|
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
----------
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.
Strategic Alliance Agreeement
Page 1
<PAGE>
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.
Strategic Alliance Agreeement
Page 2
<PAGE>
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.
Strategic Alliance Agreeement
Page 3
<PAGE>
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
Strategic Alliance Agreeement
Page 4
<PAGE>
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
Strategic Alliance Agreeement
Page 5
<PAGE>
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, agent
|