<PAGE>
EXHIBIT 10.14
CONFIDENTIAL AND PROPRIETARY
Agreement No. 94151V
VALUE ADDED RESELLER LICENSE AGREEMENT
FOR UNIFACE SOFTWARE
("Agreement")
THIS AGREEMENT is between:
JDA Software Group, Inc.
14400 North 87th Street
Scottsdale, AZ 85260-3649
hereafter "VAR" and Compuware Corporation,
a Michigan corporation, with offices
+at 31440 Northwestern Highway, Farmington
Hills, M1 48334, United States,
(hereafter "Compuware") effective April 1,
2000, ("Effective Date") and ending
March 31, 2005, ("Term"). This Term may be
extended an additional three (3)
years upon mutual consent of VAR and
Compuware.
[LOGO OF COMPUWARE]
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Table of Contents
<TABLE>
<S>
<C>
I.
PARTIES............................................................
3
II. SCOPE OF
THIS AGREEMENT............................................
3
III.
DEFINITIONS........................................................
3
IV. TERMS AND
CONDITIONS...............................................
5
V.
ENTIRE AGREEMENT...................................................
19
VI. EXHIBIT
LIST.......................................................
20
VII. EXHIBIT I. VAR
PROFILE............................................. 21
IX. EXHIBIT
II. REMARKETERS LIST.......................................
24
X.
EXHIBIT III. COMPUWARE TRIAL AGREEMENT.............................
26
XI
EXHIBIT IV. VAR QUARTERLY ROYALTY REPORT...........................
27
XII. EXHIBIT V.
NON-DISCLOSURE AGREEMENT................................
28
XIII. EXHIBIT VI. SAMPLE
COMPUWARE LICENSE AGREEMENT AND
PRODUCT SCHEDULE...................................................
31
</TABLE>
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I. PARTIES
Compuware
designs, develops and licenses computer programs and provides
related
services. VAR is a "value added reseller", as defined herein,
of
computer
programs and related services. Each party represents that it is
engaged in the
business described herein and that it has all rights and
authority to
enter into this Agreement and undertake the obligations
contained
herein.
II. SCOPE OF THIS AGREEMENT
Subject to the
terms and conditions of this Agreement, including the
Exhibits
referenced herein, Compuware agrees to license and provide, and
VAR agrees to
license UNIFACE Software and purchase services on a worldwide
basis as defined
herein during the term of this Agreement. Specifically,
this Agreement
grants VAR the right to incorporate into the VAR Application
Software and
distribute to its customers:
- UNIFACE Runtime
- Application Server
- Component Server
- Web Application Server
- Polyserver
This Agreement DOES NOT include right to
distribute:
- UNIFACE Development Licenses
- General Use UNIFACE Runtime
Licenses
- UNIFACE Mainframe Software
III. DEFINITIONS
(a) "Annual Maintenance Plan" means
the Support Services described herein
to be provided by Compuware to VAR for UNIFACE Software during a
one
year period.
(b) "VAR Application Software" means
the specific computer software
program developed by VAR using UNIFACE Software and containing
UNIFACE
Content as described in Exhibit 1. VAR Application Software
includes
Deployment Software.
(c) "UNIFACE Content" means software
developed with the UNIFACE
Development environment or containing elements of the UNIFACE
runtime
system. VAR software that meets the following criteria does not
contain UNIFACE Content: (i) sold as a separate line item by VAR
for
use with VAR Application Software; (ii) does not use any UNIFACE
data
access mechanisms to access data; (iii) can execute without using
any
element of UNIFACE; (iv) can execute on a system on which UNIFACE
is
not installed; (v) does not access the UNIFACE meta dictionary;
and
(vi) was not built using the UNIFACE development environment.
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CONFIDENTIAL AND PROPRIETARY
(d) "UNIFACE
Software" means the object code version of the
Compuware software program "UNIFACE Application Development
and Deployment System", listed in Exhibit I, in such form,
version, release and content as initially licensed to VAR
under this Agreement including a copy of any user
documentation normally supplied by Compuware.
(e)
"Deployment Software" means the object code, run-time portion
of UNIFACE Software incorporated in the VAR Application
Software.
