Exhibit 10.13
License and Distribution
Agreement
This License and Distribution
Agreement is entered into by and between OPNET
Technologies, Inc., a Delaware corporation with principal
offices located at 7255 Woodmont Avenue, Bethesda, Maryland 20814
(“OPNET”), and RadView Software, Ltd., an Israeli
corporation with corporate headquarters located at 7 New England
Executive Park, Burlington, Massachusetts 01803
(“RadView”), effective this 7 th day of
December 2005 (the “Effective Date”).
In consideration of the premises and
mutual covenants contained herein, and other valuable
consideration, the receipt and adequacy of which is hereby
acknowledged by each party, the parties hereby agree as
follows:
1.
Scope of
Agreement.
This Agreement shall set forth the
terms and conditions pursuant to which (a) RadView shall
deliver, and OPNET shall be licensed to use and exploit, the
RadView proprietary Source Materials to the Software, and
(b) RadView shall provide certain professional services to
OPNET in connection with and in support of OPNET’s license
rights with respect to the Source Materials.
2.
Definitions.
2.1
Derivative Product(s).
The term
“Derivative Product(s)” shall refer to any and all
(a) new software applications or documentation, or
(b) modifications, enhancements, improvements, updates,
re-branding, and derivative works of the Software, in either case
developed by OPNET from the Source Materials.
2.2
Software. The term “Software”
shall refer to the two RadView proprietary applications, WebLOAD
and WebFT, identified in Exhibit A hereto.
2.3
Source Materials.
The term “Source
Materials” shall mean: (i) source code, including
related reference files, resource files, configuration files, and
“include” files necessary to compile the source code
into machine-executable form used to run the Software or used
in the preparation of the Software or its enabling keys;
(ii) any associated files necessary to run and exercise all
functions of the Software; (iii) a listing and description of
all known product defects and bugs current and open as of the
Effective Date, and all closed bugs associated with the source
code; (iv) instructions, notes, references, programs and other
materials (excluding any third party software programs) required
for the technical staff of OPNET, without any additional assistance
from RadView, to make modifications and prepare an executable code
copy of the Software from the source code of such Software, via the
procedures of assembly, compilation, linking and/or any other
procedure, which materials shall include all such materials
(exclusive of third party materials) actually used by RadView to
prepare executable code copies of such Software and access keys for
such Software; (v) product documentation (source version and
final form); (vi) installation procedures and any installation
or support utilities; (vii) any “back-office”
applications necessary to allow end-users to exercise any function
of the source code, including but not limited to automatic updating
or patching of the end-user’s installation;
(viii) images and graphics (source version and final form);
and (ix) design documents, source code overviews and
descriptions, API documents, and requirement documents for each of
the following: (a) the highest patch level of each Major
Release of the Software generally distributed by RadView during the
forty-eight (48) months preceding the Effective Date and including
the optional (at OPNET’s election) additional portions of the
Source Material described in Section 5, (b) all “in
progress” work related to the Software as of the Effective
Date, and (c) all “in progress” work related to
Java applet testing technology as of the payment date specified
under Section 7.2 for the fourth installment payment of the
Initial Services Fee. RadView shall deliver to OPNET, within two
(2) business days following RadView’s receipt of the
Source Code License Fee identified in Section 7 below, thirty
(30) FlexLM license keys for running each of the Software,
including thirty (30) “100 Virtual Users” licenses for
WebLOAD for the in progress work and the Major Release using FlexLM
generally distributed by RadView in the 12 months immediately prior
to the effective date. Source Materials shall not include any
source code or source code documentation for third party
products.
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2.4
Major Release.
The term “Major
Release” shall mean Software version numbers that differ in
the number to the left of the first decimal place and/or differ in
the number immediately to the right of the first decimal place. For
example, versions 6.0, 6.1, 6.2, and 7.1, and 7.2 are all
considered Major Releases.
3.
Delivery of Source
Materials.
3.1
RadView shall deliver to OPNET,
within two (2) business days following RadView’s receipt
of the Source Code License Fee identified in Section 7 below,
one copy of the Source Materials, in electronic form. The
deliverables under this Agreement shall include the complete
“build environment”, including full test system and all
existing test cases for API and UI testing, as well as the source
code for any custom developed build or test tools. This environment
shall be installed and working on equipment delivered to OPNET by
RadView. Title to the build environment and equipment shall pass to
OPNET immediately following OPNET’s notice to RadView that
OPNET has obtained all third party licenses required for the build
environment deliverable: (a) as a licensee and/or (b) as
an authorized sublicensee under a third party license(s) issued to
RadView. The build environment and equipment shall be delivered as
directed by OPNET during the Knowledge Transfer Period.
