Groklaw volunteer Nivuahc has done a comparative chart for us of the two EV1 contracts we find in Robert Marsh's Declaration [PDF, text]. I think it will not only help you to follow his story, but it also can show you what lawyers do for a living. Compare the language that was added (in red) and the language dropped (in blue) and imagine that you are EV1's lawyer trying to make sure you never hear from those SCO folks again as long as you live. Then do an analysis of each change from SCO's standpoint. You'll be able to pretty accurately guess who wanted the language changes in each case, I think. Some are just because of the nature of EV1's server business, and because EV1 didn't want a per seat license deal. Thanks to the gang, and particularly bprice and belzecue for helping us figure out a width issue with the table.
| Draft - For review and discussion purposes - SCO Legal will provide executable documents. |
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THE SCO GROUP, INC.
INTELLECTUAL PROPERTY LICENSE
This Intellectual Property License Agreement ("Agreement") is made and entered into on the date last executed
below by and between The SCO Group, Inc., a corporation of the State of Delaware, for itself and its Subsidiaries
(collectively referred to herein as "SCO"), with its place of business at [redacted], Lindon,
Utah 84042, U.S.A., and Everyones Internet EV1, a corporation of the State of Texas, (referred to herein as
"Licensee"), with its place of business at [address redacted] Texas 77098.
WHEREAS, SCO owns all right, title and interest in and to certain SCO intellectual property (as hereinafter
defined); and
WHEREAS, Licensee is in the business of providing hosting services through its hosting centers; and
WHEREAS, SCO wishes to grant and Licensee wishes to obtain certain limited rights and licenses to use SCO IP,
which rights Licensee wishes to accept, all in accordance with the terms and conditions hereinafter set forth;
NOW, THEREFORE, in consideration of the mutual promises made herein it is agreed as follows:
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THE SCO GROUP. INC.
INTELLECTUAL PROPERTY LICENSE
This Intellectual Property License Agreement ("Agreement") is made and entered into on the date last executed
below by and between The SCO Group, Inc., a corporation of the State of Delaware, for itself and its Subsidiaries
(collectively referred to herein as "SCO"), with its place of business at [redacted], Lindon,
Utah 84042, U.S.A., and Everyones Internet EV1, a corporation of the State of Texas, (referred to herein as
"Licensee"), with its place of business at [address redacted] Texas 77098.
WHEREAS, SCO owns all right, title and interest in and to certain SCO intellectual property (as hereinafter
defined); and
WHEREAS, Licensee is in the business of providing hosting services through its hosting centers; and
WHEREAS, SCO wishes to grant and Licensee wishes to obtain certain limited rights and licenses to use SCO IP,
which rights Licensee wishes to accept, all in accordance with the terms and conditions hereinafter set forth;
NOW, THEREFORE, in consideration of the mutual promises made herein it is agreed as follows:
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1.0 DEFINITIONS
1.1 "Code" shall mean computer programming instructions.
1.2 "CPU " means a single physical computer processor.
1.3 "Customer" means those entities who purchase hosting services from Licensee's through Licensee's
hosting center.
1.4 "Desktop System" means a single user computer workstation controlled by a single instance of the
Operating System. It may provide personal productivity applications, web browsers and other client
interfaces (e.g., mail, calendering, instant messaging, etc). It may not host services for clients on
other systems.
1.5 "General Purpose Computer System" means a commercially available system which is intended to be
reprogrammable by the end user and is either (i) intended for primary use as a general purpose
business computer, a personal computer, or a scientific/technical workstation; or (ii) part of a network
configuration whose primary purpose is for executing general application programs supporting
general business, personal, or scientific/technical activities.
1.6 "Method" means the human or machine methodology for, or approach to, design, structure,
modification, upgrade, de-bugging, tuning, improvement or adaptation of Code.
1.7 "Object Code" means the Code that results when Source Code is processed by a software compiler
and is directly executable by a computer.
1.8 "Operating System" means software operating system Code (or Code that substantially performs the
functions of an operating system) that is a distribution, rebranding, modification or derivative work
of the Linux operating system.
1.9 "Point of Sale/Embedded System" means a computer system, controlled by a single instance of the
Operating System, that can not be used as a General Purpose Computer System and, as such, is (1)
restricted in normal use to the execution of a predefined set of special purpose applications, and (2)
does not allow an end user, directly or indirectly, to (i) add or run general purpose application
software; (ii) add or administer users; or (iii) provide system administration functions other than
diagnostics and maintenance.
1.10 "SCO IP" means the SCO intellectual property included in its UNIX-based Code in Object Code
format licensed by SCO under SCO's standard commercial license.
1.11 "Software" means the Operating System in Object Code format.
1.12 "Source Code" means the human-readable form of the Code and related system documentation,
including all comments and any procedural language.
1.13 "System" means a computer system, containing the licensed CPUs, controlled by a single instance of
the Operating System.
1.14 "UNIX-based Code" means any Code or Method that: (i) in its literal or non-literal expression,
structure, format use, functionality or adaptation (ii) is based on, developed in, derived from or is
similar to (iii) any Code contained in or Method devised or developed in (iv) UNIX System V or
UnixWare, or (v) any modification or derivative work based on or licensed under UNIX System V
or UnixWare.
1.15 "Update" means the updates or revisions in Object Code format of the Software that You may receive.
Update shall not include any alteration, modification or derivative work of the Operating System
prepared by You.
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1.0 DEFINITIONS
1.1 "Code" shall mean computer programming instructions.
1.2 "Customer" means those persons and entities who now or hereafter
purchase, lease, license, subscribe to, or otherwise obtain ISP
Business and Hosting Business services, or both, from Licensees.
1.3 "Method" means the human or machine methodology for, or approach to, design, structure,
modification, upgrade, de-bugging, tuning, improvement or adaptation of Code.
1.4 "Network System" means the computers and computer network
systems and equipment utilized by Licensee to provide ISP Business and
Hosting Business services (including, without limitation, all servers
owned, lessed, licensed, or utilized and controlled by Licensee to
operate, conduct, and maintain the Businesses), or both, to its
Customers and the computers and computer network systems and equipment
utilized by Licensee in connection with its internal business
operations.
