Document:

exh10-32.htm

EXHIBIT 10.32

Student Purchasing Program Venture Agreement

 

THIS AGREEMENT made effective as of the ___ day of September, 2010 between SHEERVISION, INC., a Delaware corporation with an address at 4030 Palos Verdes Drive North, Suite 104, Rolling Hills Estates, CA 90274 (“SheerVision”) and ASSURANCE FUNDING SOLUTIONS, LLC, a Texas limited liability company with an address at  15400 Knoll Trail Drive, Suite 336, Dallas, Texas 75248 (“Assurance”).

WHEREAS, SheerVision engages in the design, manufacture, marketing, and sale of surgical loupes, light systems, and related optical products for the dental, medical, and veterinary markets worldwide (the “Products”);

WHEREAS, SheerVision currently sells Products to students and other customers primarily at dental, medical and veterinary schools whereby the customers either purchase the Products in full at the time of purchase or over a three month period because due to SheerVision’s current capital structure it is unable to offer an extended payment plan;

WHEREAS, SheerVision would like to increase its sales by offering a Student Purchasing Program whereby prospective purchasers of Products may purchase the Products by making payments over an extended period of time rather than paying for the Products in full at the time of purchase or over a three month period;

WHEREAS, Assurance provides capital, financial, marketing and employment services to assist companies in the expansion and development of their business;

WHEREAS, Assurance and SheerVision wish to enter into a business venture pursuant to the terms and conditions of this agreement whereby SheerVision can increase its sales through extended payment plans whereby Assurance will assist in funding the program;

NOW, THEREFORE, to that end and in consideration of the premises covenants and agreements set forth below, and the mutual benefits to be derived from this Security Agreement, and other good and valuable consideration, the parties hereto agree as follows:

	
1.  

	
Purpose.  The business of this venture shall be to increase the sales of SheerVision through the use of Assurance’s funding capabilities so that students can purchase Products through extended payment plans allowing the student to pay off the total purchase price of the Product over a 6 to 12 month period.

	
2.  

	
Term of the Agreement.   The term of this Agreement and venture shall be for two (2) years from the date first written above.  Any party may terminate this Agreement by virtue of the default of the other party, provided it gives prior written notice including notice of the default complained of and such default remains uncured for seven (7) days. All obligations of the parties with respect to any Student Accounts (as defined below) purchased prior to the termination of this agreement shall remain in full force and effect until same have been fully paid in accordance with the terms of the Purchase Order (as defined below) and this Agreement.

	
3.  

	
General Definitions.  The following terms not otherwise defined herein shall have the following meanings:

“Assurance Initial Payment” means the Product down payment due from Assurance to SheerVision upon the execution of a Purchase Order.

  

  

  

“Customer Account” means any right to payment or payments from a student or other customer that purchases Product from SheerVision wherein the purchase price is to be paid over a six to twelve month period.

“Payment Schedule” means the schedule or schedules attached hereto as Exhibit A detailing the manner and amounts that the Student Account will be collected and paid from and to the parties.

“Purchase Order” means the invoice, purchase order or other evidence of sale and all documents a part thereof in connection with the sale of any Product to a Student Account.

“Purchase Price” means the total purchase price of the Product exclusive of any sales tax that SheerVision is obligated to charge and thereby collect.

“Sale Date” means the date in which SheerVision first processes a customer’s credit card pursuant to the Purchase Order associated with a Customer Account.

	
4.  

	
Processing Purchase Orders and Student Accounts.   Within three (3) days of the  Sale Date of Product to a Customer Account, SheerVision shall submit a true and correct copy of the Purchase Order to Assurance via facsimile or electronic mail.  Within three days of Assurance’s receipt of the Purchase Order, Assurance will pay to SheerVision the Assurance Initial Payment in accordance with the Payment Schedule.  Thereafter, SheerVision shall collect, process and account for all credit card payments made by a Student Account in accordance with the terms of this Agreement and the Payment Schedule.  It is the understanding of the parties that each purchase of Product by a Student will be secured by an active and good standing nationally recognized credit or charge card from the purchaser that SheerVision is authorized to take as payment for Product.

	
5.  