3.2
RadView shall deliver to OPNET,
within two (2) business days following RadView’s receipt
of the fourth installment payment of the Initial Services Fee one
copy in electronic form of all “in progress” work
related to the Java applet testing technology described under
Section 2.3(c).
4.
Source Code License
Grant.
4.1
License to Create, and Distribute
and Sublicense Derivative Products. Subject to OPNET’s compliance
with the terms and conditions of this Agreement, including the
license terms and limitations set forth in this Section, and
contingent upon OPNET’s payment to RadView in full of the
Source Code License Fee, RadView hereby grants to OPNET a
non-exclusive, non-royalty-bearing, perpetual (subject to the terms
set forth in Section 13 below) license to:
a) modify the Software and merge or
combine the Software or any part thereof into or with other
computer programs to form a Derivative Product;
b) modify, prepare and enhance
Derivative Products based on the Software and/or the Source
Materials;
c) use internally for its own
business purposes or on behalf of any third party any such
Derivative Product; and
d) market, distribute (directly or
through third parties), support and sublicense any such Derivative
Product in object code form;
provided, however, that any
Derivative Product created by OPNET shall not diminish or otherwise
affect RadView’s pre-existing rights in the Software and the
Source Materials and any and all intellectual property embodied
thereby or embedded therein; and provided further, however, that
OPNET shall market, distribute, use, sublicense and support the
Software and the Derivative Products solely under OPNET’s
brands and using product names which shall not be similar to or
likely to be confused with the RadView names for the Software. To
that end, OPNET shall re-brand the Software and/or Derivative
Products, as applicable, including, without limitation, revising
the splash screen, documentation and similar RadView-branded areas
to reflect the OPNET branding; provided, however, that any Software
and Derivative Products used, sublicensed, marketed, supported or
distributed by OPNET shall retain the copyright and other
proprietary legends of RadView’s object code and source code
in the form as delivered under this Agreement unless such
form is determined by OPNET to be unreasonable.
4.2
License to Copy.
Subject to OPNET’s
compliance with the terms and conditions of this Agreement,
including the license terms set forth in this Section, and
contingent upon OPNET’s payment to RadView in full of the
Source Materials License Fee, RadView hereby grants to OPNET a
non-exclusive, non-royalty-bearing, perpetual (subject to the terms
set forth in Section 12.1 below), license to
a) copy the Source Materials to the
extent necessary to exercise the rights granted under this
Agreement; and
b) copy the Derivative Products to
the extent necessary to allow use and distribution of the
Derivative Products pursuant to the rights granted under this
Agreement;
provided, however, that each copy of
the Source Materials and the Derivative Products, or any
part thereof, shall reproduce the copyright and other
proprietary legends as described in Section 4.1
above.
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4.3
Source Code License for
Derivative Products. (a) Commencing on the first
anniversary of the Effective Date, and subject in each instance to
RadView’s rights as the owner of full right and title to the
Source Materials and the intellectual property embodied thereby or
embedded therein, OPNET shall be entitled to grant a source code
license with respect to all or any portion of one or more
Derivative Products subject to the conditions described herein;
(b) any source code license granted by OPNET under this
Section 4.3 shall: (i) require that the licensee
include in all copies of the Derivative Product source code
copyright and other proprietary legends of RadView included in the
source code or Derivative Product source code licensed,
(ii) require that the third party licensee’s use of the
Derivative Product source code shall be according to the terms of a
written license agreement issued by OPNET consistent with the terms
of this Agreement and, that includes an acknowledgement by the
licensee of the pre-existing proprietary and intellectual property
rights of RadView in the Derivative Product source code,
(iii) requires the licensee to protect the confidentiality of,
and the proprietary rights of RadView in, the Derivative
Product source code using the same degree of care it uses to
protect its own confidential information but in no case less than a
reasonable degree of care, and (iv) shall irrevocably release
RadView of any liability to the licensee or to any third party
claim through such licensee.
4.4
Non-Competition
Agreement. (a) For a period of five
(5) years after the Effective Date, and subject to the
exceptions below OPNET shall not: (i) assign this Agreement,
or (ii) directly market or license a source code license for
any Derivative Product to any entity listed on Exhibit B.
