pageQ Web Page Player 2.0

SOFTWARE DISTRIBUTION AGREEMENT
THIS DISTRIBUTION AGREEMENT (the “Agreement”) is made as of 1 June, 2004 (the “Effective Date”) by and between Aspiring Software Limited of New Zealand (the “Supplier”), whose address is Unit 3, 1004 Ferry Road, PO Box 19-721, Christchurch, New Zealand, and the company who has chosen to distribute the products (the “Distributor”).
RECITALS
A. Supplier has created certain products known as the “pageQ®“ which are proprietary to Supplier.
B. Distributor desires that Supplier appoint Distributor as a non-exclusive distributor with respect to the distribution and sale of the products world-wide.
C. Supplier and Distributor also desire that Distributor produce copies of the Products for distribution and sale by Distributor as more particularly set forth herein.
NOW, THEREFORE, in consideration of their mutual promises set forth below and other valuable consideration, the parties agree as follows:
1. SCOPE OF AGREEMENT
1.1 Definitions. As used in this Agreement, the following terms shall have the following meanings:
a. “Contract Year” means any given twelve month period ending on an anniversary of the Effective Date.
b. “Products” means Supplier’s products known as “pageQ“ suite comprising the pageQ Home, pageQ Professional and pageQ Business and any improved versions of the products introduced by Supplier from time to time.
1.2 Territory. Supplier hereby appoints Distributor as a non-exclusive distributor world-wide with respect to the distribution and sale of the Products through Distributor’s normal distribution channels. Distributor acknowledges and agrees that Supplier has retained for itself and granted to others the rights to distribute and sell the Products in the same markets.
1.3 Independent Contractors. Neither party shall, for any purpose, be deemed to be an agent of the other party and the relationship between the parties shall only be that of independent contractors.
1.4 No Other Terms and Conditions. The parties acknowledge and agree that any terms and conditions of any purchase order, sales acknowledgement or other document submitted to the other by either party which conflict with the terms and conditions of this Agreement shall be of no force or effect, and the terms and conditions hereof control and supersede such conflicting documents and any course of conduct or usage of the trade inconsistent with any of the terms and conditions hereof.
2. PURCHASE AND SALE OF PRODUCT.
2.1 Purchase and Sale. Subject to the terms and conditions set forth herein, Supplier agrees to sell and Distributor agrees to purchase Products in accordance with this Agreement. In this regard:
a. All Products will be sold under Supplier’s trademarks and tradenames only, using Supplier’s trade dress, and Supplier will retain all proprietary rights in and to the same.
b. Distributor will sell the Products from the Distributor’s website, keeping an accurate record of the number of Products sold.
3. PRICES AND PAYMENT.
3.1 Price. The prices for the Products for the first twelve (12) months of this Agreement (the first “Contract Year”) are as set forth on Exhibit A.
3.2 Price Changes. The prices set forth on Exhibit A shall be revised annually, on or before the start of each Contract Year.
3.3 Taxes. Distributor shall be responsible for all VAT, sales, use and other similar taxes applicable to Product supplied under this Agreement.
3.4 Payment. Distributor shall account to the Supplier on a monthly basis the number of Products sold, and make payment for same within thirty (30) days. A late charge at the rate of one and one-half percent (1 ½%) per month or the highest rate allowed by law, whichever is lower, shall be applied to the total price for payments not received by the date due. Products sold by the Distributor to customers in New Zealand should be identified as such, so that the Supplier can account for local GST taxes.
3.5 Audit. Supplier shall have the right to an independent Audit of the Distributor’s records to verify the accuracy of the number of Products sold.
4. COPYING AND QUALITY CONTROL.
4.1 Copying. Distributor shall produce copies of the Product for sale in all material respects in accordance with all applicable federal, state and local laws and regulations.
4.2 Quality Assurance. Supplier shall be responsible for ensuring that the Products meet Supplier’s internal quality assurance tests and procedures prior to shipment hereunder.
4.3 Netiquette. The Distributor agrees not to post or transmit any errors, defamation, liable, slander, misleading statements, obscenity, pornography, profanity or any other illegality on or in connection with the Products and agree to obey the rules of “netiquette”. The Distributor agrees not to engage in any activity in connection with the Products which facilitates or encourages unsolicited email including “spamming”. The Distributor will not engage in any form of “hacking” in relation to the Products.
