Agreement Data:
1. | Reseller (full legal name): | M1 Global Solutions, Inc. |
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2. | Territory: | Worldwide |
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3. | Commission Fee (per Section 3.1): | See Appendix B |
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4. | Effective Date (per Section 6.1): | October 10, 2005 |
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5. | Termination Date (per Section 6.1): | September 30, 2008 |
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6. | Firstwave Products: | All existing Firstwave software products, except Sports (defined as the Sports Industry software products licensed to First Sports, International in June 2005), which includes: |
| | CRM 2004 (Connect Care client server application) Data Wave - De-dupe Application Firstwave CRM 2005 (see attached product diagram) Rights with respect to the Firstwave Products include rights to documentation, user guides and training materials (collectively “Documentation”)
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| | And all modifications, enhancements, fixes, versions and releases of such software products developed after the Effective Date, whether such development is by FIRSTWAVE or RESELLER |
7. | Address / Notices Information (per Section 10.4): | |
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| If to Reseller: | If to FIRSTWAVE: |
| ___________________________ | Suite 1000, Overlook III |
| ___________________________ | 2859 Paces Ferry Road |
| ___________________________ | Atlanta, Georgia 30339 USA |
| ATTN: ____________________ | ATTN: Judi Vitale |
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| Telephone: _________________ | Telephone: 770.431.1200 |
| E-Mail: ____________________ | E-Mail: judiv@FIRSTWAVE.net |
RESELLER and FIRSTWAVE acknowledge that they have read and fully understand this Agreement and hereby agree to the terms of this Agreement and each party represents and warrants to the other that it is legally free to enter into this Agreement and that its execution has been duly authorized.
Reseller: M1 Global Solutions, Inc. | FIRSTWAVE Technologies, Inc.: |
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By: /s/ Craig J. Mento | By: /s/ Richard T. Brock �� |
signature | signature |
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Name: Craig J. Mento | Name: Richard T. Brock |
print | print |
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Title: President | Title: CEO |
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Date: 10/10/05 | Date: 10/10/05 |
FIRSTWAVE Technologies, Inc.
CONFIDENTIAL
1. AGREEMENT
1.1 Appointment. FIRSTWAVE hereby appoints RESELLER as an independent representative and independent contractor with a non-exclusive , non-transferable (except as noted herein) and non-assignable (except as noted herein) right and license to (i) market and distribute FIRSTWAVE Products to prospective customers in the Territory identified on the cover page, and (ii) use and display the FIRSTWAVE Products for purposes of promoting, marketing and demonstrating the FIRSTWAVE Products to prospective customers, and (iii) reference, use, display and modify the FIRSTWAVE Products, in object and source code form, for the purposes of providing maintenance and support services to FIRSTWAVE Customers and/or to RESELLER Customers of the FIRSTWAVE Products, pursuant to the terms and conditions of this Agreement. FIRSTWAVE acknowledges and agrees that RESELLER’s license set forth in clause (iii) is a non-exclusive license, and FIRSTWAVE may license or otherwise engage any other parties to maintain or support the FIRSTWAVE Products, provided that FIRSTWAVE agrees that, until the termination of Appendix A, FIRSTWAVE will not engage other parties to maintain or support the "FIRSTWAVE Customers" (as defined in Appendix A) without M1’s consent, such consent not to be unreasonably withheld. Neither this Agreement nor the appointments granted herein shall constitute or appoint RESELLER as an agent or employee of FIRSTWAVE for any purpose. RESELLER is an independent contractor in its relationship with FIRSTWAVE. Except as otherwise contemplated hereby, RESELLER does not have any authority or right to bind, transact business for or on behalf of, or make any representations with respect to FIRSTWAVE and agrees not to hold itself out other than as an independent contractor appointed by FIRSTWAVE under the terms and conditions of this Agreement.
1.2 Definitions. The capitalized terms in this Agreement shall have the meaning set forth in Section 10 or as may be defined in this Agreement.
2. RESELLER’S RESPONSIBILITIES, OBLIGATIONS AND RESTRICTIONS.
2.1 RESELLER’s Responsibilities. During the term of this Agreement, RESELLER may request assistance from FIRSTWAVE on a per-customer basis. FIRSTWAVE will communicate with RESELLER or its representatives, if requested by RESELLER, during the business development or initial marketing process or Customer relationship.
