EXHIBIT 10.0
TECHNOLOGY LICENSE AGREEMENT
This Technology License Agreement (the "Agreement") is made by and between
Oracle Corporation ("Oracle"), a Delaware corporation and InTime Systems
International, Inc. ("InTime"), a Delaware corporation.
RECITALS
A. Oracle designs, develops, markets, licenses and supports information
systems software products with a wide variety of uses, including
database management, applications development, decision support,
programmer management, programmer tools, computer network
communications, end user applications, and office automation.
B. InTime owns all rights, title, and interest in, or has been licensed by
the owner of, the InTime Technology (as hereinafter defined).
C. Oracle desires to promote, market and distribute sublicenses of the
InTime Technology through its worldwide distribution channels.
D. InTime desires to grant Oracle a license to market and sublicense the
InTime Technology as specified in this Agreement.
Therefore, in consideration of the mutual promises and covenants set forth
below, Oracle and InTime agree as follows:
ARTICLE I
DEFINITIONS
1.1 DISTRIBUTOR
"Distributor" shall mean a third party, including any Oracle subsidiary, that is
appointed by Oracle or its Distributor to market and sublicense InTime
Technology under the terms of this Agreement. The term "Distributor" shall
include, but not be limited to, resellers, original equipment manufacturers,
value added relicensors, dealers, agents, and subdistributors.
1.2 DOCUMENTATION
"Documentation" shall mean the installation guides, user guides and manuals for
use of the InTime Technology in printed and machine-readable form.
1.3 OBJECT MATERIALS
"Object Materials" shall mean materials, in machine-readable form, necessary to
run the InTime Technology, including all computer programming code,
substantially or entirely in binary form, which is directly executable by a
computer after suitable processing but without the intervening steps of
compilation or assembly and all help, message, and overlay files.
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1.4 ORACLE PROGRAM(S)
"Oracle Program(s)" shall mean the programs marketed and/or licensed by Oracle
with the InTime Technology.
1.5 SOURCE MATERIALS
"Source Materials" shall mean the complete source code from which Object
Materials are compiled. Source Materials shall include, without limitation, the
fully commented InTime Technology source code and internal system documentation
for the InTime Technology, as well as all other materials, in both machine
readable and hard-copy form which are used to develop or test the InTime
Technology. "Fully commented source code" shall mean source code that includes
all comments made by or for InTime. Source Materials shall include all
electronically readable source documentation, design documents, data models,
help materials, tutorial programs, and appropriate debug code, including those
developed by or for InTime during the term of this Agreement.
1.6 SUBLICENSE/SUBLICENSEE
"Sublicense" shall be any license granted by Oracle or its Distributors for use
of InTime Technology. "Sublicensee" shall be a party who is granted a
Sublicense, either directly by Oracle or indirectly by a Distributor.
1.7 UPDATES
"Updates" shall mean any releases of InTime Technology created after the
Effective Date, including bug fixes, improvements, enhancements, and other
changes thereto.
1.8 INTIME TECHNOLOGY
"InTime Technology" shall mean the computer software specified in EXHIBIT A
hereto owned or distributed by InTime and marketed by InTime under the trade
name "TAMS/O." Unless otherwise specified, "InTime Technology" shall include
Updates, Source Materials, Object Materials and Documentation.
ARTICLE II
LICENSES GRANTED
2.1 DEVELOPMENT AND TECHNICAL SUPPORT LICENSE
InTime shall deliver the InTime Technology (including a complete set of Object
Materials, Source Materials, Designer 2000 repository and Documentation) for all
available platforms for the InTime Technology, to Oracle on the Effective Date
of this Agreement. In addition, during the Term of this Agreement, InTime shall
deliver to Oracle the InTime Technology (including a complete set of Object
Materials, Source Materials, Designer 2000 repository and Documentation) for
additional platforms available for the InTime Technology after the Effective
Date when such additional platforms are first available but in no event later
than when such are delivered to any other InTime licensee. InTime shall deliver
all Updates of the InTime Technology promptly upon completion, and in no event
later than when such are delivered to any
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other InTime licensee. Subject to the terms of this Agreement, InTime grants to
Oracle a worldwide, perpetual, royalty-free, non-exclusive, paid-up right and
license to execute, copy, reproduce, display, perform, port, modify, develop,
translate, localize (including enhancements required for specific geographical
markets), create derivative works based on or otherwise use, change and/or
maintain the InTime Technology, including the Source Materials, Object
Materials, and Documentation.
Oracle shall have thirty (30) days after the Effective Date to inspect and test
the initial delivery of the InTime Technology at a location to be determined
mutually by the parties. In the event that Oracle, in its reasonable discretion,
determines that the InTime Technology does not perform as set forth in the
Documentation, Oracle may return the InTime Technology, terminate this Agreement
without penalty (notwithstanding the provisions of Section 6.2 below), and shall
not be required to pay any fees or royalties to InTime.
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2.2 SUBLICENSING LICENSE
2.2.A SCOPE OF LICENSE.
InTime hereby grants to Oracle a worldwide, non-exclusive right and
license to market, reproduce, distribute and grant Sublicenses of the
InTime Technology either separately, bundled or incorporated in the
Oracle Programs for use on all operating environments. Oracle shall use
the same or equivalent terms for sublicensing the InTime Technology as
it does for licensing Oracle's software products.
Oracle is also granted the right and license to sublicense Source
Materials to third parties to port or localize (including enhancements
required for specific geographical markets) the Source Materials and is
further granted the right and license to sublicense the InTime
Technology, including Source Materials, to Oracle subsidiaries under
the terms of the Agreement.
