EXCLUSIVE MARKETING AGREEMENT
Exhibit 10.1
DATA CALL TECHNOLOGIES, INC. (Data Call) LEIGHTRONIX, INC. (Marketer)
THIS
AGREEMENT (Agreement), made and entered into this
25th
day of September,
2007 , (Effective Date) by and between
Data Call Technologies, Inc., (Data Call), a Nevada
corporation, with its principal place of business at 000 Xxxxxxx, Xxxxx X-00,
Xxxxxxx, TX., and Leightronix, Inc., (Marketer), a Michigan
corporation, with its principal place of business at 2330 Jarco Drive, Holt,
MI., and together (Parties).
PURPOSE
OF AGREEMENT
Data
Call
and Marketer wish to enter into an Agreement in which Marketer will be given
exclusive rights to provide Direct Xxxx Messenger™ data feed for compensation to
the Public, Education & Government broadcast industry. In pursuit
of this goal, the Parties agree to the following:
1. MARKETER
RELATIONSHIP & GRANT OF AUTHORITY
1.1
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Independent
Contractor. Marketer is an independent contractor and not
an employee, franchiser, partner or co-venturer of or with Data
Call. Marketer is solely responsible for its own business
expenses, including, without limitation, all federal, state and local
taxes as well as all payroll taxes for himself and his
employees.
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2. IDENTIFICATION
AND HANDLING OF EXCLUSIVE INDUSTRY
2.1
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Except
as restricted by this Agreement, effective as of the date of this
Agreement, Marketer shall have exclusive rights to market, sell and
distribute Data Call’s Direct Xxxx Messenger™ data feeds in the Public,
Education and Government (PEG) cable industry as identified
below:
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a.
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Public
Access Television, Content services which are available through cable
operators and television broadcast stations, which are available
to the
general public, usually at little or no cost, is content neutral,
first-come, first-served, and serves a free speech
ideology. These programming outlets are typically funded by
non-profit organizations, viewer contributions, and government
municipalities through franchise fees. By nature they provide
an outlet for a general populace to express ideas, concepts,
and programming. Advertisement funding generally is not
utilized to fund any operations.
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b.
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Educational
Access Television, Educational access is the institution set aside for
fulfilling the needs of educational departments and organizations,
commonly associated with the PEG Industry. Educational access
channels may be associated with a specific school, school district(s)
or
even private organizations that are contracted to operate the access
stations for the educational
entity.
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c.
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Government
Access Television, Government access television is a resource of the
city to address local municipal programming and informational
needs. Often the city or town may use the G channel to
cable-cast city council meetings, election programming, local emergency
announcements, and other events and/or programs valued by local
Governments, and its associated Information Technology
departments.
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2.2
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Authorization, Except
as restricted by this Agreement, effective as of the date of this
Agreement, Marketer shall be authorized to sell, market, distribute
and
deliver Data Call Direct Xxxx Messenger™ data feeds to the PEG industry,
as
outlined in Section 2.1 in this Agreement. Moreover, Marketer
shall reserve exclusive rights to sell and/or deliver said
feeds. Except as restricted by this Agreement, Marketer shall
have the right to market and sell through his sub-dealers, sub
distributors, third party sales agents, other resellers and/or
re-marketers.
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2.3
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Relinquishment,
Effective as of the date of this Agreement, Data Call agrees that
all
sales leads, sales, information calls, and processes, related to
the
delivery and sales of Direct Xxxx Messenger™ data feeds, shall be directed
to Marketer once it is ascertained, by Data Call, potential sale
lead
falls within the scope of exclusivity, as defined in Section 2.1
of this
Agreement.
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In
occurrences where Data Call is approached by existing Data Call clients and/or
customers, and these requests and/or purchases of service would, by definition,
fall within the scope of this agreement, Data Call shall process and book the
sale independent of the Marketer. In these third party sales
instances, and in consideration of this agreement, Marketer shall be
commissioned and receive credit for these sales, against minimum requirements
and in excess of minimum requirements as defined in Attachment A. In
consideration of Data Call handling the sale, and applying credit and
commissions to Marketer, Data Call may charge a one time administration fee
not
to exceed $75.00. Pricing and commissions shall be paid to Marketer
as defined in Section A2.2 on Attachment A of this Agreement.
2.4
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Covenants,
Except as restricted by this Agreement, effective as of the date
of this
Agreement, Marketer acknowledges and agrees that in its
capacity:
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a.
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Marketer
has built business and independent relationships within the PEG industry
for the sales, distribution, deployment, and support of various
proprietary service products. Further, Marketer acknowledges
and agrees this Agreement will elicit additional contacts which may/will
fall outside of these established relationships. Marketer shall
be bound to the same set pricing structures to all potential sales
and/or
sales prospects, irrespective of previous working relationships which
may
or may not be previously established by
Marketer.
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b.
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Marketer
shall have exclusive rights, as described in this Agreement, for
the
following areas:
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1.
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Xxxxx
00 Xxxxxxxxxx Xxxxxx Xxxxxx
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2.
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Alaska
and Hawaii
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c.
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Marketer
shall have first right of refusal for marketing Data Call products
to
industries, companies, and/or entities which are not defined in Section
2.1and Section 2.2 of this agreement. Marketer must
receive prior written approval for all instances where Marketer markets
Data Call products to industries, companies, and/or entities outside
the
scope of Section 2.1 of this agreement. Parties agree to
utilize, to the best of their abilities, an online database system
to
register and verify accounts which might be considered for inclusion
to
the first right of refusal. Marketer acknowledges and accepts that
pricing, commissions, and/or credits for these sales will be inspected
and
formulated on a case-by-case basis.
