND OF OEM’S PURCHASE PRICE. IN NO EVENT SHALL NETRONOME BE LIABLE FOR THE COST OF PROCUREMENT
OF SUBSTITUTE GOODS BY OEM OR OEM’S CUSTOMER OR FOR ANY SPECIAL, CONSEQUENTIAL OR INCIDENTAL
DAMAGES FOR BREACH OF WARRANTY.

     4.5. Prohibition of Equipment Use In High Risk Activities and Life Support Applications. The
Equipment is not designed, manufactured or intended for use or resale as on-line control equipment
in hazardous environments requiring fail-safe performance, such as in the operation of nuclear
facilities, aircraft navigation or communications systems, air traffic control, life support
systems, human implantation, nuclear facilities or systems or any other application where product
failure could lead to loss of life or catastrophic property damage or weapons systems, in which the
failure of the program could lead directly to death, personal injury, or severe physical or
environmental damage (“High Risk Activities”). Accordingly Netronome and, where applicable,
Netronome’s third party licensors specifically disclaim any express or implied warranty of fitness
for High Risk Activities. OEM will indemnify, defend and hold Netronome harmless from any loss,
cost or damage resulting from OEM’s breach of the provisions of this Section 4.5, including without
limitation attorneys’ fees and costs relating to any lawsuit or threatened lawsuit, arising out of
such use or sale.

5. ADDITIONAL OBLIGATIONS OF OEM

     5.1. Minimum Commitment(s). In consideration of the licenses granted above and discounting
schedules extended in Exhibit C-2 (“OEM Pricing”), during the Term OEM agrees to purchase
the Minimum Commitment(s) of Equipment outlined in Exhibit C-2 (“OEM Pricing”).

     5.2. Reports, Forecasts and Business Reviews.

          5.2.1. Sales Reports. To the extent necessary to facilitate Netronome’s production
scheduling, by April 30th, July 31st, October 31st and January
31st of each year during the Term, OEM shall provide Netronome with a quarterly sales
report in an electronic format mutually agreeable to the Parties (“Quarterly Sales Report”). At a
minimum, such Quarterly Sales Report shall include: (i) the description and quantities of the
Equipment purchased during the prior calendar quarter, (ii) an inventory of all Equipment in OEM’s
stock as of the end of the prior calendar quarter, (iii) an inventory of all Equipment shipped in
the prior calendar quarter, and (iv) reasonable geographic information related to the units of
Equipment sold during the prior calendar quarter, including, at least, whether the sale was within
or outside of United States.

          5.2.2. Forecasts. To the extent necessary to facilitate Netronome’s production
scheduling, by April 30th, July 31st, October 31st and January
31st of each year during the Term, OEM shall provide Netronome with a good faith
forecast (“Forecast”) of its anticipated future Purchase Orders for Equipment for the next six (6)
months. Netronome may rely on the most recent Forecast in anticipating the need for Equipment
components and manufacturing for the six (6) month period following the Forecast (e.g., Netronome
may rely on the April 30th Forecast for the six (6) month period ending October
31st in the same year).

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          5.2.3. Business Reviews. OEM and Netronome shall hold business review meetings at
least three (3) times annually. At a minimum, the meetings shall discuss product roadmaps, product
issues, and other operational items.

     5.3. Performance Obligations. OEM shall represent the Netronome Products accurately and
fairly and shall avoid any misleading or unethical business practices. OEM shall not (i) make
warranties of functionality or performance on any Netronome Products except as specifically set
forth in the Documentation, or (ii) except as set forth in Section 9.3, alter, re-label or change
the Netronome Products or the Documentation without the prior written approval of Netronome. OEM
shall take all necessary steps to ensure compliance by its employees or its other representatives
with OEM’s obligations under this Agreement.

     5.4. Installations. While as between the Parties OEM shall be solely responsible for the
installation and operation of the Equipment covered hereby, in connection with OEM’s use of or
installation of any such Equipment or other Licensed Materials, OEM may (i) rely on Netronome’s
written instructions and related technical advice offered or given in connection with the use of or
installation of any such Equipment or other Licensed Materials, and (ii) use, duplicate and
disclose written instructions or related technical data delivered or disclosed by Netronome to OEM
for the purpose of installation, operation or maintenance of the Equipment purchased by OEM. OEM,
or its subcontractors, shall use industry standard practices when installing or operating the
Equipment.

     5.5. Audit of OEM. OEM will keep and maintain, for a period of three (3) years, proper
records and books of account relating to the license of the Licensed Materials under this
Agreement. Upon reasonable notice to OEM, Netronome may exercise its Audit Rights with respect to
such records no more than once every six (6) months to verify OEM’s performance hereunder; provided
that OEM shall not be responsible for any of costs associated with the audit unless the audit
reveals a discrepancy in payments due of more than five percent (5%), in which case OEM shall
reimburse Netronome for the reasonable fees of the auditor conducting the Audit Rights.

6. ADDITIONAL OBLIGATIONS OF NETRONOME

     6.1. Delivery Time. In consideration of OEM’s efforts hereunder, Netronome shall deliver high
quality products in conformance with the Documentation, minimize delivery time as much as practical
and timely fulfill delivery obligations as committed in any acceptance of a Purchase Order
hereunder.

     6.2. Advance Notification of Modifications. Netronome, in its sole discretion, shall have the
right to make Modifications to any Equipment or other Licensed Materials; provided, however, that
Netronome agrees to use reasonable best efforts to notify OEM in writing at least ninety (90) days
in advance of making any significant form, fit, or functional change(s) to the Equipment or other
Licensed Materials. In the event a critical situation occurs which forces a change to occur prior
to expiration of this ninety (90) day notification period, OEM will be provided with notification
promptly upon Netronome becoming aware of the situation. Furthermore, Netronome agrees to provide
OEM with the option to evaluate potential changes which affect form, fit, or function, in advance
of forecasted or requested shipments to OEM. Such option may include the loan of Equipment for
thirty (30) days. If the proposed changes are deemed unacceptable to OEM because they are likely
to, or will ultimately, result in a material adverse effect on OEM’s business arrangement
hereunder, upon written notification, Netronome will, at receipt of OEM’s Purchase Order, supply
OEM with up to six (6) months of the forecasted requirements at the previous configuration before
making the proposed change. If Netronome is not able to provide the previous configuration,
Netronome will use reasonable commercial efforts to: (i) provide information to assist OEM in
making changes to OEM’s products to accommodate changes, or (ii) provide OEM with End of Life
Equipment or other Licensed Materials in accordance with this Agreement. If in OEM’s and
Netronome’s mutual good faith judgment such remedies will be insufficient to enable to OEM to
satisfy its on-going contractual obligations, OEM may elect to exercise its “Make or Manufacture
Option” specified in Section 6.8 with respect to any Equipment or other Licensed Materials subject
to such modifications.

     6.3. Equipment Discontinuance. Netronome, in its sole discretion, shall have the right to
discontinue or otherwise “End of Life” (“EOL”) any Equipment or other Licensed Materials; provided,
however, that Netronome agrees to use reasonable commercial efforts to notify OEM in writing at
least one hundred eighty (180) days prior to any such discontinuation of Equipment or other
Licensed Materials. If the proposed EOL is deemed unacceptable to OEM because it is likely to, or
will ultimately, result in a material adverse effect on OEM’s

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business arrangement hereunder, upon
written notification, Netronome will, at receipt of OEM’s Purchase Order, supply OEM with up to six
(6) months of the forecasted requirements at the previous configuration before effectuating the EOL
change. If Netronome is not able to provide the previous configuration, Netronome will use
reasonable commercial efforts to: (i) provide information to assist OEM in making changes to OEM’s
products to accommodate changes, or (ii) provide OEM with End of Life Equipment or other Licensed
Materials in accordance with this Agreement. If in OEM’s and Netronome’s mutual good faith
judgment such remedies will be insufficient to enable to OEM to satisfy its on-going contractual
obligations, OEM may elect to exercise its “Make or
Manufacture Option” specified in Section 6.8 with respect to any Equipment or other Licensed
Materials subject to such EOL status.

     6.4. Support Services. In addition to any warranty services provided under Article 4, during
the period that OEM provides End-User Maintenance Services to End-Users, OEM may enroll in
Netronome’s Support Plan by paying Netronome the specified Maintenance Fee. Upon payment of the
Maintenance Fee, Netronome shall provide OEM with the applicable level of Support Services set
forth in the Support Plan. Any Enhancements provided to OEM pursuant to the Support Plan shall be
deemed part of the Licensed Materials licensed hereunder.

     6.5. End-User Maintenance. Provided OEM is up to date with the payment of Maintenance Fees,
during the Term and for a period of five (5) years following the expiration or termination of this
Agreement for any reason, Netronome shall offer to provide OEM with Support Services necessary or
prudent to enable OEM to provide its End-Users with End-User Maintenance Services for the Equipment
and other Licensed Materials distributed hereunder.

     6.6. Training. Upon OEM’s request and at Netronome’s prevailing rates, Netronome shall
provide training to OEM’s personnel regarding installation and service of the Equipment and other
Licensed Materials. The training shall take place at a mutually agreed upon time and location and
OEM shall reimburse Netronome for all reasonable out-of-pocket expenses, including travel and
living expenses.

     6.7. Additional Services. OEM may request Netronome to perform consulting and support
Services in addition to the Services set forth in this Article 6, including any services excluded
under Section 6.4. Netronome may, at its sole option, agree to provide such Services at its
prevailing rates then in effect for such Services, plus reimbursement for all reasonable
out-of-pocket expenses. All fee-based and/or cost-based Services performed by Netronome for OEM
are sold and itemized separately. Such Services shall be mutually agreed upon in a separate written
and signed agreement as defined in a written Statement of Work. The Services covered under this
Section 6.7 shall include but not be limited to design; design engineering; integration and
assembly; testing; software, system, or hardware installation and configuration; component
programming or coding; special storage, handling, or logistics; special packaging and/or labeling;
kitting; and manufacturing or production support services.

     6.8. Make or Manufacture Option.

          6.8.1. Escrowed Materials; Release Conditions. During the Term of this Agreement,
Netronome shall within thirty (30) days of the first customer shipment of the Netronome Products
and thereafter within thirty (30) days of any material change in Source Code deliver the Escrowed
Materials to an independent third party designated by OEM to be held in escrow at OEM’s expense.
OEM shall be entitled to the release of the Escrowed Materials in the event of any of the following
release conditions (each a “Release Condition”): (i) in the event OEM is entitled to exercise the
“Make or Manufacture Option” in accordance with Sections 6.2 or 6.3 of this Agreement, or (ii) in
the event Netronome (a) seeks protection under any bankruptcy, receivership or comparable
proceeding, or if any such proceeding is instituted against Netronome (and not dismissed within
ninety (90) days), or (b) is in material default of (1) its Support Services obligations, as
defined in Exhibit F, and such material default has not been cured per the cure period as
defined in Section 7.2.2, (2) its obligations to supply the Equipment or Licensed Materials to OEM,
or (3) its Financial Covenant and other obligations set forth in Section 6.11 and Exhibit I
(“Financial Covenant”) hereof. Notwithstanding the foregoing, to the extent that OEM exercises its
right to the “Escrowed Materials” due to Netronome being in breach of its Financial Covenant, OEM
agrees to suspend its use of the Escrowed Materials released hereunder upon Netronome’s
demonstration that it has come back into compliance with its Financial Covenant.

Page 8

 

          6.8.2. Technology License. Subject to the terms and conditions of this Agreement
(including without limitation any payment obligations), OEM shall have and Netronome hereby grants
to OEM, a limited, non-exclusive, non-transferable, non-sublicensable license to view, use, modify
and make derivatives of the Escrowed Materials, at no charge, sufficient to enable OEM to “step
into Netronome’s shoes” to manufacture the Equipment and Licensed Materials. OEM shall only seek
to exercise this license to the Escrowed Materials in the
event of a Release Condition, and only for no more than the shorter period of (i) thirty (30)
months following the first release of the Escrowed Materials, or (ii) one (1) year following the
expiration or earlier termination of the Term of this Agreement.

OEM shall be prohibited from: (i) disclosing, selling, copying or otherwise transferring the
Escrowed Materials except as necessary to carry out OEM’s right to distribute, support, maintain
and manufacture the Equipment or Licensed Materials; (ii) removing the Escrowed Materials from
OEM’s facilities or the facilities of OEM’s authorized manufacturer(s) of the Equipment or Licensed
Materials, or (iii) creating any Enhancements, Modifications or Upgrades other than those to
correct Material Defects. OEM further agrees, at all times while in possession of the Escrowed
Materials, to protect against unlawful disclosure and ensure the integrity and protection of
Netronome’s Intellectual Property Rights therein by maintaining, as applicable, Netronome’s
proprietary rights notices on all technical manuals and related Documentation for the program(s).

