Software Distribution Agreement -- Right to
Provide and Market Software to End Users
This Distribution Agreement (this Agreement or this Distribution Agreement ) is made
and entered into as of __________________ (date) ( the Effective Date ) between
________________________ (Name of Distributor), a corporation organized and
existing under the laws of the state of ________________________ (name), with its
principal office located at _____________________________________________
(street address, city, county, state, zip code) , and referred to herein as Distributor, and
________________________ (Name of Vendor), a corporation organized and existing
under the laws of the state of ________________________ (name), with its principal
office located at _____________________________________________ (street
address, city, county, state, zip code) , and referred to herein as Vendor.
Whereas, Vendor has created and licenses the software program known generally as
________________________ (Name of Program) , together with the Documentation
referred to below and referred to herein as the Software and, subject to the terms and
conditions of this Agreement, has agreed to authorize Distributor to be an authorized
distributor 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:
I. Certain Defined Terms.
A. As used herein, the following terms shall have the following meanings:
Documentation means those printed or online instructions, manuals, screens
and diagrams distributed or otherwise provided by Vendor that pertain to the
Software;
B. End User means any licensee or potential licensee of the Software;
C. End User Agreement means the standard agreement(s) pursuant to
which Vendor grants to End Users the right and license to use the Software; and
D. Term has the meaning set forth in Section III below.
II. Non-Exclusive Right to Provide and Market Software to End Users. Subject
to the terms and conditions of this Agreement, Vendor grants to the Distributor a non-
exclusive right and license during the Term to: (a) market the Software to End Users;
(b) purchase Software licenses for distribution to End Users; and (c) distribute Software
and licenses thereto to End Users. Distributor may use the names, trademarks, service
marks, trade names, product names and logos of Vendor related to the Software
(Vendor Trademarks) for advertising, distribution and promotion of the Software to End
Users. Distributor agrees that it will not modify, alter, conceal, remove or make any
other modification to any Vendor Trademark without Vendor’s prior approval. Vendor
shall be responsible for causing each End User that becomes authorized to use the
software to enter into an End User Agreement. The Distributor agrees that it will not
modify or alter any End User Agreement.
III. Term and Termination.
A. This Agreement shall commence as of the Effective Date and, unless
earlier terminated as provided herein, shall continue until the first anniversary of
the Effective Date (the Initial Term ). This Agreement shall automatically renew
for successive one (1) year renewal terms (each, a Renewal Term ) at the end of
the Initial Term or any succeeding Renewal Term, unless (i) either party provides
the other with written notice at least ________________________ (number)
days prior to the beginning of any such Renewal Period electing to not renew this
Agreement for such Renewal Period or (ii) this Agreement is otherwise
terminated as provided herein. The Initial Term and all Renewal Terms are,
collectively, the Term.
B. Notwithstanding the foregoing provisions of this Section III, (i) either party
may terminate this Agreement, at any time and for any reason, upon
________________________ (number) days prior written notice to the other
party and (ii) if either party (the breaching party) breaches this Agreement, the
other party may provide written notice thereof to the breaching party and if such
breach is not cured within ________________________ (number) days after the
breaching party’s receipt of such notice, the other party may terminate this
Agreement upon written notice to the breaching party.
C. Effect of Termination; Remedies Cumulative; Survival. Upon the
effective date of expiration or termination of this Agreement, for any reason,
Distributor’s rights pursuant to Section II shall terminate. Each right or remedy of
a party in this Agreement shall be cumulative and in addition to, and not in lieu of,
each other right and remedy of such party hereunder or pursuant to applicable
law. The following provisions of this Agreement shall survive any expiration or
termination hereof: Sections IV and VIII through XV. In addition, any accrued
rights to payment and remedies for breach of this Agreement shall survive any
expiration or termination hereof and, if so directed by Distributor, Vendor shall
fulfill any Software orders placed hereunder prior to any expiration or termination
of this Agreement, even if such fulfillment occurs after such expiration or
termination.
