Document:

Exhibit

Exhibit 10.1
EXECUTIVE RETENTION AGREEMENT
THIS RETENTION AGREEMENT (this “Agreement”), dated as of May 12, 2018, is by and between Cigna Corporation, a Delaware corporation (“Cigna”) and Timothy Wentworth (“Executive”).
WHEREAS, Cigna and Executive are entering into this Agreement in connection with the proposed merger (the “Merger”) as contemplated by the Agreement and Plan of Merger, dated as of March 8, 2018, by and among Cigna (together with its Affiliates (as defined below) and any successor to its business or assets that assumes and agrees to perform this Agreement by operation of law or otherwise, the “Company”), Express Scripts Holding Company (“Express Scripts”), Halfmoon Parent, Inc. (“Holdco”), Halfmoon I, Inc. and Halfmoon II, Inc., (the “Merger Agreement”) in order to set forth the terms and conditions of Executive’s employment with the Company following the effective time of the Merger (the “Effective Time” and the date on which the Effective Time occurs, the “Effective Date”); and
NOW THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1.    Effective Time.  This Agreement shall become effective as of the Effective Time and, upon becoming effective, shall supersede the Executive Employment Agreement by and between Express Scripts and Executive dated as of May 4, 2016 (the “Prior Agreement”).  In the event that the Effective Time does not occur for any reason, this Agreement shall be null and void ab initio and of no force and effect.
2.    Executive Employment.  As of the Effective Time, Executive shall become an employee of Cigna consistent with the terms set forth on Appendix A.
3.    Retention.
(a)    Deferred Retention Account.  At the Effective Time, Executive shall be credited with a deferred compensation account balance of $8.25 million (the “Deferred Compensation Account”), that shall become vested in equal monthly installments over the 36 month period following the Effective Date (the “Retention Period”), subject to Executive’s continued employment with Cigna through each such monthly vesting date, which payment, to the extent vested as of Executive’s date of termination, shall be payable in 24 equal installments (subject to a 6-month delay as provided in Section 14(b)) upon Executive’s termination of employment with Cigna and its subsidiaries following the Effective Time for any reason; provided that, the 

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unvested portion of the Deferred Compensation Account will vest immediately in full upon (i) Executive’s termination of employment by Cigna without Cause (as defined in Section 3(d)(i)) or for Good Reason (as defined in Section 3(d)(ii), and (ii) Executive’s termination due to death or disability (as defined in Cigna’s long-term disability plan).  Executive’s right to receive payment of the Deferred Compensation Account upon any termination of employment other than due to death is subject to (A) his execution of a general release of claims in favor of the Company substantially in the form attached hereto as Appendix B following his termination of employment, and such release becoming effective and irrevocable in accordance with its terms within 60 days following his termination of employment (the “Release Requirement”) and (B) his continued compliance with the restrictive covenants set forth in Sections 5, 6 and 8 (the “Covenants”).
(b)    Initial Equity Awards.
(i)    On the day after the Effective Date, if such date is during a Cigna open window period, or, if such day is not during an open trading window period, on the first day of an open trading window period following the Effective Date (the “Grant Date”), Executive will be granted, under the Cigna Long-Term Incentive Plan (the “Plan”), (A) two awards of Strategic Performance Shares (the “Initial SPS Awards”), one with respect to the performance period 2017-2019 and one with respect to the performance period 2018-2020, and (B) an award of restricted shares of Holdco common stock (the “Initial Restricted Stock Award” and together with the Initial SPS Awards, the “Initial Equity Awards”)).  The Initial Equity Awards will be subject to terms and conditions approved by the People Resources Committee (the “PRC”) of the Board of Directors of Cigna (the “Board”), which terms and conditions will be no less favorable than those provided in the 2018 annual equity awards granted to executive officers of Cigna (the “Peer Executives”).
(ii)    Each Initial SPS Award shall consist of a whole number of Strategic Performance Shares equal to $3 million, divided by the Fair Market Value as defined in the Plan for a share of Holdco common stock on the Grant Date.  Each Initial SPS Award shall be subject to the performance-based and time-based vesting conditions set forth in the applicable award agreement.
(iii)    The Initial Restricted Stock Award shall consist of a whole number of restricted shares of Holdco common stock equal to $6 million, divided by the Fair Market Value as defined in the Plan for a share of Holdco common stock on the Grant Date.  The Initial Restricted Stock Award shall vest in equal installments on each of the first three anniversaries of the Grant Date, subject to Executive’s continuous employment with the Company through each such vesting date (except as otherwise provided in the applicable award agreement).

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(c)    Retention Severance.  Upon a termination by Cigna without Cause (as defined in Section 3(f)(i)) or by Executive for Good Reason (as defined in Section 3(f)(ii)) during the Retention Period, Executive will be entitled to the following payments and benefits, subject to Executive’s satisfaction of the Release Requirement and continued compliance with the Covenants:
(i)    a lump sum cash payment, payable on the 60th day after termination of employment, equal to the product of (i) the Target Incentive Award (as defined on Appendix A) and (ii) a fraction, the numerator of which is equal to the number of days elapsed in the fiscal year of the date of termination and the denominator of which is the total number of days in such fiscal year (the “Pro Rata Bonus”) (which shall be reduced by any incentive award amount previously paid to Executive by Express Scripts in respect of the fiscal year of termination); and
(ii)    a payment from Cigna in monthly installments, beginning on the first day of the first month following Executive’s termination date (subject to the six-month delay described in Section 14), in an amount equal to (a) the cost of continuing medical, dental, vision and EAP coverage under the Company’s medical, dental, vision and EAP programs under COBRA for Executive’s applicable statutory COBRA period and (b) if Executive’s statutory COBRA period is less than 36 months, following the expiration of such COBRA period, in an amount equal to the cost of medical coverage (medical and prescription drug only) under the Company’s retiree medical plan that covers eligible rank-and-file employees who are not covered under a collective bargaining agreement (the “Retiree Plan”), in each case, for Executive and any eligible dependents of Executive (including Executive’s spouse) for a total period of thirty-six (36) months (the “Welfare Period”); provided that, (i) as of the date of termination of employment, Executive is covered under a Company plan for such medical, dental, vision and EAP coverage (as applicable), and the Company continues to offer such benefit to its rank-and-file employees who are not covered under a collective bargaining agreement, (ii) with respect to the medical benefits only, if during the Welfare Period, the Company either does not sponsor or ceases to offer: (1) for the duration of the COBRA period, a medical program to its rank-and-file employees who are not covered under a collective bargaining agreement, or (2) after the expiration of the COBRA period, a Retiree Plan, the payment during the Welfare Period shall change to an amount equal to the monthly premium for equivalent medical insurance coverage and (3) if during the Welfare Period Executive becomes eligible, as a full-time employee, for group medical, dental, vision and EAP insurance from another employer, Executive shall forfeit (as applicable) any such future payments from the Company (collectively, the “Welfare Benefit”). Notwithstanding the foregoing, in the event such payments for continued coverage or such continued coverage itself, by reason of change in the applicable law, may, in the Company’s reasonable view, result in tax or other penalties on the Company, this provision shall terminate and the parties shall, in good faith, negotiate for a substitute provision which does not result in such tax or other penalties.

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(d)    Benefits.  During the Retention Period, Executive will be eligible for health and welfare and retirement benefits on a basis no less favorable than those provided to the Peer Executives once he commences participation in the applicable Cigna plans.  Prior to commencing participation in the Cigna plans, Executive will continue to be eligible for the Express Scripts health and welfare and retirement benefits on substantially the same basis as such benefits were provided immediately prior to the Effective Time.
(e)    For the avoidance of doubt, and notwithstanding anything herein or in any applicable plan document to the contrary, neither the Deferred Retention Account, the Initial Equity Awards, the Retention Severance nor the Retiree Plan shall be treated as “eligible earnings” or otherwise taken into account in computing any benefits under any plan, program or arrangement of Cigna, Express Scripts or their respective their respective affiliates within the meaning of Rule 12b-2 (“Affiliates”) promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
(f)    Certain Definitions.  As used in this Agreement, the following terms have the meanings given below:
(i)    “Cause” shall mean:  (a) any act or acts by Executive, whether or not in connection with his employment by the Company, constituting, or Executive’s conviction or plea of guilty or nolo contendere (no contest) to (whether or not any right to appeal or vacate said conviction or plea has been or may be exercised), (i) a felony under applicable law or (ii) a misdemeanor involving fraud, theft, dishonesty or moral turpitude; (b) any act or acts of gross dishonesty, including, but not limited to, directly or indirectly, the actual or attempted misappropriation by Executive of the Company’s or its clients’ funds or property, or the actual or attempted appropriation of a business opportunity of the Company, including knowingly allowing or overlooking any such conduct; or any act or acts of gross misconduct in the performance of Executive’s duties hereunder; (c) any willful malfeasance or willful misconduct by Executive in connection with Executive’s duties hereunder or any act or omission which is materially injurious to the financial condition or business reputation of the Company; or (d) any breach by Executive of the provisions of the Covenants.
Notwithstanding the foregoing, the event(s) described in clause (c) of this Section 3(f)(i) shall not be deemed to constitute “Cause” if such event is (i) primarily the result of bad judgment or negligence on the part of Executive not rising to the level of gross negligence; or (ii) primarily because of an act or omission believed by Executive in good faith to have been in, or not opposed to, the interests of the Company.
(ii)    “Good Reason” shall mean the occurrence of any of the following without Executive’s prior consent: (A) any material breach by Cigna of any of the provisions of 

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this Agreement or Appendix A or any material failure by Cigna to carry out any of its obligations under this Agreement or Appendix A; (B) Cigna requiring Executive to be based at any office or location more than 50 miles from One Express Way, Saint Louis, Missouri, except for travel reasonably required in the performance of Executive’s responsibilities to the extent substantially consistent with Executive’s business travel obligations prior to the Effective Time; (C) any substantial and sustained diminution in Executive’s authority or responsibilities from those described in Appendix A; or (D) the material diminution of Executive’s aggregate health and welfare and retirement benefits in effect (1) as of immediately following the Effective Date, or (2) following Executive’s integration into the health and welfare and retirement plans of Cigna applicable to Peer Executives, as of immediately following such integration; provided that (i) integration of Executive into the health and welfare and retirement benefit plans of Cigna applicable to Peer Executives shall not itself be deemed to constitute Good Reason, and (ii) following such integration, any amendment, modification or discontinuation of any benefits that applies uniformly to Executive and all other Peer Executives shall not be deemed to constitute Good Reason; provided that, in order to resign for Good Reason, (x) Executive must deliver written notice to Cigna describing in reasonable detail the circumstances alleged to constitute Good Reason within 45 days after the initial occurrence thereof, (y) Cigna must have 30 days after receipt of written notice from Executive in which to cure such circumstances, and (z) if such circumstances are not cured, Executive must actually resign within 30 days following the expiration of such cure period.
4.    Rollover Equity.  Upon the Effective Time, Executive’s Company Stock Options and Company RSU Awards (as such terms are defined in the Merger Agreement) shall be converted into equivalent Holdco equity awards (collectively, the “Converted Awards”) in accordance with the terms and conditions set forth in Section 1.8 of the Merger Agreement, except that Executive agrees that the definition of “Constructive Termination” included in the award agreements applicable to the Converted Awards shall be replaced in its entirety, effective as of the Effective Time, with the definition of “Good Reason” set forth in Section 3(d)(ii).
5.    Noncompete; Nonsolicitation.
(a)    In further consideration of Executive’s benefits hereunder and as a condition of Executive’s continued employment with the Company after the Effective Time, Executive acknowledges that during the course of Executive’s employment with the Company, Executive has and will become familiar with the Company’s trade secrets and with other Confidential Information concerning the Company and that Executive’s services have been and shall continue to be of special, unique, and extraordinary value to the Company.  Executive agrees that, during Executive’s employment with the Company and for the 24 month period following the termination of Executive’s employment with the Company for any reason (the “Noncompete Period”), Executive shall not directly or indirectly own any interest in, manage, control, 

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participate in, consult with, render services for, be employed in an executive, managerial or administrative or other capacity by, or in any manner engage in any business that is, or will be, engaged wholly or primarily in the business of manufacturing, purchasing, selling or supplying in the United States or in any other country in which the Company conducts business, any product or service manufactured, purchased, sold, supplied, or provided by the Company (including, without limitation, businesses which the Company has specific plans to conduct in the future and as to which Executive is aware of such planning), in the United States or in any other country in which the Company conducts business, or which provides or will provide consulting or advisory services, including but not limited to audit reviews and evaluations of requests for proposals, which concern or could affect any existing or prospective relationship between Company and any third party, including its customers, prospective customers, vendors, suppliers and drug manufacturers (an “Business Competitor”).
(b)    Nothing herein shall prohibit Executive from (1) being a passive owner of not more than 2% of the outstanding stock of any class of a corporation that is publicly traded, so long as Executive has no active participation in the business of such corporation; (2) becoming employed, engaged, associated or otherwise participating with a separately managed division or subsidiary of a competitive business provided that such separately managed division or subsidiary is itself not a Business Competitor and Executive’s services are provided only to such division or subsidiary; or (3) accepting employment with any federal or state government or governmental subdivision or agency.
(c)    During the Noncompete Period, Executive shall not directly or indirectly through another Person (i) induce or attempt to induce any employee of the Company to leave the employ of the Company, or in any way interfere with the relationship between the Company and any employee thereof; (ii) hire anyone who was an employee of the Company at any time during the 12-month period immediately prior to the termination of his or her employment with the Company; or (iii) induce or attempt to induce any Covered Customer or Covered Vendor to cease or materially reduce doing business with the Company, or in any way interfere with the relationship between the Company and any such Covered Customer or Covered Vendor (including, without limitation, making any negative or disparaging statements or communications regarding the Company).  Notwithstanding the foregoing, nothing in this Agreement shall prohibit Executive from employing an individual (1) with the consent of the Company or (2) who responds to general solicitations in publications or on websites, or through the use of search firms, so long as such general solicitations or search firm activities are not targeted specifically at an employee of the Company.  In addition, nothing in this Agreement will prohibit the making of any truthful statements made by any Person in response to a lawful subpoena or legal proceeding or to enforce such Person’s rights under this Agreement, or any other agreement between Executive and the Company.

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For the avoidance of doubt, the term “Company” as used in this Section 5 and in Section 6 shall include all former, current and future affiliates of Cigna, both before and after the Effective Time, including Holdco and Express Scripts.
6.    Confidentiality; Trade Secrets.
(a)    Executive acknowledges that the Company continually develops Confidential Information, that Executive may develop Confidential Information for the Company, and that Executive may learn of Confidential Information during the course of Executive’s employment.  Executive agrees that all Confidential Information that Executive creates or to which Executive has access as a result of Executive’s employment, whether before or after the date of this Agreement, is and shall remain the sole and exclusive property of the Company and that Executive will comply with the policies and procedures of the Company for protecting Confidential Information.  Executive further agrees that, except as required for the proper performance of Executive’s duties for the Company or as required by applicable law (and then only to the extent required), Executive will not, directly or indirectly, disclose, use for Executive’s own benefit or gain, or assist others in using, applying or disclosing, any Confidential Information.  Executive understands and agrees that these restrictions will continue to apply after Executive’s employment terminates, regardless of the reason for termination and regardless whether Executive is receiving or is entitled to receive any payments or other benefits under this Agreement.  As used in this Agreement, “Confidential Information” shall mean all information that is (i) disclosed to or known by Executive as a consequence of or through Executive’s employment with the Company (including Executive’s employment with Express Scripts and its Affiliates prior to the Effective Time) and (ii) not generally known to persons, corporations, organizations or others outside of the Company.  Confidential Information includes, but is not limited to, technical or non-technical data, formulas, computer programs, devices, methods, techniques, processes, financial data, personnel data, customer-specific information, confidential customer lists, production and sales information, supplier-specific information, cost information, marketing plans and strategies, or other data or information that constitutes a trade secret or is otherwise treated as being confidential by the Company.
(b)    Executive acknowledges that all discoveries, concepts, ideas, inventions, innovations, improvements, developments, methods, designs, analyses, drawings, reports, patent applications, copyrightable work and mask work (whether or not including any Confidential Information) and all registrations or applications related thereto, all other proprietary information and all similar or related information (whether or not patentable) that relate to the Company’s actual or anticipated business, research and development or existing or future products or services and that are conceived, developed or made by Executive (whether alone or jointly with others) while employed by the Company, whether before or after the date of this Agreement (“Work Product”), belong to the Company.  Executive shall promptly disclose all patentable 

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inventions and other material Work Product to the Board and, at the Company’s expense, perform all actions reasonably requested by the Board (whether during or after Executive’s employment with the Company) to establish and confirm such ownership (including, without limitation, assignments, consents, powers of attorney and other instruments).  Executive acknowledges that all Work Product shall be deemed to constitute “works made for hire” under the U.S. Copyright Act of 1976, as amended.  In accordance with Title 19, Section 805 of the Delaware Code, Executive is hereby advised that this Section 8(b) regarding the Company’s ownership of Work Product does not apply to any invention for which no equipment, supplies, facilities or trade secret information of the Company was used and that was developed entirely on Executive’s own time, unless i) the invention relates to the business of the Company or to the Company’s actual or demonstrably anticipated research or development, or ii) the invention results from any work performed by Executive for the Company.
(c)    Notwithstanding any other provisions of this Section 6, pursuant to 18 USC Section 1833(b), Executive shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of any Confidential Information that is a trade secret that is made: (i) confidentially to a federal, state, or local government official, either directly or indirectly, or to an attorney, and solely for the purpose of reporting or investigating a suspected violation of law; or (ii) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  If Executive files a lawsuit for retaliation by Cigna for reporting a suspected violation of law, Executive may disclose such trade secret to his attorney and use the trade secret information in related court proceedings, provided that Executive files any document containing the trade secret information under seal and do not disclose the trade secret, except pursuant to court order.  Notwithstanding any provision of this Agreement to the contrary, the provisions of this Agreement are not intended to, and shall be interpreted in a manner that does not, limit or restrict Executive from exercising his legally protected whistleblower rights (including pursuant to Rule 21F under the Exchange Act).
7.    Cooperation.  Executive agrees to reasonably cooperate with the Company in all investigations, litigation and arbitrations of any kind, to reasonably assist and cooperate in the preparation and review of documents and in meetings with Company attorneys, and to provide truthful testimony as a witness or a declarant in connection with any present or future court, administrative agency, or arbitration proceeding involving the Company and with respect to which Executive has relevant information.  The Company will reimburse Executive, upon production of appropriate receipts and in accordance with Cigna’s then existing Business Travel Reimbursement Policy, for the reasonable business expenses (including air transportation, hotel and similar expenses) incurred by Executive in connection with such assistance.  All receipts for such expenses must be presented for reimbursement within 45 days after the expenses are incurred in providing such assistance.

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8.    Non-Disparagement.  Executive agrees that Executive will not disparage the Company or its current or former officers, directors, and employees in any way; further, Executive will not make or solicit any comments, statements, or the like to the media or to others that would be considered derogatory or detrimental to the good name or business reputation of any of the aforementioned entities or individuals; provided, that this section does not prohibit statements which Executive is required to make under oath or which are otherwise required by law or in connection with the enforcement of Executive’s rights hereunder, provided, that such statements are truthful and made in a professional manner; further provided, that this section does not prohibit Executive from making statements which would otherwise be in violation of this section, provided such statements are made by Executive in response to public statements made by the Company, or its authorized representatives, which are derogatory or detrimental to the good name or business reputation of Executive.
9.    Entire Agreement.  This Agreement shall supersede any and all prior oral or written representations, understandings and agreements of Executive and the Company or Express Scripts or any of its Affiliates with respect to Executive’s employment relationship, including but not limited to the Prior Agreement, and this Agreement contains the entire agreement of the parties with respect to those matters; no agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party that are not set forth expressly in this Agreement.  Notwithstanding the prior sentence, this Agreement shall not supersede any award agreements entered into between the Company and Executive with respect to the Converted Awards (as modified by this Agreement) and the Initial Equity Awards.  Executive hereby agrees that, in consideration for entering into this Agreement, effective as of the Effective Time, the Prior Agreement shall be null and void and no Person or entity shall be obligated to pay to Executive or any Person any amounts in respect of the Prior Agreement.
10.    Enforceability and Remedies.
(a)    Executive agrees that the restrictions on, and other provisions relating to, Executive’s activities contained in this Agreement are fully reasonable and necessary to protect the goodwill, Confidential Information, and other legitimate interests of the Company.  Executive also acknowledges and agrees that, were Executive to breach the provisions of this Agreement, the harm to the Company would be irreparable.  Executive therefore agrees that in the event of such a breach or threatened breach the Company shall, in addition to any other remedies available to it, have the right to obtain preliminary and permanent injunctive relief against any such breach without having to post bond.  Executive further agrees that, in addition to any other relief awarded to the Company as a result of Executive’s breach of any of the provisions of this Agreement, the Company shall be entitled to recover all payments made to Executive or on Executive’s behalf hereunder.

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(b)    Executive hereby agrees that in the event any provision of this Agreement shall be determined by any court of competent jurisdiction to be unenforceable by reason of its being extended over too long a time, too large a geographic area, or too great a range of activities, such provision shall be deemed to be modified to permit its enforcement to the maximum extent permitted by law.
(c)    Executive and the Company hereby agree that that any actions seeking emergency, temporary or permanent injunctive relief arising out of or relating to the Covenants shall be brought exclusively in the United States District Court for the Eastern District of Pennsylvania (“Federal Court”) or in any court in the Commonwealth of Pennsylvania (collectively, “State Court”) if the Federal Court lacks subject matter jurisdiction to adjudicate the dispute or controversy.  Additionally, Executive and the Company expressly waive any defense of inconvenient forum and any other venue or jurisdiction-related defenses that each might otherwise have in such a proceeding brought in the Federal Court or the State Court.
11.    Assignment.  Neither Cigna nor Executive may make any assignment of this Agreement or any interest herein, by operation of law or otherwise, without the prior written consent of the other; provided, however, that (a) Cigna may assign its rights and obligations under this Agreement without Executive’s consent to any successor entity of Cigna and (b) this Agreement shall automatically be assigned, without any further action on the part of Cigna or Executive, to Holdco, effective as of the Effective Time, and from and after the Effective Time, references herein to “Cigna” shall be deemed to refer to Holdco.  This Agreement shall inure to the benefit of and be binding upon Cigna, its successors (including, without limitation, any transferee of all or substantially all of its assets to any successor entity of Cigna), and permitted assigns and upon Executive, Executive’s executors, administrators, heirs, and permitted assigns.
12.    Notices.  Any and all notices, requests, demands, acceptances, appointments and other communications provided for by this Agreement shall be in writing (including electronic mail or similar electronic transmission) and shall be effective when actually delivered in person or, if mailed, five days after having been deposited in the United States mail, postage prepaid, registered or certified and addressed to Executive at Executive’s last known address on the books of the Company or, in the case of the Company, addressed to:
Cigna Executive Compensation 
1601 Chestnut Street 
Philadelphia, PA 19192
13.    Withholding.  All compensation paid or provided to Executive under this Agreement shall be subject to any applicable income, payroll or other tax withholding requirements.
14.    Section 409A.