(f)
"Development Software" means the development portion of
UNIFACE Software to be accessed and used solely by the VAR
only to develop, maintain or modify the VAR Application
Software, including VAR Application Software development or
enhancements for specific End User installation requirements.
(g) "End User"
means a VAR Application Software licensee.
(h)
"Proprietary Information" means UNIFACE Software, VAR
Application Software and any other information (including
business
information) confidential to Compuware or its
licensors, or confidential to VAR or its licensors which is
disclosed to Compuware by VAR or to VAR by Compuware.
(i) "Severity
One Defect" means a defect exclusively within the
Deployment Software that causes the VAR Application Software
to: (i) fail to execute; (ii) malfunction in a manner that
adversely affects data integrity in the database or in the
reporting of data; or (iii) sustain a highly visible error
with no available workaround.
(j) "Support
Services" as used herein means the standard Compuware
software maintenance services for UNIFACE Software, including
all copies of Development and Deployment Software. Such
Support Services are mandatory for UNIFACE Software licensed
to develop and support VAR Application Software and must be
procured on an annual bases. If VAR permanently discontinues
its use of a product it may elect to discontinue maintenance.
(k)
"Royalties" means the monies due to Compuware for each license
of VAR Application Software as set forth in Exhibit I.
(l) "Sales and
Marketing Purposes" means Deployment Software used
by VAR, its agents or distributors for sales, benchmarking, or
demonstrating the VAR Application Software. Said use shall be
limited to periods of up to 30 days per perspective End User.
(m) "Major
Release" is a new version of UNIFACE Software as
defined by Compuware that includes new functionality.
Typically, a Major Release is indicated by a change in release
number to the right of the decimal point (i.e. the conversion
from UNIFACE 7.1 to 7.2).
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(n)
"Maintenance Release" is a change made within one Major
Release that may contain bug fixes and/or improvements (e.g.,
from UNIFACE 6.1.d to UNIFACE 6.1 .e; from UNIFACE 7.1.01 to
7.1.02, etc.).
IV. TERMS AND
CONDITIONS
1.
Value Added Reseller License
(a) Compuware
grants VAR a non-exclusive, non-transferable license
to use UNIFACE Software only to market, develop and deploy VAR
Application Software upon the terms and conditions herein
contained on the platforms and in the operating environments
at the location identified on Exhibit I and in Product
Schedule(s). Such license for marketing will be limited for
use by VAR, its contractors, agents and distributors for Sales
and Marketing Purposes. Such license for development will be
limited for use by JDA employees or contractors to develop,
modify, enhance and maintain the VAR Application Software
defined in Exhibit I. Such license for deployment will be
limited to an authorized market and territory assignment as
defined in Exhibit I. Except as expressly hereby authorized,
VAR is not licensed by this Agreement to use the UNIFACE
Software for any other purpose. VAR agrees to maintain
sufficient development licenses to meet peak usage
requirements, such that at no time are there more development
licenses installed on VARs, VAR's contractors, or VAR's agents
machines than have been purchased by VAR.
(b) The
parties hereby agree and undertake at all times
during the term of this Agreement:
-
conduct business in a businesslike manner and not
engage in deceptive, misleading, illegal or unethical
business practices.
-
VAR will accurately represent the VAR Application
Software in terms of function and performance;
-
VAR will market the VAR Application Software only
pursuant to terms which are consistent with the terms
of this Agreement;
-
not make any representations, warranties or
guarantees that are inconsistent with or in addition
to those made in this Agreement;
-
VAR will provide End Users with technical and
maintenance support;
-
notify the other party
immediately of any legal or
other notices which come to such party's knowledge
and which may potentially affect the other party, its
licensors and/or vendors and,
-
VAR will promptly respond to any verified complaints
regarding VAR Application Software received from its
End Users.
(c) By paying
the fees then in effect, minus applicable discounts,
the UNIFACE Software may be licensed for use on qualified
alternate platforms and in additional operating environments.
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(d) Title to
UNIFACE Software will remain with Compuware. VAR will
acquire no rights to any UNIFACE Software, except to the
extent VAR acquires the right to use the UNIFACE Software to
market, develop and deploy VAR Application Software.
(e) Title to
VAR Application Software will remain with VAR.
Compuware will acquire no rights to any VAR Application
Software.
