THIRD-PARTY VENDOR AGREEMENT

This Third-Party Vendor Agreement (“Agreement”) is made effective and entered into as of [INSERT DATE] (the “Effective Date”),

BY AND BETWEEN:

A. [INSERT COMPANY NAME], with its registered office at [INSERT ADDRESS], a company organized and existing under the laws of [INSERT COMPANY NAME], (hereinafter referred to as the “POTOLO”), which expression shall, unless repugnant to the context, mean and include their heirs, administrators, successors, and permitted assigns.

AND

B. [INSERT COMPANY NAME], with its registered office at [INSERT ADDRESS], a company organized and existing under the laws of [INSERT COMPANY NAME], (hereinafter referred to as the “Vendor”), which expression shall, unless repugnant to the context, mean and include their heirs, administrators, successors, and permitted assigns.

POTOLO and the Vendor are individually referred to as the “Party” and collectively as the “Parties.”

WHEREAS:

I. POTOLO operates a mobile application platform ("the Platform") that provides various services, including, but not limited to, food ordering, task outsourcing, health consultations, gym memberships, fleet management, laundry services, and bus ticket sales.

II. POTOLO seeks to expand its service offerings and enhance the user experience by partnering with third-party vendors to provide additional goods and services through the Platform.

III. [VENDOR NAME] is engaged in the provision of [NAME OF SERVICE], respectively, and has expressed interest in partnering with POTOLO to offer their services to POTOLO's customers.

IV. POTOLO and the Vendor desire to enter into this Agreement to establish the terms and conditions governing their business relationship and cooperation in providing services to POTOLO's customers.

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, both Parties mutually agree as follows:

1. DEFINITIONS

In this Agreement, unless the context requires otherwise, the following expressions shall have the meanings set out below:

1.1. “Agreement” means this Third-Party Vendor Agreement, along with its schedules, exhibits, and annexures, as may be amended from time to time.

1.2. “Applicable Laws” mean all central, state, and local laws, rules, regulations, directives, circulars, notifications, guidelines, and orders of any kind, including statutory, administrative, and judicial, which are in effect at the present time or in the future, and which govern this Agreement. This includes, without limitation to, laws of the United States (“US”), any state or local laws, and any international laws, rules, and regulations that may apply to all the Parties. It also includes any interpretations of these laws by competent courts or other legal authorities.

1.3. “Confidential Information” includes all information and any idea in whatever form, tangible or intangible, pertaining in any manner to the business (and its assets) of the Disclosing Party or any of the Disclosing Party’s affiliates (if any) or the Disclosing Party’s employees, independent contractors, clients, consultants, or business associates, which was produced by any employee, independent contractor, or consultant of the Disclosing Party in the course of their employment, engagement, or consulting relationship or otherwise produced or acquired by or on behalf of the Disclosing Party. Confidential Information shall broadly include all information that has or could have commercial value or other utility to the business in which the Disclosing Party is engaged or contemplates engaging, and all information of which the unauthorized, unlawful, or illegal disclosure could be detrimental to the interests of the Disclosing Party whether such information is identified as Confidential Information by the Disclosing Party. Proprietary and Confidential Information shall mean all non-public information, written, oral, or otherwise, disclosed or made available to the Receiving Party, which relates to the past, present, and future business activities of the Disclosing Party and its affiliates (if any). By example and without limiting the foregoing definition, Confidential Information includes, but is not limited to, the following in relation to the Disclosing Party and its affiliate(s) (if any):

