Exhibit 10.1B
CONFIDENTIAL TREATMENT REQUESTED
– CONFIDENTIAL PORTIONS OF THIS DOCUMENT HAVE BEEN REDACTED
AND HAVE BEEN SEPARATELY FILED WITH THE COMMISSION
AMENDMENT NO. 1 TO THE
PROFESSIONAL SERVICES AGREEMENT
This Amendment No. 1 to the
Professional Services Agreement (“Amendment
No. 1”) amends that certain Professional Services
Agreement dated July 30, 2007 (the “Agreement”) by
and between Office Depot, Inc., a Delaware corporation
(“Office Depot”), and SupportSoft, Inc., a Delaware
corporation (“SupportSoft”). This Amendment No. 1
is effective on the date last executed by the parties below
(“Amendment Effective Date”).
WHEREAS , SupportSoft and Office Depot wish to amend the
Agreement in order to modify certain terms currently set forth
therein.
NOW , THEREFORE , in consideration of the
mutual promises contained herein, SupportSoft and Office Depot
agree as follows:
1. Agreement Term.
The first sentence of
Section 5, “Term and Termination,” shall be
amended to state as follows:
“ 5. Term and
Termination . The term of this Agreement shall commence on
the Effective Date and continue through *** ;
provided , however, that if the National Launch (as defined
in Exhibit A to this Agreement) occurs after ***, the term of the
Agreement shall continue through *** (the “Initial
Term”).”
2. Loyalty.
A new Section 3.3 shall be
added to the Agreement, as follows:
“ 3.3. Loyalty .
During the Initial Term and any Renewal Term of the Agreement,
Office Depot shall use its commercially reasonable efforts to
launch, market, promote and make the Services available to
Customers in North America and online through
www.officedepot.com (or such other website as Office Depot
may deploy) in accordance with Exhibit A and shall not, directly or
indirectly, on its own behalf or through a third party, develop,
market, promote, solicit orders for, or offer for sale, services
systems or techniques that are similar to or compete with the
services, products, concepts, systems or techniques embodied in the
SupportSoft Services made available by SupportSoft to Office Depot
(“Competing Offering”) offered to Customers in North
America or online. A service or other offering will be deemed to be
a Competing Offering if a customer would buy the service or other
offering to achieve similar purposes as the SupportSoft Services or
if such service or other offering embodies systems or techniques
which are similar to the systems or techniques of the SupportSoft
Services; provided further, however, that a Competing Offering
specifically excludes any services that are performed without a
network connection, including, but not limited to, any services
that are performed by a technician who is physically dispatched to
a customer’s location for the purpose of completing any
service or services in which a customer’s technology or
hardware is physically shipped to a third party repair facility for
completing any service.”
3. Right of Bid. A new Section 3.4
shall be added to the Agreement, as follows:
“ 3.4. Right of Bid
for Customers Outside *** and Customers of *** Division .
