Common use of Demonstration Materials Clause in Contracts

Demonstration Materials. BluBØX Demo Databases Upon execution of this Agreement, BluBØX will make log-in credentials available to the Reseller that access the BluSKY demo databases. These databases are for general use and must be kept pristine. But they offer a quick path to support customer demos. Reseller Account: Upon execution of this agreement, BluBØX will create the Reseller’s “Integrator Account”. This account gives access to the Integrator’s own ▇▇▇▇▇▇ environment where wholly owned demo databases can be created. This environment will also support all the Reseller’s clients. Approved Territories Reseller is generally authorized to sell BluBØX products within the United States and its territories. The designated Territories are shown below: APPROVED TERRITORIES TABLE Reseller’s Initials Approved Territory Office Address or other significant presence Authorized Products: The Reseller is authorized to re-sell the following BluBØX products: X License for use of BluSKY Software X BluCHIP Hardware X Third Party Hardware X Replacement Parts X Associated Technical Services Annual Purchase Commitment and Discounts During the Term of this Agreement, Reseller and BluBØX shall agree by the last day of the current year on the next year’s Purchase Commitment level. The size of the commitment made will determine the Reseller Class as shown in the Table below: The commitment levels shall include all so-called “one-time” items, exclusive of recurring revenue, and shall be calculated on the basis of the Reseller’s discounted prices. The discount levels for each Reseller Class and each category of product are shown in the Table below. The discount levels are applied to BluBØX’s then-current published MSRP Prices thus yielding the Reseller’s purchase price for each product. RESELLER CLASS TABLE Initial Selected Class RESELLER CLASS Annual Purchase Commitment A Level Product B Level Product C- Level Product Elite + 500K or more 45% 30% 20% Elite $350K or more 42% 25% 15% X Premier $200K or more 35% 20% 12% Certified $50K or more 28% 15% 10% Partner N/A 15% 15% 10% In addition, certain parts that are widely available from other sources and normally sold at low margins are available from BluB0X for the Reseller’s convenience and classified as U-10, U-15, U-20, and U-25. Such parts are sold at 10%, 15%, 20% and 25% discounts respectively or at the C-level discount, whichever is smaller. Partner Program - This is a special program intended to support smaller integrators or deal with special projects where a higher level of BluBØX participation is needed. Under the program, BluBØX will produce the system design and associated end- user quotation in close cooperation with Reseller’s Sales staff. BluBØX will fully project-manage the installation of the BluBØX system(s) and Reseller will provide needed on-site staff. First Year Sales Volume and Discount Levels will be managed as follows: Initial Period: During the period from the date of this Agreement until the end of the current calendar year, unless agreed otherwise, the Reseller shall be established as a “Premier Reseller”. The Reseller’s anticipated actual volume shall be the proposed Annual Volume pro-rated to the number of days between the Effective date of this Agreement and December 31st - less 3 months (for start-up).

Demonstration Materials. BluBØX Demo Databases Upon execution of this Agreement, BluBØX will make log-in credentials available to the Reseller that access the BluSKY demo databases. These databases are for general use and must be kept pristine. But they offer a quick path to support customer demos. Reseller Account: Upon execution of this agreement, BluBØX will create the Reseller’s “Integrator Account”. This account gives access to the Integrator’s own ▇▇▇▇▇▇ environment where wholly owned demo databases can be created. This environment will also support all the Reseller’s clients. Approved Territories Reseller is generally authorized to sell BluBØX products within the United States and its territories. The designated Territories are shown below: APPROVED TERRITORIES TABLE Reseller’s Initials Approved Territory Office Address or other significant presence Authorized Products: The Reseller is authorized to re-sell the following BluBØX products: X License for use of BluSKY Software X BluCHIP Hardware X Third Party Hardware X Replacement Parts X Associated Technical Services Annual Purchase Commitment and Discounts During the Term of this Agreement, Reseller and BluBØX shall agree by the last day of the current year on the next year’s Purchase Commitment level. The size of the commitment made will determine the Reseller Class as shown in the Table below: The commitment levels shall include all so-called “one-time” items, exclusive of recurring revenue, and shall be calculated on the basis of the Reseller’s discounted prices. The discount levels for each Reseller Class and each category of product are shown in the Table below. The discount levels are applied to BluBØX’s then-current published MSRP Prices thus yielding the Reseller’s purchase price for each product. RESELLER CLASS TABLE Initial Selected Class RESELLER CLASS Annual Purchase Commitment A Level Product B Level Product C- Level Product Elite + 500K or more 45% 30% 20% Elite $350K or more 42% 25% 15% X Premier $200K or more 35% 20% 12% Certified $50K or more 28% 15% 10% Partner N/A 15% 15% 10% In addition, certain parts that are widely available from other sources and normally sold at low margins are available from BluB0X for the Reseller’s convenience and classified as U-10, U-15, U-20, U-20 and U-25. Such parts are sold at 10%, 15%, 20% and 25% discounts respectively or at the C-level discount, whichever is smaller. Partner Program - This is a special program intended to support smaller integrators or deal with special projects where a higher level of BluBØX participation is needed. Under the program, BluBØX will produce the system design and associated end- user quotation in close cooperation with Reseller’s Sales staff. BluBØX will fully project-manage the installation of the BluBØX system(s) and Reseller will provide needed on-site staff. First Year Sales Volume and Discount Levels will be managed as follows: Initial Period: During the period from the date of this Agreement until the end of the current calendar year, unless agreed otherwise, the Reseller shall be established as a “Premier Reseller”. The Reseller’s anticipated actual volume shall be the proposed Annual Volume pro-rated to the number of days between the Effective date of this Agreement and December 31st - less 3 months (for start-up).