     6.9. Audit of Netronome. Netronome will keep and maintain, for a period of three (3) years,
proper records and books of account relating to the payment obligations to OEM under this
Agreement. Upon reasonable notice to Netronome, OEM may exercise its Audit Rights with respect to
such records no more than once every six (6) months to verify Netronome’s performance hereunder;
provided that Netronome shall not be responsible for any of costs associated with the audit unless
the audit reveals a discrepancy in payments due of more than 5%, in which case Netronome shall
reimburse OEM for the reasonable fees of the auditor conducing the Audit Rights.

     6.10. Insurance. During the Term of this Agreement, Netronome shall maintain any insurance
required by law and, to the extent not so required, the following insurance: (i) Worker’s
Compensation insurance and Employer’s Liability insurance for its employees which shall fully
comply with the statutory requirements of all applicable state and federal laws; (ii) Commercial
General Liability Insurance, including contractual liability, products liability and completed
operations coverage, premises-operations, broad-form property damage, independent contractors,
personal injury) with limits of at least $1,000,000.00 for bodily injury, including death, to any
one person, $1,000,000.00 as a result of any one occurrence, and $1,000,000.00 for each occurrence
of property damage; (iii) Professional Liability (Errors and Omissions) insurance, with limits of
not less than $2,000,000.00 per occurrence; and (iv) Umbrella Liability Insurance coverage with a
minimum combined single and aggregate limit of $5,000,000.00. Netronome shall furnish OEM with
certificates and/or adequate proof of the foregoing insurance. OEM shall be named as an additional
insured on the insurance policies referred to in clause (ii), (iii) and (iv) above. Upon request by
OEM, all the required insurance policies shall contain a provision stating OEM’s name and address
and shall require the insurer to notify OEM in writing at least thirty (30) days prior to
cancellation of, or any material change to, the policies.

     6.11 Financial Covenant.

          6.11.1 Financial Covenant. During the Term of this Agreement, Netronome shall
maintain, on a consolidated basis, the minimum cash balance (“Minimum Cash Balance”) set forth in
Exhibit I (“Minimum Cash Balance”) hereto and meet its other related obligations set forth
in this Section 6.11 (collectively, the “Financial Covenant”).

          6.11.2 Financial Information. To assist OEM in its confirmation of Netronome’s
continued compliance with its Financial Covenant, Netronome agrees to provide OEM with the
following: (i) quarterly during the Term, copies of its most recent Financial Statements, prepared
in accordance with GAAP (consistently applied), whether audited or not, (ii) by April
30th, July 31st, October 31st and January 31st of each
year during the Term, a cash flow forecast for Netronome, on a consolidated basis, for the next two
succeeding calendar quarters (the “Cash Flow Forecast”), in such form and with such detail as is
satisfactory to OEM, accompanied by such supporting detail and documentation as shall be requested
by OEM in its reasonable discretion, and (iii) such other information as OEM may reasonably request
concerning Netronome’s compliance with its Financial Covenant. As used herein,

Page 9

 

“Financial
Statements” means Netronome’s consolidated balance sheets and statements of operations (i.e.,
profit and loss statements) prepared in accordance with GAAP, consistently applied. “GAAP” means
the generally accepted accounting principles in the United States as in effect from time to time.

          6.11.3 Notice. Netronome agrees to promptly advise OEM if, to the best of its
knowledge after due inquiry, Netronome has failed to satisfy its Financial Covenant. Netronome
acknowledges and agrees that, for whatever period of time Netronome may be, or shall have been, in
breach of its Financial Covenant during the Term, OEM’s Minimum Commitments obligations set forth
in Section 5.1 and Exhibit C.2 (“OEM Pricing”) hereof may be tolled at OEM’s election for
so long as Netronome has not cured its Financial Covenant and OEM is not otherwise entitled to
exercise the “Make or Manufacture Option” in accordance with Section 6.8 of this Agreement.
Notwithstanding the foregoing, to the extent the Minimum Commitment Period specified in Exhibit
C-2 (“OEM Pricing”) hereof shall have been suspended due to Netronome being in breach of its
Financial Covenant, the tolled Minimum Commitment Period shall cease to be suspended upon
Netronome’s demonstration that it has come back into compliance with its Financial Covenant,
whereupon the Minimum Commitment Period shall be extended to give effect to whatever period of time
OEM’s Minimum Commitments obligations hereunder shall have been suspended.

7. TERM AND TERMINATION

     7.1. Term. This Agreement shall continue in force for a fixed term of three (3) years from
the Effective Date (the “Term”) unless terminated earlier under the provisions of this Article 7.
Upon the expiration of this Term, this Agreement shall terminate automatically without notice
unless prior to that time the Term of the Agreement is extended by mutual written consent of the
Parties.

     7.2. Termination.

     7.2.1. Termination for Convenience. This Agreement may be canceled by either
Party for any reason or no reason, whether or not extended beyond the initial Term, by
giving the other Party written notice three hundred sixty-five (365) days in advance.

     7.2.2. Termination for Cause. Except as set forth in Subsection 7.5 below, in
the event of any material breach of this Agreement, the non-breaching Party may terminate
this Agreement by giving thirty (30) days’ prior written notice to the breaching Party;
provided, however, that this Agreement shall not terminate if the breaching Party has cured
the breach prior to the expiration of such thirty (30) day period, or if such breach cannot
be cured within such thirty (30) day period, the breaching Party has taken steps within such
thirty (30) day period to cure the breach and thereafter cured such breach as soon as
practicable.

     7.2.3. Termination for Insolvency. This Agreement shall terminate, without
notice (i) upon the institution by or against either Party of insolvency, receivership or
bankruptcy proceedings or any other proceeding for the settlement of such Party’s debts,
(ii) upon either Party’s making an assignment for the benefit of creditors, or (iii) upon
either Party’s dissolution or ceasing to do business.

     7.3. Fulfillment of Purchase Orders upon Termination. Upon expiration or termination of this
Agreement for reasons other than solely for OEM’s breach or insolvency, Netronome shall continue to
fulfill, subject to the terms of Article 2 above, all Purchase Orders accepted by Netronome prior
to the date of termination.

     7.4. Return of Materials. Except as required for OEM to provide End-User Maintenance Services
hereunder, upon expiration or termination of this Agreement for any reason, the Parties shall
return to one another their respective Confidential Information, Documentation and all other
tangible materials related to the other Party’s products, including, without limitation, all
derivative works and translations thereof. If OEM shall cease to provide End-User Maintenance
Services hereunder for any reason, OEM shall return to Netronome all remaining tangible items
related to the Equipment or other Licensed Materials.

Page 10

 

     7.5. Survival. The provisions of Section 1.3 (“Independent Contractors”), Section 2.8
(“Payment”), Section 5.1 (“Minimum Commitment(s)”) Section 6.5 (“End-User Maintenance”), Section
6.8 (“Make or Manufacture Option”), Article 4 (“Limited Warranties and Disclaimers”), Article 8
(“Intellectual Property Rights
and Confidentiality”), Article 10 (“Intellectual Property Rights Indemnity”), and Article 12
(“General Provisions”) shall survive the expiration or termination of this Agreement for any
reason. All licenses to the Licensed Materials granted or otherwise entered into with End-Users
hereunder prior to the expiration or termination of this Agreement shall survive the expiration or
termination of this Agreement for any reason. All other rights and obligations of the Parties shall
cease upon termination of this Agreement.

8. INTELLECTUAL PROPERTY RIGHTS AND CONFIDENTIALITY

     8.1. Intellectual Property Rights. OEM hereby recognizes that, except as expressly and
unambiguously provided in this Agreement, nothing in this Agreement grants OEM any Intellectual
Property Rights in the Equipment, Licensed Materials, or Netronome’s Confidential Information or
Marks, and all rights to such Intellectual Property Rights are retained by Netronome. OEM also
agrees to retain all proprietary marks, legends and patent and copyright notices that appear on the
Equipment, Licensed Materials, or Netronome’s Confidential Information or Marks delivered to OEM by
Netronome and all whole or partial copies thereof.

     8.2. Confidentiality. Each Party acknowledges that by reason of its relationship to the other
hereunder, it may have access to certain Confidential Information. Each Party agrees to observe
its obligations with respect to the Confidential Information of the other Party as set forth in
that certain Mutual Non-Disclosure Agreement, dated November 30, 2007, between the Parties.

     8.3. Source Code. OEM agrees that except as provided in Section 6.8 (“Make or Manufacturer
Option”) hereunder, (i) the Source Code of the Licensed Materials is not being provided to OEM, and
that OEM has no right to access or use such Source Code, and (ii) OEM may not decompile, reverse
engineer or otherwise manipulate the Software so as to derive such Source Code.

9. PUBLICITY; TRADEMARKS AND TRADE NAMES

     9.1. Publicity. Except as permitted under this Agreement, neither Party to this Agreement may
publicize the existence of the business relationship established by this Agreement in connection
with its products, promotions and publications without the written consent of the other Party,
which approval shall not be unreasonably withheld.

     9.2. Use of Marks. During the Term, (i) OEM shall have the right to indicate to the public
that its systems contain Equipment and other Licensed Materials and to designate such Equipment and
other Licensed Materials under the Marks that Netronome may adopt from time to time, and (ii)
either Party may use the logos of the other Party in its promotional materials and publications to
represent the Parties business relationship to the extent provided hereunder; provided that all
uses of each Party’s Marks must be in accordance with each Party’s usage guidelines therefore and
must be pre-approved by each Party’s respective marketing departments. Except as set forth in this
Article 9, nothing contained in this Agreement shall grant to either Party any right, title or
interest in either Party’s Marks. At no time during or after the Term shall either Party challenge
or assist others to challenge the Intellectual Property Rights in either Party’s Marks or the
registration thereof or attempt to register any Marks confusingly similar to either Party’s Marks.
Despite the foregoing, neither Party may disclose the specific terms of this Agreement, except as
required by applicable law or legal process.

     9.3. Equipment. Upon OEM’s request, Netronome shall affix to designated Equipment or other
Licensed Materials certain of Netronome’s and/or OEM’s Marks. OEM will pay Netronome’s reasonable
set-up costs plus any variance in product cost for such product labeling. Netronome and OEM must
approve in writing the affixation, use or other display of a Mark on Equipment or other Licensed
Materials, and the manner of such affixation. OEM may modify the external packaging and/or
labeling of Equipment or other Licensed Materials for the purpose of private labeling the products
consistent with other products manufactured by OEM. Any modifications to the Equipment or other
Licensed Materials are subject to Netronome’s prior approval of the technical content of those
modifications.

Page 11

 

10. INTELLECTUAL PROPERTY RIGHTS INDEMNITY

     10.1. Indemnification. Netronome shall indemnify, defend and hold OEM harmless from and
against any and all third party claims, actions or demands that the Equipment or other Licensed
Materials as provided by Netronome to OEM under this Agreement infringes or violates any
Intellectual Property Right. Netronome will pay any damages, settlements, costs or expenses
(including reasonable attorneys’ fees) attributable to such claims, actions or demands awarded
against OEM.

     10.2. OEM Obligations. Netronome’s obligations under this Article 10 are contingent on OEM
(i) providing prompt written notice to Netronome of such suit, claim, or proceeding, (ii) giving
Netronome reasonable information, assistance and cooperation required to defend such suit, claim,
or proceeding, so long as Netronome pays OEM its reasonable out-of-pocket expenses, and (iii)
allowing Netronome to control the defense of any such action and all negotiations for its
settlement or compromise. OEM may be represented in the defense of any such claim, at OEM’s
expense, by counsel of OEM’s selection. Netronome shall have no liability for settlements or costs
incurred without its consent.

     10.3. Injunctive Relief. In the event that an injunctive restraint is obtained against OEM’s
use of the Equipment or Licensed Materials by reason of infringement or violation of any
Intellectual Property Right, or if in Netronome’s opinion the Equipment or other Licensed Materials
is likely to become the subject of such an injunction, Netronome shall have the right, but not the
obligation, to (i) procure for OEM the right to continue to use the Equipment or other Licensed
Materials as provided in this Agreement, (ii) replace or modify the Equipment or other Licensed
Materials so that it becomes non-infringing (so long as the functionality of the Equipment or other
Licensed Materials is essentially unchanged), or (iii) if neither (i) or (ii) above are reasonably
commercially practical, terminate the right to use such Equipment or other Licensed Materials,
remove it and grant OEM a credit thereon as depreciated on a straight-line five (5) year basis.

     10.4. Limitation of Liability. The provisions of Section 10.1 notwithstanding, Netronome
assumes no liability under this Article 10 to the extent any claim of infringement or
misappropriation results from (i) use of a Netronome Product in combination with any other
products, if infringement would not have occurred but for such combination, (ii) trademark
infringements involving any marking or branding not applied by Netronome or involving any marking
or branding applied at the request of OEM; or (iii) infringements involving the modification or
servicing of the Equipment, or any part thereof, by anyone not under the control of, or not having
the written authorization of Netronome to do such modification or servicing, with the exception of
modifications or servicing by OEM in accordance with written instructions supplied by Netronome.

