OEM / White-Label Agreement (District of Columbia)
OEM / WHITE-LABEL AGREEMENT
DISTRICT OF COLUMBIA
THIS OEM/WHITE-LABEL AGREEMENT (this "Agreement") is entered into as of [EFFECTIVE DATE] (the "Effective Date"),
BY AND BETWEEN:
[SUPPLIER LEGAL NAME], a [STATE/JURISDICTION] [ENTITY TYPE] with its principal place of business at [ADDRESS] ("Supplier"),
AND
[PARTNER LEGAL NAME], a [STATE/JURISDICTION] [ENTITY TYPE] with its principal place of business at [ADDRESS] ("Partner").
Supplier and Partner are each referred to herein as a "Party" and collectively as the "Parties."
RECITALS
WHEREAS, Supplier is engaged in the business of designing, manufacturing, and supplying certain products and/or services described herein;
WHEREAS, Partner desires to obtain from Supplier, and Supplier desires to grant to Partner, the right to purchase Products from Supplier for resale under Partner's brand name(s) or on an OEM basis;
WHEREAS, Supplier possesses certain intellectual property, trade secrets protected under the D.C. Uniform Trade Secrets Act (D.C. Code § 36-401 et seq.), and proprietary technology related to the Products;
WHEREAS, the Parties desire to establish a business relationship whereby Partner may market, distribute, and sell the Products under Partner's trademarks and trade dress in accordance with the terms and conditions set forth herein;
WHEREAS, the Parties intend this Agreement to be governed by the laws of the District of Columbia, including but not limited to the D.C. Uniform Commercial Code (D.C. Code Title 28);
NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
ARTICLE 1: DEFINITIONS
1.1 "Affiliate" means any entity that directly or indirectly controls, is controlled by, or is under common control with a Party. "Control" means ownership of more than fifty percent (50%) of the voting securities or equivalent voting interest.
1.2 "Branding Guidelines" means Supplier's or Partner's written guidelines for the use of trademarks, logos, trade dress, and other branding elements, as set forth in Schedule C.
1.3 "Confidential Information" means all non-public information disclosed by one Party to the other, whether orally, in writing, or by inspection, including but not limited to trade secrets as defined under D.C. Code § 36-401, technical data, know-how, business plans, pricing, customer lists, and financial information.
1.4 "Customer" means any third party that purchases Products from Partner.
1.5 "Defective Product" means any Product that fails to conform to the Specifications or applicable warranties at the time of delivery.
1.6 "Deliverables" means all Products, documentation, and related materials delivered by Supplier to Partner under this Agreement.
1.7 "Effective Date" means the date first written above.
1.8 "Exclusivity" has the meaning set forth in Section 5.3.
1.9 "Intellectual Property" or "IP" means all patents, copyrights, trademarks, trade secrets, and other intellectual property rights, whether registered or unregistered.
1.10 "Manufacturing Specifications" means the technical specifications, quality standards, and requirements for the manufacture of Products as set forth in Schedule A.
1.11 "Minimum Purchase Commitment" means the minimum quantity of Products that Partner agrees to purchase during each Contract Year, as specified in Schedule B.
1.12 "OEM" means Original Equipment Manufacturer.
1.13 "Order" or "Purchase Order" means a written order submitted by Partner to Supplier for Products in accordance with Article 9.
1.14 "Partner Brand" means the trademarks, trade names, logos, and trade dress owned or licensed by Partner under which the Products will be marketed and sold.
1.15 "Personal Data" means any information relating to an identified or identifiable natural person, as further defined in the Data Processing Addendum (Schedule E) and consistent with D.C. Code § 28-3851.
1.16 "Products" means the goods and/or services described in Schedule A that Supplier will manufacture, supply, or provide to Partner under this Agreement.
1.17 "Security Breach" means a breach of the security of data as defined in D.C. Code § 28-3851(1), including unauthorized acquisition of computerized or other electronic data.
1.18 "Service Level Agreement" or "SLA" means the service levels and performance standards set forth in Schedule D.
1.19 "Specifications" means the product specifications, including Manufacturing Specifications, quality requirements, and performance criteria for the Products as set forth in Schedule A.
1.20 "Supplier IP" means all Intellectual Property owned by or licensed to Supplier prior to or independent of this Agreement.
1.21 "Territory" means the geographic area in which Partner is authorized to market and sell the Products, as specified in Section 5.2.
1.22 "White-Label Products" means Products manufactured by Supplier and sold to Partner for resale under Partner's Brand without Supplier branding.
ARTICLE 2: APPOINTMENT AS OEM/WHITE-LABEL PARTNER
2.1 Appointment. Subject to the terms and conditions of this Agreement, Supplier hereby appoints Partner, and Partner hereby accepts such appointment, as a [non-exclusive/exclusive] OEM/white-label partner to purchase, market, distribute, and resell the Products in the Territory under the Partner Brand.
