Last updated: June 4th, 2021
These General Terms of Service are an agreement (the “Terms”) between OneNetworks, Inc. (Dba Finexio)., a Delaware corporation (“Finexio”) and you and any person or organization for which you act that has a Finexio account (“Customer” or “you”) (each of Finexio and Customer, a “Party” and, collectively, the “Parties”). You represent and warrant that you are of legal age and have the right and authority to enter into the Terms on your own behalf and on behalf of the Customer, if applicable. The Terms are effective as of the date of Customer’s accepting the Terms (the “Effective Date”). This Agreement governs Your use of or interactions with Finexio’s products, services, or other offerings (collectively, the “Service”), including but not limited to our bill payment service, our finance solutions, our international payments service, the Finexio websites (“Website”), Your Finexio account and/or any other services, features, functionalities, offers or promotions of Finexio. The Services provided to you by Finexio are subject to the terms and conditions of the Terms and to the following, which are incorporated herein by this reference: (i) the terms or instructions appearing in the Services Agreement or any addendum thereto; (ii) Finexio’s policies and procedures, as amended from time to time, that apply to the Services; and (iii) state and federal laws and regulations and payment network rules, as applicable.
1. Definitions: Except as otherwise specifically indicated, the following capitalized terms have the following meanings set forth in Exhibit A
(a) Finexio is engaged in the business of providing accounts payable services. The services offered by Finexio include: (i) generation, routing and processing services for payments to Customers; (ii) generation of remittance files; (iii) implementation services; (iv) marketing campaigns to enroll Providers, including any marketing materials provided by Finexio; (v) customer support and account management services; and (vi) any other services offered from time to time by Finexio in connection with any of the foregoing (collectively, the “Services”).
(b) Finexio will establish, maintain and provide an online application which will be used to facilitate the provision of the Services (“Platform”), and which will be made available for use by Customers through such means as may be mutually agreed upon by the Parties from time to time. The Parties shall mutually agree on a method for integrating their respective networks, applications and work environment platforms, including the Platform, as required for Finexio to provide the Services, and shall perform those integration functions as mutually agreed upon by the Parties. Customer acknowledges that each Customer wishing to access or utilize the Platform or any related features, functionality or services will be required to agree to the applicable terms and conditions, as determined by Finexio in its sole discretion. Finexio may terminate the ability of a Customer to access or utilize the Platform at any time in its sole discretion.
(c) Finexio may modify the Services from time to time at Finexio’s sole discretion for any purpose deemed appropriate by Finexio.
(d) Finexio may retain and utilize the services of one or more subcontractors or other third parties (each a “Subcontractor”) to perform any of Finexio’s duties or obligations under the Terms, or any other services on its behalf, including software maintenance services, advertising serving technologies, e-mail service providers, payment processing services, database management, web analytics and other services.
(e) Customer acknowledges and agrees that Finexio will not bear any responsibility or liability with respect to any act or omission of any Customer, including any fraud, or any act or omission of Customer or its Affiliate(s), or any of their respective owners, shareholders, partners, employees, agents, representatives or contractors, with respect to any Customer. Customer will at all times ensure that all data furnished to Finexio in connection with the Terms, including all Customer Data, is complete and accurate in all respects. Customer will not use any portion of the Services for any illegal transaction or activity, including under the laws and regulations applicable to any Customer.
(f) Customer is solely responsible for determining and calculating any and all taxes and duties, including sales, use, transfer, value added, withholding, income, and other taxes and/or duties (“Taxes”) assessed, incurred, or required to be collected, paid, or withheld in connection with amounts received by Customer in connection with the Services, and for collecting, withholding, reporting, and remitting correct Taxes to the appropriate tax authority.
(g) All data transmissions conducted between the Parties pursuant to the Terms shall be conducted in such manner and form as specified in any technical specifications and processes provided by Finexio to Customer from time to time.
(h) From time to time, Customer may request additional Services from Finexio, and the parties may thereafter enter into an addendum to the Services Agreement referencing the Terms for such Services.
(i) Finexio may change any features, functions, brand, third party provider, or attributes of a Service, or any element of its systems or processes, from time to time, provided that such changes do not (i) increase Customer’s total costs of receiving the Service; (ii) require material changes to Customer’s facilities, systems, software or equipment; or (iii) have a material adverse impact on the functionality, interoperability, performance or resource efficiency. Customer shall not rely on identification of specific brands associated with or names of third party providers of a Service as an obligation of Finexio to use any particular brand or third party provider. If Customer requests a change to a Service, the parties shall negotiate the terms for such change, which terms will be set out in a mutually agreed upon change order, addendum, or other similar document.
(j) This Service should not be used to pay federal, state, or local taxes, courts or other governmental entities. Finexio will not be liable for penalties, interest, or other damages of any kind if Client tries to use the Service to remit or pay money for taxes, or to courts or governmental agencies, or for any purposes that do not comply with Applicable Law. The Service is also not intended for payment of alimony, child support, taxes or other court-directed or government payments, fines or penalties, payments to settle securities transactions or payment in connection with gambling, fraudulent or illegal activities.
(k) Finexio may reject Payment Instructions with or without cause or prior notice. If it does, Finexio will attempt to notify Client of the rejection orally, electronically or in writing before the Processing Date.
(l) Finexio recommends that Client enter a Processing Date that is at least six Business Days before the date the payment is due (without regard to any grace period)(the “Payment Due Date”).
(m) Finexio will continue to originate recurring payments through the expiration date Client originally scheduled for such payments unless Client cancels a recurring payment prior to its respective Cutoff Time for cancellations, as provided herein.
2.2 Appointment as Agent
(a) Customer hereby:
(i) Appoints Finexio as Customer’s authorized agent for the purposes of providing the Services and performing any additional duties as set forth herein (including contacting Customer’s suppliers on behalf of Customer for purposes of receiving the Services), and Customer hereby accepts such appointment;
(ii) Customer authorizes and directs Finexio to instruct Bank to establish and maintain a bank account for the benefit of Customer and to accept instructions from Finexio on the movement of funds to and from that account. This account(s) may either be a pooled custodial deposit account among Customers, individual deposit account or a sub-account associated with a pooled custodial deposit account (such account, the “FBO Account”).
(iii) Authorizes Finexio to provide instructions to Bank on behalf of Customer as necessary to transfer funds to or from the FBO Account as contemplated herein or otherwise specified by Customer from time to time;
2.3 Additional Responsibilities
(a) Customer shall be solely responsible for the transmission of any information, data, records or documents (collectively, “Customer Data”) necessary for Finexio to perform a Service at Customer’s expense, and shall bear any risk of loss resulting from that transmission until Finexio confirms receipt. Finexio shall bear the risk of loss resulting from Customer Data transmitted to Customer until Customer confirms receipt. If Customer directs Finexio to disclose Customer Data to a third party, Customer shall provide Finexio with written authorization to do so and bear any risk of loss or liability associated with that disclosure. In addition, Finexio shall be held harmless from any claim resulting from the third party’s use of that Customer Data, and may, in its discretion, require the third party to enter into a written agreement with Finexio governing disclosure of that Customer Data.
(b) Customer will designate an employee who will be responsible for all matters relating to the Services (“Primary Contact”). Customer may change the individual designated as Primary Contact at any time by providing written (including electronic) notice to Finexio.
(d) If Customer is a “Covered Entity” as defined under the Health Insurance Portability and Accountability Act of 1996, as amended, and regulations promulgated thereunder (“HIPAA”), and Customer may be disclosing to Finexio any “Protected Health Information” as defined under HIPAA, the Parties agree (i) to enter into a separate Business Associate Agreement as required by HIPAA prior to Customer’s disclosure to Finexio of any such information, and (ii) that such Business Associate Agreement shall remain in full force and effect at all times during the Term.
(e) Finexio may disclose individually identifiable information to its third-party contractors that have agreed to confidentiality obligations consistent with the Terms, subject to any additional obligations of Finexio pursuant to a Business Associate Agreement.
(f) Finexio will use commercially reasonable security measures to protect Customer Data against unauthorized disclosure or use.
(g) Finexio is not responsible for the accuracy, completeness or authenticity of any Customer Data furnished by Customer or a third party that is not an authorized agent of Finexio, and Finexio shall have no obligation to audit, check or verify that Customer Data. If any Customer Data submitted to Finexio by Customer or a third party that is not an authorized agent of Finexio is incorrect, incomplete or not in the required format, Finexio may require Customer to resubmit the Customer Data or Finexio may correct the Customer Data and bill Customer its then current rates for performing those corrections. Finexio shall notify Customer prior to Customer incurring such expense.