IV. Prices and Payment. The fees charged by Vendor to Distributor for the
Software’s End User licenses that Distributor may order hereunder are set forth on
Exhibit A hereto. The fees identified in this Agreement do not include any sales or use
taxes resulting from the ordering of Software by Distributor hereunder. Unless a tax
exemption is applicable, Vendor may invoice Distributor for sales and use taxes arising
as a result of Distributor’s ordering of Software hereunder. For all fees and other
charges hereunder, Vendor shall promptly invoice Distributor and invoices are due
within (number) days after Distributor’s receipt thereof.
V. Ordering and Provision.
A. Distributor may order End User Software licenses hereunder by submitting
a purchase order to Vendor. Each purchase order submission shall identify: the
number of Software end user licenses to be purchased; the name of the End
User for each license; the version of the Software for each license; and the
Fulfillment Email Address. Fulfillment Email Address means, for any order, the
email address specified in such order as the place where the Fulfillment
Materials are to be sent to Distributor. If no such email address is specified in
such order, the Fulfillment Email Address for such order shall be the email
address of Distributor from which such order was originated.
B. Within ________________________ (number) business days of its
receipt of such an order, Vendor shall fulfill such order by sending the following
materials (the Fulfillment Materials ) to the Fulfillment Email Address for each End
User license included in such order: a license key; a serial number; and an
Internet web link that enables such End User to access and download the
licensed Software and agree to the End User Agreement. Vendor shall forward
an End User’s Fulfillment Materials to such End User.
VI. Title; Limitations on Use. The Distributor agrees that, as between the Vendor
and the Distributor, Vendor shall have sole and exclusive ownership of and all right, title
and interest in and to the Software. This Agreement does not provide the Distributor
with title or ownership of the Software, but only the right to market and provide the
Software as set forth herein. Distributor will not modify or prepare derivative works of
the Software. The Distributor may not reverse assemble or reverse compile the
Software or use other means to identify the Software’s source code.
VII. Infringement Indemnity. Vendor shall indemnify, defend and hold Distributor
harmless from and against any and all damages, costs, penalties, claims, demands,
causes of action and expenses (including, without limitation, the fees and expenses of
counsel) arising out of or resulting from the infringement of any patent, copyright,
trademark, service mark, trade secret or other intellectual property right of a third party
by the Software. Distributor agrees to promptly notify the Vendor after Distributor
becomes aware of any claim giving rise to an indemnification obligation pursuant to this
Section; provided that a failure to provide such notice shall not affect Distributor’s right
to indemnification pursuant to this Section, except to the extent that the Vendor is
actually prejudiced thereby.
VIII. Warranties; Limitation of Liability. Vendor represents and warrants that (i) it
has all power and authority, corporate and otherwise, to enter into this Agreement and
perform its obligations hereunder, (ii) it has duly authorized, executed and delivered this
Agreement and (iii) this Agreement is an enforceable agreement of Vendor, enforceable
against Vendor in accordance with its terms. VENDOR DISCLAIMS ALL OTHER
WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED
WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.
NEITHER PARTY HERETO SHALL BE LIABLE TO THE OTHER PARTY OR ANY OTHER
PERSON OR ENTITY FOR ANY SPECIAL, EXEMPLARY, PUNITIVE, CONSEQUENTIAL OR
INCIDENTAL DAMAGES (INCLUDING, WITHOUT LIMITATION, LOST PROFITS),
WHETHER CAUSED BY NEGLIGENCE OR OTHERWISE, EVEN IF ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES.
IX. Assignment. Either party may assign its rights and obligations hereunder (in
whole and not in part) to any person or entity, provided that (a) the assignee agrees to
be bound, in writing, by this Agreement, (b) such an assignment shall not relieve the
assignor of its obligations hereunder and (c) the assignor provides written notice of the
assignment to the other party. This Agreement shall be binding upon the parties hereto
and their respective successors and assigns.
X. Confidential Information.
A. Vendor Confidential Information means the Software.
B. Distributor Confidential Information means the identity of, and other
information regarding, End Users and information about Distributor’s plans,
strategies, products and services.
