printer-friendly

Sample Business Contracts

Product Purchase Agreement - @Road Inc. and Novatel Wireless Technologies Inc.

Sponsored Links

                          Product Purchase Agreement
                                    Between
                                  @Road, Inc.
                                      And
                      Novatel Wireless Technologies, Inc.


This agreement is made by @Road, Inc. and Novatel Wireless Technologies, Inc.
and is effective as of January 1, 2000. The terms and conditions contained in
this Agreement shall govern the production, purchase, warranty and support of
the product mentioned below as "Product". In the event of any conflict between
this Agreement and the terms and conditions of an order, as defined below, this
Agreement shall govern. Novatel Wireless Technologies, Inc shall be referred as
Novatel and @Road, Inc. shall be referred as @Road.

1.0  Product

     1.1  Product supplied to @Road is Expedite CDPD 0.6- Watt radio modem. The
          unit includes the communications board, top and bottom shield covers
          and a 50-ohm RF connector for antenna connection.

     1.2  Novatel may, at its discretion, implement changes in the Product,
          modify the drawings and its specifications, or substitute a Product of
          more recent design; provided, however, that any such changes,
          modifications or substitutions, under normal and proper use shall not
          materially and adversely affect functional performance, form or fit of
          the product. Novatel agrees to provide @Road with 60 days written
          notice of such changes.

2.0  Pricing

     2.1  Novatel agrees to supply the Expedite CDPD modems, to @Road at a unit
          price of [*] during the entire term of this Agreement, which shall run
          from January 1, 2000 to March 31, 2000.

     2.2  The price is FOB Novatel's facility in Carlsbad, California. The price
          includes normal packing for domestic and international shipments. All
          duties, insurance, special packing costs and expenses, and all
          Federal, Provincial, State and local excise, sales, use and other
          similar taxes are for Customer's account and will appear as additional
          items on invoices.

     2.3  Novatel reserves the right to create additional FOB locations as
          additional contract manufactures are selected.

CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE
BEEN REDACTED AND HAVE BEEN SEPARATELY FILED WITH THE COMMISSION.

* CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION.


1 of 4
<PAGE>

3.0  Forecast, Purchase Order and Liability

     3.1  @Road has provided a 3-month purchase order to Novatel. The volume
          required are:

          January 2000        2000
          February 2000       4000
          March 2000          5000

     3.2  Payments terms will be:
          January volume      full payment made in advance
          February volume     [*] 30 days in advance and the remainder upon
                              delivery.
          March volume        [*] 30 days in advance and the remainder upon
                              delivery.

     3.3  If there is more than a 20% negative variance in the @Road purchase
          order and quarter to date numbers, @Road will be responsible for
          making payments of $30 per unit on the variance between the purchase
          order and the actual consumption.

     3.4  If there is more than a 20% negative variance in Novatel's ability to
          ship vs. the quarter to date purchase orders, Novatel will be
          responsible for making payments of $30 per unit on the variance
          between the purchase orders and the actual shipments.

4.0  Warranty.

     4.1  Warranties shall be defined in Schedule `A'

     4.2  @Road will be responsible for sending units to Novatel's facility in
          Carlsbad if warranty repairs are required. If product is determined to
          be no fault found, @Road will be responsible for all freight costs to
          and from Carlsbad.

5.0  Miscellaneous

     5.1  This agreement cannot be assigned to a third party without the written
          consent of @Road and Novatel.
     5.2  All modems sold to @Road must be for internal consumption and cannot
          be resold on the market.
     5.3  @Road agrees to include the Novatel logo for @Road marketing
          materials. This will be defined jointly by the two marketing
          departments at a later date.

* CONFIDENTIAL MATERIAL REDACTED AND FILED SEPARATELY WITH THE COMMISSION.


2 of 4
<PAGE>

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by
their duly authorized representatives.

Novatel Wireless Technologies, Inc.          @Road, Inc.

  /s/ Robert Corey                           /s/ Krish Panu
-------------------------------              ----------------------------
Robert Corey                                 Krish Panu
President and CEO                            President and CEO

3 of 4
<PAGE>

                                  Schedule `A'
                                  ------------

1. Novatel Wireless warrants for a period of 1 year from delivery at the FCA
   point that its Products are free from defects in material and workmanship,
   conform to Novatel Wireless specifications and that the software shall be
   free from errors which materially affect performance. THESE WARRANTIES ARE
   EXPRESSLY IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING,
   WITHOUT LIMITATION, ALL IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR
   A PARTICULAR PURPOSE. NOVATEL WIRELESS SHALL IN NO EVENT BE LIABLE FOR
   SPECIAL, INDIRECT, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, OF ANY KIND OR
   NATURE DUE TO ANY CAUSE.

2. Novatel Wireless' obligations are limited to correction of such failure, by
   implementation of the module swap warranty procedure whenever practicable and
   are conditioned upon the Product having been maintained in accordance with
   Novatel Wireless specifications and the Product not having been modified by
   any party other than Novatel Wireless except as expressly permitted in
   writing.

3. The foregoing warranties do not extend to (i) nonconformity's, defects or
   errors in the Product due to accident, abuse, misuse or negligent use of the
   Product or use in other than a normal and customary manner, environmental
   conditions not conforming to Novatel Wireless' specifications, or failure to
   follow prescribed operating maintenance procedures, (ii) defects, errors or
   nonconformity's in the Product due to modifications, alterations, additions
   or Product changes not made or authorized to be made by Novatel Wireless,
   (iii) normal wear and tear, or (iv) damage caused by force of nature or act
   of any third party.

4 of 4