STRATEGIC ALLIANCE AGREEMENT
THIS STRATEGIC ALLIANCE AGREEMENT (this "AGREEMENT") is entered
into as
of February 15, 2005 (hereinafter referred to as the effective date of the
Agreement), by and between CRITICAL POINT, LLC, a North Carolina limited
liability company (d/b/a Critical Point Group and
hereinafter
referred to as
"CPG"), and THE RESOURCING SOLUTIONS GROUP, INC., ITS SUBSIDIARIES AND
AFFILIATES, D/B/A ASMARAHR. CPG and
AsmaraHR may each be referred to herein as a
"Party" and may be referred to,
collectively, as the "Parties".
WITNESSETH
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WHEREAS, AsmaraHR
is in the business of providing Human Resource
Outsourcing services and PEO services to
its customers; and
WHEREAS, AsmaraHR
wishes to enhance and
expand its existing
business
and to expand the products and services
available to its customers; and
WHEREAS, CPG is in the
business of providing
consulting and strategic
planning services to its clients; and
WHEREAS, AsmaraHR
desires to retain CPG, and CPG wishes to provide the
services as set forth in this Agreement;
and
WHEREAS, CPG
wishes to be the
recipient of outsource services by
AsmaraHR that are inclusive of TPA services
for employee
benefit clients of
AsmaraHR; and
WHEREAS, AsmaraHR
wishes to retain CPG for sales support through sales
management and training of sales staff with regard to the medical physician
industry
NOW, THEREFORE,
in consideration of the foregoing and of the
mutual
promises hereinafter expressed, the Parties
hereto do mutually agree as follows:
ARTICLE I
OBJECTIVES
----------
The following
are AsmaraHR's primary objectives in retaining the
services of CPG:
1.1 To obtain a sales management strategy, and provide sales training
with regard to employee benefit insurance
products, and
development of property
and casualty insurance products, or other products that compliment
the product
and services offering.
1.2 To have CPG provide lead sources through CPG's' contact
database,
sales lead development with regard to the physician private office sales
vertical.
1.3 A continuation
of executive leadership and influence by the
Principals of AsmaraHR over AsmaraHR's
direction, vision, and growth.
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1.4 AsmaraHR and CPG enter into an exclusive discovery period for the
purpose of CPG identifying TPA services
currently provided by
AsmaraHR to their
client base, CPG developing further services for the AsmaraHR
client base as
needed, and providing AsmaraHR a price structure for the
identified
services.
This period should begin February 7, 2005
and end by close of business February
9, 2005.
1.5 CPG will provide
assistance in evaluating and determining the best
model for providing HRO services in the acute care industry for AsmaraHR
products and services, employee benefit
insurance products and TPA services, and
the development of other products and
services that would be
complimentary to
the current joint product offering.
ARTICLE II
MEDICAL OFFICE SALES VERTICAL STRATEGIC ALLIANCE
------------------------------------------------
2.1 Strategic
Alliance. As a means
of meeting the objectives outlined
in Article I above, AsmaraHR and CPG hereby
enter into a strategic alliance (the
"STRATEGIC ALLIANCE") pursuant to which each shall
perform their services
and
obligations as set forth below.
2.2 Engagement of CPG.
AsmaraHR does hereby engage CPG for a period of
12 months days (or longer if mutually
agreed by the parties)
(the "TERM"). CPG
shall be the exclusive strategic partner
during this Term. CPG shall continue to
receive the agreed full commission income,
as outlined in section 2.3 below, for
as long as CPG, or CBA, and AsmaraHR
jointly provide services or products to the
AsmaraHR client.
2.3 Fees and Costs.
AsmaraHR shall pay CPG $1,500 per month, for
providing the strategic planning and consulting services set forth in Section
2.5 below. CPG will also receive 25% of all
commission income on
products sold
by the sales vertical that CPG will be
responsible for sales management of.
2.4 TPA Services.
AsmaraHR shall pay all third-party expenses and fees
to third-party service providers identified and retained by CPG in
connection
with providing the services
hereunder.
CPG shall have
authority to obtain the
assistance of other third-party professionals to assist it in this
engagement.
CPG will endeavor to keep the fees and expenses to third parties as low as
reasonably possible. CPG will bill AsmaraHR at the end
of each calendar month,
with payment due in full within 30 days of
billing.
2.5 Exclusive Engagement. During the Term of this Agreement
(including
any extensions thereof) CPG shall be the
exclusive provider of
consulting and
strategic planning services to AsmaraHR. A Principal of CPG, Mr. Tim Vliet,
shall have full and exclusive authority over the management of the Strategic
Alliance, including but not limited to, overseeing the preparation of the
business plan and related documents,
engaging other
third-party
professionals.
AsmaraHR will not employ any other competing professional relating to the
Objectives without the prior consent of Mr. Vliet, and will refrain from
discussing its business plan and the services being provided under this
Agreement with any other third-party professional(s) without his direct
involvement.
