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Exhibit 10.15
AMENDMENT 2
Shiva/Nortel Agreement
This Second Amendment to the Agreement dated as of 15 May 1995 (the
"Agreement') is made as of the 15th day of October, 1996, by and between
Northern Telecom Limited ("Nortel"), on behalf of itself and its affiliates
(as defined in the Agreement), a Canadian corporation having its principal
place of business 8200 Dixie Road, Suite 100, Brampton, Ontario, Canada, and
Shiva Corporation ("Shiva"), a Massachusetts corporation having its
principal place of business at 28 Crosby Drive, Bedford, Massachusetts,
01730, USA.
WHEREAS, Nortel and Shiva want to amend the Agreement to reflect the
following changes to the original Agreement;
OEM AccessPort**************** Amendment
A ************************* of Shiva's current Shiva AccessPort*********
************* product (OEM AccessPort************** or *****************
*******) will be added to the Agreement. *********** will include ******
******* and ********** of the AccessPort to ********* in the ***********
******** and specified *******************. Nortel will have the right to
manufacture the Rapport*********** pursuant to the manufacturing rights set
forth in this Amendment.
NOW, THEREFORE, the parties agree to amend the Agreement as follows,
1.0 Definitions
1.1 New Definition. In addition to the terms defined in the Agreement,
each of the following additional terms shall have the meaning ascribed to it
below:
1.1.1 OEM AccessPort or Rapport *********** shall mean the *********
Shiva AccessPort***************** product as described in Exhibit R and
Exhibit S;
2.0 ****************** of the OEM AccessPort
2.1 Shiva's Obligations. Shiva will ********* the OEM AccessPort
********************************, as described in the Nortel AccessPort
**************** as set forth in Exhibit R and Exhibit S.
2.2 Nortel's Obligations. Nortel will ****** the ******* contemplated in
Section 2.1 and ************ for the OEM AccessPort as set forth in Exhibit
R.
2.3 Ownership of the OEM AccessPort. Intellectual property rights
associated with ************* features that ************** using *********-
provided tool kits shall be owned by ********.
Intellectual property rights associated with *************** features that
********** using ******* software and/or hardware shall be owned by ********
with **************************************** of such features determined by
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agreement between the parties. ******* hereby grants, with a full reservation
of rights, to ******* a worldwide, ************, ************** perpetual
license of such intellectual property rights to use, modify, sublicense,
support, copy and distribute through multiple tiers of distribution,
including ********* distributors, these intellectual property rights solely
as they are incorporated into the OEM AccessPort. ********* hereby grants
back to ******* a **********, worldwide, ***********, perpetual license
to such modifications. ***************************************************
**************************************************************************
*************************OEM AccessPort.
Intellectual property rights associated with ****** developed modifications
using ******* developed software and/or hardware, including, but not limited
to, ******************** and the ********************************** product,
(**** will be reviewed and determined between the parties), as described in
Exhibit S, shall be owned by ***** with ************************************
of such features to ****** to be determined by agreement between the parties.
****** hereby grants to ****** a worldwide, *************, ****************
perpetual license of such intellectual property rights to use, modify, create
derivative works, support, and copy these intellectual property rights solely
as they are incorporated into the Shiva AccessPort. ***** hereby grants back
to ******* a **************, worldwide, *************, perpetual licwense to
modifications.
3.0 Manufacturing Rights
3.1 License Grant. Shiva hereby grants Nortel the option to manufacture
the Rapport*************** at anytime, within the duration of the contract,
according to Shiva's design specifications.
3.2 Shiva's Obligations. If Nortel elects to manufacture the OEM AccessPort
subject to the terms of this Amendment, Shiva shall provide reasonable
manufacturing transfer and consulting assistance as part of the license fee
described in Section 3.3. Reasonable manufacturing transfer and consulting
assistance shall include the following:
(1) **********************************
(2) *************************
(3) ****************************************
(4) *********************************************
(5) **************************************
(6) *********************************
(7) ***************************
(8) *****************************************
(9) *********************************
(10) ******************************************
(11) ******************************************************************
**********
3.3 Nortel's Obligations. Nortel shall pay ***************************
********** to Shiva for rights to manufacture the OEM AccessPort and for
reasonable consultation and training to assist Nortel with their initial
manufacturing production run, as well as reasonable ongoing manufacturing
support. Nortel will share with Shiva, product and quality improvement
ideas as part of the ongoing process, as referenced in items 3.5 and 3.6, as
well as include a comment such as "Access By Shiva" (to be determined by
Shiva) in all ********** documentation, to *******************************
**********************************. In addition Nortel shall
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pay Shiva a royalty, as defined in the royalty structure section 4.0 below,
