|
Exhibit 10(s)
ASSET PURCHASE AND LICENSE
AGREEMENT
ASSET PURCHASE AND LICENSE AGREEMENT (this
“ Agreement ”) dated as of December 29, 2005 (the “
Effective Date ”), by and between Acxiom Corporation, a Delaware
corporation (“ Acxiom
” or “ Seller ”), and EMC Corporation,
a Massachusetts corporation, and EMC (Benelux) B.V.,
S.à.r.l., a Luxembourg limited liability company (together,
" EMC " or
“ Buyer ”).
In consideration of the foregoing and for other good
and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, Seller and Buyer each hereby agree as
follows:
1.
Acquired Assets .
Seller, by this Agreement, does hereby convey, sell, transfer,
assign, grant, release, set over, confirm and deliver to Buyer all
of Seller’s right, title and interest in and to the following
assets, properties, privileges, business and rights (of every
nature and description, tangible or intangible, real, personal or
mixed and wherever situated, located or existing) (collectively,
the “ Acquired Assets
”):
(a) The
technology described on Exhibit 1(a) hereto, including without
limitation all current, future and prior versions of such
technology and all derivative works of such technology
(collectively, the “ Base
Technology ”), and all know how,
trade secrets, proprietary information, product documentation,
software, methodologies, processes, tools, diagnostic, test and
maintenance aids that are or have been used in connection with the
development, licensing, maintenance or distribution of the Base
Technology or are necessary for Buyer to develop, manufacture,
maintain or distribute the Base Technology or any derivative works
thereof, in each case, in order to permit Buyer, to the maximum
extent possible, to develop, manufacture, maintain, distribute, or
engage in similar activities with respect to the Base
Technology in the future, or any derivative
works thereof;
(b) (i) All
patents and patent applications, issued or pending, worldwide
assigned to Seller claiming subject matter related to the Base
Technology, if any; and (ii) all copyrighted materials and
works-for-hire owned by Seller related to the Base Technology.
Seller shall execute and deliver such instruments and take such
other action as may be requested by Buyer to perfect or protect
Buyer's intellectual property rights in the Acquired Assets and to
carry out the assignments contemplated in this Section 1, and shall
reasonably assist Buyer at Buyer's expense and their respective
nominees to secure, and maintain, for Buyer's own benefit all such
intellectual property rights in the Acquired Assets in any and all
countries. Seller shall reasonably cooperate with Buyer at Buyer's
expense in the filing and prosecution of any patent or copyright
applications that Buyer may elect to file on the Acquired
Assets.
(c) To
the extent permitted under such agreements, the software license
and maintenance agreements (and all rights and obligations of
Seller thereunder) of Seller for third party software and/or
technology included in or related to the Base Technology
(collectively, the " Included License
Agreements "); provided that all software
license and maintenance agreements for third party software and/or
technology included in or related to the Base Technology which are
not assignable or transferable hereunder or sufficient in scope to
cover the Acquired Assets and the Business (as defined below)
(collectively, the " Excluded License
Agreements " and, together with the
Included License Agreements, the “ License Agreements ”) shall be
listed in Exhibit 1(c) hereto along with the Included License
Agreements and, with respect to each such Excluded License
Agreement, Seller agrees that (i) within two (2) years of the date
of this Agreement or upon Buyer’s exercise of its option to
acquire the Division in accordance with the provisions of this
Agreement, whichever shall occur sooner, Seller shall, at its own
expense,
either negotiate an Included License Agreement with
respect to the content of such Excluded License Agreement or
develop internally or obtain from an alternate source and under an
Included License Agreement substantially equivalent technology for
inclusion in the Acquired Assets and assign such Included License
to Buyer as an Acquired Asset at no additional charge, provided
that any applicable license fees and/or royalties shall be treated
in a manner consistent with the treatment of such fees in such
Excluded License Agreement and provided further that Buyer and
Seller shall mutually agree in the Marketing Agreement (as
described in Section 16 below) for the appropriate pass through of
such license fees and / or royalties or other appropriate
treatment, (ii) in the interim, Seller shall provide, at its own
expense, such licenses to the content of each Excluded License
Agreement as Buyer, the Division and its customers may require to
conduct the Business and (iii) in the event that Buyer determines,
within 45 days of the date of this Agreement that Exhibit 1(c)
should include the listing of additional licenses, Seller shall
reasonably cooperate with Buyer to amend such Exhibit 1(c) and to
comply with the provisions of this Section 1(c) with respect to any
such additional licenses;
(d) All of
Seller’s development and partnership agreements (and all
rights and obligations of Seller thereunder) related to the Base
Technology, each of which is listed on Exhibit 1(d) hereto, if any
(collectively, the “ Development
Agreements ” and, together with the
License Agreements, the “ Acquired
Contracts ”);
(e) With
respect to the Base Technology, electronic versions (paper version
if electronic version not available) of Seller’s (i) source
code, whether in print, magnetically stored, or in some other form,
and related materials in the possession of or available to Seller,
including, but not limited to, comments, flow charts,
documentation, and manuals, and implementation specifics
(collectively, “ Source
Code ”), it being understood that
Seller’s obligation to deliver actual electronic versions of
such Source Code shall be satisfied upon the delivery to Buyer of
all versions of such Source Code currently used or relied upon in
connection with the development, manufacture, maintenance or
distribution of any product or any successor product; provided that
Buyer shall have the right to require that Seller deliver, promptly
upon Buyer’s request, any prior version or versions of such
Source Code in the possession of or available to Seller; (ii)
system software which is a part of the Base Technology, except that
with respect to system software/build software covered by
an Excluded License Agreement, Seller's obligation to Buyer
shall be as set forth in 1(c); (iii) build software (package and
build tree) except that with respect to build software
covered by an Excluded License Agreement, Seller's obligation
to Buyer shall be as set forth in 1(c); (iv) release scripts,
procedures and documentation; (v) test suites, scripts, procedures
and process documentation; (vi) performance documentation, programs
and results sets; (vii) product specifications; (viii) functional
specifications; (ix) design specifications; and (x) customer
service and support documentation and call history (database, if
applicable);
(f) Copies
of all competitive analysis or business development information for
the Base Technology and any correspondence of Seller related
thereto; and
|
|
(g)
|
Copies of all marketing and sales materials of
Seller for the Base Technology.
