NDA Letter

FCC ID: HCOHD434NACEHIO4A

Cover Letter(s)

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FCCID_3240515

                                        TERMS AND CONDITIONS OF SALE AND SERVICE
All Purchase Orders are subject to these terms and conditions and all additional terms and conditions presented on or accompanying a Dali
Quotation or Dali Order Acknowledgement. Dali specifically rejects and Customer disclaims all printed provisions in Customer’s printed
Purchase Orders including associated forms and/or documents. These terms and conditions (these “Terms”), together with Dali Quotation
and Order Acknowledgement shall constitute the entire agreement between Dali and Customer with respect to any Customer Purchase
Order and the Materials and/or Services provided hereunder. These supersede any prior or contemporaneous agreements or representations
written or oral. Any amendment of these Terms must be in writing and signed by Dali to be binding on Dali.
1.        Definitions.                                                  2.        Acceptance Of Purchase Orders.          As used herein,
                                                                        “Acceptance of Customer’s Purchase Order” shall mean Dali’s
      1.1 “Customer” means the person or entity however                 agreement, as evidenced by the issuance of an Order
constituted to whom the Material or Services are provided by or         Acknowledgement, to supply the Material and/or Services
through Dali.                                                           identified in Customer’s Purchase Order under these Terms. All
      1.2 “Dali” means Dali Wireless, Inc. and its affiliates.          Customer Purchase Orders are subject to written acceptance by
                                                                        Dali, at its sole discretion, even if received elsewhere by a
      1.3 “Delivery” means the Shipment Date for Material or the        salesperson, selling agent or representative. No Customer Purchase
date of substantial completion of the Services or any stage thereof.    Order will be binding upon Dali until Dali issues its written Order
       1.4 “Material(s)” means the Products and/or Standard             Acknowledgement.
Software offered for sale or licensed to Customer by Dali in            3.        Price Of Material and/or Services. The price for Material
fulfillment of a Purchase Order.                                        and Services are based on Dali’s published list prices in effect at
      1.5 “Order Acknowledgement” means a document delivered            time of Dali’s receipt of Customer’s Purchase Order unless
to Customer by Dali or acknowledging the receipt of Customer’s          otherwise set forth in the Order Acknowledgement, or a valid
Purchase Order and Dali’s agreement to supply the Material and/or       issued Quotation, Statement of Work or proposal. A Quotation,
Services stated on such Purchase Order under these Terms.               Statement of Work or proposal is valid for a period of thirty (30)
                                                                        days from date of issue. Errors or omissions in price are subject to
      1.6 “Product” means hardware of Dali’s design and                 correction by Dali. All published list prices are subject to change
manufacture, or other manufacturer’s equipment offered for sale by      by Dali without notice. Dali retains all rights to change the Material
Dali to Customer. Product does not include Standard Software or         and/or Services or may discontinue any Material and/or Services at
Services.                                                               Dali’s sole discretion.
      1.7 “Purchase Order” means Customer’s document for the                       3.1       Prices; Adjustments. The price of Services
acquisition of Materials and/or Services, exclusive of all printed      may subsequently be adjusted to reasonably reflect the adverse cost
terms and conditions contained thereon.                                 impact to Dali of: (i) Customer changes or delays which are outside
                                                                        of the scope of Services; (ii) legal/regulatory changes which occur
      1.8 “Quotation” means either Dali’s offer to sell Services
                                                                        after the issuance of the Quotation and/or Statement of Work for
and/or Material or Dali’s document that provides a summary of the
                                                                        the particular Services in question; and/or (iii) the failure of
Statement of Work and pricing corresponding to the Statement of
                                                                        Customer to perform its obligations under Section 6, 7, and 8. In
Work.
                                                                        the event Customer objects to an adjustment to the price, Dali shall
      1.9 “Services” means various types of services provided by        have the right to terminate the Purchase Order, in whole or in part
Dali to Customer covering items such as training, maintenance           and in addition to any other remedy available to Dali, Customer
services, on-site support, applications engineering, site engineering   shall make immediate payment to Dali on account of all Materials
and installation. Services are not Material.                            delivered and/or Services rendered prior to the termination.
      1.10 “Shipment” means shipment of Material to Customer            4.         Purchase Order Changes. Customer may not change its
at the agreed destination. Shipments within the continental United      Purchase Order without Dali’s written consent. Any revision in
States and all international destinations are made EXW (Incoterms       drawings, designs, specifications, shipment completion dates or
2010).                                                                  Purchase Order termination requested by Customer may result in
                                                                        additional cost to Customer. Any additional cost to Customer will
     1.11 “Shipment Date” means the date on which Dali has              be at Dali’s standard rates in effect at the time of Customer’s
scheduled Shipment.                                                     request. Dali’s performance of Customer’s request shall commence
     1.12 “Software License Agreement” means the Dali                   only upon the issuance of a new Purchase Order or written
Software License Agreement.                                             amendment to an existing Purchase Order authorizing the
                                                                        applicable charge. Customer’s oral requests for Services shall be
      1.13 “Standard Software” means a set of instructions which        binding on Customer and deemed by Dali as valid Customer
allows hardware/non-intelligent Products to store, manipulate           Purchase Orders, governed by these Terms. Customer further
and/or process information. Standard Software is licensed by Dali       agrees, as a result of any request made hereunder to pay any and all
separately or as part of a Product sale. Standard Software is not a     charges associated with such Service request. Customer requested
Product.                                                                changes in performance of Services shall be reviewed upon Dali’s
      1.14 “Statement of Work” means Dali’s document which              receipt of Customer’s request to determine if additional charges are
describes in detail the work or Services to be performed and any        applicable.
Material to be supplied.

