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Form #746Software Purchase Agreement
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Software Purchase Agreement - free to use
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Software purchase
agreement.
This agreement, effective _________[date],
between _________, a _________ corporation, having its principal office at
_________ ("Inserv"), and _________, a _________ corporation,
having its principal office at _________("User").
RECITALS
User has developed and owns the copyright and all
other proprietary rights pertaining to and subsisting in certain computer
programs and related documentation known as the "_________ System";
and
User desires to sell, transfer, convey, and deliver
such programs and documentation, including all rights subsisting in them, to
Inserv; and
Inserv desires to acquire such computer programs and
documentation from User;
Therefore, in consideration of the premises and the
obligations undertaken, the parties agree as follows:
Section 1.
Subject Programs
1.1. The term "Subject Programs" shall mean
any and all versions or derivations of (1) the source code of computer programs
and (2) related development and user documentation which together comprise the
_________ computer system.
Section 2.
Sale to Inserv
2.1. User sells, grants, transfers, and conveys to
Inserv sole and exclusive right, title, and interest in and to the Subject
Programs, including all rights in copyright and trade secret interests
subsisting in them as well as such proprietary know-how as may relate to them,
and including but not limited to the full and complete right to print, publish,
copy, distribute, transfer, display, and prepare derivative works based upon
the Subject Programs and any derivative works of them anywhere throughout the world.
Section 3.
Delivery of Subject Programs by User
3.1. User shall within 10 days of execution of this
Agreement deliver to Inserv (1) the complete current version of the Subject
Programs in both human-readable and machine-readable format, free of copyright
protection and formatted to list source code instructions, and (2) available
manuscripts prepared by User documenting the use and operation of the Subject
Programs.
Section 4.
Distribution of Subject Programs by Inserv
4.1. Inserv shall determine in its discretion how to
market and distribute the Subject Programs, and whether to license or sell
copies of the Subject Programs. Each copy licensed or sold shall be accompanied
by a suitable End-User License Agreement restricting its use to only one computer
at any given time and protecting the proprietary rights of Inserv in the
Subject Programs.
Section 5.
Registration of Copyright
5.1. Inserv shall place appropriate copyright and
other proprietary notices in the form prescribed by applicable law on packaging
materials, and embedded in program code of the program packages. User shall,
upon request of Inserv, execute and deliver to Inserv a suitable Certificate of
Assignment of the rights and interests of User in the Subject Programs for
registration or recordation in the United States Copyright Office.
Section 6.
Payment of Purchase Price
6.1. User acknowledges receipt of the sum of $1
furnished by Inserv as the mutually agreed upon purchase price as good and
sufficient consideration of User entering into this Agreement and delivering
the Subject Programs under Section 3, in addition to the additional
consideration described below.
Section 7.
Additional Consideration
7.1. As additional consideration for the sale and
transfer of the Subject Programs, Inserv and User mutually agree to void and
terminate their previous "Agreement in Principle Between Inserv and User
for Support of Point of Sale Systems" originally executed on _________[date].
7.2. In addition, Inserv and User mutually agree to
terminate their previous "Agreement for Data Processing Services Between
Inserv and User" originally executed on _________[date]. As a
condition of the termination of that agreement, Section _________ of that
agreement will control the process of termination. Inserv, in conjunction with
the contract termination, agrees to sever all employees associated with the
performance of the contract and provide a severance package to those employees
who are not offered positions with User within 24 hours of their termination by
Inserv. Inserv will provide under separate agreement with the individuals
involved, an incentive to the current Director-MIS and Manager-Application
Systems that they will receive lump sum compensation if they continue in their
current position for a specified time period (approximately six months) after
the transition to User or if after the transition to User they are terminated
for reasons other than termination for cause.
7.3. Inserv will pay User a royalty of $_____ for each
new sublicense and installation of the "Subject Programs" in the
continental United States for and at a User Service Center.
7.4. Inserv will make available the services of
_________ for a period of 180 days from the effective date of this agreement to
assist in the transition of the data processing service efforts from Inserv to
User. These services will be provided on a part-time basis for expense
reimbursement only (travel, lodging and meals) up to a maximum of 160 man
hours. These services will continue at a rate of $_____ per hour after the
160-hour limit has been reached up to a maximum of 100 additional hours. All
services provided by _________ are based on h continued employment by Inserv and availability with
reasonable notice.
