SOURCE CODE LICENSE AGREEMENT
This
Source Code License Agreement (“Agreement”) is
made and entered into this 20 th day of July, 2005
(“Effective Date”), by and between Timeline,
Inc. , a Washington corporation (“Licensor”), and
Global Software, Inc. , a North Carolina corporation
(“Licensee”).
Recital
Licensor and Licensee are parties to a certain
Asset Purchase Agreement dated as of equal date hereto (the
“Asset Purchase Agreement”), under which Licensor
agrees, among other things, to enter into this Source Code License
Agreement.
Agreement
The
parties hereby agree as follows:
1 . Definitions
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1.1
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“Affiliate” shall mean, with respect
to a party any entity that directly or indirectly controls, is
controlled by or is under common control with that
party.
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1.2
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“Derivatives” shall mean:
(a) for copyrightable or copyrighted material, any translation
(including translation into other computer languages), port,
modification, correction, addition, extension, upgrade,
improvement, compilation, abridgment or other form in which an
existing work may be recast, transformed or adapted; (b) for
patentable or patented material, any improvement thereon; and
(c) for material which is protected by trade secret, any new
material derived from such existing trade secret material,
including new material which may be protected by copyright, patent
and/or trade secret.
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1.3
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“Intellectual Property Rights” shall
mean all copyrights, trademarks, service marks, trade secrets,
patents, patent applications, moral rights, contractual rights of
non-disclosure, and all other proprietary rights.
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1.4
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“Private
Label Products” shall mean those privately labeled versions
of the Software and any Licensee Derivatives thereof which may
consist of the integration of the Software (or any Licensee
Derivative) with other programs, modules or components or other
systems or processes to enhance its functioning and/or create a
different process or program.
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1.5
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The
“Software” shall mean the software and associated
documentation, as described in Exhibit A in source code and object
code form and any updates or upgrades to the “Software”
publicly released by Licensor for a period of eighteen
(18) months following the Effective Date.
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1.6
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“Territory” shall mean United
Kingdom, Europe, Africa and the Middle East.
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2 . License and Ownership
Rights
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2.1
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License
Grant . During the term
and subject to compliance with the terms and conditions of this
Agreement, Licensor hereby grants to Licensee a non-exclusive,
worldwide, sublicensable (except as specifically provided otherwise
in Section 2.2), non-transferable (except as provided in
Section 8.4), non-assignable (except as provided in
Section 8.4) limited license (i) to use, copy, and modify
the Software and to: (a) create Derivatives based on the
Software (a “Licensee Derivative”), (b) to
maintain or enhance the Software, and/or (c) to develop
Private Label Products; (ii) to market, distribute and sell or
license to end-users, directly or through multiple tiers, the
Software, Derivatives and Private Label Products; and (iii) to
sublicense its rights under subsections (i)(b) and (i)(c)
hereunder, all as subject to the restrictions in
Section 2.2.
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2.2
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License
Restrictions and Licensee Covenants . Licensee shall not distribute the Software or
any Derivatives thereof to those customers listed on
Schedule 1.2 (a)(iii) to the Asset Purchase Agreement.
Licensee shall not distribute or license the source code licensed
to it hereunder anywhere other than the Territory. Licensee will
not alter or remove any copyright, patent or patent pending notice
which is placed on, embedded in or otherwise affixed to the
Software. Licensee shall ensure that the Licensor’s
proprietary notices are prominently displayed in connection with
the distribution of the Software or any Derivatives thereof. No
sublicense granted under this Agreement shall be broader in any
respect than the sublicensable rights of Licensee specified in
Section 2.1 as restricted by this Section 2.2. In
addition, Licensee shall comply with any restrictions on the
foregoing license included in this Agreement (including the
exhibits hereto).
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2.3
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Ownership . Licensor retains all right, title and interest
in and to the Software. Each party shall be the sole owner of any
modifications or Derivatives that it creates based on the Software,
including but not limited to any designs, computer code, or
materials.
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2.4
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No Other
Rights . Licensee agrees
that this Agreement does not grant to it distribution rights to the
Software or any Derivatives thereof, in either source or object
code form, except as otherwise provided in subsection 2.1 above.