                                                            TERMS AND CONDITIONS
                                                             DALI WIRELESS, INC.
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5.         Schedule for Performance of Services. Dali will perform         10.       Payment Terms. Customer’s payment obligations are
the Services in accordance with the schedule stated in the Quotation       stated on Dali’s invoices. Invoices for Services will be rendered in
and/or Statement of Work. Both parties agree to use reasonable             accordance with an established milestone schedule or upon
efforts to adhere to the schedule, however, each party will give due       completion of any Services. Delinquent payments shall bear interest
consideration to any reasonable proposal by the other party                at the rate of one and one-half percent (1½%) or the maximum
regarding changes in the schedule which, if agreed upon, will be           permitted by law, whichever is less, per month on outstanding
recorded in a written modification to the applicable Purchase Order.       balances may be charged. All amounts due shall be payable in
Dates for performance of Services are estimated by Dali in good            United States dollars unless otherwise specifically agreed upon in
faith but not guaranteed. Dali will have unrestricted access to            Dali’s Order Acknowledgement.            If, in Dali’s judgment,
Customer’s site and any other locations at which Services are to be        Customer’s financial condition does not justify continuation of the
performed at all times (including overtime hours, Saturday,                existing payment terms, Dali may: (i) require full or partial
Sundays and holidays) for the purpose of performing the Services.          payment of Customer’s account; (ii) require payment in advance of
                                                                           Material shipment; (iii) require payment in advance for
6.        Site Preparation and Condition for Services. Customer            performance of any Services; (iv) change Customer’s credit terms;
will be responsible for preparation of the site, at which Dali will        or (v) any combination of the above.
perform the Services to the specifications and in accordance with
the time schedule stated in the Quotation and/or Statement of Work.        11.        Warranties. Dali warrants from the Shipment Date that
Customer warrants to Dali that each such site is in compliance with        Product bearing Dali name will substantially conform to Dali
all applicable health and safety regulations and is free from all          specifications in effect as of the Shipment Date and will be free
friable asbestos and hazardous contamination or pollutants, as             from substantial defects in material and workmanship under normal
further provided in Section 8.                                             use, given proper installation and maintenance, for a period of 12
                                                                           months from the Shipment Date for the respective Product(s), and
7.        Hazardous Materials. Prior to the date specified in the          under the terms and conditions set forth in Dali’s current published
Quotation and/or Statement of Work for the performance of                  warranty handbook in effect on the Shipment Date. Dali further
Services, Customer will take any and all steps needed to assure that       warrants to Customer that all Services performed by Dali for
each site is free from all asbestos and hazardous contamination or         Customer will be provided in a workmanlike manner for a period of
pollutants. If contamination is found to be present at a site, Dali        ninety (90) days after Delivery. The warranties for Standard
will have no further obligations under any Quotation and/or                Software are set forth in the Software License Agreement.
Statement of Work (other than with respect to any software licenses
or confidentiality obligations), until such contamination is removed.      12.        Warranty Limitations.        Dali’s entire liability and
