EXCLUSIVE PLUS ONE AUTHORIZED AGENCY AGREEMENT FOR COMMERCIAL MOBILE RADIO SERVICE BETWEEN US TELEMATICS AND VERIZON WIRELESS VERIZON WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION NOT TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN...
EXCLUSIVE
PLUS ONE
FOR
COMMERCIAL
MOBILE RADIO SERVICE
BETWEEN
US
TELEMATICS
AND
VERIZON
WIRELESS
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
EXCLUSIVE
PLUS ONE
for
COMMERCIAL
MOBILE RADIO SERVICE
BETWEEN
US
TELEMATICS
and
VERIZON
WIRELESS
TABLE
OF CONTENTS
SECTION
|
PAGE
NO.
|
|
1.
|
DEFINITIONS
|
1
|
2.
|
RELATIONSHIP
OF THE PARTIES
|
4
|
3.
|
DUTIES
AND RESPONSIBILITIES OF AUTHORIZED AGENT
|
7
|
4.
|
EQUIPMENT
SALE, LEASE, ACTIVATION AND/OR INSTALLATION,
|
|
WARRANTY
AND MAINTENANCE
|
12
|
|
5.
|
COMPENSATION
|
14
|
6.
|
AGENT’S
OPERATING MATTERS
|
16
|
7.
|
USE
OF MARKS BY AUTHORIZED AGENT
|
22
|
8.
|
TERM
OF RELATIONSHIP
|
25
|
9.
|
TERMINATION
OF AGREEMENT
|
26
|
10.
|
OUTSTANDING
DEBTS AND OFFSET
|
28
|
11.
|
MISCELLANEOUS
|
29
|
12.
|
ACKNOWLEDGEMENTS
AND REPRESENTATIONS
|
32
|
13.
|
INDEPENDENT
INVESTIGATION/DISCLAIMER OF REPRESENTATIONS
|
32
|
14.
|
LIMITED
LIABILITY
|
34
|
15.
|
DISPUTE
RESOLUTION AND ARBITRATION
|
35
|
16.
|
WAIVER
OF TRIAL BY JURY
|
40
|
17.
|
NOTICE
|
40
|
18.
|
ENTIRE
AGREEMENT
|
41
|
EXHIBIT
A
|
AUTHORIZED
AREA/AGENT LOCATIONS
|
|
EXHIBIT
B
|
COMPENSATION
PROGRAM
|
|
EXHIBIT
C
|
COMPLIANCE
GUIDELINES FOR VERIZON WIRELESS' SALES AGENTS
|
|
EXHIBIT
D
|
ADVERTISING
GUIDELINES FOR VERIZON WIRELESS SALES AGENTS
|
|
EXHIBIT
E
|
NON-DISCRIMINATION
COMPLIANCE AGREEMENT
|
|
EXHIBIT
F
|
WEB-BASED
AUTOMATED SYSTEM
|
|
EXHIBIT
G
|
VERIZON
WIRELESS INDIRECT CORPORATE IDENTITY STANDARDS
|
|
EXHIBIT
H
|
STANDARD
CONDITIONS OF SALE OF EQUIPMENT AND
ACCESSORIES
|
|
EXHIBIT
I
|
VERIZON
WIRELESS INDIRECT CO-OP ADVERTISING
GUIDELINES
|
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
1
EXCLUSIVE
PLUS ONE
Between
VERIZON
WIRELESS
And
US
TELEMATICS
THIS
AGREEMENT, (hereinafter the “Agreement”) is between Cellco Partnership, on
behalf of itself and its affiliates, doing business as Verizon Wireless, located
at 0000 Xxxxxxxxx Xx., Xxxxx 0000, Xxxxxxxxxx, Xxxxxxxx 00000 (hereinafter
“Verizon Wireless”), and US
Telematics
with its
principal place of business at 000
Xxxxxxx Xxxxx, Xxxx Xxxx, XX 00000
(hereinafter “Authorized Agent”).
RECITALS
WHEREAS,
Verizon
Wireless or its Affiliates are either licensed or are otherwise authorized
to
provide Commercial Mobile Radio Service (“CMRS”) in the Area set forth in the
attached Exhibit A (“Area”), and provides CMRS to customers in that Area through
its own direct sales activities, Agents and through other distribution channels;
and
WHEREAS,
Authorized Agent wishes to be an Agent in the Area, and Verizon Wireless wishes
to appoint Authorized Agent to be an Agent in the Area.
NOW,
THEREFORE,
in
consideration of these premises and the mutual covenants exchanged below and
other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, Verizon Wireless and Authorized Agent, wishing to be
legally bound, agree as follows:
1. DEFINITIONS.
As
used
in this Agreement, the following terms shall have the meanings specified in
this
Section 1:
1.1.
|
Access.
Fees billed to Subscriber by Verizon Wireless for Subscriber’s monthly
access charge for those Subscribers activated on Verizon Wireless
CMRS by
Authorized Agent in the Area.
|
1.2.
|
Activation.
The first provision to a Subscriber of access to Service under a
Number or
Numbers assigned by Verizon Wireless in response to submission by
Authorized Agent of a Service Form or by use of any automated system
approved by Verizon Wireless.
|
1.3.
|
Affiliate.
For purposes of this Agreement, “Affiliate” shall be defined as a person,
association, co-partnership, partnership, corporation or joint-stock
company, trust or other business entity, however organized, which
is an
affiliate of that entity (hereinafter referred to singularly or
collectively as “Entity”) that directly or indirectly, through one or more
intermediaries, controls, is controlled by or is under common control
with
another Entity. Control shall be defined as:
|
1.3.1.
|
ownership
of a majority of the voting power of all classes of voting stock,
or
|
1.3.2.
|
ownership
of a majority of the beneficial interest in income and capital of
an
entity other than a corporation, or
|
1.3.3. | the legal authority, by contract or otherwise, to control the activities of another. |
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
2
1.4.
|
Agent.
As
used herein “Agent” shall mean any Entity, which has been authorized by
Verizon Wireless to directly or indirectly market CMRS on behalf
of
Verizon Wireless.
|
1.5.
|
Authorized
Agent.
As
used herein “Authorized Agent” shall, when used in connection with the
grant of rights from Verizon Wireless under this Agreement, mean
the
entity who is contracting under this Agreement and, to the extent
that
such term is used herein to describe required conduct or to obligate
Authorized Agent, term shall also include any employee, principal,
officer, agent, subagent, entity, partnership or officer of such
entity,
and shall correspondingly create an obligation on the part of Authorized
Agent to bind such other person or entity
accordingly.
|
1.6.
|
Area.
The Metropolitan Statistical Areas (“MSA”), Rural Service Areas (“RSA”),
Major Trading Areas (“MTA”) and Basic Trading Areas (“BTA”) specified in
Exhibit A to this Agreement, within which Verizon Wireless or its
Affiliates have regulatory authority or are otherwise authorized
to
provide CMRS and within which Authorized Agent is authorized to sell
Verizon Wireless’ CMRS. Authorized Agent may not offer CMRS in any Markets
in which it does not maintain an authorized business location (as
specified in Exhibit A).
|
1.7.
|
Authenticatable.
Equipment that meets published Cellular Telecommunications Industry
Association standards for A-Key random authentication as such standards
may be amended from time to time.
|
1.8.
|
Commercial
Mobile Radio Service (“CMRS”).
Each and every radio service that is defined by the Federal Communication
Commission (“FCC”) as CMRS pursuant to 47 CFR 20.9 and other provisions of
the FCC’s rules; including, but not limited to, cellular, PCS, paging,
messaging, air-to-ground, specialized mobile radio services and enhanced
specialized mobile radio services, satellite, and any other radio
service
that the FCC may in the future define as
CMRS.
|
1.9.
|
Compensation.
Any payment to Authorized Agent pursuant to this Agreement, which
may
include, but is not limited to, commissions, account maintenance
fees,
bonuses of any type, special incentive funding (“Spiff”),
advertising/cooperative funding, marketing development funding, or
any
other payments.
|
1.10.
|
Demonstration
Service.
CMRS provided to Authorized Agent at a reduced cost or at no charge,
for
the purpose of assisting Authorized Agent to solicit and sell CMRS
on
behalf of Verizon Wireless.
|
1.11. | Effective Date. Refer to Section 8 of this Agreement for definition. |
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
3
1.12.
|
Equipment.
Mobile or portable telephones and data communications devices, facsimile
machines, personal communications devices and any other wireless
or
similar devices used by Subscribers in conjunction with or in order
to
utilize CMRS, and accessories and enhancements associated therewith.
All
Equipment must be Authenticatable to be activated on the Verizon
Wireless
Network. Any activations on non-Authenticatable Equipment will not
be
eligible to receive Compensation. Digital calling plans may only
be made
available to Subscribers with digital service and a CDMA digital
phone of
the type required by the price plan (i.e., dual-mode, tri-mode or
web
enabled).
|
1.13.
|
Licensed
Marks.
Licensed Marks shall mean Verizon Wireless’ or its Affiliates’ symbols,
trademarks, trade names, trade dress, service marks, insignia, logos
and/or decorative designs which Verizon Wireless, in its sole discretion,
determines Authorized Agent is licensed to
use.
|
1.14.
|
Market.
The combination of one or more MSA, RSA, MTA and/or BTA properties
utilized by Verizon Wireless for marketing purposes, in which Verizon
Wireless is authorized to sell CMRS and in which Authorized Agent
is
authorized by Verizon Wireless to perform its obligations herein
as set
forth in Exhibit A.
|
1.15.
|
Marks.
All decorative designs, insignia, logos, names, service marks, service
names, symbols, trade dress, trademarks, trade names, or the like,
whether
registered or unregistered, which Verizon Wireless or its Affiliates
own
or are licensed or sub-licensed to use in connection with CMRS or
products
relating to CMRS.
|
1.16.
|
Net
Activation.
The difference between the previous period’s (Quarter or month as
applicable) total number of Subscriber Activations by Authorized
Agent
minus the previous period’s total number of Subscriber disconnects, for
any reason, which are disconnected one hundred eighty (180) days
or less
after the Subscribers’ date of
Activation.
|
1.17. | Number. A telephone number assigned to a Subscriber to provide access to CMRS. |
1.18.
|
Quarter.
Any given consecutive three (3) month period based on the calendar
year,
for example, the first quarter of a year would begin January 1. Partial
Quarters may be prorated.
|
1.19. | Reseller. Any entity that resells Verizon Wireless CMRS. |
1.20. | Service Forms. See Section 3.2.1. |
1.21.
|
Subscriber.
The ultimate user of CMRS provided by or through Verizon Wireless.
Subscriber purchases CMRS from Verizon Wireless and is responsible
for
payment of charges to Verizon Wireless. Each CMRS telephone number
is
deemed to be a separate Subscriber; provided, however, that in the
case of
multi-nam units there shall be deemed only one Subscriber per unit
at any
given time, regardless of how many Numbers are actually attributed
to that
unit.
|
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
4
1.22.
|
Successor.
An
entity, however organized, that succeeds to or acquires the rights,
title
or interests of another.
|
1.23.
|
Usage.
Home area billable airtime charges (excluding roaming, cellular regional
calling, landline, long distance and toll charges, taxes, surcharges,
assessments and charges outside the specific price plan’s home area) for
those Subscribers activated on Verizon Wireless CMRS by Authorized
Agent
in the Area.
|
2. RELATIONSHIP
OF THE PARTIES.
2.1.
|
Subject
to and in accordance with all the terms and conditions of this Agreement,
Verizon Wireless hereby appoints Authorized Agent as its sales agent
for
CMRS and other Verizon Wireless enhanced services used in conjunction
with
CMRS to act on its behalf in the Area.
|
2.1.1.
|
Exclusivity
by Authorized Agent.
Authorized Agent acknowledges and agrees that it may offer, sell,
and
market CMRS only on behalf of Verizon Wireless, with the following
limited
exception: In accordance with the terms and conditions of this Agreement,
Authorized Agent shall be permitted to engage in the sale of the
products
and services of one (1) other provider in the Area, namely Spint,
including any affiliate, successor or assign thereof. Neither Authorized
Agent, nor any of its Affiliates, employees, or agents, shall directly
or
indirectly:
|
2.1.1.1. Induce,
influence, or suggest that any user or prospective user of CMRS purchase CMRS
from or contract with any other Agent, Reseller, or other representative of
Verizon Wireless, or purchase CMRS from or contract with any other CMRS provider
or any agent, reseller, or other representative of such provider;
or
2.1.1.2. Share
Compensation with any other agent or reseller or other representative of any
other CMRS provider; or
2.1.1.3. Solicit
or enter into any agreement with any agent, reseller or other representative
of
any other CMRS provider that interferes with or alters Verizon Wireless’
relationship with Authorized Agent or its Agents and Resellers; or
2.1.1.4.
Act on
behalf of or otherwise represent a Verizon Wireless reseller or engage in the
resale of Verizon Wireless CMRS during the term of this Agreement.
2.2.
|
Survival
of Obligations.