2.2 Acceptance of Appointment. Partner accepts such appointment and agrees to use commercially reasonable efforts to promote, market, and sell the Products in accordance with this Agreement.
2.3 No Agency or Franchise. This Agreement does not create an agency, partnership, joint venture, or franchise relationship between the Parties. Partner is an independent contractor and shall not represent itself as an agent, employee, or legal representative of Supplier.
2.4 Compliance with Laws. Partner shall comply with all applicable federal, state, and local laws, regulations, and ordinances in connection with its activities under this Agreement, including but not limited to the laws of the District of Columbia.
2.5 Subcontracting. Partner shall not subcontract, delegate, or assign any of its rights or obligations under this Agreement to any third party without the prior written consent of Supplier.
ARTICLE 3: LICENSE GRANT
3.1 License to Resell. Subject to the terms and conditions of this Agreement, Supplier grants to Partner a [non-exclusive/exclusive] license to:
(a) Purchase Products from Supplier;
(b) Market, promote, distribute, and resell the Products in the Territory;
(c) Apply Partner Brand to Products in accordance with the Branding Guidelines; and
(d) Use Supplier's technical documentation and marketing materials solely in connection with the resale of Products.
3.2 Territory. The license granted in Section 3.1 is limited to the following Territory: [SPECIFY TERRITORY, e.g., "the United States" or "the District of Columbia and surrounding metropolitan area"].
3.3 Exclusivity.
(a) [OPTION 1 - NON-EXCLUSIVE]: The license granted herein is non-exclusive. Supplier reserves the right to appoint additional OEM/white-label partners and to sell Products directly in the Territory.
(b) [OPTION 2 - EXCLUSIVE]: The license granted herein is exclusive within the Territory, subject to Partner meeting the Minimum Purchase Commitments set forth in Schedule B. If Partner fails to meet the Minimum Purchase Commitments in any Contract Year, Supplier may, upon written notice, convert the exclusive license to a non-exclusive license.
3.4 Reservation of Rights. Except for the licenses expressly granted herein, Supplier reserves all rights in and to the Products and Supplier IP. No implied licenses are granted.
3.5 Restrictions. Partner shall not:
(a) Sell Products outside the Territory without prior written consent;
(b) Modify, reverse engineer, or create derivative works of the Products except as expressly authorized;
(c) Remove or alter any proprietary notices on the Products;
(d) Use Supplier's trademarks except as authorized in the Branding Guidelines; or
(e) Sell Products to any person or entity that Partner knows or has reason to know will resell outside the Territory.
ARTICLE 4: BRANDING AND TRADEMARK USAGE
4.1 Partner Branding. Subject to Supplier's prior written approval, Partner may apply the Partner Brand to White-Label Products in accordance with this Article and the Branding Guidelines in Schedule C.
4.2 Branding Guidelines. Partner shall comply with Supplier's Branding Guidelines and any reasonable updates thereto. Any use of branding not expressly authorized by the Branding Guidelines requires Supplier's prior written consent.
4.3 Trademark License. To the extent necessary for Partner to perform its obligations under this Agreement, each Party grants to the other a limited, non-exclusive, non-transferable license to use its trademarks solely for purposes of this Agreement and in accordance with the Branding Guidelines.
4.4 Quality Control. Partner acknowledges that Supplier has a legitimate interest in maintaining the quality and reputation associated with the Products. Partner agrees to:
(a) Maintain quality standards consistent with Supplier's standards;
(b) Submit samples of branded Products for Supplier's approval upon request;
(c) Correct any branding non-conformities within thirty (30) days of notice.
4.5 No Ownership Transfer. Nothing in this Agreement shall be construed to transfer any ownership rights in either Party's trademarks to the other Party.
4.6 Trademark Registration. Partner shall not register or attempt to register any trademark, trade name, or domain name that is confusingly similar to Supplier's trademarks.
ARTICLE 5: PRODUCT SPECIFICATIONS AND QUALITY
5.1 Specifications. Supplier shall manufacture and supply Products in accordance with the Specifications set forth in Schedule A. Any changes to the Specifications require mutual written agreement.
5.2 Quality Standards. Supplier shall maintain quality control procedures and standards consistent with industry best practices and all applicable laws and regulations.
5.3 Inspection and Testing. Supplier shall conduct quality assurance testing on all Products before shipment. Partner shall have the right to inspect Products upon delivery and reject any Defective Products within [NUMBER] days of receipt.
5.4 Quality Audits. Upon reasonable prior notice, Partner may conduct quality audits of Supplier's manufacturing facilities up to [NUMBER] times per year during normal business hours.
5.5 Compliance with Laws. Supplier warrants that all Products shall comply with applicable federal, state, and local laws, regulations, and safety standards, including but not limited to consumer protection laws of the District of Columbia.
