FACTORY AUTHORIZED DEALER PROGRAM PROGRAM OVERVIEW The Bryant Factory Authorized Dealer initiative is designed to create a large national pool of independent dealers who represent the highest standards of all Bryant dealers. By passing stringent business requirements, participating dealers are recognized as the absolute best Bryant dealers. WHAT TYPES OF DEALERS SHOULD PARTICIPATE? Loyal Bryant dealers who are already placing a large percentage of their purchases with Bryant Dealers interested in being more closely associated with the Bryant brand and in benefiting from it Dealers who want to be the best in their local markets Dealers interested in joining a Bryant Northeast Medallion Program ■ ■ ■ ■ CONSUMER SATISFACTION A primary objective of most consumers is to reduce the risk involved with what is typically a very expensive purchase. Research shows that a majority of consumers would select a Bryant Factory Authorized Dealer based on greater confidence in the following areas: Dealer Reputation Tech Certification Problem Resolution Quality of Service ■ ■ ■ ■ DEALER SATISFACTION The Bryant Factory Authorized Dealer initiative provides ultimate value to each participant through: Increased Sales and Profits Enhanced Business Efficiencies A Unique Identity (set apart from the average dealer) ■ ■ ■ FAD REQUIREMENTS The following is a summary of requirements in order to participate as a Bryant Factory Authorized Dealer: 100% Brand Loyalty NATE Certification (for a minimum of 50% of dealer’s technicians) Bryant Academy (all dealer representatives must attend a minimum of two days of classes every two calendar years) Offer 100% Satisfaction Guarantee Customer Care Surveys FAD Decals (displayed on all trucks) Adherence to Bryant and Distributor Business Practices Must Participate in a Medallion Program Must Attend Product Training Classes ■ ■ ■ ■ ■ ■ ■ ■ ■ Whatever it takes. SM PLEASE CONTINUE TO NEXT PAGE FACTORY AUTHORIZED DEALER PROGRAM FAD BENEFITS As a Bryant Factory Authorized Dealer, you offer a strong value proposition to your consumers (the factory endorses your company’s workmanship and quality). You also gain recognition as the best Bryant dealer available. FADs get more leads and business, meaning faster, stronger growth than typical dealers. Being an FAD differentiates you from the competition and improves your profitability by lowering costs through higher customer satisfaction standards and technician training. The following are just some of the other benefits available to Bryant FADs: Lead generation for Factory Authorized Dealers Bryant will promote FAD dealers on www.Bryant.com in an effort to educate consumers on the benefits of using an FAD dealer Dealer locator will recognize and promote FAD dealers with a special FAD icon and priority listing The dealers will be able to promote themselves as Factory Authorized Dealers Instant rebate offer within the Bryant Bonus promotion Special Factory Authorized Dealer offers for Comfort Credit Factory Authorized Dealer ad kit and advertising materials Dealer Locator link at no charge for new FAD dealers Online technical practice tests for NATE preparation at no charge TotalTest 2 kit to check system acid and moisture Generator purchase program showroom kit Discounted pricing on a Factory Authorized Dealer showroom kit Eligible for Dealer of the Year award ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ FAD CHARACTERISTICS What does it mean to be identified as a Bryant Factory Authorized Dealer? ■ Guaranteed Assurance from Bryant ■ A Higher Standard of Excellence ■ The Protection You Deserve as an Elite Dealer ■ An Exclusively Bryant Dealer ■ Dealer Locator Preference ■ Differentiation in the Market (resulting in increased leads and sales of Bryant brand equipment) Whatever it takes. SM 2010 MARKETING PROGRAM 2010 BRYANT FACTORY AUTHORIZED DEALER APPLICATION AND DEALER AGREEMENT Instructions 1. Complete this form in its entirety – please print! 