|
<PAGE>
Exhibit 10.58
[GUPTA LOGO]
ADDENDUM NUMBER ONE
TO THE
PREMIUM INTERNATIONAL DISTRIBUTION AGREEMENT
BY AND BETWEEN
GUPTA TECHNOLOGIES, LLC
AND
NOCOM AB
This Addendum Number One (the "Addendum") is made to the Premium
International
Distribution Agreement effective January 1, 2004 and marked with
the GUPTA
Agreement number indicated above (collectively referred to
herein as the
"Agreement") by and between GUPTA TECHNOLOGIES, LLC, a Delaware
limited
liability company with offices at 975 Island Drive, Redwood
Shores, CA, 94065,
USA ("GUPTA"), and NOCOM AB, a company formed under the laws of
Sweden, with
offices at Kristallen, SE-754 51 Uppsala, Sweden
("Distributor"). This Addendum
supplements the General Terms and Conditions ("GTCs") of the
Agreement. All
terms defined in the GTCs have the meanings set forth therein.
This Addendum is
issued under and governed by the terms and conditions of the
Premium
International Distribution Agreement referenced above and shall
be binding upon
GUPTA and the Distributor named above.
WHEREAS, GUPTA and Distributor have agreed to modify the terms
and conditions of
the Agreement via this Addendum; and
NOW, THEREFORE, GUPTA and Distributor agree, as follows:
1. Conflicts, Use of Terms: Where applicable, the defined terms
in the
Agreement and in this Addendum shall convey the same meanings.
The terms
and conditions contained in this Addendum are hereby
incorporated into the
Agreement by reference made herein. Notwithstanding the
foregoing, in the
event of conflict between the terms and conditions of the
Agreement and
this Addendum, the terms and conditions of this Addendum shall
prevail.
2. Term of this Addendum: This Addendum extends the Agreement
from January 1,
2005 ("Effective Date") to December 31, 2005 (the "Term").
3. Revised Exhibit A: The original Exhibit A to the Agreement is
hereby
deleted in its entirety and replaced with the "Attachment A"
("Revised
Exhibit A to the Agreement") which is attached to this Addendum
and hereby
incorporated by reference.
4. Revised Minimum Revenue Commitment: The Minimum revenue
delivered to GUPTA
by Distributor during the Term of this Addendum shall be:
(euro)1,125,000
EURO (One million one hundred twenty-five thousand European
euros).
5. Annual International Distribution Agreement Enrollment Fee:
Section 1.2
("Enrollment Fee") of the Agreement is hereby deleted in its
entirety and
replaced with the following:
1.2 Annual Enrollment Fee.
Upon execution of this Agreement, and on each annual anniversary
of
the Effective Date of the Agreement, DISTRIBUTOR shall pay to
GUPTA
a nonrefundable annual fee (the "Annual Enrollment Fee") of
(euro)2,800 EURO (Two thousand eight hundred European euros).
The
Annual Enrollment Fee covers the costs of training,
unlimited
internal use of the Products solely for purposes related to
this
Agreement, and external usage for demonstration purposes related
to
this Agreement.
As of the Effective Date of this Addendum, the Annual Enrollment
Fee of
(euro)2,800 EURO (Two thousand eight hundred European euros)
is
immediately due and payable to GUPTA and will be paid by
Distributor no
later than net thirty (30) days from GUPTA's purchase order
date.
page 1 of 1
<PAGE>
[GUPTA LOGO]
6. Annual Authorized Support Center Fee: The following language
is added as
Section 2.1 to Exhibit C ("GUPTA Authorized Support Center
Provisions") of
the Agreement:
2.1 Annual ASC Fee.
On each annual anniversary of the Effective Date of the
Agreement,
DISTRIBUTOR shall pay to GUPTA a nonrefundable annual ASC fee
(the
"Annual ASC Fee") of (euro)2,250 EURO (Two thousand two
hundred
fifty European euros).
As of the Effective Date of this Addendum, the Annual ASC Fee
of
(euro)2,250 EURO (Two thousand two hundred fifty European euros)
is
immediately due and payable to GUPTA and will be paid by
Distributor no
later than net thirty (30) days from GUPTA's purchase order
date.
7. Limited Additional Discount for Sales by Distributor to
Protected
Customers: In addition to the discounts listed on Exhibit A,
Distributor
shall receive an extra 10% (ten percent) discount for sales of
Products,
GLS, and Services made by Distributor directly to the following
15
(fifteen) customers:
TietoEnator Group
Trio AB
Statoil Information Technology
Shipnet
Bewator AB
Forsvarets Materielverk
Extenda AB
Automaster Oy, Svenska AB
Statens Raddningsverk
Apoteket AB
Volvo Group
WM-data Group
Aker Stord AS
GN Otometrics (formerly known as Audit Data)
Ericsson AB
(collectively, the "Protected Customers").