  • 1.3.1. Customer data and customer base: All data, records, and information (in any form) of the Disclosing Party’s customers which may include, but are not limited to, names, addresses, phone numbers, email addresses, and other contact details of the Disclosing Party’s customers; credit/debit card details, bank account information, and payment histories; information on how customers use the product or service, including log-in times, frequency of use, feature usage patterns, and preferences; customer service interactions, email correspondences, chat logs, and call recordings; purchase history, subscription details, order values, and product/service preferences; Internet Protocol (“IP”) addresses, device types, operating system details, and browser types used to access the services; surveys, reviews, testimonials, and feedback forms; data derived from analysis tools tracking customer behavior on websites or apps; age groups, gender, location, income brackets, and educational background of the customer pool; different categories or segments of customers based on product usage, interests, or demographics; information on customer retention rates, loyalty program participation, and frequency of repeat purchases; historical data on the growth of the customer base over time; information on leads or potential customers who have shown interest but have not made a purchase yet; overall satisfaction rates, customer service ratings, and net promoter scores; data on how customers were acquired, such as referrals, advertising, organic search, or social media channels; and influence of customers in terms of social media presence, review influence, and overall market impact.
  • 1.3.2. Personnel and Managerial Personnel Data: Personal information about the Disclosing Party’s personnel and managerial personnel, including names, addresses, contact information, financial information (such as salary, bonuses, benefits, and other similar information), performance reviews, and disciplinary actions.
  • 1.3.3. Intellectual Property: Copyrighted-material, patented or patent-pending techniques, methods, processes, procedures, or materials, trade secrets, trademarks, and any other Intellectual Property exclusively owned by the Disclosing Party or promoters or affiliate(s) (if any).
  • 1.3.4. Business Strategies: Marketing strategies, pricing details, advertising plans, future business plans, market research data, and sales strategies.
  • 1.3.5. Financial Information: The Disclosing Party’s financial reports, budgets, projections, pricing structures, revenue, costs, profit margins, and any other financial data.
  • 1.3.6. Contracts and Agreements: Details about contracts or agreements with other businesses, contractors, developers, programmers, vendors, or partners, including terms, pricing, and duration.
  • 1.3.7. Legal Documents: Any sensitive legal documents or information related to any and all ongoing or potential legal issues or disputes in relation to the Disclosing Party.
  • 1.3.8. Software and Technology: Proprietary Software, platforms, algorithms, applications, technology processes, and any other technological assets used in the Disclosing Party’s operations.
  • 1.3.9. Communications: Internal memos, emails, or other communications between personnel and managerial personnel that may contain sensitive or proprietary information.
  • 1.3.10. Training Programs: Details about training programs for the Disclosing Party’s personnel, including content, schedule, materials, and feedback.
  • 1.3.11. Information about affiliations, partnerships, or collaborations with other entities, institutions, or corporate bodies.
  • 1.3.12. Research and Development: Any new projects, products, services, materials, processes, or procedures in development, pilot programs, or innovations.

1.4. “Effective Date” means the specific date upon which this Agreement becomes legally binding on both Parties involved. Effective Date is designated in this Agreement itself and signifies the commencement of all rights, responsibilities, and obligations as stipulated therein.

INTERPRETATION

2.1.

The headings and marginal headings to the clauses are for convenience only and have no legal effect.

2.2.

Any references in this Agreement to any statute or delegated legislation (including by way of rules, notifications, by-laws, circulars, guidelines) includes any and all statutory modification or re-enactment of it or the provision referred to.

2.3.

The words “hereof,” “herein,” “hereby,” and derivative or similar words refer to this entire Agreement and not to any particular clause, schedule, or annexure of this Agreement.

2.4.

Words denoting the singular shall include the plural, and words denoting any gender shall include all genders.

2.5.

References to recitals, clauses, and annexures shall, unless otherwise repugnant to the context, be deemed to be references to recitals, clauses, and annexures of this Agreement.

2.6.

Any annexures, schedules, and exhibits form an integral part of this Agreement.

2.7.

Any reference to “writing” shall include printing, typing, lithography, transmissions in electronic form (including e-mail), and other means of reproducing words in visible form but shall exclude messages via mobile devices and smartphones or messages of a similar nature.

2.8.

The words “include” and “including” are to be construed without limitation.

2.9.

Words elsewhere defined shall have the meaning so ascribed.

2.10.

Where a word or a phrase is defined, other parts of speech and grammatical forms of that word or phrase will have the corresponding meaning.

SCOPE OF SERVICES

3.1. Description of Services

3.1.1. Food Ordering from Kitchen Partners:

The Vendor, hereinafter referred to as "Kitchen Partner," shall provide food products and related services through the POTOLO mobile application platform. The Kitchen Partner shall offer a variety of food items for purchase by POTOLO customers. This includes but is not limited to appetizers, main courses, desserts, and beverages. The Kitchen Partner shall ensure that all food products meet the quality standards specified by POTOLO and adhere to local health and safety regulations. Additionally, the Kitchen Partner shall maintain accurate inventory records and update the availability of food items in real-time on the Platform.