C. Confidential Information means the Vendor Confidential Information and
the Distributor Confidential Information.
D. Disclosing Party means a party hereto disclosing its Confidential
Information hereunder and Receiving Party means a party hereto which receives
Confidential Information of the disclosing party hereunder.
E. Confidential Information may be oral, visual, in writing or electronic.
Confidential Information of the disclosing party shall not include information
which: (i) is or becomes generally available to the public, other than as a result of
a disclosure by the receiving party or any of its Representatives (as defined
below); ( ii) was available to receiving party on a non-confidential basis prior to its
disclosure to the receiving party by the disclosing party, provided that the source
of such information was not bound by a confidentiality agreement with, or other
contractual, legal or fiduciary obligation of confidentiality to, the disclosing party;
(iii) is or becomes available to the receiving party on a non-confidential basis
from a source other than the disclosing party, provided that such source was not
bound by a confidentiality agreement with, or other contractual, legal or fiduciary
obligation of confidentiality to, the disclosing party or any of its affiliates; or (iv) is
or was independently developed or discovered by the receiving party without use
of or reference to the Confidential Information of the disclosing party.
F. The Confidential Information will not be used by the receiving party or any
of the receiving party’s employees, officers, directors or contractors
(Representatives) for any purpose other than the receiving party’s performance
of its obligations or exercise of its rights pursuant to this Agreement. The
Confidential Information of the disclosing party will not be disclosed or divulged
by the receiving party to anyone except: with the disclosing party’s prior written
permission; as may be required by law, rule or regulation or by the order or
demand of a court or government agency or authority; or as may be permitted
pursuant to this Agreement. Notwithstanding the foregoing, the receiving party
may disclose the disclosing party’s Confidential Information to those of the
receiving party’s Representatives who need to review such Confidential
Information for the purpose of the receiving party’s performance of its obligations
or exercise of its rights pursuant to this Agreement, but only after the receiving
party has informed them of the confidential nature of such Confidential
Information and they have agreed, in writing, to treat such Confidential
Information confidentially on terms substantially similar to those of this
Agreement. If the receiving party or any of its Representatives shall be requested
or required by governmental order, judicial process or similar means to disclose
any Confidential Information of the disclosing party, the receiving party agrees to
provide prompt written notice to the disclosing party of such request and to
cooperate with the disclosing party in seeking to limit such disclosure and in
seeking an appropriate protective order and confidential treatment. The receiving
party acknowledges that the disclosing party will suffer irreparable injury as a
result of the use or disclosure of the disclosing party’s Confidential Information in
violation of this Section, for which money damages will be inadequate.
Accordingly, in addition to any other remedy available to the disclosing party
pursuant to this Agreement or applicable law, the disclosing party shall be
entitled to obtain preliminary and permanent injunctive relief with respect to any
breach or threatened breach of this Section, without the necessity of proving
actual damages. Upon expiration or termination of this Agreement for any
reason, the receiving party will return to the disclosing party or destroy all
Confidential Information of the disclosing party and all copies thereof (except that
Distributor may retain any Confidential Information needed to fulfill orders then
pending as contemplated by this Agreement until such orders are fulfilled and
any other Confidential Information that Distributor has a right to retain
independent of this Agreement) and, upon the written request of the disclosing
party, an authorized officer of the receiving party will certify in writing to the
disclosing party that the receiving party has complied with this Section. In such
event, the receiving party will continue to be bound by this Section.
XI. Independent Contractor. The relationship between the parties is that of
independent contractors and nothing herein shall be construed to create a partnership,
joint venture, or agency relationship between the parties hereto.
WITNESS our signatures as of the day and date first above stated.
________________________ ________________________
(Name of Distributor) (Name of Vendor)
By:________________________ By:_________________________
(Signature of Officer) (Signature of Officer)
________________________ ________________________
(P rinted Name & Office in Corporation) (P rinted Name & Office in Corporation)