8. Cancellation of Infringement Indemnity: All infringement
indemnity
provisions relating to this Agreement and the Products including
but not
limited to Section 11 GTC ("Infringement Indemnity") and Section
9
("Infringement Indemnity by GUPTA") of the SQLBase 9.0
Click-wrap End User
License Agreement are hereby deleted in their entirety.
9. No Other Modifications: Other than as provided in this
Addendum above, the
terms and conditions of the Agreement remain unchanged and in
full force
and effect.
IN WITNESS WHEREOF the parties have caused this Addendum to be
duly executed and
effective as of the Effective Date set forth above.
NOCOM AB("DISTRIBUTOR"): GUPTA TECHNOLOGIES, LLC ("GUPTA"):
Signature:__________________________
Signature:_____________________________
Name:_______________________________ Name: Jeff Bailey
Title:______________________________ Title: President and
CEO
Date:_______________________________
Date:__________________________________
page 2 of 2
<PAGE>
[GUPTA LOGO]
ATTACHMENT A
REVISED
EXHIBIT A
TO THE AGREEMENT
TERRITORY: Sweden, Norway, Finland, Denmark, Estonia, Lithuania,
Latvia
ENROLLMENT FEE: The enrollment fee is(euro)2,800
PUBLISHED PRICE DISCOUNTS AND MINIMUM REVENUE COMMITMENTS:
MINIMUM REVENUE DELIVERED TO (euro)1,250,000
GUPTA:
ALL PRODUCTS (EXCEPT SQLBASE 40% if Exhibit C -AND- Exhibit D
attached
CUSTOM EDP):
SQLBASE CUSTOM EDP: 40%
GUPTA LICENSE SERVICES, PREMIUM 40%
AND ENTERPRISE SUPPORT:
DISCOUNTS FOR VAR AND END USER AGREEMENTS THAT REQUIRE A QUOTED
PRICE BEYOND
THE PUBLISHED GUPTA DISCOUNTS SHALL BE SEPARATELY
NEGOTIATED.
page 3 of 3
<PAGE>
[GUPTA LOGO]
PREMIUM
INTERNATIONAL DISTRIBUTION AGREEMENT
This Agreement ("Agreement") is made this 1st of January, 2004
("Effective
Date") between GUPTA TECHNOLOGIES, LLC, a Delaware limited
liability company
with offices at 975 Island Drive, Redwood Shores, CA 94065, USA
("GUPTA"), and
NOCOM AB, a company formed under the laws of Sweden, with
offices at Axel
Johanssons gata 4, 754 51 Uppsala, Sweden ("DISTRIBUTOR"), and
is as follows:
1. APPOINTMENT
1.1. APPOINTMENT AS DISTRIBUTOR.
1.1.1. APPOINTMENT.
GUPTA hereby appoints DISTRIBUTOR as an authorized distributor
of GUPTA's
commercially available software (the "Products"), Gupta License
Services ("GLS")
and other services (such GLS and other authorized services to be
the "Services")
in the territory specified in Exhibit A ("Territory"), as
further described
herein. DISTRIBUTOR hereby accepts such appointment.
DISTRIBUTOR's appointment
means that GUPTA has granted DISTRIBUTOR the non-exclusive and
non-transferable
right to (a) authorize third party resellers ("VARs") to market
and distribute
one or more of the Products in object code form only, and sell
the Services, in
accordance with this Agreement, to end users ("End Users") for
their internal
business use in the Territory; (b) operate a GUPTA authorized
technical support
("ASC") center in accordance with the Authorized Support Center
Addendum, if
included, and (c) operate a GUPTA authorized training ("ATC")
center in
accordance with the Authorized Training Center Addendum, if
included.
DISTRIBUTOR shall prohibit VARs from soliciting End Users
outside of the
Territory; provided, however, if the Territory is a member state
of the European
Community ("EC") then VAR may fill any unsolicited order for
Products and
Services received from an End User within any member state of
the EC. Under no
circumstances shall VAR be permitted to fill any order for the
Products and
Services from outside the EC. DISTRIBUTOR shall not distribute
the Products and
Services to End Users unless authorized in writing by GUPTA.
1.1.2 ACTIVITIES BY GUPTA.
DISTRIBUTOR's appointment hereunder is non-exclusive as to all
persons,
including GUPTA, its affiliates, and their respective licensors,
distributors
and agents, and such parties may, directly or indirectly, sell,
license, or
otherwise make the Products and Services available within the
Territory. Unless
otherwise expressly agreed to in writing, no compensation shall
be payable to
DISTRIBUTOR with respect to any such transactions.
1.2. ENROLLMENT FEE.
Upon execution of this Agreement, DISTRIBUTOR shall pay to GUPTA
a nonrefundable
fee (the "Enrollment Fee") in the amount specified on Exhibit A.
The Enrollment
Fee covers the cost of training, unlimited internal use of the
Products solely
for purposes related to this Agreement and external usage for
demonstration
purposes related to this Agreement.
