CONFIDENTIAL TREATMENT
AUTHORIZED SALES AGENT AGREEMENT
AGREEMENT made this 16th day of February 1996, by and between MCI TELECOMMUNICATIONS CORPORATION ("MCI"), 1801 Pennsylvania Avenue, N.W., Washington, D.C. 20006, a Delaware corporation, and SNYDER COMMUNICATIONS, L.P. ("Agent"), with principal offices located at 6903 Rockledge Drive, Bethesda, MD
WHEREAS, MCI wishes to expand all commercial entities access to __________ __*______________, ______________*___________, and ____________*_______________ _________________________ as described in __________________*_________________, any state tariffs, and any amendments thereto or successor tariffs (together, the "Tariff"); and _________________*_________________, __________*____________ ______________ and ______________*______________ (the "MCI Services").
WHEREAS, Agent desires to market the MCI Services set forth herein as an independent Authorized Sales Agent of MCI;
NOW, THEREFORE, the parties agree as follows:
1. Grant of Agency.
Subject to the terms of this Agreement, Agent is hereby appointed an
independent agent authorized to solicit in the Territory (as defined in
Exhibit C), on behalf of MCI, commercial customers (as distinguished from
residential customers) for MCI Services.
2. ___________________________*__________________________.
a. The _________________________*______________________________ has
three (3) potential applications. The first is the
_______________________*_______________________, which is
________________________________________________________. The
second is the _____________________________*_________________________
which is ____________________________*_______________________________
_____________________________. The third is the ____________________
_______________________________*_____________________________________
which is _____________________________*______________________________
________________________________.
b. With respect to ___________________________*________________________,
Agent shall not be required to comply with the provisions
contained in Section 15.a., b. or c., Non-Competition, of this
3. Definitions.
a. Account. For purposes of this Agreement, Account shall mean a
commercial entity which purchases MCI Services (which services are
identified in the first WHEREAS clause, above) in response to
solicitation by Agent.
* Text deleted pursuant to an application for Confidential Treatment under Rule 406 of the Securities Act of 1933 and filed separately with the Securities and Exchange Commission. CONFIDENTIAL TREATMENT
b. ___________________________________*__________________________________
c. ___________________________________*__________________________________
d. ___________________________________*__________________________________
e. ___________________________________*__________________________________
f. ___________________________________*__________________________________
g. ___________________________________*__________________________________
* Text deleted pursuant to an application for Confidential Treatment under Rule 406 of the Securities Act of 1933 and filed separately with the Securities and Exchange Commission.
-- 2 -- CONFIDENTIAL TREATMENT
h. ___________________________________*__________________________________
i. ___________________________________*__________________________________
j. ___________________________________*__________________________________
4. Commitment.
a. Agent agrees that during the Term of this Agreement the ______*______
________ in each month shall be _____________________________________
_____________________________________*_______________________________
__________________________________ as a material condition of this
Month of Term One *
----------------- ---------------
1 - 11
Month of Terms Two
Through Five
--------------------
1 - 12
b. Agent agrees that _____________________*____________________ of the
________________________*__________________________ shall derive
from revenue of the ___________________*____________________. If
during any month of the Term of this Agreement Agent fails to reach
the _______________________________*______________________*___________
under this Section 4(b), then MCI may, at its discretion, terminate
this Agreement.
c. Agent agrees that an amount ______________________*__________________
of the ______________________*____________________ sold by Agent shall
derive from the sale of MCI's ___________*____________. If during
any six (6) month period of the Term of this Agreement Agent fails
to reach the ______________*__________________ under this
Section 4(c), then MCI may, at its discretion, terminate this
* Text deleted pursuant to an application for Confidential Treatment under Rule 406 of the Securities Act of 1933 and filed separately with the Securities and Exchange Commission.
-- 3 -- CONFIDENTIAL TREATMENT
5. Sales Agency.
a. Agent hereby accepts the appointment by MCI as its authorized
representative to solicit orders from commercial customers for MCI
Services subject to the terms and conditions of this Agreement.
b. Neither ____________*___________ nor commission shall be payable on
_________________________*___________________________ derived
from any person or entity that is an ______________*_____________ or
____________*____________ account.
c. Upfront Payment.
(1) Subject to Sections 5.c.(2), 5.c.(3), 5.c.(4), 5.c.(5) and
5.c.(6), below, MCI shall pay Agent _____________*______________
for each ___________*_________ and each ____________*___________
which receives either _____________*______________ or _____*____
(__________________*__________________ and ____________*_______),
that is installed in MCI's system and approved by MCI (which
approval shall be according to criteria developed by MCI and
which approval may be determined after installation) ("Approved
and Installed"), and that is designated by customer to be changed
to MCI as the Primary Interexchange Carrier ("PIC"), which PIC
designation is ______________*_______________. MCI's systems
that measure PIC status and disconnects will be operated with
the same degree of efficiency as used for MCI's internal orders.
MCI is not responsible for attempted PICs for which no response
is received, or if rejection is received from the customer, which
MCI believes may total ____________*____________of all submitted
______*_____. The ___________*____________ for each ____*______
number and ___________*___________ receiving ________*__________
shall be ________________________*_____________________________;
the __________*__________ for each ____________*________________
______________ and __________*___________ receiving _____*______
________ under a _______________*_________________ agreement
shall be _______________________*________________________.
