Exhibit 10.2
This Master Purchase Agreement is
made as of February 14, 2006, 2006 (“Effective
Date”) between SUN MICROSYSTEMS, INC., a Delaware corporation
with its address at 4150 Network Circle, Santa Clara, CA 95054
(‘Sun”) and Rainmaker Systems, Inc., a Delaware
corporation with its address at 900 East Hamilton, Suite 400,
Campbell, CA 95008(”Supplier”).
1. Scope.
1.1 Entire Agreement. The Exhibits,
Attachments, Purchase Order(s), Statement(s) of Work and such other
documents attached to or referred to herein (the “Ancillary
Documents”), together with this Master Purchase Agreement
constitute the parties’ entire agreement relating to its
subject matter (collectively, “Agreement”). This
Agreement cancels and supersedes all prior and contemporaneous oral
and written communications between the parties and prevails over
any conflicting or additional terms contained in any such document
or communication between the parties relating to its subject
matter. The Exhibits that are part of this Agreement as of the
Effective Date are the ones checked below:
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x
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Hosting
Services Exhibit;
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The following Attachments are made a
part of and are hereby incorporated by reference to this
Agreement:
Attachment I — Contractor
Travel Guidelines;
Attachment 2— invoicing
Requirements;
Attachment 3— Worker
Confidentiality and Assignment Agreement; and
Attachment 4— Change Order
Form.
1.2 Modifications. During the Term,
the parties may add one or more additional Exhibits or other
Ancillary Documents to this Agreement and otherwise modify this
Agreement by mutual written agreement or as otherwise expressly
provided herein. No contrary or additional pre-printed terms
contained in any form quote, purchase order, statement of work,
acknowledgment, or other correspondence or writing by either party
shall in any way modify or alter the terms of this Agreement unless
in writing and manually signed by each part/s authorized
representative with reference to this Agreement.
1.3 Order of Precedence. In the
event of a conflict between the documents comprising this
Agreement, the order of precedence and control shall be:
(a) this Master Purchase Agreement; (b) the Attachments;
(c) the Exhibit(s); (d) Change Order(s);
(a) Statement(s) of Work or Purchase Order(s) (subject to
Section 1 .2); and (f) other documents. Notwithstanding
the foregoing, if an Exhibit expressly states that one or more of
its terms shall apply despite contrary language in this Master
Purchase Agreement, then such term or terms of the Exhibit shall
control with respect to the Deliverables provided pursuant to such
Exhibit.
2. Definitions. In addition to other
terms defined in this Agreement the following terms have the
following meanings:
1. “Acceptance” means
Sun’s -written confirmation of its satisfactory testing,
evaluation and/or inspection of Deliverables pursuant to criteria
set forth by the applicable Ancillary Documents such as a Statement
of Work.
Confidential treatment has been
requested for portions of this exhibit. The copy filed herewith
omits the information subject to the confidentiality request.
Omissions are designated as [****]. A complete version of this
exhibit has been filed separately with the Securities and Exchange
Commission.
2. “Affiliated company” means, in
relation to either party entity: (a) which is owned 50% or
more by that party; or (b) over which that party exercises
management control: or (c) which is under common control with
that party; or (d) which owns 50% or more of that
party’s voting securities. For the purposes of the foregoing,
control means the right to direct or cause the direction of the
management and policies of an entity, whether through the ownership
of voting securities, by contract, or otherwise.
3. “Applicable Laws”
means all applicable laws, statutes, regulations, rules and
ordinances.
4. “Change Order” means
a change order document in the form attached hereto as Attachment
4, which when manually signed by authorized representatives of both
parties, modifies a Statement of Work or the terms of any Purchase
Order pursuant to Section 3.3 of this Agreement.
5. “Confidential
Information” means Sun Confidential Information, Supplier
Confidential Information, or both, as required by
context.
6. “Deliverables” means
all of the applicable Hardware, Software, Documentation, Services
and any other work products, milestones, technologies, original
works, documents, information, things, designs, designations,
discoveries, inventions, data whether in computer readable form or
otherwise, methods, formulae, tools, computer programs (including
source code) and any other items to be delivered by Supplier to Sun
pursuant to this Agreement.
