Granite Systems, Inc. Test Tool License Agreement

The following license agreement will be sent to those members requesting the free Granite Systems, Inc. Test Tools, and must be signed and returned to Granite Systems, Inc. before the tool suite will be made available.

            Software License Agreement (the "Agreement") dated as of ________ (the "Effective Date") by and between Granite Systems, Inc., a Colorado corporation ("Developer") with its principal place of business located at 6982 Hunter Place, Boulder, CO 80301, and Salutation Consortium Member, _______________________________________(Member) with principal place of business located at_________________________________________________.

1.            DEFINITIONS. 

The following terms have the following meanings in this Agreement:

            "Affiliate" means with respect to any entity, any other entity controlling, controlled by or under common control of such entity.

            "Contractor" of a company means a person or group of persons (whether incorporated or not) providing services to that company as independent contractors.

            "Derivative Work" means a work which is based upon one or more preexisting works, such as a revision, enhancement, modification, translation, abridgment, condensation, expansion or other form in which an existing work may be recast, transformed or adapted and which if prepared without authorization of the owner of the copyright in such preexisting work, would constitute copyright infringement.

            "Documentation" means the information contained in Developer’s “Salutation Test Tool Command Reference and Workbook”.

            "Error" means any mistake, problem or defect that causes either an incorrect functioning of Object Code or an incorrect or incomplete statement or graphic in Documentation, if such mistake, problem or defect (a) renders the Object Code inoperable, (b) causes the Object Code to fail to meet the Specifications, (c) causes the Documentation to be inaccurate or inadequate in any material respect, (d) causes incorrect results, or (e) causes incorrect functions to occur.

            "Internal Distribution" by a company means use by employees, temporary employees, vendors and Contractors of the company and its Subsidiaries; provided that any such distribution to Contractors shall only be under written confidentiality agreement and does not include commercial testing or certification services.

            "Internal Testing Use" by a company means (a) use by employees and temporary employees of the company and its Subsidiaries; and (b) use in connection with the operation of the business of the company and its Subsidiaries, by vendors and Contractors of the company and its Subsidiaries, in each case for internal testing products and services of the company and its Subsidiaries.  Use in offering commercial testing or certification services is not considered "Internal Testing Use".

            "Object Code" means machine-executable programming instructions, substantially or entirely in binary form, which is intended to be directly executable after suitable processing and linking but without the intervening steps of compilation or assembly.

            "Product" means Salutation Test Tools; and Documentation for the foregoing; as described in Developer’s “Salutation Test Tool Command Reference and Workbook”. 

            "Subsidiary" of an entity means a corporation, company or other entity (a) more than fifty percent (50%) of whose outstanding shares or securities (representing the right to vote for the election of directors or other managing authority) are; or (b) which does not have outstanding shares or securities, as may be the case in a partnership, joint venture or unincorporated association, but more than fifty percent (50%) of whose ownership interest (representing the right to make decisions for such corporation, company or other entity) is; in each of (a) and (b) now or hereafter, owned or controlled, directly or indirectly, by the entity in question, as the case may be, but such corporation, company or other entity shall be deemed to be a Subsidiary only so long as such ownership or control exists.

            "Term" means the term of this Agreement, as it may be extended or earlier terminated in accordance with Section 6.

2.            GRANT OF RIGHTS. 

            2.1            License to Object Code.  Pursuant to the agreement between Developer and Salutation Consortium, dated 12/2/1999, Developer hereby grants Member and each Subsidiary of the foregoing a paid-up, royalty-free, worldwide, nonexclusive, non-transferable license to execute the Product Object Code solely for Internal Testing Use. Distribution and copying of Product by Member or their Subsidiaries is restricted to Internal Distribution only. This license does not extend to commercial testing or certification services since these are not internal testing purposes.  Member may not reverse assemble, reverse compile, decode or translate the Product. 

            2.2             Documentation.  Developer hereby grants Member and each Subsidiary of the foregoing a worldwide, nonexclusive license to use, display, modify, and reproduce all Documentation and Derivative Works of Documentation, internally in connection with grants of licenses to the Product hereunder.  Member will place an internationally recognized copyright notice on the work sufficient to protect the copyrighted material it contains.

            2.3            Patents.  All grants of rights and licenses set forth in Sections 2.1 and 2.2 with respect to Product include a grant of rights and licenses of the same scope in a party's patents, if any, to the extent that the patents are performed by, the Product (including its Object Code) or Documentation of Product, any portion of the foregoing.