Authorized Agent acknowledges and agrees that as to Subscribers activated
by Authorized Agent, the limitations in subsection 2.1.1.1 shall
survive
for a period of two (2) years following the termination or expiration
of
this Agreement or any extended term of this Agreement, including
month-to-month extensions of this
Agreement.
|
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
5
2.3.
|
No
Exclusivity by Verizon Wireless. Authorized
Agent has no exclusive rights to the Area. Among other
things:
|
2.3.1.
|
Verizon
Wireless reserves the right to market Verizon Wireless Service in
the Area
and elsewhere through its own direct sales organization, retail stores
(which it may locate anywhere wherein the Area, including in markets
in
close proximity to Authorized Agent’s Specific Locations) or other Agents,
Resellers, or otherwise on any terms it
chooses.
|
2.3.2.
|
Nothing
in this Agreement shall be deemed to restrict or prohibit Verizon
Wireless, in its sole discretion, from offering Subscribers and potential
Subscribers in the Area, through its direct sales force, other Agents
or
otherwise, volume discounts, promotional offers, new or modified
price
plans, or any other special offers for Verizon Wireless Service.
Verizon
Wireless shall have no obligation to allow Authorized Agent to offer
similar discounts, offers, or price plans.
|
2.4.
|
Authorized
Agent’s Limited Authority.
Authorized Agent has only limited authority. Among other
things:
|
2.4.1.
|
Authorized
Agent’s authority is limited to performance of its duties under this
Agreement on behalf of Verizon Wireless in the Specific Area and
the
Locations provided in Exhibit A.
|
2.4.2.
|
Authorized
Agent must obtain the prior written approval of Verizon Wireless
before
opening or acquiring any new locations where Authorized Agent intends
to
market or sell Verizon Wireless CMRS.
|
2.4.3.
|
Verizon
Wireless reserves the right to add, delete, or otherwise modify the
Area
in which Authorized Agent is authorized to operate under this Agreement
and at its reasonable discretion add or delete Specific Locations
upon
thirty (30) days prior written notice.
|
2.5.
|
No
Franchise Relationship.
Authorized Agent understands, acknowledges and expressly agrees
that
nothing contained in this Agreement or arising out of or relating
to the
relationship between it and Verizon Wireless is intended or should
be
construed to create any relationship of franchisee and franchiser
between
them. Neither Verizon Wireless nor Authorized Agent shall make
any express
or implied agreements, guarantees or representations, or incur
any
indebtedness or obligations, in the name of or on behalf of the
other.
Authorized Agent further agrees that it will not execute Franchise
Agreements (as a Franchiser), or any other form of agreement that
may be
construed to create a franchise under applicable state or federal
law,
with any third party without the express written consent of Verizon
Wireless, which shall not be unreasonably withheld. Notwithstanding
such
consent, Authorized Agent’s franchisees or licensees shall under no
circumstances be deemed to be franchisees or licensees of Verizon
Wireless.
|
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
6
2.6.
|
No
Employment Relationship.
No
employee or agent of Authorized Agent shall be, or shall be deemed
to be,
an employee or Agent of Verizon Wireless. Authorized Agent assumes
full
responsibility for all acts and omissions of its employees and agents
and
shall have sole responsibility for their supervision and
control.
|
2.7.
|
Delegation
to Subagents.
Authorized Agent may only delegate its rights and obligations as
expressly
permitted by this Agreement.
|
2.7.1.
|
Authorized
Agent may not delegate any of its rights or obligations under this
Agreement, including, but not limited to, its sales, installment,
warranty, maintenance, and use of xxxx obligations, to any subcontractor
or subagent, including, but not limited to, any Affiliate of Authorized
Agent, without the prior written consent of Verizon Wireless and:
(1)
execution by Verizon Wireless and Authorized Agent of a Subagent
Addendum
to this Agreement; and (2) the subcontractor or subagent has executed
a
subagent agreement with Authorized Agent in a form acceptable to
Verizon
Wireless.
|
2.7.2.
|
No
subcontractor or subagent may market, sell or support the marketing
or
sale of any CMRS in the Area other than Verizon Wireless CMRS unless
authorized in writing in advance by Verizon Wireless or as may otherwise
be set forth in this Agreement.
|
2.7.3.
|
Notwithstanding
anything in any subagent agreement or anywhere else, Authorized Agent
shall be and remain responsible for all acts and omissions of any
subcontractor, subagent, or other person, company, or Entity, however
organized, acting on Authorized Agent’s
behalf.
|
2.8.
|
Authorized
Agent acts as a limited Agent of Verizon Wireless and owes Verizon
Wireless the fiduciary and other obligations of an Agent to its principal
solely for purposes of identifying and activating Subscribers for
the
account of Verizon Wireless. Authorized Agent’s fiduciary obligations to
Verizon Wireless shall be limited to the performance of Authorized
Agent’s
obligations under this Agreement.
|
2.9.
|
Authorized
Agent shall not represent or promise that Subscribers shall be charged
for
CMRS at any rate other than those established by Verizon Wireless
for
which Subscriber is eligible in Verizon Wireless’ sole discretion.
Authorized Agent shall not impose any type of fees for Verizon Wireless
CMRS on Subscriber (including, but not limited to, unauthorized deposits
on credit cards, activation fees, early disconnect, chargeback, or
similar
fees), via separate contract or otherwise, other than those provided
for
in Verizon Wireless’ Service Forms or elsewhere in this Agreement. Verizon
Wireless shall not be liable to Authorized Agent for any Compensation,
in
any manner if any order for CMRS is obtained from a Subscriber by
Verizon
Wireless or by any other Verizon Wireless Agent, Reseller or other
distribution channels despite Authorized Agent’s prior solicitation of the
Subscriber placing the order.
|
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
7
2.10.
|
Authorized
Agent shall be liable for all material or equipment that Verizon
Wireless
or an Affiliate may consign to Authorized Agent in furtherance of
this
Agreement.
|
2.11.
|
Upon
enrollment of a Subscriber, that Subscriber shall become the customer
of
Verizon Wireless for CMRS, and Verizon Wireless shall offer and furnish
such customer billing services, as Verizon Wireless deems appropriate.
Verizon Wireless shall be responsible for collecting any unpaid CMRS
charges owed by Subscribers.
|
2.12.
|
Authorized
Agent shall advise all its employees, principals, officers, and servants
of the obligations set forth in this Section 2 and in Section 3 and
obtain
their written agreement to be so bound.
|
2.13.
|
No
Fiduciary Duties by Verizon Wireless.
Authorized Agent understands, acknowledges and expressly agrees that
nothing contained in this Agreement or arising out of or relating
to the
relationship between it and Verizon Wireless or any other Entity
is
intended or should be construed to create any fiduciary duties on
the part
of Verizon Wireless or its Affiliates.
|
3.
|
DUTIES
AND RESPONSIBILITIES OF AUTHORIZED
AGENT.
|
3.1.
|
General.
In
consideration for being appointed as an Agent of Verizon Wireless,
Authorized Agent shall immediately commence offering CMRS to Subscribers
and, if applicable, selling, installing, and providing warranty service
for and maintaining Equipment. Authorized Agent shall at all times
faithfully, honestly, and diligently perform its obligations hereunder,
and shall continuously exert its best efforts to promote the sale
of
Verizon Wireless’ CMRS. Authorized Agent shall promptly address Subscriber
complaints directed to it regarding
CMRS.
|
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
8
3.1.1.
|
Authorized
Agent must produce a minimum number of activations per month (“Minimum
Activation Level”) to remain an Agent. The Minimum Activation Level, which
is set forth in Exhibit B, may, at Verizon Wireless’ sole discretion, be
adjusted from time to time. Authorized Agent will receive an initial
probationary period of ninety (90) days after execution of this Agreement
to reach the Minimum Activation Level. If after the initial ninety
(90)
day probationary period Authorized Agent fails to reach the Minimum
Activation Level in any given month, Authorized Agent may be terminated
in
accordance with Section 9.1.1.2.
|
3.1.2.
|
In
the event Authorized Agent purchases Equipment from Verizon Wireless,
upon
request by Verizon Wireless, Authorized Agent agrees to secure an
irrevocable standby letter of credit in the amount required by Verizon
Wireless which amount may be increased or decreased by Verizon Wireless
at
any time. Such request will be based upon Authorized Agent’s credit
history.
|
3.2. Solicitation
and Enrollment.
3.2.1.
|
Authorized
Agent shall retain and train salespersons in the enrollment of
Subscribers, the operation of CMRS and the sale of Equipment. Authorized
Agent shall solicit Subscribers by using the most current versions
of
Verizon Wireless CMRS agreements, price plan brochures, forms and
related
material (“Service Forms”), and shall comply with all of Verizon Wireless
procedures and practices for solicitation of, presentations to, and
enrollment of Subscribers which may be amended from time to time.
Authorized Agent may not modify the terms and conditions of the Service
Forms. Authorized Agent shall not be eligible to receive Compensation
for
customers activated by Authorized Agent without properly completed,
signed
and approved Service Forms.
|
3.2.2.
|
Potential
Subscribers may be drawn from all classes of potential users for
which
Authorized Agent is authorized to sell price plans, excepting individual
Subscribers currently assigned a Number(s) by or through Verizon
Wireless
or its resellers; provided, however, that the sale of additional
new
Numbers to such Subscribers will be eligible for Compensation under
this
Agreement.
|
3.2.3.
|
Authorized
Agent shall forward Service Forms to Verizon Wireless within twenty-four
(24) hours of execution by Subscribers. Security deposits shall be
forwarded with the Service Forms, unless different criteria for the
handling of security deposits is set forth in Exhibit B, which criteria
shall supersede the requirement set forth herein. If Authorized Agent
fails to forward Service Forms within ten (10) days of its receipt
from
Subscribers, or fails to perform an activation pursuant to Verizon
Wireless procedures, Authorized Agent shall not be entitled to receive
Compensation for such Subscriber.
|
3.2.4.
|
No
contract between Verizon Wireless and a Subscriber shall exist until
the
Service Form is accepted and approved by Verizon Wireless and the
Equipment has been activated. Verizon Wireless shall have the right,
in
its sole discretion, to reject the enrollment of any Subscriber.
The
exercise of this right shall not be subject to any duty of good faith
and
fair dealing, and the decision of Verizon Wireless shall be final
and
binding.
|
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
9
3.2.5.
|
Except
as expressly provided herein, Authorized Agent shall have no right
or
obligation to xxxx or to collect from Subscribers or potential Subscribers
any money or charges for CMRS. Verizon Wireless shall have the right
to
disconnect the Subscriber for nonpayment of
service.
|
3.3.
|
Confidentiality,
Proprietary Information, Trade Secrets.
Authorized Agent shall not, without Verizon Wireless’ prior written
consent, disclose to any third party any information supplied to
it by
Verizon Wireless that is confidential or is a Verizon Wireless trade
secret. This Agreement (and all amendments thereof) and all of its
terms
and conditions shall be confidential. If Authorized Agent is served
with
any form of process to obtain such information, Authorized Agent
shall
immediately notify Verizon Wireless, which shall in addition to Authorized
Agent’s efforts, if any, have the right to seek to quash such process.
Authorized Agent shall also cooperate with Verizon Wireless in its
efforts
to obtain an order to quash such process. Authorized Agent shall
treat
Subscriber lists and all financial, technical or business information
or
data regardless of form, provided to Authorized Agent by Verizon
Wireless
(collectively “Confidential Information”) as the exclusive confidential
property of Verizon Wireless. Authorized Agent shall treat Subscriber
lists and all data regardless of form relating to Subscribers or
potential
Subscribers as Verizon Wireless trade secrets (“Trade Secrets”).
“Trade Secrets”
means information, without regard to form, related to the services
or
business of Verizon Wireless from which Verizon Wireless derives
economic
value, actual or potential, and that is not generally known to or
readily
ascertainable by other persons who can obtain economic value from
its
disclosure or use. Authorized Agent agrees that, during and after
the term
of this Agreement, Authorized Agent shall not divulge, use, sell,
exchange, give away, or transfer in any way any Confidential Information
other than for maintaining such periodic contact with Subscribers
as is
required for warranty service, installation or maintenance of Equipment,
sale of more Equipment, sale of other equipment, or the sale of additional
service provided by or through Verizon Wireless. Verizon Wireless
shall,
at all times, have access to Authorized Agent’s Subscriber records.
Authorized Agent agrees to cooperate with Verizon Wireless in producing
such records upon Verizon Wireless’ request. Nothing herein shall restrict
Authorized Agent from disclosing to a third party that it has an
exclusive
relationship with Verizon Wireless and has confidentiality
obligations.
|
3.4.
|
Regulatory
Matters.
This Agreement shall at all times be subject
to:
|
|
|
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
10
3.4.1. | changes or modifications to comply with, |
3.4.2.
|
any
necessary approvals of, local, state and federal regulatory agencies
and
courts having jurisdiction over the provision of CMRS in the Area.
|
Authorized Agent shall take no action inconsistent with, and agrees to support, any efforts by Verizon Wireless before regulatory authorities or others regarding CMRS regulatory issues to the extent such efforts or actions are undertaken by Verizon Wireless. |
3.5.
|
Telemarketing
Services.
Authorized Agent shall not conduct telemarketing services on behalf
of
Verizon Wireless, unless such activities are expressly defined and
permitted under Specific Locations in Exhibit A of this Agreement.