Oracle's sublicensing rights under this Agreement shall also include
the right to:
(i) for Sublicenses granted, make and deliver to
Sublicensees Object Materials copies of the InTime
Technology;
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(ii) reproduce and use the InTime Technology to provide
training and technical support to its Sublicensees;
(iii) reproduce and use the InTime Technology for
demonstrations to third parties and for preparing
documentation and marketing, promotional and other
materials to further Oracle's marketing and
distribution efforts under this Agreement;
(iv) reproduce and use the InTime Technology to the extent
necessary for marketing, supporting, distributing and
using the InTime Technology and for safekeeping and
archival purposes; and
(v) grant, at no charge, trial Sublicenses for a
reasonable period of time (but in no event longer
than the trial period for the Oracle Program with
which the InTime Technology is on trial) so that
Oracle's prospective Sublicensees and Distributors
may have the opportunity to evaluate the InTime
Technology.
2.2.B DISTRIBUTORS.
InTime grants Oracle the right to license, sublicense and authorize
Distributors to market and Sublicense the InTime Technology under the
terms of this Agreement, including Section 2.2 above, including the
right to license, sublicense and authorize other distributors to
exercise the same rights.
2.2.C TRADEMARKS.
Subject to the terms of this Agreement, Oracle and its Distributors are
entitled to market, reproduce, distribute and Sublicense the InTime
Technology under Oracle trademarks. InTime shall not have the right to
use such trademarks without the prior written approval of Oracle.
Nothing in this Agreement confers upon InTime any right to use Oracle's
trademarks, trade names or service marks in connection with any
product, service, promotion or publication. InTime shall not adopt any
trademark which is confusingly similar to any Oracle trademark or which
includes a prominent portion of any Oracle trademark.
Subject to the terms of this Agreement, InTime hereby grants to Oracle
and its Distributors a worldwide, nonexclusive, fully paid-up license
to use in connection with marketing the InTime Technology the product
name(s) and trademark(s) used by InTime to identify the InTime
Technology.
2.3 INTERNAL USE LICENSE
Oracle shall have the perpetual unrestricted right to reproduce, install and use
the InTime Technology, including Updates, for its own internal use at no
additional charge.
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Upon installation, such internal license shall be perpetual.
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2.4 OWNERSHIP AND INTELLECTUAL PROPERTY RIGHTS
Subject to the terms of this Agreement, InTime further grants to Oracle a
worldwide, irrevocable, nonexclusive, nontransferable and paid-up license to all
Intellectual Property Rights necessary to use the InTime Technology; such
Intellectual Property Rights are included in the licenses granted to Oracle
under this Agreement. Other than as licensed herein, InTime shall retain all
right, title and interest to the Intellectual Property Rights in the InTime
Technology. Oracle shall retain all right, title and interest to the
Intellectual Property Rights in the Oracle Programs and any ports, translations,
localizations (including enhancements required for specific geographical
markets), modifications, extensions or derivative works of the InTime Technology
that Oracle develops. Intellectual Property Rights shall include all patent,
copyright, trade secret, trademark and other intellectual property rights.
InTime shall take all action necessary to maintain the validity and
enforceability of InTime's Intellectual Property Rights in the InTime Technology
and shall promptly enforce its rights and remedies against third parties who
infringe such Intellectual Property Rights.
InTime warrants that the InTime Technology does not contain any third party
materials.
2.5 MARKETING
Except as expressly specified in this Agreement, Oracle shall have no obligation
to market the InTime Technology or any products containing the InTime Technology
if it so chooses, shall have full freedom and flexibility in the design and
implementation of its marketing efforts, and may discontinue any marketing
efforts at any time.
At Oracle's option, Oracle may assist InTime in InTime's public relations
efforts. Such assistance may include the issuance of press releases, reasonable
support for InTime public relations activities, participation in Oracle events
and demonstration space at Oracle's exhibits.
InTime agrees to provide one full-time InTime sales support person dedicated to
training Oracle sales personnel worldwide and assisting Oracle sales efforts in
the U.S. InTime shall compensate such person and pay all expenses associated
with such person's duties; provided, however, that Oracle shall reimburse InTime
for actual, reasonable travel costs incurred by such person while traveling
outside the U.S. to provide training to Oracle outside the U.S.
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InTime shall provide photo ready and electronic media, where applicable, of
product marketing materials for Oracle development of sales tool kits for the
InTime Technology. InTime shall also provide links to or provide appropriate Web
content for Oracle Corporate Repository.
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ARTICLE III
FEES AND PAYMENTS
3.1 SUBLICENSE FEES
Oracle will pay to InTime a fee ("Sublicense Fee") equal to *** of the Net Fees
Oracle receives for Sublicenses of the InTime Technology for use in the United
States, and *** of the Net Fees Oracle receives for Sublicenses of the InTime
Technology for use outside the United States. Net Fees shall mean fees received
by Oracle from its Sublicensees and from its Distributors net of any return
adjustments or sales, use or other taxes paid. In the event that Oracle or its
Distributors sublicenses the InTime Technology with other Oracle products or
services for a single price, Net Fees from such Sublicense shall equal the total
Net Fees from the Sublicense multiplied by a fraction A/ (A+B), where A equals
the list price of the InTime Technology (which is subject to Section 5.1.B.f)
sublicensed separately and B equals the list price of the other products or
services. If the InTime Technology is bundled in a site license or package deal,
and fees for the InTime Technology are not distinguishable from fees for other
Oracle products that are part of the site license or package deal, the Net Fees
for the InTime Technology shall be based on the fee allocation agreed to by
Oracle and the Sublicensee for the products specified in the site license or
package deal or on the fee allocation made by Oracle's internal procedures,
provided such allocation reasonably reflects the relative value of the InTime
Technology to the other Oracle products.