     10.5. Entire Liability. This Article 10 states the entire liability of Netronome with respect
to any alleged infringement of any Intellectual Property Rights by the Equipment or any part
thereof.

     10.6. Notification of Unauthorized Use. Each Party shall promptly notify the other in writing
upon its discovery of any unauthorized use or infringement of the other’s products, documentation,
Confidential Information or Intellectual Property Rights. In the event either Party seeks to bring
an infringement action or proceeding against any infringing third party, the other Party shall
cooperate and provide full information and assistance to Netronome and its counsel in connection
with any such action or proceeding.

11. LIMITATION OF LIABILITY

     EXCEPT FOR LIABILITY ARISING FROM SECTION 8 (“INTELLECTUAL PROPERTY RIGHTS AND
CONFIDENTIALITY”), SECTION 10 (“INTELLECTUAL PROPERTY RIGHTS INDEMNITY”), OR DEATH, REGARDLESS OF
THE FORM OF ANY CLAIM OR ACTION, IN NO EVENT SHALL EITHER PARTY’S TOTAL LIABILITY TO THE OTHER
PARTY EXCEED THE GREATER AMOUNT OF FOUR MILLION DOLLARS ($4,000,000) OR THE TOTAL AMOUNT RECEIVED
BY NETRONOME HEREUNDER WITH RESPECT TO THE NETRONOME PRODUCT THAT IS THE SUBJECT OF A CLAIM
HEREUNDER.

WHETHER BASED IN CONTRACT OR TORT (INCLUDING NEGLIGENCE), IN NO EVENT SHALL EITHER PARTY BE LIABLE
FOR ANY LOSS OF DATA, LOSS OF PROFITS (EXCEPT, FOR LIABILITY ARISING FROM SECTION 10 (“INTELLECTUAL
PROPERTY RIGHTS INDEMNITY”), TO THE EXTENT LOST PROFITS CONSTITUTE THE MEASURE OF DAMAGES UNDER
FEDERAL PATENT OR
COPYRIGHT LAWS OR APPLICABLE TRADE SECRET STATUTES), OR LOSS OF USE OF THE PRODUCTS OR
DOCUMENTATION OR ANY EQUIPMENT, OR FOR ANY SPECIAL, INCIDENTAL,

Page 12

 

CONSEQUENTIAL, EXEMPLARY, PUNITIVE,
MULTIPLE OR OTHER DAMAGES, ARISING FROM OR IN CONNECTION WITH THIS AGREEMENT EVEN IF THE OTHER
PARTY HAS BEEN MADE AWARE OF THE POSSIBILITY OF SUCH DAMAGES. THIS DISCLAIMER OF LIABILITY FOR
DAMAGES WILL NOT BE AFFECTED IF ANY REMEDY PROVIDED HEREUNDER SHALL FAIL OF ITS ESSENTIAL PURPOSE.

12. GENERAL PROVISIONS

     12.1. Export Compliance. OEM shall, at its own expense, pay all import and export licenses
and permits, pay customs charges and duty fees, and take all other actions required to accomplish
the export and import of the Equipment purchased by OEM from the point of delivery. OEM understands
that Netronome is subject to regulation by agencies of the U.S. government, including the U.S.
Department of Commerce, which prohibit export or diversion of certain technical products to certain
countries. OEM warrants that it will comply in all respects with the export and reexport
restrictions set forth in the export license for every Equipment shipped to OEM.

     12.2. U.S. Government Contracts. If OEM’s order is placed under a contract with the United
States Government, Netronome agrees to comply with those contract provisions and regulations with
which, pursuant to law, it must comply and of which OEM has, at the time of order placement, placed
Netronome on written notice. In no event will United States Government Cost Accounting Standards
apply. All rights in technical data and software owned or licensed by Netronome or any third party
licensor or manufacturer are hereby reserved and deemed restricted or limited. No provision of
OEM’s contract with the United States Government will be binding on Netronome or the third party
licensor or manufacturer except as expressly set forth in this paragraph.

     12.2. Governing Law. This Agreement, the covenants and provisions contained herein and
transactions contemplated hereby, are made under and shall be governed by, construed and enforced
in accordance with the laws of the State of New York, U.S.A., without regard to that body of law
controlling conflicts of law, and specifically excluding from application to this Agreement the
United Nations Convention on Contracts for the International Sale of Goods. The federal and state
courts within the State of New York, U.S.A., shall have exclusive jurisdiction to adjudicate any
dispute arising out of this Agreement. Each Party hereby expressly consents to (1) the personal
jurisdiction of the federal and state courts within New York, (ii) service of process being
effected upon it by registered mail sent to the address set forth at the beginning of this
Agreement, and (iii) the uncontested enforcement of a final judgment from such court in any other
jurisdiction wherein either Party or any of its assets are present.

     12.3. Entire Agreement. This Agreement sets forth the entire agreement and understanding of
the Parties relating to the subject matter herein and merges all prior discussions between them.
No modification of or amendment to this Agreement, nor any waiver of any rights under this
Agreement, shall be effective unless in writing signed by the Party to be charged.

     12.4. Notices. All notices and other communications required or permitted hereunder shall be
in writing and shall be deemed effective upon Receipt.

     12.5. Force Majeure. Neither Party will be liable for any failure to perform acts, other than
payment obligations, to the extent such performance is rendered impossible due to unforeseen
circumstances or causes beyond such party’s reasonable control, including, but not limited to, acts
of God, war, riot, embargoes, acts of civil or military authorities, acts of terrorism or sabotage,
electronic viruses, worms or corrupting microcode, shortage of supply or delay in delivery by
Netronome’s vendors, fire, flood, earthquake, accident, strikes, radiation, inability to secure
transportation, failure of communications or electrical lines, facilities, fuel, energy, labor or
materials. In an event of force majeure, either party’s time for delivery or other performance will
be extended for a period equal to the duration of the delay caused thereby.

     12.6. Nonassignability and Binding Effect. Neither Party shall assign this Agreement or
otherwise transfer this Agreement to any third party without the prior written consent of the other
Party, which consent shall
not be unreasonably withheld, conditioned or denied. Notwithstanding the foregoing, either Party
may assign this Agreement without the consent of the other Party if a majority of its outstanding
voting capital stock is sold to a third party, or upon the merger or consolidation of one Party
into, or the sale of all or substantially all of the assets

Page 13

 

of such Party to, a third party.
Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the
Parties’ successors and their permitted assigns.

     12.7. Legal Expenses. The prevailing Party in any legal action brought by one Party against
the other and arising out of this Agreement shall be entitled, in addition to any other rights and
remedies it may have, to reimbursement for its expenses, including court costs and reasonable
attorneys’ fees.

     12.8. Counterparts. This Agreement may be executed in multiple counterparts, each of which
shall be deemed an original and all of which together shall constitute one instrument. This
Agreement may be executed by facsimile or scanned signatures. Each individual executing this
Agreement on behalf of a Party has the requisite power and authority to sign this Agreement on
behalf of such Party.

     12.9. No Waiver. The waiver by Netronome of any breach hereof or default in any payment by
OEM shall not be deemed to constitute a waiver of any succeeding breach or default. Similarly, the
acceptance by Netronome of a partial payment by OEM shall not constitute a waiver of a payment
default and shall not preclude Netronome from exercising any other remedy to which Netronome would
otherwise be entitled. In the event of default, Netronome shall have all the remedies provided by
law. The exercise or failure to exercise any remedy shall not preclude the exercise of that remedy
at another time or of any other remedy at any time. No action, regardless of form, arising out of,
or in any way connected with, the goods furnished or services rendered by Netronome, may be brought
by OEM more than one year after the cause of action has accrued.

     12.10. Mediation and Arbitration. The Parties will endeavor to settle amicably by mutual
discussions any disputes, differences, or claims whatsoever related to this Agreement. Except for
instance where equitable relief is permitted under this Agreement, any and all claims, disputes, or
controversies arising under, out of, or in connection with this Agreement or the breach thereof,
(herein “dispute”) shall be submitted to the chief operating officer (or equivalent) of each Party
(or their designee) for a good faith attempt to resolve the dispute. The position of each Party
shall be submitted, and the individuals promptly thereafter shall meet at a neutral site. If the
Parties are unable to reach agreement within fifteen (15) days following such meeting, then any
dispute which has not been resolved within said fifteen (15) days by good faith negotiations
between the parties shall be resolved at the request of either Party by final and binding
arbitration. Arbitration shall be conducted in Washington, D.C., by a single arbitrator. The
arbitrator shall be knowledgeable in the commercial aspects of software licensing, the GNU General
Public License, Internet applications, networking, network security, technical consulting services
and copyright and patent law and otherwise in accordance with the Commercial Arbitration Rules of
the American Arbitration Association. The Parties shall meet to agree upon an arbitrator within
fifteen (15) days after the receipt by the noticed Party of the demand for arbitration delivered in
the manner set forth herein for providing notice to the parties. In the event the Parties cannot
agree on an arbitrator, then the American Arbitration Association shall select the arbitrator. The
arbitrator shall make detailed written finding to support his/her award. The arbitrator shall
render his/her decision no more than sixty (60) days after the parties finally submit the claim,
dispute or controversy. Judgment upon the arbitration award may be entered in any court having
jurisdiction.

Exhibits

	 	 	 
	Exhibit A

	 	Definitions
	Exhibit B-1

	 	Netronome Products
	Exhibit B-2

	 	Special Products
	Exhibit B-3

	 	Development Software
	Exhibit B-4

	 	Specifications
	Exhibit C-1

	 	List Price
	Exhibit C-2

	 	OEM Pricing
	Exhibit C-3

	 	Form of Purchase Order

	
Exhibit D-1

	 	
OEM Form of End User Software License Agreement
	Exhibit D-2

	 	Netronome Form of End User License Agreement
	Exhibit E

	 	Netronome End of Life Policy
	Exhibit F

	 	Support Plan
	Exhibit G

	 	Enhanced Inspection
	Exhibit H

	 	Quality Test Plan

Page 14

 

IN WITNESS WHEREOF the Parties have entered into this Agreement as of the Effective Date:

	 	 	 	 	 	 	 
	Netronome Systems Inc.

	 	 	 	Sourcefire, Inc.	 	 
	(Netronome)

	 	 	 	(OEM)	 	 
	 
	 	 	 	 	 	 
	By: /s/ Gary J. Brunner
 

Name: Gary J. Brunner

	 	 	 	By: /s/ Todd P. Headley
 

Name: Todd P. Headley
	 	 
	Title: Sr. VP Finance

	 	 	 	Title: CFO	 	 

[END]

Page 15

 

EXHIBIT A

DEFINITIONS

“Affiliates” means (i) any Company which controls, is controlled by, or is under common control
with a Party, and (ii) authorized systems integrators, value-added resellers, resellers and
distributors of such Party’s products or services. A Company shall be deemed to “control” another
if it owns or controls more than fifty percent (50%) of the voting stock or other ownership
interest of the Company. References herein to Netronome and OEM shall be deemed to include
reference to their Affiliates unless otherwise specified or the context otherwise requires.

“Agreement” shall mean this Original Equipment Manufacturer Agreement, its Exhibits, and their
Schedules or other attachments, which shall form an integral part of the Agreement. In the event of
any discrepancy, the documents to prevail shall be given precedence in the following order: (i)
this Original Equipment Manufacturer Agreement, (ii) the Exhibits, (iii) their Schedules or other
attachments, and (iv) the Purchase Order.

“Audit
Rights” shall mean a Party’s right to have a nationally-recognized accounting firm other than
the Party’s own accounting firm audit the other Party’s books and records on reasonable prior
notice for the purpose of making a factual determination of whether a specified event has occurred.
In carrying out such audit responsibilities, said accounting firm shall use generally accepted
accounting principles (hereafter “GAAP”), as consistently applied by the audited Party. The
auditor’s working papers shall not be made available to the Party requesting the audit.

“Company” shall mean a corporation, company, limited liability company or other entity.

“Confidential Information” shall have the meaning set forth in that certain Mutual Non-Disclosure
Agreement dated November 30, 2007, between the Parties.

“Customers” means, individually or collectively, as applicable, all Companies or other entities,
their successors and assigns, in the chain of distribution, sale and use of a Party’s products or
services, including without limitation, such Party’s Affiliates, third party licensees, resellers,
agents, representatives, distributors, system operators and End-Users.

“Day(s),” “month(s),” “quarter(s)” and “year(s)” shall mean calendar days, months, quarters or
years, unless otherwise specified.

“Delivery,” “Delivered,” “Deliver” or other forms of the term shall mean the physical transfer of
Equipment or other Licensed Materials by Netronome to (i) OEM, (ii) an OEM-specified common carrier
or freight forwarder, or (iii) otherwise as directed by OEM to an authorized agent.

