EXHIBIT 10.6
[LOGO]
Verity(R) OEM Agreement
between
Verity, Inc.
000 Xxxx Xxxxx
Xxxxxxxxx, Xxxxxxxxxx 00000
("Verity")
and
Plumtree Software, Inc.
000 Xxxx Xxxxxx, 00/xx/ Xxxxx
Xxx Xxxxxxxxx, XX 00000
("Licensee")
This Verity(R) OEM Agreement (the "Agreement") is entered into as of April
_____, 2000 ("Effective Date") between Verity, Inc. and Plumtree Software, Inc.,
and amends and restates the parties SEARCH'97 OEM Agreement dated ______, as
amended (the "Prior Agreement"). The parties desire that this amended and
restated Agreement supersede entirely the Prior Agreement as of the Effective
Date of this Agreement.
1. DEFINITIONS. Certain of the defined terms used in this Agreement are as
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follows:
1.1 "Software" means the computer software, in object code form only,
which Verity owns or has the right to license to Licensee under this Agreement,
including the Development Software and the Run-Time Software, for use in
connection with the Application. The specific Verity products incorporating the
Software to be licensed to Licensee are listed in Exhibit A. With thirty (30)
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days written notice, Verity reserves the right to require Licensee to substitute
new versions of the Software incorporating alternative viewer and/or filter
software as implemented by Verity from time to time during the term of this
Agreement.
1.2 "Run-Time Software" means the portion of the Software which must be
incorporated in the Application to execute the search, retrieval and other
functionality of the Software.
1.3 "Development Software" means the tools and other portions of the
Software (including, without limitation, [***]) which are used to incorporate
the Run-Time Software in the Application and enable the Run-Time Software to
provide search, retrieval and other functionality within the Application.
1.4 "Documentation" means the documentation, instructions and user's
guides, including updates thereto, relating to the Software, whether in printed
or electronic format, provided by Verity to Licensee for the purposes of this
Agreement.
1.5 "Application" means the software application program, including
content or data owned or licensed by Licensee from third parties, which is
developed by Licensee with the use of the Development Software and which
executes the Run-Time Software for the purposes described in Exhibit C. The
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Application shall not provide direct or exposed access to the development tools
or capabilities of the Development Software. The Application shall access,
modify, and/or manipulate only those Collections which it creates.
1.6 "Collections" means the data structures created by Software and
required for the Run-Time Software to operate.
[***] Denotes language for which Plumtree has requested confidential
treatment pursuant to the rules and regulations of the Securities Act of 1933,
as amended.
1
1.7 "Platform" means a binary compatible combination of hardware and
operating system software supported by Verity that will run the Software and the
associated Application. The supported Platforms upon which Licensee may operate
the Software and the Application are set forth in Exhibit C.
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1.8 "Territory" means worldwide.
2. LICENSE GRANT.
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2.1 Appointment of Licensee. Verity appoints Licensee as a Verity(R) OEM
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and, subject to the terms and conditions of this Agreement, grants to Licensee
certain rights to the Software during the term of the Agreement, as set forth
below. The parties acknowledge that the Software may contain software licensed
by Verity from third parties (the "Verity Licensors"). Accordingly, as a
condition of this Agreement, Licensee will be required to execute the Third
Party Licensor Addenda, if any, noted on Exhibit X. Xxxxxx reserves all rights
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not expressly granted hereunder.
2.2 The Development Software.
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2.2.1 Development of Application. Verity grants to Licensee a
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nonexclusive and nontransferable right to use the Development Software on the
Platforms at Licensee's locations solely in the United States and solely for
internal development of the Application and related internal demonstration and
training of its personnel. Licensee shall make commercially reasonable efforts
to complete such integration of the Verity K2 Software within the PlumTree
Corporate Portal Application, and deploy such Application [***]. In connection
with such use, Licensee shall have the right to make a reasonable number of
copies of the Development Software for normal backup and archival purposes only.
[***].
2.2.2 Verity Data Access Standards. To enable Verity to develop and
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market applications that access and enhance Collections created by the
Application, Licensee will develop the Application in conformance with the
Verity Data Access Standards set forth in Exhibit D. If the development of a
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software gateway is necessary to enable such access by Verity applications, then
Licensee will develop and maintain such a gateway in accordance with the time
schedule and specifications set forth in Exhibit D, and Licensee grants to
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Verity a perpetual and exclusive, worldwide license to use the executable
implementation of any such gateway.
2.3 Application Distribution. Verity grants to Licensee a nonexclusive
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and nontransferable right to use, market, reproduce and distribute the Run-Time
Software solely as an embedded component of the Application and only in the
Territory. Licensee's right to distribute the Application is limited to those
persons who sublicense the Application for their own business or personal use
("End Users") and those persons who sublicense the Application for
redistribution to End Users ("Resellers"). To help assure quality, the
Application may only be licensed for use on the Platforms.
2.4 Documentation. Verity grants to Licensee a nonexclusive and
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nontransferable right to reproduce the Documentation only in the United States
solely: (i) to distribute the End User portions of the Documentation in the
Territory with the Application and (ii) for use internally by Licensee's
personnel in the United States in connection with the support of the
Application.
2.5 Sublicense Rights.
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[***] Denotes language for which Plumtree has requested confidential
treatment pursuant to the rules and regulations of the Securities Act of 1933,
as amended.
2
(a) Reproduction. Licensee may sublicense its right to reproduce
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the Application and the Documentation only to subcontractors (other than
Resellers) in the United States who agree in writing to be bound by the terms of
this Agreement, including, but not limited to, Section 9 ("Confidentiality").
Licensee and its subcontractors will ensure that each copy of the media
containing the Software is manufactured under a quality assurance program
designed to ensure that there is no virus or other embedded device or code in
the Software (e.g., back door, time bomb, Trojan Horse or worm) that is intended
to obstruct or prevent use of the Software.