7. “Documentation” means
all documentation or reference materials relating to or associated
with items provided by Supplier to Sun under this Agreement whether
currently existing or created in the future, and whether in written
or electronic form, including without limitation any
specifications, technical manuals, user manuals, training materials
and consulting materials.
8. “Hardware” means any
or all of the following provided by Supplier to Sun, as applicable:
(a) equipment manufactured by Supplier; (b) any equipment
manufactured by an original equipment manufacturer as may accompany
or be integrated into the equipment manufactured by Supplier; and
(c) equipment manufactured by Supplier’s Affiliated
Companies or a Third Party which Supplier has the right to resell
and provide to customers.
9. “Intellectual Property
Rights” means all worldwide common law or statutory
(a) patents, patent applications, and patent rights;
(b) rights associated with original works, authorship, moral
rights, copyrights and all its exclusive rights; (c) rights
relating to the protection of trade secrets and confidential
information, (d) rights associated with designs, industrial
designs, and semiconductor design: (e) rights analogous to
those set forth above and any and all other industrial or
intellectual property rights; and (f) registrations,
divisionals, continuations, continuations-in-part, renewals,
reissues, reexaminations, and extensions of the foregoing (as
applicable) now existing or hereafter filed, issued or acquired.
Intellectual Property Rights excludes Trademarks (as defined
below).
[****]=Certain information has been omitted and
filed separately with the Commission. Confidential treatment has
been requested with respect to the omitted portions.
10. “Invoice” means any undisputed
invoice issued by Supplier consistent with the provisions of
Attachment 2 with reference to this Agreement and an applicable
Purchase Order number.
11. “Purchase Order”
means any valid purchase order issued by Sun with reference to and
consistent with this Agreement requesting any Deliverables from
Supplier, and specifying the Deliverables’ type, quantity,
purchase price, delivery dates and delivery location.
12. “Services” means any
service, labor, engineering, programming, management assignment,
project, consulting, development, work and any other activity
performed by Supplier pursuant to a Statement of Work.
13. “Software” means
Supplier’s programs, codes, algorithms, development tools,
formulae, libraries, computer programs or applications (whether in
source or object code), and any other licensed products and
accompanying Documentation provided by Supplier to Sun.
14. “Specifications”
means all applicable functional, operational, and other performance
requirements, specifications and standards set forth or referenced
in applicable Documentation or an applicable Ancillary
Document.
15. “Statement(s) of
Work” or “SOW(s)” means a document authored and
for approved by Sun, usually labeled “Statement of
Work,” that describes the Services, including as applicable,
a description of Deliverables that Supplier will provide to Sun
under this Agreement.
16. “Subcontractors”
mean Third Parties retained by Supplier to perform all or portions
of the Services as permitted by this Agreement.
17. “Sun Confidential
Information” means any and all: (a) confidential or
proprietary information which is disclosed to or made available to
Supplier, which Supplier creates on behalf of Sun, or which
Supplier otherwise becomes aware of, pursuant to this Agreement
including but not limited to documents relating to observations by
Supplier; (b) information regarding Sun’s technology,
strategy, operations, internal corporate information, business
organization, finances, dealings, transactions or affairs,
customers, sources of supply, personnel, methods and procedures;
(c) Deliverables (excluding Supplier Pre-existing Work); and
(d) the terms, conditions and existence of this Agreement.
Without limiting the foregoing, Sun Confidential Information
includes confidential information relating to but not limited to
Sun’s processes, specifications, methods, designs, formulae,
technology, trade secrets, know how, systems, methods and any
information contained in any Sun documentation, guides, or computer
software or any information maintained in computer readable
format
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18.
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“Sun
Trademarks” means Sun’s name, logo and any and all
other Trademarks owned or under Sun’s control.
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19. “Supplier Confidential
Information” means confidential or proprietary information
disclosed in writing or other tangible means by Supplier to Sun
pursuant to this Agreement and conspicuously identified or marked
as confidential or proprietary information, which
[****]=Certain information has been omitted and
filed separately with the Commission. Confidential treatment has
been requested with respect to the omitted portions.
may include Supplier’s processes,
specifications, methods, designs, formulae, technology, trade
secrets, know how, systems, methods and any information contained
in any Supplier documentation, guides, or computer software or
information maintained in computer readable format Supplier
Confidential Information excludes Sun Confidential
Information.
