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Exhibit 10.1
AGENCY AGREEMENT
THIS AGREEMENT (the “Agreement”) is made and entered
into as of the 6th day of January, 2005, by and between R
X FULFILLMENT SERVICES, INC., having its principal
office at 9100 Southwest Freeway, Suite 130A, Houston, Texas 77074
(hereinafter referred to as R X FS) and VipMedR
X having its principal office and place of business at
8807 Colesville Rd, Suite 2, Silver Springs, MD 20910 (hereinafter
referred to as "AGENCY").
WHEREAS, R X FS desires to engage the services
of AGENCY as an independent sales representative on the terms and
conditions set forth herein, and AGENCY desires to represent and
sell products and services of R X FS on such terms and
conditions as set forth below.
NOW THEREFORE, in consideration of the promises and
mutual benefits and obligations of the parties, which are hereafter
set forth, and the sufficiency of which is hereby expressly
acknowledged, it is hereby agreed as follows:
1.
Appointment of Agency. R X FS
hereby appoints AGENCY as its representative, and AGENCY hereby
agrees to act for R X FS as its exclusive sales agency
for the products and services, described in Exhibit A
(“Products and Services”), throughout the Territory, or
otherwise defined area (the “Territory”) listed within
this Agreement.
1.1.
Territory . The term “Territory”
as used in the Agreement is defined to mean the unique customer set
serviced by VMRx and its affiliated entities as identified in
Exhibit B. AGENCY may market in other territories from time
to time, which may be included within this agreement, with the
written permission of R X FS on a case-by-case
basis.
1.2.
1.3.
Exclusivity . During the term of this
Agreement, R X FS will not appoint any other person,
firm, or corporations as a distributor, AGENCY, or sales
representative for the Products and Services within the Territory
except providing for the fact that R X FS has a first
right of refusal to market its products and service directly to end
users.
2.
Responsibilities of AGENCY . Within the
territory described in Paragraph 1, AGENCY shall:
2.1.
Best Efforts to Market . AGENCY agrees use
its best efforts in marketing R X FS Products and
Services as described in Exhibit A which is incorporated herein as
though set out verbatim, in the Territory. In order to
develop the full sales potential of the Territory, AGENCY agrees
that it will perform at its expense the duties describe in
subparagraphs a. through b.
a.
Promotion and Marketing . AGENCY shall
engage in sales promotion activities in the Territory, which
promotion activities shall include but not be limited to,
prospecting, sales presentations, demonstrations, industry and
association convention attendance and distributing printed material
supplied by R X FS to current and potential customers.
The Products and Services will at all times be
designated by their current names (as designated by R X
FS) and identified as the Products and Services of R X
FS being offered for sale through AGENCY as an Independent Sales
AGENCY of R X FS.
b.
Coordination . AGENCY will coordinate its
sales efforts with R X FS. To this end AGENCY
will:
(1)
Effectively and promptly follow up leads and referrals
supplied by R X FS and keep R X FS informed
of the results;
(2)
Inform R X FS of all inquires and bid requests
relating to the potential sale of Products and Services;
(3)
Furnish R X FS with copies of all printed
materials used by AGENCY which are not supplied by R X
FS and in which R X FS or the Products and Services are
mentioned, which must be approved in writing in advance by R
X FS; and
(4)
Convey to R X FS any information, which may be
of value to R X FS that may come to AGENCY’s
attention concerning market conditions, competition, pricing,
customers, and prospects.
2.2.
Pricing Orders . AGENCY will adhere to R
X FS then current published price lists or special
quotations authorized in writing by R X FS in soliciting
orders for the Products and Services; and, unless otherwise
authorized by R X FS, all prices are subject to change
at any time prior to acceptance of an order or contract by R
X FS.
2.3.
General Conduct . AGENCY shall adhere to,
cooperate, and comply with R X FS sales policies and
programs. AGENCY will at all times conduct its business in a manner
that will reflect favorably on R X FS and its Products
and Services and will not engage in any deceptive, misleading,
illegal or unethical business practice.
a.
Inspection . R X FS shall have
the right upon reasonable notice and during normal business hours
to visit AGENCY’s place(s) of business for the purpose of
verifying satisfaction by AGENCY of its duties under this
Agreement.
2.4.
Competitive Activities . AGENCY will not act
as an AGENCY, employee, or in any other manner for any Product and
Services in the Territory, which compete, directly or indirectly
with the Products and Services specifically listed in this
Agreement. AGENCY will disclose to R X FS the
identities of all Agreements for Products and Services, which it
currently represents that may compete, directly or indirectly with
R X FS products and services specifically listed in this
Agreement. AGENCY will notify R X FS of
contemplated additions to such representations prior to making new
commitments.
a.
Additional Product or Service Lines . If
also handling additional product or service lines, to give equal
importance, emphasis and time to promoting R X FS
products or services.
2.5.
Sales Quotas and Purchase Objectives .
AGENCY shall be expected to maintain a sales volume deemed
reasonable for its Territory, to be determined from a monthly sales
review conducted by R X FS and AGENCY through the first
year of this Agreement. Within 30 days of the signing of this
Agreement, AGENCY and R X FS will conduct a Planning
Session to establish definitive Purchase Objectives for this
Agreement. Thereafter these Purchase Objectives will be
reviewed and revised as necessary annually.
