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GlobalTone Hosted PBX Reseller Agreement Terms and Conditions

This Agreement (the “Agreement”) is made by and between: GlobalPhone Corporation, 137 North Washington Street, Falls Church VA 22046 (hereinafter referred to as GlobalPhone), and the reseller Partner (hereinafter referred to as AGENT).

By entering this non-exclusive Agreement, AGENT and GlobalPhone agree to market telecommunications services in accordance with the following terms and conditions:

1. GlobalTone Service: AGENT agrees to assist GlobalPhone to market GlobalPhone’s GlobalTone Hosted IP-PBX and conference services by providing referrals of AGENT’s customers. GlobalPhone agrees to sell to and provide GlobalTone services (“Services”) to the AGENT’s Customers and to pay the AGENT monthly commissions based on monthly revenues from GlobalTone services sold. Commissions shall be paid in accordance with Section 3 below.1. GlobalTone Service: AGENT agrees to assist GlobalPhone to market GlobalPhone’s GlobalTone Hosted IP-PBX and conference services by providing referrals of AGENT’s customers. GlobalPhone agrees to sell to and provide GlobalTone services (“Services”) to the AGENT’s Customers and to pay the AGENT monthly commissions based on monthly revenues from GlobalTone services sold. Commissions shall be paid in accordance with Section 3 below.

2. Term: This Agreement commences on the Effective Date set forth above and remains in effect for one (1) year (the Initial Term). This Agreement will automatically renew for successive month to month terms unless a party provides the other party with a written notice of termination of at least thirty (30) days prior notice. In the event of contract termination by GlobalPhone, GlobalPhone shall continue to pay commissions for an additional twelve months. This contract will automatically expire without further written notice if AGENT’s referrals result in sales of less than 50 new seats during the prior twelve months.

3. Commissions: Commissions of 10% will be paid to the AGENT based on aggregate monthly sales of activation, monthly service charges, and long distance revenue. Commission payments shall be made within 30 days after the end of each month. Commissions will only be paid on collected funds. Commissions are not payable on hardware. In order to be eligible for such commission, AGENT shall have referred AGENT’s Customers to GlobalPhone.

4. Sales Activity: AGENT agrees to provide GlobalPhone with the name, phone number and email address of its clients that may be candidates for GlobalTone service. Leads must be submitted via email to the Agents designated sales representative. GlobalPhone sales personnel will contact the referral customer for the purpose of selling GlobalTone service. At AGENT’s sole option, AGENT may instruct GlobalPhone not to disclose the source of the referral. GlobalPhone will immediately inform the agent of all signed contracts.

5. Responsibilities for Sales, Installation and Support: GlobalPhone shall be responsible for all sales, implementation, billing and customer service activities.

6. Confidentiality: The terms and conditions of this Agreement, including all attachments hereto, and all materials provided by GlobalPhone to AGENT or AGENT to GlobalPhone, including but not limited to, customer lists, price sheets, price quotes, marketing and business plans and projections, pursuant to this Agreement are disclosed in confidence, solely for use in connection with carrying out the terms and conditions of this Agreement. Both parties shall keep such information secret and confidential and shall not release or disclose any of it to any third party during the term of this Agreement or for a period of three (3) years following its termination except in carrying out its obligations hereunder. Both Parties shall take appropriate precautions, contractual and otherwise, to prevent the unauthorized disclosure or misuse of this confidential information by any of its employees or by any other person having access to such information. At the expiration or sooner termination of this Agreement, both parties shall return to the originator all confidential or proprietary information received hereunder.

7. Entire Agreement/Choice of Law: No part of this Agreement may be waived, modified or supplemented in any manner whatsoever except by written instrument signed by an authorized representative of each party. This Agreement supersedes and terminates any conflicting terms in any service order and otherwise supersedes all prior agreements between the parties covering the subject matter herein whether written or oral. The laws of the Commonwealth of Virginia, not including its conflicts of laws provisions, shall apply to this Agreement. The parties irrevocably consent to jurisdiction and venue in the state and federal courts located in Fairfax County, Virginia.

8. Notices: All notices or other communications permitted or required hereunder shall be in writing and mailed by certified mail, return receipt requested, or sent by receipted overnight courier to the party at the address first appearing above, to the attention of the signatories below. Notices shall be deemed given three (3) days after deposit in the U.S. mail postage prepaid, if sent by certified mail or when received or receipt is refused if sent by receipted overnight courier.