This Distribution Agreement (the
“Agreement”) contains the terms and conditions that apply to your participation as a
distributor or wholesaler for Very Intelligent Ecommerce Inc. (collectively, “we”
“us” or “Company”). In this Agreement you are sometimes referred to as
“you”, “your” or “Distributor.”
THIS IS A LEGALLY
BINDING AGREEMENT. COMPANY’S ACCEPTANCE OF YOUR ORDERS IS EXPRESSLY MADE CONDITIONAL ON YOUR
ASSENT TO THIS AGREEMENT.BY PURCHASING AND/OR DISTRIBUTING PRODUCTS, YOU ARE CONFIRMING THAT YOU
HAVE READ THIS AGREEMENT AND THAT YOU AGREE TO BE BOUND BY THE TERMS AND CONDITIONS CONTAINED IN
THIS AGREEMENT. IF YOU DO NOT AGREE WITH ANY OF THE TERMS OR CONDITIONS SET FORTH HEREIN, DO NOT
PURCHASE PRODUCTS AND/OR DISTRIBUTE PRODUCTS.
1. Definitions
1.1. “Company
Content” means any and all Company Trademarks, logos, banners, buttons, digital images,
graphics, text other content and material which we may, in our sole discretion, make available to
You in connection with this Agreement.
1.2. “Confidential Information” means
non-public information that the party disclosing the information designates at the time of
disclosure as being confidential, or, if disclosed orally or visually, is identified as such prior
to disclosure and summarized, in writing, by the disclosing party to the receiving party within
thirty (30) days, or which, under the circumstances surrounding the disclosure, the receiving party
knows or has reason to know should be treated as confidential without the need to be marked as such.
Without limiting the foregoing, Confidential Information shall include any information regarding a
party’s financial condition, business opportunities, plans for development of future products,
unreleased versions of products, know-how, technology, and customer information. Notwithstanding the
foregoing, nothing received by a receiving party shall be construed as Confidential Information
which: (i) is generally available to the public without breach of this Agreement; (ii) is lawfully
obtained from a third party without a duty of confidentiality; (iii) is known to the receiving party
prior to such disclosure; or (iv) is, at any time, developed by the receiving party independent of
any such disclosure(s) from the disclosing party and the receiving party can reasonably show such
independence.
1.3. “Customer” means (i) an end user of the Products who has
purchased such Products from Distributor (who is a wholesaler of Products) or (ii) any corporate
entity or other form of business organization or association to whom Distributor (who is a
distributor of the Products) distributes (directly or indirectly) the Products.
1.4.
“Intellectual Property” means all intellectual property rights throughout the world,
including copyrights, patents, mask works, trademarks, trade secrets, authors’ rights, rights
of attribution, and other proprietary rights and all applications and rights to apply for
registration or protection of such rights.
1.5. “Minimum Order” means twelve
(12) units of Product.
1.6. “Company Trademarks” means the trademarks, service
marks, and trade names that Company may adopt from time to time.
1.7. “Products”
means the Company products that it offers to sell to You.
2. Appointment
2.1.
Appointment. Subject to the terms and conditions of this Agreement, Company hereby appoints
Distributor as a non-exclusive distributor of the Products. Company expressly reserves the right to
market and distribute all Products itself or through other resellers, wholesalers, distributors,
licensees or agents. Company reserves the right to make, discontinue, abandon or make modifications
to the Products, at its sole discretion, but shall not be obligated to implement such modifications
in Products that have previously been delivered to Distributor. Distributor shall have no other
rights with respect to the Products or relationship with Company except as specifically set forth in
this Agreement.
2.2. License. Subject to the terms and conditions of this Agreement,
Company grants to Distributor a non-exclusive, non-transferable license to market, offer for sale,
sell, and distribute the Products to Customers during the term of this Agreement.
2.3.
Territorial Responsibility. Distributor shall use commercially reasonable efforts to vigorously
promote the Products to realize the maximum sales potential for the Products. Distributor will not
accept orders from outside the country of Your location without Company’s prior written
consent, which may be withheld for any reason or no reason at all. For clarity purposes only, if
Your physical address is located in the United States, You may not accept orders from outside the
United States. If You are a wholesale customer, you may not distribute Products to other companies
for resale.