(b) Sublicense Agreements. Any distribution of the Application
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shall be accomplished under a license agreement ("Sublicense Agreement") between
the Licensee and the person to whom the distribution is made. Each Sublicense
Agreement pertaining to a distribution to a Reseller (including Resellers
through multiple tiers of distribution) shall be signed by the Reseller and
shall contain terms and conditions at least as protective of Verity's
proprietary rights as the terms and conditions of this Agreement, including,
without limitation, the applicable provisions of Sections 2.3 (other than the
right to reproduce), 7, 8, 9, 10 (disclaimer only), 11.2, 12, 13, 15.4, 15.6 and
15.7. Any Sublicense Agreement pertaining to a distribution to an End User in
the United States may be through a shrink-wrap substantially in the form
attached as Exhibit E, so long as the End User is required to take an
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affirmative act of consent to the terms of such shrink-wrap by opening the
Application package or clicking a button to initiate installation only after an
opportunity to view the applicable terms and conditions. Additionally, each
Sublicense Agreement shall explicitly restrict the licensee from accessing
and/or utilizing the Verity APIs, development tools or capabilities of the
Development Software. Licensee will promptly notify Verity of any violation of a
Sublicense Agreement of which it becomes aware, and will take commercially
reasonable efforts to enforce each Sublicense Agreement with at least the same
degree of diligence used in enforcing similar agreements governing end users of
Licensee's own products. Such Sublicense Agreements shall also state that Verity
is a third party beneficiary of such agreements with respect to provisions
relating to use of the Application, and that such provisions are also
enforceable by Verity.
2.6 Sample Applications. Licensee agrees to deliver to Verity one (1)
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copy of the Application upon the first commercial shipment of the Application.
Licensee grants to Verity a worldwide, nonexclusive, nontransferable, royalty-
free and fully-paid right and license solely to use such copy for purposes of
support of the Application.
2.7 [***].
3. TERM. This Agreement shall remain in effect for an initial term of three
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(3) years from the Effective Date, unless terminated earlier in accordance with
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Section 14. The Agreement will renew automatically for successive one (1) year
terms unless written notice of termination is received by either party at least
[***] prior to the end of the then-current initial term or renewal term.
4. LICENSE AND OTHER FEES. Fees (including sublicense fees) for the Software
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and for all related support, training and other services offered by Verity are
set forth in Exhibit A. Licensee will pay all applicable shipping charges and
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taxes (except for taxes based upon Verity's net income). All amounts required to
be paid to Verity hereunder shall be paid within [***] days from the date of
Verity's applicable invoice.
5. SOFTWARE SUPPORT AND TRAINING.
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5.1 Internal Software Support. During the term of this Agreement,
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Licensee shall obtain Software support, as further described in Exhibit B, from
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Verity for the purpose of Licensee's provision of support to its End Users and
Resellers. All items delivered by Verity in providing such support, including
Error Corrections and Software Updates, shall be deemed to become a part of the
applicable Software and shall be subject to all terms and conditions of this
Agreement.
5.2 Second-Line Software Support. Licensee is responsible for providing
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front-line support to its End Users and Resellers with respect to Software
installation, on-going technical support, training and consultations relating
[***] Denotes language for which Plumtree has requested confidential
treatment pursuant to the rules and regulations of the Securities Act of 1933,
as amended.
3
to the Application. Any direct request to Verity for support services by the
Licensee's End Users or Resellers will be referred to Licensee.
6. ORDERING AND DELIVERY OF SOFTWARE. All orders for Software or other
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products or services issued by Licensee shall be deemed subject to this
Agreement and shall specify the quantity ordered, the discounted price,
Platform, and the location thereof. Licensee understands and agrees that any
additional terms and conditions of the Licensee's order shall be void and of no
effect. No orders shall be binding until the earlier of Verity's written
confirmation or shipment. Upon receipt of Licensee's initial purchase order,
Verity shall deliver to Licensee (i) the number of copies of Verity products
comprising the Software described on Exhibit A, (ii) one (1) golden master copy
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of the Run-Time Software on magnetic media and (iii) one (1) copy of the
Documentation. Verity shall deliver to Licensee one (1) copy of any Error
Corrections or Software Updates to the Software on magnetic media and one (1)
copy each of the applicable Documentation, if any, promptly upon distribution by
Verity of such Error Corrections and Updates to other Verity OEMs. All shipments
shall be FOB shipping point. All orders delivered shall be deemed accepted by
Licensee upon delivery.
7. RECORDS AND REPORTS. Licensee shall keep complete and accurate records
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relating to its use and marketing of the Application in accordance with standard
business practices in the computer industry and generally accepted accounting
principles. Within thirty (30) days after each calendar quarter, Licensee shall
provide Verity with a written sales report in the form supplied by Verity. Such
reports shall, at a minimum, contain information detailing each Application
distributed for the applicable reporting quarter, including (i) the number of
copies sold during the reporting period and the location of distributions (zip
code or state), broken down by month and on a cumulative basis; (ii) number of
users/seats or number of CPUs on which the Application is deployed, (iii)
whether a commercial or federal government end user account, (iv) an accounting
of the sublicense fees associated with such copies; and (v) second-line support
fees due to Verity associated with such copies. To assure compliance with the
payment and reporting requirements of this Agreement, Verity or its independent
auditors may inspect Licensee's applicable records from time to time, but no
more frequently than once per year. In the event any inspection of Licensee's
records indicates an underpayment of an amount equal to or greater than five
percent (5%) of any amounts due hereunder, Licensee shall promptly reimburse
Verity for all reasonable expenses associated with such inspection along with
the deficient amounts.
