EXHIBIT 10.2
MARKETING AGREEMENT
AGREEMENT, made this 6th day of December, 1990.
BETWEEN
AT&T WORLD SERVICES, INC. (hereinafter called "AT&T-WORLD SERVICES") a corporation organized under the laws of the State of Delaware, U.S.A., having its principal office at 412 Mt. Kemble Plaza, Morristown, NJ 07960, U.S.A.
AND,
AMERICAN COMPUTER and ELECTRONICS CORPORATION, a corporation organized under the laws of the State of Maryland, U.S.A., having its principal office at 209 Perry Parkway, Gaithersburg, Maryland 20877 (hereinafter called "AMERICAN COMPUTER").
WHEREAS
1. AT&T-WORLD SERVICES and AMERICAN COMPUTER having entered into a MEMORANDUM
OF UNDERSTANDING dated the 18th day of June, 1990; and,
2. Paragraph 18 of that MEMORANDUM OF UNDERSTANDING specifying that the
parties intend to enter into a worldwide (excluding the domestic US market)
marketing agreement for certain of AMERICAN COMPUTER'S products and
services to be marketed and distributed by AT&T-WORLD SERVICES in the
international (non-US domestic) market;
NOW, THEREFORE, AT&T-WORLD SERVICES and AMERICAN COMPUTER agree as follows:
1. INTERPRETATION
1. In this Agreement:
"Agent" means an in-country business entity required by the business
customs, culture or law of a particular customer country and acceptable to
both parties.
"AMERICAN COMPUTER" means the American Computer and Electronics
Corporation, 209 Perry Parkway, Gaithersburg, Maryland 20877, U.S.A.
"Custom Software" means software in object code and source code format and
its related documentation to be provided to Customers under this Agreement.
"AT&T" means AT&T World Services Inc. and American Telephone and Telegraph
- 1 -
Company, and its affiliates and subsidiaries.
"Customer" means an organization/entity acceptable to both AT&T-WORLD
SERVICES and AMERICAN COMPUTER for their own business purposes to whom the
Products/Services will be proposed and provided.
"day" or "days" means business days unless specifically stated otherwise.
"DCMS-TM-" means the Distributed Call Measurement System of AMERICAN
"Delivery" means the delivery of Products/Services to Customer's designated
"Delivery Dates" means those dates for Delivery as set out in Customer
"Products/Services" means any item of hardware or related service supplied
by AMERICAN COMPUTER under this Agreement including equipment, equipment
features, model conversions, machine elements and accessories.
"Licensed Programs" means those computer programs required for the
operation of Products/Services and offered in object code format only.
"month" or "months" means calendar months unless specifically stated
"Opportunity" means the given end user requirement of a particular customer
for the Products/Services offered under this Agreement.
"Software" means computer programs and associated documentation including,
but not limited to, Custom Software and Licensed Program as supplied under
this Agreement.
"UPS-32-TM-" means the Universal Polling System of AMERICAN COMPUTER.
2. Headings
The headings and captions in this Agreement are for convenience only and
are not intended to have any contractual effect.
3. Schedules
All documents and papers attached to this Agreement as Schedules are hereby
incorporated into and made a part of this Agreement. In the event of any
conflict between any provision contained in the Schedules and the main
body, the Schedules will prevail in the order of priority as listed below.
The Schedules to this Agreement are:
Schedule 1: PRODUCTS/SERVICES
Schedule 2: PRODUCT/SERVICE PRICES
Schedule 3: FORMAT OF CUSTOM SOFTWARE AGREEMENT
Schedule 4: ESCROW AGREEMENT
4. Applicable Law
This agreement shall be governed by and construed in accordance with the
laws of New Jersey.
- 2 -
2. TERM
The term of this Agreement shall be for a period of five (5) years commencing on June 18, 1990 with automatic renewal for successive one (1) year periods unless either Party gives written notice of the intention not to renew at least thirty (30) days prior to the expiration of the initial term or any renewal terms.
