THIS AGREEMENT made effective the 22nd day of September, 2000.
BETWEEN:
XXXXXXXXXXXXX.XXX, INC. a corporation duly incorporated with its head
offices located in Xxxxxxx, Xxxxxxx, Xxxxxx (Hereinafter referred to as
"TheMotorpages")
- and -
ASSET RECOVERY, a corporation duly incorporated pursuant to the laws of
the Dominion of Canada (Hereinafter referred to as "ASSET RECOVERY")
SALES/SERVICE AGREEMENT
-----------------------
WHEREAS:
A. XxxXxxxxxxxxx.xxx has developed proprietary Internet technologies. The
Internet site xxx.xxxxxxxxxxxxx.xxx is a Business to Business Internet
automotive portal designed to enhance and promote the sale of "off
lease" vehicles between remarketer and an exclusive automotive Dealer
Network. The venue is XxxXxxxxxxxxx.xxx's Virtual Private Dealer
Network.
B. ASSET RECOVERY is an auto fleet remarketing company and has developed
auto resale marketing programs, post sale services, systems, and
technologies.
C. This Agreement contains the provision of computer-mediated information
services for ASSET RECOVERY's inventories to feature their inventories
on the Internet site xxx.xxxxxxxxxxxxx.xxx for resale through the
Virtual Private Dealer Network and On-line Tendering System.
D. This Agreement sets out the terms by which TheMotorpages and ASSET
RECOVERY will work co-operatively in the promotion and sale of vehicles
supplied by ASSET RECOVERY through the Online Tendering System
contained in XxxXxxxxxxxxx.xxx's Virtual Private Dealer Network.
E. The parties agree to share and complement proprietary information
technologies whereby TheMotorpages shall customize its Internet
technology and develop the implementation of an Internet Marketing
Strategy for the ASSET RECOVERY vehicle inventory.
F. The Parties wish to enter into a strategic alliance whereby they commit
to collaborate to providing automotive industry dealerships with
information on the availability of ASSET RECOVERY vehicles to
facilitate the auto purchase process through the utilization of the
On-line Tendering System.
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NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration of these
provisions and the representations and agreements herein contained it is hereby
mutually agreed as follows:
1. Internet Services
-----------------
TheMotorpages shall provide to ASSET RECOVERY full access to the Online
Tendering System technology as contained in the Virtual Private Dealer
Network of the web site xxx.xxxxxxxxxxxxx.xxx. ASSET RECOVERY shall be
entitled to up-load its full remarketing automotive inventory with no
limitation as to quantity. Each inventory vehicle shall be described by
the provision of a digitally generated color image, conditioning report
and full vehicle particulars as to model, year, odometer reading,
specifications, options, minimum acceptable tender price (reserve bid)
and all other relevant information to allow a prospective purchaser to
make an informed decision with respect to the tender amount.
2. Remarketing Services
--------------------
TheMotorpages through its strategic alliance partnerships can offer the
following remarketing services when and as required, in accordance with
its standard rates:
a. Transportation (pick-up at site and deliver to remarketing center)
b. Cosmetic reconditioning
c. On-site Live Bid
d. Conditioning Report
e. Marshaling
f. Title changes
g. Transportation to purchaser's desired location
h. Collect of Buyer & Seller fees and distribution of these fees
3. Term
----
The term of this agreement shall be for two years from date set out
above and shall be renewed by both parties at any time during this
agreement. If either such party wishes to cancel this agreement, the
party must give written notice of cancellation within 90 days notice of
such date.
4. Exclusivity
-----------
ASSET RECOVERY agrees that during the term of this Agreement it shall
not utilize the services of any other Internet automotive service
portal for the listing or sale of its automotive inventories, with the
exception of its own Internet site.
5. Dealer Member Network
---------------------
ASSET RECOVERY and XxxXxxxxXxxxx.xxx will co-promote the availability
of ASSET RECOVERY'S vehicle inventories on XxxXxxxxxxxxx.xxx's portal
site. ASSET RECOVERY shall advise their membership to become Dealer
Members of XxxXxxxxxxxxx.xxx to ensure that all ASSET RECOVERY member
dealers have access to their vehicles on XxxXxxxxXxxxx.xxx's weekly
Online Tendering process. It is agreed that each ASSET RECOVERY's
member dealer shall pay a fee of $730.00 annually as a membership fee
to XxxXxxxxxxxxx.xxx in order to bid on the ASSET RECOVERY vehicle
inventories.
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6. Coding of Information
---------------------
ASSET RECOVERY shall be responsible for the accuracy and completeness
of the information and photos up-loaded to the Online Tendering System
for all vehicles and shall provide all required personnel to complete
the task of up-loading such vehicle information and photos. In the
event that ASSET RECOVERY requires the services of TheMotorpages to
assist with the process of up-loading vehicle information to the Online
Tendering System, then ASSET RECOVERY agrees to compensate The
Xxxxxxxxxx.xxx in accordance with its standard rate.
