EXHIBIT 10.1

 

CONFIDENTIAL TREATMENT REQUESTED

 

AMENDMENT NUMBER TWO

TO OPSWARE LICENSE AGREEMENT

 

This Amendment No. 2 (the “Amendment No. 2”) to the Opsware License Agreement
between Loudcloud, Inc., a Delaware corporation, with its principal place of
business located at 599 N. Mathilda, Sunnyvale, California 94085 (now known as
Opsware Inc., hereinafter “Opsware”) and Electronic Data Systems Corporation, a
Delaware corporation, with its principal place of business at 5400 Legacy Drive,
Mailstop H3-5F-22, Plano, Texas 75024 (“Licensee”) dated June 14, 2002, as
amended by Amendment No.1 (the “Agreement”), is effective as of August 15, 2004.

 

In consideration of the mutual covenants and conditions contained in this
Agreement, the parties hereby agree to amend the Agreement as follows:

 

  1. Unless otherwise defined in this Amendment No. 2, capitalized terms used,
but not defined, shall have the meanings assigned to such terms in the
Agreement.

 

  2. Section 1.1 titled Technology shall include products if and when made
generally available to other customers who purchase the Opsware System. All
current and unspecified future products, if and when made generally available
will be included as Technology

 

  3. Term of Agreement:

 

a. The Term of this Amendment No. 2 shall be coterminous with the Term of the
Agreement, as such Term is amended by this Amendment No. 2.

 

b. Term: The Initial Term of the Agreement will expire on August 14, 2004. The
Second Term of the Agreement shall commence on expiration of the Initial Term
and shall continue for a period of three (3) years and seven and one half (7.5)
months, expiring on March 31, 2008.

 

c. Following expiration of the Second Term, the Agreement will automatically
renew for five (5) consecutive one-year Renewal Terms, unless EDS gives notice
to Opsware at least six (6) months prior to the expiration of the then-current
term that it does not wish to renew the Agreement.

 

d. Sections 9.1(b) (First Renewal Term) and 9.1(c) (Second Renewal Term) of the
Agreement are deleted.

 

  4. Commencing August 15, 2004, in lieu of the minimum commitment provided in
Section 4.1 and Appendix 3 of the Agreement, and in lieu of the pricing provided
in Appendix 4 of the Agreement, Licensee agrees to pay Opsware, in equal monthly
installments, the

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License Fee of $2,000,000 U.S. per month, regardless of the number of Devices
managed using the Technology. Commencing August 15, 2005 and continuing
throughout the Second Term and throughout each of the Renewal Terms, in lieu of
the minimum commitment provided in Section 4.1 and Appendix 3 of the Agreement,
and in lieu of the pricing provided in Appendix 4 of the Agreement, Licensee
agrees to pay Opsware, in equal monthly installments, the License Fee of $
$1,583,333.33 U.S. per month, regardless of the number of Devices managed using
the Technology.

 

  5. Notwithstanding the provisions of Section 6.1 of the Agreement, following
execution of this Amendment Number 2, Opsware agrees to provide to Licensee the
third-party equipment and software specified on Attachment A to this Amendment
No 2, at no extra charge.

 

  6. Section 4.3 (Reports) is eliminated.

 

  7. Section 4.4 (Payments) is modified to reflect sixty (60) day payment terms,
except as noted below, and the following sentence is deleted from Section 4.4
(Payments): “If the monthly fees are less than Monthly Minimum Revenue
Commitment specified in Appendix 3, then Licensee shall pay the balance of the
Monthly Minimum Revenue Commitment within thirty (30) days following such
calendar month.” Section 4.4 now reads as follows:

 

All payments shall be made in U.S. dollars. Monthly fees specified in Appendix 4
shall be due on the twentieth (20th) day of each month, with the first such
payments due on August 20, 2004 and September 20, 2004. Commencing with the
payment due on October 20, 2004, Opsware shall invoice Licensee sixty (60) days
prior to the due date. All other fees hereunder are payable net (60) from
Opsware’s monthly invoice unless otherwise set forth. Any amount not paid when
due will bear interest until paid at a rate of interest equal to the prime rate
established from time to time by Citibank of New York, provided that Licensee
shall be given notice of nonpayment and five (5) business days thereafter to pay
before any interest begins to accrue. Disputed amounts will not bear interest
until such time as the dispute is resolved. Licensee agrees to pay all sales,
use, value-added, withholding, excise and any other similar taxes or government
charges, exclusive of Opsware’s income taxes. Opsware may terminate this
Agreement if Licensee has not paid any fees due within fifteen days after
written notice of such non-payment.

 

  8. For a period of two (2) years from the Effective Date of this Amendment No.
2, Opsware will provide professional services comprising ****
full-time-equivalent (“FTE”) personnel to support Licensee’s use of the Licensed
Technology; thereafter, Opsware will provide professional services comprising
**** FTE for such purpose, all at no extra charge.

