4.29 Form: Web-Based Services Reseller Agreement
This RESELLER AGREEMENT ("Agreement") is made and entered into this ____ day of
______ (the "Effective Date") by and between Vendor, a company having a
principal place of business at ________________("Vendor"), and Company, a
__________ company having a principal place of business at ____________________ ("Company").
In consideration of the mutual promises and undertakings set forth herein, the
parties hereby agree as follows:
1. Background. Vendor is [describe service] (the "Vendor Service"). Company is in the
business [describe business] located at URL www.____.com. Vendor and Company
desire to enter into a reseller arrangement whereby Company will offer to its
customers ("Customers") the Vendor Service as a component of certain Company
product offerings (the "Company Products"), all on the terms and conditions
contained herein.
2. Authorization to Resell.
(a) Grant of Rights. Subject to the terms and conditions of this
Agreement, Vendor hereby grants Company a world-wide, limited, revocable, non-
exclusive, non-transferable, non-sublicensable right, during the Initial Term or
any Renewal Term hereof, to market, promote and sell access to the Vendor
Service to Customers as part of the Company Products, via the website located at
the URL www.________________.com or such other website approved in writing by
Vendor (the "Host Site"), all subject to the terms and limitations contained in
this Agreement. Before granting any Customer access to the Vendor Service,
Company will require such Customer first to consent to the Vendor Terms and
Conditions of Use, as amended from time to time by Vendor (the "Vendor Terms of
Use "), a current copy of which is attached as Exhibit A hereto, and shall
record such Customer consent in a reproducible and verifiable format, records of
which shall be provided by Company to Vendor no less frequently than quarterly.
In no event shall a Company Customer be granted a right to sublicense or
distribute the Vendor Service to other Company Customers, persons or entities. (b) Subscriptions. [Describe the logistics of subscribing (e.g., will
Company be given passwords or will there simply be a link to the Vendor
Subscription page?)] (c) Trademark Use. To carry out the terms of this Agreement, Company may,
for so long as Company is not in default under this Agreement or any other
agreement with Vendor, use the Vendor trademarks and trade names set forth in
Schedule A (the "Marks") in advertising and promoting the Vendor Service.
Company's use of the Marks is under the control and supervision of Vendor, and
all such uses inure to the benefit of Vendor. Company shall acquire no legal
rights in the Marks. Company shall obtain Vendor's prior approval of all uses of
the Marks, which approval Vendor shall not unreasonably withhold. From time to
time, upon Vendor's reasonable request, Company shall provide Vendor with
samples of all such advertising and promotional materials bearing any of the
Marks. During the term of this Agreement, Company shall conduct its business and
operations with at least the same degree of care and quality that Company used
immediately prior to the execution of this Agreement. Company hereby grants
Vendor the non-exclusive, non-transferable, worldwide right, during the term
hereof, to use Company's trademarks, tradenames and logos in all of Vendor's
promotional materials, including such materials posted on the internet.
(d) Limited Rights. Company acknowledges that the grant of rights herein
shall not impair or restrict any rights previously granted by Vendor to any
third party, or affect Vendor's right to grant any such rights in the future.
All rights not expressly granted to Company herein are reserved to Vendor.
3. Limitations and Restrictions.
(a) Restrictions on Use. Company acknowledges that it may only sell access
to the Vendor Service as expressly outlined above and may not otherwise use,
sell, rent, lease, transfer, distribute, publish, reproduce, copy, display, or
prepare derivative works from the Vendor Service or any part thereof. Company
further agrees that it shall not make, publish or distribute, or cooperate with
any third party in making, publishing or distributing, any public announcements,
press releases, advertising, marketing, promotional or other materials (whether
in print, electronically or otherwise) that relate to the Vendor Service or this
Agreement or that use Vendor's name, trademarks, logos or other branding,
without Vendor's prior written approval.
(b) Suspension of Access. Vendor reserves the right to deactivate or
suspend Company's access to or any Customer's use of the Vendor Service, if the
same is found or reasonably suspected to involve or facilitate illegal, abusive
or unethical activities as determined in accordance with the Vendor Terms of Use
or other policies. Such activities include (without limitation) pornography,
obscenity, nudity, violations of law or privacy, hacking, computer viruses,
gambling or other business activities requiring licensure not properly obtained,
unsolicited bulk mail messages ("spamming"), impersonation of originating
messages ("spoofing"), breach of security, or any harassing or harmful materials
or uses. (c) Compliance with Laws. Company represents and warrants that it will, at
all times during the term of this Agreement, comply with any and all applicable
laws, rules and regulations, including, without limitation, any and all laws or
regulations governing privacy, the use of data, consumer protection, and the
export of software.
