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Channel Reseller Agreement

•  INTERPRETATION

•  In this Agreement including the recitals, the following words shall have the following meanings:

Commencement Date: the date of this Agreement;

Control: the ability to direct the affairs of another whether by virtue of the ownership of shares, contract or otherwise;

Distributor: Caretower Ltd,. Triangle House, 305 – 313 Greens Lanes, Palmers Green, London, N13 4YB

Products: The whole of Omniquad Enterprise products together with any other Enterprise products developed by Omniquad the manufacturer and for which the Distributor has exclusive distribution rights and which the Distributor may permit the Reseller by express notice in writing to promote and sell, plus any other additional products for which Caretower may acquire distribution rights.

Year: the period of 12 months from the Commencement Date and each consecutive period of 12 months thereafter during the period of the Agreement.

•  References to clauses and schedules are to the clauses and schedules to this Agreement.

•  Headings are for convenience only and shall be ignored in interpreting this Agreement.

•  APPOINTMENT

•  The Distributor hereby appoints the Reseller to sell the Products on the terms of this Agreement;

•  For the avoidance of doubt, no right, interest or licence in respect of the Product or any part of the Product is granted to the Reseller other the right to sell the Products referred to in Clause 2.1;

•  The Reseller shall purchase the Products only from the Distributor;

•  The Reseller shall not represent itself as an agent of the Distributor nor Omniquad the manufacturer for any purpose, nor pledge the Distributor's credit or give any condition or warranty or make any repre­sentation on the Distributor's behalf nor Omniquad's behalf or commit the Distributor or Omniquad to any contracts. Further, the Reseller shall not without the Distributor's prior written consent make any promises or guarantees with reference to the Products beyond those contained in the promo­tional material supplied by the Distributor and Omniquad or otherwise incur any liability on behalf of the Distributor or Omniquad.

•  RESELLERS UNDERTAKINGS

The Reseller undertakes and agrees with the Distributor at all times during the term of this Agreement;

•  to use its best endeavours to promote the distribution and sale of the Products and without prejudice to the foregoing, in particular to promote the distribution and sale of the Products to Corporate & SMEs;

•  To contact its business in a manner compatible to all of the Distributor's channel partner policies, promotions and rules of engagement as announce by the distributor from time to time. Reseller agrees to meet all customer delivery requirements;

•  To inform the Distributor immediately of any changes in ownership or control of the Reseller and of any change in its organisation or method of doing business which might affect the performance of the Reseller duties in this Agreement. The Distributor reserves the right to terminate this agreement if control of The Reseller is taken over by a person or organisation which may be a direct competitor of the Omniquad range of products.

•  SUPPLY OF PRODUCTS

•  No later than 30 days from the Commencement Date and every three months thereafter in each Year, the Reseller shall inform the Distributor in writing of its forecast of the number of each type of the Products which it expects to purchase from the Distributor for delivery during the ensuing 3 (three) month period commencing on the first day of the month following the latest date for issue of the forecast set out above ;

•  The Distributor undertakes to use all reasonable endeavours to meet all orders for the Products forwarded to the Distributor by the Reseller in accordance with the Distributor's terms of delivery and terms and conditions of sale.

•  DISTRIBUTOR'S UNDERTAKINGS

The Distributor undertakes;

•  to provide any information and support as may reasonably be requested by the Reseller to enable it properly and efficiently to discharge its duties under this Agreement;

•  to supply the Products only to the Reseller for resale;

•  to approve or reject any promotional information or material submitted by the Reseller within 14 days of receipt;

•  The Distributor shall provide the first line support to the Reseller. The Distributor will provide the training and support to the reseller. The Reseller will make available the necessary resources to train, assist and provide timely response to questions and issues that arise. All training and support provided by The Distributor will be given at The Distributors offices.

•  RISK/TITLE

•  The Goods are at the risk of the Reseller from the time of delivery.

•  Ownership of the Goods shall not pass to the Reseller until the Distributor has received in full (in cash or cleared funds) all sums due to it in respect of:

6.2.1 the Goods; and

•  all other sums which are or which become due to the Distributor from the Reseller on any account.

Until ownership of the Goods has passed to the Reseller, the Reseller must:

6.2.3 hold the Goods on a fiduciary basis as the Distributor's bailee;

6.2.4 store the Goods in such a way that they remain readily identifiable as the Distributor's property;

6.2.5 not destroy, deface or obscure any identifying mark or packaging on or relating to the Goods;

6.2.6 maintain the Goods in satisfactory condition and

6.2.7 not authorise any licencing except of that issued by the Distributor and or product manufacturer.