(h) Finexio is not responsible for any computer viruses (including, programs commonly referred to as “malware,” “keystroke loggers,” and/or “spyware”), problems or malfunctions resulting from any computer viruses, or any related problems that may be associated with the use of a third-party online system or services. Finexio is not responsible for any damage to the computer or operating systems of Customer or for loss of data that results, whether due to any computer virus or otherwise. Customer is responsible for maintaining, protecting, and securing Customer’s operating systems, including anti-virus software, security patches, and firewalls as reasonably determined by Customer. Finexio is not responsible for any errors or failures of any software or systems installed on Customer’s operating systems or accessed through an internet connection. Customer will protect itself and remain vigilant against e-mail fraud and other internet frauds and schemes (including, without limitation, fraud commonly referred to as “phishing” and “pharming”). Customer will educate its employees, agents, representatives and contractors as to the risks of such fraud and train such persons to avoid such risks. In the event that Customer, or any of its employees, agents, representatives or contractors receives an e-mail or other electronic communication that such party believes, or has reason to believe, is fraudulent, Customer agrees that neither it, nor any of its employees, agents, representatives or contractors will respond to the e-mail, provide any information to the e-mail sender, click on any links in the e-mail, or otherwise comply with any instructions in the e-mail. Customer agrees that Finexio is not responsible for any losses, injuries, or harm incurred by Customer as a result of any electronic, e-mail, or internet fraud.
(i) Customer shall maintain a copy of all Customer Data submitted to Finexio (whether directly or through a third party) to permit reconstruction if ever required in accordance with Customer’s data retention policy. Customer assumes all risk and expense associated with Customer Data reconstruction, except for those expenses attributable to an act or omission of Finexio, Finexio’s failure to perform any Finexio responsibility, or Finexio’s breach of these Terms. If Customer Data reconstruction is ever required, the parties shall mutually agree on a schedule and the applicable fees for that reconstruction.
(j) To the extent that Customer receives any information from any Customer, or from Finexio or other third party, related to any Customer’s use of any portion of the Services (such information, “Finexio Data”), Customer acknowledges and agrees that it will not store, use, disclose, or permit any third party to access such Finexio Data other than as expressly authorized in advance in writing by Finexio. The Parties acknowledge and agree that the terms “Customer Data” and “Finexio Data” may, in certain instances, refer to the same information, and that in such instances such fact shall not impact the rights and obligations associated with such information as referred to by such terms.
(k) Finexio assumes no liability for Enrollment Form errors or related to Client’s Payment Instructions or to changes thereto and is not obligated to detect errors in Client’s Payment Instructions.
(l) Finexio is not responsible for confirming such information, or for monitoring or refusing to process inaccurate, untimely or duplicate Payment Instructions.
(m) Client is solely responsible for any damages, such as late charges, that may be imposed as a result of its failure to select appropriate Processing Dates and transmit Payment Instructions to FINEXIO in a thoughtful and timely manner. To ensure that critical or time-sensitive payments are received on time, Client should consider establishing Processing Dates that are well in advance of the Payment Due Date.
(n) In the event of any error by Finexio in processing any Customer Data or preparing any report or file hereunder, Finexio’s sole obligation shall be to correct the error by reprocessing the affected Customer Data or preparing and issuing a new file or report at no additional cost to Customer; provided, however, Finexio’s obligation herein is contingent upon Customer notifying Finexio of the error within one (1) business day after Customer receives the improperly processed Customer Data, report or file.
2.4 Fees & Incentives
(a) In connection with Finexio’s provision of the Services, Customer agrees to pay to Finexio the fees and incentives as set forth in the Services Agreement.
(b) Except as otherwise provided in the Services Agreement, the fees, charges and financial terms of the Terms shall be unchanged during the first twelve (12) months of the Term, and are subject to increase or modification by Finexio, thereafter no more than once every six (6) months upon no less than thirty (30) days prior notice to Customer. You shall be solely responsible for all penalties, interest charges, and other late payment fees associated with payments that are delivered after the due date as set forth in the Services Agreement.
(c) Finexio also shall be entitled at any time without prior notice to pass through any access fees and/or increase in communications tariffs related to the Services, including, without limitation, government imposed access fees, fees resulting from changes in regulation or statute, transaction costs, and any third-party imposed fees.
(d) Except as otherwise expressly provided hereunder, each Party will bear their own costs and expenses in connection with the performance of their obligations and the provision and receipt of the Services hereunder.
(e) Except as may be provided otherwise in the Services Agreement, Finexio will provide its standard initial train-the-trainer training regarding the use and operation of the Service, third party service or software to Customer by web based training or in person at a Finexio training location (in which case, travel would be at Customer’s expense) at Finexio’s then current rates and on a mutually agreed date and time. Following such initial training, Customer is responsible for its trainer(s) training Customer’s employees on the use and operation of the Service, Third Party Service or Software. Additional training may be provided by Finexio upon Customer’s request, including onsite training at Customer’s location, as mutually agreed to by the parties regarding topics, duration and fees and expenses.
(f) Finexio may charge a Fee for each payment request presented against insufficient available funds, whether or not Finexio honors or processes the request.
(g) Notice of any errors in Fees or requests of payments paid must be made by Customer within one (1) year after the date of error or date of payment. Failure to notify Finexio within such time period will result in Finexio not being responsible for investigating or effecting any requested adjustments or payment requests.
2.5 Books & Records; Audit Rights
(a) Books & Records. Each Party shall maintain complete and accurate books of account and records, in accordance with generally accepted accounting principles in the United States, of all financial transactions arising in connection with its obligations pursuant to the Terms for a period of not less than that legally required for such records from the date last recorded or created, but in no event less than three (3) years following the end of the Term. The Parties further agree to work together in good faith to reconcile any accounting discrepancies. Each Party shall at all times have reasonable access to all information and documents related to the subject matter hereof which it requires to comply with Applicable Law and which may be in the control or possession of any other Party.
(b) Audits. Each Party (the “Reviewing Party”) may, at its own expense, inspect, or have a third party designated by the Reviewing Party inspect, the books and records of the other Party (the “Reviewed Party”) that are directly related to the obligations of the Reviewed Party hereunder, provided that any such inspection shall occur upon no less than ten (10) Business Days prior written notice and at a mutually agreed upon date and time during the Reviewed Party’s normal business hours, and no more frequently than once during any calendar year unless the Reviewing Party has a reasonable belief that the Reviewed Party is not acting in compliance with the terms of the Terms. The Reviewed Party shall furnish to the Reviewing Party or its designee all such information concerning transactions and the Reviewed Party’s performance of its obligations hereunder as the Reviewing Party may reasonably request.
2.6 Transition Assistance: Upon termination of the Services Agreement, Finexio shall cooperate in the transition of the Services to Customer or a replacement service provider and, if requested by Customer, perform ancillary services for additional fees. However, no transition assistance or services shall be provided by Finexio until: (i) Customer and, if applicable, the replacement service provider, have executed Finexio’s confidentiality agreement; (ii) Customer has fully paid all outstanding amounts which are not disputed by Company in good faith; (iii) Customer has made a reasonable deposit or completely prepaid Finexio’s fees for transition services; and (iv) the parties mutually agree on a date for final transition of the Services. Notwithstanding any provision herein to the contrary, the Services Agreement shall continue on the same commercial terms and conditions until the completion of the transition services.
3.1 Confidential Information: Each Party acknowledges that it may receive Confidential Information of the other Party. For purposes of the Terms, “Confidential Information” means the Terms, including any schedule, exhibit, attachment or amendment hereto; any Customer information, and all proprietary information, data, trade secrets, business information, financial data and budgetary or proprietary business information, income or sales data or projections, Customer lists, Vendor information, business operations, policies, procedures and techniques, advertising summary or tracking reports or other reports generated in accordance with the Terms, schematics, ideas, techniques, know how, concepts, development tools and processes, computer printouts, computer programs, design drawings and manuals, and improvements, patents, copyrights, trade secrets or other intellectual property of any kind or nature, plans for future development and new product or service concepts, contemplated products or services, research, development, and strategies which a Party (“Discloser”) discloses, in writing, orally or visually, to the other Party (“Recipient”) or to which Recipient obtains access in connection with the negotiation or performance of the Terms. Confidential Information shall not include information that: (i) is already rightfully known to the Recipient at the time it obtains Confidential Information from the Discloser; (ii) is or becomes generally available to the public other than as a result of disclosure in breach of the Terms or any other confidentiality obligations; (iii) is lawfully received on a non-confidential basis from a third party authorized to disclose such information without restriction and without breach of the Terms; (iv) is contained in, or is capable of being discovered through examination of, publicly available records or materials; or (v) is developed by a Party without the use of any proprietary, non-public information provided by the other Party. Except as otherwise specifically provided in the Terms, each Party covenants and agrees that it will not, publish, communicate, divulge, or disclose to any Person any Confidential Information of the other Party, except in the performance of the terms of the Terms.
3.2 Ownership of Confidential Information: As between the Parties, each Party’s Confidential Information shall remain the property of that Party. Nothing contained in the Terms shall be construed as obligating any Party to disclose its Confidential Information to any other Party, or as granting to or conferring on a Party, expressly or impliedly, any rights or license to the Confidential Information of any other Party, and any such obligation or grant shall only be as provided by other provisions of the Terms.
3.3 Use and Disclosure of Confidential Information:
(a) Each Recipient shall hold and maintain in confidence the Confidential Information of the Discloser and shall use and disclose such Confidential Information only for the purpose of performing its obligations or exercising or enforcing its rights with respect to the Terms or as otherwise expressly permitted by the Terms.