for the **************** to Nortel *************** directly, or via Nortel's
******************************.
3.4 Shiva Manufacturing Option. If Nortel is ********************** the
Shiva AccessPort *********, the *******************************************
license fee shall **********. With Shiva's agreement, Nortel shall be
*********************** the AccessPort for Shiva ************ and Shiva's
********************************. Shiva has the right to ********** from ***
*****************************.
3.5 Shiva Manufacturing Consulting Support. Shiva will provide Nortel with
reasonable consultation and training to assist Nortel with their initial
manufacturing product run at Nortel as well as reasonable ongoing
manufacturing support. Nortel will share with Shiva, product and quality
improvement ideas as part of the ongoing process.
Reasonable consultation, training and ongoing manufacturing support are
defined as follows:
A total of ****************** of support will be provided to Nortel by
Shiva ******************************************************************* to
assist Nortel with their initial manufacturing production run, and will be
effective with the signing of this Amendment. *****************************
****************************************************************************.
This *************** ongoing support related to changes resulting from the
ECO/ECR process as well as Shiva's quarterly Manufacturing/Design review
meetings.
3.6 Qualification Support. Nortel and Shiva agree to discuss proposed
design and/or component changes, as well as share component sourcing
information, on an ongoing basis. Nortel will be proactively included in
Shiva's ECO/ECR process as well as Shiva's quarterly Manufacturing/Design
review meetings. Major design discontinuities will require agreement
between the parties and costs associated with the design discontinuities
will be determined by the parties.
Shiva will ********************************************************
(as listed in the document "Functional Specification for the Nortel
AccessPort") for the Rapport*************. Nortel will not generally be
responsible for the associated costs. In those countries where *********
*************************************requires incremental cost over and
above that incurred by*******for the AccessPort********will review those
costs with*******and decide whether or not to*****************************
*******************************will incur the cost of******************
*************************.
4.0 Royalty Structure
Nortel shall pay Shiva a royalty equivalent to a ****************** of ***
************* of the ******* price ************ of the product for volumes
of ***************** units or greater, over a ****************** period,
or a ********************************** of the *************** price of the
product for volumes less than ************************ units, over a ******
******* period. In each case, Nortel will pay a ******* of a *************
******** royalty for each product within the *********** of the Agreement,
or for the ********************* units (whichever comes first), if the
*************** or *************** royalty is ************************.
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******** After the ********, or ****************** units, **************
************* royalty shall apply with a************************* in the
********** and a ************************** in the *********************.
Royalties for ****************** will be negotiated between the parties. A
three months rolling forecast will be provided on a monthly basis (same as
with **********) as well as a first year forecast for business planning
purposes, independent of ***************** direction. Prior to Nortel
manufacturing, Nortel will work with Shiva to purchase product/components
directly from current Shiva suppliers, with the option to source from Nortel
vendors of choice, with Shiva's prior agreement. In addition, Nortel and
Shiva will discuss the options of sharing costs and sourcing of metal/
plastics components of tooling. Any component or overhead cost reductions
will be passed through to Nortel.
Royalties for Nortel's ********************* will be calculated ***********
**********************************************************, e.g. royalties
owed would be calculated *************************************************
**************************************************************************
*****************************.
5.0 Annual *************, Maintenance and Software Support
5.1 Maintenance and Support
Shiva will provide ******** level support to Nortel, for the ************,
similar to that described in Section 7 and Exhibit H of the Shiva/Nortel
Agreement of May 15, 1995 for the ******* product. Nortel agrees to pay
Shiva ********************************************* for maintenance and
support of the *********, as described in Section 7 and Exhibit H of the
Shiva/Nortel Agreement of May 15, 1995 for the ********* product, for the
duration of this Agreement. During the term of any period for which Nortel
has paid ************************************************, Shiva agrees to
provide all Shiva software upgrades to Nortel ******************************
*******************.
5.2 **************************
Shiva will provide Nortel with a ********* of **************************
*************** and *****************************************************.
Nortel agrees to pay Shiva ***********************************************
*********************************. Nortel will be the **************** of
Nortel ************ software to **************** (e.g., alpha trial, beta
trial, early adopter trial, release version) *****************************
****************************************************************************
****************************************************************************
*****************************************************************************
****************************************************************************
***************************************.
6.0 General Changes to Agreement.
6.1 Exhibit R. Exhibit R is added to the Agreement.
Exhibit S. Exhibit S is added to the Agreement
6.2 Other Terms. Except as set forth above, all other terms and conditions
of the Agreement remain unchanged.]