1.5 "Object Code" means the Code that results when Source Code is processed by a software compiler
and is directly executable by a computer.
1.6 "Operating System" means software operating system Code (or Code that substantially performs the
functions of an operating system) that is a distribution, rebranding, modification or derivative work
of the Linux operating system.
1.7 "SCO IP" means the SCO intellectual property alleged by SCO to be
included, embodied, or otherwise utilized in the Operating System.
1.8 "Software" means the Operating System in Object Code format.
1.9 "Source Code" means the human-readable form of the Code and related system documentation,
including all comments and any procedural language.
1.10 "UNIX-based Code" means any Code or Method that: (i)
in its literal or non-literal expression, structure, format, use,
functionality or adaptation (ii) is based on, developed in, derived
from or is similar to (iii) any Code contained in or Method devised or
developed in (iv) UNIX System V or UnixWare, or (v) any modification or
derivative work based on or licensed under UNIX System V or UnixWare.
1.11 "Update" means the updates or revisions in Object Code format of
the Software that You may receive. To the extent that the SCO IP
includes patents, "Update" shall include all extensions, divisionals,
continuations, continuations-in-part, examinations and reissue patents
of such patents, as well as patent applications thereof. TO the extent
that the SCO IP includes copyrights "Update" shall include any and all
renewals and extensions thereof..
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2.0 GRANT OF RIGHTS
2.1 SCO hereby grants Licensee and Licensee hereby accepts from SCO the
following limited, non-exclusive, non-transferable right and license to
use SCO IP, for its internal business purposes and its Customers who
purchase system and application hosting services from Licensee,
concurrent with run-time use of the Operating System, in Object Code
format only on Systems owned by and under the control of Licensee, for
which Licensee has paid the applicable licensing fee to SCO. Anything
herein to the contrary notwithstanding, Licensee shall have the right
to make copies of the SCO IP so long as such copies are used in
connection with the properly licensed SCO IP hereunder solely for
back-up and recovery purposes.
2.2 Except as otherwise expressly provided in Section 2.1 above, no right to copy, modify, distribute,
transfer or alter any part of the Operating System or the Software is granted under this Agreement.
2.3 No right to create derivative works or modifications of UNIX-based Code, or any other software
owned or licensed by SCO is granted under this Agreement.
2.4 This Agreement does not grant the right to receive any distribution of software from SCO or any third
party.
2.5 This Agreement does not extend to contractors or joint venture partners of Licensee. No third party
shall acquire any additional rights under this Agreement by acquisition of the assets or stock of
Licensee or the merger with or acquisition of a third party. Specifically but without limitation, an
acquiring company shall not and is not intended to receive for itself any benefit of the SCO waiver of
claims and covenant that is extended to Licensee under the Covenant and Waiver of Certain Claims
provisions of this Agreement. Conversely, Licensee shall not acquire any additional rights under this
Agreement by acquisition of the assets or stock of a third party. In any stock or asset acquisition of a
third party, the release of claims and covenant shall not extend to or benefit Licensee with respect to
any infringing use of Software or the Operating System by any third party acquired by Licensee after
the date of this Agreement. Anything herein to the contrary notwithstanding, Licensee may request
additional licenses hereunder to cover any acquired third party and such request shall not be
unreasonably denied by SCO.
2.6 No right may be implied beyond those expressly granted hereunder. Any ambiguity in this Grant of
Rights or Agreement will be resolved against the grant of any additional right not specifically and
expressly granted hereunder.
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2.0 GRANT OF RIGHTS
2.1 SCO hereby grants Licensee and Licensee hereby accepts from SCO the
following limited, non-exclusive, worldwide and perpetual, subject to
Section 6, right and license to use SCO IP solely in Object Code
format, for or in connection with: (a) Licensee's internal business
purposes; (b) the Network Systems owned, lessed, licensed, or utilized
and controlled by Licensee to operate, conduct, and maintain the
Businesses; and (c) providing ISP Business and Hosting Business
services, or both, to the Customers through Licensee's hosting
center(s) identified in Exhibit A of this Agreement. Subject to the
provisions included in Sectin 2.5 below, such changes and or additions
to Licensee's hosting centers whall not require additional SCO IP
license fees. Anything herein to the contrary notwithstanding, Licensee
shall have the right to make a reasonable number of copies of the SCO
IP so long as such copies are used in connection with the properly
licensed SCO IP hereunder solely for archival, back-up and recovery
purposes.
2.2 Except as otherwise expressly provided in Section 2.1 above, no right to copy, modify, distribute,
transfer or alter any part of the Operating System or the Software is granted under this Agreement.
2.3 No right to create derivative works or modifications of UNIX-based Code, or any other software
owned or licensed by SCO is granted under this Agreement.
2.4 This Agreement does not grant the right to receive any distribution of software from SCO.
2.5 This Agreement does not extend to contractors or joint venture partners of Licensee. No third party
shall acquire any additional rights under this Agreement by acquisition of the assets or stock of
Licensee or the merger with or acquisition of a third party. Specifically but without limitation, an
acquiring company shall not and is not intended to receive for itself any benefit of the SCO waiver of
claims and covenant that is extended to Licensee under the Covenant and Waiver of Certain Claims
provisions of this Agreement. Conversely, Licensee shall not acquire any additional rights under this
Agreement by acquisition of the assets or stock of a third party. In any stock or asset acquisition of a
third party, the release of claims and covenant shall not extend to or benefit Licensee with respect to
any infringing use of SCO IP by any third party. Anything herein to the contrary notwithstanding, Licensee may request
additional licenses hereunder to cover any acquired third party and such request shall not be
unreasonably denied by SCO.
