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License to Use Software Agreement


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Introduction
Description
Use
Table of Contents

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Introduction

When designing a system to manage its operations, a business must make one significant choice regarding software: should it manage its operation with software available on the market or should it use the services of a programmer to develop custom software for the business?

Sometimes, the software available on the market is sufficient to meet the needs of the business. In such case, there is no need to invest money in the development of custom software. However, in that case, the business has to enter into a license agreement with the owner of the software. This document establishes the main financial and legal framework of such a license.

Description

The License to Use Software Agreement is the legal instrument by which the OWNER, a person who has designed and developed software, grants to another person, called the "LICENSEE", the right to use such software in exchange for payment.

Use

We recommend the use of this document to govern the relationship between a person desiring, as part of its business operations, to use any software through a license, while retaining the services of its designer to train its staff, to install the product and to maintain it. The software discussed here is obviously not a mass consumption product developped by a large software development firm and commercialized under standard licenses, but rather specialized software requiring specific documentation and support. The decision to purchase such software is usually made by the Chief Information Officer (see document C03.400 of the Business Precedents), who can also elect to instead proceed through a Programming Agreement (see document I03.200 of the Business Precedents).

Table of Contents

0.00 INTERPRETATION
0.01 Definitions
0.01.01 Activities
0.01.02 Agreement
0.01.03 Authorized Location
0.01.04 Breach
0.01.05 Change in Control
0.01.06 Confidential Information
0.01.07 Designated Equipment
0.01.08 Encumber or Encumbrance
0.01.09 Event of Default
0.01.10 Force Majeure
0.01.11 Fundamental Provisions
0.01.12 Improvements
0.01.13 Intellectual Property
0.01.14 Legal Representatives
0.01.15 Module
0.01.16 PARTY
0.01.17 Person
0.01.18 Prime Rate
0.01.19 Related Person
0.01.20 Software
0.01.21 Source Code
0.01.22 Source Documentation
0.01.23 Subsidiary
0.01.24 Trial Period
0.01.25 User Documentation
0.02 Precedence
0.03 Jurisdiction
0.03.01 Governing Law
0.03.02 Non-compliance
0.04 Miscellaneous
0.04.01 Cumulative Rights
0.04.02 Time and Dates
0.04.03 Financial References
0.04.04 References within Agreement
0.04.05 Gender and Number
0.04.06 Headings
0.04.07 Presumptions
0.04.08 Knowledge
0.04.09 Approval
0.04.10 GAAP
1.00 PURPOSE
1.01 License
1.02 Conditions
1.02.01 Required by OWNER
1.02.02 Required by LICENSEE
1.02.03 Choice
2.00 CONSIDERATION
2.01 Fee
2.01.01 Licence
2.01.02 Acknowledgement
2.02 Adjustment
3.00 TERMS OF PAYMENT
3.01 Fee
3.02 Adjustment
3.03 Interest
3.04 Loss of Term
4.00 SECURITY
4.01 In favour of OWNER
4.02 In favour of LICENSEE
4.03 Escrow
5.00 MUTUAL REPRESENTATIONS AND WARRANTIES
5.01 Status
5.02 Authority
5.03 Binding Agreement
5.04 Canadian Resident
5.05 Commission
5.06 Insurance
5.07 Nominee
5.08 Fundamental Provisions
5.09 Disclosure
6.00 REPRESENTATIONS AND WARRANTIES OF THE OWNER
6.01 Status
6.02 Authority
6.03 Binding Agreement
6.04 Insurance
6.05 Nominee
6.06 Fundamental Provisions
6.07 Disclosure
6.08 Sole Owner
6.09 Exclusivity
6.10 Originality
6.11 Conformity
6.12 Conflict
6.13 Encumbrance
7.00 REPRESENTATIONS AND WARRANTIES OF THE LICENSEE
7.01 Status
7.02 Authority
7.03 Binding Agreement
7.04 Insurance
7.05 Nominee
7.06 Fundamental Provisions
7.07 Disclosure
7.08 Assessment
7.09 Exportation
8.00 MUTUAL DUTIES AND OBLIGATIONS
8.01 Confidential Information
8.01.01 Undertaking
8.01.02 End of Agreement
8.02 Insurance
8.02.01 Insured Risks
8.02.02 Amount of Coverage
8.02.03 Issuer
8.02.04 Co-insured
8.02.05 No Limitation
8.03 Indemnification
8.03.01 “Loss”
8.03.02 Scope
8.03.03 Procedure
8.03.04 Deductible
8.03.05 Limitation on Claims
8.04 Disclosure of Agreement
9.00 DUTIES AND OBLIGATIONS OF THE OWNER
9.01 Delivery
9.02 Peaceful Enjoyment
9.03 Assessment
9.04 Training
9.05 User Documentation
9.06 Warranty
9.06.01 Instructions
9.06.02 Notification Period
9.06.03 Loss of Benefit
9.06.04 Exception from Coverage
9.07 Indemnification
9.08 Technical Support
9.09 Services - Maintenance
10.00 DUTIES AND OBLIGATIONS OF THE LICENSEE
10.01 Use
10.02 Prohibition
10.03 Intellectual Property
10.04 Non-solicitation of Staff
10.05 Source Code
10.06 Inspection
11.00 SPECIAL PROVISIONS
11.01 Assignment
11.01.01 Prohibition
11.01.02 Effect of Breach
11.01.03 Exception
11.02 Force Majeure
11.02.01 No Default
11.02.02 Duty
11.02.03 Rights of Other PARTY
11.03 Relationship
11.03.01 Independent Contractors
11.03.02 No Control over Performance
11.03.03 No Authority to Bind
11.04 Further Assurances
11.05 Other Remedies
11.05.01 Choices
11.05.02 No Limitations
11.06 Prescription
11.07 Intellectual Property
12.00 GENERAL PROVISIONS
12.01 Notice
12.02 Dispute Resolution
12.02.01 Good Faith Negotiations
12.02.02 Mediation
12.02.03 Arbitration
12.03 Election
12.04 Counterparts
12.05 Amendment
12.06 Waiver of Rights
12.07 Electronic Transmission
12.08 Language
13.00 TERMINATION
13.01 Mutual Consent
13.02 Unilateral Termination
13.03 Resiliation
13.03.01 With FIVE (5) days’ Prior Notice
13.03.02 With SIXTY (60) Days’ prior notice
13.04 Change in Control
13.05 Termination of Agreement Procedure
13.05.01 Return
13.05.02 Conservation
14.00 EFFECTIVE DATE
14.01 Retroactivity
14.02 Execution
14.03 Deferral
15.00 DURATION
15.01 Probationary or Trial Period
15.02 Initial Term
15.03 Renewal
15.03.01 First Renewal
15.03.02 Subsequent Renewals
15.04 Survival
15.05 Non Renewal
16.00 SCOPE


SCHEDULE A – EXCERPT FROM A RESOLUTION OF THE OWNER
SCHEDULE B – EXCERPT FROM A RESOLUTION OF THE LICENSEE
SCHEDULE 0.01.07 – DESIGNATED EQUIPMENT
SCHEDULE 0.01.15 – LIST OF MODULES INCLUDED IN THE SOFTWARE
SCHEDULES 2.01.02 – MODULES USED
SCHEDULE 4.03 – ESCROW AGREEMENT
SCHEDULE 9.04 – TARIFICATION
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