3. SCOPE
1. The parties are establishing this marketing arrangement for their mutual
benefit and agree that AT&T-WORLD SERVICES has the exclusive right as set
forth in Section 4-EXCLUSIVE RIGHT OF FIRST REFUSAL, to market and
distribute the Products/Services of AMERICAN COMPUTER set forth in
Schedule 1 outside the United States, its territories and possessions.
2. The parties agree to identify and pursue marketing opportunities in the
international arena. Based upon mutual agreement, AT&T-WORLD SERVICES will
propose the Products/Services of AMERICAN COMPUTER and AMERICAN COMPUTER
agrees to provide these Products/Services. The parties agree to execute
any documents necessary in order to prepare and submit such proposals.
AMERICAN COMPUTER will diligently assist AT&T-WORLD SERVICES in the
analysis, development and review of Customer proposals, tender responses,
requests for proposal, etc. Such assistance shall be provided at no charge
to AT&T-WORLD SERVICES during the first five (5) days, or as otherwise
agreed, for each identified opportunity and thereafter at a fee to be
developed between the parties on a case-by-case basis. In the event that a
sale of PRODUCTS/SERVICES results from such assistance provided, AMERICAN
COMPUTER will reimburse AT&T-WORLD SERVICES for such fees received by
AMERICAN COMPUTER from its share of the proceeds resulting from that
particular opportunity.
AT&T-WORLD SERVICES will review final proposals and Customer supply
agreements with AMERICAN COMPUTER prior to submission to Customer and will
receive written concurrence from AMERICAN COMPUTER of its acknowledgment to
the obligations imposed upon AMERICAN COMPUTER by the proposals and/or
Customer supply agreement.
3. In the event that a Customer accepts a proposal provided under this
Agreement, AT&T WORLD SERVICES agrees to contract with AMERICAN COMPUTER
for the Products/Services, and AMERICAN COMPUTER agrees to provide the
Products/Services in accordance with the Terms and Conditions of this
Agreement and those which were specified in the proposal submitted to the
customer. AMERICAN COMPUTER further agrees to perform with AT&T-WORLD
SERVICES in accordance with the proposal, the delivery, installation and
commissioning of the Products/Services through the provision of hardware,
software, technical and engineering services, warranty support and
4. The parties agree that one tenth percent (0.1%) of the total project price,
contributed equally from the proceeds of each party, from each sale that
may result from this Agreement will be set aside in an account to be
jointly administered for the development of international marketing
materials (i.e., brochures, trade show presentations, seminars, on-site
presentations and the like) for the Products/Services under this agreement.
The initial level of funding in
- 3 -
this account will not exceed one hundred thousand dollars ($100,000.00) and
the parties may from time to time change the dollar limitation for this
5. Nothing in this Agreement shall be taken as an obligation by AT&T-WORLD
SERVICES to purchase any or a particular quantity of Products/Services
notwithstanding any estimate that may be given at any time and AT&T-WORLD
SERVICES shall have no liability to AMERICAN COMPUTER whether in contract,
tort or otherwise with respect to any such estimate.
4. EXCLUSIVE RIGHT OF FIRST REFUSAL
AMERICAN COMPUTER shall promptly advise AT&T-WORLD SERVICES in writing of all inquiries, marketing contacts, requests for information, requests for proposal and the like related to international opportunities which AMERICAN COMPUTER may from time to time receive from all sources, including parties with whom AMERICAN COMPUTER may be contractually associated, (except for AMERICAN COMPUTER's contractual relationships with respect to cellular telephone technology) during the life of this Agreement.
