Exhibit 10.28
MACROMEDIA
Domestic Distribution Agreement
This Distribution Agreement (the
“Agreement”) between Macromedia, Inc., a Delaware
corporation with principal offices at 600 Townsend St., San
Francisco, California 94103 (“Macromedia”) and Tech
Data Product Management. Inc. (“Distributor”), a
Florida corporation, with principal offices at 5350 Tech Data
Drive, Clearwater, Florida 33760 shall be effective as of the date
of execution by Macromedia (“Effective
Date”).
In consideration of the representations,
warranties, covenants and agreements set forth herein and intending
to be mutually bound, the parties hereto agree as
follows:
1. Definitions Capitalized terms shall have the meaning set
forth in Exhibit A, attached hereto and incorporated herein by this
reference.
2. Distribution Rights
2.1 During the term of this
Agreement, Macromedia grants to Distributor the non-exclusive right
and license to purchase and to distribute the Products, identified
on Exhibit B, to Resellers located in the Territory.
2.2 Macromedia reserves the right at
any time to discontinue the production or distribution of any of
its Products, to modify the design of or upgrade its Products and
to change its support, warranty, or other Product-related policies
upon written notice to Distributor. Macromedia also reserves the
right to add Products to or delete Products from Exhibit B, at any
time, upon written notice to Distributor.
3. Price, Payment
3.1 Macromedia will charge
Distributor the Purchase Price for the Products according to its
Price List (see Exhibit B) in effect at the time of the order.
Macromedia reserves the right to change its Purchase Prices at any
time, upon written notice to Distributor, and shall provide thirty
(30) days notice of any increase in Prices.
3.2 In the event Macromedia reduces
the Purchase Price of any Product, Macromedia will credit to
Distributor an amount equal to the product of (a) the difference
between the new Purchase Price and the former Purchase Price for
such Product, and (b) the number of units of such Product then in
Distributor’s and its customers’ inventory plus (c) the
number of units sold to Resellers Forty-Five (45) days prior to the
reduction provided that (i) the Resellers are entitled to price
protection, and (ii) Distributor can provide evidence, within
Forty-Five (45) days of notification by Macromedia, that price
production has been claimed by the Resellers for such units. In the
event that Macromedia should raise the Purchase Price of any
Product, Macromedia will honor each order made or mailed by
Distributor before such price change becomes effective at the
Purchase Price in effect when such order was made or
mailed.
3.3 Payments on credit terms shall
be made in accordance with Payment Terms, defined on Exhibit A. If
Distributor does not qualify for credit terms, or upon prior
agreement with Macromedia, Distributor shall prepay orders, after
first contacting Macromedia to obtain the invoice total. Macromedia
shall ship Products after receipt and clearing of full prepayment.
Should Macromedia grant credit terms, Macromedia reserves the right
to cancel or delay delivery of Products if Distributor fails to
make timely payments for Products purchased under the Agreement or
if Macromedia deems itself insecure. Failure to make timely
payments of undisputed obligations shall be deemed to be a material
breach of the Agreement.
3.4 Any claims for a credit to
Distributor’s account, upon any basis (e.g., for price
protection, defective Product returns, marketing activities, etc.),
shall be brought to Macromedia’s attention, in writing,
within ninety (90) days of the date of the event upon which the
claim is based. Macromedia agrees to consider any claims brought
thereafter on a case-by-case basis.
3.5 Macromedia’s prices do not
include any foreign, federal, state, local sales, or use taxes,
which Macromedia may be required to pay or collect upon the
delivery of the Products or upon collection of the price. Should
any tax or levy be made, Distributor agrees to pay such tax or levy
and indemnify Macromedia for any claim for such tax or levy
demanded. Distributor covenants to Macromedia that all Products
acquired hereunder will be for redistribution in the ordinary
course of Distributor’s business, and Distributor agrees to
provide Macromedia with appropriate resale certificate numbers and
other documentation satisfactory for the applicable taxing
authorities to substantiate any claim of exemption from any such
taxes or fees.