4. Intellectual Property Rights.
Notwithstanding anything to the contrary herein, Vendor shall retain, and
neither Company nor its Customers shall obtain or claim (i) all title to, and,
except as expressly licensed herein, all rights to the Vendor Service, all
techniques and ideas imbedded therein, all copies and derivative works thereof
(by whomever produced, including all changes and improvements requested or
suggested by Company or its Customers) and all related documentation and
materials, and (ii) all copyrights, patent rights, trade secret rights and other
proprietary rights in the Vendor Service.
5. Fees and Payments.
(a) Subscription Fees. For each Company Customer who subscribes to the
Vendor Service, Company shall pay to Vendor, on a quarterly basis, the
subscription fees specified in Schedule A ("Fees"). Company, and not Vendor,
shall establish all Company Customer fees. If Company is unable or unwilling to
collect fees from Company Customers, this shall have no effect on the fees owed
by Company to Vendor hereunder. (b) Payments. Company agrees to pay all Fees hereunder when due, and any
Fees not paid within thirty (30) days will bear interest at the rate of one and
a half percent (1.5%) per month or the maximum rate permitted by applicable law,
whichever is lower. All payments made under this Agreement shall be in U.S. Dollars.
(c) Books and Records. Company shall, during the term of this Agreement,
and for a period of one (1) year thereafter, maintain records relating to the
contracts, invoices, accounts, complaints, and other transactions that occur
concerning this Agreement. Company agrees that Vendor shall, upon five (5) days'
prior written notice, have the right to inspect and audit such records and other
financial information pertaining to Company and this Agreement during normal
business hours. Company shall reimburse Vendor on a prompt basis for the cost of
any such audit in the event the audit reveals that the amount paid to Vendor is
at least ten percent (10%) less than the amount actually due.
6. Limited Warranties and Disclaimers.
(a) Warranty. Vendor warrants that it owns or has licensed all rights
necessary to grant Company the rights granted in this Agreement and that
Company's promotion and marketing of the Vendor Service in accordance with this
Agreement will not infringe any valid United States patent or copyright
belonging to a third party. (b) Exclusions. The foregoing notwithstanding, Vendor does not represent
or warrant that the Vendor Service will meet the requirements of Company or any
Customer or that the operation or use thereof will be uninterrupted or error-free. (c) Warranty Disclaimer; Assumption of Risk. TO THE MAXIMUM EXTENT
PERMISSIBLE UNDER APPLICABLE LAW, VENDOR, ON BEHALF OF ITSELF AND ITS SUPPLIERS,
EXPRESSLY DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, AT LAW OR IN
EQUITY, WITH RESPECT TO THE VENDOR SERVICE OR ITS CHARACTERISTICS, QUALITY,
PERFORMANCE OR VALUE, INCLUDING, WITHOUT LIMITATION, THE WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. (d) Damage Waiver. TO THE MAXIMUM EXTENT PERMISSIBLE UNDER APPLICABLE LAW,
VENDOR, ON BEHALF OF ITSELF AND ITS SUPPLIERS, HEREBY DISCLAIMS, AND AS AGAINST
VENDOR AND ITS SUPPLIERS COMPANY HEREBY WAIVES, ANY AND ALL LIABILITY FOR
SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES (INCLUDING, WITHOUT
LIMITATION, DAMAGES FOR LOST PROFITS, REVENUE, USE OR DATA) ARISING OUT OF THIS
AGREEMENT OR WITH RESPECT TO THE USE OF THE VENDOR SERVICE, EVEN IF VENDOR HAS
BEEN APPRISED OF THE POSSIBILITY OF SUCH DAMAGES. (e) Damage Limitation. To the maximum extent permissible under applicable
law, Company agrees that the cumulative liability of Vendor to Company or its
Customers for all claims arising out of or relating to this Agreement, if any,
whether based on breach of warranty, breach of contract, negligence, other tort
claims, strict liability, or any other legal theory, shall not exceed the Fees
paid by Company to Vendor hereunder. (f) Limitation on Actions. Neither party may bring any action, regardless
of form, arising out of nor relating to this Agreement more than one (1) year
after the cause of action has accrued. (g) Fair Risk. Company has carefully considered the risks and rewards
associated with the entirety of this Agreement, accepts the limitations and
disclaimers contained in this Section 6 and will not take any contrary position.