AMERICAN COMPUTER will refrain from providing pricing information, other than the published list price, or from entering into dialogue with a potential customer or other parties pending the acceptance or rejection of the opportunity by AT&T-WORLD SERVICES under the following conditions:
a. AT&T-WORLD SERVICES upon receipt of such notice from AMERICAN COMPUTER
shall, within fifteen (15) business days, advise AMERICAN COMPUTER in
writing of its interest in responding to such request and decide with
AMERICAN COMPUTER the Products/Services and obligations of each party to
the response.
b. In the event AT&T-WORLD SERVICES fails to respond to AMERICAN COMPUTER
within fifteen (15) business days, advises AMERICAN COMPUTER of its intent
not to participate with AMERICAN COMPUTER under this Agreement, or the
parties are unable to agree on the obligations of each party to the
response, each party may then proceed without further commitment or
obligation to the other with regard to the opportunity.
c. In the event AT&T-WORLD SERVICES and AMERICAN COMPUTER agree to proceed
with a response, AT&T-WORLD SERVICES agrees to sub-contract per the terms
of this Agreement to AMERICAN COMPUTER any Products/Services opportunity
which results from the response.
d. In the event that the parties agree to proceed with a response and multiple
sources (i.e., agents) wish to respond to the opportunity, each such source
shall be considered by the parties as related to the opportunity. The
parties shall jointly decide whether or not to proceed with each source and
in the event that the parties are not able to agree or the parties agree
not to proceed with a particular source, neither party will proceed
independently in response to the opportunity with the rejected source.
- 4 -
5. PRICING
1. In recognition of the international marketing costs to be borne by
AT&T-WORLD SERVICES, AMERICAN COMPUTER, unless otherwise agreed in writing,
sets out the price of the Products/Services to be shown on Schedule 2-
PRODUCT/SERVICE PRICES on a preferential discounted basis to AT&T-WORLD
SERVICES for the purposes of this Agreement. Such discount shall be based
on the volume of the opportunity and shall be at least ten (10%) percent of
AMERICAN COMPUTER's current List Price and will be at least as favorable as
any other discount which AMERICAN COMPUTER may offer to any other parties,
except the Government of the United States, its agencies and branches.
2. AMERICAN COMPUTER will provide AT&T-WORLD SERVICES with any change in its
Price List at least 30 days prior to the price change becoming effective.
No price change will affect any proposals submitted by AT&T-WORLD SERVICES
before receipt of notice of change and AMERICAN COMPUTER agrees to provide
Products/Services in accordance with such proposals.
3. The prices shown in Schedule 2-PRODUCT/SERVICE PRICES at the signing of
this Agreement shall remain in effect at least through December 31, 1991.
6. PAYMENT
For each opportunity the parties will agree on terms of payment. AT&T-WORLD SERVICES shall make its best effort to accommodate the payment requirements of AMERICAN COMPUTER as shown on Schedule 2-PRODUCT/SERVICE PRICES.
7. TITLE
7.1 TITLE IN EQUIPMENT
Upon award AT&T-WORLD SERVICES and AMERICAN COMPUTER will enter into a contract for the Product/Services as jointly proposed to and accepted by the customer.
AMERICAN COMPUTER represents that at the time of sale, title to equipment shall be free from any liens, encumbrances or security interest.
7.2 TITLE TO CUSTOM SOFTWARE
All Software that AMERICAN COMPUTER supplies, acquires and/or develops in connection with the Products/Services, including code recorded in firmware, systems software, routines, subroutines, and the like, will be and remain the property of AMERICAN COMPUTER or its suppliers, both before and after payment of the Products/Services Price.
- 5 -
AMERICAN COMPUTER grants to AT&T-WORLD SERVICES the right to issue Custom Software Licenses under this Agreement for certain of AMERICAN COMPUTER'S software by means of a License in a format based on that of Schedule 3-Custom Software Agreement.
8. LICENSE OF LICENSED PROGRAMS
8.1 GRANT OF LICENSES
Non-transferable and non-exclusive licenses are to be provided to Customers by AT&T-WORLD SERVICES in a format to be provided by AMERICAN COMPUTER for the Licensed Programs necessary for the proper operation of the Products/Services ("the Licensed Programs") subject to the following terms and conditions, provided, however, that if Customer is required to do so it shall execute software license agreements with the appropriate supplier in terms consistent with those in this Agreement.
