WHEREAS, Seller is in the business of supplying, selling, and manufacturing hemp derived cannabinoid (“CBD”) products;
WHEREAS, Buyer is in the business of distributing hemp derived CBD products;
NOW, THEREFORE, in consideration of the mutual covenants, terms and conditions set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
1. Purchase and Sale of Goods.
1.1 Purchase and Sale. Subject to the terms and conditions of this Agreement, during the Term, Buyer shall purchase from Seller, and Seller shall manufacture and sell to Buyer, the Goods as listed on the Invoice. The Invoice contains: (a) a description of the Goods to be manufactured and sold hereunder; (b) the purchase price for each of the Goods; and (c) the quantity of the Goods. The Parties shall, from time to time, amend the Invoice to reflect any agreed revisions to any of the terms; provided that no such revisions will modify this Agreement or be binding on the Parties unless such revisions have been fully approved in a signed writing by authorized Representatives of both Parties.
1.2 Terms of Agreement Prevail Over Buyer’s Invoice. The Parties intend for the express terms and conditions contained in this Agreement and the Invoice to exclusively govern and control each of the Parties’ respective rights and obligations regarding the subject matter of this Agreement, and this Agreement is expressly limited to such terms and conditions. Without limitation of the foregoing, any additional, contrary or different terms contained in any Invoice or other request or communication by Buyer pertaining to the sale of Goods by Seller, and any attempt to modify, supersede, supplement or otherwise alter this Agreement, will not modify this Agreement or be binding on the Parties unless such terms have been fully approved in a signed writing by authorized Representatives of both Parties.
1.3 Right to Manufacture and Sell Competitive Goods. This Agreement does not limit either Party’s right to manufacture or sell, or preclude either Party from manufacturing or selling, to any Person, or entering into any agreement with any other Person related to the manufacture or sale of, the Goods and other goods or products that are similar to or competitive with the Goods.
2. Private Label Manufacturing.
2.1 Private Labeling. Subject to the terms and conditions of this Agreement, during the Term, Buyer shall have the option to purchase the Goods and resell them using its own private label as specified in the Invoice. Pursuant to this Section 2.1, Buyer shall either:
(a) provide Seller with all instructions, artwork, and information necessary for Seller to label the Goods, including, without limitation, any marks, serial numbers, electrical data label information, disclaimers, and any additional information as may be specified by Buyer; or
(b) purchase and receive the Goods without any labels or other marketing material to be labeled by Buyer at its own facility.
2.2 Seller not Responsible. Buyer agrees to defend, indemnify, and hold harmless Seller from and against any Action alleging false or misleading claims, statements or omissions, including without limitation, health and wellness claims, dosage claims, and purity claims on any private label of Buyer relating to any Goods supplied pursuant to Section 2.1. Seller shall be indemnified by Buyer from all such Actions pursuant to Section 9.1.
2.3 Buyer Provided Materials.
(a) Buyer agrees and acknowledges that it shall not provide any material or packaging to Seller that includes any contaminant (“Contaminant”) prohibited by the Colorado Department of Agriculture, U.S. Environmental Protection Agency (EPA), or any other pertinent state or federal government agency, such as:
(i) Microbial contaminants, including without limitation, bacteria, yeasts, molds, fungi, viruses, prions, and protozoa;
(ii) Pesticide residue, including without limitation, Acephate, Acetamiprid, Avermectin, Azoxystrobin, Bifenazate, Boscalid, Carbaryl, Carbofuran, Chlorantraniliprole, Chlorpyrifos, Clofentezine, Diazinon, Dichlorvos, Dimethoate, E-Fenpryoximate, Etofenprox, Etoxazole, Fenoxycarb, Fipronil, Flonicamid, Fludioxoni, Hexythiazox, Imazalil, Imidacloprid, Kresoxim-methyl, Malathion, Metalaxyl, Mathiocarb, Methomyi, MGK 264 1, MGK 264 2, Myclobutanil, Naled, Oxamyl, Paclobutrazol, Permethrin, Phosmet, Prophos, Propoxur, Pyridaben, Spinosad A, Spinosad D, Spiromesifen, Spirotetramat, Spiroxamine 1, Spiroxamine 2, Tebuconazole, Thiacloprid, Thiamethoxam, and Trifloxystrobin.
(iii) Residual solvents, including without limitation, Propane, Butanes, Pentane, Ethanol, Acetone, Isopropyl Alcohol, Hexane, Benzene, Heptanes, Toluene, and Xylenes.
(iv) Heavy metals, including without limitation, mercury, cadmium, lead, chromium, and arsenic.
(v) Pests, including without limitation, aphids, scale insects, broad mites, russet mites, bud rot, mold, caterpillars, inchworms, crickets, fungus, grasshoppers, leaf miners, leaf septoria, yellow leaf spot, mealybugs, root rot, slugs, snails, spider mites, thrips, tobacco mosaic virus, whiteflies, or white powdery mold.
(b) Buyer agrees to defend, indemnify, and hold harmless Seller from and against any and all Actions arising from the cross contamination of Seller’s products, goods, machines, materials, packaging, or other equipment, that has been polluted by a Buyer provided material containing any Contaminant.
(c) Buyer agrees and acknowledges that the presence of any Contaminant in any Buyer provided material or packaging creates a presumption that the presence of that same Contaminant in materials, packaging, or equipment owned, operated, or handled by Seller originated from the Contaminant provided by Buyer, rebuttable only by a third party result that demonstrates the absence of such contaminant in Buyer’s materials.
(d) Buyer and Seller acknowledge that Seller has no duty to detect or screen for any Contaminant, and the failure of Seller to identify any Contaminant shall not limit Buyer’s liabilities or obligations hereunder except where the failure to make such identification is due to gross negligence on the part of Seller.
2.4 Trademark License. Buyer grants Seller a non-exclusive and non-transferable right to use Buyer’s marks solely on the Goods ordered by Buyer under the Invoice pursuant to Section 2.1(a).
3. Ordering Procedure.
3.1 Invoices. Buyer shall issue to Seller an Invoice (“Invoice”) based on communications with Buyer. By issuing an Invoice to Buyer, Seller accepts Buyers offer to purchase Goods pursuant to the terms and conditions of this Agreement, Buyer and Seller communications, and the terms contained in such Invoice, and on no other terms. For the avoidance of doubt, any variations made to the terms and conditions of this Agreement by Buyer in any Invoice are void and have no effect. Buyer shall be obligated to purchase from Seller quantities of Goods specified in an accepted Invoice.
3.2 Acceptance, Rejection and Cancellation of Invoices. Seller may reject or cancel a previously accepted Invoice, which it may do without liability or penalty, and without constituting a waiver of any of Seller’s rights or remedies under this Agreement or any Invoice, by providing written notice to Buyer specifying the applicable date of rejection or cancellation:
(a) if any one or more of the events described under Section 6.3(a) has occurred;
(b) pursuant to Seller’s rights under Section 5.4(b); or
(c) pursuant to Seller’s rights under the last sentence of Section 5.7.
4. Shipment, Delivery, Acceptance and Inspection.
4.1 Shipment. Unless otherwise expressly agreed by the Parties in writing, Seller shall select the method of shipment of and the carrier for the Goods. Seller may, in its sole discretion, without liability or penalty, make partial shipments of Goods to Buyer. Each shipment will constitute a separate sale and Buyer shall pay for the Goods shipped, in accordance with the payment terms specified in Section 5.3, whether such shipment is in whole or partial fulfilment of an Invoice.