3.1.2. Access to Gym Facilities with Flexible Membership:

The Vendor, hereinafter referred to as "Gym Facility," shall grant POTOLO customers access to its gym facilities through the Platform. The Gym Facility shall provide various membership options, including daily passes, monthly subscriptions, and annual memberships, allowing customers to access fitness equipment, classes, and amenities as per the chosen membership plan. The Gym Facility shall ensure the cleanliness, maintenance, and safety of its facilities at all times. Additionally, the Gym Facility shall provide POTOLO with updated information regarding membership plans, schedules, and any changes to services offered.

3.1.3. Dry Cleaning Services with Pickup and Delivery:

The Vendor shall offer dry cleaning and laundry services through the POTOLO Platform. The Vendor shall facilitate the pickup and delivery of garments from and to POTOLO customers' designated locations. The Vendor shall ensure the proper handling, cleaning, and packaging of garments according to industry standards. Additionally, the Vendor shall maintain a record of orders, provide timely updates on order status, and address any customer inquiries or concerns regarding the dry cleaning process.

3.1.4. Fleet Management Services:

The Vendor shall provide fleet management services through the POTOLO Platform, including, but not limited to, vehicle tracking, route optimization, maintenance scheduling, and driver management. The Vendor shall utilize smart solutions and technology to enhance the efficiency, safety, and reliability of fleet operations, ensuring timely and cost-effective transportation solutions for POTOLO's customers.

3.1.5. Worker Hiring Services:

The Vendor shall offer worker hiring services through the POTOLO Platform, allowing POTOLO's customers to access a pool of qualified workers for various tasks and projects. The Vendor shall facilitate the recruitment, screening, and placement of workers based on POTOLO's customers' specific requirements, ensuring compliance with applicable labor laws and industry standards.

3.1.6. Health Consultation Services:

The Vendor shall provide health consultation services through the POTOLO Platform, connecting POTOLO's customers with certified professionals in various healthcare fields. These professionals may include, but are not limited to, doctors, nurses, nutritionists, and therapists. The Vendor shall facilitate remote consultations, providing expert advice, diagnosis, treatment recommendations, and support to POTOLO's customers in a convenient and accessible manner.

3.2. Service Standards and Requirements:

The Vendor shall adhere to the following service standards and requirements:

3.2.1. Compliance:

The Vendor shall comply with all Applicable Laws, regulations, and industry standards relevant to their respective services.

3.2.2. Quality Assurance:

The Vendor shall maintain high standards of quality in their products and services, ensuring customer satisfaction and loyalty.

3.2.3. Customer Service:

The Vendor shall provide prompt and courteous customer service to POTOLO customers, addressing inquiries, complaints, and feedback in a timely and professional manner. The Vendor shall designate a point of contact for communication with POTOLO regarding service-related issues.

3.2.4. Technology Integration:

The Vendor shall integrate their systems with the POTOLO Platform to facilitate seamless transactions, order management, and communication. This includes providing necessary APIs, interfaces, or software solutions for data exchange and synchronization.

4. OPERATIONAL RESPONSIBILITIES
4.1. Vendor Responsibilities
4.1.1. Quality Assurance

The Vendor shall maintain a high standard of quality in the products and services offered through the POTOLO Platform. The Vendor shall ensure that all goods and/or services provided by the Vendor meet the specifications and standards agreed upon with POTOLO in writing.

4.1.2. Compliance with Laws and Regulations

The Vendor shall comply with all Applicable Laws, regulations, and industry standards governing the provision of its services. This includes obtaining and maintaining any necessary licenses, permits, or certifications required for the operation of its business and ensuring adherence to food safety regulations, health codes, labor laws, and environmental regulations. The Vendor shall promptly notify POTOLO of any changes in legal or regulatory requirements that may impact its ability to fulfill its obligations under this Agreement.

4.1.3. Staff Training and Conduct

The Vendor shall ensure that its staff members are adequately trained and qualified to perform their respective duties. This includes providing ongoing training to staff members on food handling and safety protocols, customer service standards, equipment operation and maintenance, and any other relevant areas. The Vendor shall also ensure that its staff conduct themselves professionally and ethically while interacting with POTOLO customers and adhere to POTOLO's code of conduct and policies.

4.2. POTOLO's Responsibilities
4.2.1. Application Maintenance and Support

POTOLO shall be responsible for the maintenance and support of the POTOLO mobile application platform (the “Platform”). This includes ensuring the availability, functionality, and security of the Platform, and addressing any technical issues, bugs, or disruptions that may arise. POTOLO shall provide regular updates and enhancements to the Platform, incorporating feedback from users and the Vendor to improve user experience and optimize performance.

