I TRACK INC
SB-1/A, EX-10, 2001-01-17
COMPUTER INTEGRATED SYSTEMS DESIGN
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AVL Information Systems, Inc.
2323 Passingham Dr.
Sarnia, Ontario  Canada  N7T 7H4
Web Site: www.avlinfosys.com
Email: [email protected]



                         AVL INFORMATION SYSTEMS LIMITED
                                  INTERNATIONAL
                             DISTRIBUTION AGREEMENT

This agreement entered into effective this 7th day of January, 2001, between AVL
INFORMATION SYSTEMS, LTD., (AVLIS), a Canadian Corporation,  and "I-Track" Inc.,
a Nevada  Corporation,  operating  in the  country  of United  States of America
hereinafter referred to as "Distributor".

         Whereas, AVLIS possesses certain expertise and experience in Remote Hub
         GPS /AVL hardware and sensors and is a producer of such products, and

         Whereas,  the  DISTRIBUTOR  desires to obtain the rights to  distribute
         AVLIS products and,

         Whereas,  AVLIS desires to establish the DISTRIBUTOR as a non-exclusive
         distributor of such products,

         Therefore,  in consideration of the mutual covenants  contained herein,
it is understood and agreed as follows:

SCOPE
1.1  AVLIS  agrees to  manufacture  and/or by other  means  secure  and sell the
     component(s)  required to create or help create an AVL solution  hereto and
     incorporated  herein.  Such products are hereinafter  referred to as "AVLIS
     Products" or "Product(s)"

1.2  The DISTRIBUTOR shall have the non-exclusive right to market and distribute
     the AVLIS Products "World - Wide. ("the Territory").



<PAGE>

AVLIS RESPONSIBILITIES

2.1  During the entire term of this  Agreement,  including any renewal years, in
     accordance with the  specifications  set forth in Addendum1  hereto,  AVLIS
     shall  manufacture  and  deliver  for the  Distributor,  AVLIS  Products as
     provided  herein.  Current  prices  for the AVLIS  Products  are  listed in
     Addendum  2. Such  prices may be changed by AVLIS only upon sixty (60) days
     prior written notice to the  Distributor,  but such changes shall not apply
     to any valid  outstanding  order from the Distributor  which was issued and
     accepted by AVLIS prior to receipt of the notice of such changes in prices.


2.2  AVLIS Products delivered under this Agreement shall be delivered subject to
     the Terms and  Conditions  of  Purchase  attached  hereto as Addendum 4 and
     incorporated  herein.  The  terms  and  conditions  of this  Agreement  and
     Addendum 4 shall  supersede the terms and  conditions of any purchase order
     from the  Distributor or any other  preprinted form of either party. In the
     event of conflict,  the terms and conditions of this  Agreement  shall take
     precedence  over the terms and  conditions  set  forth in  Addendum  4. The
     Distributor shall place orders with AVLIS in accordance with AVLIS standard
     lead times in advance of requested  delivery dates. All deliveries shall be
     made by AVLIS as set forth in each Distributor  purchase order placed under
     this Agreement. Upon request by the Distributor,  AVLIS shall provide "Drop
     Shipment" of the Products directly to the Distributor's customer,  provided
     Distributor  has obtained all the correct  export  information  and fees as
     well as appropriate payment documents.


                2.2.1    Payment terms shall be as follows:
                           - Net 30 days, payable  in U.S. dollars to the  AVLIS
                           account  with  the  Toronto  Dominion  Bank,  Sarnia,
                           Ontario, Canada.

2.3  AVLIS shall repair AVLIS Products in accordance with the warranty specified
     in  Addendum 4. The  warranty  period  shall  begin upon  shipment of AVLIS
     Products  by AVLIS  or the  Distributor,  whichever  is  applicable  to the
     customer. AVLIS shall provide an extended warranty and non-warranty repairs
     at its  standard  published  rates  listed in  Addendum 5. AVLIS shall give
     thirty (30) days written notice prior to  implementing  any change in labor
     rates.