7. Tendering Process - Notification
--------------------------------
ASSET RECOVERY shall notify all of its dealer members, via e-mail or
fax 24 hours in advance of each scheduled tender process providing the
start and end times for that tender process. TheMotorpages shall notify
ASSET RECOVERY via e-mail immediately after the completion of a tender
process, providing details of all bids submitted including and
identifying the highest tender on the ASSET RECOVERY on-line inventory.
8. Tendering Process - Timing
--------------------------
TheMotorpages shall conduct a tendering process for ASSET RECOVERY auto
inventory on every Tuesday and Thursday of each week unless ASSET
RECOVERY provides 48 hour notice that any such tender process shall not
include ASSET RECOVERY inventory. ASSET RECOVERY shall have the option
of conducting additional tenders upon providing 48 hours notification
to TheMotorpages.
9. Fees
----
ASSET RECOVERY shall pay to TheMotorpages a transaction fee of $150
($75.00 buyers fee/$75.00 sellers fee) for every vehicle that receives
a tender price offer equal to or in excess of the minimum acceptable
tender price (reserve bid) as set out for any particular vehicle. ASSET
RECOVERY shall be responsible to finalize the sale to the successful
purchaser, deliver the vehicle to the successful purchaser, and to
collect the $75 buyers fee from the successful purchaser.
10. Annual Member Discount
----------------------
The Motorpages shall pay to ASSET RECOVERY a fee equal to 10% of the
$75.00 per vehicle buyers' transaction fee, paid by the identified
ASSET RECOVERY member dealers on an annual basis.
11. Payment of Fees
---------------
ASSET RECOVERY shall submit payment (buyer and sellers fees) for any
particular tendering process within fifteen days of closing of tender.
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12. Confidentiality
---------------
It is understood that in the provision of these services TheMotorpages
may disclose confidential and proprietary information to ASSET RECOVERY
and ASSET RECOVERY may disclose confidential information to
TheMotorpages as per the following:
(a) Confidential Information and Confidential Materials are
proffered to each of the parties as such. All Confidential
Information and Confidential Materials disclosed by the
parties will thus be received and held in confidence by the
Recipient.
(b) TheMotorpages will furnish to ASSET RECOVERY documentary
information and tangible items relating to the development of
the Online Tendering System to the extent necessary to permit
ASSET RECOVERY to determine the applicability of the Online
Tendering system to ASSET RECOVERY's operations, ASSET
RECOVERY's interest in negotiating this Agreement and ASSET
RECOVERY's special Online Tendering system development
requirements.
(c) ASSET RECOVERY will provide TheMotorpages with information
relating to its operations individual Online Tendering System
requirements. TheMotorpages shall return any such documentary
information to ASSET RECOVERY.
(d) The parties hereto will restrict disclosure of Confidential
Information and Confidential Materials to the minimum number
of persons required to enable each of them to further appraise
its value, including relevant members of their respective
staff. However, each person to whom disclosure is made shall,
before the disclosure takes place, enter into a
confidentiality agreement.
(e) The parties agree that the confidentiality and use provisions
of this Agreement shall not apply to any information which
appears in printed publications in integrated form or which
otherwise is or becomes generally known in the industry; any
information which the Parties can show by written records was
in the Parties' possession prior to the disclosure; or any
information which comes into the Parties' possession without
covenants of secrecy from another party who is under no
obligation to maintain the confidentiality of the information.
(f) The burden of proving these exceptions to the confidentiality
and use provisions of this Agreement resides with the
recipient of such information.
(g) The parties shall return all Confidential Materials that it
has received from the other Party such as summaries, records,
descriptions, modifications, drawings and adaptations that the
Parties have made from the Confidential Materials and
Information provided by the other.
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13. Severability
------------
The invalidity of all or any part of any section of this Agreement
shall not render invalid the remainder of this Agreement or section and
any such provision of this Agreement that is so broad as to be
unenforceable shall be interpreted to be only so broad as is
enforceable.
14. Headings
--------
The headings of sections, subsections and paragraphs of this Agreement
are inserted for convenience only and shall not control or effect the
meaning of construction of any of its provisions.
15. Expenses, Etc.
--------------
Except as otherwise provided for herein, whether or not the
transactions contemplated by this Agreement are consummated, each party
hereto shall pay his or its own expenses and the fees and expenses of
their respective counsel, accountants and other experts.
16. Waiver
------
No action taken pursuant to this Agreement, including any investigation
by or on behalf of any party, shall be deemed to constitute a waiver by
the party taking such action or compliance with any representation,
warranty, covenant or agreement contained herein, and the waiver by any
party hereto of a breach of any provision of this Agreement shall not
operate or be construed as a waiver of any subsequent breach.