In the
event Authorized Agent is permitted to conduct telemarketing services
on
behalf of Verizon Wireless pursuant to the express provisions of
Exhibit
B, the following shall apply:
|
3.5.1.
|
Authorized
Agent agrees to conduct its telemarketing services on behalf of Verizon
Wireless in accordance with all applicable Federal, State and local
laws
and regulations governing advertising, marketing practices and the
transaction of its business by telephone. These include, but are
not
limited to, the Telephone Consumer Protection Act of 1991, the
Telemarketing and Consumer Fraud and Abuse Prevention Act of 1994
and the
Telemarketing Sales Rule of 1995, the Fair Credit Reporting Act,
all
Consumer Protection Acts, all tariffs, and any rules and procedures
of any
governmental body or Verizon Wireless relating to the sale of CMRS
or the
sale, lease, installation, warranty service or repair of Equipment,
as
well as the laws and regulations of the United States Postal Service,
Federal Communications Commission, Federal Trade Commission and the
Federal Reserve Board.
|
3.5.2.
|
Further,
to the extent Authorized Agent records or monitors its calls, it
will give
appropriate notification and gain consent of participants in such
calls to
such monitoring and recording. Authorized Agent shall provide Verizon
Wireless with a plan and an audited report to demonstrate it is complying
with these laws, rules and regulations. Verizon Wireless reserves
the
right, but shall have no obligation, to monitor Authorized Agent’s
telemarketing efforts either remotely or by other methods to ensure
compliance with this Section 3.5.
|
3.5.3. | When making outbound telemarketing calls on behalf of Verizon Wireless, Authorized Agent shall only use representatives who have attended and completed training regarding Verizon Wireless’ specific practices and procedures and the Verizon Wireless price plans Authorized Agent is authorized to offer. After completion of the training, the representative shall be fully capable of handling Verizon Wireless’ calls in a professional, knowledgeable manner, and in strict conformance with Verizon Wireless’ practices and procedures. The representatives shall also be knowledgeable about applicable Verizon Wireless price plan offers. The training provided will be based on information provided by Verizon Wireless including, but not limited to, Verizon Wireless products, services, price plans, and coverage areas. Authorized Agent may be asked to provide Verizon Wireless with a signed attendance sheet evidencing fulfillment of its training obligations. |
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
11
3.5.4.
|
Authorized
Agent agrees that it shall maintain, continuously update and honor
a “Do
Not Call List”, and shall not call wireless numbers for telemarketing
purposes. Further, Authorized Agent will provide its outbound calling
list
to Verizon Wireless for approval (“Pre-approved List”). The list provided
by Authorized Agent will be on a 3.5 disk in Excel format and should
include the customer’s name and address, phone number and social security
number (if available). Verizon Wireless will review the list and
indicate
which customers should not be called either because they are Verizon
Wireless current customers or are on Verizon Wireless’ “Do Not Call List”.
Verizon Wireless will normally return the list to Authorized Agent
within
one (1) week after receipt.
|
3.5.5.
|
Authorized
Agent shall not use a Voice Response Unit for outbound telemarketing
calls
or an automatic dialing device with a pre-recorded message during
its
performance under this Agreement.
|
3.5.6.
|
In
the event Authorized Agent is providing similar services to other
wireless
providers in markets not covered by this Agreement, Authorized Agent
agrees that its operators who handle Verizon Wireless’ calls will not
share the same working areas as Authorized Agent operators who handle
other wireless providers’ calls. Further, Authorized Agent shall ensure
that other wireless providers: (1) will not be allowed access to
Verizon
Wireless documentation, (2) will not be allowed access to the area(s)
where representatives are handling Verizon Wireless’ calls, and (3) will
not have the ability to overhear operators who are handling Verizon
Wireless’ calls. Further, Authorized Agent employees shall be instructed
to keep Verizon Wireless information secure when not in use. Prior
to
implementation, Authorized Agent will provide to Verizon Wireless
for
Verizon Wireless’ prior approval, Authorized Agent’s plan to ensure that
Authorized Agent will comply with this Section
3.5.
|
3.5.7.
|
Authorized
Agent will bear all costs for providing telemarketing services, including,
but not limited to: (1) the time spent by its representatives during
training in Verizon Wireless’ policies; and (2) all costs related to
fulfillment of the Subscriber’s order; and (3) all costs relating to the
furnishing and maintaining of adequate and appropriate equipment,
personnel, ancillary services, office facilities, support facilities
and
all necessary hardware and software required to perform telemarketing
sales.
|
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
12
3.5.8.
|
In
all telemarketing activities Authorized Agent shall conspicuously
identify
itself as an Agent of Verizon Wireless and not create the impression
that
the caller is Verizon Wireless.
|
3.6.
|
Meetings
and Training.
Authorized Agent acknowledges that Verizon Wireless requires its
Agents to
attend Agent meetings and training programs from time to time. Authorized
Agent agrees to attend all Agent meetings and training programs at
Authorized Agent's expense and agrees to have its personnel attend
such
meetings and training programs.
|
3.7. |
Publicity.
Authorized Agent shall submit to Verizon Wireless all advertising,
sales
promotion, press releases and other publicity matters relating to
Verizon
Wireless or its CMRS or its sales agency performance under this Agreement
wherein Verizon Wireless’ name, marks or the name or xxxx of any of its
Affiliates are mentioned or language from which the connection of
said
names or marks therewith may be inferred or implied.
|
3.8
|
Internet/Online
Sales.
Authorized Agent shall not consummate any sale of Verizon Wireless’
services or products through Authorized Agent’s website or other
e-commerce activities or arrangements, without the express written
consent
of Verizon Wireless and execution of a written addendum to this Agreement
governing the specific terms and conditions of such
sales.
|
4.
|
EQUIPMENT
SALE, LEASE, ACTIVATION AND/OR INSTALLATION, WARRANTY AND
MAINTENANCE.
|
4.1. | Equipment Inventory. |
Authorized Agent shall maintain an inventory of approved models of Authenticatable Equipment and spare parts for Equipment, sufficient to meet reasonable, anticipated demand from the Subscribers that Authorized Agent enrolls. |
4.2.
|
Authorized
Agent shall purchase Equipment directly from manufacturers or their
authorized distributors.
|
4.3.
|
In
the event Authorized Agent purchases any Equipment from Verizon Wireless,
the terms and conditions of such purchases shall be governed by the
provisions of Exhibit H, which is incorporated herein by this reference.
Authorized Agent shall allocate any Equipment purchased from Verizon
Wireless for use only with Verizon Wireless CMRS. In the event Verizon
Wireless is providing Equipment, it shall have the right to allocate
Equipment in its sole discretion including distribution to itself
or other
Agents. Verizon Wireless reserves the right at any time to discontinue
providing Equipment.
|
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
13
4.4.
|
IT
IS EXPRESSLY UNDERSTOOD THAT VERIZON WIRELESS (OR ITS AFFILIATES)
MAY, BUT
IS IN NO WAY OBLIGATED TO, SELL EQUIPMENT TO AUTHORIZED AGENT FOR
RESALE.
|
4.5.
|
Authorized
Agent acknowledges that Verizon Wireless may sell subsidized, consumer
oriented products to its Agents or may offer such products through
its
direct channel for sale directly to consumers. Such products include,
but
are not limited to, telephones packaged with a contract and a price
plan
or provided in a “break-the-seal” shrink-wrap box. Agent agrees that it
will not purchase such products from other Verizon Wireless Agents,
Retailers or through Verizon Wireless’ direct channel for the purpose of
resale.
|
4.6.
|
All
Equipment sales and/or leases shall be made by or on behalf of Authorized
Agent for its own account and not as Authorized Agent for, or for
the
account of, Verizon Wireless. With respect to the sale, lease,
installation, warranty service, and maintenance of Equipment, Subscribers
shall be customers of Authorized Agent, and Verizon Wireless shall
have no
responsibility to Authorized Agent or Subscribers with respect to
such
activities. Authorized Agent shall establish sales prices and lease
charges or other fees for Equipment at its sole discretion, and Verizon
Wireless shall have no control over such prices, charges and
fees.
|
4.7.
|
Minimum
Equipment Standards.
|
All
Equipment activated by Authorized Agent pursuant to the terms of this Agreement
shall comply with the following requirements, which are subject to change upon
written notice:
4.7.1.
|
The
Equipment must have a Type Acceptance Certificate from the FCC, pursuant
to Part 22 of the Title 47 of the United States Code of Federal
Regulations, comply with CTIA Standards for A-Keys random authentication
as may be amended from time to time, be CTIA certified, comply with
all
CTIA guidelines for RF emissions and specific absorption rate (“SAR”)
level disclosure, comply with the Enhanced 911 Emergency Calling
Systems
obligations imposed on Verizon Wireless by the FCC, as currently
set forth
in the FCC order dated October 12, 20011 ,
be equipped with a universal built in speaker, and meet the requirements
of Verizon Wireless’ responsible driving
program.
|
4.7.2.
|
The
Equipment make and model must first be approved by Verizon Wireless
for
use with Verizon Wireless’ CMRS.
|
1 In
the Matter of Revision of the Commission’s Rules to Ensure Compatibility with
Enhanced 911 Emergency Calling Systems, Request for Waiver by Verizon Wireless,
CC Docket No. 94-102, Order,
16 FCC
Rcd.
18634
(2001).
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
14
4.7.3.
|
The
Equipment must be programmed with Verizon Wireless’ then current preferred
roaming list (“PRL”).
|
4.7.4.
|
The
Equipment must be Authenticatable.
|
4.8.
|
Installation,
Maintenance and Warranty of
Equipment.
|
4.8.1.
|
Authorized
Agent shall be responsible, on a direct or indirect basis, for the
installation, maintenance and warranty of the Equipment it sells.
Upon
request in writing by Verizon Wireless, Authorized Agent shall provide
Verizon Wireless with a written certification from the manufacturer
of all
Equipment sold or leased by Authorized Agent, that Authorized Agent
is
certified and authorized to maintain, install and warrant such Equipment
at Authorized Agent’s location(s).
|
4.8.2.
|
Authorized
Agent must be able, directly or indirectly, to provide warranty service
on
the primary Equipment offered by Authorized Agent. Authorized Agent
shall
ensure that all installations, service and maintenance of Equipment
performed by Authorized Agent are performed by trained
technicians.
|
5.
|
COMPENSATION.
|
5.1.
|
Verizon
Wireless shall pay Compensation to Authorized Agent (provided that
Authorized Agent is in full compliance with this Agreement’s terms and
conditions) for Subscribers obtained by Authorized Agent and accepted
by
Verizon Wireless in accordance with Exhibit B, which may be amended
by
Verizon Wireless from time to time.
|
5.2.
|
Upon
notice to Agent, Verizon Wireless may add, delete or modify any CMRS
rate
plans and the Compensation paid for such rate plans. Further, Verizon
Wireless will provide fourteen (14) days notice of changes in Compensation
for existing rate plans. Verizon Wireless will determine whether
such rate
plan changes will apply to both existing and/or future Subscribers.
Authorized Agent understands, acknowledges and expressly agrees that
after
the effective date of any changed Compensation schedule, submission
by
Authorized Agent of a Service Form to Verizon Wireless for activation
of a
Number (or activation by Authorized Agent of a Number by use of an
automated activation system) shall be deemed acceptance of the changed
Compensation.
|
5.3.
|
All
documentation must be accurately completed to the satisfaction of
Verizon
Wireless and signed by the Subscriber in accordance with the activation
procedures of Verizon Wireless. In the event Compensation is paid
by
Verizon Wireless that was not due or payable to Authorized Agent,
Verizon
Wireless shall chargeback the full amount of said Compensation from
future
Compensation.
|
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
15
5.4.
|
Authorized
Agent shall not receive any Compensation for Subscribers who activate
on
Equipment that does not meet the requirements set forth in Section
4 of
this Agreement.
|
5.5.
|
Verizon
Wireless reserves the right not to pay Compensation, or to chargeback
Compensation, if already paid, pursuant to the provisions of Exhibit
B of
this Agreement. Such chargebacks may include, without limitation,
activation fees, access fees, airtime and other
charges.
|
5.6.
|
Any
Compensation or other fee paid by Verizon Wireless under this Agreement
shall not be contested by Authorized Agent unless Authorized Agent
shall
provide Verizon Wireless in writing, within sixty (60) business days
of
issuance of said Compensation, with notice that Authorized Agent
in good
faith believes payment to be incorrect, a detailed statement of the
reason
why the Authorized Agent believes there is an error, and all documentation
including but not limited to, Service Forms, inventory reports, commission
reports, canceled checks, installment sales contracts, etc., in support
of
Authorized Agent's belief. Any objections not raised by Authorized
Agent
in this manner will be deemed waived.
|
5.7.
|
If
this Agreement is terminated for any reason, Verizon Wireless may
withhold
payment of Compensation then due for one hundred eighty (180) days
or
until all matters relating to the termination of the agency, including,
but not limited to, the return of any point of purchase displays
or
demonstration equipment, the outcome of any fraud investigations,
and the
resolution of any arbitration or any other disputes between the parties,
and matters under any other agreement between the parties, are settled,
whichever is longer.
|
5.8.
|
Authorized
Agent acknowledges that Verizon Wireless may engage in customer service
programs which may result in a Subscriber migrating to a different
price
plan, and such activity may result in a difference in the amount
of
Compensation paid for such plan. Should a Subscriber migrate between
price
plans for any reason within one hundred eighty (180) days of the
Subscriber's activation date, and these price plans pay different
Compensation amounts, Verizon Wireless reserves the right, but is
not
obligated to adjust the Compensation paid to the Authorized Agent,
upwards
or downwards, to reflect the difference between the Compensation
payout of
the respective price plans.
|
5.9.
|
Authorized
Agent hereby agrees and acknowledges that Verizon Wireless has no
obligation, express or implied, to pay Authorized Agent the same
rate(s)
of Compensation as those it pays to any other Agent or other distribution
channel or to offer to extend to Authorized Agent any contract provision
or term that is the same, similar to, or comparable to the agreements,
provisions or terms Verizon Wireless offers to any other Entity or
extends
to or enters into with any other Agent or other distribution
channel.
|
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
16
6.
|
AGENT'S
OPERATING MATTERS.
|
6.1.
|
Authorized
Agent's Business Records.