20. “Supplier Pre-existing
Work” means Supplier’s (or, if applicable, its
suppliers or licensor’s) products, services, technologies,
original works, documents, information, things, designs,
designations, discoveries, inventions, data whether in computer
readable form or otherwise, methods, formulae, tools, computer
programs (including source code) and other items that are
possessed, used, made, created, authored, conceived, invented,
disclosed or developed by Supplier prior to the Effective Date or
not covered by another agreement between Sun and Supplier, as
evidenced by contemporaneously produced documentation provided to
Sun in the event of a dispute. Supplier Pre-existing Work includes
such Hardware, Software and Documentation that the Supplier does
not make, create, conceive, invent or develop pursuant to this
Agreement.
21. “Term” means the
duration for which this Agreement is in effect as set forth in
Section 14.1.
22 “Third Party” means
parties or entities other than Sun, its employees and contractors,
Sun’s Affiliated Companies, or Supplier or its
employees.
23. “Trademarks” means
worldwide common law or statutory rights related to the possession,
use or exploitation of signs, trademarks, service marks, trade
dress and related goodwill,
24. “Workers” means all
individuals, Subcontractors and Subcontractors’ employees
provided by Supplier to perform Services or provide or develop
Deliverables.
3. Performance of
Obligations.
3.1 Purchase Orders. Sun may from
time to time purchase Deliverables from Supplier by issuing a
Purchase Order setting forth the Deliverables to be provided.
Supplier shall use all commercially reasonable efforts to accept
each such Purchase Order by acknowledging acceptance in writing to
Sun or by commencing performance under the Purchase Order with
written notice to Sun, in either case within ****after issuance of
a Purchase Order. If Supplier does not notify Sun of its rejection
in writing within such time period the Purchase Order shall be
deemed accepted. Prior to issuance of the Purchase Order, Sun may
provide Supplier with requests for proposals or quotes
(“RFP(s)” or (“RFQ(s)” or other
documentation or communication, soliciting a quote from Supplier.
Notwithstanding any such document Sun will only be committed to
purchase Deliverables, and Supplier will only be committed and
authorized to provide Deliverables, when Sun has tendered and
signed a SOW or Purchase Order to Supplier in accordance with this
Agreement. Supplier acknowledges and agrees that time is of the
essence with respect to all provisions of this Agreement including
any Ancillary Document, that specifies a time for Supplier’s
performance or delivery.
3.2 Affiliate Purchases. Sun’s
Affiliated Companies may issue Purchase Orders pursuant to this
Agreement to Supplier, and Supplier agrees to honor such Purchase
Orders as if placed by Sun. Supplier acknowledges and agrees that
(a) the terms and conditions of this
[****]=Certain information has been omitted and
filed separately with the Commission. Confidential treatment has
been requested with respect to the omitted portions.
Agreement shall fully apply with respect to such
Purchase Orders with an Affiliated Company being considered by
Sun” for such purposes, and (b) each such Affiliated
Company shall be solely responsible with respect to its own
Purchase Orders and Supplier will look solely to such Affiliated
Company for payment and fulfillment of other obligations of such
Affiliated Company pursuant to such Purchase Orders,
3.3 Change Orders.
3.3.1 Issuance of Change Order. From
time to time, Sun may issue Change Orders. No modified fees,
performance requirements, or other changes to a SOW or Purchase
Order shall be deemed effective unless embodied in a Change Order
duly issued by Sun, and accepted by Supplier as provided in this
paragraph. Supplier will not undertake any changes in any
Deliverables-without a Change Order. The modified terms set forth
in an applicable Change Order will be deemed effective ****after
Supplier’s receipt of such Change Order unless, within such
time period, Supplier notifies Sun in writing that Supplier does
not accept such Change Order as written, and specifies alternate
pricing, delivery dates, or other terms that the Supplier would
propose in order to accept such Change Order. In such event, Sun
and Supplier will promptly negotiate any open Issues in good faith,
and if agreement is reached Sun will issue a revised Change Order
confirming the parties’ agreement. If, after such
negotiations, Sun and Supplier do not reach agreement on the Change
Order, the applicable Statement of Work or Purchase Order shall
remain unchanged unless and until another Change Order is issued
and agreed to by the parties, or Sun cancels the Purchase Order
pursuant to Section 3.4 below.