     If at any time during the term of this Agreement or any extension  thereof,
     AVLIS  discontinues  manufacturing  and supplying all or any AVLIS Products
     listed in Addendum1,  Distributor  shall have an  opportunity to purchase a
     reasonable  stock of spare parts and  documentation  for AVLIS  Products to
     meet the requirements of the  Distributor's  customers.  AVLIS will issue a
     license to the Distributor  for the  technology,  necessary to maintain and
     repair the Products defined in section 2.1 of the Agreement.

                                                                              2

<PAGE>

2.5  AVLIS shall inform the  Distributor of any  modifications,  improvements or
     changes  in  hardware  or  software  components  which  can,  or  will,  be
     incorporated by AVLIS in Products.

2.6  AVLIS shall provide Distributor with accurate drawings,  schematics and all
     available AVLIS  documentation of the Products in order for the Distributor
     to provide  competent  repair and maintenance  services to customers.  Such
     services may be performed by  subcontractors  to  Distributor  in the event
     that AVLIS is unable or desires not to perform such services  utilizing the
     said  AVLIS  technical  information  solely  for the  limited  purposes  of
     performing  such  services  or  procurement  of  parts  and  components  in
     connection  with the  performance of such services or other  obligations of
     the Distributor to its customers.

2.7  AVLIS shall provide  training at AVLIS  facilities for the  Distributor and
     subcontractors'  services and sales personnel at the period  beginning with
     the signing of this Agreement,  and for AVLIS Products or customized  AVLIS
     Products  throughout the life of this Agreement.  Subsequent to the initial
     training,  and at a time to be agreed upon between the parties,  continuous
     training to the  Distributor  as needed to support the  installed  customer
     base and potential new sales customers.

2.8  For the life of this Agreement,  AVLIS will support the Distributor's sales
     efforts (quoting procedures and product familiarity,  technical information
     and system applications, customer feasibility testing and seminar support).
     AVLIS sales and service personnel shall provide  continuous  support to the
     Distributor personnel for matters relating to custom quotes, special orders
     and  requests,  troubleshooting  hardware and  software  and other  matters
     respecting the needs of customers.

2.9  AVLIS shall supply  Distributor  with  reasonable  quantities of sales aids
     produced  by  AVLIS  in  connection  with the  Products  and all  technical
     information necessary in AVLIS' judgment for sales purposes. All sales aids
     shall be in English. Any translation thereof shall be the responsibility of
     and paid for by the Distributor. It is the Distributor's  responsibility to
     lease  a demo  unit  from  AVLIS  for the  purposes  of  demonstration  for
     customers.  A separate lease  agreement will be entered into for the use of
     said equipment.


DISTRIBUTOR RESPONSIBILITIES

3.1  Distributor  shall be free to  determine  and later  adjust  the prices and
     pricing  arrangements within the Territory for the Products.  Nevertheless,
     Distributor  agrees to use best efforts to offer Products for sale so as to
     be  competitive  in terms of price,  delivery,  quality,  and services with
     similar products sold by Distributor or others in the Territory.


                                                                             3

<PAGE>

3.2  During  the  term of this  Agreement,  the  Distributor  will  use its best
     efforts to promote,  maintain  and increase the sale of the Products in the
     Territory  by all  usual  and  ethical  means,  including  advertising  and
     personal solicitation of customers,  demonstration of models, processing of
     orders and customer  complaints,  and  identification  of  Distributor as a
     source of Products in business listings,  trade publications,  directories,
     stationery  and  advertisements  and  through   distribution  of  technical
     literature, catalogues, brochures, and advertising matter issued by AVLIS.

3.3  Distributor  represents  and  warrants  that  it has  adequate  facilities,
     equipment, means of transportation,  sales force, distribution capabilities
     and business  office and clerical  staff to acquire and to promote the sale
     of Products and to perform the services required by this Agreement.

3.4  Distributor  shall, at all times,  use its best efforts to promote the sale
     of  the  Products  covered  by  this  Agreement  through  all  channels  of
     distribution  in the  Territory.  Distributor  will use its best efforts to
     sell those Products aggressively and to see that customer service is always
     maintained at the highest levels.