	
Returns.  SheerVision shall maintain its customary and ordinary return policies in connection with the sale and delivery of Product with respect to all of its sales.  In the event that the customer of a Student Account make a return in accordance with SheerVision’s return policy SheerVision shall immediately notify Assurance of such return, but in no event later than three days (each, a “Return Account”) .  The parties further agree that in the event of the return they will net all payments due and owing under this Agreement under other Student Accounts so that Assurance is credited back the Assurance Initial Payment previously made on the Return Account.

	
6.  

	
Responsibility to Pay Sales Tax.  It is the parties’ understanding that it is and always shall be SheerVision’s responsibility to charge, collect and process all sales and use taxes imposed or required to be imposed by any taxing authority in connection with the sale of Product to a Student Account.

	
7.  

	
Expenses.  Each of the parties shall bear their own expenses as it relates to their duties, rights and obligations under this Agreement except that it is the understanding of the parties that Assurance will not be liable for or obligated for any expenses incurred by SheerVision in the sale of Product in connection with a Student Account, including, but not limited to, any credit card processing fees, marketing expenses or commissions.

	
8.  

	
Default of a Customer Accounts.  Within three (3) days of discovering or otherwise being notified that the end purchaser of a Customer Account has or is going to default upon a payment due under the Purchase Order (a “Default”), SheerVision shall provide Assurance with written notice of such default (each a “Default Account”).  In the event that the Default of a Default Account occurs within the three first three payments due under the Purchase Order (an “Early Default”), it is the parties understanding that SheerVision shall bear the risk of loss associated with these accounts.  Accordingly, in the event of an Early Default the parties will take all necessary steps to ensure that they will net all payments due and owing under this Agreement under other Student Accounts so that Assurance is credited back the Assurance Initial Payment previously made on the Early Default Account.  Thereafter, all rights, title and remedies of SheerVision under the Purchase Order shall remain the sole and exclusive property of SheerVision. In the event that a Default occurs at any time subsequent to the third payment due under the Purchase Order (a “Subsequent Default”), it is the parties understanding that Assurance shall bear the risk of loss associated with these accounts.  Therefore, in the event of a Subsequent Default and only after receiving proper notice thereof, Assurance will remit to SheerVision within three (3) days the outstanding balance due under the corresponding Purchase Order less a ten percent (10%) collection allowance.  Upon payment, SheerVision will take all necessary steps and actions required to assign any and all of its rights or claims against the Student Account purchaser to Assurance.  In addition to the foregoing, SheerVision will take all reasonable and necessary steps to contact the Student Account purchaser on Assurance’s behalf in order to collect the outstanding balance.

  

  

  

	
9.  

	
Duty to Cooperate.   The parties herein covenant and agree that each shall cooperate with the other and take all reasonable actions necessary to carry out the Purpose of this Agreement.

	
10.  

	
Books and Records.   SheerVision shall keep adequate books and records at its place of business, setting forth a true and accurate account of all business transactions arising out of and in connection with the conduct of this venture.  Notwithstanding, Assurance may from time to time request either a reasonable accounting or may from time to time be permitted to inspect the books and records of SheerVision upon reasonable notice.

	
11.  

	
Exclusivity.   SheerVision agrees that it shall not enter into any venture or agreement during the term of this Agreement with any third party whereby it funds the sales of Product on any form of extended payment plan.

	
12.  

	
Independent Contractors.  The relationship between both parties established by this Agreement is that of independent contractors, and nothing contained in this Agreement shall be construed to give either party the power to direct and control the day-to-day activities of the other.  Neither party is an agent, representative or partner of the other party.  Neither party shall have any right, power or authority to enter into any agreement for, or on behalf of, or incur any obligation or liability of, or to otherwise bind, the other party.  This Agreement shall not be interpreted or construed to create an association, agency, joint venture or partnership between the parties or to impose any liability attributable to such relationship upon either party.

	
13.  

	
General Provisions.

	
(a)  

	
Governing Law & Jurisdiction. This agreement and the parties’ actions under this Agreement shall be governed by and construed under the laws of the state of New York, without reference to conflict of law principles. The parties hereby expressly consent to the jurisdiction and venue of the federal and state courts within the state of New York. Each party hereby irrevocably consents to the service of process in any such action or proceeding by the mailing of copies thereof by registered or certified mail, postage prepaid, to such party at its address set forth in the preamble of this Agreement, such service to become effective thirty (30) days after such mailing.