                                                                           Customer’s exclusive remedy whether in contract, tort or otherwise,
8.        Packaging, Shipment Dates for Materials. All Material            for any claim related to or arising out of breach of the warranty
shall be suitably packed for shipment. Dali may charge for packing         covering Product shall be correction of defects by repair,
and/or packaging including special documentation to comply with            replacement, re-performance of service or credit, at Dali’s
Customer requests. The Shipment Date for Material is estimated by          discretion. Refurbished Product may be used to repair or replace the
Dali but is not guaranteed by Dali. Customer, regardless of the            Product. Customer shall have no claim to Product which was
circumstances, will not hold Dali liable for any liabilities, penalties,   replaced or the components therein which were replaced. Dali has
or charges of any nature due to the late performance of any                no liability with respect to claims relating to or arising from the use
Shipment Date. Dali assumes no liability for any direct or                 of equipment not bearing Dali name. Dali does not warrant that the
liquidated damages during Shipment or Delivery of Material.                operation of the Product will be uninterrupted or error-free.
Material may be tendered in partial Shipments at Dali’s discretion.        Similarly, Dali does not warrant that the functions of the Product
In the event of Shipment delay requested by Customer or a delay            will meet Customer’s requirements or that the Product will operate
caused by lack of shipping instructions, Dali will store the subject       in combination with other products selected by Customer for its
Material at Customer’s risk and expense. Dali will invoice the             use. Dali assumes no liability with respect to (i) defects caused by
Customer at the full price for the Material including any additional       modification, repair, installation, operation or maintenance except
storage fee.                                                               as described in Dali’s documentation; or, (ii) negligent or other
9.         Title, Risk Of Loss And Insurance. Risk of loss, damage         improper use of the Product. All equipment and software not
and insurance responsibilities for the Products pass from Dali to          bearing Dali name, is supplied “AS IS” and Customer will look
Customer upon acceptance of Material by the shipping agent or              solely to the warranties and remedies, if any, provided by the
carrier. Title to Materials shall pass to Customer upon full payment.      equipment manufacturer thereof. In addition, Dali assumes no
Title to all Software shall remain with Dali or its licensors, but risk    liability for equipment or services furnished by Customer nor does
of loss, damage and insurance responsibilities shall pass to               this warranty cover any copy of or update to any user manual for
Customer at Dali’s shipping location. In the event title passes to         the Product. No agent, distributor, or representative is authorized to
Customer on Shipment under applicable law, for all Materials               make any warranties on behalf of Dali or to assume for Dali any
shipped, Dali shall retain a security interest in the Materials until      other liability in connection with any Product or Services. With
payment, in full, has been received by Dali for such Materials             respect to all purchases of Materials and/or Services from Dali by
delivered and Services performed. Customer shall execute any               Customer, the above warranty replaces all other warranties, express
instrument reasonably required for Dali’s protection of such               or implied, and all other obligations of Dali, including any
security interest. All Materials and Services are deemed accepted          warranties of merchantability and fitness for a particular purpose.
upon Delivery subject to the warranties provided in Section 12.            All other warranties are disclaimed and excluded by Dali.