4.2.2. Marketing and Promotion

POTOLO shall undertake marketing and promotional activities to promote the services offered by the Vendor through the Platform. This includes, but is not limited to, digital marketing campaigns, social media promotions, email marketing, and partnerships with other businesses or organizations to increase awareness and user engagement. POTOLO shall collaborate with the Vendor to develop marketing materials and strategies tailored to their respective services and target demographics.

4.2.3. Payment Processing

POTOLO shall facilitate payment processing for transactions made through the Platform on behalf of the Vendor. This includes collecting payments from customers, deducting applicable fees and commissions, and remitting payments to the Vendor in accordance with the terms of this Agreement. POTOLO shall employ secure payment processing methods and ensure compliance with payment card industry (PCI) data security standards to safeguard customer payment information. POTOLO shall provide the Vendor with access to transaction data and reports for reconciliation and accounting purposes.

5. FINANCIAL ARRANGEMENTS
5.1. Pricing and Payment Terms
5.1.1. Pricing

The pricing for services provided by the Vendor shall be mutually agreed upon in Annexure A by POTOLO and the Vendor prior to the commencement of services. Pricing may vary based on factors such as the type of service, location, and market demand. POTOLO reserves the right to adjust pricing as necessary, with reasonable notice to the Vendor.

5.1.2. Payment Terms

Payment terms shall be specified in this Agreement in the Annexure A. Unless otherwise agreed, POTOLO shall make payments to the Vendor within a specified period following the completion of services or as otherwise agreed upon. Payment may be made via electronic transfer, check, or any other mutually agreed-upon method.

5.2. Revenue Sharing Model
5.2.1. Agreed Upon Percentage

POTOLO and the Vendor may agree upon a revenue-sharing model whereby the Vendor receives a percentage of the revenue generated from services provided through the POTOLO Platform. The revenue-sharing percentage shall be documented in Annexure B and may vary based on the type of service and other relevant factors.

5.2.2. Calculation of Revenue

Revenue generated from services provided by the Vendor shall be calculated based on the total sales or transactions facilitated through the POTOLO Platform, excluding any taxes, fees, or other charges. POTOLO shall provide the Vendor with periodic reports detailing the revenue generated and the corresponding revenue share owed to the Vendor.

5.3. Invoicing and Late Payments
5.3.1. Invoicing

The Vendor shall submit invoices to POTOLO in accordance with the agreed-upon payment terms and schedule. Invoices shall include detailed information regarding the services provided, quantities, prices, and any applicable taxes or fees. POTOLO shall review and process invoices in a timely manner, making payments as per the agreed-upon terms.

5.3.2. Late Payments

In the event of late payments by POTOLO, the Vendor shall notify POTOLO promptly of the overdue payment. POTOLO shall make reasonable efforts to rectify any payment delays and shall not withhold payments without valid cause. In the event of persistent late payments, the Parties shall negotiate in good faith to resolve the issue and may consider amendments to the payment terms or other remedies as appropriate.

5.4. Audit Rights
5.4.1. Audit Clause

POTOLO reserves the right to conduct periodic audits of the Vendor's financial records and operations to ensure compliance with the terms of this Agreement. Audits may include, but are not limited to, reviewing invoices, transaction records, and revenue-sharing calculations. The Vendor shall cooperate fully with any audit conducted by POTOLO, providing access to relevant records and personnel as required.

5.4.2. Costs of Audit

POTOLO shall bear the costs associated with conducting audits unless the audit reveals material discrepancies or violations of the Agreement attributable to the Vendor, in which case the Vendor shall reimburse POTOLO for reasonable audit expenses.

6. TERM AND TERMINATION
6.1. Agreement Duration

This Agreement shall commence upon the Effective Date and shall remain in effect until terminated by either Parties in accordance with the termination provisions of this Agreement.

6.2. Termination Conditions
6.2.1. Mutual Agreement

Either Party may terminate this Agreement upon mutual written agreement of both Parties. Such termination shall be effective upon the date specified in the termination notice, provided that all obligations under the Agreement have been fulfilled up to the date of termination.

6.2.2. Breach of Agreement

Either Party may terminate this Agreement in the event of a material breach by the other Party. A material breach shall include, but is not limited to, failure to perform obligations under this Agreement, violation of Applicable Laws or regulations, or any conduct detrimental to the interests of the other Party. The non-breaching Party shall provide written notice to the breaching Party specifying the nature of the breach and allowing a reasonable cure period. If the breach is not cured within the specified period, the non-breaching Party may terminate the Agreement with immediate effect.