2.2 RESELLER’s Obligations. During the term of this Agreement, with respect to its marketing activities hereunder, RESELLER shall:
| 2.1.1 | use commercially reasonable efforts to market and promote the FIRSTWAVE Products; |
| 2.1.2 | utilize appropriate marketing channels to market and promote the FIRSTWAVE Products; |
| 2.1.3 | ensure that each Licensed Customer obtains a license to all relational databases and operating systems required for use with the Firstwave Software Products ordered by such Licensed Customer; |
| 2.1.4 | ensure that each order shall be accompanied by a license agreement substantially in the form of, or no less restrictive than, the agreement attached hereto (see attached), support agreement substantially in the form of, or no less restrictive than, the agreement attached hereto (see attached), and an Order Form substantially in the form of the attached which shall indicate (a) the number of units of the Firstwave Products ordered for delivery, (b) the initial number of End-Users to be authorized for each Firstwave Product ordered, and (c) the descriptions of such Firstwave Products. |
2.3 Additional Rights and Responsibilities. In addition to the rights and responsibilities outlined above, RESELLER and FIRSTWAVE shall have additional responsibilities and rights with respect to certain maintenance and support and other services outsourced to RESELLER hereunder as set forth in Appendix A hereto.
3. COMMISSION FEES AND PAYMENT TERMS.
3.1 Commission Fees. RESELLER shall pay to FIRSTWAVE Commission Fees as specified on the cover page hereof and the Appendix B hereto. RESELLER shall collect all license fees, charges, service fees and other fees and charges relating to the FIRSTWAVE Products sold by RESELLER (or any agents or representatives) hereunder and the services (other than payments to FIRSTWAVE pursuant to the FIRSTWAVE Support Agreements) associated therewith. Commission Fees will be based on gross fees, payments and charges received for the products or services as described on Appendix B. The Commission Fee payable to RESELLER shall not change during the initial term of this Agreement unless agreed to in writing by both parties. RESELLER will be responsible for paying any agents or representatives RESELLER may employ in the process of business development from said Commission Fees. Recognizing that software is often not sold at list price, RESELLER will at all times use commercially reasonable efforts to sell FIRSTWAVE Products and associated professional services for FIRSTWAVE's list price for the applicable product or service.
3.2 Payment Terms. Commission Fees will be paid to FIRSTWAVE within thirty (30) days after the last day of the month in which RESELLER received Customer’s payment for the services or products upon which such Commission Fees are based.
3.3 Calculation of Commission. For purposes of determining Commission Fees under this Agreement, notwithstanding what a particular Customer agreement says or how such agreement allocates fees as among licenses, maintenance services and professional services, fees will be allocated based on the percentage attributable to each component on an undiscounted, list price basis as compared to the aggregate of fees for all components on an undiscounted, list price basis.
3.4 Audit. FIRSTWAVE may but shall not be obligated to enter RESELLER’s premises during business hours, upon reasonable advance notice and without undue business interruption, for the sole purpose of conducting an examination or audit, at FIRSTWAVE’s own expense including costs of outside auditors, of RESELLER’s records and other information relating to RESELLER’s (and, if applicable, its affiliates’) performance under and compliance with this Agreement. If this examination reveals that RESELLER has improperly used or allowed unauthorized use of the FIRSTWAVE Products, or otherwise failed to comply with this Agreement, FIRSTWAVE shall invoice RESELLER for such unauthorized use or non-compliance, in addition to other remedies available to FIRSTWAVE. If underpaid amounts exceed ten percent (10%) of the amounts actually paid to FIRSTWAVE, then RESELLER shall also pay FIRSTWAVE’s reasonable costs of conducting the examination or audit. FIRSTWAVE may not exercise its audit right set forth in this Section 3.4 more than twice in any calendar year.
FIRSTWAVE Technologies, Inc.
CONFIDENTIAL
4. FIRSTWAVE’s DUTIES AND OBLIGATIONS.
4.1 Information. FIRSTWAVE shall provide RESELLER with sales and technical information and Documentation on FIRSTWAVE Products, as appropriate.
