UNISPHERE NETWORKS INC
S-1/A, EX-10.27, 2000-10-20
COMPUTER COMMUNICATIONS EQUIPMENT
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                                                                   Exhibit 10.27

               PRELIMINARY UNSUPPORTED SOFTWARE LICENSE AGREEMENT


         This Agreement is made as of August 7th, 2000 between Fujitsu Siemens
Computers GmbH, a German company with offices at Otto Hahn Ring 6 81730 Munich,
Germany (hereinafter called "FSC") and Unisphere Solutions Inc., a Delaware
corporation having offices at One Executive Drive, Chelmsford,MA 01824
(hereinafter called "USI").

         WHEREAS, USI wishes to have access to the source code ("Source Code")
for the RTP Software as described in technical specifications document entitled
"Source List RTP Version 1.0C" (the "Software") for the purpose specified in
Section 1.a.

         NOW, THEREFORE, FSC and USI agree as follows:

1.   LICENSE

          a.   FSC hereby grants USI a preliminary, fully paid and royalty free,
               nonexclusive, nontransferable license, without right to
               sublicense, to use, process, and reproduce copies of the Source
               Code solely for the limited purpose of permitting USI to evaluate
               the Software for an eventual development of certain hardware and
               software products.

          b.   USI is not licensed to redistribute copies of the Source Code to
               any third party.

          c.   The Source Code is provided as is and USI has full responsibility
               for its installation, support and maintenance. FSC provides no
               support or maintenance of this Source Code. USI will provide FSC
               with information regarding any problems which occur during USI's
               use, without expecting a response or correction of the problem
               from FSC.

          d.   FSC will not be obligated in any way to provide updates to the
               Source Code or any documentation or information regarding this
               item.

          e.   FSC MAY, BUT IS NOT OBLIGATED TO, PROVIDE NEW VERSIONS OF THE
               SOURCE CODE AD HOC WITHOUT ANY OBLIGATION WHATSOEVER TO PROVIDE
               ADDITIONAL OR REGULAR UPDATES OR TO PROVIDE SUPPORT OF ANY KIND
               FOR THE NEW VERSION, CONSISTENT WITH THE TERMS OF THIS AGREEMENT.


2.   PROTECTION OF PROPRIETARY RIGHTS

          a.   USI recognizes that the Source Code (i) is considered by FSC to
               be a trade secret, (ii) is furnished by FSC to USI in confidence,
               and (iii) contains proprietary and
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               confidential information. Title to, ownership of, and all
               proprietary rights in the Source Code and all copies thereof are
               reserved to and will at all times remain with FSC.

          b.   USI will hold the Source Code in confidence at least to the same
               extent that it protects its own similar confidential information
               and will take all reasonable precautions consistent with
               generally accepted standards in the data processing industry to
               safeguard the confidentiality of the Source Code. USI agrees to
               limit the number of copies of the Source Code to the minimum
               number of copies required by USI to perform its evaluation
               activities in accordance with this Agreement. USI will properly
               reproduce on each such copy all notices of FSC's or its
               supplier's patent, copyright, trademark or trade secret rights in
               such portion or Releases. USI agrees that it will under no
               circumstances distribute or disseminate any information contained
               in or disclosed by the Source Code, including but not limited to
               any technical information, design concepts, processes,
               procedures, formulae, or algorithms contrary to the express
               provisions of this Agreement.

          c.   USI will not disclose, furnish, transfer or otherwise make
               available any portion of the Source Code to any person except to
               those of its employees, agents or contractors whose access is
               necessary for USI's use as set forth above. USI will take
               appropriate action by instruction or agreement with such
               employees, agents or contractors to inform them of the trade
               secret, proprietary and confidential nature of the Source Code
               and to obtain their compliance with the terms of this Section 2.
               USI will be liable for noncompliance by agents and contractors to
               the same extent as it would be liable for noncompliance by its
               employees.

          d.   Notwithstanding anything in this Section 2 to the contrary, USI
               will have no obligation of confidentiality with respect to any
               portion of the Source Code which (i) was known to USI prior to
               its receipt from FSC unless covered by a separate Nondisclosure
               Agreement, (ii) is lawfully obtained by USI from a third party
               under no obligation of confidentiality, (iii) is or becomes
               publicly available other than as a result of any act or failure
               to act of USI, or (iv) is independently developed by USI without
               use of the Source Code.

          e.   USI agrees to notify FSC promptly in the event of any breach of
               its security under conditions in which it would appear that the
               trade secrets represented by the Source Code and the ideas
               expressed therein were prejudiced or exposed to loss. USI shall,
               upon request from FSC, take all other reasonable steps necessary
               to recover any compromised trade secrets disclosed to or placed
               in the possession of USI by virtue of this Agreement. The cost of
               taking such steps shall be borne solely by USI.

          f.   USI's obligations under this Section 2 will survive the
               termination of the license granted hereunder.