            2.4            Ownership of Code and Documentation.  As between Developer, on the one hand, and Member and Subsidiaries, on the other, Developer, or its licensors as the case may be, retains ownership of the Product.

3.            SERVICE AND SUPPORT. 

Developer will provide Member (i) an initial thirty days of e-mail support at no cost and (ii) the ability for Member to purchase support agreements beyond the initial 30-day period.  Support shall include timely qualified front-line technical support by email to answer questions from customers consistent with the following support obligations.  Such support includes installation assistance, problem identification and diagnosis, efforts to identify defective Object Code and to provide corrections, workarounds and/or patches to correct Errors in the Product ("Program Errors"). Requests for support should be sent to [email protected].

Developer will make reasonable commercial efforts to correct significant Program Errors that customers report to Developer during the initial thirty day support period.  Developer will not be required to correct any Program Error caused by (a) member’s incorporation or attachment of a feature, program, or device to the Product, or any part thereof; (b) any nonconformance caused by accident, transportation, neglect, misuse, alteration, modification, or enhancement of the Product; (c) the failure to provide a suitable installation environment; (d) use of the Product for other than the specific purpose for which the Product is designed; (e) use of the Product on any systems other than the specified hardware platform for such Product; or (f) customer's failure to incorporate any update previously released by Developer which corrects such Program Error. Developer reserves the right to charge customers additional fees at its then-standard rates for services performed in connection with reported Program Errors which are later determined to have been due to hardware of software not supplied by Developer.

4.            RIGHT TO DEVELOP INDEPENDENTLY.  Nothing in this Agreement will impair either party's right to acquire, license, develop for itself, or have others develop for it, similar technology performing the same or similar functions as the technology contemplated by this Agreement, or to market and distribute such similar technology in addition to, or in lieu of, the Product, provided that in so doing such party makes no use of the Product.

5.            WARRANTIES. 

5.1              Warranties of Developer. Developer represents and warrants to Member that with respect to all subject matter, including ideas, inventions, creations, works, processes, designs and methods, that Developer will disclose or use in its performance of the services or the granting of any rights under this Agreement, Developer warrants that it has the right to make such disclosure, use and grant without liability to others.  Developer further warrants that  (i) the Product is or will be original with Developer; (ii) the Product does not and will not infringe any patent rights, copyrights, mask work rights, trade secret rights or other proprietary rights of others; (iii) Developer is the sole and exclusive owner of the Product and any Derivative Works prepared by Developer pursuant to this Agreement and the rights granted to Member in this Agreement.

5.2              Limitation of Liability. 

(a)               TO THE MAXIMUM EXTENT PERMITTED BY LAW, UNDER NO CIRCUMSTANCES AND UNDER NO LEGAL THEORY, TORT, CONTRACT, OR OTHERWISE, SHALL MEMBER BE LIABLE TO DEVELOPER OR ANY OTHER PERSON FOR ANY MONEY DAMAGES, WHETHER DIRECT, INDIRECT, SPECIAL, INCIDENTAL, COVER, RELIANCE OR CONSEQUENTIAL DAMAGES, EVEN IF MEMBER SHALL HAVE BEEN INFORMED OF THE POSSIBILITY OF SUCH DAMAGES, OR FOR ANY CLAIM BY ANY OTHER PERSON. 

(b)               TO THE MAXIMUM EXTENT PERMITTED BY LAW, UNDER NO CIRCUMSTANCES AND UNDER NO LEGAL THEORY, TORT, CONTRACT, OR OTHERWISE, SHALL DEVELOPER BE LIABLE TO MEMBER OR ANY OTHER PERSON FOR ANY MONEY DAMAGES, WHETHER DIRECT, INDIRECT, SPECIAL, INCIDENTAL, COVER, RELIANCE OR CONSEQUENTIAL DAMAGES, EVEN IF DEVELOPER SHALL HAVE BEEN INFORMED OF THE POSSIBILITY OF SUCH DAMAGES, OR FOR ANY CLAIM BY ANY OTHER PERSON. 

(c)                 PRODUCT IS PROVIDED ON AN “AS IS” BASIS. DEVELOPER MAKES NO WARRANTY, EXPRESS OR IMPLIED, INCLUDING INTELLECTUAL PROPERTY INFRINGEMENT AND THE IMPLIED WARRANTIES OF MECHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

6.         TERM

            6.1            Initial Term.  The Term will commence on the Effective Date and will continue through 4/30/2009, or until terminated as provided in Section 6.