Notwithstanding anything
contained herein to the contrary, should
Licensee decide to sell its interest in either, or both, of the
Businesses, SCO grants Licensee a one-time right to assign this
license, with the exception of Section 9.2 which is hereby excluded
from any such assignment, to a third party (hereinafter referred to as
a "Purchaser") who purchases either or both Businesses. In such case
Purchaser shall, provided such Purchaser agrees, in writing to SCO, to
be bound by the terms and conditions of this Agreement, have the
limited rights granted to Licensee pursuant to this Agreement, with the
exception of Section 9.2, solely for the Network Systems covered by
this Agreement at the time of transfer to the extent, and only to the
extent, the limited rights transferred relate to those assets of the
Business purchased. The limited assignment right granted in this
Section shall further extend to a Purchaser of the Hosting Business,
for said Purchaser's organic growth of the Hosting Business only
through the addition of Customers and the resulting additional Network
Systems required to service such additional Customers directly related
to the Hosting Business so acquired from Licensee. The extension of the
limited assignment right to such growth specifically excludes additions
or growth by Purchaser through joint ventures, mergers, acquisitions of
the assets or stock of a third party, and shall not apply to any other
assets, businesses, including the ISP Business or uses owned or
controlled by such Purchaser or any other prior or concurrent uses of
the SCO IP by Purchaser either before or after the transaction with
Licensee. Furthermore, and notwithstanding anything contained herein to
the contrary, in the event Licensee spins-off either the ISP Business
or Hosting Business into a new entity under majority ownership control
of Licensee, then provided such spin-off entity agrees, in writing to
SCO, to be bound by the terms and conditions of this Agreement, such
spin-off entity shall be entitled to the benefits of the waiver,
releases, and indemnities contained herein to the extent, and only to
the extent, as such rights, uses, waivers, releases and indemnities
rrelate to those assets, businesses, and uses covered by this Agreement
and shall not extend to any other assets, businesses or uses owned or
controlled by such spin-off entity or any other prior or concurrent
uses of the SCO IP by such spin-off entity.
Licensee shall keep full, clear and accurate records with respect to
all servers owned, lessed, licensed, or utilized and controlled by
Licensee to operate, conduct, and maintain the Businesses. Such records
shall contain all information necessary to determine compliance with
this Section 2.5.
2.6 No right may be implied beyond those expressly granted hereunder. Any ambiguity in this Grant of
Rights or Agreement will be resolved against the grant of any additional right not specifically and
expressly granted hereunder.
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3.0 SCO COVENANT AND WAIVER OF CERTAIN CLAIMS
Provided Licensee does not exceed the Grant of Rights under this Agreement from and after the date hereof,
SCO will not consider such use of the SCO IP licensed by Licensee under this Agreement to be in violation
of SCO's intellectual property ownership rights and SCO shall not bring any legal action alleging
infringement of the SCO IP by Licensee or Licensee's Customers.
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3.0 SCO COVENANT AND WAIVER OF CERTAIN CLAIMS
Upon full payment of the one-time licensing fee described in Exhibit A
of this Agreement, SCO will not consider such use of the SCO IP or
future use of the SCO IP and Updates licensed by Licensee under the
rights granted under this Agreement (provided Licensee does not exceed
the Grant of Rights under the Agreement) to be in violation of SCO's
intellectual property ownership rights and SCO shall not bring any
legal action alleging infringement of the SCO IP by Licensee or
Licensee's Customers for usage of SCO IP solely in connection with
Licensee's Businesses. In that regard, upon full payment of the license
fee described in Exhibit A of this Agreement, Licensee and its
Customers shall be forever released and discharged from any and all
claims, liabilities, suits, demands, or obligations arising from any
authorized use of the SCO IP in connection with: (a) Licensee's
internal business purposes; (b) the Network Systems owned, lessed,
licensed, or utilized and controlled by Licensee to operate, conduct,
and maintain the Businesses; and (c) providing ISP Business and Hosting
Business services by Licensee to its Customers through the date of the
final payment of the one-time licensing fee. Nothing contained herein
shall be deemed, interpreted or construed as an admission of liability
on the part of Licensee for any unauthorized use of the SCO IP prior to
the date hereof.
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4.0 ORDERS, PRICE AND PAYMENT
4.1 Licensee will pay the applicable licensing fee included in Exhibit A of this Agreement to SCO.
4.2 Licensee's order for licenses under this Agreement is included in Exhibit A of this Agreement. SCO
shall invoice Licensee, at the time of execution of this Agreement, pursuant to the information
provided for in Exhibit A.
4.3 License Fees are exclusive of all applicable taxes. Licensee agrees to pay all taxes associated with
right-to-use licenses ordered under this Agreement, including but not limited to sales, use, excise,
added value and similar taxes and all customs, duties or governmental impositions, but excluding
taxes on SCO's net income.
4.4 All fees, costs and charges shall be due and payable thirty (30) days from date of receipt of invoice.
SCO may charge Licensee interest at the rate of 1 1/2 percent per month, or such maximum rate as
may be permitted by law, whichever shall be less, with respect to any sum that is not paid when due.
4.5 Licensee shall make all payments in United States Dollars -- or as agreed to in writing by the parties.
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4.0 ORDERS, PRICE AND PAYMENT
4.1 Licensee will pay the applicable licensing fee included in Exhibit A of this Agreement to SCO.
4.2 Licensee's order for licenses under this Agreement is included in Exhibit A of this Agreement. SCO
shall invoice Licensee, at the time of execution of this Agreement, pursuant to the information
provided for in Exhibit A.
4.3 License Fees are exclusive of all applicable taxes. Licensee agrees to pay all taxes associated with
right-to-use licenses ordered under this Agreement, including but not limited to sales, use, excise,
added value and similar taxes and all customs, duties or governmental impositions, but excluding
taxes on SCO's net income.
4.4 All fees, costs and charges shall be due and payable thirty (30) days from date of receipt of invoice.
SCO may charge Licensee interest at the rate of 1 1/2 percent per month, or such maximum rate as
may be permitted by law, whichever shall be less, with respect to any sum that is not paid when due.
