I am licensing my software to my software distributor reseller. My reseller wants to use my license agreement that should be signed between us and Licensee. Does that make sense?
If it does then how does my reseller invoice the client and pay me when the license agreement says that is between us and Licensee and not the reseller?
I think you need two separate license agreements, or rewording of your existing license agreement to include a provision for a 'distribution reseller' entity. I am assuming that your current license agreement does not allow for the licensee to resell their license or enter in a business reselling copies of your software. However, that is exactly what you want your reseller to do... You need an agreement, or clauses you can conditionally activate in your current agreement, that accounts for this. I would think that your software distribution reseller would have a standard agreement they use for this purpose, and not request to use yours. That sounds strange to me.
It depends on the model you want to use, typically you would have two separate license agreements: (1) between you and the reseller governing the reseller relationship and allowing your reseller to sub-license to end users (and other terms - e.g., not to otherwise use the software, or license it outside a certain territory, or license it with third party products or under a different name etc.); and (2) a license agreement between you and the end user, governing the end users use of the software which is passed on verbatim to the end user (either in click-wrap or written form).