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Software.Â
THIS AGREEMENT is made by and between C having its
principal place of business at _________[Address] (hereinafter referred
to as "C"), and (Customer Name) having its principal place of
business at _________(Address) (hereinafter referred to as
"Licensee").
RECITALS
WHEREAS, C has licensed to the Licensee certain
software products (the "Licensed Programs") pursuant to a Software
License Agreement entered into _________[date], (the "License
Agreement"), and
WHEREAS, Licensee desires to obtain and C agrees to
provide certain maintenance for such software products in accordance with the
terms and conditions of this Agreement.
NOW THEREFORE, in consideration of the mutual promises
and covenants set forth below, the parties agree as follows:
AGREEMENT
1. TERM AND TERMINATION.
a. The term of this Agreement shall commence upon the
expiration of the Warranty Period (as defined in Paragraph _________ of the
License Agreement) for the Licensed Programs, and shall extend for an initial
period of twelve (12) months. This Agreement shall then automatically extend
for renewal terms of twelve (12) months until terminated by either party upon
sixty (60) days written notice prior to the end of any twelve (12) month term.
The termination of this Agreement shall not terminate the License Agreement.
b. Failure by either party to comply with any material
term or condition under this Agreement shall entitle the other party to give
the party in default written notice requiring it to make good such default. If
the party in default has not cured such default within thirty (30) days of
receipt of notice, the notifying party shall be entitled, in addition to any
other rights it may have, to terminate this Agreement by giving notice
effective immediately. The right of either party to terminate this Agreement
shall not be affected in any way by its waiver of or failure to take action with
respect to any previous default.
2. C SERVICES. C agrees for the charges stated herein
and during the term of this Agreement, to furnish Licensee the following
services for the Licensed Programs and Licensed Program Specifications (the
"Specifications") as defined in Exhibit _________ of the License
Agreement:
a. To correct, to the extent reasonably possible, any
defects in the Licensed Programs which cause the Licensed Programs not to
operate in accordance with the description of the Licensed Programs' function
in the Specifications. If C determines that such defects are due to errors in
such description, C shall issue corrections to the Specifications and shall not
be required to alter the Licensed Programs.
b. To use its best efforts to effect a remedy where
such defects in the Licensed Programs affect the Licensee's day to day
operations.
c. To provide reasonable written and telephone
consultation pertaining to operation and application of the Licensed Programs.
d. To
provide enhancements to the Licensed Programs which are designated by C as
"internal improvements" and which are provided free of charge to C
customers receiving maintenance. The term "enhancement" shall mean
any program, any part thereof, or any materials not included in the Licensed
Programs at the time of execution of this Agreement which modify or improve the
existing functions of the Licensed Programs.
Enhancements do not include new modules which C
designates as software products for which C charges separately.
e. To provide updates to the Specifications as
available. The term "update" shall mean any materials not included in
the Specifications at the time of execution of this Agreement which modify the
description of the Licensed Programs in the Specifications.
3. SERVICE LIMITATIONS. The following services are
outside the scope of this Agreement:
a. Service for individual modules of the Licensed
Programs and Licensed Program Specifications. C will supply service only for
the Licensed Programs and Licensed Specifications in their entirety at the
site(s) location set forth in Exhibit _________ of the License Agreement.
b. Service for C custom programs or other products not
set forth in Exhibit _________ of the License Agreement.
c. Service for Licensed Programs which have been
subject to unauthorized modifications by Licensee.
d. Service for Licensed Programs not maintained to the
latest revision, or the revision prior to the latest revision.
e. Service which becomes necessary due to:
i failure of computer hardware or equipment or
programs not covered by this Agreement;
ii modification of the Licensed Programs by Licensee
if such services would not be necessary if the Licensed Programs were not so
modified;
iii catastrophe, negligence of Licensee, operator
error, improper use of hardware or software or attempted maintenance by
unauthorized persons.
4. LICENSEE RESPONSIBILITIES.
a. Licensee, in connection with the services to be
furnished hereunder, shall be responsible for implementing, at Licensee's
expense, all Licensed Program corrections and Licensed Program enhancements.
b. Licensee agrees to maintain the Licensed Programs
to the latest revision level as soon as practicable and to incorporate all
corrections and enhancements to the Licensed Programs provided by C. Licensee
understands that its failure to incorporate C Licensed Programs corrections and
enhancements will cause the Licensed Programs to be non-conforming and that
subsequent Licensed Programs corrections, enhancements and updates may be
unusable.
c. Licensee acknowledges that all Licensed Programs
and corrections and enhancements to the Licensed Programs provided by C are
subject to the conditions of the License Agreement and Licensee agrees to abide
by those conditions.
d. Licensee shall fully cooperate and assist C in the
provision of services, including allowing full and free access to relevant
hardware, software and other information. Licensee shall also provide C with
reasonably necessary information, consultation and advice.