2.4. Costs and Expenses. Distributor shall be solely responsible for all of its
costs and expenses related to advertising, marketing, promoting and selling the Products.
2.5.
Authority and Representations. Distributor shall have no power or authority, expressed or implied,
to make any commitment or incur any obligations on behalf of Company. Distributor shall not make any
warranties, representations, promises, or commitments concerning the Products.
3.
Suitability of Distributor Websites
3.1. Your websites are not suitable and you may not be
a Distributor if the websites operated by You violate any of the following website suitability
restrictions. Further, You represent, warrant, covenant and agree that none of Your websites or any
content or technology contained thereon or used in connection with Your marketing, offering for
sale, selling, and distributing will, at anytime during the period that You are a Distributor,
violate any of the following website suitability restrictions. In the event that Company believes
that You have violated any of the following website suitability restrictions Company may, in
addition to all other rights and remedies that Company may have, terminate this Agreement without
notice. Your websites may not and may not be one-click away from any content or technology that
would:
(a) infringe on our or any other person’s or entity’s intellectual
property, publicity, privacy or other rights, including, without limitation, by purchasing, selling
or otherwise transacting in counterfeit goods,
(b) fail to state a clear online privacy policy
to your visitors,
(c) require a username or password to access your websites, without our prior
written consent (including via email),
(d) violate any law, rule, regulation or applicable
industry self-regulatory principles or best practices,
(e) contain any content that is
threatening, harassing, defamatory, obscene, harmful to minors, defamatory, or unlawful,
(f)
contain any content that is or depicts non-consenting or coercive sex (including, without
limitation, depictions of sex with individuals who are sleeping or under the influence of drugs or
alcohol), incest, bestiality, bondage (where consent of the participants is not clearly depicted),
defecation, or sex acts associated with pain or violence,
(g) contain any content that or
depicts child pornography, and/or any depiction of underage participants (including participants who
are dressed and depicted as underage, even though the participants are clearly adults),
(h)
contain any viruses, Trojan horses, worms, time bombs, cancelbots, or other computer programming
routines that are intended to damage, detrimentally interfere with, surreptitiously intercept, or
expropriate any system, data, or personal information,
(i) contain material that is false,
inaccurate, deceptive, unfair, fraudulent or misleading or that promotes pyramid or similar schemes;
(j) promote violence or any illegal or immoral activity,
(k) promote discrimination based
upon gender, race, religion, nationality, disability, sexual orientation or age,
(l) use or
promote the use of bulk email or spam, news group, IRC, forum, social media, including, but not
limited to, Myspace, Facebook, Twitter and blog postings, all forms of cookie stuffing (ie iframes,
obfuscation via a redirect, misleading JavaScript comments, CLICK loading in IMG tags, etc.), or
spyware advertising techniques,
(m) contain software or use technology that attempts to
intercept, divert or redirect Internet traffic to or from any other website,
(n) use any
software that gathers information through the Customer's Internet connection without his, her or its
knowledge,
(o) install spyware on another person’s computer, or cause spyware to be
installed on another person’s computer, or utilize any “opt-out downloads”. An
“opt-out download” is any software, program, script, tool or element that would
automatically download to a user’s computer or that would become operative when the user
accesses the Internet unless the user takes affirmative action to prevent the download, and/or
(p)
use a context based triggering mechanism to display an advertisement that partially or wholly covers
or obscures paid advertising or other content on an Internet website in a way that interferes with a
user’s ability to view the Internet website, or use browser-embedded contextual targeting
applications or other applications which serve advertisements (pop-up ads and pop-unders, in-browser
ads and highlighting of website content and redirecting to websites with similar content, regardless
of whether any such advertisements are served directly by you or is provided or purchased from a
third-party) on Company’s or Company’s competitors websites or on any other website
other than your websites.
3.2. You may not (a) engineer Your websites in a manner designed
to direct or pull Internet traffic away from Company’s website, (b) attempt to modify or alter
Company’s website in any way; (c) make any representations, either express or implied, or
create an appearance that a visitor to Your website is visiting Company’s website, e.g.,
“framing” the Company’s website, without our prior written approval; (d) “scrape”
or “spider” any Company website or any other website for Merchant Intellectual Property;
or (e) misrepresent any Product.
