Basic Software License Agreement
This Software License Agreement made on the _______________ (date) ,
between _____________________ (Name of Developer) , a corporation
organized and existing under the laws of the state of ______________, with its
principal office located at ____________________________________________
_________________________ (street address, city, state, zip code) , referred
to herein as Developer , and ______________________ (Name of Licensee) , a
corporation organized and existing under the laws of the state of ____________,
with its principal office located at ______________________________________
________________________________ (street address, city, state, zip code) ,
referred to herein as Licensee .
Whereas, Developer has developed and licenses to users its software
program marketed under the name ___________________ ( name of software ) ,
hereinafter called the Software ; and
Whereas, Licensee desires to utilize a copy of the Software;
Now, therefore, for and in consideration of the mutual covenants
contained in this agreement, and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties agree as
follows:
1. License
Developer hereby grants to Licensee a perpetual, non-exclusive, limited
license to use the Software in the United States of America as set forth in this
Agreement.
2. Restrictions
Licensee shall not modify, copy, duplicate, reproduce, license or
sublicense the Software, or transfer or convey the Software or any right in the
Software to anyone else without the prior written consent of Developer; provided
that Licensee may make one copy of the Software for backup or archival
purposes.
3. License Fee
In consideration for the grant of the license and the use of the Software,
Licensee agrees to pay Developer the sum of $______________ per year on the
_________________ (date) each year this Agreement is in effect.
4. Warranty of Title
Developer hereby represents and warrants to Licensee that Developer is
the owner of the Software or otherwise has the right to grant to Licensee the
rights set forth in this Agreement. In the event any breach or threatened breach
of the foregoing representation and warranty, Licensee's sole remedy shall be to
require Developer or to either:
A. Procure, at Developer's expense, the right to use the Software,
B. Replace the Software or any part thereof that is in breach and
replace it with Software of comparable functionality that does not cause
any breach, or
C. Refund to Licensee the full amount of the license fee upon the
return of the Software and all copies thereof to Developer.
5. Warranty of Functionality.
A. For a period of ____________________________ (time in which
functionality of software is warranted) following delivery of the Software
to Licensee (the Warranty Period ), Developer warrants that the Software
shall perform in all material respects according to the Developer's
specifications concerning the Software when used with the appropriate
computer equipment. In the event of any breach or alleged breach of this
warranty, Licensee shall promptly notify Developer and return the
Software to Developer at Licensee's expense. Licensee's sole remedy
shall be that Developer shall correct the Software so that it operates
according to the warranty. This warranty shall not apply to the Software if
modified by anyone or if used improperly or on an operating environment
not approved by Licensor.
B. In the event of any defect in the media upon which the Software is
provided arising within __________________________ (period media is
warranted) of the date of delivery of the Software, upon return to
Developer of the Software upon the original media, Developer shall
provide Licensee a new copy of the Software.
6. Software Maintenance
During the Warranty Period, Developer shall provide to Licensee any new,
corrected or enhanced version of the Software as created by Developer. Such
enhancement shall include all modifications to the Software which increase the
speed, efficiency or ease of use of the Software, or add additional capabilities or
functionality to the Software, but shall not include any substantially new or
rewritten version of the Software.
7. Optional Maintenance
After expiration of the Warranty Period, Licensee may continue to receive
maintenance support for successive twelve (12) month periods. The charge for
such optional maintenance support shall be Developer's regular list price for
maintenance and support for the Software as published from time to time by
Developer. Licensor shall notify Developer in writing if it desires to receive
optional maintenance. If Licensee fails to take optional maintenance and later
elects to receive it, Developer reserves the right to charge Licensee its
maintenance fees for the period of the lapse in maintenance. Developer may
elect to discontinue maintenance at any time upon notice to Licensee, and refund
of any then unearned maintenance fees.