1.3. QUALIFIED EMPLOYEES; TRAINING.
DISTRIBUTOR shall at all times employ at least one person who
has successfully
completed GUPTA's reseller training program and at least one
person to fulfill
the obligation to provide Services and training pursuant to
Exhibits C and D.
Training will be held at GUPTA's offices in Redwood Shores,
California or as
specified otherwise. GUPTA will supply classroom materials.
DISTRIBUTOR shall
bear all costs of attending the training sessions, including
transportation,
food, and lodging.
1.4. CROSS-LINKS ON WEBSITE.
Upon successful completion of the training program referenced in
Section 1.3,
GUPTA shall identify DISTRIBUTOR as a distributor on GUPTA's
website and shall
provide a link to DISTRIBUTOR's website that is as prominent as
the links to
other distributors and or resellers on GUPTA's website.
DISTRIBUTOR shall at the
same time identify GUPTA as a vendor on DISTRIBUTOR's website
and shall provide
a link to GUPTA's website that is as prominent as the links to
other vendors on
DISTRIBUTOR's website. The home page of the website of each
party shall visibly
display the required link or a single link to another page that
contains the
required link.
1.5. OTHER SOURCES OF REVENUE.
DISTRIBUTOR represents and warrants to GUPTA that DISTRIBUTOR
does not expect
more than forty percent (40%) of DISTRIBUTOR's future gross
sales to derive from
the resale of GUPTA Products and Services.
1.6. RELATIONSHIP OF DISTRIBUTOR TO GUPTA.
DISTRIBUTOR is an independent contractor with respect to GUPTA.
DISTRIBUTOR is
not a joint venture, agent, employer, or employee of GUPTA. All
obligations
associated with DISTRIBUTOR's business are the sole
responsibility of
DISTRIBUTOR. DISTRIBUTOR shall have no authority to act for or
bind GUPTA in any
manner not specified in this Agreement.
2. OBLIGATIONS OF DISTRIBUTOR
2.1 QUOTAS; MINIMUM REVENUE COMMITMENTS.
During each calendar year of this Agreement, DISTRIBUTOR shall,
through the
activities of its VARs, achieve each of the applicable Minimum
Revenue
Commitments specified in Exhibit A. If at any time during the
term of this
Agreement, any Minimum Revenue Commitment specified in Exhibit A
is not achieved
or agreed upon, GUPTA may take such action as may be permitted
under this
Agreement including, but not limited to, Termination as provided
in Section 14.
DISTRIBUTOR____ GUPTA____
GUPTA PREMIUM International Distribution Agreement
- 1 -
<PAGE>
[GUPTA LOGO]
2.2 END-USER AGREEMENTS.
DISTRIBUTOR shall and shall require that each VAR shall, ship
each Product with
the accompanying click-wrap or shrink-wrap license agreement
("End-User
Agreement") intact. DISTRIBUTOR may not and shall require that
VAR shall not
modify the terms of the End-User Agreements without GUPTA's
prior written
consent and shall consult with GUPTA at any time DISTRIBUTOR or
its VARs
believes that changes to the End-User Agreements may be required
to conform to
local law or custom. DISTRIBUTOR shall require that End Users
agree in writing
to be bound by the terms of the End User Agreement prior to
shipping Products to
End Users in those countries where click-wrap or shrink-wrap
license agreements
are either not enforceable or customary. GUPTA may change the
End-User
Agreements at any time.
2.3 DUPLICATION.
DISTRIBUTOR may not and shall require that VARs shall not
reproduce the Products
or GLS releases in any form. DISTRIBUTOR shall, at its expense,
deliver to VARs
for the re-distribution to End Users only those copies of the
Products and GLS
releases that DISTRIBUTOR receives from GUPTA pursuant to the
terms of this
Agreement.
2.4 USE OF MARKS.
DISTRIBUTOR shall not and shall require that its VARs shall not
use (i) the name
"GUPTA", "Platinum", or anything deceptively similar thereto, or
(ii) the name
of any of GUPTA's licensors or anything deceptively similar
thereto, as one of
its business or corporate names; provided, however, that
DISTRIBUTOR may
represent itself as "An authorized distributor of GUPTA."
Notwithstanding the
foregoing, DISTRIBUTOR may, with GUPTA's prior review and
approval and in a
manner consistent with GUPTA policy in effect from time to time,
use the
trademarks, trade names and logos that GUPTA uses for the
Products in connection
with DISTRIBUTOR's activities hereunder. DISTRIBUTOR shall not
affix any
trademark, trade name or logo belonging or licensed to GUPTA to
any non-GUPTA
product.
3. APPOINTMENT OF RESELLERS
3.1 APPROVAL OF GUPTA.
Prior to DISTRIBUTOR appointing a reseller as a VAR pursuant to
this Agreement,
DISTRIBUTOR shall secure the approval of GUPTA of such party as
a VAR. Such
approval shall be subject to such criteria as GUPTA, in its sole
and absolute
discretion, may determine.
