Consultant Agreement with Sharing of Software Revenues
This Consulting Agreement made on the _________________ (date) , between
_____________________________ (Name of Company) , 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 Company ,
and ________________________ (Name of Consultant) , 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 Consultant .
Whereas, Company is in the business of developing and marketing software and
possesses the rights to develop, market, and otherwise exploit a computer program to
be used by (describe) ___________________________________________________
for the purposes of (describe) _____________________________________________,
hereinafter referred to as the Product ; and
Whereas, Consultant specializes in the production of custom computer software
packages in the (specify) ____________________________________ industry; and
Whereas, Company is desirous of engaging the Consultant, and the Consultant
is willing to accept such engagement, to provide consulting and other services to the
Company in connection with the development of the Product.
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. Employment
Company agrees to employ the Consultant, and the Consultant hereby agrees to
accept such employment, upon the terms and conditions set forth in this Agreement.
2. Term
Subject to earlier termination as hereinafter provided, the term of the Consultant's
employment hereunder (the Term ) shall commence on the date hereof, shall terminate
on ____________________ (date) , but and shall be automatically renewed from year to
year thereafter unless either party gives at least ______ (number) days prior written
notice of termination.
3. Duties of Consultant
During the Term the Consultant shall perform the development, maintenance,
support and consulting services with regard to the Product as are specified on
Schedule A attached hereto (the Services ) at times mutually agreed to by the Company
and the Consultant. The Consultant shall at all times provide the services of the Project
Manager (the Project Manager ) who shall maintain direct management responsibility for
© Copyright Envision Corporation. 2002. All rights reserved. Protected by the copyright laws of the United States and Canada and by international treaties. IT IS
ILLEGAL AND STRICTLY PROHIBITED TO DISTRIBUTE, PUBLISH, OFFER FOR SALE, LICENSE OR SUBLICENSE, GIVE OR DISCLOSE TO ANY
OTHER PARTY, THIS PRODUCT IN HARD COPY OR DIGITAL FORM. ALL OFFENDERS WILL AUTOMATICALLY BE SUED IN A COURT OF LAW.
© Copyright Envision Corporation. 2002. All rights reserved. Protected by the copyright laws of the United States and Canada and by international treaties. IT IS
ILLEGAL AND STRICTLY PROHIBITED TO DISTRIBUTE, PUBLISH, OFFER FOR SALE, LICENSE OR SUBLICENSE, GIVE OR DISCLOSE TO ANY
OTHER PARTY, THIS PRODUCT IN HARD COPY OR DIGITAL FORM. ALL OFFENDERS WILL AUTOMATICALLY BE SUED IN A COURT OF LAW.
the performance by the Consultant of the Services. The Consultant shall also provide
such programmers and other Consultant Personnel (as hereinafter defined) as may be
required to fulfill its obligations hereunder and as may be reasonably acceptable to the
Company. The Consultant shall keep the Project Manager and other Consultant
Personnel reasonably available to the Company during the Term and shall perform the
Services in a timely, professional manner.
4. Compensation
A. For all Services rendered hereunder, the Company shall pay the
Consultant a maximum consulting fee of $__________ during the Term payable
weekly in arrears on the basis of $___________ per man-hour of Consultant
Personnel time during the preceding week.
B. Consultant shall also be entitled to receive a _______% share of the Net
Profits attributable to the Product (the Profit Share ). Net Profits shall be defined
as all revenues generated from the Product and actually received by the
Company less sales commissions and expenses, consulting fees, costs of
development, marketing and production of the Product, administrative expenses
and other overhead charges attributable thereto, interest expense in connection
with financing of the Product and provision for income taxes with relation to
Product revenues.
C. Consultant shall maintain complete and accurate records of man-hours
spent by the Consultant Personnel in connection with the performance of the
Services and shall provide the Company with a statement at the end of each
week detailing the Services rendered and the man-hours spent during the week
then ended.