4.5 Licensee shall make all payments in United States Dollars -- or as agreed to in writing by the parties.
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5.0 RECORD KEEPING AND AUDIT
5.1 Licensee shall keep full, clear and accurate records with respect to licenses granted hereunder for the
Systems owned or operated by Licensee. Such records shall contain all information necessary to
determine all fees due hereunder and shall be maintained for a period of five (5) years.
5.2 Licensee hereby grants SCO the right to cause an audit to be made with respect to the fees due
hereunder. If any discrepancies are found with respect to Licensee's payment of fees due hereunder
then a prompt adjustment shall be made by the proper party to compensate for any errors or omissions
disclosed by such audit. Any such audit shall be conducted no more frequently than once per
calendar year, during regular business hours at Licensee's offices and in such a manner as not to
interfere with Licensee's normal business activities. In the event that an audit discloses an
underpayment by Licensee to SCO of the lesser of five percent (5%) or the equivalent of Five
Thousand United States Dollars ($5,000), then Licensee shall pay for the cost of the audit, within
thirty (30) days of demand therefore.
5.3 In the event that SCO makes any claim against Licensee for payment with respect to such audit, upon
written request, SCO agrees to promptly make available to Licensee, its records and reports and those
prepared for SCO by third parties pertaining to the audit.
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[Removed]
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6.0 TERM OF AGREEMENT; OBLIGATIONS UPON TERMINATION
This Agreement shall remain in effect until terminated as set forth herein. Licensee may terminate this
Agreement without any right to refund or reimbursement by notifying SCO of such termination. SCO may
terminate this Agreement, upon thirty (30) days notice and without judicial or administrative resolution, if
Licensee or any of Licensee's employees, consultants or Customers breach any material term or condition
hereof and such breach is not cured within such thirty (30) day period.
Upon the termination of this Agreement for any reason, all rights granted to Licensee hereunder will cease.
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5.0 TERM OF AGREEMENT; OBLIGATIONS UPON TERMINATION
This Agreement shall remain in effect until terminated as set forth herein. Licensee may terminate this
Agreement without any right to refund or reimbursement by notifying SCO of such termination. SCO may
terminate this Agreement, upon thirty (30) days notice and without judicial or administrative resolution, if
Licensee or any of Licensee's employees, consultants or Customers breach any material term or condition
hereof and such breach is not cured within such thirty (30) day period.
Upon the termination of this Agreement for any reason, all rights
granted to Licensee hereunder will cease; PROVIDED, however, that
Licensee's rights of indemnity for Licensee claims arising during the
term hereof shall survive the termination of this Agreement.
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7.0 PROPRIETARY NATURE OF SCO PRODUCTS AND OWNERSHIP
SCO represents and warrants that UNIX-based Code and related materials, and all copyrights, trade secret
and other intellectual and proprietary rights therein, are and remain the valuable property of SCO and its
suppliers.
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6.0 PROPRIETARY NATURE OF SCO PRODUCTS AND
OWNERSHIP
SCO represents and warrants that it has full right and
title to grant the rights hereunder to the SCO IP and related
materials, and all copyrights, trade secret and other intellectual and
proprietary rights therein, are and remain the valuable property of SCO and its
suppliers. SCO makes no representations or guarantees concerning the
outcome of any pending or potential litigation, as outlined above, regarding
SCO's claims of violations of its IP or contractual rights in the Operating
System. Licensee acknowledges that SCO's claims regarding its IP as it relates
to the Operating System are being litigated in one or more cases, with possibly
more litigation to follow, and that SCO has not guaranteed that it will
ultimately prevail in any of this litigation. Licensee, to avoid any such
litigation and to effectuate a productive and prompt resolution of any and all
issues relating to the use of SCO's IP, desires to obtain this
license. |
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8.0 LIMITATION OF WARRANTY
SCO MAKES NO WARRANTIES OF ANY KIND EXPRESS OR IMPLIED WITH RESPECT TO ANY
RIGHTS OTHER THAN TO THE SCO IP DEFINED BY THIS AGREEMENT.
SCO WARRANTS THAT IT IS ENPOWERED TO GRANT THE RIGHTS AND LICENSES GRANTED
HEREIN.
EXCEPT AS SET EXPLICITLY FORTH IN THE PRECEDING SENTENCE, ALL WARRANTIES,
TERMS, CONDITIONS, REPRESENTATIONS, INDEMNITIES AND GUARANTEES WITH RESPECT
TO THE RIGHTS, WHETHER EXPRESS OR IMPLIED, ARISING BY LAW, CUSTOM, PRIOR ORAL
OR WRITTEN STATEMENTS BY ANY PARTY OR OTHERWISE (INCLUDING, BUT NOT LIMITED
TO ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR
ANY IMPLIED WARRANTY OF NON INFRINGEMENT OF THIRD PARTY INTELLECTUAL
PROPERTY RIGHTS) ARE HEREBY OVERRIDDEN, EXCLUDED AND DISCLAIMED. SOME
STATES OR COUNTRIES DO NOT ALLOW THE EXCLUSION OF IMPLIED WARRANTIES, SO THE
ABOVE EXCLUSION MAY NOT APPLY.. THIS WARRANTY GIVES SPECIFIC LEGAL RIGHTS
AND LICENSEE MAY ALSO HAVE OTHER RIGHTS WHICH VARY FROM STATE TO STATE OR
COUNTRY TO COUNTRY.
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7.0 LIMITATION OF WARRANTY
SCO MAKES NO WARRANTIES OF ANY KIND EXPRESS OR IMPLIED WITH RESPECT TO ANY
RIGHTS OTHER THAN TO THE SCO IP DEFINED BY THIS AGREEMENT.
SCO WARRANTS THAT IT IS ENPOWERED TO GRANT THE RIGHTS AND LICENSES GRANTED
HEREIN.