(b) Each Recipient may disclose Confidential Information to the extent such Confidential Information is required to be disclosed by Applicable Law, including in the course of an examination by a regulatory authority with supervisory and examination authority over such Party; provided (i) that, except in connection with disclosure in the ordinary course of an examination by any such regulatory authority, the Party subject to such Applicable Law shall notify the Discloser of any such use or requirement prior to disclosure of any Confidential Information obtained from the Discloser in order to afford the Discloser an opportunity to seek a protective order to prevent or limit disclosure of the Confidential Information to third parties, and (ii) that the Party subject to such Applicable Law shall disclose Confidential Information of the Discloser only to the extent required by such Applicable Law.
(c) Each Recipient shall (i) limit access to the Discloser’s Confidential Information to those employees, authorized agents, vendors, consultants, service providers and Subcontractors who have a reasonable need to access such Confidential Information in connection with the Terms, and (ii) ensure that any Person with access to the Discloser’s Confidential Information is bound to maintain the confidentiality of Confidential Information in a manner consistent with the obligations of this Section 3. Liability for damages due to disclosure of the Confidential Information by any such third party shall be with the Recipient that disclosed the Confidential Information to the third party.
(d) Each Recipient agrees that any unauthorized use or disclosure of Confidential Information of the Discloser might cause immediate and irreparable harm to the Discloser for which money damages might not constitute an adequate remedy. In that event, the Recipient agrees that injunctive relief may be warranted in addition to any other remedies the Discloser may have. In addition, the Recipient shall promptly (but in no event more than twenty-four (24) hours after discovery of same) advise the Discloser by telephone and in writing via facsimile or e-mail to the Discloser’s designated representative of any security breach that may have compromised any of the Discloser’s Confidential Information, and of any unauthorized misappropriation, disclosure or use by any Person of the Confidential Information of the Discloser which may come to its attention and shall take all steps at its own expense reasonably requested by the Discloser to limit, stop or otherwise remedy such misappropriation, disclosure or use, including, but not limited to, notification to and cooperation and compliance with any regulatory authority. This Section 3 supplements any separate written confidentiality agreement or non-disclosure agreement between the Parties, and in the event any such agreement conflicts with the terms hereof, the Terms shall control.
(e) Except as otherwise contemplated in subsection (b) above, in the event that the Recipient is requested or becomes legally compelled to disclose any Confidential Information of the other Party, the Recipient will provide the Discloser with prompt written notice of such request(s) to enable the Discloser to seek a protective order to protect and preserve the confidential nature of the Confidential Information. In such event, each Party agrees that it will furnish only that portion of the Confidential Information which is legally required and will exercise reasonable efforts to obtain reliable assurance that confidential treatment will be accorded to that portion of the Confidential Information and other information which is being disclosed. Each Party shall immediately notify the other Party upon discovery of any loss or unauthorized disclosure of the Confidential Information of the other Party.
(f) Upon the later of the termination or expiration of the Terms or at any time upon the reasonable request of a Discloser, the Recipient shall return (or destroy if so directed by the Discloser) all Confidential Information of the Discloser in the possession of the Recipient or in the possession of any representative, contractor or third party of the Recipient. Any Confidential Information of the Discloser maintained in an electronic format by the Recipient shall be returned to the Discloser in an industry standard format or, at the option of the Discloser, deleted and removed from all computers, electronic databases and other media. Notwithstanding the foregoing, a Recipient in possession of tangible property containing the Confidential Information of the Discloser may retain one archived copy of such material for record retention requirements under Applicable Law, subject to the terms of the Terms, which may be used solely for regulatory purposes and may not be used for any other purpose. Compliance by the Recipient with this Section 3.3 shall be certified in writing by an appropriate officer of the Recipient within thirty (30) days of the termination or expiration of the Terms, which certification shall include a statement that no copies of Confidential Information of the Discloser have been retained, except as specifically provided by this Section 3.3.
3.4 Publicity: Notwithstanding anything to the contrary herein, Customer grants Finexio the right to disclose the name of Customer and the existence of the relationship between Customer and Finexio for purposes of marketing and advertising Finexio’s Services.
4. Intellectual Property Rights:
4.1 Ownership: Subject to the terms and conditions of the Terms, each Party and the Party’s Affiliates will exclusively retain all rights, title, and interests in and to Technology, and Intellectual Property Rights therein, conceived, developed, reduced to practice, created, or acquired (collectively, “Created”) by or on behalf of such Party or its Affiliate, whether Created prior to or after the Effective Date. Nothing contained in the Terms shall be construed as constituting a transfer or an assignment by one Party to the other Party of any Technology or Intellectual Property Rights, and except as expressly granted under the Terms or otherwise agreed to in writing by the Parties, neither Party grants the other Party any right, license, or covenant not to sue with respect to any Technology or Intellectual Property Rights. There are no implied licenses granted under the Terms.
4.2 Technology: Subject to the terms and conditions of the Terms, each Party on behalf of itself and its Affiliates hereby grants to the other Party, its Affiliates and its vendors, Subcontractors and third-party service providers during the Term, and under the terms and conditions of the Terms, a limited non-exclusive, royalty-free, fully paid up, non-assignable, non-sub-licensable, non-transferable (other than in accordance with Section 9.2), worldwide right and license to use, any items of Technology that the other Party provides or otherwise makes accessible to the other Party in connection with the Services, solely to the extent necessary for the other Party to exercise, perform and comply with its rights and obligations under the Terms in connection with the Services and solely during the Term. This license shall be further subject to any additional terms and restrictions as agreed by the Parties prior to or contemporaneous with the delivery of such Technology. For the avoidance of doubt, nothing herein shall be construed as obligating either Party to provide specific Technology to the other Party, except as expressly contemplated herein.
4.3 Marks: Subject to the terms and conditions of the Terms, each Party (“Mark Licensor”) hereby grants to each other Party (each, a “Mark Licensee”) during the Term a non-exclusive, royalty-free, non-assignable license to use (but not the right to sublicense) the Mark Licensor’s Marks in the United States solely in connection with the Services, and solely for the purpose, and in the format, form, and manner expressly approved in advance, in writing, by the Mark Licensor, which approval shall not be unreasonably withheld, conditioned or delayed. The Mark Licensor and its Affiliates shall retain its Intellectual Property Rights in the Mark Licensor’s Marks and all use of the Mark Licensor’s Marks by the Marks Licensee, and all goodwill arising out of such use, shall inure to the sole benefit of the Mark Licensor or its Affiliates. Other than the foregoing license rights, the Mark Licensee shall not obtain any right, title, or other interest in or to the Mark Licensor’s Marks by virtue of the Terms. Upon the later of the expiration or termination of the Terms, the foregoing license rights conveyed by Mark Licensor to Mark Licensee shall cease, and all such rights shall revert to Mark Licensor.
4.4 Feedback: Customer may, but is not required to, provide feedback to Finexio regarding the Services (“Feedback”). Except to the extent that the Parties have agreed in writing to a different set of rights in advance of the disclosure of such Feedback, Customer hereby grants to Finexio an irrevocable, perpetual, royalty-free right to use, disclose and otherwise exploit any Feedback, and the Intellectual Property Rights embodied therein for any purpose.
4.5 No Joint Intellectual Property Rights: No Joint Intellectual Property Rights. The Parties shall not be obligated to jointly develop any Technology in connection with the Terms and shall use best efforts not to do so. If the Parties, in their sole discretion, determine to jointly develop any Technology, the Parties shall first enter into a separate and binding written agreement confirming the scope of such joint development efforts and the respective rights of the Parties in any jointly developed Technology, including ownership of the Intellectual Property Rights in any such jointly developed Technology including any ideas, technology, designs, know-how, methods or processes jointly developed.
5. Representations and Warranties:
5.1 Customer Representations and Warranties: Customer hereby represents and warrants to Finexio that:
(a) The Terms are valid, binding, and enforceable against Customer in accordance with its terms.
(b) Customer entity is validly existing, in good standing and is authorized to conduct business in each state in which the nature of Customer’s activities hereunder makes such authorization necessary.
(c) Customer has the full power and authority to execute and deliver the Terms and to perform all its obligations under the Terms. The provisions of the Terms and the performance by the Customer of its obligations under the Terms are not in conflict with Customer’s charter, bylaws or any other organizational document to which Customer is a party or by which it is bound.
(d) As of the Effective Date of the Terms, there are no pending or, to the knowledge of Customer, threatened, claims or litigation against Customer that would adversely impact Customer’s ability to perform its obligations under the Terms.
5.2 Finexio Representations and Warranties: Finexio hereby represents and warrants to Customer that:
(a) The Terms are valid, binding, and enforceable against Finexio in accordance with its terms.
(b) Finexio is a Delaware corporation, validly existing, in good standing and is authorized to conduct business in each state in which the nature of Finexio’s activities hereunder makes such authorization necessary.
(c) Finexio has the full power and authority to execute and deliver the Terms and to perform all its obligations under the Terms. The provisions of the Terms and the performance by the Finexio of its obligations under the Terms are not in conflict with Finexio’s charter, bylaws or any other organizational document, agreement, contract, lease or obligation to which Finexio is a party or by which it is bound.