6.2.3. Insolvency or Bankruptcy

Either Party may terminate this Agreement immediately upon written notice in the event that the other Party becomes insolvent, files for bankruptcy, or undergoes liquidation or receivership proceedings. Termination under this clause shall not relieve either Party of any obligations accrued prior to the date of termination.

6.3. Consequences of Termination

Upon termination of this Agreement for any reason: the Vendor shall cease all activities related to the provision of services through the POTOLO Platform and shall promptly return any POTOLO property or materials in its possession. POTOLO shall settle any outstanding payments owed to the Vendor for services rendered up to the date of termination, subject to the terms of this Agreement. Both Parties shall cooperate in good faith to facilitate the orderly transition of services to an alternate provider or to wind down operations in an efficient and professional manner. Any provisions of this Agreement that, by their nature, should survive termination, including but not limited to confidentiality, indemnification, and dispute resolution, shall remain in full force and effect.

7. LEGAL AND REGULATORY COMPLIANCE
7.1. 10DLC Compliance for Text Messages and Communications
7.1.1. Customer Opt-In Procedures

POTOLO shall implement robust procedures for obtaining opt-in consent from customers regarding the receipt of text messages and communications. Prior to sending any text messages or communications, POTOLO shall obtain express consent from customers through clear and conspicuous means, such as through the POTOLO mobile application or website. Customers shall have the option to opt-in to receive specific types of communications or to opt-out entirely from receiving such communications.

7.1.2. Customer Opt-Out Mechanisms

POTOLO shall provide customers with easily accessible and user-friendly opt-out mechanisms to unsubscribe from receiving text messages and communications. Opt-out mechanisms shall be clearly communicated to customers in all communications and shall be promptly processed upon receipt of opt-out requests. POTOLO shall maintain updated opt-out lists to ensure compliance with customer preferences and regulatory requirements.

7.1.3. Record Keeping and Auditing

POTOLO shall maintain detailed records of customer opt-in and opt-out preferences, including timestamps, consent methods, and any associated communications. These records shall be securely stored and made available for audit purposes upon request by regulatory authorities or third-party auditors. POTOLO shall conduct periodic audits of its opt-in and opt-out processes to ensure compliance with 10DLC requirements and to address any deficiencies identified.

7.2. Data Protection and Privacy

POTOLO shall implement and maintain robust data protection and privacy measures to safeguard customer information and comply with applicable privacy laws and regulations. This includes implementing industry-standard security controls to protect against unauthorized access, use, or disclosure of customer data, conducting regular security assessments and audits, and providing clear and transparent privacy policies to inform customers about the collection, use, and sharing of their personal information.

7.3. Intellectual Property Rights

POTOLO and the Vendor shall respect each other's intellectual property rights and shall not infringe upon or misappropriate the intellectual property of the other Party. Any use of trademarks, logos, or other intellectual property owned by POTOLO or the Vendor shall be subject to prior written authorization and shall be used in accordance with Applicable Laws and industry standards. POTOLO shall retain ownership of all intellectual property associated with the POTOLO Platform, including, but not limited to, software, designs, and branding elements.

8. CONFIDENTIALITY
8.1. Obligation to Maintain Confidentiality

Both Parties understand and agree that the Confidential Information is a valuable, special, sensitive, and unique asset of the Party who discloses the Confidential Information to the other Party (the “Disclosing Party”), and the disclosure, reveal, use, or dissemination of the Confidential Information, other than as specifically authorized by this Agreement, by the Party who receives the Confidential Information from the Disclosing Party (the “Receiving Party”) would cause irreparable harm and loss to the Disclosing Party. The Receiving Party shall hold all Confidential Information in strict confidence and shall not disclose, reveal, disseminate, or use any Confidential Information for any purpose other than the performance of obligations and duties under this Agreement, without the prior express written consent of the Disclosing Party. The Receiving Party also agrees not to disclose, reveal, use, or disseminate any Confidential Information to any third party, including individuals, entities, or organizations, without the prior express written consent of the Disclosing Party, except as required by the Applicable Laws. The Receiving Party shall take all necessary precautions and care to prevent the unauthorized, unlawful, and illegal use, disclosure, or dissemination of the Confidential Information.