•  The Reseller may resell the Goods before ownership has passed to it solely on the following conditions:

6.3.1 any sale shall be effected in the ordinary course of the Reseller's business at terms consistant with the trading terms betwween The Distributor and The Reseller

•  any such sale shall be a sale of the Distributor's property on the Reseller's own behalf and the Reseller shall deal as principal when making such a sale; and

•  Goods shall remain as Distributor's property until paid for in full.

•  The Reseller's right to possession of the Goods shall terminate immediately if:

6.4.1 the Reseller has a bankruptcy order made against him or makes an arrangement or composition with his creditors, or otherwise takes the benefit of any Act for the time being in force for the relief of insolvent debtors, or (being a body corporate) convenes a meeting of creditors (whether formal or informal), or enters into liquidation (whether voluntary or compulsory) except a solvent voluntary liquidation for the purpose only of reconstruction or amalgamation, or has a receiver and/or manager, administrator or administrative receiver appointed of its undertaking or any part thereof, or a resolution is passed or a petition presented to any court for the winding up of the Reseller or for the granting of an administration order in respect of the Reseller, or any proceedings are commenced relating to the insolvency or possible insolvency of the Reseller; or

6.4.2 the Reseller suffers or allows any execution, whether legal or equitable, to be levied on his/its property or obtained against him/it, or fails to observe/perform any of his/its obligations under the Contract or any other contract between the Distributor and the Reseller or is unable to pay its debts within the meaning of section 123 of the Insolvency Act 1986 or the Reseller ceases to trade; or

6.4.3 the Reseller encumbers or in any way charges any of the Goods.

•  The Distributor shall be entitled to recover payment for the Goods notwithstanding that ownership of any of the Goods has not passed from the Distributor.

•  PRICES AND PAYMENT

•  The prices to be paid by the Reseller to the Distributor for the Products are to be as per the discount levels according to the status of The Reseller as per the Channel Partner Reseller accreditation program, such discounts will be based on the Distributor's list prices as established by the Distributor from time to time, without set intervals. Such price list prices will become in effect the first day of the next month following notification date to reseller.

•  The renewal prices to be paid by the Reseller to the Distributor will be at the same discount level as per reseller accreditation status and based on the current Distributor's list price providing the original sale belongs to the Reseller. Any renewals from sales not originally generated (introduced to The Distributor) by the Reseller will only be entitled to a non-encumber discount from the current Distributor's list price. Non-encumber reseller discounts will be as per level set by Caretower for the Channel Partner Resellers. Non encumber discounts may change from time to time at no set intervals and will become in effect the first day of the next month following notification date to reseller.

•  The (%) percentage discount of the Distributor's list prices granted to the Reseller is subject to The Reseller's accreditation status gained or granted as per the Distributor's Channel Partner Accreditation program requirements. The Distributor reserves the right to withdraw accreditation level granted to a Reseller and accordingly change the discount levels granted to the Reseller without any prior notice.

•  In the event of the Reseller failing to place a minimum order value as per accreditation status requirements within the first 12 (twelve) months of this agreement, the Distributor reserves the right to renegotiate the accreditation status and the discount percentage.

•  The Distributor may from time to time provide a further rebate incentive discounts to each Reseller at its own discretion. The distributor reserves the right to offer various forms of incentives directly to each Reseller's sales employees as per their performance in the selling of the distributor's products on promotion.

•  The Distributor will endeavour to give the Reseller a minimum of seven days notice of any rises in the prices for the Products;

•  Any and all expenses, costs and charges incurred by the Reseller in the perform­ance of its obligations under this Agreement shall be paid by the Reseller unless the Distributor has expressly agreed beforehand in writing to pay such expenses, costs and charges;

•  The Reseller shall pay the full amount invoiced to it by the Distributor in pounds ster­ling within 30 days of the date of invoice;

•  The Reseller shall not be entitled by reason of any set-off, counter-claim, abate­ment, or other similar deduction to withhold payment of any amount due to the Distributor, except for outstanding credit notes for faulty/mint returns providing the credit notes relate to the same accounting period and provided that a returns/cancellation authorisation has been approved in writing by one of The Distributor's acting directors;

•  Interest shall be chargeable on any amounts overdue at the rate of 4% above the base rate of Barclays Bank PLC as applying from time to time to run from the due date for payment until receipt by the Distributor of the full amount whether or not after judgment and without prejudice to any other right or remedy of the Distributor;

•  ADVERTISING AND PROMOTION

•  The Reseller shall:

•  be responsible for it's own advertising and promotion of the Products in the market;

•  be responsible for the advertising and promotion of the Products to its clients;

•  in respect of advertising and promotion carried out pursuant to Clause 8.1(c) the Reseller shall observe all directions and instructions given to it by the Distributor in relation to promotion and advertisement of the Products, and shall not make any written statement as to the quality or manufacture of the Products without the prior written approval of the Distributor.