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(a)    It is intended that the payments and benefits under this Agreement comply with, or be exempt from, the requirements of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and this Agreement shall be so administered and interpreted.  The PRC or the Company may make any changes required to conform this Agreement with applicable Code provisions and regulations relating to deferral of compensation under Section 409A of the Code; provided, however, that such changes shall not adversely affect the rights or net benefits to which Executive is entitled hereunder.  With respect to any amounts payable hereunder in installments, each installment shall be treated as a separate payment for purposes of Section 409A of the Code.
(b)    Notwithstanding anything to the contrary in this Agreement, if the Company determines (i) that on the date Executive’s employment with the Company terminates or at such other time that the Company determines to be relevant, Executive is a “specified employee” (as such term is defined under Treasury Regulation 1.409A−1(i)(1)) of the Company and (ii) that any payments to be provided to Executive pursuant to this Agreement are or may become subject to the additional tax under Section 409A(a)(1)(B) of the Code or any other taxes or penalties imposed under Section 409A of the Code (“Section 409A Taxes”) if provided at the time otherwise required under this Agreement, then such payments shall be delayed until the date that is six months after the date of Executive’s “separation from service” (as such term is defined under Treasury Regulation 1.409A−1(h)) with the Company, or such shorter period that, as determined by the Company, is sufficient to avoid the imposition of Section 409A Taxes.  For the avoidance of doubt, it is anticipated that payments qualifying for the exemption from application of Section 409A of the Code pursuant to Treasury Regulation 1.409A-1(b)(4) or 1.409A−1(b)(9)(iii) will be made during this six-month period, if applicable.  Any payments delayed pursuant to this Section 14 shall be made in a lump sum on the first day of the seventh month following Executive’s “separation from service” (as such term is defined under Treasury Regulation 1.409A−1(h)), or such earlier date that, as determined by the Company, is sufficient to avoid the imposition of any Section 490A Taxes.
(c)    For purposes of any payment due hereunder upon a termination of employment that is subject to the provisions of Section 409A of the Code, such phrase or any similar phrase shall mean a “separation from service” as defined by the default provisions of Treasury Regulation 1.409A-1(h).
(d)    By accepting this Agreement, Executive hereby agrees and acknowledges that the Company makes no representations with respect to the application of Section 409A of the Code to any tax, economic, or legal consequences of any payments payable to Executive hereunder and, by the acceptance of this Agreement, Executive agrees to accept the potential application of Section 409A of the Code to the tax and legal consequences of payments payable to Executive hereunder.

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15.    Tax Reimbursement.  The Executive shall be entitled to an excise tax reimbursement on the terms, and subject to the conditions, set forth in Appendix C.
16.    Other Arrangements.  If any provision of this Agreement conflicts with any other agreement, policy, plan, practice or other Company document, then the provisions of this Agreement shall control.  For the purposes of Cigna’s Executive Severance Benefits Plan, this Agreement shall be considered an individual agreement that provides severance benefits and payments upon a termination of employment pursuant to Section 3 hereof shall be considered severance benefits.
17.    Choice of Law.  The validity, interpretation, construction, and performance of this Agreement shall be governed by the laws of the Commonwealth of Pennsylvania without giving effect to choice of law or conflict of law rules or provisions thereof.  The parties agree that, in the event it becomes necessary to seek judicial remedies, which, for the avoidance of doubt, shall not include arbitration, for the breach or threatened breach of this Agreement, the prevailing party will be entitled, in addition to all other remedies, to recover from the non-prevailing party reasonable attorneys’ fees and costs upon the entry of a final nonappealable judgment.
18.    Arbitration.  Except as otherwise provided in Section 10(c), Executive and the Company agree that any and all disagreements, disputes or claims listed below will be resolved exclusively by arbitration in the Philadelphia, Pennsylvania area; provided, however, that this arbitration provision shall not apply to claims or actions that are based (in whole or in part) on, or arise out of, the Covenants.  Arbitration will be conducted in accordance with the Employment Dispute Resolution Rules of the American Arbitration Association.  Copies of the Arbitration Policy and Rules and Procedures are available to Executive upon request.  A legal judgment based upon the arbitrator’s award may be entered in any court having jurisdiction over the matter.  Each party shall be liable for its own costs and expenses (including attorneys’ fees) of any arbitration.  Except as otherwise provided in Section 10(c), Executive and the Company agree to arbitrate anything: (a) related in any way to this Agreement or how it is interpreted or implemented; and (b) that involves Executive’s employment with the Company or the termination of that employment, including any disputes arising under local, state or federal statutes or common law.
19.    Miscellaneous.
(a)    The headings and captions in this Agreement are for convenience only and in no way define or describe the scope or content of any provision of this Agreement.  Nothing herein shall be deemed to create an employment contract, and Executive acknowledges that Executive’s employment by the Company is terminable at will by either party with or without cause and with or without notice.  This Agreement and its Appendices may not be modified, waived, or discharged unless such waiver, modification, or discharge is agreed to in a writing signed by 

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Executive and a duly authorized officer of the Company.  Each party shall perform such further acts and execute and deliver such further documents as may be reasonably necessary to carry out the provisions of this Agreement.
(b)    This Agreement may be executed in two or more counterparts, each of which shall be an original and all of which together constitute one and the same instrument.  If any term or other provision of this Agreement is invalid, illegal, or incapable of being enforced by any rule of law, or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner adverse to any party.  Upon such determination that any term or other provision is invalid, illegal, or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the fullest extent possible.
[Signature page follows.]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement to be effective as of the date first written above.
	
			
	 
	CIGNA CORPORATION

	 
	 

	 
	By:
	/s/ John Murabito

	 
	   John Murabito

	 
	   Its:  Executive Vice President

	 
	 

	 
	Timothy Wentworth

	 
	 

	 
	/s/ Timothy Wentworth

	 
	 

[Signature page.]

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Appendix A	
		
	Position:
	Executive will serve as President, Express Scripts.  The Executive will be an employee at-will.

	Duties and Reporting:
	Executive will be responsible for the pharmacy benefits management subsidiary of Holdco, including all duties and responsibilities commensurate with such position as may be assigned from time to time, reporting directly to the Chief Executive Officer of the Company.

	Work Location:
	Executive’s work location will be the corporate office of Express Scripts as of immediately prior to the Effective Date in St. Louis, Missouri.

	Annual Base Salary:
	Executive’s annual base salary will be $1.5 million, subject to review annually for increase.

	Annual Incentive Award:
	Executive will be eligible to receive an annual incentive award, payable in cash, with a target award opportunity of 175% of Executive’s Annual Base Salary (the “Target Incentive Award”) and a maximum potential award opportunity of 200% of the Target Incentive Award; provided, however, that Executive shall receive no annual incentive award for the year in which the Effective Time occurs in the event that Express Scripts pays Executive a non-prorated annual incentive bonus with respect to such year prior to the Effective Time and, provided further, that Executive shall receive a prorated annual incentive award from Cigna for the remainder of the year in which the Effective Time occurs in the event that Express Scripts pays Executive a prorated annual incentive award with respect to the portion of such year prior to the Effective Time.

The annual incentive award shall be determined by the PRC on the same basis as incentive award determinations are made for Peer Executives and shall be paid no later than March 15th of the calendar year following the year in which it was earned.

	Annual Incentive Stock Awards:
	Executive will be eligible to receive annual Cigna equity awards, to the extent determined by the PRC, based on an annual target award opportunity of $6 million delivered 50% in stock options and 50% in strategic performance shares, or in such other form as determined by the PRC in its sole discretion and with the terms and conditions of such awards set forth in the applicable grant agreements; such form, vesting conditions and other terms and conditions to be no less favorable than those applicable to the Peer Executives.

	Severance; Change in Control:
	Following the Retention Period, for so long as Executive is an executive officer of Cigna, Executive shall be eligible to participate in Cigna’s severance plans applicable to Peer Executives (including any such plan providing for severance benefits upon a qualifying termination following a “change in control” of Cigna (as defined in such plan)), as in effect from time to time.

	Termination of Employment Due to Death or Disability:
	Upon Executive’s termination of employment due to death or “disability” (as defined in Cigna’s long-term disability plan then in effect), Executive (or Executive’s estate, as applicable) will be entitled to receive a prorated annual incentive award based on actual performance for the year in which the termination of employment occurs, payable at the same time that bonuses are paid to Peer Executives.

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Appendix B
AGREEMENT AND RELEASE
This Agreement and Release (Agreement) is dated ________ (Today), and is between Timothy Wentworth (you), and Cigna Corporation, a Delaware corporation (the Company).
As a condition to receiving the payments set forth under Section 3 of the Executive Retention Agreement between you and the Company, dated [insert date], (the “Retention Agreement”), you, intending to be legally bound by this Release, are entering into this Release in reliance on the promises made by the parties hereunder.
You and the Company intend to be legally bound by this Agreement, and are entering into it in reliance on the promises made to each other in this Agreement.  Under this Agreement, your employment will end, and you and the Company agree to settle all issues concerning your employment and termination of employment.
1.    Your Termination Date.  Your employment with the Company will end on [insert date] (the Termination Date).  Your formal job responsibilities will end on the Termination Date.
2.    Your Promises to the Company.
(a)    “Cigna” means, as used throughout this Agreement, Cigna Corporation and any subsidiaries or affiliates of Cigna Corporation.
(b)    You will, on or before your Termination Date, return to Cigna any Cigna property that you now have (for example: identification card, access card, office keys, computer, cell phone, Blackberry, company manuals, office equipment, records and files).  You represent that you have not retained any copies, duplicates, reproductions, computer disks, or excerpts thereof, whether in hard copy or electronic form, of Cigna’s documents.  You agree that, by signing this Agreement, you are formally resigning, as of the Termination Date, from all officer or director positions you hold with Cigna and will sign any additional paperwork that may be reasonably required by Cigna or law to effectuate such resignation.
(c)    You agree to continue to abide by the Covenants (as defined in the Retention Agreement) as well as to cooperate with the Company per Section 7 of the Retention Agreement, which you acknowledge such obligations survive your termination of employment with the Company.
(d)    You hereby acknowledge that you are aware that the securities laws of the United States generally prohibit any person who has material non-public information about a company from, among other things, (1) purchasing or selling securities of such company or securities 

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convertible into such securities on the basis of such information or (2) communicating such information to any other person under circumstances in which it is reasonably foreseeable that such person may purchase or sell such securities or securities convertible into such securities. Accordingly, you agree that you will not make any purchase or sale of, or otherwise consummate any transactions involving, Cigna securities or securities convertible into Cigna securities, including with respect to your Cigna 401(k) account, while in possession of material Confidential Information (as defined in the Retention Agreement) regarding Cigna, nor will you communicate such information in a manner that violates the securities laws of the United States (regardless of whether such communication would be permitted elsewhere in this Agreement.) If you consummate a transaction involving Cigna securities (or securities convertible into Cigna securities), you will file (or cause to be filed) any and all reports or notifications that may be required under Section 16 of the Securities and Exchange Act of 1934, as amended.
3.    Pay and Benefits Until Termination Date.
(a)    From Today until your Termination Date, the Company will continue to pay you a salary at your current regular salary rate and will reimburse you for all expenses in accordance with the Company’s reimbursement policy, and you and your eligible dependents may continue to participate in the Company’s employee benefits programs in accordance with the terms of those programs.
(b)    You understand and agree that you will not be covered by the Cigna Short-Term Disability Plan or Cigna Long-Term Disability Plan after the Termination Date.
(c)    You will continue to accrue Paid Time Off through your Termination Date, but will not be entitled to use any further time off benefits after Today unless specifically approved by the Company.  The Company will make a lump sum payment to you within 30 days after your Termination Date for any Paid Time Off days you earned but have not used prior to your Termination Date.
(d)    If you die before your Termination Date, the date you die will automatically be your new Termination Date and your salary will be payable only until your new Termination Date.  If you die before the Company pays you all amounts due under paragraphs 3.a and 3.c of this Agreement, the remaining amounts will be paid to your surviving spouse or, if you have no surviving spouse, to your estate.  If you die before the payment of any other amounts described in this paragraph 3, the payments will be made under the terms of the applicable plan.
(e)    None of the payments described in this paragraph 3, except for salary payments under paragraph 3.a, will be treated as eligible earnings for any benefits purposes, and salary payments will be treated as eligible earnings only to the extent provided by the terms of the applicable benefit plan.

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(f)    Any benefits you may have earned under the Cigna Deferred Compensation, 401(k) and Supplemental 401(k) Plans or other deferred payment arrangements will be paid to you under the terms and provisions of those plans and arrangements.
(g)    Until your Termination Date any options on Cigna Corporation stock that you hold will continue to vest under the terms of the applicable plan and your applicable grant, including the terms and conditions that you must continue to honor.  You may exercise vested options only in accordance with the terms of the plan and grants and subject to Cigna Corporation’s Insider Trading Policy.  Any unexercised and unvested options that you hold on your Termination Date will be subject to the terms of the applicable plans and grant documents.
(h)    You will receive no other money or benefits from the Company, except as provided in this Agreement or the Retention Agreement.
4.    Acknowledgment and Release of Claims.
(a)    You acknowledge that there are various local, state, and federal laws that prohibit, among other things, employment discrimination on the basis of age, sex, race, color, national origin, religion, disability, sexual orientation, or veteran status and that these laws are enforced through the Equal Employment Opportunity Commission, Department of Labor, and state or local human rights agencies.  Such laws include, without limitation, Title VII of the Civil Rights Act of 1964 (Title VII); the Age Discrimination in Employment Act (ADEA); the Americans with Disabilities Act (ADA); the Employee Retirement Income Security Act (ERISA); 42 U.S.C. Section 1981; the Family and Medical Leave Act (FMLA); the Fair Labor Standards Act (FLSA), etc., as each may have been amended, and other state and local human or civil rights laws, as well as other statutes which regulate employment; and the common law of contracts and torts. You acknowledge that the Company has not (i) discriminated against you in contravention of these laws; (ii) breached any contract with you; (iii) committed any civil wrong (tort) against you; or (iv) otherwise acted unlawfully toward you.
You further acknowledge that except for any benefits to which you are entitled under any employee benefit programs in which the Company participates, the Company or Cigna has paid and, upon payment of the amounts provided for in this Agreement, will have paid you: (i) all salary, wages, bonuses and other compensation that might be due to you, including any and all amounts provided for in the Retention Agreement and (ii) all reimbursable expenses, if any, to which you may be entitled.
(b)    On behalf of yourself, your heirs, executors, administrators, successors and assigns, you hereby unconditionally release and discharge Cigna, the various plan fiduciaries for the benefit plans maintained by or on behalf of Cigna, and their successors, assigns, affiliates, shareholders, directors, officers, representatives, agents and employees (collectively, Released 

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Person) from all claims (including claims for attorneys’ fees and costs), charges, actions and causes of action, demands, damages, and liabilities of any kind or character, in law or equity, suspected or unsuspected, past or present, that you ever had, may now have, or may later assert against any Released Person, arising out of or related to your employment with, or termination of employment from, the Company. To the fullest extent permitted by law, this release includes, but is not limited to: (i) claims arising under the ADEA, the Older Workers Benefit Protection Act, the Workers’ Adjustment and Retraining Notification Act, ERISA, FMLA, ADA, FLSA, and any other federal, state, or local law prohibiting age, race, color, gender, creed, religion, sexual preference/orientation, marital status, national origin, mental or physical disability, veteran status, or any other form of unlawful discrimination or claim with respect to or arising out of your employment with or termination from the Company, including wage claims; (ii) claims (whether based on common law or otherwise) arising out of or related to any contract (whether express or implied); (iii) claims under any federal, state or local constitutions, statutes, rules or regulations; (iv) claims (whether based on common law or otherwise) arising out of any kind of tortious conduct (whether intentional or otherwise) including but not limited to, wrongful termination, defamation, violation of public policy; and (v) claims included in, related to, or which could have been included in any presently pending federal, state or local lawsuit filed by you or on your behalf against any Released Person, which you agree to immediately dismiss with prejudice.
For purposes of implementing a full and complete release and discharge of all Released Persons, you expressly acknowledge that this release is intended to include not only claims that are known, anticipated, or disclosed, but also claims that are unknown, unanticipated, or undisclosed.  You are aware that there may be discovery of claims or facts in addition to or different from those known or believed to be true with respect to the matters related herein.  Nevertheless, it is your intention to fully, finally, and forever settle and release all such matters, and all claims related thereto, which now exist, may exist, or heretofore have existed between you and any Released Person, whether suspected or unsuspected.  In furtherance of such intention, this Agreement shall be and remain in effect as a full and complete release of all such matters, notwithstanding the discovery or existence of any additional or different claims or facts relative thereto.
You also understand that by signing this Agreement you are giving up any right to become, and you are promising not to consent to become, a member of any class in a case in which claims are asserted against any Released Person that are related in any way to your employment with or termination of employment from the Company, and that involve events that occurred on or before the date you signed this Agreement.  If, without your prior knowledge and consent, you are made a member of a class in any such proceeding, you will opt out of the class at the first opportunity afforded to you after learning of your inclusion.  In this regard, you will execute, without objection or delay, an “opt-out” form presented to you either by the court in 

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which such proceeding is pending or by counsel for any Released Person who is made a defendant in any such proceeding.
(c)    This Release does not include (and you and the Company are not releasing):
(i)    any claims against the Company for promises it is making or has made to you in this Agreement or Section 3 of the Retention Agreement;
(ii)    any claims for employee benefit payments to which the Plan Administrator determines you are entitled under the terms of any retirement, savings, or other employee benefit programs in which the Company participates; provided such determination is not arbitrary and capricious (but your Release does cover any claims you may make for severance benefits and any claims for benefits beyond those provided under the terms of the applicable program);
(iii)    any claims against the Company for promises it has made to you under any Cigna stock or option grants to the extent that the circumstances resulting in such claim arise after the date you sign this Agreement;
(iv)    any claims against the Company that may arise after the date you sign this Agreement;
(v)    any claims covered by workers compensation or other laws that are not, or may not be, as a matter of law, releasable or waivable;
(vi)    any rights you have to indemnification under the Company’s (and, if applicable, any Company affiliate’s) by-laws, directors and officers liability insurance or this Agreement or any rights you may have to obtain contribution as permitted by law in the event of entry of judgment against you as a result of any act or failure to act for which you and the Company are jointly liable; and
(vii)    any claims that you did not knowingly and voluntarily waive your rights under the ADEA.
5.    No Admission of Wrongdoing.  Just because the Company is entering into this Agreement and paying you money, the Company is not admitting that it (or any Released Person) has done anything wrong or violated any law, rule, order, policy, procedure, or contract, express or implied, or otherwise incurred any liability.  Similarly, by entering into this Agreement, you are not admitting that you have done anything wrong or violated any law, rule, order, policy, procedure, or contract, express or implied, or otherwise incurred any liability.
6.    Applicable Law and Exclusive Forum.  This Agreement is being made in Pennsylvania.  Therefore, this Agreement will be interpreted, enforced and governed under the laws of 

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Pennsylvania (without regard to its conflict of laws principles); provided, however, that your eligibility for, or the amount of any, employee benefits shall be subject to the terms of the applicable benefit plans and the provisions of the Employee Retirement Income Security Act of 1974, as amended (ERISA).  Additionally, you and Cigna hereby agree that that any controversy or proceeding arising out of or relating to the Covenants shall be brought exclusively in the United States District Court for the Eastern District of Pennsylvania (“Federal Court”) or in any Pennsylvania court where venue is appropriate and that has subject matter jurisdiction over the dispute (collectively, “Pennsylvania Courts”) if the Federal Court lacks subject matter jurisdiction to adjudicate the dispute or controversy.  Additionally, you and Cigna expressly waive any defense of inconvenient forum and any other venue or jurisdiction-related defenses that you each might otherwise have in such a proceeding brought in the Federal Court or Pennsylvania Courts.
7.    Arbitration.  Except as otherwise provided in the Retention Agreement with respect to seeking emergency, temporary or permanent injunctive relief arising out of or relating to the Covenants, without in any way affecting the release in paragraph 4, any and all disagreements, disputes or claims listed below will be resolved exclusively by arbitration in the Philadelphia, Pennsylvania area.
Arbitration will be conducted in accordance with the Employment Dispute Resolution Rules of the American Arbitration Association, as modified by Company.  Copies of the Arbitration Policy and Rules and Procedures have been provided to you.  A legal judgment based upon the Arbitrator’s award may be entered in any court having jurisdiction over the matter.  Each party shall be liable for its own costs and expenses (including attorneys’ fees).  You and the Company agree to arbitrate anything:
(a)    related in any way to this Agreement or how it is interpreted or implemented (including the validity of your ADEA waiver); or
(b)    that involves your employment with Company or the termination of that employment, including any disputes arising under local, state or federal statutes or common law (if for any reason your release and waiver under paragraph 4 is found to be unenforceable or inapplicable).
8.    Final and Entire Agreement; Amending the Agreement.  This Agreement is intended to be the complete, entire and final agreement between you and the Company.  It fully replaces all earlier agreements or understandings; however, it does not replace the terms of the Retention Agreement or any:
(a)    Cigna stock or option grants you might have received or the terms of any employee benefit plan;

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(b)    Arbitration agreement that you currently have with Cigna which shall remain in full force and effect;  or
(c)    Agreement you might have entered into with the Company that requires you to pay back money to the Company, or that authorizes the Company to deduct money from your pay, when your employment terminates or at any other time.
Neither you nor the Company has relied upon any other statement, agreement or contract, written or oral, in deciding to enter into this Agreement.
Any amendment to this Agreement must be in writing and signed by both you and the Company.  Any waiver by any person of any provision of this Agreement shall be effective only if in writing, specifically referring to the provision being waived and signed by the person against whom enforcement of the waiver is being sought.  No waiver of any provision of this Agreement shall be effective as to any other provision of this Agreement except to the extent specifically provided in an effective written waiver.  If any provision or portion this Agreement is determined to be invalid or unenforceable in a legal forum with competent jurisdiction to so determine, the remaining provisions or portions of this Agreement shall remain in full force and effect to the fullest extent permitted by law and the invalid or unenforceable provisions or portions shall be deemed to be reformed so as to give maximum legal effect to the agreements of the parties contained herein.
9.    Your Understanding.  By signing this Agreement, you admit and agree that:
(a)    You have read this Agreement.
(b)    You understand it is legally binding, and you were advised to review it with a lawyer of your choice.
(c)    You have had (or had the opportunity to take) at least 21 calendar days to discuss it with a lawyer of your choice before signing it and, if you sign it before the end of that period, you do so of your own free will and with the full knowledge that you could have taken the full period.
(d)    You realize and understand that the release covers certain claims, demands, and causes of action against the Company and any Released Persons relating to your employment or termination of employment, including those under ADEA.
(e)    You understand that the terms of this Agreement are not part of an exit incentive or other employment termination program being offered to a group or class of employees.