2.6.
AGENCY Reports . AGENCY agrees to make
periodic reports to R X FS, as reasonably requested by R
X FS with respect to sales and potential sales,
including available information relating to conditions in the
Territory and the financial status of customers and potential
customers. AGENCY also shall report to R X FS such
information as is necessary to enable R X FS to supply
Products and Services that shall meet customer’s
specifications, safety codes and similarly regulations and
requirements in the Territory. AGENCY acknowledges that it is
R X FS’S objective to obtain “sole-source
negotiated sales” whenever possible.
(1)
Monthly sales tracing report coinciding with the
review of Purchase Objectives outlined in Section 2.5 of this
Agreement . This report is
to include the following information regarding customers who have
received shipments of R X FS Products, delivery of R
X FS Services, or are potential customers of R
X FS: name, city, state, zip code; primary
contact, phone number, fax number, email address, website,
year-to-date sales revenue by product or service, forecasted future
sales revenue by product or service, and other information that R
X FS may require from time-to-time.
2.7.
AGENCY’s Operations and Expenses .
Except as hereinafter specified, AGENCY shall be responsible
for all expenses incurred by it in connection with the
implementation and performance of its duties and obligations under
this Agreement, including but not limited to, the expenses incurred
in fulfilling its duties and responsibilities as provided in
Paragraph 2; salaries for its personnel; costs and expenses
associated with establishing and maintaining its sales organization
and offices; advertising and promotion expenses and any and all
taxes, duties, tariffs or charges which may be imposed on the
AGENCY in the Territory. Subject to written approval in
advance by R X FS in advance for each specific trip, R
X FS shall reimburse AGENCY for its actual and
reasonable travel, room and board expenses incurred, while
performing services under this Agreement in the Territory areas
which are outside of the AGENCY’s principal business or
residence, provided that AGENCY shall subject reasonable
documentation for such expenses.
2.8.
Compliance with the Law . AGENCY agrees that
in rendering services and in carrying out its other duties under
this Agreement, it shall neither undertake nor cause or permit to
be undertaken any activity which is illegal under the laws of the
Territory or of the United States of America.
a.
AGENCY covenants and warrants to R X FS that
any fees or commissions paid to or to be paid to AGENCY under this
Agreement are for AGENCY’s own account, and that except as
appropriate to carry out AGENCY’s duties set forth herein in
a legal manner, AGENCY has not, has no obligation to, and shall
not, directly or indirectly, give, offer, pay, promise to pay, or
authorize the payment of money or thing of value to any other
person in connection with the transactions for which commissions
hereunder are to be paid. AGENCY agrees not to take any
actions that would cause R X FS to violate any United
States, State, and foreign antitrust laws, Medicare and Medicaid
Coverage Regulations and Requirements, Safe Harbor Regulations,
Anti-Kickback Statutes, Fraud and Abuse Laws. AGENCY further
agrees and warrants that no officer, director, employee, or AGENCY
of AGENCY is an official of the Government.
b.
AGENCY understands and agrees that R X FS may
comply with any legal provision requiring disclosure, or any
request from the United States Government or the Government of the
Territory to disclose, by affidavit or AGENCY as well as the
identities of AGENCY’s principal and the amount of any
payment made or to be made to AGENCY hereunder.
c.
AGENCY covenants and warrants that it shall make and keep
books, records, and accounts that, in reasonable detail, accurately
and fairly reflect the transactions performed by it hereunder and
the dispositions of the commissions paid to AGENCY pursuant to this
Agreement.
d.
In the event of a material breach of AGENCY’s
representations, warranties, or obligations under this paragraph,
this Agreement may be immediately terminated by R X FS.
For the purposes of this paragraph, a material breach of
representation, warranty or obligation by AGENCY shall be such
failure of compliance or breach of this paragraph as may be
determined by the arbitration panel provided for in Paragraph 13
hereof, or as may in the reasonable opinion, rendered after giving
AGENCY a full opportunity to present its position as to the
relevant law and facts of independent counsel (i.e., counsel not
previously having represented R X FS) appointed by R
X FS place R X FS in jeopardy of civil
or criminal liability under the laws of the United States or the
Territory.
2.9.
Orders . AGENCY shall submit contracts
and/or orders for Products or Services in one of the following
manners:
a.
By R X FS Web Site directly to R X
FS;
b.
Via the US Postal Mail to the address in this Agreement;
or
c.
By Fax to the Fax in this Agreement.
2.10.
Indemnification. AGENCY will
indemnify and hold R X FS harmless from any
liabilities or damages that R X FS may suffer by
reason of AGENCY’S breach of any representations or
warranties made by AGENCY directly to customers or expressly
authorized in writing by AGENCY.
3.
Product and Service Pricing. R X
FS has the exclusive right to establish and set all prices and
pricing guidelines for its products and services.
3.1.