(2) If (i) a ________________*________________ or__________*_________
________ has ___*____ within the first ninety (90) days after
such _________________*________________ was installed or _______
_________*___________ was _______________*______________ but
the charges for such __*___ are later ____________*____________;
or, (ii) a ____________________*_____________________ or
______________*_______________ was ________________*____________
such confirmation is not received within forty-five (45) days
of payment of the ______________*____________ for such _________
______*______, then MCI will either deduct the ________*________
____________ MCI paid Agent for
* Text deleted pursuant to an application for Confidential Treatment under Rule 406 of the Securities Act of 1933 and filed separately with the Securities and Exchange Commission.
-- 4 -- CONFIDENTIAL TREATMENT
such _______________*________________ or __________*____________
from the next consecutive commission payments or if on the day
the last commission is due and payable, MCI has not fully
deducted the __________*__________ MCI paid Agent for such _____
______________*________________ or ______________*_____________,
on that day Agent shall pay MCI any amounts owed.
(3) Notwithstanding Section 5.c.(1), MCI will not make an __________
_______*________ on any _________________*______________________
or ________________*______________. If Agent receives an ______
___________*_____________ on any such ___*____, Agent shall
repay to MCI such ___________________*____________________
(4) Notwithstanding Section 5.c.(1) , MCI will not make an _________
_______*_________ on any __________________*____________________
or ___________* __________ converted to MCI from _______________
_______________*_________________ (formerly know as ______*___).
If Agent receives an ____________*______________ on any
such ___*___, Agent shall repay to MCI the __________*__________
__________ received.
(5) Notwithstanding Section 5.c.(1), MCI will pay ________*_________
on only _______*________ domestic _____________*________________
_________ per ___*___ and ______*______ international __________
_________*____________ per __*__ when such ___*__ are approved
and installed in MCI's system. If Agent receives an ___________
_______*_______ on more than __*__ such number per __*__, Agent
shall repay to MCI the excess ________________*_________________
(6) Notwithstanding Section 5.c.(1), MCI will not pay ______________
______*_________ on ________*_______ and ____________*__________
_______ and features _________________*_________________.
(7) MCI shall pay Agent a ___________________*__________________
for each _________________*_________________ and _______*_______
which received ________________*_____________________ during
the period of November 1, 1995 through December 31, 1995
pursuant to the MCI/Agent ASA Agreement executed on June 27,
1994 ("Old MCI/Agent ASA"). Said retroactive payment shall
equal the ______________________*_______________________________
____________________________________________ set forth in this
Agreement minus the ________________________*___________________
_______________ set forth in the Agent's Old MCI/Agent ASA.
d. Estimated Payment.
_________________________________*___________________________________
* Text deleted pursuant to an application for Confidential Treatment under Rule 406 of the Securities Act of 1933 and filed separately with the Securities and Exchange Commission.
-- 5 -- CONFIDENTIAL TREATMENT
_________________________________*_______________________________________
_________________________________*_______________________________________
_________________________________*_______________________________________
e. Non-Long Distance Services.
Revenues attributable to ____________________*_______________________
shall count towards the Agent's __________________*__________________
_______________________, however, revenues from _____________________
______________*______________ shall not be commissionable.
f. ANI Underutilization
Agent's ANI Average must equal or exceed ____________________________
_________________________________*__________________________________.
If Agent's ANI Average is more than _________________________________
________________*___________________________ but less than the
_____________*______________, then MCI may, at its discretion
terminate or renegotiate this Agreement at any time. Furthermore,
if Agent's ___*___ Average is less than ______________*______________
___________, then MCI may, at its discretion terminate this
Agreement at any time and Agent shall pay MCI ___________*___________
__ that Agent falls short of the _______________*___________________.
MCI shall measure compliance with the ____________*__________________
restriction on a semi-annual basis, with the calculation being done
as soon as the data is available for the preceding calendar
semi-annual period.
* Text deleted pursuant to an application for Confidential Treatment under Rule 406 of the Securities Act of 1933 and filed separately with the Securities and Exchange Commission.
-- 6 -- CONFIDENTIAL TREATMENT
g. When an Account has one or more invoices ninety (90) days or more
past due, MCI may declare the amounts owed from such Accounts to be
bad debt. MCI shall calculate the amount of bad debt generated by
Agent's Accounts from time to time, but in no event more often than
once every three (3) months ("Quarter"). In the event that bad debt
from sales solicited by Agent equals or exceeds a bad debt limit,
which limit shall initially be five percent (5%) of the average
monthly Total Revenue for the Quarter prior to the date of bad debt
calculation, MCI may, at its discretion, deduct from any subsequent
commission payments to Agent commissions paid on bad debt charged
off in the Quarter prior to the date of calculation. _______________
_____________________________________________________________________
________________________________*____________________________________
_____________________________________________________________________
________________________________________________. MCI may, in its
reasonable discretion and from time to time, change the amount of
the bad debt limit, though MCI shall not change the bad debt limit
more than two (2) times in a calendar year. No failure or refusal
by MCI to offset any amount of bad debt shall be deemed a waiver or
forfeiture of any right of MCI to offset such amounts at a later
As an example, if in Quarter One, ___________________________________
_____________________________________________________________________
________________________________*____________________________________
_____________________________________________________________________
________________________________ ...
*End of Preview*
Click the 'Add to Cart' button to download the complete and formatted agreement.