Authorized Agent and its Affiliates shall maintain at their principal
offices, and preserve for three (3) years from the date of their
preparation, full, complete, and accurate records of their business
as
they relate to Authorized Agent’s performance under this Agreement. Such
records shall be available for inspection and copying by Verizon
Wireless
at all reasonable times.
|
6.2. | Compliance with Rules and Procedures and Good Business Practices. |
6.2.1.
|
In
its performance of this Agreement, Authorized Agent shall comply
with:
|
(a)
|
all
applicable laws, orders, rules and regulations of federal, state
or local
governments, including without limitation all consumer protection
laws,
laws governing the use of trade secrets and other proprietary information
and laws applicable to Authorized Agent as an employer of labor,
all
tariffs, and any governmental rules and procedures, including but
not
limited to those relating to the sale of CMRS, Verizon Wireless E911
obligations, or the sale, lease, installation, warranty service or
repair
of Equipment; and
|
(b)
|
all
applicable federal, state or regulations relating to consumer protection
and the safeguarding, protection, and disposal of Confidential Information
and Trade Secrets, as defined in Section 3.3 of this Agreement, or
similar
information used, maintained, and/or accessed on Verizon Wireless’ behalf
including, but not limited to, the FTC information disposal rule
enacted
June 1, 2005. In
the event of an unauthorized disclosure of personal or similar information
in violation of the foregoing, Authorized Agent shall provide notice
of
same by e-mail to xxxxxxxx@xx.xxxxxxxxxxxxxxx.xxx
within
forty-eight (48) hours, and to the contract notice addressees set
forth in
Section 17, (NOTICE) by the means set forth therein;
and
|
(c)
|
all
rules and procedures concerning the conduct of Authorized Agent’s business
relating to CMRS reasonably prescribed from time to time by Verizon
Wireless.
|
6.2.2.
|
Authorized
Agent shall, at its sole expense, secure and maintain in full force
and
effect all licenses, approvals, certifications, and permits required
of
Authorized Agent and its employees for its performance
hereunder.
|
6.2.3. |
Authorized
Agent shall notify Verizon Wireless in writing within five (5) days
of the
commencement of any material action, suit or proceeding or of the
issuance
of any order, writ, injunction, award or decree of any court, agency
or
other governmental instrumentality involving Authorized Agent or
Authorized Agent's business.
|
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
17
6.2.4. |
Authorized
Agent agrees that it will not use Verizon Wireless Subscriber information
to transmit information to a Subscriber’s mobile telephone, including, but
not limited to: (1) unlawful, threatening, abusive, harassing, or
other
objectionable material; and (2) unsolicited or unauthorized commercial
material, including, but not limited to, advertising, promotional
materials, “junk mail,” “SPAM,” chain letters, pyramid schemes, and other
undesirable material.
|
6.3.
|
Clear
Disclosure. Authorized
Agent will only be permitted to activate Subscribers under the following
terms and conditions:
|
6.3.1.
|
Authorized
Agent shall ensure that each Subscriber activated by Authorized Agent
has
read the terms and conditions of the Service Forms and has reviewed
the
consumer information overview (new customer Welcome
Package).
|
6.3.2.
|
Authorized
Agent shall indemnify, defend and hold Verizon Wireless harmless
from any
and all claims, demands and causes of action whatsoever asserted
against
Verizon Wireless due to a claim that the Subscriber was not informed
that
service activated under the Service Form was subject to its terms
and
conditions or that the Subscriber did not have the opportunity to
review
the consumer information overview.
|
6.3.3.
|
In
the event Authorized Agent offers for sale any Equipment that is
used,
reconditioned or refurbished Authorized Agent shall provide clear
written
notice to Subscribers and be in full compliance with all applicable
laws
and regulations that apply to the sale of used, reconditioned or
refurbished Equipment.
|
6.3.4.
|
In
all dealings with Subscribers and others, Authorized Agent shall
conspicuously identify itself as an Authorized Agent of Verizon Wireless
and otherwise as an independent business, shall conduct itself with
the
highest standards of honesty, integrity and fair dealing, including,
but
not limited to, those standards set forth in the Compliance Guidelines
for
Verizon Wireless’ Sales Agents, Exhibit C to this Agreement. Authorized
Agent shall do nothing which would, in the opinion of Verizon Wireless,
tend to discredit, dishonor, reflect adversely upon, or in any manner
injure the reputation of Verizon Wireless, Agent or any other alternative
distribution channel of Verizon Wireless CMRS.
|
6.3.5.
|
Authorized
Agent shall conform to the highest ethical standards for advertising
and
will comply with all Verizon Wireless standards for advertising,
(including, but not limited to, those standards set forth in the
Advertising Guidelines for Verizon Wireless Sales Agents in Exhibit
D of
this Agreement which is subject to change upon notice) and in promotional,
and training material to be used or distributed by Authorized Agent
to
Subscribers. Failure of Authorized Agent, its employees or agents,
to
abide by such standards in all material respects, shall be a material
breach of this Agreement. All advertising and promotional materials
shall
be submitted to Verizon Wireless or its designee for written approval
before publication or
dissemination.
|
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
18
6.3.6.
|
Responsibility
for Subscriber Complaints.
Authorized Agent shall promptly address all Subscriber complaints
directed
to it regarding Verizon Wireless CMRS.
|
6.3.7.
|
Non-Discrimination.
Authorized Agent shall not discriminate on the basis of race, color,
religion, sex, national origin, sexual orientation, citizenship,
age,
otherwise qualified disability, or veteran status. Authorized Agent
shall
also comply with the applicable provisions of the Non-Discrimination
Compliance Agreement attached as Exhibit
E.
|
6.4.
|
Subscriber
Activation Process.
Authorized Agent, at its own expense, shall have the equipment necessary
to facilitate transmission of Subscriber information to Verizon Wireless
at all times during the Term of this Agreement. Authorized Agent's
equipment must comply with Verizon Wireless’ requirements as communicated
from time to time, and must include at a minimum, a facsimile machine
and
a computer capable of Internet access with the requirements set forth
in
Exhibit F of this Agreement. Authorized Agent’s equipment must be
compatible with Verizon Wireless’ automated activation systems. The
automated activation system, where available, shall be used for all
Activations. If an automated activation system is not available in
an
Authorized Agent’s market, Activations shall be then made in accordance
with normal regional activation procedures. If Authorized Agent calls
Verizon Wireless’ fulfillment center for Activations instead of utilizing
the automated activation system where available, a $10.00 fee may
be
assessed for each number activated through the Verizon Wireless
fulfillment center. This fee shall be deducted from Authorized Agent’s
Compensation checks. Such fee will not be assessed if Verizon Wireless’
server is not accessible. Verizon Wireless shall have the right,
immediately upon termination of this Agreement, to deny Authorized
Agent
access to Verizon Wireless’ computer
systems.
|
Currently,
web-based automated activation systems, which will verify credit
and
assign mobile telephone numbers, are available in certain Markets.
A list
of these Markets and the required equipment to access the automated
activation systems are listed in Exhibit F. It is Verizon Wireless’
intention to eventually implement automated activation systems in
all of
its Markets. Verizon Wireless will notify Authorized Agent in writing
as
automated activation systems become available in new Markets and
provide
notice if the computerized system requirements are
modified.
|
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
19
6.5.
|
Failure
to Properly Process Applications. Authorized
Agent’s failure to properly process Verizon Wireless’ Subscriber
applications in accordance with Verizon Wireless’ procedures, which
failure leads to subscription fraud due to Authorized Agent activating
Subscribers through the use of stolen, invalid, unverifiable and/or
unauthorized credit information, will cause the following to
occur:
|
6.5.1
|
All
compensation paid to Authorized Agent will be charged-back. In addition,
Authorized Agent will be responsible for payment of all expenses
incurred
by Verizon Wireless (including investigative and attorney’s fees and
costs) and any unpaid charges arising from such subscription fraud,
including any roaming, long distance or other toll
charges.
|
6.5.2.
|
Verizon
Wireless will notify Authorized Agent in writing that Authorized
Agent has
been placed on temporary probation for a thirty (30) day
period.
|
6.5.3.
|
Within
ten (10) days of receipt of Verizon Wireless’ probation notice, Authorized
Agent shall prepare a corrective action plan to improve its procedures
for
verifying Subscribers, and submit the plan to Verizon Wireless for
review
and acceptance.
|
6.5.4.
|
Within
three (3) days of receipt of such plan, Verizon Wireless will review
the
plan and notify Authorized Agent of its approval or suggest revisions
to
the plan that could make it acceptable.
|
6.5.5.
|
If,
in Verizon Wireless’ judgment, there has not
been a reasonable improvement in the rate of subscription fraud,
as a
result of the implementation of the corrective action plan, within
thirty
(30) days of the original notice, Verizon Wireless will have the
right to
terminate this Agreement.
|
6.5.6.
|
If,
as a result of the implementation of the corrective action plan,
in
Verizon Wireless’ judgment there has been a reasonable improvement, this
Agreement will continue, however, should significant subscription
fraud
occur again, Verizon Wireless will have the right to take further
action
up to and including immediate
termination.
|
6.6.
|
Insurance.
Without limiting Authorized Agent’s duty to indemnify Verizon Wireless as
set forth in this Agreement, Authorized Agent will maintain at all
times
during the Term or any extension or renewal thereof, at Authorized
Agent’s
sole expense, the following insurance with an insurance company rated
at
least A- by A.M. Best Company and qualified to do business within
the
Area. Coverage required can be satisfied with primary and/or umbrella
excess coverage:
|
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
20
|
6.6.1. |
Workers
Compensation Insurance as required by each State in which Authorized
Agent
performs the Agreement including a waiver of subrogation endorsement
against Verizon Wireless.
|
6.6.2.
|
Comprehensive
or Commercial General Liability Insurance with the minimum limits
as
follows:
|
6.6.2.1. for
Authorized Agents having three (3) or less Specified Locations: One Million
Dollars ($1,000,000) per occurrence for bodily and personal injury or death;
One
Million Dollars ($1,000,000) per occurrence for property damage; and One Million
Dollars ($1,000,000) per occurrence for product liability arising out of any
defects in the use of Equipment; and
6.6.2.2. for
Authorized Agents having more than three (3) Specified Locations: Two Million
Dollars ($2,000,000) per occurrence of bodily and personal injury or death;
Two
Million Dollars ($2,000,000) per occurrence for property damage; and Two Million
Dollars ($2,000,000) per occurrence for product liability arising out of any
defects in the use of Equipment
.
6.6.3. |
Employer’s
Liability Insurance within limits of not less than:
|
6.6.3.1. for
Authorized Agents having three (3) or less Specified Locations, Two Hundred
Thousand Dollars ($200,000) per occurrence; and
6.6.3.2. for
Authorized Agents having more than (3) Specified Locations, One Million Dollars
($1,000,000) per occurrence.