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3. MARKETER
RESPONSIBILITIES
3.1 Day-to-Day
Management. Marketer shall be responsible for the overall
day-to-day management of Marketer issues.
3.2
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Information
Technology Management. Marketer shall be responsible for
the management of client account hardware, client account software,
and
client account delivery systems (i.e., Internet, Cable Broadcast,
etc.),
for all sales which are marketed directly by Marketer, to clientele
which
falls within scope defined as PEG in Section 2.1, but not in Section
2.3, of this agreement.
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3.3
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Client
Account/System Activation. Marketer will activate all
services via the Data Call website for information feeds for sales
related
to, and defined as PEG in Section 2.2, but not in Section 2.3 of
this
agreement.
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3.4
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Data
Flow. Marketer will pull and/or download, from Data Call
servers, relevant rss, xml, xml grouped, xml ungrouped and ASCII
code to
Marketer’s servers/hardware for redistribution to clients/customers as
defined in Section 3.2 of this
agreement.
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3.5
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Client/Customer
Management. Marketer shall be responsible for the
development and management of billing systems, and customer support
systems for those clients/customers sold, which fall under classifications
defined in Section 2.1, but not in Section 2.3, of this
agreement.
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3.6
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Marketer
Reporting. Marketer shall report, via electronic
submission, all monthly sales, which fall within classifications
outlined
in Section 2.1, but not in Section 2.3, of this agreement, no later
than
five (5) business days past the last day of that month. If this
day falls on a weekend or a business holiday, Marketer shall submit
this
report the first business day immediately
following.
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3.7
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Account
Auditing. Marketer agrees to periodic account audits by
Data Call.
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4. DATA
CALL RESPONSIBILITIES
4.1
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Information
Technology Management. Data Call shall be solely
responsible for the design, development, supply production and performance
of its Data Call Direct Xxxx MessengerTM
service(s)
and the protection of its patents, trademarks and trade names. Data
Call
shall be responsible for the management of client account hardware,
client
account software, and client account delivery systems (i.e., Internet,
Cable Broadcast, etc.), for all sales which are marketed and/or sold
to
third party customers which falls within scope defined as PEG in
Sections
2.1 and 2.3, of this
agreement.
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4.2
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Server
Configurations. Data Call shall acquire hardware, software,
and internet bandwidth for the purpose of providing dedicated Direct
Xxxx
MessengerTM
service(s)
to industries defined in this
agreement.
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4.3
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Client
Account/System Activation. Data Call will activate all
services via the Data Call website for information feeds for sales
related
to, and defined as PEG in Sections 2.1, and 2.4 of this
agreement.
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4.4
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Client/Customer
Management. Data Call shall be responsible for the
development and management of billing systems, and customer support
systems for those clients/customers sold, which fall under classifications
defined in Sections 2.1 and 2.3, of this
agreement.
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4.5
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Data
Call Reporting. Data Call shall report, via electronic
submission, all monthly sales, which fall within classifications
outlined
in Sections 2.1 and 2.3, of this agreement, no later than five (5)
business days past the last day of that month. If this day
falls on a weekend or a business holiday, Marketer shall submit this
report the first business day immediately
following.
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4.6
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Price
Adjustments. Data Call must pre-approve any increase or
decrease of set price structure(s).
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4.7
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Support. Data
Call shall provide assistance to Marketer, or Marketer’s designee, on
one-on-one calls, conference calls, and technical support calls,
as it
relates to the efficient operation of Data Call’s Direct Xxxx
MessengerTM
service(s).
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4.8
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Training. Data
Call shall provide training as needed to Marketer, and/or his Sales
Representatives, on the use of Data Call’s Direct Xxxx MessengerTM
service(s).
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5. PRICING,
GUARANTEES, PAYMENT & TAXES
5.1
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Prices. To
initiate this agreement, Marketer agrees to pay the sum of $4,500,00
to
Data Call on the effective date of this agreement. Subsequent
pricing to be paid by Marketer for products sold thereafter shall
be the
prices defined in Attachment A, attached
hereto.
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5.2
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Guarantees. In
consideration of this exclusive Agreement, as defined in Section
2.2,
Marketer agrees to honor and maintain minimum Data Call Direct Xxxx
MessengerTM
subscription
requirements, as defined in Attachment A, attached
hereto.
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5.3
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Payment. Marketer
shall pay Data Call monthly, within 15 days of submitting Marketer’s
monthly report, as defined in Section 3.6 of this Agreement, all
proceeds
for sales made pursuant to this Agreement, and according to price
structures/commission structures defined in Attachment
A. Pursuant to this Agreement, Marketer shall guarantee minimum
subscription requirements, as defined in Attachment
A.
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Data
Call
shall pay Marketer monthly, within 15 days of submitting Data Call’s report, as
defined in Section 4.5 of this Agreement, all proceeds for third party sales
made by Data Call pursuant to this Agreement, and according to price
structures/commission structures defined in Attachment A, minus any and all
applicable administrative fees, as defined in Section 2.3
5.4
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Taxes. Both
Parties agree to pay all applicable sales, value-added and other
transactional taxes associated with their respective sale of products,
as
defined in this agreement.
