UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
8-K
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
August 7, 2001
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Date of Report (Date of earliest event reported)
APPIANT TECHNOLOGIES, INC.
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(Exact Name of Registrant as Specified in its Charter)
Delaware 0-21999 84-1360852
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(State or other Jurisdiction (S.E.C. File Number) (IRS Employer
of Incorporation) Identification No.)
6663 Owens Drive
Pleasanton, CA 94588
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(Address of principal executive offices, including zip code)
(925) 251-3200
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(Registrant's telephone number, including area code)
Not applicable
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(Former name or former address, if changed since last report)
Item 5. Other events.
On August 15, 2001, Appiant Technologies, Inc. ("Appiant") executed a
Settlement Agreement and Release, ("Settlement Agreement") effective as of July
27, 2001, with Cisco Systems, Inc. ("Cisco") and Cisco Systems Capital ("Cisco
Capital"). Cisco and Cisco Capital are referred together as Cisco Corporations.
By a software agreement dated April 24, 2000, Cisco licensed to
Appiant certain software product called uOne (the "uOne Product"). To acquire
10,000 licenses of the uOne Product, Cisco Capital loaned Appiant Ten Million
Dollars ($10,000,000) at the cost of Ten Million Dollars ($10,000,000) (the
"Leased Licenses"). Appiant paid Three Million Dollars ($3,000,000) to Cisco
Capital as a down payment requirement, Seven Million Dollars ($7,000,000),
therefore, remained due to Cisco Capital from Appiant.
On April 27, 2001 Cisco announced it's decision to sell its Unified
Communication Software Business (UCSBU), which developed the uOne product. To
resolve any issues relating to Cisco's decision to sell its UCSBU, Cisco
Corporations and Appiant executed a Settlement Agreement. The Settlement
Agreement provides that Cisco Capital will convert Appiant's down payment of
Three Million Dollars ($3,000,000) into a software license fee for "Paid Up"
uOne licenses. In addition, Cisco Capital forgave approximately Seven Million
Dollars ($7,000,000) for the remaining sums owed for the Lease Licenses.
Under the terms of the Settlement Agreement, Appiant may use the Paid
Up licenses and Cisco will maintain its support for nine months (the "Transition
Period") while Appiant evaluates its options of transitioning to the vendor that
purchased the UCSBU or pursuing other opportunities. Cisco also loaned Appiant
Three Million Dollars ($3,000,000) (the "Cisco Loan") for use during the
Transition Period. On or before the end of the Transition Period, Appiant may
elect to continue using the Paid Up licenses and repay the Cisco Loan, or return
the Paid Up licenses, in which case, the Cisco Loan will be deemed to have been
paid in full and completely discharged.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Appiant Technologies, Inc.
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August 21, 2001 By: /s/ Sandra Williams Smith
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Sandra Williams Smith
Corporate Secretary