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C. On December 6, 1995,Novell and Santa Cruz executed "Modification No. 1." Novell and Santa Cruzsubsequently executed "Amendment No. So as to bridgethe value hole and consummate the transaction, Novell and Santa Cruz agreedthat Novell would obtain Santa Cruz inventory and retain specific rights asprotection. For example (and as discussed further underneath), Novell retained theright to obtain royalty payments underneath SVRX licenses, prior approval rightsrelating to new SVRX licenses and amended SVRC licenses, the proper to directSanta Cruz to just take certain steps referring to SVRX licenses and the ideal toconduct audits with the SVRX license system. SCO, having said that, denies Each and every and each other allegation of fifteen; also to the extent fifteen purports to condition a lawful conclusion, states that no response is needed.sixteen A person this sort of obligation that Santa Cruz assumed beneath the APA wasresponsibility for administering the collection of royalty payments fromSVRX licenses. The APA presented that Santa Cruz shall collect and pass throughto Novell 100% with the SVRX royalties. In return, Novell agreed to pay SantaCruz an administrative rate of 5% of Individuals royalty quantities. SCO wasn't a celebration into the APA or its Amendments. SCO wasoriginally incorporated on August 21, 1998 as a firm called CalderaSystems, a developer and service provider of Linux centered business enterprise solutions. SCOpurports to be the successor in curiosity to Santa Cruz beneath the APA and itsAmendments. 21D.

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Soon after this August of 2000 Tale announcing IBM was killing Venture Monterey and providing us the identify of its AIX successor, 5L, SCO experienced on its Web-site a webpage extolling the virtues of AIX 5L and its openness, and its "", as late as 2001. So they knew. They usually knew IBM was undertaking this back when it transpired, since they all did it with each other as Job Monterey, and then from this web page, it appears SCO approved of and supported Project Monterey's successor AIX 5L also.

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