(d) As of the Effective Date of the Terms, there are no pending or, to the knowledge of Finexio, threatened, claims or litigation against Finexio that would adversely impact Finexio’s ability to perform its obligations under the Terms.
6.1 Customer Indemnification: Customer agrees to indemnify, defend and hold harmless Finexio, and its Affiliates, sureties, officers, directors, agents, employees, parents and subsidiaries, from and against any and all liability, damages, costs, or expenses, including reasonable legal fees and expenses, for any third party claim or demand (“Claim”) arising out of or related to:
(a) Customer’s breach of any representation, warranty, covenant or obligation under the Terms;
(b) Gross negligence, fraud or willful misconduct on the part of Customer or any of its officers, directors, employees, representatives, or any of their respective officers, directors and employees;
(c) Any actions taken by Finexio in accordance with or in good faith reliance upon information or instructions provided by Customer or any of its agents or representatives;
(d) Obligations owed to any Customer or other third party by Customer, or any third party retained by Customer; and
(e) Any actual or alleged infringement or misappropriation of any Intellectual Property Rights of any third party by Customer.
The defense obligation of Customer attaches if the Claim alleges any of the foregoing violations, breaches, acts or omissions.
6.2 Finexio Indemnification: Finexio agrees to indemnify, defend and hold harmless Customer and its Affiliates, sureties, officers, directors, agents, employees, parents and subsidiaries, from and against any and all Claims arising out of or related to:
(a) Finexio’s breach of any representation, warranty, covenant or obligation under the Terms;
(b) Gross negligence, fraud or willful misconduct on the part of Finexio, any of its officers, directors, employees, representatives, or any of their respective officers, directors and employees;
(c) Any actions taken by Customer in accordance with or in good faith reliance upon information or instructions provided by Finexio or its agents or representatives;
(d) Obligations owed to any third party by Finexio or any third party retained by it; and
(e) Any actual or alleged infringement or misappropriation of any intellectual property rights of any third party by Finexio.
The defense obligation of Finexio attaches if the Claim alleges any of the foregoing violations, breaches, acts or omissions.
6.3 Indemnification Procedures: If any Claim is asserted against either Party (the “Indemnified Party”) by any person who is not a party to the Terms in respect of which the Indemnified Party may be entitled to indemnification under the provisions of Sections 6.1 or 6.2 above, written notice of such Claim shall promptly be given to the Party from whom indemnification may be sought (the “Indemnifying Party”). The Indemnifying Party shall have the right, by notifying the Indemnified Party within ten (10) Business Days of its receipt of the notice of the Claim, to assume the entire control (subject to the right of the Indemnified Party to participate at the Indemnified Party’s expense and with counsel of the Indemnified Party’s choice) of the defense, compromise or settlement of the matter, including, at the Indemnifying Party’s expense, employment of counsel of the Indemnifying Party’s choice. The Indemnified Party must provide reasonable cooperation in the defense and the failure to do so will be deemed waiver by the Indemnified Party of any and all right to indemnification by the Indemnifying Party. The Indemnifying Party shall not compromise or settle a Claim against the Indemnified Party without the Indemnified Party’s prior written consent, which shall not be unreasonably withheld or delayed; provided that the Indemnifying Party may, however, effect a compromise or settlement of any action without the Indemnified Party’s consent if the following conditions are met: (a) there is no admission of guilt or liability by the Indemnified Party; (b) the sole relief provided is monetary damages that are paid in full by the Indemnifying Party; (c) the compromise or settlement entered into between the parties to the matter shall expressly provide that the compromise or settlement entered into between the parties, and all discussions between and among the parties to the matter surrounding the compromise or settlement, shall be kept confidential; such compromise or settlement also shall stipulate that no press releases or other public statements may be made concerning such compromise or settlement without the prior written consent of the Indemnified Party; and (d) the Indemnified Party is made aware of the proposed compromise or settlement as reasonably early as practicable, and the proposed compromise or settlement includes the claimant’s or the plaintiff’s unconditional release of the Indemnified Party from all liability in respect of the Claim.
7. Limitation of Liability; Disclaimer of Warranties:
7.1 Limitation of Liability: IN NO EVENT WILL FINEXIO (OR ANY OF ITS AGENTS, AFFILIATES,LICENSORS OR SUPPLIERS) BE LIABLE TO CUSTOMER FOR ANY INDIRECT, PUNITIVE,INCIDENTAL, SPECIAL, OR CONSEQUENTIAL DAMAGES, OR COST OF PROCUREMENT OFSUBSTITUTE GOODS, SERVICES OR TECHNOLOGY, ARISING OUT OF OR IN ANY WAYCONNECTED WITH THE USE OF THE SERVICES OR ANYTHING PROVIDED IN CONNECTION WITHTHE TERMS, THE DELAY OR INABILITY TO USE THE SERVICES OR ANYTHING PROVIDED INCONNECTION WITH THE TERMS OR OTHERWISE ARISING FROM THE TERMS, INCLUDINGWITHOUT LIMITATION, LOSS OF REVENUE OR ANTICIPATED PROFITS OR LOST BUSINESS ORLOST SALES, WHETHER BASED IN CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICTLIABILITY, OR OTHERWISE, EVEN IF FINEXIO HAS BEEN ADVISED OF THE POSSIBILITY OF DAMAGES. THE TOTAL LIABILITY OF FINEXIO TO CUSTOMER, WHETHER BASED INCONTRACT, TORT (INCLUDING NEGLIGENCE OR STRICT LIABILITY), OR OTHERWISE, WILLNOT EXCEED THE FEES PAID OR PAYABLE TO FINEXIO HEREUNDER IN THE TWELVE-MONTHPERIOD ENDING ON THE DATE THAT A CLAIM OR DEMAND IS FIRST ASSERTED. THEFOREGOING LIMITATIONS WILL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY.
7.2 Disclaimer of Warranties: THE SERVICES ARE PROVIDED “AS-IS,” WITHOUT WARRANTIES OF ANY KIND. FINEXIO (AND ITS AGENTS, AFFILIATES AND SUPPLIERS) HEREBY DISCLAIM ALL OTHER WARRANTIES, EXPRESS, IMPLIED, STATUTORY, OR OTHERWISE, RELATING TO OR ARISING OUT OF THE TERMS, INCLUDING, WITHOUT LIMITATION, ALL IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE AND NON-INFRINGEMENT.
8. Term and Termination:
8.1 Term: The Terms will commence on the Effective Date and continue in effect for as long as Finexio is performing Services pursuant to the Services Agreement, unless earlier terminated as provided therein (the “Term”).
(a) Customer may terminate these Terms upon thirty (30) days’ written notice to Finexio for Finexio’s material breach that remains uncured at the end of such notice period. Finexio may suspend the Services immediately upon written notice to Customer if Customer breaches any of the terms or conditions of the Terms or any of Customer’s representations, warranties or covenants hereunder, or may terminate the Terms upon thirty (30) days’ written notice to Customer for Customer’s material breach that remains uncured at the end of such notice period, provided that, in the event that Customer fails to pay any amounts due under the Terms, Finexio may terminate the Terms upon ten (10) days’ written notice to Customer. Upon expiration or termination of the Terms, Customer’s right to use the Services will immediately cease.
(b) In addition to any other termination rights provided elsewhere in the Terms, either Party shall have the right to terminate the Terms upon occurrence of one or more of the following events:
(i) Either Party: (A) voluntarily commences any proceeding or filing any petition seeking relief under Title 11 of the United States Code or any other federal, state or foreign bankruptcy, insolvency, liquidation or similar law; (B) applies for or consents to the appointment of a receiver, trustee, custodian, sequestrator or similar official for such Party or for a substantial part of its property or assets, (C) makes a general assignment for the benefit of creditors, or (D) takes corporate action for the purpose of effecting any of the foregoing;
(ii) The commencement of an involuntary proceeding or the filing of an involuntary proceeding or the filing of an involuntary petition in a court or competent jurisdiction seeking: (A) relief in respect for any other Party, or of a substantial part of its property or assets under Title 11 of the United States Code or any other federal, state or foreign bankruptcy, insolvency, receivership or similar law, (B) the appointment of a receiver, trustee, custodian, sequestrator or similar office for the other Party for a substantial part of its property or assets, or (C) the winding up or liquidation, of the other Party, if such proceeding or petition shall continue un–dismissed for sixty (60) days or an order or decree approving or ordering any of the foregoing shall continue unstayed and in effect for sixty (60) days;
(iii) Upon any change to or enactment of any Applicable Law, or published change in the interpretation thereof by any regulatory authority, which would have a material adverse effect upon: (A) the subject matter hereof; (B) such Party’s ability to perform its obligations hereunder; or (C) such Party’s expected risks or benefits under the Terms; provided that the Parties, after good faith discussions, cannot find a mutually agreeable solution within a reasonable amount of time;
(iv) Violation of Applicable Law relating to the performance of the Terms rendering either of the Parties unable to substantially perform the Terms, provided that the Parties cannot find a legally workable solution to avoid violating Applicable Law within a reasonable amount of time; or
(v) Upon direction from any regulatory authority for either Party to cease or materially limit performance of such Party’s obligations under the Terms.