Exhibit B may be amended upon the mutual agreement of the
parties. (b) For a period of two (2) years after the
Effective Date, and subject to the exceptions below, OPNET shall
not: (i) assign this Agreement or (ii) directly market or
license a source code license for any Derivative Product to any
entity listed on Exhibit C. (c) In the event that any
court determines that the duration of Section 4.4(a) or
4.4(b) is unreasonable, and to such extent is unenforceable,
OPNET and RadView agree this section shall remain in effect
for the greatest time period that would not render it unenforceable
but in no event beyond the duration specified herein. Either party
however, shall have the right at any time to assign or transfer
this Agreement or any interest herein (including rights and duties
of performance), upon written notice to the other party, to any
entity: (i) which acquires all or substantially all of such
party’s operating assets, (ii) which acquires more than
50% of such party’s issued and outstanding shares,
(iii) which is under common ownership or control with a party
to this Agreement, or (iv) into which a party to this
Agreement is merged or reorganized pursuant to any plan of merger
or reorganization.
5.
Services to be Provided by
RadView.
5.1
Transfer of Knowledge.
For a period of eight
(8) consecutive weeks following the Effective Date (such eight
week period, the “Knowledge Transfer Period”), and
provided that OPNET pays timely and in full the Initial Services
Fee identified in Section 7 below, RadView shall make
available to OPNET the professional services of three
(3) RadView employees, each of whom shall be knowledgeable in
the source code for the Software, and qualified to provide
Services to OPNET with respect to the Source Materials (the
“Knowledge Transfer Consultants”) and each of whom
shall be dedicated to OPNET on a full time basis (assuming an eight
(8) hour workday, during the Israeli or United States work
week, as applicable based on the venue of the Knowledge
Transfer Consultants when performing the Services, and subject to
the RadView paid holidays identified in Exhibit D hereto)
during the Knowledge Transfer Period. Each such employee, and any
other RadView employee who may perform professional
services for OPNET in connection with this Agreement, shall be
hereinafter referred to as a “Knowledge Transfer
Consultant” or a “Training Consultant”. The
Knowledge Transfer Consultants shall provide Services on a time and
material basis and work under the direction of OPNET to provide one
or more of the following services (collectively, the
“Services”): (i) knowledge transfer with
respect to the Source Materials, (ii) creation of the
“build environment”, including full test system and all
existing test cases for API and UI testing (as well as the source
code for any custom developed build or test tools), (iii)
support OPNET’s use of the Source Materials, and general
technical support to OPNET in its use of the Source Materials,
(iv) development tasks and work related to Derivative
Product(s) as directed by OPNET, and (v) such other
professional services permitted under this Agreement related to the
Source Materials and/or the Derivative Product(s). During the
Knowledge Transfer period, OPNET may, at its sole discretion elect
to use portions of the Services described in this Section 5:
(a) to extract additional portions of the Source Material
revision control history, including but not limited to any file
versions in between the Major Releases of the Software generally
distributed by RadView, as well as any “check-in
comments” and “change logs” associated with those
file versions, limited to the 48 months prior to the Effective
Date, and as late as the payment date
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specified under Section 7.2 for
the fourth installment payment of the Initial Services Fee. RadView
shall deliver this additional material to OPNET at such times
designated by OPNET prior to the expiration of the Knowledge
Transfer period and/ or (b) to conduct training related to the
Source Materials for OPNET’s field personnel and support
personnel. Any such training services shall be provided by an
employee of RadView, other than a Knowledge Transfer Consultant,
qualified to provide training services and whose place of
employment for RadView is in the United States (the “Training
Consultant”). Training services under this Agreement shall
not exceed ten (10) staff days, whether used concurrently or
not. The fee for each staff day of training services shall be at
the rate stated in Section 7.3. The Knowledge Transfer
Consultants and the Training Consultant shall be chosen by RadView,
in its sole discretion provided that each Consultant has the
qualifications defined above. RadView further reserves the right,
at any time, to replace any individual Knowledge Transfer
Consultant or Training Consultant with a similarly qualified
RadView employee provided that RadView shall take commercially
reasonable measures to effect any such replacement in a manner
calculated to cause minimal disruption to the provision of the
Services. Upon RadView’s receipt of a good faith request by
OPNET, RadView shall promptly replace any individual Knowledge
Transfer Consultant or Training Consultant with a similarly
qualified RadView employee in a manner calculated to cause minimal
disruption to the provision of the Services.
5.2
No Warranty on
Services. RadView shall provide the Services
under this Agreement on a time and materials basis. RadView makes
no warranties or representations, express or implied, oral or
written, with respect to the Services provided under this
Agreement, whether to OPNET or to any other entity. RadView
expressly disclaims any and all warranties with respect to such
Services, including, without limitation, any implied warranties or
those arising out of usage of trade.