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          g.   USI acknowledges and agrees that the Source Code and all the
               information in whatever medium provided to USI in connection
               therewith pursuant to the confidentiality provisions of this
               Agreement are unique and commercially valuable, and that any
               breach by USI of the terms of this Agreement with respect to the
               disclosure, distribution of the Source Code or such information
               would result in an irreparable and continuing injury to FSC for
               which money damages would be inadequate. In the event of such a
               breach or anticipated breach by USI, FSC shall be entitled to
               seek immediate injunctive relief and to specifically enforce the
               terms of this Agreement, in addition to any other remedy to which
               FSC may be entitled at law or in equity.

3.  USI USE OF SOURCE CODE

          a.   USI may use the Source Code only as necessary for the purpose
               specified in Section 1.a.

          b.   USI agrees not to use the Source Code for any other purpose
               without the prior express written permission of FSC.

4.   WARRANTY

          a.   FSC warrants that it has the right to grant a license to use the
               Source Code as contemplated hereunder. FSC makes no warranty with
               respect to the Source Code.

          b.   EXCEPT AS EXPRESSLY PROVIDED IN THIS SECTION 4, FSC MAKES NO
               WARRANTY EXPRESS OR IMPLIED WITH RESPECT TO THE SOURCE CODE.
               WITHOUT LIMITING THE FOREGOING, FSC MAKES NO WARRANTY OF
               MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR WARRANTY
               THAT THE SOURCE CODE IS ERROR-FREE OR THAT ITS USE WILL BE
               UNINTERRUPTED OR THAT THIRD PARTY RIGHTS ARE NOT INFRINGED.

5.   TERM AND TERMINATION

          a.   This Agreement is determined to be a preliminary license
               agreement subject to both parties efforts to conclude a final
               License Agreement for the RTP Software until November 30, 2000
               at the latest. Therefore this Agreement shall terminate
               automatically on September 30th, whether or not such a final
               License Agreement has been concluded by the parties. In case no
               final License Agreement has been concluded at this time, USI
               shall immediately stop using the RTP Software in any way, return
               the Source Code of the RTP Software to FSC, destroy all copies or
               modifications made from such Source Code and confirm such
               destruction by a written document to be signed by the CEO of USI.
               The provisions of this Agreement shall survive such termination.

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          b.   In the event USI is in breach of this Agreement and does not cure
               the breach within thirty (30) days of receipt of written notice
               of such breach from FSC, FSC shall have the right to terminate
               this Agreement for cause. Upon the termination of this Agreement
               for cause by FSC:

               i.   All licenses granted pursuant to Section 1 hereof will cease
                    and USI will immediately return the Source Code and all
                    portions thereto, to FSC together with all back-up copies
                    and modifications thereof. Section 5 a sentences 3 and 4
                    shall apply accordingly.

               ii.  USI will purge all copies of the Source Code from all
                    computer processors or storage media on which USI has
                    installed or permitted others to install such Source Code.

6.   NO ASSIGNMENT

         This Agreement may not be assigned by USI without the prior written
consent of FSC.

7.   ENTIRE UNDERSTANDING

         This Agreement sets forth the entire understanding between the parties
         with respect to the matters set forth herein and supersedes all prior
         representations, understandings or agreements, whether written or oral,
         express or implied, with respect to this transaction.

8.  GOVERNING LAW

         This Agreement is governed by the laws of the Federal Republic of
         Germany, excluding its conflict of laws rules.

9. DISPUTE RESOLUTION

         Except as otherwise provided herein, any controversy between the
         parties hereto involving the construction or application of any terms,
         covenants or conditions of this or any claims arising out of or
         relating to this Agreement or the breach thereof shall be settled by
         the following procedure:

                    1.   Representatives of each party directly responsible for
                         the matters underlying the controversy shall meet as
                         reasonably requested by the other party to resolve the
                         controversy.

                    2.   If the controversy is not resolved by the
                         representatives by mutual agreement within twenty
                         business days after their initial meeting to discuss
                         the controversy, either party may at any time
                         thereafter provide the other party written notice
                         specifying the terms of such controversy in reasonable
                         detail. Upon receipt of such notice, the appropriate
                         senior


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                         executives shall meet at a mutually agreed upon
                         time and place within twenty business days of receipt
                         of such notice. They shall discuss the controversy and
                         negotiate for a period of up to twenty business days in
                         an effort to resolve the controversy.

                    3.   If a dispute cannot be settled by the procedure of
                         Subsection 2 above, then such dispute shall be
                         determined by arbitration in accordance with the
                         Arbitration Rules of the International Chamber of
                         Commerce, Paris France. The number of arbitrators shall
                         be three; the place of arbitration shall be Munich,
                         Germany; and the language of arbitration shall be
                         English.

                    4.   Nothing in this Agreement shall prevent any party from
                         seeking immediate injunctive relief in a court of
                         appropriate jurisdiction in order to protect its
                         interests under this Agreement.

USI                                     FSC

By:  Dr. Georg Haubs                    By: /s/ Dr. Barth Kellerer
   --------------------------------        ------------------------------------

Name: /s/ Dr. Georg Haubs               Name: B. Kellerer
     ------------------------------          ----------------------------------

Title: VP Business Develop.             Title: Director
      -----------------------------           ---------------------------------


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