“Development Software” shall mean any and all Software made available to OEM from Netronome, the
current versions of which are set forth in Exhibit B-3 (“Development Software”) hereto,
that facilitate or relate to the development of (i) the Equipment or other Licensed Materials, (ii)
interfaces between the Equipment or other Licensed Materials and other Hardware or Software, or
(iii) Enhancements to the Equipment or other Licensed Materials which have not yet been made
generally available for End-Users, including any Enhancements hereafter made or any revision
thereto.

“Documentation” shall mean any and all documentation (whether provided in hard copy, on-line or
electronic form) that relate to the Equipment or other Licensed Materials, including, without
limitation, user manuals, training materials, product descriptions and Specifications, technical
manuals, supporting materials and other printed information relating to the Equipment or other
Licensed Materials, in effect and generally available from Netronome as of the date the Equipment
or other Licensed Materials is shipped to OEM, and any succeeding changes thereto. Documentation
shall include, if applicable, documentation provided to Netronome by its suppliers or licensors to
the extent Netronome is authorized by such third parties to provide such material under the terms
in this Agreement. “Documentation” does not include Source Code.

“Effective Date” shall mean the date first identified above as the Effective Date.

Page 16

 

“Emergency Situation” shall mean a Material Defect in the Equipment or other Licensed Materials
that directly causes (i) substantial impairment to the operation of the network in which the
Equipment or other Licensed Materials is installed; or (ii) a material danger of bodily injury or
property damage to End-Users.

“Emergency Purchase Order” shall mean a Purchase Order designated by OEM to be critical with
Delivery required inside the standard lead times of the Equipment or Licensed Materials.

“End of Life” or “EOL” means Netronome’s published End of Life policy with respect to the Equipment
or other Licensed Materials, the current version of which is attached as Exhibit E
(“Netronome End of Life Policy”) hereto.

“End-User” shall mean any third party to whom a Party offers its products for purchase and/or
license solely for such third party’s own internal needs and not for subsequent resale.

“End-User Maintenance Services” shall mean the provision of Level 1 Support in relation to (i) the
diagnosis and correction of defects in the Equipment or other Licensed Materials via telephone
support and remote system access and (ii) providing qualified personnel at an End-User site to aid
in the diagnosis and correction of defects.

“End-User Software License Agreement” shall mean OEM’s standard End-User Software License Agreement
pursuant to which End-Users are granted the rights to utilize Licensed Materials in or provided
with OEM’s products, the current version of which is attached as Exhibit D-1 (“OEM Form of
End-User Software License Agreement”) hereto.

“Enhancements” shall mean any Modifications or Upgrades hereafter made or any revision thereto.

“Epidemic Failure” shall mean those substantial deviations from the Specifications which seriously
impair the use of Netronome Products existing at the time of Delivery but which are not reasonably
discernible at that time and which are evidenced by an identical, repetitive defect due to the same
cause and occurring in the same series of the Netronome Products.

“Equipment” shall mean any Netronome Products, Special Products or Spares, and any Enhancements
hereafter made or any revision thereto.

“Escrowed Materials” means all information necessary to manufacture the Equipment or Licensed
Materials in electronic media form, including, without limitation, (i) all Source Code and source
Documentation for the Software, (ii) all Hardware designs, specifications and other information
relative to the manufacturer of the Equipment, (iii) all manufacturing process instructions,
drawings, specifications, ICT test programs, functional test programs, schematics, mechanical PDF
and CAD files, (iv) all programmable files, PCB CAD files, gerber files, artwork files, (v) to the
extent it does not violate Netronome’s existing agreements with its suppliers, a costed Bill of
Materials for the Equipment and the Licensed Materials (if any), as well as all other bills of
material and authorized vendor lists for the Equipment or Licensed Materials, and any updates
thereto.

“Hardware” shall mean the hardware components of any Equipment.

“Installation” shall mean the date the Equipment is initially installed in OEM’s product(s) on
behalf of an End-User.

“Intellectual Property Rights” or “IPR” shall mean all forms of intellectual property rights and
protections that may be obtained for, or may pertain to, a Party’s products, documentation or
Confidential Information, and may include without limitation: (i) all right, title and interest in
and to all Letters Patent and all filed, pending or potential applications for Letters Patent,
including any reissue, reexamination, division, continuation or continuation-in-part applications
throughout the world now or hereafter filed; (ii) all right, title and interest in and to all trade
secrets, and all trade secret rights and equivalent rights arising under common law, state law,
U.S. Federal law and laws of foreign countries; (iii) all right, title and interest in and to all
mask works, copyrights and
other literary property or authors rights, whether or not protected by copyright or as a mask work,
under common law, state law, U.S. Federal law and laws of foreign countries; and (iv) all right,
title and interest in and to all Marks.

Page 17

 

“Level 1” support are those activities to assist the End-User in resolving “how to” and
operational-type questions, as well as technical questions on installation procedures.

“Level 2” support are those activities that require additional research and analysis of an End-User
problem. The [Service Request] database is checked to locate a duplicate of the problem being
reported and the previous solution applied to that problem.

“Level 3” support are those activities that require duplication of the user problem, analysis of
records and distribution of a fix to resolve the End-User problem.

“Licensed Materials” shall mean the Software, Development Software and Documentation, and any
Enhancements hereafter made or any revision thereto, subject to this Agreement, including, without
limitation, any “on-line” or electronic Documentation associated therewith. The Parties agree that
except as may be agreed to upon mutual written agreement, specifically identifying this Agreement
and stating an intent to make such changes, any reference to Licensed Materials being “sold” or
“purchased” hereunder is understood in fact to be a reference to the Licensed Materials being
licensed or leased.

“List Price” shall mean the price for the Equipment or other Licensed Materials as set forth in
Netronome’s published United States price list, the current version of which is attached as
Exhibit C-1 (“List Price”) hereto.

“Load-Balancing Interface Module” or “LBIM Assembly” means those load-balancing interface modules
made available to OEM by Netronome as Netronome Products under this Agreement, including LBIM
Spares set forth on Exhibit B-1 (“Netronome Products”).

“Maintenance Fees” shall mean the periodic fees to be paid by OEM to Netronome under Section 6.4
for Support Services provided by Netronome. The Maintenance Fees as of the Effective Date are set
forth in Exhibit C-2 (“OEM Pricing”) and may be amended from time to time upon the renewal
of the maintenance periods thereof.

“Marks” shall mean all proprietary indicia, trademarks, trade names, symbols, logos, service marks,
quality designations, brand names and any other proprietary words and symbols under common law,
state law, U.S. Federal law and laws of foreign countries adopted from time to time that either
Party uses to identify itself, its business products and services.

“Material Defect” shall mean any reported malfunction, error or other defect in the Equipment or
other Licensed Materials that: (i) can be reproduced by either Party; and (ii) constitutes a
substantial nonconformity with the Specifications for such Equipment or other Licensed Materials.

“Minimum Commitment(s)” shall have the meaning set forth in Exhibit C-2 (“OEM Pricing”).

“Modification” means a revision, new function or minor change to the Equipment or other Licensed
Materials intended to correct errors or non-conformance with Documentation and provided as a change
in the then current release or version of the Equipment or other Licensed Materials. Modifications
may be issued as a “point release” (that is, the version number of which release, in comparison to
the previous release, has not changed in the digits before the decimal point but has changed in the
first digit after the decimal point).

“Netronome Product(s)” shall mean the standard products and Spares that are manufactured by
Netronome for general availability to End-Users available for purchase by OEM hereunder, including
any Hardware or Licensed Materials, and any Enhancements hereafter made or any revision thereto.
The Netronome Product(s) listed in Exhibit B-1 (“Netronome Products”) hereto may be
modified or discontinued by Netronome and additional Netronome Product may be added to this list by
Netronome in accordance with the provisions of Sections 6.2 and 6.3.

“Object Code” shall mean computer programs assembled or compiled in magnetic or electronic binary
form on software media, which are readable and usable by machines, but expressed in a form that is
not generally readable or suitable for modification by humans without reverse-assembly,
reverse-compiling or reverse-engineering.

Page 18

 

“Place(s) of Delivery” means the location(s) or place(s) where the Equipment or other Licensed
Materials is to be shipped, as specified in the ‘SHIP TO’ named field of the Purchase Order. In
the absence of such specification, the Place(s) of Delivery shall be deemed OEM’s primary place of
business.

“Purchase Order” shall mean a written order in a form as mutually satisfactory to the Parties, an
example of which is attached as Exhibit C-3 (“Form of Purchase Order”) hereto.

“Purchase Price” shall mean the amount to be paid by OEM to Netronome for the Equipment or other
Licensed Materials as determined in accordance with Section 2.2 and net of any applicable shipping,
freight, taxes, and other charges or fees.

“Receipt” or “Received” means (a) with respect to any notice, Purchase Order or other communication
required or permitted under this Agreement (each a “Notice”) the earliest to occur as follows: (i)
the date upon which such Notice was delivered, when delivered by hand, or when telexed, when
delivered by facsimile transmission, (ii) the next business day if the Notice was emailed and the
recepient has confirmed its receipt, or (iii) on the fifth (5th) business day following the date
the Notice was mailed by registered or certified mail (return receipt requested), postage prepaid,
to a Party at the address first listed above for such Party, or at such other address for a Party
as shall be specified by like Notice, and (b) with respect to any other receipt of a tangible item,
the date upon which such item was actually delivered.

“Return Material Authorization” or “RMA” number means an authorizaton number granted by Netronome
to OEM to return Equipment or Licensed Materials.

“Scheduled Delivery Date” shall mean the latest possible delivery date by which the Equipment or
other Licensed Materials may be timely Delivered by Netronome to OEM as specified in the ‘DELIVERY
DATE’ named field in the Purchase Order accepted by Netronome.

“Services” shall mean those consulting, engineering, installation, optimization, maintenance,
repair, technical support, training, and other services referred to herein as being performed by
Netronome. These Services and pricing for such Services shall be set forth in Exhibit C-2
(“OEM Pricing”) hereto. The Parties may mutually agree in writing to amend Exhibit C-2
(“OEM Pricing”) hereto from time to time to expand or reduce the Services and prices therefore
covered under this Agreement.

“Severity Level” shall mean a designation (i.e., “Severe”, “Moderate” and “Minor”) assigned to
errors that is intended to indicate the seriousness of the error based upon the impact that the
error has on the End-User’s operation: (i) “Severe” is a “critical problem” — the product is
unusable or an error severely impacts an End-User’s operation, and there are no workarounds to
restore product functionality. A Severity Level of Severe requires maximum effort to resolve a
critical problem; (ii) “Moderate” is a “major problem” — significant product functionality is not
working according to product definitions, or significant business objectives cannot be met; (iii)
“Minor” is a “minor problem” — minor product functionality is not working according to product
definitions, or minor business objectives cannot be met.

“Software” shall mean the computer software (including firmware) of any form, provided by one Party
to the other Party, which enables their respective product to perform its functions and procedures
in accordance with its respective Documentation, including any Enhancements hereafter made or any
revision thereto. The Parties agree that except as may be agreed to upon mutual written agreement,
specifically identifying this Agreement and stating an intent to make such changes, any reference
to Software being “sold” or “purchased” hereunder is understood in fact to be a reference to the
Software being licensed or leased.

“Source Code” shall mean the original fully commented form on any media of the Software in the
language as used by a Party, or any translation or modification of such Software which
substantially preserves its original
identity together with: (i) all necessary proprietary information and technical documentation which
will enable a reasonably skilled software engineer(s) to maintain or enhance the Software without
the aid of the other Party or any other person or reference to any other materials; (ii)
maintenance tools (test programs and program specifications); (iii) proprietary or third party
system utilities (compiler and assembler descriptions); (iv) a

Page 19

 

description of the Software’s
system/program generation; and (v) descriptions and locations of hardware and software, if any, not
owned by the Party but required for use and/or support of the Software.

“Spare(s)” shall mean any field replaceable units, such as replacement parts, sub-assemblies,
circuit cards, modules and other electronic and mechanical assemblies necessary to support routine
operation and maintenance of the Equipment or other Licensed Materials, which may be purchased
separately as set forth in Exhibit C-2 (“OEM Pricing”) hereto.

“Special Products” shall mean the non-standard products that are manufactured by Netronome for
special use by OEM, the most current versions of which are listed in Exhibit B-2 (“Special
Products”) hereto, including any Equipment or other Licensed Materials, and any Enhancements
hereafter made or any revision thereto. The Special Product(s) listed in Exhibit B-2
(“Special Products”) hereto may be modified or discontinued by mutual agreement and additional
Special Product(s) may be added to this list by Netronome in accordance with the provisions of
Sections 6.2 and 6.3..

