GEOGRAPHIC EXCLUSIVE
COMMISSIONED SALES AGENT AGREEMENT
This Geographic
Exclusive Commissioned Sales Agent Agreement (herein referred to as
" Agreement" ) is entered into by and between Tactical
Operational Support Services LLC, a Florida Limited Liability
Company also registered in the Commonwealth of Puerto Rico (herein
referred to as " TOSS LLC " or " T.O.S.S. LLC ") and
Lamperd Less Lethal Inc. (herein referred to as "LLLI" ) a
Nevada registered company with principal business operations in
Sarnia, Ontario Canada and dated as of August 2, 2005 (herein
referred to as " Effective Date" ).
RECITALS
A. LLLI
develops and sells a line of less lethal launching weapons,
ammunition, accessories, and training services. It is recognized
that LLLI products and services are based upon patented and
proprietary intellectual property that should always remain the
property of LLLI.
B. TOSS LLC has
the ability to sell military and police products in the
Commonwealth of Puerto Rico and the Dominican Republic.
C. LLLI desires
its products and services to be sold in the Commonwealth of Puerto
Rico and the Dominican Republic
D. TOSS LLC
seeks to function, for a limited period of time, as an Exclusive
Commissioned Sales Agent and successfully demonstrate to LLLI
through the generation of significant commissioned sales of LLLI
products and services to the military and police forces of the
Commonwealth of Puerto Rico and the Dominican Republic that TOSS
LLC is capable of becoming the Exclusive Distributor of agreed upon
LLLI products and services in the Commonwealth of Puerto Rico (and
the Dominican Republic where TOSS LLC is also
registered).
AGREEMENT
Based on the
mutual covenants herein and other good and valuable consideration,
the parties hereby agree as follows:
SECTION I
Definitions
A.
Products . All LLLI products and services deemed by LLLI as
deliverable and applicable to the sales opportunities brought
forward by TOSS LLC, and not restricted by other LLLI distribution
agreements.
B.
Territory . Subject to the terms and conditions of this
Agreement, LLLI hereby grants TOSS LLC the right to be the
exclusive commissioned sales agent (herein referred to "Exclusive
Sales Agent") of the Products in the Territory. For the purpose of
this agreement the Territory means the Commonwealth of Puerto Rico
and the Dominican Republic.
C.
Market . Subject to the terms and conditions of this
Agreement, LLLI hereby grants TOSS LLC the right to be the
Exclusive Sales Agent in the Territory for the Products for the
market represented by end user sales consisting of members of the
Police and Military.
D. Term
. Unless earlier terminated pursuant to any other provision hereof,
the initial term of this Agreement shall be for a period of time
commencing on the Effective Date and
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terminating on
a date that is 90 days following the Effective Date (the Initial
Term ). At the sole discretion of Lamperd the contract can be
extended after each 30-day period for an additional 30-day period,
by submitting a faxed extension to TOSS LLC stating the granting of
such extension.
SECTION II
OBLIGATIONS OF TOSS LLC
A. Sales
Opportunities. TOSS LLC shall use its best efforts to solicit
sales opportunities for the Products in the Territory.
B. Request
for Quotation. TOSS LLC shall document Sales Opportunities by
submitting to LLLI a Request for Quotation (RFQ).
C. Purchase
Order. TOSS LLC shall use its best efforts to obtain from
customers in the Market, Purchase Orders issued directly to LLLI,
with unit pricing that meets or exceeds unit prices supplied to
TOSS LLC in LLLI Quotations.
D. Sales
Support. TOSS LLC shall use commercial best efforts to support
LLLI products and services customers throughout the sales
process.
E.
Collections. TOSS LLC shall use commercial best efforts to
support LLLI in collecting all payments due LLLI for the
Territory.
SECTION III
OBLIGATIONS OF LLLI
A. Sales
Opportunities. LLLI shall use its best efforts to provide sales
opportunity analysis and recommendations to TOSS LLC to aid in the
issuance of RFQs.
B.
Quotation. LLLI within 10 business days will respond to TOSS
LLC submitted RFQs with a detailed quotation outlining end user
baseline prices, terms and conditions.