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6. TERM
AND TERMINATION
6.1
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Term. This
Agreement shall commence on the Effective date, as defined in this
Agreement. The initial term of the Agreement shall be three
years, at which time the Agreement will automatically renew for successive
one year periods, until terminated as provided in Section 6.2, or
by
mutual consent.
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6.2
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Termination. This
Agreement may be terminated prior to expiration of the initial or
any
renewal term by written notice to the other Party as
follows:
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a.
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By
Data Call, effective with 60 days written notice, in the event that
Marketer breaches any of the terms of this
Agreement.
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b.
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By
Data Call, effective with 30 days written notice, if Marketer shall
become
the subject of any voluntary or involuntary bankruptcy, receivership
or
insolvency proceeding, shall make an assignment for the benefit of
any
creditor, or shall attempt to make any other assignment contrary
to the
provisions of this Agreement.
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c.
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By
Data Call, effective with 60 days written notice, if in the opinion
of
Data Call, there has occurred any material change in the ownership,
management, sales and marketing capability or financial condition
of
Marketer, which would adversely affect the spirit of this Agreement,
and
Marketer’s ability to satisfy the conditions of this
Agreement.
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d.
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By
Data Call, effective with 30 days written notice, if Marketer has
engaged
in deceptive, unethical or illegal trade practices in connection
with the
sale of Data Call Direct Xxxx MessengerTM
product.
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e.
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By
Marketer, effective with 60 days written notice, in the event that
Data
Call breaches any of the terms of this
Agreement.
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f.
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By
Marketer, effective with 30 days written notice, if Data Call shall
become
the subject of any voluntary or involuntary bankruptcy, receivership
or
insolvency proceeding, make an assignment for the benefit of any
creditor,
or shall attempt to make any other assignment contrary to the provisions
of this Agreement.
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g.
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By
Marketer, effective with 60 days written notice, if in the opinion
of
Marketer, there has occurred any material change in the ownership,
management, sales and marketing capability or financial condition
of Data
Call, which would adversely affect the spirit of this Agreement,
and Data
Call’s ability to satisfy the conditions of this
Agreement.
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h.
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By
Marketer, effective with 30 days written notice, if Data Call has
engaged
in deceptive, unethical or illegal trade practices in connection
with the
sale of Data Call Direct Xxxx MessengerTM
product.
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I.
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By
mutual agreement, effective on mutually agreed upon date (Effective
Date
of Termination), from both Parties.
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j.
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By
both Parties, effective with 90 days written notice, at the expiration
of
this Agreement, or the expiration of a subsequent renewal of this
agreement.
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6.3
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Rights
of Parties on Termination of the Agreement. The
following provisions shall apply on termination of this
Agreement:
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A Mutually
Agreed Termination.
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1.
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Marketer
shall cease all sales activities relating to the Direct Xxxx
MessengerTM
product,
shall return to Data Call all sales and marketing related material
supplied by Data Call and all Confidential Information which is then
in
Marketer’s possession or control. On the Effective Date of
Termination, Marketer shall discontinue presenting Marketer as
a contracted partner of Data Call.
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2.
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Data
Call shall cease all activities related to the production of Direct
Xxxx
MessengerTM
information
feeds for Marketer. Additionally, Data Call shall cease
referring to Marketer as a contracted partner of Data
Call.
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3.
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Upon
the mutually agreed termination, Data Call shall continue to provide
the
Direct Xxxx MessengerTM
to Marketer
for accounts which Marketer has effective contracts, have been reported
and paid to Data Call, previous to the Effective Date of Termination.
Data
Call shall provide these information feeds until the expiration of
such
Marketer-Customer agreements, for a period not to exceed twelve (12)
calendar months from the Effective Date of
Termination.
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4.
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In
consideration of existing customer/client contracts/agreements which
Marketer may have in effect at the date of termination, Marketer
shall
have the right and authorization to procure like or similar products
and/or services required or necessary to service its
customers/clients. This may include contracting with entities
which may or could be considered competitive to Data Call’s
operations. However, Marketer shall be prohibited, and agrees
not to convey or deliver ANY Data Call proprietary information, market
strategies, future product information,
trademark/copyright information, or any other confidential
knowledge, Marketer may have gained during the term of this Agreement,
to
ANY external entity, for a period of two (2) years from the effective
date
of the termination. Additionally, Marketer shall be prohibited
from using any proprietary knowledge obtained during the term of
this
Agreement to compete with, or assist other entities, in competing
directly
with Data Call.
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5.
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In
consideration of Data Call’s commitment to Marketer for exclusive rights
to the PEG industry, and the potential loss of business and/or revenue
attached to termination of this Agreement, Data Call shall have the
right
and authorization to procure like or similar partners to Marketer,
to
deliver the Direct Xxxx MessengerTM
product to
the PEG industry. Data Call, however, shall be prohibited to
convey or deliver ANY Marketer proprietary information, marketing
strategies, future product information, trademark/copyright information,
or any other confidential knowledge, Data Call may have gained during
the
term of this Agreement, to ANY external entity, for a period of two
(2)
years from the effective date of the termination. Additionally,
Data Call shall be prohibited from using any proprietary knowledge
obtained during the term of this Agreement to compete with, or assist
other entities, in competing directly with
Marketer.
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6. |
a.