3.3. Your site must be live and online at the time of
review. Company has the right in its sole and absolute discretion to monitor Your websites at any
time and from time to time to determine if You are in compliance with the terms of this Agreement,
and You agree to provide Company with unrestricted access to Your websites for such purpose.
Further, You acknowledge that Company has the right to disclose your identity and contact
information to law enforcement authorities or aggrieved parties in the event that You have breached
this Agreement. Company reserves the right to reject sites on Geocities/Yahoo, Angelfire,
AOL/Compuserve, MSN, Tripod, or any other free web host, or any web host on which adult content is
not in compliance with the host’s terms and conditions.
3.4. The registration or
“whois” information pertaining to any of Your sites shall contain current and accurate
contact information so that a third-party could have a reasonable expectation of reaching You during
normal business hours by telephone, mail, facsimile and/or email.
4. Supply and
Payment
4.1. Price Lists. Distributor’s prices shall be Company’s standard list
pricing less a discount set forth in the Distributor discount schedule. Such price lists and
discount schedules may be revised from time to time in the Company’s sole discretion, and the
price list and discount schedule in effect at the time of submission of Distributor’s purchase
order shall apply. Prices to not include taxes of any nature.
4.2. Purchase Orders. To
fulfill Customer requests, Distributor shall submit all purchase orders for the Products to Company
in writing, or electronically via e-mail. No purchase order shall be binding on Company until
accepted by Company in writing. Any terms in a purchase order that contradict or modify the terms of
this Agreement shall be null and void.
4.3. Shipment. After Company has received a signed
purchase order, Company will ship the Products directly to Distributor, at Distributor’s
expense including, without limitation, all freight, insurance and other shipping expenses. Shipment
will be FOB Company’s shipping point. Distributor shall be solely responsible for delivering
the Products to Customers. Company may make partial shipments of Distributor’s orders to be
separately invoiced and paid for when due. Company reserves the right to allocate existing inventory
among its customers with orders for such Product in a manner determined by Company in its sole
discretion and to backorder such orders in whole or in part if necessary. Company reserves the right
to cancel or suspend any orders placed by Distributor and accepted by Company, or refuse or delay
shipment thereof, if Distributor fails to (1) make payment as provided herein or in any invoice; (2)
to meet credit or financial requirements established by Company; or (3) otherwise to comply with the
terms and conditions of this Agreement.
4.4. Payments to Company. For all Products sold
hereunder, Distributor shall pay to Company within thirty (30) days of receipt of invoice the prices
set forth in Company’s then-current distributor price list, such credit subject to Distributor
qualifying and maintaining acceptable credit conditions as established by Company from time to time.
Credit terms are extended in the sole discretion of Company. Notwithstanding the foregoing or
anything to the contrary herein, upon Company’s sole judgment, Company my require Distributor
to pay Company in advance of the shipment of any Products. No payment shall be deemed to have been
made until Company has received payment in cash or cleared funds. The amount invoiced will include
the price for the Products plus all applicable taxes, fees, transportation and other charges.
Notwithstanding anything to the contrary herein, Company shall not be obligated to ship any Products
until it has received payment for such Products in accordance with the terms and conditions of this
Agreement. All payments shall be made in U.S. Dollars, unless otherwise agreed by the parties in
writing, by bank-to-bank wire transfer, all charges prepaid, or by check drawn on a United States
bank.
4.5. Past Due Payments. If Distributor becomes delinquent in payment, Distributor
shall pay to Company a late fee of one and a half percent (1.5%) per month or the highest rate
allowable by law, whichever is lower, on all past due amounts, such late fee to be compounded
monthly and rounded to the next highest whole month, collection agency fees in the amount of thirty
percent (30%), and/or reasonable attorneys’ fees, and all other costs and expenses incurred by
Company in the enforcement of this Agreement. In addition, if any payment is past due, Company may,
in its discretion, refuse to ship Products to Distributor pending payment of the past due amount.
4.6. Minimum Order. Distributor shall purchase from Company enough Products such that the
total Products purchased for each such order is equal to or greater than the Minimum Order.
