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AUTHORIZED RESELLER AGREEMENT
This Authorized Reseller Agreement ("Agreement") dated March 22,
2005
("Effective Date") is between Megola, Inc., a Nevada corporation
having its
principal place of business at 446 Lyndock St #102, Corunna, ON,
Canada, N0N1G0
("MEGOLA") and BUYMAX, LLC, a Missouri limited liability company
having its
principal place of business at 2 North Tamiami Trail, Suite 806,
Sarasota, FL
34236 ("RESELLER").
1. PURPOSE; APPOINTMENT OF MEGOLA.
(a) This Agreement provides the terms and conditions for the
sale by
MEGOLA to RESELLER and the purchase and resale by RESELLER of
MEGOLA's Products
as described more fully on Schedule 1(a) attached hereto, as it
may be amended
by the parties from time to time ("Products").
(b) Subject to the terms and conditions of this Agreement,
MEGOLA appoints
RESELLER and RESELLER accepts appointment as its authorized,
sole and exclusive
RESELLER of the residential ScaleGuard devices (TFK) for the
term of this
Agreement. RESELLER has the right to purchase such Products as
may be made
available to RESELLER by MEGOLA from time to time for resale
only to authorized
customers within the United States of America or other locations
agreed to by
the parties in writing and as listed on Schedule 1(b) attached
hereto, as it may
be amended by the parties from time to time (each, an "Approved
Location").
(c) Nothing in this Agreement or otherwise shall preclude
RESELLER from
marketing, offering and selling any other products to customers
in conjunction
with the Products.
(d) MEGOLA agrees not to market, offer or sell the Products to
any
contractor, company, entity or individual under any trade name
or its parent,
subsidiaries or affiliates for the term of this agreement.
MEGOLA may, however,
market, offer and sell the Products under its own trade name to
any commercial,
industrial contractors who do not, directly or indirectly,
market, offer or sell
the Products to residential customers.
2. GENERAL RESELLER REQUIREMENTS. During the term of this
Agreement, RESELLER
agrees to:
(a) Use reasonable efforts to market and sell the Products in
the Approved
Locations and comply with the policies, programs, and
requirements regarding
marketing and Products support as may be communicated in writing
by MEGOLA to
RESELLER from time to time.
(b) Maintain an inventory of the Products at each Approved
Location
adequate to fulfill sales in the Approved Location.
(c) Comply with all applicable laws and regulations.
3. MINIMUM ANNUAL RESALE REQUIREMENT.
(a) In consideration of granting RESELLER exclusive resale
rights,
RESELLER shall comply with the following Minimum Annual Resale
Requirement (as
defined below). During each year that this Agreement is in
effect, RESELLERs
purchases of Products to serve customers within the Approved
Location shall be
greater than or equal to 1,000 Products. Each subsequent year
this Agreement is
in effect, RESELLER's purchases of Products to serve customers
within the
Approved Location shall be greater than or equal to 2,000
Products. The term
"minimal Annual Resale Requirement" refers to each of the
foregoing amounts for
the first year of this Agreement and each subsequent year that
this Agreement
remains in effect. If RESELLER fails to meet such Minimum Resale
Requirements,
RESELLER shall lose its exclusive resale status. If This
Agreement is renewed at
the end of the Initial Term the parties may determine future
minimum annual
resale requirements (each, a "Revised Minimum Resale
Requirement"). If this
Agreement is renewed and the parties do not determine a Revised
Minimum Resale
Requirement, the then-existing Minimum Resale Requirement shall
remain in effect
and shall apply to each Renewel Term until parties agreed on a
Revised Minimum
Resale Requirement.
<PAGE>
4. TRADEMARKS. RESELLER agrees to conspicuously display such
signs and other
identification of the Products at each Approved Location so as
to make potential
customers and customers aware of the availability of the
Products at such
locations and to market the Products as required by this
Agreement, subject to
the following terms and conditions as to such usage.
(a) Subject to the terms and conditions of this Agreement, each
party
grants to the other a revocable, limited, nonexclusive,
nontransferable license
(without right of sublicense) to use the other party's trade
names, trademarks,
service marks and other business source identifiers
(collectively, "Marks") only
within the Approved Locations solely for promoting and
advertising the sale and
use of the Products. Each party shall at all times comply with
the other party's
quality control guidelines and procedures relating to the
Marks.