All
indebtedness of Marketer to Data Call, notwithstanding prior terms
of
sale, shall become immediately due and payable. Data Call shall
be entitled to reimbursement of reasonable attorney’s’s fees that it may
incur in collecting such indebtedness. Data Call may offset and
recoup any sums owed or to become owed to Data Call from Marketer
against
any sums owed by Data Call to Marketer.
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b.
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All
indebtedness of Data Call to Marketer, notwithstanding prior terms
of
sale, shall become immediately due and payable. Marketer shall
be entitled to reimbursement of reasonable attorney’s fees that it may
incur in collecting such indebtedness. Marketer may offset and
recoup any sums owed or to become owed to Marketer from Data Call
against
any sums owed by Marketer to Data
Call.
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7.
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Upon
termination and subsequent expiration of all subscriptions, respective
customers/clients shall become the property of the originating Party
which
initially sold the subscription, pursuant to definitions in Section
2 of
this Agreement. Both Parties agree not to approach, engage,
communicate, or attempt to sell services to the other Parties’
customers/clients for a period of two (2) years from the Effective
Date of
Termination.
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B. Termination
Initiated By Data Call.
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1.
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Pursuant
to conditions, and Effective Dates of Termination, defined in Section
6.2,
Sub-Sections a through d, Marketer shall cease all sales activities
relating to the Direct Xxxx MessengerTM
product,
shall return to Data Call all Sales and marketing related material
supplied by Data Call and all Confidential Information which is then
in
Marketer’s possession or control. On the Effective Date of
Termination, Marketer shall discontinue presenting Marketer as a
contracted partner of Data Call
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2.
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Pursuant
to conditions, and Effective Dates of Termination, defined in Section
6.2,
Sub-Sections a through d, Data Call shall cease all activities related
to
the production of Direct Xxxx MessengerTM
information
feeds for Marketer. Additionally, Data Call shall cease
referring to Marketer as a contracted partner of Data
Call.
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3.
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Pursuant
to conditions, and Effective Dates of Termination, defined in Section
6.2,
Sub-Sections a through d, Data Call shall calculate monthly pro-rata
refunds for all non-use subscriptions of Direct Xxxx MessengerTM
information
feeds sold, by Marketer as defined in Sections 2.3 and
2.4. Data Call shall then pay to Marketer, the balance of
non-used monthly subscriptions, minus an 8 percent administrative
fee, no
more than thirty (30) days after the Effective Date of
Termination.
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4.
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a.
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All
indebtedness of Marketer to Data Call, notwithstanding prior terms
of
sale, shall become immediately due and payable. Data Call shall
be entitled to reimbursement of reasonable attorney’s fees that it may
incur in collecting such indebtedness. Data Call may offset and
recoup any sums owed or to become owed to Data Call from Marketer
against
any sums owed by Data Call to
Marketer.
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b.
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All
indebtedness of Data Call to Marketer, notwithstanding prior terms
of
sale, shall become immediately due and payable. Marketer shall
be entitled to reimbursement of reasonable attorney’s fees that it may
incur in collecting such indebtedness. Marketer may offset and
recoup any sums owed or to become owed to Marketer from Data Call
against
any sums owed by Marketer to Data
Call.
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5.
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Upon
termination, respective customers/clients shall become the property
of the
originating Party which initially sold the subscription, pursuant
to
definitions in Section 2 of this Agreement. Both Parties agree
not to approach, engage, communicate, or attempt to sell services
to the
other Parties’ customers/clients for a period of two (2) years from the
Effective Date of Termination.
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6.
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In
consideration of existing customer/client contracts/agreements which
Marketer may have in effect at the date of termination, Marketer
shall
have the right and authorization to procure like or similar products
and/or services required or necessary to service its
customers/clients. This may include contracting with entities
which may or could be considered competitive to Data Call’s
operations. However, Marketer shall be prohibited, and agrees
not to convey or deliver ANY Data Call proprietary information, market
strategies, future product information,
trademark/copyright information, or any other confidential
knowledge, Marketer may have gained during the term of this Agreement,
to
ANY external entity, for a period of two (2) years from the effective
date
of the termination. Additionally, Marketer shall be prohibited
from using any proprietary knowledge obtained during the term of
this
Agreement to compete with, or assist other entities, in competing
directly
with Data Call.
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7.
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In
consideration of Data Call’s commitment to Marketer for exclusive rights
to the PEG industry, and the potential loss of business and/or revenue
attached to termination of this Agreement, Data Call shall have the
right
and authorization to procure like or similar partners to Marketer,
to
deliver the Direct Xxxx MessengerTM
product to
the PEG industry. Data Call, however, shall be prohibited to
convey or deliver ANY Marketer proprietary information, marketing
strategies, future product information, trademark/copyright information,
or any other confidential knowledge, Data Call may have gained during
the
term of this Agreement, to ANY external entity, for a period of two
(2)
years from the effective date of the termination. Additionally,
Data Call shall be prohibited from using any proprietary knowledge
obtained during the term of this Agreement to compete with, or assist
other entities, in competing directly with
Marketer.
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C. Termination
Initiated By Marketer.
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1.
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Pursuant
to conditions, and Effective Dates of Termination, defined in Section
6.2,
Sub-Sections e through g, Marketer shall cease all sales activities
relating to the Direct Xxxx MessengerTM
product,
shall return to Data Call all Sales and marketing related material
supplied by Data Call and all Confidential Information which is then
in
Marketer’s possession or control. On the Effective Date of
Termination, Marketer shall discontinue presenting Marketer as a
contracted partner of Data Call
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2.
