Master Trademark Ownership And License Agreement

Exhibit 2.5


MASTER TRADEMARK OWNERSHIP AND LICENSE AGREEMENT


BETWEEN


3COM CORPORATION


AND PALM, INC.


Effective as of February 26, 2000


MASTER TRADEMARK OWNERSHIP AND LICENSE AGREEMENT


TABLE OF CONTENTS


PAGE
---- ARTICLE 1 DEFINITIONS.................................................................................................1


1.1 AUTHORIZED DEALERS..................................................................................1
1.2 COLLATERAL MATERIALS................................................................................1
1.3 CORPORATE IDENTITY MATERIALS........................................................................1
1.4 DISTRIBUTION DATE...................................................................................2
1.5 LICENSED MARKS......................................................................................2
1.6 MAINTENANCE CONTRACTS...............................................................................2
1.7 MARK................................................................................................2
1.8 MASTER SEPARATION AND DISTRIBUTION AGREEMENT........................................................2
1.9 PALM BUSINESS.......................................................................................2
1.10 PALM BUSINESS MARKS.................................................................................2
1.11 PALM BUSINESS MARKS DATABASE........................................................................2
1.12 PALM BUSINESS PRODUCTS..............................................................................2
1.13 PERSON..............................................................................................2
1.14 QUALITY STANDARDS...................................................................................3
1.15 SELL................................................................................................3
1.16 SEPARATION DATE.....................................................................................3
1.17 SUBSIDIARY..........................................................................................3
1.18 THIRD PARTY.........................................................................................3
1.19 TRADEMARK USAGE GUIDELINES..........................................................................3


ARTICLE 2 OWNERSHIP...................................................................................................3


2.1 OWNERSHIP OF PALM BUSINESS MARKS....................................................................3
2.2 PRIOR GRANTS........................................................................................4
2.3 ASSIGNMENT DISCLAIMER...............................................................................4


ARTICLE 3 LICENSES....................................................................................................4


3.1 LICENSE GRANT.......................................................................................4
3.2 LICENSE RESTRICTIONS................................................................................4
3.3 LICENSEE UNDERTAKINGS...............................................................................5
3.4 NON-TRADEMARK USE...................................................................................5
3.5 RESERVATION OF RIGHTS...............................................................................5
3.6 THIRD PARTY LICENSES................................................................................6


ARTICLE 4 PERMITTED SUBLICENSES.......................................................................................6


4.1 SUBLICENSES.........................................................................................6
4.2 AUTHORIZED DEALERS'USE OF MARKS.....................................................................6
4.3 ENFORCEMENT OF AGREEMENTS...........................................................................6


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(continued)


ARTICLE 5 TRADEMARK USAGE GUIDELINES..................................................................................7


5.1 TRADEMARK USAGE GUIDELINES..........................................................................7
5.2 TRADEMARK REVIEWS...................................................................................7


ARTICLE 6 TRADEMARK USAGE GUIDELINE ENFORCEMENT.......................................................................7


6.1 INITIAL CURE PERIOD.................................................................................7
6.2 SECOND CURE PERIOD..................................................................................7
6.3 FINAL CURE PERIOD...................................................................................8


ARTICLE 7 QUALITY STANDARDS...........................................................................................8


7.1 GENERAL.............................................................................................8
7.2 QUALITY STANDARDS...................................................................................8
7.3 QUALITY CONTROL REVIEWS.............................................................................8
7.4 PRODUCT DISCONTINUATION.............................................................................8


ARTICLE 8 QUALITY STANDARD ENFORCEMENT................................................................................9


8.1 INITIAL CURE PERIOD.................................................................................9
8.2 SECOND CURE PERIOD..................................................................................9
8.3 FINAL CURE PERIOD...................................................................................9


ARTICLE 9 PROTECTION OF LICENSED MARKS................................................................................9


9.1 OWNERSHIP AND RIGHTS................................................................................9
9.2 PROTECTION OF MARKS.................................................................................9
9.3 SIMILAR MARKS......................................................................................10
9.4 INFRINGEMENT PROCEEDINGS...........................................................................10