3.3.2 Chances Due to Delays. With
respect to any Services provided under this Agreement as set forth
in an applicable SOW, in the event that Supplier anticipates at any
time that it will not reach one or more milestones, or complete one
or more Services, within the prescribed timetable or budget due
solely to the fault of Sun, Supplier shall immediately so inform
Sun by written notice which explains the reason for the change, and
submit proposed revisions that reflect Supplier’s best
estimates of achievable timeframes or budget using reasonable
efforts. The parties will cooperate in good faith to agree to
acceptable terms for a Change Order to be issued by Sun, as
described above, which will include any necessary corresponding
adjustments to payments and other terms. In no event shall Supplier
exceed funding levels authorized by Sun without a Change
Order.
3.4 . ****
3.5 Workers.
3.5.1 Supplier Responsibility.
Supplier will be solely responsible for paying Workers for
Deliverables and will pay such Workers promptly (including
reimbursing all agreed-upon expenses), and in accordance with all
Applicable Laws, including without limitation state and federal
wage and hour laws.
3.5.2 No Sun Benefits. Irrespective
of how Supplier is compensated by Sun, it is the intent of the
parties that no Worker will be eligible for any Sun-sponsored
benefits, including, but not Limited to, paid vacation, sick leave,
medical insurance, employee stock purchase plans, bonuses, awards
or 401k participation.
[****]=Certain information has been omitted and
filed separately with the Commission. Confidential treatment has
been requested with respect to the omitted portions.
3.5.3 Worker Removal. Sun may at any time, with
or without cause, require Supplier to remove any Worker from
Sun’s premises or to otherwise replace a Worker assigned to
perform Services. Sun’s sole liability and responsibility in
connection with the replacement or removal of a Worker will be to
pay Supplier for Services actually performed by Worker. Supplier
shall not interpret Sun’s request for removal from
Sun’s premises as a request for Supplier to discipline or
discharge the Worker.
3.5.4 No Hire Agreement. During the
term of the Agreement, including any extensions thereof, and for a
period of 1 year after the termination of this Agreement, either
party will solicit employment of or employ directly or indirectly,
any employee of the other party who was or is an employee at any
time during the term.
3.5.5 Worker Training and
Qualification. Supplier shall provide normal and customary
supervision and training for its Worker to assure competent
performance of the Services. Supplier shall be responsible having
its Workers use means, methods, techniques, sequences and
procedures of work (whether by act or omission) consistent with the
terms of this Agreement and industry best practices for the
Services being provided hereunder. Supplier shall enforce strict
discipline and good order among its Worker at all times. Supplier
shall only employ Workers that are duly fit, skilled and qualified
for each position.
3.6 Use of Subcontractors, Unless
otherwise stated in an Ancillary Document Supplier may use
Subcontractors in the performance of Supplier’s obligations
pursuant to this Agreement If Sun determines, in good faith, that
the Subcontractor does not qualify as an independent contractor
under federal or state income tax laws, Supplier may hire the
Subcontractor as an employee or refer the Subcontractor to a Sun
approved payroll service as a condition of utilization of the
Subcontractor. Notwithstanding any of the foregoing,
(a) Supplier shall remain fully and solely responsible and
liable for proper performance of all Supplier obligations under
this Agreement, and (b) Supplier shall ensure that all such
Subcontractors are informed of and agree in writing to comply with
all applicable terms and conditions of this Agreement. Sun shall
have the right to require, pursuant to the applicable Exhibit or
other Ancillary Document, that Subcontractors execute any other
appropriate documentation as may be requested by Sun prior to any
use of such Subcontractor by Supplier.