|
For purposes of this Section 1, EMC Corporation
shall be deemed to be the acquiror of all such right, title and
interest in the Base Technology in North America and EMC (Benelux)
B.V., S.à.r.l. shall be deemed to be the acquiror of all
such right, title and interest in the Base Technology everywhere
else in the world.
2.
Excluded Assets .
Notwithstanding the provisions of Section 1, the Acquired Assets
shall not include, without limitation, any assets, properties or
privileges of Seller not included in the Acquired Assets including
without limitation and for purposes of clarification only, the
assets listed on Exhibit 2
2
hereto and any other part of Seller’s business
(the “ Excluded Assets
”). Without in any way limiting the foregoing
and for clarification purposes only, know how, trade secrets,
proprietary information, product documentation, software,
methodologies, processes, tools, diagnostic, test and maintenance
aids that are not included in the Acquired Assets and are or have
been used in connection with the development, licensing,
maintenance or distribution of the Other Technology and any other
part of Seller’s business shall be considered to be Excluded
Assets.
3.
Assumed Liabilities .
Subject to the terms and conditions of this Agreement, at the
Closing, Buyer shall assume and agree to pay, perform, fulfill and
discharge the liabilities and obligations associated with the
Acquired Assets, if any, which are listed on Exhibit 3 hereto (such liabilities
and obligations are hereinafter referred to as the “
Assumed Liabilities ”).
|
|
4.
|
Excluded Liabilities .
|
(a)
Notwithstanding the
provisions of Section 3, Buyer is not assuming or in any way
becoming liable or responsible for any liability of Seller not
included in the Assumed Liabilities (collectively, the
“ Excluded Liabilities
”).
(b) Seller
shall retain and be responsible for the performance and discharge
of all liabilities and obligations (i) relating to the Excluded
Assets or (ii) arising from the ownership of the Acquired Assets
prior to the Closing (as defined below).
(c) Seller
agrees that Buyer is purchasing the assets debt-free and will
reimburse the Buyer for any debt with respect to the Acquired
Assets that is not an Assumed Liability.
5.
Purchase Price . In
consideration of the sale, transfer and delivery by Seller to Buyer
of the Acquired Assets and of the other agreements of the parties
set forth in this Agreement, and subject to the assumption by Buyer
of the Assumed Liabilities, if any, Buyer agrees to pay to Seller
an aggregate amount of Thirty Million Dollars ($30,000,000.00) (the
“ Purchase Price
”) in cash as follows: (i) Twenty Million
Dollars ($20,000,000.00) at Closing; (ii) Five Million Dollars
($5,000,000.00) on April 1, 2006; and (iii) Five Million Dollars
($5,000,000.00) on July 1, 2006, with EMC Corporation contributing
Nineteen Million Nine Hundred Forty-Three Thousand Dollars
($19,943,000.00) and EMC (Benelux) B.V., S.à.r.l.
contributing Ten Million Fifty-Seven Thousand Dollars
($10,057,000.00) of such aggregate amount. Each payment shall be
made by wire transfer of immediately available funds to the account
designated by Seller. Seller’s sale of the Acquired Assets
constitutes an isolated sale of a non-inventory asset.
6.
