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Form #741Dealer Computer Software License Agreement
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or any other commercial use is prohibited. This includes reposting forms from this
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agreement to hold this site, its officers, employees and any contributors to this
site harmless for any damage you might incur from your use of any submissions contained
on this site. If you do not agree to the above terms, please do not proceed.
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points to consider in different transactions. They are offered with the understanding
that no legal advice, accounting, or other professional service is being offered
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acceptable in one state may not be enforced the same way under the laws of another
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Dealer computer software
license agreement.
This Agreement is dated _________[date], and
made by and between _________[name of marketing company] of _________[address]
("Dealer") and _________[name of person who created
software-licensor] ("Licensor"), with offices at _________[address,
including County].
Whereas, Dealer wishes to obtain the right to sell,
lease and distribute Licensor's computer software known as _________[name of
software program], ("Software"), which contains _________[list
contents]; and
Whereas, Licensor desires to grant the license to
Dealer on the terms and conditions set forth in this Agreement;
The parties, in reliance on and in consideration of
the mutual promises and conditions contained in this Agreement, agree as
follows:
I. DEFINITIONS
A. "Software" means the computer software
known as _________ developed by Licensor as it presently exists or may be
enhanced or modified during the term of this Agreement. The software consists
of _________[describe software]. The parties acknowledge that some
typographical and grammatical errors may exist in the material. However, these
errors shall not be considered errors or defects in the software.
B. "Dealer" includes any and all agents,
employee and independent contractors of Dealer or Dealer's company or business
entity used to market the software.
C. "Users" are persons, firms, corporations
or entities that lease or purchase the software subject to this Agreement.
II. RIGHTS GRANTED
A. Licensor grants to Dealer an exclusive license and
right to lease and/or sell copies of the software known as _________, subject
to the terms and conditions contained in this Agreement and any and all
previous licensing rights and agreements.
B. Dealer agrees to abide by and conform to any and
all agreements contained in the User's Software Licensing Agreement, a copy of
which is attached to this Agreement as Exhibit "A" and incorporated
in this Agreement for all practical purposes as if recited at length verbatim.
Dealer agrees not to change or modify the User's License Agreement and all
sales or leases by Dealer shall conform to the User's License Agreement. Dealer
agrees not to give, lend, sell, lease or allow use of the software until the
intended User has executed the User License Agreement attached to this
Agreement in Exhibit "A."
C. Any and all licenses granted in this Agreement are
subject to any and all prior and superior legal rights possessed by _________[name
of licensor].
_________[Add, if appropriate:
D. The license granted in this Agreement is also
subject to the previous license rights given to _________[name of prior
licensee] and any other prior Licensees.]
III. OBLIGATION OF
LICENSOR
A. Licensor agrees to provide the software to Dealer.
B. Licensor will, upon notice, promptly correct any
errors or defects found in the software.
C. Licensor will provide Dealer with updates and/or
changes to the software as they become available.
D. Licensor will provide reasonable training to Dealer
and its agents to enable them adequately to understand the software program.
E. This Agreement shall not be construed to require
Licensor to modify or enhance the software other than for the correction of
errors.
IV. OBLIGATIONS OF
DEALER
A. Dealer shall use its best efforts to sell, lease
and promote the software and provide such service to Users as will enable
Dealer to develop and maintain the goodwill of Users and prospective Users.
B. Dealer agrees to recruit, train and pay for an
adequate sales and marketing force to sell and distribute the software in order
to meet the quota set forth. Dealer agrees to pay for any and all costs and
expenses incurred in advertising, marketing, and selling the software to Users.
Dealer agrees to devote its best efforts to selling and marketing the software
described above. Dealer agrees to provide prompt, courteous and professional
efforts to market the software and agrees to indemnify Licensor for any and all
consumer complaints and problems associated with the sale or marketing of the
software. Dealer shall attend trade shows, association meetings, and other
marketing events to promote, distribute and sell the software referred to in
this Agreement.