8.3 Rights and Obligations Upon Termination: The Parties’ rights to terminate the Terms will be in addition to, and not in lieu of, any other remedies they may have by virtue of (a) a breach or default with respect to the Terms or (b) any other event which permits a termination. Furthermore, the termination or expiration of the Terms will not relieve the Parties of any obligations due at or before the time of such termination or expiration or prejudice any claim of either Party.
9.1 Notices: Except as otherwise expressly provided herein, all notices to be given to a Party hereunder shall be effective only when made in writing and actually delivered (by mail, overnight courier, special courier or as mutually agreed upon) to such Party at the address shown on the signature page below for such Party, or such other address of which the Party to receive such notice has notified the other Party pursuant to this Section 9.1.
9.2 Assignment: Neither Party may assign the Terms to any third party without the prior written consent of the other Party, provided however, (i) either Party may, upon written notice to the other Party, assign the Terms to any entity Controlling, Controlled by, or under common Control with the assigning Party, and (ii) Finexio may, upon written notice to Customer, assign the Terms or to any entity merging with or acquiring substantially all of the stock or assets of Finexio.
9.3 Entire Agreement: Each Party agrees that the Terms, including all schedules and exhibits hereto, and all documents referenced herein, is the complete and exclusive statement of the mutual understanding of the Parties, and supersedes and cancels all previous written and oral agreements, communications and other understandings, relating to the subject matter of the Terms. Each Party acknowledges that it is not relying on any information, conditions, covenants, warranties or representations provided to it or to any of its Affiliates or representatives at any time except as expressly stated in the Terms.
9.4 Survival, Severability and Waiver: All provisions of the Terms which by their nature are meant to extend beyond the expiration or termination of the Terms and will survive the expiration or termination of the Terms. If any provision of the Terms is found to be unenforceable or invalid, that provision will be limited or eliminated to the minimum extent necessary so that the remaining provisions of the Terms will otherwise remain in full force and effect and enforceable. The failure by either Party to insist upon strict performance of any of the provisions contained in the Terms will in no way constitute a waiver of its rights as set forth in the Terms, at law or in equity, or a waiver of any other provisions or subsequent default by the other Party in the performance of or compliance with any of the terms and conditions set forth in the Terms.
9.5 Force Majeure: Finexio is not responsible for any breach or delay in the performance of its obligations pursuant to the Terms for reason of fire, flood, riot, act of terrorism, strike, labor conflict, freight embargo, delay in shipping, fortuitous event, act of a public enemy, of war, of civil disorder, of interruption, of a failure or an interruption of the Internet, phone service, or any other interconnection service or of electronic or mechanical equipment, of any law, of any rule or of any regulation, current or future, or of any act on the part of a government that would delay or prevent the performance of its obligations pursuant to the Terms, or for any other cause reasonably beyond the control of Finexio.
9.6 Relationship of Parties: Each Party agrees that, except as otherwise provided herein with respect to Finexio acting as the authorized agent of Customer, they are independent contractors to each other in performing their respective obligations hereunder. Nothing in the Terms or in the working relationship being established and developed hereunder will be deemed or is intended to be deemed, nor will it cause, any of the Parties to be treated as partners, joint ventures, or otherwise as joint associates for profit. Customer does not have any authority of any kind to bind Finexio in any respect whatsoever.
9.7 No Third-Party Beneficiaries: Except as stated in the Terms, the Terms do not create any right or cause of action in or on behalf of any person or entity other than the Parties.
9.8 Dispute Resolution: The Terms will be governed by, construed and enforced in accordance with the laws of the State of Florida, without regard to that state’s conflict of laws principles. Jurisdiction and venue for the formal resolution of any disputes relating to the Terms will lie exclusively in the Federal and State Courts located in Orlando, Florida. The Parties agree to waive any right to have a jury participate in the resolution of any dispute or claim between the Parties or any of their respective Affiliates which may arise under THE TERMS. Each Party agrees that service of process in any action or proceeding hereunder may be made upon such Party by certified mail, return receipt requested, to the address for notice set forth herein. In any action or proceeding between the Parties to enforce rights under the Terms, the prevailing Party will be entitled to recover costs and attorneys’ fees from the other Party.
9.9 Construction: The headings, captions, headers, footers and version numbers contained in the Terms are inserted for convenience only and shall not affect the meaning or interpretation of the Terms. The singular includes the plural, and the plural includes the singular. All references to “herein,” “hereunder,” “hereinabove,” or like words shall refer to the Terms as a whole and not to any particular section, subsection, or clause contained in the Terms. The terms “include” and “including” are not limiting. Reference to any agreement or other contract includes any permitted modifications, supplements, amendments, and replacements.
9.10 Amendment: Any term of the Terms may be amended, modified or terminated and the observance of any term of the Terms may be waived only with the prior written consent of the Parties.
1. Definitions: Except as otherwise specifically indicated, the following capitalized terms have the following meanings in the Terms (such meanings to be equally applicable to both the singular and plural forms of the terms defined).
- “Affiliate” means, with respect to any Person, any other Person that directly or indirectly Controls, is Controlled by, or is under common Control with such Person.
- “Applicable Law” means any and all applicable laws, treaties, conventions, directives, regulations, ordinances, and judicial decisions in courts and tribunals of competent jurisdiction that relate to the Services or a Party, including any subsequent amendments, modifications and revisions thereto, or subsequent versions thereof.
- “Bank” means CASS Commercial Bank or such other federally-insured depository institution as Finexio may designate from time to time.
- “Business Day” means any day other than a Saturday, Sunday or a day on which banks in the State of Florida are not open for business.
- “Claim” has the meaning set forth in Section 6.1.
- “Confidential Information” has the meaning set forth in Section 3.1.
- “Control” means, with respect to any Person, the possession, direct or indirect, of the power to vote fifty-one percent (51%) or more of the securities that have ordinary voting power for the election of directors of such Person, or to direct or cause the direction of the management and policies of such Person, whether through ownership of voting securities or by contract or otherwise.
- “Created” has the meaning set forth in Section 4.1.
- “Customer” means a customer of Customer.
- “Customer Data” has the meaning set forth in Section 2.3.
- “FBO Account” has the meaning set forth in Section 2.2.
- “Feedback” has the meaning set forth in Section 4.4.
- “Finexio Data” has the meaning set forth in Section 2.3.
- “HIPAA” has the meaning set forth in Section 2.3.
- “Indemnified Party” has the meaning set forth in Section 6.3.
- “Indemnifying Party” has the meaning set forth in Section 6.3.
- “Intellectual Property Rights” means all past, present, and future rights of the following types, which may exist or be created under the laws of any jurisdiction in the world: (a) rights associated with works of authorship, including exclusive exploitation rights, copyrights, moral rights, publicity and privacy rights, and mask works; (b) trademarks, and trade name rights and similar rights, service marks, domain names, trade dress, logos, and other distinctive brand features, whether or not registered; (c) trade secret rights; (d) patents and industrial property rights; (e) publicity and privacy rights in marketing, advertising, or other public facing materials (including rights to use the name, likeness, image of persons); and (f) rights in or relating to registrations, renewals, extensions, combinations, divisions, and reissues of, and applications for, any of the rights referred to in clauses “(a)” through “(d)” above.
- “Mark Licensee” has the meaning set forth in Section 4.3.
- “Mark Licensor” has the meaning set forth in Section 4.3.
- “Marks” means, with respect to a Party, the trademarks, service marks (whether registered or at common law), trade names, business names, logos, internet domain names or other proprietary designs and designations service marks, including names and other distinctive marks or logos, which identify such Party.
- “Operating Regulations” means the by-laws, operating regulations, terms and conditions, rules, guidelines, policies and procedures of any card association or payment network used to process any Payment, or applicable to any payment method used to make any Payment, through the Payment Processing Services, as any or all of the foregoing may be amended and in effect from time to time.
- “Person” means any natural or legal person, including any corporation, partnership, limited liability company, trust or unincorporated association or other entity.
- “Platform” has the meaning set forth in Section 2.1.
- “Primary Contact” has the meaning set forth in Section 2.3.
- “Qualified Volume” means revenue generating payments such as virtual cards facilitated using Finexio’s Services denominated in US dollars.
- “Recipient” has the meaning set forth in Section 3.1.
- “Services” means the payment solutions, technology and related services provided or supported by Finexio pursuant to the terms of the Terms.
- “Subcontractor” has the meaning set forth in Section 2.1.
- “Taxes” has the meaning set forth in Section 2.1.
- “Technology” means any processes, methods, know-how, designs, information, data, software programs in both source and object codes, application programming interfaces, documentations, specifications, techniques, software development toolkits, products, devices, apparatuses, and other forms of technology, and all Intellectual Property Rights therein but excluding the Marks.
- “Vendor” means any payee that Finexio has facilitated payment to or otherwise has a relationship with directly or indirectly as part providing Finexio’s Services.
- “Volume” means the dollar value of payments facilitated using Finexio’s Services denominated in US dollars.
PAYMENT CONFIRMATION AGREEMENT
THIS PAYMENT CONFIRMATION AGREEMENT (as amended, supplemented or modified from time to time, this “Agreement”), is between (“Customer”, “you”, “Buyer”), and Finexio SCF, LLC, a Delaware limited liability company (together with its successors and assigns, “Finexio”).
