Common use of License Option Clause in Contracts

License Option. 6.1 Momentum hereby grants to PeopleSoft a License Option to acquire a license to exclusively commercialize each Momentum Product . This License Option shall be exercisable on a worldwide basis at any time during the License Option Term. Upon exercise of the License Option, PeopleSoft shall obtain a perpetual, exclusive license (with the right to sublicense through multiple tiers of sublicense) to develop, make, have made, use, support, market, enhance and distribute the Licensed Product subject to the obligation to make Product Payments as set forth in Exhibit A (section 3 (a)) hereto. PeopleSoft shall also have the right to buyout the Product Payments as set forth in Exhibit A (Section 3 (b)). 6.2 Upon exercise of the License Option with respect to a Momentum Product, sections 2, 3, 4 and 5 above shall no longer apply with respect to such Momentum Product and PeopleSoft shall assume sole and full responsibility for any product development, support, training, consulting, bug fixes, modifications and enhancements with respect to the Licensed Product. 6.3 At the end of the License Option Term for a Momentum Product, if PeopleSoft has not exercised its License Option with respect to said Momentum Product, (1) PeopleSoft shall grant to Momentum a perpetual, nonexclusive license to market, distribute and sublicense the PeopleSoft Technology, only to the extent incorporated into such Momentum Product, to all third parties that are not then Excluded Parties, subject to the terms and conditions of PeopleSoft's then-standard end user license agreement. The royalty rate payable by Momentum to PeopleSoft for such distribution shall be substantially similar to PeopleSoft's then current royalty rates which PeopleSoft receives from third parties marketing PeopleSoft Technology; and (2) Momentum shall grant to PeopleSoft a perpetual, royalty-free, non-exclusive license to (a) license the then most recent version of such Momentum Product, and any new releases, Updates or enhancements thereto, to any End Users granted licenses by PeopleSoft pursuant to the Pre-Release License, and (b) use a reasonable number of copies of Momentum Products and any new releases, Updates or enhancements thereto, for internal use, training and support purposes.

License Option. 6.1 Momentum hereby grants to PeopleSoft a License Option to acquire a license to exclusively commercialize each Momentum Product . This License Option shall be exercisable on a worldwide basis at any time during the License Option Term. Upon exercise of the License Option, PeopleSoft shall obtain a perpetual, exclusive license (with the right to sublicense through multiple tiers of sublicensesublicensors) to develop, make, have made, use, support, market, enhance and distribute the Licensed Product subject to the obligation to make Product Payments as set forth in Exhibit A (section 3 (a)) hereto. PeopleSoft shall also have the right to buyout the Product Payments as set forth in Exhibit A (Section 3 (b)). 6.2 Upon exercise of the License Option with respect to a Momentum Product, sections 2, 3, 4 and 5 above shall no longer apply with respect to such Momentum Product and PeopleSoft shall assume sole and full responsibility for any product development, support, training, consulting, bug fixes, modifications and enhancements with respect to the Licensed Product. 6.3 At the end of the License Option Term for a Momentum Product, if PeopleSoft has not exercised its License Option with respect to said Momentum Product, (1) PeopleSoft shall grant to Momentum a perpetual, nonexclusive license to market, distribute and sublicense the PeopleSoft Technology, only to the extent incorporated into such Momentum Product, to all third parties that are not then Excluded Parties, subject to the terms and conditions of PeopleSoft's then-standard end user license agreement. The royalty rate payable by Momentum to PeopleSoft for such distribution shall be substantially similar to PeopleSoft's then current royalty rates which PeopleSoft receives from third parties marketing PeopleSoft Technology; and (2) Momentum shall grant to PeopleSoft a perpetual, royalty-free, non-exclusive license to (a) license the then most recent version of such Momentum Product, and any new releases, Updates or enhancements thereto, to any End Users granted licenses by PeopleSoft pursuant to the Pre-Release License, and (b) use a reasonable number of copies of Momentum Products and any new releases, Updates or enhancements thereto, for internal use, training and support purposes.