4.2 Sales and Marketing Support. FIRSTWAVE shall work with RESELLER to provide sales support to specified business opportunities that are proposed by RESELLER.
4.3 Export Compliance. FIRSTWAVE strictly adheres to all United States government export regulations and requires all representatives to ensure full compliance with U.S. export law in the sale of its products.
5. CONFIDENTIALITY / NONDISCLOSURE / OWNERSHIP.
5.1 Proprietary Notices and Confidentiality Legends. RESELLER will not alter, remove, modify or suppress any proprietary notices placed on or contained within the FIRSTWAVE materials and FIRSTWAVE Products.
5.2 Confidential Information. Both parties shall keep all proprietary information confidential and shall not disclose proprietary information to any person or entity other than those officers, directors, employees, consultants, RESELLER, and agents of RESELLER and FIRSTWAVE who have a need to know such proprietary information in order to perform the functions contemplated by this Agreement. Each party agrees to protect such proprietary information using at least the same degree of care it uses to protect its own proprietary and confidential information of like importance, but in no event shall such care be less than a reasonably prudent business person would exercise in a like or similar situation. Each party shall inform each officer, director, employee, consultant, and RESELLER-affiliated agent having access to such proprietary information of these limitations, duties and obligations regarding non-disclosure and copying of such proprietary information and shall obtain their agreement to comply with those limitations, duties and obligations.
5.3 Confidentiality Agreement. Each party agrees to continue to abide by the Non-Disclosure Agreement that has been executed between RESELLER and FIRSTWAVE.
5.4 Intellectual Property Rights.
(a) Subject to the rest of this Section 5.4, FIRSTWAVE shall retain full ownership of all titles, patents and patent rights, trademarks, copyrights, trade names and other proprietary rights (collectively “Proprietary Rights”) in and with respect to the FIRSTWAVE Products. RESELLER shall protect the Proprietary Rights and cooperate with FIRSTWAVE in FIRSTWAVE’s efforts to protect such rights. RESELLER shall promptly notify FIRSTWAVE of any actual or suspected violation of such proprietary rights of which it has knowledge.
(b) Notwithstanding the foregoing, FIRSTWAVE acknowledges that RESELLER is pursuing development efforts of its own at any time, including with respect to products and/or solutions with qualities, attributes and functions similar to those of the FIRSTWAVE Products. FIRSTWAVE further acknowledges that RESELLER will have access to the FIRSTWAVE Products, including the source code thereof, and has the right pursuant hereto to refer to such source code and to develop its own competing products ("M1 Work Product”). Such rights specifically including the right and license to re-architect the FIRSTWAVE Products, provided that RESELLER shall not have the right to incorporate FIRSTWAVE's source code into any other product. As long as the M1 Work Product does not include FIRSTWAVE source code, this Agreement shall not restrict the use or ownership of such M1 Work Product by RESELLER. M1 shall own all right, title and interest in and to the M1 Work Product, and FIRSTWAVE shall have no ownership interest, license, right to accounting, or other interest whatsoever in the M1 Work Product. This section, and the rights granted herein, shall survive the expiration or any termination of this Agreement.
6. TERM AND TERMINATION.
6.1 Term. The term of this Agreement shall commence on the Effective Date of this Agreement (as indicated on the cover page hereof) and shall continue in full force and effect for a period of three years unless earlier terminated as provided in Section 6.2 below. Upon mutual written agreement thirty (30) days prior to the expiration or termination date, the parties may agree to renew this Agreement for subsequent terms.
6.2 Termination. This Agreement may also be terminated as follows: (a) at any time upon the mutual written agreement of the parties hereto; or (b) by either party forthwith upon giving notice in writing to the other if such other party commits any material breach of any term of this Agreement which is not capable of being remedied and such breach has materially adversely affected the aggrieved party; or (c) by either party forthwith upon giving notice in writing to the other party if the other party shall have failed within thirty (30) days after the receipt of such notice, to remedy any material breach of this Agreement set forth in the notice capable of being remedied (such notice to contain a warning of such party's intention to terminate); or (d) by either party forthwith upon giving notice in writing to the other party if the other party shall have a receiver, administrator, administrative receiver or liquidator appointed, or shall pass a resolution for winding up, or a court shall make an order to that effect, or if the other party shall enter into any composition or arrangement with its creditors, shall become insolvent or shall cease to carry on business.