6.6.4.
|
Automobile
Liability, Comprehensive Form, with limits of not less than Five
Hundred
Thousand Dollars ($500,000) for bodily injury and Five Hundred Thousand
Dollars ($500,000) for property damage per occurrence or One Million
Dollars ($1,000,000) combined single limit, subject to such deductibles
Verizon Wireless determines to be appropriate, covering the ownership,
operation and maintenance of all owned, non-owned and hired motor
vehicles
(used on any occasion in the business of the Authorized Agent). Authorized
Agent acknowledges, understands and expressly agrees that all personal
vehicles will meet applicable State statutory requirements for business
use.
|
6.6.5.
|
For
Authorized Agents having at any time during the Term or any extension
or
renewal thereof more than three (3) Specified Locations, Professional
Liability Insurance (Errors and Omissions) covering trademark and
copyright infringement with limits of not less than One Million Dollars
($1,000,000) per occurrence. If Authorized Agent has more than twenty-five
(25) Specified Locations: A Commercial Crime Bond or Employee Dishonesty
Policy with a minimum aggregate limit of Five Hundred Thousand dollars
($500,000) is required.
|
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
21
6.6.6.
|
At
Verizon Wireless’ request, Authorized Agent will submit to Verizon
Wireless a Certificate of Insurance, on an XXXXX form or a similar
form
acceptable to Verizon Wireless in its sole discretion, evidencing
all
required insurance prior to the start of any work under this Agreement
and
annually thereafter on the policy renewal date during the Term or
any
extension or renewal thereof. Cellco Partnership or Verizon Wireless
and,
if applicable, any partnerships who participate in this Agreement,
will be
named as “Additional Insured” on all policies except Workers Compensation,
Employees Liability Insurance and Professional Liability coverage,
which
will also be so evidenced on the Certificate of Insurance. Each insurance
policy will state by endorsement that such policy will not be cancelled
or
materially changed without at least thirty (30) calendar days prior
written notice to Verizon Wireless.
|
6.6.7.
|
The
insurance required in Sections 6.6.1 through 6.6.5 shall provide
that such
insurance is primary coverage with respect to all insureds and shall
contain a waiver against Verizon Wireless, Cellco Partnership and
any
applicable Partnership(s) and such parties' directors, officers,
affiliates, employees and partners.
|
6.6.8.
|
Verizon
Wireless may at any time, upon sixty (60) calendar days prior written
notice to Authorized Agent, require Authorized Agent to increase
the
amount of coverage of any type of insurance or require different
or
additional types of insurance to reflect inflation, higher damage
awards
or comparable factors which make the above limits insufficient to
cover
Authorized Agent liabilities and Authorized Agent’s obligations to
indemnify of Verizon Wireless under this
Agreement.
|
6.7.
|
Demonstration
Service.
At
its sole discretion, Verizon Wireless may provide CMRS to Authorized
Agent
at a reduced cost or at no charge. Such CMRS shall not be considered
as
Compensation to Authorized Agent. Coverage provided may be limited
as set
forth in the regional demonstration service policy. Further, the
Numbers
provided for such service shall remain the property of Verizon
Wireless.
|
7.
|
USE
OF MARKS BY AUTHORIZED
AGENT.
|
7.1.
|
Grant
of License.
Subject to the terms and conditions specified herein and provided
there is
no breach by the Authorized Agent, Verizon Wireless hereby grants
to
Authorized Agent a limited nonexclusive license to use the Licensed
Marks
in accordance with Verizon Wireless’ standards throughout the Area solely
in connection with the sale and promotion of Verizon Wireless CMRS
and
Verizon Wireless branded terminal equipment for the term of this
Agreement. Periodically, Verizon Wireless will publish a list of
the
Licensed Marks which Authorized Agent is licensed to use under this
Agreement. Verizon Wireless may at any time, in its sole discretion,
add,
delete, modify, amend or restrict the Marks on such
list.
|
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
22
7.2.
|
Authorized
Agent recognizes the great value of the goodwill associated with
the
Licensed Marks, and it acknowledges that the Licensed Marks, and
all
rights therein and goodwill pertaining thereto, belong exclusively
to
Verizon Wireless or its Affiliates and that the Licensed Marks have
a
secondary meaning in the minds of the public. Authorized Agent
acknowledges and agrees that all usage of the Licensed Marks, and
any
goodwill established thereby, shall inure to the exclusive benefit
of
Verizon Wireless or its Affiliates and that this Agreement does not
confer
any goodwill or other interests in the Licensed Marks to Authorized
Agent.
|
7.2.1.
|
Authorized
Agent acknowledges that the Licensed Marks and the registrations
thereof
are good, valid and enforceable in law and equity, and Authorized
Agent
agrees not to challenge or assist in challenging the validity of
registrations thereof.
|
7.2.2.
|
Authorized
Agent acknowledges that any unauthorized use of any Marks, and any
use of
such Marks in violation of this Agreement, shall constitute an
infringement of such Marks.
|
7.3. Supervision
7.3.1.
|
For
the purpose of protecting and maintaining the standards of quality
established by Verizon Wireless for Equipment and services marketed
under
the Licensed Marks, Verizon Wireless shall have the right to audit
the
marketing of Equipment and the services by Authorized Agent, to inspect
and test the Equipment offered for sale by Authorized Agent, and
to
inspect Authorized Agent’s premises at all reasonable
times.
|
7.3.2.
|
All
labels, packaging, designs, stationery, promotional materials, and
advertising of every kind using any of the Licensed Marks shall be
developed by Authorized Agent in consultation with Verizon Wireless,
and
shall not be publicly disseminated without Verizon Wireless’ prior written
approval.
|
7.3.3.
|
If
Verizon Wireless at any time finds the products or services marketed
by
Authorized Agent under the Licensed Marks to be deficient in quality
or
marketed in a misleading or deceptive manner or otherwise in violation
of
this Agreement or of any laws, then Verizon Wireless may notify Authorized
Agent in writing of such deficiency, and if Authorized Agent fails
to
correct or eliminate such deficiency within thirty (30) days after
receipt
of such notice, Verizon Wireless may at its election declare this
Agreement terminated.
|
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
23
7.4.
|
Sub-Licenses.
Authorized Agent shall not directly or indirectly license or attempt
to
license, whether orally or in writing, any Entity to use any of the
Licensed Marks unless expressly authorized in writing by Verizon
Wireless.
|
7.5.
|
Disclaimer
of Assignment.
The parties expressly agree that Authorized Agent shall not have
any
right, title, or interest in the Licensed Marks, or in the registration
or
applications thereof, except only the right to use the Licensed Marks
in
connection with the services/products provided by Authorized Agent
described herein. Nothing contained in this Agreement shall be construed
to grant or assign to Authorized Agent any additional right, title,
or
interest in the Licensed Marks, or in the registrations thereof,
except
such limited right to use the Licensed
Marks.
|
7.6.
|
Restrictions
on Use of Licensed Marks.
|
7.6.1.
|
Authorized
Agent shall not use any of the Licensed Marks unless modified with
such
words identifying Authorized Agent’s agency relationship with Verizon
Wireless as Verizon Wireless may approve in
writing.
|
7.6.2.
|
Authorized
Agent shall not use any of the Licensed Marks or any confusingly
similar
marks as part of its corporate, trade or business
names.
|
7.6.3.
|
Authorized
Agent shall not use any of the Verizon Wireless Marks that are licensed
hereunder except as set forth in Verizon Wireless Indirect Corporate
Identity Standards (Exhibit G).
|
7.6.4.
|
Authorized
Agent shall not register or otherwise use the Licensed Marks or any
portion of the Licensed Marks as part of any Internet domain name,
Internet address, or telephone number.
|
7.6.5.
|
Authorized
Agent shall not use the Licensed Marks in connection with the sale
or
lease of any unauthorized Equipment or service, or in any other manner
not
expressly authorized by this Agreement or separately in writing by
Verizon
Wireless.
|
7.7.
|
Modification
or Discontinuation of Licensed Marks.
In
the event that Verizon Wireless decides in its sole discretion to
modify
or discontinue the use of any of the Licensed Marks, or to substitute
one
or more Marks in place of any of the Licensed Marks, Authorized Agent
agrees that within thirty (30) days after receipt or written notice
from
Verizon Wireless it shall:
|
7.7.1.
|
Refrain
from using the unmodified or discontinued Licensed Marks;
and
|
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
24
7.7.2.
|
Destroy
or return to Verizon Wireless all designs, stationery, promotional
materials, and advertising of every kind using any of the unmodified
or
discontinued Licensed Marks; and
|
7.7.3.
|
Commence
using the modified or substituted Marks in accordance with this Agreement
as if such Marks had been identified herein as the original Licensed
Marks.
|
7.8.
|
Infringement.
|
7.8.1.
|
In
the event that any infringement of the Licensed Marks comes to the
attention of Authorized Agent it shall promptly notify Verizon Wireless
of
such infringement. Authorized Agent agrees to assist Verizon Wireless,
its
Affiliates, and, if applicable, any partnerships that participate
in this
Agreement, or its successor in interest as the case may be, in the
prosecution of any claim or lawsuit against infringement of the Licensed
Marks by providing such evidence and expert assistance as Authorized
Agent
may have within its control, and, to the extent permitted by law,
Authorized Agent shall have the right to intervene, at its own expense,
in
any legal proceedings affecting the rights acquired by it under this
Agreement. Verizon Wireless may, at its own expense, and in its sole
discretion, bring a claim or lawsuit to restrain any infringement
of the
Licensed Marks, either in its own name or in Authorized Agent’s name, or
may cause the xxxxxx of Authorized Agent as a party to such lawsuit,
and
Verizon Wireless shall be entitled to receive and retain for its
own use
and benefit any recovery awarded in such
lawsuit.
|
7.8.2.
|
Verizon
Wireless shall indemnify Authorized Agent and hold it harmless from
any
damages and costs imposed on Authorized Agent as a result of any
claim or
lawsuit brought against Authorized Agent arising out of Authorized
Agent’s
authorized use of the License Marks in accordance with this Agreement,
provided that:
|
7.8.2.1.
|
Authorized
Agent shall promptly notify Verizon Wireless of any such claim or
lawsuit;
|
7.8.2.2.
|
Verizon
Wireless shall have the option to undertake and conduct the defense
of
such claims or lawsuit; and
|
7.8.2.3.
|
Authorized
Agent shall not settle or attempt to settle such claim or lawsuit
without
Verizon Wireless’ prior written consent.
|
7.9.
|
Infringement
by Authorized Agent and Irreparable Injury.
Authorized Agent acknowledges and agrees
that:
|
7.9.1.
|
Any
use by Authorized Agent of any Xxxx in violation of this Agreement
shall
constitute an infringement or dilution of such Xxxx;
and
|
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
25
7.9.2.
|
Any
infringement or dilution of a Xxxx by Authorized Agent shall constitute
immediate and irreparable injury to Verizon Wireless not compensable
in
money damages and shall warrant preliminary and other injunctive
and
equitable relief against Authorized Agent upon a showing satisfactory
to
the court to which an application for relief may be made; of the
failure
of Authorized Agent to carry out its
obligations.
|
7.9.3.
|
Authorized
Agent waives and shall not claim any right to any bond with respect
to any
application for preliminary or other injunctive relief Verizon Wireless
may make to protect its Marks from infringement or
dilution.
|
7.10.
|
Termination.
|
7.10.1.
|
The
Parties shall have the right to terminate this Agreement in accordance
with Sections 8 and 9 hereof.
|
7.10.2.
|
Upon
termination of this Agreement for any reason, all rights and privileges
granted to Authorized Agent hereunder shall immediately terminate,
and
Authorized Agent, its trustees, receivers, successors or assigns
shall
have no further right to use of the Licensed Marks. Authorized Agent
agrees that upon such termination it shall
immediately:
|
7.10.2.1.
|
destroy
or return to Verizon Wireless all designs, stationery, promotional
materials, and advertising of every kind using any of the Licensed
Marks;
|
7.10.2.2.
|
return
to the manufacturer or other supplier all products bearing the Licensed
Marks, together with all labels, packaging and other promotional
materials
associated therewith.
|
8.
|
TERM
OF RELATIONSHIP.
The term of this Agreement (the “Term”) shall be three (3) years, which
shall commence on the date this Agreement is executed by authorized
representatives of both parties (the “Effective Date”). Upon expiration of
the Term, this Agreement will CONTINUE
ON A MONTH-TO-MONTH BASIS
until terminated by either party, with or without cause, on thirty
(30)
days’ prior written notice, or the parties enter into a renewal agreement.
It is expressly understood and agreed that neither party has any
right or
expectation of renewal of this Agreement beyond the Term or any
month-to-month term of operation, and that either party may decide
in its
sole discretion not to renew this
Agreement.
|
9.
|
TERMINATION
OF AGREEMENT
|
9.1.
|
Termination.This
Agreement may be terminated in the following
manner:
|
9.1.1.
|
Notwithstanding
Section 15 of this Agreement, Verizon Wireless has the right to terminate
this Agreement upon thirty (30) days’ written notice to Authorized Agent
if:
|
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
26
9.1.1.1.
|
Authorized
Agent fails to pay its bills or to discharge its obligations as they
become due and fails to cure such default within the thirty (30)
day
notice period;
|
9.1.1.2.
|
Authorized
Agent fails to attain and maintain the Minimum Activation Level as
specified in Exhibit B and fails to cure such deficiency within the
thirty
(30) day notice period;
|
9.1.1.3.
|
Authorized
Agent fails to comply with any provision or requirement of any tariff
relating to CMRS, and, if such failure is capable of being cured,
Authorized Agent does not cure such failure within the thirty (30)
day
period.
|
9.1.2.
|
Verizon
Wireless has the right to terminate this Agreement immediately upon
written notice to Authorized Agent if Authorized Agent commits any
other
material breach of this Agreement, except as specified in Sections
9.1.1.1, 9.1.1.2 or 9.1.1.3 above. In addition, Verizon Wireless
has the
right to terminate this Agreement immediately upon written notice
to
Authorized Agent if:
|
9.1.2.1.
|
Authorized
Agent engages in conduct that, in Verizon Wireless’ reasonable discretion,
constitutes unethical, misleading, or unfair business
practices;
|
9.1.2.2.
|
Verizon
Wireless determines, in its reasonable discretion that any representation
or warranty made by Authorized Agent in connection with this Agreement
or
its application to act as a Verizon Wireless limited Agent is
untrue;
|
9.1.2.3.
|
Authorized
Agent, or one or more of its personnel, is convicted of, or pleads
no
contest to, any felony or other crime that is likely to affect adversely
the reputation or goodwill of Verizon Wireless or its Affiliates,
with
such effect being judged solely by Verizon
Wireless;
|
9.1.2.4.
|
Authorized
Agent repeatedly fails to resolve reasonable customer complaints;
or
|
9.1.2.5.
|
Authorized
Agent breaches the terms of this Agreement in a manner described
in
Sections 9.1.1.1, 9.1.1.2 or 9.1.1.3 above, three (3) or more times
within
any one hundred eighty (180) day period, regardless of whether such
breach
is cured within the thirty (30) day notice
period.
|
9.1.3.
|
Either
party has the right to terminate this Agreement immediately upon
written
notice to the other if the other:
|
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
27
9.1.3.1. | makes an assignment for the benefit of creditors; |
9.1.3.2.
|
enters
an Order for Relief or has such an order filed against it under Title
ll
of the United States Bankruptcy Code; or
|
9.1.3.3.
|
has
a trustee or receiver of any substantial part of its assets appointed
by
any Court.
|
9.1.4.
|
Verizon
Wireless has the right to terminate this Agreement at any time, with
or
without cause, upon ninety (90) days’ prior written notice to Authorized
Agent.
|
9.1.5.
|
This
Agreement may be terminated at any time by mutual written consent
of the
parties.
|
9.2.
|
Cross-default.