WHEREAS, Buyer from time to time acquires goods or services in the ordinary course of business from suppliers and has or will have certain accounts payable owing and payable by Buyer to such suppliers;
WHEREAS, subject to, and in accordance with the terms of this Agreement, with respect to Finexio’s purchase of such payables from suppliers from time to time, Finexio will act as payment agent for Buyer; and
WHEREAS, the parties desire to set out the terms and conditions pursuant to which Finexio will act as payment agent for Buyer with respect to such payables.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows:
Section 1. Definitions. The following terms have the respective meanings indicated below:
1.1 “Affiliate” shall mean, as to any Person, any other Person (a) that, directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, such Person, (b) who is a director or officer (i) of such Person, (ii) of any subsidiary of such Person, or (iii) of any Person described in clause (a) above with respect to such Person, or (c) which, directly or indirectly through one or more intermediaries, is the beneficial or record owner (as defined in Rule 13d-3 of the Securities Exchange Act of 1934, as amended, as the same is in effect on the date hereof) of ten percent (10%) or more of any class of the outstanding voting securities or other equity or ownership interests of such Person.
1.2 “Applicable Law” shall mean any and all federal, state, local and/or applicable foreign statutes, ordinances, rules, regulations, court orders and decrees, administrative orders and decrees, and other legal requirements of any and every conceivable type applicable to the Payables, Finexio and the applicable Supplier and/or Buyer.
1.3 “Business Day” shall mean any day that is not a Saturday, Sunday or other day on which commercial banks in New York, New York are authorized or required by law to be closed.
1.4 “Collections Account” shall have the meaning set forth in Section 2.2(a).
1.5 “Confirmed Payable” shall have the meaning set forth in Section 2.1.
1.6 “Contract” shall mean a contract between Buyer and a Supplier, or an invoice sent or to be sent by a Supplier, pursuant to or under which a Payable shall arise or be created, or which evidences a Payable.
1.7 “Finexio Platform” shall mean the system of processing, paying and settlement related to the purchase, sale and payment of Payables through one or more computerized systems and related services, equipment and software, including, without limitation, e-mail and Internet or intranet websites, for purposes of (a) the offer of such Payables that are subject to this Agreement by a Supplier to Finexio for sale and the purchase by Finexio from such Supplier of such Payables subject to the terms and conditions of the applicable Receivables Purchase Agreement, and (b) payments and settlements in respect of such Payables.
1.8 “Governmental Authority” shall mean any federal, state, municipal, national, local or other governmental department, court, commission, board, bureau, agency or instrumentality or political subdivision thereof, or any entity or officer exercising executive, legislative or judicial, regulatory or administrative functions of or pertaining to any government or any court, in each case, whether of the United States or a state, territory or possession thereof, a foreign sovereign entity or country or jurisdiction or the District of Columbia.
1.9 “Insolvency Event” shall mean, with respect to any Person, (a) the filing by a specified Person of a petition for its bankruptcy or reorganization under the U.S. Bankruptcy Code or the laws of any state of the United States or the filing by a specified Person of a similar petition in any other jurisdiction, (b) the commencement against a specified Person with or without its consent or approval of any proceeding seeking its bankruptcy, liquidation or reorganization, appointment of a receiver or trustee of its assets, or comparable relief, which proceeding has not been dismissed or discontinued within thirty (30) days after its filing, (c) the conversion at any time of an involuntary proceeding of the type described in clause (b) into a voluntary proceeding with the consent of a specified Person, (d) the entry by a court of competent jurisdiction of a final and unappealable order granting any relief of the type described in clause (a) or (b) above, (e) failure by such Person generally to pay its debts as such debts become due or admission by such Person in writing its inability to pay its debts generally, (f) any assignment for the benefit of its creditors or (g) taking by such Person of any action to authorize any of the actions set forth in this definition.
1.10 “Invoice Amount” shall mean, with respect to a Payable, the amount of such Payable, as confirmed by Buyer through the Finexio Platform.
1.11 “Maturity Date” shall mean, with respect to a Payable, the maturity date of such Receivable, as confirmed by the Buyer through the Finexio Platform.
1.12 “Payables” shall mean accounts owing and payable to a Supplier by Buyer arising pursuant to the sale by such Supplier of goods or services in the ordinary course of business to Buyer.
1.13 “Person” or “person” shall mean any individual, sole proprietorship, partnership, corporation (including any corporation which elects subchapter S status under the US Internal Revenue Code), limited liability company, limited liability partnership, business trust,
unincorporated association, joint stock corporation, trust, joint venture or other entity or any Governmental Authority.
1.14 “Purchased Confirmed Payable” shall have the meaning set for forth in Section 2.2(a).
1.15 “Receivables Purchase Agreement” shall mean each Receivables Purchase Agreement entered into by and between a Supplier and Finexio with respect to Confirmed Payables purchased by Finexio.
1.16 “Solvent” shall mean, at any time with respect to any Person, that at such time such Person (a) is able to pay its debts as they mature and has (and has a reasonable basis to believe it will continue to have) sufficient capital (and not unreasonably small capital) to carry on its business consistent with its practices as of the date hereof, and (b) the assets and properties of such Person at a fair valuation are greater than the indebtedness of such Person, and including subordinated and contingent liabilities computed at the amount which such person has a reasonable basis to believe represents an amount that can reasonably be expected to become an actual or matured liability.
1.17 “Supplier” shall mean each of Buyer’s suppliers that has entered into a Receivables Purchase Agreement, together with its successors and assigns.
1.18 “Transaction Documents” shall mean, collectively, the following (as the same now or hereafter exist or may at any time be amended, supplemented, restated or replaced): (a) this Agreement; and (b) the other documents to be executed and delivered in connection with any of the foregoing; sometimes being referred to herein individually as a “Transaction Document”.
1.19 “UCC” shall mean the Uniform Commercial Code as in effect in the State of New York, and any successor statute, as in effect from time to time.
Section 2. Confirmed Payables.
2.1 Confirmed Payables. Buyer and Suppliers may from time-to-time notify each other of Payables through the Finexio Platform. In relation to each such Payable, Buyer shall notify Finexio using the Finexio Platform of the Invoice Amount, the Maturity Date and such other details reasonably requested by Buyer with respect to such Payable, and Buyer’s agreement to pay such Payable (each Payable so notified by Buyer, a “Confirmed Payable”).
(a) In relation to each Confirmed Payable that Buyer has been notified through the Finexio Platform has been purchased by Finexio (each such Confirmed Payable, a “Purchased Confirmed Payable”), Buyer shall settle the same by payment of the Invoice Amount of such Purchased Confirmed Payable on the Maturity Date of such Purchased Confirmed Payable to the account specified in Exhibit A (such account, together with such other account(s) that Finexio may from time-to-time notify Buyer, the “Collections Account”).
(b) Buyer’s obligation to settle Purchased Confirmed Payables is irrevocable, absolute and unconditional and is not subject to any claim, abatement, deduction, reduction or setoff of any kind, including, without limitation, by reason of any default or dispute arising under the Contract relating to such Confirmed Payable.
2.3 Transfer of Confirmed Payables. Buyer acknowledges and agrees that (a) Finexio and each Supplier are party to a Receivables Purchase Agreement, pursuant to, and subject to terms and conditions of, which, such Supplier may offer to sell Confirmed Payables and certain related rights of such Supplier to Finexio, and Finexio may, in its sole discretion, elect to accept such offer and purchase such Confirmed Payables, in exchange for consideration as set forth therein and (b) Finexio may from time to time, in its sole discretion, sell or otherwise dispose of all or any portion of Purchased Confirmed Payables or any interest therein to third parties, on such terms and subject to conditions as mutually agreed by Finexio and such purchasers; provided, however, that (i) no such sale or disposal shall impose on Buyer any greater obligation or liability under this Agreement than it would have been under if no such sale or disposal had taken place, and (ii) Finexio shall not sell or otherwise dispose of all or any portion of the Purchased Confirmed Payables or any interest therein to a law firm. Buyer hereby consents to any such sales, disposals and purchases of Confirmed Payables.
2.4 No Assumption of Obligations Relating to Payables. Finexio and any third party purchaser or acquirer of a Payable shall not have any obligation or liability to Buyer or any obligor in respect of a Payable (including any obligation to perform any of the obligations of any Supplier under any Payable or related Contract). No such obligation or liability is intended to be assumed hereunder by Finexio or any third party purchaser or acquirer and any such assumption is expressly disclaimed.
Section 3. Finexio Platform.
3.1 Use of Finexio Platform. Buyer hereby agrees to use the Finexio Platform in accordance, and comply, with policies and procedures of Finexio with respect thereto and in effect from time to time in all respects. To the extent necessary, Finexio shall grant a license to Buyer for the use of the Finexio Platform, on such terms and subject to such conditions, as reasonably determined by Finexio.
Section 4. Representations and Warranties.
