February 12, 2004

Novell Notifies SCO

It seems SCO did not obey Novell's instructions by the deadline. Consequently, Novell in a new letter, dated February 11, takes the following action:

"Accordingly, pursuant to Section 4.16(b) of the Asset Purchase Agreement, Novell, on behalf of The SCO Group, hereby waives any purported right
SCO may claim to require Sequent (or IBM as its successor) to treat Sequent Code as subject to the confidentiality obligations or use restrictions
of Sequent's SVRX license."

Here is Section 4.16(b) of the Asset Purchase Agreement, which you can find, along with all the Amendments and Schedules on the Legal Docs page, which
has a permanent link on the left of the page:

"(b) Buyer shall not, and shall not have the authority to, amend, modify or waive any right under or assign any SVRX License without the prior
written consent of Seller. In addition, at Seller's sole discretion and direction, Buyer shall amend, supplement, modify or waive any rights under,
or shall assign any rights to, any SVRX License to the extent so directed in any manner or respect by Seller. In the event that Buyer shall fail to
take any such action concerning the SVRX Licenses as required herein, Seller shall be authorized, and hereby is granted, the rights to take any
action on Buyer's own behalf. Buyer shall not, and shall have no right to, enter into future licenses or amendments of the SVRX Licenses, except as
may be incidentally involved through its rights to sell and license the Assets or the Merged Product (as such term is defined in the proposed
Operating Agreement, attached hereto as Exhibit 5.1(c)) or future versions thereof of the Merged Product."

The letter also references Software Agreement No. SOFT-000321 et seq, which may be referring to the Sublicensing Agreement.

Link: groklaw.net

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