C. Order
Fulfillment. LLLI will use commercial best efforts to fulfill
all accepted Purchase Orders, and ship or supply direct to the end
customer as outlined in the Quotation Terms and
Conditions.
D.
Payment. LLLI will pay TOSS LLC 20% commission on baseline
prices indicated in Quotations. LLLI will pay TOSS LCC 90% on all
residual unit sales amounts above LLLI baseline prices.
E. Payment
Terms. LLLI will pay TOSS LLC commissions Payment 15 days after
all Purchase Order amounts due LLLI are received from the customer.
LLLI at its sole discretion is able to make partial advances or
payments on line items, as it deems necessary to TOSS
LLC.
SECTION IV
ORDER FLOW AND PAYMENT
A. As outlined
in Section III.C - III.E above.
SECTION V
TERM AND TERMINATION
A. Term
. Term as outlined in Sec. I.D above.
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B.
Termination for Breach . Either party may cancel this
Agreement at any time, without liability and without prejudice to
any other right or claim arising under this Agreement, if the other
party materially breaches this Agreement or fails to perform any of
its material obligations under this Agreement. The party seeking to
terminate shall give the other party written notice of that party's
breach and/or non-performance, the party receiving the notice shall
have 45 days to correct the breach. If the breaching party fails to
correct the breach within 45 days, the non-breaching party may
deliver a written termination notice (a Termination Notice )
to the breaching party, indicating a date certain that is no fewer
than three business days from the date that the Termination Notice
is delivered to the breaching party. The Agreement shall be deemed
to have been terminated as of the date specified by the
non-breaching party in the Termination Notice, unless the parties
hereto execute a written waiver of the breach or breaches of this
Agreement.
SECTION VI
INTELLECTUAL PROPERTY
A. Lamperd
Less Lethal Intellectual Property . During the Term of this
Agreement, subject to the terms and conditions hereof, Lamperd
hereby grants to T.O.S.S. LLC, a non-exclusive, non-transferable
right to use the Intellectual Property of Lamperd solely for
marketing and sales of the Products in the Territory, it being
understood that this right shall automatically be revoked in the
event of (1) any non-permitted use or (2) any use that, in
Lamperd's sole judgment, is detrimental to the Products, the
Intellectual Property or Lamperd's right, title and interest in and
to the Products or the Intellectual Property, that continues for a
period of three business days after Lamperd gives written notice of
such non-permitted or detrimental use to the offending party. For
purposes of this Agreement, Intellectual Property shall
mean, wherever registered or perfected, any and all (i) trademarks,
service marks, trade names, logos, business and product names,
slogans, and registrations and applications for registration
thereof; and (ii) works in which copyright may be claimed, and
registrations and applications for registration thereof.
B.
Limitation of Rights . T.O.S.S. LLC shall not assign,
transfer or otherwise permit any person to use the rights granted
herein to the Intellectual Property of Lamperd without the prior
written consent of Lamperd. The parties agree that all goods or
services promoted and/or rendered under the Intellectual Property
will be of a nature and quality conforming to standards approved by
Lamperd, and that Lamperd shall have the right to do all things
reasonably necessary to verify the adequacy of the nature and
quality of such goods and services. Failure to maintain such
standards shall constitute a material breach of this Agreement.
T.O.S.S. LLC shall use the registered marks of Lamperd only for the
goods and services for which they have been registered and the
unregistered marks and other Intellectual Property of Lamperd only
for the goods and services for which they have been used in
accordance with agreement.
C. Trademark
Benefit . The parties agree that all use of Lamperd marks and
other Intellectual Property, and all goodwill arising from such
use, will inure to the benefit of Lamperd; provided, however, that
nothing set forth herein shall diminish the rights of Lamperd, and
all goodwill arising from such use, in and to such Intellectual
Property.
D. Ownership
of Intellectual Property . None of T.O.S.S. LLC, his affiliates
or any other party by virtue of this Agreement or any of his
activities hereunder, shall obtain any
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ownership
interest in or title to the Intellectual Property (including any
and all improvements thereto).
E.
Inventions, Discoveries, etc. Any and all inventions,
discoveries, improvements, processes, methods, formulae and
modifications made or conceived by T.O.S.S. LLC regarding the
Products listed herein during the term of this Agreeme