3.7 Delivery Terms. Delivery shall
occur upon Sun’s actual receipt from Supplier of the
Deliverables, which Supplier will deliver to Sun pursuant to the
timetables set forth on an applicable Purchase Order or SOW,
pursuant to Sun’s written instructions. ****
3.8 Quality Assurance; Acceptance
Procedures. All Services are subject to regular reviews and
inspection by Sun both during Seller’s performance of such
Services and after completion thereof (“Quality Assurance.).
Sun may conduct such Quality Assurance inspections and reviews of
the Services at any time, with or without notice. The parties
acknowledge and agree that the Quality Assurance performed by Sun
shall not be a substitute for Supplier’s own obligation to
maintain its internal quality control and quality assurance review
and inspections by Supplier. The parties further acknowledge that
Sun’s failure to conduct any Quality Assurance inspections or
reviews shall not constitute a waiver thereof or acknowledgment
thereby that Supplier’s Services are in
conformance
[****]=Certain information has been omitted and
filed separately with the Commission. Confidential treatment has
been requested with respect to the omitted portions.
with this Agreement, including any Ancillary
Document. During the term of this Agreement, Supplier shall
maintain its own quality assurance and internal control systems in
order to ensure that all Services are performed in accordance with
this Agreement. ****
4. Invoices. All correspondence from
Supplier regarding this Agreement must reference this Agreement and
the applicable Purchase Order number. All Invoices and
reimbursements are subject to the terms and conditions set forth in
the attached Contractor Travel Guidelines and Invoicing
Requirements and, without limiting the same, will be subject to
adjustment by Sun for: (a) errors, shortages, and/or rejected
Deliverables, and (b) the amount of all good faith claims for
amounts due to Sun by Supplier relating to this Agreement. All
Invoices shall itemize all charges in reasonable detail for Sun to
audit Invoices and Purchase Orders against Deliverables.
5. Payment Terms.
5.1 Prices and Fees. All prices and
fees shall be explicitly set forth in either an Exhibit or
Statement of Work or Purchase Order. Prices and fees may not be
changed: unless otherwise agreed to in writing by Sun or set forth
pursuant to procedures in the applicable Ancillary documents
(including as a result of a Change Order) or as set forth below.
If, during the Term reduced prices are put into effect by Supplier
for Services being provided to Sun, Supplier shall provide such
reduced pricing to Sun and apply such reduced prices to any of
Sun’s purchases not yet delivered and to all subsequent
purchases by Sun under applicable Statements of Work or Purchase
Order Sun will only reimburse Supplier’s travel related
expenses which comply with the Contractor Travel
Guidelines.
5.2 Payment.
5.2.1 Terms of Payment. Sun’s
payment will be ****from receipt of Supplier’s Invoice by
Sun’s Accounts Payable Department, ****. –All payments
issued by Sun will be made by electronic funds transfer
(“EFT), which Supplier hereby agrees is an acceptable method
of payment. ****
5.2.2 ****
5.3 Disputed Payments. Any disputed
invoice is subject to the Invoicing Requirements and will be
settled pursuant to the procedures set forth therein.
5.4 Taxes.
5.4.1 Tax Responsibilities. Supplier
will solely be responsible for payment of all federal, state and
local taxes due as a result of the performance of Services or the
provision of Deliverables under this Agreement except as otherwise
provided in this paragraph. Supplier will report as income all
compensation received hereunder. Supplier represents and warrants
each Worker, except Subcontractors permitted under
Section 3.6, has executed a Federal W-4 Withholding Allowance
Certificate and an equivalent state personal income tax withholding
form (if required). Supplier will issue and file an accurate Form
W-2 Withholding Allowance Certificate and an equivalent state
personal income tax withholding form (if required). Supplier will
issue and file accurate Form W-2 Wage and Tax Statements annually
for each employee Worker and Form 1099 Statements for each
Subcontractor. In no event will Sun be liable to pay sales or use
tax in connection with any Deliverables unless Sun has agreed in
writing to be liable for such taxes and such taxes are separately
stated on Supplier’s Invoice.
[****]=Certain information has been omitted and
filed separately with the Commission. Confidential treatment has
been requested with respect to the omitted portions.