5. SOFTWARE DISTRIBUTION LICENSE.
Distributor is granted a non-exclusive distribution license during the term of this Agreement to use and further sublicense the right to use the Products purchased hereunder in accordance with this Agreement. Distributor agrees that all Products delivered under this Agreement are only for such use, and that despite any use of the terms “purchase” and “sale” in connection with Products, such Products shall not be sold nor shall title thereto be transferred to Distributor and Distributor has no interest in the Products obtained by it other than the license rights specifically set forth in this section. Supplier shall retain all ownership right, title and interest in the Products furnished to Distributor pursuant to this Agreement. Except as separately agreed to by Supplier, Distributor may not modify in any way, or copy or otherwise reproduce in any form, any computer program (including manuals and other supplied documentation) supplied with any Product or purchased hereunder. Distributor will comply with the policies and requirements of Supplier in effect from time to time with respect to (i) the licensing by Supplier of its proprietary, protected or confidential material and information and (ii) any Products which are subject to one or more license agreements between Supplier and third parties.
6. PROPRIETARY NOTICES.
Distributor shall maintain and place on any copy of a Product which it reproduces, whether for internal use or for distribution, the product Licence Agreement supplied separately by the Supplier. Such notice shall be loaded in the computer memory for use, display, or reproduction and shall be embedded in program source code and object code, in the video screen display, on the physical medium embodying the Product copy, and on any documentation and sublicensee reference manuals.
7. PRODUCT WARRANTY, DISCLAIMER OF WARRANTIES AND LIMITATION OF LIABILITY.
7.1 Product Warranty. Supplier warrants to Distributor that the Products purchased hereunder shall be free from defects in materials and workmanship and shall conform in all material respect to the Supplier’s internal standards for a period of ninety (90) days from the date of delivery thereof, provided the Product in question has been stored and used in accordance with ordinary industry practices and conditions. SUPPLIER DOES NOT WARRANT THAT THE OPERATION OF THE PRODUCTS WILL BE UNINTERRUPTED OR ERROR FREE.
7.2 Remedies. In the event that a Product does not comply with the product warranty set out in Section 7.1 and such non-conforming Product is returned to Supplier within the warranty period by Distributor, Supplier will replace such non-conforming Product at no additional charge to Distributor; the replaced Product will be returned to Distributor.
7.3 Disclaimer of Warranties. The foregoing express warranties are limited to Supplier and are not transferrable and are in lieu of any other warranty by Supplier with respect to Products furnished hereunder. SUPPLIER GRANTS NO OTHER WARRANTY, EITHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.
7.4 Limitation of Liability. DISTRIBUTOR SHALL IN NO EVENT BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR RELATING TO THE SALE OR USE OF ITS PRODUCTS, WHETHER OR NOT SUPPLIER HAS ADVANCE NOTICE OF THE POSSIBILITY OF SUCH DAMAGES. IF SUPPLIER BREACHES ANY PROVISION OF THIS AGREEMENT, SUPPLIER’S SOLE AND EXCLUSIVE MAXIMUM LIABILITY, WHETHER BASED IN CONTRACT, TORT, OR OTHERWISE, SHALL NOT IN ANY EVENT EXCEED THE CONTRACT PRICE FOR THE PARTICULAR PRODUCTS. The foregoing limitation of liability will not apply to the payment of costs and damage awards referred to in Section 8, Indemnification.
7.5 Distributor assumes full responsibility for its selection of the Products specified herein and any other equipment, programs or services used with the Products, their use, and results obtained therefrom.
8. INDEMNIFICATION.
Supplier shall indemnify, hold harmless and defend Distributor against any action brought against Distributor to the extent that such action is based on a claim that any unmodified Product, when used in accordance with this Agreement, infringes a United States copyright and Supplier shall pay all costs, settlements and damages finally awarded; provided, that Distributor promptly notifies Supplier in writing of any claim, gives Supplier sole control of the defense and settlement thereof and provides all reasonable assistance in connection therewith. If any Product is finally adjudged to so infringe, or in Supplier’s opinion is likely to become the subject of such a claim, Supplier shall, at its option, either: (i) procure for Distributor the right to continue using and distributing the Product (ii) modify or replace the Product to make it noninfringing, or (iii) refund the price paid upon return of the Product. Supplier shall have no liability regarding any claim arising out of: (w) use of other than a current, unaltered release of the Product unless the infringing portion is also in the then current, unaltered release, (x) use of the Product in combination with non-Supplier products, data or equipment if the infringement was caused by such use or combination, (y) any modification or derivation of the products not specifically authorized in writing by Supplier or (z) use of third party products. THE FOREGOING STATES THE ENTIRE LIABILITY OF SUPPLIER AND THE EXCLUSIVE REMEDY FOR DISTRIBUTOR RELATING TO INFRINGEMENT OR CLAIMS OF INFRINGEMENT OF ANY COPYRIGHT OR OTHER PROPRIETARY RIGHT BY THE PRODUCTS.
