North American Authorized
Agency Agreement
This Agreement
is made by and between Diamond Technologies Inc with principal
offices at 15 Allstate Parkway, Suite 600, Markham, ON L3R 584.,
Canada (Agent") and Advanced Software Technologies, Inc. ,
with principal offices Zephyr House, Mary Street, Grand Cayman,
Cayman Islands, BWI ("AST") as of the date set forth
below.
Whereas, AST is the developer, owner and licensor of
certain AST Suite of Products packages designated as the subject
matter of this Agreement;
Whereas, Agent desires to become a business associate of
AST under the terms and conditions hereof:
Now
Therefore, the parties
agree as follows:
For the
purposes of this Agreement, the following definitions will
apply:
"Agent" means the AST Authorized Agent who could be an
individual, organization, or company that desires to represent the
suite of Advanced Software Technologies, Inc. product offerings to
the end user (customer) market. The Sales Agent as it will be
defined in this agreement sells the AST product suite only. AST
will be fully responsible for the training and implementation of
the client following the sale through its wholly owned US
subsidiary, Mountain Medical Technologies, Inc.
"AST" means Advanced Software Technologies, Inc.
and/or its wholly owned subsidiary Mountain Medical Technologies,
Inc.
"Customer" means the end user of the AST Suite of Products
that enters into the AST Suite of Products End User License
Agreement.
"Schedule
A" means the AST supplied
executable pricing proposal form which must accompany any EULA for
the AST Suite of Products in order to be accepted by
AST.
"AST Suite
of Products" means AST
products as specified in Schedule A.
"EULA" means the license agreement (headed End User
License Agreement) between the Customer (end-user) and AST that
sets forth the terms and conditions governing the Customer's use of
the AST Suite of Products.
"Book of
Business" means the sales
made by the Agent with the flow of income from those sales paid
under this Agreement, all of which belongs to the Agent in right,
title and interest. The Book of Business is that portion of each
sale belonging to the Agent under the commission percentage agreed
to at the time of sale and the continuing flow of income produced
so long as the customers pay to use the AST Suite of Products
license.
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"Material
Breach" means the
violation of the payment terms herein, copyright or trademarks, an
attempt to replace or abet others to replace AST products or
services at any existing or potential customer with competing
products and any act of malicious conduct by the Agent to disparage
AST without any justification and malicious conduct against Agent
by AST.
"Non
Material Breach" means
serious neglect of Agent's customers by the Agent in regards to
support and services and any other breach of the terms of this
agreement for which the cure of such shall be sixty days from
written notice of violation.
"Certified
Sales Agent" means a
Sales Agent who has completed the initial Sales and Technical
Training program and any consecutive training program provided and
mandated by AST and who abides by the terms and conditions of the
certification program as outlined herein.
1. AST
SALES AGENT PROGRAM TERMS AND CONDITIONS
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Appointment AST hereby conditionally appoints Agent as a
Sales Agent, and Agent accepts in accordance with the provisions of
this Agreement the terms of the AST Sales Agent Program.
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Certified
Sales Agent . Agent
accepts and acknowledges that the AST three day Sales and 5 day
Technical Training Program is required to be completed by the
Agent within 60 days of execution of this agreement
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Agent is
required to pay a Not for Resell AST Suite of Products License fee
of $10,000.00 for the AST Suite of Products on or before the
date of execution of this agreement for the Authorization of Agent
under this agreement by AST. The number of seats licensed under
this fee shall be determined and may be as required by Agent to
affectively market the AST Suite of Products. No other fees for
product updates, upgrades, and support shall be charged to Agent
from the date of execution of this agreement in the
future.
Additionally, a
$10,000.00 fee for the minimum three day Sales and 10 day
Technical Training Program plus $1,000.00 per day for any
additional days of training requested by Agent and
all travel expenses plus per diem for the AST representative
instructing the program will be due and payable to AST on or before
execution of this agreement. Certification is mandatory for
Agent to become certified to represent the suite of AST products
licensed under this agreement and to benefit from commissions
allocated to Agent as outlined in Schedule A of this agreement.