8.2. No Obligation for Disclosure

Subject to the terms, conditions, and obligations of this Agreement, the Receiving Party acknowledges and agrees that this Agreement does not constitute any obligation or compulsion on the part of the Disclosing Party to disclose or share any of its Confidential Information. The extent and nature of the Confidential Information that the Disclosing Party chooses to share, if at all, remains entirely within the Disclosing Party’s absolute and sole discretion, subject to the terms, conditions, and obligations as outlined in this Agreement. Notwithstanding the above, the Receiving Party agrees that its obligations to maintain the confidentiality and non-use of Confidential Information, as stipulated in this Agreement, shall remain unaffected by the disclosure or non-disclosure of Confidential Information or the continuation or discontinuation of any transaction or relationship between both Parties.

8.3. Permitted Disclosure

The Receiving Party may disclose, reveal, use, or disseminate the Confidential Information: to the extent necessary to perform duties and responsibilities under this Agreement, provided that the Receiving Party shall take all reasonable steps to ensure that the Confidential Information is protected against unauthorized, unlawful, and illegal disclosure, reveal, use, or dissemination; and to the Receiving Party’s legal and financial advisors who need to know the Confidential Information for the purpose of providing legal and financial advice to the Receiving Party, provided that such advisors are bound by confidentiality obligations substantially similar to those contained in this Agreement.

8.4. Duty of Care

The Receiving Party shall exercise the same degree of care, but no less than a reasonable degree of care, in protecting the Confidential Information as the Receiving Party would in protecting its own Confidential Information and proprietary information of a similar nature. The Receiving Party shall take appropriate measures to maintain the confidentiality, integrity, and security of the Confidential Information, including implementing reasonable safeguards and complying with any security protocols or guidelines provided by the Disclosing Party.

8.5. Exceptions to Confidentiality

The obligations of the Receiving Party under this Agreement do not extend to information that: was in the public domain at the time it was disclosed by the Disclosing Party or has entered the public domain through no fault of the Receiving Party; was known to the Receiving Party, without restriction, at the time of disclosure, as demonstrated by files in existence at the time of disclosure; is disclosed with the prior express written consent of the Disclosing Party; becomes known to the Receiving Party, without restriction, from a source other than the Disclosing Party, without breach of this Agreement by the Receiving Party and otherwise not in violation of the Disclosing Party’s rights; or is required to be disclosed by law, regulation, or order of a court of competent jurisdiction, provided that the Receiving Party gives the Disclosing Party reasonable prior written notice of such required disclosure and cooperates with the Disclosing Party, at the Disclosing Party’s cost, in any lawful action to contest or limit the scope of such required disclosure.

8.6. Ownership of Confidential Information

All Confidential Information, whether prepared by the Receiving Party or otherwise coming into the Receiving Party’s possession, shall remain the exclusive property of the Disclosing Party and shall not be removed from the Disclosing Party’s premises without the prior express written consent of the Disclosing Party, except in the furtherance of the Receiving Party duties and obligations under this Agreement.

8.7. Return or Destruction of Confidential Information

Upon termination of this Agreement for any reason, the Receiving Party shall: immediately cease to use the Confidential Information; return to the Disclosing Party, or at the Disclosing Party’s option, destroy, all documents, materials, and other property of the Disclosing Party in the Receiving Party’s possession or control that contain or reflect any Confidential Information; and provide a written certification to the Disclosing Party that the Receiving Party has fully complied with the obligations under this clause.

9. LIABILITY AND INDEMNIFICATION

9.1. Limitations of Liability: To the maximum extent permitted by Applicable Laws, neither Party shall be liable to the other for any indirect, incidental, consequential, special, or punitive damages arising out of or relating to this Agreement, including, but not limited to, lost profits, lost revenue, loss of data, or business interruption. Each Party's total liability to the other Party under this Agreement shall be limited to the total amount paid or payable by POTOLO to the Vendor under this Agreement during the twelve (12) month period preceding the event giving rise to the liability.

9.2. Indemnification by Vendor: The Vendor shall indemnify, defend, and hold harmless POTOLO, its officers, directors, employees, and agents from and against any and all claims, damages, liabilities, losses, costs, and expenses (including reasonable attorneys' fees) arising out of or related to:

  • (a) any breach of this Agreement by the Vendor;
  • (b) any negligence, willful misconduct, or fraudulent acts of the Vendor or its employees or agents;
  • (c) any claims by third parties arising from or related to the Vendor's products or services provided through the POTOLO Platform; and
  • (d) any violation of Applicable Laws or regulations by the Vendor.