3.5  This  Agreement  requires  Distributor  to remain a sound  and  financially
     viable entity. To that end, Distributor hereby promises that it shall:
           a) maintain and employ such  working  capital and net worth as may be
              required for Distributor to properly and effectively carry out the
              performance called for under this Agreement.
           b) furnish AVLIS with financial statements annually

3.6  Distributor  will keep itself and AVLIS  informed of all  conditions of the
     market in the Territory, including competitive prices and trade statistics,
     and  will  furnish  AVLIS  with  reports,  market  conditions,   and  other
     information  relating to the Territory,  including listings of existing and
     prospective customers.

3.7  Distributor  shall be  responsible  for  coordination  and obtaining of all
     import licenses  through the end user customer.  Distributor is responsible
     for  payment of all taxes on  imports  (to  include,  sales,  use,  import,
     duties,  etc.).  Distributor is also responsible for all shipping,  packing
     and insurance charges associated with any order.


Distributor  agrees at all  times to  comply  with all  United  States  laws and
regulations as well as International  Trade Laws, as they may exist from time to
time,  regarding  export licenses or the control or regulation of exportation or
re-exportation  of products or technical  data sold or supplied to  Distributor.
Distributor also agrees to abide by the United States Foreign Corrupt  Practices
Act.

                                                                              4

<PAGE>

RELATIONSHIP OF THE PARTIES

4.1  The parties shall act as independent  contractors,  and neither party shall
     act as agent for, or partner of the other,  nor be  authorized to incur any
     liability  or to  represent  or make  commitments  on  behalf  of the other
     (except as provided herein), and the employees or sales  representatives of
     one shall not be  deemed  the  employees  or sales  representatives  of the
     other.


4.2  Nothing  in this  Agreement  shall be deemed to  constitute,  create,  give
     effect to or otherwise  recognize a joint  venture,  partnership  or formal
     business  entity of any kind, and the rights and obligations of the parties
     shall be limited to those  expressly set forth herein.  Neither party shall
     have any liability or obligation to the other except as expressly  provided
     herein.

DURATION AND TERMINATION

5.1  When signed by both parties, this Agreement  shall become  effective on the
     date first  above  written  and  continue  in force and effect for four (4)
     years with an automatic option  to renew for  an additional  four (4) years
     without notice.  Either  party  hereto  may  terminate  this  Agreement  by
     giving sixty (60) days written notice to the other party.

5.2  Such  termination  shall not affect orders for the AVLIS Products placed by
     the  Distributor  prior  to  termination  of this  Agreement,  nor  AVLIS'S
     obligation to provide  Products to support any valid order  outstanding  to
     the Distributor's customers for AVLIS Products.

INDEMNIFICATION

6.1  Each party shall defend, save the other harmless from and against and shall
     indemnify the other for any liability,  loss, costs,  expenses,  or damages
     caused by reason of its sole negligent acts or omissions.  The indemnifying
     party  shall  defend  said  action  at its own  expense  and  shall pay and
     discharge  any judgment  that may be rendered in any such  action.  If such
     indemnifying  party  fails or  neglects  to so  defend,  the party sued may
     defend the same and any expenses,  including  reasonable  attorneys'  fees,
     which it may be required to pay or incur in  defending  said action and the
     amount of any  judgment  which it may be  required to pay shall be promptly
     reimbursed upon demand.


6.2 AVLIS shall pay all costs and damages,  including  without  limitation court
costs,  attorneys'  fees and exemplary  damages finally awarded in any suit by a
third party against the  Distributor or its customers to the extent based upon a
finding that the design or  construction  of the AVLIS  Products,  as furnished,
infringes the proprietary rights (including patent rights, copyrights, and trade
secrets in the United States) of such third party, except infringement occurring
as a result of incorporating a specific design or


                                                                              5

<PAGE>

modification at the request of the Distributor or based on its  incorporation or
use in conjunction with other equipment,  provided that the Distributor promptly
notifies AVLIS of any allegation of  infringement,  and AVLIS is given the right
at its expense to settle such charge and to defend or control the defense of any
suit based on such charge.