8. TITLE, USE OF TRADE NAMES AND TRADEMARKS.
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8.1 Proprietary Rights. Title and ownership of all proprietary rights in
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the Software, Portal Connector and Notification Connector, including any
copyright, patent, trade secret, trademark or other intellectual property
rights, will at all times remain the property of Verity and the Verity
Licensors. Licensee agrees not to remove or obliterate any copyright, trademark
or proprietary rights notices of Verity or the Verity Licensors from the
Software or Documentation and shall reproduce all such notices on all authorized
copies of the Software or Documentation. Licensee shall not modify, translate,
disassemble, decompile, reverse engineer or cause or allow discovery of the
source code of the Software in any way. In addition, Licensee shall include a
copyright notice in the start-up or "About" screen of the Application indicating
that portions of the Application include technology used under license from
Verity, Inc.
8.2 Trademarks. Verity hereby grants to Licensee a non-exclusive, limited
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license to use the applicable Verity trademarks and logos ("Trademarks") solely
as permitted in this Agreement. Licensee agrees to cooperate with Verity in
facilitating Verity's monitoring and control of the nature and quality of such
products and services, and to supply Verity with specimens of use of the
Trademarks upon request. Licensee understands and agrees that the use of any
Trademark in connection with this Agreement shall not create any right, title or
interest, in or to the use of the Trademark and that all such use and goodwill
associated with the Trademark will inure to the benefit of Verity. Licensee
agrees not to register or attempt to register any Trademarks.
8.3 Branding; Cooperative Efforts. Licensee agrees to the following
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additional co-marketing obligations:
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(a) [***]
(b) Licensee agrees to implement the Verity search button as the
default search button on the Application and the "Search Powered by Verity"
tagline on the search result list of the Application. [***].
(c) each party will provide a hot link from itss applicable web
page to the others applicable web page;
(d) Licensee and Verity agree to issue a single joint and
mutually agreed upon press release announcing the project involving the
Application ("Project") and Verity's participation and value not more than 30
days from the execution of this Agreement.
(e) Licensee will cooperate with and support Verity in its press
release materials, and provide reasonable efforts in support of an event, if
any, sponsored by Verity to highlight its inclusion as a key technology within
the Application; and
(f) [***]
9. CONFIDENTIALITY. Each party shall hold in confidence all materials or
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information disclosed to it in confidence hereunder ("Confidential Information")
which are marked as confidential or proprietary, or if disclosed verbally,
reduced to writing and marked confidential within thirty (30) days after the
date of disclosure. Confidential Information shall also include any new product
information or the results of any bench xxxx or similar tests on the Software
conducted by Licensee or divulged by Licensee to Verity. Each party agrees to
take precautions to prevent any unauthorized disclosure or use of Confidential
Information consistent with precautions used to protect such party's own
confidential information, but in no event less than reasonable care. The
obligations of the parties hereunder shall not apply to any materials or
information which; (a) is now, or hereafter becomes, through no act or failure
to act on the part of the receiving party, generally known or available; (b) is
known by the receiving party at the time of receiving such information as
evidenced by its records; (c) is hereafter furnished to the receiving party by a
third party, as a matter of right and without restriction on disclosure; (d) is
independently developed by the receiving party without any breach of this
Agreement; or (e) is the subject of a written permission to disclose provided by
the disclosing party. Notwithstanding any other provision of this Agreement,
disclosure of Confidential Information shall not be precluded if such
disclosure:
(a) is in response to a valid order of a court or other
governmental body of the United States or any political subdivision thereof;
provided, however, that the responding party shall first have given notice to
the other party hereto and shall have made a reasonable effort to obtain a
protective order requiring that the Confidential Information so disclosed be
used only for which the order was issued;
(b) is otherwise required by law; or
(c) is otherwise necessary to establish rights or enforce
obligations under this Agreement, but only to the extent that any such
disclosure is necessary.
10. WARRANTY. Verity warrants to Licensee that for a period of ninety (90)
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days from the date of delivery of the Software to Licensee that the Software
used by Licensee shall substantially perform in accordance with Verity's
applicable Documentation. Licensee's sole and exclusive remedy shall be for
Verity to modify or correct the Software or, if Verity is unable to provide a
reasonable work-around for the error, Verity will accept the return of the
defective
[***] Denotes language for which Plumtree has requested confidential
treatment pursuant to the rules and regulations of the Securities Act of 1933,
as amended.
5
Software in Licensee's possession and Verity will refund the license fees paid
by Licensee for such Software. This warranty shall not apply to any Software
which has been modified by Licensee or by any party other than Verity, or which
has been improperly installed or used in any manner other than as authorized
under this Agreement. EXCEPT AS SET FORTH IN THIS SECTION, VERITY AND VERITY
LICENSORS MAKE NO OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING THE IMPLIED
WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. The Software
is warranted only to Licensee, and Licensee shall not extend any warranties for
or on behalf of Verity or Verity Licensors to End Users, Resellers, or any other
third parties.
11. INFRINGEMENT INDEMNIFICATION.
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11.1 By Verity. Verity agrees to indemnify and hold Licensee harmless
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from all loss, costs, expenses, damages, and liability suffered or incurred by
Licensee as a result of any claim that the Software as delivered to Licensee
infringes a U.S. copyright, or trade secret under U.S. law of a third party.