5.6 Changes to Specifications. If either Party desires to change the Specifications:
(a) The requesting Party shall submit a written change request;
(b) The Parties shall negotiate in good faith regarding the proposed change;
(c) Any agreed changes shall be documented in a written amendment to Schedule A;
(d) Supplier may adjust pricing to reflect material changes in manufacturing costs.
ARTICLE 6: PRICING AND PAYMENT
6.1 Pricing. The pricing for Products shall be as set forth in Schedule B. Supplier may adjust pricing upon [SIXTY (60) / NINETY (90)] days' prior written notice, provided that pricing adjustments shall not affect Orders accepted prior to the effective date of such adjustment.
6.2 Payment Terms. Unless otherwise specified in Schedule B:
(a) Payment shall be due within [NET 30 / NET 45] days from the date of invoice;
(b) All payments shall be made in U.S. dollars;
(c) Payment shall be made by wire transfer, ACH, or such other method as the Parties may agree.
6.3 Taxes. All prices are exclusive of applicable sales, use, excise, value-added, and other taxes. Partner shall be responsible for all such taxes, except for taxes based on Supplier's income.
6.4 Late Payments. Overdue amounts shall bear interest at the lesser of one and one-half percent (1.5%) per month or the maximum rate permitted by D.C. law. Supplier may suspend shipments if any payment is more than [THIRTY (30)] days overdue.
6.5 Disputed Invoices. Partner shall notify Supplier of any disputed invoice amounts within [FIFTEEN (15)] days of receipt. The Parties shall work in good faith to resolve disputes. Undisputed amounts shall be paid when due.
6.6 Audit Rights. Upon reasonable notice and not more than once per year, each Party may audit the other Party's relevant records to verify compliance with pricing and payment obligations. Such audits shall be conducted during normal business hours at the auditing Party's expense, unless the audit reveals a discrepancy greater than five percent (5%), in which case the audited Party shall bear the audit costs.
ARTICLE 7: ORDERING AND DELIVERY
7.1 Purchase Orders. Partner shall submit Purchase Orders to Supplier specifying:
(a) Products ordered and quantities;
(b) Requested delivery date (minimum [LEAD TIME] days from order date);
(c) Shipping instructions and delivery address;
(d) Any special packaging or labeling requirements.
7.2 Order Acceptance. Supplier shall accept or reject each Order within [FIVE (5)] business days of receipt. Failure to respond within such period shall constitute acceptance. Supplier may reject Orders that exceed Partner's credit limit or available inventory.
7.3 Delivery. Unless otherwise agreed:
(a) Delivery terms shall be [FOB ORIGIN / FOB DESTINATION / DDP] (Incoterms 2020);
(b) Title and risk of loss shall pass to Partner upon [DELIVERY TO CARRIER / DELIVERY TO DESTINATION];
(c) Supplier shall use commercially reasonable efforts to meet requested delivery dates.
7.4 Shipping and Insurance. [SPECIFY WHICH PARTY BEARS SHIPPING COSTS AND INSURANCE RESPONSIBILITIES].
7.5 Packaging. Supplier shall package Products in accordance with the Specifications and any packaging requirements specified in Purchase Orders. White-Label Products shall be packaged with Partner branding in accordance with the Branding Guidelines.
7.6 Shortage and Damage. Partner shall inspect all shipments upon receipt and notify Supplier in writing of any shortages or visible damage within [FIVE (5)] business days. Failure to provide timely notice shall constitute acceptance.
7.7 Forecasts. Partner shall provide Supplier with rolling [TWELVE (12)] month forecasts on a [MONTHLY / QUARTERLY] basis. Forecasts are non-binding but shall be prepared in good faith to assist Supplier with production planning.
ARTICLE 8: WARRANTIES
8.1 Product Warranty. Supplier warrants that all Products delivered under this Agreement shall:
(a) Conform to the Specifications;
(b) Be free from defects in materials and workmanship;
(c) Be merchantable as defined in D.C. Code § 28:2-314;
(d) Be fit for their intended purpose if Supplier has reason to know of such purpose, pursuant to D.C. Code § 28:2-315;
(e) Be free and clear of any liens, encumbrances, or security interests.
8.2 Warranty Period. The warranty period shall be [TWELVE (12) / TWENTY-FOUR (24)] months from the date of delivery to Partner, or [SPECIFY PERIOD] from the date of sale to an end customer, whichever occurs first.
8.3 Warranty Remedies. For any Defective Product, Supplier shall, at its option:
(a) Repair the Defective Product;
(b) Replace the Defective Product with conforming Product; or
(c) Refund the purchase price for the Defective Product.
8.4 Warranty Exclusions. The warranties in Section 8.1 do not apply to defects caused by:
(a) Misuse, abuse, or improper handling by Partner or Customers;
(b) Unauthorized modification or repair;
(c) Use inconsistent with documentation or Specifications;
(d) Normal wear and tear.
8.5 IP Warranty. Supplier warrants that the Products, as delivered, do not infringe any patent, copyright, trademark, or trade secret rights of any third party in the United States.