Closing . The closing
(“ Closing ”) of the transactions contemplated by this Agreement
shall be held at 10:00 A.M. local time at the offices of Buyer, 176
South Street, Hopkinton, Massachusetts as of the Effective Date
(the " Closing Date ").
|
|
(a)
|
Deliveries at Closing .
|
|
|
(i)
|
At the Closing, Seller shall deliver to Buyer the
following:
|
|
|
(A)
|
a duly executed counterpart of this
Agreement;
|
(B) all of the
software, product documentation and related marketing material via
electronic means;
(C) all of the
Acquired Contracts, with such assignments thereof and consents to
assignments (as and if permitted by such agreements) as
are
3
necessary or appropriate to assure Buyer of the full
benefit of the same; and
(D) such other
instruments of sale, transfer, conveyance and assignment as Buyer
shall reasonably request including, without limitation, assignment
agreements with respect to all patent, trademark and copyright
rights of Seller, if any.
|
|
(ii)
|
At the Closing, Buyer shall deliver to Seller the
following:
|
|
|
(A)
|
a duly executed counterpart of this
Agreement;
|
(B) such other
instruments of assumption as Seller may reasonably request;
and
(C) the portion
of the Purchase Price due at Closing by wire transfer of
immediately available funds to the account designated by
Seller.
7.
Rights of Buyer .
Seller hereby constitutes and appoints Buyer the true and lawful
attorney of Seller, with full power of substitution, in the name of
Seller or Buyer, by, on behalf of and for the benefit of Buyer: (a)
to demand and receive from time to time all or any portion of the
Acquired Assets and to make endorsements and give receipts and
releases for and in respect of the same and any part thereof, (b)
to institute, prosecute, compromise and settle any and all actions,
litigations (other than litigation against Seller and its
affiliates, officers, directors, employees and authorized agents)
or governmental or administrative proceedings that Buyer may deem
proper in order to collect, assert or enforce any claim, right or
title of any kind in or to any Acquired Assets, (c) to defend or
compromise any or all actions, litigations or governmental or
administrative proceedings in respect of any Acquired Assets,
provided, however, that with respect to any claim for which Buyer
intends to seek indemnification from Seller under this Agreement,
Buyer shall not compromise or settle any such action or litigation
without Seller’s prior written consent, which consent shall
not be unreasonably withheld, and (d) to do all such acts and
things in relation to the matters set forth in the preceding
clauses (a) through (c) as Buyer shall reasonably deem
appropriate.
8.
Further Assurances .
Each of Seller and Buyer shall, from time to time after the Closing
and at the reasonable request of the other party and without
further consideration, execute and deliver such further
instrumentation of transfer and assignment or take such other
actions as may be reasonably necessary in order to more effectively
consummate the transactions contemplated hereby in an effort to
vest in Buyer good and valid title to the Acquired Assets and to
give full force and effect to the intent of the parties reflected
hereby.
9.
Representations and Warranties by
Seller . Seller represents and warrants
to Buyer that the representations and warranties contained in this
Section 9 are true, correct and complete as of the Effective
Date.
(a)
Organization and Standing . Seller is a corporation duly organized, validly existing and
in good standing under the laws of the State of Delaware and has
full corporate power and authority to conduct its business as
presently conducted and as proposed to be conducted by it. Seller
has at all times complied with all provisions of its Certificate of
Incorporation and By-laws, each as currently in effect, and is not
in default under, or in violation of, any such
provision.
(b)
Authority for Agreement . Seller has full corporate power and authority to execute and
deliver this Agreement and to carry out its obligations thereunder.
The execution,
4
delivery and performance by Seller of this Agreement
has been duly authorized by all necessary corporate action of
Seller and no other action on the part of Seller is required in
connection herewith. This Agreement has been duly executed and
delivered by Seller and constitutes the valid and legally binding
obligation of Seller. The execution and delivery of this Agreement,
the compliance with the provisions hereof by Seller, and the
consummation of the transactions contemplated hereby, will not (i)
conflict with, result in a breach of, constitute (with or without
due notice or lapse of time or both) a default under, result in the
acceleration of, create in any party the right to accelerate,
terminate, modify or cancel, or require any notice, consent or
waiver under the Certificate of Incorporation and By-laws of Seller
or under any contract, lease, sublease, sublicense, franchise,
permit, indenture, agreement or mortgage for borrowed money,
Security Interest or other interest to which Seller is a party or
by which Seller is bound or to which its assets are subject, (ii)
result in the imposition of any Security Interest upon any assets
of Seller or (iii) violate any order, writ, injunction, decree,
rule or regulation applicable to Seller, or any of its properties
or assets, except in each case, where such conflict, breach,
default or other violation would not have a material adverse effect
on the ability of Buyer to consummate the transactions contemplated
hereby and thereby. For purposes of this Agreement, “
Security Interest ” means any mortgage, security interest, encumbrance,
claim, charge, or other lien (whether arising by contract or by
operation of law), other than liens for taxes not yet
due.