8. Payment
Payment of the first yearly license fee shall be made upon delivery of the
Software. Payment of any other amount (other than License Fees) owed by
Licensee to Developer pursuant to this Agreement shall be paid within thirty (30)
days following invoice from Developer. In the event any overdue amount owed by
Licensee is not paid following ten (10) days written notice from Developer, then in
addition to any other amount due, Developer may impose and Licensee shall pay
a late payment charge at the rate of one percent (1%) per month on any overdue
amount.
9. Taxes
In addition to all other amounts due hereunder, Licensee shall also pay to
Developer, or reimburse Developer as appropriate, all amounts due for property
tax on the Software and for sales, use, excise taxes or other taxes which are
measured directly by payments made by Licensee to Developer. In no event
shall Licensee be obligated to pay any tax paid on the income of Developer or
paid for Developer's privilege of doing business.
10. Warranty Disclaimer.
DEVELOPER'S WARRANTIES SET FORTH IN THIS AGREEMENT ARE
EXCLUSIVE AND ARE IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR
IMPLIED, INCLUDING BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.
11. Limitation of Liability.
Developer shall not be responsible for, and shall not pay, any amount of
incidental, consequential or other indirect damages, whether based on lost
revenue or otherwise, regardless of whether Developer was advised of the
possibility of such losses in advance. In no event shall Developer's liability
hereunder exceed the amount of license fees paid by Licensee, regardless of
whether Licensee's claim is based on contract, tort, strict liability, product liability
or otherwise.
12. Severability
The invalidity of any portion of this Agreement will not and shall not be
deemed to affect the validity of any other provision. If any provision of this
Agreement is held to be invalid, the parties agree that the remaining provisions
shall be deemed to be in full force and effect as if they had been executed by
both parties subsequent to the expungement of the invalid provision.
13. No Waiver
The failure of either party to this Agreement to insist upon the performance
of any of the terms and conditions of this Agreement, or the waiver of any breach
of any of the terms and conditions of this Agreement, shall not be construed as
subsequently waiving any such terms and conditions, but the same shall
continue and remain in full force and effect as if no such forbearance or waiver
had occurred.
14. Governing Law
This Agreement shall be governed by, construed, and enforced in
accordance with the laws of the State of _____________.
15. Notices
Any notice provided for or concerning this Agreement shall be in writing
and shall be deemed sufficiently given when sent by certified or registered mail if
sent to the respective address of each party as set forth at the beginning of this
Agreement.
16. Attorney’s Fees
In the event that any lawsuit is filed in relation to this Agreement, the
unsuccessful party in the action shall pay to the successful party, in addition to all
the sums that either party may be called on to pay, a reasonable sum for the
successful party's attorney fees.
17. Mandatory Arbitration
Any dispute under this Agreement shall be required to be resolved by
binding arbitration of the parties hereto. If the parties cannot agree on an
arbitrator, each party shall select one arbitrator and both arbitrators shall then
select a third. The third arbitrator so selected shall arbitrate said dispute. The
arbitration shall be governed by the rules of the American Arbitration Association
then in force and effect.
18. Entire Agreement
This Agreement shall constitute the entire agreement between the parties
and any prior understanding or representation of any kind preceding the date of
this Agreement shall not be binding upon either party except to the extent
incorporated in this Agreement.
19. Modification of Agreement
Any modification of this Agreement or additional obligation assumed by
either party in connection with this Agreement shall be binding only if placed in
writing and signed by each party or an authorized representative of each party.
20. Assignment of Rights
The rights of each party under this Agreement are personal to that party
and may not be assigned or transferred to any other person, firm, corporation, or
other entity without the prior, express, and written consent of the other party.
21. Counterparts
This Agreement may be executed in any number of counterparts, each of
which shall be deemed to be an original, but all of which together shall constitute
but one and the same instrument.
WITNESS our signatures as of the day and date first above stated.
________________________ __________________________
(Name of Developer) (Name of Licensee)
By:__________________________ _____________________________
__________________________ __________________________
(P rinted name & Office in Corporation) (P rinted name & Office in Corporation)
__________________________ __________________________
(Signature of Officer) (Signature of Officer)
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