6.3 Effect of Termination. Upon the expiration or any termination of this Agreement, the following shall have effect: (a) all rights granted to RESELLER under this Agreement (other than those which are perpetual or by their nature survive the Agreement, including without limitation those provided pursuant to Section 5.4(b) hereof) shall immediately cease and terminate, and RESELLER shall, within ten (10) days of termination, return all FIRSTWAVE Products in its possession or under its control to FIRSTWAVE; and (b) neither party hereto shall be liable to the other party for damages, losses, costs or expenses of any kind or character whatsoever on account of the termination of this Agreement, whether such damages, losses, costs or expenses arise from the loss of prospective sales, or expenses incurred or investments made in connection with the establishment, development or maintenance of RESELLER's or FIRSTWAVE's business, or any other reason whatsoever; provided, however, that notwithstanding anything to the contrary contained herein, such termination shall not affect any claim, demand or liability of RESELLER or FIRSTWAVE arising pursuant to this Agreement prior to the termination hereof.
FIRSTWAVE Technologies, Inc.
CONFIDENTIAL
7. TRADEMARKS, TRADE NAMES AND TRADE DESIGNATIONS; MARKETING BUDGET.
7.1 Ownership. FIRSTWAVE has registered, and is licensed to use and sublicense to third parties, certain marks. RESELLER undertakes to faithfully reproduce all such trademarks, trade names, copyright and other proprietary notices, logos, slogans, designs and distinctive advertising (herein separately and collectively referred to as the “Trademarks”) as may appear on or with the FIRSTWAVE Products. RESELLER shall not tamper with or modify any of the Trademarks. RESELLER is not allowed to use the Trademarks except as provided for herein.
7.2 Use. RESELLER may employ the Trademarks in accordance with the terms and conditions of any guidelines for Trademark usage as may be made available to RESELLER and as may be modified by FIRSTWAVE from time to time in its advertising and promotional materials. RESELLER shall not use the Trademarks in any manner likely to confuse, mislead or deceive the public, or be injurious to the best interests of FIRSTWAVE. Any rights granted by FIRSTWAVE to RESELLER pursuant to this section shall be terminable at any time if RESELLER fails to use the Trademarks in accordance with the terms of any written instructions from FIRSTWAVE and shall terminate immediately upon the termination of this Agreement.
7.3 Marketing Budget. In consideration and support of RESELLER’s marketing activities with respect to the FIRSTWAVE Products, FIRSTWAVE agrees to reimburse RESELLER up to $5000/quarter for its resonable and necessary marketing expenditures incurred in furtherance of this Agreement.
8. WARRANTIES, DISCLAIMERS AND LIMITATIONS OF LIABILITY
8.1 | Warranties. FIRSTWAVE warrants to RESELLER that: (i) FIRSTWAVE has the right to grant the licenses described in this Agreement; and (ii) the FIRSTWAVE Products do not infringe any copyright, U.S. patent or trade secret. FIRSTWAVE will defend, indemnify and hold harmless RESELLER against claims that the Firstwave Products infringe a copyright, U.S. patent or trade secret. |
8.2 Disclaimers. EXCEPT AS EXPRESSLY SET FORTH ABOVE, NO WARRANTY, CONDITION, UNDERTAKING OR TERM, EXPRESS, OR IMPLIED, STATUTORY OR OTHERWISE, AS TO THE PRODUCTS OR SERVICES PROVIDED BY EITHER PARTY UNDER THIS AGREEMENT IS GIVEN OR ASSUMED, AND ALL SUCH WARRANTIES, CONDITIONS, UNDERTAKINGS AND TERMS ARE HEREBY DISCLAIMED AND EXCLUDED.
8.3 Limitations of Liability. In no event shall either party, its subsidiaries, or any of their respective officers, directors, employees, shareholders, agents or representatives, be liable to the other for any indirect, incidental, consequential, or exemplary damages, lost profits, revenues or business opportunities, or loss of goodwill caused or alleged to be caused by the performance or non-performance of any products or services provided hereunder, including the failure of essential purpose, even if such other party has been notified of the possibility or likelihood of such damages occurring. No action arising out of any claimed breach of the Agreement may be brought by either party more than one (1) year after the cause of action arises. The aggregate liability of either party for claims arising hereunder or otherwise related hereto shall under no circumstances exceed the amounts paid hereunder in the preceding twelve (12) months. The foregoing limitations of liability shall not apply to the parties’ indemnity obligations as set forth in Section 8.1 hereof and Appendix A hereto.