IN WITNESS of this Second Amendment to the Agreement the parties have
executed this document on the dates set forth below.
SHIVA CORPORATION NORTHERN TELECOM LIMITED
Signature:/s/ Cynthia M. Deysher Signature:/s/ John Ryan
---------------------- ---------------------
Name: Cynthia M. Deysher Name: John Ryan
Title: Senior Vice President, Title: Vice President/General Manager,
Finance and Administration, Multimedia and Internet Solutions
and CFO Enterprise Networks
Signature:/s/ David Archibald
-------------------
Name: David Archibald
Title: VP and Deputy General Counsel
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Exhibit R
OEM AccessPort Project Plan
NORTEL AccessPort Project Plan
Rapport ************
Revision History
Version Author Date Comments
1.2 John Terzakis 10/15/96 Added review comments
1.1 John Terzakis 09/06/96 Added review comments
1.0 John Terzakis 08/28/96 Draft
Table of Contents
1. Executive Summary
2. Scope and Target Audience 4
3. Related Documents 4
4. Deliverables 5
5. Engineering and Documentation 5
5.1 Hardware 5
5.2 Standards and Approvals 5
5.3 Firmware 5
5.4 Software 6
5.5 Documentation and Online Help 6
5.6 Quality Assurance and Testing 6
6. Manufacturing 6
7. Support and Service 6
8. Training 7
9. Marketing 7
10. Estimated Costs 7
10.1 Hardware 7
10.2 Standards and Approvals 7
10.3 Firmware 7
10.4 Software 8
10.5 Documentation and Online Help 8
10.6 Quality Assurance 8
10.7 Project Management 9
10.8 Manufacturing Costs 9
10.9 Overall Cost - Phase I 10
11. Schedule of Deliverables 10
12. Staffing 11
13. Nortel Dependencies 11
14. Shiva Dependencies 11
15. Risks and Issues 12
Executive Summary
The Rapport *********** is a family of ************************************
******************************************************************The first
release of the Rapport *********** supports the following major features:
*************************************************************************
**********************
*************************
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********************
**********************************************
***************************************************
****************************************
**********************************
*********************************************************
****************************************************************
*****************************************************************
********
The Rapport *********** family is based on the Shiva AccessPort product line.
All labels, software and other markings will be ******************.
At initial release, the Rapport *********** will be available ******
****************************. ***************** will be distributed in
************************************* will be distributed in ***************
*****. The software and documentation will be on 3.5" diskettes (subsequent
releases may be on CD-ROM). In addition to the system unit and diskettes,
the shipping box will also include ************************************
*****************. The Reference Guide will be packaged external to the
shipping box. It may be included inside the box in a subsequent release,
space permitting.
Scope and Target Audience
This document is intended for use by Shiva and Nortel engineering,
documentation/information engineering, support, marketing, and
manufacturing/operations departments for the development and planning of the
Nortel Rapport *******************.
This document does not provide detailed descriptions of the features of the
Rapport *********** family, nor does it provide a full functional and
technical specification of the product family. For a complete functional
and technical specification, see the related document ***********
****************************************.
This document does include the following information:
An explanation of the primary features of the Rapport *********** product
family
Shiva and Nortel deliverables for the project
Manpower and cost estimates for the Nortel modifications
A schedule for the project
Related Documents
**********************************************************************
****************************
***************************************************************************
*************************************
****************************************************************************
****************************
***************************************************************************
***************************************************
Deliverables
The deliverables for the Rapport *********** are listed below.
***********************************
************
************
*****************************************
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*****************************************
**************************************
********************************************
**************************************
**********************
*************
****************
***************
*****************
**********************************************************
***************************************
************************************
**********************
***********************
*****
**********
Note: All software, firmware, documentation, labels and other markings will
be **************.
Engineering and Documentation
This section describes the modifications required to the standard Shiva
AccessPort product to create a Nortel Rapport *********** product.
Hardware
The hardware components for the Shiva AccessPort include:
***
*************************************
*********
******
No modifications are presently required for ***********************. Shiva
will obtain **********************************************************
********. ****************************************************** Shiva or
AccessPort **************************** Nortel or Rapport ***********.