4.7. Taxes. Distributor will be responsible for all international, federal, state and
local taxes of any government, including but not limited to sales, use, value-added, withholding,
and other taxes (exclusive of taxes on Company’s net income), duties, levies and assessments
arising on or measured by amounts payable to Company or arising on or measured by amounts sold by
Distributor. If any withholding tax is imposed by any governmental authority with respect to any
sums due to Company hereunder, then such sum will be paid to Company net of such withholding, it
being understood that such withholding tax shall be for the account of Company, and Distributor
shall pay such withholding tax to the relevant authorities and provide Company with the original
receipts or other documentation evidencing that the full amount of any such tax withheld has been
paid to the relevant authority by Distributor.
4.8. No Set-Off. Distributor will not
set-off or offset against Company’s invoices amounts that Distributor claims are due to it.
Distributor will bring any claims or causes of action it may have in a separate action and waives
any rights it may have to offset, set-off, or withhold payment for Products delivered by
Company.
4.9. Product Changes. Company may discontinue the manufacturer of any Product and
make changes and improvements to the Products at any time without incurring any obligation to
Distributor or any customers of Distributor. Products so changed or improved shall be accepted by
Distributor in fulfillment of existing orders.
5. Marketing and Distribution
5.1.
Prices. Distributor shall be free to determine, in its own discretion, the price at which it offers
and sells the Products to Customers.
5.2. Shipping Charges. Distributor shall be
responsible for all applicable shipping charges, tariffs, and custom duties on Products sold by
Distributor.
5.3. Customer Payments. Distributor shall have the sole right and
responsibility of credit approval or credit refusal for Customers in all cases. Distributor shall
render all Customer invoices directly to the Customers, and Customer payments shall be made directly
to Distributor. Full responsibility for all Customer collections rests with Distributor.
5.4.
Customer Complaints. Distributor shall investigate Customer complaints and provide Company with
reasonable assistance in responding to any complaints or disputes with respect to sales or servicing
of the Products.
5.5. Unacceptable Marketing Practices. Distributor shall not engage in any
deceptive, misleading, or unethical practices, including without limitation any practice that could
be detrimental to Company.
5.6. Reselling Policies. Distributor agrees that Products will
not be sold into the following channels or companies: off price retailers or internet retailers,
including, without limitation, eBay or Amazon (other than Your own website that has been
pre-approved by Company in writing).
5.7. Export Control. Distributor will comply with all
laws, administrative regulations, and executive orders of any applicable jurisdiction relating to
the control of imports and exports of commodities and personal data. Distributor shall indemnify and
hold Company harmless against all claims, cost, damage, expense, or liability arising out of or in
connection with a breach of this section.
5.8. Reports. As frequently as Company reasonably
requests, Distributor will provide Company with a written report showing, for the time periods
designated by Company: (i) Distributor’s shipments of Company Products by dollar volume,
customer and location; (ii) forecasts of Distributor’s anticipated orders by product, (iii)
Distributor’s current inventory levels of Products; and (iv) any other information Company
reasonably requests, including such information that may be necessary to confirm Distributor’s
compliance with this Agreement.
6. Defective Products and Restocking Fees
6.1.
Notice of Defects. Distributor must make any claims of defects, including, without limitation, to
those related to shortages and quality, within seven (7) days after receipt of the Products. Company
is not responsible for shortages when shipments are directed to a third party. Distributor is
responsible for inspection upon receipt to ensure all Products have been delivered and/or are not
defective.
6.2. Restocking Fees; Returns and Damages. A written authorization must be
obtained by Distributor for any returned Products. All returns must be made within seven (7) days of
receipt of Products. Company will charge a fifteen percent (15%) restocking fee with a .00 minimum
charge for any returned Product.
7. Term and Termination
7.1. This Agreement shall
automatically terminate on the date on which we no longer maintain you are distributor/wholesaler of
Products. Company may also terminate this Agreement immediately, without notice, if we determine, in
our sole discretion, that You have breached this Agreement.
7.2. Upon termination of this
Agreement, You will immediately cease use of Company’s Intellectual Property.
7.3. No
Liability for Termination. Company shall have no liability to Distributor on account of termination
of this Agreement and Distributor hereby waives any rights Distributor may have under applicable law
to damages or other sums payable on account of termination of this Agreement.
7.4.