LIMITATION OF LIABILITY

7.0  In no event shall  AVLIS or the  Distributor  be liable to each other,  nor
     shall AVLIS be liable to any third  party end user,  in contract or in tort
     or under  any  other  legal  theory,  for  incidental,  indirect,  special,
     punitive, or consequential damages, including,  without limitation, loss of
     use,  loss of  revenue,  or  loss of  profit,  even  if such  damages  were
     foreseeable  or resulted  from the breach of a  fundamental  term  therein,
     regardless  of  whether  it was  informed  about  the  possibility  of such
     damages.  AVLIS  liability  for damages is limited to the direct  legal and
     natural consequence of the performance of AVLIS Products and labor which is
     limited to the amount actually paid to AVLIS by the Distributor.  Except as
     otherwise provided by applicable law, no claim, regardless of form, arising
     out of or in  connection  with this  Agreement  may be brought by the buyer
     more than two (2) years after the cause of such action has occurred.

PROPRIETARY INFORMATION

8.1  Preparation and submission of proposals or orders, including the conduct of
     negotiations,  may require the exchange of data and information  considered
     proprietary to the parties,  To the extent that such data or information is
     so identified in writing by the  disclosing  party at the time of exchange,
     the receiving party agrees to hold such proprietary data and information in
     confidence for a period of three (3) years from the expiration date of this
     Agreement,  including any renewal years,  and further  agrees that,  within
     that  period  of  time,  it  will  not  use any  such  proprietary  data or
     information,  except in  connection  with  proposals  or the  granting of a
     license to the Distributor,  under Section 2.4 of this Agreement,  and will
     not disclose any such proprietary data unless authorized, in writing by the
     party originally furnishing such data or information.

8.2  These  provisions  shall not  apply to data or  information  in the  public
     domain at the time it was disclosed,  or known to the party receiving it at
     the time of  disclosure,  or which  becomes  known to the  receiving  party
     independently of the disclosing party without breach of this Agreement,  or
     which is independently developed by the receiving party.

8.3 The receiving  party  shall  not  be  liable  for  the  disclosure  of  such
    proprietary  data or  information  which results from the use of the data or
    information  as  specified  above,  nor  for  disclosure  of  such  data  or
    information  pursuant to  judicial  or  governmental  action,  provided  the
    disclosing  party is provided  notice and an opportunity to object or obtain
    confidential treatment.

                                                                              6

<PAGE>

PUBLICITY AND NEWS RELEASES

9.0  Any news release, public announcement,  advertisement or publicity proposed
     to be released concerning the projects or the activities of both parties in
     connection  with this  Agreement  shall be mutually  approved in advance of
     such release by both parties.

NO RIGHTS IN TRADE NAMES

10.0 Distributor  agrees  that it will not in any manner  represent  that it has
     ownership  of any trade  names or  trademarks  used by  AVLIS.  Distributor
     further  agrees that it will not  register or attempt to register  any such
     trade names or trademarks under the laws of any  jurisdiction,  and it will
     not at any time do, or cause to be done, any act or thing contesting, or in
     any way impairing or tending to impair any part thereof whether or not they
     are registered in the  jurisdictions in which the Distributor is located or
     does business.

ASSIGNMENT

11.0 Neither this Agreement nor any interest herein may be assigned, in whole or
     in part, by either party hereto  without the prior  written  consent of the
     other party  hereto,  except that AVLIS may assign its rights to its parent
     company or another subsidiary.


REPRESENTATIONS

12.0 Each party  represents  and warrants to the other that it is a  corporation
     duly organized and validly existing in the legal jurisdiction  indicated in
     this Agreement.  Further,  each party represents that it has full corporate
     power and  authority  to enter  into this  Agreement  and to do all  things
     necessary for the performance of this Agreement.

GENERAL PROVISIONS

13.1 This  Agreement  shall be governed by and construed in accordance  with the
     laws of the State of Michigan,  United  States of America,  without  giving
     effect to the principles of conflicts of law thereof.

13.2 Distributor  will comply with all laws and regulations  applicable to it in
     the  Territory,  and  will  advise  AVLIS  of any  laws  in  the  Territory
     applicable to AVLIS or the Products.

13.3 The English  version of this Agreement  regardless of whether a translation
     in any other language is or will be made, shall be the only authentic one.