Subject to Section 3.5, Oracle and its Distributors are free to determine
unilaterally the pricing of InTime Technology Sublicenses to their Sublicensees
and Distributors.
No Sublicense Fee or other charge shall be payable by Oracle for any use of the
InTime Technology (i) for Oracle's internal use; (ii) for development, technical
support or maintenance activities; (iii) for marketing, updates, trial
Sublicenses, porting, documentation, demonstrations, training, educational uses,
or any other products or services; or (iv) as back-up copies. The foregoing
rights and licenses shall be deemed to be paid-up.
3.2 PREPAID SUBLICENSE FEES
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Oracle will prepay to InTime Sublicense Fees of $500,000 (the "Prepaid Fees")
net 60 days from the Effective Date of this Agreement. The Prepaid Fees shall be
applied against future Sublicense Fees due to InTime pursuant to Section 3.1
above until the earlier of (a) the date when the Prepaid Fees are used up and
(b) twelve (12) months after Oracle's first customer shipment of the InTime
Technology under this Agreement; provided, however, that in the event this
Agreement is terminated due to breach of this Agreement by InTime prior to the
occurrence of (a) and/or (b) InTime shall refund to Oracle any unused Prepaid
Fees.
3.3 TECHNICAL SUPPORT FEES
For so long as InTime provides Technical Support (as such term is defined in
Section 5.2.A) to Oracle, then for each Sublicensee of Oracle which purchases
technical support from Oracle for the InTime Technology, Oracle shall pay InTime
*** of Net Fees for InTime Technology used in the United States and *** of Net
Fees for InTime Technology used outside the United States.
3.4 REFUND OF FEES
For each Sublicensee which for any reason is dissatisfied as a direct result of
a problem with the InTime Technology which has been submitted to and logged by
InTime technical support services and has not been corrected in a timely manner,
Oracle shall have the right to offset any actual costs or in-kind payments of
products and/or services incurred by Oracle in attempting to correct such
dissatisfaction, in an amount up to *** the amount of the Sublicense Fees paid
to InTime for such Sublicensee, against the Prepaid Fees or against the next
payment due to InTime pursuant to Section 4.1, whichever is applicable;
provided, however, that if the number of problems with the InTime Technology is
so large so as to indicate a substantial quality problem with the InTime
Technology, then Oracle shall not have to submit these problems to InTime prior
to offsetting the items specified above in an amount up to *** the amount of the
Sublicense Fees paid to InTime for such Sublicensee against the Prepaid Fees or
against the next payment due to InTime pursuant to Section 4.1, whichever is
applicable. For each Sublicensee which is dissatisfied as a direct result of a
problem with the InTime Technology and for which Oracle takes action to satisfy,
Oracle shall provide InTime with a letter detailing what steps Oracle took to
attempt to satisfy the relevant Sublicensee (including, for example, what
services and/or products, if any, Oracle provided to the Sublicensee). Upon
InTime's request, Oracle will provide InTime copies of any pertinent records
reasonably related to the relevant Sublicensee letter.
3.5 PRICING OF SUBLICENSES GRANTED BY ORACLE
Except as set forth in this Section 3.5, Oracle and its Distributors are free to
determine unilaterally the pricing of InTime Technology Sublicenses to their
Sublicensees and Distributors.
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ARTICLE IV
PAYMENT TERMS AND REPORTING
4.1 PAYMENT TERMS
Within forty-five (45) days of the end of each quarter, Oracle shall pay to
InTime all Sublicense Fees accruing to InTime for that particular quarter.
Sublicense Fees shall be deemed to accrue in the quarter in which the revenue is
recognized. For the purposes of this Agreement, "quarters" shall be deemed to
commence on the first day of June, September, December, and March of each year
of this Agreement.
4.2 REPORTING
******************************************, Oracle shall send InTime a report
detailing, for that month, the revenues due to InTime under this Agreement as a
result of Oracle's and its Distributors' Sublicensing activities under this
Agreement. InTime acknowledges that Oracle will make commercially reasonable
efforts to provide reports within the time period specified in this Section and
agrees that Oracle's failure to provide any report within the time period
specified shall not constitute a breach of this Agreement.
4.3 RECORDS; INSPECTION
Oracle shall keep accurate books of account and records pertaining to the
Sublicense activities and revenues of Oracle and the Sublicense revenues from
its Distributors. No more than once during any twelve (12) month period, InTime,
at InTime 's sole expense, shall be entitled to employ an independent Certified
Public Accountant who is not compensated based on the results of the audit, and
who is acceptable to Oracle (which acceptance shall not be unreasonably
withheld), to inspect such books of account and records upon reasonable notice
to Oracle, and at a reasonable time during normal business hours for the purpose
of verifying the Sublicense Fees payable to InTime pursuant to this Agreement.
Unless necessary to establish in a court of law InTime's right to payment of
Sublicensee fees payable hereunder, InTime's auditor shall hold all information
obtained in strict confidence; shall not disclose such information to any other
person or entity (except InTime or its Board of Directors or shareholders)
without Oracle's prior written consent; and shall not disclose to InTime any
information regarding Oracle's business other than any noncompliance by Oracle
with the fees payment provisions hereof.