8.6 Pass-Through Warranties. Partner may pass through Supplier's warranties to its Customers, provided that Partner shall not extend warranties beyond those provided by Supplier without Supplier's prior written consent.
8.7 DISCLAIMER. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, SUPPLIER MAKES NO OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE BEYOND THOSE EXPRESSLY PROVIDED HEREIN.
ARTICLE 9: SUPPORT AND MAINTENANCE
9.1 Technical Support. Supplier shall provide Partner with technical support as described in the Service Level Agreement (Schedule D), including:
(a) Telephone and email support during business hours;
(b) Access to technical documentation and knowledge base;
(c) Training on Products as reasonably requested.
9.2 Partner Support Obligations. Partner shall be responsible for providing first-tier customer support to its Customers. Partner shall escalate issues to Supplier only after reasonable troubleshooting efforts.
9.3 Product Updates. Supplier shall provide Partner with reasonable notice of Product updates, enhancements, and end-of-life decisions. Partner shall be entitled to receive Product updates at [NO ADDITIONAL CHARGE / PRICING TO BE DETERMINED].
9.4 Maintenance Services. If applicable, maintenance services for Products shall be provided in accordance with the SLA and any separate maintenance agreement between the Parties.
ARTICLE 10: CONFIDENTIALITY
10.1 Confidential Information. Each Party acknowledges that it may receive Confidential Information from the other Party. Confidential Information shall be protected in accordance with this Article and the D.C. Uniform Trade Secrets Act (D.C. Code § 36-401 et seq.).
10.2 Obligations. The receiving Party shall:
(a) Maintain Confidential Information in strict confidence;
(b) Use Confidential Information only for purposes of this Agreement;
(c) Disclose Confidential Information only to employees and contractors who need to know and are bound by confidentiality obligations at least as protective as this Article;
(d) Protect Confidential Information using at least the same degree of care used to protect its own confidential information, but in no event less than reasonable care.
10.3 Exceptions. Confidential Information does not include information that:
(a) Is or becomes publicly available through no fault of the receiving Party;
(b) Was rightfully in the receiving Party's possession prior to disclosure;
(c) Is independently developed without use of Confidential Information;
(d) Is rightfully obtained from a third party without restriction.
10.4 Required Disclosure. If required by law, regulation, or court order to disclose Confidential Information, the receiving Party shall provide prompt notice to the disclosing Party (to the extent permitted) and cooperate in seeking a protective order.
10.5 Return of Confidential Information. Upon termination or expiration of this Agreement, each Party shall return or destroy all Confidential Information of the other Party, except as required for legal compliance or archival purposes.
10.6 Injunctive Relief. Each Party acknowledges that a breach of this Article may cause irreparable harm for which monetary damages would be inadequate. Accordingly, the non-breaching Party shall be entitled to seek injunctive relief in addition to any other remedies available at law or in equity.
10.7 Survival. The confidentiality obligations in this Article shall survive termination or expiration of this Agreement for a period of [THREE (3) / FIVE (5)] years, except that obligations with respect to trade secrets shall continue for as long as such information remains a trade secret under applicable law.
ARTICLE 11: INTELLECTUAL PROPERTY OWNERSHIP
11.1 Supplier IP. Supplier retains all right, title, and interest in and to the Supplier IP, including all patents, copyrights, trademarks, trade secrets, and other intellectual property rights in the Products, manufacturing processes, and technical documentation.
11.2 Partner IP. Partner retains all right, title, and interest in and to the Partner Brand, customer relationships developed by Partner, and any independently developed intellectual property.
11.3 No Transfer of IP. Except for the licenses expressly granted herein, nothing in this Agreement shall be construed as transferring any ownership rights in either Party's intellectual property to the other Party.
11.4 Improvements. Any improvements, modifications, or derivative works developed by Supplier in connection with the Products shall be owned exclusively by Supplier. Partner shall promptly disclose to Supplier any suggestions or feedback regarding the Products and hereby assigns to Supplier all rights in such suggestions and feedback.
11.5 Customer Data. As between the Parties, Partner shall own all data collected from Partner's Customers, subject to the Data Processing Addendum (Schedule E) and applicable privacy laws including D.C. Code § 28-3851 et seq.
ARTICLE 12: INDEMNIFICATION
12.1 Supplier Indemnification. Supplier shall defend, indemnify, and hold harmless Partner and its officers, directors, employees, and agents from and against any third-party claims, damages, losses, and expenses (including reasonable attorneys' fees) arising from:
(a) Supplier's breach of this Agreement;
(b) Infringement of any third-party intellectual property rights by the Products as delivered;
(c) Defects in the Products;
(d) Supplier's gross negligence or willful misconduct;
(e) Supplier's violation of applicable laws.