D. The Profit Share shall be payable by the Company within ______
(number) days after the end of each quarter during the Term on the basis of Net
Profits attributable to the Product during the quarter then ended. Each payment
of the Profit Share shall be accompanied by a statement outlining the manner in
which such payment was calculated. The Consultant shall have the right, at its
sole cost and expense, to cause an independent certified public accounting firm
reasonably acceptable to the Company to examine the Company's books and
records (but only to the extent relevant to inquiry under this Paragraph 4-D)
during business hours, but not more than once a year, in order to verify the
accuracy of the Company's calculation of the Consultant's Profit Share. Such
accounting firm shall not disclose to the Consultant any information other than
the verification of the accuracy of the payments of the Profit Share hereunder.
5. Proprietary Information
Consultant acknowledges that during its employment by the Company it will or
may be given access to information, including, without limitation, source code, object
code, algorithms, programs, computer routines, documentation, flow charts, diagrams,
internal specifications, data, data bases, marketing plans and all work product
developed or under development by the Consultant or the Company during the Term,
which are confidential and proprietary to the Company (collectively, Proprietary
Information ). The Consultant agrees to use reasonable care to safeguard the
Proprietary Information and to prevent the unauthorized use or disclosure thereof by it
or any of the Consultant's Personnel.
6. Non-Disclosure
Either during or after the Term, the Consultant will not disclose to anyone outside
of the Company nor use in other than the Company's business and on the Company's
behalf, except with the prior written permission of the Company, any invention, trade
secret, work of authorship, Proprietary Information or proprietary thing that relates in
any manner to the Product or any of the Company's actual or anticipated business,
research, development product, device or activity or that is received in confidence by or
for the Company from any other person. The Consultant shall disclose or give access to
Proprietary Information only to partners, principals, agents, contractors or employees of
the Consultant ( Consultant Personnel ) having a need-to-know in connection with the
performance of the Services hereunder, and only for use in connection therewith, and
only with the prior written consent of the Company. Consultant will advise all Consultant
Personnel having access to Proprietary Information of the confidential and proprietary
nature thereof and shall require all Consultant Personnel to execute an agreement in
the form of Schedule B attached hereto prior to gaining access to the Proprietary
Information. Consultant agrees promptly to furnish to the Company an original execution
copy of each such agreement signed by all Consultant Personnel.
7. Reproduction of Notices
Any copies or reproductions of the Proprietary Information shall bear the patent,
copyright, trademark or proprietary notices contained in the original.
8. Return of Proprietary Information
Upon termination of this Agreement, the Consultant shall return to the Company
any and all Proprietary Information (including any copies or reproductions thereof) in its
possession or control and shall cease using any of such Proprietary Information.
9. Notice of Unauthorized Disclosure
Consultant shall promptly advise the Company in writing if it learns of any
unauthorized use or disclosure of Proprietary Information by any current or former
Consultant Personnel or any other third party.
10. Assignment of Rights
A. Consultant shall have no proprietary interest in the Product or the work
product developed by the Consultant during the course of its engagement with
the Company, and the Consultant agrees that the Product and such work product
is work made for hire and that the Company shall have all proprietary rights in the
Product and such work product, including all patent, copyright and trade secret
rights inherent therein and appurtenant thereto. Consultant hereby assigns and
agrees to assign to the Company and its successors, assigns or nominees all
right, title and interest of the Consultant in the Product and any developments,
designs, inventions, improvements, trade secrets, trademarks, algorithms,
computer routines, programs, copyrightable subject matter or proprietary
information which the Consultant has made or conceived, or may make or
conceive, either solely or jointly with others while providing the Services to the
Company or with the use of the time, materials or facilities of the Company or
relating to any of the Company's actual or anticipated business, research,
development, product, service or activity, or suggested by or resulting from any
task assigned to the Consultant or work performed by the Consultant for or on
behalf of the Company.
B. The parties further agree that the Consultant will, at its sole cost and
expense, execute and deliver all such further papers as may be necessary,
including original applications and applications for renewal, extensions or
reissues or patents, trademark registrations or copyright registrations, in any and
all countries, to vest title thereto in the Company and its successors, assigns or
nominees.
11. Non-Competition
In recognition of the considerations described in Paragraph 4 and the fact that
the Services are of a special, unique, unusual, extraordinary and intellectual character
and that the Consultant's position with the Company and its expertise are such that it
would be capable of competing with the Company, the Consultant covenants and
agrees that it shall not market or participate in the marketing of any Proprietary
Information and shall not consult or provide any services or products to any person or
organization in connection with a product performing functions substantially similar to
those performed by the Product, in each case for a period of ______ (number) years
after the end of the Term or the earlier termination of the Consultant's engagement with
the Company.