“Specifications” shall mean the technical performance and functionality descriptions and other
specifications published by Netronome applicable to the Equipment or other Licensed Materials that
are in effect as of the date the Equipment or other Licensed Materials is shipped to OEM, the
current version of which is attached as Exhibit B-4 (“Specifications”) hereto. The Parties
agree that changes to the Specifications, procedures and conditions contained in this Agreement may
be made from time to time upon mutual written agreement, specifically identifying this Agreement
and stating an intent to make such changes. During the Term, whenever Netronome substantially
amends the Specifications, Netronome shall promptly inform OEM of the revised Specifications.

“Standard Hours” shall mean the period of time from 8:00 a.m. until 5:00 p.m., Eastern time, Monday
through Friday, excluding Federal holidays within the United States.

“Subsidiary” shall mean a Company: (i) more than fifty percent (50%) of whose outstanding shares or
securities (representing the right to vote for the election of directors or other managing
authority) are, now or hereafter, owned or controlled, directly or indirectly, by a Party; or (ii)
which does not have outstanding shares or securities, as may be the case in a partnership, joint
venture, or unincorporated association, but more than fifty percent (50%) of whose ownership
interest representing the right to make the decisions for such Company is, now or hereafter, owned
or controlled, directly or indirectly, by a Party; provided that such Company shall be deemed to be
a Subsidiary only so long as such ownership or control exists.

“Support Agreement” shall mean that certain Support Plan Terms & Conditions Agreement between the
Parties. A copy of the form of Support Agreement is attached as Exhibit F (“Support
Agreement”) hereto.

“Support Plan” shall mean the terms and conditions upon which Netronome shall provide the Support
Services, as specified in the Support Agreement.

“Support Services” shall mean the provision of maintenance and technical support Services in
accordance with the Support Plan.

“Term” shall mean the period beginning on the Effective Date and terminating on the date this
Agreement expires or otherwise is terminated in accordance with under Article 7.

“Territory” shall mean worldwide.

“Upgrades” shall mean additional or new modules, applications, modifications, features or
functions, including but not limited to major Modifications, which improve performance or increase
capacity of previously sold or leased Equipment or other Licensed Materials. Upgrades shall not
include Hardware.

“Warranty Start Date” means the date of Delivery.

[END]

Page 20exv10w1

Exhibit 10.1

INDEMNIFICATION AGREEMENT

     This Indemnification Agreement (“Agreement”) is made as of [•] by and between Leap
Wireless International, Inc., a Delaware corporation (the “Company”), and [•]
(“Indemnitee”). This Agreement supersedes and replaces any and all previous agreements
between the Company and Indemnitee covering the subject matter of this Agreement.

RECITALS

     WHEREAS, directors, officers and other persons in service to publicly-held corporations and
other business enterprises are being increasingly subjected to expensive and time-consuming
litigation relating to, among other things, matters that traditionally would have been brought only
against the corporation or business enterprise itself;

     WHEREAS, highly competent persons have become more reluctant to serve publicly-held
corporations as directors or in other capacities unless they are provided with adequate protection
through insurance and indemnification against inordinate risks of claims and actions against them
arising out of their service to and activities on behalf of the corporation;

     WHEREAS, the Board of Directors of the Company (the “Board”) has determined that, in
order to attract and retain qualified individuals to serve the Company, the Company will attempt to
maintain on an ongoing basis, at its sole expense, liability insurance to protect such persons;
however, the Board recognizes that although the furnishing of such insurance has been a customary
and widespread practice among U.S. corporations and other business enterprises, given current
market conditions and trends, such insurance may be available in the future only at higher premiums
and with more exclusions;

     WHEREAS, the General Corporation Law of the State of Delaware (the “DGCL”) permits,
and Article IV of the By-laws of the Company requires, indemnification of the officers and
directors of the Company; each expressly provides that the indemnification provisions set forth
therein are not exclusive, and thereby contemplate that contracts may be entered into between the
Company and members of the Board, officers and other persons with respect to indemnification;

     WHEREAS, in light of uncertainties relating to such insurance and to indemnification and the
resulting difficulty of attracting and retaining persons to serve the Company, the Board has
determined that the best interests of the Company and its stockholders would be served by assuring
such persons that there will be increased certainty of such protection in the future;

     WHEREAS, the Company previously entered into indemnifications agreement with its directors and
officers (collectively, the “Prior Indemnification Agreements”);

     WHEREAS, it is reasonable, prudent and necessary for the Company to continue to obligate
itself contractually to indemnify, and to advance expenses on behalf of, such persons to the
fullest extent permitted by applicable law so that they will serve or continue to serve the Company
free from undue concern that they will not be so indemnified; and

     WHEREAS, although this Agreement is a supplement to and in furtherance of the By-laws of the
Company (and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of
Indemnitee thereunder), Indemnitee does not regard the protection available under his Prior
Indemnification Agreement, if any, the Company’s By-laws and insurance as adequate in the present

 

 

circumstances, and may not be willing to serve (or continue to serve) as a director or officer
without adequate protection, and the Company desires Indemnitee to serve and continue to serve in
such capacity; and

     WHEREAS, the parties hereto desire to supersede and replace any Prior Indemnification
Agreement entered into by and between the Company and Indemnitee.

     NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the
Company and Indemnitee do hereby covenant and agree as follows:

     Section 1. Services to the Company. Indemnitee agrees to serve, or continue to serve,
as a director or officer of the Company and/or, as applicable, its subsidiaries and any other
Enterprise for so long as Indemnitee is duly elected or appointed or until Indemnitee tenders his
resignation. Indemnitee may at any time and for any reason resign from such position. This
Agreement shall not be deemed an employment contract between the Company (or any of its
subsidiaries or any other Enterprise) and Indemnitee. The foregoing notwithstanding, this
Agreement shall continue in force after Indemnitee has ceased to serve as a director, officer,
employee and/or agent of the Company or any of its subsidiaries or other Enterprise as provided in
Section 16 hereof.

     Section 2. Certain Definitions. As used in this Agreement:

          (a) “Agent” shall mean any person who is or was a director, officer or employee of the
Company or other person authorized by the Company to act for the Company, to include any person
serving in such capacity as a director, officer, employee, fiduciary or other official of another
corporation, partnership, limited liability company, joint venture, trust, employee benefit plan or
other Enterprise (including any subsidiary of the Company) at the request of, for the convenience
of, or to represent the interests of the Company.

          (b) A “Change in Control” shall be deemed to occur upon the earliest to occur after
the date of this Agreement of any of the following events:

          i. Acquisition of Stock by Third Party. Any Person (as defined below) becomes the
Beneficial Owner (as defined below), directly or indirectly, of securities of the Company
representing twenty-five (25%) or more of the combined voting power of the Company’s then
outstanding securities unless the change in relative Beneficial Ownership of the Company’s
securities by any Person results solely from a reduction in the aggregate number of
outstanding shares of securities entitled to vote generally in the election of directors;

          ii. Change in Board of Directors. During any period of two (2) consecutive years (not
including any period prior to the execution of this Agreement), individuals who at the
beginning of such period constitute the Board, and any new director (other than a director
designated by a person who has entered into an agreement with the Company to effect a
transaction described in Sections 2(b)(i), 2(b)(iii) or 2(b)(iv)
hereof) whose election by the Board or nomination for election by the Company’s stockholders
was approved by a vote of at least two-thirds of the directors then still in office who
either were directors at the beginning of the period or whose election or nomination for
election was previously so approved, cease for any reason to constitute at least a majority
of the members of the Board;

          iii. Corporate Transactions. The effective date of a merger or consolidation of the
Company with any other entity, other than a merger or consolidation which would result in
the voting securities of the Company outstanding immediately prior to such merger or

-2-

 

consolidation continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity) more than 51% of the combined
voting power of the voting securities of the surviving entity outstanding immediately after
such merger or consolidation and with the power to elect at least a majority of the board of
directors or other governing body of such surviving entity;

          iv. Liquidation. The approval by the stockholders of the Company of a complete
liquidation of the Company or an agreement or series of agreements for the sale or
disposition by the Company of all or substantially all of the Company’s assets; or

          v. Other Events. There occurs any other event of a nature that would be required to be
reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or a response to any
similar item on any similar schedule or form) promulgated under the Exchange Act (as defined
below), whether or not the Company is then subject to such reporting requirement.

     For purposes of this Section 2(b), the following terms shall have the following
meanings:

     (A) “Exchange Act” shall mean the Securities Exchange Act of
1934, as amended from time to time.

     (B) “Person” shall have the meaning as set forth in Sections
13(d) and 14(d) of the Exchange Act; provided, however, that Person shall
exclude (i) the Company, (ii) any trustee or other fiduciary holding
securities under an employee benefit plan of the Company, and (iii) any
corporation owned, directly or indirectly, by the stockholders of the
Company in substantially the same proportions as their ownership of stock of
the Company.

     (C) “Beneficial Owner” shall have the meaning given to such
term in Rule 13d-3 under the Exchange Act; provided, however, that
Beneficial Owner shall exclude any Person otherwise becoming a Beneficial
Owner by reason of the stockholders of the Company approving a merger of the
Company with another entity.

          (c) “Corporate Status” describes the status of a person who is or was a director,
officer, employee, fiduciary or agent of the Company or any other corporation, limited liability
company, partnership or joint venture, trust, employee benefit plan or other Enterprise, in which
capacity such person is or was serving at the request of, for the convenience of, or to represent
the interests of the Company.

          (d) “Disinterested Director” shall mean a director of the Company who is not and was
not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.

          (e) “Enterprise” shall mean the Company and any other corporation, limited liability
company, partnership, joint venture, trust, employee benefit plan or other enterprise (including
any subsidiary of the Company) of which Indemnitee is or was serving as a director, officer,
employee, fiduciary or agent at the request of, for the convenience of, or to represent the
interests of the Company.

          (f) “Expenses” shall include all direct and indirect costs, fees and expenses of any
type or nature whatsoever, including all attorneys’ fees and costs, retainers, court costs,
transcript costs, fees of experts and other professionals, witness fees, travel expenses,
duplicating costs, printing and

-3-

 

binding costs, telephone charges, postage, delivery service fees, fax transmission charges,
secretarial services, any federal, state, local or foreign taxes imposed on Indemnitee as a result
of the actual or deemed receipt of any payments under this Agreement, ERISA excise taxes and
penalties, and all other disbursements, obligations or expenses of the types customarily incurred
in connection with or as a result of prosecuting, defending, preparing to prosecute or defend,
investigating, being or preparing to be a deponent or witness in, or otherwise participating in, a
Proceeding, including reasonable compensation for time spent by Indemnitee for which he is not
otherwise compensated by the Company or any third party. Expenses also shall include: (i) expenses
incurred in connection with any appeal resulting from any Proceeding, including the premium,
security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or
its equivalent, (ii) expenses incurred in connection with recovery under any Insurance Policies (as
defined below) maintained by the Company, regardless of whether Indemnitee ultimately is determined
to be entitled to such insurance recovery, and (iii) for purposes of Section 14(d),
expenses incurred by or on behalf of Indemnitee in connection with the interpretation, enforcement
or defense of Indemnitee’s rights under this Agreement, by litigation or otherwise. Expenses,
however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or
fines against Indemnitee.

          (g) “Independent Counsel” shall mean a law firm, or a member of a law firm, that is
experienced in matters of corporation law and neither presently is, nor in the past five (5) years
has been, retained to represent: (i) the Company or Indemnitee in any matter material to either
such party (other than with respect to matters concerning Indemnitee’s right to indemnification
under this Agreement, or of other indemnitees under similar indemnification agreements with the
Company), or (ii) any other party to the Proceeding giving rise to a claim for indemnification
hereunder. Notwithstanding the foregoing, the term “Independent Counsel” shall not include any law
firm or member of a law firm who, under the applicable standards of professional conduct then
prevailing, would have a conflict of interest in representing either the Company or Indemnitee in
an action to determine Indemnitee’s rights under this Agreement. The Company agrees to pay the
reasonable fees and expenses of the Independent Counsel referred to above and to indemnify such
counsel fully against any and all expenses, claims, liabilities and damages arising out of or
relating to this Agreement or its engagement pursuant hereto.

          (h) The term “Proceeding” shall include any threatened, pending or completed action,
suit, claim, counterclaim, cross claim, arbitration, mediation, alternate dispute resolution
process, investigation, inquiry, administrative hearing or any other actual, threatened or
completed proceeding, whether brought by or in the right of the Company or otherwise, and whether
of a civil, criminal, administrative, regulatory, legislative or investigative (formal or informal)
nature, including any appeal therefrom, in which Indemnitee was, is, will or might be involved as a
party, potential party, non-party witness or otherwise by reason of the fact that Indemnitee is or
was a director, officer, employee, fiduciary or agent of the Company and/or any other Enterprise,
by reason of any action taken by him (or a failure to take action by him) or of any action (or
failure to act) on his part while acting pursuant to his Corporate Status, in each case whether or
not serving in such capacity at the time any liability or Expense is incurred for which
indemnification, reimbursement, or advancement of Expenses can be provided under this Agreement.
If Indemnitee believes in good faith that a given situation may lead to or culminate in the
institution of a Proceeding, such situation shall be considered a Proceeding under this paragraph.