4. Return of Discontinued Products; Stock
Rotation
4.1 Discontinued Products
Following the procedure set forth in Section 4.4 and on a
dollar-for-dollar reorder basis, Distributor may return any and all
discontinued Products in its inventory and discontinued Products
returned to it by its Resellers, providing it does so within ninety
(90) days of the release by Macromedia of the superseding Product
or Macromedia’s notice of discontinuance of the Product, as
applicable. If return levels of inventory are higher than 4 weeks
of current run rate which means the average weekly sales by product
over the past for consecutive weeks (“Run Rate”),
Macromedia will work in good faith with Tech Data to take back
product without having to place an offsetting PO.
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Domestic Distribution
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April 26, 2001
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4.2 Stock Rotation Following
the procedure set forth in Section 4.4 and on a dollar-for-dollar
reorder basis Distributor may rotate its stock by returning up to
ten percent (10%), in dollar value, of the previous calendar
quarter’s purchases of Products, net of returns. If
Distributor’s inventory levels exceed a 4 week current Run
Rate, Macromedia will work in good faith with Tech Data to take
back product.
4.3 Defective Products .
Following the procedure set forth in Section 4.4 and on a dollar
for dollar basis, Distributor shall return any opened units of
Product returned by Resellers or End Users which is defective.
Defective Product is defined as a product which (a) is considered
defective in accordance with the terms of the Macromedia warranty
set forth in the End User License accompanying the Product (b) has
had the shrink wrap or other packaging seal broken before sale to
the End User (c) is missing any components of the original package
or the components of the original packaging are damaged or modified
and/or (d) is in a box that has become damaged and is not otherwise
fit for resale. Distributor shall place an offsetting order for any
returns under this section. Distributor shall not knowingly
distribute any defective products.
4.4 RMA . Distributor shall
request a Return Merchandise Authorization (“RMA”)
number, offering a purchase order equal to or greater in value to
the aggregate Purchase Price of the Products to be returned. Upon
receipt of the purchase order, Macromedia shall issue an RMA
number, which must accompany the return shipment, To be eligible
for return, such Products must be new, unused and in their
original, sealed packaging. Returns under Section 4.2 shall be at
Distributor’s expense. Returns under Section 4.3 shall be at
Macromedia’s expense. However, no return will be accepted by
Macromedia if, at the time of the requested return, Distributor is
in material default or material breach of any provision of this
Agreement, including without limitation failure to comply with any
applicable credit terms or delinquency in any payment to
Macromedia.
5. Orders and Shipping
5.1 Upon receipt of an order by
Distributor, Macromedia shall use reasonable efforts to deliver
such order to Distributor within ten (10) days of the date of such
order. Orders shall be shipped F.O.B. Macromedia’s
continental United States warehouse location(s). Macromedia shall
ship orders in accordance with Tech Data’s published routing
guides, Macromedia requests that orders be placed at least two 2
weeks in advance of the requested date for shipment but in no event
shall any order be placed more than ninety (90) days in advance of
the requested ship date. All risk of loss or damage to the Products
will pass to Distributor upon delivery by Macromedia to the
carrier, freight forwarder, or Distributor, whichever occurs first.
Macromedia shall ship orders to Distributor at least as promptly as
Macromedia ships any other orders received at or about the same
time. Should orders for Products exceed Macromedia’s
available inventory, Macromedia may allocate its available
inventory and make deliveries on a basis Macromedia deems
equitable, in its sole discretion, and without liability to
Distributor on account of the method of allocation chosen or its
implementation. In any event, Macromedia will not be liable for any
damages, direct, consequential, special or otherwise, to
Distributor or to any other person for failure to deliver or for
any delay or error in delivery of Products. Macromedia shall
provide to Distributor, at no charge, a hard copy Proof of Delivery
for any drop shipment and all shipments when reasonably requested
by Distributor. Macromedia shall also provide packing slips when
requested. The POD shall be faxed to Distributor within ten (10)
business days of the initial request. If the POD is not received
within the specified time, the invoice will be considered disputed
and no payment shall be made to Macromedia on that invoice until
Distributor receives the POD.