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(f)    You are signing this Agreement knowingly, voluntarily and with the full understanding of its consequences, and you have not been forced or coerced in any way.
10.    Revoking the Agreement.  You have seven calendar days from the date you sign this Agreement to revoke and cancel it.  To do that, a clear, written cancellation letter, signed by you, must be received by Cigna Executive Compensation c/o [insert], Cigna Corporation, 1601 Chestnut Street TL05Z, Philadelphia, PA, 19192 before 5:00 p.m. Eastern Time on the seventh calendar day following the date you sign this Agreement.  This Agreement will have no force and effect until the end of that seventh day; provided that, during such seven-day period, the Company shall not be able to revoke this Agreement or cancel it.
11.    If Legal Action Is Started by You.  You understand and agree that the Company’s main reason for entering into this Agreement is to avoid lawsuits and other litigation.  Therefore, if any legal action covered by this Agreement (other than claims excluded from the release provisions of this Agreement) is started by you (or by someone else on your behalf) against any Released Person, you agree to withdraw such proceeding or claim with prejudice.
If you fail to withdraw such proceeding or claim (or fail to opt out of a class action that includes you) within 30 days of receipt of written notice from the Released Person requesting that you withdraw such proceeding or claim (or in the case of a class action, within 30 days of the later of such request or your being given the opportunity to opt out), then in addition to any other equitable or legal relief that the Company may be entitled to:
(a)    You may forfeit all or any portion of the amounts due hereunder and under the Retention Agreement;
(b)    You agree to pay back to the Company within 60 days after receipt of written notice from the Company all the money you receive under Section 3 of the Retention Agreement; and
(c)    You agree to pay the Company the reasonable costs and attorneys’ fees it incurs in defending such action.
You represent that as of Today you have not assigned to any other party, and agree not to assign, any claim released by you under this Agreement.  (If you claim that your release of ADEA claims was not knowing and voluntary, the Company reserves its right to recover from you its attorneys’ fees and/or costs in defending that claim, at the conclusion of that action.)
Upon a finding by a court of competent jurisdiction or arbitrator that a release or waiver of claims provided for by paragraph 4 above is illegal, void or unenforceable, the Company or you, as the case may be, may require the other party to execute promptly a release that is legal 

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and enforceable and does not extend to Claims not released under paragraph 4.  If you fail to execute such a release within a reasonable period of time, then this Agreement shall be null and void from Today on, and any money paid to you by the Company after Today under Section 3 of the Retention Agreement and not previously returned to the Company, will be treated as an overpayment.  You will have to repay that overpayment to the Company with interest, compounded annually at the rate of 4%.  However, the repayment provision in this paragraph does not apply to legal actions in which you claim that your release of ADEA claims was not knowing and voluntary.
This paragraph 11 does not apply to anything of value given to you for which you actually performed services and by law you are entitled to receive.
Neither this paragraph 11, nor anything else in this Agreement, is intended to prevent you from instituting legal action for the sole purpose of enforcing this Agreement or from filing a charge with, furnishing information to, or participating in an investigation conducted by, the Equal Employment Opportunity Commission, the National Labor Relations Board, the Securities and Exchange Commission or any comparable federal, state or local governmental agency; provided however, that, with the exception of any whistleblower award from the Securities and Exchange Commission, you expressly waive and relinquish any right you might have to recover damages or other relief, whether equitable or legal, in any such proceeding concerning events or actions that arose on or before the date you signed this Agreement. You agree to inform the EEOC, any other governmental agency, any court or any arbitration organization that takes jurisdiction over any matter relating to your employment or termination of employment that this Agreement constitutes a full and final settlement by you of all claims released hereunder.
12.    Representations.  The Company represents and warrants that (a) the execution, delivery and performance of this Agreement has been fully and validly authorized by all necessary corporate action (including, without limitation, by any action required to be taken by the board of directors of the Company or any affiliate, any committee of such board or any committee or designee administering the applicable Cigna plans); (b) the Cigna officer signing this Agreement on behalf of the Company is duly authorized to do so; (c) the execution, delivery and performance of this Agreement does not violate any applicable law, regulation, order, judgment or decree or any agreement, plan or corporate governance document to which the Company or any affiliate is a party or by which it is bound; and (d) upon execution and delivery of this Agreement by the parties, it shall be a valid and binding obligation of the Company enforceable against it in accordance with its terms, except to the extent that enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally.

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13.    Notices.  Except as provided below, any notice, request or other communication given in connection with this Agreement shall be in writing and shall be deemed to have been given (a) when personally delivered to the recipient or (b) provided that a written acknowledgement of receipt is obtained, three days after being sent by prepaid certified or registered mail, or two days after being sent by a nationally recognized overnight courier, to the address specified in this paragraph 13 (or such other address as the recipient shall have specified by ten days’ advance written notice given in accordance with this paragraph 13). Such communication shall be addressed to you as follows (unless such address is changed in accordance with this paragraph 13):
Timothy Wentworth 
[Insert]

and to the Company or Cigna as follows:

[Insert], Cigna Corporation
1601 Chestnut Street TL05Z
Philadelphia, PA, 19192
However, Cigna and you may deliver any notices or other communications related to any employee benefit or compensation plans, programs or arrangements in the same manner that similar communications are delivered to or from other current or former employees, including by electronic transmission and first class mail.
14.    Successors and Assigns.  This Agreement will be binding on and inure to the benefit of the parties and their respective successors, heirs (in your case) and permitted assigns.  No rights or obligations of the Company under this Agreement may be assigned or transferred without your prior written consent, except that such rights or obligations may be assigned or transferred pursuant to a merger or consolidation in which the Company is not the continuing entity, or a sale, liquidation or other disposition of substantially all of the assets of the Company, provided that the assignee or transferee is the successor to the Company (or in connection with a purchase of Company assets, assumes the liabilities, obligations and duties of the Company under this Agreement), either contractually or as a matter of law. Your rights or obligations under this Agreement may not be assigned or transferred by you, without the Company’s prior written consent, other than your rights to compensation and benefits, which may be transferred only by will or operation of law or pursuant to the terms of the applicable plan, program, grant or agreement of Cigna or the Company.  In the event of your death or a judicial determination of your incompetence, references in this Agreement to you shall be deemed to refer, where appropriate, to your legal representative, or, where appropriate, to your beneficiary or beneficiaries.

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15.    Injunctive Relief.  You agree that Cigna shall, in addition to any other relief available at law or equity, be entitled to injunctive relief and/or to have the Covenants specifically enforced by a court of competent jurisdiction (without the requirement to post a bond), it being agreed that any breach or threatened breach of the Covenants would cause irreparable injury to Cigna and that monetary damages alone would not provide an adequate remedy.  The remedies contained herein are cumulative and are in addition to any other rights and remedies Cigna may have at law or in equity.
16.    This Agreement is not effective or binding on either party until fully signed by both parties.
The persons named below have signed this Agreement on the dates shown below:
	
		
	 
	 

	Date
	Timothy Wentworth

	 
	 

	 
	 

	Date
	on behalf of the Company

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Appendix C
Tax Reimbursement
Subject to Executive reasonably cooperating with Cigna to minimize the amount of any Payment (as defined below) subject to the Excise Tax (as defined below):
(a)    In the event it shall be determined that any payment, benefit or distribution (or combination thereof) by the Company to or for the benefit of Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement, or otherwise) (a “Payment”) would be subject to the excise tax imposed by Section 4999 of the Code solely in connection with the transactions contemplated by the Merger Agreement (and not, for the avoidance of doubt, in connection with any subsequent change in control of the Company), or any interest or penalties are incurred by Executive with respect to such excise tax (such excise tax, together with any such interest and penalties, hereinafter collectively referred to as the “Excise Tax”), Executive shall be entitled to receive an additional payment (a “Reimbursement Payment”) in an amount such that after payment by Executive of all taxes, including, without limitation, any income taxes (including any interest and penalties imposed with respect to such taxes) and the Excise Tax imposed upon the Reimbursement Payment, Executive retains an amount of the Reimbursement Payment equal to the Excise Tax imposed upon the Payments and payable by Executive, to the extent necessary to put Executive in the same after-tax position as if no such Excise Tax had been imposed upon the Payments.
(b)    Subject to the provisions of clause (c) below, all determinations required to be made under this Appendix C, including whether and when a Reimbursement Payment is required and the amount of such Reimbursement Payment and the assumptions to be utilized in arriving at such determination, shall be made by Golden Parachute Tax Solutions LLC (the “Accounting Firm”) which shall provide detailed supporting calculations both to the Company and Executive within fifteen (15) business days of the receipt of notice from Executive that there has been a Payment, or such earlier time as is requested by the Company. Executive and Cigna shall cooperate in good faith in valuing, and the Accounting Firm shall take into account the value of, services provided or to be provided by Executive (including, without limitation, Executive’s agreement to refrain from performing services pursuant to Section 5 of the Agreement or any other covenant not to compete or similar covenant, before, on or after the date of a change in ownership or control (within the meaning of Q&A-2(b) of the final regulations under Section 280G of the Code)), such that payments in respect of such services may be considered reasonable compensation within the meaning of Q&A-9 and Q&A-40 to Q&A-44 of the final regulations under Section 280G of the Code and/or exempt from the definition of the term “parachute payment” within the meaning of Q&A-2(a) of the final regulations under Section 280G of the Code in accordance with Q&A-5(a) of the final regulations under Section 280G of the Code.  All 

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fees and expenses of the Accounting Firm shall be borne solely by the Company.  Any Reimbursement Payment, as determined pursuant to this Appendix C, shall be paid by the Company to the applicable tax authority on behalf of Executive.  If the Accounting Firm determines that no Excise Tax is payable by Executive, it shall so indicate to Executive in writing.  Any determination by the Accounting Firm shall be binding upon the Company and Executive, unless finally determined otherwise in connection with a claim by the Internal Revenue Service.
(c)    Executive shall notify the Company in writing of any claim by the Internal Revenue Service that, if successful, would require the payment by the Company of the Reimbursement Payment.  Such notification shall be given as soon as practicable but no later than ten (10) business days after Executive is informed in writing of such claim and shall apprise the Company of the nature of such claim and the date on which such claim is requested to be paid.  Executive shall not pay such claim prior to the expiration of the thirty (30) day period following the date on which it gives such notice to the Company (or such shorter period ending on the date that any payment of taxes with respect to such claim is due).  If the Company notifies Executive in writing prior to the expiration of such period that it desires to contest such claim, Executive shall:
(i)    give the Company any information reasonably requested by the Company relating to such claim;
(ii)    take such action in connection with contesting such claim as the Company shall reasonably request in writing from time to time, including, without limitation, accepting legal representation with respect to such claim by an attorney reasonably selected by the Company;
(iii)    cooperate with the Company in good faith in order to effectively contest such claim; and
(iv)    permit the Company to participate in any proceedings relating to such claim;
provided, however, that the Company shall bear and pay directly all costs and expenses (including additional interest and penalties) incurred in connection with such contest and shall indemnify and hold Executive harmless, on an after-tax basis, for any Excise Tax (including interest and penalties with respect thereto) imposed as a result of such representation and payment of costs and expenses.  Without limitation on the foregoing provisions of this clause (c), the Company shall control all proceedings taken in connection with such contest and, at its sole option, may pursue or forego any and all administrative appeals, proceedings, hearings and conferences with the taxing authority in respect of such claim and may, at its sole option, either 

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pay the tax claimed to the appropriate taxing authority on behalf of Executive and direct Executive to sue for a refund or contest the claim in any permissible manner, and Executive agrees to prosecute such contest to a determination before any administrative tribunal, in a court of initial jurisdiction and in one or more appellate courts, as the Company shall determine; provided, however, that if the Company pays such claim and directs Executive to sue for a refund, the Company shall indemnify and hold Executive harmless, on an after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed with respect to such payment or with respect to any imputed income with respect to such payment; and provided, further, that if Executive is required to extend the statute of limitations to enable the Company to contest such claim, Executive may limit this extension solely to such contested amount.
(d)    If, after payment by the Company of an amount on Executive’s behalf pursuant to clause (c) above, Executive becomes entitled to receive any refund with respect to such claim, Executive shall (subject to the Company’s complying with the requirements of clause (c) above) promptly pay to the Company the amount of such refund (together with any interest paid or credited thereon after taxes applicable thereto).  If, after payment by the Company of an amount on Executive’s behalf pursuant to clause (c) above, a determination is made that Executive shall not be entitled to any refund with respect to such claim and the Company does not notify Executive in writing of its intent to contest such denial of refund prior to the expiration of thirty (30) days after such determination, then the amount previously paid by the Company shall offset, to the extent thereof, the amount of the Reimbursement Payment required to be paid.
(e)    The Reimbursement Payment shall in all events be paid no later than the end of Executive’s taxable year next following Executive’s taxable year in which the Excise Tax (and any income or other related taxes or interest or penalties thereon) on a Payment are remitted to the Internal Revenue Service or any other applicable taxing authority or, in the case of amounts relating to a claim described in clause (c) above that does not result in the remittance of any federal, state, local and foreign income, excise, social security and other taxes, no later than the end of the calendar year in which the claim is finally settled or otherwise resolved.