12.2 Partner Indemnification. Partner shall defend, indemnify, and hold harmless Supplier and its officers, directors, employees, and agents from and against any third-party claims, damages, losses, and expenses (including reasonable attorneys' fees) arising from:
(a) Partner's breach of this Agreement;
(b) Partner's marketing, sale, or distribution of Products, except to the extent caused by Supplier's breach or negligence;
(c) Partner's modification of Products without Supplier's authorization;
(d) Partner's gross negligence or willful misconduct;
(e) Partner's violation of applicable laws.
12.3 Indemnification Procedure. The Party seeking indemnification shall:
(a) Provide prompt written notice of the claim;
(b) Grant the indemnifying Party sole control of the defense and settlement;
(c) Cooperate reasonably in the defense at the indemnifying Party's expense;
(d) Not settle any claim without the indemnifying Party's prior written consent.
12.4 IP Infringement Remedies. If any Product becomes, or in Supplier's opinion is likely to become, the subject of an infringement claim, Supplier may, at its option:
(a) Procure for Partner the right to continue using the Product;
(b) Modify the Product to make it non-infringing; or
(c) Replace the Product with a non-infringing alternative; or
(d) If none of the foregoing is commercially reasonable, terminate this Agreement with respect to the affected Product and refund any prepaid amounts.
ARTICLE 13: LIMITATION OF LIABILITY
13.1 Exclusion of Consequential Damages. EXCEPT FOR BREACHES OF ARTICLE 10 (CONFIDENTIALITY), INDEMNIFICATION OBLIGATIONS UNDER ARTICLE 12, OR A PARTY'S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, INCLUDING LOST PROFITS, LOSS OF DATA, OR LOSS OF BUSINESS OPPORTUNITY, REGARDLESS OF WHETHER SUCH DAMAGES WERE FORESEEABLE OR WHETHER A PARTY WAS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
13.2 Cap on Liability. EXCEPT FOR BREACHES OF ARTICLE 10 (CONFIDENTIALITY), INDEMNIFICATION OBLIGATIONS UNDER ARTICLE 12, OR A PARTY'S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, EACH PARTY'S TOTAL CUMULATIVE LIABILITY UNDER THIS AGREEMENT SHALL NOT EXCEED THE TOTAL AMOUNTS PAID OR PAYABLE BY PARTNER TO SUPPLIER DURING THE TWELVE (12) MONTH PERIOD IMMEDIATELY PRECEDING THE EVENT GIVING RISE TO LIABILITY.
13.3 Applicability. THE LIMITATIONS IN THIS ARTICLE 13 SHALL APPLY REGARDLESS OF THE FORM OF ACTION, WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, OR OTHERWISE, AND SHALL SURVIVE AND APPLY EVEN IF ANY LIMITED REMEDY FAILS OF ITS ESSENTIAL PURPOSE.
13.4 Allocation of Risk. THE PARTIES ACKNOWLEDGE THAT THE LIMITATIONS OF LIABILITY IN THIS ARTICLE 13 REFLECT AN INFORMED, VOLUNTARY ALLOCATION OF RISK AND ARE AN ESSENTIAL BASIS OF THE BARGAIN BETWEEN THE PARTIES.
ARTICLE 14: TERM AND TERMINATION
14.1 Initial Term. This Agreement shall commence on the Effective Date and continue for an initial term of [NUMBER] years (the "Initial Term"), unless earlier terminated in accordance with this Article.
14.2 Renewal. Upon expiration of the Initial Term, this Agreement shall automatically renew for successive [ONE (1)] year periods (each a "Renewal Term"), unless either Party provides written notice of non-renewal at least [NINETY (90)] days prior to the expiration of the then-current term.
14.3 Termination for Convenience. Either Party may terminate this Agreement for convenience upon [ONE HUNDRED EIGHTY (180)] days' prior written notice to the other Party.
14.4 Termination for Cause. Either Party may terminate this Agreement immediately upon written notice if the other Party:
(a) Materially breaches this Agreement and fails to cure such breach within [THIRTY (30)] days after receiving written notice thereof;
(b) Becomes insolvent, files for bankruptcy, or is subject to bankruptcy proceedings;
(c) Ceases to conduct business in the ordinary course;
(d) Assigns this Agreement in violation of Section 19.3.
14.5 Termination for Failure to Meet Minimums. If Partner fails to meet the Minimum Purchase Commitment for [TWO (2)] consecutive Contract Years, Supplier may terminate this Agreement upon [SIXTY (60)] days' written notice.
14.6 Termination for Regulatory Reasons. Either Party may terminate this Agreement immediately if performance becomes unlawful due to changes in applicable laws or regulations.
ARTICLE 15: EFFECTS OF TERMINATION
15.1 Outstanding Orders. Upon termination or expiration:
(a) Supplier shall fulfill all accepted Purchase Orders submitted prior to the termination notice, subject to Partner's payment obligations;
(b) Partner may, at its option, cancel any unfulfilled Orders without penalty if Supplier is the terminating Party for convenience.
