________________________________
RESTRICTED SOURCE CODE LICENCE AGREEMENT
This is Nontransferable and
Nonexclusive RESTRICTED Source Code License Agreement is made this
day of , 19___ between ____________________________
("_________"), an Illinois corporation, with its offices at _______________________, ______________, Illinois
_______, and
_______________________________
_______________________________
_______________________________
WHEREAS ____________________ has executed a Software License Agreement, a copy of which is
attached hereto as Schedule "A" (the” License"),with ____________________ for the use of the object code of the
____________________ software; and WHEREAS the uninterrupted availability of the ____________________ software is critical to
____________________ in the conduct of its business and ____________________ is in need of receiving and
installing the ____________________ ____________________ Source Code in order to cure a difficulty involving
____________________’s change control management system, which would then allow ____________________ to
properly implement the ____________________ software; and WHEREAS ____________________ and ____________________ are desirous of creating a means by
which ____________________ shall have ____________________ to Source Code in effort to resolve its change
management system problem; and NOW THEREFORE , in consideration of the mutual promises contained herein, it is agreed as follows:
1. RESTRICTED LICENSE
Subject to all of the terms and conditions hereof, ____________________ hereby grants to ____________________ a restricted license to receive and install the ____________________
____________________ Source Code on the host system wherein ____________________ has or will install the
____________________ software. The term of this licenses shall endure for the term of the license to
____________________ contained in Schedule A. Any breach or default under the license to
____________________ contained in Schedule A shall constitute an immediate termination of the l icense contained
herein, requiring ____________________ to uninstall and return the ____________________ Source Code to ____________________. 2. DEPOSIT
Concurrently with the execution of this Agreement, ____________________ shall deposit a copy of the
____________________ Source Code with ____________________.
3 . SOURCE CODE LICENSE MAINTENANCE FEE
As compensation for the services to be performed by ____________________ hereunder and the
risks to ____________________ hereunder, ____________________ shall pay to
____________________ an initial fee of $5,000.00, payable at the time of execution of this
Agreement, and an annual fee in the amount of $___________, to be paid to ____________________ in
advance on each anniversary date hereafter. ____________________’ failure to pay the required
Source Code License Maintenance Fee shall require ____________________ to uninstall and return the
Source Code and shall relieve ____________________ of all obligations set forth herein.
____________________ shall invoice ____________________ at least sixty (60) days prior to
each anniversary date hereof.
4. ____________________’ DUTIES. ____________________ shall:
a. not reproduce or duplicate the Source Code in any medium, or in any manner whatsoever;
b. not sell, assign, convey, or transfer in any manner whatsoever, the Source Code, this Agreement, or
any part or portion thereof, or right or interest therein, of any nature, kind, character, descri ption, or
duration whatsoever;
c. have the affirmative obligation to protect the secrecy and confidentiality of the Source Code, and each
part and portion thereof , and not to disclose the Source Code to any third party, by any me ans.
____________________ hereby acknowledges that the Source Code is a trade secret of
____________________ under all of the laws of the several states of the United States, and under federal
law, and ____________________ agrees that it is hereby estoppel from making any claim to the
contrary in any matter or proceeding involving the Source Code, whether or not ____________________
is a party thereto. ____________________ SHALL BE STRICTLY AND ABSOLUTELY
LIABLE TO ____________________ FOR ANY DISCLOSURE OF THE SOURCE CODE OR
ANY PART THEREOF TO ANY THIRD PARTY, AND FOR ANY BREACH OF THE
SECRECY AND CONFIDENTIALITY OF THE SOURCE CODE. Consistent with the foregoing,
____________________ shall implement sufficient procedures, policies and checkpoints to prevent the
disclosure of the Source Code, and will advise and provide copies to ____________________ of all of
same from time to time at the request of ____________________, at the cost and expense of Licensee.
The foregoing shall include, but not be limited to (i) implementing procedures which wil l limit
____________________' employees’ ____________________ to the Source Code to those who
must have ____________________ to the Source Code to allow ____________________ the practical
benefit of this Agreement, and (ii) implementing procedures and policies for the security of the Source
Code.
d. shall use the Source Code only for the exclusive and restricted purpose of installing it on the
____________________ host computer in effort to facilitate a resolution to the defect involving
____________________’s change control management system. ____________________ shall not
install the Source Code on any computer, host or location site that is not a computer, host or location site
duly licensed under Schedule "A."