C. Dealer shall not make any false or misleading
statements, representations, or comments in order to sell, lease or distribute
the software. Dealer shall cooperate with Licensor to resolve any and all User
complaints concerning the software and take such action as Licensor may
reasonably request to resolve the complaints, if any, and cooperate in the
conduct of litigation, if any, involving the software.
D. Dealer shall carry and provide Licensor with a copy
of Dealer's liability, errors and omissions policy as Licensor may reasonably
require covering hazards, injuries, losses, damages, employees, theft,
embezzlement, misrepresentation, errors and omissions.
E. Dealer will furnish at its own cost sales and
promotional materials such as sales literature, technical data, instruction
material, advertising, and promotion in order to reasonably meet the quota
referred to in this Agreement. Dealer will not copy the software in any manner
outside of the terms or scope of this Agreement and recognizes that to do so is
a violation of this Agreement.
F. Dealer will be required at all times to maintain on
its staff a person technically qualified to answer questions regarding the
operation and use of the software.
G. Dealer shall submit monthly reports to Licensor on
the number and type of products or licenses sold or distributed each month.
Dealer shall furnish to Licensor at the end of each month full, clear, complete
and accurate records identifying the names, addresses, and telephone numbers of
customers, and the product and/or products licensed and sold. Dealer shall make
its sales and business records available to Licensor during normal business
hours, on reasonable notice, and shall submit sales reports at the end of each
month. The reporting period shall commence on the last day of each month that
this Agreement is in effect.
H. Dealer will sell the software at a fee of $_____
for and on the terms and conditions stated in the Order Agreement attached to
this Agreement as Exhibit "B," and shall not deviate from this price
without written approval from Licensor. All payment for sales will be at the
business offices of Licensor. All orders will be turned in to the business
office of Licensor. Licensor shall be responsible for preparing, distributing
and packaging the software.
I. All sales and leases shall be processed through
Licensor's office and all checks or payment for the software shall be made
payable to _________[Licensor or other appropriate person]. Dealer
agrees not to accept or take payment for the software in any other name. Dealer
will process all sales and leases in accordance with Licensor's procedures.
J. Dealer shall have not authority to act for or on
behalf of Licensor except as provided for in this Agreement. No other
authority, power, or use is granted or implied. Dealer and its agents,
employees or contractors may not make, revise, alter, depart from or otherwise
divert the terms and conditions, prices or policies which are set forth in the
attachments to this Agreement. Dealer and its agents, contractors, or employees
may not incur any debt, obligation, expense or other liability of any kind
against Licensor without the express written approval of Licensor, nor may
Dealer and its agents, employees, or contractors receive any money owed to
Licensor for the sales of the software contemplated in this Agreement without
the express written permission of Licensor.
K. In the performance of work, duties, and obligations
under this Agreement it is agreed that Dealer shall not be considered an
employee of the company, but rather shall be considered an independent
contractor. Licensor does not have any control, direction or dominion over
Dealer other than according to the terms of this Agreement. Dealer represents
to licensor that it is not under any impediment, restraint or disability that
would prohibit, hinder or in any way impair its working ability or relationship
to perform the obligations and agreements contemplated in this Agreement and
that no prior restrictive trade covenants or other legal restraints exist which
would cause Dealer to be in breach of this Agreement.
V. ROYALTIES
A. Licensor agrees to pay a fee and/or royalty to
Dealer in the amount of _____% of the gross proceeds received from the sale of
software.
B. Any and all charge-backs, refunds, credits, checks
returned for insufficient funds or under stop payment orders, or other
difficulties in collecting or uncollectibles are exempt from the royalty fee.
C. Dealer will be paid on the _________ day of each
week for all monies turned in before _________ p.m. on that day.
D. No fee shall be paid for software provided for editorial
review, promotional purposes, test purposes, consumer customer support
supplements and other purposes reasonably required to market, promote and
support the software or for copies of the software distributed at no cost to
replace diskettes having errors or defects.
VI. WARRANTIES AND
COPYRIGHTS
A. Licensor represents and warrants that it is the
owner of the rights to the software; and that to the best of licensor's
knowledge this Agreement does not infringe upon any patent, trademark,
copyright, or trade secret of other parties.