Such obligation is subject to the following conditions (i) Licensee shall notify
Verity in writing within thirty (30) days of the date Licensee first becomes
aware of a claim; (ii) Verity has sole control of the settlement, compromise,
negotiation and defense of any such action; and (iii) Licensee gives Verity all
reasonably available information, assistance and authority, at Verity's
reasonable expense, to enable Verity to do so. Verity may, at its option, obtain
the right to continued use of the Software, substitute other equivalent
software, or modify the Software so it is no longer infringing, or, if none of
the foregoing remedies are commercially feasible, terminate Licensee's right to
the allegedly infringing Software and refund to Licensee the amount which
Licensee has paid for such Software, depreciated on a straight-line basis over a
three-year period. The foregoing indemnity shall not apply to any infringement
claim arising from Software which has been modified by parties other than Verity
or use of the Software in conjunction with other software or hardware where use
with such other software or hardware gives rise to an infringement claim. THE
FOREGOING STATES LICENSEE'S SOLE AND EXCLUSIVE REMEDY WITH RESPECT TO CLAIMS OF
INFRINGEMENT OF THIRD PARTY PROPRIETARY RIGHTS OF ANY KIND, AND VERITY EXPRESSLY
DISCLAIMS ANY IMPLIED WARRANTY OF NONINFRINGEMENT.
11.2 By Licensee. Licensee agrees to indemnify and hold Verity harmless
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from all loss, costs, expenses, damages and liability suffered or incurred by
Verity as a result of any claim that the portions of the Application other than
the Software ("Licensee Product") infringes a U.S. copyright, or trade secret
under U.S. law of a third party. Such obligation is subject to the following
conditions (i) Verity shall notify Licensee in writing within thirty (30) days
of the date Verity first becomes aware of a claim; (ii) Licensee has sole
control of the settlement, compromise, negotiation and defense of any such
action; and (iii) Verity gives Licensee all reasonably available information,
assistance and authority, at Licensee's expense, to enable Licensee to do so.
Notwithstanding the foregoing, Licensee shall have no liability for nor shall
Licensee indemnify Verity against any infringement claim based solely on the
Software or any infringement claim that could have been avoided by use of
software other than the Software. THE FOREGOING STATES THE ENTIRE AND EXCLUSIVE
OBLIGATION OF LICENSEE TO VERITY RELATING TO ANY ALLEGED INFRINGEMENT OF
PATENTS, COPYRIGHTS, TRADEMARKS OR OTHER INTELLECTUAL PROPERTY RIGHTS.
12. LICENSEE INDEMNIFICATION. Licensee shall defend, indemnify and hold
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harmless Verity and Verity Licensors from and against any claims by a Reseller,
End User, or other party arising out of (i) Licensee's or a Reseller's failure
to obtain a valid Sublicense Agreement or (ii) except as permitted by this
Agreement, Licensee's making representations or warranties regarding the
Software to End Users, Resellers or other third parties.
13. LIMITATION OF LIABILITY. VERITY'S AND VERITY LICENSORS' AGGREGATE
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LIABILITY UNDER ANY CLAIMS ARISING OUT OF THIS AGREEMENT SHALL NOT EXCEED [***]
TO VERITY UNDER THIS AGREEMENT. VERITY AND VERITY LICENSORS WILL NOT BE LIABLE
FOR LOST PROFITS OR FOR SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES,
REGARDLESS OF THE FORM OF ACTION, EVEN IF VERITY IS ADVISED OF THE POSSIBILITY
OF SUCH DAMAGES. NOTWITHSTANDING THE ABOVE, THE LIMITATIONS SET FORTH IN THIS
SECTION SHALL NOT APPLY TO THE EXTENT VERITY CAN BE SHOWN TO HAVE FAILED TO
EXERCISE REASONABLE CARE IN THE PRODUCTION AND/OR SUPPLY OF THE SOFTWARE AND/OR
[***] Denotes language for which Plumtree has requested confidential
treatment pursuant to the rules and regulations of the Securities Act of 1933,
as amended.
6
DOCUMENTATION AND/OR THE PERFORMANCE OF ITS OBLIGATIONS UNDER THIS AGREEMENT AND
SUCH FAILURE RESULTS IN DEATH OR PERSONAL PHYSICAL INJURY.
14. TERMINATION. This Agreement may be terminated earlier by either party on
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thirty (30) written days notice to the other party if the other party fails to
materially perform any obligation hereunder and such failure is not cured within
such thirty (30) day period; provided, however, that either party may terminate
this Agreement immediately upon delivery of notice in connection with any breach
by the other of Sections 2, 8.1 or 9. Upon termination or expiration, Licensee's
licenses hereunder shall terminate, all open orders shall automatically
terminate, and Verity shall have no obligation to fill such orders. In such
event, Licensee shall immediately cease using, marketing, reproducing and
distributing the Software and shall return all copies thereof to Verity, along
with a certification signed by an officer of Licensee that no copies have been
retained by Licensee for any purpose whatsoever. However, if the Agreement
terminates or expires for any reason other than Verity's termination of Licensee
in accordance with this Section, (i) Licensee shall have the right to distribute
all copies of the Software paid for hereunder which are then in its inventory on
the effective date of termination (which amount shall not exceed Licensee's
average monthly inventory of the Application for the twelve months preceding the
termination date); (ii) Licensee shall as its sole and exclusive remedy be
entitled to a refund of any unused portions of the Prepaid Sublicense Fees and
maintenance fees paid to Verity, and (iii) Licensee shall have the right to
continue to use the Software internally at no additional charge upon execution
of Verity's then-current applicable end user agreement to support End User
customers who have valid Sublicense Agreements in effect on the effective date
of termination. The obligations of each party under Sections 4, 7, 8.1, 9, 10,
11, 12, 13, 14 and 15 shall survive termination or expiration of this Agreement.
15. MISCELLANEOUS.
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15.1 [***]
15.2 Notices. Any notice required under this Agreement shall be given in
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writing and shall be deemed effective upon delivery to the party to whom
addressed by (i) express courier upon written verification of actual receipt or
(ii) facsimile upon confirmation of receipt generated by the sending device. All
notices shall be sent to the applicable address on the cover page hereof or to
such other address as the parties may designate in writing, with a copy to the
president and to the legal department of such party.