Non-compliance of this Section I. Subparagraph b on the part of the
Agent will automatically void this agreement.
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All sales made
by the Agent of the AST Suite of Products shall create a Book of
Business owned by the Agent, which constitutes all funds due to
Agent under this agreement flowing from each sale for a period not
to exceed 36 months from the date of acceptance by AST of the
Client EULA or until the EULA terminates under the provision that
are outlined therein of the AST Suite of Products.
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A monthly
license client cancelling for less than ninety-one days and
resuming use shall not be considered a cancellation for the Book of
Business purposes, unless the customer, of their own accord,
transfers to another Agent.
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Agent is
required bi-Weekly to report all prospects, sales activity;
activity' reported on AST provided leads, and any current client
accounts relating to the AST Suite of Products to the AST Sales and
Marketing department in an electronic format following the
execution of this agreement. AST offers and enforces lead and
current account protection for Sales Agents. AST shall not allow
another Agent to solicit the existing Agents book of business
unless it is understood by all parties the end user client desires
the transfer. AST shall use its best reasonable efforts to protect
the Agent from aggressive solicitation by another Agent taking any
part of the Agent's book of Business. The report MUST include the
Business Name, Key Contact name, telephone number, street address,
city, state or province and postal code.
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Non-Exclusivity/Territory
Agent's appointment shall be
nonexclusive and only for the AST Suite of Products and
services marked in Schedule A to this Agreement. Such appointment
does not constitute a grant of any specific territory or
geographical area.
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Agent
expressly agrees not to exercise any of the rights granted in this
Agreement for any party outside the United States and Canada
("Territory"), including parties, which are subsidiaries or
branches of parties, located in the Territory. Any sales outside
the Territory must be approved by AST.
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Marketing Agent shall be supplied with marketing material
at no cost to agent in electronic format only. Print and mail
expense are the responsibility of the Agent. Web design services,
press release services, trade show design services, marketing
content services, and listing services are provided at no cost to
Agent as it relates to the AST suite of products
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Market
and Sales Plan .
The Agent shall prior to the signing of this agreement submit and
have approved by AST a Marketing and Sales Plan for no less than 3
years committing the sale and/or rental of no less than 150
Provider Licenses in the 1st twelve month period following the
signing of this agreement, with minimum growth per annum thereafter
of 20% accumulative. Failure to do this will be considered a
material breach of this agreement.
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AST shall not
change the marketing plan during this agreement without first
discussing it with Agent and in the event that mutual agreement
cannot be reached will provide at least 12 months' notice of any
such change. Should agreement not be reached, Agent may maintain
its existing "book of business" and cease making sales under this
agreement without prejudice so long as Agent meets its support
obligations to its clients and financial obligations to
AST,
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Competence Agent agrees to comply in full with Section 1.
Subparagraph b of this agreement and provide and acquire
appropriate staffing, training and any other requirements for the
marketing, and sales of the AST Suite of Products, and to comply
with the AST training, support, shipping and payment
terms.
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Conduct Agent shall undertake no acts injurious to the
business or goodwill of AST. Agent shall use its best efforts to
promote AST and its products and service and shall promptly report
and follow up all leads provided. Agent may offer or promote
competitive products without the consent of AST.
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Independent
Entities Notwithstanding
the use of the designation "Sales Agent". Agent is an independent
contractor and shall at no time have the power [1] to bind AST; [2]
to Agent any terms, conditions, warranties or covenants made by AST
or [3] to create in favour of any person any rights, which AST has
not previously sales in writing.
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Form of
Relationship The
relationship under this Agreement shall not create any legal
partnership, franchise relationship, agency or other form of legal
association between the parties, which would impose a liability of
one party upon the other.
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Insurance Agent or its successors shall maintain during
the term of this Agreement and while it is still responsible for
its Book of Business: [1] all required workers' compensation or
similar insurance; and [2] comprehensive general liability
insurance. Agent shall promptly supply AST with proof of such
insurance upon request. AST or its successors shall maintain
comprehensive general liability and errors and omissions insurance
for the AST Suite of products. AST shall promptly supply Agent with
proof of such insurance upon request.