9. MISCELLANEOUS PROVISIONS.
9.1 Headings. The headings to the Articles and Sections in this Agreement are for ease of reference only and shall not affect the interpretation or construction of this Agreement.
9.2 Waiver. No failure or delay on the part of FIRSTWAVE or RESELLER in exercising any right or remedy hereunder or in enforcing the terms and conditions of this Agreement will operate as a waiver thereof; nor will any single or partial exercise of any such right or remedy preclude any other or further exercise thereof or of any other right or remedy. No provision of this Agreement may be waived except in a writing signed by the party granting such waiver.
9.3 Assignment. RESELLER shall not transfer, assign or pledge this Agreement or any rights herein without the prior, express written consent of FIRSTWAVE; provided, however, that RESELLER may assign this Agreement without the necessity of such consent in connection with the sale of all or substantially all of RESELLER’s assets, an acquisition of a controlling share of RESELLER’s capital stock or a merger, consolidation or other change of control transaction. FIRSTWAVE may transfer or assign this Agreement to any entity owned or controlled by it or to any entity which owns or controls FIRSTWAVE or to any entity who purchases all or substantially all of FIRSTWAVE’s assets or acquires a controlling share of FIRSTWAVE’s stocks or to any FIRSTWAVE Affiliate, and upon such transfer or assignment and assumption by the other party, be released from all duties, obligations and liabilities hereunder.
9.4 Notices. Except as otherwise specified herein, all notices, orders and other communications permitted or required by the provisions of this Agreement shall be in writing and shall be personally delivered or sent by registered post, return receipt requested, where available, bearing adequate postage and addressed as hereinafter provided. Notices delivered in person shall be effective upon the date of delivery. Notices by post shall be effective upon the receipt thereof by the addressee or upon the sixth (6th) calendar day subsequent to the postmark date, whichever is earlier. Rejection of the notice or the refusal to accept or the inability to deliver it because of a change in the address of which no notice was given as provided herein shall be deemed to be receipt of the notice sent as of the sixth (6th) calendar day subsequent to the postmark date. By giving to the other party hereto at least thirty (30) days notice, each party shall have the right from time to time and at any time while this Agreement is in effect to change its respective address and shall have the right to specify as its new address any other address. Any notice herein required or permitted to be given may be given, in addition to the manner set forth above, by telex or by telefax or telecopy or facsimile or e-mail provided that the party giving such notice obtains acknowledgment by telex or by telefax, telecopy, facsimile or e-mail that such notice has been received by the party to be notified. Notice given in this manner shall be effective upon transmission of acknowledgment of receipt thereof by the party to be notified. Each notice to FIRSTWAVE and RESELLER shall be addressed, until notice of change as aforesaid, as set forth on the first page of this Agreement.
FIRSTWAVE Technologies, Inc.
CONFIDENTIAL
9.5 Severability. In the event that any one or more of the provisions or parts of any provisions contained in this Agreement shall for any reason be held to be invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, the same shall not invalidate or otherwise affect any other provision or part of any other provision hereof, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision or part of any provision had never been contained herein. However, if any provision of this Agreement is held by any competent authority to be void, unenforceable or registrable under any law applicable hereto, then this Agreement shall be deemed to have been modified to the extent necessary to be enforceable consistent with the original intent of the parties. If any competent authority shall offer any advice or make any recommendations for the purpose of ensuring that this Agreement will not violate any of such legislation, then the parties will negotiate in good faith to amend the Agreement consistent with applicable law. If the parties cannot agree, then: (i) either party may terminate this Agreement by providing thirty (30) days prior written notice; or (ii) the parties may mutually agree in writing to reduce the Territory to exclude any jurisdiction in which the Agreement may violate such jurisdiction’s legislation.
9.6 Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. This Agreement is subject to the approval and acceptance of FIRSTWAVE evidenced by the signature of this Agreement by an authorized signatory of FIRSTWAVE and shall not become binding upon FIRSTWAVE until so approved, accepted and signed.
