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North American Authorized Agency Agreement

Agency Agreement

North American Authorized Agency Agreement | Document Parties: KALLO INC. | Advanced Software Technologies, Inc | Diamond Technologies Inc | Mountain Medical Technologies, Inc You are currently viewing:
This Agency Agreement involves

KALLO INC. | Advanced Software Technologies, Inc | Diamond Technologies Inc | Mountain Medical Technologies, Inc

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Title: North American Authorized Agency Agreement
Governing Law: Nevada     Date: 12/16/2010
Industry: Software and Programming     Sector: Technology

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Exhibit 10.1

 

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:

 

1. DEFINITIONS

 

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

 

a)   

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.

 

b)   

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 .

 

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.

 

c)   

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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d)   

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.

 

e)   

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.

 

f)   

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.

 

g)   

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.

 

h)   

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

 

i)   

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.

 

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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j)   

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.

 

k)   

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.

 

l)   

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.

 

m)   

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.

 

n)   

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.

 

o)   

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.

 

p)   

Sub-Agents Agent shall not be permitted to establish sub-Agents without the express written consent of AST.

 

q)  

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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r)   

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.

 

3. WARRANTY AND LIMITATIONS

 

a)   

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.

 

b)   

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.

 

Limitation of Warranties

 

c)   

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.

 

d)   

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.

 

e)   

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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f)   

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.

 

g)   

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.

 

h)   

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.

 

i)   

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;

 

a)  

Intellectual property infringement arising from the AST Suite of Products; breach of implied warranty or negligence.

 

b)  

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.

 

4. CONFIDENTIALITY

 

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.

 

5. TRADEMARKS

 

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a)   

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.

 

b)   

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.

 

c)   

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.

 

d)   

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.

 

e)   

Notif


 
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