(f) Except for
subsidiaries that are at least fifty-one percent
(51%) owned or controlled by VAR, VAR shall not assign or
transfer its rights in, or obligations under, this Agreement
without the prior written consent of Compuware. In the event
of the sale of all or substantially all of VAR's assets,
Compuware will allow the new entity to license the UNIFACE
Software under substantially the same terms contained herein
at the then current published license fee, less the previously
paid license fees for the UNIFACE Software licensed to VAR.
Compuware reserves the right to withhold this option if the
new entity is a direct competitor of Compuware, an entity with
which
Compuware is involved in litigation, or an entity with
which Compuware has encountered a previous incidence of
intellectual property right infringement. Any assignment or
transfer prohibited by this provision will be void.
(g) In no
event is VAR authorized hereunder to enter into an
agreement with others to distribute, remarket or otherwise
sub-license VAR Application Software, other than those
distributors identified in Exhibit II, without the prior,
written consent of Compuware, which shall not be unreasonably
withheld. Any such agreement with others shall be limited to
the distribution of VAR Application Software and shall contain
no other rights or provisions that may jeopardize the
intellectual property rights of Compuware.
(h) The VAR
Application Software shall not contain Development
Software, and nothing in this Agreement shall authorize, grant
or otherwise permit the transfer or disclosure of Development
Software by VAR to others.
(i) VAR shall
observe all applicable laws and regulations in
respect of and obtain all necessary licenses, consents and
permissions required for the marketing and license of VAR
Application Software, (including without limitation, the U.S.
Export Administration Regulations and U.S. Department of
Commerce Regulations and EU dual use legislation and local
import and export regulations regarding the export or transfer
of goods), and VAR shall provide Compuware with all
information reasonably necessary to ensure that the UNIFACE
Software complies with local laws and regulations and promptly
advise Compuware of any change or proposed change in such laws
and regulations known to VAR.
(j) VAR and
Compuware may modify the Market and Territory
Assignment set out in Exhibit I by prior written agreement.
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(k) VAR
acknowledges that each copy of UNIFACE Software and the
Deployment Software included in VAR Application Software
licensed to an End-User will require a software enabling key
("SEK") that will be issued by Compuware upon receipt of: (i)
name and address of End-User, (ii) description of products,
(iii) Royalty, and (iv) description of the End-User's
infrastructure (i.e. Platforms, databases, etc.).
(l)
VAR shall
include in the VAR Application Software and on the
exterior label of every media, a copyright notice in this
form: "Portions of this program, Copyright 199___, Compuware,
All Rights Reserved." In cases where the VAR Application
Software is contained in Read-Only-Memory (ROM) chips, a
copyright notice in the form listed above, must be displayed
on the exterior of the chip and internally in the chip in
ASCII literal form.
(m) In order
to ensure that VAR will be capable of providing
support to End Users and as a condition to the right of VAR to
grant sublicenses to End Users pursuant to the terms of this
Agreement, VAR agrees that, with respect to each qualified
hardware, platform and operating system configuration set
forth on Exhibit I for which VAR intends to grant a
sublicense, VAR shall purchase a license from Compuware for
use of the UNIFACE Software on such designated platform and
configurations in the quantities required by VAR to develop
deploy,
maintain and support VAR Application Software, shall
install the UNIFACE Software on such designated platforms and
configuration and shall obtain and maintain the Support
Services for such UNIFACE Software.
(n) VAR shall
have the right to use VAR Application Software
incorporating the Deployment Software, without incurring any
obligation to pay royalties to Compuware in respect thereof,
for Sales and Marketing Purposes.
(o) VAR may
deliver copies of the VAR Application Software to a
prospective End User on a trial basis for evaluation purposes
only after such prospective End User has signed a trial
license with provisions comparable to those contained in the
Compuware Trial Agreement, a copy of which is attached as
Exhibit III hereto. All such evaluation copies of the VAR
Application Software installed by VAR at a prospective End
User's site shall be removed by VAR upon completion of the
evaluation period. Any evaluation copies not removed and
returned to VAR at the end of the evaluation period, which
includes any extension of such evaluation period, are deemed
to be licensed, and royalties and related maintenance and
support fees in respect thereof shall become immediately due
to Compuware.