C-3ptc63018ex101q3

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED         AMENDED AND RESTATED STRATEGIC ALLIANCE AGREEMENT  This Amended and Restated Strategic Alliance Agreement, including the attached Exhibits and Schedules (together, “Agreement”) is made as of June 19, 2018 (“Effective Date”) between Rockwell Automation, Inc., with its principal place of business located at 1201 South 2nd Street, Milwaukee, WI 53204 (“RA”), and PTC Inc., with its principal place of business located at 140 Kendrick Street, Needham, MA 02494 (“PTC”). RA and PTC may be referred to in this Agreement individually as a “Party” and together as the “Parties.” To the extent a provision set forth in the body of this Agreement conflict with a provision set forth in an attached Exhibit or Schedule, the provision set forth in the body of the Agreement shall prevail.                                   RECITALS        WHEREAS,   the Parties originally entered into a Strategic Alliance Agreement, dated as of June 11, 2018 (such date, the “Original Effective Date” and such agreement, the “Original Agreement”);        WHEREAS,   the Parties wish to clarify that the Parties intended the Original Agreement to apply to their respective Affiliates in certain applicable situations;        WHEREAS,   PTC is engaged in the business of developing, marketing and selling software products and services, including the PTC Products;        WHEREAS,    RA is engaged in the business of developing, marketing and selling hardware, software and other products and services, including the RA Products;        WHEREAS,   RA and PTC are entering into a Securities Purchase Agreement dated the date hereof (“Securities Purchase Agreement”) pursuant to which, among other things, RA will acquire shares of PTC’s common stock;        WHEREAS,   the Parties desire to cooperate to facilitate interoperability of certain products of each Party that will be marketed and licensed as combined offerings to customers as a co- branded offering under a jointly-owned Combined Offering Brand; and        WHEREAS,   each Party desires to authorize the other Party and/or its resellers to resell certain products and services of licensor Party to end user customers.        NOW, THEREFORE,    in consideration of the foregoing, and in reliance on the mutual agreements contained herein, the Parties agree as follows:                                  AGREEMENT                                         1 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED        Definitions. In addition to terms defined on first use in this Agreement and the terms defined in the OEM Agreement and the Reseller Agreement, the terms set forth in this Section 1 (Definitions) will have the meanings set forth below:              “Affiliate” means any company or other business entity controlled by, controlling or under the common control of the applicable Party. For the purposes of the definition of “Affiliate,” “control” will mean the direct or indirect power to direct, or cause the direction of, the management and policies of a company or other business entity, whether through ownership of more than fifty percent (50%) of the voting interest, by contract, or otherwise (and “controlling” and “controlled” will be construed accordingly).              “Change of Control” means, with respect to a Party: (a) any person, entity or “group” (as such term is used in Section 13 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”))becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Party representing 50% or more of the combined voting power of the Party’s then outstanding securities; (b) the consummation of any merger, consolidation or other business combination in which the holders of the Party’s outstanding voting power immediately prior to such transaction do not own (in substantially the same proportion as their ownership of such voting power immediately prior to the transaction, other than changes in proportionality as a result of any cash/stock election provided under the terms of the definitive agreement regarding such transaction) a majority of the outstanding voting power of the resulting or successor entity (or its ultimate parent, if applicable) immediately upon completion of the transaction; or (c) the sale, transfer, conveyance or other disposition of all or substantially all of the assets of the Party on a consolidated basis to an unrelated person, entity or group.              “Combined Offering” is defined in the OEM Agreement.              “Combined Offering Brand” is defined in Section 4.1.              “Confidential Information” means any information or data, regardless of whether it is in tangible form, disclosed by either Party or its Affiliates (collectively, the “Disclosing Party”) to the other Party or its Affiliates (collectively, the “Receiving Party”) in the performance of this Agreement that the Disclosing Party has either marked as confidential or proprietary, or has identified in writing as confidential or proprietary within thirty (30) days of disclosure to the Receiving Party; provided, however, that reports and/or information related to or regarding a Disclosing Party’s business plans, strategies, technology, customers, prospective customers, billing records, and products or services will be deemed Confidential Information of the Disclosing Party even if not so marked or identified, unless such information is the subject of any of the exceptions set forth in the following sentence. Further, the terms of this Agreement will constitute the Confidential Information of both Parties. Information will not be deemed Confidential Information hereunder if such information: (a) is known to the Receiving Party prior to receipt from the Disclosing Party directly or indirectly from a source other than one having an obligation                                        2 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED  of confidentiality to the Disclosing Party; (b) becomes known (independently of disclosure by the Disclosing Party) to the Receiving Party directly or indirectly from a source other than one having an obligation of confidentiality to the Disclosing Party; (c) becomes publicly known or otherwise ceases to be secret or confidential, except through a breach of this Agreement by the Receiving Party; or (d) is independently developed by the Receiving Party without reference to or use of the Disclosing Party’s Confidential Information.              “Customers” means customers who acquire Products, including any Combined Offering, for their internal use and not for redistribution, remarketing, time-sharing, or service bureau use.              “Customer License Agreement” is defined in the OEM Agreement.              “Disclosing Party” is defined in the definition of Confidential Information.              “Documentation” means the end user documentation that is part of or distributed with the applicable Products.              “Error” means any failure, omission, or defect in a Product that prevents it from performing in material conformity to any applicable Documentation.              “Factory SCO” means any connected operations use case related to increasing productivity, reducing operational risk, increasing system interoperability, and/or increasing efficiency by entities that are in the primary business of manufacturing and/or production output as well as vertical industries or sectors. Vertical industries or sectors include all companies that engage in discrete, hybrid or continuous manufacturing or production activities (including assembly), such as those activities by companies within the industries listed in Exhibit B, as well as government agencies where manufacturing or production occurs with the types of use cases described above (e.g., U.S. Armed Forces manufacturing sites). For the avoidance of doubt, “Factory SCO” will include supply chain, transportation and warehousing, utilities (e.g., water & wastewater treatment operations, power generation and gas distribution), industrial facilities, energy management and related activities, but will exclude (a) “smart cities” and (b) factory equipment manufacturers who build IoT or Augmented Reality into the machines that they sell to factories.              “Factory SCP” means any connected product produced by machine builders or machine building divisions of end user customers, including factory equipment manufacturers who build IoT or Augmented Reality into the machines that they sell to factories, as well as vertical industries or sectors. Vertical industries or sectors include all companies that engage in discrete, hybrid or continuous manufacturing or production activities (including assembly), such as those activities by companies within the industries listed in Exhibit B, as well as government agencies where manufacturing or production occurs with the types of use cases described above (e.g., U.S. Armed Forces manufacturing sites). For the avoidance of doubt, “Factory SCP” will include                                        3 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED  supply chain, transportation and warehousing, utilities (e.g., water & wastewater treatment operations, power generation and gas distribution), industrial facilities, energy management and related activities, but will exclude “smart cities.”              “Financial Commitments” is defined in Section 8.              “Governance Team” is defined in Section 2.              “Marks” means, collectively, the PTC Marks and the RA Marks.              “OEM  Agreement” means the terms and conditions attached as Exhibit C.              “Product(s)” means, collectively, the PTC Products and the RA Products.              “PTC Marks” means the PTC trademarks on which the Governance Team agree from time to time.              “PTC  Product(s)” means the software (including Distributable Software and Development Tools) set forth on Exhibit A under the heading “PTC Products” and Updates thereto, in each case in object code form only.              “PTC Restricted Companies” means the companies listed on Exhibit B under the heading “PTC Restricted Companies.”              “RA Marks” means the RA trademarks on which the Governance Team agree from time to time.              “RA Restricted Companies” means the companies listed on Exhibit B under the heading “RA Restricted Companies”.              “RA  Product(s)” means the software (including Distributable Software and Development Tools) set forth on Exhibit A under the heading “RA Products,” and Updates thereto, in each case in object code form only.              “Receiving Party” is defined in the definition of Confidential Information.              “Reseller Agreement” means the terms and conditions attached as Exhibit D.              “Sales Enablement” means the use of a Product for purposes that do not directly produce licensing revenue for the applicable Party, including, but not limited to, demonstrations, non-production customer evaluation (which shall not exceed three (3) months in the aggregate), benchmarking, development, testing, copies and back up, maintenance (including the provision of updates and releases), customer support and training.                                        4 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED              “Updates” means all new releases, Error corrections and hot fixes made generally available by a Party or its Affiliates to its customers and users pursuant to its standard support and maintenance services, and provided to the other Party for use under this Agreement, excluding any new product or feature that is separately priced and licensed.        Governance. Within ten (10) business days after the Original Effective Date, the Parties will establish an executive steering committee for their collaboration under this Agreement (the “Governance Team”).              Composition. The Governance Team will be made up of at least one executive from each Party, at least one business liaison from each Party and at least one technical representative from each Party (provided that the total number of representatives from each Party will be the same), and will work together to formalize such collaboration through appropriate procedures and communications and to manage the implementation and execution of such collaboration. The Governance Team will operate by consensus, and the members will attempt to reach agreement on all matters related to the Integration. As of the Original Effective Date, the Parties’ Governance Team members are identified on Exhibit B.              Replacement. Replacement of a Party’s Governance Team member will be subject to unanimous agreement of the Governance Team, which will not be unreasonably withheld; provided, however, that either Party may unilaterally replace either of its Governance Team members with an individual who is also assuming or has assumed the replaced member’s executive position within PTC or RA, as the case may be.              Meetings. The Governance Team will meet at least once each calendar quarter and after each meeting will publish a report for interested constituents within each Party. On at least an annual basis, such meeting will include a mutual review of Combined Offering sales and usage, and an assessment of then-current and anticipated market opportunities for the same.              Disputes. The Governance Team will serve as the Parties’ primary forum for attempting to resolve disputes concerning this Agreement that cannot be resolved in the routine course of the Parties’ cooperation.              Internal Communications. Each Party will be responsible for its internal communications as needed to stay apprised of the Governance Team’s decisions and actions.        Interoperability.              Cooperation.                    Each Party will work cooperatively with the other Party to achieve       interoperability of the PTC Products with the RA Products (such products, collectively,                                         5 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED        “OEM Products”) including making modifications to its own OEM Products as necessary       to make such OEM Products interoperable with the other Party’s OEM Products.                    To that same end, each Party and its Affiliates will provide to the other Party       beta and pre-release versions of the Updates and new versions of the its Products prior to       or at least no later than its makes such beta and pre-release versions available to any of its       other customers. Each Party will provide the other Party and its Affiliates with all Updates       and new releases of its Products, no later than the first commercial release of such new       release or functionality to ensure coordinated and correlated interoperability between the       Products in any Combined Offering. Neither Party or its Affiliates will be obligated to       adopt a new version or Update of the other Party’s Product on any particular time-frame,       but where the new version or Update includes critical security fixes, each Party will notify       the other Party of the same and the Parties will coordinate in good faith to determine how       to drive adoption of the same as soon as is reasonably practical.              Future Product Integrations. The Parties will collaborate on, and share information with respect to, future product integrations and/or roadmaps regarding information solutions for the products and services described in this Agreement. Notwithstanding the foregoing, upon receipt of a Competition Notice (as defined in Section 5.6(b)(ii)), neither Party or its Affiliates will be required to provide information with respect to future product integrations and/or roadmaps regarding such information solutions.              Cross-Training. Each Party will train its appropriate employees on the other Party’s Products and related solutions offerings.        Branding; Strategic Relationship Support.              Combined Offering Brand; Branding. The Combined Offering Brand will be mutually agreed upon by the Parties. The Parties will jointly own the Combined Offering Brand, and any costs or expenses for trademark, domain and other protection, defense or enforcement activities associated with the Combined Offering Brand will be shared equally by the Parties. The Combined Offering will be co-branded with the PTC Marks, RA Marks and Combined Offering Brand, as mutually agreed upon in writing by the Parties. The Parties and their applicable Affiliates will advertise, market and promote the Combined Offering under the agreed-upon PTC Marks, RA Marks and the Combined Offering Brand. Each Party will bear its own costs for marketing the Combined Offering. Licenses for the PTC Product known as Kepware may only be sold by RA and its Affiliates under the “ThingWorx Industrial Connectivity” branding (and not the “Kepware” branding).              Designations.                    PTC will identify RA and certain of its mutually agreed upon Affiliates as       PTC’s premier IoT, analytics and industrial automation partner and as a preferred system                                        6 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED        integrator for the Factory SCO use cases and will feature RA and its applicable Affiliates       as such on PTC’s and its applicable Affiliates’ respective websites and appropriate       marketing collateral, all as mutually agreed upon in writing by the Parties. RA will have       the Systems Integrator rights set forth on Exhibit H.                    RA will identify PTC and certain of its mutually agreed upon Affiliates as       RA and certain of its mutually agreed upon Affiliates’ premier IoT and AR technology       partner for the Factory SCO use cases and will feature PTC as such on RA’s and its       applicable Affiliates’ respective websites and appropriate marketing collateral, all as       mutually agreed upon in writing by the Parties.              Self Determination. Except as expressly set forth in this Agreement, each Party and its Affiliates may set and determine the manner in which it will promote, market, and advertise the Combined Offering and the prices that it charges therefor.              Joint Marketing and Support.                    Sales and Marketing Plan. The Parties will collaborate and, within sixty       (60) days after the Original Effective Date, will produce a sales and marketing plan that       details the planned joint marketing activities of the Parties. The sales and marketing plan       must be mutually agreed upon and signed by both Parties.                    Additional PTC Technologies. If RA or its Affiliates identifies a bona fide       customer need for additional PTC technologies (such as CAD or PLM), the Parties will       collaborate on a case-by-case basis to develop appropriate distribution or referral       arrangements, including incentives for RA and its Affiliates; for example, when       appropriate and mutually agreed, a credit toward New ACV (as defined in Exhibit E).                    Personnel. Each Party will designate appropriate engineering, sales and       sales enablement, and marketing resources and/or spending to support the joint go-to-       market initiatives, all as mutually agreed in the sales and marketing plan referred to in       clause (a) above.                    Duties. Each Party and its applicable Affiliates will:                          employ a competent sales organization with respect to the             Combined Offering and the other Party’s Products and will develop and maintain             sufficient knowledge of the industry, the other Party’s Products, related support and             maintenance services and competitive offerings to be able to demonstrate the             Combined Offering and the other Party’s Products, use its reasonable efforts to             maintain an appropriate level of customer satisfaction with respect to Combined             Offerings and perform its activities hereunder in a professional and workmanlike             manner;                                        7 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED                          notify the other Party immediately after becoming aware of any             defect in any of the other Party’s Products or of any Customer problem, claim or             threatened claim with respect to any of the other Party’s Products, and will             promptly forward to the other Party all complaints with respect to any of the other             Party’s Products; and                          be solely responsible for, and will use its commercially reasonable             efforts in, the marketing and commercialization of the Combined Offering.              Publicity.                    General. The Parties will publicize their relationship throughout the Term       in accordance with this Section. Neither Party nor its Affiliates may issue any press       releases and, without limiting the rights under this Section, other public announcements       (collectively “Publicity”) without the prior written approval of the other Party, except as       provided in this Agreement, provided that each Party and its Affiliates will have the right       to cite such press release(s), publicly use and disclose excerpts from such press release(s)       and otherwise publicly use and disclose information contained in such press release(s) in       its sole discretion. The Parties agree to cooperate to develop a customer “win” story       highlighting the product and data optimization anticipated from the transactions       contemplated by this Agreement.                    Initial Publicity. After the Original Effective Date, RA and PTC will issue       an initial mutually acceptable press release announcing the availability of the Combined       Offering and identifying the PTC Products as bundled components of the Combined       Offering (“Initial Press Release”). Each Party will provide supporting quotes from a C-       level executive for the Initial Press Release if requested by the other Party.                    Pre-approved Description. The Parties will develop a description of their       relationship under this Agreement that may be used, in whole or in part, without       modification by either Party and its Affiliates in any pre-approved Publicity, without       further approval, provided, however, that pre-approval is not required to utilize the pre-       approved description in any sales or marketing collateral, such as the Web Site of a Party       or its Affiliates, customer datasheets, presentations and proposals.              General Conduct. Each Party and its Affiliates will conduct business under its own name and, except as expressly set forth in this Agreement, will not state or imply that any of its own products or services are endorsed or recommended by the other Party or its Affiliates. The Parties and their respective Affiliates will (a) conduct their respective business in a manner that reflects favorably at all times on each Party’s Products, Services, and the good name, goodwill, and reputation of such Party and its Affiliates; (b) make no representations or warranties to customers or to the trade with respect to the specifications, features, or capabilities of the other Party’s products or services other than those made by the Party who owns the products or services                                        8 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED  or as otherwise contemplated by or set forth in this Agreement; and (c) not publish or use any misleading or deceptive advertising material.              Security.                    Each Party agrees that it will follow secure development practices at least       in accordance with industry standard practices. From time to time, a Party may require the       other Party or its Affiliates to complete a security questionnaire and in connection with the       same, the Party responding to such request will make available to the requesting Party such       documents and access to such personnel as the requesting Party reasonably request for such       purposes.                    In the event a Party discovers vulnerabilities in its or the other Party’s code       and/or weaknesses in its or the other Party’s development practices, or if a Party otherwise       learns of the same in its own code or development practices, each Party agrees to promptly       take corrective actions to remedy the same as soon as reasonably practicable. Any       vulnerabilities with CVSS (Common Vulnerability Scoring System) ratings higher than       [***] will be promptly remediated and retested for verification at each Party’ sole cost and       expense, and in the case of vulnerabilities with CVSS ratings higher than [***], the efforts       to remediate and retest such vulnerabilities must be undertaken with the greatest urgency.                    From time to time, Customers may seek additional security requirements.       The Governance Team will discuss in good faith the adoption of any such additional       security requirements. In the event that the Governance Team agrees to adopt such       requirements, the Governance Team will establish the time frame for implementing such       requirements. Each Party will bear its own costs with regard to any security enhancements       to its Products that may be agreed to by the Governance Team.              Trademark License.                    License. Each Party (the “Trademark Licensor”) grants the other Party       and its Affiliates (the “Trademark Licensee”) a non-exclusive license to use Trademark       Licensor’s Marks in the exercise of Trademark Licensee’s rights and the performance of       Trademark Licensee’s obligations under this Agreement; provided, that Trademark       Licensee (i) does not create a unitary composite mark involving any Mark of Trademark       Licensor without the prior written approval of Trademark Licensor and (ii) displays       symbols and notices clearly and sufficiently indicating the trademark status and ownership       of Trademark Licensor’s Marks in accordance with applicable trademark law and practice       and Trademark Licensor’s then current trademark guidelines. The Parties may add, modify       or remove their respective Marks under this Agreement at any time upon notice to the other       Party.                                         9 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED                    Trademark Guidelines. Trademark Licensor will promptly provide       Trademark Licensee with copies of applicable trademark use guidelines. Trademark       Licensee will not remove or alter any trademark, trade name, copyright or other proprietary       notices, legends, symbols or labels appearing on or in any copies of the Trademark       Licensor’s Products and associated documentation and materials.                    Reseller Agreement. In the exercise of its resale rights under the Reseller       Agreement, Trademark Licensee may use and display Trademark Licensor’s Marks to       identify and market the Trademark Licensor’s Products only on (i) business cards and       stationery of Trademark Licensee indicating that it is an authorized independent reseller       for Trademark Licensor; (ii) marketing materials prepared by Trademark Licensor and       delivered to Trademark Licensee relating to the Trademark Licensor Products; and       (iii) marketing materials prepared by Trademark Licensee and approved by Trademark       Licensor in writing.                    Covenants. Trademark Licensee will not register any of Trademark       Licensor’s Marks or register or use any mark or name closely resembling Trademark       Licensor’s Marks. Trademark Licensee will not register any internet domain names that       are, or that incorporate, any of Trademark Licensor’s Marks, and Trademark Licensee will       relinquish to Trademark Licensor any such internet domain names it acquires or owns upon       request of the Trademark Licensor.                    Goodwill. All use of a Party’s Marks, and the goodwill from the Marks and       the use of the Marks, will inure solely to the benefit of, and be on behalf of, the Mark’s       owner. Trademark Licensee agrees that its use of Trademark Licensor’s Marks will not       create in it, nor will it represent it has, any right, title, or interest in or to Trademark       Licensor’s Marks other than the limited license expressly granted in this Section 4.7.                    Reservation of Rights. Trademark Licensee will not use any of Trademark       Licensor’s Marks in any way other than as specifically authorized in this Section 4.7, and       without limitation may not incorporate any of Trademark Licensor’s Marks to identify       Trademark Licensee’s business or products or services. No other use of Trademark       Licensor’s Marks, or any part thereof, or any mark or name confusingly similar thereto, is       authorized without the prior written consent of Trademark Licensor.        Use Cases; Exclusivity; Restrictive Covenants.              Exclusivity.                    Exclusivity. The licenses and resale rights of RA and its Affiliates under       the OEM Agreement and Reseller Agreement are exclusive (vis a vis PTC direct sales) for       Factory SCO use cases in the Territory, but limited to the territories, industries and       accounts described under the heading “Exclusive Territory” on Exhibit B (the “Exclusive                                       10 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED        Territory”), provided that this Section 5.1 will not apply to stand-alone sales of the PTC       Products known as Kepware/ThingWorx Industrial Connectivity and Vuforia. For clarity,       this Section 5.1 will not restrict PTC from appointing third parties to resell or otherwise       distribute Licenses for the PTC Products for the Factory SCO Market in the Territory.                    Process. Within sixty (60) days of the Original Effective Date, the Parties       will establish a written governance process whereby, by mutual agreement, additional       accounts or territories may be added to the Exclusive Territory based on the Parties or their       respective Affiliates’ relative strength of capability and/or opportunity within a given       territory or account. Such governance process will also provide for accounts or territories       to be removed from the Exclusive Territory if either RA or an Affiliate of RA is not       providing sufficient account coverage or if requested by the applicable account.              Use Cases.                    RA. In addition to its exclusive rights for the Factory SCO Market in the       Territory described in Section 5.1, the licenses and resale rights of RA and its Affiliates       under the OEM Agreement and Reseller Agreement extend on a non-exclusive basis to       (i) Factory SCO use cases for accounts outside of the Exclusive Territory and (ii) Factory       SCP use cases. For the Factory SCP use cases, the licenses and resale rights of RA and its       Affiliates under the OEM Agreement and Reseller Agreement are limited to the       distribution of PTC Products on hardware distributed by RA or its Affiliates and do not       extend to distributing PTC Product as standalone software or as software embedded in RA       software products. The licenses and resale rights of RA and its Affiliates under the OEM       Agreement and Reseller Agreement are limited by the restrictions set forth in agreements       to which PTC is party as of the Original Effective Date, all of which are listed on Exhibit B       under the heading “Restrictions on RA’s Distribution of PTC Products.”                    PTC. The licenses and resale rights of PTC and its Affiliates under the       OEM Agreement and Reseller Agreement are non-exclusive. The licenses and resale rights       of PTC and its Affiliates under the OEM Agreement and Reseller Agreement are limited       by the restrictions set forth in agreements to which RA or its Affiliates are a party as of the       Original Effective Date, all of which are listed on Exhibit B under the heading “Restrictions       on PTC’s Distribution of RA Products.”              Distribution Channels.                    Distribution Channels and Exceptions. The licenses and resale rights of       each Party and its Affiliates under the OEM Agreement and Reseller Agreement will       include the ability to sell licenses for the other Party’s Products through the standard       distribution channels of the Party or its Affiliate distributing a Combined Offering or       reselling the applicable licenses. Notwithstanding the foregoing to the contrary, (i) neither       RA nor any of its Affiliates may engage an RA Restricted Company to distribute a                                       11 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED        Combined Offering or resell licenses for PTC Products and (ii) neither PTC nor any of its       Affiliates may engage a PTC Restricted Company to distribute a Combined Offering or       resell licenses for RA Products.                    New ACV. In RA’s case, (i) revenue resulting from distribution by RA or       an Affiliate of RA of a Combined Offering or resale by RA or an Affiliate of RA of licenses       for PTC Products will constitute New ACV (as defined in Exhibit E) provided that the       revenue qualifies as New ACV.              Subscription Licenses. The Parties’ mutual intent is that licenses for Products sold in exercise of the licenses and resale rights of each Party and its Affiliates under the OEM Agreement and Reseller Agreement will be subscription licenses (i.e., a license agreement that includes both a software license and related support over a stated term). Perpetual licenses may be sold only on an exception basis with the approval of the other Party. In the case of sales of perpetual licenses of PTC Products by RA or its Affiliates, such sales will result in New Perpetual Equalization Credit (as defined on Exhibit E) toward the ACV commitments described in Exhibit E.              Reservation. Except as expressly set forth in this Agreement, each Party reserves all rights in its Products. Neither RA nor its Affiliates will promote, market, advertise, sell or distribute the PTC Products or licenses for the PTC Products except in the fields, territories and use cases expressly permitted by Section 5.1 and Section 5.2.              Restrictive Covenants.                    PTC Covenants.                          Neither PTC nor any of its Affiliates will (A) [***] (B) [***] or             (C) [***] will not violate this restriction [***]. For clarity, this Section 5.6(a) will             not prevent [***].                          Excluding PTC Permitted Products, in the event that PTC or any of             its Affiliates (A) commences designing, developing marketing, selling or             distributing, or engages a third party to design, develop, market, sell or distribute a             product that would reasonably be expected to compete with the RA Products, or             (B) acquires a product that would reasonably be expected to directly compete with             the RA Products based on product scope and functionality, PTC will promptly             provide written and reasonably detailed notice of such (a “PTC Competition             Notice”) to RA.                    RA Covenants.                                        12 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED                          Neither RA nor any of its Affiliates will (A) [***] (B) [***] or             (C) [***] will not violate this restriction [***]. For clarity, this Section 5.6(b) will             not prevent [***].                          Excluding RA Permitted Products, in the event that RA or any of its             Affiliates (A) commences designing, developing marketing, selling or distributing,             or engages a third party to design, develop, market, sell or distribute a product that             would reasonably be expected to compete with the PTC Products, or (B) acquires             a product that would reasonably be expected to directly compete with the PTC             Products based on product scope and functionality, RA will promptly provide             written and reasonably detailed notice of such (a “RA Competition Notice” and,             together with the PTC Competition Notice, each a “Competition Notice”) to PTC.                    No Governmental Entities. Neither Party nor its Affiliates or Sales Agents       will solicit any orders for any Licenses of the other Party’s Products or Services from any       governmental or quasi-governmental entities (including without limitation any state or       federal departments, agencies, administrations, bureaus, branches, or any subdivisions of       any of the foregoing but excluding companies owned by government entities or quasi-       governmental entities outside of the United States (e.g., state-owned enterprises), without       prior written consent of the other Party, which will not be unreasonably withheld.              Opportunity Registration Process. With respect to sales outside the Exclusive Territory, the Parties agree to the deal registration process set forth on Exhibit B under the heading “Opportunity Registration Process.”        OEM  Relationship. The Parties agree to the mutual OEM terms and conditions set forth on Exhibit C, with pricing set forth on Exhibit F.        Reseller Relationship. The Parties agree to the mutual software resale terms and conditions set forth on Exhibit D, with pricing set forth on Exhibit F.        Internal Use. RA and each of its Affiliates may purchase licenses for PTC Products for its internal use, with pricing set forth on Exhibit F.        Financial Commitment. The Parties agree to the financial commitments set forth on Exhibit E (the “Financial Commitments”).        Orders.              Orders for Internal Use. Orders by RA or its Affiliates for internal use will be placed in accordance with the existing agreement(s) between the Parties related to such orders.              Orders for Resale/OEM Distribution. The Party or its Affiliate ordering licenses for resale or OEM distribution of the other Party’s Products (alone or as part of a Combined                                       13 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED  Offering) (the “Ordering Party”) will deliver each Order to the other Party (the “Selling Party”) within five (5) business days of Ordering Party’s receipt of the applicable purchase order from its distribution channel or the potential Customer. For each Order, Ordering Party will deliver (at a minimum) to Selling Party a binding, unconditional, non-cancellable purchase order duly executed by Ordering Party, which Ordering Party agrees will constitute Ordering Party’s binding commitment to pay for the Products so ordered. Ordering Party agrees that, (a) electronic order submissions by Ordering Party will be as binding on Ordering Party as if Ordering Party submitted a signed purchase order, (b) Selling Party will be entitled to rely on such electronic order submissions as being valid, legitimate and fully authorized by Ordering Party, and (c) Selling Party may from time to time require Ordering Party to include various language on Ordering Party’s or its Ordering Entity’s quotation to each applicable Customer (in which case, Ordering Party will be obliged to keep copies of such quotations for a minimum of three years and to provide copies to Selling Party upon request). Selling Party may reject an Order that does not comply, in all material respects, with the terms and conditions of this Agreement, including the Reseller Terms.              No Inventory. Ordering Party will not submit any Orders unless and until Ordering Party or an Ordering Entity has received a binding, non-cancelable order for the applicable Products of Selling Party or Selling Party Services from an identified Customer. Ordering Party acknowledges and agrees that “inventory” Orders or Orders submitted based on the expectation of a future Customer order are strictly prohibited (except as set forth in Exhibit E). Ordering Party will obtain a purchase order from each potential Customer for each Order, will retain such purchase orders for a minimum of three years from receipt, and will provide copies thereof to Selling Party upon request.              