Verizon Wireless has the right, at its sole option, to terminate
this
Agreement effective upon delivery of written notice to Authorized
Agent if
Authorized Agent breaches its obligations under any other agreement
between Authorized Agent and Verizon Wireless or any Affiliate thereof,
and such other agreement is ultimately terminated as a result of
such
breach. In this event, any and all outstanding amounts owed to Verizon
Wireless under all agreements between Authorized Agent and Verizon
Wireless shall become due and payable to Verizon Wireless immediately
upon
demand.
|
9.3.
|
Excusal
From Performance.
The time within which Authorized Agent is required to make payments
to
Verizon Wireless for outstanding invoices and its ability to do so
is an
essential term of this Agreement. If Authorized Agent fails to make
payment in full to Verizon Wireless when such payment is due, then
Verizon
Wireless, in addition to its other remedies under this Agreement
or at law
or in equity, will not be required to perform its obligations hereunder
including, but not limited to payment of Compensation, during the
period
for which payment is overdue. Verizon Wireless will be required to
resume
performance hereunder only at such time as Authorized Agent has fully
cured its failure to make timely payment hereunder, provided that
Verizon
Wireless has not terminated this Agreement before that time. The
withholding of performance by Verizon Wireless pursuant to this provision
shall in no event be grounds for Authorized Agent to terminate this
Agreement; nor shall Verizon Wireless be required at any later time
to
perform any performance it has previously withheld
hereunder.
|
9.4.
|
Obligations
of Authorized Agent Upon Termination or
Expiration.
Upon the expiration or Termination of this Agreement by either party
for
any reason whatsoever, and notwithstanding any claims or defenses
that
Authorized Agent may assert against Verizon Wireless, Authorized
Agent and
its owner(s) and Affiliates shall:
|
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
28
9.4.1.
|
not
thereafter use any of the Licensed Marks, or any trade name, service
xxxx,
trademark, logo, insignia, symbol or decorative design similar to
the
Licensed Marks or heretofore used by Authorized Agent in the conduct
of
its business hereunder;
|
9.4.2.
|
return
to Verizon Wireless all materials containing any Xxxx or otherwise
identifying or relating to Verizon Wireless’ business within ten (10)
business days following the expiration or termination date, or upon
instruction from Verizon Wireless, destroy all such
materials;
|
9.4.3.
|
take
such action as may be required to cancel all fictitious or assumed
names
or equivalent registrations relating to any
Xxxx;
|
9.4.4.
|
provide
Verizon Wireless with an updated list of names, addresses and all
other
relevant information Authorized Agent possesses concerning Subscribers
that Authorized Agent has enrolled in the
Area;
|
9.4.5.
|
settle
all outstanding accounts with Verizon Wireless including CMRS and
inventory (including consigned inventory, if any) charges and concerned
inventory within thirty (30) days following
termination;
|
9.4.6.
|
refrain
from advertising, directly or indirectly, that it was formerly an
Agent
of, or in any way affiliated with, Verizon
Wireless.
|
9.5.
|
Except
as may otherwise be expressly provided herein, upon expiration or
termination of this Agreement for any reason, including termination
pursuant to Paragraph 9.1.4 above, Authorized Agent’s right to receive any
form of Compensation hereunder shall automatically cease, except
for
Compensation which has accrued and is due to Authorized Agent at
time of
termination.
|
10. | OUTSTANDING DEBTS AND OFFSET. Authorized Agent agrees that at any time, regardless of whether this Agreement is in effect or not, any sums for which Authorized Agent or any of its employees or agents is responsible as well as any amount owed to Verizon Wireless by Authorized Agent, its employees or agents, arising out of or related to this Agreement or any of the obligations or rights or relationships contemplated by this Agreement or any other agreement between the parties, for any cause whatsoever, may be offset against Compensation or any other amounts owed Authorized Agent. Such offset may include but is not limited to: Subscriber security deposits, all charges incurred by the Subscriber, including but not limited to, airtime charges, access charges, long distance charges, roaming charges (including charges outside the specific price plan’s home area), cellular regional calling charges, special feature charges and activation fees on activations where Verizon Wireless has reason to believe that Verizon Wireless’ procedures to verify the applicant’s identity were not followed, and any such charges incurred by Subscribers signed on by unauthorized subagents. If there are insufficient amounts owed Authorized Agent by Verizon Wireless to effect such offset, Authorized Agent shall pay any remaining sums to Verizon Wireless immediately upon demand; such payment shall be made through certified funds or by wire transfer. |
Authorized Agent agrees that Verizon Wireless may, at its discretion, deduct from any Compensation owed to Authorized Agent hereunder, an amount equal to any debt owed by Authorized Agent to Verizon Wireless or its Affiliates, under this Agreement or any other agreement between Authorized Agent and Verizon Wireless or any of its Affiliates. Amounts to be set off may include amounts for which Authorized Agent is obligated to indemnify Verizon Wireless hereunder. |
|
|
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
29
Authorized
Agent agrees that Verizon Wireless may, at its discretion, deduct from any
Compensation owed to Authorized Agent hereunder, an amount equal to any debt
owed by Authorized Agent to Verizon Wireless or its Affiliates, under this
Agreement or any other agreement between Authorized Agent and Verizon Wireless
or any of its Affiliates. Amounts to be set off may include amounts for which
Authorized Agent is obligated to indemnify Verizon Wireless
hereunder.
11.
|
MISCELLANEOUS.
|
11.1.
|
Governing
Law.
Except to the extent explicitly provided elsewhere in this Agreement,
the
interpretation and enforcement of this Agreement and all matters
arising
out of or relating to it shall be governed by the law of New York,
including New York General Obligations Law Section 5-1401, and without
regard to its conflict of laws
provisions.
|
11.2.
|
No
Implied Duties.
It
is understood and agreed that this Agreement is not subject to any
implied
duties of good faith or fair dealing.
|
11.3.
|
Severability.
In
the event that any provision, or part thereof, of this Agreement
is
declared invalid or unenforceable by a final nonappealable ruling
by a
court or agency of competent jurisdiction, the remaining provisions
hereof
shall in no way be invalidated thereby but shall continue in full
force
and effect, provided that the material intent of this Agreement is
not
altered.
|
11.4.
|
Rights
Cumulative/No Waiver.
The rights of Verizon Wireless and Authorized Agent hereunder are
cumulative, and the exercise of any rights or remedies hereunder
shall not
preclude the exercise by either party of other rights and remedies,
available either within or outside of this Agreement, in addition
to the
rights or remedies exercised. Furthermore, no exercise or enforcement
by
Verizon Wireless or Authorized Agent of any rights or remedies hereunder
or forbearance from such exercise shall preclude the exercise or
enforcement by Verizon Wireless or Authorized Agent of any other
right or
remedy hereunder, or the exercise of enforcement of the same right
or
remedy at another time or in another
instance.
|
11.5. Force
Majeure.
11.5.1.
Neither party shall be deemed to be in breach of this Agreement for failure
to
perform if such failure results from acts of God, fires, strikes, embargoes,
war, insurrection, riot, explosion, earthquake, government action, epidemic
and
other causes beyond the reasonable control of a party.
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
30
11.5.2. Verizon
Wireless shall not be liable for loss or damage or be deemed to be in breach
of
this Agreement for failure to perform if such failure results from:
11.5.2.1.
compliance with any law, ruling, order, regulation, requirement or instruction
of any federal, state or municipal government or any department or agency
thereof, or any court or other body of competent jurisdiction; or
11.5.2.2.
acts or
omissions of Authorized Agent.
Any
delay
resulting from any of said causes shall extend performance accordingly or excuse
performance, in whole or in part, as may be reasonable.
11.6.
|
Injunctive
Relief.
In
addition to Section 7 and subsection 3.3, Authorized Agent acknowledges
and agrees that:
|
11.6.1.
|
Any
material, non-monetary breach by Authorized Agent of this Agreement
shall
constitute immediate and irreparable injury to Verizon Wireless not
compensable in money damages and shall warrant preliminary and other
injunctive or equitable relief against Authorized Agent upon a showing
satisfactory to the court or arbitrator or arbitrators to which an
application for relief may be made.
|
11.6.2.
|
In
any action for preliminary or other injunctive or equitable relief
against
Authorized Agent or its Affiliates under this Subsection, Subsection
3.3
or Section 7, Verizon Wireless shall be entitled to recover from
Authorized Agent the reasonable attorney’s fees, costs, and disbursements
expended by Verizon Wireless.
|
11.6.3.
|
Any
claim by Authorized Agent with respect to termination of this Agreement
or
commissions is compensable by money damages only, and Authorized
Agent
agrees it has no right to seek preliminary or other injunctive or
equitable relief against Verizon Wireless for such
claim.
|
11.7.
|
Indemnification.
|
11.7.1.
Authorized Agent shall indemnify and hold harmless Verizon Wireless, its
Affiliates, and their respective directors, officers, employees, contractors,
agents, shareholders, and/or any successors and/or assignees thereof, and their
respective heirs and legal representatives (collectively, “Indemnities”), from
and against any and all obligations, losses, judgments, payments of interest,
penalties, amounts paid in settlement, deficiencies, damages, injuries,
including death, actions, suits, costs or liabilities, and any and all demands
not yet matured into one of the foregoing, including attorney’s fees and
expenses incurred in the enforcement of this indemnification (collectively,
“Losses”), for any claims, demands, actions, disputes, controversies, damages
and/or requests for equitable or injunctive relief arising or alleged to have
arisen in whole or in part out of:
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
31
11.7.1.1. the
conduct of Authorized Agent’s business, or
11.7.1.2.
|
Authorized
Agent’s breach or violation of any of the terms of this Agreement; or
|
11.7.1.3.
|
alleged
acts or omissions of the Authorized Agent and/or its affiliates,
Authorized Agent personnel, employees, contractors, subcontractors
or
subagents; or
|
11.7.1.4.
|
breach
by Authorized Agent of the warranty and representation set forth
in
Section 12.
|
11.7.2. Further,
Authorized Agent shall defend, indemnify, and hold harmless Verizon Wireless
and
the Indemnities from and against all Losses, damages and liabilities whatsoever
(including all claims, actions, suits, fines, interest, penalties, costs and
expenses [together, “Claims”]) including reasonable attorneys’ fees incurred on
account thereof incident to or arising from any of Authorized Agent’s agents,
subagents, employees, contractors, or subcontractors (together, “Subagents”)
resulting from the Authorized Agent’s relationship with the Subagents or its
relationship with Verizon Wireless incurred by Authorized Agent’s breach of this
representation and warranty, which includes, but is not limited to, any Losses
resulting from Authorized Agent’s breach of any other such agreement with
another wireless provider.
11.7.3. Verizon
Wireless shall have sole control of the defense and settlement of any claims
and
any litigation proceedings against Verizon Wireless that are the subject of
Authorized Agent’s indemnification obligations herein.
11.7.4. All
indemnification obligations shall survive termination, expiration or
cancellation of this Agreement.
11.8.
|
Assignment.
This
Agreement is fully assignable by Verizon Wireless to any Entity,
and it
shall inure to the benefit of any assignee or other legal successor
to the
interest of Verizon Wireless hereunder. Authorized Agent may not
voluntarily or involuntarily, or directly or indirectly, assign or
otherwise transfer this Agreement without the prior written approval
of
Verizon Wireless. Subject to the foregoing sentence, this Agreement
is
binding upon the parties hereto and their respective executors,
administrators, heirs, assigns and successors in
interest.
|
11.9.
|
No
Third Party Beneficiaries.
No
provision of this Agreement shall be construed as conferring upon
any
third party any rights, benefits, obligations or duties under this
Agreement.
|
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
32
11.10.
|
Counterparts.
This
Agreement may be executed in counterparts, each of which shall be
deemed
to be an original and all together constituting but one
agreement.
|
11.11.
|
Effect
of Headings.