3.2 VAR AGREEMENT.
Prior to selling any Products or Services to End Users, VAR
shall enter into
such written agreement with DISTRIBUTOR as GUPTA may approve,
which agreement
shall (i) be subordinate to this Agreement, (ii) contain terms
and conditions
that are consistent with the terms of this Agreement, and (iii)
notify the VAR
that GUPTA is a third party beneficiary of such VAR Agreement to
the extent that
it relates to the GUPTA Products and Services, and VAR's
activities related
thereto. GUPTA may, at its discretion, require that it be a
party to any
agreement between VAR and DISTRIBUTOR.
3.3 TERMINATION OF VARS.
GUPTA may terminate, or may require that DISTRIBUTOR terminate,
any VAR
(including DISTRIBUTOR in its capacity as VAR) under the same
terms and
conditions as GUPTA has in its agreements with other
resellers.
4. OBLIGATIONS OF GUPTA
4.1 DEMONSTRATOR/EVALUATION PRODUCTS.
During the term of this Agreement, GUPTA shall provide
DISTRIBUTOR with at least
one copy for each VAR of such demonstration or evaluation
versions of GUPTA
Products as GUPTA may release from time to time. GUPTA will not
charge any
additional amounts for such copies. Except as provided in
Section 4.2,
DISTRIBUTOR's license to use such copies shall be nonexclusive,
nonassignable,
nonsublicensable, and limited to the term of DISTRIBUTOR's
appointment.
DISTRIBUTOR's license to use demonstration or evaluation
versions shall be
further limited by any terms and conditions included with the
copy of the
software, all of which are incorporated by reference into this
Agreement.
4.2 RIGHT TO DISTRIBUTE EVALUATION COPIES.
GUPTA hereby grants DISTRIBUTOR a non-exclusive,
non-transferable, royalty-free,
right and license to sublicense, and distribute to VARs the
object code versions
only of those GUPTA Products that GUPTA may designate as
evaluation versions
from time to time (the "Evaluation Software") for the purpose of
permitting VARs
to provide such Evaluation Software to End Users or potential
End Users. The
license granted by this Section 4.2 shall terminate upon the
expiration or
termination of the term of DISTRIBUTOR's appointment.
5. PROGRAM MAINTENANCE, UPGRADES, AND
TECHNICAL SUPPORT WITH RESPECT TO
PRODUCTS
5.1 DEFINITIONS.
For purposes of this Section 5, the terms below shall have the
meanings given to
them in this Section 5:
SERVICES:
"Gupta License Services" ("GLS") means GUPTA's program to
furnish commercially
available new major releases, minor releases, maintenance
releases, updates,
upgrades, and bug fixes of the Products to End Users.
TECHNICAL SUPPORT:
"First Line Support" means (a) receiving and acknowledging
problems from End
Users, (b) checking lists of known problems and workarounds, and
(c) if the
reported problem is known, giving the published answer to the
End User and
helping the End User implement the solution.
"Second Line Support" means (a) isolating, identifying, and
reproducing an
unknown problem reported by an End User, (b) researching a
workaround and/or
solution to the problem, (c) working with GUPTA to help develop
a workaround
and/or fix, and (d) dialing into an End User system to implement
a complex
workaround or to apply a patch.
5.2 DISTRIBUTOR'S TECHNICAL SUPPORT OBLIGATION.
DISTRIBUTOR____ GUPTA____
GUPTA PREMIUM International Distribution Agreement
- 2 -
<PAGE>
[GUPTA LOGO]
For the term of this Agreement, DISTRIBUTOR shall require that
its VARs take
responsibility for providing First Line Support for the Products
to End Users,
and DISTRIBUTOR shall provide Second Line Support for the
Products to its VARs.
GUPTA has no obligation to accept support requests directly from
DISTRIBUTOR's
VAR or its End Users.
5.3 GUPTA'S TECHNICAL SUPPORT OBLIGATION.
For the term of this Agreement, GUPTA shall use all commercially
reasonable
efforts to respond to and fix problems in the Products that a
DISTRIBUTOR VAR is
unable to resolve as reported by DISTRIBUTOR in accordance with
Exhibit C. GUPTA
may discontinue support of any version of the Products at any
time after 12
months after GUPTA has released a new version of the Product.
The DISTRIBUTOR
shall and shall require that its VARs shall use all commercially
reasonable
efforts to provide to GUPTA information necessary (including,
where appropriate,
reproducible test cases and other diagnostic information) to
diagnose and repair
such problems as the DISTRIBUTOR may report to GUPTA. GUPTA
shall make such
repair at GUPTA's option either by (a) modifying the Product or
(b) providing an
updated commercial version of the Product.