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Records Agent shall supply to AST the full business data
of each customer as a qualified prospect and at the time of sale
and shall, during this Agreement and while it is still responsible
for its Book of Business, and for a period of one year after the
termination of this Agreement maintain records sufficient for AST
to verify amounts due under this Agreement relating to the
contracts, invoices, accounts, complaints, and other transactions
relating to the placement and licensing of the AST Suite of
Products. AST may directly, or through its Agent at any time during
normal business hours, upon no less than 10 business days' notice,
and for any reason inspect such records and other financial
information relevant to AST products as sold by Agent to its end
users, solely for the purpose of verifying amounts due under this
Agreement. Any such information will be confidential information of
Agent subject to the provisions of Section 4.
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Sub-Agents Agent shall not be permitted to establish
sub-Agents without the express written consent of AST.
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Corrupt
Practices Agent
represents that it will not make any payment or transfer anything
of value, directly or indirectly, to any government official or
employee; to any officer, director, employee, or representative, or
Agent of any actual or potential customer; or to any other person
or entity if such payments would violate applicable
laws.
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Prospects Agent will provide AST with a list of active
prospects on a regular basis as outlined in Section Subparagraph b
of this agreement. AST will use its best efforts to protect these
prospects from being solicited by its other Agents or distributors,
and to refrain from solicitation directly by AST, while taking into
account prospect's wishes, and in as much as allowed by applicable
laws. Agent in return agrees to respect active prospect lists of
AST's other Agents. For the above purposes, an active prospect is
defined as a prospect who is contacted by the Agent at least once
every six (6) weeks and where details of each such contact are
logged with AST.
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3.
WARRANTY AND LIMITATIONS
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General
Warranties AST represents and warrants to Agent that [I) it has
sufficient right, title and interest in and to the AST Suite of
Products to enter into this Agreement; and [2] that all AST Suite
of Products distributed to Agent is free and clear of all
liens.
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AST Suite of
Products Warranties Agent's exclusive warranty regarding the AST
Suite of Products is set forth in the applicable EULA provided with
the AST Suite of products.
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EXCEPT AS
STATED ABOVE, AST MAKES NO OTHER WARRANTIES REGARDING THE AST SUITE
OF PRODUCTS AND DOCUMENTATION, AND ANY SERVICES PROVIDED BY AST
INCLUDING, WITHOUT LIMITATION, EXPRESS OR IMPLIED WARRANTIES, AND
EXPRESSLY DISCLAIMS THE WARRANTIES OF FITNESS FOR A PARTICULAR
PURPOSE OR MERCHANTABILITY. AND ANY OTHER WARRANTY, EXPRESS OR
IMPLIED.
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IN NO EVENT
SHALL AST BE LIABLE FOR INDIRECT, CONSEQUENTIAL, OR INCIDENTAL
DAMAGES (INCLUDING DAMAGES FOR LOSS OF BUSINESS PROFITS, BUSINESS
INTERRUPTION, LOSS OF BUSINESS INFORMATION, AND THE LIKE) ARISING
OUT OF THE RELATIONSHIP BETWEEN AST AND AGENT EVEN IF IT HAS BEEN
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
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AST's
CUMULATIVE LIABILITY UNDER THIS AGREEMENT, INCLUDING ANY CAUSE OF
ACTION IN CONTRACT, TORT OR STRICT LIABILITY, SHALL BE LIMITED TO
THE LICENSE FEES PAID BY AGENT DURING THE 12 MONTHS PRIOR TO SUCH
EVENT. AST's LIMITATION OF LIABILITY IS CUMULATIVE WITH ALL AST
EXPENDITURES TO ADDRESS LIABILITY BEING AGGREGATED TO DETERMINE
SATISFACTION OF THE LIMIT. AGENT RELEASES AST FROM ALL OBLIGATIONS,
LIABILITIES, CLAIMS OR DEMANDS IN EXCESS OF THE LIMITATION. THE
PARTIES ACKNOWLEDGE THAT OTHER PARTS OF THIS AGREEMENT RELY UPON
THE INCLUSION OF THIS SECTION AND THE RESULTING ALLOCATION OF
RISKS.