9. PROPRIETARY INFORMATION.
9.1 Protection of Proprietary Information. Supplier and Distributor agree to keep in confidence and not disclose to others all knowledge, information and data furnished to either by the other party and claimed by the other party to be proprietary, provided such information is given in writing or, if oral, is reduced to writing within thirty (30) days and such writing is marked to indicate the claims of ownership and/or secrecy. Supplier and Distributor agree that neither shall use, nor reproduce for use in any way, any proprietary information of the other except in furtherance of the relationship set forth herein. Supplier and Distributor agree to protect the proprietary information of the other with the same standard of care and procedures used by each to protect its own proprietary information of similar importance but at all times using at least a reasonable degree of care.
9.2 Limitations. Section 9.1 shall not be applicable and shall impose no obligation on a party with respect to any portion of proprietary information which:
c. Was at the time received or which thereafter becomes, through no act or failure on the part of such party, generally known or available to the public;
d. Is known to such party at the time of receiving such information as evidenced by documentation then rightfully in the possession of either party;
e. Is furnished to others by the other party without restriction of disclosure;
f. Is thereafter rightfully furnished to such party by a third party without restriction by that third party on disclosure; or
g. Has been disclosed pursuant to the requirements of law or court order without restrictions or other protection against public disclosure; provided, however, that the other party shall have been given a reasonable opportunity to resist disclosure and/or to obtain a suitable protective order.
9.3 Survival. The covenants of confidentiality set forth herein shall survive and continue and be maintained from the Effective Date hereof until three (3) years after termination of this Agreement.
10. TERM AND TERMINATION.
10.1 Term. The initial term of this Agreement shall commence upon the Effective Date and shall continue for a period of five (5) Contract Years (the “Initial Term”). Thereafter, this Agreement shall be renewed for successive one (1) year terms unless terminated by either party by ninety (90) days written notice given on or before the commencement of any renewal term.
10.2 Termination. This Agreement may be terminated as follows:
a. At any time upon mutual written agreement of the parties;
b. By Supplier upon fifteen (15) days written notice to Distributor for failure by Distributor to make payment for Products when due, unless such failure is cured within the fifteen (15) day period; or
c. By either party if (i) the other party is in material breach of its obligations hereunder and such breach continues uncured for a period of thirty (30) days after written notice to the defaulting party, or (ii) the other party makes a general assignment for the benefit of its creditors, appoints or has appointed a receiver, trustee in bankruptcy or similar officer to take charge of all or part of its property, files or has a petition filed against it in any bankruptcy (unless such petition is dismissed within sixty (60) days of its filing), and/or is adjudged insolvent or bankrupt.
11. EXPORT REQUIREMENTS.
The Products and any documentation and all related technical information or materials are subject to export controls and are licensable under the U.S. Government export regulations. Distributor will comply strictly with all legal requirements established under these controls and will not export, reexport, divert, transfer or disclose, directly or indirectly, the Products, documentation and any related technical information or materials without the prior approval of the U.S. Department of Commerce.
12. MISCELLANEOUS.
12.1 Successors and Assigns. The rights and obligations of either party shall not be transferable without the prior written consent of the other party, which consent shall not be unreasonably withheld or delayed. All obligations of the parties herein shall be binding upon their respective successors or assigns.
12.2 Choice of Laws. This Agreement shall be governed by, and its terms shall be construed in accordance with, the laws of New Zealand.
12.3 Waiver. No waiver or breach of any term or condition of this Agreement shall operate as a waiver of any other breach of such term or condition, or of any other term or condition, nor shall any failure to enforce any provisions hereunder operate as a waiver of such provision or any other provision hereunder.
12.4 Severability. In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect, except in those instances where removal or elimination of such invalid, illegal, or unenforceable provision or provisions would result in a failure of consideration under this Agreement, such invalidity, illegality or unenforceability shall not effect any other provision hereof, and this Agreement shall be construed as if such invalid, illegal or unenforceable provisions had never been contained herein.
12.5 Notices. All notices hereunder shall be in writing and shall be deemed to have been duly given if delivered personally, one day after delivery to a nationally recognized overnight delivery service, charges prepaid, three days after being sent by registered or certified mail, postage prepaid, to the parties at their respective addresses set forth above.
12.6 Headings. Headings used in this Agreement are for the purpose of reference only and are not to be considered in construction or interpretation of this Agreement.
12.7 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall be deemed one and the same instrument.
12.8 Entire Agreement; Amendment. This Agreement, including the Exhibits, contains the entire Agreement between the parties relating to the subject matter hereof. All prior agreements and all prior negotiations, representations and communications relating to the same subject are superseded by this Agreement. This Agreement may not be modified other than by a written document signed by an authorized representative of each party.
THE DISTRIBUTOR, by choosing to distribute the SUPPLIER’S PRODUCTS, and the SUPPLIER, as the parties hereto have caused this Agreement to be executed the day and year first set forth above:
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Exhibit A.
Pricing Schedule:
pageQ Home – USD$0
pageQ Professional – USD$10.00
pageQ Business – USD$39.00