(p) Compuware
reserves the right to License, support, install and
service its products, including without limitation UNIFACE
Software, either directly to End Users or through other VAR's,
representatives, distributors or other distribution channels.
VAR hereby acknowledges that Compuware may independently
develop, or have developed for it, sell and market either
directly or indirectly, products similar to the VAR
Application Software and
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nothing herein shall be deemed to give VAR an exclusive right
to develop or sell products similar to the VAR Application
Software. Notwithstanding anything in this Agreement to the
contrary, Compuware shall not market or license Deployment
Software to End Users for incorporation into VAR Application
Software. If Compuware does market Deployment Software to End
Users for incorporation into VAR Application Software, VAR
will not owe Compuware the applicable royalty for the VAR
Application Software that VAR licensed to such End User.
(q) VAR shall
maintain accurate books and records of all dealings
under this Agreement including any licensing of UNIFACE
Software and VAR Application Software and the furnishing of
support services; Such books and records shall be prepared and
maintained in a manner that will reasonably facilitate
Compuware's verification of each report prepared by VAR. Such
books and records shall be kept and maintained by VAR during
the term of this Agreement and for a period of not less than
three years from the date of the transaction. If this
Agreement is terminated, VAR shall transfer copies of all such
books and records to Compuware within a period of thirty (30)
days of such termination upon Compuware's written request.
(r) VAR agrees
to provide to Compuware a quarterly report setting
out the licensing and services furnished under the Agreement
including a reconciliation of royalties due Compuware in a
form substantially in the form of Exhibit IV. Such report
shall be submitted to Compuware no later than thirty (30) days
after the end of each calendar quarter in which this Agreement
is in effect.
In addition, VAR agrees to provide to Compuware a report of
each installation of VAR Application Software that report
shall include details of End Users (a purchase order that
includes End User name and address, description of products,
and description of infrastructure, i.e. platforms, databases,
etc.). Such report shall be submitted to Compuware upon the
installation and/or the license of the VAR Application
Software of the End User, whichever occurs sooner.
(s) Compuware
shall have the right, not more than once during each
of VAR's fiscal years, on reasonable notice and during normal
business hours to visit and inspect VAR's place of business
and applicable sales records to attempt to verify VAR's
compliance with its obligations under this Agreement.
Additionally, VAR agrees that Compuware shall have the right
to have VAR's books and records of sales audited by an
independent auditor of Compuware's choice not more than once
during each of VAR's fiscal years, but not during the months
of January or February. Such auditor's fees shall be borne by
Compuware, unless such audit shows an underpayment of
royalties of 5% or more of the royalties actually owing for
the period in question, in which event, the auditor's fees
shall be paid by VAR.
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2.
Sublicense of Deployment Software
(a) VAR agrees
to use, market and sublicense the Deployment
Software solely and exclusively as part of the VAR Application
Software for the exclusive use by its End Users on supported
UNIFACE Software platforms.
(b) VAR will
distribute the Deployment Software as incorporated in
the VAR Application Software to End Users only after VAR and
such End Users have entered into a software license agreement
containing substantially the following terms:
(i) End User
will not adapt, translate, decompile,
disassemble or create derivative works unless End
User licenses Source Code from VAR, in which case,
VAR shall 1) notify Compuware of End User's source
code license, 2) pay Compuware a royalty rate of
seven percent (7%) of the source code license fee,
and 3) VAR will require End User to license
appropriate number of Development Licenses.
(ii)
End User will not sublicense, rent, lease or
otherwise assign or transfer this Agreement or the
VAR Application Software. Notwithstanding the
foregoing, the End User can be permitted to assign or
transfer the license for "the VAR Application
Software provided that (i) Compuware receives advance
written notification, and (ii) the assignee or
transferee agrees in writing to be fully bound by the
terms and conditions of the software license
agreement. Variance with these terms will result in
the automatic termination of End User's license;
(iii) End
User may make a reasonable number of copies
necessary to exercise their license grants. End User
shall reproduce and include the copyright notice of
VAR and Compuware on any copy of the VAR Application
Software;
(v) End User
acknowledges and understands that portions
of the VAR Application Software are licensed to VAR
by Compuware;
(vi)
The copyright and other intellectual property rights
in the VAR Application Software except for the
Deployment Software are and at all times shall remain
the property of VAR or its licensors and End Users
agrees that the Application Software is for internal
data processing purposes of End Users and agrees not
to copy nor disclose the VAR Application Software to
others.