4.1 Mutual Representations and Warranties. Each of Buyer and Finexio represents and warrants as follows: (a) it has been duly organized, is validly existing and in good standing, with the power and authority to conduct its business and enter into each Transaction Document and perform its obligations thereunder; (b) it has obtained all necessary licenses, qualifications and approvals in all jurisdictions in which the conduct of its business requires it; (c) each Transaction Document executed and delivered by it will constitute, a legal, valid, and binding obligation of such party, enforceable in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization or other similar laws; and (d) the consummation of the transactions contemplated by the Transaction Documents to which it is a party, and the fulfillment of the terms hereof or thereof will not conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or passage of time or both) a default under its organizational documents or any material agreement to which it is a party or by which it is bound or violate any law or any order, rule, or regulation applicable to it.
4.2 Buyer Representations and Warranties. In order to induce Finexio to enter into this Agreement and to make purchases hereunder, Buyer hereby represents and warrants to Finexio as of the date hereof and on each date that Finexio notifies Buyer of the purchase of a Confirmed Payable through the Finexio Platform:
(a) Proceedings. There is no suit, action, litigation, investigation or proceeding, or governmental or administrative investigation or inquiry, pending or to the best of Buyer’s knowledge, threatened, before any Governmental Authority, asserting the invalidity of any Payable or any Transaction Document to which Buyer is a party, seeking to prevent the consummation of any of the transactions contemplated by any Transaction Document to which Buyer is a party, that would prevent or prohibit Buyer from complying in full with the provisions of this Agreement, or that would have any material impairment of the right or ability of Buyer to carry on its business substantially as now conducted, or in any material liability on the part of Buyer.
(b) Government Approvals. No authorization or approval or other action by, and no notice to or filing with, any Governmental Authority is required for Buyer’s due execution, delivery and performance of any Transaction Document to which it is a party.
(c) Financial Condition. Buyer is Solvent. There is no outstanding or pending petition for the winding up, liquidation or bankruptcy of Buyer. There has been no event that results, or would reasonably be expected to result, in (i) a material adverse change in (A) the business, condition (financial or otherwise), operations, commercial relationships with any Supplier or properties of Buyer, or (B) the ability of Buyer to fulfill its obligations to Finexio under this Agreement or any other Transaction Documents, or (ii) the impairment of the validity or enforceability of, or the rights, remedies or benefits available to, Finexio with respect to Buyer since its last fiscal year end financial statements. Upon request by Finexio, Buyer shall provide such financial information in respect of itself as may be reasonably requested by Finexio from time to time.
(d) Quality of Title. Each Payable is represented by a valid Contract, has not been assigned or pledged, and Buyer is not in default of any of its obligations under any Transaction Document. Each such Payable is freely assignable without consent, condition or restriction. No effective financing statement or other instrument similar in effect covering any such Payables is on file in any recording office except such as may be filed (i) in favor of a Supplier in accordance with the Contracts, or (ii) in favor of Finexio in accordance with the Receivables Purchase Agreement. Such Payable is not subject to any right of rescission, set-off, counterclaim or defense, nor will the operation of any of the terms of the Transaction Documents, or the exercise of any right thereunder, render any Transaction Document unenforceable, in whole or in part and no such right of rescission, set-off, counterclaim or defense has been asserted with respect thereto.
(e) Accuracy of Information. No information at any time furnished in writing (including in electronic form) by Buyer to Finexio for purposes of or in connection with any Transaction Document or any transaction contemplated hereby or thereby is, or will be, inaccurate in any material respect as of the date it was furnished or as of the date as of which
such information is dated or certified, or omits or will omit to state any material fact necessary to make such information not materially misleading.
Section 5. Buyer Covenants.
5.1 Affirmative Covenants.
(a) Compliance with Laws, Etc. Buyer will comply in all material respects with all Applicable Laws, licenses, approvals, orders and other permits applicable to it and duly observe in all material respects all requirements of any Governmental Authority.
(b) Preservation of Corporate Existence. Buyer will preserve, renew and keep in full force and effect its corporate or limited liability company existence and rights and franchises with respect thereto and maintain in full force and effect all licenses, trademarks, tradenames, approvals, authorizations, leases, contracts and permits necessary to carry on its business.
(c) Payables Review. Buyer will, from time to time as requested by Finexio, at reasonable times and upon reasonable prior notice, provide Finexio electronic copies of records and data and such other records and data as Finexio may reasonably request, as well as access to employees who have relevant knowledge, related to Purchased Confirmed Payables, for the purposes of managing, verifying, and auditing the records and data related to Purchased Confirmed Payables and ensuring accurate payments under the terms of the Transaction Documents. To the extent such documentation contains attorney-client privileged information, Buyer may redact sufficient information to conceal the identity of any information subject to attorney-client privilege.
(d) Keeping of Records and Books of Account. Buyer will maintain accurate and complete books, records, accounts and other information relating to Purchased Confirmed Payables.
(e) Performance and Compliance with Payables and Contracts. Buyer will, at its expense, timely and fully perform and comply in all material respects with all provisions, covenants and other promises required to be observed by it under the Contracts and all purchase orders and other agreements related to Purchased Confirmed Payables.
(f) Location of Records. Buyer will keep its principal place of business and chief executive office and the offices where it keeps its books and records at the address as provided to Finexio as of the date hereof or at such other locations as Buyer may establish after the date hereof within the continental United States, provided Buyer gives Finexio thirty (30) days prior written notice of the intended opening of any such new location and executes and delivers.
(g) Marking of Records and Data Processing Reports. Buyer will mark its records (whether electronic or otherwise) which relate to Purchased Confirmed Payables with a legend, acceptable to Finexio, evidencing that Purchased Confirmed Payables are subject to this
Agreement. In the event that any such electronic records are printed and distributed or shown to any person other than Buyer or Finexio, such legend shall be included with such printed records.
(h) Contract Breach: Buyer will notify Finexio of any dispute or default arising under a Contract immediately upon becoming aware of the same.
(i Supplier Insolvency: Buyer will notify Finexio of an Insolvency Event in relation a Supplier immediately upon becoming aware of the same.
5.2 Negative Covenants.
(a) Payables Amendments. Buyer will not, without Finexio’s prior written consent, agree to any extension of the time for payment, or reduction of the amount, of any Purchased Confirmed Payables, compromise, compound or settle the same, or agree to a release, in whole or in part, from payment thereof, or make any other amendments, waivers, modifications, renewals, supplementations or restatements to any terms of Purchased Confirmed Payables.
Section 6. Additional Rights and Obligations in respect of Confirmed Payables.
6.1 Responsibilities of Buyer.
- Settlement of Confirmed Payables; Rights of Finexio. Buyer shall pay all amounts payable in respect of any Purchased Confirmed Payables directly to Finexio as set forth herein. Any payments or collections in respect of Purchased Confirmed Payables and any remittances, checks, bills and other proceeds of Purchased Confirmed Payables shall be the absolute property of Finexio, and Finexio shall be entitled to deal with the same in its sole discretion.
6.2 Further Action Evidencing Purchases.
(a) Additional Documents and Actions. From time to time, at its expense, Buyer will promptly execute and deliver all further instruments and documents, and take all further action that Finexio may reasonably request in order to enable Finexio to exercise or enforce any of its rights under this Agreement or any other Transaction Document.
Section 7. Termination
7.1 Rights to Terminate. Finexio or Buyer may each terminate this Agreement at any time upon thirty (30) days’ written notice to the other party. In addition, Finexio may terminate this Agreement immediately upon written notice to Buyer in the event:
(a) Buyer fails to pay any obligations to Finexio when due;
(b) Buyer fails to perform any of the covenants contained in any Transaction Document;
(c) any representation, warranty or statement of fact made by Buyer to Finexio in any Transaction Document or otherwise in connection with the transactions contemplated hereunder shall when made or deemed made be false or misleading in any material respect; or
(d) Buyer dissolves or suspends or discontinues doing business or shall be subject to an Insolvency Event.
7.2 Effect of Termination. In the event that Finexio terminates this Agreement as a result of events described in Section 7.1, all amounts then owing from Buyer in respect of any Purchased Confirmed Payables or hereunder shall be immediately due and payable, and Finexio shall be entitled to exercise any rights and remedies available to Finexio at law or equity. Without in any way limiting the forgoing, termination shall not affect any rights created or obligations incurred under this Agreement prior to termination.
Section 8. Indemnification
8.1 Indemnities by Buyer. Without limiting any other rights which Finexio may have hereunder or under Applicable Law, Buyer hereby agrees to indemnify Finexio and its assigns (each of the foregoing Persons being individually called a “Finexio Indemnified Party”), on demand, from and against any and all damages, losses, claims, judgments, liabilities and related costs and expenses, including reasonable attorneys’ fees and disbursements (all of the foregoing being collectively called “Finexio Indemnified Amounts”) arising out of or as a result of the breach of any representation or warranty made by Buyer under or in connection with this Agreement, any failure of Buyer to perform its duties or obligations in accordance with the provisions of this Agreement, any amounts Finexio may be required to surrender or return as provided herein and any taxes and any liability related thereto that may at any time be asserted in respect of the transactions contemplated hereunder or related to Purchased Confirmed Payables (but not taxes imposed on Finexio with respect to its overall net income); excluding, however, Finexio Indemnified Amounts to the extent resulting from gross negligence or willful misconduct on the part of such Finexio Indemnified Party.