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Pursuant
to conditions, and Effective Dates of Termination, defined in Section
6.2,
Sub-Sections e through g, Data Call shall cease all activities related
to
the production of Direct Xxxx MessengerTM
information
feeds for Marketer. Additionally, Data Call shall cease
referring to Marketer as a contracted partner of Data
Call.
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3.
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Pursuant
to conditions, and Effective Dates of Termination, defined in Section
6.2,
Sub-Sections e through g, Data Call shall calculate monthly pro-rata
refunds for all non-use subscriptions of Direct Xxxx MessengerTM
information
feeds sold, by Marketer as defined in Sections 2.3 and
2.4. Data Call shall then pay to Marketer, the balance of
non-used monthly subscriptions, no more than thirty (30) days after
the
Effective Date of Termination.
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4.
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a.
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All
indebtedness of Marketer to Data Call, notwithstanding prior terms
of
sale, shall become immediately due and payable. Data Call shall
be entitled to reimbursement of reasonable attorney’s fees that it may
incur in collecting such indebtedness. Data Call may offset and
recoup any sums owed or to become owed to Data Call from Marketer
against
any sums owed by Data Call to
Marketer.
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b.
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All
indebtedness of Data Call to Marketer, notwithstanding prior terms
of
sale, shall become immediately due and payable. Marketer shall
be entitled to reimbursement of reasonable attorney’s fees that it may
incur in collecting such indebtedness. Marketer may offset and
recoup any sums owed or to become owed to Marketer from Data Call
against
any sums owed by Marketer to Data
Call.
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5.
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Upon
termination, respective customers/clients shall become the property
of the
originating Party which initially sold the subscription, pursuant
to
definitions in Section 2 of this Agreement. Both Parties agree
not to approach, engage, communicate, or attempt to sell services
to the
other Parties’ customers/clients for a period of two (2) years from the
Effective Date of Termination.
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6.
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In
consideration of existing customer/client contracts/agreements which
Marketer may have in effect at the date of termination, Marketer
shall
have the right and authorization to procure like or similar products
and/or services required or necessary to service its
customers/clients. This may include contracting with entities
which may or could be considered competitive to Data Call’s
operations. However, Marketer shall be prohibited, and agrees
not to convey or deliver ANY Data Call proprietary information, market
strategies, future product information,
trademark/copyright information, or any other confidential
knowledge, Marketer may have gained during the term of this Agreement,
to
ANY external entity, for a period of two (2) years from the effective
date
of the termination. Additionally, Marketer shall be prohibited
from using any proprietary knowledge obtained during the term of
this
Agreement to compete with, or assist other entities, in competing
directly
with Data Call.
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7.
|
In
consideration of Data Call’s commitment to Marketer for exclusive rights
to the PEG industry, and the potential loss of business and/or revenue
attached to termination of this Agreement, Data Call shall have the
right
and authorization to procure like or similar partners to Marketer,
to
deliver the Direct Xxxx MessengerTM
product to
the PEG industry. Data Call, however, shall be prohibited to
convey or deliver ANY Marketer proprietary information, marketing
strategies, future product information, trademark/copyright information,
or any other confidential knowledge, Data Call may have gained during
the
term of this Agreement, to ANY external entity, for a period of two
(2)
years from the effective date of the termination. Additionally,
Data Call shall be prohibited from using any proprietary knowledge
obtained during the term of this Agreement to compete with, or assist
other entities, in competing directly with
Marketer.
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7. NON-COMPETITION
7.1
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Non-Competition. Parties
acknowledge and agree that by entering into this Agreement, Parties
will
obtain significant competitive information that would give Parties
an
unfair competitive advantage against the other in their respective
industry and business model. Therefore, Parties agree NOT TO
engage in the following, during the Effective dates or during the
term of
this Agreement:
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a.
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Data
Call shall not engage, solicit, develop, or set up any similar
partnerships or business relationships with any entity which delivers
services, products and/or solutions, primarily designed to target
markets
commonly referred to as the PEG Industry. With the exception of
circumstances defined in Section 2 of this Agreement, Data Call shall
direct any business, commonly referred to as the PEG industry, to
Marketer
for sales and processing.
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b.
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Data
Call shall not formulate, develop, or effectively set up any associated
or
affiliated entity which is similar in nature to the business of Marketer,
nor shall Data Call assist other entities in doing
so.
|
|
c.
|
Marketer
shall not engage, solicit, develop, or set up any similar partnerships
or
business relationships with any entity which delivers services, products
and/or solutions similar to products offered by Data
Call. Marketer shall not enter into agreements with entities
which are considered competitive to Data Call in the general business
of
delivering aggregated or non-aggregated informational feed
sources.
|
|
d.
|
Marketer
shall not formulate, develop, or effectively set up any associated
or
affiliated entity which is similar in nature to the business of Data
Call,
nor shall Marketer assist other entities in doing
so.
|
|
f.
|
Data
Call shall not directly assist any of its other dealers, partners
or
resellers, who may have cross-markets which may compete with Marketer,
insomuch as aiding those dealers, partners or resellers with an unfair
competitive advantage over
Marketer.
|
|
g.
