Software Distribution Agreement (International)

SOFTWARE DISTRIBUTION AGREEMENT (INTERNATIONAL)
This Software Distribution Agreement ("Agreement") is made

between _______________________ ("Software Owner") and
____________________________ ("Distributor").
1. Definitions
a. Software. The term "Software" means the computer programs,

including the machine-readable object code and partial source code, and
manuals identified in Exhibit A. The term "Software" includes all
modifications, enhancements and releases of the computer programs and
manuals.
b. Licensee. The term "Licensee" means any person or entity that

enters into a Software License Agreement for the Software as a result of
Distributor's efforts.
c. Prime Territory. The term "Prime Territory" means

____________________________.
d. Secondary Territory. The term "Secondary Territory" means

____________________________.
e. Minimum Revenue Quota. The term "Minimum Revenue Quota"

or "Quota" means all licensing revenue paid to Distributor attributable to
licenses obtained by Distributor's efforts in the Prime Territory in an amount
established in accordance with Section 2.b.
f. Base License Fees. The term "Base License Fees" means the fees
set forth in Exhibit A for the Software.
2. Appointment
a. Prime Territory. Subject to Section 2.b below, Software Owner

appoints Distributor as its exclusive marketing representative for the
Software in the Prime Territory.
b. Prime Territory Minimum Revenue Quota. Distributor agrees that
during each successive twelve-month period after the effective date of this
Agreement it will achieve the Minimum Revenue Quota for licensing the
Software to Licensees in the Prime Territory. The initial Quota will be
$______________. The Quota for subsequent twelve-month periods will be
subject to negotiation. In case of failure to agree, the Quota will be equal to
_______________ percent (____%) of the Quota during the previous
twelve-month period. If Distributor fails to achieve the Quota in any twelve-
month period, Software Owner or Distributor may terminate this Agreement
by giving notice within __________ (__) days of the end of the period.
c. Secondary Territories. Software Owner appoints Distributor as its

nonexclusive marketing representative for the Software in the Secondary
Territories. Software Owner may terminate this appointment at any time for
all or any part of the Secondary Territories by giving notice to Distributor at
least _________ (___) days prior to the effective date of the termination.
3. Obligations of Software Owner
a. Delivery of Software. Software Owner shall provide Distributor

with a copy of the Software.
b. Promotional Material. Software Owner, upon receipt of

Distributor's order and payment for printing expenses, will provide
Distributor with promotional materials in the English language for use in
marketing the Software. Distributor will reimburse Software Owner for
shipping costs.
c. Corrections. Software Owner will provide Distributor with

corrections and, at the option of Software Owner, enhancements to the
Software for transmission to Licensees. Distributor agrees that Software
Owner will provide corrections only for the current version(s) of the
Software as released by Software Owner.
d. Marketing Assistance. Software Owner will provide Distributor (i)

a complete list of current customers in the Prime and Secondary Territories,
and (ii) the names of any sales leads in the Prime and Secondary Territories
known to Software Owner.
e. Training. Software Owner will provide Distributor with technical
training as deemed reasonable by Software Owner. Where Distributor's
personnel travel to the United States, training facilities and associated costs
will be at Software Owner expense, and travel, hotels, and other associated
costs for Distributor's personnel shall be at Distributor's expense. For
training conducted in Distributor's Prime or Secondary Territories, travel,
hotels, and other associated costs for Software Owner's personnel, as well as
training facilities and associated costs, will be borne by Distributor.
4. Obligations of Distributor
a. Marketing. Distributor will bear all expenses for its operation and
staff. Distributor will advertise and promote the Software at Distributor's
expense.
b. Purchase Order. Distributor will obtain from each prospective

Licensee a purchase order.
c. Software License Agreement. Distributor will obtain from each

prospective Licensee a Software License Agreement signed by an authorized
representative of Licensee. Such Agreement shall take effect upon signature
by an authorized representative of Software Owner in the United States.
d. Delivery of Software. Upon receipt of notice from Software Owner

that Licensee and Software Owner have entered into a Software License
Agreement, Distributor shall deliver to Licensee the Software identified in
such Software License Agreement. Distributor agrees not to allow any
prospective Licensee or other person or entity to have a copy of any
Software until such party has entered into a Software Licensing Agreement
with Software Owner.
e. Distributor's Services. Distributor will provide installation

assistance and provide first level support and maintenance services, which
will include resolving problems not caused primarily by the Software's
malfunction.
f. No Modification or Reverse Engineering. Distributor will not

modify or enhance the Software without Software Owner's prior written
consent. Software Owner shall own all proprietary rights in any such
modifications or enhancements and Distributor transfers and assigns to
Software Owner all proprietary rights, including copyright, patent, and trade
secret rights, to any such modifications or enhancements. In addition,
Distributor agrees not to reverse engineer or decompile the Software.
g. Reports. Within ten (10) days after March 31, June 30, September
30 and December 31 of each year, Distributor will provide Software Owner
the following activity reports:
i. A Marketing Report that describes Distributor's promotional

activities during the prior period and listing the names and addresses of
prospective Licensees.
ii. A Licensee Report that identifies each Licensee who

submitted a purchase order, entered into a Software License Agreement or
canceled a Software License Agreement.
iii. A Statement of all sums due and/or paid by each Licensee.
iv. A Trouble Report identifying any problems believed by