          (i) References to “fines” shall include any excise tax assessed with respect to any employee
benefit plan; references to “serving at the request of the Company” and similar references shall
include any service as a director, officer, employee, fiduciary or agent of the Company that
imposes duties on, or involves services by, such director, officer, employee, fiduciary or agent
with respect to an employee benefit plan, its participants or beneficiaries; and a person who acted
in good faith and in a manner he reasonably believed to be in the best interests of the
participants and beneficiaries of an

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employee benefit plan shall be deemed to have acted in a manner “not opposed to the best
interests of the Company” as referred to in this Agreement.

     Section 3. Indemnity in Third-Party Proceedings. The Company shall indemnify
Indemnitee in accordance with the provisions of this Section 3 if Indemnitee was, is, or is
threatened to be made, a party to or a participant in any Proceeding, other than a Proceeding by or
in the right of the Company to procure a judgment in its favor. Pursuant to this Section
3, Indemnitee shall be indemnified to the fullest extent permitted by applicable law against
all Expenses, judgments, liabilities, fines, penalties and amounts paid in settlement (including
all interest, assessments and other charges paid or payable in connection with or in respect of
such Expenses, judgments, liabilities, fines, penalties and amounts paid in settlement) actually
and reasonably incurred by Indemnitee or on his behalf in connection with such Proceeding or any
claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he reasonably
believed to be in, or not opposed to, the best interests of the Company and, in the case of a
criminal Proceeding, had no reasonable cause to believe that his conduct was unlawful. The parties
hereto intend that this Agreement shall provide to the fullest extent permitted by law for
indemnification in excess of that expressly permitted by statute, including any indemnification
provided by the Company’s Certificate of Incorporation, its By-Laws, vote of its stockholders or
Disinterested Directors (or any committee thereof), or applicable law.

     Section 4. Indemnity in Proceedings by or in the Right of the Company. The Company
shall indemnify Indemnitee in accordance with the provisions of this Section 4 if
Indemnitee was, is, or is threatened to be made, a party to or a participant in any Proceeding by
or in the right of the Company to procure a judgment in its favor. Pursuant to this Section
4, Indemnitee shall be indemnified to the fullest extent permitted by applicable law against
all Expenses actually and reasonably incurred by him or on his behalf in connection with such
Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner
he reasonably believed to be in, or not opposed to, the best interests of the Company; provided,
however, that if applicable law so provides no indemnification for Expenses shall be made under
this Section 4 in respect of any claim, issue or matter as to which Indemnitee shall have
been finally adjudged by a court to be liable to the Company, unless and only to the extent that
the Delaware Court or any court in which the Proceeding was brought shall determine upon
application that, despite the adjudication of liability but in view of all the circumstances of the
case, Indemnitee is fairly and reasonably entitled to indemnification for such Expenses that the
Delaware Court or such other court deems proper.

     Section 5. Indemnification for Expenses of a Party Who is Wholly or Partially
Successful. To the fullest extent permitted by applicable law and to the extent that Indemnitee
is a party to (or a participant in) and is successful, on the merits or otherwise, in any
Proceeding or in defense of any claim, issue or matter therein, in whole or in part, the Company
shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him or on his
behalf in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is
successful, on the merits or otherwise, as to one or more but less than all applicable claims,
issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses
actually and reasonably incurred by him or on his behalf in connection with or related to each
successfully resolved claim, issue or matter to the fullest extent permitted by law. For purposes
of this Section 5 and without limitation, the termination of any claim, issue or matter in
such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful
result as to such claim, issue or matter.

     Section 6. Indemnification For Expenses of a Witness. To the fullest extent permitted
by applicable law and to the extent that Indemnitee is, by reason of his Corporate Status, a
witness or otherwise asked to participate in any aspect of a Proceeding to which Indemnitee is not
a party, he shall

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be indemnified against all Expenses actually and reasonably incurred by him or on his behalf
in connection therewith.

     Section 7. Partial Indemnification. If Indemnitee is entitled under any provision of
this Agreement to indemnification by the Company for some or a portion of Expenses, but not,
however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the
portion thereof to which Indemnitee is entitled.

     Section 8. Additional Indemnification.

          (a) Notwithstanding any limitation in Sections 3, 4, or 5 hereof, the
Company shall indemnify Indemnitee to the fullest extent permitted by applicable law if Indemnitee
is a party to or threatened to be made a party to any Proceeding (including a Proceeding by or in
the right of the Company to procure a judgment in its favor) against all Expenses, judgments, fines
and amounts paid in settlement (including all interest, assessments and other charges paid or
payable in connection with or in respect of such Expenses, judgments, fines and amounts paid in
settlement) actually and reasonably incurred by or on behalf of Indemnitee in connection with the
Proceeding.

          (b) For purposes of Section 8(a), the meaning of the phrase “to the fullest extent
permitted by applicable law” shall include, but not be limited to, the following:

          i. to the fullest extent permitted by the provision of the DGCL that authorizes or
contemplates additional indemnification by agreement, or the corresponding provision of any
amendment to or replacement of the DGCL, and

          ii. to the fullest extent authorized or permitted by any amendments to or replacements
of the DGCL adopted after the date of this Agreement that increase the extent to which a
Delaware corporation may indemnify its directors, officers, employees and agents.

     Section 9. Exclusions. Notwithstanding any other provision in this Agreement, the
Company shall not be obligated under this Agreement to indemnify Indemnitee in connection with any
claim against Indemnitee:

          (a) to the extent that payment has actually been made to or on behalf of Indemnitee under any
insurance policy or other indemnity provision, except with respect to any excess beyond the amount
actually received under any insurance policy or other indemnity provision or as otherwise set forth
in Section 15(f); or

          (b) for (i) an accounting of profits made from the purchase and sale (or sale and purchase) by
Indemnitee of securities of the Company within the meaning of Section 16(b) of the Exchange Act (as
defined in Section 2(b) hereof) or similar provisions of state statutory law or common law,
or (ii) any reimbursement of the Company by Indemnitee of any bonus or other incentive-based or
equity-based compensation or of any profits realized by Indemnitee from the sale of securities of
the Company, as required in each case under the Exchange Act (including any such reimbursements
that arise from an accounting restatement of the Company pursuant to Section 304 of the
Sarbanes-Oxley Act of 2002 (as amended, the “Sarbanes-Oxley Act”), or the payment to the
Company of profits arising from the purchase and sale by Indemnitee of securities in violation of
Section 306 of the Sarbanes-Oxley Act); or

          (c) in connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee,
including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the
Company or its directors, officers, employees or other indemnitees, unless (i) the Board authorized
the

-6-

 

Proceeding (or any part of such Proceeding) prior to its initiation, (ii) such payment arises
in connection with any mandatory counterclaim or cross-claim that the Indemnitee asserts against
the Company or its directors, officers, employees or other indemnitees or any affirmative defense
Indemnitee raises, or (iii) the Company provides the indemnification, in its sole discretion,
pursuant to the powers vested in the Company under applicable law; provided, however, that this
Section 9(c) shall not apply to any claims related to the interpretation, enforcement or
defense of Indemnitee’s rights under this Agreement by litigation or otherwise, including as
provided in Sections 10 and 14(d) hereof.

     Section 10. Advances of Expenses. In furtherance and not in limitation of the
provisions of Article IV, Section 3 of the By-laws of the Company, and notwithstanding any other
provision of this Agreement to the contrary, the Company shall advance, to the extent not
prohibited by law, the Expenses incurred by or on behalf of Indemnitee in connection with any
Proceeding (or any part of any Proceeding) not initiated by Indemnitee, and such advancement shall
be made within thirty (30) days after the receipt by the Company of a statement or statements
requesting such advances from time to time, whether prior to or after final disposition of any
Proceeding; provided, however, that this Section 10 shall not affect Indemnitee’s right to
advancement of Expenses as provided in Section 14(d). Advances shall be unsecured and
interest free. Advances shall be made without regard to Indemnitee’s ability to repay the Expenses
and without regard to Indemnitee’s ultimate entitlement to be indemnified under the other
provisions of this Agreement. In accordance with Section 14(d), advances shall include any
and all reasonable Expenses incurred pursuing an action to enforce this right of advancement,
including Expenses incurred preparing and forwarding statements to the Company to support the
advances claimed. Indemnitee shall qualify for advances upon the execution and delivery to the
Company of this Agreement, which shall constitute an undertaking by Indemnitee to repay (without
interest) the amounts advanced to the extent that it is ultimately determined that Indemnitee is
not entitled to be indemnified by the Company, and no other form of undertaking shall be required
from Indemnitee other than the execution of this Agreement. This Section 10 shall not
apply to any claim made by Indemnitee for which indemnity is otherwise excluded pursuant to
Section 9.

     Section 11. Procedure for Notification and Defense of Claim.

          (a) Indemnitee shall notify the Company in writing of any matter with respect to which
Indemnitee intends to seek indemnification or advancement of Expenses hereunder as soon as
reasonably practicable following the receipt by Indemnitee of written notice thereof or
Indemnitee’s becoming aware thereof (the “Indemnification Notice”). The Indemnification
Notice shall include a description of the nature of the Proceeding and the facts underlying the
Proceeding, in each case to the extent known to Indemnitee. To obtain indemnification under this
Agreement, Indemnitee shall also submit to the Company such documentation and information as is
reasonably available to Indemnitee and is reasonably necessary to determine whether and to what
extent Indemnitee is entitled to indemnification following the final disposition of such
Proceeding. The omission by Indemnitee to notify the Company hereunder will not relieve the
Company from any liability which it may have to Indemnitee under this Agreement or otherwise, and
any delay in so notifying the Company shall not constitute a waiver by Indemnitee of any rights
under this Agreement. The Secretary of the Company shall, promptly upon receipt of the
Indemnification Notice, advise the Board in writing that Indemnitee has requested indemnification
and/or advancement of Expenses.

          (b) The Company will be entitled to participate in the Proceeding at its own expense.

          (c) The Company shall not settle any action, claim or Proceeding (in whole or in part) which
would impose any Expense, judgment, fine, penalty or limitation on the Indemnitee against

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which Indemnitee is not entitled to be indemnified hereunder without the Indemnitee’s prior
written consent.

     Section 12. Procedure Upon Application for Indemnification.

          (a) Upon delivery of the Indemnification Notice by Indemnitee under Section 11(a), a
determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto
shall be made with respect to such request as follows: (i) by a majority vote of the Disinterested
Directors, even though less than a quorum of the Board, (ii) by a committee of Disinterested
Directors designated by a majority vote of the Disinterested Directors, even though less than a
quorum of the Board, (iii) if there are no such Disinterested Directors or, if such Disinterested
Directors so direct, by Independent Counsel in a written opinion to the Board, a copy of which
shall be delivered to Indemnitee or (iv) if so directed by the Board, by the stockholders of the
Company; provided, however, that, notwithstanding the foregoing, in all cases, Indemnitee shall
have the option, but not the obligation, to require, by delivery of a written request to the
Company, that the determination with respect to Indemnitee’s entitlement to indemnification
hereunder be made solely by Independent Counsel in a written opinion to the Board, a copy of which
shall be delivered to Indemnitee (in which case such request shall be made prior to any
determination by the Disinterested Directors (or any committee thereof) or prior to the submission
of such matter to a vote by the stockholders of the Company).

          (b) If it is determined pursuant to Section 12(a) hereof that Indemnitee is entitled
to indemnification, payment to Indemnitee shall be made within ten (10) days after such
determination. Indemnitee shall cooperate with the person, persons or entity making such
determination with respect to Indemnitee’s entitlement to indemnification, including providing to
such person, persons or entity upon reasonable advance written request any documentation or
information that is not privileged or otherwise protected from disclosure and that is reasonably
available to Indemnitee and reasonably necessary to such determination. Any Expenses incurred by
or on behalf of Indemnitee in so cooperating with the person, persons or entity making such
determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s
entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee
harmless therefrom. The Company promptly will advise Indemnitee in writing with respect to any
determination that Indemnitee is or is not entitled to indemnification, including a description of
any reason or basis for which indemnification has been denied.

