{"id":42646,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/outsourcing-agreement-modus-media-international-and-dragon.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"outsourcing-agreement-modus-media-international-and-dragon","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/operations\/outsourcing-agreement-modus-media-international-and-dragon.html","title":{"rendered":"Outsourcing Agreement &#8211; Modus Media International and Dragon Systems Inc."},"content":{"rendered":"<pre>\n                              OUTSOURCING AGREEMENT\n\n                                    BETWEEN:\n\n                            MODUS MEDIA INTERNATIONAL\n                                LANDDROSTLAAN 51\n                                7327 GM APELDOORN\n                                 THE NETHERLANDS\n                               (HEREINAFTER \"MMI\")\n\n                                       AND\n\n                              DRAGON SYSTEMS, INC.\n                                320 NEVADA STREET\n                                NEWTON, MA 02160\n                                     U.S.A.\n                          (HEREAFTER \"DRAGON SYSTEMS\")\n\n                        EFFECTIVE AS OF (EFFECTIVE DATE)\n\n1.       PURPOSE OF AGREEMENT Formalize the agreements made regarding services\nand products between Dragon Systems and MMI.\n\n2.       SERVICES MMI will produce products for Dragon Systems on a Turnkey\nbasis. Initially, services will cover 3 products, as per the attached price\nsheets. However, this may be extended.\n\nSpecific services will be:\n\n-        Receipt and Management of master materials\n\n-        Supply base management\n\n-        Production (both components &amp; finished goods)\n\n-        Delivery\n\n-        Inventory Management\n\n-        Financial Services\n\nQuality and Services Level Agreements will be based on mutual agreement.\n\n3.       DELIVERY\n\nMMI shall deliver the Services in line with the agreed service levels to Dragon\nSystems.\n\n\n\nConfidential Materials omitted and filed separately with the Securities and\nExchange Commission. Asterisks denote omissions.\n\n4.       ACCEPTANCE OF SERVICES\n\nDragon Systems may reject the Services if they do not comply with the\nspecification set out by Dragon \\s\\ JB. The Services are deemed to be accepted\nif MMI does not receive a notification within 60 days after delivery to Dragon\nSystems or its customers.\n\n5.       PAYMENT AND PRICING\n\nDragon Systems will compensate MMI for all Services rendered in accordance with\nthe rates specified in the Annex \"Prices.\" Unless otherwise agreed, prices shall\nexclude transport, insurance, VAT and Import duties (outside EC countries) to\nDragon Systems' designated delivery address.\n\nFor all materials in stock, older than 90 days, MMI will charge Dragon Systems\nwith an Inventory Carriage Charge of [**] of its value per month.\n\nMMI will invoice Dragon Systems based on actual shipments that have been\nperformed.\n\nPayments will be due in US dollars within 30 days after delivery, or when agreed\nafter delivery of installments or the receipt of invoice by Dragon Systems,\nwhich ever is later. MMI shall invoice Dragon Systems indicating the performed\nservices in US$ with reference to this Agreement.\n\nDragon Systems shall be entitled to deduct from or set off against any sums\nwhich Dragon Systems may be liable to pay to MMI any amounts owed by MMI, its\naffiliated entities, subsidiaries or successors in interest.\n\n6.       WARRANTY\n\nMMI warrants providing the Services with due diligence and care in accordance\nwith the specifications set by Dragon Systems. Should MMI not supply the\nServices as agreed or should the Services become defective within 6 months from\ntheir delivery to Dragon Systems, Dragon Systems may at its option require MMI\nto complete or re-perform the Services within a reasonable period of time,\nrescind the contract or refuse payment of the compensation in part or in total,\nnotwithstanding any damage claims.\n\n7.       INDEMNITY\n\nMMI shall reimburse Dragon Systems and hold Dragon Systems harmless from any\nliabilities or obligations imposed upon Dragon Systems resulting directly or\nindirectly from MMI's or its employees or agents activities under this\nAgreement.\n\n\n-2-\n\n8.       LIABILITY\n\nEither party shall be liable for failure or delay in performance of its duties\nunder this Agreement except for reasons beyond such party's reasonable control.\nMMI shall not be liable for indirect or consequential damages unless caused by\nintention or gross negligence.\n\n9.       CONFIDENTIALITY\n\nBoth parties shall take reasonable precautions to preserve in strict confidence\nany confidential or proprietary information obtained by them, their agents or\nemployees concerning the business, products, equipment or services of the other\nparty, including without limitation, trade secrets. Such reasonable precautions\nshall include exercising precautionary measures designed to preserve the secrecy\nof such information and to prevent its disclosure to third parties, except\nfollowing prior consent of the other party, with such precautions being at least\nequivalent to those taken by each party with respect to its own confidential\ninformation.