 

  9. Opsware and Licensee agree to cooperate and use commercially reasonable
efforts to enable Licensee to meet its goals for the deployment of servers using
the Licensed Technology as set forth on Exhibit A by or before December 31,
2005.

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**** Confidential treatment has been requested for the redacted portions. The
confidential redacted portions have been filed separately with the Securities
and Exchange Commission.

 

2

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  10. Section 3.3 of the Agreement is amended to add **** to the list of
companies to whom Opsware will not license the Derivative Works.

 

  11. Opsware will deliver the Technology to EDS in California by electronic
means.

 

  12. This Amendment No. 2 shall prevail and control with respect to any
inconsistency between the interpretation and provisions of this Amendment No. 2
and the interpretation of the Agreement.

 

  13. This Amendment No. 2 constitutes an amendment to the Agreement, and except
as expressly amended, supplemented or modified in this Amendment No. 2, all
other provisions of the Agreement are hereby ratified and confirmed.

 

  14. Nothing in this Amendment No.2 shall apply retroactively to modify any
provision of the Agreement in effect prior to the Effective Date hereof.

 

  15. No modification, amendment, or waiver of any provision of this Amendment
No. 2 shall be binding unless in writing and signed by an authorized
representative of each party.

 

  16. This Amendment No. 2, the Agreement, including any attachments or exhibits
incorporated by reference, is the entire agreement between the parties with
respect to the subject matter hereof, and supersedes any prior or
contemporaneous agreement, proposal, warranties and representations.

 

IN WITNESS WHEREOF, Opsware and Licensee have caused this Amendment No. 2 to be
signed and delivered by their duly authorized representatives, all as of the
Amendment No. 2 effective date.

 

OPSWARE INC.

 

Electronic Data Systems Corporation

By:

 

/s/ Benjamin A. Horowitz

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By:

 

/s/ Frank J. Crespo

--------------------------------------------------------------------------------

Name:

 

Benjamin A. Horowitz

 

Name:

 

Frank J. Crespo

Title:

 

President and CEO

 

Title:

 

Chief Procurement Officer

Date:

 

August 13, 2004

 

Date:

 

August 13, 2004

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**** Confidential treatment has been requested for the redacted portions. The
confidential redacted portions have been filed separately with the Securities
and Exchange Commission.

 

3

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ATTACHMENT A

 

Hardware and Software to be Delivered by Opsware

 

The required hardware for **** and **** as specified in the following tables,
together with the appropriate **** as determined by Opsware, together with ****
of manufacturer’s maintenance (but not including technology refresh):

 

[See attached Spreadsheets]

--------------------------------------------------------------------------------

**** Confidential treatment has been requested for the redacted portions. The
confidential redacted portions have been filed separately with the Securities
and Exchange Commission.

 

--------------------------------------------------------------------------------

Target Locations

 

Americas Sites

--------------------------------------------------------------------------------

  

Country

--------------------------------------------------------------------------------

   Target
Deployment

--------------------------------------------------------------------------------

   Servers

--------------------------------------------------------------------------------

  

Kernel/
Satellite

--------------------------------------------------------------------------------

   Qty/Size

--------------------------------------------------------------------------------

     ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    K    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    K    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    K    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    K    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    K    ****

****

   ****    ****    ****    K    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    K    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****     

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

Total Americas

             ****               

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

EMEA Sites

--------------------------------------------------------------------------------

  

Country

--------------------------------------------------------------------------------

   Target
Deployment

--------------------------------------------------------------------------------

   Servers

--------------------------------------------------------------------------------

  

Kernel/
Satellite

--------------------------------------------------------------------------------

   Qty/Size

--------------------------------------------------------------------------------

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    K    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    K    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    K    ****

****

   ****    ****    ****    K    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    K    ****

****

   ****    ****    ****    K    ****     

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

Total EMEA

             ****               

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

AP Sites

--------------------------------------------------------------------------------

  

Country

--------------------------------------------------------------------------------

   Target
Deployment

--------------------------------------------------------------------------------

   Servers

--------------------------------------------------------------------------------

  

Kernel/
Satellite

--------------------------------------------------------------------------------

   Qty/Size

--------------------------------------------------------------------------------

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    K    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    K    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    K    ****

****

   ****    ****    ****    K    ****

****

   ****    ****    ****    S    ****

****

   ****    ****    ****    S    ****     

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

Total AP

             ****               

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

**** Confidential treatment has been requested for the redacted portions. The
confidential redacted portions have been filed separately with the Securities
and Exchange Commission.