15.3 Governing Law. This Agreement shall be governed and interpreted by
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the laws of the State of California, without giving effect to its principles of
conflicts of law. The parties agree that the United Nations Convention on
Contracts for the International Sales of Goods is specifically excluded from
application to this Agreement. In any legal action relating to this Agreement,
Licensee agrees to the exercise of jurisdiction over Licensee by a state or
federal court in Santa Xxxxx County, California. In the event an action is
brought to enforce any provision or declare a breach of this Agreement, the
prevailing party shall be entitled to recover, in addition to any other amounts
awarded, reasonable legal and other related costs and expenses, including
attorney's fees, incurred thereby.
15.4 Injunctive Relief. It is expressly agreed that a material breach of
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this Agreement will cause irreparable harm to Verity and that a remedy at law
would be inadequate. Therefore, in addition to any and all remedies available at
law, Verity and/or Verity Licensors shall be entitled to injunctive relief
against Licensee in the event of any threatened or actual violation of any or
all provisions in this Agreement.
[***] Denotes language for which Plumtree has requested confidential
treatment pursuant to the rules and regulations of the Securities Act of 1933,
as amended.
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15.5 Independent Contractor. Licensee is an independent contractor, and
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nothing in this Agreement shall be deemed to create a joint venture,
partnership, or agency relationship between the parties. Neither party has the
right or authority to assume or create any obligation or responsibility on
behalf of the other.
15.6 Export. Licensee agrees that it will not export or reexport the
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Software or the Application without the appropriate United States Government or
any other government licenses.
15.7 Government End Users. The Software (a) was developed at private
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expense, is existing computer software and no part of it was developed with
government funds, (b) is a trade secret of Verity for all purposes of the
Freedom of Information Act, (c) is commercial computer software submitted with
only those rights provided in Verity's then-current standard end-user license
agreement, (d) in all respects is proprietary data belonging solely to Verity,
(e) is unpublished and all rights are reserved under the copyright laws of the
United States. For units of the Department of Defense (DoD) this Software is
licensed only with those rights specified in Verity's-then-current standard End
User license agreement, and use, duplication or disclosure of the Software is
subject to the restrictions set forth in such end-user license agreement.
15.8 Force Majeure. Neither party shall be liable hereunder by reason of
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any failure or delay in the performance of its obligations hereunder (except for
the payment of money) on account of strikes, shortages, failure of suppliers,
riots, insurrection, fires, floods, storms, earthquakes, acts of God, war,
governmental action, labor conditions, or any other cause which is beyond the
reasonable control of such party.
15.9 Source Code Escrow. The parties agree to incorporate by reference
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the Source Code Escrow Addendum attached hereto as Exhibit F.
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15.10 Entire Agreement. If any portion of this Agreement is determined to
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be or becomes unenforceable or illegal, such portion shall be deemed eliminated
and the remainder of this Agreement shall remain in effect in accordance with
its terms as modified by such deletion. No waiver of any breach of this
Agreement shall be effective unless in writing, nor shall any breach constitute
a waiver of any subsequent breach of any provision of this Agreement. This
Agreement (including all Exhibits) contains the entire agreement and
understanding between the parties with respect to the subject matter hereof, and
supersedes all prior agreements, negotiations, proposals and communications
between the parties. Moreover, this Agreement shall replace and supersede any
Verity end user license agreement included with the package of any Software used
by Licensee. This Agreement may be executed in counterparts.
:
Verity, Inc. Licensee
By: ___________________________ By:___________________________
Name:__________________________ Name:_________________________
Title:_________________________ Title:________________________
Date:__________________________ Date:_________________________
8
VERITY, INC.
OEM Agreement
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EXHIBIT A
FEES
1. LICENSED SOFTWARE:
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one (1) copy of the Verity(R) K2 Toolkit [***] on each of the Platforms
stated in Exhibit C.
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one (1) copy of the Verity(R) Profiler Toolkit [***] on each of the
Platforms stated in Exhibit C.
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one (1) copy of the Verity(R) European Locales on each of the Platforms
stated in Exhibit C.
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[***]
Verity European Locale: mean Bokmal, Danish, Dutch, Finnish, French,
German, Italian, Nynorsk, Portuguese, Spanish, and Swedish. Note that Bokmal and
Nynorsk are Norwegian variants.
Verity Asian Locale: means Japanese, Simplified Chinese, Traditional
Chinese and Korean.
2. LICENSE FEE:
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a. Development Software. Licensee shall pay to Verity the amount of
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[***] for the licensed Software stated in Section 1 above.
b. Run-Time Software. Licensee shall pay to Verity a non-refundable
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sublicense fee prepayment of [***] ("Prepaid Sublicense Fees") against
which Sublicense Fees subsequently incurred, due and owing to Verity shall
apply until such Prepaid Sublicense Fee amount is exhausted. Upon
termination or expiration of this Agreement for any reason (other than
termination by Licensee for breach of the agreement by Verity), all
unrecouped Prepaid Sublicense Fees paid to Verity shall be nonrefundable
and nonrecoupable. Such Prepaid Sublicense Fees shall be due and payable
as follows:
[***]
[***]
c. Sublicense Fees: Licensee acknowledges and agrees that in
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licensing the Verity search functionality licensed hereunder, Licensee
shall not treat such search functionality as a separate line item.
(i) If Pricing to End User Based on Per Seat (English only). Licensee
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shall pay Verity, subject to a [***] per single user minimum royalty
payment, [***] of Net Revenue (as defined below); accrued and/or paid
to Licensee during each calendar quarter, related to all licensing and
distribution of the Application, including without limitation all
royalties and one-time fees, within [***] of the end of each calendar
quarter.
(ii) If Pricing to End User based on Per Server/CPU (English only).
