Exhibit 10.3
DEALER AGREEMENT
American Soil Technologies, Inc., having its main office at 00000 Xxxxxxxx
Xxxxxx, Xxxxxxx, XX 00000 (hereinafter called "ASTI."), hereby appoints and
authorizes: Xxxx Xxxxxx Distributing with its principal place of business
located in Pasco Washington, (hereinafter called "Dealer"), to act as a dealer
to sell on a nonexclusive basis the products listed on SCHEDULE I hereto (the
"Products"). Dealer hereby accepts this appointment and agrees to purchase and
resell the Products under the terms and conditions set forth below.
1. TERM.
This Agreement shall be effective as of the date it is signed and accepted
by ASTI. and continue for a period of three (3) years unless terminated pursuant
to the provisions set forth in Section 6. Sections 7(D) and (F) shall survive
termination hereof.
2. PRIMARY TRADE AREA.
The Dealer's Primary Trade Area is set forth in SCHEDULE II. Dealer
acknowledges that it is a non-exclusive dealer of the Products in its primary
trade area and an exclusive dealer as to the accounts established by the Dealer
and made a part of SCHEDULE III.
3. MINIMUM QUANTITY.
Dealer will not be required to stock a minimum quantity of the Products for
the first two years of this Agreement. ASTI shall ship the Products directly to
Dealer FOB ASTI's warehouse
4. DIRECT PURCHASES.
All purchases and return of Products from ASTI by Dealer shall be made
pursuant to a written purchase order from Dealer and shall be governed by
ASTI.'s price, delivery, payment and other terms then in effect. No inconsistent
terms in any purchase order, acknowledgement or transmittal or confirming
document shall be effective to alter the terms of this Agreement.
5. SALES SUPPORT.
Dealer shall support all sales of the Products in a commercially reasonable
manner as is customary in the industry and appropriate for each sale, including
but not limited to: maintaining a sales force, developing a marketing and sales
plan with ASTI.'s account manager, and post-sales follow up with ASTI.'s account
manager.
ASTI shall be the technical advisor to the Dealer and Agriculture and Turf
installation directions received from ASTI for the Products shall be mandatory.
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6. TERM AND TERMINATION
This Agreement may be terminated: (1) at any time by the mutual consent of
the parties in writing, effective as provided therein; (2) upon thirty (30) days
written notice by Dealer to ASTI without cause; or (3) with cause by either
party at any time by giving the other party thirty (30) days notice, in writing,
by registered or certified mail, of such termination.
(a) This Agreement shall expire three (3) years from the date of execution.
This Agreement shall automatically renew under the same terms and conditions in
additional three (3) year increments unless either party is in default of any
material term of this Agreement. If a material default exists hereunder, the
non-defaulting party shall give the defaulting party thirty (30) days written
notice to cure the default or, if the default may not be cured in such time, a
reasonable amount of time to cure the default. If the defaulting party is unable
to cure the within the time frame specified, this Agreement shall be voidable by
the non-defaulting party.
(b) ASTI warrants that it shall conduct the renewal of this Agreement in
good faith. If, after the expiration of the five-year renewal period specified
in 11(a) above without renewal, ASTI elects to appoint a new dealer for an
exclusive customer of Dealer, ASTI shall provide a copy of such agreement to
Dealer. Dealer shall have thirty (30) days to match the terms of such agreement.
If Dealer agrees to the terms of such agreement, ASTI shall renew Dealer as the
exclusive dealer for that customer.
(c) The Parties acknowledge that upon the expiration of this Agreement,
ASTI shall have no right to require Dealer to continue to act as a Dealer of
Products, or of any of them, and Dealer shall have no right to require ASTI to
continue to supply Products, or any of them, to Dealer. In the event of
expiration or termination of this Agreement ASTI shall execute delivery on all
orders placed with and accepted by it and Dealer shall accept shipment and make
payment for any such orders, all in accordance with the provisions of this
Agreement even though termination or expiration has been effected.
This Agreement may be canceled by the non-offending party prior to the
expiration of the contract term on any of the following grounds:
(1) A trustee, receiver, or other similar custodian is appointed for all or
any substantial part of the other party's property:
(2) When the aggregate of one party's property, exclusive of any property
which it may have conveyed, transferred, concealed, removed or permitted to be
concealed or removed, with intent to defraud, hinder, or delay its creditors,
shall not at a fair valuation be sufficient in amount to pay its debts, or the
party is unable, by its available assets or the honest use of credit, to pay its
debts as they become due;
(3) The other party files a petition, or an answer not denying
jurisdiction, in bankruptcy or under Chapter 7 or 11 of the Federal Bankruptcy
Code or any similar law, state or Federal, whether now or hereafter existing, or
such a petition is filed against the other party and not vacated or stayed
within fifteen (15) days;
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(4) The other party makes an assignment for the benefit of creditors;
(5) An attachment, or any like process, is levied or filed against any
substantial part of the other party's property, and is not discharged within
fifteen (15) days;
(6) A judgment is rendered against the other party and remains unsatisfied,
unstayed or otherwise unsuperseded for sixty days (60) and is substantial in
relation to other party's assets;
(7) The other party ceases to have in effect a valid Federal, state or
local license required for the carrying out of the provisions of this Agreement,
whether through revocation, failure or renew, or suspension for more than thirty
(30) days;
(8) A law is enacted making the sale of Products unlawful;
(9) The other party engages in any act with respect to the Products which
is in violation of any Federal or state law, regardless of whether such
violation is prosecuted by any administrative of judicial body which violation
results in a loss of the licenses necessary to distribute or supply the
Products;
(10) The other party does not comply with credit terms as agreed to between
the parties.