8.2 USE OF LICENSED PROGRAMS
a. Each license provided under this Agreement authorizes Customer to:
- use the Licensed Program materials in machine readable form on the
Products/Services, within the limits of the sizing considerations
detailed in Schedule 2, and in conjunction therewith to store the
licensed Program materials in, transmit them through or display them on
units associated with such designated Products/Services;
- utilize the Licensed Program materials, in printed form in support of the
use of the Licensed Programs; and/or,
b. Customer shall not use, print, copy or translate the Licensed Program in
whole or in part, unless expressly authorized in this Agreement.
c. Customer shall not reverse assemble or reverse compile the Licensed
Programs in whole or in part.
d. Customer is authorized to use Licensed Programs on:
- backup Products/Services when the designated Products/Services or an
associated unit required for the use of the Licensed Program is
temporarily inoperable until operable status is restored and processing
on the backup equipment is completed; or,
- other Products/Services for assembly or compilation of Licensed Program
materials if the designated Products/Services and its associated units do
not provide the configuration required for assembly or compilation. Such
usage shall not expand the authorized use of the licensed programs.
9. AVAILABILITY OF SPARE PARTS
AMERICAN COMPUTER warrants the availability of necessary spare parts for Products/Services for a period of at least ten (10) years, or as otherwise agreed in writing, after Acceptance of the Products/Services by Customer.
- 6 -
AMERICAN COMPUTER reserves the right to substitute components of like quality and functionality during this period in order to maintain Products/Services system functionality per published specification.
10. INFRINGEMENT OF PATENTS
AMERICAN COMPUTER shall indemnify and save AT&T-WORLD SERVICES harmless from any claims, losses, suits, demands or liens arising from any act of infringement of any patent, trademark, or copyright or any unauthorised use of any trade secret or other proprietary interest by any Product/Service of AMERICAN COMPUTER; provided that AT&T-WORLD SERVICES:
a. shall give AMERICAN COMPUTER immediate written notice of all claims of such
infringement and suits and full opportunity and authority to assume the
sole defense of, and to settle, such suits;
b. shall furnish to AMERICAN COMPUTER, on request, all information and
assistance available to AMERICAN COMPUTER for such defence; and shall
abstain from making any admissions to claimant regarding the claim.
If said item is held to constitute infringement of any patent and its use is enjoined, AMERICAN COMPUTER shall have the options to:
a. Replace the item with a non-infringing one;
b. Procure for Customer the right to continue using said item;
c. Modify the item so that it becomes non-infringing.
AT&T-WORLD SERVICES agrees to indemnify and save harmless AMERICAN COMPUTER from all costs, expenses, liabilities and claims for infringement arising from:
a. Adherence to specifications or drawings which AMERICAN COMPUTER was
directed by AT&T-WORLD SERVICES to follow; or,
b. The manufacture, sale or use of a product furnished hereunder in
combination with another item not furnished by AMERICAN COMPUTER.
11. CONFIDENTIAL INFORMATION
In this Agreement, "Confidential Information" means information regarding a party, its business, personnel, technical or statistical data, or financial information that:
a. is not generally known to the public or to other persons who are not bound
by the obligations to maintain its confidentiality; and/or,
b. derives economic or strategic value, actual or potential, from not being
generally known, or has a character such that the party has a legitimate
interest in preserving its confidential nature.
As a consequence of entering this Agreement or performing the obligations herein, the parties may
- 7 -
have disclosed to them, or they may otherwise have access to, or learn of, Confidential Information of the other.
Each party agrees to hold in strict confidence all Confidential Information of the other that it learns of, or is provided with, and to use such Confidential Information only for the purpose of this Agreement. Neither party will use, copy, or disclose to third parties any Confidential Information of the ...
*End of Preview*
Click the 'Add to Cart' button to download the complete and formatted agreement.