8.2 Indemnities by Finexio. Without limiting any other rights which Buyer may have hereunder or under Applicable Law, Finexio hereby agrees to indemnify Buyer and its assigns (each of the foregoing Persons being individually called a “Buyer Indemnified Party”), on demand, from and against any and all damages, losses, claims, judgments, liabilities and related costs and expenses, including reasonable attorneys’ fees and disbursements (all of the foregoing being collectively called “Buyer Indemnified Amounts”) arising out of or as a result of the breach of any representation or warranty made by Finexio under or in connection with this Agreement, any failure of Finexio to perform its duties or obligations in accordance with the provisions of this Agreement, any amounts Buyer may be required to surrender or return as provided herein and any taxes and any liability related thereto that may at any time be asserted in respect of the transactions contemplated hereunder or related to Purchased Confirmed Payables (but not taxes imposed on Buyer with respect to its overall net income or that were included on the original invoice that corresponds with the Purchased Confirmed Payable); excluding, however, Buyer Indemnified Amounts to the extent resulting from gross negligence or willful misconduct on the part of such Buyer Indemnified Party.
8.3 Limitation on Claims.
(a) Finexio and Buyer each agrees not to assert, and hereby waives, any claim against the other party on any theory of liability for special, indirect, exemplary, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, any Transaction Document or any transaction contemplated hereby or thereby.
(b) Finexio and Buyer will each be excused from the performance of its obligations under this Agreement (other than payment obligations), and shall have no liability to the other party, for failure of, or delay in, its performance under this Agreement resulting from, in whole or in part, delays caused by any act of God, natural disaster, fire or other catastrophe, war (whether declared or not), civil disturbance, strikes, pandemic, court order, force majeure, electrical or computer failure, interruption of communication or computer facilities, or any other event beyond its control. Finexio shall be entitled to rely conclusively upon any notice or instruction it receives from Buyer, and shall have no obligation to investigate or verify the authenticity or correctness of any such notice or instruction.
Section 9. Miscellaneous
9.1 Amendments. The provisions of this Agreement may from time to time be amended, modified or waived only in writing and signed by Finexio and Buyer. Any amendment, waiver or consent effected in accordance with the terms hereof shall be effective only in the specific instance and for the specific purpose for which given.
9.2 Notices, Etc.
Except as otherwise expressly provided herein, all notices to be given to a Party hereunder shall be effective only when made in writing and actually delivered (by mail, overnight courier, special courier or as mutually agreed upon) to such Party at the address shown on the signature page below for such Party, or such other address of which the Party to receive such notice has notified the other Party pursuant to this Section 9.1.
If to Finexio:
924 N Magnolia Avenue
Suite 202 PMB 1310
Orlando FL 32803
Attention: Ernest Rolfson
Email Address: firstname.lastname@example.org
(a) Notices and other communications to Finexio and Buyer hereunder may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by Finexio or as otherwise determined by Finexio. All such notices and other communications through the Finexio Platform or otherwise delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) (i) are and shall be deemed to be “authenticated” (as such term is defined in the UCC) for purposes of any agreements, records, demands, notices or other communications, as the case may be, and (ii) in the case notices and communications effected through the Finexio Platform, are and shall be deemed received on the date when recorded on the Finexio Platform, whether or not Buyer may have actually accessed and used the Finexio Platform on or after the date such notice was so recorded.
9.3 No Waiver; Cumulative Remedies. No failure or delay on the part of Finexio or Buyer in exercising any power or right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power or right preclude any other or further exercise thereof or the exercise of any other power or right. No notice to or demand on Finexio or Buyer in any case shall entitle it to any notice or demand in similar or other circumstances. No waiver or approval by Finexio under this Agreement shall, except as may otherwise be stated in such waiver or approval, be applicable to subsequent transactions. The remedies herein provided are cumulative and not exclusive of any remedies provided by law.
9.4 Binding Effect; Assignability; Survival of Provisions. This Agreement shall be binding upon and inure to the benefit of Finexio, Buyer and each of their respective successors and permitted assigns. Buyer may not assign its rights hereunder or any interest herein without the prior written consent of Finexio. Finexio shall have the right without notice to or consent of Buyer to sell, transfer, subdivide, negotiate or grant participations in all or any part of any Transaction Document on such terms as Finexio determines; provided, however, that (a) no such sale, transfer, subdivision, negotiation or participation shall impose on Buyer any greater obligation or liability under this Agreement than it would have been under if no such sale, transfer, subdivision, negotiation or participation had taken place, and (ii) Finexio shall not sell, transfer, subdivide, negotiate or grant participations in all or any part of this Agreement to a law firm. The Agreement shall create and constitute the continuing obligations of the parties hereto in accordance with its terms, and shall remain in full force and effect until the date after the termination hereof on which Finexio has received payment in full in cash for all Purchased Confirmed Payables and Buyer has paid and performed all of its obligations under the Transaction Documents in full. The provisions of Section 8 and Section 9.10 shall survive and remain in full force and effect after any termination of this Agreement.
9.5 Governing Law; Consent to Jurisdiction. The validity, interpretation and enforcement of this Agreement and any dispute arising out of the relationship between the parties hereto, whether in contract, tort, equity or otherwise, shall be governed by the internal laws of the State of New York but excluding any principles of conflict of laws or other rule of law that would cause the application of the law of any jurisdiction other than the laws of the State of New York. Each party hereto irrevocably consents and submits to the non-exclusive jurisdiction of the Supreme Court of New York in New York County and the United States District Court for the Southern District of New York and waive any objection based on venue or forum non conveniens with respect to any action instituted therein arising under this Agreement or in any way connected with or related or incidental to the dealings of the parties hereto in respect of this agreement or the transactions related hereto, in each case whether now existing or hereafter arising, and whether in contract, tort, equity or otherwise, and agree that any dispute with respect to any such matters shall be heard only in the courts described above.
9.6 Waiver of Jury Trial. EACH PARTY HERETO HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION ARISING UNDER THIS AGREEMENT OR IN ANY WAY CONNECTED WITH THE DEALINGS OF THE PARTIES HERETO IN RESPECT OF THIS AGREEMENT OR THE TRANSACTIONS RELATED HERETO IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY OR OTHERWISE.
9.7 Costs and Expenses. In addition to the obligations of Buyer under Section 8, Buyer agrees to pay all reasonable costs and expenses, including reasonable attorneys’ fees and expenses, in connection with the enforcement against Buyer of this Agreement or any Purchased Confirmed Payables.
9.8 Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of this Agreement by electronic means shall have the same force and effect as the delivery of an original executed counterpart of this Agreement.
9.9 No Partnership or Joint Venture. Nothing contained in this Agreement shall be deemed or construed by the parties hereto or by any third person to create the relationship of principal and agent or of partnership or of joint venture or give rise to any fiduciary relationship.
9.10 Confidentiality. Each party agrees to maintain the confidentiality of the Transaction Documents and all material, non-public information provided by it to the other in connection with the Transaction Documents and the transactions contemplated hereby and thereby; provided, that, (a) the foregoing does not apply to information that (i) was, is or becomes generally available to the public, or (ii) was or becomes available to the other party on a non-confidential basis prior to its disclosure to such party pursuant to this Agreement from a source other than the other party that is not known to such recipient to be subject to confidentiality obligations, (b) each party may disclose any portion of such information, (i) in accordance with its customary regulatory compliance procedures, (ii) if requested or required to do so pursuant to (A) any Federal or state securities laws, (B) oral questions, interrogatories, requests for information or documents, subpoena, civil investigative demand, or any order or demand in connection with any civil or criminal judicial, administrative or congressional proceeding or similar process, (C) other Applicable Law or (iii) in connection with any suit, action or proceeding for the purpose of defending itself, reducing its liability or protecting or exercising any of its claims, rights or remedies, and (c) Finexio may disclose such information to any prospective participant with Finexio in connection with the purchase of the Confirmed Payables, and Finexio agrees that such prospective participant shall agree to be bound by confidentiality provisions similar to those contained in this Section 9.10.
9.11 Entire Agreement. This Agreement (including the documents referred to herein) constitutes the entire agreement among the parties to this Agreement and supersedes any prior understandings, agreements or representations by or among the parties, written or oral, to the extent they relate in any way to the subject matter hereof.
9.12 Third-Party Beneficiaries. Except as expressly provided herein, this Agreement is solely for the benefit of the parties hereto and their respective successors and permitted assigns and nothing in this Agreement, express or implied, confers on any third party any legal or equitable right, benefit, or remedy of any nature whatsoever under or by reason of this Agreement.
9.13 Patriot Act; OFAC. To help fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify and record information that identifies each person or corporation who opens an account and/or enters into a business relationship. None of the requesting payments or other transactions hereunder will violate the Trading With the Enemy Act (50 USC §1 et seq., as amended) or any of the foreign assets control regulations of the United States Treasury Department or any enabling legislation or executive order relating thereto. Neither Buyer nor any of its subsidiaries or other Affiliates is or will become a “blocked person” as described in the Trading with the Enemy Act, any foreign asset control regulations or executive order or engages or will engage in any dealings or transactions, or be otherwise associated, with any such “blocked person”