4.2 Packaging and Labeling. Seller shall properly pack, mark and ship Goods and provide Buyer with shipment documentation showing the Invoice number, Seller’s identification number for the Goods, the quantity of pieces in shipment, the number of cartons or containers in shipment, Seller’s name, the bill of lading number and the country of origin.
4.3 Delivery. Unless otherwise expressly agreed by the Parties in writing, Seller shall deliver the Goods to the Delivery Location, using Seller’s standard methods for packaging and shipping such Goods. All Prices are EXW Seller’s Facility and Buyer shall be required to arrange for and bear the risk of loss for shipment of Goods.
4.4 Late Delivery. Any time quoted for delivery is an estimate only; provided, however, that Seller shall use commercially reasonable efforts to deliver all Goods in a timely manner. No delay in the shipment or delivery of any Good relieves Buyer of its obligations under this Agreement, including accepting delivery of any remaining instalment or other orders of Goods.
4.5 Transfer of Title and Risk of Loss.
(a) Title to Goods shipped under any Invoice passes to Buyer upon receipt by Buyer at Seller’s facility located at 16194 W 45th Avenue (“Seller’s Facility”).
(b) Risk of loss to Goods shipped under any Invoice passes to Buyer upon receipt by Buyer at Seller’s Facility.
4.6 Inspection. Buyer shall inspect Goods received under this Agreement within 5 days of receipt of such Goods (“Inspection Period”) and either accept or, only if any such Goods are Nonconforming Goods, reject such Goods. Buyer will be deemed to have accepted Goods unless it provides Seller with written Notice of any Nonconforming Goods within 5 days following the Inspection Period, stating with specificity all defects and nonconformities, and furnishing such other written evidence or other documentation as may be reasonably required by Seller (including the Goods, or a representative sample thereof, which Buyer contends are Nonconforming Goods). All defects and nonconformities that are not so specified will be deemed waived by Buyer, such Goods shall be deemed to have been accepted by Buyer, and no attempted revocation of acceptance will be effective. If Buyer timely notifies Seller of any Nonconforming Goods, Seller shall determine, in its reasonable discretion, whether the Goods are Nonconforming Goods. If Seller determines that such Goods are Nonconforming Goods, Seller shall, in its sole discretion, either:
(a) replace such Nonconforming Goods with conforming Goods; or
(b) refund to Buyer such amount paid by Buyer to Seller for such Nonconforming Goods returned by Buyer to Seller.
4.7 Buyer shall ship, at Buyer’s expense and risk of loss, all Nonconforming Goods to Seller’s Facility or to such other location as Seller may instruct Buyer in writing. If Seller exercises its option to replace Nonconforming Goods, Seller shall ship to the Delivery Location, at Seller’s expense and risk of loss, the replacement Goods.
4.8 THE REMEDIES SET FORTH IN SECTION 4.6 ARE BUYER’S EXCLUSIVE REMEDY FOR THE DELIVERY OF NONCONFORMING GOODS, SUBJECT TO BUYER’S RIGHTS UNDER SECTION 8.5 WITH RESPECT TO ANY SUCH GOODS FOR WHICH BUYER HAS ACCEPTED DELIVERY UNDER SECTION 4.6.
4.9 Limited Right of Return. Except as provided under Section 4.6, Section 8.5 and Section 8.9, Buyer has no right to return Goods shipped to Buyer pursuant to this Agreement.
5. Price and Payment.
5.1 Price. Buyer shall purchase the Goods from Seller at the prices set forth in the Invoice (“Prices”).
5.2 Shipping Charges, Insurance and Taxes. Buyer shall pay for, and shall hold Seller harmless from, all shipping charges and insurance costs. In addition, all Prices are exclusive of, and Buyer is solely responsible for, and shall pay, and shall hold Seller harmless from, all Taxes, with respect to, or measured by, the manufacture, sale, shipment, use or Price of the Goods (including interest and penalties thereon); provided, however, that Buyer shall not be responsible for any Taxes imposed on, or with respect to, Seller’s income, revenues, gross receipts, Personnel or real or personal property or other assets;
5.3 Payment Terms. Buyer shall pay to Seller all Invoiced amounts. Seller shall manufacture Goods once Seller receives payment of a minimum deposit pursuant to the Invoice. Seller shall ship the Goods upon receipt of full payment of the Invoice.
5.4 Buyer’s Unsatisfactory Credit Status. Each acceptance of an Invoice by Buyer will constitute Buyer’s representation and warranty that Buyer is solvent and is able to pay for the Goods identified in such Invoice in accordance with the terms of this Agreement. Buyer shall furnish Seller with statements accurately and fairly evidencing Buyer’s financial condition as Seller may, from time to time, reasonably request. Throughout the Term, Buyer shall be in compliance with all obligations to Buyer’s creditors as and when such obligations are due and owing in the ordinary course of Buyer’s business. Buyer shall notify Seller, in writing, immediately of any and all events that have had or may have a material adverse effect on Buyer’s business or financial condition, including any change in management, sale, lease or exchange of a material portion of Buyer’s assets, a change in Control of Buyer, or the breach of any loan covenants or other material obligations of Buyer to its creditors. If, at any time, Seller determines in its sole discretion that Buyer’s financial condition or creditworthiness is inadequate or unsatisfactory, then in addition to Seller’s other right under this Agreement, at law or in equity, Seller may without liability or penalty, take one or more of the following actions:
(a) on written Notice, modify the payment terms specified in Section 5.3 for outstanding and future purchases, including requiring Buyer to pay for Goods on a cash in advance or cash on delivery basis;
(b) cancel any previously accepted Invoices;
(c) delay or withhold any further shipment of Goods to Buyer;
(d) stop delivery of any Goods in transit and cause such Goods in transit to be returned to Seller;
(e) on written Notice, terminate this Agreement;
(f) accelerate the due date of all amounts owing by Buyer to Seller.
5.5 No action taken by Seller under this Section 5.4 (nor any failure of Seller to act under this Section 5.4) constitutes a waiver by Seller of any of its rights and remedies under this Agreement, including its right to enforce Buyer’s obligation to make payments as required hereunder.
5.6 Invoice Disputes. Buyer shall notify Seller in writing of any dispute with any Invoice (along with substantiating documentation and a reasonably detailed description of the dispute) within 5 Business Days from Buyer’s receipt of such Invoice. Buyer will be deemed to have accepted all Invoices for which Seller does not receive timely notification of dispute, and shall pay all undisputed amounts due under such Invoices within the period set forth in Section 5.3. The Parties shall seek to resolve any such disputes expeditiously and in good faith in accordance with the dispute resolution provisions set forth in Section 14.16. Notwithstanding anything to the contrary, Buyer shall continue performing its obligations under this Agreement during any such dispute, including Buyer’s obligation to pay all due and undisputed Invoice amounts in accordance with the terms of this Agreement.