2. Return the form to your Bryant Distributor. Dealership Information FOLLOWING FIELDS* ARE REQUIRED TO COMPLETE THE APPLICATION. INCOMPLETE FORMS WILL BE RETURNED. *Company Full Legal Name:_____________________________________________________________________________ (“Dealer”) *Street Address of Main Location (no PO boxes): ____________________________________________________________________ *City: _____________________________________________________________ *State: ______ *Zip: ________________________ *Phone: (_________ ) _____________________________________ *Fax: ( __________ ) __________________________________ *Company Federal Tax ID Number (9 digits):____________________*HVACpartners Main Dealer ID: __________________________ *HVACpartners Branch Location(s): ______________________________________________________________________________ For ALL dealership branch locations in total, please enter the total number of: Please enter HVAC equipment purchases – Full Year prior year *Employees: *From Bryant: $ *Service: *From all other manufacturers: $ Please enter IAQ product purchases – Full Year prior year *Installers: *Trucks: *Entire Business Sales Volume: $ *From Bryant: $ *From all other manufacturers: $ Please enter system product purchases – Full Year prior year *From Bryant: $ Equipment Purchases include (A/C, HP, Furnaces, Small Pac, Evap Coils, Fan Coils); IAQ Products include (Bryant branded air purifiers, media cabinets, UV lights, humidifiers, air cleaners, filters, heat/energy recovery ventilators); System products include (T’Stats, Zoning, plus IAQ products listed above) Sales Certification One or more employees from my organization have completed a combined total of at least two full days of Bryant training within the past two years. Employees certified through Bryant Academy, Bryant Graduate Studies, Bryant Commercial Replacement Specialist, Bryant Comfort Builder by Wrightsoft™, Bryant Healthy Air Specialist certification, or distributor sales/marketing training approved by Bryant: Name: ____________________________________________________________________________ Certification: _________________________Date: _______________ Name: ____________________________________________________________________________ Certification: _________________________Date: _______________ Name: ____________________________________________________________________________ Certification: _________________________Date: _______________ DOCUMENTS REQUIRED: Please attach a copy each of the Bryant Training Certificates, for factory sponsored courses, for each person listed above. Primary Contact Information The Bryant Factory Authorized Dealer program requires one person per company to be the primary contact. The primary contact will be the person who will receive all information about the Bryant Factory Authorized Dealer program. First Name: __________________________________________ Last Name: ______________________________________________ Email address: _______________________________________________________________________________________________ Job Function (check one): Owner / Principal Sales / Marketing Bryant FAD Application/Agreement Service / Technical Installation / Warehouse Office / Clerical 1 2010 BRYANT FACTORY AUTHORIZED DEALER APPLICATION AND DEALER AGREEMENT Technician Certification At least 50% of my HVAC technicians that certify or approve any installations or service work are certified through NATE (core + 1 specialty exam: heating or a/c). Please list certified technicians below. If you have additional certified technicians, list on the bottom of this page. I understand all installations must either be performed by a Bryant/NATE certified technician or approved on-site by a Bryant/NATE certified technician. Name: ____________________________________________________________________________ Certification: _________________________Date: _______________ Name: ____________________________________________________________________________ Certification: _________________________Date: _______________ Name: ____________________________________________________________________________ Certification: _________________________Date: _______________ Name: ____________________________________________________________________________ Certification: _________________________Date: _______________ Name: ____________________________________________________________________________ Certification: _________________________Date: _______________ Name: ____________________________________________________________________________ Certification: _________________________Date: _______________ Name: ____________________________________________________________________________ Certification: _________________________Date: _______________ DOCUMENTS REQUIRED: Please attach a copy of each NATE Certificate. Insurance Please attach a current copy of Dealer’s Liability Insurance Policy and/or Certificate of Insurance naming Carrier Corporation dba Bryant Heating & Cooling Systems as additional insured for actions or inactions of Dealer while a Bryant Factory Authorized Dealer. Terms The terms of the Bryant Factory Authorized Dealer program are contained in the following pages of this Application and Dealer Agreement. Dealer hereby applies to Bryant Heating & Cooling Systems, with an office located at Carrier Parkway, PO Box 4800, Syracuse, NY 13221 (hereinafter called “Bryant”) for appointment as a Bryant Factory Authorized Dealer. 