•  The Distributor shall provide the Reseller with information on the advertising and promotion carried out by the Distributor and shall supply such quantities of available promotional and advertising material, as the Reseller shall reasonably request at the cost of the Reseller except in the cases where The Distributor will offer promotional material free of charge.

•  CONDITIONS OF SALE

•  The Distributor's Conditions of Sale in force from time to time shall apply to all sales by the Distributor to the Reseller under this Agreement. If there is any inconsistency between the Conditions of Sale and the terms of this Agreement, the latter shall prevail.

•  INDUSTRIAL AND INTELLECTUAL PROPERTY RIGHTS

•  The Reseller expressly recognises that all rights, title and interest in the intellectual property comprised in the trade names, brands, logos, holograms and other distinguishing marks that appear in the Components and Finished Products which form the subject matter of this Agreement vest entirely on Omniquad or in third parties that have authorised Omniquad to use them;

•  The Reseller shall not apply for any type of registration of the rights referred to in Clause 10.1 in its own name or in that of third parties;

•  The Reseller shall not use the rights referred to in Clause 10.1 in any manner (including the use of same as a domain name), save under the terms of this Agreement or otherwise with the express authorisation of the Distributor;

•  The Reseller undertakes not to harm, discredit or by any other means damage the image and prestige enjoyed by the name, the brand and the products and services of Omniquad or the Distributor. In particular, the Reseller may not alter or modify the contents, the external appearance, the components or any of the elements of the Products, and may not, consequently, hide or conceal in any form the brands, anagram, designs and other distinguishing and identifying marks of the products and/or services of Omniquad or the Distributor;

•  The Reseller expressly recognises The Distributor's or the manufacturer's ( as it may apply) ownership of all rights of intellectual property deriving from the Products. Under no circumstances may this Agreement be taken or interpreted to grant the assignment or transmission of ownership in favour of the Reseller of the aforementioned intellectual property rights;

•  The Reseller undertakes not to perform any act that might harm the rights referred to in Clause 10.1, and other technical operating information owned The Distributor's or the Manufacturer ( as it may apply), and to keep the Distributor informed of any attack, imitation or falsification thereof which may be brought to its attention, and of any act of unlawful or unfair competition that may occur, providing all the assistance and collaboration necessary in order for said rights to enjoy due protection.

•  RECORDS AND REGISTRATION

•  The Reseller undertakes to maintain appropriate up-to-date and accurate records to enable the immediate recall of any batches of the Products or any of them from the retail and/or wholesale markets.

•  The Reseller shall, at the Distributor's cost, give such assistance as the Distributor shall require for the purpose of recalling as a matter of urgency any quantities of the Products or any of them from the retail and/or wholesale market;

•  The Reseller shall ensure that the end user is aware of the correct registration procedures.

•  DURATION AND TERMINATION

•  This Agreement shall come into effect on the Commencement Date and, subject to clauses 12.2 and 15.2 , shall continue in force for an initial term of 1 Year and indefinitely thereafter until terminated by either party giving not less than one months' prior written notice to expire on or after the expiry date of the initial term;

•  Without prejudice to any other rights to which it may be entitled, either party may give notice in writing to the other terminating this Agreement with immediate effect if:

•  the other party commits any material breach of any of the terms of this Agreement and (if such a breach is remediable) fails to remedy that breach within 30 days of that party being notified of the breach;

•  if an order is made or a resolution is passed for the winding up of the other party or if an order is made for the appointment of an administrator to manage the affairs, business and property of the other party or if a receiver is appointed of any of the other party's assets or undertaking or if circumstances arise which entitle the Court or a creditor to appoint a receiver or manager or which entitle the Court to make a winding-up order or if the other party takes or suffers any similar or analogous action in consequence of debt;

•  either party purports to assign its rights or obligations under this Agreement.