EXCEPT AS SET EXPLICITLY FORTH IN THE PRECEDING SENTENCE, ALL WARRANTIES,
TERMS, CONDITIONS, REPRESENTATIONS, INDEMNITIES AND GUARANTEES WITH RESPECT
TO THE RIGHTS, WHETHER EXPRESS OR IMPLIED, ARISING BY LAW, CUSTOM, PRIOR ORAL
OR WRITTEN STATEMENTS BY ANY PARTY OR OTHERWISE (INCLUDING, BUT NOT LIMITED
TO ANY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR
ANY IMPLIED WARRANTY OF NON INFRINGEMENT OF THIRD PARTY INTELLECTUAL
PROPERTY RIGHTS) ARE HEREBY OVERRIDDEN, EXCLUDED AND DISCLAIMED. SOME
STATES OR COUNTRIES DO NOT ALLOW THE EXCLUSION OF IMPLIED WARRANTIES, SO THE
ABOVE EXCLUSION MAY NOT APPLY.. THIS WARRANTY GIVES SPECIFIC LEGAL RIGHTS
AND LICENSEE MAY ALSO HAVE OTHER RIGHTS WHICH VARY FROM STATE TO STATE OR
COUNTRY TO COUNTRY.
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9.0 LIMITION OF LIABILITY
UNDER NO CIRCUMSTANCES WILL SCO OR ITS REPRESENTATIVES BE LIABLE FOR ANY
CONSEQUENTIAL, INDIRECT, SPECIAL, PUNITIVE, OR INCIDENTAL DAMAGES, WHETHER
FORESEEABLE OR UNFORESEEABLE, BASED ON LICENSEE'S CLAIMS OR THOSE OF ITS
CUSTOMERS (INCLUDING BUT NOT LIMITED TO, CLAIMS FOR LOSS OF DATA, GOODWILL,
PROFITS, USE OF MONEY OR USE OF THE SCO PRODUCTS, INTERRUPTION IN USE OR
AVAILABILITY OF DATA, STOPPAGE OF OTHER WORK OR RAPAIRMENT OF OTHER ASSETS,
TRADEMARK, PATENT OR COPYRIGHT INFRINGEMENT), ARISING OUT OF BREACH OR
FAILURE OF EXPRESS OR IMPLIED WARRANTY, BREACH OF CONTRACT,
MISREPRESENTATION, NEGLIGENCE, STRICT LIABILITY IN TORT OR OTHERWISE, EXCEPT
ONLY IN THE CASE OF PERSONAL INJURY WHERE AND TO THE EXTENT THAT APPLICABLE
LAW REQUIRES SUCH LIABILITY IN NO EVENT WILL-THE AGGREGATE LIABILITY WHICH
SCO MAY INCUR IN ANY ACTION OR PROCEEDING ARISING OUT OF THIS AGREEMENT OR
OTHERWISE EXCEED THE TOTAL AMOUNT ACTUALLY PAID BY LICENSEE TO SCO FOR THE
LICENSE OF THE SCO PRODUCT THAT DIRECTLY CAUSED THE DAMAGE.
SOME JURISDICTIONS DO NOT ALLOW THE LIMITATION OF EXCLUSION OF LIABILITY FOR
INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES SO THE ABOVE
LIMITATION MAY NOT APPLY IN CERTAIN CIRCUMSTANCES..
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8.0 LIMITATION OF LIABILITY
UNDER NO CIRCUMSTANCES WILL SCO OR ITS REPRESENTATIVES BE LIABLE FOR ANY
CONSEQUENTIAL, INDIRECT, SPECIAL, PUNITIVE, OR INCIDENTAL DAMAGES, WHETHER
FORESEEABLE OR UNFORESEEABLE, BASED ON LICENSEE'S CLAIMS OR THOSE OF ITS
CUSTOMERS (INCLUDING BUT NOT LIMITED TO, CLAIMS FOR LOSS OF DATA, GOODWILL,
PROFITS, USE OF MONEY OR USE OF THE SCO PRODUCTS, INTERRUPTION IN USE OR
AVAILABILITY OF DATA, STOPPAGE OF OTHER WORK OR RAPAIRMENT OF OTHER ASSETS,
TRADEMARK, PATENT OR COPYRIGHT INFRINGEMENT), ARISING OUT OF BREACH OR
FAILURE OF EXPRESS OR IMPLIED WARRANTY, BREACH OF CONTRACT,
MISREPRESENTATION, NEGLIGENCE, STRICT LIABILITY IN TORT OR OTHERWISE, EXCEPT
ONLY IN THE CASE OF PERSONAL INJURY WHERE AND TO THE EXTENT THAT APPLICABLE
LAW REQUIRES SUCH LIABILITY IN NO EVENT WILL THE AGGREGATE LIABILITY WHICH
SCO MAY INCUR IN ANY ACTION OR PROCEEDING ARISING OUT OF THIS AGREEMENT OR
OTHERWISE EXCEED THE TOTAL AMOUNT ACTUALLY PAID BY LICENSEE TO SCO FOR THE
LICENSE OF THE SCO PRODUCT THAT DIRECTLY CAUSED THE DAMAGE.
SOME JURISDICTIONS DO NOT ALLOW THE LIMITATION OF EXCLUSION OF LIABILITY FOR
INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES SO THE ABOVE
LIMITATION MAY NOT APPLY IN CERTAIN CIRCUMSTANCES.
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10. LICENSEE INDEMNIFICATION
Licensee will defend, indemnify and hold harmless SCO, its parents and subsidiaries, against any third party
claim against it for loss, damage, liability or expense (including but not limited to attorneys' fees) arising
out of any unauthorized representations, warranties, or willful acts or omissions of Licensee in connection
with its activities under this Agreement.
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9. INDEMNIFICATION
9.1 Licensee will defend, indemnify and hold harmless SCO, its parents and subsidiaries, against any third party
claim against it for loss, damage, liability or expense (including but not limited to attorneys' fees) arising
out of any unauthorized representations, warranties, or willful acts or omissions of Licensee in connection
with its activities under this Agreement.