ARTICLE V
TECHNICAL RESPONSIBILITIES
5.1 ORACLE RESPONSIBILITIES
5.1.A TECHNICAL RESPONSIBILITIES
Oracle and its Distributors shall provide technical support to their
Sublicensees and Distributors.
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5.2 INTIME TECHNICAL SUPPORT RESPONSIBILITIES
5.2.A ONGOING SUPPORT SERVICES.
InTime will provide Oracle with the technical support services
("Technical Support") as specified in EXHIBIT B. InTime will continue
to provide Technical Support during the Term of this Agreement, unless
otherwise specified in Section 6.1.
Oracle may use the Source Materials retained under this Agreement for
the purpose of continuing technical support for existing Sublicenses
notwithstanding expiration or earlier termination of this Agreement,
subject to the other terms of this Agreement.
5.2.B TECHNICAL SUPPORT TRAINING RESPONSIBILITIES.
For the period starting with the Effective Date and ending one year
from the Effective Date, InTime shall provide InTime Technology
technical support training in an amount which InTime deems necessary
for up to six Oracle technical support personnel at no charge to
Oracle.
5.3 INTIME DEVELOPMENT RESPONSIBILITIES
InTime agrees to the following ongoing product development activities, subject
to Oracle's reasonable review and approval:
a. InTime shall adopt Oracle product documentation standards and
formats and shall provide electronic and hardcopy
documentation to Oracle for distribution by Oracle.
b. InTime shall adhere to Oracle's QA practices and standards and
shall ensure that the InTime Technology is compatible with
supported releases of Oracle HRMS and other Oracle Programs
with which it may be integrated.
c. InTime shall adopt Oracle's product testing procedures.
d. InTime shall make upgraded releases of the InTime Technology
compatible with designated upgraded releases of the Oracle
applications, data bases and underlying technology
commercially available concurrently with the upgraded releases
of the Oracle Programs.
e. InTime shall adopt Oracle's standards and practices for InTime
Technology release management and version control. InTime
shall provide technical resources for release management and
version control managed at Oracle facilities.
f. InTime shall review proposed enhancements with Oracle and
incorporate enhancements requested by Oracle into the InTime
Technology that are essential for competitive positioning or
new market penetration.
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InTime will provide a monthly minimum amount of free engineering support to
Oracle for the above activities ("Monthly Minimum").
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Oracle, in its reasonable discretion, may request that InTime remove a
particular person who is providing engineering support under this Agreement and
InTime agrees to replace such person within a reasonable time. Oracle shall
decide to which projects the Monthly Minimum specified above shall be applied.
For any additional engineering support required by Oracle, Oracle may, at its
sole discretion, pay InTime on a time and materials basis to provide such
additional support, or Oracle may perform such work itself. Oracle shall own all
rights to such work performed by InTime or Oracle.
ARTICLE VI
TERM AND TERMINATION
6.1 TERM
6.1.A INITIAL TERM.
This Agreement shall become effective on the Effective Date, and
subject to Sections 6.1.B, 6.1.C and 6.2 below, shall be effective for
five (5) years from the Effective Date.
6.1.B BUY OUT OPTION.
Beginning with the date one year from the Effective Date and ending
upon the termination of this Agreement, in consideration and exchange
for the payments by Oracle described in Section 6.1.C (i), Oracle shall
have the option (the "Option") to acquire from InTime: (i) a worldwide,
perpetual, royalty-free, irrevocable, nonexclusive right and license to
modify, develop, translate, create derivative works of or otherwise
use, change and/or maintain the InTime Technology, including the Source
Materials; and (ii) transformation of all of the licenses granted by
InTime to Oracle under this Agreement (subject to Section 6.1.C (i))
into worldwide, perpetual, royalty-free, irrevocable, nonexclusive,
paid-up licenses. In the event Oracle exercises the Option, any changes
made to the Source Materials by Oracle after the date Oracle exercises
the Option (the "Exercise Date") shall be the property of Oracle.
6.1.C EFFECT OF BUY OUT OPTION.
In the event Oracle exercises the Option, in addition to the provisions
of Section 6.1.B,
(i) Oracle shall pay InTime the Sublicense Fees for the InTime
Technology as provided in Section 3.1 for a period of three
years from the Exercise Date; after such three year period,
the distribution and sublicensing licenses granted to Oracle
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under this Agreement for the InTime Technology shall become
fully paid-up and royalty-free;
(ii) InTime shall have no further product development (as described
in Section 5.3 above) or update responsibilities to Oracle,
provided, however, that for three years after the Exercise
Date, InTime shall continue its support of Oracle sales
activities in accordance with Section 2.5, and shall continue
to provide to Oracle telephone technical support and error
correction for bugs attributable to the InTime Technology;
(iii) Oracle shall have no obligation to provide the
responsibilities described in Section 5.1.B above;
(iv) After the Exercise Date, Oracle shall have no further
obligation to pay InTime technical support fees pursuant to
Section 3.3;
(v) the license granted to InTime pursuant to Section 2.6 shall
immediately terminate; and
(vi) the licenses granted to InTime pursuant to Section 2.3 shall
remain in effect for a period of three years from the Exercise
Date; after such three year period, such licenses shall
terminate and InTime shall cease using the Applications and
the Restricted Use Program and certify to Oracle that it has
destroyed or returned such programs to Oracle.