5.2 Distributor shall be required to
purchase a quarterly minimum in the amounts set forth in Exhibit B.
All orders for Products shall be subject to the minimum order
quantity set forth in Exhibit B, and Distributor will maintain
inventory equal in value to the average of the preceding four
week’s sale of Product, or as may otherwise be jointly agreed
between Macromedia and Distributor.
5.3 Macromedia reserves the right to
cancel any orders placed by Distributor and accepted by Macromedia
or to refuse or delay shipment thereof, upon prior written notice,
if Distributor (i) fails to make any payment of undisputed
obligations as provided in this Agreement or under the terms of
payment set forth in any invoice or otherwise agreed to by
Macromedia and Distributor, (ii) fails to meet reasonable credit or
financial requirements established by Macromedia, including any
limitations on allowable credit, or (iii) otherwise fails to comply
with the terms and conditions of this Agreement. No such
cancellation, refusal or delay will be deemed a termination (unless
Macromedia so advises Distributor) or breach of this Agreement by
Macromedia.
6 . Advertising and
Promotion
6.1 Distributor shall be entitled to
participate in Macromedia’s Marketing Development Fund
(“MDF”) Program in accordance with the terms and
conditions set forth in Exhibit C attached hereto and made a part
hereof. Macromedia shall be entitled to either cancel or change the
terms and conditions of the MDF Program on thirty (30) days written
notice.
6.2 Macromedia agrees to provide
reasonable training and sales collateral materials as Distributor
may request, and to provide sales training for Distributor’s
staff, at times to be mutually agreed upon. In addition, Macromedia
agrees to provide reasonable number of units of Product for
in-house training, resources library and technical support use.
These units, as well as any Not For Resale (“NFR”)
units Distributor may purchase (with the exception of special,
promotional “NFR” units), may not be distributed or
resold. Distribution of such Products in violation of the terms of
this Section will constitute a material breach of this
Agreement.
6.3 Pass through Marketing
Activities. Distributor shall not be financially responsible for
any pass through advertising and/or marketing activities to which
Macromedia
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has committed to Distributor’s Customers.
Macromedia shall notify Distributor’s Product Marketing
division of any such activities at least 30 days prior to the
promotion or activity date. Macromedia’s notification should
include the following information: the date of the activity, the
type of event (i.e. end cap, preprint, etc), the Product titles
involved, the specifics of the deal, and the cost of the activity.
Distributor shall be entitled to deduct the full amount due for
such activities from the next monies owed to Macromedia. If the
amount owed by Macromedia to Distributor exceeds any balances owed
by Distributor to Macromedia, then Macromedia shall, upon
Distributor’s request, issue a check payable to Distributor
within ten (10) business days of Distributor’s
request.
6.4 Core Communication
Program. Following the procedures set forth in section 6.1 and
Exhibit C, Macromedia will agree to participate in the Core
Communication Program as long as the cost of the program does not
exceed the total MDF accrued for one quarter.
7. Reports Distributor will provide Macromedia, within
three (3) business days after the end of each week, and month, a
written report and computer media data files (in a format, style
and manner approved by Macromedia) showing, for such week, and
month (i) Distributor’s shipments of each the Products with
the ship-to address, Reseller or VAR name, and the quantity and
type of Product sold, and (ii) Distributor’s current
inventory level for each of the Products.
8. Notice Any notices, requests and demands hereunder to
be given by either party to the other shall be in writing and sent
by certified mail to each party’s address as set forth above
and sent to the attention of the Senior Buyer or Product Manager as
applicable if sent to Distributor, and to the attention of the
Account Manager - Distributor Sales, if sent to Macromedia, with a
courtesy copy to the General Counsel of Macromedia.