9.2 SCO shall indemnify and hold Licensee harmless from and against
and defend any claim, suit or proceeding, and pay any settlement
amounts or damages awarded by a court of final jurisdiction, for claims
filed by a third party against Licensee claiming damages caused by a
breach of SCO's representations and warranties set forth in this
Agreement and claims that the SCO IP infringes any copyright, patent, trade mark or other intellectual property right,
provided Licensee promptly notifies SCO in writing of any such claim,
suit or proceeding, and permits SCO to control the settlement or
defense thereof. Licensee has the option to be represented by Counsel
at its own expense.
If, pursuant to any such claim, a court of competent jurisdiction
removes or restricts Licensee's right to continue to exercise it rights
granted hereunder to the SCO IP, SCO shall, at its sole option (i)
procure for Licensee the right to continue to exercise it rights
granted hereunder to the SCO IP; (ii) modify the SCO IP, provided the
functionality thereof is not substantially affected, so as to make it
non-infringing; or (iii) refund the Net License Fees paid SCO
discounted over a three (3) year period, subject to a pro rata
adjustment for prior usage of the SCO IP. In addition, SCO shall have
the right to exercise any of options (i) through (iii) at any time
following receipt of a claim of infringement of copypright or other
proprietary right.
SCO shall have no obligation under this section with respect to any
claim of infringement of a proprietary right based upon any
modification of the SCO IP by Licensee or any other entity or the
combination, operation or use of SCO IP with materials not supplied by
SCO provided that it is such modification, combination, operation or
use which caused the claimed infringement.
THE ABOVE STATES THE ENTIRE LIABILITY OF SCO WITH RESPECT TO
INFRINGEMENT OF PATENTS, COPYRIGHTS, TRADEMARKS OR ANY OTHER FORM OF
INTELLECTUAL PROPERTY RIGHT BY ANY PRODUCT SUPPLIED BY SCO.
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11.0 MISCELLANEOUS
11.1 Neither party shall be liable for any delay or failure in its performance hereunder due to any cause
beyond its control provided, however, that this provision shall not be construed to relieve Licensee of
its obligation to make any payments pursuant to this Agreement.
11.2 Licensee may not assign, sublicense, rent lend, lease, pledge or otherwise transfer or encumber this
Agreement or the rights granted under this Agreement the SCO IP, any of the individual licenses
granted under it or Licensee's rights or obligations hereunder Any purported assignment shall be
null and void. Change of control is deemed an assignment and not effective without SCO's express
written consent.
11.3 All notices and requests in connection with this Agreement may be sent or delivered to the addresses
above by hand, by certified mail return receipt requested, by fax, or by courier.
11.4 Support and maintenance are not available under this Agreement.
11.5 This Agreement shall be governed by, and construed and
enforced in accordance with, the laws of the State of Utah and the
United States of America, specifically excluding the United Nations
Convention on Contracts for the International Sale of Goods, and
without giving effect to conflict of laws. Any litigation or
arbitration between the Parties shall be conducted exclusively in the
State of Utah. Licensee expressly consents to the jurisdiction of such
courts. Process may be served by U.S. mail, postage prepaid, certified
or registered, return receipt requested, by express courier such as DHL
or Federal Express, or by such other method as is authorized by law.
Nothing in this Section will prevent SCO from seeking injunctive relief
against Licensee or filing legal actions for payment of outstanding and
past due debts in the courts.
11.6 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
unpaired thereby. The Parties will seek in good faith to agree on replacing an invalid, illegal, or
unenforceable provision with a valid, legal, and enforceable provision that, in effect, will, from an
economic viewpoint most nearly and fairly approach the effect of the invalid, illegal, or
unenforceable provision.
11.7 Each Party acknowledges that the parties to this Agreement are independent contractors and that it
will not, except in accordance with this Agreement, represent itself as an agent or legal representative
of the other. This Agreement does not create a joint venture or fiduciary relationship of any kind
between the Parties.
11.8 Company represents and warrants that all consents of governmental officials necessary for this
Agreement to become effective have been obtained, or will be obtained, before Company places any
orders under this Agreement. Company will comply, at its own expense, with all statutes,
regulations, rules, ordinances, and orders of any governmental body, department or agency that apply
to or result from Company's obligations under this Agreement.
11.9 No High Risk Activities: The SCO IP is NOT fault-tolerant and are not designed, manufactured or
intended for use or resale as on-line control equipment in hazardous environments requiring fail-safe
performance, such as in the operation of nuclear facilities, aircraft navigation or communication
systems, air traffic control, direct life support machines, or weapons systems, in which the failure of
the Product could lead to death, personal injury, or severe physical or environmental damage ("High
Risk Activities"). SCO specifically disclaims any express or implied warranty of fitness for High
Risk Activities.
11.10 This Agreement (including all Exhibits) sets forth the entire understanding and supersedes and
merges all prior and contemporaneous agreements between the parties relating to the subject matter
contained herein. Neither Party shall be bound by any provision, amendment or modification other
than as expressly stated in or contemplated by this Agreement or as subsequently shall be set forth in
writing and executed by a duly authorized representative of the Party to be bound thereby.
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10.0 MISCELLANEOUS
10.1 Neither party shall be liable for any delay or failure in its performance hereunder due to any cause
beyond its control provided, however, that this provision shall not be construed to relieve Licensee of
its obligation to make any payments pursuant to this Agreement.
10.2 Except as otherwise provided for Section 2.5, Licensee may not
assign, sublicense, rent, lend, lease, pledge or otherwise transfer or
encumber this Agreement or the rights granted under this Agreement, the
SCO IP or Licensee's rights or obligations hereunder without SCO prior
written consent which shall not be unreasonably withheld. Any purported
assignment shall be null and void. Change of control is deemed an
assignment and not effective without SCO's express written consent.
10.3 All notices and requests in connection with this Agreement may be sent or delivered to the addresses
above by hand, by certified mail return receipt requested, by fax, or by courier.