Remaining Inventory. Within thirty (30) days after termination of this Agreement, Company may, at
its option, re-purchase some or all of Distributor’s remaining inventory of Products at a
price to be agreed upon by the parties, but in no event greater than Distributor’s original
purchase price from Company. To the extent that Company chooses not to re-purchase Products, and
provided that the Agreement was not terminated for Distributor’s breach, Distributor shall be
entitled to distribute such remaining Products in accordance with this Agreement during the three
(3) month period following termination. After that time, all remaining Products shall be returned to
Company or destroyed, at Distributor’s expense.
7.5. Survival of Certain Terms.
Notwithstanding any termination of this Agreement, the following provisions shall survive: Sections
1, 4.4-4.8, 7.2-7.5, 8, 9.1(d), 9.2, 10.3, and 11-14.15 (together with all other provisions that may
reasonably be interpreted as surviving termination or expiration of this Agreement) will survive any
termination or expiration of this Agreement. All other rights, obligations, and licenses set forth
herein shall cease upon expiration or termination of this Agreement for any reason.
8.
Limitation of Liability
8.1. Disclaimer of Consequential Damages. WE WILL NOT HAVE ANY
LIABILITY (WHETHER IN CONTRACT, WARRANTY, TORT (INCLUDING, BUT NOT LIMITED TO, NEGLIGENCE), PRODUCT
LIABILITY OR OTHER THEORY) FOR ANY INDIRECT, INCIDENTAL, SPECIAL, PUNITIVE, OR CONSEQUENTIAL
DAMAGES, EVEN IF WE WERE ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, OR FOR ANY LOSS OF REVENUE,
DATA OR PROFITS ARISING UNDER OR WITH RESPECT TO THIS AGREEMENT.
8.2. Maximum Liability.
IN NO EVENT SHALL COMPANY’S AGGREGATE LIABILITY ARISING OUT OF OR RELATED TO THIS AGREEMENT,
THE TERMINATION THEREOF, AND/OR SALE OF THE PRODUCTS HEREUNDER, EXCEED THE AMOUNTS PAID BY
DISTRIBUTOR TO COMPANY DURING THE TWELVE (12) MONTHS PRECEDING THE CLAIM. THIS LIMITATION OF
LIABILITY IS CUMULATIVE AND NOT PER INCIDENT. ALL CLAIMS MADE HEREUNDER BY YOU AGAINST US SHALL BE
MADE WITHIN 120 DAYS OF THE ACT OR OMISSION THAT FORMS THE BASIS OF SUCH CLAIMS.
8.3.
Reasonable Allocation of Risk. The parties understand and agree that the limitations of liability
set forth in this Section 8 are a reasonable allocation of risk between the parties, and, absent
such allocation, Company would not be able to charge the prices it is charging for the Products.
Furthermore, the limitations of liability set forth in this Agreement shall apply notwithstanding
any failure of essential purpose of any limited remedy provided herein.
9. Property
Ownership Rights; Use of Company Content
9.1. Right to Use Company Content. Subject to the
terms and conditions herein, Company hereby grants to You, during the term hereof, a limited,
non-exclusive, non-transferable, revocable, non-sublicenseable, non-assignable right to use and
display the Company Content that we may make available to you from time to time solely as provided
to you through the distributor network (currently located at www.autoblowdistribution.com/media) and
solely for the purpose of generating sales of Products from your website that we have approved in
writing and solely in connection with the terms of this Agreement. Any attempt to sublicense, assign
or transfer this right is void. We may terminate your rights to use the Company Content for any
reason at any time in our sole and absolute discretion.
(a) Obtaining and Using Company Content.
You agree that you will not, except as specifically provided for in this Agreement (i) copy or
obtain any images or other content relating to the Company from the Company’s website or
elsewhere, except through the distributor network (currently located at
www.autoblowdistribution.com/media), including photography of Company Content used in accordance
with Section 9.1 hereof, (ii) copy or display any Company Content, (iii) modify, adapt, translate or
create derivative works based on the Company Content, (iv) remove, erase, or tamper with any
copyright or other proprietary notices in any copy of any of the Company Content, (v) sell, market,
license, sublicense, distribute, disclose or otherwise grant to any person or entity any right or
interest in the Company Content, (vi) take any action which may cause deception, confusion or
otherwise dilutes the quality of the Company Content or the goodwill associated therewith, or (vii)
use the Company Content in any manner which disparages or portrays us in a false, competitively
adverse or poor light.