5.3
Venue for Services and
Consultant’s Bonus. The Services to be performed by the
Knowledge Transfer Consultants or the Training Consultant may, at
the direction of OPNET, be performed on site at any of
OPNET’s offices or from RadView’s offices; provided,
however, that Israel based Knowledge Transfer Consultants shall not
be required to work on site at an OPNET site in the United States
for more than three (3) consecutive weeks in any four
(4) week period; each Knowledge Transfer Consultant who works
not less than forty hours each week for three (3) or more
consecutive weeks on site at an OPNET site in the United States
shall be paid a bonus calculated at the rate of ONE THOUSAND
DOLLARS ($1,000 ($US)) for each consecutive week of work. For
example, if a Knowledge Transfer Consultant works three
(3) consecutive weeks at an OPNET site in the United States,
the Knowledge Transfer Consultant is entitled to a $3,000 bonus; if
the Knowledge Transfer Consultant works two consecutive weeks no
bonus has been earned. The maximum bonus payable to any Israel
based Knowledge Transfer Consultant under the terms of this
section during any four consecutive week period shall be FOUR
THOUSAND DOLLARS ($4,000 (US)). OPNET shall use its best effort to
forecast travel requirements in advance and shall provide not less
than five (5) days advance notice to a Consultant of any
travel requirement and shall include the required arrival date at
the site designated by OPNET. RadView hereby confirms that the
passports of the Consultants are and shall remain current and valid
during the Knowledge Transfer Period. RadView further waives any
rights it may have to prevent the travel of a Consultant to an
OPNET site in the United States.
5.4
Extension of Knowledge Transfer
Period. OPNET
shall have the right, in its sole discretion, to elect a one-time
extension to the Knowledge Transfer Period for any one or more of
the three (3) Consultants, upon written notice to RadView;
provided that any such extension shall not continue the Knowledge
Transfer Period beyond March 30, 2006. The notice to RadView
must be delivered at least seven (7) days prior to the
expiration of the original Knowledge Transfer Period and shall
specify the length of the extension elected by OPNET and the number
of Consultant(s) to whom OPNET would like the extension to apply.
The Additional Service fees applicable to any such extension are as
set forth in Section 7 below.
5.5
Insurance During Knowledge
Transfer Period. During the Knowledge Transfer Period
when Consultants are providing services on OPNET’s premises
(including extensions by OPNET pursuant to the terms of
Section 5.4), OPNET shall maintain comprehensive general
liability insurance, including broad form property damage
coverage, with limits of at least one million U.S. Dollars each for
personal injury and property damage for each occurrence.
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6.
Proprietary
Rights.
6.1
Derivative Products.
(a) As between
RadView and OPNET and excluding the Source Materials, OPNET shall
be the sole owner of all right, title and interest in and to, any
Derivative Product developed by OPNET in accordance with this
Agreement, and any other software prepared by OPNET in connection
with the Source Materials and/or OPNET’s exercise of its
rights under this Agreement. RadView shall not acquire any right,
title, or interest in or to such Derivative Product(s); provided,
however, that any Derivative Product or other materials created by
OPNET shall not diminish, qualify or otherwise affect
RadView’s pre-existing rights in the Software and Source
Materials. (b) Nothing in this Agreement shall be construed as
limiting the independent development of products and/or services by
the parties hereto. Each party hereto acknowledges that the other
may, as of the Effective Date or at any time thereafter, engage in
or pursue the independent development of products and/or services
which are the same as or similar to actual or planned activities
and/or products and services of the other party hereto. Each party
acknowledges and agrees that the other party’s independent
development activities with respect to the Source Materials or
similar products and/or services shall not in and of itself be
determined to violate the terms of this Agreement. Nothing in this
Section 6.1 shall be deemed to grant any ownership,
distribution, license, sublicense or any other rights to use a
party’s intellectual property except as expressly provided
herein; this section does not waive either party’s
statutory intellectual property rights for patents, copyrights,
trademarks, trade secrets or other intellectual
property.
6.2
Trademarks.
Nothing in this
Agreement shall be construed as giving either party any right to
use any trademark, service mark, trade name, logo, designation or
other identifier of the other party at any time during or after the
term of this Agreement. OPNET shall re-brand any Software or
Derivative Products which it markets, makes available to third
parties or which it uses internally pursuant to the provisions of
Sections 4.1, 4.2, and 4.3 above.
6.3
Limited
Transfer of Rights. Except as
expressly set forth in Section 3 above, the parties agree that
nothing in this Agreement is intended or should