9.7 Interpretation. In this Agreement, where the context so permits, words importing the singular number shall include the plural, words importing the masculine shall include the feminine, and vice versa, and words importing persons shall include bodies corporate, unincorporated associations and partnerships.
9.8 Governing Law and Choice of Forum. This Agreement and all attachments, amendments, modifications and supplements hereto shall be governed by, interpreted under, and construed and enforced in accordance with the internal laws, and not the laws pertaining to conflict or choice of laws, of the State of Georgia, U.S.A. applicable to agreements made and to be performed wholly within the State of Georgia. The sole forums for resolving disputes arising under or relating to this Agreement shall be the State and Federal Courts of the State of Georgia and the parties hereby consent to the jurisdiction of such courts and agree that venue shall be in Atlanta, Georgia. The United Nations Convention on Contracts for the International Sales of Goods shall not be applicable.
9.9 Delay; Force Majeure. FIRSTWAVE shall use its reasonable efforts to comply with all shipment date(s) requested by its customers, but time shall not be of the essence in relation to any shipment. In no event shall FIRSTWAVE be liable to RESELLER for damages (however described or arising) for any failure to fulfill or meet shipment date(s) requested by a customer resulting from a RESELLER lead. Under no circumstances shall either party be liable to the other for any failure, delay, or breach occasioned in whole or in part by fire, flood, explosion, casualty, riot, strike, embargo, transportation, production delay, breakdown, accident, acts of God, or by inability to secure materials, fuel supplies, power or transport space, or because of terrorism or acts of the public enemy, and governmental authority, or any other causes or circumstances beyond such party’s reasonable control.
9.10 Export Compliance. RESELLER shall comply with all U.S Government restrictions regarding the export of FIRSTWAVE Products or any information or technology related thereto. In marketing, using or displaying the FIRSTWAVE Products pursuant to the appointment granted in this Agreement, RESELLER shall be responsible for complying with the U.S. Export Administration Act of 1979 and all applicable then-current rules and regulations thereunder, including, without limitation, all related Presidential Executive Orders relating to the export, re-export or importation of the FIRSTWAVE Product, or any technical data contained therein. In accordance therewith, RESELLER agrees to keep such books and records and to take such other actions as may be required by said Act, rules, regulations and Presidential Executive Orders, and as may be requested by CDP in connection therewith.
9.11 Entire Agreement. This Agreement and the appendices and other documents referenced herein constitute the entire agreement of the parties with respect to the subject matter hereof, and supersede all prior oral and written agreements between the parties. This Agreement may not be amended or modified, except by a further written agreement signed by the parties hereto and referencing this Agreement.
10. DEFINITIONS.
10.1 Commission Fee means the Commission Fees identified on the cover page and Appendix B hereof.
10.2 Customer means any person or entity that has purchased any FIRSTWAVE Product prior to this agreement from Firstwave, or it’s resellers or from RESELLER pursuant to this Agreement.
10.3 FIRSTWAVE Product(s) means those specific products that RESELLER is authorized to market as expressly identified on the cover page hereof, and all modifications, enhancements, fixes, versions and releases of such software products developed after the Effective Date, whether such development is by FIRSTWAVE or RESELLER.
10.4 FIRSTWAVE License Agreement means the form of agreement to be signed by each Licensed Customer containing terms and conditions regarding the license of Firstwave Products as made available by Firstwave.
10.5 M1 Products means those software products independently developed by RESELLER, before the Effective Date or anytime thereafter, outside of the relationship with FIRSTWAVE, and all modifications, enhancements, fixes, versions and releases of such software products.
10.6 Territory means the geographical area set forth on the first page of this Agreement, where RESELLER may market and distribute the Firstwave Products. Nothing contained in this Agreement shall prohibit Firstwave from licensing or distributing the Firstwave Products or from appointing any third party(ies) to do same within the Territory or elsewhere.
FIRSTWAVE Technologies, Inc.
CONFIDENTIAL
Firstwave CRM
FIRSTWAVE Technologies, Inc.
CONFIDENTIAL
APPENDIX A TO OEM/OUTSOURCING AGREEMENT
This Appendix A (“Appendix”) is incorporated into, made a party of, and governed by the OEM/Outsourcing Agreement between M1 Global Solutions, Inc. (“Reseller” or “M1”) and Firstwave Technologies (“Firstwave”) dated as of October 10, 2005 (the “Agreement”). Capitalized terms used and not otherwise defined herein have the meanings provided in the Agreement.
As of the Effective Date, M1 will provide maintenance and support services regarding the Firstwave Products for all current customers of Firstwave and all future customers purchasing any Firstwave Products from M1 through the Agreement (collectively the Firstwave Customers). M1 will use commercially reasonable efforts to provide such services in accordance with Firstwave’s standard form of Support Agreement. M1 shall develop reasonable Enhancements and new Releases of the Firstwave Products. Firstwave shall be responsible for any and all consents from Customers necessary for Firstwave to delegate such support responsibilities to M1.
Unless and until M1 becomes the contracting party for the support services (as outlined below), Firstwave will be responsible for billing and collecting maintenance fees and shall be entitled to retain such fees (subject to the split in certain circumstances as outlined below).
In consideration of the expense and effort M1 will incur in providing such services, Firstwave will pay M1, $154,315.00 per calendar quarter (the "Outsourcing Services Fee")
M1 will provide at least 2 full-time development resources for maintenance and support of Firstwave Products during the term of the Agreement.
The parties acknowledge that certain resources employed by M1 to provide (or facilitate the provision of) such outsourced support services may formerly have been employed by Firstwave. Firstwave authorizes M1 to contract and solicit Firstwave employees for such purposes, and will cooperate with such efforts. Firstwave agrees to defend, indemnify and hold harmless M1 for any claims relating to the termination of any individual’s employment with Firstwave as well as for any claims by any Firstwave employee or former employee that arose prior to execution of this Agreement. Following the hiring of any such personnel by M1, M1 shall have all responsibility for compensation and benefits for each such employee. M1 agrees to defend, indemnify and hold harmless Firstwave for any claims relating to any individual’s employment with M1 as well as for any claims by any M1 employee that arise following execution of this Agreement.
In addition to the termination rights provided under the Agreement, the parties agree that, following the first anniversary of the Effective Date, if (A) sixty-percent (60%) of "Net Contracted Maintenance Fees" (as defined below) on a 12-month forward-looking basis falls below (B) $617,260.00, then Firstwave has the right to terminate the outsourced maintenance and support arrangement embodied in this Appendix (but not the Agreement in its entirety) upon thirty (30) days’ written notice. "Net Contracted Maintenance Fees" is defined as the contracted fees for U.S.-based and U.K.-based maintenance relating to the Firstwave Products, less any service fees paid to third parties such as First Sports International for support of those customers. On the other hand, to the extent aggregate Net Contracted Maintenance Fees exceed the amount as set forth below during the applicable period as set forth below, then the parties shall split the excess on a 65% (for Firstwave) / 35% (for M1) basis:
| | Period | Threshold |
| | 10/1/05 - 9/30/06 | $1,659,436 |
| | 10/1/06 - 9/30/07 | $1,413,668 |
| | 10/1/07 - 9/30/08 | $1,201,668________ |
At a Customer’s discretion, M1 will be allowed to renew support agreements on Firstwave Products under M1’s name, with M1 as the contracted provider of such support services. In all other respects, the above terms will apply just as if the applicable support agreement had been with Firstwave, i.e. M1 will remit to Firstwave, without deduction, all maintenance fees received from such customers within thirty days after receipt.
In providing the services outsourced hereunder, M1 agrees to undertake commercially reasonable efforts to comply with the terms of the Firstwave Support Agreement applicable to each Firstwave Customer.
M1 agrees that Firstwave shall own all right, title and interest in and to all modifications, enhancements, fixes, versions and releases (collectively, "Modifications") of the Firstwave Products that are developed by M1 or any of its employees, contactors or agents. Upon any termination of this Agreement or the services provided under this Appendix, M1 will promptly (but in no event later than three business days) provide to Firstwave all source and object code for all such Modifications in both human-readable and machine-readable form, along with all documentation related thereto. M1 shall indemnify, defend and hold Firstwave harmless against all claims that any Modifications infringe a copyright, U.S. patent or trade secret.