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Software Adaptation, Distribution and Support Agreement


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Introduction
Description
Use
Table of Contents

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Introduction

The commercial distribution of software intended for a specific market often involves the establishment of a specific distribution network covering all the territories targeted by the business having developed such software. Many software developers retain the services of businesses specializing in programming and consulting and acting in a specific territory to adapt, distribute and support their software within a specific market segment they cannot or do not want to serve directly. That way, the software developer secures a larger market for its product, while ensuring that the technical support required to make its product attractive is available in such markets.

This document establishes the main components of the legal framework governing the distribution of such software.

Description

The Software Adaptation, Distribution and Support Agreement is the legal instrument which evidences the transaction by which a business having developed software, known as the DEVELOPER, grants to a business offering programming and distribution services, called the DISTRIBUTOR, the rights to adapt, sell and support its software in a specific territory.

Use

We recommend the use of this document to govern the relationship between the developer of the software, who lacks the resources to distribute its product in all markets, and a business operating in a territory which has the resources to ensure adaptation, distribution and after-sales support necessary to satisfy any user of such software. The software discussed here is obviously not a mass consumption product developped by a large software development firm and simply requiring distribution without added value. It is instead highly specialized software, with specific documentation and technical support requirements requiring local support, which is why a added value distributor with the ability to contribute to the software it distributes is important

From the customer's point of view, 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). This decision is often made in parallel with the decision to purchase new equipment (see document I01.200 of the Busines Precedents), in which case the supplier may also be the distributor of the software, acting as a reseller of computer equipment. This is then called a turnkey installation agreement.

Table of Contents

0.00 INTERPRETATION
0.01 Definitions
0.01.01 Activities
0.01.02 Agreement
0.01.03 Best Effort
0.01.04 Breach
0.01.05 Change in Control
0.01.06 Clientele
0.01.07 Confidential Information
0.01.08 Duration
0.01.09 Encumber or Encumbrance
0.01.10 Escrow Agreement
0.01.11 Event of Default
0.01.12 Force Majeure
0.01.13 Fundamental Provisions
0.01.14 Improvements
0.01.15 Intellectual Property
0.01.16 Legal Representatives
0.01.17 PARTY
0.01.18 Person
0.01.19 Prime Rate
0.01.20 Related Person
0.01.21 Rights
0.01.22 Software
0.01.23 Source Code
0.01.24 Subsidiary
0.01.25 System Documentation
0.01.26 Territory
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 Grant
1.02 Conditions
1.02.01 Required by DEVELOPER
1.02.02 Required by DISTRIBUTOR
1.02.03 Choice
2.00 CONSIDERATION
2.01 Lump Sum
2.02 Royalties
2.02.01 Amount
2.02.02 Minimum Royalties
3.00 TERMS OF PAYMENT
3.01 Lump Sum
3.02 Royalties
3.02.01 Date of Payment
3.02.02 Correction
3.02.03 Minimum Royalties
3.03 Deposit in Trust
3.03.01 Contest
3.03.02 Remittance to DEVELOPER
3.03.03 Remittance to DISTRIBUTOR
3.03.04 Adjustment
3.04 Location of Payment
3.05 Imputation of payments
3.06 Waiver of compensation
3.07 Interest
4.00 SECURITY
4.01 In favour of DEVELOPER
4.02 In favour of DISTRIBUTOR
4.03 Letter of Credit
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 DEVELOPER
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 Sole Author
6.10 Originality
6.11 Compliance
6.12 Grant of license
6.13 Solvability
6.14 Intellectual Property
6.15 Judicial Procedures
6.16 Continuous Effect
7.00 REPRESENTATIONS AND WARRANTIES OF THE DISTRIBUTOR
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 Resources
7.09 Contacts
7.10 Judicial Procedures
7.11 Solvability
7.12 Continuous Effect
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 DEVELOPER
9.01 Remittance
9.02 Escrow
9.03 Improvements
9.03.01 Undertaking
9.03.02 Notice
9.04 Assistance
9.04.01 Training
9.04.02 Support
9.05 Warranty
9.05.01 Defect
9.05.02 Liability
9.05.03 Indemnification
9.05.04 Insurance
9.06 Quality
9.07 Change in Orientation
9.07.01 Notice
9.07.02 Content
9.07.03 Abandonment
9.08 Marketing and Promotional Means
9.08.01 Supply
9.08.02 Collaboration
9.08.03 Publicity Budget
9.09 Non-sollicitation of Clientele
9.10 Non-competition
9.10.01 Scope
9.10.02 Penalty
9.10.03 Acknowledgement
9.11 Trade-mark
9.11.01 Registration
9.11.02 Infringement
9.12 Counterfeiture
9.13 First Refusal
9.14 Non-solicitation of Staff
9.15 End of the Agreement
10.00 DUTIES AND OBLIGATIONS OF THE DISTRIBUTOR
10.01 Adaptation
10.02 Distribution
10.02.01 Best Effort
10.02.02 Failure to Meet Objectives
10.03 Customer Service
10.03.01 Technical Support
10.03.02 After-sale Service
10.04 Rendering Account
10.05 Inspection
10.06 Defect
10.06.01 Correction
10.06.02 Loss of Benefit
10.07 Clientele Registration
10.08 Exclusivity
10.08.01 Scope
10.08.02 Extended Duration
10.08.03 Competing Software
10.09 No Contest
10.10 Acknowledgement
10.11 Prior Licenses and Assignments
10.12 Concurrential Watch
10.13 Warranty
10.13.01 Communication
10.13.02 Liability
10.13.03 Indemnification
10.13.04 Insurance
10.14 Reproduction
10.14.01 Undertakings
10.14.02 Notice
10.15 Improvements
10.15.01 Journal
10.15.02 Ownership
10.16 New Function
10.16.01 Addition
10.16.02 Acknowledgement
10.17 Taxes
10.17.01 Responsibility
10.17.02 Indemnification
10.17.03 Sales Tax
10.18 Non-solicitation of staff
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 Without Notice
13.03 Prior Notice
13.04 Change in Control
13.05 Procedure
13.06 Effects
13.06.01 Rights
13.06.02 Documentation
13.06.03 Promotional Documents
13.06.04 Correspondence
13.06.05 New Grant
13.07 Unpaid Royalties
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
15.04 Survival
15.05 Non Renewal
16.00 SCOPE


SCHEDULE A – EXCERPT OF A RESOLUTION OF THE DEVELOPER
SCHEDULE A – EXCERPT OF A RESOLUTION OF THE DISTRIBUTOR
SCHEDULE 0.01.22 – DESCRIPTION OF SOFTWARE FUNCTIONS
SCHEDULE 9.02 – SOFTWARE ESCROW AGREEMENT
SCHEDULE 9.04 – DEVELOPER’S TECHNICAL SUPPORT
SCHEDULE 10.01 – SOFTWARE ADAPTATION SPECIFICATIONS
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Civil Law Version
Updated 14-02-2009
Québec
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