Version 1.0, Last Revised February 28, 2017


This Value Added Reseller Agreement (“Agreement”) is made and effective on Effective Date, by and between you, the StoryCloud Reseller (“VAR”) and StoryCloud (“StoryCloud”).

StoryCloud has developed certain software, which it markets directly to end-users and also markets through intermediaries such as VARs.

VAR is in the business of court reporting legal services and products and adding value to existing software and legal service products and remarketing the value-added products to end-users.

VAR desires to take a license in certain of StoryCloud’s products as identified on Exhibit A (“Products”) attached, and to add value to same and remarket the value-added products, all pursuant to this Agreement.

Therefore the parties agree as follow:

1.  Nonexclusive Appointment.

VAR is hereby appointed a nonexclusive value-added reseller of the Products for sale in the Territory as it appears in Exhibit B (“Territory”), pursuant to this Agreement.  VAR accepts such appointment and agrees to serve as a value-added reseller of the Products to end users as provided herein.  This Agreement is not exclusive to VAR, and StoryCloud reserves the unrestricted right to sell, license, market and distribute or to grant to others the right to sell, license, market and distribute the Products and value added versions thereof anywhere in the world.

2. Price, Terms, and Discounts.

Prices, discounts, and other terms for the Products are set forth in Exhibit A. and are subject to change at any time, to take effect no sooner than the end of the Initial Term of this Agreement and following at least 30 Days prior written notice by StoryCloud to VAR.

3. Product Changes Including Upgrades.

VAR acknowledges that customers generally desire and expect Product changes in VAR’s marketplace.  Therefore, VAR encourages StoryCloud to modify, alter, amend or delete from the Products at any time at its discretion.  Any formal upgrades require at least 30 Days written notice from StoryCloud to VAR.   VAR agrees never to remove from the Products any copyright notice included in them.

4.  License.

A.  StoryCloud grants and VAR accepts a limited, nonexclusive license to the Products as provided in this Agreement.  The license granted herein shall permit VAR to combine or include the Products with VAR’s other software or hardware for the purpose of adding to or increasing the value, functionality or utility of such software or hardware for VAR’s end user customers.  VAR shall not be permitted to use the Products for its internal business.  VAR may not copy any of the Products or distribute or transfer the Products except as provided herein.

B.  StoryCloud hereby grants VAR a limited, nonexclusive license to grant sublicenses of the Product to VAR’s end user customers in the normal course of business.  Any sublicense of the product by VAR shall be pursuant to a written license agreement, approved in advance by StoryCloud as to form and substance that shall include at least the following:

(i) VAR’s sub licensee shall have no right to copy, modify, reproduce, publish or convey any part of any Product.
(ii) VAR’s sub licensee shall acquire no ownership in the Product.
(iii) VAR’s sub licensee shall look solely to VAR in the event of any defect, damage or inoperability of the product or part thereof.

C.    If VAR’s sub licensee fails to perform any material obligation with respect to Product pursuant to its written sublicense agreement with VAR, then VAR shall be required to cooperate with StoryCloud to protect and enforce StoryCloud’s rights and title with respect to the Products.  VAR may use this Agreement to show to sub licensee that they are required by Agreement to enforce these terms and conditions.

5.   Confidentiality.

In the performance of this Agreement, each party may have access to confidential, proprietary or trade secret information owned or provided by the other party relating to software computer programs, object code, source code, marketing plans, business plans, financial information, specifications, flow charts and other data (“Confidential Information”).  All Confidential Information supplied by one party to another pursuant to this Agreement shall remain the exclusive property of the disclosing party.  The receiving party shall use such Confidential Information only for the purposes of this Agreement and shall not copy, disclose, convey or transfer any of the Confidential Information or any part thereof to any third party, except that VAR may sublicense the Products as set forth in this Agreement.  Neither party shall have any obligation with respect to Confidential Information which: (i) is or becomes generally known to the public by any means other than a breach of the obligations of a receiving party; (ii) was previously known to the a receiving party or rightly received by a receiving party from a third party; or (iii) is independently developed by or a the receiving party.