17. Binding Effect, Benefit
-----------------------
This Agreement shall enure to the benefit of and shall be binding upon
the parties hereto and their respective heirs, personal
representatives, successors and assigns.
18. Notices
-------
All notices, requests, demands and other communications which are
required to be or may be given under this Agreement shall be in writing
and shall be deemed to have been duly given when delivered in person or
transmitted by telex or other telecommunication facility or on receipt
after dispatch by certified or registered first class mail, postage
prepaid, return receipt requested, to the party to whom the same is so
given or made as follows:
if to XXXXXXXXXXXXX.XXX to:
00 Xxxxxx Xx.
Xxxxxxx, Xxxxxxx
X0X 0X0
Tel: 000 000 0000
if to ASSET RECOVERY to:
00 Xxxxxx Xx.
Xxxxxxx, Xxxxxxx
X0X 0X0
Tel: 000 000 0000
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19. Entire Agreement, Amendment
---------------------------
This Agreement constitutes the entire agreement and supersedes all
prior agreements and understandings, oral and written, between the
parties hereto with respect to the subject matter hereof and may not be
amended, modified or terminated unless in a written instrument executed
by the party or parties sought to be bound.
20. Counterparts
------------
This Agreement may be executed in any number of counterparts, each of
which when executed, shall be deemed to be an original and all of which
together shall be deemed to be one and the same instrument.
21. Gender, Singular and Plural
---------------------------
Any reference in this Agreement in the masculine gender shall include
the feminine and neuter genders, and vice versa, as appropriate and any
reference in this Agreement in the singular shall mean the plural, and
vice versa, as appropriate.
22. Third Parties
-------------
Nothing in this Agreement, whether expressed or implied, is intended to
confer any rights or remedies on any person other than the parties to
this Agreement, nor is anything in this Agreement intended to relive or
discharge the obligation or liability of any third party, nor shall any
provision give any third party any right of subrogation or action
against any party to this Agreement.
23. Governing Law
-------------
This Agreement shall be construed as to both validity and performance
and enforced in accordance with and governed by the laws of the
Province of Ontario and both parties agree to attorn to the
jurisdiction of the Courts of Ontario in the event of any dispute.
24. Currency
--------
All currencies referred to in this Agreement are stated in the lawful
currency of Canada,.
25. Waiver of Breach
----------------
The waiver of any breach of any provision of this Agreement or failure
to enforce any provisions hereof shall not operate or be construed as a
waiver of any subsequent breach by any party.
26. Disputes
--------
In any litigation or disputes arising out of this Agreement they
prevailing party will be entitled to recover all reasonable costs and
attorney fees, including costs and fees on appeal.
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27. Rights Cumulative
-----------------
The provisions of this Agreement shall not be construed as limiting any
rights or remedies that either party may otherwise have under the
applicable law.
28. Independent Counsel
-------------------
Each party acknowledges that it has retained independent counsel to
review the terms of this Agreement and to advise as to the legal effect
this effect will have upon the respective rights and obligations
arising hereunder.
29. Time of Essence
---------------
Time is of the Essence.
30. Assignment Clause
-----------------
This Agreement may not be assigned without the written consent of the
TheMotorpages.
31. Force Majeure
-------------
Neither party hereto shall be responsible for the failure or delay in
performing any of its obligations due to causes beyond its control and
these causes shall include, but shall not be restricted to, fire,
storm, flood, earthquake, explosion, accident, acts of a public enemy,
war, rebellion, insurrection, sabotage, epidemic, labor disputes,
transportation embargoes, or acts of God, rules, regulations, orders or
directives of any national government or agency thereof, acts, rules,
regulations, orders or directives of any provincial or local government
or agency thereof, or the order of any court of competent jurisdiction.
32. Relationship of Parties
-----------------------
The parties to this Agreement are independent contractors, and nothing
herein shall be construed as creating or evidencing either a
partnership or an agency or any employment relationship between the
parties or giving one party the authority to contract for or bind the
other.
XxxXxxxxxxxxx.xxx reserves the right to disclose this relationship to
its shareholders and pre-existing Dealer Members.
[the remainder of this page left blank intentionally]
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IN WITNESS WHEREOF the parties hereto have hereunto executed this
Agreement by the hands of their duly authorized officers as of the day and year
first above written.
XXXXXXXXXXXXX.XXX
Per: Dated:
------------------------------- -------------------------
Xxxxx X. Xxxxxxxx
Vice President Sales Marketing
ASSET RECOVERY
Per: /s/ X. Xxxxx Dated:
------------------------------- -------------------------
X. Xxxxx