B. Dealer represents and warrants that neither it nor
its authorized agents will make false claims or omit to state material
information to prospective purchasers or Users of the software.
C. Dealer agrees to indemnify and hold Licensor
harmless for any and all losses and expenses caused by any breach or
misrepresentation, noncompliance, injuries, or damages caused by its personnel.
D. Dealer agrees to conspicuously indicate copyright
notices on any and all copies of the software and/or advertising, indicating
that the same is subject to the copyright [Add _________[name of holder of
copyright, if different from Licensor]] and ownership of Licensor.
VII. ENFORCEMENT OF
RIGHTS
Each party shall notify the other of any possible infringement
of the copyrights or breach of this Agreement or the User Agreement in Exhibits
"A" and "B" by third parties and shall assist and cooperate
in resolving any and all breaches or infringements.
VIII. TERM AND QUOTA
A. Dealer and Licensor mutually agree that this
Agreement will remain in effect from _________[date] until _________[date],
at which time it may be automatically renewed from year to year if Dealer
notifies Licensor at least thirty (30) days prior to the original expiration
date or any annual renewal date that this Agreement will be renewed, unless
this Agreement is terminated earlier by the following occurrences:
1 Failure of Dealer to meet and maintain an average
weekly gross sales volume of $_____. The quota commences on _________[date]
and shall continue until this Agreement is terminated;
2 Death or incapacity of Dealer or a material change
in ownership of Dealer's business, provided, however, that Dealer's family
members may continue this Agreement if Dealer dies;
3 Bankruptcy or insolvency of Dealer's business;
4 Dealer's lack of financial resources to maintain
adequate facilities, inventory or service for Licensor's customers;
5 Dealer's breach of any covenant in this Agreement.
Dealer ceases to sell the software for any reason, Dealer shall provide prompt
written notice of its decision to Licensor and shall return to Licensor any and
all promotional materials, advertising materials, training materials, copies of
Licensor's publications, and other property relating to this Agreement. Unit
royalties dues on remaining copies of the software will be paid in accordance
with this Agreement.
B. Licensor may terminate this Agreement:
1 If Dealer fails to comply with the terms of this
Agreement;
2 If Dealer fails to fully advise Licensor of all
sales or leases of the Licensor's software;
3 If Dealer makes claims or representations that are
untrue or libelous;
4 If any causes of action are filed against Licensor
due to Dealer's acts or omissions or if unreasonable complaints, lawsuits or
claims are filed against Licensor. Licensor shall give Dealer written notice to
terminate this Agreement, and the termination shall be effective ten (10) days
from the date of the notice.
C. In the event of cancellation or expiration of the
term of this Agreement, whichever shall be the case, the exclusive license
conveyed in this Agreement shall cease and shall then belong exclusively to
Licensor or its nominee.
IX. NONCOMPETITION
PROVISIONS
A. The parties agree that the covenants, agreements
and restrictions ("this covenant") contained in this agreement are
necessary to protect the business goodwill, business interests and proprietary
rights of _________, and that the parties have independently discussed, reviewed
and had the opportunity of legal counsel to consider this agreement and now
agree and stipulate to the following:
1 This covenant is an integral part of an enforceable
agreement _________[employment agreement], and the covenants contained
in this agreement were made at the time this agreement was consummated by the
parties.
2 This covenant is fair and reasonable in its:
a geographical area;
b length of time; and
c scope of activity being restrained.
B. Restrictive Covenants. Dealer expressly agrees that
while this Agreement is in effect, and for a period of two years following
termination of this Agreement, Dealer will not, directly or indirectly, without
prior consent of Licensor, as an employee, agent, proprietor, partner, broker,
stockbroker, stockholder, officer, director, or otherwise use special knowledge
or training or divulge trade secrets to any person or to any competitive
business that would compete directly or indirectly with Licensor's business.
C. The term "competitive business" shall
include, but shall not be limited to, any business or development that involves
the marketing or selling of _________[describe software].