During the Initial Term and any Renewal Term of the Agreement, if
Office Depot desires to offer services to Customers outside *** or
to Customers of Office Depot’s *** Division that are similar
or comparable to the Services provided by SupportSoft to Customers
in *** and online (herein “Expanded Offering”), then
Office Depot must offer SupportSoft the right to submit a proposal
regarding the performance of such Expanded Offering. If SupportSoft
elects to submit a proposal for such Expanded Offering, Office
Depot will negotiate with SupportSoft in good faith to expand this
Agreement to include such Expanded Offering; provided, however,
that SupportSoft acknowledges and agrees that Office Depot may, but
shall not be obligated to, then solicit other proposals from other
third parties for such Expanded Offering (“Additional
Proposals”) and may make its final determination regarding
such Expanded Offering based on the overall service levels, pricing
and customer need levels in order to ensure that
SupportSoft’s proposal is competitive. SupportSoft further
acknowledges and agrees that this Section 3.4 provides
SupportSoft with a right to bid on the Expanded Offering and does
not provide SupportSoft with a right of first refusal nor any
guarantee that SupportSoft will be awarded the Expanded Offering
business. Promptly upon receipt of an Additional Proposal for the
Expanded Offering that Office Depot intends to actively consider,
and prior to Office Depot engaging in any discussions with the
offeror (the “Other Interested Party”) regarding such
Additional Proposal, Office Depot will promptly provide SupportSoft
with a written summary of the Additional Proposal in reasonably
sufficient detail, and to the extent Office Depot is not otherwise
bound by any confidentiality, to enable SupportSoft to evaluate and
respond to such Additional Proposal. SupportSoft will review the
written description for the Additional Proposal and will respond in
writing to Office Depot within fifteen (15) days with either a
comparable offering for such Expanded Offering, or confirmation
that it will not pursue such an offering. If SupportSoft fails to
respond in such fifteen-day period, or it confirms that it will not
provide a proposal for a comparable offering, or if SupportSoft and
Office Depot are not able to reach agreement on such Expanded
Offering within sixty (60) days after receipt of
SupportSoft’s proposal or if Office Depot determines, in its
discretion, to not pursue SupportSoft’s proposal, SupportSoft
acknowledges and agrees that Office Depot may enter into a
contractual relationship or accept the Additional Proposal for such
Expanded Offering from another person or entity. Notwithstanding
the foregoing, SupportSoft acknowledges and agrees that Office
Depot will not be obligated to forward or disclose any information
in connection with any Additional Proposal or Expanded Offering
that Office Depot does not intend to pursue or
consider.”
*** CONFIDENTIAL MATERIAL
REDACTED AND SEPARATELY FILED WITH THE COMMISSION
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4. Compliance with Regulations and Policies
. The first sentence of Section 11 of the Agreement,
“Compliance with Regulations and Policies,” shall be
amended to delete the words “at SupportSoft premises”
and insert the word “remotely” in place of the deleted
text, to read as follows:
“ 11. Compliance with
Regulations and Policies . Unless otherwise set forth in
the applicable SOW, SupportSoft shall perform the Services remotely
or on site at Office Depot’s premises, and shall be
responsible for providing all equipment and supplies necessary to
perform the Services.”
5. Limitation of Liability .
Section 16, “Limitation of Liability,” shall be
deleted in its entirety and replaced with a new Section 16,
“Limitation of Liability,” as follows:
“ 16. Limitation of
Liability . EXCEPT FOR THE PARTIES’ INDEMNIFICATION
OBLIGATIONS IN SECTIONS 14 AND 15 ABOVE, OFFICE DEPOT’S
BREACH OF SECTIONS 3.3 OR 3.4, OR EITHER PARTY’S WILLFUL, OR
KNOWING BREACH OF SECTION 4, IN NO EVENT WILL EITHER PARTY BE
LIABLE TO THE OTHER PARTY FOR ANY INDIRECT, SPECIAL, INCIDENTAL, OR
CONSEQUENTIAL DAMAGES, WHETHER BASED ON CONTRACT, TORT, OR ANY
OTHER LEGAL THEORY, INCLUDING, WITHOUT LIMITATION, LOSS OF DATA OR
ITS USE, LOSS OF PROFITS, LOSS OF BUSINESS, OR OTHER ECONOMIC
DAMAGES, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH LOSS OR DAMAGE.
REGARDLESS OF THE FORM OF ACTION, OTHER THAN AN ACTION FOR PAYMENT
OF AMOUNTS DUE UNDER THE AGREEMENT, THE PARTIES’
INDEMNIFICATION OBLIGATIONS IN SECTIONS 14 AND 15 ABOVE, OFFICE
DEPOT’S BREACH OF SECTIONS 3.3 OR 3.4, AND EITHER
PARTY’S WILLFUL OR KNOWING BREACH OF SECTION 4, THE TOTAL
LIABILITY OF EITHER PARTY UNDER THIS AGREEMENT SHALL NOT EXCEED THE
TOTAL AMOUNT PAID TO SUPPORTSOFT FOR SERVICES SATISFACTORILY
PERFORMED UNDER THIS AGREEMENT AS OF THE DATE OF SUCH
CLAIM.”