6.2 TERMINATION OF THE AGREEMENT
6.2.A BREACH
In addition to termination of this Agreement due to Oracle's exercise
of the Option described in Section 6.1.B. above, if either party
materially breaches this Agreement and fails to correct the breach
within ninety (90) days following written notice specifying the breach,
or fails to commence to correct the breach within such 90-day period if
the breach cannot reasonably be cured within 90 days and thereafter
makes good faith efforts to remedy such breach, then the nondefaulting
party may terminate this Agreement, after expiration of such cure
period, upon written notice of termination to the defaulting party.
6.2.B FORCE MAJEURE.
Neither party shall be liable to the other for failure or delay in the
performance of a required obligation if such failure or delay is caused
by riot, fire, flood, explosion, earthquake or other natural disaster,
government regulation, or other similar cause beyond such party's
control, provided that such party gives prompt written notice of such
condition and resumes its performance as soon as possible, and provided
further that the other party may terminate this Agreement if such
condition continues for a period of one hundred eighty (180) days.
6.3 RIGHTS UPON TERMINATION
6.3.A CONTINUED RIGHTS.
The termination of this Agreement shall not affect any paid-up right or
license granted hereunder. In the event of termination of this
Agreement, in whole or in part, any
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Sublicense granted by Oracle or its Distributors prior to such
termination, shall survive and continue. Without limiting the
generality of the foregoing, subject to Section 3.1, (i) Oracle may
Sublicense and distribute any inventory of the InTime Technology,
including work in process, on hand at the time of such termination,
(ii) Oracle may continue to exercise the rights and licenses granted
hereunder for a period of up to six (6) months after termination to
fill any orders received by Oracle or its Distributors from
Sublicensees prior to the effective date of termination, and (iii)
Oracle may continue to exercise the rights and licenses granted
hereunder as necessary to provide maintenance and technical support for
Sublicensees.
6.3.B USE OF SOURCE MATERIALS.
If (a) InTime materially breaches this Agreement and fails to timely
cure such breach, and Oracle terminates this Agreement for cause, or
(b) any of the following events occur: (i) any assignment of
substantially all of InTime's assets for the benefit of creditors or
the appointment of a receiver to take possession of substantially all
of InTime's assets, (ii) any dissolution of or substantial attachment
or execution of judgment against InTime's assets unless vacated or
dissolved within 45 days, or (iii) the filing of any voluntary or
involuntary petition in bankruptcy, or any similar law, by or against
InTime which is not dismissed within forty-five (45) days of filing,
then Oracle, at its option and upon notice to InTime, shall receive and
have perpetual rights to:
(i) All Source Materials, Object Materials, Documentation, and
other materials related to the InTime Technology then in
Oracle's possession;
(ii) The right to make all necessary changes, modifications,
additions, enhancements and mergers to the InTime Technology
including, without limitation, development of future
enhancements to the InTime Technology; and
(iii) A perpetual worldwide, royalty-free license to market and
Sublicense the InTime Technology then in Oracle's possession.
6.3.C SURVIVAL.
In addition to the provisions of Sections 6.3.A and 6.3.B above, the
parties' rights and obligations under Sections 2.3 (Internal Use
License, only the first paragraph), 2.4 (Intellectual Property Rights),
3.1 (Sublicense Fees, solely to the extent required by Section 6.3.A),
6.1.A. (Term), 6.2 (Termination of the Agreement), 6.3 (Rights Upon
Termination), 8.1 (Nondisclosure), 8.4 (Assignment), and Article VII
(Representations and Warranties) shall survive expiration or
termination of this Agreement. In addition, if termination of this
Agreement is due to Oracle's exercise of the Option described in
Section 6.1.B. above, then the following additional provisions (as
amended by Section 6.1) shall also survive such termination: the
license granted to Oracle in Section 2.1 (Development and Technical
Support License); Section 2.2 (Sublicensing License); Section 3.1
(Sublicense Fees); Article IV (Payment Terms and Reporting); Section
6.1.B; and Section 6.1.C.
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ARTICLE VII
REPRESENTATIONS AND WARRANTIES
7.1 NO CONFLICT
InTime represents and warrants that it is under no obligation or restriction,
nor will it assume any such obligation or restriction, that does or would in any
way interfere or conflict with, or that does or would present a conflict of
interest concerning, the performance to be rendered by InTime or the rights and
licenses granted to Oracle herein.
7.2 INTELLECTUAL PROPERTY WARRANTY AND INFRINGEMENT INDEMNITY
InTime represents and warrants that (a) InTime is the sole owner of the InTime
Technology, (b) InTime has full and sufficient right and title to assign or
grant the rights and/or licenses granted to Oracle under this Agreement, (c) the
InTime Technology has not been published under circumstances which have caused a
loss of Intellectual Property Rights therein, and (d) the InTime Technology does
not infringe any Intellectual Property Rights, privacy, publicity or similar
rights of any third party, nor has any claim (whether or not embodied in an
action, past or present) of such infringement been threatened or asserted, and
no such claim is pending against InTime or, insofar as InTime is aware, against
any entity from which InTime has obtained such rights.
InTime shall, at InTime's expense, indemnify, defend and hold Oracle and its
directors, officers, employees, agents, Distributors and Sublicensees harmless
from and against any and all liabilities, losses, damages, costs and expenses
(including reasonable attorneys fees) incurred by Oracle in connection with any
claim that the InTime Technology licensed and used within the scope of this
Agreement infringes an Intellectual Property Right of any third party, provided
that: (a) Oracle promptly notifies InTime in writing of the claim, and (b) at
InTime's request and expense, Oracle provides InTime with all reasonable
assistance, information and authority to perform the foregoing. Neither party
will enter into a settlement agreement regarding the InTime Technology without
the other party's written consent, which consent will not be unreasonably
withheld.