            6.2            Termination by Member for Convenience.  Member may terminate this Agreement for its convenience at any time, for any reason or for no reason, by giving Developer written notice of termination.  Termination will become effective upon receipt of such notice by Developer.

            6.3            Termination By Either Party for Cause.  Either party will have the right to terminate this Agreement immediately upon written notice at any time if the other party is in material breach of any warranty, term, condition or covenant of this Agreement, which breach materially adversely affects the benefits to the non-breaching party under this Agreement, and the breaching party fails to cure that breach within thirty (30) calendar days after written notice of that breach and of the non-breaching party's intention to terminate; provided that if such breach cannot be cured within such thirty (30) calendar day period, but (i) the breach is capable of cure, and (ii) the breaching party diligently pursues such cure, the breaching party shall have up to ninety (90) calendar days from the original written notice to cure such breach.  Termination will become effective automatically upon expiration of the cure period in the absence of a cure. 

7.            GENERAL

            7.1            Force Majeure.  Neither party will be liable for any failure or delay in its performance to fulfill its obligations under this Agreement due to causes, including, but not limited to, act of God, act of civil or military authority, fire, epidemic, flood, earthquake, riot, war, sabotage, labor shortage or dispute, and governmental action, which are beyond its reasonable control; provided that the delayed party  (a) gives the other party written notice of such cause promptly, and in any event within fifteen (15) calendar days of discovery thereof; and (b) uses its reasonable efforts to correct such failure or delay in its performance.  The delayed party's time for performance or cure under this Section 7.1 will be extended for a period equal to the duration of the cause and recovery period.

            7.2            Relationship of Parties. Neither party nor either party’s Members, employees, consultants, Contractors or agents are agents, employees or joint venturers of the other party, nor do they have any authority to bind the other party by contract or otherwise to any obligation.  They will not represent to the contrary, either expressly, implicitly, by appearance or otherwise. Developer is an independent contractor.  Developer will determine, in Developer's sole discretion, the manner and means by which the services to be rendered under this Agreement are accomplished, subject to the express condition that Developer will at all times comply with applicable law.

            7.3            No Use of Name or Trademarks.  In the absence of a separate agreement to the contrary, neither party shall be entitled to use the name of the other in promotional, advertising and other similar materials, it being understood that this shall not restrict either party from reference to the relationship between the parties to the extent required by law in connection with financial disclosure or similar requirements.   Neither party will, without the other's written consent, use the other's trademarks, service marks, trade names, logos or other commercial or product designations, for any purpose, including, but not limited to, use in connection with any products, promotions, advertisements or exhibitions.

            7.4            Assignment.

(a)            The rights and liabilities of the parties hereto will bind and inure to the benefit of their respective successors, executors and administrators, as the case may be; provided that neither party may assign or delegate its obligations under this Agreement either in whole or in part, without the prior written consent of the other, except (i) to any Subsidiary of such party so long as such party remains responsible for such Subsidiary's performance or (ii) to a person or entity into which it has merged or which has otherwise succeeded to all or substantially all of the such party's business and assets to which this Agreement pertains, any merger, reorganization or otherwise, and which has assumed in writing or by operation of law its obligations under this Agreement.

(b)            Except as set forth in paragraph (a)(i) and (ii) above, Members may not assign the Product without Developers prior written consent.

(c)            Any attempted assignment in violation of the provisions of this Section will be void.

7.5              Limitation Of Remedies.  In no event will either party be liable to the other for indirect, incidental or special damages, lost profits, lost savings, incidental damages or any other consequential damages, regardless of the form of action, even if that party has been advised of the possibility of such damages, resulting from breach of its obligations under this Agreement or from the use of any confidential or other information or any items or products supplied pursuant to this Agreement. In addition, Developer will no be liable for any damages claimed by Member based on any third party claim. In no event will Developer be liable for any damages caused by Member’s failure to perform Member’s responsibilities.

            7.6            Equitable Relief.  Because a breach this Agreement would cause irreparable harm and significant injury which would be difficult to ascertain and which would not be compensable by damages alone, the parties agree that any party will have the right to enforce those provisions by injunction, specific performance or other equitable relief without prejudice to any other rights and remedies the enforcing party may have for another party’s breach of this Agreement.