10.4 Support and maintenance are not available under this Agreement.
10.5 This Agreement shall be governed by, and construed and enforced in
accordance with, the laws of the State of Utah and the United States of
America, specifically excluding the United Nations Convention on
Contracts for the International Sale of Goods, and without giving
effect to conflict of laws. Any litigation or arbitration between the
Parties shall be conducted exclusively in the State of Utah. Licensee
expressly consents to the jurisdiction of such courts. Process may be
served by U.S. mail, postage prepaid, certified or registered, return
receipt requested, by express courier such as DHL or Federal Express,
or by such other method as is authorized by law. Nothing in this
Section will prevent SCO from seeking injunctive relief against
Licensee or filing legal actions for payment of outstanding and past
due debts in the courts.
10.6 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
unpaired thereby. The Parties will seek in good faith to agree on replacing an invalid, illegal, or
unenforceable provision with a valid, legal, and enforceable provision that, in effect, will, from an
economic viewpoint most nearly and fairly approach the effect of the invalid, illegal, or
unenforceable provision.
10.7 Each Party acknowledges that the parties to this Agreement are independent contractors and that it
will not, except in accordance with this Agreement, represent itself as an agent or legal representative
of the other. This Agreement does not create a joint venture or fiduciary relationship of any kind
between the Parties.
10.8 SCO and Licensee represent and warrant that all consents of
governmental officials necessary for this Agreement to become effective
have been obtained, or will be obtained, before the parties execute
this Agreement. Each party will comply, at its own expense, with all
statutes, regulations, rules, ordinances, and orders of any governmental body, department or agency that apply
to or result from such party's obligations under this Agreement.
10.9 No High Risk Activities: The SCO IP is NOT fault-tolerant and are not designed, manufactured or
intended for use or resale as on-line control equipment in hazardous environments requiring fail-safe
performance, such as in the operation of nuclear facilities, aircraft navigation or communication
systems, air traffic control, direct life support machines, or weapons systems, in which the failure of
the Product could lead to death, personal injury, or severe physical or environmental damage ("High
Risk Activities"). SCO specifically disclaims any express or implied warranty of fitness for High
Risk Activities.
10.10 This Agreement (including all Exhibits) sets forth the entire understanding and supersedes and
merges all prior and contemporaneous agreements between the parties relating to the subject matter
contained herein. Neither Party shall be bound by any provision, amendment or modification other
than as expressly stated in or contemplated by this Agreement or as subsequently shall be set forth in
writing and executed by a duly authorized representative of the Party to be bound thereby.
10.11 This Agreement may be executed in any number of counterparts
and via facsimile, each of which shall be deemed an original
instrument, but all of which together shall constitute only one and the
same instrument.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement, effective as of the last date properly
executed by both parties. All signed copies of this Agreement shall be deemed originals.
| THE SCO GROUP, INC |
LICENSEE |
By:
|
............................ |
By:
|
............................ |
Name:
|
............................ |
Name:
|
............................ |
Title:
|
............................ |
Title:
|
............................ |
Date:
|
............................ |
Date:
|
............................ |
® Linux is a registered trademark of Linus Torvalds in the US and other countries.
® UNIX and UnixWare are a registered trademarks of The Open Group in the US and other countries.
|
IN WITNESS WHEREOF, the parties hereto have executed this Agreement, effective as of the last date properly
executed by both parties. All signed copies of this Agreement shall be deemed originals.
| THE SCO GROUP, INC |
EVERYONES INTERNET, LTD.
By its Sole General Partner, E. I. MANAGEMENT, LLC |
By:
|
............................ |
By:
|
..[signature].... |
Name:
|
............................ |
Name:
|
Robert Marsh |
Title:
|
............................ |
Title:
|
President |
Date:
|
............................ |
Date:
|
3/1/04 |
® Linux is a registered trademark of Linus Torvalds in the US and other countries.
® UNIX and UnixWare are a registered trademark of The Open Group in the US and other countries.
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| Draft - For review and discussion purposes - SCO Legal will provide executable documents. |
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EXHIBIT A
LICENSE FEES AND ADDITIONAL TERMS AND CONDITIONS
LICENSE FEES:
The following License Fees are not subject to any additional discounts and may not be used for purposes of
aggregating to any other SCO discounts.
Subject to Section 2 of this Agreement SCO grants licensee a limited, non-exclusive, non-transferable right and
license to use SCO IP, for its own internal business purposes, concurrent with run-time use of the Operating
System, in Object Code format only, on all Systems owned and operated by Licensee. Licensee agrees to pay SCO
the following License Fees:
| Total Site License Fee |
US$2,000,000 |
(total fee payable including advertising) |
| Less: Licensee Promotional Allowance |
US$ 600,000 |
(less promotional allocation) |
| SCO Discount/Contribution Allowance |
US$ 600,000 |
(less applied discount) |
Net License Fee |
US$800,000 |
(payable to SCO per below) |
Net License Fee will be paid pursuant to the following schedule:
Upon Execution -
US$ 100,000
March 31, 2004 - US$ 100,000
April 30, 2004 -
US$ 100,000
May 31, 2004 - US$ 100,000
June 30, 2004 -
US$ 100,000
July 31, 2004 -
US$ 100,000
August 31, 2004 -
US$ 100,000
September 30, 2004 -
US$ 100,000
Promotional Allowance:
In consideration of Licensee's commitment ($600,000 Promotional Allowance) to participate in mutually agreed
upon advertising campaign related to this Agreement, specifically excluding any pricing related information, SCO
is granting Licensee a reduction in Licensee Fees payable. Should Licensee fail to comply with this commitment,
the Net License Fee shall be adjusted accordingly. SCO and Licensee will mutually agree upon the costs to be
applied by Licensee toward satisfaction of its Promotional Allowance.
Both Parties will work together to complete a joint press release by the parties to be issued upon execution of this
Agreement. Licensee further agrees to favorably discuss the benefits of this Agreement in mutually agreed to
interviews including provide the an executive quote/endorsement that SCO can use in press releases, allow SCO to
write up a success story for its web site and press usage and Licensee agrees to talk with the press about SCO's
Intellectual Property License.
Licensee agrees to commence advertising campaign for national/international publications within the first thirty
(30) days of this Agreement SCO and Licensee reserve the right to approve final advertising copy prior to
distribution. Other advertising initiatives may include, but not to be limited to advertising and press release
opportunities, joint participation at events, or other venues, etc.