InTime shall have no liability for any claim of infringement if such
infringement is caused by modifications made by Oracle to the InTime Technology
and the unmodified InTime Technology does not infringe the third party's
Intellectual Property Rights.
In the event the InTime Technology is held or is believed by InTime to infringe,
InTime shall have the option, at its expense to: (a) modify the InTime
Technology to be non-infringing while retaining full functionality and
equivalent performance; or (b) obtain for Oracle, at no additional cost to
Oracle, a license to continue using the InTime Technology.
Failure to comply with the obligations described in this Section 7.2 shall
constitute a material breach of this Agreement.
7.3 PRODUCT WARRANTY
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InTime warrants that the InTime Technology will perform the functions, and
comply in all material respects with the specifications, described in the
Documentation when operated on the appropriate hardware/operating system
environment. THIS WARRANTY IS THE EXCLUSIVE PRODUCT WARRANTY AND IN LIEU OF ALL
OTHER PRODUCT WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO
IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.
7.4 LIMITATION OF LIABILITY
EXCEPT FOR LIABILITY UNDER SECTION 7.2 ABOVE, (i) NEITHER PARTY SHALL HAVE ANY
LIABILITY FOR ANY INDIRECT, INCIDENTAL, SPECIAL, OR CONSEQUENTIAL DAMAGES,
INCLUDING BUT NOT LIMITED TO RELIANCE, COVER, OR LOSS OF ANTICIPATED PROFITS,
EVEN IF THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES; AND (ii)
NEITHER PARTY'S LIABILITY FOR DAMAGES RELATING IN ANY WAY TO THIS AGREEMENT OR
THE CONDUCT OF THE PARTIES IN FURTHERANCE HEREOF UNDER ANY LEGAL THEORY, WHETHER
CONTRACT, TORT, PRODUCT LIABILITY, BREACH OF IMPLIED DUTY, OR OTHERWISE SHALL
EXCEED ******
*** CONFIDENTIAL TREATMENT REQUESTED
PORTIONS OMITTED AND FILED SEPARATELY
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
The provisions of this Article VII allocate the risks under this Agreement
between InTime and Oracle and are an intrinsic part of the bargain between the
parties. The fees provided for in this Agreement reflect this allocation of
risks and the limitation of liability specified herein.
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ARTICLE VIII
MISCELLANEOUS
8.1 NONDISCLOSURE
8.1.A GENERAL.
It is expected that the parties may disclose to each other certain
information which may be considered confidential and trade secret
information ("Confidential Information"). Confidential Information
shall include: (a) the InTime Technology and the Oracle Programs; (b)
Confidential Information disclosed by either party in writing that is
marked as confidential at the time of disclosure; or (c) Confidential
Information disclosed by either party in any other manner and is
identified as confidential at the time of disclosure and is also
summarized and designated as confidential in a written memorandum
delivered to the receiving party within thirty (30) days of the
disclosure.
Confidential Information shall not include information which: (a) is or
becomes a part of the public domain through no act or omission of the
other party; (b) was in the receiving party's possession before receipt
from the party providing such Confidential Information; (c) is
rightfully received by the receiving party from a third party without
any duty of confidentiality; (d) is disclosed to a third party by the
party providing the Confidential Information without a duty of
confidentiality on the third party; (e) is independently developed by
the other party; (f) is disclosed under operation of law; or (g) is
disclosed with the prior written approval of the party providing such
Confidential Information.
All Confidential Information owned solely by one party and disclosed to
the other party shall remain solely the property of the disclosing
party. The parties agree, both during the term of this Agreement and
for a period of five (5) years after termination or expiration of this
Agreement to hold each other's Confidential Information in confidence
and to protect the disclosed Confidential Information by using the same
degree of care to prevent the unauthorized use, dissemination or
publication of the Confidential Information as they use to protect
their own confidential information of a like nature. The parties agree
not to make each other's Confidential Information available in any form
to any third party or to use each other's Confidential Information for
any purpose other than the implementation of this Agreement. Each party
agrees to restrict disclosure of the Confidential Information to those
of its employees who have a "need to know" and to take all reasonable
steps to ensure that Confidential Information is not disclosed or
distributed by its employees in violation of the provisions of this
Agreement.
In addition, notwithstanding the above, each party may use the
residuals from the other party's Confidential Information. The term
"residuals" as used in this paragraph shall mean the Confidential
Information in nontangible form (i.e., not in written or other
documentary form, including tape or disk) which may be retained by
those employees of InTime or Oracle who have had access to the other's
Confidential Information, including ideas, concepts, know-how, or
techniques contained therein. Neither party shall have any
Page: 15
obligation to limit or restrict the assignment of such employees or
independent contractors or to pay royalties for any work resulting from
the use of residuals.
8.1.B PROTECTION OF SOURCE MATERIALS.
Oracle may provide the Source Materials to its Sublicensees and
Distributors, and deposit Source Materials in escrow, provided that the
Source Materials are subject to protections that are equivalent to the
contract provisions which Oracle has used to protect the source
materials for its own software products.
In all actions taken by Oracle under this Section 8.1, Oracle shall
protect, and shall cause its Sublicensees and Distributors to protect,
the Source Materials for the InTime Technology with at least the same
degree of care as Oracle uses to protect Oracle's own proprietary
technology.