          (c) In the event the determination of entitlement to indemnification is to be made by
Independent Counsel pursuant to Section 12(a) hereof, the Independent Counsel shall be
selected as provided in this Section 12(c). If a Change in Control shall have occurred,
the Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such
selection be made by the Board, in which event the following sentence shall apply), and Indemnitee
shall give written notice to the Company advising it of the identity of the Independent Counsel so
selected and certifying that the Independent Counsel so selected meets the requirements of
“Independent Counsel” as defined in Section 2 of this Agreement. If a Change in Control shall not
have occurred and the determination with respect to Indemnitee’s entitlement to indemnification
hereunder is to be made by Independent Counsel pursuant to Section 12(a)(iii), the
Independent Counsel shall be selected by the Board, and the Company shall give written notice to
Indemnitee advising him of the identity of the Independent Counsel so selected and certifying that
the Independent Counsel so selected meets the requirements of “Independent Counsel” as defined in
Section 2 of this Agreement. In either event, Indemnitee or the Company, as the case may be, may,
within ten (10) days after such written notice of selection shall have been given, deliver to the
Company or to Indemnitee, as the case may be, a written objection to such selection; provided,
however, that such objection may be asserted only on the ground that the Independent Counsel so
selected does not meet the requirements of “Independent Counsel” as defined in Section 2(g)
of this Agreement, and the

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objection shall set forth with particularity the factual basis of such assertion. Absent a
proper and timely objection, the person so selected shall act as Independent Counsel. If such
written objection is so made and substantiated, the Independent Counsel so selected may not serve
as Independent Counsel unless and until such objection is withdrawn or the Delaware Court has
determined that such objection is without merit. If, within twenty (20) days after the later of
(i) submission by Indemnitee of an Indemnification Notice pursuant to Section 11(a) hereof
and (ii) the final disposition of the Proceeding, no Independent Counsel shall have been selected
and not objected to, either the Company or Indemnitee may petition the Delaware Court for
resolution of any objection made by the Company or Indemnitee to the other’s selection of
Independent Counsel and/or for the appointment as Independent Counsel of a person selected by such
court or by such other person as such court shall designate, and the person with respect to whom
all objections are so resolved or the person so appointed shall act as Independent Counsel under
Section 12(a) hereof. Upon the due commencement of any judicial proceeding or arbitration
pursuant to Section 14(a) of this Agreement, Independent Counsel shall be discharged and
relieved of any further responsibility in such capacity (subject to the applicable standards of
professional conduct then prevailing).

          (d) If the Company disputes a portion of the amounts for which indemnification is requested,
the undisputed portion shall be paid and only the disputed portion withheld pending resolution of
any such dispute.

     Section 13. Presumptions and Effect of Certain Proceedings.

          (a) In making a determination with respect to entitlement to indemnification hereunder, the
person, persons or entity making such determination (including any Independent Counsel) shall, to
the fullest extent not prohibited by law, presume that Indemnitee is entitled to indemnification
under this Agreement, and the Company shall, to the fullest extent not prohibited by law, have the
burden of proof to overcome that presumption in connection with the making by any person, persons
or entity of any determination contrary to that presumption. Neither the failure of the Company
(including by its directors or Independent Counsel) to have made a determination, at any time prior
to the commencement of any action pursuant to this Agreement, as to whether indemnification is
proper in the circumstances because Indemnitee has or has not met the applicable standard of
conduct, nor an actual determination by the Company (including by its directors or Independent
Counsel) that Indemnitee has not met such applicable standard of conduct, shall be a defense to the
action or create a presumption that Indemnitee has not met the applicable standard of conduct.

          (b) Subject to Section 14(e) (which section allows determination regarding
Indemnitee’s entitlement to indemnification under this Agreement to be deferred until following the
final disposition of the Proceeding), if the person, persons or entity empowered or selected under
Section 12 of this Agreement to determine whether Indemnitee is entitled to indemnification
shall not have made a determination within sixty (60) days after receipt by the Company of the
Indemnification Notice from Indemnitee therefor, the requisite determination of entitlement to
indemnification shall, to the fullest extent not prohibited by law, be deemed to have been made and
Indemnitee shall be entitled to such indemnification, absent (i) a misstatement by Indemnitee of a
material fact, or an omission of a material fact necessary to make Indemnitee’s statement not
materially misleading, in connection with the request for indemnification, or (ii) a prohibition of
such indemnification under applicable law; provided, however, that such sixty (60)-day period may
be extended for a reasonable time, not to exceed an additional thirty (30) days, if the person,
persons or entity making the determination with respect to entitlement to indemnification in good
faith requires such additional time for the obtaining or evaluating of documentation and/or
information relating thereto; provided, further, that the foregoing provisions of this Section
13(b) shall not apply (i) if the determination of entitlement to indemnification is to be made
by

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the stockholders pursuant to Section 12(a)(iv) of this Agreement and if (A) within
fifteen (15) days after receipt by the Company of the request for such determination the Board has
resolved to submit such determination to the stockholders for their consideration at an annual
meeting thereof to be held within seventy-five (75) days after such receipt and such determination
is made thereat, or (B) a special meeting of stockholders is called within fifteen (15) days after
such receipt for the purpose of making such determination, such meeting is held for such purpose
within sixty (60) days after having been so called and such determination is made thereat, or (ii)
if the determination of entitlement to indemnification is to be made by Independent Counsel
pursuant to Section 12(a) of this Agreement.

          (c) The termination of any Proceeding or of any claim, issue or matter therein, by judgment,
order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not
(except as otherwise expressly provided in this Agreement) in and of itself adversely affect the
right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good
faith and in a manner which he reasonably believed to be in or not opposed to the best interests of
the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to
believe that his conduct was unlawful.

          (d) For purposes of any determination of good faith, Indemnitee shall be deemed to have acted
in good faith if Indemnitee’s action is based on the records or books of account of the Enterprise,
including financial statements, or on information supplied to Indemnitee by the directors or
officers of the Enterprise in the course of their duties, or on the advice of legal counsel for the
Enterprise, or on information or records given or reports made to the Enterprise by an independent
certified public accountant or by an appraiser or other expert selected with the reasonable care by
the Enterprise. The provisions of this Section 13(d) shall not be deemed to be exclusive
or to limit in any way the other circumstances in which Indemnitee may be deemed to have met the
applicable standard of conduct set forth in this Agreement.

          (e) The knowledge and/or actions, or failure to act, of any other director, officer, agent or
employee of the Company or any other Enterprise shall not be imputed to Indemnitee for purposes of
determining Indemnitee’s right to indemnification under this Agreement.

     Section 14. Remedies of Indemnitee.

     (a) In the event that:

          i. a determination is made pursuant to Section 12(a) of this Agreement that
Indemnitee is not entitled to indemnification under this Agreement;

          ii. advancement of Expenses is not timely made pursuant to Section 10 of this
Agreement;

          iii. subject to Section 14(e) (which section allows determination regarding
Indemnitee’s entitlement to indemnification under this Agreement to be deferred until
following the final disposition of the Proceeding), no determination of entitlement to
indemnification shall have been made pursuant to Section 12(a) of this Agreement
within ninety (90) days after receipt by the Company of the Indemnification Notice, as
provided in Section 13(b);

          iv. payment of indemnification is not made pursuant to Section 5, 6 or
7, or the penultimate sentence of Section 12(b) of this Agreement within ten
(10) days after receipt by the Company of a written request therefor;

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          v. payment of indemnification pursuant to Section 3, 4 or 8 of
this Agreement is not made within ten (10) days after a determination has been made that
Indemnitee is entitled to indemnification; or

          vi. the Company or any other person or Enterprise takes or threatens to take any action
to declare this Agreement void or unenforceable, or institutes any litigation or other
action or Proceeding designed to deny, or to recover from, Indemnitee the benefits provided
or intended to be provided to Indemnitee hereunder,

then, in any such event, Indemnitee shall be entitled to an adjudication by the Delaware Court of
his entitlement to such indemnification or advancement of Expenses. Alternatively, Indemnitee, at
his option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the
Commercial Arbitration Rules of the American Arbitration Association. The Company shall not oppose
Indemnitee’s right to seek any such adjudication or award in arbitration. If requested by
Indemnitee, the Company shall use its best efforts to cause such adjudication or arbitration to be
considered and decided on an expedited basis by the Delaware Court or the arbitrator, as
applicable.

          (b) In the event that a determination shall have been made pursuant to Section 12(a)
of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or
arbitration commenced pursuant to this Section 14 shall be conducted in all respects as a
de novo trial or arbitration on the merits and Indemnitee shall not be prejudiced by reason of that
adverse determination. In any judicial proceeding or arbitration commenced pursuant to this
Section 14 the Company shall have the burden of proving Indemnitee is not entitled to
indemnification or advancement of Expenses, as the case may be.

          (c) If a determination shall have been made pursuant to Section 12(a) of this
Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such
determination in any judicial proceeding or arbitration commenced pursuant to this Section
14, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material
fact necessary to make Indemnitee’s statement not materially misleading, in connection with the
request for indemnification, or (ii) a prohibition of such indemnification under applicable law.

          (d) The Company shall, to the fullest extent not prohibited by law, be precluded from
asserting in any judicial proceeding or arbitration commenced pursuant to this Section 14
that the procedures and presumptions of this Agreement are not valid, binding and enforceable and
shall stipulate in any such court or before any such arbitrator that the Company is bound by all
the provisions of this Agreement. It is the intent of the Company that, to the fullest extent
permitted by law, Indemnitee not be required to incur legal fees or other Expenses associated with
the interpretation, enforcement or defense of Indemnitee’s rights under this Agreement by
litigation, arbitration or otherwise because the cost and expense thereof would substantially
detract from the benefits intended to be extended to Indemnitee hereunder. The Company shall, to
the fullest extent permitted by law, indemnify Indemnitee against any and all Expenses and, if
requested by Indemnitee, shall (within ten (10) days after receipt by the Company of a written
request therefor) advance, to the extent not prohibited by law, such Expenses to Indemnitee, which
are incurred by or on behalf of Indemnitee in connection with any action, proceeding or arbitration
brought by Indemnitee for indemnification or advance of Expenses from the Company under this
Agreement or under any directors’ and officers’ liability insurance policies maintained by the
Company.

          (e) Notwithstanding anything in this Agreement to the contrary, no determination as to
entitlement of Indemnitee to indemnification under this Agreement shall be required to be made
prior to the final disposition of the Proceeding; provided however and for the avoidance of doubt
nothing in this

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Section 14(e) shall limit or postpone the obligations of the Company otherwise set
forth herein to advance Expenses.

     Section 15. Non-exclusivity; Survival of Rights; Insurance; Subrogation.

          (a) The rights of indemnification and to advancement of Expenses as provided by this Agreement
(i) shall not be deemed exclusive of any other rights to which Indemnitee may at any time be
entitled under applicable law, the Company’s Certificate of Incorporation, the Company’s By-laws,
any agreement, a vote of stockholders or a resolution of directors, or otherwise and (ii) shall be
interpreted independently of and without reference to any other such rights to which Indemnitee may
at any time be entitled or any limitation or constraint (whether procedural, substantive or
otherwise) in the exercise by Indemnitee of any other such rights. No amendment, alteration or
repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee
under this Agreement in respect of any action taken or omitted by Indemnitee in his Corporate
Status prior to such amendment, alteration or repeal. To the extent that a change in Delaware law,
whether by statute or judicial decision, permits greater indemnification or advancement of Expenses
than would be afforded currently under the Company’s Certificate of Incorporation, the Company’s
By-laws and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by
virtue of this Agreement the greater benefits so afforded by such change. To the extent that a
change in Delaware law, whether by statute or judicial decision, narrows or limits indemnification
or advancement of Expenses that are afforded under the Company’s Certificate of Incorporation, the
Company’s By-laws or this Agreement, it is the intent of the parties hereto that such change,
except to the extent required by applicable law, shall have no effect on this Agreement or the
parties’ rights and obligations hereunder. No right or remedy herein conferred is intended to be
exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter existing at law or in
equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise,
shall not prevent the concurrent assertion or employment of any other right or remedy.

          (b) As long as Indemnitee shall continue to serve as a director and/or officer of the Company
or as a director, officer, employee, fiduciary or agent of any other Enterprise, and thereafter for
the duration of this Agreement specified in Section 16, the Company will purchase and
maintain in effect for the benefit of Indemnitee one or more valid, binding and enforceable
policies (the “Insurance Policies”) of directors’ and/or officers’ liability insurance
(“D&O Insurance”) providing liability coverage for Indemnitee’s acts in such capacities;
provided, however, that the Company shall not be required to pay with respect to such Insurance
Policies in respect of any one policy year more than 250% of the last annual premium paid by the
Company prior to the date hereof in respect of the coverages required to be obtained pursuant
hereto, but in such case shall purchase as much coverage as reasonably practicable for 250% of such
last annual premium. The Company shall promptly notify Indemnitee of any lapse, amendment or
failure to renew said policy or policies or any material provision thereof relating to the extent
or nature of coverage provided thereunder. To the extent that the Company maintains Insurance
Policies providing liability insurance for directors, officers, employees, fiduciaries or agents of
the Company or any other Enterprise, Indemnitee shall be covered by such policy in accordance with
its terms to the maximum extent of the coverage available for any such director, officer, employee,
fiduciary or agent under such policy. If, at the time of the receipt of an Indemnification Notice
pursuant to the terms hereof, the Company has D&O Insurance in effect, the Company shall give
prompt notice of such claim or of the commencement of a Proceeding, as the case may be, to the
applicable insurers in accordance with the procedures set forth in the applicable policy. The
Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on
behalf of Indemnitee, all amounts payable as a result of such Proceeding in accordance with the
terms of each such policy.