5.4 DISTRIBUTION OF GLS.
For the term of this Agreement, DISTRIBUTOR may authorize its
VARs to sell GLS
to End Users. GUPTA shall provide VARs for the benefit of End
Users with all
product updates and new versions that GUPTA makes generally
available, provided
such VARs furnish GUPTA with a signed purchase order for GLS
that identifies the
End User and number of licenses required for each such End User.
In no event
shall product updates and new versions be distributed for any
purpose other than
to replace an existing End User license under GLS.
6. PAYMENTS
6.1. REGISTRATION OF OPPORTUNITIES
To be eligible to purchase Products and Services for a discount
under this
Agreement with respect to any particular transaction,
DISTRIBUTOR or any of
DISTRIBUTOR's VARs, as the case may be, must provide to GUPTA a
valid purchase
order before the sale using a purchase order form that GUPTA
will provide to
DISTRIBUTOR. DISTRIBUTOR must fill out the form completely.
GUPTA may update the
form from time to time.
6.2. PROCEDURE; ACCRUALS.
GUPTA shall establish reasonable procedures for processing
orders for and
delivering Products and Services. DISTRIBUTOR or any of
DISTRIBUTOR's VARs, as
the case may be, shall comply with these procedures as they are
in effect from
time to time. GUPTA's right to be paid for Products and Services
shall accrue on
the invoiced date of shipment or where the DISTRIBUTOR otherwise
takes delivery
of the Products.
6.3. CREDIT RISK.
DISTRIBUTOR bears all credit risk with respect to all sales of
Products and
Services by DISTRIBUTOR or VAR. Failure of the VAR or End-User
to pay
DISTRIBUTOR for Products or Services does not relieve
DISTRIBUTOR of
DISTRIBUTOR'S obligation to pay GUPTA for such Products and
Services.
6.4. DISCOUNTS.
GUPTA shall resell Products and Services to DISTRIBUTOR at a
discount from
GUPTA's published list prices as the same are revised from time
to time. The
discount from list price will be in the amount specified on
Exhibit A.
6.5. MONTHLY REPORTS.
Within fifteen (15) days after the end of each calendar month,
DISTRIBUTOR shall
deliver a report to GUPTA showing (i) all purchase orders
received during the
calendar month by all VARs engaged by DISTRIBUTOR, (ii) the
names of the End
Users, (iii) the total amount of fees owed to GUPTA with respect
to each
purchase order, and (iv) the amount remaining due. The report
shall be
accompanied with a purchase order from DISTRIBUTOR for the
Products, GLS, and
Services that were purchased by DISTRIBUTOR VARs. In addition,
within fifteen
(15) days of the end of each calendar quarter, DISTRIBUTOR shall
submit to GUPTA
the Quarterly License Report for SQLBase TE Encryption Product
Export Compliance
(attached hereto as Exhibit B). GUPTA may change the report
content and
requirements at its sole discretion.
6.6. PAYMENT.
6.6.1. BY DISTRIBUTOR.
GUPTA shall invoice DISTRIBUTOR for all Products, GLS, and
Services sold to
DISTRIBUTOR, DISTRIBUTOR VARs, or End Users. DISTRIBUTOR shall
pay all invoices
by the end of the following month of receipt of invoice. Payment
shall be by
wire transfer in U.S. Dollars, with the sender responsible for
any fees charged
by the sending bank and the recipient responsible for any fees
charged by the
receiving bank. DISTRIBUTOR shall make all such payments without
offset.
7. PRODUCTS AND TERMS OF SALE
7.1 RIGHT TO DISCONTINUE PRODUCTS AND SERVICES.
GUPTA may discontinue the sale of any of the Products and
Services from time to
time on thirty (30) days prior written notice to DISTRIBUTOR.
GUPTA is not
obligated to offer, or to continue to offer, any Product or
Services. GUPTA may
discontinue offering GLS with respect to any Product upon
termination of the
initial term of the service agreement with respect to the
Product.
7.2 TERMS AND CONDITIONS.
DISTRIBUTOR shall purchase all Products and Services from GUPTA
in accordance
with the terms of this Agreement. Any licenses for Products
shall be in
accordance with this Agreement and the form of license included
with the Product
documentation. To permit DISTRIBUTOR to continue to use
DISTRIBUTOR's standard
form of purchase order, the parties agree that terms or
conditions contained in
any purchase order submitted by DISTRIBUTOR shall be of no force
or effect
unless accepted in writing and signed by an authorized officer
of GUPTA. GUPTA
may require DISTRIBUTOR to submit orders through GUPTA's website
using a form
specified by GUPTA. DISTRIBUTOR expressly waives any requirement
that GUPTA
notify DISTRIBUTOR that GUPTA does not accept any terms of
DISTRIBUTOR's
purchase order that are in addition to, or inconsistent with,
this Agreement.