1 2 Appointment of Dealer 1.1 Upon Bryant’s approval of this application and written notification thereof to the Dealer, Dealer shall become a non-exclusive Factory Authorized Bryant Dealer. 1.2 Dealer shall not appoint sub-dealers. Dealer Practices 2.1 During the term of the Agreement, Dealer agrees to exclusively stock, advertise and promote Bryant brand residential HVAC equipment, parts and supplies (the “Products”). 2.2 During the term of the Agreement, Dealer shall employ one or more individuals who have attended a combined total of at least two full days of Bryant training within two years. 2.3 During the term of the Agreement, at least fifty percent (50%) of the technicians that certify or approve any service or installation work employed by Dealer shall have been certified through NATE (core +1 specialty exam—heating or air conditioning). Bryant FAD Application/Agreement 2 2010 BRYANT FACTORY AUTHORIZED DEALER APPLICATION AND DEALER AGREEMENT 2.4 During the term of the Agreement, all equipment installed by Dealer shall be installed by a NATE or Bryant certified technician; or shall be inspected and approved by a NATE or Bryant certified technician. 2.5 Dealer shall provide a one-year (from date of installation) 100% Satisfaction Guarantee on all AOR installations, and shall guarantee all repairs, including parts and labor, for the first 90 days after installation. 2.6 Dealer shall apply the approved Bryant Factory Authorized Dealer logo to every vehicle Dealer uses for HVAC service or installation. 2.7 Dealer shall comply with all Bryant installation and service instructions and policies and shall perform all equipment installations and service in accordance with generally accepted trade practices and all federal, state and municipal laws. 2.8 Dealer shall maintain all necessary licenses, permits and certifications and shall comply with all federal, state and municipal laws. 2.9 Bryant equipment must be covered by only Bryant extended warranties and not by warranties sold by an unaffiliated third party. 2.10 Dealer shall use Bryant Factory Authorized Parts when available, to preserve the system performance, and shall maintain an adequate Factory Authorized Parts inventory for prompt and efficient service. 2.11 Dealer shall keep its account with its local distributor current. Dealer shall maintain an adequate reserve or accrual fund to cover all warranty and guarantee obligations. 2.12 Dealer shall attend new product training as Bryant may require from time to time. 3 4 Trademarks 3.1 Upon receipt of written notification of appointment, Dealer will have a limited, revocable, non-exclusive and nontransferable license and right to use Bryant Factory Authorized Dealer logos and trademarks solely for the purposes of advertising, marketing and promoting the sale of the Products during the term of this Agreement. 3.2 Bryant shall have the right to review and approve/disapprove any and all Dealer use, display, distribution, or publication of the Bryant Factory Authorized Dealer logos and trademarks. 3.3 Dealer shall not alter the Bryant Factory Authorized Dealer logos or trademarks in any manner, including proportions, colors, elements, type and so forth, or morph or otherwise distort its perspective or appearance. 3.4 All rights in and to the Bryant Factory Authorized Dealer logos and trademarks, including all of the goodwill of the business associated therewith, shall be the exclusive property of Bryant, and all use of the Bryant Factory Authorized Dealer logos and trademarks by Dealer shall inure only to the benefit of Bryant. Dealer shall not claim, acquire or assert any ownership rights in the Bryant Factory Authorized Dealer logos or trademarks. 