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SALES
REPRESENTATION AGREEMENT
THIS SALES REPRESENTATION
AGREEMENT (this
dated this
_______ day of ___________________ by
and between eRoom System
Technologies,
Inc. (
(referred
to hereinafter as
W I T N E S S E T H:
WHEREAS, Company desires to obtain the
services of Representative
in
representing Company's products and
services described more fully in Exhibit
hereinafter as the
WHEREAS, Representative represents that
he/she/it has extensive
knowledge
of business opportunities, laws,
governmental regulations and procurement
practices and desires to represent the
Products in the
NOW, THEREFORE, in
consideration of the mutual agreements and
obligations
and covenants
herein contained, the parties agree as follows:
ARTICLE 1: APPOINTMENT
1.01 Representation Appointment.
Company hereby appoints
Representative
to
be its representative of the
Products in the performance-based protected
incorporated herein by
reference (the
protected in the
Territory so long as Representative adheres to the
terms and
conditions described herein.
1.02 Sales Outside the Territory. Sales
made to corporations residing
outside
of the Territory are subject to the
in
Article 4.0 hereof. Notwithstanding the
foregoing, Representative may not
effect
sales of the Products
outside the Territory without the express written
consent
of the Company's Executive Vice
President of Sales and Marketing (the
1.03 Excluded Sales. This Agreement
excludes all
agreements
and
sales such as service and maintenance, including,
but not limited to parts,
spares,
replacement units, expansion units, and services.
1.04 Independent Contractor. In making
this appointment,
Representative is
and shall remain, an independent
business contractor and nothing herein shall
be
deemed to imply or create
a relationship of employee and employer.
Representative shall not represent that
Representative has the power or
authority to enter into any agreements
or contractual obligations on behalf of
Company unless Company provides a
separate letter of authorization
authorizing
Representative
to execute agreements on behalf of Company.
ARTICLE 2: SCOPE OF WORK
2.01 Representative's Obligations.
During the term of this Agreement,
Representative agrees:
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(A) To maintain adequate contacts and
sales personnel in the
Territory
necessary to solicit, develop and promote the sale
of the Products
actively;
(B)
To provide liaison with Company's potential
customers and/or
customers' procurement
and engineering staffs with respect to developing
procurement specifications and
ascertaining performance requirements of any
sales of the Products.
(C)
To obtain and transmit to Company information
pertaining to
the
technical
needs and requirements of potential customers in
the Territory as is
applicable to the
Products;
(D) To provide assistance
to Company in discussions,
preparations
of
proposals, and negotiation held in
the Territory leading to selling the Products
therein;
(E) To pay all
costs of conducting Representative's business,
including commissions or other
compensation to employees or other
agents/representatives of
Representative;
(F) To provide
monthly active prospect inventories of sales
opportunities currently being explored
in the Territory;
(G) To assist
Company in obtaining any relevant financial or
other
information as requested by
Company regarding existing and potential
customers
with whom
Representative intends to sell the Products;
(H) To provide reasonable effort to
assure active participation and
attendance by Representative's
personnel in sales meetings and training
sessions
held by Company;
and
(I) To provide a designated
phone number for contacts or potential
customers to call with professional
answering service or voice mail.
ARTICLE 3: Company OBLIGATION
3.01 Company's Obligations. During the
term of this Agreement,
Company
agrees:
(A) To provide
Representative, at no cost, written materials
relating
to the Products
necessary to support product promotion and sales
efforts;
(B) To respond within
reasonable time to requests for price and
delivery of the Products covered by
this Agreement;
(C) To provide
Representative with current information as to
technical improvements in the Products
covered hereunder; and
(D) To make
timely payments of commission and fees earned as
specified herein.
(E)
To prepare proposals and other paperwork arising
therefrom
upon
reasonable
notice by Representative and upon Representative
providing
accurate
and
sufficient information to Company.
ARTICLE 4: COMPENSATION
4.01
Commission. The commission due and payable, as
described in
this
Article,
to Representative for a sale or lease or Placement
Program of the
Products is 5.0% for any
sale, whether to an individual or corporate
property.
The Sales Commission shall be
calculated on the retail sales price of the
Products as reflected in the executed
Company and the
(A) Payment of
Commissions. The Sales Commissions shall be
paid to
Representative as
follows:
(i) Lease. Representative
shall be paid the Sales Commission
pursuant to an executed
lease(s) by Company.
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(ii) Sales. Representative shall be
paid the Sales Commission
proportionately to the receipt of
payments tendered by the purchaser. For
example, if the purchaser agrees to pay
one-third down upon execution of a
purchase agreement, one-third down upon
installation, and one-third down
upon
acceptance of the Products by such
purchaser, Representative shall be paid
one-third of his/her/its Sales
Commission upon each such payment by such
purchaser.
(iii) Placement
Program. Upon the execution by a hotel or
other
such related property
of a
Sharing
Agreement
shall
be entitled
to a commission for each Refreshment Center placed
(the
Share
Commission
Share
Commission
shall be paid to Representative upon Company's
receipt of the
funding
pursuant to each Revenue Sharing
Agreement as written below. (The
Commission,
and
collectively as
the
against
some
of the Commissions according to the terms,
conditions and schedules
set
forth in Exhibit
by
reference.
(B) Sales Exclusions. The sales price
upon which the Sales
Commission is
based shall be exclusive of the
following:
(i) Transportation,
shipping,
and handling/drayage
including
packing, freight
forwarding charges and insurance;
(ii)
Taxes and
duties of any kind;
(iii)
Credits and allowances; if any;
(iv) Purchases directly by a customer
through a general
purchasing agency of
a corporate headquarters located outside the
Territory,
unless the same falls within
the workings of the
Commission.
(v) Portions of
a contract that is executed by a customer
directly with Company with no
involvement by Representative. Such portions
may
include changes to the
original quantity or scope of work as indicated in
the
initial contract.
4.02 Prior
Contacts. Representative understands that other
sales calls
may
have been
made to the same potential customer within the
Territory by other
representatives of
Company, including formal proposals for which a
prior claim
to the Sales Commission
and/or the Revenue Share Commission. In a case
such as
this, a split
commission may apply.
(A)
Territory (the
Representative
New
Territory. The Prior Representative
shall have one (1) week following the
reassignment of any New Territory to a
subsequent Representative (the
Representative
the Vice-
President (the
to the New
Representative in the New Territory with the
understanding that the
individual
and/or entities on the Grandfather List shall be
maintained,
contacted and protected by
the Prior Representative during the Grandfather
Period. After the Grandfather Period,
any of the individuals and/or entities on
the Grandfather List who are not either
under a
Application
(referred
to as
with Company shall be turned over
to the New Representative.
(B) Commission
Splitting. In any situation where there is a
question
of prior sales
calls in the Territory, the splitting of any and
all commissions
described herein, or
relative to any other commission dispute, the
Vice-President shall make a
determination of disposition of commissions,
including split commissions with the
intention of dividing the same fairly
between and/or among all parties
fairly. The Vice-President's decision shall be
final, except that Representative, or
others involved in the sale, shall have a
right to
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appeal
the decision in writing stating why the
determination is considered
unfair.
Company's Chief Executive Officer and two other
company officers
shall
review the decision based on such
appeal and the decision on the appeal shall
be
final on all parties.
4.03 Commission Modification. The Sales
Commission and the
Revenue Share
Commission may be subject to
modification, upon thirty (30) days written
notice
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