1 Dealer further expressly agrees that it will not use
for its own benefit or disclose to any person any information, including
confidential information, of the Licensor that Dealer has obtained or learned
during the existence or performance of this Agreement.
2 Dealer's agreements contained in this article shall
be construed as agreements independent of any other provision of this
Agreement. The existence of any claim or cause of action by the Dealer against
the Licensor, whether predicated on this Agreement or otherwise, shall not
constitute a defense to the enforcement by the Licensor of the agreements
contained in this section.
D. The parties agree and acknowledge that the Licensor
has spent considerable sums of money and time in developing the software
described in this Agreement, and that the software is worth a considerable
amount of money and therefore is a benefit which the Licensor seeks to protect,
and the protection is agreed and acknowledged by both parties as being
reasonable consideration for establishing this restrictive covenant.
E. The parties agree that it may be difficult and
impractical to calculate or ascertain actually or definitely the damages that
the Licensor may suffer if Dealer breaches this Agreement. Accordingly, the
parties agree to the sum of $_____, or actual damages proved at trial, as
liquidated damages which would result from a breach of this provision, together
with reasonable attorney's fees required to enforce this Agreement. Licensor
may also resort, without prejudice to this liquidated damages provision, to any
other appropriate legal remedy, by injunction or otherwise, and if any of the
foregoing restrictions in this provision are held to be invalid, they shall be
deemed to be severable and shall not defeat the remaining provisions in this
Agreement.
F. Property Rights of Licensor. Dealer recognizes that
Licensor's software requires a confidential relationship between it and its
employees, and the fullest protection and confidential treatment of its trade
secrets, software, know-how, products and other business knowledge which have
been developed, conceived and learned by Dealer during the course of this
Agreement. Accordingly, Dealer agrees that, during the terms of this Agreement,
Dealer will keep secret and confidential such information, trade secrets,
products and know-how and will not use the same to aid itself or others, either
directly or indirectly. Dealer further agrees that, upon termination of this
Agreement, it will surrender to the Licensor all of its papers, software,
information, documents, writings, and other properties in its possession which
relate to this software agreement, including both originals and any copies of
such material. Dealer also agrees that it will not withhold any of the
information. All documents, software diskettes, customer lists, and any other
records and books relating in any manner whatsoever to the customer and
prospective customers of Licensor shall be the exclusive property of Licensor.
All such records shall be immediately returned by Dealer to the Licensor upon
the termination of this Agreement. Dealer shall also return to Licensor any and
all software diskettes, binders, and the like upon the termination of this
Agreement.
G. Soliciting Customers After Termination of This
Agreement. Dealer shall not, for a period of one (1) year immediately following
the termination of this Agreement, regardless of the reasons or cause for the
termination and regardless of the party causing the termination, either
directly or indirectly:
1 Make known to any person, firm or corporation the
names and addresses of any of the customers of Licensor or any other
information pertaining to them; or
2 Call on, solicit or take away any of the customers
of the Licensor on whom Dealer called or with whom it became acquainted during
the term of the Agreement either for himself or for any other person, firm or
corporation.
X. MISCELLANEOUS
PROVISIONS
A. This Agreement shall be subject to and governed by
the laws of the State of _________[state]. Any and all obligations or
payments due under this Agreement shall be performed in _________[city],
_________ County, _________[state]. The parties agree that for venue
purposes any and all lawsuits, disputes, causes of action, or arbitrations
shall be in _________ County, _________[state].
B. This Agreement is the entire agreement between the
parties and supersedes all previous letters, understandings or oral agreements
between Licensor and Dealer which relate to the licensed software.
C. The waiver of any breach of any covenants and
conditions of this Agreement shall not hinder or otherwise prevent the
subsequent enforcement of rights under this Agreement.
D. Any assignment of this Agreement or any part by
Dealer, without written consent of Licensor, shall be null and void and of no
effect.