(c)
Title to Acquired Assets . Except as set forth on Exhibit 1(c), Seller owns the Acquired
Assets and Seller has and is conveying to Buyer hereunder, upon
delivery to Buyer of the instruments of transfer referred to in
Section 6, good and valid title to the Acquired Assets. Except as
set forth on Exhibit 9(c), none of the Acquired Assets includes any
software distributed under a license that requires as a condition
of use, modification or distribution of the software that such
software or other software distributed with or combined with the
software be (i) disclosed or distributed in source code form; (ii)
licensed for the purpose of making the derivative works or (iii)
redistributable at no charge (“ Open
Source Software ”).
(d)
Contracts . Seller has
furnished to Buyer a correct and complete copy of each Acquired
Contract listed on Exhibits 1(c) and 1(d), if any, and identified
thereon what if any consents of any person are required to assign
the Acquired Contracts to Buyer. Seller has performed all
obligations under the Acquired Contracts required to be performed
by it prior to the Closing. Seller is not in breach of any material
term or provision of any Acquired Contract. To the knowledge of
Seller, there does not exist under any Acquired Contract any event
of default, except for any event which has not had and is not
reasonably likely to have a material adverse effect on the Acquired
Assets, and no claim has been made against Seller alleging any
event of default. All Acquired Contracts are in full force and
effect and enforceable against each party thereto.
(e)
Consents . No consent
of any third party is required to be obtained by Seller and no
consent, approval, order authorization of, or registration,
qualification, designation, declaration or filing with any
governmental authority is required in connection with the execution
and delivery of this Agreement or the consummation of the
transactions contemplated hereby.
(f)
Intellectual Property .
All patents, patent applications, copyrights, trade names,
trademarks and trademark applications which are owned by or
licensed to Seller or in which Seller has an interest that is
directly related to the Base Technology (collectively and, together
with the know how, trade secrets and proprietary information
included in the Base Technology, the " Intellectual Property ") are listed
on Exhibit 9(f). All of Seller’s patents and registered
trademarks that are directly related to the Base Technology have
been duly registered in, filed in or issued by the applicable
patent office of each country identified in Exhibit 9(f), and have
been properly maintained and renewed in accordance with all
applicable laws and regulations of each
5
such country. The use of the Intellectual Property
contemplated by this Agreement does not require the consent of any
other Person except to the extent that any such consent has already
been provided by contract or license or except as noted in Exhibit
1(c). Except as noted in Exhibit 1(c), all of Seller’s rights
to and interest in the Intellectual Property are freely
transferable (except as otherwise provided by law) and are owned
exclusively by Seller free and clear of any Security Interests.
Except for those items identified in Exhibit 1(c), no other Person
has an interest in or right or license to use, or right to acquire
or the right to license any other Person to use (whether contingent
or otherwise), any Intellectual Property; no claims or demands of
any other Person pertaining thereto have been asserted against
Seller in writing, and no proceedings have been instituted or are
pending or, to the knowledge of Seller, threatened, which challenge
Seller’s rights in respect thereof; to the knowledge of
Seller, none of the Intellectual Property of Seller is being
infringed by another Person, nor are any of them subject to any
outstanding order, decree, ruling, charge, injunction, judgment or
stipulation; and no claim has been made, or to the knowledge of
Seller, is threatened, charging Seller with infringement of any
adversely held patent, trademark, trade secret or copyright or
other intellectual property. Seller has and is transferring to
Buyer valid licenses for all third party software and technology
included in the Acquired Assets. All personnel, including
employees, agents, consultants and contractors, who have
contributed to or participated in the conception and development of
any part of Seller’s Intellectual Property rights on behalf
of Seller have executed confidentiality, non-disclosure and
intellectual property ownership agreements, representative copies
of which have, or will be, furnished to Buyer. No current or former
partner, director, officer, employee, consultant, independent
contractor or affiliate of Seller (or any predecessor in interest)
will, after giving effect to the transactions contemplated herein,
own or retain any rights in or to any Intellectual Property. No
security measures have been implemented in the software of Seller
included in the Acquired Assets which would impair operation
thereof, except such measures as have been disclosed to Buyer. The
Base Technology does not contain any device or feature designed to
disrupt, disable, or otherwise impair the functioning of any such
software.
(g)
Trade Secrets and Customer Lists
. Seller has the right to use, free and clear of any
claims or rights of any other Person, all trade secrets, customer
lists and secret processes and know-how included in the Acquired
Assets required for or used in the marketing of the Base
Technology. With regard to the Base Technology and to the knowledge
of Seller, Seller is not in any way making an unlawful or wrongful
use of any confidential information, know-how, or trade secrets of
any other Person.
(h)
Litigation . There is
no litigation or governmental or administrative action, suit,
proceeding or investigation (domestic or foreign) pending or, to
the knowledge of Seller, threatened against Seller and directly
related to the Base Technology, Source Code or Acquired Contracts.
No claims or demands of any other Person pertaining thereto have
been asserted against Seller in writing, and no proceedings have
been instituted or are pending or, to the knowledge of Seller,
threatened, which challenge Seller’s rights in respect
thereof.