SCO and Licensee will jointly agree on press releases and other publicity related to this Agreement. SCO will be
free to reference Licensee as a licensee of the SCO Intellectual Property License subject to Licensee's prior
approval of the content. Such approval by Licensee shall not be unreasonably delayed or withheld. Approval shall
be deemed granted if SCO does not receive an objection from Licensee within five (5) business days of such
request. This includes but is not limited to references with industry and financial analysts.
Each Party will be free to reference the other as the licensor/licensee of the SCO Intellectual Property License
subject to the other party's prior approval of the content. Such approval shall not be unreasonably delayed or
withheld. Approval shall be deemed granted if the requesting party does not receive an objection within five (5)
business days of such request. This includes but is not limited to references with industry and financial analysts.
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EXHIBIT A
LICENSE FEES AND ADDITIONAL TERMS AND CONDITIONS
SCO's standard unit quantity discount applicable to SCO's US Price List
for one thousand (1,000) licenses is fifty percent (50%) for standard
corporate licensees and is applied to the cumulative unit purchases
made by a licensee under a Corporate Agreement.
In consideration for the estimated number of SCO IP Licenses to be
granted and the unique nature of the internet access services and
webhosting services business, including but not limited to the ongoing
changes to computer systems configurations, and Licensee's cooperation
and commitments agreed to below, including the fact that Licensee is
the first such company to seek such a license from SCO, SCO is agreeing
to the following License Fees.
LICENSE FEES:
The following one-time License Fee is not subject to any additional discounts and may not be used for purposes of
aggregating to any other SCO discounts.
In consideration for the rights,
licenses waivers and releases contained in the Agreement, Licensee agrees to pay SCO
the following one-time License Fees:
| Total Site License Fee |
US$1,400,000 |
(total fee payable including advertising) |
| Less: Licensee Promotional Allowance |
US$ 600,000 |
(less promotional allocation) |
Net License Fee |
US$800,000 |
(payable to SCO per below) |
Net License Fee will be paid pursuant to the following schedule:
Upon Execution -
US$ 100,000
March 31, 2004 - US$ 100,000
April 30, 2004 -
US$ 100,000
May 31, 2004 - US$ 100,000
June 30, 2004 -
US$ 100,000
July 31, 2004 -
US$ 100,000
August 31, 2004 -
US$ 100,000
September 30, 2004 -
US$ 100,000
Promotional Allowance:
In consideration of Licensee's commitment ($600,000 Promotional Allowance) to participate in mutually agreed
upon advertising campaign related to this Agreement, specifically excluding any pricing related information, SCO
is granting Licensee a reduction in Licensee Fees payable. Should Licensee fail to comply with this commitment,
the Net License Fee shall be adjusted accordingly. SCO and Licensee will mutually agree upon the costs to be
applied by Licensee toward satisfaction of its Promotional Allowance.
Both Parties will work together to complete a joint press release by the parties to be issued upon execution of this
Agreement. Licensee further agrees to favorably discuss the benefits of this Agreement in mutually agreed to
interviews including providing an executive quote/endorsement that SCO can use in press releases, allow SCO to
write up a success story for its web site and press usage and, Licensee agrees to talk with the press about SCO's
Intellectual Property License.
Licensee agrees to commence an advertising campaign for national/international publications within the first thirty
(30) days of this Agreement. SCO and Licensee reserve the right to approve final advertising copy prior to
distribution. Other advertising initiatives may include, but not to be limited to advertising and press release
opportunities, joint participation at events, or other venues, etc.
SCO and Licensee will jointly agree on press releases and other publicity related to this Agreement. SCO will be
free to reference Licensee as a licensee of the SCO Intellectual Property License subject to Licensee's prior
approval of the content. This includes but is not limited to references with industry and financial analysts.
Each Party will be free to reference the other as the licensor/licensee
of the SCO Intellectual Property License subject to the other party's
prior approval of the content. This includes but is not limited to
references with industry and financial analysts.
It is expressly agreed that wherever the prior approval or consent of
any party hereto is required under the terms hereof that the party from
whom such consent or approval is required (the "Receiving Party")
agrees not to unreasonably condition, withhold or delay such consent or
approval. Furthermore, the Receiving Party shall have five (5) days
from written requrest for same by the requesting party (the "Requesting
Party") to consent to or disapprove of such request, press release,
advertising, or any other item requiring concsent or approval hereunder
(an "Advertisement") and, if the Receiving Party disapproves of such
Advertisement it shall provide the Requesting party with written notice
thereof within such five (5) day period along with the particular
reasons for such disapproval and written editorial comments or
suggestions to the Advertisement which if incorporated therein by the
Requesting Party the Receiving Party would then be deemed to have
approved or consented to such Advertisement as modified.
Any notice, request, approval, consent or other communication required
or contemplated by this Agreement must be in writing, and may, unless
otherwise in this Agreement expressly provided, be given or be served
by depositing the same in the United States Postal Service, post-paid
and certified and addressed to the party to be notified, with return
receipt requested, or by delivering the same in person to such party
(or, in case of a corporate party, to an officer of such party), or by
prepaid telegram or express overnight mail service, when appropriate,
addressed to the party to be notified, or by facsimile to the facsimile
numbers below with confirmation of receipt. Notice deposited in the
mail in the manner hereinabove described shall be effective from and
after three (3) days (exclusive of Saturdays, Sundays and postal
holidays) after such deposit. Notice given in any other manner shall be
effective only if and when delivered to the party to be notified or at
such party's address for purposes of notice as set forth herein. For
purposes of notice the addresses of the parties shall, until changed as
herein provided, be as follows:
NOTICE AND APPROVALS:
For SCO: Chris Sontag
[address, fax]
For EV1: Robert Marsh
[address, fax]
LICENSEE'S HOSTING SITES:
Licensee is required to notify SCO in writing related to any changes or
additions to its hosting sites prior to any such change or addition.
....[address]....
....[address]....
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