5.4.2 Structure of Transaction. To the extent
legally permissible, the parties agree to utilize reasonable
efforts to minimize Sun’s liability for taxes and to
structure the provision and receipt of Deliverables, as the case
may be, in such a fashion as to minimize any sales, use, value
added, withholding and similar taxes payable by Sun.
6. Compliance.
6.1 Sun’s Policies and
Procedures. In connection with this Agreement, Supplier shall
comply with and cause its Workers to comply with all of Sun’s
policies and guidelines as delivered or made available by Sun to
Supplier, including each of the following without
limitation:
(a) Sun’s security policies
available by website at
http://www.sun,comfservjce/sunpslsecuritv/securitypolicyservices.html:
(b) Sun’s privacy policies
available by website at http://www.sun.com/privacy
(c) Sun’s Contractor Travel
Guidelines attached hereto as Attachment 1;
(d) Sun’s trademark policies
available by website at http://www.sun.com/policies/trademarks
and
(e) Sun’s standards of
business conduct available by website at
http://www.sun.com/index.html.
From time to time, Sun may update,
modify or alter each of the foregoing policies and therefore it is
the sole responsibility of Supplier to regularly visit such
websites and/or review such policies in order to ensure its and its
Workers’ compliance with Sun’s most current policies
and guidelines. If such policies are only available in physical
form, Sun agrees to deliver physical copies of such policies to
Supplier, upon Supplier’s request.
6.2 Compliance with Laws.
6.2.1 Applicable Laws. In connection
with the performance of this Agreement, Supplier shall obtain all
required permits and licenses and comply with, and cause its
Workers to comply with, all Applicable Laws, including, but not
limited to: (a) laws related to employee health and workplace
safety; (b) laws related to income tax withholding;
(c) laws related to non-immigrant workers’ visas;
(d) all US. and foreign import and export laws and regulations
(as further provided in Section 6.3); (e) laws related to
discrimination, harassment privacy and other prohibited practices
in employment; (f) laws related to public health and safety
and protection of the environment or use of hazardous materials;
(g) laws related to work permits, training1 licensure, or
professional certification; and (h) laws requiring permits for
specific work or services. Supplier will comply with the provisions
of the Equal Opportunity Clause set forth in 41 CFR 60-1.4(a) and
Executive Order 11246 (as amended). In connection with this
Agreement Supplier further agrees that it shall not discriminate in
any manner against any individual because of race, religion,
national origin, color, age, sex, sexual orientation, marital
status, pregnancy, physical or mental disability, veteran status,
or any other classification protected by applicable local, state or
federal employment discrimination laws. Supplier and its Workers
shall do nothing to cause Sun to be in breach of any Applicable
Laws.
[****]=Certain information has been omitted and
filed separately with the Commission. Confidential treatment has
been requested with respect to the omitted portions.
6.2.2 Immigrant Workers. Supplier will only
assign Workers who have a current legal right to (a) work in
the country where they will be assigned and (b) work with
respect to the Deliverables to which they will be assigned.
Supplier assumes all responsibility for compliance with immigration
laws and other Applicable Laws, including export control laws, with
respect to the Workers it assigns pursuant to this Agreement.
Supplier shall verify the identity and work authorization of each
of its Workers, and shall keep a record of that verification for
audit by Sun.
6.3 Export Control. The parties
acknowledge and understand that the Deliverables may be subject to
regulation by agencies of the U.S. Government including the
Department of State and Department of Commerce, and/or any foreign
government or regulatory body, which prohibit export or diversion
of certain technical products, data or services (“controlled
technologies”) to certain individuals or countries. This
prohibition includes providing or giving access to such controlled
technologies (including without limitation such items that have
been identified by the US. Export Administration Regulations and
the International Traffic in Arms Regulations. The parties
acknowledge that providing controlled technologies to certain
foreign nationals located in the United States may be deemed by the
U.S. Government as equivalent to exporting that controlled
technology to a foreign country, including embargoed or restricted
countries (‘Prohibited Foreign Nationals”). The parties
shall comply in all respects with all export and re-export
restrictions applicable to the Deliverables. Supplier shall obtain
all necessary licenses to export, re-export, or import any
information received from Sun as may be required under
App