Exhibit 10.51
Amendment to Master Distribution and License Agreement
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This Amendment is made this 14th day of February 1997
BY AND BETWEEN:
1. IBM Ireland Limited (formerly IBM Ireland Information Services Limited)
whose registered office is at ▇ ▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇ ▇, ▇▇▇▇ ("IISL")
AND
2. Seer Technologies, Inc., whose principal office is at ▇▇▇▇ ▇▇▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇, ▇▇▇▇, ▇.▇. ▇▇▇▇▇, ▇▇▇ ("Seer")
PREAMBLE:
A. On 6th April 1992, IISL and Seer entered into a Master Distribution and
License Agreement ("MDLA"). The MDLA specifies the terms and conditions
governing the marketing, distribution, training, maintenance and support
of Seer's HPS Software and Additional Software by IISL to third parties
in EMEA.
B. Article 6.2.3 thereof concerns the support and maintenance services
supplied by IISL on behalf of Seer (or on behalf of an Affliated IBM
Company) to third parties in EMEA. Such support and maintenance services
are specified in Attachment 5 of the MDLA.
C. Article 9 sets out, in detail, the provisions concerning the calculation
and payment of fees by Seer to IISL, for the support and maintenance
services referred to in Recital B above.
D. The parties acknowledge that the provisions in Article 9 are both complex
and out of date. Accordingly the parties have agreed to amend these
provisions, together with certain other provisions of the MDLA as
follows:
TERMS AGREED:
1. INTERPRETATION
---------------------
1.1 Save as expressly provided below, in interpreting this Amendment all
terms used shall bear the same meaning as defined in the MDLA.
1.2 References in this Amendment to:
1.2.1 "Agreement" shall mean the MDLA and Attachments 1 - 6 thereof;
1.2.2 "Article" shall refer to the corresponding terms and conditions of the
MDLA; and
1.2.3 "Attachment" shall refer to the corresponding attachment to the MDLA.
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1.2.4 "Services" shall mean, individually and collectively, the Level 1 and
Level 2 support services for HPS Software and Additional Software as
supplied by IISL or Affiliated IBM Company to Customers on Seer's
behalf, and as more particularly described in Article 6.2.3 and
Attachment 5, or any part thereof.
1.2.5 "Customer" shall refer to those customers in EMEA where Seer has, at
its sole option, decided that the Services shall be supplied by IISL or
Affiliated IBM Company, and to no other customer.
2. TERM & TERMINATION (Article 4.1)
-----------------------------------------
2.1 Article 4.1 is replaced in its entirety with the following:
"This Agreement as amended shall remain in force from 1st January 1997
until 31st December 1999 ("Period"). Thereafter this Agreement as
amended shall remain in force for successive periods of 12 months
("Extension") PROVIDED ALWAYS THAT the charges and payment terms have
been agreed by the parties in writing prior to the expiry of the Period
or any Extension thereof, whichever is appropriate.
"This Agreement may be terminated by either party upon not less than 90
days prior written notice to take effect on 31st December 1999 or at
any time thereafter."
3. PAYMENT (Article 9)
----------------------------
3.1 Article 9 is replaced in its entirety with the following:
"All charges payable by Seer and concerning the supply of Services by
IISL to Customers, may be invoiced quarterly in advance on or after the
dates specified in the Payment Schedule below. All such charges are
specified in the Payment Schedule and are fixed. Accordingly the
charges shall apply irrespective of the number or type of Customers
using the Services.
"Payment Schedule:
------------------------------------ ------------------------------------- ------------------------
Period Invoice Payment Date
------------------------------------ -------------------- ---------------- (Note 5 below)
Calendar Quarter Amount (US$) Invoice
Year (Note 1 below) Date
------------ ----------------------- -------------------- ---------------- ------------------------
1997 1st January 1997 - 367,000 1st February 28th February 1997
31st March 1997 1997
------------ ----------------------- -------------------- ---------------- ------------------------
1st April 1997 - 367,000 1st April 1997 30th April 1997
30th June 1997
------------ ----------------------- -------------------- ---------------- ------------------------
1st July 1997 - 366,000 1st July 1997 31st July 1997
30th September 1997
------------ ----------------------- -------------------- ---------------- ------------------------
1st October 1997 - 900,000 1st October See Note 2 below
31st December 1997 1997
------------ ----------------------- -------------------- ---------------- ------------------------
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------------------------------------ ------------------------------------- ---------------------
Period Invoice Payment Date
------------ ----------------------- -------------------- ---------------- (Note 5 below)
Calendar Quarter Amount (US$) Invoice
Year (Note 1 below) Date
------------ ----------------------- -------------------- ---------------- ---------------------
------------ ----------------------- -------------------- ---------------- ---------------------
1998 1st January 1998 - 400,000 1st January 31st January 1998
31st March 1998 1998
------------ ----------------------- -------------------- ---------------- ---------------------
1st April 1998 - 400,000 1st April 1998 30th April 1998
30th June 1998
------------ ----------------------- -------------------- ---------------- ---------------------
1st July 1998 - 400,000 1st July 1998 31st July 1998
30th September 1998
------------ ----------------------- -------------------- ---------------- ---------------------
1st October 1998 - 900,000 1st October See Note 3 below
31st December 1998 1998
------------ ----------------------- -------------------- ---------------- ---------------------
------------ ----------------------- -------------------- ---------------- ---------------------
1999 1st January 1999 - 400,000 1st January 31st January 1999
31st March 1999 1999
------------ ----------------------- -------------------- ---------------- ---------------------
1st April 1999 - 400,000 1st April 1999 30th April 1999
30th June 1999
------------ ----------------------- -------------------- ---------------- ---------------------
1st July 1999 - 400,000 1st July 1999 31st July 1999
30th September 1999
------------ ----------------------- -------------------- ---------------- ---------------------
1st October 1999- 900,000 1st October See Note 4 below
31st December 1999 1999
------------ ----------------------- -------------------- ---------------- ---------------------
------------ ----------------------- -------------------- ---------------- ---------------------
Notes:
------
1. Notwithstanding the use of United States Dollars in the above
table, IISL shall invoice Seer in Irish Pounds using the
exchange rate specified in the Wall Street Journal on the last
working day immediately preceding the relevant Invoice Date.