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2.6 Performance
by CPG. CPG will use its best efforts to assist
AsmaraHR in meeting each of the Objectives outlined in Article I above. In
particular, CPG will conduct the following
activities:
(a) Assist AsmaraHR in
developing and
expanding its business
plan to include
HRO and employee benefit insurance products and
services for
the private physician office practice as jointly
identified, and to
assist AsmaraHR in meeting the Objectives as
outlined above.
(b) Perform, on its
own and with
assistance from AsmaraHR as
needed, the discovery identified in the Objectives outlined
above
(c) CPG/CBA will also provide proprietary insurance product
descriptions and
projections,
together with a
migration plan. It
is
contemplated that this
will be a key driver of AsmaraHR's new business
plan.
2.7 Specific
Agreements of AsmaraHR. As a material inducement to
CPG,
AsmaraHR agrees as follows:
(a) AsmaraHR
shall negotiate in all good faith with CPG to
formulate and
implement the business plan arising from this Strategic
Alliance, provided it furthers the Objectives outlined herein.
(b) Regardless
of the structure of the new business plan
or
the success in achieving its goals, CPG and its affiliates shall be
the
exclusive provider
of all third party financial products and TPA
services to AsmaraHR's
client base. Such exclusive arrangement shall
remain in place for
not less than
five years from the date of this
Agreement. CPG shall have the right of first refusal on any
third-party
offers obtained
in good faith by AsmaraHR for the provisions of
financial services and/or TPA services to its client base.
2.8 Insurance
Products. For a period of three years from
the date of
this Agreement, Carolina Benefit Associates, LLC ("CBA") and its affiliates
shall be the exclusive broker and agent for insurance and insurance related
products and services promoted or offered by AsmaraHR
and its affiliates to
AsmaraHR's customers. During this period, AsmaraHR shall work jointly with
CBA
in the marketing of insurance
products and services offered through CBA. In
addition, CBA shall have the right to receive and use all customer contact
information for the purpose of soliciting,
either directly or
through AsmaraHR,
and underwriting insurance products and services to AsmaraHR's customers
(subject in all cases to applicable U.S., state and local laws regarding the
solicitation of such products and services). All insurance related forms and
information generated through the
solicitation, issuance
and administration of
insurance products and services shall be and remain the sole
property of CBA.
Upon the expiration of the initial 3-year
term, CBA shall have a right of first
refusal for providing insurance related
services for AsmaraHR's customers. For
this purpose, AsmaraHR shall provide CBA
with written notice of the terms of any
bona-fide third-party offers to provide
insurance services.
Such right may be
exercised at any time by CBA within ten
business days of receipt of said notice.
This Section shall survive the expiration of the Term or other
termination
of
this Agreement. CBA shall be a third-party beneficiary for purposes of this
Section and all other related provisions of
this Agreement.
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ARTICLE III
INSURANCE PRODUCTS- (NON-MEDICAL VERTICAL)
------------------------------------------
3.1 PREFERRED PROVIDER. CPG/CBA will be the preferred
provider for all
insurance products to AsmaraHR's
clients.
3.2 RIGHT OF REFUSAL.
CPG/CBA will have the right of first refusal on
all insurance products for AsmaraHR new
client base.
3.3 EXCLUSIONS:
-NASPAC - medical insurance
-NASPAC/Elder Care- Workers' Compensation Insurance
-Individual
Supplemental Benefits
(i.e. AFLAC, Colonial)
to
AsmaraHR existing customer base
ARTICLE IV
RESELLER'S AGREEMENT
--------------------
BACKGROUND INFORMATION
AsmaraHR (referred to as the Company in this Article) is in the
business of providing professional employer
services. The Company wishes to
retain the services of CPG/CBA (referred to
as the Reseller in this Article) to
identify prospective buyers of Company's
services and solicit such prospects to
contract to purchase the Company's
services. The Company desires to retain the
services of Reseller and Reseller desires
to render such services on the terms
and conditions set forth below.
Accordingly, the parties agree as follows:
OPERATIVE PROVISIONS
4.1 TERM.
The effective date of this Agreement is , 2005 (the "Effective
Date")
and the Agreement will continue until
terminated as provided herein. Either
party may terminate this Agreement at any
time by providing thirty (30) days
prior, written notice, unless otherwise
provided herein. All Earned Fees shall
be paid through the effective date of
termination.
4.2 SCOPE OF
WORK.
During the Term of this Agreement, Reseller shall provide to
the
Company marketing and sales services for
the exclusive purpose of marketing and
selling the Company's products and services
in accordance with the terms and
conditions herein. The Companies products
include Darwin and DarwiNet a Human
Resource Information Management System,
(HRIS) and
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Integrated Payroll (collectively
hereinafter referred
to as "Products"). .
The
Company's services include, but are not limited to, human
resources advice,
payroll processing, work force administrations, as well as one or more of the
following: benefits administration,
unemployment services, workers' compensation
insurance, employee benefits and risk management services (collectively
hereinafter referred to as "Services").