                                                              TERMS AND CONDITIONS
                                                               DALI WIRELESS, INC.
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13.       Returns. Material may not be returned to Dali without          including but not limited to the Foreign Corrupt Practices Act and
prior authorization. Customer must contact Dali to obtain an             the Export Administration Act.
authorization number and return the Material to the location
designated by Dali with all transportation charges paid by               17.        Confidential Information. Customer will not disclose to
Customer. Dali may charge Customer certain fees for Material             any person or entity any information or data of Dali which is either
returned to Dali. Any Material returned to Dali without proper           marked as the confidential information or which should reasonably
authorization will be returned to Customer at Customer expense.          be understood as confidential in nature (“Confidential
                                                                         Information”). Notwithstanding the provisions herein, if Customer
14.    Disclaimer of Liability. DALI WILL NOT BE LIABLE                  receives Confidential Information Customer shall treat such
TO CUSTOMER OR ANY THIRD PARTY CLAIMING                                  Confidential Information as confidential, prohibit recopying and
THROUGH CUSTOMER FOR INJURIES OR DAMAGES TO                              use such Confidential Information only in connection with fulfilling
PERSONS OR PROPERTY RESULTING FROM ANY CAUSE                             its obligations under Customer’s Purchase Order. Customer will
WHATSOEVER, WITH THE EXCEPTION OF BODILY                                 return all Confidential Information to Dali upon completion of such
INJURIES OR DEATH CAUSED BY THE WILLFUL                                  obligations for its use, or upon the request of Dali. Customer
MISCONDUCT OR INTENTIONAL ACTS OF DALI. THIS                             recognizes and agrees that the unauthorized use or disclosure of the
LIMITATION APPLIES TO ALL MATERIAL PROVIDED AND                          Confidential Information would cause irreparable injury to Dali for
SERVICES PERFORMED DURING AND AFTER THE                                  which it would have no adequate remedy at law, and that any actual
WARRANTY PERIOD SET FORTH IN SECTION 11. IN NO                           or contemplated breach of this clause will entitle Dali to obtain
EVENT SHALL DALI BE LIABLE TO CUSTOMER FOR ANY                           immediate injunctive relief prohibiting such breach, in addition to
DAMAGES RESULTING FROM LOSS OF DATA, LOSS OF                             any other rights and remedies available to it. The obligations herein
USE OR LOSS OF REVENUE OR PROFIT AND DALI                                contained will expressly survive the final payment of any/or all
FURTHER DISCLAIMS ANY AND ALL LIABILITY FOR                              Customer Purchase Orders.
INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR
OTHER SIMILAR DAMAGES. IF ANY REMEDY                                     18.        Severability. If any provision of these Terms is held by a
HEREUNDER FAILS OF ITS ESSENTIAL PURPOSE, OR IN                          court, government agency or other legal authority of competent
ANY OTHER EVENT, DALI’S AGGREGATE LIABILITY                              jurisdiction to be invalid, illegal or unenforceable, such invalidity,
HEREUNDER SHALL NOT EXCEED (I) THE PURCHASE                              illegality or unenforceability shall not invalidate, void or render
PRICE OF THE AFFECTED MATERIALS DEPRECIATED                              unenforceable any other portion of these Terms but rather these
OVER A THREE YEAR PERIOD; OR (II) THE ACTUAL                             Terms shall be construed as if it did not contain the particular
AMOUNT PAID TO DALI FOR THE AFFECTED SERVICES.                           invalid, illegal or unenforceable provision or provisions, and the