7.7            Limitation of Actions.  No actions or arbitration proceeding, regardless of form, arising out of this Agreement may be brought by either party more than eighteen months after the cause of action has arisen; provided, however, with respect to any action brought by one party against another party, the party against whom the action was brought may claim the benefit of any applicable statute of limitations that is less than eighteen months in duration. In the event of the termination or expiration of this Agreement, the provisions of this Agreement which by their nature extend beyond termination or expiration of this Agreement shall remain in effect beyond such termination or expiration until fulfilled.

            7.8            Arbitration.  Except as set forth in this Section, any controversy, claim or dispute arising out of or related to this Agreement, or the breach or alleged breach hereof, will be submitted by the parties to arbitration by the American Arbitration Association in Boston, Massachusetts, in accordance with the commercial arbitration rules then in effect of the American Arbitration Association by three (3) arbitrators appointed in accordance with said rules.  The decision of the arbitrators shall be final and binding, and judgment on the award rendered by the arbitrators may be entered in any court having jurisdiction thereof.  The award rendered by the arbitration board shall include costs of arbitration, reasonable attorneys' fees and reasonable costs for expert and other witnesses.  The parties shall be entitled to discovery as provided in Federal Rules of Civil Procedure.  All proceedings shall be held in English and a transcribed record of the proceedings shall be prepared in English. Nothing in this Agreement shall prevent either party from seeking injunctive relief (or any other provisional remedy or equitable relief) from any court having jurisdiction over the parties and the subject matter of the dispute to protect their respective intellectual property rights. The venue for any arbitration or court action is in the State of Colorado.

            7.9            Applicable Law.  The validity, construction and performance of this Agreement will be governed by and construed in accordance with the laws of the State of Colorado .  With respect to any suit, action or other proceeding arising out of this Agreement, or any other transaction contemplated thereby, the parties hereto expressly waive any right they may have to a jury trial and agree that any proceeding under this Agreement which is not subject to arbitration shall be tried by a judge without a jury.  The parties agree to non-exclusive personal jurisdiction and venue of the United States District Court for the State of Colorado

            7.10            Severability.  If any provision of this Agreement shall be held to be illegal, invalid or unenforceable, that provision of the Agreement will be enforced to the maximum extent permissible so as to effect the intent of the parties, and the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

            7.11            Notices.  All notices, demands, requests or other communications that may be or are required to be given, served or sent by any party pursuant to this Agreement will be in writing (and shall be deemed to have been duly given upon receipt), will reference this Agreement and shall be mailed by first class, registered or certified mail, return receipt requested, postage prepaid, or transmitted by express courier or hand delivery or facsimile transmission, addressed to the parties at the address set forth in the preamble to this Agreement.  Each party may designate by notice in writing a new address to which any notice, demand, request or communication may thereafter be so given, served or sent.  Each notice that is mailed, delivered or transmitted in the manner described above shall be deemed sufficiently given, served, sent and received for all purposes at such time as it is delivered to the addressee (with the return receipt, the delivery receipt or the affidavit of messenger or courier being deemed conclusive evidence of such delivery) or at such time as delivery is refused by the addressee upon presentation.

            7.12            No Waiver.  Failure by either party to enforce any provision of this Agreement will not be deemed a waiver of future enforcement of that or any other provision.

            7.13            No Rights in Third Parties.  This Agreement is made for the benefit of Developer and Member and their respective subsidiaries and affiliates, if any, and not for the benefit of any third parties

            7.14            Counterparts.  This Agreement may be executed in one or more counterparts, each of which will be deemed an original, but which collectively will constitute one and the same instrument.

            7.15            Headings and References.  The headings and captions used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.  References to Sections without decimals (such as "Section 2") shall include all sections numbered with decimals in such Section (i.e. Section 2.1, 2.2, etc.).

            7.16            Construction.  This Agreement has been negotiated by the parties and their respective counsel.  This Agreement will be interpreted fairly in accordance with its terms and without any strict construction in favor of or against either party.

            7.17            Complete Agreement.  This Agreement, including all exhibits, constitutes the entire agreement between the parties with respect to the subject matter hereof, and supersedes and replaces all prior or contemporaneous understandings or agreements, written or oral, regarding such subject matter.  No amendment to or modification of this Agreement will be binding unless in writing and signed by a duly authorized representative of both parties.

            IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized representatives as of the date first set forth above.

GRANITE SYSTEMS, INC.

 

 

By  ______________________

Name   Michael D. Osborn

Title     President

 

SALUTATION CONSORTIUM MEMBER:

 

_____________________________

(name of entity)

 

 

By  ______________________

Name ____________________

Title  _____________________


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