Payment Terms. All products and services are
sold to customers including all normal, shipping, transportation,
insurance and similar charges, which shall be the responsibility of
customer. If shipments are made in installments, each
shipment shall be a separate and independent transaction and shall
be invoiced by R X FS and payable by customer
separately.
S
Exhibit 10.1
3.2.
Proprietary Rights . All patents and patent
applications, trademarks, service marks, copyrights, trade names,
and other proprietary rights in and with respect to R X
FS Products or Services are and will remain exclusively the
property of R X FS. During the term of this
Agreement, AGENCY may indicate that it is an authorized AGENCY of R
X FS and may use the trademarks, service marks, logos,
symbols, and trade names of R X FS applicable to R
X FS Products or Services in connection with
AGENCY’s distribution and sale of R X FS Products
or Services in the Territory in accordance with the terms of this
Agreement. All use of such trade names, trademarks, logos,
and symbols shall be immediately discontinued upon the termination
of this Agreement. AGENCY shall not remove from, alter, or
add to any trade name, label, logo, decal, trademark, patent
number, or serial number affixed by R X FS to any of R
X FS Products. AGENCY shall not directly or
indirectly obtain or attempt to obtain at any time any right, title
or interest by registration or otherwise in or to the trade names,
trademarks, symbols, or designations owned or used by R
X FS. AGENCY shall notify R X FS of any
use of R X FS trademark or trade name, which comes to
its attention that may infringe upon R X FS rights and
shall cooperate at R X FS expense in any prosecution of
such infringement.
4.
COMPENSATION.
4.1.
Commission Payments . In
consideration for the sales and promotion efforts of AGENCY, R
X FS will pay AGENCY a commission on all collected
revenue from the sales of Products and Services delivered to
customers in the Territory if such deliveries are the result of
firm orders or sales contracts signed by the customer and R
X FS during the term of this Agreement and all
commission payments shall survive termination of this Agreement.
Such commission shall be equal to the applicable percentage
as set forth below of the net revenues invoiced on sales of the
Products in the Territory. Net revenues for the purpose of
determining commissions are the gross sales price of the products
and services ordered, sold to, invoiced to, and collected from
customers in the AGENCY’s Territory, less contractual
discounts, expense charges, shipping charges, and applicable taxes.
RETAIL
COMMISSION SCHEDULE:
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Pharmaceutical Products
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Commission
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5.0%
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Specialized Dispensing Systems
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Commission
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5.0%
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Durable Medical Equipment
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Commission
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3.0%
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Consultant Pharmacist Services
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Commission
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0.5%
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a.
Eligibility for Commissions After Termination.
Commission payments will survive the termination of this
Agreement as follows:
(1)
Contracts and Orders. R X FS will
pay AGENCY commission payments on all collected sales for Products
and Services provided under sales contracts executed in the
AGENCY’s Territory during the term of this Agreement for the
term of the Contract between R X FS and the
Customer.
4.2.
Payment . Except as provided herein or
otherwise agreed to in writing on an individual order basis,
commission payments in respect to Products and Services sold will
be due and payable to the AGENCY on or before the 20 th
day following the end of the calendar month in which R X
FS receives payment from the sale of such Products and Services.
Any reduction in commissions, such as may result from a
return of products, will be deducted from subsequent commission
payments, and any balance not so repaid within 60 days after
termination of this Agreement will be repaid by AGENCY in cash upon
demand.
4.3.
Advances/Draws . R X FS may advance
funds from time-to-time, at its discretion, to the AGENCY for
various development and marketing expense. Any advance of
funds paid shall be deducted from the commissions earned or if such
commission are insufficient, shall be repaid upon demand by R
X FS.
4.4.
Statements and Records.
a.
Each remittance of commissions will be accompanied by a
statement, certified to be correct by an officer of R X
FS, showing the commissions accrued and adjustments for the
preceding calendar quarter and any other information necessary in
order for the proper determination of the amount of commissions
payable under the terms of this Agreement.
b.
R X FS shall establish and maintain full, true
and accurate books and records containing information, which may be
necessary for the purpose of showing the commissions payable to the
AGENCY. Such records shall be maintained by R X FS
at its principle offices in the United Sates, and said records
shall be open at all reasonable times, for a period of (5) years
following the end of the calendar quarter to which they pertain,
for inspection by an independent public accountant obtained by the
AGENCY in order to verify the statements of R X FS and
the commissions which shall been remitted to the AGENCY. Any
information obtained as a result of any such inspection shall be
maintained in confidence by such public accountant and by the
AGENCY and shall be disclosed only to such extent as may be require
in order for the AGENCY to enforce its rights to receive
commissions as provided in this Agreement.
5.
Duties and Responsibilities of R X FS . R
X FS shall:
6.
6.1.
Support Services . R X FS will
provide the following support services for the benefit of AGENCY:
email account, marketing materials, business cards, and other
support services that may be deemed necessary from time to
time.
6.2.
Pricing Schedule . Maintain a current Product Pricing
Schedule for all standard items and services.
6.3.
Sales and Service Assistance . Provide sales
and technical assistance to AGENCY, including but not limited to
providing sales leads for potential customers within the territory
who contact R X FS directly.
6.4.
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