(11) An assignment pledge or any other security interest is created in all,
or a substantial part of the other party's assets without the prior written
consent of the non-assigning party;
(12) A breach of any provision of this Agreement, other than those set
forth in subparagraphs (1) through (11) above, if said breach remains
uncorrected for thirty (30) days after written notice thereof.
(13) Failure by the Dealer to meet the minimum sales required, if any.
(14) The Dealer sells competitive products that are substantially the same
as those supplied by ASTI without ASTI's written permission.
A cancellation pursuant to paragraphs 6 (1) through 6 (14) above shall take
effect commencing with the thirtieth day after written notice is given to the
party whose rights are to be canceled.
7. GENERAL PROVISIONS.
A. The provisions of this Agreement shall apply to all Products shipped to
Dealer's customers or Dealer under any prior agreement with ASTI. as well as
Products shipped to Dealer's customer on or after the date hereof.
B. Any notice to be given hereunder shall be in writing and delivered
personally, sent by fax, sent by reputable courier service, or sent by certified
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or registered mail, postage prepaid, return receipt requested, addressed to the
party concerned at the following address:
If to ASTI.:
American Soil Technologies, Inc.
0000 Xxxxxxxx Xxxxxx,
Xxxxxxx, XX 00000
Attn: President
Telephone No.: (000) 000 0000
Telecopier No.: (000) 000 0000
If to Dealer:
Xxxx Xxxxxx Distributing
Xxxx Xxxxxx Xxx 0000
Xxxxx, XX
Telephone No.: (000) 000 0000
Telecopier No.: (000) 000 0000
Any party may change its address for purposes of this Agreement by notice given
in compliance with this paragraph. All such notices, requests, demands and
communications shall be deemed to have been given on the date of delivery if
personally delivered, sent by fax or sent by reputable courier service; or on
the tenth (10th) business day following the mailing thereof if sent by mail,
postage prepaid.
C. This Agreement shall be governed by and construed in accordance with the
internal substantive laws and judicial decisions of the State of California
without giving effect to its conflict of laws provisions.
D. Each party hereto consents to the exclusive jurisdiction of either the
Superior Court of Los Angeles County, California or the United States District
Court for the Middle District of California for purposes of any action brought
under or as the result of a breach of this Agreement, and they each waive any
objection thereto. The parties hereto each further consent and agree that the
venue of any action brought under or as a result of a breach of this Agreement
shall be proper in either of the above-named courts and they each waive any
objection thereto.
E. This Agreement shall be binding upon, and shall be for the benefit of,
the parties and their respective successors and permitted assigns; provided,
however, that Dealer may not assign this Agreement without ASTI.'s prior written
consent. Failure of either party to enforce at any time the provisions of this
Agreement shall not be construed to be a waiver of such provisions or of the
right of such party thereafter to enforce such provisions.
F. This Agreement contains the entire agreement of the parties relating to
the subject matter hereof and replaces all other understandings and agreements,
whether oral or in writing, previously entered into by the parties with respect
to such subject matter. This Agreement will not be amended or modified in any
way except by an agreement in writing signed by duly authorized representatives
of the parties.
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IN WITNESS WHEREOF, the parties have executed this Agreement.
Xxxx Xxxxxx Distributing American Soil Technologies, Inc.
By /s/ Xxxx Xxxxxx By: /s/ Xxxx X. Xxxxx
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Xxxx Xxxxxx Xxxx X. Xxxxx
Its, President & CEO
Date 8/2/04 Date 7/31/04
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SCHEDULE I
PRODUCTS
Agriblend (R), Nutrimoist (R)L, Stockosorb (R) C, M, S and F, Baraclear(R), ASTI
Gras 120 Flocculant, Nutrimoist Hydromulch, Nutrimoist Turf Bio Blend 1 & 2 and
other products to be added from time to time.
It is also understood that the product names may be changed from time to time
with adequate notice to the Dealer.
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Schedule II
TERRITORY
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Schedule III
Exclusive Customers to be added and made a part of this Schedule.
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