Headings to articles and paragraphs of this Agreement are to facilitate
reference only, do not form a part of this Agreement and shall not
in any
way affect the interpretation hereof.
|
11.12.
|
Survival
of Authorized Agent’s Obligations.
All
terms, provisions, representations, warranties and obligations of
Authorized Agent shall survive the expiration or termination of this
Agreement and the performance by either party hereunder and shall
continue
in full force and effect subsequent to and notwithstanding such expiration
or termination of performance until they are satisfied in full or
by their
nature expire.
|
12. ACKNOWLEDGEMENTS
AND REPRESENTATIONS.
Authorized
Agent acknowledges that it has not received or relied upon, any guaranty,
express or implied, as to the amount of Compensation or other revenue
that
it may earn as a result of its agency relationship with Verizon Wireless.
Authorized Agent represents and warrants
that:
|
12.1.
|
the
execution, delivery and/or performance of this Agreement will not
conflict
with or result in any breach of any provision of the charter or by-laws
of
Authorized Agent or any agreement, contract or legally binding commitment
or arrangement to which Authorized Agent is a party;
and
|
12.2.
|
Authorized
Agent is not subject to any limitation or restriction (including,
without
limitation, noncompetition/exclusivity, and confidentiality arrangements)
which would prohibit, restrict or impede the performance of any of
Authorized Agent’s obligations under this Agreement; and
|
12.3.
|
Neither
Authorized Agent nor any Entity affiliated with Authorized Agent
is
currently under contract to offer for sale CMRS from another wireless
provider or another wireless provider’s agent, nor is it or any such
Entity contractually prohibited, under an expired/terminated contract,
from representing Verizon Wireless as a CMRS provider, other than
as
stated in Section 2.1; and
|
12.4
|
Authorized
Agent represents and warrants that no service performed by Authorized
Agent pursuant to this Agreement shall be provided, directed, controlled,
supervised or managed, and no Subscriber Information relating to
any such
service shall be stored, at, in, or through a site located outside
of the
United States. Authorized Agent further represents, warrants and
covenants
that it will not use, or allow the use, outside of the United States
of
any user identifications and passwords assigned to it for access
to
Verizon Wireless Subscriber
Information.
|
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
33
13. INDEPENDENT
INVESTIGATION/DISCLAIMER OF REPRESENTATIONS
AUTHORIZED
AGENT ACKNOWLEDGES THAT THERE HAVE BEEN NEGOTIATIONS BETWEEN ITSELF AND VERIZON
WIRELESS REGARDING THIS AGREEMENT. AUTHORIZED AGENT DECIDED WHETHER OR NOT
TO
RETAIN AN ATTORNEY FOR ADVICE AND TO REVIEW THIS AGREEMENT. AUTHORIZED AGENT
IS
NOT RELYING UPON ANY REPRESENTATION MADE BY VERIZON WIRELESS REGARDING THE
MEANING OR EFFECT OF ANY OF THE TERMS OF THIS AGREEMENT.
VERIZON
WIRELESS AND AUTHORIZED AGENT ACKNOWLEDGE THEY HAVE READ THIS AGREEMENT AND
UNDERSTAND AND ACCEPT THE TERMS, CONDITIONS, AND COVENANTS CONTAINED HEREIN
AS
BEING REASONABLY NECESSARY TO MAINTAIN VERIZON WIRELESS’ HIGH STANDARDS FOR
SERVICE. AUTHORIZED AGENT ACKNOWLEDGES AND UNDERSTANDS THAT VERIZON WIRELESS
MAY
AT ANY TIME ALSO BE ENGAGED DIRECTLY OR INDIRECTLY THROUGH ITS DIRECT SALES
FORCE, AGENTS, OTHER RETAILERS, OR OUTLETS OF ANY KIND, IN SOLICITING POTENTIAL
SUBSCRIBERS FOR THE SERVICE OR OTHER SERVICES OR PRODUCTS OR FOR THE SALE,
LEASE, INSTALLATION, REPAIR, OR SERVICING OF EQUIPMENT IN THE MARKET. AUTHORIZED
AGENT ALSO ACKNOWLEDGES AND UNDERSTANDS THAT VERIZON WIRELESS MAY SELL THE
SERVICE TO OTHERS WHO MAY RESELL IT. AUTHORIZED AGENT HAS INDEPENDENTLY
INVESTIGATED THE CMRS OR EQUIPMENT SALES BUSINESS AND THE PROFITABILITY (IF
ANY)
AND RISKS THEREOF AND IS NOT RELYING ON ANY REPRESENTATION, GUARANTEE, OR
STATEMENT OF VERIZON WIRELESS OTHER THAN AS SET FORTH IN THIS
AGREEMENT.
IN
PARTICULAR, AUTHORIZED AGENT ACKNOWLEDGES THAT VERIZON WIRELESS HAS NOT
REPRESENTED EITHER DIRECTLY OR INDIRECTLY: (A) AUTHORIZED AGENT’S PROSPECTS OR
CHANCES FOR SUCCESS SELLING SERVICES UNDER THIS AGREEMENT; (B) THE TOTAL
INVESTMENT THAT AUTHORIZED AGENT MAY NEED TO MAKE TO OPERATE UNDER THIS
AGREEMENT (VERIZON WIRELESS DOES NOT KNOW THE AMOUNT OF THE TOTAL INVESTMENT
THAT MAY BE REQUIRED FOR THIS PURPOSE); OR (C) THAT IT WILL LIMIT ITS EFFORTS
TO
SELL SERVICE OR ESTABLISH OTHER AGENTS OR RETAILERS IN THE AREA.
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
34
AUTHORIZED
AGENT ALSO ACKNOWLEDGES THAT VERIZON WIRELESS HAS NOT REPRESENTED TO IT, EITHER
DIRECTLY OR INDIRECTLY, THAT: (A) VERIZON WIRELESS WILL PROVIDE LOCATIONS OR
ASSIST AUTHORIZED AGENT TO FIND LOCATIONS TO PROMOTE THE SALE OF SERVICE UNDER
THIS AGREEMENT; (B) VERIZON WIRELESS WILL PURCHASE ANY PRODUCTS MADE BY
AUTHORIZED AGENT THAT ARE IN ANY WAY ASSOCIATED WITH THE SERVICE SOLD BY
AUTHORIZED AGENT UNDER THIS AGREEMENT; (C) AUTHORIZED AGENT WILL DERIVE A
PARTICULAR AMOUNT OF INCOME FROM THE SALE OF VERIZON WIRELESS’ SERVICES UNDER
THIS AGREEMENT, OR VERIZON WIRELESS WILL REFUND ANY PAYMENTS MADE BY AUTHORIZED
AGENT TO VERIZON WIRELESS UNDER THIS AGREEMENT; OR (D) VERIZON WIRELESS WILL
PROVIDE A SALES OR MARKETING PROGRAM THAT WILL ENABLE AUTHORIZED AGENT TO DERIVE
INCOME UNDER THIS AGREEMENT.
AUTHORIZED
AGENT FURTHER ACKNOWLEDGES THAT VERIZON WIRELESS HAS NOT MADE ANY
REPRESENTATIONS, EITHER DIRECTLY OR INDIRECTLY, REGARDING: (A) THE QUANTITY
OR
QUALITY OF SERVICE TO BE SOLD BY AUTHORIZED AGENT OTHER THAN AS STATED IN THIS
AGREEMENT; (B) THE PROVISION BY VERIZON WIRELESS TO AUTHORIZED AGENT OF TRAINING
AND MANAGEMENT ASSISTANCE; (C) THE AMOUNT OF PROFITS, NET OR GROSS, THAT
AUTHORIZED AGENT CAN EXPECT FROM ITS OPERATIONS UNDER THIS AGREEMENT; (D) THE
SIZE (OTHER THAN THE GEOGRAPHIC AREA), POTENTIAL, OR DEMOGRAPHIC NATURE OF
THE
MARKET IN WHICH VERIZON WIRELESS’ SERVICE IS AVAILABLE OR THE NUMBER OF OTHER
RETAILERS OR AGENTS THAT ARE OR MAY IN THE FUTURE OPERATE IN THAT AREA; OR
(E)
THE TERMINATION, TRANSFER OR RENEWAL PROVISIONS OF THIS AGREEMENT OTHER THAN
AS
SET FORTH IN THIS AGREEMENT. AUTHORIZED AGENT ACKNOWLEDGES THAT IT UNDERSTANDS
THAT IT WILL NOT OBTAIN ANY EXCLUSIVE RIGHTS UNDER THIS AGREEMENT EITHER WITH
RESPECT TO TERRITORY OR OTHERWISE, AND UNDERSTANDS THAT VERIZON WIRELESS MAY
APPOINT OTHER AGENTS OR RETAILERS IN THE MARKET AFFECTED BY THIS AGREEMENT.
AUTHORIZED AGENT ALSO ACKNOWLEDGES THAT VERIZON WIRELESS CANNOT CALCULATE IN
ADVANCE THE TOTAL AMOUNT THAT VERIZON WIRELESS WILL PAY TO AUTHORIZED AGENT
UNDER THIS AGREEMENT AS THAT AMOUNT DEPENDS, AMONG OTHER THINGS, ON THE QUANTITY
OF SERVICE THAT SUBSCRIBERS PURCHASE FROM VERIZON WIRELESS.
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
35
14. LIMITED
LIABILITY.
VERIZON
WIRELESS SHALL NOT BE LIABLE TO AUTHORIZED AGENT FOR ANY CONSEQUENTIAL,
INCIDENTAL, INDIRECT, PUNITIVE, SPECIAL OR TREBLED OR ENHANCED DAMAGES,
INCLUDING, BUT NOT LIMITED TO LOST PROFITS, LOST BUSINESS, OR OTHER COMMERCIAL
OR ECONOMIC LOSS, WHETHER SUCH DAMAGES ARE CLAIMED FOR BREACH OF CONTRACT,
NEGLIGENCE OR OTHERWISE AND WHETHER OR NOT VERIZON WIRELESS HAS BEEN ADVISED
OF
THE POSSIBILITY OF SUCH DAMAGES UNLESS APPLICABLE LAW FORBIDS A WAIVER OF SUCH
DAMAGES.
15. DISPUTE
RESOLUTION AND ARBITRATION.
Except
to
the extent explicitly provided below, ANY
CONTROVERSY OR CLAIM ARISING OUT OF OR RELATING TO THIS AGREEMENT, OR ANY PRIOR
OR FUTURE AGREEMENT BETWEEN THE PARTIES, SHALL BE SETTLED BY ARBITRATION
ADMINISTERED BY THE AMERICAN ARBITRATION ASSOCIATION (“AAA”) IN ACCORDANCE WITH
THE WIRELESS INDUSTRY ASSOCIATION (“WIA”) RULES OF THE AAA, AS MODIFIED BELOW,
AND JUDGMENT ON THE AWARD RENDERED BY THE ARBITRATORS MAY BE ENTERED IN ANY
COURT HAVING JURISDICTION. A
COPY OF
THE WIA RULES CAN BE FOUND ON THE AAA’S WEBSITE. THE WEBSITE INTERNET ADDRESS IS
CURRENTLY:
XXX.XXX.XXX/XXXXX/XXXXXXXXXX/XXXXXXXX
RULES
15.1.
|
The
Federal Arbitration Act Applies.
THIS
AGREEMENT INVOLVES INTERSTATE COMMERCE AND IS SUBJECT TO THE FEDERAL
ARBITRATION ACT, 9 U.S.C. §§ L-16. THE FEDERAL ARBITRATION ACT PREEMPTS
ANY INCONSISTENT STATE OR LOCAL LAW, RULE, OR REGULATION CONCERNING
ARBITRATION.
|
15.2.
|
Disputes
Not Covered.
Nothing
in this Agreement shall preclude either party
from:
|
15.2.1.
Seeking
to compel arbitration before a court of competent jurisdiction; should it become
necessary for either party to seek to compel arbitration and a court of
competent jurisdiction issues an order compelling arbitration of one or more
of
the claims or controversies, then the party seeking to compel arbitration shall
be entitled to recover its attorneys’ fees and costs incurred in seeking to
compel arbitration.
15.2.2.
|
Seeking
to confirm or challenge any arbitral award before a court of competent
jurisdiction;
|
15.2.3.
Seeking
relief with respect to any internet domain name pursuant to the dispute
resolution
rules of The Internet Corporation for Assigned Names and Number or of any domain
name registrar;
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
36
15.2.4.
|
Seeking
relief with respect to any infringement or threatened infringement
of a
party’s Marks;
|
15.2.5. |
Seeking
relief from a court of competent jurisdiction for any breach or threatened
breach of the obligations set forth in Subsection 3.3. or Section
7;
|
15.2.6.
Seeking
emergency injunctive relief, or a temporary restraining order, to the extent
otherwise
permitted by this Agreement, from a court of competent jurisdiction pending
appointment of the arbitrator or arbitrators required by this Section. Upon
appointment of the arbitrator or arbitrators required by this Section, the
arbitrator or arbitrators shall immediately consider whether such emergency
injunctive relief, or temporary restraining order, shall be continued or
dissolved, and on what terms. NEITHER PARTY SHALL SEEK FROM ANY COURT ANY
EMERGENCY INJUNCTIVE RELIEF OR TEMPORARY RESTRAINING ORDER THAT WOULD CONTINUE
TEN (10) DAYS BEYOND THE APPOINTMENT OF THE ARBITRATOR OR
ARBITRATORS.