-12-

 

          (c) Except as set forth in Section 15(f), in the event of any payment under this
Agreement to or on behalf of Indemnitee, the Company shall be subrogated to the extent of such
payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and
take all action necessary to secure such rights, including execution of such documents as are
necessary to enable the Company to bring suit to enforce such rights.

          (d) Except as set forth in Section 15(f), the Company shall not be liable under this
Agreement to or on behalf of Indemnitee to make any payment of amounts otherwise indemnifiable
(including Expenses for which advancement is provided hereunder) hereunder if and to the extent
that Indemnitee has otherwise actually received such payment under any insurance policy, contract,
agreement or otherwise.

          (e) Except as set forth in Section 15(f), the Company’s obligation to indemnify or to
advance Expenses hereunder to Indemnitee in connection with any claim related to Indemnitee’s
service as a director, officer, employee, fiduciary or agent of any Enterprise other than the
Company shall be reduced by any amount Indemnitee has actually received as indemnification or
advancement of Expenses with respect to such claim from such other Enterprise.

          (f) The Company hereby acknowledges that Indemnitee now or in the future may have certain
rights to indemnification, advancement of Expenses and/or insurance provided by a third party as to
which Indemnitee serves as a director, officer or employee other than the Company or any other
Enterprise (such third party, if applicable, a “Secondary Indemnitor”). The Company hereby
agrees that (i) it is the indemnitor of first resort with respect to the matters addressed in this
Agreement (i.e., its obligations to Indemnitee are primary and any obligation of a Secondary
Indemnitor, as applicable, to advance Expenses or to provide indemnification for the same Expenses
or liabilities incurred by or on behalf of Indemnitee are secondary to any such obligation of the
Company), (ii) it shall be liable for the full amount of all Expenses and liabilities to the extent
legally permitted and as required by the terms of this Agreement and the Certificate of
Incorporation or By-laws of the Company (or any other agreement between the Company and
Indemnitee), without regard to any rights Indemnitee may have against a Secondary Indemnitor, as
applicable, and (iii) it irrevocably waives, relinquishes and releases each Secondary Indemnitor,
as applicable, and Indemnitee from any and all claims (x) against such Secondary Indemnitor, as
applicable, for contribution, indemnification, subrogation or any other recovery of any kind in
respect of the matters addressed in this Section 15(f) and (y) that Indemnitee must seek
Expense advancement or reimbursement, or indemnification, from any Secondary Indemnitor, as
applicable, before the Company must perform its Expense advancement and reimbursement, and
indemnification obligations, under this Agreement. No advancement or payment by any Secondary
Indemnitor, as applicable, on behalf of Indemnitee with respect to any claim for which Indemnitee
has sought indemnification from the Company shall affect any of the foregoing. Each Secondary
Indemnitor, as applicable, shall be subrogated to the extent of such advancement or payment to all
of the rights of recovery which Indemnitee would have had against the Company if such Secondary
Indemnitor, as applicable, had not advanced or paid any amount to or on behalf of Indemnitee. If
for any reason a court of competent jurisdiction determines that a Secondary Indemnitor, as
applicable, is not entitled to the subrogation rights described in the immediately preceding
sentence, such Secondary Indemnitor, as applicable, shall have a right of contribution by the
Company to such Secondary Indemnitor, as applicable, with respect to any advance or payment by such
Secondary Indemnitor, as applicable, to or on behalf of Indemnitee. The Company and Indemnitee
agree that each Secondary Indemnitor, as applicable, is an express third party beneficiary of this
Section 15(f).

     Section 16. Duration of Agreement. This Agreement shall continue in full force and
effect until and terminate upon the later of: (a) ten (10) years after the date that Indemnitee
shall have ceased to

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serve as a director, officer, employee, fiduciary and/or agent of the Company or any other
Enterprise, and (b) two (2) years after the final termination of any Proceeding then pending in
respect of which Indemnitee is granted rights of indemnification or advancement of Expenses
hereunder (including any rights of appeal thereto) and of any proceeding commenced by Indemnitee
pursuant to Section 14 of this Agreement. The indemnification and advancement of Expenses
rights provided by or granted pursuant to this Agreement shall be binding upon and be enforceable
by the parties hereto and their respective successors and assigns (including any direct or indirect
successor by purchase, merger, consolidation or otherwise to all or substantially all of the
business or assets of the Company), shall continue whether or not Indemnitee has ceased to be a
director, officer, employee, fiduciary or agent of the Company or of any other Enterprise, and
shall inure to the benefit of Indemnitee and his spouse, assigns, heirs, devisees, executors and
administrators and other legal representatives. The Company shall require any such successor or
assignee to, by written agreement, expressly assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform if no such succession
or assignment had taken place.

     Section 17. Amendments to Certificate of Incorporation or By-laws. Any amendments to
the Certificate of Incorporation or the By-laws of the Company that purport to reduce or eliminate
indemnification rights of Indemnitee thereunder shall have no effect with respect to this
Agreement, and Indemnitee shall continue to have all of the rights and benefits of this Agreement
despite any such amendments to the Certificate of Incorporation and/or the By-laws. However, if
the Certificate of Incorporation or the By-laws of the Company are amended to provide for greater
indemnification rights or privileges, this Agreement shall not be construed so as to limit
Indemnitee’s rights and privileges to the terms hereof, and Indemnitee shall be entitled to the
full benefit of any such additional rights and privileges.

     Section 18. Severability. If any provision or provisions of this Agreement shall be
held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality
and enforceability of the remaining provisions of this Agreement (including each portion of any
Section of this Agreement containing any such provision held to be invalid, illegal or
unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be
affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law;
(b) such provision or provisions shall be deemed reformed to the extent necessary to conform to
applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the
fullest extent possible, the provisions of this Agreement (including, without limitation, each
portion of any Section of this Agreement containing any such provision held to be invalid, illegal
or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to
give effect to the intent manifested thereby.

     Section 19. Enforcement; Prior Indemnification Agreements.

          (a) The Company expressly confirms and agrees that it has entered into this Agreement and
assumed the obligations imposed on it hereby in order to encourage Indemnitee to serve as a
director, officer, employee and/or agent of the Company and/or one or more other Enterprises, and
the Company acknowledges that Indemnitee is relying upon this Agreement in serving as a director,
officer, employee and/or agent of the Company and/or any of such other Enterprises.

          (b) This Agreement constitutes the entire agreement between the parties hereto with respect to
the subject matter hereof and supersedes all prior agreements and understandings, oral, written and
implied, between the parties hereto with respect to the subject matter hereof, including any Prior
Indemnification Agreement entered into by and between the Company and Indemnitee, which is hereby
terminated and cancelled; provided, however, that this Agreement is a supplement to and in
furtherance of

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the Certificate of Incorporation of the Company, the By-laws of the Company, any D&O Insurance
policy maintained by the Company and applicable law, and shall not be deemed a substitute therefor,
nor to diminish or abrogate any rights of Indemnitee thereunder.

     Section 20. Modification and Waiver. No supplement, modification or amendment of this
Agreement shall be binding unless executed in writing by the parties hereto. No waiver of any of
the provisions of this Agreement shall be deemed or shall constitute a waiver of any other
provisions of this Agreement nor shall any waiver constitute a continuing waiver. In the event the
Company enters into an indemnification agreement with another director or officer of the Company
containing a term or terms more favorable to Indemnitee than the terms contained herein (as
determined by Indemnitee), Indemnitee shall be afforded the benefit of such more favorable term or
terms and such more favorable term or terms shall be deemed incorporated by reference herein as if
set forth in full herein.

     Section 21. Notice by Indemnitee. Indemnitee agrees promptly to notify the Company in
writing upon being served with any summons, citation, subpoena, complaint, indictment, information
or other document relating to any Proceeding or matter that is or may be subject to indemnification
or advancement of Expenses covered hereunder. The failure of Indemnitee to so notify the Company
shall not relieve the Company of any obligation which it may have to Indemnitee under this
Agreement or otherwise.

     Section 22. Notices. All notices, requests, demands and other communications under
this Agreement shall be in writing and shall be deemed to have been duly given if (a) delivered by
hand and receipted for by the party to whom said notice or other communication shall have been
directed, (b) mailed by certified or registered mail with postage prepaid, on the third business
day after the date on which it is so mailed, (c) mailed by reputable overnight courier and
receipted for by the party to whom said notice or other communication shall have been directed, or
(d) sent by facsimile transmission, with receipt of oral confirmation that such transmission has
been received:

If to Indemnitee:

at the address indicated on the signature page of this Agreement, or such other address as Indemnitee shall provide to the Company in writing.

If to the Company to:

Leap Wireless International, Inc.

5887 Copley Drive

San Diego, CA 92111

Attention: President

Fascimile: (858) 882-6040

or to any other address as may have been furnished to Indemnitee by the Company in writing.

     Section 23. Contribution. To the fullest extent permissible under applicable law, if
the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason
whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount
incurred by or on behalf of Indemnitee, whether for judgments, fines, penalties, excise taxes,
amounts paid or to be paid in settlement and/or Expenses, in connection with any Proceeding or
other claim relating to an indemnifiable event under this Agreement, in such proportion as is
deemed fair and reasonable in light of all of the circumstances of such Proceeding or other claim
in order to reflect (a) the relative benefits received by the

-15-

 

Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such
Proceeding; and/or (b) the relative fault of the Company (and its directors, officers, employees
and agents) and Indemnitee in connection with such event(s) and/or transaction(s).

     Section 24. Applicable Law and Consent to Jurisdiction. This Agreement and the legal
relations among the parties shall be governed by, and construed and enforced in accordance with,
the laws of the State of Delaware, without regard to its conflict of laws rules. Except with
respect to any arbitration commenced by Indemnitee pursuant to Section 14(a) of this
Agreement, the Company and Indemnitee hereby irrevocably and unconditionally (a) agree that any
action or proceeding arising out of or in connection with this Agreement shall be brought only in
the Chancery Court of the State of Delaware (the “Delaware Court”), and not in any other
state or federal court in the United States of America or any court in any other country, (b)
consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or
proceeding arising out of or in connection with this Agreement, (c) appoint, to the extent such
party is not otherwise subject to service of process in the State of Delaware, Corporation Service
Company, 2711 Centerville Road, Wilmington, Delaware 19808 irrevocably as its agent in the State of
Delaware as such party’s agent for acceptance of legal process in connection with any such action
or proceeding against such party with the same legal force and validity as if served upon such
party personally within the State of Delaware, (d) waive any objection to the laying of venue of
any such action or proceeding in the Delaware Court, and (e) waive, and agree not to plead or to
make, any claim that any such action or proceeding brought in the Delaware Court has been brought
in an improper or inconvenient forum, or is subject (in whole or in part) to a jury trial.

     Section 25. Construction

          (a) The section and subsection headings contained in this Agreement are solely for the purpose
of reference and convenience, are not part of the agreement of the parties, and shall not in any
way limit, modify or otherwise affect the meaning or interpretation of this Agreement.

          (b) References to “Sections” or “Articles” refer to corresponding Sections or Articles of this
Agreement unless otherwise specified.

          (c) Unless the context requires otherwise, the words “include,” “including” and variations
thereof mean without limitation, the words “hereof,” “hereby,” “herein,” “hereunder” and similar
terms refer to this Agreement as a whole and not any particular section or article in which such
words appear, any reference to a law shall include any amendment thereof or any successor thereto
and any rules and regulations promulgated thereunder, and the word “or” shall be disjunctive but
not exclusive.

          (d) Unless the context requires otherwise, words in the singular include the plural, words in
the plural include the singular, and words importing any gender shall be applicable to all genders.

     Section 26. Counterparts; Facsimile Signatures. This Agreement may be executed in two
or more counterparts, each of which shall for all purposes be deemed to be an original but all of
which, taken together, shall constitute one and the same Agreement. Only one such counterpart
signed by the party against whom enforceability is sought needs to be produced to evidence the
existence of this Agreement. This Agreement may be executed and delivered by facsimile or email
transmission of a file in “.pdf” or similar format and upon such delivery, each signature shall be
deemed to have the same effect as if the original signature had been delivered to the other party.

Signature page follows.

-16-

 

     IN WITNESS WHEREOF, the parties have caused this Agreement to be signed as of the day and year
first above written.

	 	 	 	 	 
	 	LEAP WIRELESS INTERNATIONAL, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	INDEMNITEE

 	 
	  	 	 
	 	Printed Name:  	 	 
	 	Address:

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