3.5 Bryant has the right to revoke this license and right at any time. Such revocation shall be provided in writing. If the license and right is revoked, Dealer shall discontinue use of the Bryant Factory Authorized Dealer logos and trademarks immediately. Term and Termination 4.1 The initial term of this Agreement shall commence as of the date first above written and continue in effect until st December 31 of the following year. Dealer acknowledges and agrees that there is no representation or promise, express or implied, made by Bryant or any other party to Dealer that Dealer shall have any right to have this Agreement renewed after the term hereof, nor has Dealer relied on any such representation or promise. Bryant shall have no liability whatsoever to Dealer for the expiration of this Agreement or the failure to enter into any subsequent agreement with Dealer. Bryant FAD Application/Agreement 3 2010 BRYANT FACTORY AUTHORIZED DEALER APPLICATION AND DEALER AGREEMENT 5 4.2 Subject to Section 4.3, in the event that Dealer breaches any term of this Agreement, except for breaches of the terms of Sections 2.2 or 2.3, and such breach is not cured within thirty (30) days of written notice thereof by Bryant, Bryant may terminate this Agreement effective immediately upon written notice to Dealer. Subject to Section 4.3, in the event that Dealer breaches the terms of Sections 2.2 or 2.3 and such breach is not cured within sixty (60) days of written notice thereof by Bryant, Bryant may terminate this Agreement effective immediately upon written notice to Dealer. Dealer may terminate this Agreement at any time by providing written notice to Bryant. 4.3 In the case of flagrant or chronic breaches by Dealer evidenced by customer complaint or misleading or deceptive advertising by Dealer or otherwise, Bryant may terminate this Agreement effective immediately upon written notice. 4.4 This Agreement will terminate immediately upon written notice in the event that (i) Dealer ceases to function as a going concern, is adjudicated bankrupt, makes a general assignment for the benefit of creditors, takes the benefit of any insolvency, reorganization or other debtor’s relief legislation, or if a receiver or trustee is appointed for its property; or (ii) Dealer transfers substantially all of its assets without Bryant’s prior written consent or if there is a change in the ownership or control of Dealer. Procedures Upon Termination 5.1 In the event that this Agreement is terminated for any reason whatsoever, the following procedures shall apply: (i) (ii) (iii) 6 5.2 In the event that Dealer carries on as a Bryant dealer (other than as a Factory Authorized Bryant Dealer), Dealer shall be permitted to use certain designated Bryant trademarks. 5.3 Sections 5, 6 and 10 shall survive termination of this Agreement. Confidentiality 6.1 7 Dealer shall immediately, upon demand, return all originals and copies of any program manuals and binders, advertising material and any other information, which Bryant has provided to Dealer pursuant to this Agreement; Dealer shall cease to hold itself out as a Factory Authorized Bryant Dealer; and Dealer shall cease use of all trademarks of Bryant and its affiliates. Dealer shall maintain the confidential nature of any trade secrets or proprietary information disclosed to Dealer by Bryant. Insurance 7.1 Dealer shall secure and carry as a minimum, the following insurance coverage: (i) General Liability Insurance in which: a. b. c. (ii) 7.2 the limit of liability for injuries, including accidental death, shall be $1,000,000 for any one occurrence; the limit of liability for property damages shall be $1,000,000 for any one occurrence; the limit of liability for completed contracts shall be $100,000. Workers Compensation Insurance in an amount and in a manner as required by the laws of the State or States in which a Dealer operates its business. All such insurance shall be issued by companies authorized to do business under the laws of the State or States in which Dealer operates its business, shall be in a form satisfactory to Bryant, and shall contain a provision prohibiting cancellation except upon at least ten (10) days’ prior notice to Bryant. All such insurance policies will be primary in the event of a loss caused by or arise out of in whole or in part by Dealer’s negligent or intentional act or omission by Dealer or its officers, employees, or technicians. Bryant FAD Application/Agreement 4 2010 BRYANT FACTORY AUTHORIZED DEALER APPLICATION AND DEALER AGREEMENT 7.3 8 9 All insurance policies shall be endorsed with Carrier Corporation d/b/a Bryant Heating & Cooling Systems as an additional insured for actions or inactions of Dealer while a Bryant Factory Authorized Dealer and with a waiver of subrogation rights in favor of Bryant. Dealer Employees 8.1 Dealer shall be responsible for all taxes, insurance and other employer-related obligations in respect of its employees. 