SOFTWARE SALE AND USE AGREEMENT
This agreement is entered into by and between Divergent Technologies
(Pty) Limited, (ACN 003 908 325), ("Seller") and Resource Control Management
Ltd. ("Buyer"). The effective date of this agreement is September 18, 1999.
Seller agrees to sell and Buyer agrees to purchase the defined software
on a non-exclusive basis under the terms and conditions set forth herein.
The defined software is the "dolfin" Retain Management Systems, version
1, with object code written in "magic" ("RADT"). This version is multi-platform
and does operate, in its current configuration, on AS/400, Unix, and Windows
environments only. This sale includes the core-code without supplemental
modification only or point of sale interface.
Seller has provided Buyer an evaluation xxx of the software as of July
31, 1999. Buyer has completed a 45 day evaluation period and agrees that the
software, as provided, is suitable for their development only purposes. The
parties agree that the software, as provided, is not and will not be a fully
functional retail management system and will not function without further
expansion and modification. Seller further states that the software being sold
is not currently being used by any of Seller's existing clients.
The consideration for this ale will be A$5,525,700 and will be due and
payable as defined herein. The parties agree that the sum will be non-refundable
upon receipt of payment. Divergent makes, implies or expresses no warranties
regarding the suitability or adequacy of the software. Divergent will not
provide technical support or services for the software.
The parties agree to the following specific restrictions on the use of
the software:
The software will be used by the Buyer as a rapid development tool for
the creation of a retail management system to be separately marketed and
branded.
The trademark name "dolfin," the name Divergent Technologies, SVI
Systems, Inc., SVI Retail, Inc., Softline Limited or any affiliate thereof may
not be used in any way in the development or future marketing of the
contemplated retail management system.
Upon completion of their retail system development, the Buyer agrees to
limit any use, sale or licensing of their retail management system to the
following specific areas on a non-exclusive basis:
1. Africa (the continent)
2. United Kingdom
3. Scotland
4. Ireland
5. Norway
Payment Schedule: Buyer agrees to pay to seller the sum of A$5,525,700
on the dates and in the sums as follows:
On date of Agreement A$2,762,850
31 December 1999 A$2,762,850
Total of payments A$5,525,700
Any payment not received by the Seller in a timely manner will bear 8%
annum interest from the day following the due date.
All correspondence between the parties will be handled as follows:
Seller:
Divergent Technologies (Pty) Ltd.
Xxxxx 0, 00 Xxxxxx Xxxxxx
Xxxxx Xxxxxxxx
Xxxxxx, XXX 0000
Xxxxxxxxx
Phone: 000-00-00-000-0000
Fax: 000-00-00-000-0000
Contact: Xxxxx Xxxxx, MD - Retail Operations
Buyer:
Resource Control Management Limited (UK)
Docklands Business Centre
00-00 Xxxxxx Xxxx
Xxxxxx, X00 0XX
Xxxxxx Xxxxxxx
Phone: 000-00-00-00-000-0000
Fax: 000-00-00-00-000-0000
Contact: Xxxxxxx Xxxxxxx, Managing Director
Signed this date: September 16, 1999
Seller: Buyer:
/s/ Xxxxx Xxxxxxxxx /s/ Xxxxxxx Xxxxxxx
------------------------------------ ------------------------------------
Xxxxx Xxxxxxxxx Xxxxxxx Xxxxxxx
Chairman of the Board Managing Director
2
[SVI LETTERHEAD]
January 18, 2000 Fax: 011-44-01-71-53l-0383
Xx. Xxxxxxx Xxxxxxx
Managing Director
Resource Control Management, Ltd. (UK)
Dooklands Business Centre
00-00 Xxxxxx Xxxx
Xxxxxx, X00 0XX
Xxxxxx Xxxxxxx
Re: Overdue Payments/Software Sale
Dear Xxxxxxx:
I am very disappointed with the delays in our agreed payment schedule. I
appreciate that you have kept Xxxxx and I informed of our financing status,
however, the delay is causing the Company undue hardship.
Per our most recent conversation, SVI will waive the accrued interest provisions
of our agreement dated September 18, 1999 provided you make the following
payments as specified below in a timely manner:
o On or before May 1, 2000 the sum of A$3,070,000 or US$2,000,000
o On or before August 31, 2000 the balance of A$2,455,700 or US$1,600,000
Xxxxxxx, there can be no further delays. These payments must be made in timely
manner.
Regards,
/s/ Xxxxx Xxxxxxxxx
Xxxxx Xxxxxxxxx
Chief Executive Officer
00000 Xxxx Xxxxx Xxxxx, Xxxxx 000
Xxx Xxxxx, XX 00000
000-000-0000 oFAX 000-000-0000
[SVI LETTERHEAD]
May 10, 2000
Xx. Xxxxxxx Xxxxxxx
Managing Director
Resource Control Management Limited (UK)
Docklands Business Centre
00-00 Xxxxxx Xxxx
Xxxxxx, X00 0XX
Xxxxxx Xxxxxxx
Re: Proposed amendments to our Software Sale and Use Agreement, dated
September 16, 1999
Dear Xxxxxxx:
To clarify the intent of the parties to the agreement, I ask that you
agree with me to the following specific changes in the language of the Contract:
Page 1, Paragraph 4, the last sentence will be stricken in its entirety
and replaced with the following language:
"Seller further states that the software being sold is software that
continues to be marketed regularly to new and existing clients of the
seller."
Page 1, Paragraph 5, the second sentence will be stricken in its
entirety and replaced with the following language:
"The parties agree that the sum stated herein is non-refundable as of
September 16, 1999, the effective date of this agreement."
Xxxxxxx, we are in the late states of our annual audit and request that
you review the above changes, sign below indicating your acceptance of the
amended language and fax a copy back to my attention at (000) 000-0000 as soon
as possible. Please also mail the original signature copy to my attention at our
address below.
Regards,
/s/ Xxxxx X. Xxxxxxxxx
Xxxxx X. Xxxxxxxxx I agree with the amended language as
Chief Executive Officer proposed herein.
/s/ Xxxxxxx Xxxxxxx 10/05/00
------------------------------------
Xxxxxxx Xxxxxxx Date
Managing Director
Resource Control Management Limited (UK)
00000 Xxxx Xxxxx Xxxxx, Xxxxx 000 - Xxx Xxxxx, XX 00000 - (000) 000-0000 -
Fax (000) 000-0000