(b) No Keyword Purchasing. You agree that you will not purchase or bid
for the placement of our name or trademarks or any variation or misspelling thereof within any third
party search engine or portal, including but not limited to AOL.com, Yahoo.com, MSN.com and
Google.com., ask.com and miva.com.
(c) Search Engine and Advertising Restrictions. You also
agree to the following additional search engine advertising rules: (i) all advertisements by you
must be directed to your site or a page within your site, (ii) none of your advertisements may link
directly to the Company’s website(s) or any page within the Company’s website(s), (iii)
you will not show the Company’s website URL as the URL in your ads, (iv) you will not use the
words “official site” or words to similar effect in connection with any use of Company
Trademarks, or otherwise suggest or imply that your site is an official Company site or partner, and
(v) you will stop bidding on any keyword term at our request.
(d) Company Trademark and Look and
Feel Restrictions. Additionally, you agree that (i) you will not include any name, trademark, trade
name, service name, logo or similar business identifier, or any variation or misspelling thereof,
which is owned or controlled by us in any domain name, email address, or similar identifier used by
you, (ii) you will immediately substitute or remove any Company Content from your websites at our
request, (iii) your websites and advertisements will not in any way copy or resemble the look, feel
or content of the Company’s website(s) or create any impression that your websites are part of
the Company’s website(s), (v) you will not purchase or contract with any other person or
entity to exploit any name, trademark, trade name, service name, logo or similar business
identifier, or any variation or misspelling thereof, which is owned or controlled by us for any
purpose, (vi) you will not use any Company Content in a manner which links or otherwise directs
potential customers to any website other than your website or Company’s website(s), and (vii)
you will not attempt to intercept or redirect potential customers from or on the Company’s
website(s).
(e) Communications with Consumers. You may not, without our prior written consent,
(i) generate or send any email messages, text or mobile messages, or other electronic messages (“Electronic
Messages”) using or containing our name or logo, or any variation thereof, or any of our
trademarks or products, (ii) send any Electronic Messages that in any way suggests or implies or
misleads or is likely to mislead (including without limitation, via the return address, subject
heading, header information or message contents) a recipient into believing that we or any related
entity was the sender or sponsor of such email or procured or induced you to send such email, (iii)
forward, redistribute, or otherwise repurpose any Electronic Messages that we send our Customers,
and (iv) generate or send any unsolicited email (spam) under this Agreement or any email in
violation of the Personal Information Protection and Electronic Documents Act (PIPEDA) or Fighting
Internet and Wireless Spam Act (FISA) (including any amendments or successor laws) or any other
applicable federal or provincial laws or regulations.
9.2. Proprietary Rights. Distributor
agrees that Company owns all right, title, and interest in and to the Company’s Intellectual
Property relating to the design, manufacture, operation or service of the Products and the Company
Content. Distributor shall have no rights with respect to the Products and Intellectual Property
related thereto and/or Company Content except as expressly set forth herein. 10. Company
Trademarks
10.1. Right to Use. During the term of this Agreement, Distributor will have the
right to indicate to the public that it is an authorized distributor of the Products and to use the
Company Trademarks solely for the purpose of promotion and distribution of the Products. Prior to
the use or distribution of any promotional, advertising or other materials created by Distributor
containing any Company Trademarks, Distributor shall obtain written approval from Company with
respect to the use of Company Trademarks. If Distributor, in the course of performing its services
hereunder, acquires any goodwill in any of the Company’s Trademarks, all such goodwill shall
inure to the benefit of Company. Company may use Distributor’s name to identify Distributor as
a Company distributor for use in advertising or promotional purposes.