                                                                              7

<PAGE>


13.4 Any controversy or claim arising out of or relating to this  Agreement,  or
     breach  thereof,   shall  be  finally  settled  by  arbitration  under  the
     International  Chamber of Commerce Arbitration Rules by a single arbitrator
     chosen  in  accordance  with the said  Rules.  The  award  rendered  by the
     arbitrator  shall  state  the  reasons  for  the  decision.  The  place  of
     arbitration  shall  be Toronto, Canada  Judgment upon the award rendered by
     the arbitrator may be entered in any court having jurisdiction thereof.

13.5 Except as expressly  provided in this Agreement,  waiver by either party or
     failure  by  either  party  to  claim a  breach  of any  provision  of this
     Agreement,  shall not be a waiver of any breach or  subsequent  breach,  or
     have the effect of any waiver of such provisions.

13.6 This Agreement  (including  Addendum's  attached  hereto)  constitutes  the
     entire  agreement  between the parties  hereto with  respect to the subject
     matter  hereof,  and it  supersedes  all prior oral or written  agreements,
     commitments  or  understandings  with  respect to the matters  provided for
     herein. No amendment, modification, or discharge of this Agreement shall be
     valid and  binding  unless set forth in writing  and duly  executed  by the
     party against whom enforcement of the amendment,  modification or discharge
     is sought.

13.7 No modification of this Agreement shall be effective,  unless it is made in
     writing  and  signed  by  authorized   representatives  of  AVLIS  and  the
     Distributor.

13.8 The failure of either  party to require  performance  by the other party of
     any  provision  hereunder  shall not affect the full right to require  such
     performance at anytime thereafter,  nor shall the waiver by either party of
     a breach  of any  provision  hereof  be taken or held to be a waiver of the
     provision itself.

Neither party shall be liable for its failure to perform any of its  obligations
hereunder at any time during which  performance  is delayed by events beyond the
reasonable control of either party including, but not limited to, events such as
war,  strike,  unusually  severe  weather,  flood,  riot,  earthquake,  embargo,
epidemic or acts or any failures to act of any governmental entity.

In the event  that any  provision  of this  Agreement  is found to be or becomes
unenforceable  or  invalid,  in whole or in part,  under any  applicable  law or
judicial decision, the remainder of this Agreement shall remain in full force.

13.11Any notices  required or permitted by this Agreement or given in connection
     herewith shall be in writing and be made either by facsimile (followed by a
     mailed original) or by first-class mail, postage prepaid as follows:


                                                                             8

<PAGE>

NOTICE TO AVLIS SHALL BE ADDRESSED AS FOLLOWS:    NOTICE TO DISTRIBUTOR :

AVL Information Systems, Ltd.                     "I-Track" Inc.
2323 Passingham Dr.                               3031 Commerce Dr. Unit B.
Sarnia, Ontario  N7T 7H4                        _ Fort Gratiot, MI  48058
Telephone:  519-869-2677                          Phone:   810-385-2061
Fax:  519-869-6646                                Fax:  810-385-2068




IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
by their respective duly authorized  officers  effective the date and year first
written above.

ACCEPTED:                                         ACCEPTED:
                                                  /s/ "i-Track", Inc.
AVL INFORMATION SYSTEMS, LTD.                     ------------------------------
                                                  DISTRIBUTOR

/s/Chairman                                       /s/ President
----------------------------                      ------------------------------
TITLE                                             TITLE

/s/ Peter Fisher                                  /s/Barbara Castanon, as
                                                       President
----------------------------                      ------------------------------
SIGNATURE                                         SIGNATURE

1/8/01                                            1/8/01
----------------------------                      ------------------------------
DATE                                              DATE


<PAGE>




                                  ADDENDUM ONE


                          AVL INFORMATION SYSTEMS, LTD.
                                   (AVLIS(R))
                               PRODUCT/PRICE LIST
                            (Effective January 2000)



VEHICLE INFORMATION SYSTEMS

SPRYTE            In vehicle processor w/12-channel GPS,
                           cables, antenna & wiring terminal       $        600

COMMUNICATION PACKAGES:
         (Each package includes modem, antenna & cable.
         Packages DO NOT INCLUDE activation and service charges)