(vii)
Compuware regards the UNIFACE Software as proprietary
information and as trade secrets. End User agrees to
hold such proprietary information or trade secrets in
strictest confidence, not to disclose it to any third
party and to exercise the same degree of care (but no
less than reasonable care) to safeguard the
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confidentiality of such information as End User would
exercise to safeguard its own proprietary information
of a similar nature.
(viii) End User
agrees that Compuware shall have the right,
as an intended third-party beneficiary of this
Agreement, to rely upon and directly enforce the
terms set forth in this Agreement.
(c) VAR will
offer to provide End-User with ongoing support
service.
3. Orders, Delivery
And Acceptance
(a) All orders
for Development Software issued by VAR will be in
writing on a Product Schedule, will refer to and be subject to
the terms and conditions of this Agreement, the Product
Schedule and any Exhibits, and will be forwarded to the
Compuware managing office at the address set forth in Exhibit
I. Any additional terms and conditions contained on any
purchase
order or other VAR order document are of no force or
effect, and Compuware hereby gives notice of objection to such
additional terms. Orders will bind Compuware only when
accepted by written confirmation
(b) The
UNIFACE Software described in the Product Schedule(s) will
be deemed accepted by VAR upon VAR's execution of the Product
Schedule(s) or upon VAR's use of the UNIFACE Software,
whichever is earlier.
(c) Compuware
will package and ship UNIFACE Software in accordance
with its standard practices. Shipment will be by means
selected by Compuware. Risk of loss and damage will pass to
VAR upon delivery to VAR's location.
4. Fees
and Royalties
(a) Royalties.
In consideration of the rights granted herein, VAR
agrees to pay Compuware the license fees for the UNIFACE
Software as set out in Exhibit I and royalties for each copy
of VAR Application Software as set out in Exhibit I licensed
to use or accessed by an End User (except for evaluation
copies under Section IV.1(o), whether or not VAR has received
payment from End User. The royalties will be calculated as set
forth in Exhibit I and payable under the terms of this
Agreement.
(b) Support
Services Fees for UNIFACE Software and VAR Application
Software. VAR agrees to pay annual Support Services fees on
UNIFACE Software and Deployment Software by paying in advance
the Support Services fees set forth in Exhibit I.
5.
Payment Terms
(a) Payment of
License Fees and Support Services Fees. Invoices
will be issued by Compuware upon execution of the Agreement
and subsequent Product Schedules for all UNIFACE Software and
for Support Services.
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Support Service fees renew annually after the initial period.
Payment terms are net thirty (30) days from the date of
invoice and payable in US dollars.
(b) Payment of
Royalties and Support Services Fees. VAR shall pay
royalties and Support Services fees due Compuware within
thirty (30) days after the end of each month in which fees for
such royalties or End Users support fees were recognized.
Royalty and Support Services payments shall be made to
Compuware in US dollars.
(c) Compuware
may impose a late payment charge on all undisputed
unpaid fees and royalties equal to the lesser of (i) 1% per
month of the outstanding amount due or (ii) the maximum rate
allowed by law. If VAR becomes delinquent in the payment of
any amount due, Compuware may, among other remedies available
at law or in equity, suspend performance under this Agreement.
(d) If
Compuware fails to remedy Severity One Defects in the
UNIFACE
Software within a commercially reasonable period, VAR
may, among other remedies available at law or in equity under
this Agreement, with regard to those End Users who are under a
current maintenance program and are experiencing the Severity
One Defects problem:
(i) suspend
performance;
(ii)
cease to pay maintenance; and
(iii)
apply one of the following remedies with respect
to each End User experiencing the Severity One
Defects:
a)
withhold payment to Compuware in an amount
equal to UNIFACE Software royalties paid by
such Severity One experiencing End User; or
b)
receive a credit of royalty for the Severity
One experiencing End User where VAR issues a
credit as a result of Severity One Defects.