-------------------------------------------------------------
Licensee shall pay Verity, subject to a [***] per CPU minimum royalty
payment, [***] of Net Revenue (as defined below); accrued and/or paid
to Licensee during each calendar quarter, related to all licensing and
distribution of the Application, including without limitation all
royalties and one-time fees, within [***] of the end of each calendar
quarter.
[***] Denotes language for which Plumtree has requested confidential
treatment pursuant to the rules and regulations of the Securities Act of 1933,
as amended.
9
(iii) If Licensing European Locales or Asian Locales In Addition to
-------------------------------------------------------------
English. Licensee shall pay Verity, subject to Section 2(c) (i) and
-------
2(c) (ii) above an additional [***] of Net Revenue (as defined below);
accrued and/or paid to Licensee during each calendar quarter, related
to all licensing and distribution of the Application, including without
limitation all royalties and one-time fees, within [***] of the end of
each calendar quarter.
(iv) Additionally, the parties agree to negotiate in good faith
----
alternative pricing models, not to exceed [***] of Net Revenues, for
specific deals and/or circumstances
"Net Revenues" means gross license revenues less applicable taxes,
shipping and handling charges related to distribution and licensing of
the Application.
3. EVALUATION COPIES: Notwithstanding Paragraph 2 above, Verity grants
-----------------
Licensee the right to provide evaluation copies of the Application incorporating
the Run-Time Software ("Evaluation Copies") to End Users. The Evaluation Copies
shall be limited to a maximum number of [***] copies at any given time. The
evaluation period for each Evaluation Copy shall be for a period of [***] days
from receipt by the End User unless otherwise authorized in writing by Verity.
The End User shall be authorized to use the Evaluation Copy solely for
evaluating its applicability to its requirements and shall not be for any
commercial or private benefit use. Licensee may provide Evaluation Copies only
to End Users who have executed a written evaluation agreement substantially
similar to Verity's standard evaluation agreement, a copy of which will be
provided to Licensee upon written request. Licensee shall include the following
information with each order for an Evaluation Copy: (i) Application name; (ii)
End User's platform; (iii) the make/model, operating system/version, and serial
number of End User's computer; and (iv) the media type of the Evaluation Copy
shall be Verity's then-current list price for the Software less the following
discount.
EVALUATION COPY DISCOUNT: [***]
4. INTERNAL SUPPORT: The annual fee for internal support (as defined as
----------------
Maintenance Services in Exhibit B) for each copy of the Verity(R) K2 Toolkit and
Verity(R) Profiler Toolkit used by Licensee shall be [***]. The annual fee for
internal support for each copy of the Verity(R) European Locales and Verity(R)
Asian Locales used by Licensee shall be [***]. Such fee shall be invoiced by
Verity annually, and each anniversary thereof.
5. SECOND-LINE SUPPORT: The annual fee for second-line support for all of
-------------------
Licensee's customers that obtain support services for the Application from
Licensee shall be based on the aggregate Sublicense Fees payable to Verity
multiplied by [***]. Such fee to be submitted with the quarterly sales report as
described in Section 7 of the Agreement for all new customers and all customers
renewing annual maintenance during the applicable quarter.
Within [***] from the Effective Date, Licensee shall pay to Verity a non-
refundable Second Line Support Fee prepayment of [***] ("Prepaid Second Line
Support Fee") against which Second Line Support Fees subsequently incurred, due
and owing to Verity shall apply until such prepaid support fee amount is
exhausted.
6. TRAINING. All training shall be made available for a training fee to be
--------
paid by Licensee in addition to the amount payable pursuant to Paragraph 2
above. Such training fee shall equal Verity's then-current training rates less
the following discount:
TRAINING DISCOUNT: [***]
7. DOCUMENTATION. Verity shall provide one (1) copy of the applicable user
-------------
documentation with each copy of Development Software. Additional copies are
available to Licensee at [***] each.
[***] Denotes language for which Plumtree has requested confidential
treatment pursuant to the rules and regulations of the Securities Act of 1933,
as amended.
10
8. [***]
[***] Denotes language for which Plumtree has requested confidential
treatment pursuant to the rules and regulations of the Securities Act of 1933,
as amended.
11
VERITY, INC.
OEM Agreement
--------------------------------------------------------------------------------
EXHIBIT B
SOFTWARE SUPPORT TERMS AND CONDITIONS
For all Licensees who purchase Maintenance Services, Verity provides support in
the form of Error Corrections, Software Updates, and Telephone Hotline Support.
For Software which is supported, Maintenance Services are provided only for (i)
the current release of the Software, (ii) the most recent previous release of
the Software, and (iii) any other release of the Software for one year after its
general availability; after which time Verity shall have no obligation to
support such release, unless otherwise agreed to in a separate written agreement
between the parties.
The initial effective date of Maintenance Services is the date Software is
shipped from Verity's facility.
DESCRIPTION OF SERVICES PROVIDED DURING A MAINTENANCE PERIOD
A) Error Corrections. Verity shall exercise commercially reasonable
-----------------
efforts to correct any error reported by the Licensee in the current unmodified
release of the Software in accordance with the priority level reasonably
assigned to such error by Verity. Errors are defined as failures of the Software
to perform as specified in the published documentation (include specific
reference to the appropriate documentation here)If a reported error has caused
the Software to be inoperable, or the Licensee's notice to Verity states that
the reported error is substantial and material with respect to the Licensee's
use of the product, Verity shall use its reasonable commercial efforts to
correct expeditiously such error or to provide a software patch or bypass around
such error. The Licensee acknowledges that all reported errors may not be
corrected.
B) Software Updates. Verity provides, at no additional cost, one (l)
----------------
copy of all published revisions to the printed documentation and one (l) copy
of, or authorization to copy, new releases of the products, which are not
designated by Verity as new products for which it charges a separate fee.