Under no circumstances will the license grant set forth in
Section 2.1 be construed as granting, by implication, estoppel
or otherwise, a license to any Licensor technology other than the
Software. Licensee agrees that, as a condition to the licenses
granted above, it will not, at any time (except in the event that
this Agreement is terminated pursuant to the terms of the Asset
Purchase Agreement), contest anywhere in the world Licensor’s
ownership of the Software, nor will Licensee, at any time (except
in the event that this Agreement is terminated pursuant to the
terms of the Asset Purchase Agreement), challenge the validity of
Licensor’s Intellectual Property Rights in the Software.
Without limiting any rights or obligations set forth in the Asset
Purchase Agreement, nothing herein shall require Licensor to
provide support, or any maintenance of the Software of any kind.
Without limiting any rights or obligations set forth in the Asset
Purchase Agreement, all rights not expressly granted herein as to
the Software are expressly reserved by Licensor. In the event that
, at any time (except in the event that this Agreement is
terminated pursuant to the terms of the Asset Purchase Agreement),
Licensee has any knowledge of any infringement of, or litigation
instituted with respect to, the Software by any person, Licensee
shall immediately notify Licensor. Additionally, in such event,
Licensee shall immediately furnish to Licensor copies of all
correspondence, notices, advertising, complaints, legal documents,
and other written materials relating to any such infringement,
litigation or challenge which it may have in its possession. In no
event shall Licensee’s or any third party’s possession,
use, modification, licensing or any other exploitation of the
Software or the Derivatives as permitted by this Agreement be
construed as an infringement of Licensor’s or
Licensor’s Affiliates’ Intellectual Property Rights in
the Software.
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2.5
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Indemnification of Licensor
. Licensee agrees to indemnify,
defend and hold Licensor harmless from any claims arising out of
Licensee’s use or modification of the Software or its use or
distribution of the Derivatives.
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2.6
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Delivery of
Source Code . By the end
of the business day next following the date hereof, Licensor shall
deliver to the Licensee those components of the Software currently
prepared for delivery (including the Software described as Analyst
Suite 2.9, including service packs through current service
pack (SP2)) in such manner as reasonably requested by the Licensee,
Licensor shall work diligently to deliver the remaining Software
(including the source code with commentary, related modules, object
code and related modules and documentation)components in such
manner as reasonably requested by the Licensee and will in any
event deliver all such components to Licensee within fourteen
(14) business days of the date hereof.
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3. Confidentiality
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3.1
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Definition . “Confidential Information” of a
party means any and all technical or non-technical information
related to the past, current or proposed operations, products,
technology, services and business of such party (the
“Discloser”) (i) disclosed or otherwise made
available in any manner by such party to the other party (the
“Recipient”) which is disclosed or made available in
connection with or is related to this Agreement, or (ii) to
which the Recipient may gain access in the performance of this
Agreement, whether disclosed orally, visually or through any
tangible medium. Information and material need not be labeled or
marked “confidential” or bear similar language or mark
to be deemed Confidential Information hereunder, and failure to do
so will not give rise to an inference that the information
disclosed is not confidential. For the avoidance of doubt,
Confidential Information of Licensor includes the Software source
code and Intellectual Property Rights therein.
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3.2
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Exclusions . The term “Confidential
Information” does not include, and the obligation of
confidentiality hereunder will no longer attach to, information
when the Recipient can document that such information: (a) was
already in the Recipient’s possession, free of any obligation
of confidence, as shown by the Recipient written records in
existence at the time of disclosure; (b) is or becomes
generally known to the public at the time the Discloser
communicates such information to the Recipient, or subsequently,
through no breach of this Agreement by the Recipient; (c) is
received independently and without restriction by the Recipient
from a third party not under an obligation to the Discloser or
others to keep such information confidential; (d) is
independently developed by the Recipient’s personnel without
not having access, directly or indirectly, to Confidential
Information of the Discloser; provided, however, that the Recipient
will bear the burden of proving that such personnel did not have
access to the Confidential Information.
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3.3
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Restrictions
on Use and Disclosure .
The Recipient will hold the Discloser’s Confidential
Information in strict confidence, and use such care and take all
precautions to protect such Confidential Information as the
Recipient employs with respect to its most confidential materials,
but in no case less than reasonable precautions. The Recipient must
maintain the Discloser’s Confidential Information in a
physically secure manner at all times and will take all necessary
steps to prevent the unauthorized use of dissemination or such
Confidential Information. Except as expressly permitted under this
Agree
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