(i)
Sufficiency . Seller
hereby represents and warrants that this Agreement is sufficient to
transfer and convey title to the Acquired Assets to Buyer under
applicable law.
(j)
Export Licenses. Seller
acknowledges that the Acquired Assets are subject to the export
jurisdiction of the United States, specifically the Export
Administration Regulations and Export Control Classification Number
(ECCN) 5D002. Seller represents that, to Seller’s knowledge,
it has complied with all applicable international laws and
regulations, including, without limitation, the US Export
Administration regulations in the development, use and marketing of
the Acquired Assets and in its business relations with third
parties concerning the Acquired Assets
6
(k) EXCEPT AS
OTHERWISE SET FORTH IN THIS SECTION 9, THE ACQUIRED ASSETS AND THE
OTHER TECHNOLOGY LICENSE PROVIDED BY THIS AGREEMENT ARE PROVIDED
“AS IS”, WITHOUT WARRANTY OF ANY KIND, EXPRESS OR
IMPLIED, BY SELLER OR ITS AFFILIATES, INCLUDING, BUT NOT LIMITED
TO, ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE, COMPLETENESS, ACCURACY, AVAILABILITY, TITLE,
NON-INFRINGEMENT, TRADE USAGE, COURSE OF DEALING, OR COURSE OF
PERFORMANCE. THE ENTIRE RISK AS TO PERFORMANCE OF THE ACQUIRED
ASSETS AND THE OTHER TECHNOLOGY LICENSE ARE WITH BUYER AND THERE IS
NO GUARANTEE THAT THE ACQUIRED ASSETS AND THE OTHER TECHNOLOGY
LICENSE PROVIDED UNDER THE TERMS OF THIS AGREEMENT WILL MEET THE
REQUIREMENTS OF BUYER, BE ERROR FREE, OR OPERATE WITHOUT
INTERRUPTION.
10.
Representations and Warranties by
Buyer . Buyer represents and warrants to
Seller that, to Buyer’s actual knowledge, the representations
and warranties contained in this Section 10 are true, correct and
complete as of the Effective Date.
(a)
Organization and Standing . Buyer is a corporation duly organized, validly existing and
in good standing under the laws of the Commonwealth of
Massachusetts and has full corporate power and authority to conduct
its business as presently conducted. Buyer is not in default under,
or in violation of, any provision of its Articles of Organization
or Restated By-laws, each as currently in effect.
(b)
Authority for Agreement . Buyer has full corporate power and authority to execute and
deliver this Agreement and to carry out its obligations hereunder.
The execution, delivery and performance by Buyer of this Agreement
has been duly authorized by all necessary corporate action of Buyer
and no other action on the part of Buyer is required in connection
herewith. This Agreement has been duly executed and delivered by
Buyer and constitutes the valid and legally binding obligation of
Buyer. The execution and delivery of this Agreement, the compliance
with the provisions hereof by Buyer, and the consummation of the
transactions contemplated hereby, will not (i) conflict with,
result in a breach of, constitute (with or without due notice or
lapse of time or both) a default under, result in the acceleration
of, create in any party the right to accelerate, terminate, modify
or cancel, or require any notice, consent or waiver under the
Articles of Organization or Restated By-laws of Buyer or under any
contract, lease, sublease, sublicense, franchise, permit,
indenture, agreement or mortgage for borrowed money, Security
Interest or other interest to which Buyer is a party or by which
Buyer is bound or to which its assets are subject, (ii) result in
the imposition of any Security Interest upon any assets of Buyer,
or (iii) violate any order, writ, injunction, decree, rule or
regulation applicable to Buyer, or any of its properties or assets,
except in each case, where such conflict, breach, default or other
violation would not have a material adverse effect on the ability
of Seller to consummate the transactions contemplated
hereby.
|
|
11.
|
Division; Advisory Board; Additional
Development .
|
(a) As soon as practicable after the Effective Date, Seller hereby
agrees to organize and constitute a division of Seller (the
“ Division ”) in which all operations of Seller related to the
Business shall be operated and managed. During the term of this
Agreement, the Division shall be the sole vehicle for activities of
the Seller relating to the Business. The Division shall develop the
Business in accordance with the business plan and roadmap (the
“ Plan ”) attached as Exhibit 11(a) (which shall be reviewed by
an independent third party mutually selected by Buyer
and
7
Seller as directed by the Advisory Board with
respect to those matters identified on Exhibit 11(a)). Seller shall
contribute to the Division such assets, including, without
limitation, facilities, labs and equipment, and other interests and
rights as Seller and Buyer shall mutually agree within thirty (30)
days after the Effective Date, as well as such other assets as the
Advisory Board shall recommend or require from time to time. Seller
agrees that it shall fund research and development efforts within
the Division for the Business in accordance with the Plan and at
the direction of the Advisory Board (as such terms are defined
below). Such assets shall constitute the assets, interests and
rights that are necessary or advisable to develop, operate,
maintain and grow the Business.