•  EFFECTS OF TERMINATION

•  Termination of this Agreement however caused shall be without prejudice to any rights or liabilities accrued at the date of termination;

•  Upon termination:

•  The Distributor shall be entitled to cancel all orders placed by the Reseller prior to the termination date, whether or not the Distributor has accepted such orders, with­out incurring any liability of whatsoever nature to the Reseller.

•  CONFIDENTIALITY

•  Each party agrees and undertakes that during the term of this Agreement and thereafter it will keep confidential and will not use for its own purposes nor without the prior written consent of the other party disclose to any third party all information of a confi­dential nature (including trade secrets and information of commercial value) which may become known to that party from the other party (“confidential information”) unless the information is public knowledge or already known to that party at the time of disclosure or subsequently becomes public knowledge other than by breach of this Agreement or subsequently comes lawfully into the possession of that party from a third party;

•  To the extent necessary to implement the provisions of this Agreement each party may disclose the confidential information to those of its employees as may be reasonably necessary or desirable provided that before any such disclosure each party shall make those employees aware of its obligations of confidentiality under this Agreement and shall at all times procure compliance by those employees with them.

•  FORCE MAJEURE

•  The obligations of each party under this Agreement shall be suspended during the period and to the extent that that party is prevented or hindered from complying with them by any cause beyond its reasonable control including (insofar as beyond such control but without prejudice to the generality of the foregoing expression) strikes, lock-outs, labour disputes, act of God, war, riot, civil commotion, malicious damage, compliance with any law or governmental order, rule, regulation or direction, acci­dent, breakdown of plant or machinery, fire, flood, storm, difficulty or increased expense in obtaining workmen, materials, goods or raw materials in connection with the performance of this Agreement;

•  In the event of either party being so hindered or prevented, the party concerned shall give notice of suspension as soon as reasonably possible to the other party stating the date and extent of the suspension and its cause and the omission to give such notice shall forfeit the rights of that party to claim suspension. Any party whose obligations have been suspended as aforesaid shall resume the performance of those obligations as soon as reasonably possible after the removal of the cause and shall so notify the other party. In the event that the cause continues for more than six months either party may terminate this Agreement on 30 days notice.

•  ENTIRE AGREEMENT

•  This Agreement constitutes the entire understanding between the parties with respect to the subject matter of this Agreement and supersedes all prior agreements, negotia­tions and discussions between the parties relating to it.

•  AMENDMENTS

•  Save as expressly provided in this Agreement, no amendment or variation of this Agreement shall be effective unless in writing and signed by a duly authorised repre­sentative of each of the parties to it.

•  ASSIGNMENT

•  Neither party shall without the prior written consent of the other party assign, transfer, charge or deal in any other manner with this Agreement or its rights under it or part of it, or purport to do any of the same, nor sub-contract any or all of its obligations under this Agreement. Permission will not be reasonably withheld.

•  FREEDOM TO CONTRACT

•  The parties declare that they each have the right, power and authority and have taken all action necessary to execute and deliver, and to exercise their rights and perform their obligations under this Agreement.

•  WAIVER

•  The failure of a party to exercise or enforce any right under this Agreement shall not be deemed to be a waiver of that right nor operate to bar the exercise or enforcement of it at any time or times thereafter.

•  SEVERABILITY

•  If any part of this Agreement becomes invalid, illegal or unenforceable the parties shall in such an event negotiate in good faith in order to agree the terms of a mutu­ally satisfactory provision to be substituted for the invalid, illegal or unenforcea­ble provision which as nearly as possible validly gives effect to their intentions as expressed in this Agreement. Failure to agree on such a provision within six months of commencement of those negotiations shall result in automatic termina­tion of this Agreement. The obligations of the parties under any invalid, illegal or unenforceable provision of the Agreement shall be suspended during such a nego­tiation.

•  NOTICES

•  Any notice required to be given pursuant to this Agreement shall be in writing and shall be given by delivering the notice by hand at, or by sending the same by prepaid first class post (airmail if to an address outside the country of posting) to the address of the relevant party set out in this Agreement or such other address as either party notifies to the other from time to time. Any notice given according to the above proce­dure shall be deemed to have been given at the time of delivery (if delivered by hand) and when received (if sent by post).

•  RIGHTS OF THIRD PARTIES

A person who is not a party to this Agreement has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any term of this Agreement but this does not affect any right or remedy of a third party which exists or is available apart from that Act.

•  GOVERNING LAW AND JURISDICTION

•  This Agreement shall be governed by and construed in accordance with English law and each party hereby irrevocably submits to the jurisdiction of the English Courts.

This Agreement has been entered into on the date stated at the beginning of this Agreement.