e. The failure of ____________________ to perform any of the foregoing duties, and/or
____________________’s any breach of the security and confidentiality of the Source Code, or the
disclosure of the Source Code to any third party, arising out of acts or omissions of
____________________ respecting the Source Code, whether or not due to the fault or negligence of
____________________, shall constitute a material breach of this Agreement.
5. LIMITED WARRANTY. ____________________ warrants that it is the sole owner of the Source Code; that it
has the sole interest, right and title to all copyrights and trade secrets associat ed therewith; that it has no knowledge
or reason to believe that the Source Code may lead to any claims of infringement of any copyright, trade secret or
other property right by any third party. ____________________ will defend at its expense any action brought
against ____________________ to the extent that it is based on a claim that the Code infringe s a copyright in the
United States, subject to the limitation of liability stated in Paragraph 11. ____________________ will pay any
costs and damages finally awarded against ____________________ in such action which are attributa ble to such
claim, provided that ____________________ notifies ____________________ promptly in writing of the claim and
permits ____________________ to fully participate in the defense and may, at its option, assume the defense of
such claim, in which case ____________________ shall cooperate in the defense and in any settlem ent of such
claim. Should the Source Code become the subject of a claim of infringement of a c opyright,
____________________ may procure for ____________________ the right to continue using the Source Code, or
replace or modify it to make it non-infringing, or discontinue it. ____________________ shall have no liabil ity for
any claim of copyright or patent infringement based on (a) use of other than the exact ve rsion of the Source Code as
delivered to ____________________ pursuant to this Agreement, if such infringement would have been avoided by
the use thereof, or (b) use of any modified version of the Source Code or combination of the Source Code with non-
____________________ programs or data if such infringement would have been avoided without such use or
without such combination with other programs or data. The foregoing states the entire l iability of
____________________ with respect to infringement of any copyright by the Source Code or any parts thereof and
____________________ shall have no liability with respect to any other proprietary rights.
6. DISCLAIMER OF WARRANTIES. THE FOREGOING WARRANTY IS IN LIEU OF ALL OTHER
WARRANTIES EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED
WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.
____________________ WILL NOT BE OBLIGATED TO MAKE ANY WARRANTY ADJUSTMENTS
HEREUNDER, THE SOURCE CODE IS HEREBY ACCEPTED BY ____________________ "AS IS.”
____________________ MAKES NO WARRANTY WHATSOEVER REGARDING THE SOURCE
CODE, OTHER THAN AS SET FORTH IN PARAGRAPH 10, AND SPECIFICALLY DOES NOT
WARRANT THAT THE FUNCTIONS CONTAINED IN THE SOURCE CODE WILL MEET
____________________’ REQUIREMENTS OR THAT THE OPERATION OF THE SOURCE CODE
WILL BE UNINTERRUPTED OR ERROR-FREE, ALL OF SUCH WARRANTIES BEING
HEREBY DISCLAIMED BY ____________________ IN ALL RESPECTS. __________________ IS
ADVISED TO TEST THE SOURCE CODE THOROUGHLY BEFORE RELYING ON IT.
7. LIMITATION OF LIABILITY AND RELEASE . IN NO EVENT WILL
____________________ BE LIABLE TO ____________________ FOR ANY
COMPENSATORY DAMAGES OR FOR CONSEQUENTIAL DAMAGES, EVEN IF
____________________ HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES, ANY AND ALL SUCH DAMAGE CLAIMS BEING HEREBY
SPECIFICALLY AND KNOWINGLY WAIVED AND RELEASED BY
____________________. ____________________' LIABILITY HEREUNDER FOR
DAMAGES INCLUDING, BUT NOT LIMITED TO, LIABILITY FOR PATENT OR
COPYRIGHT INFRINGEMENTS, REGARDLESS OF THE FORM OF ACTION, SHALL
NOT EXCEED THE CHARGES PAID BY ____________________ FOR THE SOURCE
CODE. ____________________ WILL NOT BE LIABLE FOR ANY LOST PROFITS,
OR FOR ANY CLAIM OR DEMAND AGAINST ____________________.
8. TERM OF THE LICENSE. This license shall become effective upon the parties execution hereof, and
shall remain in effect for the term of the license to ____________________ set forth in Schedule A. A
default by ____________________ of the License Agreement set forth in Schedule A shall constitute an
immediate termination of the license granted hereunder and shall require ____________________ to
uninstall and return to ____________________ the Source Code.