(b) At
the Effective Date, Seller shall assign not fewer than 100 research
and development associates (each of whom is identified on Exhibit
11(b)) (the “ Assigned
Employees ”) to work full time on
the development of the Business within the Division, which number
of employees shall be maintained as full-time employees of the
Division during the term of this Agreement from the Effective Date
until (i) such time as Buyer and Seller agree to redeploy such
associates, or (ii) Buyer elects not to acquire the Division in
accordance with Section 13. The Assigned Employees shall report to
management of the Division and the Advisory Board (as defined
below). In the event of the voluntary resignation by an Assigned
Employee from employment with Seller or the dismissal of an
Assigned Employee from employment with Seller for misconduct
( e.g ., fraud,
drug abuse, theft) or for good cause shown, Seller will use
commercially reasonable efforts to replace such Assigned Employee
with an associate of comparable skill and ability as soon as
practical. For purposes of this Agreement, “
Business ” shall
mean the development and commercialization of a joint solution for
a business intelligence grid (“ BIG ”), as more fully described
in the Plan.
(c) Seller
agrees no later than the date that is thirty (30) days after the
Effective Date to establish an advisory board (the “
Advisory Board ”), which shall have full and complete advisory
responsibility for the direction of the operations of the Division
including without limitation all matters relating, directly or
indirectly to the development, operation, commercialization,
maintenance and growth of the Business. The Advisory Board shall
consist of six (6) members, three (3) of whom will be designated by
each of Buyer and Seller. The Advisory Board shall advise on any of
the following: (i) any change, amendment or modification to the
Plan, (ii) any allocation by Seller of any indebtedness to the
Division; (iii) any sale, transfer, sale or license of any of the
assets of the Division, provided that this Section (b)(iii) shall
not apply to an indirect sale of the Division as a result of any
merger, consolidation, acquisition, sale of substantially all of
sellers assets, or any other change of control of Seller; (iv)
taking any action or omitting to take any action a result of which
would reasonably be expected to be materially detrimental to the
business relationships or goodwill of the Division; or (v)
establishing the terms of any transactions or allocations of
liabilities between Seller and the Division. Management of the
Division shall meet with the Advisory Board not less often than
each fiscal quarter for a quarterly business review at which
projected and actual Division budget and financial information, as
well as relevant information concerning progress against the Plan,
information about Assigned Employees and such other matters as the
Advisory Board shall determine, shall be discussed and
evaluated.
(i) The parties acknowledge that several aspects of the
relationships among the parties will require mutual agreement and
cooperation. In this connection, the parties agree to work together
reasonably and in good faith to resolve disagreements and disputes
as rapidly as practicable so as not to impair the performance or
operations of Business.
8
(ii) In
the event of a disagreement between EMC and Acxiom arising out of
or related to this Agreement, the parties agree to submit such
disagreement to the Advisory Board for resolution. The members of
the Advisory Board shall negotiate reasonably and in good faith to
resolve such disagreement.
(iii) In the
event that the Advisory Board is unable to resolve the disagreement
within five (5) business days of the date the issue is submitted to
it, the parties agree to submit the disagreement to the Business
Sponsors identified on Exhibit 11(d)(iii) for resolution. The
Business Sponsors shall negotiate in good faith to resolve the
disagreement.
(iv) In the
event that the Business Sponsors are unable to resolve the
disagreement within ten (10) business days of the date the issue is
submitted to it, the parties agree to submit the disagreement to
the Executive Sponsors identified on Exhibit 11(d)(iv). The
Executive Sponsors shall negotiate in good faith to resolve the
disagreement.
(e) From time to time, Buyer may engage the Division to perform
certain development with respect to Buyer’s proprietary
technology, on mutually acceptable terms and conditions. The Hosted
Services License and the Division License notwithstanding (as such
terms are defined below), in the event that Buyer licenses any
additional technology or rights to Seller, in furtherance of any
such development by the Division or Seller to perform such
development, whether or not in connection with developing or
commercializing the Business, including without limitation any
license of technology of EMC / Smarts or of VMware, any such
additional license (including without limitation any license to any
work which constitutes, in whole or in part, a derivative work of
such technology) shall not include any independent right of Seller
to such technology other than for such development for the
exclusive use and benefit of Buyer unless Buyer and Seller shall
otherwise expressly agree to license terms therefor.
|
|
12.
|
Licenses; Non-Use of Acquired Assets
.
|
(a) Seller
grants to Buyer a perpetual, transferable, assignable,
sublicensable, reproducible license to use the assets and
technology identified on Exhibit 12(a) (the “
Other Technology ”) and all derivative rights of the Other Technology
solely in connection with the development or commercialization of
the Base Technology to manage and operate the Business (the
“ Other Technology
License ”); provided, that Seller
agrees that it shall not grant any license to the Other Technology
to any person other than Buyer for use in connection with the
development or commercialization of the Base Technology.