Distributor to be caused by errors in the Software.
h. Records. Distributor agrees to maintain full, clear and accurate

records with respect to the Software, all licenses and agreements related to
the Software, and all revenue derived from the Software.
i. Non-compete. During the term of this Agreement, Distributor

agrees not to engage in the marketing or development of any computer
programs with functionality substantially similar to or competitive with the
Software.
5. Payment
a. Procedure. Distributor will collect fees from Licensees in

accordance with the Software License Agreements. Distributor will remit
the amount due Software Owner in United States currency within
_________ (__) days after the close of each calendar year quarter.
b. Amount. With respect to each Licensee, the amount due Software
Owner will be equal to __________ percent (___%) of the greater of (i) the
Base License Fees for the Software licensed by the Licensee, or (ii) the
license fee Distributor actually receives from the Licensee.
c. Taxes; Deductions. Distributor agrees to pay all taxes, fees, value

added surcharges, import and export duties, and other assessments levied by
federal, state, local and other governments in the Prime or Secondary
Territories related to the license and maintenance of the Software under this
Agreement, except for: (i) any withholding taxes on amounts due Software
Owner, which shall be borne by Software Owner and which shall be
deducted by the Distributor from any payment remitted to Software Owner;
and (ii) any taxes based on Software Owner's net income. Distributor will
withhold taxes on amounts due Software Owner in accordance with any
applicable conventions or treaties with the United States.
d. Verification. Software Owner or an independent accountant at

Software Owner's expense will have access, at least annually, to Distributor's
records to the extent reasonably necessary to verify Distributor's compliance
with the terms of this Agreement.
e. Interest. If Distributor fails to pay any amounts when due,

Distributor shall pay Software Owner interest on the unpaid amount at the
rate of __________________ percent (__%) per annum, and Software
Owner may treat such noncompliance as grounds for termination of this
Agreement.
6. Risk of Loss and Insurance
a. Risk of Loss or Damage. From and after the date of delivery of the
Software to Distributor, Distributor shall bear the entire risk of the
Software's loss, theft, damage or destruction. In no event will Software
Owner be responsible for any loss or damage caused by Distributor's failure
to perform Distributor's responsibilities.

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Software Distribution Agreement (International)

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SOFTWARE DISTRIBUTION AGREEMENT (INTERNATIONAL)

This Software Distribution Agreement ("Agreement") is made

a. Software. The term "Software" means the computer programs,

b. Licensee. The term "Licensee" means any person or entity that

c. Prime Territory. The term "Prime Territory" means

d. Secondary Territory. The term "Secondary Territory" means

e. Minimum Revenue Quota. The term "Minimum Revenue Quota"

a. Prime Territory. Subject to Section 2.b below, Software Owner

c. Secondary Territories. Software Owner appoints Distributor as its

3. Obligations of Software Owner

a. Delivery of Software. Software Owner shall provide Distributor

b. Promotional Material. Software Owner, upon receipt of

c. Corrections. Software Owner will provide Distributor with

d. Marketing Assistance. Software Owner will provide Distributor (i)

b. Purchase Order. Distributor will obtain from each prospective

c. Software License Agreement. Distributor will obtain from each

d. Delivery of Software. Upon receipt of notice from Software Owner

e. Distributor's Services. Distributor will provide installation

f. No Modification or Reverse Engineering. Distributor will not

i. A Marketing Report that describes Distributor's promotional

ii. A Licensee Report that identifies each Licensee who

iii. A Statement of all sums due and/or paid by each Licensee.

iv. A Trouble Report identifying any problems believed by

h. Records. Distributor agrees to maintain full, clear and accurate

i. Non-compete. During the term of this Agreement, Distributor

a. Procedure. Distributor will collect fees from Licensees in

c. Taxes; Deductions. Distributor agrees to pay all taxes, fees, value

d. Verification. Software Owner or an independent accountant at

e. Interest. If Distributor fails to pay any amounts when due,

6. Risk of Loss and Insurance

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