(e) If
Compuware fails to release a Major Release within 24 months
of the previous Major Release, the then current royalty rate
shall decrease (0.5%) for each year thereafter in which a
Major Release is not released ("Adjustment"). If Compuware has
not issued a Major Release within 24 months during a prepay
royalty period, the prepaid royalty rate will remain in effect
with the Adjustment after the expiration of the pre-paid
royalty period, until such time that a Major Release is
issued. At such time, the royalty rate will revert to the rate
specified in Exhibit I (the non-prepay royalty rate) or JDA
may elect to make an additional pre-payment at that time to
reinstate the 7% rate. Compuware will provide a credit to JDA
towards future royalties equivalent to the amount JDA would
have paid if no Adjustment(s) were made, less what JDA
actually paid with the Adjustment(s).
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6.
Support and Obligations Of VAR
(a) As between
Compuware and VAR, VAR shall be responsible for
first line support to End Users of the VAR Application
Software, whether or not VAR charges End User(s) for support.
VAR shall provide End Users on support for which maintenance
service was paid with (i) first line technical support by
maintaining a qualified support group, (ii) a service to
ascertain the nature of problems an End-User may be
experiencing and correct such problems, and (iii) other
related maintenance services.
(b) Annual
Maintenance Plan services and fees are mandatory for
both
UNIFACE Software and for Deployment Software for the
first year. Thereafter, VAR shall pay Compuware maintenance
for each Deployment Software for which it assesses maintenance
fees. Annual Maintenance Plan fees are set out in Exhibit I
and are payable annually in advance. If an Annual Maintenance
Plan is not continued, no support will be provided, including
providing of enhancements, new releases, or fixes and a new
version of ODBMS would require a royalty payment based on the
license fee charged by VAR.
7.
Obligations Of Compuware
(a) Compuware
will make available upon request, with reasonable
notice, to VAR's sales and technical staff sales collateral
materials as reasonably required regarding UNIFACE Software,
to use. Compuware will also make available upon request, with
reasonable notice, and at the expense of VAR, training
services. The type and cost for such training will be as
specified in a Product Schedule.
(b) VAR will
be entitled to the following services from Compuware:
-
the supply of any available Maintenance Release
and/or updates of the appropriate UNIFACE Software;
-
user documentation on payment of a charge for the
media, transportation and handling charges involved;
-
copies of Compuware's technical bulletin normally
furnished by Compuware to customers as and when the
same are published by Compuware;
-
non-exclusive access to technical hotline support
from Compuware
(c) The
technical hotline is only for use by employees or
contractors of VAR who received training in the use of UNIFACE
Software. VAR agrees to have at all times a staff of a minimum
of two (2) persons who received such training. The technical
hotline will only be used to resolve problems stemming from
the demonstrable failure of the UNIFACE Software to work in
accordance with Compuware user manuals as updated from time to
time. Any other use of the technical hotline by VAR will be
chargeable by
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Compuware in accordance with Compuware's normal practice and
payable by VAR within thirty (30) days of the date of
Compuware's invoice therefor.
(d)
VAR acknowledges
that the technical hotline is not for use by
End Users and shall not permit any End User to make direct use
of the technical hotline.
(e) Compuware
will provide VAR with (i) a reasonable quantity of
brochures and other sales promotion material at no charge and
(ii) periodic marketing communications and updates regarding
the UNIFACE Software. At VAR's request, Compuware will furnish
additional copies of any available non-proprietary materials
regarding the UNIFACE Software at Compuware's then current
cost.
(f) Additional
products and services are available from Compuware
at Compuware's then current rates and terms.
8.
Warranties And Disclaimers
(a) Compuware
warrants that UNIFACE Software delivered by
Compuware to VAR will operate on designated platforms in
substantial accordance with the specifications set forth in
Compuware user manuals.
(b) This
warranty does not apply to any UNIFACE Software that: (i)
has been altered; (ii) has not been handled, installed,
maintained, or operated in substantial accordance with
Compuware instructions; or (iii) has been damaged by accident,
misuse, negligence, or external factors.
(c) Compuware
warrants that any services furnished by it pursuant
to this Agreement will be performed with reasonable skill and
care consistent with industry standards.
(d) Compuware
warrants that it has all right, title and interest
in the UNIFACE Software necessary to grant the rights
contained herein.