8.2 INDEPENDENT DEVELOPMENT/FREEDOM OF ACTION
Each party acknowledges that the other party is in the software development
business. Notwithstanding anything to the contrary in this Agreement, nothing in
this Agreement shall be construed to preclude either party from developing,
using, marketing, licensing, and/or selling any independently developed software
which has the same or similar functionality as InTime Technology or any other
products, so long as such activities do not infringe the Intellectual Property
Rights of the other party.
Additionally, nothing in this Agreement shall be construed to limit Oracle's
right to obtain services or software programs from other sources, to prohibit
either party from acquiring and marketing competitive materials, to restrict
Oracle from making, having made, using, marketing, leasing, licensing, selling
or otherwise disposing of any products or services whatsoever, nor to limit
Oracle's right to deal with any other vendors, suppliers, contractors or
customers.
8.3 GOVERNING LAW AND JURISDICTION
This Agreement, and all matters arising out of or relating to this Agreement,
shall be governed by the procedural and substantive laws of the State of
California and shall be deemed to be executed in Redwood City, California. Any
legal action or proceeding relating to this Agreement shall be instituted in a
state or federal court in San Francisco or San Mateo County, California. Oracle
and InTime agree to submit to the jurisdiction of, and agree that venue is
proper in, these courts in any such legal action or proceeding.
8.4 ASSIGNMENT
Except for an assignment by Oracle to any parent corporation, affiliate,
subsidiary, or successor in interest to Oracle, neither party may assign any
rights, duties, obligations or privileges under this Agreement without the prior
written consent of the other party, which consent shall not be unreasonably
withheld.
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8.5 NOTICE
All notices required to be given hereunder shall be in writing and shall be
deemed to have been given upon deposit in first class mail, sent through a
nationally recognized courier service, or transmission by confirmed
telefacsimile as follows:
For InTime: InTime Systems International, Inc.
0000 Xxxxx Xxxxx, Xxxxx 000
Xxxx Xxxx Xxxxx, XX 00000
Attn: Xxx Xxxx
For Oracle: Oracle Corporation
000 Xxxxxx Xxxxxxx
Xxxxxxx Xxxxxx, XX 00000
Attn: General Counsel
8.6 RELATIONSHIP BETWEEN THE PARTIES
In all matters relating to this Agreement, Oracle and InTime shall act as
independent contractors. Neither party will represent that it has any authority
to assume or create any obligation, expressed or implied, on behalf of the other
party, or to represent the other party as agent, employee, or in any other
capacity. Neither party shall have any obligation, expressed or implied, except
as expressly set forth herein.
8.7 PUBLICITY
Except for a mutually agreed-upon press release to be issued by the parties
relating to the subject matter of this Agreement or as required by law, neither
party shall disclose to any third party any details of this Agreement, or even
the fact of its existence, or that Oracle uses InTime Technology in the Oracle
Programs without the specific prior written approval of the other party, which
approval shall not be unreasonably withheld.
8.8 INTERPRETATION
This Agreement, including any exhibits, addenda, schedules and amendments, has
been negotiated at arm's length and between persons sophisticated and
knowledgeable in the matters dealt with in this Agreement. Each party has been
represented by experienced and knowledgeable legal counsel. Accordingly, any
rule of law (including California Civil Code Section 1654) or legal decision
that would require interpretation of any ambiguities in this Agreement against
the party that has drafted it is not applicable and is waived. The provisions of
this Agreement shall be interpreted in a reasonable manner to effect the
purposes of the parties and this Agreement.
8.9 ENTIRE AGREEMENT
This Agreement sets forth the entire Agreement between the parties and
supersedes prior proposals, agreements, and representations between them,
whether written or oral, relating to the subject matter contained herein. This
Agreement may be changed only if agreed to in writing and signed by an
authorized signatory of each party.
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8.10 EXPORT
The parties agree to comply fully with all laws and regulations to assure that
neither InTime Technology, nor any direct product thereof, is exported, directly
or indirectly, in violation of law. Upon Oracle's request, InTime shall advise
Oracle of all relevant export classifications of the InTime Technology and shall
promptly advise Oracle of any changes with respect to such classification.
8.11 SEVERABILITY
If any provision or provisions of this Agreement shall be held to be invalid,
illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.
8.12 COUNTERPARTS
This agreement may be executed in several counterparts, each of which shall be
deemed an original, but all of which together shall constitute one and the same
instrument.
8.13 NO WAIVER
The failure of any party to enforce any of the provisions hereof shall not be
construed to be a waiver of the right of such party thereafter to enforce such
provisions.
The undersigned hereby acknowledge that they have read and that they fully
understand the terms of this Agreement. The undersigned hereby agree that by
signing below they become parties to this Agreement and agree to be bound by all
terms, conditions, and obligations contained herein.
The Effective Date of this Agreement shall be January __, 1997.
ORACLE CORPORATION INTIME SYSTEMS
INTERNATIONAL, INC.
By:_________________________ By:_________________________
Name:_______________________ Name:_______________________
Title:________________________ Title:________________________
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EXHIBIT A
THE INTIME TECHNOLOGY
InTime Technology is designed to automatically generate time records and
appropriate payroll entries from employees' schedules and to accommodate the
direct entry of time information.
The system is fully integrated within the Oracle HRMS systems and has been
developed utilizing the Oracle Designer/Developer 2000 series of tools. The
InTime Technology was awarded Oracle's Common Application Initiative approval
(CAI) on March 7, 1996.