15.2 Inventory. Partner may continue to sell existing inventory of Products in stock as of the termination date for a period of [NINETY (90)] days following termination, subject to the terms of this Agreement.
15.3 Payment of Amounts Due. All amounts owed by either Party to the other shall become immediately due and payable upon termination.
15.4 Return of Materials. Within [THIRTY (30)] days of termination, each Party shall return to the other all Confidential Information, proprietary materials, and property belonging to the other Party.
15.5 Cessation of Rights. Upon termination, all licenses granted hereunder shall immediately terminate, except as provided in Section 15.2 for the sale of existing inventory.
15.6 Survival. The following provisions shall survive termination or expiration of this Agreement: Article 1 (Definitions), Article 10 (Confidentiality), Article 11 (IP Ownership), Article 12 (Indemnification), Article 13 (Limitation of Liability), Article 15 (Effects of Termination), Article 17 (Dispute Resolution), and Article 18 (General Provisions).
ARTICLE 16: DATA PROTECTION AND SECURITY BREACH NOTIFICATION
16.1 Data Processing. To the extent either Party processes Personal Data in connection with this Agreement, such processing shall be governed by the Data Processing Addendum attached as Schedule E.
16.2 Security Measures. Each Party shall implement and maintain reasonable security measures to protect Personal Data against unauthorized access, use, or disclosure.
16.3 Security Breach Notification. In the event of a Security Breach involving Personal Data:
(a) The Party experiencing the breach shall notify the other Party within [FORTY-EIGHT (48)] hours of discovery;
(b) Notification to affected individuals and regulatory authorities shall be conducted in accordance with D.C. Code § 28-3852;
(c) The Party responsible for the breach shall bear the costs of notification and any required remediation;
(d) The Parties shall cooperate in investigating and responding to the breach.
16.4 Compliance. Each Party shall comply with all applicable data protection laws, including the D.C. Consumer Security Breach Notification Act (D.C. Code § 28-3851 et seq.) and any other applicable privacy laws.
ARTICLE 17: DISPUTE RESOLUTION
17.1 Informal Resolution. The Parties shall attempt in good faith to resolve any dispute arising out of or relating to this Agreement through informal negotiations. Either Party may initiate informal dispute resolution by providing written notice describing the dispute to the other Party. The Parties shall meet within [FIFTEEN (15)] days of such notice to attempt resolution.
17.2 Escalation. If the dispute is not resolved within [THIRTY (30)] days of the initial notice, either Party may escalate the dispute to the Parties' respective senior executives, who shall meet within [FIFTEEN (15)] days to attempt resolution.
17.3 [OPTION A - LITIGATION] Jurisdiction and Venue. If the dispute is not resolved through informal negotiations or executive escalation, either Party may commence litigation in:
(a) The Superior Court of the District of Columbia; or
(b) The United States District Court for the District of Columbia (if federal jurisdiction exists).
Each Party hereby consents to the exclusive jurisdiction and venue of such courts and waives any objection based on inconvenient forum.
17.4 [OPTION B - ARBITRATION] Binding Arbitration. If the dispute is not resolved through informal negotiations or executive escalation, the dispute shall be resolved by binding arbitration administered by [JAMS / AAA] in accordance with its Commercial Arbitration Rules. The arbitration shall be conducted in Washington, D.C., before a single arbitrator mutually selected by the Parties. The arbitrator's decision shall be final and binding, and judgment may be entered in any court of competent jurisdiction in the District of Columbia.
17.5 WAIVER OF JURY TRIAL. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.
17.6 Attorneys' Fees. In any action or proceeding to enforce this Agreement, the prevailing Party shall be entitled to recover its reasonable attorneys' fees and costs from the non-prevailing Party.
17.7 Injunctive Relief. Notwithstanding the foregoing, either Party may seek injunctive or other equitable relief in any court of competent jurisdiction to protect its intellectual property rights or Confidential Information without first engaging in informal dispute resolution or arbitration.
ARTICLE 18: GENERAL PROVISIONS
18.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the District of Columbia, without regard to its conflict of laws principles. The United Nations Convention on Contracts for the International Sale of Goods shall not apply.
18.2 Entire Agreement. This Agreement, including all Schedules and Exhibits attached hereto, constitutes the entire agreement between the Parties concerning the subject matter hereof and supersedes all prior and contemporaneous agreements, understandings, negotiations, and discussions, whether oral or written.
18.3 Assignment. Neither Party may assign this Agreement or any rights or obligations hereunder without the prior written consent of the other Party, except that either Party may assign this Agreement to an Affiliate or in connection with a merger, acquisition, or sale of all or substantially all of its assets. Any attempted assignment in violation of this Section shall be void.
18.4 Amendments. This Agreement may only be amended or modified by a written instrument signed by authorized representatives of both Parties.