E. Notices under this Agreement shall be in writing
and shall be sent by registered or certified mail, return receipt requested,
postage prepaid, and properly addressed, to the respective parties at the
addresses set forth above in this Agreement. Notices actually received shall,
for all purposes, be deemed to have been in writing and shall, for all purposes,
be deemed to have been fully given and received.
F. This Agreement may not be altered or amended unless
agreed to in writing by both parties.
G. Dealer agrees that information and data at its
disposal during the term of negotiations of this Agreement, operation and
enforcement of this Agreement are considered proprietary information and
confidential. Such information, if disseminated to third parties, would be
detrimental to Licensor. Accordingly, Dealer agrees to take any and all
reasonable precautions to restrict the dissemination of such information by its
employees, agents or subcontractors. This obligation shall continue,
notwithstanding the termination of this Agreement, for a period of two (2)
years from the effective date of this Agreement.
H. Dealer further agrees that it shall take any and
all necessary steps and sign and execute any and all necessary documents or
agreements required to implement the terms of the agreement of the parties
contained in this contract, and Dealer shall refrain from taking any action,
either expressly or impliedly, which would have the effect of prohibiting or
hindering its performance under this Agreement.
I. This Agreement and attached exhibits contain the
entire agreement of the parties and there are no representations, inducements,
promises, agreements, arrangements, undertakings, oral or written, between the
parties other than those expressly set forth in this Agreement. No agreement of
any kind shall be binding upon either party until the same has been made in
writing and duly executed by both parties.
J. Independent Status. It is agreed and understood
that:
1 Any work requested by the parties shall be performed
under the terms of the Agreement and that Dealer is considered an independent
contractor. Each party is interested only in the results obtained under this
Agreement and has the general right of inspection and supervision in order to
secure the satisfactory completion of the work.
2 Neither party shall have control over the other
party with respect to its hours, times, employment, etc.
3 Under no circumstances shall either party be deemed
an employee of the other nor shall either party act as an agent of the other
party.
4 The parties warrant that the obligations shall be
performed with due diligence in a safe, competent, workmanlike manner and in
compliance with any and all applicable statutes, rules, and regulations.
5 Any and all joint venture or partnership status is
expressly denied and the parties expressly state that they have not formed
either expressly or impliedly a joint venture or partnership.
K. Captions and Paragraph Headings.
1 The captions, numbering sequences, titles, paragraph
headings, and punctuational organization used in this Agreement are for
convenience only and shall in no way define, limit or describe the scope or
intent of this Agreement or any part of the Agreement.
2 The paragraph headings used in this Agreement are
descriptive only and shall have no legal force or effect whatsoever other than
to aid a reasonable interpretation of the Agreement.
3 The titles to each of the various articles and
paragraphs are included for convenience or reference only and shall have no
effect on or be deemed part of the text of this Agreement.
4 Use of the neuter, singular or plural to refer to
the parties described in this Agreement shall be deemed a proper reference even
though the parties may be individuals, partnerships, corporations,
associations, trusts, or groups of two or more individuals, partnerships, or
corporations, or a joint venture.
5 Any necessary grammatical changes required to make
the provisions of this Agreement apply in the plural sense where there is more
than one party to this Agreement or where parties are corporations,
associations, partnerships, trusts, or individuals, or to make the language
apply to females as well as males, shall in all instances be assumed as though
each case were fully expressed.
6 If any word, phrase, clause or paragraph or other
provision of this Agreement is deemed, adjudicated, or otherwise found to be
against public policy, void, or unenforceable, those words or provisions shall
be deleted or modified in keeping with the express intent of the parties as
necessary to render this Agreement valid and enforceable.
7 All such deletions and modifications shall be the
minimum required to effect the above and the intent of the parties to this
Agreement.
L. Parties Bound.
1 This Agreement shall be binding upon and inure to
the benefit of the parties, their respective heirs, executors, administrators,
legal representatives, successors and assigns.
2 The parties expressly agree that in the event a
party seeks to or does transfer all or any part of its assets to a separate
entity, not a party to this Agreement, the party shall be liable under this
Agreement as if the transfer had not occurred.