ARTICLE 10 TERMINATION...............................................................................................11


10.1 TERM...............................................................................................11
10.2 VOLUNTARY TERMINATION..............................................................................11
10.3 SURVIVAL...........................................................................................11
10.4 OTHER TERMINATION..................................................................................11


ARTICLE 11 DISPUTE RESOLUTION........................................................................................11


11.1 MEDIATION..........................................................................................11
11.2 ARBITRATION........................................................................................11
11.3 COURT ACTION.......................................................................................12
11.4 CONTINUITY OF SERVICE AND PERFORMANCE..............................................................12


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(continued)


ARTICLE 12 LIMITATION OF LIABILITY...................................................................................12


ARTICLE 13 MISCELLANEOUS PROVISIONS..................................................................................13


13.1 DISCLAIMER.........................................................................................13
13.2 NO IMPLIED LICENSES................................................................................13
13.3 INFRINGEMENT SUITS.................................................................................13
13.4 NO OTHER OBLIGATIONS...............................................................................13
13.5 ENTIRE AGREEMENT...................................................................................13
13.6 GOVERNING LAW......................................................................................14
13.7 DESCRIPTIVE HEADINGS...............................................................................14
13.8 NOTICES............................................................................................14
13.9 NONASSIGNABILITY...................................................................................15
13.10 SEVERABILITY.......................................................................................15
13.11 FAILURE OR INDULGENCE NOT WAIVER; REMEDIES CUMULATIVE..............................................15
13.12 AMENDMENT..........................................................................................15
13.13 COUNTERPARTS.......................................................................................15


EXHIBIT A: LICENSED MARKS


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MASTER TRADEMARK OWNERSHIP AND LICENSE AGREEMENT


This Master Trademark Ownership and License Agreement (the "Agreement") is effective as of February 26, 2000 (the "Effective Date"), between 3Com Corporation, a Delaware corporation ("3Com"), having an office at 5400 Bayfront Plaza, Santa Clara, California, 95052 and Palm, Inc., a Delaware corporation ("Palm"), having an office at 5470 Great America Parkway, Santa Clara, California, 95052.


WHEREAS, the Board of Directors of 3Com has determined that it is in the best interest of 3Com and its stockholders to separate 3Com's existing businesses into two independent businesses;


WHEREAS, as part of the foregoing, 3Com and Palm's predecessor, Palm Computing, Inc., a California Corporation, have entered into a Master Separation and Distribution Agreement (as defined below) which provides, among other things, for the separation of certain Palm assets and Palm liabilities, the initial public offering of Palm stock, the distribution of such stock and the execution and delivery of certain other agreements in order to facilitate and provide for the foregoing;


WHEREAS, the parties desire that 3Com assign and transfer to Palm the Palm Business Marks (as defined below); and


WHEREAS, the parties further desire that 3Com license the Licensed Marks (as defined below) to Palm after the separation of the Palm businesses.


NOW, THEREFORE, in consideration of the mutual promises of the parties, and of good and valuable consideration, it is agreed by and between the parties as follows:


ARTICLE 1
DEFINITIONS


For the purpose of this Agreement, the following capitalized terms are defined in this Article 1 and shall have the meaning specified herein:


1.1 AUTHORIZED DEALERS. "Authorized Dealers" means any distributor, dealer, OEM customer, VAR customer, VAD customer, systems integrator or other agent that on or after the Separation Date is authorized to market, advertise, sell, lease, rent, service or otherwise offer Palm Business Products. Palm will provide 3Com a list of the then current Authorized Dealers within a reasonable period after 3Com's request.


1.2 COLLATERAL MATERIALS. "Collateral Materials" means all packaging, tags, labels, advertising, promotions, display fixtures, instructions, warranties and other materials of any and all types associated with the Palm Business Products that are marked with at least one of the Licensed Marks.