POTOLO shall promptly notify the Vendor in writing of any claim subject to indemnification hereunder. POTOLO shall have the right to control the defense and settlement of any such claim.

10. GOVERNING LAW AND DISPUTE RESOLUTION

10.1. Governing Law: This Agreement and the rights of the Parties hereunder shall be governed by and construed in accordance with the laws of the US, exclusive of conflict or choice of law rules. Both Parties agree that the laws of the US, without regard to principles of conflict of laws, shall govern this Agreement and any dispute of any sort that might arise between both Parties. The courts in the [INSERT STATE NAME], US shall have exclusive jurisdiction over any of the disputes arising out of or in relation to or in connection with this Agreement.

10.2. Dispute Resolution: In the event of any dispute, controversy, or claim arising out of or in relation to or in connection with this Agreement or its breach, termination, or validity thereof, both Parties shall follow the dispute resolution procedure set forth below:

  • 10.2.1. Mutual Negotiations: Both Parties shall first engage in bona fide mutual and amicable negotiations with respect to the dispute, controversy, or claim to resolve the dispute informally.
  • 10.2.2. Mediation: If the Parties are unable to resolve the dispute informally within thirty (30) days of initiating mutual negotiations, then either Party may initiate mediation proceedings by providing a written notice to the other Party. Both Parties shall then engage in mediation within thirty (30) days from the date of receipt of the written notice, using a mediator selected by mutual agreement or by a mediator appointed by a court of competent jurisdiction as per the Applicable Laws. Both Parties shall also mutually decide the rules and procedure for the mediation proceedings in writing unless institutional mediation is selected by both Parties in writing, wherein the mediation shall be governed by the rules and procedure of the mutually selected mediation institution.
  • 10.2.3. Arbitration: If the Parties are unable to resolve the dispute through mediation within thirty (30) days from the date of initiating mediation, then either Party may initiate arbitration by providing a written notice to the other Party as per the Applicable Laws. The arbitration shall be conducted in accordance with the rules and procedures as may be mutually determined by the Parties in writing. The seat and venue for arbitration shall be the [INSERT STATE NAME], US. The arbitration shall be conducted by a sole arbitrator mutually selected and appointed by both Parties. In case the Parties fail to appoint an arbitrator, they may request the competent court to appoint a suitable arbitrator under the Applicable Laws. The arbitration shall be conducted in English language only. The decision of the arbitrator shall be final and binding on both Parties. In the event that a Party fails to proceed with arbitration, unsuccessfully challenges the arbitrator’s award, or fails to comply with the arbitrator’s award, the other Party is entitled to recover the costs associated with enforcing or defending this award. This includes, but is not limited to, reasonable attorney’s fees, court costs, and necessary disbursements in addition to any other relief to which the Party may be entitled.
11. MISCELLANEOUS

11.1. Force Majeure: Neither Party shall be deemed in default or otherwise responsible for any delay or failure in performance under this Agreement to the extent that such delay or failure is attributable to any event or circumstance beyond their reasonable control, including, but not limited to, pandemics, epidemics, acts of God, war, riot, embargoes, acts of civil or military authorities, fire, floods, accidents, strikes, or shortages of transportation facilities, fuel, energy, labor, or materials (a “Force Majeure Event”). Upon the occurrence of a Force Majeure Event, the affected Party shall notify the other Party of such an event in writing and its impact on its ability to perform its obligations under this Agreement. The affected Party shall use reasonable efforts to mitigate the effects of the Force Majeure Event and resume performance under this Agreement as soon as reasonably practicable. If such Force Majeure Event continues for a period exceeding sixty (60) days, either Party may terminate this Agreement upon written notice to the other Party. During the pendency of any Force Majeure Event, the performance of the affected Party’s obligations, to the extent affected by such Force Majeure Event, shall be suspended, and any timelines or deadlines set forth in this Agreement shall be extended accordingly as per mutual written agreement between both Parties.