12. Specific Remedies
If the Consultant commits a breach of any of the provisions of Paragraphs 5, 6
or 11 , the Company shall have (1) the right and remedy to have such provisions
specifically enforced by any court having equity jurisdiction, it being acknowledged and
agreed that any such breach will cause irreparable injury to the Company and that
money damages will not provide an adequate remedy and (ii) the right and remedy to
require the Consultant to account for and pay over to the Company all compensation,
profits, monies, accruals, increments or other benefits (collectively the Benefits ) derived
or received by the Consultant as the result of any transactions constituting a breach of
any of such provisions, and the Consultant hereby agrees to account for and pay over
such Benefits to the Company.
13. Survival
Except as otherwise provided herein, the provisions of Paragraphs 5, 6, 11 and
12 shall remain in effect indefinitely and shall survive the termination of this Agreement.
© Copyright Envision Corporation. 2002. All rights reserved. Protected by the copyright laws of the United States and Canada and by international treaties. IT IS
ILLEGAL AND STRICTLY PROHIBITED TO DISTRIBUTE, PUBLISH, OFFER FOR SALE, LICENSE OR SUBLICENSE, GIVE OR DISCLOSE TO ANY
OTHER PARTY, THIS PRODUCT IN HARD COPY OR DIGITAL FORM. ALL OFFENDERS WILL AUTOMATICALLY BE SUED IN A COURT OF LAW.
14. Independent Contractors
It is expressly agreed that the Company and the Consultant are acting
hereunder as independent contractors, and under no circumstances shall any
employees of one party be deemed the employees of the other for any purpose. This
Agreement shall not be construed as authority for either party to act for the other party
in any agency or other capacity or to make commitments of any kind for the account of
or on behalf of the other except to the extent and for the purposes expressly provided
for herein. The Consultant shall be responsible for the conduct of all Consultant
Personnel. Individuals or subcontractors assigned by the Consultant to perform the
Services under this Agreement shall observe the standard working rules of the
Company while on the Company's premises. The Company agrees to provide
reasonable access to its premises for Consultant Personnel, including access as
reasonably required after the Company's normal working hours, subject to the
Company's security operating procedures. It is further understood that Consultant is free
to contract for similar services to be performed for other (type of entity) or organizations
while under Contract with Company.
15. Termination
Consultant's employment hereunder shall be terminated (a) upon the Project
Manager's death or disability, which shall be defined as the Project Manager's inability
to perform his duties required hereunder by reason of illness or incapacity for a
continuous period of ______ (number) days or for a period of _____ (number) months
in any ______ (number) month period, or (b) for cause, which shall be defined as the
Consultant's failure to comply with any of the material terms of this Agreement,
including, without limitation, the Consultant's violation of the provisions of Paragraphs
5, 6 or 11 . In the event of the termination of this Agreement, whether pursuant to this
Paragraph 15, at the end of the Term or otherwise, the Consultant shall have no rights
to the Product or against the Company except for its right to receive the compensation
specified in Paragraph 4 pro rated to the date of termination.
16. Use of Trademarks
Neither party shall use the other's name, logo or any facsimile thereof in
connection with its marketing, promotional or business generating efforts without the
prior written consent of the other party.
17. 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.
18. 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.
19. Governing Law
This Agreement shall be governed by, construed, and enforced in accordance
with the laws of the State of _____________.
20. Notices
Unless provided herein to the contrary, 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.
21 . 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.
22. 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.
23. 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.
24. 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.
25. 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.
26. Compliance with Laws
In performing under this Agreement, all applicable governmental laws,
regulations, orders, and other rules of duly-constituted authority will be followed and
complied with in all respects by both parties.
WITNESS our signatures as of the day and date first above stated.
_______________________ _______________________
(Name of Consultant) (Name of Company)
By:____________________________ By:_______________________________
_________________________ _________________________
(P rinted Name & Office in Corporation) (P rinted Name & Office in Corporation)
________________________ _________________________
(Signature of Officer) (Signature of Officer)