15.3.
Written
Notice and Negotiation.
Neither
party may, except to the items in Subsection 15.2, commence any arbitration
or
court case without first providing written notice and an opportunity to
negotiate with the other party.
15.3.1.
The
written notice required by this Subsection shall specify the alleged claim
or
controversy, summarizing the factual basis for the claim or controversy and
the
contractual provisions at issue.
15.3.2.
Within
thirty (30) days of such written notice, the parties shall meet in person or
by
telephone and in good faith attempt to settle the alleged claim or controversy.
IF THE PARTY RECEIVING THE NOTICE REFUSES TO MEET, THIS PERIOD WILL BE DEEMED
TO
HAVE EXPIRED UPON THE SOONER OF THIRTY (30) DAYS OR THE DATE OF SUCH
REFUSAL.
15.3.3.
Any
applicable time periods or statutes of limitation shall be tolled during the
negotiation period required by this Subsection.
15.3.4.
|
In
the event a party has to go into court to enforce this Section, such
party
shall be entitled to receive from the other party, fees incurred
for such
enforcement.
|
15.4.
Additional
Notice Concerning Disputed Commissions.
In
addition to the requirements of subsection 15.3, Authorized Agent shall not
assert any claim or controversy with respect to the amount, timing, or any
other
issue arising out of or relating to any commission, fee, or amount paid or
allegedly not paid by Verizon Wireless pursuant to this Agreement unless
Authorized Agent shall have provided to Verizon Wireless, within sixty (60)
business days of the payment or first alleged due date of such commission,
fee,
or amount, written notice that Authorized Agent in good faith believes such
commission, fee, or amount, or failure to pay such commission, fee, or amount,
to be incorrect.
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
37
15.4.1.
|
Authorized
Agent must include with such notice a detailed statement of the reason
why
the Authorized Agent believes there is an error, and provide all
supporting documentation, including, but not limited to, any relevant
Service Forms, inventory reports, canceled checks, installment sales
contracts, or similar materials.
|
15.4.2.
|
Any
objections not raised by Authorized Agent within the time period,
and in
the manner required under this Subsection shall be deemed forever waived
by Authorized Agent.
|
15.5.
|
Time
for Commencement of Arbitration.
Neither party may commence any
arbitration:
|
15.5.1. Before
satisfying the requirements of written notice and an opportunity to negotiate;
or
15.5.2.
|
Before
satisfying the requirements of written notice with respect to any
commission matter, if applicable;
or
|
15.5.3.
|
After
expiration of the applicable statute of limitations, or two (2) years
from
the date the claim to be arbitrated accrued, whichever is
less.
|
15.6.
|
Place
of Arbitration.
ANY
ARBITRATION BETWEEN THE PARTIES SHALL BE HELD IN THE CITY OF THE
PRINCIPAL
OFFICE OF THE VERIZON WIRELESS REGION WHERE THE CONTROVERSY OR CLAIM
AROSE.
|
15.7.
|
Number
and Selection of Arbitrators.
ANY
ARBITRATION BETWEEN THE PARTIES SHALL BE HEARD ON AN EXPEDITED BASIS
BY
THREE (3) INDEPENDENT ARBITRATORS, EXCEPT THAT ANY ARBITRATION BETWEEN
THE
PARTIES INVOLVING LESS THAN FIFTY THOUSAND DOLLARS ($50,000) IN THE
AGGREGATE, AND NOT INVOLVING DECLARATORY OR INJUNCTIVE RELIEF, SHALL
BE
HEARD BY A SINGLE ARBITRATOR. SUCH ARBITRATOR OR ARBITRATORS SHALL
BE
FAMILIAR WITH THE WIRELESS TELECOMMUNICATIONS INDUSTRY.
|
15.7.1
In
a three (3) arbitrator matter, the arbitrators shall be selected as
follows:
15.7.1.1.
Immediately
upon initiation of arbitration, the AAA shall provide the parties with a
complete list of all arbitrators on the AAA’s Telecommunications Panel, and a
selection of at least five (5) arbitrators from the AAA’s Commercial Panel and
five (5) arbitrators from the AAA’s Large/Complex Case Panel.
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
38
15.7.1.
2. Each
party shall select one (1) arbitrator either from the AAA lists or independently
within fourteen (14) days of the initiation of arbitration.
15.7.1.3.
Within
fourteen (14) days of the selection of the later of the two (2) arbitrators
selected by the parties, those arbitrators shall select a third arbitrator,
either from lists to be provided by the AAA, or independently, as they choose.
If the arbitrators selected by the parties cannot agree on a third arbitrator,
the AAA shall appoint a third arbitrator from the AAA’s Telecommunications
Panel, Commercial Panel, or Large/Complex Case Panel. Any third arbitrator’s
fees shall be paid directly by the parties in equal shares.
15.7.2. The
arbitrator in a single arbitrator matter shall be selected as
follows:
15.7.2.1.
Immediately upon initiation of arbitration, the AAA shall provide the parties
with a selection of five (5) arbitrators from the AAA’s Telecommunications
Panel, and a selection of five (5) arbitrators from the AAA’s Commercial
Panel.
15.7.2.2.
Within
fourteen (14) days of initiation of the arbitration, the parties shall either
have mutually agreed upon an arbitrator, whether from the AAA’s list or
otherwise, or shall provide to the AAA at least three (3) names from the
Telecommunications Panel list provided by the AAA, and at least three names
from
the Commercial Panel list provided by the AAA. Each party shall rank from one
(1) to six (6) (or higher, if a party leaves more than six (6) total names
on
the lists) the names received from the AAA and submit the names and ranking
to
the AAA. The arbitrator common to both parties’ list with the lowest combined
number when the rankings of each party are added together shall be appointed
as
the arbitrator. The arbitrator’s fees shall be paid in equal shares by the
parties directly to such arbitrator.
15.7.3.
|
The
AAA shall, upon being notified of the selection of an arbitrator,
immediately provide such arbitrator with all documents served on
or filed
with it in the arbitration.
|
15.8.
|
Arbitration
Procedures.
The
following procedures shall supplement or modify the procedures in
the WIA
Rules.
|
15.8.1.
|
Upon
selection of the arbitrator or arbitrators, the parties and the arbitrator
or arbitrators may mutually agree to self-administration in whole
or in
part of the arbitration, including direct payment of any arbitrator
or
arbitrators.
|
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
39
15.8.2.
|
No
Fast Track Arbitration as defined in the WIA Rules shall be employed
in
any arbitration between the parties, unless the parties mutually
agree, in
which case, the Fast Track rules shall govern selection of the
arbitrator.
|
15.8.3.
|
NO
ARBITRATION BETWEEN THE PARTIES MAY PROCEED ON A CLASS BASIS, OR
BE
CONSOLIDATED WITH ANY OTHER ARBITRATION, WITHOUT THE WRITTEN CONSENT
OF
ALL PARTIES.
|
15.8.4.
|
ANY
ARBITRATION AWARD MAY BE REVIEWED PURSUANT TO RULE l-6 OF THE WIA
RULES.
|
15.8.5.
|
NO
ARBITRATION AWARD MAY REFORM OR AMEND THIS
AGREEMENT.
|
15.8.6.
|
ANY
ARBITRATION AWARD MUST INCLUDE A STATEMENT BY THE ARBITRATOR OR
ARBITRATORS OF THE REASONS FOR THE AWARD.
|
15.8.7.
|
The
Parties may submit petitions to the neutral Arbitrator for summary
disposition of one or more of the issues to be arbitrated in a manner
consistent with Rule 56 of the Federal Rules of Civil Procedures
and the
neutral Arbitrator shall rule in a manner consistent with Rule 56
on the
petitions before proceeding with any hearings. Any petitions filed
pursuant to this Subsection shall be submitted to the neutral Arbitrator
no later than sixty (60) days after the demand for arbitration is
filed
with the AAA.
|
15.8.8.
NO ARBITRATION AWARD MAY INCLUDE ANY AWARD OF ATTORNEY’S FEES (EXCEPT AS
MAY BE REQUIRED BY ANY STATUTE PREEMPTING THE FEDERAL ARBITRATION ACT TO SUCH
EXTENT), PUNITIVE DAMAGES, EXEMPLARY DAMAGES, OR TREBLE OR OTHER MULTIPLE
DAMAGES. NO ARBITRATION AWARD MAY REFORM OR AMEND THIS AGREEMENT.
15.9.
|
Severance.
If
any court case is commenced involving the parties, and any controversy
or
claim exists or arises between the parties in such case, which would
be
subject to arbitration pursuant to this Agreement, the controversy
or
claim shall be severed for resolution by arbitration pursuant to
the
provisions of this Agreement. If any third party not subject to the
provisions of this Agreement is a necessary party to any such controversy
or claim between the parties, and that third party refuses to consent
to
arbitration pursuant to this Agreement, all issues that can be resolved
without such third party shall remain subject to this Agreement and
shall
be severed and resolved by arbitration before any other issues between
the
parties are resolved.
|
15.10.
|
Confidentiality.
The parties shall comply with the following confidentiality provisions
with respect to dispute resolution and
arbitration:
|
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
40
15.10.1.
No
admission or statement made by either party in the course of a good faith
negotiation pursuant to this Section 15 may be used in any fashion in any
arbitration or court case. All such admissions or statements shall be deemed
confidential and made pursuant to a settlement privilege. The making of any
such
admission or statement shall not, however, preclude the admission in any
arbitration or court case of any evidence that would otherwise be
admissible.
15.10.2.
|
No
admission, statement, or document made or disclosed by either party
in the
course of arbitration may be disclosed to any third party except
as
required by law or to compel arbitration, compel compliance with
this
Agreement, or to confirm any arbitration award. This shall not preclude
disclosure to the arbitrators or the AAA, to the Affiliates and Successors
of a party, or to the officers, directors, employees, shareholders,
or
agents and professional advisors of any of them, to the extent such
entities and persons agree to be bound by these
provisions.
|
16.
|
WAIVER
OF TRIAL BY JURY.
IN
THE EVENT THAT THE DISPUTE RESOLUTION AND ARBITRATION CLAUSE IS DEEMED
TO
BE NOT ENFORCEABLE, WITH RESPECT TO ANY JUDICIAL ACTION WHICH MAY
ARISE
UNDER OR WITH RESPECT TO THIS AGREEMENT, OR ANY RELATIONSHIP OR DEALINGS
BETWEEN THE PARTIES THAT ARISE OUT OF OR BY VIRTUE OF THIS AGREEMENT,
EACH
PARTY AGREES TO WAIVE TRIAL BY JURY. AUTHORIZED AGENT CONSENTS TO
THE
BRINGING OF ANY SUCH ACTION UNDER THIS AGREEMENT IN THE CITY OF THE
PRINCIPAL OFFICE OF THE VERIZON WIRELESS REGION WHERE THE CONTROVERSY
OR
CLAIM AROSE.
|
17.
|
NOTICE.
Except as otherwise provided in this Agreement, all notices required
or
permitted to be given hereunder shall be in writing and shall be
valid and
sufficient if dispatched by: a) registered or certified mail with
return
receipt requested, postage prepaid in any post office in the United
States; b) hand delivery; c) overnight courier prepaid; d) via facsimile
transmission upon confirmation of receipt; or e) placed on the web-based
automated system (e*Roes and InfoCenter). If to Authorized Agent,
Verizon
Wireless shall address all written notices required under the terms
of
this Agreement to the individual whose signature appears on this
Agreement
at the principal place of business set forth in the preamble of this
Agreement. If to Verizon Wireless, Authorized Agent shall send all
notices
required under the terms of this Agreement
to:
|
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
41
Verizon
Wireless
0000
Xxxxxxxxx Xxxx, Xxxxx 0000
Xxxxxxxxxx,
XX 00000
Attention:
Director, Indirect Sales
With
a
copy to:
Verizon
Wireless
0000
Xxxxxxxxx Xx., Xxxxx 0000
Xxxxxxxxxx,
XX 00000
Attention:
Legal Department
18.
|
ENTIRE
AGREEMENT.
This Agreement, including its exhibits, schedules and addenda, which
are
incorporated herein by this reference, constitutes the understanding
between the parties pertaining to the subject matter hereof and supersedes
any and all prior agreements and understandings. There are no other
oral
or written understandings or agreements between Verizon Wireless
and
Authorized Agent relating to the subject matter
hereof.
|
IN
WITNESS WHEREOF, the
parties hereto have executed and delivered this Agreement in counterparts on
the
day and year written below.
Cellco
Partnership
|
AGENT:
US Telematics
|
dba
Verizon Wireless
|
|
By:
|
By:
|
||
(Signature)
|
(Signature)
|
||
Name:
|
Name:
|
||
(Please
Print)
|
(Please
Print)
|
||
Title:
|
Title:
|
||
Date:
|
Date:
|
VERIZON
WIRELESS CONFIDENTIAL AND PROPRIETARY INFORMATION
NOT
TO BE COPIED OR DISCLOSED WITHOUT VERIZON WIRELESS' WRITTEN
PERMISSION.
42