5. CHARGES.
a. C shall
provide maintenance for the first year for a fee (the "Maintenance
Fee") equal to 15% of the then-current list price for the Licensed
Programs. The Maintenance Fee for each subsequent year shall be increased by an
amount equal to the percentage increase, if any, of the Consumer Price Index
for all Urban Consumers (United States—All Items) as published by the United
States Bureau of Labor Statistics (the "Index"), for the month of the
commencement of the annual maintenance period, over the value of said Index for
the month of
commencement for this Agreement. If the Index itself
is discontinued by the Bureau of Labor Statistics, C and Licensee agree to the
substitution herein of any substitute index published by the United States
government. In the event no such substitute is published, C and Licensee shall
agree on a mutually acceptable alternative index.
b. C will invoice Licensee annually in advance for
Maintenance Fees, provided that C shall invoice the Maintenance Fee for new
modules added to an already-installed copy of the Licensed Programs after the
commencement of the annual maintenance period on a pro-rata basis for the
remainder of the year. Licensee will pay all invoices issued under this
Agreement within thirty (30) days from the date of invoice. Licensee shall pay
a charge of one-half percent (0.5%) per month on all amounts invoiced, due, and
unpaid.
c. Licensee shall have the option to renew the
Maintenance Agreement annually; however, once the Maintenance Agreement has
been terminated by Licensee, Licensee may reinstate:
i Provided no more than six (6) months has elapsed or
more than one (1) release of the Licensed Programs has been issued; and
ii Provided Licensee pays:
(1) The maintenance fee for the year; and
(2) A penalty not to exceed ten percent (10%) of the
yearly maintenance fee for each month during which there was no maintenance
coverage.
d. When, at Licensee's request, C provides on-site
service or service where travel is required, Licensee agrees to pay actual
travel, living and out-of-pocket expenses reasonably incurred by C.
e. All charges hereunder do not include sales taxes or
other taxes of any kind. Licensee agrees to pay, and to indemnify and hold C
harmless from, any sales, business, occupation, value added, excise or similar
tax not based on C's net income, as well as the collection or withholding
thereof, including penalties and interest which C may incur to any state,
federal, foreign, or other governmental entity in respect to this Agreement.
Licensee's obligation to pay such taxes that are incurred during the duration
of this Agreement shall survive the termination of this Agreement.
6. RELOCATION. C shall be under no obligation to
furnish continued service under this Agreement if the Licensed Programs are
moved from their location of initial installation or reinstallation without C's
prior written consent.
7. ELIGIBILITY. Each copy of the Licensed Programs is
eligible for inclusion under this Agreement immediately upon the expiration of
the Warranty Period for such copy.
8. LIMITATION OF LIABILITY.
a. The total of C's liabilities under or in connection
with this Agreement (whether arising from contract or otherwise) is limited to
the Maintenance Fees paid by Licensee under this Agreement during the twelve
(12) months preceding the event giving rise to such liability. C SHALL NOT BE
LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, WHETHER
BASED UPON CONTRACT, TORT OR ANY OTHER LEGAL THEORY, ARISING FROM ITS
PERFORMANCE OR NON-PERFORMANCE UNDER THIS AGREEMENT.
b. Licensee acknowledges and agrees that fee charges
by C for the software and services provided under this Agreement reflect the
allocation of risk provided by the exclusive remedies and limitations of
liability set forth in this Agreement, and that such allocation of risks is a
fundamental benefit of the bargain of each party. Licensee acknowledges that
any modification of the allocation of risk in this Agreement would affect the
fees charged by C, and Licensee therefore agrees, in consideration of the
actual level of fees payable by Licensee hereunder, to the allocation of risk
as set forth in this Agreement.
9. GENERAL.
a. Assignment. No assignment, delegation or
other use of any right or duty under this Agreement may be made by either party
without the prior written consent of the other party, other than by C to a
purchaser of all or substantially all of C's stock or assets or to a third
party pursuant to a merger or other corporate reorganization. Any such
assignment, delegation, or other use attempted to be made without such written
consent shall be void for all purposes.
b. Entire Agreement. This Agreement represents
the entire agreement between the parties, may only be amended by a written
agreement signed by both parties, and supersedes all prior agreements and
understandings with respect to the matters covered by this Agreement.
c. Delays. C is not responsible for failure to
fulfill its obligations under this Agreement due to causes beyond its control,
including, but not limited to war, riots, strikes, lockouts, shortages, labor
conditions, earthquakes, communication failures, or governmental regulations
imposed after the execution of this Agreement.
d. Invalid Provisions. If any provision of this
Agreement is declared to be invalid under any applicable statute or rule of
law, the parties agree that such invalidity shall not affect the remaining
portions of this Agreement.
e. Waiver. The failure of either party to
exercise any right or option that is granted herein or to require the performance
of any term of this Agreement, shall not prevent a subsequent exercise or
enforcement of such term or be deemed a waiver of any subsequent breach of the
same or any other term of this Agreement.
f. Notice. Any notice required or permitted to
be sent under this Agreement shall be delivered by hand, by cable, charges
prepaid, or mailed by registered or certified mail, postage prepaid, return
receipt requested, to the addresses of the parties set forth above or to such
other address as may be furnished in writing to the other party. Notice so sent
shall be deemed effective on personal delivery or on the fourth day following
the date sent.
g. Attorney's Fees. In the event that suit is
brought under this Agreement, reasonable attorney's fees and litigation costs,
including court witness fees, as fixed by a court of competent jurisdiction,
shall be awarded to the prevailing party.
h. Governing Law. This Agreement shall be
governed by and construed in accordance with the laws of _________[state]
without giving effect to principles of conflict of law.
IN WITNESS WHEREOF, this Maintenance Agreement has
been executed and delivered to be effective as of the date set forth in
Paragraph 1.
By:
_________
Title: _________
Date: _________
LICENSEE:
(NAME)
By: _________
Title: _________
Date: _________
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acceptable in one state may not be enforced the same way under the laws of another
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is not engaged in recommending or referring members on the site or making claims
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