(b) Subject to
the terms of this Agreement, Buyer grants a non-exclusive,
transferable, assignable, sublicensable, reproducible, irrevocable,
perpetual, royalty-free license to use the Base Technology and
Source Code, and all know how, trade secrets, proprietary
information, product documentation, software, methodologies,
processes, tools, diagnostic, test and maintenance aids conveyed to
Buyer in accordance with Section 1(a) (i) to Seller, on behalf of
the Division, to make, use, modify, distribute, create derivative
works of and otherwise develop and commercialize the Base
Technology and derivative works of the Base Technology solely at
the Sellers' facilities by Seller and solely in order to manage and
operate the Business (the “ Division
License ”); and (ii) to Seller to
use, modify, create derivative works of, and develop and
commercialize the Base Technology and such derivative works for use
solely in connection with the Hosted Services business of Seller
(the “ Hosted Services
License ”). For purposes of this
Agreement, “ Hosted
Services ” shall mean (i) a
business relationship in which Acxiom provides a customer with data
center or computer management operation services that includes
the
9
manipulation or transformation of information that
provides a customer with business intelligence, and/or (ii)
internal business operations of Acxiom that include the
manipulation or transformation of information that provides Acxiom
with business intelligence for Acxiom’s own use, an Acxiom
customer’s use, or for re-sale to third parties; provided,
however, that Hosted Services shall not include products or
services which are designed primarily to provide information
lifecycle management services or products such as those offered by
EMC, and shall not include, without limitation, local/remote
replication or storage and/or content management software. THE
DIVISION LICENSE AND HOSTED SERVICE LICENSE PROVIDED BY THIS
PARAGRAPH ARE PROVIDED “AS IS”, WITHOUT WARRANTY OF ANY
KIND, EXPRESS OR IMPLIED, BY BUYER OR ITS AFFILIATES, INCLUDING,
BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, COMPLETENESS, ACCURACY,
AVAILABILITY, TITLE, NON-INFRINGEMENT, TRADE USAGE, COURSE OF
DEALING, OR COURSE OF PERFORMANCE. THE ENTIRE RISK AS TO
PERFORMANCE OF THE BASE TECHNOLOGY AND SOURCE CODE ARE WITH SELLER
AND THERE IS NO GUARANTEE THAT THE LICENSES PROVIDED UNDER THE
TERMS OF THIS AGREEMENT WILL MEET THE REQUIREMENTS OF SELLER, BE
ERROR FREE OR OPERATE WITHOUT INTERRUPTION.
(c) Except
with respect to any Open Source software, Seller will hold the
confidential and trade secret portions of the Base Technology and
Source Code and other Acquired Assets in confidence, and will not
allow access to, divulge, disclose, copy or publish any such
information to any third party without the prior written approval
of Buyer. The obligations of this Section 12(c) will survive in
perpetuity.
(d) Except with
respect to any Open Source software, Buyer will hold the
confidential and trade secret portions of the Other Technology in
confidence, and will not allow access to, divulge, disclose, copy
or publish any such information to any third party without the
prior written approval of Seller. The obligations of this Section
12(d) will survive in perpetuity.
(e) For
purposes of the Hosted Services License, upon any change of control
of Acxiom, the Hosted Services business of Seller shall be deemed
to include any Hosted Services business of the entity acquiring
control of Acxiom, as in existence on the date of such change of
control for existing and future customers; provided, that such
entity agrees that it shall and shall cause Acxiom to license and
make available to EMC on a royalty free basis no less frequently
than on a quarterly basis all derivative works of the Base
Technology that are created after the date of such change of
control.
(f) For
purposes of the Division License, upon the earlier to occur of (i)
an election by EMC not to acquire the Division in accordance with
Section 13; or (ii) any change of control of Acxiom that is
followed by an election by EMC not to acquire the Division in
accordance with Section 13, the Division License shall continue in
effect, provided, that as a condition of such continuation, each of
Acxiom and any entity acquiring control of Acxiom agrees that it
will and, as appropriate, will cause Acxiom and the Division to
license and make available to EMC on a royalty free basis no less
frequently than on a quarterly basis all derivative works of the
Base Technology that are created after the effective date of such
continuation for such time as the Division License is in
effect.
|
|
13.
|
Option to Acquire Division; Employees
.