11.2. Severability: If any provision of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, or unenforceable in any respect, such provision shall be modified, rewritten, or interpreted to include as much of its nature and scope as will render it enforceable. If the court finds the said provision cannot be modified, rewritten, or interpreted to become enforceable, the said provision shall be severed from this Agreement, and the remaining provisions of this Agreement shall remain in full force and effect as if such provision was not included. In the event such an invalid, illegal, or unenforceable provision is an essential part of this Agreement, both Parties shall immediately commence good faith negotiations to replace such provision with a mutually acceptable provision that, to the greatest extent possible under Applicable Laws, achieves the same economic, legal, and other benefits as the severed provision. This clause shall be applied and construed both with respect to this Agreement taken as a whole, and with respect to the parts and sub-parts of this Agreement taken separately.

11.3. Assignment: No Party shall assign in whole or in part its rights or obligations under this Agreement without the prior written consent of the other Party. In case of such assignment, it shall be binding on and inure to the benefit of the respective successors of the Parties thereto.

11.4. Waiver: No forbearance, failure, delay, or negligence in exercising any power, right, or privilege under this Agreement by any Party shall constitute a waiver thereof. Any single or partial exercise of any right, power, or privilege under this Agreement by any Party shall not preclude any other or future exercise thereof or the exercise of any other right, power, or privilege. Waiver by any Party of a breach or violation of any provision of this Agreement shall not constitute a waiver of any subsequent breach, default, or violation. Any waiver, permit, consent, or approval of any kind under this Agreement must be made explicitly in writing and shall be valid only to the extent of its express terms and conditions.

11.5. Amendments: Any amendment, modification, or waiver of any provision of this Agreement, or any consent to any departure therefrom, shall be effective only if it is in writing and signed by both Parties.

11.6. Entire Agreement: This Agreement constitutes the full and complete understanding and contractual agreement between both Parties, superseding all prior or contemporaneous oral or written communications, proposals, agreements, understandings, or representations about the subject matter herein. All prior understandings, discussions, negotiations, and agreements, whether oral or written, are merged herein.

11.7. Notices: All notices, requests, demands, and other communications that are required or may be given under this Agreement shall be in writing and shall be deemed to have been duly given if delivered personally or sent by facsimile transmission, by telex, by registered mail, by fax or by electronic mail, to the respective Parties. Notice shall be deemed given: if delivered personally, upon receipt; if sent by telex, upon confirmation of receipt; if sent by registered mail, within three (3) days of depositing in the mail; if sent by fax or electronic mail, upon electronic confirmation of receipt; or if posted on the other Party's last known residence, the next business day after posting. A notice is deemed to be received if it is delivered personally, when it is delivered; if sent by telex, on the third business day after posting; if sent by registered mail, on the date of signature of the courier’s receipt or if sent by e-mail or fax, at the time of transmission, provided that no “out of office,” “delivery failure,” or “not read” message relating to such e-mail is received by the sender within one (1) hour of transmission.

11.8. Counterparts and Execution: This Agreement may be signed in two or more counterpart originals, each of which shall constitute an original document and will be deemed fully executed when both Parties have affixed authorized signatures, whether or not on a single page. All the Parties agree that this Agreement may be executed and delivered by facsimile, e-mail, electronically transmitted Portable Document Format (“PDF”), or any other electronic means, method, and/or mode of transmission as mutually agreed between both Parties in writing, in accordance with the Applicable Laws. Both Parties hereby agree and acknowledge that electronic signatures shall be considered as valid, legal, and binding as traditional and original handwritten signatures to the extent permitted by the Applicable Laws.

11.9. Review by Legal Counsel: By signing this Agreement, both Parties agree that they have had sufficient opportunity to review the terms and conditions of this Agreement with their legal counsel and agree to abide by this Agreement.

11.10. Acknowledgment and Acceptance: Both Parties acknowledge and accept that they have carefully read this Agreement, understood its terms and conditions, had an opportunity to consult with legal counsel of their choice, have considered the restrictions contained in this Agreement and their impact on their future activities, and agree that the restrictions contained in this Agreement are fair, reasonable, and are required for the protection of the legitimate business interests of both Parties.

IN WITNESS WHEREOF, both Parties have caused this Agreement to be executed by their respective, fully authorized representatives as of the Effective Date.

SIGNED AND DELIVERED by the within named POTOLO,

i.e., [●], through its Authorized Signatory [●], in the presence of [●]

1. [Signature]

2. [Signature]

SIGNED AND DELIVERED by the within named Vendor,

i.e., [●], through its Authorized Signatory [●], in the presence of [●]

1. [Signature]

2. [Signature]