Licensing Affiliates. Each Party acknowledges that, when selling Licenses for Products to a Customer located outside of the United States, the other Party enters into contracts for such Licenses through Affiliates based on the location of the Customer. Accordingly, when a Party desires to place an order with the other Party with respect to a Customer located outside of the United States, the Party will direct such order to the corresponding Affiliate of the other Party. The Governance Team will coordinate the relevant sharing of information relative to each Party’s Affiliates.              Selling Party’s Product Shipment; Installation. After Selling Party’s acceptance of an Order, Selling Party will ship the Selling Party’s Products ordered by Ordering Party to the Customer location specified in the Order documentation and/or make the Selling Party’s Products available for electronic download by such Customer. Selling Party will send to Ordering Party an invoice for such Selling Party’s Products or Selling Party Services. Shipment will be FCA (Incoterms 2000) the shipping point designated by Selling Party and risk of loss will pass to Ordering Party at the time the Selling Party’s Products are delivered to the carrier at such shipping point; provided, however, that Selling Party will, if possible, make electronic download of the Selling Party’s Products available to the Customer in order to minimize the risk of loss. Ordering Party will be responsible for payment of all insurance, duty and customs, sales, value added and excise taxes and any other taxes or charges associated with the shipment or import of the Selling                                       14 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED  Party’s Products (except for taxes on Selling Party’s net income). Ordering Party, Ordering Entity and/or the applicable Customer will be solely responsible for installation of the Selling Party’s Products.              Subscriptions. The Parties acknowledge that Subscription licenses have auto- renewing terms. The initial term for Subscription licenses is typically one (1) year, but in any event, will not be longer than three (3) years. The term of the Subscription will automatically renew for renewal terms of one (1) year unless Selling Party, Ordering Party, Ordering Entity or Customer notifies the other Party of non-renewal sixty days prior to the renewal date. If Selling Party serves notice of non-renewal of any Subscription on Ordering Party, Ordering Party will ensure such notice is served on Customer prior to the notice date.              SaaS Services and Cloud Services. Neither Party nor any of its Affiliates is entitled to sell or resell licenses or access rights for the other Party’s SaaS or Cloud Services offerings unless and until the Parties reach agreement on pricing therefor.        Payment.              Fees. Each Party will pay to the other Party the fees set forth in Exhibit F in accordance with the terms such exhibit.              Taxes. Fees reflected in this Agreement do not include taxes. Neither Party is liable for any taxes the other Party or its Affiliates are legally obligated to pay (or for any penalties or interest thereon) and which relate to any transactions contemplated under this Agreement. Each Party will pay any sales, use or value added taxes (and any penalties or interest thereon) it and its Affiliates owe due to entering into this Agreement or otherwise arising from the transactions contemplated by this Agreement, and which the law requires be collected from or paid by such Party or Affiliate. The Parties will not collect taxes covered by a valid exemption certificate provided by the other or its Affiliates. If the law requires that taxes be withheld from any payments from one Party to the other, such amounts will be withheld and paid to the appropriate taxing authority. The Party that withholds such taxes will deliver to the other an official receipt for all taxes withheld. The Parties and their Affiliates will use reasonable efforts to minimize any taxes withheld to the extent allowed by law. Despite any other provision in this Agreement, this section governs the treatment of all taxes relating to this Agreement.        Additional Terms Applicable to [***]. The additional terms and conditions set forth on Exhibit G apply to the exercise of rights by RA and its Affiliates in the PTC Product(s) known as [***].                                        15 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED        Audit. Each Party and its Affiliates will maintain accurate books and records relating to (a) the distribution of the Combined Offering by it, its Affiliates and its and their permitted resellers under the OEM Agreement, (b) the resale of Resale Products by it, its Affiliates and its and their permitted resellers under the Reseller Agreement and (c) the performance by it and each of its Affiliates of its and their other obligations under this Agreement (the “Records”). Each Party will permit, and will cause its Affiliates to permit, review and auditing of (a) its and its Affiliates’ Records and (b) its and its Affiliates’ use of the other Party’s Products, during normal business hours to confirm compliance with terms of this Agreement, provided, if applicable, any third party firm performing the audit enters into a confidentiality agreement for the benefit of the Party or Affiliate(s) whose Records and Product use are being audited. Audits will not unreasonably interfere with the audited Party’s or Affiliate’s business activities, will be conducted at the auditing Party’s sole expense, and will not be made more frequently than [***] per calendar year. Fees and expenses incurred in connection with such audits will be borne by the auditing Party. The accounting firm will report to the Parties only whether the terms of this Agreement are being met, including whether payments have been properly reported and paid or, if not, the amount of any overpayment or underpayment. If an audit shows an underpayment by the Party who, or whose Affiliate, was audited of more than [***], the Party who, or whose Affiliate, was audited will bear the cost of such audit. Any and all results, analysis and reports resulting from such audit will be deemed the Confidential Information of the Party who, or whose Affiliate, was audited; provided that, in addition to the auditing Party’s rights with respect to such Confidential Information under Section 17, auditing Party may use such Confidential Information in connection with any dispute between the Parties regarding the results of the applicable audit.        Warranties.              General. Each Party represents and warrants to the other Party that (a) it is an entity organized and existing under the laws of its jurisdiction of organization with full power and authority to enter into and perform this Agreement; (b) this Agreement has been duly authorized by all necessary corporate action and constitutes the binding obligation of such Party enforceable in accordance with its terms, except as such enforceability may be limited by bankruptcy laws or other laws affecting the rights of creditors generally; (c) the person(s) executing this Agreement on its behalf has actual authority to bind it to this Agreement; and (d) its execution and performance of this Agreement does not and will not violate or conflict with any provision of its governing corporate instruments or of any commitment, agreement or understanding that it has or will have to or with any person or entity.              DISCLAIMER. EXCEPT AS EXPRESSLY STATED IN THIS AGREEMENT, EACH  PARTY   DISCLAIMS ALL WARRANTIES, WHETHER EXPRESS OR IMPLIED, WRITTEN   OR   ORAL, INCLUDING    ANY   WARRANTY     OF  MERCHANTABILITY, SATISFACTORY     QUALITY,   FITNESS  FOR   A  PARTICULAR    PURPOSE,   NON- INFRINGEMENT, AND/OR ANY WARRANTY THAT PRODUCT THE OTHER PARTY WILL ACHIEVE ANY PARTICULAR RETURN ON INVESTMENT. EACH PARTY AND ITS AFFILIATES ARE SOLELY RESPONSIBLE FOR ANY RESULTS OBTAINED FROM                                       16 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED  USING THE PRODUCTS, INCLUDING THE ADEQUACY OF INDEPENDENT TESTING OF RELIABILITY, AND SECURITY AND ACCURACY OF ANY ITEM          DESIGNED USING THE PRODUCTS. NEITHER PARTY WARRANTS THAT THE OPERATION OR OTHER USE OF THE PRODUCTS WILL BE UNINTERRUPTED OR ERROR FREE OR WILL NOT CAUSE DAMAGE OR DISRUPTION TO ANY CUSTOMER’S DATA, COMPUTERS, OR NETWORKS. WITHOUT LIMITING THE FOREGOING, NEITHER PARTY WILL HAVE ANY LIABILITY ARISING FROM    ANY SECURITY INCIDENT OR DATA LOSS THAT WOULD HAVE BEEN PREVENTED IF THE OTHER PARTY OR ITS AFFILIATE HAD IMPLEMENTED     A  SECURITY   SOLUTION, DEVICE    OR  FEATURE    (INCLUDING “PATCHES,” FIXES AND UPDATES) PROVIDED BY A PARTY FOR THE PRODUCTS PROVIDED OR MADE AVAILABLE TO THE OTHER PARTY OR ITS AFFILIATES.        Indemnification.              Intellectual Property Infringement Claims.                    Indemnification Obligation. Each Party (the “Indemnifying Party”) will,       at its expense, defend, indemnify and hold harmless the other Party (“Indemnified       Party”), its Affiliates and its and their officers, directors, employees, shareholders, agents,       and successors (Indemnified Party and each of the foregoing, collectively, an       “Indemnified Related Party”) from and against any and all damages, costs, and expenses       (including reasonable attorneys’ fees, all amounts that a court or arbitrator finally awards       or that Indemnifying Party agrees to in settlement of any Claim (as defined below) and any       and all reasonable expenses or charges as they are incurred by Indemnified Related Party       in cooperating in the defense), incurred in connection with any third party claim, action,       demand or complaint (a “Claim”) brought against the Indemnified Related Party by a third       party which results or arises from an infringement or alleged infringement of intellectual       property rights related to the Indemnifying Party’s Product. Indemnified Party will notify       Indemnifying Party promptly of any such Claim action, demand or complaint and will give       Indemnifying Party sole and exclusive authority (including settlement authority), and       reasonable information and assistance for the defense.                    Additional Rights and Obligations. If Indemnifying Party’s Product that is       the subject of an indemnification claim under this Section 15.1(a) (or any part of it), is held       to infringe any third party intellectual property rights and the use of such Product, as       contemplated by this Agreement, is enjoined or is threatened to be enjoined, Indemnifying       Party at its own election and expense may either: (i) procure for Indemnified Party (or, if       applicable, the Indemnified Related Party) the right to continue use of such Product as       authorized under this Agreement; or (ii) replace or modify the applicable Product with a       version of the Product that is non-infringing and that conforms to the applicable       Documentation. If, despite Indemnifying Party’s commercially reasonable efforts, neither       of the alternatives in this Section 15.1(b) is available on terms which are commercially       feasible within one hundred eighty (180) days of notice of a Claim, (A) Indemnifying Party                                       17 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED        will immediately notify Indemnified Party of its intent to terminate the applicable Product       licenses or resale rights under this Agreement (the “Affected Products”), (B) Indemnified       Party will return, cause all of its Customers to return, and cease selling or reselling any       Affected Products, alone or as part of a Combined Offering and (C) Indemnifying Party       will grant Indemnified Party a credit equal to the prepaid license or subscription fees for       the remainder of the applicable Product license term. To the extent either Party is unable       to meet any ACV or minimum fees under this Agreement as a result of a Claim, the ACV       or minimum fees required under this Agreement will be adjusted or waived as necessary       to reflect the non-performance of the Indemnifying Party.                    Combined Offering. Notwithstanding anything to the contrary in this       Agreement, each Party will be responsible for all damages, costs, and expenses, including       reasonable attorneys’ fees, incurred in connection with any Claim, action, demand or       complaint brought against such Party by a third party to the extent resulting or arising from       an infringement or alleged infringement of intellectual property rights as a result of only       the interoperation of each Party’s Products with the other Party’s Products as part of a       Combined Offering.                    Exceptions. The indemnification obligation in Section 15.1 will not apply       to Claims to the extent that such Claims are based on or result from: (i) modifications       made to the Selling Party’s Products by Reselling Party outside the scope of the results of       the collaboration described in this Agreement without Selling Party’s direction or       instruction, provided the infringement would have been avoided, but for such modification;       or (ii) the combination of the Indemnifying Party’s Products with items not supplied or       provided by Indemnifying Party and not contemplated by the results of the collaboration       described in this Agreement, provided the infringement would have been avoided, but for       combination and provided that there are substantial non-infringing uses for the Software       apart from such combination.              Breach of Agreement. The Indemnifying Party will, at its expense, defend, indemnify and hold harmless the Indemnified Party and each other Indemnified Related Party from and against any and all damages, costs, and expenses (including reasonable attorneys’ fees, all amounts that a court or arbitrator finally awards or that Indemnifying Party agrees to in settlement of any Claim (as defined below) and any and all reasonable expenses or charges as they are incurred by Indemnified Related Party in cooperating in the defense), incurred in connection with any Claim brought against an Indemnified Related Party by a third party which results or arises from (i) any representation or warranty made by Reselling Party or a Reseller that exceeds the representations and warranties made by Selling Party in its standard license, or (ii) any breach by it of any of the representations or warranties in Section 14.              Process. The Indemnified Party will (a) give the Indemnifying Party prompt written notice of the applicable Claim and (b) allow the indemnifying Party to exclusively control the defense thereof and all related negotiations. The indemnified Party will reasonably cooperate                                       18 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED  with the Indemnifying Party in the defense of the Claim and all related negotiations. The Indemnifying Party will not enter into any stipulated judgment or settlement that purports to bind the Indemnified Party (or any other indemnified person or entity) without the indemnified Party’s express written authorization, which will not be unreasonably withheld or delayed.              Sole and Exclusive Remedy. The indemnity obligations and terms in Section 15 represent the sole and exclusive remedy of Indemnified Party and the entire liability and obligation of indemnifying Party with respect to infringement or claims of infringement of any intellectual property right by, as applicable, any PTC Product or Selling Party’s Product or by its distribution, operation, use or receipt.        Limitation of Liability.              TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT WILL EITHER PARTY OR ITS AFFILIATES BE LIABLE FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, PUNITIVE, SPECIAL OR EXEMPLARY DAMAGES ARISING OUT OF OR THAT RELATE IN ANY WAY TO THIS AGREEMENT OR ITS PERFORMANCE. THIS EXCLUSION WILL APPLY REGARDLESS OF THE LEGAL THEORY UPON WHICH ANY CLAIM FOR SUCH DAMAGES IS BASED, WHETHER THE PARTIES OR ANY AFFILIATE HAD BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER SUCH DAMAGES WERE REASONABLY FORESEEABLE, OR WHETHER APPLICATION OF THE EXCLUSION CAUSES ANY REMEDY TO FAIL OF ITS ESSENTIAL PURPOSE. IN NO   EVENT   WILL   EITHER  PARTY’S MAXIMUM, CUMULATIVE LIABILITY FOR ALL DAMAGES UNDER       THIS AGREEMENT EXCEED      THE GREATER    OF (A) THE AMOUNT EQUAL TO THE TOTAL AMOUNT OF FEES PAID OR PAYABLE BY RA TO PTC  AND  BY  PTC  TO  RA  HEREUNDER    IN  THE  [***] PERIOD IMMEDIATELY PRECEDING    THE  EVENT   GIVING  RISE  TO  DAMAGES     AND  (B) [***]. THE EXCLUSIONS, DISCLAIMERS AND LIMITATIONS IN THIS SECTION 16.1 WILL NOT APPLY TO (A) EITHER PARTY’S LIABILITY TO THE EXTENT ARISING OUT OF A BREACH   BY  A PARTY   OR ANY   OF ITS AFFILIATES OF ITS CONFIDENTIALITY OBLIGATIONS IN SECTION 17.1, (B) A PARTY’S INDEMNIFICATION OBLIGATIONS UNDER SECTION 15.1(a) OR (C) USE OR DISTRIBUTION BY A PARTY OR ANY OF ITS AFFILIATES OF THE OTHER PARTY’S PRODUCTS OR SERVICES OTHER THAN AS EXPRESSLY PERMITTED BY THIS AGREEMENT.              THE LIMITATIONS OF LIABILITY STATED IN THIS SECTION 16 ARE INDEPENDENT OF ANY REMEDIES AND, NOTWITHSTANDING THE FAILURE OF THE ESSENTIAL PURPOSE OF SUCH REMEDIES, WILL REMAIN         IN FULL FORCE AND EFFECT.        Confidential Information; Feedback.                                        19 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED              Confidentiality. Each Party acknowledges that while performing its obligations under the Agreement it and its Affiliates may have access to the other Party’s or its Affiliates’ Confidential Information. With respect to all Confidential Information, the Parties agree as follows:                    The Receiving Party may use the Confidential Information only to exercise       its rights and perform its obligations under the Agreement. The Receiving Party must use       the same care to protect the Disclosing Party’s Confidential Information as it uses to protect       its own Confidential Information. In no event will the Receiving Party fail to use       reasonable care to avoid unauthorized use, including disclosure, loss, or alteration of the       Disclosing Party’s Confidential Information. Copies the Receiving Party makes of       Confidential Information must contain the same confidential or proprietary notices or       legends as the original.                    Either Party may disclose the other Party’s Confidential Information to its       respective employees, Affiliates, agents, contractors and legal representatives only to the       extent they have a need to know and an obligation to protect the Confidential Information       that is at least as restrictive as the Agreement. The Receiving Party is responsible for       compliance with this Agreement by all persons or entities to which it grants access to       Confidential Information, and will advise them of their obligations under this Agreement       prior to disclosing the Confidential Information.                    Upon termination or expiration of this Agreement or upon cessation of work       or written request, the Receiving Party will return or destroy or cause to be destroyed, at       its option, all Confidential Information of the Disclosing Party, including Confidential       Information disclosed under Section 17.1(b) to an Affiliate, agent, contractor and legal       representative. The Receiving Party may retain only such copies as are reasonably required       to comply with applicable law and document retention requirements and any such copies       must be maintained consistent with the terms of this Agreement. Any destruction will be       by shredding or secure erasure using current, commercially-reasonable methods. Upon       request of the Disclosing Party, the Receiving Party will furnish an officer’s certificate       certifying that the Disclosing Party’s Confidential Information has been returned or       destroyed.              Terms of Agreement.                    Neither Party nor any of its Affiliates will disclose any of the terms of this       Agreement to any third party without the prior written consent of the other Party.       Notwithstanding the foregoing, either Party and its Affiliates may disclose such terms to       (i) its accountants, advisors and other professional representatives who have a “need-to-       know” solely for the purpose of providing services to such Party or Affiliate and       (ii) existing and potential investors, lenders and acquirers and the accountants, advisors and       other professional representatives of any of the foregoing; provided, however, that in the                                       20 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED        case of this clause (ii) any such recipient is bound by a written agreement (or in the case of       attorneys or other professional advisors, formal ethical duties) requiring such recipients not       to disclose the terms of this Agreement to any third party and to use such terms only for       purposes of evaluating the applicable investment, loan or acquisition.                    In addition, the terms of this Agreement may be disclosed as otherwise       required pursuant to applicable law, regulation, stock market or stock exchange rule or rule       of a self-regulatory organization (e.g., rules or regulations of the United States Securities       and Exchange Commission, the Nasdaq or the NYSE) or legal process (including, without       limitation, by interrogatory, subpoena, request for documents, civil investigative demand,       formal request from a regulatory examiner or other similar process); provided that a Party       or Affiliate proposing to make such a disclosure as required by law, rule, regulation or legal       process will, to the extent legally permissible and practical, (i) inform the other Party a       reasonable time prior to such required disclosure, (ii) provide the other Party with a copy       of the text of such proposed disclosure sufficiently in advance of the proposed disclosure       to afford such other Party a reasonable opportunity to review and comment upon the       proposed disclosure (including, if applicable, the redacted version of this Agreement) and       (iii) if requested, reasonably cooperate in an effort by the other Party to seek confidential       treatment or a protective order for such disclosure. In the event that confidential treatment       or another remedy is not obtained, the Party proposing to make such disclosure may       disclose only such information which such Party is required to be disclosed and to only       those persons to whom such Party is required to receive such information.              Exception for Legal Process. The Receiving Party may disclose Confidential Information to the extent required by applicable law, regulation, stock market or stock exchange rule or rule of a self-regulatory organization (e.g., rules or regulations of the United States Securities and Exchange Commission, the Nasdaq or the NYSE) or legal process (including, without limitation, by interrogatory, subpoena, request for documents, civil investigative demand, formal request from a regulatory examiner or other similar process), but, to the extent legally permissible and practical, the Receiving Party must give the Disclosing Party prompt notice of the required disclosure (prior to the required disclosure, if possible) and, if requested, reasonably cooperate with the Disclosing Party in obtaining a protective order.              Injunctive Relief. Each Party agrees that the wrongful disclosure of Confidential Information may cause irreparable injury that is inadequately compensable in monetary damages. Accordingly, either Party may seek injunctive relief in any court of competent jurisdiction for the breach or threatened breach of this Section in addition to any other remedies in law or equity, and the other Party will not raise the defense of an adequate remedy at law.              Feedback. Neither Party nor its Affiliates will have an obligation to provide the other Party or its Affiliates with suggestions, comments or other feedback relating to any product, technology or service of the other Party or its Affiliates (collectively, “Feedback”). In the event either Party or any of its Affiliates (collectively, the “Feedback Provider”) provides Feedback to                                       21 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED  the other Party (collectively, the “Feedback Receiver”) regarding any Product of the Feedback Receiver, each of the Parties, as a Feedback Provider and on behalf of its Affiliates as Feedback Providers, hereby grants to the Feedback Receiver a worldwide, paid-up, royalty free, transferable, sublicenseable (directly and indirectly through multiple tiers), perpetual, irrevocable license to use, incorporate or otherwise commercialize such Feedback, including in the Feedback Receiver’s products and services for any purpose and without obligation of any kind. Notwithstanding the foregoing, the foregoing license rights shall not grant or provide a license (either express or implied) to any patent owned or controlled by a Feedback Provider. Except for the foregoing license right, Feedback Provider owns all rights, title, and interest in and to the Feedback it develops or provides to the Feedback Receiver. Feedback Receiver acknowledges and agrees that the Feedback is provided by Feedback Provider as-is, without warranties of any kind, and any Feedback used by Feedback Receiver will be used at Feedback Receiver’s sole risk and liability.              Usage Data. Subject to applicable law, each Party acknowledges that the other Party and its Affiliates may collect and utilize usage data, in aggregated or other de-identified form, derived from use and performance of their respective Products and their related products and services under this Agreement for purposes of internal evaluation of trends, system usage, and other similar internal purposes and for purposes of improving its products and services. This provision does not and will not constitute a license of any intellectual property rights from either Party or its Affiliates to the other Party or its Affiliates.              Data Privacy. With respect to Personal Data (as defined below) that one Party or its Affiliates may provide to the other Party or its Affiliates in connection with this Agreement, the Parties agree that it and each of its Affiliates will comply with applicable privacy laws, including, but not limited to ensuring that the Party or its Affiliate transferring Personal Data has legal grounds to share such data relating to the purpose for which the Personal Data is exchanged. “Personal Data” shall have the meaning as defined in the EU Regulation (EU) 2016/679 (General Data Protection Regulation). Neither Party considers itself or its Affiliates to process Personal Data as a “processor” on behalf of the other, however the Parties further agree to execute any further documentation as may be required to ensure continued compliance with the applicable law in the event that the nature of the data processing relationship between or among the Parties and their respective Affiliates changes.        Term and Termination.              Term and Renewal.  Subject to earlier termination as provided below, this Agreement will be in effect from and after the Original Effective Date until September 30, 2021 (the “Term”). Thereafter, the Term may be renewed by mutual written agreement.              Termination.                    Termination for Breach of this Agreement. In addition to any other       termination rights provided for in this Agreement, either Party may terminate this                                       22 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED        Agreement immediately upon written notice to the other Party in the event of material       breach of this Agreement by the other Party or its Affiliates (“Cause”) if the defaulting       Party or Affiliate fails to cure such breach within sixty (60) days following notice of such       breach from the non-defaulting Party. Without limitation, the failure to make any payment       due under this Agreement will constitute a material breach of this Agreement (excluding       payments that are the subject of a good faith dispute).                    Special Termination Rights Applicable to [***]. Notwithstanding anything       else in this Agreement to the contrary, in the event of a breach by RA, any Affiliate of RA,       a Sales Agent of RA, or a Customer of RA of any term or condition in Exhibit G or required       by Exhibit G to be included in a Customer License Agreement or a Sales Agent Agreement       with respect to the [***] Software, PTC may immediately terminate this Agreement       without a cure period with notice to RA solely with respect to the PTC Product known as       [***]. In such event, RA will immediately cease selling, reselling and otherwise       distributing such PTC Product and terminate the Customer licenses for such PTC Product.       PTC hereby agrees that it will make a reasonable effort to obtain a modification of the       requirements described in this Section 18.2(b) from its licensor of certain code underlying       the PTC Product known as [***].                    Termination for Bankruptcy/Dissolution. Either Party may terminate this       Agreement immediately upon written notice in the event the other Party (i) becomes       insolvent, (ii) becomes the subject of proceedings under any law relating to bankruptcy or       the relief of debtors and, in the case of involuntary proceedings, the petition is not       dismissed, stayed, bonded or discharged within [***] of the commencement of the       proceedings or (iii) admits in writing its inability to pay its debts as they become due       (collectively, “Bankruptcy/Dissolution”).                    Termination for Change of Control. Either Party may terminate this       Agreement in the event of a Change of Control of RA or PTC upon written notice to the       other Party delivered prior to the consummation of the Change of Control, with such       termination effective upon the later of (i) [***] following delivery of such written notice       and (ii) [***].                    Termination for Prohibited Assignment. RA may terminate this Agreement       [***] upon written notice to PTC in the event of any attempted assignment of this       Agreement by PTC in violation of this Agreement. PTC may terminate this Agreement       [***] upon written notice to RA in the event of any attempted assignment of this       Agreement by RA in violation of this Agreement.                    Termination for Breach of Securities Purchase Agreement. PTC may       terminate this Agreement upon [***] prior written notice to RA in the event of a material       breach by RA of Section 4.1 (Prohibition on Transfers), Section 4.3 (No Transfers to       Company Competitors or Significant Shareholders) or Section 5.3 (Standstill) of the                                       23 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED        Securities Purchase Agreement if such breach is incapable of cure or RA otherwise fails to       cure such breach within [***] following notice of such breach from PTC.              Post-Termination Obligations.                    General. Upon expiration or termination of this Agreement, with or without       Cause, each Party will, and will cause its Affiliates to, immediately, (i) subject to       Section 18.3(b), discontinue advertising, marketing, distributing or transferring the       Combined Offering and cease all use of the Combined Offering Brand, and (ii) subject to       Section 18.3(c), cease all resale of the other Party’s Products and any materials identifying       or referring to the other Party’s Products. All Customer License Agreements properly       granted prior to the effective date of expiration or termination will survive expiration or       termination and continue according to their terms. Within fifteen days after any such       expiration or termination, each Party will, and will cause its Affiliates to, return to the other       Party or, at such other Party’s request, destroy all Confidential Information of such other       Party and its Affiliates, and at such other Party’s request, certify in writing such Party’s       compliance with this Section.                    Combined Offering Continuation. Upon expiration or termination of this       Agreement for any reason, each Party and its Affiliates may continue to distribute the       Combined Offering, subject to all terms and conditions of this Agreement (including       payment terms) for up to six (6) months after the termination/expiration date, after which       existing Customers of the Combined Offering may be renewed for up to an additional four       (4) years from the termination or expiration date. For avoidance of doubt, no subscription       (as renewed) may extend beyond the fourth (4th) anniversary of the effective date of the       expiration or termination of this Agreement. Notwithstanding the foregoing, if the       Agreement is terminated under Section 18.2(a), Section 18.2(c), Section 18.2(e) or Section       18.2(f), only the terminating Party may exercise the rights set forth in this Section 18.3(b).                    Standard Reseller Agreement. Upon expiration or termination of this       Agreement for any reason, each Party and its Affiliates may resell licenses for the other       Party’s Products for up to three (3) years after the effective date of the expiration or       termination of this Agreement, subject to the standard reseller terms of the Party that owns       the applicable Products. Notwithstanding the foregoing, if the Agreement is terminated       under Section 18.2(a), Section 18.2(c), Section 18.2(e) or Section 18.2(f), only the       terminating Party may exercise the rights set forth in this Section 18.3(c).                    Support Obligations. Each Party’s and its Affiliates’ support obligations       under the OEM Agreement with respect to its Products distributed in the Combined       Offering will survive for the applicable remaining term of each subscription license       (provided that the fees for such subscription licenses have been and continue to be paid).                                        24 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED                    Financial Commitments. RA’s obligations upon expiration or termination       of this Agreement with respect to the Financial Commitments are set forth on Exhibit E.              Termination Damages. Without prejudice to any other remedies either Party may have in respect of any breach of this Agreement, neither Party will be liable to the other for damages by reason of the expiration or termination of this Agreement in accordance with the provisions set forth above.              Acknowledgment and Waiver. The Parties acknowledge that the provisions of this Section are essential, fair, and reasonable, and that the occurrence of any of the events described herein will constitute good, just, and sufficient cause for the expiration or termination of this Agreement. The Parties further acknowledge that any amounts spent in the performance of this Agreement will be spent with the understanding that this Agreement may not be renewed. Accordingly, each Party hereby waives any claim against the other for loss or damage of any kind (including damages or other compensation for unjust enrichment, loss of prospective profits, reimbursement for expenditures or investments made, or commitments entered into or goodwill), due to failure of the Parties to renew this Agreement or, upon expiration or termination, to make a similar agreement.              Continuing Obligations. The following will survive the expiration or termination hereof: the provisions of this Section 18.6 and Sections 4.5(a), 11, 13, 14, 15, 16, 17, 18.3, 18.4, and 20.        Compliance With Laws.              Each Party and its Affiliates will comply with all applicable laws and regulations of the United States and the territory in which the applicable products and services under this Agreement are licensed for use (“Territory”), including, without limitation, the following:                    the U.S. Foreign Corrupt Practices Act of 1977 (15 U.S.C. §§ 78dd-1, et       seq.) as amended (“FCPA”) and other applicable anti-corruption laws, including the UK       Bribery Act and those in the Territory;                    Data Protection Laws applicable in the Territory; and                    the U.S. Export Administration Regulations (15 C.F.R. Parts 730 - 774),       and any other applicable export control laws, rules, regulations or orders.              With respect to its performance under this Agreement, each Party hereby represents, warrants and covenants to the other Party that (a) neither it nor its employees, directors, officers, agents, or Affiliates (collectively, “Relevant Persons”) has caused nor will cause the other Party or its Affiliates to be in violation of the FCPA, or any other applicable law or regulation regarding corruption or bribery; (b) it and its Relevant Persons will not with a corrupt intent,                                       25 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED  directly or indirectly, pay, promise or offer to pay, or authorize the payment of, any money or give any promise or offer to give, or authorize the giving of anything of value to any person for purposes of corruptly obtaining or retaining business for or with, or directing business to, any person; (c) no part of any payment, compensation, reimbursement or fee received by it pursuant to this Agreement or otherwise will be used directly or indirectly as a corrupt payment, gratuity, emolument, bribe, kickback, or other improper benefit to any person; and (d) neither it nor its Relevant Persons will directly or indirectly request, agree to receive, or accept a financial or other advantage from any person.              Each Party represents, warrants and covenants to the other Party that neither it, nor any of its employees, directors, officers, agents, or affiliates are listed on, nor affiliated with, any entity or person that is listed on the U.S. Commerce Department’s Denied Persons List, Entity List, or Unverified List, the U.S. State Department’s Nonproliferation Sanctions List, or the U.S. Treasury Department’s List of Specially Designated Nationals and Blocked Persons (each a “List”, and collectively the “Restricted Party Lists”). Further, each Party hereby confirms that it does not have any business relationships with any person or entity identified on a Restricted Party List. The Restricted Party Lists can be found at: http://export.gov/ecr/eg_main_023148.asp.              Neither Party nor its Affiliates will distribute Products to a third party where it is aware of or has a reason to believe that any Products will be used for Restricted Activities (defined below), or be re-exported, transferred or diverted to a person or entity engaged in Restricted Activities. In furtherance of its obligations, each Party represents, warrants and covenants to the other Party that, unless express written prior authorization is obtained from the other Party, it and its Affiliates will not:                    export, directly or indirectly, the other Party’s Products to a country       embargoed under U.S. law, either separately or as part of a system;                    provide in any way the other Party’s Products to a party on a List; and/or                    provide in any way the other Party’s Products to a third party if it has reason       to believe that they may be used in a Restricted Activity or reexported, transferred or       diverted to a party on a List.  Each Party also agrees that it will provide the other Party with full information, certifications and other documentation reasonably required by the other Party to ensure that it has complied with all export restrictions and requirements imposed by applicable law.  “Restricted Activities” mean: (i) nuclear-related activities (including without limitation maritime nuclear propulsion projects); (ii) the design, development, production or stockpiling of missiles; and/or (iii) the design, development, production or stockpiling of biological or chemical weapons.        General Provisions.                                       26 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED              Affiliate Performance Guarantee. A breach by a Party’s Affiliate of such Affiliate’s obligations under this Agreement will be deemed a breach of this Agreement by such Party. Each Party guarantees the performance of the obligations of its Affiliates under this Agreement.              Independent Contractors. The relationship of PTC (and its Affiliates) and RA (and its Affiliates) will be that of independent contractors. There is no relationship of agency, partnership, joint venture, employment or franchise between or among the Parties and their respective Affiliates. Neither Party nor its Affiliates has the authority to bind the other Party or any of its Affiliates or to incur any obligation on behalf of the other Party or its Affiliates or to represent itself as the agent of the other Party or its Affiliates or in any way that might result in confusion as to the fact that the Parties are separate and distinct entities. Without limiting the generality of the foregoing, each Party will not, and will cause its Affiliates not to, make any representations, warranties or covenants of any kind on behalf of the other Party or its Affiliates.              Assignment. Neither Party will assign or transfer this Agreement (or any of its rights or obligations hereunder) without the prior written consent of the other Party. Either Party may assign this Agreement without the other Party’s prior consent to any third party controlling, controlled by or under common control with the assigning Party. Any purported assignment in violation of this Section will be null and void and a breach of this Agreement. For purposes of clarity, a Change of Control of a Party will not constitute an assignment of this Agreement; however, in such event, each Party may elect to terminate this Agreement in accordance with Section 13.2(d) or (e), as applicable.              Amendment. No waiver, alteration, modification, or cancellation of any of the provisions of this Agreement will be binding unless made in writing and signed by each of the Parties hereto.              No Implied Waivers; Interpretation. A failure at any time to require performance of any provision hereof will in no manner affect a Party’s right at a later time to enforce such provision. No failure by either Party to take any action or assert any right hereunder will be deemed to be a waiver of such right in the event of the continuation or repetition of the circumstances giving rise to such right. For purposes hereof, “including” means “including without limitation”. Each Party has had the opportunity to consult with counsel in connection with the review, drafting and negotiation of this Agreement. Accordingly, the rule of construction that any ambiguity in this Agreement will be construed against the drafting Party will not apply.              Severability. If any provision of this Agreement is held to be invalid or unenforceable, the remainder of the provisions will remain in full force and effect. The invalid or unenforceable provision will be modified so as to render it enforceable while giving effect, as nearly as possible to the original intent of the Parties.              Non-Exclusive Remedies. Except as expressly specified in this Agreement to the contrary, no remedy referred to in this Agreement is intended to be exclusive, but each will be                                       27 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED  cumulative and in addition to any other remedy referred to herein or otherwise available at law, in equity or otherwise.              Entire Agreement. This Agreement, including all Schedules and Exhibits attached hereto (which are each hereby incorporated herein), (a) constitutes the entire understanding and agreement between the Parties with respect to the subject matter hereof, (b) amends and restates the Original Agreement in its entirety, and (c) supersedes all other agreements, oral or written, between the Parties, including all proposals, oral or written, negotiations, conversations, and discussions between the Parties.              Notices. Unless specifically set forth otherwise and until either Party gives notice to the other Party of a change in address, all notices or communications of any kind made or required to be given pursuant to this Agreement will be in writing and delivered to:        If to PTC:        PTC Inc.       Attn: General Counsel       Until 1 February, 2019 - 140 Kendrick Street, Needham MA 02494 USA       After 1 February, 2019 - 121 Seaport Blvd, Boston MA 02210        With a copy (which will not constitute notice) to:        Stephen G. Charkoudian       Goodwin Procter LLP       100 Northern Avenue       Boston, MA 02210        If to RA:        Rockwell Automation, Inc.       Attn: General Counsel       1201 South 2nd Street       Milwaukee, WI 53204        With a copy (which will not constitute notice) to:        Bryan S. Schultz       Foley & Lardner LLP       777 East Wisconsin Avenue       Milwaukee, WI 53202-5306              Governing Law. This Agreement will be governed by and construed in accordance with the internal laws of the State of New York, without regard to principles of conflicts of laws.                                       28 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED  Each of the Parties hereby irrevocably and unconditionally consents to submit to the sole and exclusive jurisdiction of the state and federal courts located in New York County in the State of New York for any litigation among the Parties hereto arising out of or relating to this Agreement. The provisions of the United Nations Convention on Contracts for the International Sale of Goods are hereby excluded and will not apply to this Agreement.              Multiple Counterparts. This Agreement may be executed simultaneously in two or more counterparts, each one of which will be deemed an original, but all of which will constitute one and the same instrument.                       [Remainder of page intentionally left blank]                                        29 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 406 PROMULGATED UNDER THE SECURITIES                           ACT OF 1933, AS AMENDED        IN WITNESS WHEREOF, the undersigned Parties have executed this Agreement as of the date first set forth above.   PTC INC.                              ROCKWELL AUTOMATIION, INC.   [s] James E. Heppelmann               /s/ Blake Moret  Signature of Authorized Representative Signature of Authorized Representative   James E. Heppelmann                   Blake Moret  Name                                  Name   President and CEO                     President and CEO  Title                                 Title             [Signature page to Amended and Restated Strategic Alliance Agreement] ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 406 PROMULGATED UNDER THE SECURITIES                           ACT OF 1933, AS AMENDED                                   EXHIBIT A                              PRODUCT EXHIBIT  PTC Products    ThingWorx, Vuforia, and ThingWorx Industrial Connectivity products For clarity, ThingWorx Industrial Connectivity products are sometimes also referred to as Kepware, but RA is not authorized to distribute products under that branding under this Agreement.  ThingWorx and Vuforia are PTC Development Platform Products.  RA Products    MES, FactoryTalk and FactoryTalkAnalytics platforms, applications, solutions and services                                  Exhibit A; Page 1 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 406 PROMULGATED UNDER THE SECURITIES                           ACT OF 1933, AS AMENDED                                   EXHIBIT B                    ADDITIONAL TERMS AND COVENANTS  1.    Restricted Companies.        “PTC  Restricted Companies” means all businesses and divisions of the following companies, to the extent those businesses and divisions compete with RA and its Affiliates:          [***]         [***]         [***]         [***]         [***]         [***]         [***]         [***]         [***]         [***]         [***]         [***]         [***]         [***]         [***]         [***]         [***]         [***] (provided that, at the time that its existing agreements concerning the license of          [***] to [***] for internal use is subject to renewal, [***] may provide [***] with the          right to resell the number of licenses to the [***] equal to (a) the number of licenses          that remain unused by [***] at the time of the expiration of the existing agreement less          (b) the number of licenses sold in connection with the renewal agreement with [***].)         the subsidiaries of each of the foregoing        “RA  Restricted Companies” means all businesses and divisions of the following companies, to the extent those businesses and divisions compete with PTC and its Affiliates:          [***]         [***]         [***]         [***]         [***]         [***]                                 Exhibit B; Page 1 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED          [***]         [***]         [***]         [***]         [***]         [***]         [***]         the subsidiaries of each of the foregoing  2.    Restrictions on [***]’s Distribution of [***] Products.  Technology Purchase Agreement, dated as of [***], between [***] and [***]  Technology Purchase Agreement, dated as of [***], among [***],[***],[***] and [***]  The restrictions set forth applicable to [***] in the agreements above are the same restrictions as applicable to [***]. To [***]’s knowledge, the restrictions set forth in the agreements do not substantially impact [***]’s rights under this Agreement, and if any substantial impact does arise, the Parties will work in good faith to resolve the substantial issue.  3.    Restrictions on [***]’s Distribution of [***] Products.  None  4.    Opportunity Registration Process.  In order to register an opportunity to sell or license the Combined Offering or PTC Products, RA must submit a specific sales opportunity (an “Opportunity”) to PTC for proposed registration status by email to the email address PTC provides to RA for opportunity registration purposes. Notifying PTC of an Opportunity through any other means will not constitute an effective attempt to register the Opportunity under the terms of this Agreement.  PTC may, in its reasonable discretion, approve or deny the registration of any Opportunities using the following general principles.        1.    The details of the Opportunity (i.e., anticipated deal size, products involved,             division of the Customer, relevant geography, etc.) must be specified by RA in the             request for registration. An Opportunity will likely be rejected if the registration             form is not sufficiently detailed. Without limiting the foregoing, attempting to             register customers/accounts generally is not permitted.        2.    If PTC or PTC Affiliate or reseller or distributor has engaged with the customer on,             and actively worked, the opportunity, then PTC is likely to reject it.                                 Exhibit B; Page 2 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED        3.    If the Opportunity is not in the Factory SCO or Factory SCP setting, PTC will likely             reject the proposed registration.        4.    If PTC reasonably believes, after consultation with RA, that RA does not have             adequate sales coverage or adequate relationships to successfully sell that             Opportunity.        5.    If PTC has other reasonable grounds for rejecting the Opportunity  PTC will use reasonable efforts to respond to a request to register an Opportunity within five (5) business days of the date that RA submits it for registration and agrees it will consider each registration request in good faith. In communicating its decision in the event of a rejection, PTC will inform RA why PTC is rejecting the proposed registration. In the event an Opportunity is rejected, RA may appeal such rejection to the Governance Team.  Every deal registration that is accepted by PTC will have an expiration date, which will be one hundred and eighty (180) days from the date that PTC communicates its acceptance of the registration to RA (or such other period as PTC specifies when it accepts the registration). Thereafter, unless PTC extends the registration, the applicable Opportunity will be deemed not to be registered any longer.  During the term of each deal registration, RA and its Affiliates will have the exclusive right (visa- vis PTC direct sales) to the applicable Opportunity.  5.    Initial Governance Team Members        RA:          Executive: [***] and [***]         Business: [***]         Technology: [***]        PTC:          Executive: [***] and [***]         Business: [***]         Technology: [***]  6.    Exclusive Territory  The following account selection process will be used to determine the Exclusive Territory of RA and its Affiliates. In all cases, exclusivity applies to Factory SCO use cases only and                                  Exhibit B; Page 3 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED  determinations will be made in good faith. Except as specified, all other accounts will not be exclusive.  For purposes of this Section, a “Substantial Business Relationship” shall mean, in respect of the customer at hand, either (a) the applicable Party and its Affiliates have made sales of more than [***] to such customer in the previous 12-month period or (b) such customer already has standardized on an offering of such Party .  List of [***]        A.    RA will provide PTC with a list of proposed companies whose primary use case is             in the area of Factory SCO. The list will be reviewed by a joint steering committee             comprised of an equal number of members from each Party. From this review, a             final list of Factory SCO customers (not to exceed [***] accounts) will be selected.             PTC may reject a company’s inclusion on the list because PTC already has a             Substantial Business Relationship with that customer.        B.    Unless a significant opportunity requires a special intermittent review, the above-             described process will be completed on a twice a year basis at which point accounts             can be exchanged on the list (but in no event will the number exceed [***] unless             the Parties mutually agree in writing). For the sake of clarity, each affiliate of a             company that has different businesses will be treated as different companies in             calculating the [***] companies.  Industry-Specific Instances  In addition to the companies to be identified and listed above, for companies that meet all of the following criteria set forth below, RA and its Affiliates will have exclusivity. RA will notify PTC of what companies meet these criteria so that PTC can notify its direct sales force not to sell the PTC Products to such companies. These accounts will not count against the [***] named accounts on the RA exclusive list referenced above.        A.    The company’s business(es) must be entirely in one or more of the following             industries, or the company must have a business or division whose business is             entirely in one or more of the following industries (in which case only that             business/division will qualify):                  Drug/pharmaceutical companies (but not including medical devices);                  Metals, mining and cement;                  Oil, gas and chemical ;                  Consumer package goods, including food, beverage, home and personal                   care companies; and                  North America automotive OEMs.                                 Exhibit B; Page 4 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED        B.    The company must be an end user company. “End User Companies” will be             defined as companies that operate in the end user environment or setting but does             not include the factory where the equipment and/or tools for use in the end user             environment/setting are manufactured. For example, without limitation,                  In the drug setting, the drug manufacturer itself would be an End User                   Company, whereas a company making equipment for use in drug                   manufacturing would not be an End User Company;                  In the mining setting, the operator of a mine would be an End User                   Company, whereas the manufacturer of equipment for use by a mine                   operator would not be an End User Company;                  In the oil and gas setting, the operator of the oil platform would be an End                   User Company, whereas the manufacturer of drilling equipment would not                   be End User Company; and,                  In the consumer product goods setting, the food manufacturer would be an                   End User Company, whereas the manufacturer of equipment for use in food                   manufacturing would not be an End User Company.        C.    The company must already have a Substantial Business Relationship with RA or             its Affiliates related to RA hardware at that time.        D.    The company must also not already have a substantial ThingWorx footprint at such             time.  [***]  In addition, all [***]-headquartered customers (not including [***]) will be exclusive to RA and its Affiliates for Factory SCO use cases for their [***]-based operations. For the sake of clarity, sales by PTC to such customers for use outside of such companies’ [***] operations will not be precluded.  [***]  In addition to the companies to be identified and listed above, for companies that are headquartered in [***] and that meet all of the following criteria in A and B (below), RA and its Affiliates will have exclusivity for Factory SCO use cases for their [***]-based operations. RA will notify PTC of what companies meet these criteria so that PTC can notify its direct sales force not to sell the PTC Products to such companies. These accounts will not count against the [***] named accounts on the RA exclusive list referenced above.        A.    The company must already have a Substantial Business Relationship with RA or             its Affiliates related to RA hardware at that time.                                  Exhibit B; Page 5 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED        B.    The company must also not already have a substantial ThingWorx footprint at such             time.  Exceptions to Exclusive Territory  RA or its Affiliates will be the contracting party for companies in the Exclusive Territory unless the Governance Team agrees otherwise. Accordingly and in that regard, the Parties acknowledge that the following factors may be considered by the Governance Team: (i) RA or its Affiliates does not have sales capacity in a part of the applicable Exclusive Territory in order to effectively cover the account; or (ii) the Customer desires not to purchase the PTC Products from RA or its Affiliates but to purchase from PTC instead. If the Governance Team agrees that PTC will be the contracting party with respect to a specific opportunity, such sales made by PTC under subsection (ii) above will be deemed made by RA and computed as if RA made the sale for purposes of calculating New ACV under this Agreement.                                  Exhibit B; Page 6 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 406 PROMULGATED UNDER THE SECURITIES                           ACT OF 1933, AS AMENDED                                   EXHIBIT C                             OEM  TERMS EXHIBIT  These Mutual OEM Terms and the attached Schedules are collectively referred to as the “OEM Agreement”.                                   RECITALS        WHEREAS, the Parties are entering into that certain Strategic Alliance Agreement (the “Strategic Alliance Agreement”) to which this OEM Agreement is attached as Exhibit C;        WHEREAS, to facilitate the business objectives of the Strategic Alliance Agreement, the Parties wish to enter into this OEM Agreement to provide each Party with certain resale rights with respect to the other Party’s Products for distribution under its own license conditions (as set forth herein).        NOW, THEREFORE, in       consideration of the foregoing and the respective representations, warranties, covenants and agreements set forth below, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows.                               OEM  AGREEMENT        Definitions. In addition to terms defined in the Strategic Alliance Agreement and on first use in this OEM Agreement, the terms set forth in this Section 1 (Definitions) will have the meanings set forth below:              “Application(s)” means the executable version of a computer program and user interface that are created using the Development Tools of PTC Products and completed to deliver (a) a Customer-specific use case, or (b) a vertical market-specific use case, or (c) a specific internal use case of a Party or an Affiliate of a Party. Applications typically include Distributable Software.              “Asset” means a sensor, device, machine, system, web service, thing, etc. that is modeled (represented) and/or registered as an asset (or “device” or “thing” within the software) or any separately defined part of the foregoing if it is being treated as a separate asset within the applicable Product. For example, without limitation, an asset could be a medical analyzer, a car, a toothbrush, another computer system, weather service, a helicopter (and/or a helicopter engine, if that engine is modeled or registered as a separate asset in the applicable PTC Product).              “Combined Offering” means one or more products, marketed and licensed under the Combined Offering Brand, each of which is comprised of one or more RA Product(s) that is distributed with one or more PTC Product(s), including all Updates.              “Customer License Agreement” means a Customer license agreement created by the Product Selling Party for use by Product Selling Party or Sales Agent in the distribution of the                                 Exhibit C; Page 1 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED  Combined Offering, which license agreement may be accepted in either “shrink-wrapped” form or an electronic equivalent which permits the Customer to view and indicate agreement with the license terms prior to paying for the license. To the extent any proposed modified terms for an individual Customer’s License differ from then the standard, current form of the Customer License Agreement, the Product Originating Party will cooperate with the Product Selling Party and will reasonably approve of all such modified terms.              “Development Tools” means PTC’s development tools and related software, that are made generally available by PTC to its direct customers of the PTC Products, and Updates thereto, for use in connection with development of agents and Applications for use with the PTC Products, and which are provided or made available to RA and its Affiliates under this OEM Agreement, and Updates thereto.              “Originating Party Product(s)” means the PTC Product(s) or the RA Product(s), as the context requires.              “Product Originating Party” means the Party whose Originating Party Product(s) are sold by the other Party as part of the Combined Offering under this OEM Agreement.              “Product Selling Party” means the Party and/or its Affiliate(s) that sells the other Party’s Product(s) as part of the Combined Offering under this OEM Agreement.              “PTC Distributable Software” means the PTC Product Agents and components and files included in Applications or otherwise generated by use of the Development Tools that are designed to be distributed on or with Assets for use at the location of Registered Assets in accordance with the applicable Documentation, and Updates thereto.              “PTC Product Agents” means the agent software components and Updates thereto that PTC makes generally available to its customers and users, and which are provided or made available to RA under this OEM Agreement and intended to be delivered to Customers or Users for installation and use on Registered Assets or at the location of Registered Assets.              “RA Components” means RA’s hardware, software, or hosting services that are part of a Combined Offering.              “RA  Distributable Software” means the software components and Updates thereto that RA or its Affiliates makes generally available to its customers and users, and which are provided or made available to PTC under this OEM Agreement and intended to be delivered to Customers or Users for installation and use on RA products or at the location of RA products.              “Registered Asset” means the total quantity of assets represented by a unique ID and registered within the PTC Product known as the ThingWorx Platform that are associated with Assets. Registered assets reflected in the PTC Product known as the ThingWorx Platform that are                                 Exhibit C; Page 2 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED  associated only with communication devices (such as SIMs and wireless edge devices used solely for enabling communication with a Customer’s Assets) are not counted towards the total permissible number of Registered Assets. Registered Assets are measured monthly and usage is based on the peak number of Registered Assets during the month.              “Sales Agent” means a member of Product Selling Party’s standard distribution channels that (a) is appointed by Product Selling Party to exercise the rights granted to Product Selling Party by Product Originating Party pursuant to Section 2 and (b) with respect to which the requirements of Section 2.3 have been met.              “Sales Agent Agreement” means a reseller agreement for use by Product Selling Party in the redistribution of a Combined Offering by a Sales Agent, which agreement must be in written form and signed by the Sales Agent.              “Specifications” means the functional specifications of the Originating Party Products set forth in the Documentation.              “Sublicensees” means Customers and/or Sales Agents, as applicable.              “Support” means the provision of support services and technical support with respect to the Products, as the case may be, with responsibility for first line and second tier support.              “User” means any individual authorized by a Customer (including such Customer’s employees, customers and/or subcontractors) to utilize the Combined Offering for its internal business purposes, and not for further resale or distribution.        License and Restrictions.              Grant of License. Subject to the terms and conditions of the Strategic Alliance Agreement and this OEM Agreement, each Product Originating Party hereby grants to each Product Selling Party, and each Product Selling Party hereby accepts (in the case of each of PTC and RA as a Product Selling Party, on its behalf and on behalf of its Affiliates), a non-exclusive (except as set forth in the Strategic Alliance Agreement), non-transferable (except as set forth herein), non-assignable (except as set forth in the Strategic Alliance Agreement), non- sublicensable (except as set forth in this Section 2.1 and Section 2.3), fee-bearing license as follows:                    Distribution License for Originating Party Products - solely pursuant to the       sublicensing terms described in Section 2.1(c) and/or Section 2.1(d) below, to market       install, configure, implement, service, support and distribute the Originating Party Products       only as part of a Combined Offering and, in the case of RA and its Affiliates, only for       Factory SCO and Factory SCP use cases;                                  Exhibit C; Page 3 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED                    Modify and Distribute Documentation - to reproduce, modify, and use for       purposes of training and support, the Documentation supplied by Product Originating       Party, and distribute the modified Documentation as an embedded or bundled component       of the applicable Combined Offering, solely for use with the Combined Offering or       Application of Product Selling Party, and in the case of RA and its Affiliates, solely in the       Factory SCO and Factory SCP settings;                    Customer Sublicenses - to grant to Customers sublicenses for use of the       Originating Party Products as part of a Combined Offering, in the case of RA and its       Affiliates solely in the Factory SCO and Factory SCP settings;                    Sales Agent Sublicenses - to grant to Sales Agents sublicenses for       redistribution of the Originating Party Products to Customers as part of a Combined       Offering, in the case of RA and its Affiliates solely in the Factory SCO and Factory SCP       settings; and                    Sales Enablement License - to use the Originating Party Products for       purposes of Sales Enablement.              Additional Licenses by PTC to RA. Subject to the terms and conditions of the Strategic Alliance Agreement and this OEM Agreement, PTC hereby grants to RA and its Affiliates, and RA hereby accepts on its behalf and on behalf of its Affiliates, a non-exclusive (except as set forth in the Strategic Alliance Agreement), non-transferable (except as set forth herein), non-assignable (except as set forth in the Strategic Alliance Agreement), non- sublicensable (except as set forth in this Section 2.2 and Section 2.3), fee-bearing license as follows:                    Use License - to internally install and use the PTC Products designated on       Exhibit A to the Strategic Alliance Agreement as a “PTC Development Platform Product”,       solely for the purpose of (i) internally developing, testing and supporting Applications of       RA and RA Components, and (ii) training Sales Agents of RA and its Affiliates; and                    License for Distributable Software - to (i) reproduce, install, and distribute       copies of the Distributable Software solely in the Factory SCO and Factory SCP settings,       for use only with a Combined Offering or Application of RA, through multiple tiers of       distribution to Asset end users, in each case solely for installation and use by a Customer       and/or Asset end user in connection with the applicable Combined Offering or Application       of RA or its Affiliate; (ii) grant to Sales Agents sublicenses for redistribution of the       Distributable Software, solely for internal business purposes, only in the Factory SCO and       Factory SCP settings, and in the form of a Sales Agent Agreement in accordance with       Section 2.3; and (iii) grant to Customers sublicenses for use of the Distributable Software,       solely for internal business purposes, only in the Factory SCO and Factory SCP, in the       form of a Customer License Agreement in accordance with Section 2.3.                                 Exhibit C; Page 4 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED              Customer License Agreements and Sales Agent Agreements. Product Selling Party agrees that Customers will be permitted to use Originating Party Products only as part of a Combined Offering under a Customer License Agreement, and Sales Agents will only be permitted to redistribute Originating Party Products under a Sales Agent Agreement, such agreements to be preapproved by Product Originating Party, and in each case that, at a minimum and unless otherwise agreed to by the Parties, include contractual provisions that:                    with respect to Customers, grant the Customer the non-transferable, non-       sublicenseable right to use the applicable Originating Party Product according to the terms       set forth in this Section 2.3, solely for the Customer’s internal business purposes and only       as distributed with the Combined Offering; or                    with respect to Sales Agents, (i) grant the Sales Agent the non-transferable       right to (A) market and distribute the applicable Originating Party Product according to the       terms set forth in this Section 2.3 and only as distributed with the Combined Offering, and       (B) grant sublicenses to Customers only for their use of the Combined Offering consistent       with the terms of this Section 2.3 as applicable to Customers and (ii) require strict       compliance with all applicable laws and regulations, including without limitation the       FCPA; and                    with respect to Sublicensees, (i) prohibit the removal of any copyright or       other proprietary notices; (ii) prohibit causing or permitting the reverse engineering,       disassembly or decompilation of the applicable Originating Party Product portion of the       Combined Offering (or the Combined Offering as a whole); (iii) prohibit title to the       applicable Originating Party Product portion of the Combined Offering (or the Combined       Offering as a whole) from passing to the Sublicensee; (iv) disclaim Product Originating       Party’s liability to the Sublicensee for damages, whether direct or indirect, incidental or       consequential or for loss of profits, arising in connection with the Customer License       Agreement or Sales Agent Agreement, as applicable; and (v) state that Product Originating       Party disclaims any warranty of any kind directly to the Sublicensee with respect to the       applicable Originating Party Product, including any warranty of performance, title,       merchantability, fitness for a particular purpose and non-infringement.                    As between Product Selling Party and Product Originating Party, Product       Selling Party is responsible for enforcing Customer License Agreements and Sales Agent       Agreements and for any failure to enforce the Customer License Agreements and Sales       Agent Agreements. If either Party chooses not to enforce the terms of the Customer       License Agreement, and if requested by the other Party, the Product Selling Party will use       reasonable efforts to assign to the Product Originating Party its, or the applicable Sales       Agent, rights under the applicable Customer License Agreements and Sales Agent       Agreements to the extent necessary to permit the Product Originating Party to enforce the       terms and conditions under the Customer License Agreements and Sales Agent                                 Exhibit C; Page 5 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED        Agreements applicable to the applicable Product, and to take corrective action on its own       behalf to remedy such breach and to seek such equitable relief on its own behalf.              Reservations; Restrictions.                    Retained Rights. As between the Parties and subject to the licenses in this       OEM Agreement, PTC owns all rights in the PTC Products, including all PTC Distributable       Software, and RA owns all rights in the RA Products, including all RA Distributable       Software, provided to PTC, including in either case all Updates, upgrades, modules, add-       ons, modifications or improvements to or derivative works. Each Party retains all rights,       titles, and interests in and to its respective technology and intellectual property, including       the intellectual property rights in its trademarks, products, services, and documentation,       and hereby reserves all rights not expressly granted in this OEM Agreement or the Strategic       Alliance Agreement. Except as set forth herein, neither Party will attempt to or knowingly       permit or encourage others to, and each Party will cause its Affiliates not to, attempt to       alter, reverse engineer, decompile, disassemble or otherwise attempt to derive the source       code of the other Party’s materials, except to the extent that the restrictions in this sentence       are expressly precluded by applicable laws. Taking any of these actions is a material breach       of this OEM Agreement.                    Ownership of Applications and Distributable Software. Subject to the terms       and conditions of the Strategic Alliance Agreement, each Party and its Affiliates will own       all rights, title and interest to any Applications developed by such Party or Affiliate,       including all Updates, upgrades, modules, add-ons, modifications or improvements to or       derivative works thereof. Notwithstanding the foregoing, PTC will own all of the PTC       Distributable Software incorporated into such Application. Similarly, to the extent PTC or       its Affiliates develops any applications based on RA software, RA will own all of the RA       Distributable Software incorporated into such application.                    License Restrictions. Without limitation, Product Selling Party will not,       directly or indirectly: (i) use any Originating Party Product for Product Selling Party’s       internal business operations as part of a hosted service or otherwise outside the scope of       the license granted in Section 2.1; (ii) modify, translate, copy, reproduce, reverse engineer,       decompile, disassemble or otherwise attempt to derive the source code of any Originating       Party Product, or remove any copyright or other proprietary notices of any Originating       Party Product or related Documentation; or (iii) solicit sales of, sell, distribute, sublicense       or otherwise transfer any Originating Party Product (A) to any person or entity that is not       a Customer or Sales Agent, or (B) other than pursuant to a Customer License or Sales       Agent Agreement. Product Selling Party will be fully responsible to Product Originating       Party and its licensors for compliance by Product Selling Party’s employees, agents and       consultants with the foregoing restrictions and all other terms and conditions hereof.       Notwithstanding anything contained herein, all transfers, including all transfers by Product       Selling Party to Customers, of any Originating Party Product are by way of license only,                                 Exhibit C; Page 6 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED        and not sale. Nothing herein will affect any sale or transfer of title to such Originating       Party Products to Product Selling Party or any third party.                    Open Source Restrictions. Product Selling Party will not incorporate, link,       distribute or use any third party software or code in conjunction with any Originating Party       Product in such a way that: (i) creates, purports to create or has the potential to create,       obligations with respect to any Originating Party Product or other software owned by or       licensed to Product Originating Party, including without limitation the distribution or       disclosure of any source code; or (ii) grants, purports to grant, or has the potential to grant       to any third party any rights to or immunities under any intellectual property rights or       proprietary rights of Product Originating Party or its Affiliates, including without limitation       as such rights exist in or relate to any Originating Party Product. Without limiting the       generality of the foregoing, Product Selling Party will not incorporate, link, distribute or       use (i) any Originating Party Product or any other software provided by Product       Originating Party, nor (ii) any software, products, documentation, content or other       materials developed using any Originating Party Product, with any code or software       licensed under any version of the GNU General Public License (“GPL”), Affero General       Public License (“AGPL”), Lesser General Public License (“LGPL”), European Union       Public License (“EUPL”), Apple Public Source License (“APSL”), Common Development       and Distribution License (“CDDL”), IBM Public License (“IPL”), Eclipse Public License       (“EPL”), Mozilla Public License (“MPL”), or any other open source license, in any manner       that could cause or could be interpreted or asserted to cause any Originating Party Product       or other software provided by Product Originating Party (or any modifications thereto) to       become subject to the terms of the GPL, AGPL, LGPL, EUPL, APSL, CDDL, IPL, EPL,       MPL, or such other open source license.                    