(b) Upon the termination, expiration or cancellation of this
Agreement, or
upon a party's demand, the other party shall immediately
discontinue all use of
the Marks.
5. MEGOLA WARRANTIES. MEGOLA represents and warrants to RESELLER
that:
(a) MEGOLA has all corporate or other authority to perform under
this
Agreement and that such performance does not and shall not
violate any agreement
to which MEGOLA is a party;
(b) MEGOLA holds all necessary federal, state and local
licenses, permits,
and other permissions for MEGOLA to perform under this Agreement
(including
without limitation, reselling the Products at each Approved
Location) in
accordance with all applicable laws and regulations;
(c) MEGOLA is not involved in any action or proceeding and has
not
received notice of any threatened action or proceeding that
would jeopardize
MEGOLA's performance under this Agreement; and
(d) the Products shall be delivered to RESELLER with good title
free of
any rightful third party claim of infringement of any patent,
copyright,
trademark, trade secret or other intellectual property right
recognized or
registered within the United States and its possessions.
6. PRODUCT WARRANTIES; DISCLAIMER; LIMITATION OF LIABILITY
(a) RESELLER agrees to display all required warranties and
notices in
accordance with MEGOLA's instructions and with all applicable
federal, state and
local laws and regulations. RESELLER shall have the right to
extend, enhance or
exclude any guarantee, warranty or representation relating to
the Products or
otherwise to any customers, prospective customers or any other
third parties
beyond the manufacturer's standard written warranty set forth on
Schedule 6(a)
attached hereto, as it may be amended from time to time
("Manufacturer's
Warranty").
(b) All warranty claims for the Products received by RESELLER
shall be
processed in accordance with MEGOLA's or the manufacturer's
warranty procedures,
as may be applicable from time to time.
(c) IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY INCIDENTAL,
INDIRECT,
CONSEQUENTIAL, SPECIAL OR PUNITIVE DAMAGES, INCLUDING WITHOUT
LIMITATION, LOST
REVENUES, LOST BUSINESS AND LOST PROFITS, REGARDLESS OF THE FORM
OF ACTION
WHETHER IN CONTRACT, TORT, STRICT PRODUCTS LIABILITY, OR
OTHERWISE, EVEN IF
MEGOLA OR RESELLER OR ANY OF THEIR RESPECTIVE SUPPLIERS HAVE
BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES.
7. INDEMNIFICATION.
(a) Each party shall indemnify, defend and hold harmless the
other, and
their respective parent, subsidiaries, and affiliates, and each
of their
respective directors, officers, employees and members from any
and all damages,
injuries, costs, claims, liabilities, and expenses (including
without
limitation, reasonable attorneys' fees and costs and expenses)
(collectively,
"Claims") that arise out of or are related to a party's
performance or failure
to perform under this Agreement, any material breach of this
Agreement, and/or
any gross negligence or intentional misconduct of a party, its
directors,
officers, employees and/or agents.
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(b) In addition to the foregoing general indemnity, MEGOLA shall
also
indemnify, defend and hold harmless RESELLER and its respective
parent,
subsidiaries, and affiliates, and each of their respective
directors, officers,
employees, shareholders and members from any and all damages,
injuries, costs,
claims, liabilities, and expenses (including without limitation,
reasonable
attorneys' fees and costs and expenses) if any of the Products
or parts thereof
are held to constitute an infringement of any third party's
rights and its
intended use is enjoined. MEGOLA shall, at its option, modify
the Products or
parts to become non-infringing, remove them and refund to
RESELLER the purchase
price, procure for Reseller the right to continue using the
Products or part, or
replace it with non-infringing Products or parts.
8. TERMS OF SALE. RESELLER agrees to purchase the Products from
MEGOLA
subject to the following terms of sale:
(a) RESELLER shall deliver a purchase order ("P.O.") to MEGOLA
by
facsimile, electronic mail or such other methods as are agreed
to by the
parties.
(b) Each P.O. shall be deemed an offer by RESELLER to purchase
the
Products listed therein and when accepted by MEGOLA shall
constitute a contract
in accordance with the terms and conditions of the P.O. and this
Agreement. If a
conflict arises between the two, this Agreement shall
control.
(c) Each P.O. shall include the quantity and type of Product(s)
ordered,
Product descriptions, Product specifications, shipment and
in
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