The Reseller agrees
that it shall begin
its operations to help market the Products and
Services as of the execution of
this Agreement.
4.3 RESELLER RELATIONSHIPS -Resellers can have three distinct
relationships with Company:
- FINDER'S
FEE- Reseller agrees to provide introductions and
participate in initial
meetings with
potential clients for the
Company's services.
The Company will be responsible for the
closing of the sales contracts with clients.
- JOINT
MARKETING-
Joint selling where
Reseller leads sales
cycle
with sales support from Company.
- RESALE-
Reseller will be responsible full sales cycle with
prospective client including closing of sale. Company will
provide
marketing materials as needed.
No sale of the Company's services shall be
final until accepted by the Company.
Reseller agrees to provide a list of
potential clients to Company and identify
which Reseller relationship they will be
participating in with each prospective
client. Reseller agrees not to use any
marketing materials or provide any other
information about the Company without the
prior, written consent of the Company.
Reseller also agrees to attend specific
product and/or services training
sponsored by the Company, at Reseller's
expenses.
The Reseller shall not have any authority to bind the Company
to
provide the Services. The Company will
provide the Services only as provided in
writing by the Company, and only within
states where the Company is duly
licensed to operate. The Company has the
right to: (a) decline any prospective
client brought to the Company for any
reason whatsoever; and (b) terminate any
client brought to the Company by the
Reseller for any reason.
4.4 COMMISSIONS. The Company shall pay a Finder's Fee and or
commission
for the services to be rendered by Reseller
under this
Agreement in
accordance
with section 2.1 and the schedule attached
hereto as Exhibit "A".
4.5 MARKETING
TERRITORY.
The Reseller
shall have the
non-exclusive
right to market the Company's Services anywhere that the Company is
registered
to do business and has obtained all
necessary licenses to operate. A list of the
states where the Company is licensed or
otherwise qualified to do business shall
be delivered by the Company to the Reseller
upon request by the Reseller.
4.6 LIMITATION ON
REPRESENTING OTHER
PROVIDERS.
The Reseller
agrees
that it and its affiliates and subsidiaries will market the Products and
Services only on behalf of the
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Company during the Term of this Agreement.
Reseller also agrees
to refrain from
selling Products or Services on behalf of
any other person or entity other than
the Company during the Term of the
Agreement; however,
Reseller may continue to
represent any such organizations with which it had an agreement
prior to the
Effective Date of this Agreement. Additionally, the Reseller or its principal
owners, shall not own, directly or indirectly, an equity interest in any
Professional Employer Organization ("PEO")
or Human Resource Organization (HRO),
(PEO and HRO mean a Company that uses co-employment to provide Services as
defined in paragraph one) without the prior written consent of the Company;
however, the Reseller, and/or its principal
owners shall be permitted to own the
shares of such companies whose stock is publicly traded provided that the
Reseller, nor its principals sell or promote products or services offered by
such companies.
4.7 EXPENSES. The
Reseller shall be
responsible for all
ordinary and
necessary out-of-pocket expenses incurred by
the Reseller in the performance of
its obligations hereunder.
4.8 SUBAGENTS.
The Reseller shall have no authority to appoint
subagents, except upon specific written
authority of the Company.
4.9 RESTRICTIVE
COVENANTS.
4.9.1
NON-SOLICITATION;
NON-INTERFERENCE.
Reseller shall not, during
the Term of this Agreement, whether Initial or Successor,
and the two (2)
year
period following termination of this Agreement,
for whatever
reason, solicit
directly or indirectly any Customer or Prospect of the
Company to purchase any
services provided by the Company. For purposes of this Agreement, the term
"Customer" means any person or entity that
has a Client Service
Agreement or
other Agreement for services from the
Company in effect during the term of this
Agreement, and the term "Prospect" means any person or entity with whom the
Company has made a written proposal within the one (1) year
period immediately
preceding the date upon which this Agreement is terminated. Additionally,
Reseller shall not, directly or indirectly, during the two (2) year
post-termination period, employ or attempt to employ any employee of the
Company, or otherwise encourage or attempt to encourage any employee of the
Company to leave the Company's employ. It
is expressly
understood that Reseller
may solicit the Company's customers for the purpose of selling services or
products offered by Reseller that Company
does not sell on a stand-alone basis.
4.9.2
CONFIDENTIALITY;
DISCLOSURE;
PROPRIETARY INFORMATION. Reseller
acknowledges that all records and information obtained from the Company,
including, but not limited to, lists of
customers or proposed
customers of the
Company, or of, all personal, financial or business information
concerning the
customers or proposed customers of the Company, as well as the business
processes and distribution systems of the Company,
are valuable and
unique and
are proprietary assets of the Company (the
"Confidential
Information").
During
Reseller's retention by the Company and following the termination thereof,
Reseller shall not at any time disclose any
of the Confidential Information, nor
utilize the same for any reason
not previously authorized in writing by the
Company; provided, however, that the Confidential
Information may be disclosed
to Reseller's directors, officers, employees, agents, attorneys and other
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