Quality Control Requirements. Each Party acknowledges the other Party’s       exclusive ownership of the other Party’s Trademarks and that use by either Party or its       Affiliates of any of the other Party’s Trademarks, including any resulting goodwill, will       inure to the sole benefit of the Party that owns such Trademarks. Neither Party will       knowingly do or permit to be done, and will cause its Affiliates not to do or cause to be       done, any act or thing inconsistent with such ownership and will not acquire or claim or       assist third parties in acquiring or claiming any title in or to any of the other Party’s       Trademarks, including by virtue of the Strategic Alliance Agreement, this OEM       Agreement, or through either Party’s use of the other Party’s Trademarks. Neither Party       will directly or indirectly, and will cause its Affiliates not to directly or indirectly,       undertake any action that in any manner might question, contest, challenge, infringe or       impair the validity, enforceability, scope of rights or title of the other Party in any of the       other Party’s Trademarks at any time during the term of the Strategic Alliance Agreement.       Each Party agrees that (a) all Combined Offerings identified by any of the other Party’s       Trademarks will be at least equal in quality to the mutually agreed specifications therefore       (the “Quality Standard”) and (b) it will maintain, and will cause its Affiliates maintain,                                 Exhibit C; Page 7 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED        procedures to assure the consistent quality of all Combined Offerings bearing or containing       the other Party’s Trademarks. Each Party will have the right to audit and inspect, upon       advance written notice, at the inspecting Party’s sole expense, and during regular business       hours, the use by the other Party and its Affiliates of its Trademarks licensed hereunder       and all Combined Offerings identified by any of its Trademarks                    Registered Asset Requirements. Where RA or an Affiliate of RA is Product       Selling Party, RA will, and will cause its Affiliates to, require that any Asset used with the       Combined Offering that includes the PTC Product known as ThingWorx be a Registered       Asset, and will prohibit Customers and Users from using Assets with such Combined       Offering in a manner that intends to mask the unique identifier for any Asset or otherwise       to circumvent the per Asset payment obligations, in each case, by including such       requirement and restriction in each Customer License Agreement.              Term of Licenses. Product Selling Party and its Sales Agents may sell Subscription Licenses to the Combined Offering, with a maximum license term of three (3) years unless otherwise agreed to the Parties.              Licensing Basis. Unless otherwise agreed to by the Parties, the PTC Products licensed as part of the Combined Offering will be licensed using the licensing basis (e.g., per user, per asset) as specified at https://www.ptc.com/en/documents/legal-agreements; provided that, after the reasonable request of PTC due to a change in such documentation, RA will license the PTC Products to Customers on terms that provide that the Customers cannot effect an early termination of the license without cause.        Maintenance Services.              The Parties agree that, notwithstanding anything in this OEM Agreement, Product Selling Party will provide first line Support to all Customers of the Combined Offering, and Product Originating Party will provide second tier Support to Product Selling Party. Generally, first line Support means that Product Selling Party will interface with the Customers and before escalating an issue, will have a technical Support personnel who is properly trained in providing Support for the Originating Party Product(s) to trouble-shoot the issue and attempt to achieve a workaround. If a workaround is not possible after diligent efforts, Product Selling Party may contact Product Originating Party for second line Support, which typically will involve Product Originating Party development personnel using diligence efforts to create a bug fix or other solution to the Customer’s problem. The Product Originating Party’s Support obligations will include providing the Product Selling Party with Updates as Product Originating Party makes such Updates generally available, and the additional maintenance obligations set forth on Schedule A.        OEM  Warranties.              Warranty.                                 Exhibit C; Page 8 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED                    Warranty. Each Product Originating Party warrants to Product Selling       Party that Product Originating Party is authorized to grant the license(s) granted by it under       this OEM Agreement and that, subject to the remainder of this Section 4.1, the Originating       Party Products will be free from Errors during the Warranty Period. “Warranty Period”       means: (a) for Perpetual Licenses, the ninety day period commencing on the date Product       Originating Party makes the Originating Party Product available to Product Selling Party       or Sublicensee, and (b) for Subscription Licenses, the term of the subscription. Product       Originating Party will have no warranty obligations hereunder with respect to any (i) Errors       attributable to the use of an Originating Party Product in an application or environment for       which it was not designed or contemplated, or (ii) Errors attributable to any modifications       or customizations of an Originating Party Product not made by or on behalf of Product       Originating Party. Product Originating Party’s issuance of an Update will not re-start a       Warranty Period that has expired.                    Remedy. Product Originating Party’s and its licensors’ entire liability and       Product Selling Party’s exclusive remedy for any breach by Product Originating Party of       the warranty given in this Section 4.1 will be, at Product Originating Party’s sole discretion,       either to (a) replace the Originating Party Product or (b) use diligent efforts to repair the       Error. Product Originating Party’s obligations set forth in the preceding sentence will       apply only if notice of the Error is received by Product Originating Party within the       Warranty Period and Product Selling Party supplies such additional information regarding       the Error as Product Originating Party may reasonably request. If Product Originating       Party does not replace the applicable Originating Party Product and/or does not repair the       Error (either by providing a bug fix, a workaround or otherwise) within a reasonable time       after notice of the Error and associated information from Product Selling Party is received       by Product Originating Party, Product Originating Party will provide a refund of the       prepaid unused license fees paid by Product Selling Party for the applicable Originating       Party Product containing the Error, upon return of such Originating Party Product and any       copies thereof.                    Disclaimer. EXCEPT AS EXPRESSLY     STATED   IN THIS OEM       AGREEMENT    AND   THE  STRATEGIC   ALLIANCE   AGREEMENT, PRODUCT       ORIGINATING PARTY DISCLAIMS (AND PRODUCT SELLING PARTY WAIVES)       ALL WARRANTIES, WHETHER EXPRESS OR IMPLIED, WRITTEN OR ORAL,       INCLUDING   ANY   WARRANTY     OF  MERCHANTABILITY, SATISFACTORY       QUALITY, FITNESS FOR    A  PARTICULAR   PURPOSE, NON-INFRINGEMENT,       AND/OR ANY WARRANTY THAT PRODUCT SELLING PARTY WILL ACHIEVE       ANY PARTICULAR RETURN ON INVESTMENT. PRODUCT RESELLING PARTY       IS SOLELY RESPONSIBLE FOR ANY RESULTS OBTAINED FROM         USING THE       ORIGINATING    PARTY   PRODUCTS,    INCLUDING    THE   ADEQUACY     OF       INDEPENDENT TESTING OF RELIABILITY, SECURITY AND ACCURACY OF       ANY ITEM DESIGNED USING LICENSED PRODUCTS. PRODUCT ORIGINATING                                 Exhibit C; Page 9 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED        PARTY DOES NOT WARRANT THAT THE OPERATION OR OTHER USE OF THE       ORIGINATING PARTY PRODUCTS WILL BE UNINTERRUPTED OR ERROR FREE       OR WILL NOT CAUSE DAMAGE OR DISRUPTION TO ANY SUBLICENSEE’S       DATA, COMPUTERS OR NETWORKS. WITHOUT LIMITING THE FOREGOING,       PRODUCT ORIGINATING PARTY WILL HAVE NO LIABILITY ARISING FROM       ANY  SECURITY   INCIDENT   OR  DATA  LOSS  THAT   WOULD   HAVE   BEEN       PREVENTED IF PRODUCT SELLING PARTY HAD IMPLEMENTED A SECURITY       SOLUTIONS, DEVICES OR FEATURES (INCLUDING “PATCHES,” FIXES AND       UPDATES) FOR THE ORIGINATING PARTY PRODUCTS PROVIDED OR MADE       AVAILABLE   BY  PRODUCT   ORIGINATING   PARTY   TO  PRODUCT   SELLING       PARTY.              Performance Warranty. Product Selling Party is free to offer separate and additional warranty terms regarding the Originating Party Products or third party product(s) component of the Combined Offering as well as the entire Combined Offering in Product Selling Party’s name only, but Product Selling Party will not bind Product Originating Party to such additional terms, and Product Selling Party will be solely responsible for, and will indemnify and hold Product Originating Party harmless from, any claims based upon such warranty terms made by Product Selling Party that are additional to or are otherwise inconsistent with those made by Product Originating Party hereunder.                       [Remainder of page intentionally left blank]                                  Exhibit C; Page 10 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED                                   Schedule A                               Support Commitments  1.    GO-TO-MARKET SUPPORT        1.1   Technical and Sales Support. Each Party and its Affiliates will cooperate with the             other Party and its Affiliates as may be reasonably requested by the other Party to             assist in the sale of the Combined Offering to a prospective Customer.        1.2   Support Documentation. Each Party will make available to the other Party and its             Affiliates its electronic support and training materials (in all the languages             available) for its Products to assist the other Party and its Affiliates in handling its             Level 1 Support (as defined below) obligations.        1.3   Collateral. Each Party will provide collateral (in all the languages available) for             the other Party and its Affiliates’ marketing and sales to present Products overview             and competitive positioning. This will be used to help sell the “why” customers             should use the Party’s Products. Each Party will update materials to the other Party             as positioning changes and major software updates are released.        1.4   Data Sets. Each Party hereby agrees that, for data sets that it uses to demonstrate             its product (PTC Products in the case of PTC, and the RA Products in the case of             RA) it will, if allowed under its agreement with the provider(s) of the data set,             provide such data sets to the other Party solely for purposes of the other Party             demonstrating the Combined Offering.  2.    SUPPORT SERVICES DEFINITIONS        2.1   “Level 1 Support” means the resolution of Customer inquiries relating to the             Combined Offerings in real time or off-line without assistance from the other Party             except as otherwise agreed.        2.2   “Level 2 Support” means the technical expertise the one Party provides to the             other’s technical support case managers concerning inquiries regarding the             Combined Offering by phone, web-based support interface or other agreed-upon             means (“Official Means”) that is necessary to resolve off-line a Customer inquiry,             when Level 1 Support does not resolve the customer inquiry and when the             applicable technical support representative who takes the call generating such             inquiry finds it necessary to elevate the inquiry to the applicable Party’s technical             support case manager for resolution off-line, who in turn finds it necessary to             contact the applicable other Party to obtain from such other Party the technical             expertise necessary to resolve such Customer inquiries.                                 Exhibit C; Page 11 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED        2.3   “Error” is defined in the Strategic Alliance Agreement.         2.4    Error Severity Class  Criteria                P0, Fatal Impact      Error that results in system hangs or crashes, or                                     production is not possible without use of RA                                     Products or PTC Products, as applicable.                P1, Severe Impact     Error causes severe production impact, and/or                                     workaround (if available) is not acceptable.                P2, Degraded Operations Errors disabling only certain functions that are                                     not severe, but cause Customer dissatisfaction                                     and for which an acceptable workaround exists.                P3, Minimal Impact    All other Errors.  3.    SUPPORT SERVICES        3.1   The Party or Affiliate thereof who sells licenses for the Combined Offering will             provide Level 1 Support to its Customers for the Combined Offerings.        3.2   RA will provide Level 2 Support to PTC and its Affiliates for its Products included             in the Combined Offerings. PTC will provide Level 2 Support to RA and its             Affiliates for its Products included in the Combined Offerings. Each Party will             provide Level 2 Support to the other Party and its Affiliates 24x5 days per week             (i.e. weekends and holidays excluded) for most incident severities, with provision             for 24x7 elevation of P0 issues for immediate response (e.g. call list).        3.3   RA will provide in a commercially reasonable timely manner product support and             corrective maintenance (bug fixes, hotfix or patch release) for RA Products in             coordination with the PTC team where required. PTC will provide in a             commercially reasonable timely manner product support and corrective             maintenance (bug fixes, hotfix or patch release) for the PTC Products in             coordination with the RA team where required. The specific timelines will be as             agreed by the Governance Team.        3.4   In the event that PTC has determined that there is an issue with an RA Product as             part of the Combined Offering that is not operating as indicated in the             documentation and that PTC cannot resolve on its own, PTC shall contact RA             support. In the event that RA has determined that there is an issue with a PTC             Product as part of the Combined Offering that is not operating as indicated in the                                 Exhibit C; Page 12 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED              documentation and that RA cannot resolve on its own, RA shall contact PTC             support.        3.5   Once the information has been received, the Level 2 Support Party will use             reasonable commercial efforts to provide a response to the support request from             Level 1 Support Party.        3.6   Each Party will, in providing Level 2 Support hereunder, endeavor to meet the             following targets:                   Remedy Levels (defined below)         Error     1st Level    2nd Level        Final Level        Class         [***]     [***]        [***]            [***]         [***]     [***]        [***]            [***]        [***]     [***]        [***]            [***]        [***]     [***]        [***]            [***]        The required action for each Error class at each remedy level specified above is as       follows:        1st Level:  Acknowledgment of receipt of Error report with written confirmation                   delivered to the Level 1 Support Party.        2nd Level:  Temporary fix - a modification or workaround which allows the Customer                   to bypass the error, but may not be in a form suitable for general distribution                   to all of the Level 1 Support Party’s Customers.        Final Level: Official fix - a new update which resolves the Error and is in a form suitable                   for general distribution to all of Level 1 Support Party’s Customers.        3.7   The Parties understand that RA Products or PTC Products, as applicable, issues             attributable to third party technology contained within the RA Products or PTC             Products, as applicable, may require additional time to resolve. The Level 2             Support Party will take the appropriate steps in working with the third party vendors             to provide a solution or workaround to the issues within a time that the Parties can             agree to.        3.8   In certain select circumstances, the Level 2 Support Party will work with Level 1             Support Party and Customer to help address critical issues for which it is unclear if                                 Exhibit C; Page 13 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED              the issue is caused by an Error, if the Level 1 Support Party has been unable to             determine if an Error is involved from the information already provided by             Customer. The Governance Team will establish procedures for these types of             engagements.                                  Exhibit C; Page 14 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 406 PROMULGATED UNDER THE SECURITIES                           ACT OF 1933, AS AMENDED                                   EXHIBIT D                          RESELLER TERMS EXHIBIT  These Mutual Reseller Terms and the attached Schedules are collectively referred to as the “Reseller Agreement”.                                   RECITALS        WHEREAS,   the Parties are entering into that certain Strategic Alliance Agreement (the “Strategic Alliance Agreement”) to which this Reseller Agreement is attached as Exhibit D;        WHEREAS,   to facilitate the business objectives of the Strategic Alliance Agreement, the Parties wish to enter into this Reseller Agreement to provide each Party with certain resale rights with respect to the other Party’s Products for distribution under the other Party’s license conditions (as set forth herein).        NOW, THEREFORE,       in consideration of the foregoing and the respective representations, warranties, covenants and agreements set forth below, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows.                            RESELLER AGREEMENT        Definitions. In addition to terms defined in the Strategic Alliance Agreement and on first use in this Reseller Agreement, the terms set forth in this Section 1 will have the meanings set forth below.              “License” means the then-current version of Selling Party’s standard form customer license agreement. The current forms of each Selling Party’s standard forms customer license agreements are attached as Schedule A.              “Marks” means trade names, trademarks, service marks, and logos associated with the Parties or their products or services.              “Online Terms” means shrink-wrap, click-wrap, click-through, click-accept, online, or website terms.              “Order” means any order for Licenses of Selling Party Products or Selling Party Services placed with Selling Party by Reselling Party.              “Sales Agent” means a member of Reselling Party’s standard distribution channels that (a) is appointed by Reselling Party to exercise the rights granted to Reselling Party by Selling Party pursuant to Section 3 and (b) with respect to which the requirements of Section 4.1 have been met.                                 Exhibit D; Page 1 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED              “Reselling Party” means the Party and/or its Affiliate(s) that resells the other Party’s Selling Party Products under this Reseller Agreement.              “Selling Party” means the Party whose Selling Party Products are resold by the other Party under this Reseller Agreement.              “Selling Party Products” means the PTC Products or the RA Products, as the context requires. Selling Party Products includes all Updates.              “Selling Party Services” means Support.              “Subscription” means term Licenses that include (for the same fee) Support for such Licenses for the same period as the applicable License.              “Support” means the provision of maintenance services and technical support by Selling Party with respect to the Selling Party Products that are made available pursuant to the terms and conditions of a License.        Overview. Subject to the terms and conditions of this Reseller Agreement, this Reseller Agreement authorizes Reselling Party to distribute or resell Licenses for the Selling Party Products and the Selling Party Services to Customers directly and indirectly through Sales Agents.        Appointment.              Appointment. Subject to the terms and conditions of the Strategic Alliance Agreement and this Reseller Agreement, Selling Party hereby appoints Reselling Party, and each Reselling Party hereby accepts such appointment (in the case of each of PTC and RA as a Reselling Party, on its behalf and on behalf of its Affiliates), as a non-exclusive reseller of Licenses for the Selling Party Products and the Selling Party Services during the Term and, in the case of RA and its Affiliates as Reselling Party, solely in the Factory SCO and Factory SCP settings.              License; Restrictions. Subject to the terms and conditions of the Strategic Alliance Agreement and this Reseller Agreement, Selling Party hereby grants Reselling Party a non- exclusive, non-transferable (except as set forth herein), royalty free license during the Term and, in the case of RA as Reselling Party, solely in the Factory SCO and Factory SCP settings, to use the Selling Party Products provided to demonstrate the applicable Selling Party Products to potential Customers, to install, configure, implement, service, or support the applicable Selling Party Products, and for purposes of promoting the licensing of such Selling Party Products to such Customers. Reselling Party will not market, promote, provide, or demonstrate any Selling Party Products to any third party other than a bona fide potential Customer, including to any competitors of Selling Party.              Sales Agents. The foregoing rights and licenses may be exercised by Sales Agents, provided that Reselling Party will be fully responsible and liable for the actions, errors and                                 Exhibit D; Page 2 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED  omissions of such Sales Agents. Such Sales Agents will execute an agreement containing license terms consistent with this Reseller Agreement.              Restrictions. Unless otherwise expressly agreed in advance in writing by an authorized representative of Selling Party, neither Reselling Party nor its Sales Agents will solicit or accept orders for Licenses of Selling Party Products or Selling Party Services from resellers or distributors who are not Sales Agents.        Agreements with Sales Agents and Customers.              4.1 Agreements with Sales Agents. In order for any agreement under which Reselling Party engages a Sales Agent to exercise any of the rights and licenses granted under Section 3.1 or Section 3.2 (each, a “Sales Agent Agreement”) to be valid and effective, such Sales Agent Agreement must: (a) be in writing and entered into prior to the engagement of the applicable Sales Agent; (b) terminate upon expiration or termination of this Reseller Agreement; (c) contain terms and conditions that are at least as protective of the Selling Party Products and Selling Party Services as the terms and conditions of this Reseller Agreement, including contractual terms that: (i) grant the Sales Agent a non-transferable right to exercise the rights and/or licenses under Section 3.1 or Section 3.2 that Reselling Party or Sales Agent wishes to pass-through during the Term, subject to all applicable terms of this Reseller Agreement; (ii) require strict compliance with all Applicable Laws, including in connection with distribution of Selling Party Product(s) outside the United States; (iii) prohibit the removal of any copyright or other proprietary notices; (iv) prohibit causing or permitting the reverse engineering, disassembly or decompilation of the Selling Party Product(s); (v) prohibit title to the Selling Party Products or Selling Party Services from passing to the Sales Agent; (vi) disclaim Selling Party’s liability to the Sales Agent for damages, whether direct or indirect, incidental or consequential or for loss of profits, arising in connection with the Sales Agent Agreement, (vii) state that Selling Party disclaims any warranty of any kind directly to the Sales Agent with respect to the Selling Party Product(s) except as expressly set forth in this Strategic Alliance Agreement, including any warranty of performance, title, merchantability, fitness for a particular purpose and non-infringement; and (viii) designate Selling Party as a third party beneficiary under the applicable agreement. In such Sales Agent Agreements, the foregoing references to “Selling Party” may be made by referencing “[Reselling Party’s] licensor[s]”.              Customer Licenses. Reselling Party will require each Customer that purchases a License for a Selling Party Product to enter into a License in a click-wrap or click-through online format, in the then-current form of Selling Party’s License, unless Selling Party agrees to accept the applicable Order under a preexisting License with Selling Party. To the extent any proposed modified terms for an individual Customer’s License differ from then the standard, current form of the License, the Selling Party will cooperate with the Reselling Party and will reasonably approve of such modified terms. Selling Party agrees that the Customers are not employees or agents of Reselling Party and that Reselling Party is not responsible for any failure of the Customers to comply with the License. Selling Party’s sole remedy for any failure of the                                 Exhibit D; Page 3 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED  Customers to comply with the Customer License Agreement will be against the Customer; provided, however, that Reselling Party will reasonably cooperate at the Selling Party’s sole expense to enforce the terms of the applicable agreement with the Customer. Each Party bears all responsibility and liability for the enforceability of any Online Terms a Party seeks to be binding on the Customers or Sales Agents, and any damages or liabilities resulting from the lack of enforceability for such Online Terms.        Support and Professional Services.              Support. Each Party and its Affiliates will provide support to Customers for its Products in accordance with its standard support terms, regardless of which Party or Affiliate sold the applicable License. The Parties agree that the costs associated with providing support, whether at standard support levels or otherwise, will be borne by the Party providing the support.              Professional Services. The Parties agree that (a) Reselling Party will bear all costs associated with any professional services that it offers to Customers and (b) such professional services revenue will not be shared with or owed to the Selling Party.        Limited Warranty. Except as set forth otherwise in the Strategic Alliance Agreement, Selling Party’s limited warranty for each Selling Party Product and Selling Party Service is made solely to the applicable Customer who has obtained the applicable Selling Party Product or Selling Party Service and is as stated in the License. Reselling Party covenants and agrees that it will not attempt to make or pass on to Customers any warranty or representation on behalf of Selling Party or Selling Party’s licensors, other than the limited warranty contained in the License.                       [Remainder of page intentionally left blank.]                                  Exhibit D; Page 4 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED                                   Schedule A                           Customer License Agreements  PTC  Licenses for PTC Products are available at https://www.ptc.com/en/documents/legal-agreements RA  Licenses for RA Products are available at https://www.rockwellautomation.com/global/detail.page?pagetitle=End-User-License- Agreement&ontent type=legal&docid=610342306d3230fdefacbae6a19a0c7a                                  Exhibit D; Page 5 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 406 PROMULGATED UNDER THE SECURITIES                           ACT OF 1933, AS AMENDED                                   EXHIBIT E                      FINANCIAL COMMITMENT EXHIBIT  1.    Commitment. RA commits to pay the following aggregate New ACV (as defined in Schedule 1 to this Exhibit E) to PTC from licenses for PTC Products (a) sold in exercise of the license and resale rights of RA and its Affiliates under the OEM Agreement and Reseller Agreement and (b) purchased by RA and its Affiliates for internal use pursuant to Section 8 of this Agreement:                All Amounts      New ACV Commit to PTC               $USD                Year 1                   [***]                Year 2                   [***]                Year 3                   [***]  “Year 1” will commence on the Original Effective Date and end on September 30, 2019. Year 2 and Year 3 are twelve-month periods ending on September 30, 2020 and September 30, 2021, respectively.  2.    [***] and [***].        (a)   If [***], RA will pay to PTC an amount equal to [***].        (b)   [***].        (c)   [***].        (d)   After [***].        (e)   [***].  3.    Kepware. For any sales of Kepware (whether as ThingWorx Industrial Connectivity under this Agreement or as Kepware products under the existing RA/PTC agreement), the New ACV from such sales will only be counted towards the New ACV Commits to the extent such New ACV, taken together in the aggregate on an annual basis, exceeds the New AVC to PTC during the period of April 1, 2017 through March 31, 2018.  4.    Adjustment due to Adverse Issue. To the extent New ACV Commit for a particular year is not, or cannot reasonably be expected to be met, due to a significant defect, interruption or other issue in or affecting PTC’s business or the PTC Products that causes the PTC Products to                                 Exhibit E; Page 1 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED  substantially not be able to be sold during a significant part of such year, the Parties will discuss in good faith and implement a fair and equitable adjustment to the provisions of this Exhibit E. For illustration purposes only, (a) such issues would include an inability of PTC and/or its Affiliates to timely deliver PTC Products due to a material cybersecurity or similar attack adversely affecting the performance of PTC’s business, products or services and (b) such issues would not include warranty or similar claims made by customers in the ordinary course of business consistent with past practices.  5.    Adjustment due to Breach. If PTC or an Affiliate of PTC breaches its obligations under subclause (C) of Section 5.6(a)(i), RA may provide PTC with notice of the breach. During the 15- day period after RA’s delivery of such notice, the Parties will discuss the breach. If the Parties do not reach written agreement concerning the breach prior to the expiration of such 15-day period, PTC may remove, or cause the applicable Affiliate to remove, the breaching product from the market within 45 days and, if PTC elects not to do so, RA will have the right to (a) terminate this Agreement pursuant to Section 18.2(a), without giving effect to the cure provisions referenced therein, or (b) require that all sales made in breach of subclause (C) of Section 5.6(a)(i) shall be deemed made by RA for purposes of calculating New ACV at a price of [***] of the then current product list price. The foregoing provisions shall be in addition to any and all other remedies available to RA.  6.    Treatment of New ACV Commit Upon Termination of Agreement or Removal of [***].        (a)   [***].        (b)   [***].        (c)   [***]        (d)   [***].        (e)   [***].                                  Exhibit E; Page 2 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED                               Schedule 1 to Exhibit E  Definition New ACV  New ACV   means the annual contract value of a New Subscription order booked during the applicable period, calculated by dividing the total committed contract value of the New Subscription by the term of the New Subscription in days, and then multiplying the quotient by 365; if the committed New Subscription term is less than one year, then the total contract value is New ACV. New ACV will also include the New Perpetual Equalization Credit.  Supporting Definitions  Subscription is a product that includes both a software license and related support over a stated term.  New  Subscription is an order for a Subscription that is not a Renewal Subscription or a Subscription Pricing Increase or a Perpetual License Conversion. New Subscription includes Incremental Subscription.  Renewal Subscription means an order for a Subscription that occurs within the one-year period after expiration of a prior Subscription for the same Customer if the value of the Subscription is the same or lower than the prior Subscription. A term license that is converted to a Subscription for the same value is considered a Renewal Subscription. Renewal Subscriptions will be counted only to the extent that they are an Incremental Subscription.  Incremental Subscription means the incremental amount of Subscription fees on a Subscription order that either increases the annual value of a pre-existing Subscription or renews a preexisting Subscription in an amount that exceeds the annual value of the pre-existing Subscription, other than an increase that is attributable solely to a Subscription Pricing Increase. If an existing Perpetual License is converted to a Subscription, only the portion that is incremental to the existing run rate for Support (calculated at the highest annualized run rate in effect in the preceding twelve months) will be considered an Incremental Subscription.  Subscription Pricing Increase means the incremental amount of Subscription fees on a Subscription order over the previous run rate that is attributable solely to an increase in Subscription pricing or to foreign exchange rate conversion.  Perpetual License means a software license that is not for a defined term (i.e., the license will continue indefinitely until terminated).  Perpetual License Conversion means a conversion of an existing Perpetual License and related Support contract to a Subscription at the same annual Subscription value as the existing annual Support value (calculated at the highest annualized run rate in effect in the preceding twelve months).                                 Exhibit E; Page 3 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED  Support is a product that includes maintenance and technical support for a Perpetual License over a stated term.  Support Pricing Increase means the incremental amount of Support fees on a Support order over the previous run rate that is attributable solely to an increase in Support pricing or to foreign exchange rate conversion.  Support Renewal means an order for Support that occurs within the one-year period after expiration of a prior Support contract for the same Perpetual Licenses.  New Perpetual Equalization Credit means the value to be credited for a new Perpetual License by converting each $1.00 of a new Perpetual License to its deemed subscription equivalent ACV, which initially is [***], then applying the [***] reseller discount, for a resulting credit to New ACV of [***]. Associated new Support is not counted as New ACV.                                  Exhibit E; Page 4 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 406 PROMULGATED UNDER THE SECURITIES                           ACT OF 1933, AS AMENDED                                   EXHIBIT F                                FEES EXHIBIT  1.    PTC Products.        (a)   Discount.              (i)   The discount rate to be applied to sales of licenses of PTC Products       distributed by RA or its Affiliates (either as part of the Combined Offering or on a       standalone basis) is [***] off PTC’s then-current local list price.              (ii)  The discount rate to be applied to purchases of licenses of PTC Products for       its internal use at RA or its Affiliates is [***] off PTC’s then-current local List Price.        (b)   Maximum Term of Subscription. The maximum term of a subscription license for a PTC Product is three (3) years.        (c)   Renewal Pricing. Renewals will be at [***] off PTC’s then current local list price at the time of renewal.        (d)   [***].  2.    RA Products.        (a)   Discount. The discount rate to be applied to sales of licenses of RA Products distributed by PTC or its Affiliates (either as part of the Combined Offering or on a standalone basis) is [***] off RA’s then-current local list price.        (b)   [***].  3.    Payment Terms.        (a)   The payment terms for PTC Products purchased by RA or its Affiliates for its internal use shall be in accordance with the payment terms established between the Parties under their applicable existing agreements.        (b)   The payment terms for OEM distributions under Exhibit C and resale transactions under Exhibit D shall be net [***] from the date of invoice. The selling Party will invoice the purchasing Party for each transaction on or about the start date of the license and, in the event of multi-year licenses, annually (in equal installments) in advance at the beginning of each year of the license.                                  Exhibit F; Page 1 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 406 PROMULGATED UNDER THE SECURITIES                           ACT OF 1933, AS AMENDED                                   EXHIBIT G                           Restrictions Specific to [***]  The following additional terms will apply to [***]:  1.    [***].        1.1   [***].        1.2   [***].        1.3   [***].              (a)   [***].              (b)   [***].              (c)   [***].              (d)   [***].  2.    [***]:        2.1   [***].              (a)   [***];              (b)   [***];        2.2   [***].              (a)   [***];              (b)   [***];        2.3   [***].              (a)   [***]:                    (i)   [***].                    (ii)  [***]:                          (A)  [***].                                 Exhibit G; Page 1 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 24b-2 PROMULGATED UNDER THE SECURITIES                     EXCHANGE ACT OF 1934, AS AMENDED                          (B)  [***]                          (C)  [***]              (b)   [***].                                  Exhibit G; Page 2 ACTIVE/96105181.2 