6. VAR Sales Organization and Activities.

In connection with the performance of its obligations in this Agreement in a professional
and businesslike manner, VAR agrees to:

A.    Hire, train and employ at its place or places of business competent, professional and ethical sales, technical and support personnel to sell and support the products.

B.    Stay current with respect to information concerning the Products and, where appropriate, attend StoryCloud’s training with respect to the Products.

C. Maintain adequate human resource and other facilities to assure prompt handling of all customer inquiries, orders, shipments and after sale support for the Products.

D.    Maintain, for demonstration purposes adequate equipment and other resources to properly demonstrate the Products.

E.    Provide prompt, reliable and competent technical and other assistance to VAR’s end user customers with respect to the Products.

F.  Conduct its business in a professional manner that will reflect favorably on StoryCloud and the Products, and not engage in deceptive, fraudulent, misleading, illegal or unethical business practices, whether with respect to the Products or otherwise.

G.    Permit StoryCloud the right of reasonable entry to visit and inspect VAR’s place of business for the purpose of verifying, to the satisfaction of StoryCloud, that VAR is performing its obligations under this Agreement.

7.   StoryCloud Sales Assistance Responsibilities.

StoryCloud will provide commercial and technical assistance to VAR as may be necessary and appropriate to assist VAR in effectively carrying out its obligations under this Agreement and in the promotion and sale of the Products to VAR’s end user customers.  StoryCloud will subject to availability provide VAR and its agents sales promotion materials, technical manuals, sales aides and other materials helpful in the promotion or sales of the Products.

8.    Limited Warranties.

A.   StoryCloud warrants that it is the owner of or otherwise has the right to license the
Products and otherwise perform its obligations set forth herein.

B.  StoryCloud warrants that the media upon which the Products are included shall be free from defects in materials and workmanship for a period of following the date of shipment.  In the event any breach of warranty set forth in this Section 10. B., VAR’s sole remedy and StoryCloud’s sole liability shall be for StoryCloud to replace the defective media.

C. StoryCloud warrants that for a period of 90 Days following shipment of the Products, each Product will perform the functions substantially according to StoryCloud’s regular specifications document with respect to such Product.  In the event of any breach the warranty set forth in this section 10.C., VAR’s sole remedy, and StoryCloud’s sole liability, will be that StoryCloud must promptly repair the Products so as to conform to the warranty or, at StoryCloud’s election, refund the purchase price.

9.  StoryCloud Disclaimer.


10.    Indemnification.

A.  VAR agrees to indemnify and hold harmless StoryCloud from and against loss, suit, damage or claim including reasonable attorney’s fees and costs, arising out of or connecting with the sale, sublicense or use of any of the Products that have been modified by VAR or anyone else.

B.  StoryCloud shall, at its own expense, defend any suit that may be instituted against VAR or any end user customer of VAR for any alleged infringement of any US patent, trademark or copyright related to the Product as provided by StoryCloud hereunder, provided that:

1.    Such alleged infringement consists only of the use of the Product in the manner for which the Product was designed by itself, and does not relate to any modification or alteration or combination with other works.

2.    VAR gives StoryCloud immediate notice in writing of any such suit and permits StoryCloud, with counsel of its choice, to defend such suits.  Immediate is defined as less than 5 Days after the suit was filed upon VAR or its representatives.

3.    VAR provides StoryCloud all of the necessary information, assistance and authority, to enable StoryCloud to defend such suit, and similarly uses its best efforts to get all VAR’s end user customers to similarly provide all needed information, assistance and authority, all at VAR’s expense.

4.    StoryCloud’s indemnity shall not apply with respect to any claim arising out of or based upon any modification or alteration of the Products created by or for StoryCloud or an End-User customer.

11. Relationship of the Parties.

It is expressly understood and agreed that the relationship between the parties is solely that of “seller” and “buyer”.  VAR is not, and shall not be, a partner, agent, representative or joint venturer of StoryCloud.  VAR has no authority to assume or create any obligation for or on behalf of StoryCloud, express or implied, with respect to the Products or otherwise.

12StoryCloud’s Marks.