7.3 TAXES.
Distributor shall be solely responsible for the collection and
payment of all
value-added, sales, use, property, withholding, and other taxes,
duties, and
assessments ("Taxes") which may be imposed upon or arise in
connection with this
Agreement, excluding, however, any taxes based upon GUPTA's net
income. When
GUPTA has a legal obligation to collect such
DISTRIBUTOR____ GUPTA____
GUPTA PREMIUM International Distribution Agreement
- 3 -
<PAGE>
[GUPTA LOGO]
taxes or duties, GUPTA will add the applicable amount to the
monthly statement.
DISTRIBUTOR shall pay this amount unless DISTRIBUTOR provides
GUPTA with a valid
exemption certificate authorized by the applicable taxation
authority. If
Distributor is required by law to deduct or withhold any Taxes
from any sum
payable hereunder, then the sum payable by DISTRIBUTOR upon
which the deduction
or withholding is based shall be increased to the extent
necessary to ensure
that, after deduction of all Taxes, GUPTA receives a net amount
equal to the
amount GUPTA would have received in the absence of such
Taxes.
7.4 PRICE INCREASES.
GUPTA may increase the list price of any Product or Services or
GLS by giving at
least thirty (30) days prior notice to DISTRIBUTOR. Increases
shall apply to all
orders received after the effective date of the increase.
7.5 PAYMENT.
Product and Service prices do not include any taxes, fees,
duties,
transportation costs, returnable containers, cartage, or storage
unless
otherwise stated. Payments to GUPTA are due at 975 Island Drive,
Redwood Shores,
California, 94065, USA, in United States dollars free of
collection or exchange
charges. Late payments are subject to a late fee of 5% of the
amount owed plus
interest at a rate of 1.5% per month, compounded, from the date
past due.
7.6 SHIPPING EXPENSES.
All prices for Product and GLS placed with GUPTA are FOB GUPTA's
point of
origin, and DISTRIBUTOR shall: (i) reimburse GUPTA for any
shipping expenses
incurred by GUPTA, and (ii) bear the risk of loss damage or
theft upon shipment
by GUPTA to DISTRIBUTOR.
7.7 LOCAL CURRENCY PRICING
The Local Currency Price for Products and GLS is set at
DISTRIBUTOR's
discretion. Local Currency Pricing will not be more or less than
GUPTA's list
prices (as converted from dollars to Local Currency) without the
prior approval
of GUPTA. DISTRIBUTOR will notify GUPTA thirty (30) days prior
to any changes in
their Local Currency Price.
7.8 STOCK ROTATION.
7.8.1 At any time during the first thirty (30) days following
the end of GUPTA's
fiscal quarter during the Term of the Agreement, DISTRIBUTOR may
return for
credit an amount of Products with an original purchase price not
in excess of
ten percent (10%) of the aggregate purchase price of all
DISTRIBUTOR's purchases
during the preceding ninety (90) days, one calendar quarter. Any
Product(s) to
be returned by Distributor must be new, unused, and in original
unopened
packaging.
7.8.2 When DISTRIBUTOR requests a stock rotation, it will submit
to GUPTA a list
indicating the quantity and part number of the Product(s),
limited to current
version or immediately previous Product release only. Stock
rotation requests
must be (i) submitted within ninety (90) days from the original
Product invoice
date, and (ii) accompanied by an Order for Products with an
aggregate purchase
price equal to or greater than the credit DISTRIBUTOR is to
receive for such
return. Upon receiving such list and related Order for Products,
GUPTA will
issue to Distributor a Return Material Authorization ("RMA")
number for the
return of the Product(s) on the list and will process the
related Order for
Products. All transportation costs (and duties) for the returned
Products shall
be paid by DISTRIBUTOR.
8. ADDITIONAL OBLIGATIONS OF
DISTRIBUTOR
8.1. APPOINTMENT CONDITIONED ON SATISFACTORY PERFORMANCE.
As a material condition to the obligations of GUPTA under this
Agreement and to
the continued effectiveness of DISTRIBUTOR's appointment,
DISTRIBUTOR shall at
all times meet the performance standards set forth in this
Agreement.
8.2. KNOWLEDGE OF GUPTA PRODUCTS AND SERVICES.
DISTRIBUTOR's personnel shall be sufficiently knowledgeable of
the Products and
Services to be able to configure and install the hardware,
software, and
connections for the Products. In addition, DISTRIBUTOR's
personnel shall be
sufficiently knowledgeable of the Products and Services to be
able to
demonstrate to VARs and End Users (a) all of the commonly used
features of the
Products and Services without resort to Product and Services
documentation and
(b) all of the advanced features of the Products discussed in
the Product
documentation after reference to such documentation.
8.3. PRODUCT AND SERVICE PROMOTION.
DISTRIBUTOR shall enthusiastically promote the goodwill, name,
and reputation of
GUPTA, the Products, and the Services, in connection with all of
DISTRIBUTOR's
activities under this Agreement. DISTRIBUTOR shall consistently
recommend GUPTA
Products over competing products. DISTRIBUTOR shall stay in
contact with
existing and potential customers on a regular basis, consistent
with good
business practice. DISTRIBUTOR shall solicit customer feedback
on the Products
and Services, including desired new products and ways to make
the Products and
Services more valuable to customers, and regularly convey such
information to
GUPTA .