9. Warranties and Disclaimers.
9.1 Warranty to Distributor .
Macromedia hereby warrants that Macromedia has all right, title,
and ownership interest necessary to sell the Products to
Distributor pursuant to this Agreement, the Products are new and
shall be free and clear of all liens and encumbrances.
9.2 Macromedia and Distributor shall
comply with any and all applicable United States codes, laws and
regulations.
9.3 Product Warranty .
Macromedia provides a limited warranty to end users of the Products
in the End User License Agreement which is incorporated into the
Products. Distributor will make no other warranty on
Macromedia’s behalf.
9.4 Disclaimer . EXCEPT AS
EXPRESSLY PROVIDED IN THIS AGREEMENT, THE PRODUCTS ARE PROVIDED
WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED. MACROMEDIA
DOES NOT WARRANT THAT THE FUNCTIONS CONTAINED IN THE PRODUCTS WILL
BE UNINTERRUPTED OR ERROR FREE. MACROMEDIA DISCLAIMS ALL OTHER
WARRANTIES AND CONDITIONS, EITHER EXPRESS OR IMPLIED, INCLUDING THE
WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE.
10. Indemnification
10.1 Indemnification of
Distributor .
Macromedia agrees that, if notified promptly in
writing and given sole control of the defense and all related
settlement negotiations, and if Distributor cooperates and provides
reasonable assistance at Macromedia’s expense, Macromedia
will defend Distributor against any claim based on an allegation
that (i) a Product supplied hereunder infringes a US copyright, US
trademark, US Patent or state trade secret right, (ii) a Product
supplied hereunder caused the death of or a personal injury to, any
person, (iii) Macromedia violated any United States law, statute or
ordinance or any United States governmental or administrative
order, rule or regulation with regard to the Product or its
manufacture, possession, use or sale or (iv) arises from
Macromedia’s acts or omissions to the extent that Macromedia
was found liable by a court of competent jurisdiction. Macromedia
will pay any resulting costs, damages and attorneys’ fees
finally awarded by a court with respect to any such claims.
Distributor agrees that, if the Products in the inventory of
Distributor, or the operation thereof, become, or in
Macromedia’s opinion are likely to become, the subject of
such a claim, Distributor will permit Macromedia, at
Macromedia’s option and expense, to, among other things,
procure the right for Distributor to continue marketing and using
such Products, or to replace or modify them so that they become
non-infringing. If neither of the foregoing alternatives is
available on terms that Macromedia in its sole discretion deems
reasonable, Distributor will return such Products on written
request from Macromedia. Macromedia will grant Distributor a credit
equal to the price paid by Distributor for such returned Products,
as adjusted for discounts, returns and credits actually given,
provided that such returned Products are in an undamaged condition.
Macromedia will have no obligation to Distributor with respect to
infringement of patents, copyrights, trademarks or trade secrets or
other proprietary rights beyond that stated in this Section
10.1
10. 2 Limitation
Notwithstanding Section 10.1 Macromedia will not
be liable to Distributor for any claim arising from or based upon
any alteration or modification of the Products by Distributor or
any third party under the control or direction of
Distributor.
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10.3 Indemnification of
Macromedia
Distributor agrees to indemnify and hold
harmless Macromedia, its affiliates, employees and agents, against
any and all claims and liabilities (including reasonable
attorney’s fees and costs of litigation) arising from
Distributor’s acts, omissions or misrepresentations,
regardless of the form of action.
11. Term and Termination
11.1 This Agreement shall become
effective as of the Effective Date and shall continue in force
until terminated by either party, as set forth in Sections 11.2 and
11.3, below.
11.2 Either party hereto may
terminate this Agreement upon thirty (30) days written notice to
the other (a) following any material br