|
Marketer
shall not directly assist any of its other dealers, partners or resellers,
who may have cross-markets which may compete with Data Call, insomuch
as
aiding those dealers, partners or resellers with an unfair competitive
advantage over Data Call.
|
|
h.
|
Except
in instances where Parties have preexisting relationships with entities
for business opportunities and purposes outside the scope of this
exclusive PEG Agreement, both Parties agree not to act or serve as
an
owner, partner, shareholder, officer, employee, dealer, sub-dealer,
licensee, consultant or formal or informal advisor of any person
or entity
who offers, provides, markets, procures or refers customers for any
substantially similar product where such similar product is in direct
competition with the products of the either Data Call or Marketer,
respectively. Both Parties shall have the right to engage new
relationships with persons or entities to the extent of pursuing
business
opportunities and purposes, provided those opportunities and purposes
fall
outside the scope and intent of this
Agreement
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|
I.
|
During
the term of this Agreement and for a period of two (2) years after
termination of this Agreement, Both Parties agree NOT TO directly
or
indirectly request any customer whom they know or should know to
be a
customer of the other party, to curtail, cancel or otherwise limit
such
customer’s use of other party’s products, otherwise solicit, divert or
attempt to solicit or divert any such customer to use any substantially
similar product from any other company where such similar product
is in
direct competition with products of the other
party.
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7.2
|
Contract
Interpretation. To the extent a court of competent
jurisdiction determines the provisions of Section 7.1 to be unenforceable
as written, Marketer and Data Call authorize and request such court
to
reform such provisions construing and interpreting same broadly,
to
provide Data Call with the maximum permissible protections against
Marketer competition.
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8. WARRANTY
8.1
|
Limited
Warranty. All products sold to Marketer hereunder
shall be subject to Data Call’s standard limited warranty for the
respective product (“Product Warranty”). The Product Warranty
shall be extended to end user purchasers of products from Data Call
who
purchase such products within twelve months of the date the products
are
provided to Marketer. Provided it falls within the
aforementioned time period, the warranty period for a product shall
commence upon the date stated in the Product Warranty. The
limited warranty statement included in the Product Warranty is the
exclusive statement of the controlling terms and conditions of the
limited
warranties on the products. Nothing in this Agreement or any
other written documentation or any oral communications with Marketer
or
other parties may alter the terms and conditions of the Product
Warranty. Data Call may, in its sole discretion, revise its
limited warranties from time to time, however, no change in limited
warranties will affect product orders already accepted by Data
Call. Marketer shall not offer or extend any warranty on the
products other than the Product Warranty. Marketer agrees to
pass on to Marketer’s end-users only Data Call’s limited warranties and
Marketer will be liable for any greater warranty that Marketer purportedly
transfers to any end user. Marketer will indemnify, defend and
hold Data Call harmless for any damages or other costs (including
reasonable and necessary attorney’s fees and/or litigation costs) that
arise or in any way relate to Marketer’s failure to properly inform
Marketer’s end-users of current limited
warranties.
|
8.2
|
Disclaimer
of Warranties. DATA CALL MAKES NO EXPRESS OR IMPLIED
WARRANTIES FOR THE PRODUCTS EXCEPT AS INCLUDED IN THE PRODUCT WARRANTY
(as
discussed in Section 8.1). COMPANY DOES NOT WARRANT THAT
MARKETER’S ABILITY TO ACCESS DATA CALL’S WEB SITE WILL BE UNINTERRUPTED OR
ERROR FREE. NO WARRANTY OR ASSURANCE, EXPRESS, IMPLIED, OR
STATUTORY, IS MADE OR GIVE BY COMPANY WITH RESPECT TO ITS SERVICES
HEREUNDER, THE WEB SITE OR ANY OTHER MATTER, INCLUDING, WITHOUT LIMITATION
(AND DATA CALL SPECIFICALLY AND EXPRESSLY DISCLAIMS) ALL WARRANTIES
OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR
PURPOSE.
|
9. CONFIDENTIALITY
AND PROPRIETARY RIGHTS
9.1
|
Definition
of Confidential Information. “Confidential Information”
means any information or data disclosed by, either Party to the other
Party, in contemplation of this Agreement, including but not limited
to,
data, know-how, algorithms, computer programs, processes, improvements,
designs, devices, systems, test results, sketches, photographs, plans,
drawings, product concepts, specifications, reports, laboratory notebooks,
business and financial plans, strategies, budgets, vendor, customer
and
distributor names, addresses or related data, pricing information,
production or manufacturing information, product sales information
or
forecasts, inventions, ideas, and which if in tangible form or other
media
that can be converted to readable form is clearly marked a proprietary,
confidential or private when disclosed, or if oral or visual, is
promptly
identified in writing as proprietary, confidential or
private. If either Party inadvertently fails to xxxx or
identify as proprietary, confidential or private information for
which it
desires confidential treatment, it shall so inform the other
Party. The other Party thereupon shall return the
unmarked information, and shall substitute properly marked
information. In addition, if either Party, at the time of
disclosure, inadvertently fails to identify as proprietary, confidential
or private oral or visual information for which it desires confidential
treatment, it shall so inform the other Party and advise and obligations
hereunder shall commence upon such
notice.
|
9.2
|
Exempted
Confidential Information. Any written consent to disclose
Confidential Information (“Exempted Confidential Information”) shall be
strictly construed in its scope and interpretation against disclosure
of
Confidential Information and shall be strictly construed in its scope
to
limit the amount of information which constitutes Exempted Confidential
Information.