Verity, may in its sole discretion, modify the Software and deliver Software
Updates to Licensee which may add new and/or eliminate existing features,
functions, operating environment and/or hardware platforms to the Software.
Licensee may continue to reproduce and distribute the previous version of the
Software until the date on which such Licensee products are revised, at which
time Licensee will incorporate the Software Update(s) into such products.
C) Telephone Hotline Support. Verity provides telephone assistance to
-------------------------
all Licensees who have purchased Maintenance Services. Telephone Hotline Support
hours of operation and telephone numbers for the relevant geographic region may
be found on Verity's web site at xxx.xxxxxx.xxx. Verity Support personnel are
--------------
available to answer questions related to Verity's supported products and how
they perform with compatible hardware systems. Assistance in the development of
custom applications for Verity's products is not included in standard hotline
support. If Licensees wish to acquire such support, it is available through
Verity's Consulting group at the then-current consulting rates.
PRIORITY LEVELS OF ERRORS
In the performance of Maintenance Services, Verity applies priority ratings to
problems reported by Licensees.
A) Priority I Errors.
-----------------
Description: Program errors that prevent some function or process from
-----------
substantially meeting the functional specification and which seriously
affect the overall performance of the function or process and no
work-around is known.
Verity Response: Verity shall promptly initiate the following
---------------
procedures: (1) assign senior Verity engineers to correct the error;
(2) notify senior Verity Management that such errors have been reported
and that steps are being taken to correct the error; (3) provide
Licensee with periodic reports on the status of corrections; (4)
1
commence work to provide Licensee with a work-around until final
solution is available; (5) provide final solution to Licensee as soon
as it is available. [***].
B) Priority II Errors.
------------------
Description: Program errors that prevent some function or process from
-----------
substantially meeting functional specification, but has a reasonable
work-around.
Verity Response: Verity shall provide a work-around to the Licensee and
---------------
shall exercise commercially reasonable efforts to include the fix for the error
in the next software maintenance release. [***].
C) Priority III Errors.
-------------------
Description: Program errors that prevent some portion of a function
-----------
from substantially meeting functional specification but do not
seriously affect the overall performance of the function.
Verity Response: Verity may include the fix for the error in the next
---------------
major release of the Software.
[***] Denotes language for which Plumtree has requested confidential
treatment pursuant to the rules and regulations of the Securities Act of 1933,
as amended.
2
VERITY, INC.
OEM Agreement
--------------------------------------------------------------------------------
EXHIBIT C
OEM APPLICATION
Description of Application(s):
-----------------------------
The Application shall include: (i) Licensee's software application program
developed for and/or by Licensee and in existence as of the Effective Date,
currently known as "Plumtree Corporate Portal", together with substantially
similar versions of such program as enhanced to include upgrades, updates, bug
fixes and other error corrections made from time to time.
The Plumtree Corporate Portal brings together in one simple, personalized Web
page all the information and productivity tools relevant to corporate users. In
one place, employees, partners, and customers can review product and market
news, analyze key performance metrics, launch productivity tools, and complete
e-commerce transactions. The Plumtree Corporate Portal creates links to content
on the corporate network and the Internet, assembling a logical view of
information from disparate systems the Plumtree Corporate Portal scans
databases, Groupware systems, Web pages, documents on file servers, and other
types of content.
Platforms:
---------
NT, Sun Solaris
1
CONFIDENTIAL
------------
VERITY, INC.
OEM Agreement
--------------------------------------------------------------------------------
EXHIBIT D
VERITY DATA ACCESS STANDARDS
[***]
[***] Denotes language for which Plumtree has requested confidential
treatment pursuant to the rules and regulations of the Securities Act of 1933,
as amended.
1
VERITY, INC.
OEM Agreement
--------------------------------------------------------------------------------
EXHIBIT E
SHRINKWRAP AGREEMENT
The form of shrinkwrap license agreement to be used by Licensee will include
terms and conditions substantially similar to the following:
[" "]SOFTWARE LICENSE
This is a legal agreement between you (either an individual or an entity) and
[________________________ Customer. ("__________")]. By opening the sealed
software packages and/or by using the SOFTWARE, you agree to be bound by the
terms of this Agreement. If you do not agree to the terms of the Agreement,
promptly return the disk package and accompanying items (including any printed
materials and binders or other containers) to the place you obtained them.
1. GRANT OF LICENSE FOR DEMONSTRATION USE. [" "] grants to you the personal,
non-transferable, non-exclusive right to use and to display one copy of the
software and any accompanying materials (the "Software") for purposes of
internal use only. You may use the Software on only one computer at any time,
which use may include loading the Software into the temporary memory (i.e. RAM)
or installing the Software into the permanent memory (e.g. hard disk) of that
computer. Under this license, you MAY NOT (i) distribute the Software; (ii) use
the Software for any purpose other than internal use; or (iii) modify the
Software.
2. COPYRIGHT. The Software is owned by [" "] or its suppliers and is
protected by United States copyright laws and international treaty provisions.
You may not remove the copyright notice from the Software or the written
materials, if any, accompanying the Software.
3. OTHER RESTRICTIONS. This [" "] License Agreement is your proof of license
to exercise the rights granted herein and must be retained by you. You may not
sublicense, rent or lease the Software. You may not reverse engineer, decompile
or disassemble the Software except to the extent such foregoing restriction is
expressly prohibited by applicable law.