10.2. No Other
Rights. Distributor will not alter or remove any of Company Trademarks applied to the Products by
Company. Except for the limited rights set forth in Section 10.1, nothing herein grants or is deemed
to grant to Distributor any right, title or interest in Company Trademarks. 10.3. Restrictions. At
no time during or after the term of this Agreement will Distributor challenge or assist others to
challenge Company’s Trademarks or the registration thereof. Distributor shall not adopt, use
or attempt to register, whether as a corporate name, trademark, service mark or other indication of
origin, any of the Company Trademarks or any mark that is confusingly similar to or will dilute the
distinctive nature of the Company Trademarks. Upon termination of this Agreement, Distributor shall
immediately cease to use all Company Trademarks. 11. Violation of Terms and Distributor
Indemnification
11.1. Violation of any of the terms, conditions or prohibitions contained
in this Agreement may result in, among other things, the immediate termination of this Agreement and
the commencement of an action by us against you seeking, without limitation, injunctive relief, and
the recovery of actual, statutory and punitive damages.
11.2. You, at your own cost and
expense, will indemnify, defend and hold harmless, us and our parent, subsidiaries and company
affiliates, and each of their respective directors, officers, employees, agents, successors and
assigns against any claim, suit, action, judgment, liability, loss, cost, expenses and other damages
(even if such claims are groundless, fraudulent or false), including reasonable attorney’s
fees, based upon or in connection with (i) any breach or alleged breach of your representations,
warranties, covenants agreements, or obligations hereunder, (ii) your business or related websites,
or any content, technology or other materials displayed or contained thereon, including but not
limited to claims of misappropriation or infringement, (iii) your failure or alleged failure to
comply with any applicable law, rule or regulation, (vi) claims for unsolicited email, spamming or
violation of the Personal Information Protection and Electronic Documents Act (PIPEDA) or Fighting
Internet and Wireless Spam Act (FISA), (vii) your misuse, unauthorized modification or unauthorized
use of the services or materials provided by us, or (viii) any actual or alleged wrongful or
negligent act or omission by you.
12. Modification of Agreement We reserve the right to
modify this Agreement, at any time in our sole discretion, by posting a change of notice or a new
agreement on the distributor network (currently located at www.autoblowdistribution.com) and, if
applicable, on the Company’s website(s). IF ANY MODIFICATION IS UNACCEPTABLE TO YOU, YOU AGREE
THAT YOUR SOLE RECOURSE IS TO TERMINATE THIS AGREEMENT. YOUR CONTINUED SALE AND/OR PURCHASING OF
PRODUCTS FOLLOWING ANY MODIFICATION OF THIS AGREEMENT SHALL CONSTITUTE CONCLUSIVE AND BINDING
ACCEPTANCE TO ANY MODIFICATION OR NEW AGREEMENT.
13. Warranty Disclaimer WE MAKE NO
WARRANTIES, REPRESENTATIONS, OR GUARANTEES, WITH REGARD TO THE PRODUCTS SOLD HEREUNDER, THE
OPERATION AND MAINTENANCE OF THE COMPANY WEBSITE(S), WHETHER EXPRESS OR IMPLIED, ARISING BY LAW OR
OTHERWISE, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE, OR NON-INFRINGEMENT, TITLE, ACCURACY OF DATA, NON-INTERFERENCE OR ANY IMPLIED
WARRANTY ARISING FROM COURSE OF PERFORMANCE, COURSE OF DEALING, OR USAGE OF TRADE.
14.
GENERAL PROVISIONS
14.1. Independent Contractors. The relationship of Company and
Distributor established by this Agreement is that of independent contractors, and neither party is
an employee, agent, partner or joint venturer of the other. Under no circumstances shall Distributor
have authority to bind Company in any way. All financial obligations associated with Distributor’s
business are the sole responsibility of Distributor. All sales and other agreements between
Distributor and its Customers are Distributor’s exclusive responsibility and will have no
effect on Distributor’s obligations under this Agreement.
14.2. Compliance with Laws.
Distributor shall comply with all applicable national and international laws, rules, treaties, and
regulations in its performance of this Agreement.
14.3. Foreign Corrupt Practice Act. In
conformity with the United States Foreign Corrupt Practice Act, Distributor and its employees and
agents shall not directly or indirectly make any offer, payment, or promise to pay; authorize
payment; nor offer a gift, promise to give, or authorize the giving of anything for value for the
purpose of influencing any act or decision of an official of any government or the United States
Government (including a decision not to act) or inducing such an official to use his or her
influence to affect any such governmental act or decision in order to assist Company or Distributor
in obtaining, restraining, or directing any such business.