Section 8.
Warranties of User; Limitations on Warranties and
Liabilities
8.1. User warrants to Inserv that it is the original
creator and User of the Subject Programs and is the owner of them for purposes
of the U.S. Copyright Act and applicable federal and state laws affecting
proprietary rights, and that it has the authority to assign and transfer all
right, title, and interest to them to Inserv in accordance with the provisions
of this agreement.
8.2. User warrants that the Subject Programs in the
form to be delivered to Inserv pursuant to Section 3.1 will not infringe any
U.S. patent, copyright, or trade secret right of any third party.
8.3. User makes no warranty that all errors have been
or can be eliminated from the Subject Programs and, except as set forth in
Section 8.1, User shall not be responsible for losses, damages, costs or
expenses of any kind resulting from the use or distribution of the Subject
Programs by Inserv, including, without limitation, any liability for business
expense, machine downtime, or damages caused Inserv or any third persons by any
deficiency, defect, error or malfunction. Except as set forth in Section 9.1,
User shall not be liable for any indirect, special, incidental, or
consequential damages, relating to or arising out of the subject matter of this
Agreement or actions taken under it. USER MAKES NO WARRANTY, EITHER EXPRESS OR
IMPLIED, AS TO THE SUBJECT PROGRAMS OR THE USE OF THEM, AND SPECIFICALLY
DISCLAIMS ALL IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE.
Section 9.
Indemnity Undertakings of the Parties
9.1. User shall indemnify and hold harmless Inserv
from and against any and all claims, actions, demands, costs, losses, and
liabilities arising out of or relating to infringement by the Subject Programs
in the form delivered by User to Inserv under this Agreement upon the
proprietary rights of any third parties.
9.2. Inserv shall indemnify and hold harmless User
from and against any and all claims, actions, demands, costs, losses, and
liabilities arising out of or relating to actions taken by Inserv pursuant to
this Agreement.
9.3. These rights of indemnification shall be
predicated upon the party seeking indemnification (1) giving the indemnifying
party prompt written notice of any claim for which indemnity is sought; (2)
allowing the indemnifying party complete control with respect to the defense or
settlement of any such claim; and (3) cooperating fully with the indemnifying
party in the defense or settlement at the expense of the indemnifying party.
Section 10.
Confidential Information
10.1. User shall keep confidential and not disclose or
disseminate to any third parties any confidential proprietary information
subsisting or embodied in the Subject Programs. User shall take all steps
reasonably necessary for the protection of any such information that remains in
the possession or control of User.
Section 11.
Miscellaneous
11.1. User shall have no authority to enter into
agreements on behalf of Inserv or otherwise to bind or obligate Inserv in any
manner.
11.2. ALL QUESTIONS CONCERNING THE VALIDITY, OPERATION
INTERPRETATION, AND CONSTRUCTION OF THIS AGREEMENT WILL BE GOVERNED BY AND
DETERMINED IN ACCORDANCE WITH THE LAWS OF THE STATE OF _________.
11.3. If any part, term, or provision of this
Agreement shall be held unenforceable or in conflict with any law of any
governmental authority having jurisdiction over this Agreement, the validity of
the remaining portions or provisions shall not be affected.
11.4. Each
party represents that it has the full power and authority to undertake the
obligations set forth in this Agreement and that it has not entered into any
other agreements that would render it incapable of satisfactorily
performing its obligations under this Agreement or
that would place it in a position in conflict with respect to its obligations
under this Agreement.
11.5. The parties agree that this agreement is
complete and exclusive state of agreement and supersedes all proposals and
agreements, oral or written, relating to the subject matter of this agreement.
IN WITNESS, the parties have caused the Agreement to
be duly executed by their authorized representatives effective as of the date
set forth above.
(User)
By: _________
Name: _________
Title: _________
Date: _________
(Inserv)
By: _________
Name: _________
Title: _________
Date: _________
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acceptable in one state may not be enforced the same way under the laws of another
state. Also, agreements should relate specifically to the particular facts of each
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