6. Governing Law . The second sentence of
Section 18.7, “Governing Law,” shall be amended as
set forth below, and the existing Section 18.7 shall be
deleted in its entirety and replaced with a new Section 18.7,
“Governing Law,” as follows:
“ 18.7. Governing
Law . This Agreement shall be interpreted in accordance with
New York law. Each Party acknowledges that any actual or threatened
breach of Sections 3.3, 3.4, 4 or 9 may cause the other Party
irreparable harm for which money damages may not be an adequate
remedy, and that injunctive relief may be an appropriate remedy for
such breach. Each party will comply with all applicable export and
import control laws and regulations in the use and distribution of
the Software, Services and any other SupportSoft
Technology.”
7. Program Description . Exhibit A to the
Agreement, “Remote Service Program Description,” shall
be amended as set forth below:
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a.
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The last
sentence of Exhibit A, Section 4, “ Timeline and
Milestones ,” shall be amended to amend the number of
Office Depot stores to 1238 and to delete the words “on or
before ***,” to read as follows:
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“National Launch: The program
will be deployed nationally to all 1238 Office Depot stores and
online.”
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b.
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The last
sentence of Exhibit A, Section 7, “ Program
Management; Forecasting and Reporting ,” shall be amended
to insert the words “(meaning for Office Depot, a senior
executive of North America retail; and for SupportSoft, the
senior-most executive of the Consumer business unit or the Chief
Executive Officer)” to read as follows:
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“Quarterly Performance
Reviews: The Parties agree that appropriate senior-level
representatives of each Party (meaning for Office Depot, a senior
executive of North America retail; and for SupportSoft, the
senior-most executive of the Consumer business unit or the Chief
Executive Officer) shall meet at least once per quarter during the
Term to review the overall progress and status of performance under
the Agreement including, without limitation, the marketing and
advertising program and any feedback and suggestions for
improvement.”
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c.
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A new
Section 8, “ Service Delivery Management System
,” shall be added to Exhibit A as set forth below:
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“8. Service Delivery
Management System
SupportSoft agrees to make available
its Service Delivery Management System (SDMS) platform to Office
Depot, through which SupportSoft manages remote delivery of
services as contemplated in this Remote Service Program
Specification.
*** CONFIDENTIAL MATERIAL
REDACTED AND SEPARATELY FILED WITH THE COMMISSION
***
License to Use SDMS
. Subject to the terms of this
Agreement, SupportSoft grants to Office Depot a nonexclusive,
nontransferable, nonsublicensable, limited license for use of the
Service Delivery Management System Service (“SDMS
Service”) by Office Depot and on behalf of its third party
partners whose product and/or service SKUs have been input into the
SDMS Service by SupportSoft. Office Depot shall not (and shall not
allow any third party to): (i) decompile, disassemble, or
otherwise reverse engineer or attempt to reconstruct or discover
any source code, underlying ideas, or interoperability interfaces
of the SDMS Service by any means whatsoever; (ii) remove any
product identification, copyright or other notices;
(iii) provide, lease, lend, use for timesharing, service
bureau or hosting purposes or otherwise use the SDMS Service to or
for the benefit of third parties, except as expressly authorized
herein; (iv) reproduce the SDMS Service or any component
thereof; (v) modify, adapt, alter, translate or incorporate
into or with other software, or create a derivative work of, any
part of the SDMS Service, nor any service or product that is
similar to or a substitute in whole or in part for the SDMS
Service; (vi) disclose information or analysis (including,
without limitation, benchmarks) regarding the quality or
performance of the SDMS Service (except as required by law or court
order); or (vii) resell, sublicense, distribute, or transfer
the SDMS Service or any component thereof to any third party
(including, without limitation, sharing Office Depot’s
username(s) and password(s) for the SDMS Service with any third
party). Office Depot represents and warrants that it will use the
SDMS Service for its internal business purposes only. Office Depot,
and not SupportSoft, shall have sole responsibility for the
accuracy, quality, integrity, legality, reliability,
appropriateness, and intellectual property ownership or right to
use of all content and data that Office Depot provides to
SupportSoft associated with Office Depot’s use of the SDMS
Service.