         Cellular package                                                   550
         Radio package                                                      550
         CDPD package                                                       600
         EXTERNAL OPTIONS:

         RAM Detector Sensor                                                 45
         Silent Status Communicator                                         350
         Differential Corrections                                           300

MAPPING/DISPATCH CENTER SOFTWARE PRODUCTS

FleetTrack Mapping Workstation software                                    2000
SPRYTE  Listener software                                                   500

MAPPING ENGINE-MAPINFO

MAPINFO StreetPro version 1.1 EAL map of any U.S. County                    650

CUSTOM ITEMS:

          2-way messaging ( requires Silent Status)                        1750
          Inverse differential correction station                          1500
          Custom report generation                                          T/M


THIS PRICE LIST IS SUBJECT TO CHANGE AT THE DISCRETION OF AVL INFORMATION
SYSTEMS, INC. AND IS NOT BOUND BY TIME RESTRICTIONS.

<PAGE>

                          AVL INFORMATION SYSTEMS, LTD.
                                   (AVLIS(R))
                              TERMS AND CONDITIONS
                            (Effective February 1999)

DELIVERY AND INSTALLATION

Items  shipped  common  carrier are FOB  destination.  Shipping  charges are one
percent (1%) of the equipment and software list price.  Buyer is responsible for
those  facility  modifications  (such as power,  air  conditioning,  and  space)
necessary to accommodate  equipment  requirements.  Installation is charged at a
per unit price.

WARRANTY

Purchased equipment and software are warranted under normal use, for a period of
one (1) year from the date of shipment to operate in accordance  with  published
specifications  at the time of delivery and against  defect in  workmanship  and
material.  However,  under  AVLIS(R)  terms,  the company  will  provide,  at an
additional  cost, and extended  warranty of one (1) additional  year for a total
warranty period of two (2) years.  This extended  warranty may be renewed at the
discretion of the buyer on an annual ongoing basis not to exceed 10 years.  This
warranty  is  void  if  failure  of  the  product(s)  is  due  to   unauthorized
modification,  misuse,  lack  of  normal  maintenance,  abnormal  conditions  of
operation  or  unauthorized  attempts  to repair.  AVLIS(R)  should be  promptly
notified of any suspected defects in equipment, equipment operation or software.

During the warranty  period,  the warranty covers  unlimited  equipment use with
services  being  available  during the  principal  period of  maintenance  (PPM)
between  the  hours of 8:00 a.m.  and 5:00 p.m.  Eastern  time,  Monday  through
Friday, excluding AVLIS(R) observed holidays.

AVLIS(R)  DISCLAIMS (TO THE EXTENT  PERMITTED BY LAW) ALL WARRANTIES ON PRODUCTS
FURNISHED   HEREUNDER,   EXCEPT  THOSE  ABOVE,   INCLUDING  ALL   WARRANTIES  OF
MERCHANTABILITY  AND  FITNESS OF PURPOSE.  THE ABOVE  WARRANTY IS IN LIEU OF ALL
OTHER  WARRANTIES  EXPRESSED  OR  IMPLIED,  AND  REPRESENTS  THE FULL AND  TOTAL
OBLIGATION AND/OR LIABILITY OF AVLIS(R).  CERTAIN  LIMITATIONS SET FORTH IN THIS
DISCLAIMER MAY NOT APPLY IN SOME JURISDICTIONS.

ADDITIONAL WARRANTIES

Buyer  covenants and agrees that they assume the  responsibility  to insure that
all persons  operating the System during times when life or property are at risk
will be properly qualified, supervised, trained, and capable of using the System
effectively and efficiently.  Buyer warrants that such qualified  operators will
not rely  solely  upon  recommendations  presented  by the  System  when  making
decisions that put life or property at risk. Buyer  acknowledges that the System
cannot operate without interruption,  and Buyer warrants that it will maintain a
manual or mechanized  system adequate to backup the System when  unavailable for
use, either planned or unplanned.  To the extent permitted by law, AVLIS(R) will
not be liable to Buyer or to any provider or receiver of emergency  services for
any  damages  of  any  nature   whatsoever   including  direct,   indirect,   or
consequential damages based on the use of the System.