(e) YEAR 2000
WARRANTY:
Provided payment for maintenance is current and Licensee has
installed the latest available Software release, Compuware
warrants that all new releases of the Software licensed
hereunder, marketed as "Year 2000 Compliant" and made
generally available after July 1, 1998 are enabled to process
post year 2000 dates. Specifically, Compuware defines year
2000 compliant as the Software being functional in a post year
2000 environment and will perform substantially as stated in
the Software documentation. Compuware Software may display
dates in either 2 or 4 digit year formats. If 2 digit year
displays are used, it will be clearly evident to the Software
user, based on Software function and documentation, that the 2
digit "00" represents the year 2000. When required, Software
will either process with 4 digit years and/or implement
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century windowing techniques to handle and process post year
2000 dates.
The above Year 2000 warranty shall be incorporated into the
Agreement and subject to all terms, conditions, restrictions
and limitations contained therein including, but not limited
to the Limitation of Liabilities and Indemnification.
(f) VIRUS:
Compuware warrants that it has taken reasonable steps
to test any Software delivered hereunder for Computer Virus
and that the Software is free of Computer Viruses as of the
date of delivery by Compuware and that Compuware will continue
to take such steps with respect to future enhancements or
modifications to the Software. "Computer Virus" is defined as
computer instructions that alter, destroy or inhibit the
Software and/or Licensee's processing environment, including,
but not
limited to, other programs that self-replicate without
manual intervention, instructions programmed to activate at a
predetermined time or upon a specific event, and/or programs
purporting to do a meaningful function but designed for a
different function. Compuware will maintain a master copy of
each version of the Software, to the best of Compuware's
knowledge to be free and clear of any Computer Virus.
(g)
VAR is relying on its own skill and judgment in relation to the
UNIFACE Software irrespective of any knowledge it or its
servants or agents may possess as to the purpose for which the
UNIFACE Software is supplied and Compuware makes no warranty
that the UNIFACE Software will meet VAR's requirements or those
of any End User.
(h)
Notwithstanding the foregoing, Compuware makes no warranty
that operation of the UNIFACE Software will be uninterrupted
or error-free, nor that the UNIFACE Software will be
compatible with and/or work in conjunction with any VAR
Application Software or any other software or hardware.
(i) EXCEPT AS
EXPRESSLY STATED IN THIS AGREEMENT, THERE ARE NO
WARRANTIES, EXPRESS OR IMPLIED, BY OPERATION OF LAW OR
OTHERWISE, AND ALL SOFTWARE, SERVICES AND OTHER ITEMS ARE
PROVIDED "AS IS" WITHOUT WARRANTY OF ANY KIND. COMPUWARE
DISCLAIMS THE IMPLIED WARRANTIES OF MERCHANTABILITY AND
FITNESS FOR A PARTICULAR PURPOSE AS TO BOTH COMPUWARE AND
NON-COMPUWARE PRODUCTS. ANY WARRANTIES MADE TO VAR UNDER THIS
AGREEMENT EXTEND SOLELY TO VAR.
9.
Limitations Of Liability And Indemnification
(a) VAR's sole
and exclusive remedies for damages from any cause
related to or arising out of this Agreement whether, based on
negligence, breach of contract, warranty or other legal
theory, will be those provided in this Agreement.
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CONFIDENTIAL AND PROPRIETARY
(b) IN NO
EVENT WILL EITHER PARTY BE LIABLE FOR: (I) ANY
INCIDENTAL, INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES
INCLUDING, BUT NOT LIMITED TO, LOSS OF USE, LOSS OF GOODWILL
OR THE DIMINUTION IN THE VALUE OF VAR'S BUSINESS, REVENUES,
PROFITS OR SAVINGS; OR (II) CLAIMS DEMANDS OR ACTIONS AGAINST
THE OTHER PARTY BY ANY PERSONS, EXCEPT AS PROVIDED IN SECTION
10, AND COMPUWARE'S RIGHT TO COLLECT LICENSE FEE'S OR REVENUE
DUE TO UNAUTHORIZED USE OF UNIFACE SOFTWARE. EXCEPT FOR CLAIMS
ARISING OUT OF EACH PARTY'S OBLIGATIONS UNDER SECTION 10,
VAR'S MISUSE OF COMPUWARE'S UNIFACE SOFTWARE, OR VAR'S
VIOLATION OF SECTION 12(A): CONFIDENTIALITY OF UNIFACE,
NEITHER PARTY'S LIABILITY FOR ANY AND ALL CAUSES, WHETHER
BASED ON NEGLIGENCE, BREACH OF CONTRACT, WARRANTY OR OTHER
LEGAL THEORY, SHALL EXCEED CHARGES PAID BY VAR TO COMPUWARE
FOR THE UNIFACE SOFTWARE THAT IS THE SUBJECT MATTER OF THE
CAUSE OF ACTION ASSERTED DURING THE TWENTY-FOUR (24) MONTH
PERIOD IMMEDIATELY PRECEDING NOTICE TO THE OTHER PARTY OF SUCH
CLAIM OR CAUSE.