8.4. DEMONSTRATION CAPABILITY.
DISTRIBUTOR shall maintain the capability to demonstrate the
Products to
potential VARs and End Users.
8.5. ETHICAL BUSINESS PRACTICES.
DISTRIBUTOR shall adhere to high standards of honesty,
integrity, fair dealings,
and ethical conduct in all of its dealings with customers,
potential customers,
and the general public, and shall refrain from any business or
advertising
practice, which may be injurious to the business or reputation
of GUPTA.
DISTRIBUTOR shall not make any false or misleading
representations to customers
or others regarding GUPTA or the Products and Services.
DISTRIBUTOR shall not
make any representations, warranties, or guarantees concerning
the Products and
Services that are inconsistent with the documentation
accompanying the Products
or GUPTA's literature describing the Products and Services.
8.6. INDEMNIFICATION.
DISTRIBUTOR shall defend, indemnify, and hold harmless GUPTA
from any activities
of DISTRIBUTOR that (a) relate to the discretion DISTRIBUTOR
exercises in
performing DISTRIBUTOR's obligations under this Agreement, (b)
DISTRIBUTOR
performs in a negligent manner, or (c) constitute a breach of
this Agreement.
DISTRIBUTOR shall ensure that each agreement it signs with a VAR
contain a
comparable indemnification for the benefit of GUPTA as the one
set forth in this
Section 8.6.
DISTRIBUTOR____ GUPTA____
GUPTA PREMIUM International Distribution Agreement
- 4 -
<PAGE>
[GUPTA LOGO]
8.7 AUDIT RIGHTS.
DISTRIBUTOR shall and shall require that its VARs shall keep
full, accurate and
complete books of account and all other related records of all
matters relating
to this Agreement for a period of three (3) years from the end
of each calendar
year. GUPTA, its licensors, or their respective authorized
representatives shall
have the right to examine and copy such books of account and
other related
records at all reasonable times during such period, to verify
the correctness of
amounts paid to GUPTA, DISTRIBUTOR's and each VAR's compliance
with, and for any
other matters arising out of, this Agreement. If any such
examination discloses
a deficiency in any payments made by DISTRIBUTOR to GUPTA of
more than three
percent (3%) of such payment, DISTRIBUTOR shall reimburse GUPTA
for all of the
expenses connected with such examination and the next subsequent
examination, in
addition to the payment of the amount of any such
deficiency.
9. DISCLAIMER OF WARRANTY AND LIMITATION
OF LIABILITY
9.1 LIMITED SERVICE WARRANTY; NO THIRD PARTY WARRANTIES.
GUPTA does not warrant that the operation of the Products will
be uninterrupted
or error free, and otherwise licenses the Products "AS IS." ALL
OTHER
WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO
IMPLIED WARRANTIES
OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, ARE
DISCLAIMED. As
between DISTRIBUTOR and GUPTA, DISTRIBUTOR ASSUMES AND SHALL
ENSURE THAT VAR
ASSUMES, FULL RESPONSIBILITY for selecting Products and for
ensuring that the
Products selected are compatible and appropriate for use with
the computers and
other software with which they will be used.
9.2 NO WARRANTY FOR INTERACTION WITH USER COMPUTER.
GUPTA DOES NOT WARRANT that any Product or GLS release is FREE
FROM ERROR or
that it will INTERFACE WITHOUT ANY PROBLEMS with the other
components of an
End-User's computer system. DISTRIBUTOR or applicable VAR shall
advise each
End-User that it is the responsibility of the End-User to BACK
UP its computer
or otherwise SAVE important data BEFORE INSTALLING any Product
and to continue
to back-up its important data regularly.
9.3 LIMITATION ON DAMAGES.
GUPTA SHALL NOT BE LIABLE TO DISTRIBUTOR, ANY VAR, OR ANY
END-USER, OR ANY THIRD
PARTY FOR THE COSTS OF PROCURING SUBSTITUTE GOODS OR SERVICES,
OR FOR ANY
SPECIAL, CONSEQUENTIAL, INDIRECT, INCIDENTAL, OR PUNITIVE
DAMAGES, OR OTHERWISE,
NOTWITHSTANDING THE FAILURE OF ANY PRODUCT OR SERVICE. GUPTA is
not an insurer.
The purchase price of the Products do not include any
undertaking by GUPTA to
deliver a Product or provide a service at any particular time,
even if GUPTA is
aware of the consequences of late delivery or unavailability.
DISTRIBUTOR shall
ensure that each agreement it signs with a VAR contain a
comparable limitation
on GUPTA's damages as the one set forth in this Section 9.3.