|
9.3
|
Use. Both
Parties agree to use the Confidential Information for only the purpose
of
this Agreement and subject to the disclosure limitations set forth
herein. No patent, copyright, trademark, service xxxx or other
proprietary right is implied, licensed, granted or otherwise transferred
by this Agreement.
|
9.4
|
Non-Disclosure. Neither
Party shall
disclose, communicate or convey the Confidential Information, in
whole or
part, to any third party. Both Parties shall restrict the
disclosure of Confidential Information to employees with a need to
know
such Confidential Information for the furtherance of the purpose
of this
Agreement, and only after advising such employee(s) for their obligations
hereunder to maintain the confidential and proprietary nature of
the
Confidential Information. Both Parties shall protect the
Confidential Information with at least the degree of care with which
it
protects its own confidential and proprietary information, but in
no case
with less than a reasonable degree of
care.
|
9.5
|
Reproduction. Confidential
Information Shall be copied only as necessary for those employees
entitled
to receive it and Marketer shall ensure that any confidentiality
notice
affixed to the original are reproduced on any and all resulting
copies.
|
9.6
|
Injunctive
Relief. Parties acknowledge and agree that an impending or
existing violation of Sections 10 or 11 would cause the other Party
irreparable injury for which they would have no adequate remedy at
law
and, therefore, Parties agree that the other Party shall be entitled
to
obtain immediate injunctive relief prohibiting such violation, in
addition
to any other rights and remedies available to
it.
|
9.7
|
Exceptions
to the Non-Disclosure and Non-Use Obligations. The non-disclosure and
non-use obligations imposed by this Agreement shall
not apply, or shall cease to apply, to any Confidential Information
if or
when, and to the extent that, Parties can establish that such Confidential
Information:
|
|
a.
|
Was
known by Parties, or its parents, subsidiaries or affiliates prior
to the
receipt of the same.
|
|
b.
|
Was,
or becomes through no breach of either Party’s obligations hereunder,
known to the public.
|
|
c.
|
Becomes
known by Parties, or its parents, subsidiaries or affiliates from
sources
other than or under circumstances not involving any breach of any
confidentiality obligation between such source and respective
Party.
|
|
d.
|
Is
or was independently developed by either Party or its parents,
subsidiaries or affiliates without the use of other Party’s Confidential
Information.
|
|
e.
|
Is
required to be disclosed by law, statute, rule, regulation, Court
order or
other valid legal process, or order of any governmental body of the
United
States or any political subdivisions thereof, but only to the extent
of
and for the purposes of such law, statute, rule, regulation or order,
and
only if Party first notifies other Party of the pending disclosure
and
permits objections and/or seeks appropriate
protections.
|
9.8
|
Return
or Destruction of Confidential Information. Confidential
Information, including any permitted copies, shall be deemed the
property
of producing Party. Parties shall, within twenty (20) days of
(a) a written request by other Party or a written notice of termination
of
this Agreement, return all Confidential Information (or any designated
portion thereof), including all copies thereof, to the other Party
or, if
so directed by Parties, destroy such Confidential
Information. Parties shall also, within ten (10) days of a
written request, certify in writing that it has satisfied its obligations
under this Section.
|
9.9
|
No
Warranties on Confidential Information. Neither Party
warrants or guarantees the accuracy of any Confidential
information.
|
9.10
|
Civil
Legal Actions. Disputes shall be resolved by binding
arbitration between the Parties. Arbitration is the referral of
a dispute to one or more impartial persons for a final and binding
determination and is designed for a quick, practical, and inexpensive
resolution of claims. The arbitration between Marketer and Data
Call will be conducted in accordance with the Commercial Arbitration
Rules
of the American Arbitration Association and, to the extent not
inconsistent with such rules, the Federal Arbitration Act, subject
to the
following modifications:
|
|
a.
|
The
arbitration shall be conducted before a single arbitrator who shall
be
experienced in the resolution of commercial
disputes.
|
|
b.
|
The
site of the arbitration shall be the city, county and state which
Data
Call is located.
|
|
c.
|
The
substantive law which shall govern the interpretation of this agreement
and the resolution of any Dispute will be the law of the state where
Data
Call is located.
|
|
d.
|
The
arbitration shall not include any party other than the Data Call
and
Marketer and shall not be joined or consolidated with any other
arbitration.
|
|
e.
|
In
determining the appropriate relief to be awarded, the arbitrator
shall not
have jurisdiction to award consequential or punitive damages to any
party
in the arbitration or either party its costs, expert witness or attorney's
fees; provided that, if either restriction on jurisdiction conflicts
with
the substantive law applicable to the arbitration, the substantive
law
with respect to such restriction shall control. If attorney's
fees are awardable under the substantive law pertaining to the
arbitration, then the prevailing party shall be entitled to recover
its
reasonable attorney's fees. The maximum amount of such fees
shall not exceed the ratio of the recovery actually awarded the prevailing
party to the total recovery sought by the prevailing
party. (i.e., If a party is awarded one-half of the recovery it
sought, then the maximum amount of attorney's fees to which it would
be
entitled would be one half of its actual
fees).
|
|
f.
|
The
prevailing party in any of the following matters (without regard
to
Sub-Section e) shall be entitled to recover its reasonable attorney's
fees
incurred in connection with such matters; any motion which any party
is
required to make in the courts to compel arbitration of dispute;
any
appeal of an arbitration award, whether to the arbitrator or the
courts,
for the purpose of vacating, modifying, or correcting the
award.