14.4. Governing Law and
Jurisdiction. This Agreement will be governed by and construed in accordance with the substantive
laws of State of Wyoming, excluding its conflict of laws principles. Any lawsuit relating to this
Agreement must be brought in the federal or state courts located in Cheyenne, Wyoming. Each party
hereto expressly consents to the personal jurisdiction and venue of such courts.
14.5.
Notices. Any notice required or permitted by this Agreement will be in writing and will be sent by
email, registered or certified mail, return receipt requested, or by reputable overnight courier
addressed to the other party at the address initially provided by such party or at such other
address for which such party gives notice hereunder. Such notice will be deemed to have been given
when delivered or, if delivery is not accomplished by some fault of the addressee, when
tendered.
14.6. Entire Agreement. This Agreement and the Revenue Share schedule represents
the complete agreement and understanding between us and you and supersedes any other oral or written
communications or understandings between us and you regarding the subject matter hereof. No
amendment or modification to this Agreement will be binding upon us unless agreed to by an
authorized representative of us. This Agreement supercedes any conflicting terms and conditions on
any work orders, invoices, checks, order acknowledgements, forms, purchase orders, or other similar
commercial documents relating hereto and which may be issued by a party after the date this
Agreement was first posted.
14.7. Severability. If any provision of this Agreement is held
to be invalid by a court of competent jurisdiction, then the remaining provisions will nevertheless
remain in full force and effect. The parties agree to renegotiate in good faith any term held
invalid and to be bound by the mutually agreed substitute provision.
14.8. No Waiver. Our
failure to enforce strict performance of any provision of this Agreement will not constitute a
waiver of its right to subsequently enforce such provision or any other provision of this Agreement.
14.9.
Headings. The titles and headings of the various sections and paragraphs in this Agreement are
intended solely for convenience of reference and are not intended for any other purpose whatsoever,
or to explain, modify, or place any construction upon or on any of the provisions of this Agreement.
14.10.
Independent Investigation. YOU ACKNOWLEDGE THAT YOU HAVE READ THIS AGREEMENT AND AGREE TO ALL ITS
TERMS AND CONDITIONS. YOU UNDERSTAND THAT WE MAY AT ANY TIME (DIRECTLY OR INDIRECTLY) SOLICIT
CUSTOMERS ON TERMS THAT MAY DIFFER FROM THOSE CONTAINED IN THIS AGREEMENT OR OPERATE WEB SITES THAT
ARE SIMILAR TO OR COMPETE WITH YOUR WEB SITE. YOU HAVE INDEPENDENTLY EVALUATED THE DESIRABILITY OF
BECOMING A WHOLESALER OR DISTRIBUTOR OF OUR PRODUCTS AND ARE NOT RELYING ON ANY REPRESENTATION,
GUARANTEE OR STATEMENT OTHER THAN AS SET FORTH IN THIS AGREEMENT.
14.11. Language. This
Agreement is in the English language only, and the English language version shall control in all
respects. In the event that this Agreement is translated into another language, such translation
shall not be binding upon the parties.
14.12. Press Release; Publicity. You agree that you
will not issue any press release or make any other similar public announcement that in any way makes
any reference to us without our prior written consent, which consent may be withheld in our sole
discretion.
14.13. Force Majeure. Our performance under this Agreement shall be excused to
the extent that such performance is hindered, delayed or made commercially impractical by causes
beyond our reasonable control.
14.14. Assignment and Binding Effect. Distributor may not
transfer or assign its rights or obligations under this Agreement, by operation of law or otherwise,
without our prior written consent, and any such attempted assignment shall be void. Subject to such
restriction, this Agreement will be binding on, inure to the benefit of, and enforceable against the
parties and their respective successors and assigns.
14.15. Injunctive Relief. The parties
agree that any breach of your obligations regarding Company’s Trademarks, Company Content
and/or Intellectual Property would result in irreparable injury for which there is no adequate
remedy at law. Therefore, in the event of any breach or threatened breach of your obligations
regarding Company’s Trademarks, Company Content and/or Intellectual Property, we will be
entitled to seek equitable relief in addition to its other available legal remedies in a court of
competent jurisdiction.