4. NO WARRANTY. ANY USE BY YOU OF THE SOFTWARE IS AT YOUR OWN RISK. THE
SOFTWARE IS PROVIDED FOR USE "AS IS" WITHOUT WARRANTY OF ANY KIND. TO THE
MAXIMUM EXTENT PERMITTED BY LAW, [" "] AND ITS SUPPLIERS DISCLAIM ALL WARRANTIES
OF ANY KIND, EITHER EXPRESS, STATUTORY OR IMPLIED, INCLUDING, WITHOUT
LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE AND NONNINFRINGEMENT. [" "] IS NOT OBLIGATED TO PROVIDE ANY UPDATES TO
THE SOFTWARE.
5. NO LIABILITY FOR DAMAGES. In no event shall [" "] or its suppliers be
liable for any damages whatsoever (including, without limitation, incidental,
direct, indirect, special and consequential damages, damages for loss of
business profits, business interruption, loss of business information, or other
pecuniary loss) arising out of the use or inability to use this [" "] product,
even if advised of the possibility of such damages. Because some
states/countries do not allow the exclusion or limitation of liability for
consequential or incidental damages, the above limitation may not apply to you.
6. GOVERNING LAW. This Agreement is governed by the laws of California
without application of the principles of conflicts of law.
7. THIRD PARTY BENEFICIARIES. You are hereby notified that persons and
entities which have licensed software to [" "] for inclusion in the Software are
third party beneficiaries to this Agreement as it applies to their respective
software product(s) included in the Software.
8. PREVAILING AGREEMENT. In the event of any conflict between the terms and
conditions of this Agreement and the terms and conditions of any license
agreements appearing with or in the software products comprising the Software,
this Agreement shall prevail.
9. EXPORT. You agree that you will not export or re-export the Software
without the appropriate United States or foreign government licenses.
10. US GOVERNMENT RESTRICTED RIGHTS. If the Products are acquired under the
terms of a proposal or agreement with the United States Government or any
contractor therefor, the Products are subject to the following: (a) For
acquisition by or on behalf of civilian agencies, as necessary to obtain
protection as "commercial computer software" and related documentation in
accordance with the terms of this Commercial Software Agreement as specified in
48 C.F.R. 12.212 of the Federal Acquisition Regulations and its successors; (b)
For acquisition by or on behalf of units of the Department of Defense ("DoD") as
necessary to obtain protection as "commercial computer software" and related
documentation in accordance with the terms of this commercial computer software
license as specified in 48 C.F.R. 000-0000-0 of the DoD F.A.R. Supplement and
its successors.
2
VERITY, INC.
OEM Agreement
--------------------------------------------------------------------------------
EXHIBIT F
SOFTWARE SOURCE CODE ESCROW ADDENDUM
Verity maintains a Source Code Escrow account with Data Securities
International, Inc. (DSI), 0000 Xxxxxxxxxx Xxxxx, Xxxxx 000, Xxx Xxxxx, XX
00000. Verity agrees to enroll Licensee as a Subscribed Licensee to its Source
Code Escrow Account, under the following terms and conditions:
Product Source Code Escrow Service is available only to licensees who have
purchased Software Product Maintenance Service and is provided at no additional
charge to the Licensee.
1. Upon receipt of initial Maintenance fees by Verity, Verity will register
Licensee with DSI. Licensee's enrollment with DSI shall be renewed annually,
concurrent with the renewal of Maintenance Service by the Licensee.
2. Verity certifies that a copy of the Software Source Code, defined as the
human readable embodiment of the computer code associated with the Software
implementing specific algorithms from which the Software will be derived, has
been deposited with DSI.
3. Verity shall direct DSI to release a copy of the Software Source Code to
Licensee in the event that:
a) Verity materially breaches its obligations to provide maintenance and
support services pursuant to the terms of Section 5 and Exhibit B of
---------
the parties' License Agreement of even date herewith ("License
Agreement"), but only after such a material breach has been determined
to exist (after expiration of any applicable cure period) by an
independent arbitrator pursuant to the procedures outlined below in
Section 5; or
b) Verity
(i) files for bankruptcy;
(ii) becomes the subject of any proceedings seeking relief or
reorganization, or rearrangement under any laws relating to bankruptcy;
(iii) makes an assignment for the benefit of creditors;
(iv) commences the liquidation, dissolution, or winding up of its
business; or
(v) ceases to do business in the ordinary course
The occurrence of the described events will not constitute a Release Condition
if, within the specified thirty (30) day period, Verity (including its receiver
or trustee in bankruptcy) provides to Registered Licensee adequate assurances,
reasonably acceptable to Registered Licensee, of its continuing ability and
willingness to fulfill all of its maintenance and support obligations.
4. In the event Licensee obtains Software Source Code pursuant to this
Agreement, Licensee will be entitled to use such Software Source Code for the
sole purpose of internal maintenance of the Software (i.e. error correction) and
to modify such Software Source Code for the sole purpose of such error
correction. Licensee is expressly prohibited from the distribution licensing,
sale, modification for distribution or licensing and/or any other disposition,
disclosure or release to third parties of the Software Source Code by any
persons or entities, including but not limited to, Licensee and/or its agents
and employees. Further, in the event that Software Source Code is released to
Licensee pursuant to Section 3 above, Verity shall have no further obligation to
provide maintenance and support services pursuant to the Agreement, and Licensee
shall have no obligation to make any payments with respect to maintenance and
support services which would otherwise have been required pursuant to the terms
of the License Agreement after the date of such release; otherwise, the License
Agreement, including all licenses and payment obligations provided for therein,
shall remain in full force and effect.
3
5. With the exception of proceedings in which a party seeks injunctive relief,
the determination required pursuant to Section 3(a) above and any dispute or
claims arising out of or relating to this Agreement, or the breach, termination,
or validity thereof, shall be fully and finally resolved by binding arbitration
by an independent arbitrator, to take place in Palo Alto, California, in
accordance with the then-prevailing rules of the American Arbitration
Association. Judgment upon the award rendered by the arbitrator may be entered
in any court having jurisdiction thereof.
4