5.7 Late Payments. Except for Invoiced payments that Buyer has successfully disputed, Buyer shall pay interest on all late payments (whether during the Term or after the expiration or earlier termination of the Term), calculated daily and compounded monthly, at the lesser of the rate of 1.5% per month or the highest rate permissible under applicable Law. Buyer shall also reimburse Seller for all costs incurred by Seller in collecting any late payments, including attorneys’ fees and court costs. In addition to all other remedies available under this Agreement or at Law (which Seller does not waive by the exercise of any rights under this Agreement), if Buyer fails to pay any undisputed amounts when due under this Agreement, Seller may (a) suspend the delivery of any Goods, (b) cancel accepted Invoices pursuant to the terms of Section 3.2 or (c) terminate this Agreement pursuant to the terms of Section 6.3(a).
5.8 Purchase-money Security Interest. To secure Buyer’s prompt and complete payment and performance of any and all present and future indebtedness of Buyer to Seller, Buyer hereby grants Seller a first-priority security interest, with priority over all other liens, claims and encumbrances, in all inventory of goods purchased under this Agreement (including Goods and Nonconforming Goods)/by Buyer from Seller, wherever located, and whether now existing or hereafter arising or acquired from time to time, and in all accessions thereto and replacements or modifications thereof, as well as all proceeds (including insurance proceeds) of the foregoing. Buyer acknowledges that the security interest granted under this Section 5.8 is a purchase-money security interest under Colorado law. Seller may file a financing statement for such security interest and Buyer shall execute such statements or other documentation necessary to perfect Seller’s security interest in such Goods. Buyer also authorizes Seller to execute, on Buyer’s behalf, such statements or other documentation necessary to perfect Seller’s security interest in such Goods. Seller shall be entitled to all applicable rights and remedies of a secured party under applicable Law.
6. Term; Termination.
6.1 Initial Term. The term of this Agreement commences on the Effective Date and continues for a period of 12 months, unless it is earlier terminated pursuant to the terms of this Agreement or applicable Law (the “Initial Term”).
6.2 Renewal Term. Upon expiration of the Initial Term, the term of this Agreement will automatically renew for additional successive 12 month terms unless either Party provides written Notice of non-renewal at least 30 days prior to the end of the then-current term (each, a “Renewal Term” and together with the Initial Term, the “Term”), unless any Renewal Term is earlier terminated pursuant to the terms of this Agreement or applicable Law. If the Initial Term or any Renewal Term is renewed for any Renewal Term(s) pursuant to this Section 6.2, the terms and conditions of this Agreement during each such Renewal Term will be the same as the terms in effect immediately prior to such renewal. In the event either Party provides timely Notice of its intent not to renew this Agreement, then, unless earlier terminated in accordance with its terms, this Agreement terminates on the expiration of the Initial Term or then-current Renewal Term, as applicable.
6.3 Seller’s Right to Terminate. Seller may terminate this Agreement, by providing written Notice to Buyer:
(a) if Buyer fails to pay any amount when due under this Agreement (“Payment Failure”);
(b) if Buyer is in material breach of any representation, warranty or covenant of Buyer under this Agreement (other than committing a Payment Failure), and either the breach cannot be cured or, if the breach can be cured, it is not cured by Buyer within a commercially reasonable period of time (in no case exceeding 14 days) after Buyer’s receipt of written Notice of such breach;
(c) pursuant to and in accordance with Section 5.4(e);
(d) if Buyer (i) becomes insolvent or is generally unable to pay, or fails to pay, its debts as they become due, (ii) files or has filed against it, a petition for voluntary or involuntary bankruptcy or otherwise becomes subject, voluntarily or involuntarily, to any proceeding under any domestic or foreign bankruptcy or insolvency Law, (iii) makes or seeks to make a general assignment for the benefit of its creditors, or (iv) applies for or has appointed a receiver, trustee, custodian or similar agent appointed by order of any court of competent jurisdiction to take charge of or sell any material portion of its property or business;
(e) if Seller terminates any other agreement between (i) Seller and (ii) Buyer or Buyer’s Affiliates, due to Buyer’s or Buyer’s Affiliates’ breach or non-performance thereof; or
(f) if, without obtaining Seller’s prior written consent, (i) Buyer sells, leases or exchanges a material portion of Buyer’s assets, (ii) Buyer merges or consolidates with or into another Person, or (iii) a change in Control of Buyer occurs. Any termination under this Section 6.3 will be effective on Buyer’s receipt of Seller’s written Notice of termination or such later date (if any) set forth in such Notice.
6.4 Buyer’s Right to Terminate. Buyer may terminate this Agreement, by providing written Notice to Seller:
(a) if Seller is in material breach of any representation, warranty or covenant of Seller under this Agreement and either the breach cannot be cured or, if the breach can be cured, it is not cured by Seller within 30 days after Seller’s receipt of written Notice of such breach;
(b) if Seller (i) becomes insolvent or is generally unable to pay, or fails to pay, its debts as they become due, (ii) files or has filed against it, a petition for voluntary or involuntary bankruptcy or otherwise becomes subject, voluntarily or involuntarily, to any proceeding under any domestic or foreign bankruptcy or insolvency Law, (iii) makes or seeks to make a general assignment for the benefit of its creditors, or (iv) applies for or has appointed a receiver, trustee, custodian or similar agent appointed by order of any court of competent jurisdiction to take charge of or sell any material portion of its property or business; or
(c) in the event of a Force Majeure Event affecting Seller’s performance under this Agreement for more than 90 consecutive days.
As a condition precedent to Buyer’s right to terminate this Agreement pursuant to this Section 6.4, within 3 days following the date of Buyer’s termination Notice, Buyer shall pay to Seller all amounts due to Seller for Goods delivered by Seller to Buyer prior to Seller’s receipt of the termination Notice and reimburse Seller for all of Seller’s out-of-pocket costs and expenses (including raw materials, machinery and equipment purchases) incurred by Seller prior to receipt of Buyer’s termination Notice that arise from or relate to this Agreement or any Invoice issued by Buyer to Seller prior to Seller’s receipt of such notice (each, a “Reimbursement Payment”). Any termination under this Section 6.4 will be effective on the latest to occur of Seller’s receipt of Buyer’s written Notice of termination, Seller’s receipt of the Reimbursement Payment or such other later date (if any) set forth in such termination Notice (if and to the extent that such later date is approved by Seller in writing).
6.5 Effect of Expiration or Termination. Upon the expiration or earlier termination of this Agreement, all indebtedness of Buyer to Seller under this Agreement, any other agreement or otherwise, of any kind, shall become immediately due and payable to Seller, without further notice to Buyer. Expiration or termination of the Term will not affect any rights or obligations of the Parties that:
(a) come into effect upon or after termination or expiration of this Agreement; or
(b) otherwise survive the expiration or earlier termination of this Agreement pursuant to Section 14.4 and were incurred by the Parties prior to such expiration or earlier termination.
6.6 Any Notice of termination under this Agreement automatically operates as a cancellation of any deliveries of Goods to Buyer that are scheduled to be made subsequent to the effective date of termination, whether or not any orders for such Goods had been accepted by Seller. With respect to any Goods that are still in transit upon termination of this Agreement, Seller may require, in its sole discretion, that all sales and deliveries of such Goods be made on either a cash-only or certified-check basis.
6.7 Upon the expiration or earlier termination of this Agreement, Buyer shall:
(a) return to Seller all documents and tangible materials (and any copies) containing, reflecting, incorporating or based on Seller’s Confidential Information;
(b) permanently erase all of Seller’s Confidential Information from its computer systems; and
(c) certify in writing to Seller that it has complied with the requirements of this clause.
6.8 Subject to Section 6.5, the Party terminating this Agreement, or in the case of the expiration of this Agreement, each Party, shall not be liable to the other Party for any damage of any kind (whether direct or indirect) incurred by the other Party by reason of the expiration or earlier termination of this Agreement. Termination of this Agreement will not constitute a waiver of any of either Party’s rights, remedies or defenses under this Agreement, at law, in equity or otherwise.
7. Certain Obligations of Buyer.
7.1 Certain Prohibited Acts. Notwithstanding anything to the contrary in this Agreement, neither Buyer nor any Buyer Personnel shall:
(a) make any representations, warranties, guarantees, indemnities, similar claims or other commitments actually, apparently or ostensibly on behalf of Seller, or to any customer or other Person with respect to the Goods, which are additional to or inconsistent with any then-existing representations, warranties, guarantees, indemnities, similar claims or other commitments in this Agreement or any written documentation provided by Seller to Buyer; or
(b) engage in any unfair, competitive, misleading or deceptive practices respecting Seller, Seller’s Trademarks or the Goods, including any product disparagement.
7.2 Credit Risk on Resale of the Goods to Customers. Buyer shall be responsible for all credit risks with respect to, and for collecting payment for, all products (including Goods) sold to its customers or other third parties, whether or not Buyer has made full payment to Seller for such products. The inability of Buyer to collect the purchase price for any product shall not affect Buyer’s obligation to pay Seller for any Goods.
7.3 Compliance with Laws. Buyer shall at all times comply with all Laws applicable to this Agreement, Buyer’s performance of its obligations hereunder and Buyer’s use or sale of the Goods, including but not limited to, the Agriculture Improvement Act of 2018, the Colorado Industrial Hemp Act and regulations promulgated thereunder by the Colorado Department of Agriculture, the Federal Food, Drug, and Cosmetic Act, and all other federal and state laws and regulations covering the marketing, sale, and distribution of hemp-derived CBD products. Without limiting the generality of the foregoing, Buyer shall (a) at its own expense, maintain all certifications, credentials, licenses and permits necessary to conduct its business relating to the purchase, use or resale of the Goods and (b) not engage in any activity or transaction involving the Goods, by way of resale, lease, shipment, use or otherwise, that violates any Law.
7.4 Third Party Testing. Although Seller has all of its products tested by a third party, it is Buyer’s responsibility to ensure that all of the Goods sold to Buyer’s customers accurately contain the quality and dosage claimed. Buyer shall be responsible for any and all Actions alleging inaccurate or misleading product claims pursuant to Section 9.1(e).
8. Representations and Warranties.
8.1 Buyer’s Representations and Warranties. Buyer represents and warrants to Seller that:
(a) it is duly organized, validly existing and in good standing under the laws of its state of formation;
(b) it is duly qualified to do business and is in good standing in every jurisdiction in which such qualification is required for purposes of this Agreement;
(c) it has the full right, power and authority to enter into this Agreement and to perform its obligations hereunder;
(d) the execution of this Agreement by its Representative whose signature is set forth at the end of this Agreement, and the delivery of this Agreement by Buyer, have been duly authorized by all necessary action on the part of Buyer;
(e) the execution, delivery and performance of this Agreement by Buyer will not violate, conflict with, require consent under or result in any breach or default under (i) any of Buyer’s organizational documents; (ii) any applicable Law or (iii) with or without notice or lapse of time or both, the provisions of any Buyer Contract;
(f) this Agreement has been executed and delivered by Buyer and (assuming due authorization, execution and delivery by Seller) constitutes the legal, valid and binding obligation of Buyer, enforceable against Buyer in accordance with its terms;
(g) it is in compliance with all applicable Laws and Buyer Contracts relating to this Agreement, the Goods and the operation of its business;
(h) it has obtained all licenses, authorizations, approvals, consents or permits required by applicable Laws to conduct its business generally and to perform its obligations under this Agreement;
(i) it is not insolvent and is paying all of its debts as they become due;
(j) all financial information that it has provided to Seller is true and accurate and fairly represents Buyer’s financial condition; and
(k) it shall resale and market the Goods in strict compliance with the Colorado Industrial Hemp Act and regulations promulgated thereunder and any federal guidance or laws related to state-regulated industrial hemp.
8.2 Seller’s Representations and Warranties. Seller represents and warrants to Buyer that:
(a) it is a limited liability company, duly organized, validly existing and in good standing under the laws of the State of Colorado;
(b) it is duly qualified to do business and is in good standing in every jurisdiction in which such qualification is required;
(c) it has the full right, power and authority to enter into this Agreement and to perform its obligations hereunder;
(d) the execution of this Agreement by its Representative whose signature is set forth at the end of this Agreement, and the delivery of this Agreement by Seller, have been duly authorized by all necessary action on the part of Seller;
(e) the execution, delivery and performance of this Agreement by Seller will not violate, conflict with, require consent under or result in any breach or default under (i) any of Seller’s organizational documents, (ii) any applicable Law or (iii) with or without notice or lapse of time or both, the provisions of any Seller Contract;
(f) this Agreement has been executed and delivered by Seller and (assuming due authorization, execution and delivery by Buyer) constitutes the legal, valid and binding obligation of Seller, enforceable against Seller in accordance with its terms;
(g) it is in compliance with all applicable Laws and Seller Contracts relating to this Agreement, the Goods and the operation of its business;
(h) it has obtained all licenses, authorizations, approvals, consents or permits required by applicable Laws to conduct its business generally and to perform its obligations under this Agreement; and
(i) all Goods shall be processed, shipped, labelled, and delivered in accordance with all applicable Colorado state or local laws, including, without limitation, the Colorado Industrial Hemp Act and regulations promulgated thereunder by the Colorado Department of Agriculture.
8.3 Limited Product Warranty. Subject to the provisions of Sections 8.4 through 9.7, Seller warrants to Buyer (the “Product Warranty”) that:
(a) for a period of three months from the date of shipment of a Good (the “Warranty Period”), each Good will materially conform to the specifications set forth in the Invoice and will be free from significant defects in material and workmanship; and
(b) Buyer will receive good and valid title to all Goods, free and clear of all encumbrances and liens of any kind.
8.4 Product Warranty Limitations. The Product Warranty does not apply to any Good that:
(a) has been subjected to abuse, misuse, neglect, negligence, accident, improper testing, improper installation, improper storage, improper handling, abnormal physical stress, abnormal environmental conditions or use contrary to any instructions issued by Seller;
(b) has been reconstructed, repaired or altered by Persons other than Seller or its authorized Representative; or
(c) has been used with any third-party products, hardware or product that has not been previously approved in writing by Seller.
8.5 Buyer’s Exclusive Remedy for Defective Goods. Notwithstanding any other provision of this Agreement (except for Section 8.9), this Section 8.5 contains Buyer’s exclusive remedy for Defective Goods. Buyer’s remedy under this Section 8.5 is conditioned upon Buyer’s compliance with its obligations under this Section 8.5 and Section 8.5(a) below. During the Warranty Period, with respect to any allegedly Defective Goods:
(a) Buyer shall notify Seller, in writing, of any alleged claim or defect within 2 Business Days from the date Buyer discovers, or upon reasonable inspection should have discovered, such alleged claim or defect (but in any event before the expiration of the applicable Warranty Period);
(b) Buyer shall ship, at its expense and risk of loss, such allegedly Defective Goods to Seller’s Facility for inspection and testing by Seller;
(c) if Seller’s inspection and testing reveals, to Seller’s reasonable satisfaction, that such Goods are Defective and any such defect has not been caused or contributed to by any of the factors described under Section 8.4 above, subject to Section 8.5(a)). Seller shall in its sole discretion and at its expense, repair or replace such Defective Goods; and
(d) Seller shall ship to Buyer, at Seller’s expense and risk of loss, the repaired or replaced Goods to the Delivery Location.
8.6 Buyer has no right to return for repair, replacement, credit or refund any Good except as set forth in this Section 8.5 (or if otherwise applicable, Section 4.6 or Section 8.9). In no event shall Buyer reconstruct, repair, alter or replace any Good, in whole or in part, either itself or by or through any third party.
8.7 SUBJECT TO SECTION 8.9, THIS SECTION 8.5 SETS FORTH BUYER’S SOLE REMEDY AND SELLER’S ENTIRE LIABILITY FOR ANY BREACH OF THE LIMITED PRODUCT WARRANTY SET FORTH IN SECTION 8.3.
8.8 DISCLAIMER OF OTHER REPRESENTATIONS AND WARRANTIES; NON-RELIANCE. EXCEPT FOR THE EXPRESS REPRESENTATIONS AND WARRANTIES SET FORTH IN SECTION 8.2 AND THE PRODUCT WARRANTY SET FORTH IN SECTION 8.3, (A) NEITHER SELLER NOR ANY PERSON ON SELLER’S BEHALF HAS MADE OR MAKES ANY EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY WHATSOEVER, EITHER ORAL OR WRITTEN, INCLUDING ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, OR NON-INFRINGEMENT OR PERFORMANCE OF GOODS OR PRODUCTS TO STANDARDS SPECIFIC TO THE COUNTRY OF IMPORT, WHETHER ARISING BY LAW, COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE OF TRADE OR OTHERWISE, ALL OF WHICH ARE EXPRESSLY DISCLAIMED, AND (B) BUYER ACKNOWLEDGES THAT IT HAS NOT RELIED UPON ANY REPRESENTATION OR WARRANTY MADE BY SELLER, OR ANY OTHER PERSON ON SELLER’S BEHALF, EXCEPT AS SPECIFICALLY PROVIDED IN SECTIONS 8.2 AND 8.3 OF THIS AGREEMENT.
8.9 Withdrawal of Goods. If Seller determines that any Goods sold to Buyer may be Defective, at Seller’s request, Buyer shall withdraw all similar Goods from sale and, at Seller’s option, either return such Goods to Seller (pursuant to the terms of Section 8.5(a)) or destroy the Goods and provide Seller with written certification of such destruction. Notwithstanding the limitations of Section 8.5, if Buyer returns all withdrawn Goods or destroys all withdrawn Goods and provides Seller with written certification of such destruction within 7 days following Seller’s withdrawal request, in either case consistent with Seller’s instructions, unless any such defect has not been caused or contributed to by any of the factors described under Section 8.4, Seller shall (a) repair or replace all such returned Goods or (b) replace such destroyed Goods, in either case pursuant to the terms of Section 8.5(c). THIS SECTION 8.9 SETS FORTH BUYER’S SOLE REMEDY AND SELLER’S ENTIRE LIABILITY FOR ANY GOODS THAT ARE WITHDRAWN PURSUANT TO THIS SECTION 8.9.
9.1 Buyer Indemnification. Subject to the terms and conditions of this Agreement, including those set forth in Section 9.3, Buyer (as “Indemnifying Party”) shall indemnify, defend and hold harmless Seller and its Representatives, directors, employees, agents, Affiliates, successors and permitted assigns (collectively, “Indemnified Party”) against any and all losses, damages, liabilities, deficiencies, claims, actions, judgments, settlements, interest, awards, penalties, fines, costs, or expenses of whatever kind, including reasonable attorneys’ fees, fees and the costs of enforcing any right to indemnification under this Agreement and the cost of pursuing any insurance providers, incurred by Indemnified Party in a final judgment (collectively, “Losses”), relating to any third-party Claim or any direct Claim against Indemnifying Party alleging:
(a) a material breach or non-fulfilment of any representation, warranty or covenant under/representation or warranty set forth in this Agreement, including Section 8, by Indemnifying Party or Indemnifying Party’s Personnel;
(b) any negligent or more culpable act or omission of Indemnifying Party or its Personnel (including any recklessness or wilful misconduct) in connection with the performance of this Agreement;
(c) any bodily injury, death of any Person or damage to real or tangible personal property caused by the wilful or negligent acts or omissions of Indemnifying Party or its Personnel;
(d) any failure by Indemnifying Party or its Personnel to comply with any applicable Laws, including but not limited to, the Colorado Industrial Hemp Act and regulations promulgated thereunder and any federal guidance or laws related to state-regulated industrial hemp; and
(e) any false or misleading claims and statements or omissions by Indemnifying Party or its Personnel concerning the Goods on any of its product labels, website, or other marketing materials, including but not limited to, representations concerning the dosage and concentration of hemp derived CBD, or other representations certifying the purity of the Goods.
9.2 Notwithstanding anything to the contrary in this Agreement, this Section 9.1 does not apply to any Claim (whether direct or indirect) for which a sole or exclusive remedy is provided for under another section of this Agreement, including Section 4.4, Section 4.6, and Section 8.5.
9.3 Exceptions and Limitations on Indemnification. Notwithstanding anything to the contrary in this Agreement, an Indemnifying Party is not obligated to indemnify or defend (if applicable) an Indemnified Party against any Claim if such Claim or corresponding Losses arise out of or result from the Indemnified Party’s or its Personnel’s:
(a) negligence or more culpable act or omission (including recklessness or wilful misconduct);
(b) bad faith failure to materially comply with any of its obligations set forth in this Agreement; or
(c) use of the Goods in any manner not otherwise authorized under this Agreement or that does not materially conform with any usage instructions/guidelines/specifications provided by Seller.
9.4 EXCLUSIVE REMEDY. THIS SECTION 9 SETS FORTH THE ENTIRE LIABILITY AND OBLIGATION OF EACH INDEMNIFYING PARTY AND THE SOLE AND EXCLUSIVE REMEDY FOR EACH INDEMNIFIED PARTY FOR ANY DAMAGES COVERED BY THIS SECTION 9.
10. Limitation of Liability.
10.1 NO LIABILITY FOR CONSEQUENTIAL OR INDIRECT DAMAGES. EXCEPT FOR OBLIGATIONS TO MAKE PAYMENT UNDER THIS AGREEMENT, LIABILITY FOR INDEMNIFICATION, LIABILITY FOR BREACH OF CONFIDENTIALITY, OR LIABILITY FOR INFRINGEMENT OR MISAPPROPRIATION OF INTELLECTUAL PROPERTY RIGHTS, IN NO EVENT SHALL SELLER OR ITS REPRESENTATIVES BE LIABLE FOR CONSEQUENTIAL, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, PUNITIVE OR ENHANCED DAMAGES, LOST PROFITS OR REVENUES OR DIMINUTION IN VALUE, ARISING OUT OF OR RELATING TO ANY BREACH OF THIS AGREEMENT, REGARDLESS OF (A) WHETHER SUCH DAMAGES WERE FORESEEABLE, (B) WHETHER OR NOT BUYER WAS ADVISED OF THE POSSIBILITY OF SUCH DAMAGES AND (C) THE LEGAL OR EQUITABLE THEORY (CONTRACT, TORT OR OTHERWISE) UPON WHICH THE CLAIM IS BASED, AND NOTWITHSTANDING THE FAILURE OF ANY AGREED OR OTHER REMEDY OF ITS ESSENTIAL PURPOSE.
10.2 MAXIMUM LIABILITY FOR DAMAGES. EXCEPT FOR OBLIGATIONS TO MAKE PAYMENT UNDER THIS AGREEMENT, LIABILITY FOR BREACH OF CONFIDENTIALITY, OR LIABILITY FOR INFRINGEMENT OR MISAPPROPRIATION OF INTELLECTUAL PROPERTY RIGHTS, IN NO EVENT SHALL SELLER’S AGGREGATE LIABILITY ARISING OUT OF OR RELATED TO THIS AGREEMENT, WHETHER ARISING OUT OF OR RELATED TO BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, EXCEED 40 PERCENTAGE OF THE TOTAL OF THE AMOUNTS PAID TO SELLER PURSUANT TO ANY INDIVIDUAL INVOICE.
10.3 ASSUMPTION OF RISK. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, BUYER ASSUMES ALL RISK AND LIABILITY FOR THE RESULTS OBTAINED BY THE USE OF ANY GOODS IN THE PRACTICE OF ANY PROCESS, WHETHER IN TERMS OF OPERATING COSTS, GENERAL EFFECTIVENESS, SUCCESS OR FAILURE, AND REGARDLESS OF ANY ORAL OR WRITTEN STATEMENTS MADE BY SELLER, BY WAY OF TECHNICAL ADVICE OR OTHERWISE, RELATED TO THE USE OF THE GOODS.
11. Intellectual Property Rights.
11.1 Ownership. Buyer acknowledges and agrees that:
(a) except to the extent provided in a separate written agreement between Buyer and Seller, Seller (or its licensors) will retain all Intellectual Property Rights used to create, embodied in, used in and otherwise relating to the Goods and any of their component parts;
(b) any and all Seller’s Intellectual Property Rights are the sole and exclusive property of Seller or its licensors;
(c) Buyer shall not acquire any ownership interest in any of Seller’s Intellectual Property Rights under this Agreement;
(d) any goodwill derived from the use by Buyer of Seller’s Intellectual Property Rights inures to the benefit of Seller or its licensors, as the case may be;
(e) if Buyer acquires any Intellectual Property Rights in or relating to any product (including any Good) purchased under this Agreement (including any rights in any Trademarks, derivative works or patent improvements relating thereto), by operation of law, or otherwise, such rights are deemed and are hereby irrevocably assigned to Seller or its licensors, as the case may be, without further action by either Party; and
(f) Buyer shall use Seller’s Intellectual Property Rights only in accordance with this Agreement and any instructions of Seller.
11.2 Prohibited Acts. Buyer shall not:
(a) take any action that may interfere with any of Seller’s rights in or to Seller’s Intellectual Property Rights, including Seller’s ownership or exercise thereof;
(b) challenge any right, title or interest of Seller in or to Seller’s Intellectual Property Rights;
(c) make any claim or take any action adverse to Seller’s ownership of Seller’s Intellectual Property Rights;
(d) register or apply for registrations, anywhere in the world, for Seller’s Trademarks or any other Trademark that is similar to Seller’s Trademarks or that incorporates Seller’s Trademarks in whole or in confusingly similar part;
(e) use any mark, anywhere, that is confusingly similar to Seller’s Trademarks;
(f) engage in any action that tends to disparage, dilute the value of, or reflect negatively on the products purchased under this Agreement (including Goods) or any Seller Trademark;
(g) misappropriate any of Seller’s Trademarks for use as a domain name without prior written consent from Seller; or
(h) alter, obscure or remove any of Seller’s Trademarks or trademark or copyright notices or any other proprietary rights notices placed on the products purchased under this Agreement (including Goods), marketing materials or other materials that Seller may provide.
12.1 Scope of Confidential Information. From time to time during the Term, either Party (as the “Disclosing Party”) may disclose or make available to the other Party (as the “Receiving Party”) information about its business affairs, goods and services, confidential information and materials comprising or relating to Intellectual Property Rights, trade secrets, third-party confidential information and other sensitive or proprietary information. Such information, as well as the terms of this Agreement, whether orally or in written, electronic or other form or media, and whether or not marked, designated or otherwise identified as “confidential,” is collectively referred to as “Confidential Information” hereunder. Notwithstanding the foregoing, Confidential Information does not include information that, at the time of disclosure:
(a) is or becomes generally available to and known by the public other than as a result of, directly or indirectly, any breach of this Section 12 by the Receiving Party or any of its Representatives;
(b) is or becomes available to the Receiving Party on a non-confidential basis from a third-party source, provided that such third party is not and was not prohibited from disclosing such Confidential Information;
(c) was known by or in the possession of the Receiving Party or its Representatives prior to being disclosed by or on behalf of the Disclosing Party;
(d) was or is independently developed by the Receiving Party without reference to or use of, in whole or in part, any of the Disclosing Party’s Confidential Information; or
(e) is required to be disclosed pursuant to applicable Law.
12.2 Protection of Confidential Information. The Receiving Party shall, for 24 months from receipt of such Confidential Information:
(a) protect and safeguard the confidentiality of the Disclosing Party’s Confidential Information with at least the same degree of care as the Receiving Party would protect its own Confidential Information, but in no event with less than a commercially reasonable degree of care;
(b) not use the Disclosing Party’s Confidential Information, or permit it to be accessed or used, for any purpose other than to exercise its rights or perform its obligations under this Agreement; and
(c) not disclose any such Confidential Information to any Person, except to the Receiving Party’s Representatives who need to know the Confidential Information to assist the Receiving Party, or act on its behalf, to exercise its rights or perform its obligations under this Agreement.
12.3 The Receiving Party shall be responsible for any breach of this Section 12 caused by any of its Representatives. At any time during or after the Term, at the Disclosing Party’s written request, the Receiving Party and its Representatives shall, pursuant to Section 6.7, promptly return all Confidential Information and copies thereof that it has received under this Agreement.
13.1 During the Term, Buyer shall, at its own expense, maintain and carry in full force and effect, commercial general liability insurance (including product liability coverage) in a sum no less than $1,000,000 with financially sound and reputable insurers, and upon Seller’s reasonable request, shall provide Seller with a certificate of insurance evidencing the insurance coverage specified in this Section. The certificate of insurance shall name Seller as an additional insured. Buyer shall provide Seller with 15 days’ advance written notice in the event of a cancellation or material change in such insurance policy.
14.1 Further Assurances. Upon a Party’s reasonable request, the other Party shall, at its sole cost and expense, execute and deliver all such further documents and instruments, and take all such further acts, necessary to give full effect to this Agreement.
14.2 Relationship of the Parties. The relationship between Seller and Buyer is solely that of vendor and vendee, and they are independent contracting parties. Nothing in this Agreement creates any agency, joint venture, partnership or other form of joint enterprise, employment or fiduciary relationship between the Parties. Neither Party has any express or implied right or authority to assume or create any obligations on behalf of or in the name of the other Party or to bind the other Party to any contract, agreement or undertaking with any third party.
14.4 Survival; Statute of Limitations. Subject to the limitations and other provisions of this Agreement: (a) the representations and warranties of the Parties contained herein will survive the expiration or earlier termination of this Agreement for a period of 12 months after such expiration or termination; and (b) any other provision that, in order to give proper effect to its intent, should survive such expiration or termination, will survive the expiration or earlier termination of this Agreement for the period specified therein, or if nothing is specified for a period of 12 months after such expiration or termination. All other provisions of this Agreement will not survive the expiration or earlier termination of this Agreement. Notwithstanding any right under any applicable statute of limitations to bring a claim, no Action based upon or arising in any way out of this Agreement may be brought by either Party after the expiration of the applicable survival or other period set forth in this Section 14.4 and the Parties waive the right to file any such Action after the expiration of the applicable survival or other period; provided, however, that the foregoing waiver and limitation do not apply to the collection of any amounts due to Seller under this Agreement.
14.5 Notices. All notices, requests, consents, claims, demands, waivers and other communications under this Agreement (each, a “Notice”) must be in writing and addressed to the other Party at its address set forth below (or to such other address that the receiving Party may designate from time to time in accordance with this section). All Notices must be delivered by personal delivery, nationally recognized overnight courier or certified or registered mail (in each case, return receipt requested, postage prepaid). Notwithstanding the foregoing, notice by facsimile or e-mail (with confirmation of transmission) will satisfy the requirements of this Section 14.5. Except as otherwise provided in this Agreement, a Notice is effective only (a) on receipt by the receiving Party, and (b) if the Party giving the Notice has complied with the requirements of this Section.
Notice to Seller:
4986 Morrison Road STE C
Denver CO 80219
14.6 Interpretation. For purposes of this Agreement: (a) the words “include,” “includes” and “including” are deemed to be followed by the words “without limitation”; (b) the word “or” is not exclusive; (c) the words “herein,” “hereof,” “hereby,” “hereto” and “hereunder” refer to this Agreement as a whole; (d) words denoting the singular have a comparable meaning when used in the plural, and vice-versa; and (e) words denoting any gender include all genders. Unless the context otherwise requires, references in this Agreement: (x) to sections, exhibits, schedules, attachments and appendices mean the sections of, and exhibits, schedules, attachments and appendices attached to, this Agreement; (y) to an agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and modified from time to time to the extent permitted by the provisions thereof; and (z) to a statute means such statute as amended from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. The Parties drafted this Agreement without regard to any presumption or rule requiring construction or interpretation against the Party drafting an instrument or causing any instrument to be drafted. The exhibits, schedules, attachments and appendices referred to herein are an integral part of this Agreement to the same extent as if they were set forth verbatim herein.
14.7 Headings. The headings in this Agreement are for reference only and do not affect the interpretation of this Agreement.
14.8 Severability. If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability does not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon a determination that any term or provision is invalid, illegal or unenforceable, the Parties shall negotiate in good faith to modify this Agreement to effect the original intent of the Parties as closely as possible in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.
14.9 Amendment and Modification. No amendment to this Agreement is effective unless it is in writing and signed by each Party.
14.10 Waiver. No waiver under this Agreement is effective unless it is in writing and signed by an authorized representative of the Party waiving its right. Any waiver authorized on one occasion is effective only in that instance and only for the purpose stated and does not operate as a waiver on any future occasion. None of the following constitutes a waiver or estoppel of any right, remedy, power, privilege or condition arising from this Agreement:
(a) any failure or delay in exercising any right, remedy, power or privilege or in enforcing any condition under this Agreement; or
(b) any act, omission or course of dealing between the Parties.
14.11 Cumulative Remedies. All rights and remedies provided in this Agreement are cumulative and not exclusive, and the exercise by either Party of any right or remedy does not preclude the exercise of any other rights or remedies that may now or subsequently be available at law, in equity, by statute, in any other agreement between the Parties or otherwise. Notwithstanding the previous sentence, the Parties intend that Buyer’s rights under Section 4.4, Section 4.6, Section 8.5 and each of the Parties’ rights under Section 9 are such Party’s exclusive remedies for the events specified therein.
14.12 Equitable Remedies. Each Party acknowledges and agrees that (a) a breach or threatened breach by such Party of any of its obligations under Section 12 would give rise to irreparable harm to the other Party for which monetary damages would not be an adequate remedy and (b) in the event of a breach or a threatened breach by such Party of any such obligations, the other Party shall, in addition to any and all other rights and remedies that may be available to such Party at law, at equity or otherwise in respect of such breach, be entitled to equitable relief, including a temporary restraining order, an injunction, specific performance and any other relief that may be available from a court of competent jurisdiction, without any requirement to post a bond or other security, and without any requirement to prove actual damages or that monetary damages will not afford an adequate remedy. Each Party agrees that such Party will not oppose or otherwise challenge the appropriateness of equitable relief or the entry by a court of competent jurisdiction of an order granting equitable relief, in either case, consistent with the terms of this Section 14.12.
14.13 Assignment. Buyer may not assign any of its rights or delegate any of its obligations under this Agreement without the prior written consent of Seller. Seller may assign any of its rights or delegate any of its obligations to any Affiliate or to any Person acquiring all or substantially all of Seller’s assets. Any purported assignment or delegation in violation of this Section is null and void. No assignment or delegation relieves the assigning or delegating Party of any of its obligations under this Agreement.
14.14 Successors and Assigns. This Agreement is binding on and inures to the benefit of the Parties and their respective permitted successors and permitted assigns.
14.15 No Third-Party Beneficiaries. Except as expressly set forth in the second sentence of this Section 14.15, this Agreement benefits solely the parties to this Agreement and their respective permitted successors and permitted assigns and nothing in this Agreement, express or implied, confers on any other Person any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.
14.16 Dispute Resolution. The parties waive their right to seek remedies in court, including any right to a jury trial. The parties agree that in the event of any dispute between the parties, such dispute shall be resolved exclusively by arbitration to be conducted only in Denver, Colorado at the Judicial Arbiter Group (“JAG”) applying the laws of Colorado. Disputes will not be resolved in any other forum or venue. The Parties agree that such arbitration shall be conducted by one or more retired judges who are experienced in dispute resolution regarding the securities industry, pre-arbitration discovery shall be limited to the greatest extent, the arbitration award shall not include factual findings or conclusions of law, and no punitive damages shall be awarded. The Parties understand that any Party’s right to appeal or to seek modification of rulings in an arbitration is severely limited. Any award rendered by the arbitrators shall be final and binding and judgment may be entered upon it in any court of competent jurisdiction in the county and state of the principal office of Seller at the time such award is rendered.
14.17 Governing Law. This Agreement, and all matters arising out of or relating to this Agreement, are governed by, and construed in accordance with, the Laws of the State of Colorado without regard to the conflict of laws provisions thereof.
14.18 WAIVER OF JURY TRIAL. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY THAT MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.
14.19 Counterparts. This Agreement may be executed in counterparts, each of which is deemed an original, but all of which together are deemed to be one and the same agreement.
14.20 Force Majeure. Seller shall not be liable or responsible to Buyer, nor be deemed to have defaulted under or breached this Agreement, for any failure or delay in fulfilling or performing any term of this Agreement, if such failure or delay is caused by or results from acts beyond Seller’s control, including: (a) acts of nature; (b) flood, fire, earthquake or explosion; (c) war, invasion, hostilities (whether war is declared or not), terrorist threats or acts, riot or other civil unrest; (d) requirements of Law; (e) actions, embargoes or blockades in effect on or after the date of this Agreement; (f) action by any Governmental Authority (whether or not having the effect of Law); (g) national or regional emergency; (h) strikes, labor stoppages or slowdowns or other industrial disturbances; (i) shortages of or delays in receiving raw materials; or (j) shortage of adequate power or transportation facilities (each, a “Force Majeure Event”).
14.21 No Public Announcements or Trademark Use. Unless expressly permitted under this Agreement, neither Party shall either:
(a) make any statement (whether oral or in writing) in any press release, external advertising, marketing or promotion materials regarding the subject matter of this Agreement, the other Party or its business unless:
(i) it has received the express written consent of the other Party, or
(ii) it is required to do so by Law.
(b) use the other Party’s Trademarks, service marks, trade names, logos, symbols or brand names, in each case, without the prior written consent of the other Party, which shall not be unreasonably withheld or delayed.
15.1 Capitalized terms have the meanings set out or referred to in this Section 15.
“Action” means any claim, action, cause of action, demand, lawsuit, arbitration, inquiry, audit, notice of violation, proceeding, litigation, citation, summons, subpoena or investigation of any nature, civil, criminal, administrative, regulatory or other, whether at law, in equity or otherwise.
“Affiliate” of a Person means any other Person that directly or indirectly, through one or more intermediaries, Controls, is Controlled by, or is under common Control with, such Person.
“Agreement” has the meaning set forth in the preamble to this Agreement.
“Business Day” means any day except Saturday, Sunday or any other day on which commercial banks located in Colorado are authorized or required by Law to be closed for business.
“Buyer” has the meaning set forth in the preamble to this Agreement.
“Buyer Contracts” means all contracts or agreements to which Buyer is a party or to which any of its material assets are bound.
“Claim” means any Action brought against a Person entitled to indemnification under Section 9.
“Confidential Information” has the meaning set forth in Section 12.1.
“Control” (and with correlative meanings, the terms “Controlled by” and “under common Control with”) means, with respect to any Person, the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of another Person, whether through the ownership or voting securities, by contract, or otherwise.
“Defective” means not conforming to the Product Warranty under Section 8.3.
“Defective Goods” means goods shipped by Seller to Buyer pursuant to this Agreement that are Defective.
“Delivery Location” means the street address for delivery of the Goods specified in the applicable Invoice.
“Disclosing Party” has the meaning set forth in Section 12.1.
“Effective Date” means the date first set forth above.
“Force Majeure Event” has the meaning set forth in Section 14.20.
“Goods” means the goods identified in the Invoice.
“Governmental Authority” means any federal, state, local or foreign government or political subdivision thereof, or any agency or instrumentality of such government or political subdivision, or any self-regulated organization or other non-governmental regulatory authority or quasi-governmental authority (to the extent that the rules, regulations or orders of such organization or authority have the force of Law), or any arbitrator, court or tribunal of competent jurisdiction.
“Governmental Order” means any order, writ, judgment, injunction, decree, stipulation, award or determination entered by or with any Governmental Authority.
“Indemnified Party” has the meaning set forth in Section 9.1.
“Initial Term” has the meaning set forth in Section 6.1.
“Inspection Period” has the meaning set forth in Section 4.6.
“Intellectual Property Rights” means all industrial and other intellectual property rights comprising or relating to: (a) Patents; (b) Trademarks; (c) internet domain names, whether or not Trademarks, registered by any authorized private registrar or Governmental Authority, web addresses, web pages, website and URLs; (d) works of authorship, expressions, designs and design registrations, whether or not copyrightable, including copyrights and copyrightable works, software and firmware, data, data files, and databases and other specifications and documentation; (e) Trade Secrets; and (f) all industrial and other intellectual property rights, and all rights, interests and protections that are associated with, equivalent or similar to, or required for the exercise of, any of the foregoing, however arising, in each case whether registered or unregistered and including all registrations and applications for, and renewals or extensions of, such rights or forms of protection pursuant to the Laws of any jurisdiction throughout any part of the world.
“Invoice” means Seller’s invoice issued to Buyer hereunder, including all terms and conditions attached to, or incorporated into, such invoice.
“Law” means any statute, law, ordinance, regulation, rule, code, constitution, treaty, common law, Governmental Order or other requirement or rule of law of any Governmental Authority.
“Losses” has the meaning set forth in Section 9.1.
“Nonconforming Goods” means any goods received by Buyer from Seller pursuant to an Invoice that: (a) do not conform to the make or model listed in the applicable Invoice; (b) do not fully conform to the Specifications; or (c) materially exceed the quantity of Goods ordered by Buyer pursuant to this Agreement or any Invoice. Where the context requires, Nonconforming Goods are deemed to be Goods for purposes of this Agreement.
“Notice” has the meaning set forth in Section 14.5.
“Party” has the meaning set forth in the preamble to this Agreement.
“Patents” means all patents (including all reissues, divisionals, provisionals, continuations and continuations-in-part, re-examinations, renewals, substitutions and extensions thereof), patent applications, and other patent rights and any other Governmental Authority-issued indicia of invention ownership (including inventor’s certificates, petty patents and patent utility models).
“Payment Failure” has the meaning set forth in Section 6.36.3(a).
“Person” means any individual, partnership, corporation, trust, limited liability entity, unincorporated organization, association, Governmental Authority or any other entity.
“Personnel” of a Party means any agents, employees, contractors or subcontractors engaged or appointed by such Party.
“Price” has the meaning set forth in Section 5.1.
“Product Warranty” has the meaning set forth in Section 8.3.
“Receiving Party” has the meaning set forth in Section 12.1.
“Reimbursement Payment” has the meaning set forth in Section 7.4.
“Renewal Term” has the meaning set forth in Section 6.2.
“Representatives” means a Party’s Affiliates and each of their respective Personnel, officers, directors, partners, shareholders, attorneys, third-party advisors, successors and permitted assigns.
“Seller” has the meaning set forth in the preamble to this Agreement.
“Seller Contracts” means all contracts or agreements to which Seller is a party or to which any of its material assets are bound.
“Seller’s Intellectual Property Rights” means all Intellectual Property Rights owned by or licensed to Seller.
“Seller’s Trademarks” means all Trademarks owned by or licensed to Seller.
“Specifications” means the specifications for the Goods attached hereto as Invoice.
“Taxes” means any and all present and future sales, income, stamp and other taxes, levies, imposts, duties, deductions, charges, fees or withholdings imposed, levied, withheld or assessed by any Governmental Authority, together with any interest or penalties imposed thereon.
“Trademarks” means all rights in and to US and foreign trademarks, service marks, trade dress, trade names, brand names, logos, corporate names and domain names and other similar designations of source, sponsorship, association or origin, together with the goodwill symbolized by any of the foregoing, in each case whether registered or unregistered and including all registrations and applications for, and renewals or extensions of, such rights and all similar or equivalent rights or forms of protection in any part of the world.
“Trade Secrets” means all inventions, discoveries, trade secrets, business and technical information and know-how, databases, data collections, patent disclosures and other confidential and proprietary information and all rights therein.
“US” means the United States of America.
“Warranty Period” has the meaning set forth in Section 8.3.