The functional and technical descriptions of the InTime Technology are defined
in the following manuals:
/bullet/ TAMS/O Users Guide - Release 3.1 o
/bullet/ TAMS/O Technical Reference Manual - Release 3.1 o
/bullet/ TAMS/O Installation Guide - Release 3.1
/bullet/ TAMS/O Implementation Guide - Release 3.1
/bullet/ TAMS/O Applications Reference Manual - Release 3.1
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EXHIBIT B
TECHNICAL SUPPORT
DESCRIPTION OF SERVICES AND MATERIAL
/bullet/ REAL TIME TELEPHONE TECHNICAL ASSISTANCE
Telephone access to InTime's Support Organization through a number
dedicated to Oracle Worldwide Support. Worldwide Support will ensure
that this dedicated number is not distributed to customers. Before
contacting InTime support, Oracle's first line of telephone support
shall consist of support specialists in the Worldwide Support Centers
making reasonable efforts to solve problems that are not product
defects. If unable to solve a problem, Worldwide Support will deliver
problems in a mutually agreed upon format which, when appropriate, will
contain the necessary information to allow the InTime's support and
development organization to recreate the problem for study and
resolution.
Telephone access shall include but not be limited to consultation,
assistance, advice, problem solving, bug reporting, documentation
clarification, and technical guidance during InTime support hours of
8:30 AM to 5:00 PM Eastern Standard Time (EST).
Access to a InTime Senior Support Representative familiar with the
InTime Technology and having access to development personnel available
to Oracle Worldwide Support 24 hours a day 7 days a week by pager
access to respond to TARs of Severity Level 1 as defined below reported
by Sublicensees of Oracle with maintenance contracts requiring extended
hours or located in time zones whose normal business hours differ from
the above specified business hours of the InTime Support Center. Pager
access may also be used for the escalation of existing TARs to Severity
Level 1. In either case InTime will respond to a page within 30
minutes.
/bullet/ DOCUMENTATION
InTime shall supply three complete sets of system level and user level
documentation to Oracle Worldwide Support for distribution to Oracle's
Worldwide Support Super Centers. Updates to this documentation shall be
supplied in a timely manner as they become available, but no later than
shipment of beta releases of the software to InTime's customers.
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/bullet/ PROGRAM TECHNICAL SUPPORT UPDATES
Patches and fixes
General maintenance releases
Functional releases
All of the above no later than when they are first made available to
any other InTime distributor or licensees
Back porting will be required for patches and fixes which correct
problems reported against the most recent release of InTime Technology
supported by Oracle Worldwide Support. These release versions may not
necessarily be the latest InTime release.
/bullet/ SUPPORT SYSTEMS ACCESS
Access to the information contained in InTime's Support Call Tracking
System as it relates to Oracle's support of the InTime Technology. This
information will be available to Oracle with any third party software
or translation and production costs borne by Oracle. Oracle and InTime
will work together to evaluate the scope of the effort and appropriate
timing of developing further electronic interfaces between Oracle's and
InTime's support systems.
/bullet/ MAIL SERVER ACCESS
General electronic communication with InTime's Support Center available
via an Internet mail ID.
Electronic mail can serve as a means for Oracle Worldwide Support to
enter Severity 2 and 3 TARs after InTime 's normal business hours, to
escalate incidents to InTime, and to send status updates.
TECHNICAL ASSISTANCE REQUEST (TAR) SEVERITY LEVELS
The chart below lists the standard Technical Assistance Request Severity Levels.
InTime shall use its best efforts to respond to Oracle's requests based on the
Severity Levels set forth below.
SEVERITY LEVEL
SEVERITY 1
CRITICAL BUSINESS IMPACT
Sublicensee's work is stopped or so severely impacted that the Sublicensee
cannot reasonably continue to work. If Worldwide Support finds it necessary to
contact InTime either by phone during InTime normal business hours (8:30 AM to
5:00 PM EST Monday - Friday) or by pager after normal business hours, InTime
shall respond within 1 hour. InTime shall work around the
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clock in providing a fix or acceptable work around to Worldwide Support for the
Sublicensee for a Severity 1 problem. Oracle shall provide InTime with
reasonable assistance until such a fix or acceptable work around is provided.
SEVERITY 2
SEVERE BUSINESS IMPACT
Sublicensee's work is continuing (not stopped) however there is serious impact
on the Sublicensee's productivity and/or service levels. If Worldwide Support
finds it necessary to contact InTime by phone during the above normal business
hours, InTime shall respond within 30 minutes. In the event Worldwide Support
contacts InTime via electronic messaging outside normal business hours, InTime
shall respond within 1 hour of the resumption of normal business hours. InTime
shall use best efforts to provide a fix or acceptable work around which
Worldwide Support my deliver to the Sublicensee within 3 days of the request
from Worldwide Support.
SEVERITY 3
MINOR BUSINESS IMPACT
Sublicensee is in full working mode, there is no work being impeded at the time,
information or solutions are requested by the Sublicensee as soon as possible to
answer the question or correct the problem. If Worldwide Support finds it
necessary to contact InTime by phone during the above normal business hours,
InTime shall respond within 1 hour. In the event Worldwide Support contacts
InTime, via electronic messaging outside normal business hours, InTime shall
respond within 1 hour of the resumption of normal business hours. InTime shall
use best efforts to provide a fix or acceptable work around which Worldwide
Support may deliver to the Sublicensee within 7 days of the request from
Worldwide Support.
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