(c) Each party
acknowledges that any breach of its obligations
with respect to proprietary rights of the other party may
cause such party irreparable injury for which there are
inadequate remedies at law and that Compuware shall be
entitled to seek equitable relief in addition to all other
remedies available to it.
(d) Except for
the remedies provided to VAR in this Agreement, and
subject to the limitations set forth in 9(b), and provided
Compuware provides VAR with prompt written notice, reasonable
assistance, and authority to defend or settle all non-UNIFACE
product or intellectual property right disputes, VAR will
indemnify and hold Compuware harmless against any claims,
costs, damages and liabilities arising out of or in any way
connected with: (i) any breach of this Agreement by VAR, its
employees or agents; and (ii) any claim by End Users or other
third parties with respect to VAR's products (excluding claims
based exclusively upon UNIFACE components independent of their
use with VAR Application Software) or other non-Compuware
products provided, recommended or referred by VAR. Such
indemnification will include all reasonable legal fees and
other costs incurred by Compuware in defending any such
claims. Termination or cancellation of this Agreement will not
affect VAR's indemnification obligations.
(e) Compuware
software licensors shall have no liability with
respect to any claim of VAR or a third party on account of,
resulting from, or arising out of the use of any software,
services or products provided by such licensor or derived from
such licensor's software. Compuware software licensors shall
have no obligation to furnish any assistance, information or
documentation with respect to any software, services or
products.
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CONFIDENTIAL AND PROPRIETARY
(f) Any legal
proceeding, regardless of form, arising out of this
Agreement must be commenced within two (2) years after the
cause of action first occurs or shall forever thereafter be
barred.
10. Patent,
Copyright and Trade Secret Indemnification
(a) Compuware,
at its own expense, will defend VAR against claims
that the UNIFACE Software furnished under this Agreement
infringe
upon any patent, copyright, trade secret or other
intellectual property rights, provided VAR; (i) gives
Compuware prompt written notice of such claims pursuant to
Section 14(g), (ii) permits Compuware to defend or settle the
claims, and (iii) provides all reasonable assistance to
Compuware in defending or settling the claims. Termination or
cancellation of this Agreement will not affect Compuware's
indemnification obligations.
(b) Compuware
shall have no obligation for or with respect to
claims, actions, or demands alleging infringement by VAR
Application Software based on any of the following:
-
unauthorized modification of the UNIFACE Software;
-
a Major Release of the UNIFACE Software other than
the current or one prior Major Release if the current
or prior Major Release would be non-infringing;
-
use of the UNIFACE Software in combination with
non-Compuware programs;
-
third party-software which form part of, or is
bundled with, the UNIFACE Software.
(c) As to any
UNIFACE Software which is in and of itself, in the
opinion of Compuware, subject to a claim of infringement or
misappropriation, Compuware may elect to; (i) obtain the right
of continued use and remarketing of the UNIFACE Software for
VAR as provided under this Agreement, or (ii) replace or
modify such UNIFACE Software to avoid such claim. If neither
alternative is, in the opinion of Compuware, available on
commercially reasonable terms and costs, then any applicable
license to VAR will terminate and Compuware will provide a
refund of the applicable royalty percentage rate equal to the
percentage of the VAR Application License Fee VAR refunds to
End User as determined by its negotiated End User agreements.
(d) Compuware
will not defend or indemnify VAR and shall have no
liability or responsibility for any claim of infringement or
misappropriation asserted by a parent or subsidiary of VAR.
(e) This
Section