18.5 Waiver. No waiver of any provision of this Agreement shall be effective unless in writing and signed by the waiving Party. No failure or delay in exercising any right shall operate as a waiver thereof.
18.6 Severability. If any provision of this Agreement is held to be invalid, illegal, or unenforceable, the remaining provisions shall continue in full force and effect. The invalid provision shall be modified to the minimum extent necessary to make it valid and enforceable while preserving the Parties' original intent.
18.7 Notices. All notices under this Agreement shall be in writing and shall be deemed given when:
(a) Delivered personally;
(b) Sent by certified mail, return receipt requested (effective upon receipt);
(c) Sent by overnight courier (effective upon delivery); or
(d) Sent by email with confirmation of receipt (effective upon confirmation).
Notices shall be sent to the addresses set forth above or to such other addresses as a Party may designate by written notice.
18.8 Force Majeure. Neither Party shall be liable for any failure or delay in performance due to causes beyond its reasonable control, including acts of God, natural disasters, war, terrorism, riots, embargoes, acts of governmental authorities, or pandemic, provided that the affected Party gives prompt notice and uses reasonable efforts to mitigate the impact.
18.9 Relationship of Parties. The Parties are independent contractors. Nothing in this Agreement shall be construed to create a partnership, joint venture, agency, or employment relationship.
18.10 Third-Party Beneficiaries. This Agreement is for the sole benefit of the Parties and their permitted successors and assigns. Nothing in this Agreement shall confer any rights upon any third party.
18.11 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument.
18.12 Electronic Signatures. Electronic signatures shall be valid and binding in accordance with D.C. Code § 28-4901 et seq. (Uniform Electronic Transactions Act) and the federal Electronic Signatures in Global and National Commerce Act (E-SIGN).
18.13 Construction. This Agreement shall be construed without regard to any presumption against the Party that drafted it. Headings are for convenience only and shall not affect interpretation.
18.14 Publicity. Neither Party shall issue any press release or public announcement regarding this Agreement without the prior written consent of the other Party, except as required by law.
ARTICLE 19: EXECUTION
IN WITNESS WHEREOF, the Parties have executed this Agreement as of the Effective Date.
SUPPLIER:
[SUPPLIER LEGAL NAME]
| Signature: | _________________________________ |
| Printed Name: | _________________________________ |
| Title: | _________________________________ |
| Date: | _________________________________ |
PARTNER:
[PARTNER LEGAL NAME]
| Signature: | _________________________________ |
| Printed Name: | _________________________________ |
| Title: | _________________________________ |
| Date: | _________________________________ |
SCHEDULE A: PRODUCTS AND SPECIFICATIONS
1. Product Description
| Product ID | Product Name | Description | Unit of Measure |
|---|---|---|---|
| [ID] | [Name] | [Description] | [Unit] |
| [ID] | [Name] | [Description] | [Unit] |
| [ID] | [Name] | [Description] | [Unit] |
2. Technical Specifications
[INSERT DETAILED TECHNICAL SPECIFICATIONS FOR EACH PRODUCT]
3. Manufacturing Specifications
[INSERT MANUFACTURING REQUIREMENTS, QUALITY STANDARDS, AND COMPLIANCE CERTIFICATIONS]
4. Packaging Requirements
[INSERT PACKAGING SPECIFICATIONS AND REQUIREMENTS]
5. Documentation
[LIST ALL DOCUMENTATION TO BE PROVIDED WITH PRODUCTS]
SCHEDULE B: PRICING AND MINIMUM PURCHASE COMMITMENTS
1. Product Pricing
| Product ID | Product Name | Unit Price | Volume Discount Tiers |
|---|---|---|---|
| [ID] | [Name] | $[PRICE] | [TIERS] |
| [ID] | [Name] | $[PRICE] | [TIERS] |
| [ID] | [Name] | $[PRICE] | [TIERS] |
2. Volume Discount Schedule
| Annual Volume | Discount |
|---|---|
| [QUANTITY] - [QUANTITY] | [X]% |
| [QUANTITY] - [QUANTITY] | [X]% |
| [QUANTITY]+ | [X]% |
3. Minimum Purchase Commitments
| Contract Year | Minimum Quantity | Minimum Revenue |
|---|---|---|
| Year 1 | [QUANTITY] | $[AMOUNT] |
| Year 2 | [QUANTITY] | $[AMOUNT] |
| Year 3 | [QUANTITY] | $[AMOUNT] |
4. Payment Terms
- Payment Method: [Wire Transfer / ACH / Check]
- Payment Terms: Net [30/45/60] Days
- Currency: United States Dollars (USD)
- Late Payment Interest: [X]% per month
SCHEDULE C: BRANDING GUIDELINES
1. Partner Brand Elements
[INSERT APPROVED PARTNER LOGOS, TRADEMARKS, AND TRADE DRESS]
2. Product Labeling Requirements
- [SPECIFY LABEL PLACEMENT, SIZE, AND CONTENT REQUIREMENTS]
- [SPECIFY ANY REGULATORY LABELING REQUIREMENTS]
3. Packaging Requirements
- [SPECIFY PACKAGING DESIGN REQUIREMENTS]
- [SPECIFY COLOR PALETTE, TYPOGRAPHY, AND IMAGERY GUIDELINES]
4. Co-Branding (if applicable)
- [SPECIFY CO-BRANDING REQUIREMENTS AND RESTRICTIONS]
5. Prohibited Uses
- [LIST PROHIBITED USES OF BRANDING ELEMENTS]
6. Approval Process
- All branding materials must be submitted to Supplier for approval at least [X] business days prior to use
- Supplier will respond to approval requests within [X] business days
- Materials are deemed approved if Supplier does not respond within [X] business days
SCHEDULE D: SERVICE LEVEL AGREEMENT (SLA)
1. Support Hours
| Support Level | Hours of Availability |
|---|---|
| Standard Support | Monday-Friday, 9:00 AM - 5:00 PM EST |
| Extended Support | Monday-Friday, 7:00 AM - 9:00 PM EST |
| Premium Support | 24/7/365 |
2. Response Times
| Severity Level | Description | Initial Response | Resolution Target |
|---|---|---|---|
| Critical | Production down, no workaround | 1 hour | 4 hours |
| High | Major feature impaired | 4 hours | 1 business day |
| Medium | Minor feature impaired | 8 hours | 3 business days |
| Low | General inquiry | 1 business day | 5 business days |
3. Support Channels
- Email: [[email protected]]
- Phone: [PHONE NUMBER]
- Portal: [URL]
4. Escalation Procedures
[INSERT ESCALATION MATRIX AND PROCEDURES]
5. Performance Metrics and Reporting
[INSERT KEY PERFORMANCE INDICATORS AND REPORTING REQUIREMENTS]
6. Service Credits (if applicable)
| Uptime Percentage | Service Credit |
|---|---|
| 99.9% - 99.5% | 5% of monthly fees |
| 99.5% - 99.0% | 10% of monthly fees |
| Below 99.0% | 20% of monthly fees |
SCHEDULE E: DATA PROCESSING ADDENDUM (DPA)
1. Definitions
For purposes of this DPA:
- "Data Controller" means the Party that determines the purposes and means of processing Personal Data.
- "Data Processor" means the Party that processes Personal Data on behalf of the Data Controller.
- "Processing" means any operation performed on Personal Data, including collection, use, storage, disclosure, or deletion.
2. Roles and Responsibilities
[SPECIFY WHICH PARTY IS DATA CONTROLLER AND WHICH IS DATA PROCESSOR FOR EACH CATEGORY OF DATA]
3. Processing Instructions
The Data Processor shall only process Personal Data:
- In accordance with the Data Controller's documented instructions;
- For the purposes specified in this Agreement;
- In compliance with applicable data protection laws.
4. Security Measures
The Data Processor shall implement and maintain:
- Encryption of Personal Data in transit and at rest;
- Access controls and authentication mechanisms;
- Regular security assessments and audits;
- Incident response and breach notification procedures.
5. Sub-processors
- The Data Processor may not engage sub-processors without prior written consent;
- The Data Processor shall ensure sub-processors are bound by equivalent data protection obligations;
- Current list of approved sub-processors: [LIST OR REFERENCE TO ONLINE LIST]
6. Data Subject Rights
The Data Processor shall assist the Data Controller in responding to data subject requests, including requests for access, correction, deletion, or portability.
7. Data Breach Notification
In accordance with D.C. Code § 28-3852, the Data Processor shall notify the Data Controller within [TWENTY-FOUR (24) / FORTY-EIGHT (48)] hours of becoming aware of a Security Breach.
8. Data Retention and Deletion
Upon termination of this Agreement, the Data Processor shall, at the Data Controller's election, return or securely delete all Personal Data within [THIRTY (30)] days.
9. Audit Rights
The Data Controller may audit the Data Processor's compliance with this DPA upon reasonable notice.
10. International Transfers
[SPECIFY RESTRICTIONS ON INTERNATIONAL DATA TRANSFERS AND REQUIRED SAFEGUARDS]
END OF AGREEMENT
This template is provided for informational purposes only and does not constitute legal advice. This document must be reviewed and customized by a qualified attorney licensed in the District of Columbia before use. Do not use this template without professional legal review.
Last Updated: 2026-01-17
About This Template
A contract is a written record of what two or more parties agreed to and what happens if someone does not follow through. Clear language, defined terms, and clean signature blocks keep disputes small and enforceable. The most common mistakes in contracts come from vague promises, missing details about timing or payment, and skipping standard protective clauses like governing law and dispute resolution.
Important Notice
This template is provided for informational purposes. It is not legal advice. We recommend having an attorney review any legal document before signing, especially for high-value or complex matters.
Last updated: February 2026