SDMS Service Fees
. SupportSoft shall charge Office
Depot a flat fee (calculated based on the table below) for each
work order that is fully completed in the SDMS. Completion shall be
measured by the allocation of a Work Order number. Delivered work
orders will be billed regardless of whether the corresponding
service is cancelled or returned by the end user. The pricing
schedule outlined below will apply to all Work Orders generated in
each calendar year. For the avoidance of doubt, on
January 1 st of
each year during the term of this Agreement, the cumulative number
of Work Orders, for purposes of calculating prices per the table
below, shall be reset to zero (0).
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Cumulative Number of Work Orders
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Price Per
Work Order
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*** - ***
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$
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*
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**
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*** - ***
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$
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*
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**
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*** - ***
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$
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*
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**
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*** +
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$
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*
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**
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SupportSoft shall invoice Office
Depot on a quarterly basis for all work orders delivered in the
prior calendar quarter. Office Depot shall pay SupportSoft’s
invoices within *** (***) days of the date of each SupportSoft
invoice.
SDMS Program Support
. During each calendar quarter,
Office Depot may request up to *** ( *** ) hours
of program support to be provided by SupportSoft. Program support
may consist of further customizations to the SDMS and/or the
management of SKUs in the SDMS and in each instance the nature and
duration of the support effort shall be reflected in a work order
or other writing agreed to by the parties. Program support days
must be used within the corresponding quarter or else they will
expire; for the avoidance of doubt, Office Depot may not roll
program support days forward into subsequent quarters. If Office
Depot requires additional program support, it may obtain such
support from SupportSoft at a daily (8-hour) rate of USD $
*** per day.
SDMS Service Provisioning
Obligations .
SupportSoft’s obligations in connection with the provisioning
of the SDMS Service shall be limited to the following
activities:
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1.
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Ongoing
monitoring of server, network and database uptime
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2.
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Periodic
backups of database, retained for one year on tape
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3.
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Firewall and
load balancer configuration and monitoring, as needed
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4.
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Virus
detection & removal
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5.
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FTP push of web
logs (upon request, not more frequently than one (1) time per
day subject to a file size limitation of 1 GB)
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6.
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Access to
Internet Information Services (IIS) logs for up to 1 week,
upon request
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7.
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Monitoring of
application logs”
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*** CONFIDENTIAL MATERIAL
REDACTED AND SEPARATELY FILED WITH THE COMMISSION
***
8. Pricing Exhibit F
. A new Exhibit F-1,
“Pricing,” attached hereto and incorporated herein by
reference, shall supersede Exhibit F to the Agreement. As of the
Amendment Effective Date, Exhibit F shall be terminated and shall
have no force or effect.
9. Press Release
. The parties agree to work in good
faith to issue a mutually agreeable press release within sixty
(60) days of the Amendment Effective Date generally describing
the nature of the parties’ relationship.
10. Interpretation
. If any provision in this Amendment
No. 1 conflicts with any provision in the Agreement, the
provision in this Amendment No. 1 will control and, to the
extent necessary, supersede the conflicting provision in the
Agreement. All other terms and conditions of the Agreement and
shall remain in full force and effect. Any different or additional
terms of any purchase order, confirmation, or similar form shall
have no force or effect unless signed by authorized representatives
of both parties. Any defined terms that have not been defined in
this Amendment No. 1 shall have the meaning ascribed to them
in the Agreement.
ACCEPTED AND AGREED TO BY THE
AUTHORIZED REPRESENTATIVE OF EACH PARTY: