SIMPLE MAINTENANCE SERVICES AGREEMENT FOR SERVICES (VENDOR ORIENTED)

[WARNING: THIS AGREEMENT AND ALL QUESTIONS ARE OFFERED AS SAMPLES ONLY.  USE OF THIS AGREEMENT IS BY YOU AT YOUR DIRECTION, IS NOT DIRECTED BY WHICHDRAFT.COM, AND IN NO WAY CONSTITUTES LEGAL ADVICE.  WHICHDRAFT.COM RECOMMENDS THAT ANYONE ENTERING INTO A CONTRACT CONSULT AN ATTORNEY FOR LEGAL ADVICE. THE COPYRIGHT IN THIS CONTRACT IS OWNED BY RADIO FREE CONTRACTS LLC.]

This Agreement describes Party-1's sale of Services to Party-2.

NOW THEREFORE, in consideration of the mutual promises and covenants contained in this Agreement, the parties hereby agree to the following terms and conditions:

1. DEFINITIONS. 

(a) "Business Hours" means the hours between 9:00 a.m. and 5:00 p.m. in the time zone where Party-2's address is located, except for weekends and Party-2 holidays. [QR-116]

(b) "Contract Year" means any twelve (12) month period during the Term beginning on January 1 and ending on December 31. [QR-65]

(c) "Correction" means the correction of a Malfunction at any and all priority levels to ensure that the Maintained Item performs in accordance with the requirements of this Agreement.

(d) "Government Authority" means any governmental authority or court, tribunal, agency, department, commission, arbitrator, board, bureau, or instrumentality of the United States of America or any other country or territory, or domestic or foreign state, prefecture, province, commonwealth, city, county, municipality, territory, protectorate or possession.

(e) "Law" means all laws, statutes, ordinances, codes, regulations and other pronouncements having the effect of law of any Government Authority.

(f) "Maintained Item" means  [QR-129]

(g) "Maintenance Services" means the specific Services consisting of Corrections, Revisions and Upgrades. 

(h) "Malfunction" means a malfunction of the Maintained Item that prevents the Maintained Item from performing in accordance with the requirements of this Agreement.

(i) "Priority 1" means a severe Malfunction exists which makes the use of one or more Maintained Item critical functions inoperable or materially decreases the functionality required by this Agreement.

(j) "Priority 2" means a non-severe Malfunction exists which makes the use of one or more Maintained Item functions less operable or decreases functionality as required by this Agreement, but is not a Priority 1 Malfunction. 

(k) "Revision" means a version of the Maintained Item with updates, modifications, patches, fixes, or changes that is a less substantial change to the Maintained Item than an Upgrade, as the version is made generally available to the Maintained Item's customers, and as indicated by a change in the release number to the right of the decimal point. [QR-120]

(l) "Services" means the services Party-1 provides to Party-2 as described in this Agreement.

(m) "Upgrade" means a version of the Maintained Item with major new features or significant enhancements, as the version is made generally available to the Maintained Item's customers, and as indicated by a change in the release number to the left of the decimal point. [QR-121]

2. MAINTENANCE SERVICES.

(a) Revisions and Upgrades.  Party-1 agrees to provide Maintenance Services for the current Upgrade as of the Effective Date. Revisions are included with the Maintenance Services fee and are not subject to an additional charge. Upgrades are subject to an additional fee (at the same price Party-1 generally charges its customers) over and above the fee for Maintenance Services. [QR-125]  Party-2 agrees to offer Revisions and Upgrades to Party-1 when and if available.  Each Revision and Upgrade must be functionally compatible with the prior release or version of the Maintained Item, and must comply with the requirements of this Agreement that apply to the Maintained Item.  Party-1 may not be required to install any Revision or Upgrade except: (i) as a prerequisite to installing a subsequent Revision or Upgrade; or (ii) to avoid violation of intellectual property or proprietary rights of a third party, in which case the Revision or Upgrade will be provided at no charge. Revisions and Upgrades must include appropriate changes to the documentation that is generally provided to the Maintained Item's customers.

(b) Corrections.  After Party-1 has informed Party-2 of a Malfunction, and subject to Party-1 reasonably assisting Party-2 in attempting to recreate and diagnose the Malfunction, Party-2 agrees to: (i) provide a progress report to Party-1 within twenty four (24) hours of receiving each request to do so from Party-1, (ii) for Priority 1 level Malfunctions, promptly assign a Party-1 employee to address the Malfunction, provide a response within twenty four (24) hours during Business Hours, and ensure that the assigned employees work continuously during Business Hours until a Correction is provided and (iii) for Priority 2 level Malfunctions, within twenty four (24) hours respond and assign technical support resources, and provide a Correction within a reasonable amount of time and at the same time or sooner than Party-1 provides the Correction to its other customers. In order to remotely address Malfunctions and provide Corrections, Party-2 consents to Party-1 remotely accessing the Maintained Item to do so. [QR-124]

3. MAINTENANCE SERVICES FEE.  The annual Maintenance Services fee is: TEXTFIELD [QR-127]  Party-1 may invoice Party-2 for the Maintenance Services fee annually and in advance on the first day of each Contract Year.  If Party-2 does not timely pay the Maintenance Services fee, then Party-1 may suspend performance of the Maintenance Services until Party-2 does so, in which case Party-2 must pay the entire Maintenance Services fee for the entire time the Maintenance Services were suspended, plus any additional fee due for the rest of the Contract Year and any subsequent Contract Year.  The Maintenance Services fee may not be increased during any particular Contract Year, but Party-1 may increase the Maintenance Services fee for any subsequent Contract Year. 

4. WARRANTIES.

(a) Warranties by Party-1.  Party-1 represents, warrants and covenants to Party-2 that:

(i) Warranty Length.  For a period of thirty (30) days after receipt, the Services conform to the requirements of this Agreement, are free from any defect in material and workmanship, and are free of all liens, claims and encumbrances of any kind. [QR-82]

(b) Disclaimer. EXCEPT AS EXPRESSLY STATED IN THIS AGREEMENT, PARTY-1 AND PARTY-2 EACH MAKE NO REPRESENTATIONS AND EXTEND NO WARRANTIES OR COVENANTS OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

5. LIMITATION OF LIABILITY.  THIS LIMITATION OF LIABILITY PROVISION APPLIES IN THE AGGREGATE AND NOT ON A PER CLAIM BASIS, WHETHER ANY DAMAGES ARE CHARACTERIZED IN TORT, NEGLIGENCE, CONTRACT, OR OTHER THEORY OF LIABILITY, REGARDLESS OF WHETHER A PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF OR COULD HAVE FORESEEN ANY DAMAGES, AND IRRESPECTIVE OF ANY FAILURE OF ESSENTIAL PURPOSE OF A LIMITED REMEDY. THIS LIMITATION OF LIABILITY PROVISION DOES NOT LIMIT A PARTY'S LIABILITY FOR GROSS NEGLIGENCE, INDEMNIFICATION OBLIGATIONS, BREACH OF CONFIDENTIALITY REQUIREMENTS, INTENTIONAL MISCONDUCT, INTENTIONAL TORTS AND INTENTIONAL VIOLATIONS OF LAW. NEITHER PARTY IS LIABLE TO THE OTHER OR ANY THIRD PARTY UNDER THIS AGREEMENT FOR ANY INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, EXEMPLARY, OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR RESULTING FROM THIS AGREEMENT. [QR-33]  EACH PARTY'S LIABILITY SHALL NOT EXCEED THE AMOUNTS PAID UNDER THIS AGREEMENT IN THE ONE (1) YEAR PERIOD PRIOR TO THE DATE THE CLAIM AROSE. [QR-34]

6. TERM AND TERMINATION.

(a) Term. The term of this Agreement (together with any renewals, the "Term") begins on the Effective Date and expires one (1) year [QR-24] later.  Immediately upon expiration this Agreement automatically renews on the same terms and conditions for additional successive periods of one (1) year on each anniversary of the Effective Date, unless either party gives the other party notice that the Agreement does not renew at least thirty (30) days before the end of the then applicable Term. [QR-18]

(b) Survival.  The following captioned sections survive any termination, expiration or non-renewal of this Agreement: "Disclaimer", "Limitation of Liability", "Survival" and "General", as well as any other provisions expressly stating that they are perpetual or survive this Agreement.

(c) Termination for Insolvency. If either party is adjudged insolvent or bankrupt, or upon the institution of any proceedings by it seeking relief, reorganization or arrangement under any Laws relating to insolvency, or if an involuntary petition in bankruptcy is filed against a party and the petition is not discharged within sixty (60) days after filing, or upon any assignment for the benefit of a party's creditors, or upon the appointment of a receiver, liquidator or trustee of any of a party's assets, or upon the liquidation, dissolution or winding up of its business (each, an "Event of Bankruptcy"), then the party affected by any Event of Bankruptcy must immediately give notice of the Event of Bankruptcy to the other party, and the other party may terminate this Agreement by notice to the affected party.

(d) Termination for Breach.  If either party breaches any provision contained in this Agreement, and the breach is not cured within thirty (30) days after the breaching party receives notice of the breach from the non-breaching party, the non-breaching party may then deliver a second notice to the breaching party immediately terminating this Agreement.

[QR-17]

7. FORCE MAJEURE.   Any failure or delay by a party in the performance of its obligations under this Agreement is not a default or breach of the Agreement or a ground for termination under this Agreement to the extent the failure or delay is due to elements of nature or acts of God, acts of war, terrorism, riots, revolutions, or strikes or other factor beyond the reasonable control of a party (each, a "Force Majeure Event"). The party failing or delaying due to a Force Majeure Event agrees to give notice to the other party which describes the Force Majeure Event and includes a good faith estimate as to the impact of the Force Majeure Event upon its responsibilities under this Agreement, including, but not limited to, any scheduling changes. However, should any failure to perform or delay in performance due to a Force Majeure Event last longer than thirty (30) days, or should three (3) Force Majeure Events apply to the performance of a party during any calendar year, the party not subject to the Force Majeure Event may terminate this Agreement by notice to the party subject to the Force Majeure Event.

8. GENERAL.  Entire Agreement and Amendments. This Agreement is the entire agreement between the parties and supersedes all earlier and simultaneous agreements regarding the subject matter, including, without limitation, any invoices, business forms, purchase orders, proposals or quotations. This Agreement may be amended only in a written document, signed by both parties. Independent Contractors, Third Party Beneficiaries, and Subcontractors.  The parties acknowledge that they are independent contractors under this Agreement, and except if expressly stated otherwise, none of the parties, nor any of their employees or agents, has the power or authority to bind or obligate another party.  Except if expressly stated, no third party is a beneficiary of this Agreement. The parties may not subcontract any of their obligations under this Agreement. [QR-63] Governing Law and Forum.  All claims regarding this Agreement are governed by and construed in accordance with the Laws of TEXTFIELD [QR-27], applicable to contracts wholly made and performed in such jurisdiction, except for any choice or conflict of Law principles, and must be litigated in TEXTFIELD [QR-28], regardless of the inconvenience of the forum, except that a party may seek temporary injunctive relief in any venue of its choosing.  The parties acknowledge and agree that the United Nations Convention on Contracts for the International Sale of Goods is specifically excluded from application to this Agreement.  Assignment.  This Agreement binds and inures to the benefit of the parties' successors and assigns.  Either party may assign, delegate, sublicense or otherwise transfer this Agreement, or any right or obligation under this Agreement, to a third party. [QR-46]  No Waivers, Cumulative Remedies.  A party's failure to insist upon strict performance of any provision of this Agreement is not a waiver of any of its rights under this Agreement. Except if expressly stated otherwise, all remedies under this Agreement, at Law or in equity, are cumulative and nonexclusive.  Severability.  If any portion of this Agreement is held to be unenforceable, the unenforceable portion must be construed as nearly as possible to reflect the original intent of the parties, the remaining portions remain in full force and effect, and the unenforceable portion remains enforceable in all other contexts and jurisdictions.  Notices.  All notices, including notices of address changes, under this Agreement must be sent by registered or certified mail or by overnight commercial delivery to the address set forth in this Agreement by each party.  Captions and Plural Terms.  All captions are for purposes of convenience only and are not to be used in interpretation or enforcement of this Agreement.  Terms defined in the singular have the same meaning in the plural and vice versa.



IN WITNESS WHEREOF, the parties execute this Agreement as of the Effective Date. Each person who signs this Agreement below represents that such person is fully authorized to sign this Agreement on behalf of the applicable party.

PARTY-1

By: __________________________________
Print Name: ___________________________
Title: ________________________________

PARTY-2

By: __________________________________
Print Name: ___________________________
Title: ________________________________