|
(a) Buyer shall
have the option, exercisable in its absolute and sole discretion at
any time after the Effective Date and prior to the date that is
thirty (30) days after the second
10
anniversary of the Effective Date (the
“ Option Period
”), to acquire all of Acxiom’s right,
title and interest in and to the Division (excluding buildings,
furniture, and fixtures) for a purchase price not to exceed $20
million pursuant to an asset purchase agreement containing
provisions substantially identical to those set forth in Exhibit
13(a) with respect to the assets of the Division, including those
assets identified on Exhibit 11 to this Agreement, as such exhibit
shall be amended from time to time. Buyer agrees to pay the
following purchase price if the option is exercised during the time
period represented in the table below:
|
Exercise Occurs in the Following
Months of the Option Period
|
Amount of Purchase
Price Owed to Seller
|
|
|
|
|
Effective Date to end of the 5 th
month
|
$5,000,000.00
|
|
Beginning of 6 th month to end of 11
th month
|
$10,000,000.00
|
|
Beginning of 12th month to end of 17 th
month
|
$15,000,000.00
|
|
Beginning of 18 th Month to end of Option
Period
|
$20,000,000.00
|
Buyer’s right to give notice of the exercise
of such option shall terminate upon the expiration of thirty (30)
days following the second anniversary of the Effective Date. In the
event that Seller proposes to engage in a transaction that would
constitute a change in control of Seller, Seller shall give Buyer
twenty (20) days written notice prior to the consummation of any
such transaction.
(b) In the
event that Buyer exercises such option to acquire the Division, it
shall give written notice of such exercise to Seller and Seller and
Buyer agree to consummate such acquisition no later than 30 days
after the date of such notice in accordance with the terms of
Section 12(a).
(c) In addition
to the option described in Section 13(a), Buyer shall have the
option, exercisable in its absolute and sole discretion at any time
after the second anniversary of the Effective Date and prior the
date that is thirty (30) days after the second anniversary of the
Effective Date (the “ Notice of
Extension Period ”), to extend the
Option Period for a period of one (1) year (the “Extension
Period”). To exercise such option, Buyer shall deliver notice
of such exercise within the Notice of Extension Period along with
an amount in cash equal to $20 million to Seller as a nonrefundable
deposit. In the event that Buyer elects to so extend the Option
Period, Buyer and Seller agree that if Buyer elects to acquire the
Division at the end of the Extension Period, the purchase price of
the Division at the end of the Extension Period shall be $40
million, comprised of $20 million in the form of such previously
delivered non-refundable deposit and $20 million that shall be
delivered at the consummation of the acquisition of the Division.
Seller agrees that it shall fund research and development efforts
within the Division for the Business during the Extension Period in
accordance with the Plan and at the direction of the Advisory
Board.
(i) For a period of ninety (90) days commencing upon the receipt by
Seller of notice of the election by Buyer to acquire the Division
(the “ Transition Period
”), Buyer shall have the exclusive right to
offer employment to the Assigned Employees.
11
(ii) During the Transition Period and for a period of sixty (60)
days thereafter, Seller will actively encourage such individuals to
join Buyer and will otherwise assist and support the transition
hiring process consistent with the parties’
intentions.
(iii) In the
event that any individual to whom Buyer has made a good faith offer
of employment pursuant to this Section 13(c), rejects such offer
and accepts an offer of employment with Seller after Buyer’s
election, Seller shall provide Buyer with such individual’s
salary and other compensation information in order to permit Buyer
to make a revised offer of employment to each such individual
within thirty (30) days of the date of receipt of such salary and
other compensation information.
(iv) If more
than five percent (5%) of the individuals to whom Buyer has made a
good faith offer of employment pursuant to this Section 13 in the
aggregate, rejects Buyer’s offer of employment and accepts an
offer of employment with Seller, Buyer shall have the right but not
the obligation to cause Seller to continue to engage such
individuals in the Business at the expense of Seller for a period
of up to one (1) year after the date such individuals reject
Buyer’s offer. If neither of the individuals identified on
Exhibit 13(d)(iv) accepts Buyer’s offer of employment and
each individual instead accepts an offer of employment with Seller,
Buyer shall have the right but not the obligation to cause Seller
to continue to engage such individuals in the Business at the
expense of Seller for a period of up to two (2) years after the
date such individuals reject Buyer’s offer. If one of such
individuals listed on Exhibit 13(d)(iv) accepts Buyer’s offer
of employment, the foregoing restriction with respect to such
individuals shall not apply. Seller agrees during the Transition
Period and for a period of one year thereafter, Seller shall not
make an offer of compensation to either such individual at a rate
in excess of their compensation at the time of the second
anniversary of the Effective Date; provided that the foregoing
restriction shall not apply to raises made in the ordinary course
of business consistent with past practices.
(v) Seller will not assign any individual who has rejected a good
faith offer of employment by Buyer and elects to accept an offer of
employment with Seller on any engagement that is competitive with
the Business for a period of one (1) year after such
rejection.
(d)
Operation of the Division . Seller covenants and agrees that, during the period from the
Effective Date and continuing until such time as Buyer exercises
the option to acquire the Division in accordance with Section 12,
unless Buyer shall otherwise agree in writing, Seller shall cause
the Division to conduct the Business and any other matters, and
Seller shall not cause the Division to take any action except in,
the ordinary course of business and in a manner consistent with the
direction of the Advisory Bo
|