Standards and Approvals
Shiva has obtained (and is in the process of obtaining) various ************
*************** approvals for the AccessPort product. ***** will submit the
required paperwork to the same regulatory agencies to obtain approvals for
the Nortel Rapport *******************. A list of the required approvals
can be found in the document ****************************************
***********. The costs of these approvals are ***********************
*********************. Approvals for ************* will have **************.
Firmware
******************************** AccessPort firmware **********. The
following items will have to be modified:
************
************
*************
**********************************************. For a complete list of
firmware features, consult the document *********************************
******************.
Software
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The standard software components for the Shiva AccessPort include:
*********************************************************
******************************************
*************************************************************************
*******
***************************************************
The parts of the software that will require modification for Nortel include:
*****
******************************
*********************************************
*********************************
*************************
*************
In addition, labels on diskettes and/or CD-ROMs will be ******************.
A detailed description of these software components and the specific
modifications required to them appear in the document ***********
****************************************.
Documentation and Online Help
The standard components of the Shiva AccessPort documentation and online help
include:
**********************************************************************
*******
***************************
******************************
*******************************************************************
********************
************************************
****************************************************
Shiva will *************************** with the ******************
**********. Shiva will provide Nortel with the release notes, readme
documents, Reference Guide and Quick Start Guide so that Nortel can ********
****************. The *********************** will not be available for the
first release. Nortel may produce its own version based on the Shiva
AccessPort ******.
All software and documentation will be on 3.5" diskettes for Nortel.
Quality Assurance and Testing
Once the Nortel ********************** have been made to the software and
firmware, the entire product will be subjected to ****************** by the
*****************************. In addition, the online help files and
documentation will be checked for **********************.
It is anticipated that there will be close collaboration between the Nortel
and Shiva Quality Assurance groups during the entire development process.
****************************************************************************
Rapport ****************************************************.
Manufacturing
***** will manufacture the initial production units of the Rapport ****
*****************. It is anticipated that *******************************
manufacture of the product. ***** will provide *******************
****************** to manufacture the product, as specified in the contract
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Support and Service
****** will provide level 1 and level 2 support for the Rapport ***********.
***** will provide level 3 support. Details and cost of this support and
service are specified in the contract.
Training
******************************************************Rapport*************
and the AccessPort******************************************************
********************AccessPort**************************. Any additional
training requirements (on site at Nortel, instructor notes, etc.) will have
to be negotiated. *****************************************************
********************************************************************
***************************.
Marketing
Project-specific marketing tasks will be developed in the context of an
overall Nortel marketing plan developed through the close collaboration of
the Shiva and Nortel marketing teams. These tasks will not be tracked as
part of the project.
However, the Nortel marketing team is expected to provide information and
updates on any requirements for marketing activities (e.g., equipment for
trade shows, photo shoots, demonstration purposes, etc.) as soon as possible
to the Nortel and Shiva project leaders. This ensures proper planning and
assists in determining the existence of any schedule conflicts.
Estimated Costs
The estimated manpower and costs for the tasks associated with the*******
**********************AccessPort appear in the following sections. These
are for reference purposes only and *************************************
*******************************************************.
Hardware
All changes to the AccessPort hardware required for *************** will be
handled by *******************. ************************** are presently
anticipated.
Standards and Approvals
***** will submit the necessary paperwork to obtain agency approvals (as
listed in the document **************************************** AccessPort")
for the Rapport ***********.
Task Estimated Cost
(man-weeks)
Engineering support for agency approvals *
# of man-weeks *
TOTAL *****
Firmware
The Shiva AccessPort firmware ****************************************.
Task Estimated Cost
(man-weeks)
***** Firmware *
# of man-weeks *
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EXCHANGE COMMISSION. ASTERISKS DENOTE SUCH OMISSIONS.
TOTAL *****
Software
The *********************************************************************
***************************************************************************
***************************** in the Shiva AccessPort software *******
************************************ will be **************.
Task Estimated Cost
(man-weeks)
Modifications to ************** *
Modifications to ************************** *
Modifications to ****************** *
# of man-weeks *
TOTAL ****
NOTE: The initial release of the Rapport *********************************
******************************. When a Shiva AccessPort module is
******************************************************************** will be
required to *******************.
Documentation and Online Help
**************** the online help files with the appropriate ******
**********. All other documentation will be *****************. Shiva will
provide Nortel with those documents.
Task Estimated Cost
(man-weeks)
********* Customization & Testing *
Project Management *
# of man-weeks *
TOTAL *****
NOTE: The initial release of the Rapport *********************************
******************************. When a Shiva AccessPort module is
*************************************************************************
****** will be required to *******************.
Quality Assurance
In addition to the development testing of each of the components of the
project, ******************************** is responsible for testing the
Rapport *********** product as a whole, including *************************
*****************. These tests will be run based upon the standard test
plans used for the base Shiva product line.
The Quality Assurance cost estimate does not include ************************
*************************************************************
Task Estimated Cost
(man-weeks)
Design Test Plan *
Execute Test Plan *
# of man-weeks *
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TOTAL *****
Project Management
The Rapport *********** project will require ********************************
************************************************* has overall project
responsibility: *****************************************************
***********************************************************************
**********************************************************************
********************************************. The elapsed time for the
project is *******. Project management will be required at about ********
for most of the project.
Description Estimated Cost
(man-weeks)
Project Management *
# of man-weeks *
TOTAL *****
Manufacturing Costs
The Rapport *********** will require **********************************
**************************************************************************
(************************. In addition, manufacturing support will be
required for *******************************************************
***********************************.
Task Estimated Cost
(man-weeks)
Manufacturing Support ******************** *
# of man-weeks *
TOTAL *****
NOTE: This estimate does not include *************************************
**********************************************. ********************.
Overall Cost - Phase I
The total non-reoccurring engineering and additional costs for the first
phase of project are as follows:
Task Estimated Cost
(dollars)
Hardware **
Standards and Approvals *****
Firmware *****
Software *****
Documentation & Online Help *****
Quality Assurance *****
Project Management *****
Manufacturing costs *****
TOTAL *****
Schedule of Deliverables
The initial milestones for the Rapport *********** project are shown below.
Milestone Who Date
Preliminary ************************************ ***** *******
Preliminary ************************************************ ***** *******
********** AccessPort ************************** ***** *******
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********** AccessPort ************************** ***** *******
Shiva AccessPort *** ***** *******
********** AccessPort *********************** ***** ******
Nortel *********************************************** ****** ******
Preliminary ********************** ***** ******
Preliminary ********************************** ***** ******
Nortel ************************** ***** ********
Nortel ************************** ***** ********
Nortel *********************************** ***** ********
Nortel ************************ ****** ********
Nortel *************************** ****** ********
Nortel AccessPort *** ***** ********
Nortel AccessPort *** ***** ********
Nortel AccessPort ************************* ***** ********
Staffing
Shiva
*********************************************
**********************
**********************
**********************
***********************************************
****************************************************
*****************************************************
****************************************************
Nortel
***********************************************
****************************
************************************************
*************************************************
**************************
******************************
Nortel Dependencies
The following is a list of Nortel dependencies that affect the schedule.
*****************************************************************************
*****
*************************************************
*****************************************
**************************************************
*************************************************************
********************************************
***********************************************
Shiva Dependencies
The following is a list of Shiva dependencies that affect the schedule.
****************************************************
Risks and Issues
The following will be a list of risks and open issues that affect the
schedule.
Risks:
** ********* in the Shiva AccessPort ************************************
****** the Rapport ********************.
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Issues:
1. ****** requirements ********************************** of the Rapport
****
******.
2. Any change in the ******************** for the Rapport *****************
*******************.
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Exhibit S
Nortel OEM Requirements
Nortel will ************************** the Shiva AccessPort, similar to the
Rapport ******************************. Shiva shall, on an ongoing basis,
**************************************************************************
***************, for the annual *************************.
Shiva shall certify Nortel's *********** based on the Nortel priority
certification list as used for the Rapport *********, for those countries
which both Shiva and Nortel intend to sell their respective products.
Nortel will only be responsible for Nortel specific certification in those
countries where Nortel intends to sell the *********** and which Shiva has
no intention of selling their AccessPort. If Nortel manufactures the ****
****** and re-certification is required in countries where Nortel intends to
sell, or is selling, the ***********, then Nortel will be responsible for
Nortel specific certification.
***** shall provide ****** with a project plan for each release of the
AccessPort software and/or hardware (**************************.
Nortel shall have the option to ******************************************
**************************************************. An annual fee *******
********** and is *******************************************************
***********************.
Nortel Specific (Proprietary) Features
It is Nortel's intention to **********************************************
*************************************************. Nortel and Shiva will
determine which development approach is most appropriate for delivering the
requested features *******************************************************
*****************************************************************. These
functions will include, but are not limited to, the following:
************************
***********************
**************************************
**********************************
********************
*******************************
Notes: 1. ***************************************** will be sold as part
of the Nortel Rapport *****.
The project plan for the ***************************** product will be
developed by **************** and will be finalized ***********************
**********************************************************************
************************************************************************
***********************************.