|
Limitation
of Action. All arbitration claims must be filed within 12 months
after the date in which the incident giving rise to the dispute occurred;
provided that, if the substantive law applicable to the arbitration prohibits
the parties from agreeing to this limitation period, then the limitation period
under the applicable substantive law shall control. The failure of a
party to file an arbitration claim within the applicable limitation period
shall
constitute a waiver by that party of its right to bring such a claim, and the
arbitrator shall have no jurisdiction to hear any claim not filed within such
period
10. INTELLECTUAL
PROPERTY
10.1
|
Trademarks
and Trade Names. All Products sold to Marketer shall not
bear Data Call’s trademarks. If in the event a trademark, copyright and/or
service xxxx (collectively, the “Marks”) inadvertently appears in feeds
provided by Data Call, Marketer is authorized to conceal or alter
any such
Marks without Data Call’s prior written consent. Marketer
understands and acknowledges that all Marks used by Data Call, along
with
all copyright, trademark, service xxxx, trade secret, patent and
all other
intellectual property rights (including all rights of registration
or
renewal thereof and all causes of action related thereto) (collectively,
the “Intellectual Property Rights”) associated therewith, are
the
|
|
property
of Data Call. Subject to the terms and conditions of this
Agreement, Data Call grants Marketer a limited, exclusive,
non-transferable, revocable license during the term of this Agreement
to
use and reproduce such Marks in advertisements and other promotional
materials relating to the Products in accordance with such standards
for
use of Marks (“Standards for Use of Marks”) as established by Data Call
and posted on the Data Call corporate web site
xxx.xxxxxxxxxxxx.xxx. All advertisements and other
promotional materials using Data Call’s Marks that are prepared by
Marketer shall include an appropriate notice indicating that such
Marks
are the property of Data Call. Marketer shall not use Data Call’s Marks or
name as part of Marketer’s corporate or business name, provided that
Marketer may identify itself as an authorized Marketer of Data Call.
Marketer shall not register any of Data Call’s Marks or any xxxx or name
closely resembling them. Any unauthorized use of the Marks, any use
not in
compliance with this Agreement or with the Standards for Use of Marks,
or
any action that, in Data Call’s sole discretion, constitutes infringement
of the Marks by Marketer, shall constitute a breach of this
Agreement.
|
10.2
|
Data
Call Rights; Termination. Marketer acknowledges that it has
no rights in or to the Marks except as provided herein and shall
not
acquire any rights in the Marks or expectancy to their use as a result
of
any use of the Marks by Marketer, and that any good will arising
out of
any use of the Marks by, through or under Marketer shall inure solely
to
the benefit of Data Call. Following termination of this
Agreement, such license shall expire and Marketer shall immediately
discontinue use of any Marks (and any other trademarks or service
marks
which Data Call deems to be confusingly similar thereto) and shall
promptly destroy or, at Data Call’s option, forward to Data Call all
advertising and promotional materials, displays, order forms, signage,
and
all other materials that contain any
Marks.
|
10.3
|
Other
Rights. Marketer acknowledges that the Products involve
valuable Intellectual Property Rights. As between Data Call and
Marketer, Data Call shall retain all right, title, and interest therein,
and no title to or ownership of any Intellectual Property Right associated
with the Products are transferred to Marketer under this
Agreement.
|
11. NOTICES
11.1
|
Notices. Any
written notice, demand or communication required to be given as defined
in
this Agreement shall be personally delivered, delivered by a nationally
recognized overnight courier service, or delivered by certified U.S.
Mail,
return receipt requested. Any such written notice shall be
addressed to the following applicable address, and shall be effective
on
the date actually delivered:
|
|
If
to Data Call
|
Data
Call Technologies, Inc.
|
000
Xxxxxxx, Xxxxx X-00
Xxxxxxx,
Xxxxx 00000
|
If
to Marketer
|
Leightronix,
Inc.
|
0000
Xxxxx Xxxxx
Xxxx,
Xxxxxxxx 00000
12. REPRESENTATION
12.1
|
Representation
of Signatory Authority. Each individual signatory hereto
signs only in his/her capacity as an authorized representative of
the
respective Party indicated and not in his/her individual capacity,
except
that, each such individual does, in his/her individual capacity,
represent
and warrant that he/she is, in fact authorized to sign this Agreement
on
behalf of and to bind the respective Party on whose behalf he/she
purports
to act.
|
IN
WITNESS WHEREOF, the Parties have caused these presents to be duly executed
on
the date define as Effective Date.
WITNESSES:
DATA CALL TECHNOLOGIES, INC. (Data Call) LEIGHTRONIX, INC. (Marketer)
(Signature of Authorized
Representative)
(Signature of Authorized Representative)
/S/
Xxx
Xxxxxx
/S/ Xxxxx Xxxxxxxx
(Printed
Name) (Printed
Name)
Xxx Xxxxxx Xxxxx
Xxxxxxxx
(Title)
(Title)
President /
CEO
President
(Dated) (Dated)
September 25,
2007
Septemebr 25, 2007
ATTACHMENT
A
A1. MINIMUM
SUBSCRIPTION REQUIREMENTS
[Removed
due to confidentiality]
A2. PRICING
STRUCTURES
[Removed
due to confidentiality]