M. Representations. No representations, promises
guarantees or warranties were made to induce either party to the execution of this
Agreement or made in connection therewith which are not expressly stated in the
body of this Agreement.
N. Severability. If any provision of this Agreement is
for any reason held violative of any applicable law, governmental rule, or
regulation, or if the Agreement is held to be unenforceable or unconscionable,
the invalidity of that specific provision shall not invalidate the remainder of
this Agreement. All other provisions and the entirety of this Agreement shall
remain in full force and effect unless the removal of the invalid provision
destroys the legitimate purposes of this Agreement in which event this
Agreement shall be null and void.
O. Time Limit. Time is of the essence in this
Agreement and all time limits shall be strictly construed and strictly
enforced. Failure of one party to this Agreement to meet a deadline imposed
under this Agreement shall be considered a material and significant breach of
this Agreement and shall entitle the nonbreaching party to any and all rights
of default as provided below.
P. Complete Understanding. By execution and acceptance
of this Agreement, the parties acknowledge that they have read the same and
understand each provision, term and obligation contained in this Agreement.
This Agreement, although drawn by one party, shall be construed fairly and
reasonably and not more strictly against the drafting party than the
nondrafting party.
Q. Date of Effectiveness. This Agreement shall become
effective upon the execution of the same by all parties and all obligations contained
in this Agreement shall be conclusive and binding upon all of the parties.
Accordingly, this Agreement shall no longer be considered executory as of the
date that all parties have affixed their signatures to it.
R. Signatory Clause. This Agreement is signed,
accepted and agreed to by all parties by and through their agents or authorized
representatives. All parties acknowledge that they have read and understood
this Agreement and its attachments and/or exhibits. All parties further
acknowledge that they have executed this legal document voluntarily and of
their own free will.
S. Default. Licensor may terminate this Agreement and
Dealer's right to distribute Licensor's software and regain possession of the
same if Dealer defaults on payment or other performance of this Agreement or
violates any of the terms or conditions of this Agreement. If Dealer defaults,
Dealer shall pay Licensor all costs of collections, repossession, attorney's
fees and other charges or expenses incurred in enforcing Licensor's rights
under this Agreement. Licensor shall have the right to immediate possession of
the software, all books and materials, documents, and data with Licensor's name
or logo on it, that any way relate to the software subject to this Agreement,
wherever found, with or without process of law. The rights and remedies of
Licensor are cumulative rather than exclusive and are in addition to any other
rights and remedies afforded to Licensor by law.
T. Indemnification. Dealer shall be liable for and
indemnify and hold Licensor harmless from any and all fines, penalties, losses,
destruction, damage or forfeitures, causes of action and/or lawsuits imposed
during the term of this Agreement. Dealer shall defend, indemnify and hold
Licensor harmless from any and all losses, liabilities, damages, destructions,
injuries, deaths, claims, demands, costs, causes of action, lawsuits, expenses
or other liabilities arising out of or connected with the possession or use of
the software during the term of this Agreement, unless the same is separately
covered by insurance, including, but not limited to, any and all claims or
liabilities to third parties and Dealer's claims, if any arising out of the
abandonment, conversion, secretion, concealment, use, unauthorized sale, or
other action involving the software by Dealer or any of its agents or
employees, the confiscation of the software by any governmental authority, or
for any illegal or improper use of the software.
U. Loss or Destruction. Licensor shall not be liable
for damage to or loss or destruction of any property of Dealer during the term
of this Agreement, whether or not the same is related to the negligence of
Dealer or its agents, servants or employees. Dealer assumes all risks of such
loss or damage of the software and of any books, manuals or material delivered
to it and waives any and all claims against Licensor and shall defend,
indemnify and hold Licensor harmless and free from any and all claims arising
out of loss or damage which may occur.
Wherefore, the parties, intending to be legally bound,
have signed their names in the spaces indicated below.
_________[Licensor's
name]
By: _________
_________[Typed name and
title]
_________[Dealer's name]
By: _________
_________[Typed name and
title]
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