10. INTELLECTUAL PROPERTY
10.1 OWNERSHIP OF INTELLECTUAL PROPERTY.
DISTRIBUTOR acknowledges that, as between GUPTA and DISTRIBUTOR,
GUPTA owns or
has the exclusive right to use any patents, trademarks,
copyrights, trade
secrets, and other intellectual property rights ("Intellectual
Property")
associated with the Products and Services. DISTRIBUTOR shall do
nothing
inconsistent with GUPTA's ownership of such Intellectual
Property. All use of
GUPTA's Intellectual Property by DISTRIBUTOR shall inure solely
to the benefit
of and shall be on solely behalf of GUPTA. DISTRIBUTOR shall not
challenge
GUPTA's ownership of GUPTA's trademarks, service marks, and
trade names (the
"Marks") or the validity of the terms of DISTRIBUTOR's use of
the Marks.
10.2 NO IMPLIED RIGHTS.
Sale of the Products to DISTRIBUTOR does not convey any license,
expressly or by
implication, to manufacture, duplicate, or otherwise copy or
reproduce any of
the Products.
10.3 NO REVERSE ENGINEERING.
DISTRIBUTOR shall not, and shall not help others, reverse
engineer any Product
or any portion of any Product. DISTRIBUTOR shall promptly notify
GUPTA if
DISTRIBUTOR becomes aware of any attempt to reverse engineer any
Product or any
portion of any Product.
10.4 QUALITY STANDARDS.
The nature and quality of all services rendered by DISTRIBUTOR
in connection
with the Marks, all goods sold by DISTRIBUTOR under the Marks,
and all related
advertising, promotional, and other related uses of the Marks by
DISTRIBUTOR
shall conform to the standards set by GUPTA. GUPTA shall have
the sole
discretion to change such standards. DISTRIBUTOR shall not use
any trademark or
service mark in combination with any of the Marks without prior
written approval
of GUPTA.
10.5 INFRINGEMENT PROCEEDINGS.
DISTRIBUTOR shall notify GUPTA of any unauthorized use of the
Intellectual
Property by others promptly as it comes to DISTRIBUTOR's
attention. GUPTA shall
have the sole right and discretion to bring infringement or
unfair competition
proceedings involving the Intellectual Property.
11. INFRINGEMENT INDEMNITY
11.1. INDEMNIFICATION.
GUPTA shall have the right to defend or settle, and shall defend
or settle, any
claim, proceeding, or suit ("Claim") against DISTRIBUTOR or any
VAR for
infringement of any United States patent, copyright, trademark,
mask work, trade
secret, or other intellectual property right arising from the
sale or use of any
Product, subject to the limitations set forth below. GUPTA shall
have sole
control of any action or settlement and shall pay any final
judgment entered
against DISTRIBUTOR on such issue in any Claim that GUPTA
defends.
11.2. NOTICE AND COOPERATION.
DISTRIBUTOR shall (a) notify GUPTA promptly in writing of any
Claim, (b) give
GUPTA all information in DISTRIBUTOR's actual knowledge with
respect to the
Claim, (c) cooperate with GUPTA in all reasonable respects at
DISTRIBUTOR's
expense, and (d) at GUPTA's request give GUPTA any additional
authority GUPTA
needs to defend or settle such Claim. GUPTA shall be relieved of
its obligations
under this Section 11 to the extent GUPTA is prejudiced by any
failure of
DISTRIBUTOR to give timely notice or cooperate.
DISTRIBUTOR____ GUPTA____
GUPTA PREMIUM International Distribution Agreement
- 5 -
<PAGE>
[GUPTA LOGO]
11.3. RIGHT TO SUSPEND SALES.
If GUPTA determines that DISTRIBUTOR or VAR cannot sell a
Product without a
material risk of incurring a Claim that would give rise to a
right of
indemnification under this Agreement, GUPTA may at GUPTA's sole
option suspend
any further sales of Products pursuant to this Agreement.
11.4. REMEDIES WITH RESPECT TO SERVICES.
If GUPTA determines that GUPTA cannot offer a Service without a
material risk of
incurring a Claim that would give rise to a right of
indemnification under this
Agreement, GUPTA may at GUPTA's sole option and expense (a)
procure for End
Users the right under such patent, copyright, trademark, mask
work, trade
secret, or other intellectual property to use the Service; or
(b) terminate the
Service without further liability. GUPTA shall not be liable for
any cost or
expense incurred without GUPTA's prior written
authorization.
11.5. EXCLUSIONS.
Notwithstanding anything to the contrary in this Agreement,
GUPTA shall have no
liability for (a) infringement caused by use of the Products, or
any portion of
a Product, in combination with any other good, method, or
process if the
infringement is caused by the combination; (b) any claim for
infringement with
respect to the sale by DISTRIBUTOR or VAR of a Product after
DISTRIBUTOR or VAR
has notice that the Product is alleged to so infringe; (c)
infringement
involving any mark not applied to a Product by GUPTA; or (d)
infringement
resulting from modification
|