7. Term and Termination.
(a) Term. This Agreement shall commence on the Effective Date and continue
in effect for a period of one (1) year (the "Initial Term"), whereupon this
Agreement shall automatically renew for successive one (1) year periods (each a
"Renewal Term"), unless either party gives the other written notice of
termination at least thirty (30) days prior to the end of the Initial Term or
then-current Renewal Term. (b) Termination. Either party may terminate this Agreement immediately, if
the other party fails to perform or observe any material term or condition of
this Agreement and the failure continues unremedied for thirty (30) days after
receipt of written notice.(c) Events Upon Termination. Upon termination of this Agreement, all
rights granted hereunder to Company shall terminate and revert to Vendor, and
Company shall: (i) cease all advertising, marketing and sales of access to the
Vendor Service; (ii) cease all use of the Marks, (iii) pay to Vendor all Fees
owing as of the date of termination and (iv) continue to comply with the
confidentiality requirements set forth in this Agreement.
8. Confidentiality; Non-publication.
(a) Confidentiality. Both parties acknowledge that, during the term of
this Agreement, each party may provide the other with confidential and/or
proprietary information, including but not limited to data, information, ideas,
materials, specifications, procedures, schedules, software, technical processes
and formulas, source code, product designs, sales, cost and other unpublished
financial information, product and business plans, advertising revenues, usage
rates, advertising relationships, projections, marketing data or other relevant
information that is marked "confidential" (or similarly) or, if not so marked,
is clearly intended to be confidential (collectively, "Confidential
Information"). Each party shall protect all such Confidential Information of the
other with at least the same degree of care it uses to protect its own
confidential information, but not less than a reasonable degree of care. Neither
party shall use, disclose, provide, or permit any person to obtain any such
Confidential Information in any form, except for employees, agents, or
independent contractors whose access is required to carry out the purposes of
this Agreement and who have agreed to be subject to the same restrictions as set
forth herein. Each party acknowledges that the unauthorized use or disclosure of
the other party's Confidential Information would cause irreparable harm and
significant injury that may be difficult to compensate. Accordingly, each party
agrees that the other party will have the right to seek and obtain temporary and
permanent injunctive relief in addition to any other rights and remedies it may
have. The confidentiality obligations of this Section shall not apply to any
information received by a party that (i) is generally available to or previously
known to the public, (ii) can be reasonably demonstrated was known to such party
prior to the disclosure of the information (iii) is independently developed by
such party outside the scope of this Agreement without use of or reference to
the other party's Confidential Information, (iv) is lawfully disclosed pursuant
to a court order, provided that the party subject to such order shall promptly
notify the party whose Confidential Information is to be disclosed, so such
party may seek a protective or similar order or (v) is made available to the
receiving party by a third party without an obligation of confidentiality. (b) Non-Publication. Each party agrees that during the term of this
Agreement and for a one (1) year period following termination or expiration
hereof for any reason, it will not directly or indirectly publish any
comparative analysis, benchmark/performance data report or the like involving
the other party's software, products, or services without the prior written
consent of the other party.
9. Independent Contractor; Indemnification.
(a) Independent Contractor. Vendor and Company expressly acknowledge and
agree that they are acting as independent contractors and not employees or
agents of the other. Vendor and Company are not, and shall not in any direct or
indirect way hold themselves out as, or be considered to be, joint venturers,
partners, principals, servants, employees, or fiduciaries of each other, and
neither Vendor nor Company shall have the power to bind or obligate the other.
In particular but without limiting the generality of the foregoing, there shall
be no liability on the part of Vendor to any other person or entity for any
liability or debts howsoever incurred by Company.(b) Indemnification. Company shall defend, indemnify and hold harmless
Vendor and its officers, directors, employees, and agents from and against any
and all claims, costs, damages, expenses, losses or other liabilities
(including, without limitation, reasonable attorneys' fees) arising out of or in
any way related to (I) Company's negligence or willful misconduct, (ii)
Company's advertising, marketing or promotional activities, or (iii) the Company
products or the Host Site.