1.3 CORPORATE IDENTITY MATERIALS. "Corporate Identity Materials" means materials that are not products or product-related and that Palm may now or hereafter use to


communicate its identity, including, by way of example and without limitation, business cards, letterhead, stationery, paper stock and other supplies, and signage on real property and buildings.


1.4 DISTRIBUTION DATE. "Distribution Date" has the meaning set forth in the Master Separation and Distribution Agreement.


1.5 LICENSED MARKS. "Licensed Marks" means the Marks set forth on Exhibit A hereto.


1.6 MAINTENANCE CONTRACTS. "Maintenance Contracts" means agreements pursuant to which Palm, its Subsidiaries or its or their Authorized Dealers or their designees provide repair and maintenance services (whether preventive, diagnostic, remedial, warranty or non-warranty) in connection with Palm Business Products, including without limitation agreements entered into by 3Com prior to the Separation Date and assigned to Palm pursuant to the Master Separation and Distribution Agreement or the Ancillary Agreements (as such term is defined in the Master Separation and Distribution Agreement).


1.7 MARK. "Mark" means any trademark, service mark, trade name, domain name, and the like, or other word, name, symbol or device, or any combination thereof, used or intended to be used by a Person to identify and distinguish the products or services of that Person from the products or services of others and to indicate the source of such goods or services, including without limitation all registrations and applications therefor throughout the world and all common law and other rights therein throughout the world.


1.8 MASTER SEPARATION AND DISTRIBUTION AGREEMENT. "Master Separation and Distribution Agreement" means the Master Separation and Distribution Agreement between the parties.


1.9 PALM BUSINESS. "Palm Business" means the business and operations of Palm.


1.10 PALM BUSINESS MARKS. "Palm Business Marks" means the mutually agreed Marks listed in the Palm Business Marks Database.


1.11 PALM BUSINESS MARKS DATABASE. "Palm Business Marks Database" means the mutually agreed Palm Business Marks Database as of the Separation Date, as it may be updated by the parties upon mutual agreement to add additional Marks as of the Separation Date.


1.12 PALM BUSINESS PRODUCTS means any and all products of the Palm Business commercially released prior to the Separation Date.


1.13 PERSON. "Person" means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization, and a governmental entity or any department, agency or political subdivision thereof.


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1.14 QUALITY STANDARDS. "Quality Standards" means standards of quality applicable to the Palm Business Products, as in use immediately prior to the Separation Date, unless otherwise communicated in writing by 3Com from time to time.


1.15 SELL. To "Sell" a product means to sell, transfer, lease or otherwise dispose of a product. "Sale" and "Sold" have the corollary meanings ascribed thereto.


1.16 SEPARATION DATE. "Separation Date" means 12:01 a.m., Pacific Time, February 26, 2000, or such other date as may be fixed by the Board of Directors of 3Com.


1.17 SUBSIDIARY. "Subsidiary" of any Person means a corporation or other organization whether incorporated or unincorporated of which at least a majority of the securities or interests having by the terms thereof ordinary voting power to elect at least a majority of the board of directors or others performing similar functions with respect to such corporation or other organization is directly or indirectly owned or controlled by such Person or by any one or more of its Subsidiaries, or by such Person and one or more of its Subsidiaries; provided, however, that no Person that is not directly or indirectly wholly-owned by any other Person shall be a Subsidiary of such other Person unless such other Person controls, or has the right, power or ability to control, that Person. For purposes of this Agreement, Palm shall be deemed not to be a subsidiary of 3Com.


1.18 THIRD PARTY. "Third Party" means a Person other than 3Com and its Subsidiaries and Palm and its Subsidiaries.


1.19 TRADEMARK USAGE GUIDELINES. "Trademark Usage Guidelines" means the guidelines for proper usage of the Licensed Marks, as in use immediately prior to the Separation Date, as such guidelines may be revised and updated in writing by 3Com from time to time.


ARTICLE 2
OWNERSHIP


2.1 OWNERSHIP OF PALM BUSINESS MARKS. The parties agree that Palm hereby retains ownership of all right, title and interest in and to ...