9. PROPERTY OF ____________________ . ____________________ is not allowed to modify or alter
the Source Code. However, should ____________________ breach this Agreement and alter or modify
the Source Code all work and/or modifications performed to the Source Code by ____________________,
including but not limited to, the development, modification or enhancement of the Source Code, computer
programs, operating instructions, design concepts and all other documentation developed for or rela ting to
the Source Code and all documents, data and other information of any kind, including informa tion
incorporating, based upon, or derived from the foregoing, including reports and notes prepared by
____________________ and its employees and agents, and all deliverables developed or prepared by
____________________ (whether or not completed) together with all modifications, revisions, changes,
copies, translations, compilations, partial copies with modifications and derivative works, shall be and shall
remain the property of ____________________. All applicable rights to patents, copyrights,
trademarks, trade secrets and all other property rights in such work and deliverables are, shall be and
shall remain in ____________________, and neither ____________________ nor its employees shall have
any property interest in such work and the deliverables. All right, title and interest the rein, all rights to
patents, trade secrets, trademarks or copyrights inherent therein and appurtenant thereto a re hereby
irrevocably property of ____________________. ____________________ shall keep the Source Code
free and clear of all claims, encumbrances and liens and any act of ____________________ purporting to
create such claims, encumbrances or liens, shall be void, and shall constitute a material breach of this
Agreement.
10. ASSIGNMENT . This License, and all or any of the rights granted hereunder, may not be assigned or
transferred in any manner without the advance written permission of ____________________, which may
be withheld for any reason. Any attempted or purported assignment or transfer shall be void and shall
constitute a material breach of this Agreement.
11. SURVIVAL OF OBLIGATIONS . The obligation of ____________________ to maintain the secrecy and
confidentiality of the Source Code, and to prevent its disclosure to third parties, shall survive the
termination of this Agreement, for any reason, and shall continue and survive any claim made by
____________________ against ____________________ with respect to the secrecy and confidentiality
of the Source Code and/or its disclosure, regardless of the resolution of any such claim.
12. __________________'s REMEDIES . __________________ hereby acknowledges
__________________'s proprietary interest in the Source Code, the need not to disclose the Source Code to
third parties, and the need to maintain inviolate the secrecy and confidential ity of the Source Code, as the
Source Code is a material and substantial asset of the business of ____________________, the disclosure
or breach of security or confidentiality of which by ____________________ would result in irretrievable
and irreparable harm and damage to the value of ____________________' business. Accordingly,
____________________ hereby agrees that ____________________ shall have the right to enjoin any
activity of ____________________ respecting its use of the Source Code, which may in any manner whatsoever jeopardize or threaten the disclosure or the secrecy and confidentiality of the Source
Code, whether or not the act or omission of ____________________ in question is specifically
prohibited by this Agreement. Furthermore, ____________________ acknowledges and agrees that the
use or incorporation of the Source Code resulting in the development of a product competitive with
____________________ will result in damage to ____________________ which is significant, material,
and difficult, if not impossible, of ascertainment as of the date of this Agreement, as a re sult of which
____________________ and ____________________ agree that ____________________ shall be liable
to ____________________ for all compensatory, consequential, continuing, exemplary and future damages
in the amount of $___________ in the event of any such use, and in addition thereto,
____________________ shall pay to ____________________ all costs and attorneys' and expert witness
fees incurred by ____________________ in the enforcement of this or any other provision of this
Agreement.
13. SEVERABILITY. If any provision of this Agreement shall be held by a court of competent
jurisdiction to be contrary to any law, the remaining provisions shall remain in full force as if said provision
never existed.
14. INTERPRETATION AND VENUE . This Agreement shall be construed and governed according
to the laws of the State of Illinois and, where necessary, under the United States Copyright Act and
applicable international treaties. Any and all litigation involving either part y's rights and duties under this
Agreement shall be brought in ___________ County, Illinois, U.S.A. The parties hereto agree to
submit to the personal and exclusive jurisdiction of the federal and state courts of Il linois with respect to
any dispute arising out of this Agreement.
15. NOTICES. All notices, demands or consents required or permitted under this Agreement shall be in
writing and delivered personally or sent by certified or registered mail to the respec tive party at the
addresses set forth on the first page of this Agreement or at such other address as shall be gi ven by either
party to the other in writing.
16 . ENTIRE AGREEMENT. This Agreement constitutes the entire agreement between the parties
concerning the subject matter hereof, superseding all prior negotiations and discussions.
17. WAIVER AND AMENDMENTS . No waiver, amendment or modification of any provision of
this Agreement shall be effective unless consented to by both parties in writing. No failure or delay by
either party in exercising any right, power or remedy under this Agreement shall operate a s a waiver of any
such right, power or remedy.
18. TITLES AND HEADINGS. The titles and headings of each section are intended for convenience only
and shall not be used in construing or interpreting the meaning of any particular clause or section.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their respective officers
duly authorized in their behalf as of this day of
19___.
____________________: ____________________
Name: Name:
Title: Title:
Date: __________________________