10. Miscellaneous.
(a) Entire Agreement. This Agreement, together with the attached Schedules
and Exhibits, shall constitute the entire agreement between the parties and
shall supersede any other existing agreements between them, whether oral or
written, with respect to the subject matter hereof. There are no oral
understandings or undertakings of any kind with respect hereto not expressly set
forth and contained herein. No agent of either party shall have any authority to
change or modify any of the terms of this Agreement and no amendment of this
Agreement shall be of any effect unless in writing and signed by a duly
authorized officer of each party.
(b) Force Majeure and Internet Frailties. Any delays in or failure by
either party hereto in the performance of any obligation hereunder shall be
excused if and to the extent caused by occurrences beyond such party's
reasonable control, including but not limited to acts of God, strikes or other
labor disturbances, war (whether declared or not), sabotage, interruption or
failure of telecommunication or digital transmission links, Internet slow-downs
or failures, and any other cause or causes, whether similar or dissimilar to
those herein specified, that cannot reasonably be foreseen or controlled by such
party. Company acknowledges that the Internet consists of a series of networks
that are subject to failures and errors in operation and transmission. In no
event shall Vendor be liable for or as a result of any such failures, errors,
access, modifications, diversions or disclosures. (c) Impossibility. In the event that further lawful performance of any
part of this Agreement by either party shall be rendered impossible by or as a
consequence of any law, or any act of any government or political subdivision
thereof having jurisdiction over such party or directly or indirectly over a
parent company of such party, such party shall not be considered in default
hereunder by reason of any failure to perform occasioned thereby. (d) Governing Law and Venue. This Agreement shall be interpreted and
construed under the laws of the State of [State] without regard to its conflicts
of law principles. Any claims or legal actions by one party against the other
arising under this Agreement shall be commenced in any state or federal court
located in the State of [State], and both parties hereby submit to the
jurisdiction and venue of any such court. If legal action is brought to enforce
this Agreement or any rights arising under this Agreement, the prevailing party
shall be entitled to recover all costs and expenses, including reasonable
attorneys' fees. (e) Assignment. Company shall not assign its rights, duties, or
obligations under this Agreement to any person or entity, in whole or in part,
whether by assignment, merger, transfer of assets, sale of stock, operation of
law, or otherwise, without the prior written consent of Vendor, and any attempt
to do so shall be deemed a material breach of this Agreement. (f) Notice. All notices hereunder shall be in writing. All such notices
may be given personally, by certified or registered mail, by overnight courier
using a delivery receipt of record or by facsimile transmission. All such
notices shall be deemed to be received as follows: (i) if delivered personally,
when received; (ii) if mailed, three (3) days after being mailed; (iii) if sent
by overnight courier, when signed for and (iv) if sent by facsimile, when the
fax has been transmitted over the telephone lines, as evidenced by a facsimile
confirmation report generated by the transmitting machine and provided any
facsimile transmission is followed up with a written notice sent by mail.
Notices shall be sent to the parties at the addresses listed above or at such
other addresses as the parties from time to time may designate.(g) Severability. If any provision of this Agreement is determined to be
invalid or unenforceable under any applicable statute or rule of law, such
provision shall be reformed to the minimum extent necessary to cause such
provision to be valid and enforceable, provided the reformed provision shall not
have a material adverse effect on the substantive rights of either party. If no
such reformation is possible, then such provision shall be deemed omitted, and
the balance of the Agreement shall remain valid and enforceable, unaffected by
such provision. (h) Waiver. No waiver of any provision of this Agreement shall be binding
unless executed in writing by the party making the waiver. No waiver of any of
the provisions of this Agreement shall be deemed a waiver of such provision on
any other occasion, nor the waiver of any other provision, whether or not
similar. No delay in the enforcement of any provision of this Agreement shall
constitute a waiver of the right to enforce such provision in that or any other instance.
(i) Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be considered an original and all of which
shall constitute one and the same instrument.
(j) Headings. The section headings used herein are for reference and
convenience only and shall not enter into the interpretation hereof.
(k) Survival. All provisions of this Agreement relating to
confidentiality, non-disclosure, proprietary rights, indemnification and
limitations of liability shall survive the termination of this Agreement.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by
their duly authorized representatives as of the date first written above.
VENDOR COMPANY.
By: By:
(Signature) (Signature)Name: Name:
Title: Title:
SCHEDULE A
Subscription Fees
EXHIBIT A
Vendor Terms of Use
[See Attached]