--------------------------------------------------------------------------------

Existing Locations

 

Americas Sites

--------------------------------------------------------------------------------

  

Current Actual

--------------------------------------------------------------------------------

  

Servers

--------------------------------------------------------------------------------

   Kernel/
Satellite

--------------------------------------------------------------------------------

  

Qty/Size

--------------------------------------------------------------------------------

****

   ****    ****    K    ****

****

   ****    ****    K    ****

****

   ****    ****    K    ****

****

   ****    ****    K    ****

****

   ****    ****    K    ****

****

   ****    ****    K    ****     

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

Total Americas

   ****    ****               

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

EMEA Sites

--------------------------------------------------------------------------------

       

Servers

--------------------------------------------------------------------------------

   Kernel/
Satellite

--------------------------------------------------------------------------------

  

Qty/Size

--------------------------------------------------------------------------------

****

   ****    ****    K    ****

****

   ****    ****    K    ****

****

   ****    ****    K    ****

****

   ****    ****    K    ****

****

        ****    K    ****     

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

Total EMEA

   ****    ****               

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

  

--------------------------------------------------------------------------------

--------------------------------------------------------------------------------

**** Confidential treatment has been requested for the redacted portions. The
confidential redacted portions have been filed separately with the Securities
and Exchange Commission.

--------------------------------------------------------------------------------

Satellite

 

Hardware Summary

 

Satellite

    

****

   ****

****

   ****

Network

    

****

   ****

--------------------------------------------------------------------------------

**** Confidential treatment has been requested for the redacted portions. The
confidential redacted portions have been filed separately with the Securities
and Exchange Commission.

--------------------------------------------------------------------------------

Kernel: 1 server

 

Hardware Summary

 

Model Repository (Spin) / Package Repository (Word) / Command Engine (Way) /
Build Server / Model Repository DB (Truth) / User Directory (Cast) / Command
Center (OCC)     

****

   ****

****

   ****

****

   ****

****

   ****

Satellite Gateway

    

****

   ****

****

   ****

Network

    

****

   ****

****

   ****

Racks

    

****

   ****

--------------------------------------------------------------------------------

**** Confidential treatment has been requested for the redacted portions. The
confidential redacted portions have been filed separately with the Securities
and Exchange Commission.

--------------------------------------------------------------------------------

Kernel: 2 server

 

Hardware Summary

 

Model Repository (Spin) / Package Repository (Word) / Command Engine (Way) /
Build Server     

****

   ****

****

   ****

Model Repository DB (Truth) Storage Device

    

****

   ****

****

   **** Model Repository DB (Truth) / User Directory (Cast) / Command Center
(OCC) / Model Repository (Spin)     

****

   ****

****

   ****

Package Repository Storage Device

    

****

   ****

****

   ****

Satellite Gateway

    

****

   ****

****

   ****

Network

    

****

   ****

****

   ****

****

   ****

Racks

    

****

   ****

--------------------------------------------------------------------------------

**** Confidential treatment has been requested for the redacted portions. The
confidential redacted portions have been filed separately with the Securities
and Exchange Commission.

--------------------------------------------------------------------------------

Kernel: 3 server

 

Hardware Summary *

 

Model Repository (Spin) / Command Engine (Way) / Build Server     

****

   ****

****

   **** Model Repository DB (Truth) / User Directory (Cast) / Model Repository
(Spin)     

****

   ****

****

   **** Model Repository DB (Truth) Storage Device     

****

   ****

****

   **** Package Repository (Word) / Command Center (OCC)     

****

   ****

****

   ****

Package Repository Storage Device

    

****

   ****

****

   ****

Satellite Gateway

    

****

   ****

****

   ****

Network

    

****

   ****

****

   ****

****

   ****

Racks

    

****

   ****

--------------------------------------------------------------------------------

**** Confidential treatment has been requested for the redacted portions. The
confidential redacted portions have been filed separately with the Securities
and Exchange Commission.

--------------------------------------------------------------------------------

Kernel: 4 server

 

Hardware Summary

 

Model Repository (Spin) / Build Server

      

****

   * ***

****

   * *** Model Repository DB (Truth) / User Directory (Cast) / Model Repository
DB (Truth)       

****

   * ***

****

   * ***

Model Repository DB (Truth) Storage Device

      

****

   * ***

****

   * ***

Package Repository (Word) / Command Engine (Way)

      

****

   * ***

****

   * ***

Package Repository Storage Device

      

****

   * ***

****

   * ***

Command Center (OCC)

      

****

   * ***

****

   * ***

Satellite Gateway

      

****

   * ***

****

   * ***

Network

      

****

   * ***

****

   * ***

****

   * ***

Racks

      

****

   * ***

--------------------------------------------------------------------------------

**** Confidential treatment has been requested for the redacted portions. The
confidential redacted portions have been filed separately with the Securities
and Exchange Commission.