                                                                         rights and obligations of the parties shall be construed and enforced
15.       Assignment. Dali may assign or pledge the payments due         accordingly.
(and the documentation supporting such payment obligations) from
Customer under this Purchase Order. Dali may assign all of its           19.         Force Majeure. Dali is not liable for failure or delay in
other rights and obligations by giving Customer written notice           fulfilling its obligations due to any causes beyond its reasonable
thereof but without being obligated to obtain Customer’s consent         control. In the event of any such delay, the Shipment Date or date
prior thereto. In the event of an assignment, Dali shall be              for performance of Services will be extended. Dali retains the right
discharged of any liability pursuant to those Purchase Orders which      to determine the allocation of its inventory of Materials among
have been assigned or delegated. Customer may not assign its             itself, its present and future customers and Customer. In the event
rights nor delegate its obligations under any or all of its Purchase     Dali partially fills Customer’s Purchase Order, Customer shall
Orders unless Dali’s written consent is obtained prior thereto and       make payments on Dali’s invoices during the period in which the
any such assignment or delegation without such consent shall be          delay is in effect for those Materials and/or Services delivered. If an
void.                                                                    event of force majeure prevents or delays Dali’s performance by
                                                                         more than six (6) months, Dali may terminate the applicable
16.       Compliance with Applicable Laws. Each party will               Purchase Order, with immediate effect.
comply with all applicable laws affecting the purchase and use of
Material. Each party agrees to maintain all registrations with           20.      Governing Language. The parties hereby agree that all
governmental agencies, commercial registries, chambers of                written documents between them be prepared in the English
commerce, or other offices which may be required under law in            language only and such language shall be the governing language.
order to properly conduct commercial business. Prior to the date         21.        Governing Law/Venue. The contract created by the
specified in the Quotation and/or Statement of Work for the              issuance of an Order Acknowledgement shall be construed,
performance of Service, Customer will (i) obtain and pay for all         interpreted and applied in accordance with the internal laws (but
governmental or third party consents, permits, approvals, licenses       not the law of conflicts) of the jurisdiction in which is located the
and public and private easements necessary for Dali’s unrestricted       main office of Dali affiliate which is authorized to issue the Order
access to any site or location needed for performance of the             Acknowledgement and any applicable law of that jurisdiction and
Services and delivery of the Material, and (ii) will notify Dali in      the United States of America. The parties agree that the United
advance of any requirements including all local laws, regulations,       Nations Convention on Contracts for the International Sale of
ordinances and the like to which Dali is or will be required to          Goods shall not apply to the sale of Materials hereunder. Each
comply in the rendering of Services and in the supplying of              party hereby irrevocably consents to the exclusive personal
Materials hereunder. When required, Customer will comply with            jurisdiction of any state court of general jurisdiction of the
United States laws applicable to the use, sale or license of Material,   jurisdiction in which is located the main office of Dali affiliate
                                                                         which is authorized to issue the Order Acknowledgment. If