\n\n10.      PATENTS AND COPYRIGHT\n\nMMI warrants that the Services supplied to Dragon Systems will not infringe any\nthird parties' intellectual property rights. MMI will defend and indemnity\nDragon Systems against a claim that the Services supplied hereunder infringe a\npatent or copyright and will pay resulting costs and damages provided that\nDragon Systems (i) promptly informs MMI in writing of the claim and (ii) gives\nMMI sole control of the defense and all related settlement negotiations. MMI\nwill either procure the right for Dragon Systems to continue using the Services\nor replace or modify them so that they become non-infringing or accept return of\nthe Services for a credit equal to the price paid by Dragon Systems.\n\n11.      COPYRIGHT AND COPYRIGHT LICENSE\n\nDragon Systems hereby grants MMI the rights to copy in printed or electronic\nform the master materials according to the forecasted numbers given to MMI by\nDragon Systems.\n\n12.      TERM AND TERMINATION\n\nThis Agreement shall be valid for an indefinite period.\n\nBoth parties may terminate the Agreement with immediate effect\n\n-        of either party breaches a material term of the Agreement\n\n-        in case of a merger or change of key management or control\n\n-        in case of bankruptcy or similar.\n\n\nDragon may terminate this agreement without cause by giving sixty (60) days\nwritten notice to MMI.\n\n\n-3-\n\n13.      GOVERNING LAW\n\nAny lawsuit relating to any matter arising under this Agreement may be initiated\nin a State or Federal Court located in the Commonwealth of Massachusetts or in\nany court in the Netherlands having jurisdiction over the matter.\n\n14.      INSURANCE\n\nMMI shall at its own expense obtain and maintain with an insurer adequate\ninsurance coverage in respect of any Dragon Systems property under the care,\ncustody or control of MMI. MMI shall immediately notify Dragon Systems in\nwriting of any theft, loss or damage to any Dragon Systems property and shall\nindemnify Dragon Systems in respect of the same.\n\n\nMMI\n\n\n\\s\\ John Dick                          General Manager\n-------------------------------------------------------\n          19 Jan. 1998\n\nDRAGON SYSTEMS, INC.\n\n\\s\\ Janet M. Baker,                         President\n-----------------------------------------------------\n          12 Jan. 1998\n\n\n\n\n                                       -4-\n\n                                NaturallySpeaking\n\n\n     Part Number              Description     1,000 units    2,500 units   5,000 units   10,000 units   25,000 units  50,000 units\n----------------------   -------------------  -------------  ------------  ------------  -------------  ------------  -------------\n                                                                                                 \n\n\n\n                                [**]\n\n\n                                               -5-\n\n                         Dictate Power\n\n\n     Part Number              Description     1,000 units    2,500 units   5,000 units   10,000 units   25,000 units  50,000 units\n----------------------   -------------------  -------------  ------------  ------------  -------------  ------------  -------------\n                                                                                                 \n\n\n\n                                                [**]\n\n\n                                                 -6-\n\n                          Dictate Classic\n\n\n     Part Number              Description     1,000 units    2,500 units   5,000 units   10,000 units   25,000 units  50,000 units\n----------------------   -------------------  -------------  ------------  ------------  -------------  ------------  -------------\n                                                                                                 \n\n<\/pre>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[7354],"corporate_contracts_industries":[9513],"corporate_contracts_types":[9613,9620],"class_list":["post-42646","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-dragon-systems-inc","corporate_contracts_industries-technology__software","corporate_contracts_types-operations","corporate_contracts_types-operations__services"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/42646","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=42646"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=42646"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=42646"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=42646"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}