2. Payment of this invoice shall be in three equal instalments
over a five (5) month period following the Invoice Date as
follows:
--------------------- ---------------------------
Amount (US$) * Payment Date
--------------------- ---------------------------
300,000 31st October 1997
--------------------- ---------------------------
300,000 31st December 1997
--------------------- ---------------------------
300,000 28th February 1998
--------------------- ---------------------------
* Note 1 above applies.
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3. Payment of this invoice shall be in three equal instalments over
a five (5) month period following the Invoice Date as follows:
---------------------- ---------------------------
Amount (US$) * Payment Date
---------------------- ---------------------------
300,000 31st October 1998
---------------------- ---------------------------
300,000 31st December 1998
---------------------- ---------------------------
300,000 28th February 1999
---------------------- ---------------------------
* Note 1 above applies.
4. Payment of this invoice shall be in three equal instalments over
a five (5) month period following the Invoice Date as follows:
---------------------- ---------------------------
Amount (US$) * Payment Date
---------------------- ---------------------------
300,000 31st October 1999
---------------------- ---------------------------
300,000 31st December 1999
---------------------- ---------------------------
300,000 28th February 2000
---------------------- ---------------------------
* Note 1 above applies.
5. IISL reserves the right to apply interest on any arrears in
payment at a simple rate of 1% of the amount unpaid per calendar
month or part thereof.
3.2 Seer shall pay to IISL the sum of Irish(Pounds)494,903, in respect of
Services supplied or due and where IISL has invoiced Seer prior to the
date of this Amendment. This amount shall be paid in three (3) equal
instalments as follows:
------------------------ ---------------------------
Amount (Irish (Pounds)) Payment Date
------------------------ ---------------------------
164,969 See Note below
------------------------ ---------------------------
164,967 30th April 1997
------------------------ ---------------------------
164,967 31st July 1997
------------------------ ---------------------------
Note: This instalment shall be paid on 31st January 1997
----
or upon execution of this Amendment, whichever is the later.
IISL acknowledges and represents that no further payments shall be due
in respect of any Services other than those expressly provided for in
this Amendment.
4. Miscellaneous:
----------------------
4.1 In Article 16.5 (Notices) references to "▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇" shall be
deleted. Reference to "▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇, Controller" shall be
replaced by "Financial Controller." Reference to "▇▇▇▇▇▇ ▇'▇▇▇▇▇▇▇▇"
shall be deleted and the address of IISL shall be replaced by "▇
▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇▇ ▇, ▇▇▇▇▇▇▇."
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4.2 In Attachment 2 (IBM EMEA Countries) delete:
"Yugoslavia", "Iraq" and "CIS" and replace "Czechoslovakia" with "The
Czech Republic" and "Slovakia"
4.3 Attachment 6 is deleted.
4.4 Both parties acknowledge that an international marketing fund as
contemplated in Article 8.2 of the Agreement is no longer required, and
accordingly Articles 8.2 and 9.6 are hereby deleted.
4.5 This Amendment supersedes and replaces the letter dated 30th December
1996 from Seer to IISL, terminating the MDLA in accordance with Article
4.1. Upon execution of this Amendment this letter shall cease to have
any force or effect.
4.6 Both parties acknowledge that, upon execution of this Amendment, this
Amendment complies in full with the provisions set out in Article
16.10.
4.7 Save as expressly provided above the Agreement shall remain in full
force and effect. In the event of any conflict between the Agreement
and this Amendment, the latter shall prevail.
SIGNED BY:
On behalf of IBM Ireland Limited: On behalf of Seer Technologies, Inc:
BY: /s/ ▇▇▇▇▇▇▇ ▇'▇▇▇▇▇▇ BY: /s/ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
NAME: ▇▇▇▇▇▇▇ ▇'▇▇▇▇▇▇ NAME: ▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
TITLE: Managing Director TITLE: V.P. and General Counsel
DATE: 2/14/97 DATE: 2/20/97
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