                                                             TERMS AND CONDITIONS
                                                              DALI WIRELESS, INC.
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Customer institutes any legal proceeding in any other court, it shall   Services under Customer’s Purchase Order shall not affect each
assume all of Dali’s costs in connection therewith, including           party’s obligations and rights under these Terms, which by their
reasonable attorney’s fees. Registered or certified mail of any legal   nature, survive, notwithstanding such termination, cancellation,
process shall constitute lawful and valid service of process in any     delivery or performance.
such proceeding, suit or controversy.
                                                                        26.       Taxes. In addition to the Price for Material or Services
22.       Intellectual Property Rights. All drawings, data, designs,    paid by Customer, Customer will pay Dali the amount of all taxes,
tooling, equipment, procedures, engineering changes, inventions,        excises, or other governmental charges that Dali may be required to
trade secrets, copyrights, mask works, source code, object code,        pay with respect to the production, sale, license, or transportation of
patents, patent applications, know-how, computer and/or Product         any Material delivered hereunder, including the performance of any
software and all parts thereof, trademarks and all other information,   Services, except taxes on or measured by Dali’s net income. If
technical or otherwise which was developed, made or supplied by         Customer claims exemption from any taxes, Customer will provide
or for Dali in the production of any Materials or the performance of    Dali with documentation required by the taxing authority to support
any Services sold, rendered or licensed hereunder will be and           the exemption.
remain the sole property of Dali (or its licensors, if any). Customer
agrees not to reverse engineer or exceed the scope of any license       27.        Cancellation For Default. Dali may, upon written notice
for the Materials.                                                      to Customer, cancel any and/or all Customer Purchase Orders
                                                                        effective immediately if:
23.         Proprietary Rights Indemnification. If any Product
bearing Dali name, becomes the subject of a third party claim of                   27.1       Customer makes an assignment for the benefit
infringement of any valid United States copyright, trade secret or      of creditors, is unable to pay its debts as they become due; files a
patent, Dali shall defend Customer against such claim, Dali will        voluntary petition in bankruptcy; is adjudicated to be a bankrupt or
pay for any damages actually awarded to the claimant by a court of      an insolvent debtor, files a petition seeking for itself any
final jurisdiction, provided Customer gives Dali prompt written         reorganization; or consents to or acquiesces in the appointment of a
notice of all facts and circumstances necessary or desirable for a      trustee, receiver or liquidator;
proper defense of same, and Customer cooperates fully with Dali in                 27.2       any      proceeding        seeking     involuntary
the defense of such claim. Dali shall not be responsible for any        reorganization, or similar relief is filed against Customer which is
settlement made without Dali’s written consent. In the event of any     not dismissed within one (1) month after filing, or if any trustee,
infringement claim, Dali may discontinue the sale of the Product. If    receiver or liquidator of Customer or any substantial part of its
Dali elects to discontinue the sale of the Product, Customer may        business assets, or properties is appointed without Dali’s consent or
(i) continue using the same at its sole risk until an injunction or     acquiescence and such appointment is not vacated within one (1)
other court order terminating the continued use thereof has been        month after such appointment; (i) Customer ceases doing business
issued; it being understood that Dali may participate at its expense    as a going concern or it or its shareholders take any action looking
in the defence of any such action if such claim names Dali as a         to its dissolution or liquidation; or (ii) fails to perform any material
defendant; or (ii) return the Product to Dali, including any            obligations and such failure is not remedied within fifteen (15)
associated media, any printed material, and any “online” or             calendar days after notice has been given Customer; or
electronic documentation to Dali and receive a prorated refund of       (iii) Customer fails to pay for any Purchase Order in accordance
the Product purchase cost based on an established prorated period       with the invoice payment terms. Any cancellation pursuant to this
of three (3) years from the original Shipment Date. Dali shall have     clause will be in addition to and will not be exclusive of or
no liability for any claim of infringement based upon: (i) use of the   prejudicial to any other rights or remedies at law or in equity
Product in a manner other than for which it was intended; (ii) any      available to Dali.
infringement, or alleged infringement, of any patent or copyright
issued by any country other than the United States;                     28.        Interpretation. These Terms shall be interpreted as
(iii) modifications or changes made to the Product which are not        follows: (i) headings are for convenience only and do not affect
authorized by Dali; (iv) operation of the Product in combination        interpretation; (ii) the singular includes the plural and conversely;
with other products selected by Customer for its use; or (v) Dali’s     (iii) the word “including” shall be read as “including without
compliance with Customer’s designated designs, material usage or        limitation”; (iv) reference to a party means Dali and Customer
specification furnished by Customer, in which case Customer shall       exclusively; and (v) in the event of a conflict between Customer’s
defend, indemnify and hold Dali harmless against any chain of           Purchase Order or associated documents and these Terms, these
infringement of any copyright or patent. The foregoing states the       Terms including the Order Acknowledgement shall govern.
full liability of Dali arising out of infringement.                     29.       Precedence. Except for Sections 8, 10, 14, 16, 18, 19, 24,
24.       Software License. Dali licenses to Customer, Standard         and 25 of these Terms, which may not be altered or amended and
Software, when included with a Product sale or when purchased           shall control if in conflict with a Quotation, in the event of a
separately, in accordance with the terms of Software License            conflict between a Quotation and these Terms, the terms of the
Agreement.                                                              Quotation shall control.

25.      Survival of Terms. The termination or cancellation of          30.      Waiver. No waiver will be valid unless in writing signed
any Customer Purchase Order or any relationship created hereunder       by an authorized representative of Dali and no waiver granted will
between the parties or the delivery of Material or performance of       release Customer from subsequent strict compliance herewith.




                                                            TERMS AND CONDITIONS
                                                             DALI WIRELESS, INC.
                                                                     5
                                                                                                                                      20150225



Document Created: 2015-08-27 13:02:38
Document Modified: 2015-08-27 13:02:38

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