<PAGE>

INDEMNITY

AVLIS(R)  liability for damages is limited to those  occasions,  which may arise
solely as the  direct  legal and  natural  consequences  of the  performance  of
AVLIS(R).  In no  event  will  AVLIS(R)  be  liable  to  Buyer  for  incidental,
consequential,  or special  damages arising out of or in connection with the use
or inability to use purchased  equipment,  software or software  delivery media.
Except as otherwise  provided by  applicable  law, no claim  regardless of form,
arising out of or in connection with this Agreement may be brought by Buyer more
than two (2) years after the cause of action has occurred.

MAINTENANCE

If maintenance of equipment  and/or  software is desired beyond the one (1) year
warranty period,  this service can be provided by separate  contract.  The Total
Service  Charge (TSC) listed in the quotation is the  full-service  monthly rate
for one shift per day of  service.  Should  extended  coverage  outside  the PPM
during the  warranty  period be desired  the  availability  and pricing for this
service will be addressed separately.  The TSC listed for software includes each
new release of  software.  Maintenance  of AVLIS(R)  developed  software  may be
provided under the AVLIS(R) full-service  contract.  The maintenance of AVLIS(R)
developed  software  includes  updates,  at least  annually,  to the  originally
procured AVLIS(R) developed software version.

SOFTWARE LICENSE

Software  is  furnished  to  Buyer  under  the  terms of the  AVLIS(R)  Software
Licensing  Agreement  for use only on the single user system (CPU),  device,  or
local area network for which it was  acquired.  Software can be copied (with the
inclusion of the originator's  restrictive markings thereon) only for use on the
single system.  Further, Buyer shall not provide or otherwise make available the
software,  or any portion thereof,  in any form to any third party without prior
written  approval of  AVLIS(R).  Buyer  shall be  required to sign the  standard
AVLIS(R) Software Licensing Agreement.

TAXES

All prices are exclusive of any applicable federal, state, municipal sales, use,
property or like taxes.

GENERAL TERMS OF PAYMENT

AVLIS(R)  terms of payment  shall be net thirty  (30) days from date of invoice,
with invoicing to occur as follows:

o        30% of total Purchase Price due at contract signing.
o        30% of total Purchase Price due upon delivery of Hardware.
o        Remaining 40% of total Purchase Price due 30 days after installation.

Purchase  Price  shall mean the sum of the prices for  Equipment,  Software  and
Services.




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CANCELLATION

Buyer may  cancel  the  delivery  of the order in whole or in part,  at any time
prior to the shipment. In the event of such cancellation,  Buyer shall be liable
and  agrees to pay  cancellation  charges to  AVLIS(R)  in  accordance  with the
following schedule:

o    Cancellation  notice  received more than sixty (60) days prior to the final
     shipment date: zero percent (0%) cancellation fee.

o    Cancellation  due  to  thirty  (30)  day  trial  period  not  to  customers
     satisfaction.   All  AVLIS(R)  supplied  hardware  and  software  shall  be
     returned. It shall be the responsibility of the customer to insure that any
     equipment  due AVLIS(R) is not lost or damaged and shall be returned in the
     same condition as it was supplied.

o    Cancellation  notice  received from sixty (60) to thirty (30) days prior to
     the scheduled  shipment date: five percent (5%) of the total order value of
     the canceled equipment and/or software.

o    Cancellation  notice received less than thirty (30) days from the scheduled
     shipment  date:  Ten percent (10%) of the total order value of the canceled
     equipment  and/or  software.   Buyer  agrees  that  title,  rights,  and/or
     interests to the canceled  item(s)  shall  remain with  AVLIS(R),  and that
     Buyer shall have no title, right, and/or interest to such.


RE-SCHEDULE

Product shipments are made within sixty (60) days (unless  otherwise  specified)
from  the  receipt  of  an  acceptable  duly  executed   agreement  from  Buyer.
Notification  is required  from Buyer to  AVLIS(R)  in writing  thirty (30) days
prior to any delay in the scheduled  shipment  date.  Upon  notification,  a new
shipment  date  shall be  established  by  mutual  agreement  between  Buyer and
AVLIS(R).  If proper  notification is not given, three percent (3%) of the total
order value shall be due and payable to AVLIS(R) from Buyer.