 

     [***] INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH     CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED        MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE  COMMISSION PURSUANT TO RULE 406 PROMULGATED UNDER THE SECURITIES                           ACT OF 1933, AS AMENDED                                   EXHIBIT H                     RA’S SYSTEMS INTEGRATOR RIGHTS  Capitalized terms not defined in this Exhibit H will have the meaning set forth elsewhere in the Agreement.  1.    General Terms  1.1   RA and its Affiliates will be the preferred systems integrators of all product and service       offerings under this Agreement as set forth herein. Accordingly, in addition to the license       grants and rights set forth in the Agreement, in furtherance of RA and its Affiliates’       preferred integrator status, RA will be provided access to PTC and its Affiliates’ systems       integrator training and other programs. To the extent commercially reasonable and viable,       the Parties will represent RA and its Affiliates as PTC’s preferred systems integrators.  1.2   For purpose of this Exhibit H only, “Services” includes all business consulting, training       and implementation services in the Territories for the products and services set forth in this       Agreement. “Services” does not, purpose of this Exhibit H only, include product or service       support services, pre-sales services, success management, or account management (“Other       Professional Services”).  2.    PTC Obligations  2.1   PTC and its Affiliates will reasonably support RA and its Affiliates in its marketing and       offering its Services, including collaborating with RA Solutions on pilot programs/proof       of concept engagements, and including RA and its Affiliates in co-innovation       opportunities. When RA or its Affiliates engages a PTC service organization for billable       services beyond sales support as contemplated in the Agreement, PTC reserves the right to       charge RA for these services.  2.2   PTC and its Affiliates will provide RA and its Affiliates with information of other, active       partners that could assist in the provisioning of Services.  3.    RA Obligations  RA and its Affiliates will use commercially reasonable efforts to: (i) provide the Services in a professional and competent manner; (ii) offer competitive rates to customers (as reasonably and solely determined by RA and its Affiliates); (iii) engage service partners and contractors as necessary to complete the Services; (iv) collaborate on pre-sales engagements; and, (v) provide Product Feedback (subject to the terms set forth in Section 17 (Confidential Information; Feedback).                                  Exhibit H; Page 1 ACTIVE/96105181.2

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