A.  StoryCloud hereby grants to VAR a limited, nonexclusive right to use StoryCloud’s regular trade names, trademarks, titles and logos (the “Licensed Marks”) in the advertising, promotion and sale of the Products.  VAR shall not make or permit alteration or removal of tags, labels, or identifying marks placed by StoryCloud on or within the Software program of any product.  VAR will not use StoryCloud’s trade names or abbreviations (with the exception of a logo or mark or graphic design provided by StoryCloud which indicates VAR is an authorized reseller of StoryCloud) in VAR’s corporate title, or name or in any way that might result in confusion as to separate and distinct identities of StoryCloud and VAR.  Upon the expiration or earlier termination of this Agreement, the license granted to VAR in the Licensed Marks shall immediately terminate and VAR shall immediately cease and desist all use of the Licensed Marks.

B.  VAR recognizes and acknowledges StoryCloud’s ownership and title to the Licensed Marks and the goodwill related thereto and agrees that any goodwill which accrues because of VAR’s use of such marks shall become the property of StoryCloud.  VAR further agrees not to contest or take any action in opposition to any trademark, serviceman, trade name or logo of StoryCloud or to use, employ or attempt to register any mark or trade name, which is similar to any mark or name of StoryCloud.

C.  VAR shall apply the Licensed Marks only to products which have been manufactured in accordance with the standards of quality in materials, design, workmanship, use, advertising and promotion set forth in StoryCloud’s trademark use specifications and product control specifications (“Control Specifications”), copies of which will be furnished to VAR in confidence pursuant to Section 7 of this Agreement.

D.  StoryCloud shall have the right at any time to conduct during regular business hours an examination of products manufactured by VAR (including those assembled or tested) at VAR’s facilities to determine compliance of such products with the applicable Control Specifications.  If at any time such products shall, in the sole opinion of StoryCloud, fail to conform with the standards of quality in materials, design, workmanship, use, advertising, and promotion set forth in such Control Specifications, StoryCloud shall so notify VAR.  Upon such notification, VAR shall promptly cease to use the Licensed Marks on such products and shall not sell such nonconforming products until the standards of quality contained in the applicable Control Specifications have been met to the satisfaction of StoryCloud.

13.  Term and Termination.

A.   This Agreement shall commence on the Date of this Agreement and continue for a Term ending in 1 year.  Thereafter, this Agreement shall continue until a party shall give notice to the other party of its desire to terminate this Agreement upon at least ninety (90) days prior written notice.

B.  In the event that VAR has failed to pay any amount when due or is in breach or default of any other material obligation set forth in this Agreement, then StoryCloud may notify VAR and if VAR has not paid the entire amount due or cured its other breach or default within 30 Days following such written notice, then StoryCloud may elect to terminate this Agreement unilaterally without protest from the VAR.

C.  In the event of any other breach or default of any material obligation owed by StoryCloud in this Agreement, then the VAR may provide notice to StoryCloud and if such breach or default is not cured within 30 Days following such notice, the Agreement may be terminated by the VAR unilaterally without protest from the StoryCloud.

14. Notices.

Any notice required by this Agreement or given in connection with it, shall be in writing.

If to the StoryCloud:
StoryCloud, Inc.
c/o H. Scott Jablow, CPA
4180 La Jolla Village Drive, Suite 300
La Jolla, California 92037

15.  No Waiver.

The waiver or failure of either party to exercise in any respect any right provided in this agreement shall not be deemed a waiver of any other right or remedy to which the party may be entitled.

16.  Entirety of Agreement.

The terms and conditions set forth herein constitute the entire agreement between the parties and supersede any communications or previous agreements with respect to the subject matter of this Agreement.  There are no written or oral understandings directly or indirectly related to this Agreement that are not set forth herein.  No change can be made to this Agreement other than in writing and signed by both parties.

17.  Governing Law.

This Agreement shall be construed and enforced according to the laws of the State of TO BE COMPLETED and any dispute under this Agreement must be brought in this venue and no other.

18.  Headings in this Agreement

The headings in this Agreement are for convenience only, confirm no rights or obligations in either party, and do not alter any terms of this Agreement.

19.  Severability.

If any term of this Agreement is held by a court of competent jurisdiction to be invalid or unenforceable, then this Agreement, including all of the remaining terms, will remain in full force and effect as if such invalid or unenforceable term had never been included.



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