PATENT INFRINGEMENT

In the event of any proceeding  (suit,  claim,  or action) against Buyer arising
from allegations that the equipment, software, or a portion of thereof furnished
by AVLIS(R) infringes U.S. patent, copyright, trade secret, or other proprietary
right of any third  party.  AVLIS(R)  shall,  if such suit does not result  from
modifications  made by Buyer,  defend  Buyer's  right,  title or interest in the
same, at the expense of AVLIS(R),  provided Buyer promptly  notifies AVLIS(R) in
writing of the  allegation.  AVLIS(R)  shall make such defense by counsel of its
own choosing, and Buyer shall cooperate with said counsel.

FORCE MAJEURE

For the purpose hereof, force majeure shall be any of the following events: acts
of God or the public enemy; compliance with any order, rule, regulation, decree,
or request of any governmental  authority or agency or person  purporting to act
thereof,  acts of war,  public  disorder,  rebellion,  terrorism,  or  sabotage;
floods,  hurricanes,  or other storm,  strikes, or labor disputes;  or any other
cause,  whether or not of the class or kind  specifically  named or  referred to
herein, not within the reasonable control of the party affected.


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A delay in or failure of  performance  of either  party shall not  constitute  a
default  hereunder nor be the basis for, or give rise to, any claim for damages,
if and to the extent such delay or failure is caused by force majeure.

The  party  who is  prevented  from  performing  by force  majeure  (I) shall be
obligated  within a period not to exceed fourteen (14) days after the occurrence
or detection of any such event,  to give notice to the other party setting forth
in reasonable detail the nature thereof and the anticipated extent of the delay,
and (II) shall remedy such cause as soon as reasonably possible.



AVLIS(R)                                                        BUYER

-------------------------                         -----------------------------
Name                                              Name

-------------------------                         -----------------------------
Title                                             Title

-------------------------                         -----------------------------
Date                                              Date

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   ADDENDUM THREE

                          AVL INFORMATION SYSTEMS, LTD.
                                   (AVLIS(R))
                             SCHEDULE OF LABOR RATES
                            (Effective February 2000)



SUPPORT LABOR--
   --To reseller, non-contract charge, not subject to resale, FOB plant plus all
     travel and expenses:

         ENGINEER          -         $ 75.00 PER HOUR

         TECHNICIAN        -           50.00 PER HOUR

         INSTALLER         -           35.00 PER HOUR



CONTRACT LABOR--
   --End User support, FOB plant plus travel and expenses:

         ENGINEER          -         100.00 PER HOUR

         TECHNICIAN        -          75.00 PER HOUR

         INSTALLER         -          60.00 PER HOUR





TRAVEL TIME CHARGES--

1)   TRAVEL IN EXCESS OF TWO (2) HOURS FROM THE AVLIS PLANT WILL BE CHARGED AT A
     RATE OF FIFTY PERCENT (50%) OF THE STANDARD LABOR RATE FOR THE INDIVIDUAL
     PERSONNEL INVOLVED.

2)   ALL SERVICE CALLS REQUIRING OVERNIGHT STAY BY AVLIS PERSONNEL WILL BE
     SUBJECT TO A MINIMUM CHARGE OF ONE FULL WORKING DAY REGARDLESS OF THE
     NUMBER OF HOURS NEEDED TO COMPLETE THE WORK.

<PAGE>

                                  ADDENDUM FOUR

                          AVL INFORMATION SYSTEMS, LTD.
                                   (AVLIS(R))
                                DEALER DISCOUNTS


1.      ALL PRICES ON THE "AVLIS PRODUCT/PRICE LIST (ADDENDUM ONE)
        WILL BE SUBJECT TO VOLUME DISCOUNTS BASED ON -

A.       DELIVERY SCHEDULE
         B.       VOLUME
         C.       PRODUCT MIX


2.       DISCOUNT RANGES*

            0  -   99 UNITS:                     0%
          100  -  299 UNITS:                     5%
          300  -  999 UNITS:                     8%



           *ORDERS OF 1000 UNITS OR GREATER, PLEASE CALL FOR PRICING.

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