8.2 Dealer shall at all times pay, or cause to be paid, at Dealer’s expense, any assessment required to be paid pursuant to any applicable workers’ compensation legislation and shall comply with such legislation and all other prevailing labor laws and regulations applicable to Dealer. Independent Contractor 9.1 The Dealer is an independent contractor. Dealer accepts, in connection with the work called for hereby, exclusive liability for the payment of any taxes or contributions measured by Dealer’s income or levied on Dealer's property (real or personal). Dealer also assumes all liability for Social Security, unemployment insurance, old age payments, annuities or retirement benefits which are measured by wages, salaries or other remuneration paid by Dealer to any and all persons employed by it in connection with the performance of the work, and to comply with all valid Federal and State administrative regulations respecting the assumption of liability for any of the aforesaid taxes or contributions. The Dealer, its employees, agents and representatives are not employees, agents or representatives of Bryant, shall not hold themselves out as such, and have no authority or power to bind Bryant or contract in Bryant’s name. 10 Liability 10.1 While Bryant manufactures the Products, it is the Dealer that sizes, selects and installs the Products. Also, the Dealer selects, sizes and installs the ductwork and other system items that can affect the operation of the Bryant Product, as well as the user’s comfort and satisfaction with the Product and installed system. Because of this, Dealer agrees to indemnify, defend and hold Bryant harmless from and against all claims, complaints, causes of action, liabilities, and costs and expenses (including reasonable attorneys’ fees) to the extent they are caused by or arise out of Dealer’s acts or omissions. 10.2 Nothing in this Agreement relieves Bryant of or otherwise affects Bryant’s liability (if any) for claims, complaints, causes of action, liabilities and costs and expenses (including reasonable attorney’s fees) that are caused by or arise out of a defect in product sold or manufactured by Bryant, or a Bryant warranty, or a written instrument between Bryant and the claimant 11 Set-Off 11.1 In the event that Dealer fails to honor any of its obligations Bryant may remedy any loss or damage resulting from such include, but are not limited to, responding to customers’ remedying substandard or defective work of the Dealer or guarantee. to its customers or any obligations hereunder, failure at Dealer’s expense. Possible remedies complaints directly or through a third party, honoring an unhonored customer satisfaction 12 Amendments 12.1 Except as otherwise set out herein, no amendments may be made to this Agreement unless executed in writing by both parties. 13 Audit and Inspection 13.1 Dealer hereby agrees that Bryant shall have the right to review that Dealer is meeting all requirements as outlined within this agreement. Bryant FAD Application/Agreement 5 2010 BRYANT FACTORY AUTHORIZED DEALER APPLICATION AND DEALER AGREEMENT 14 Assignability 14.1 This Agreement is not assignable by Dealer. Bryant may assign this Agreement without notice to or consent of Dealer. 15 Governing Law 15.1 This Agreement shall be governed by and construed in accordance with the laws of the State of New York. 16 Entire Agreement 16.1 This Agreement, as amended from time to time, will constitute the entire agreement between Bryant and the Dealer, and supersede all prior agreements, whether oral or written, with respect to the subject matter hereof, if this application is approved by Bryant and written notification thereof is sent to Dealer. IN WITNESS WHEREOF, Dealer has executed this Application and Agreement. Dealer Name By: Name: Title: Date: I recommend Dealer for the Bryant Factory Authorized Dealer initiative Bryant Distributor Participating Distributor acknowledges that he has selected and sponsored the above Dealer for participation in the Bryant Factory Authorized Dealer Program. By: Name: Title: Date: Dealer: Return this form to your Bryant distributor Bryant FAD Application/Agreement 6