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Agent
Actions AST shall have no
obligation to any party under any warranty given by Agent, its
Agents or employees. Agent shall not make any representation or
warranty with respect to the AST Suite of Products other than those
stated by AST in its written warranty, documentation and
literature.
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Agent
Indemnification Agent
agrees to indemnify AST and to hold it harmless from and against
any loss, damage, claims or demands whatsoever arising out of
Agent's activities that are outside the scope of the EULA provided
by AST to the end user regarding use of AST suite of Products. AST
makes its representations and warrants to the end user and limits
of liability therein via the EULA.
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Complaints Agent shall make all reasonable efforts to
handle all incidents of customer complaints or demands regarding
the AST Suite of Products and shall report promptly to AST all such
incidents.
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AST
indemnification AST
agrees to indemnify Agent and to hold it harmless from and against
any loss, damage, claims or demands whatsoever arising out
of;
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Intellectual
property infringement arising from the AST Suite of Products;
breach of implied warranty or negligence.
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Activities that
are outside the scope of the EULA provided by AST and issued to the
customer through Agent regarding the use of the AST Suite of
Products. AST further agrees to indemnify AGENT and to hold it
harmless from and against any loss, damage, claims, or demands
whatsoever arising out of AST's activities that are outside the
scope of this North American Sales Agent Agreement.
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Each party
agrees not to disclose any confidential information received from
the other in any form to any employees who do not have a specific
need to use such information or to any outside party (including
contractors) without the other party's prior written consent. All
employees or contractors who receive such confidential information
must be bound by written agreement not to disclose such information
to any other party. Each party acknowledges that the unauthorized
disclosure or use of confidential information of the other party
would cause irreparable harm and significant injury to the other
party that may be difficult to compensate. Accordingly, each party
agrees that the other party will have the right to seek and obtain
temporary and permanent injunctive relief in addition to any other
rights and remedies it may have. The obligations of confidentiality
shall not apply to information which [1] is in public domain at the
time of disclosure, [2] has been released by the other party
without restrictions, [3] has been lawfully obtained by the
disclosing party from a third party under no obligation of
confidentiality, or [4] is independently developed by employees of
the disclosing party without access to the confidential
information.
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Definition "Trademarks" means any and all current or future
company names, product names, marks, logos, designs, trade dress
and other designations or brands used by AST in connection with its
products and services and all marks similar thereto.
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License AST grants Agent the right to use the Trademarks
solely for the purpose of distributing and marketing the AST Suite
of Products, provided that Agent: [1] uses the appropriate
Trademarks for the corresponding AST Suite of Products; [2]
identifies all Trademarks are registered trademarks of AST; and [3]
take reasonable steps to modify all objectionable uses of the
Trademarks. AST reserves the right to revoke or limit the use of
Trademarks at any time upon reasonable notice. Non-Compliance with
Trademark and Logo Policies shall be considered a material breach
of this Agreement.
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Ownership Agent acknowledges that AST is the sole owner of
the Trademarks and nothing herein shall grant to Agent any right or
interest in the Trademarks. Agent shall not register, or attempt to
register, any Trademarks or any marks confusingly similar thereto
in any jurisdiction.
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Limitations Except as stated above, Agent is granted no
right, title, license or interest in the Trademarks. Agent
acknowledges AST rights in the Trademarks and agrees that any and
all use Trademarks by Agent shall inure to the sole benefit of AST.
Agent agrees that it shall take no action inconsistent with AST
ownership of the Trademarks and agrees not to challenge AST rights
in or attempt to register any of the Trademarks, or any other name
or mark owned or used by AST or any mark confusingly similar
thereto. If at any time Agent acquires any rights in, or any
registration or application for, any of the Trademarks by operation
of law or otherwise, it will immediately, upon request by AST and
at no expense to AST, assign such rights, registrations, or
applications to AST, along with any and all associated
goodwill.
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