 

	
(b)  

	
Entire Agreement. This Agreement, including the attached exhibits, constitutes the entire Agreement between both parties concerning this transaction, and replaces all previous communications, representations, understandings, and Agreements, whether verbal or written between the parties to this Agreement or their representatives. No representations or statements of any kind made by either party, which are not expressly stated in this Agreement, shall be binding on such parties.

 

  

  

  

	
(c)  

	
All Amendments in Writing. No waiver, amendment or modification of any provisions of this Agreement shall be effective unless in writing and signed by a duly authorized representative of the party against whom such waiver, amendment or modification is sought to be enforced. Furthermore, no provisions in either party’s purchase orders, or in any other business forms employed by either party will supersede the terms and conditions of this Agreement.

 

	
(d)  

	
Notices. Any notice required or permitted by this Agreement shall be deemed given if sent by registered mail, postage prepaid with return receipt requested, addressed to the other party at the address set forth in the preamble of this Agreement or at such other address for which such party gives notice hereunder. Delivery shall be deemed effective three (3) days after deposit with postal authorities. Notices may also be sent pursuant to a facsimile or through electronic mail so long as a conforming copy of such communication is sent in accordance with the proceeding sentence.

 

	
(e)  

	
Costs of Legal Action. In the event any action is brought to enforce this Agreement, the prevailing party shall be entitled to recover its costs of enforcement including, without limitation, attorneys’ fees and court or arbitration costs.

 

	
(f)  

	
Inadequate Legal Remedy. Both parties understand and acknowledge that violation of their respective covenants and Agreements may cause the other irreparable harm and damage, that may not be recovered at law, and each agrees that the other’s remedies for breach may be in equity by way of injunctive relief, as well as for damages and any other relief available to the non-breaching party, whether in law or in equity.

 

	
(g)  

	
Arbitration. Any dispute relating to the interpretation or performance of this Agreement shall be resolved at the request of either party through binding arbitration. Arbitration shall be conducted in New York County, New York in accordance with the then-existing rules of the American Arbitration Association. Judgment upon any award by the arbitrators may be entered by any state or federal court having jurisdiction.

 

	
(h)  

	
Delay is Not a Waiver. No failure or delay by either party in exercising any right, power or remedy under this Agreement, except as specifically provided in this Agreement, shall operate as a waiver of any such right, power or remedy.

 

	
(i)  

	
Assignability & Binding Effect. Except as expressly set forth within this Agreement, neither party may transfer or assign, directly or indirectly, this Agreement or its rights and obligations hereunder without the express written permission of the other party, not to be unreasonably withheld; provided, however, that both parties shall have the right to assign or otherwise transfer this Agreement to any parent, subsidiary, affiliated entity or pursuant to any merger, consolidation or reorganization, provided that all such assignees and transferees agree in writing to be bound by the terms of this Agreement prior to such assignment or transfer. Subject to the foregoing, this Agreement shall be binding upon and inure to the benefit of the parties hereto, their successors and assigns.

 

	
(j)  

	
Non-Assignability & Binding Effect. Except as otherwise provided for within this Agreement, neither party may assign any of its rights or delegate any of its obligations under this Agreement to any third party without the express written permission of the other. Any such assignment is deemed null and void.

 

	
(k)  

	
Certain Sections Invalid. If any provisions of this Agreement are held by a court of competent jurisdiction to be invalid under any applicable statute or rule of law, they are to that extent to be deemed omitted and the remaining provisions of this Agreement shall remain in full force and effect.

 

	
(l)  

	
Headings. The titles and headings of the various sections and sections in this Agreement are intended solely for convenience of reference and are not intended for any other purpose whatsoever, or to explain, modify or place any construction upon or on any of the provisions of this Agreement.

 

	
(m)  

	
Survival of Certain Provisions. The warranties and the indemnification and confidentiality obligations set forth in the Agreement shall survive the termination of the Agreement by either party for any reason.

 

  

  

  

IN WITNESS WHEREOF the parties hereto have executed this Agreement on the date first above written.

SHEERVISION, INC.:                                                                              ASSURANCE FUNDING SOLUTIONS, LLC

By:_____________________________                                               By:_____________________________

Name: Suzanne Lewsadder                                                                      Name: Beryl Zyskind

Title:  CEO                                                                                                 Title:  Manager

  

  

  

 

EXHIBIT A

 

 

PAYMENT SCHEDULES

 

 

12 Month Extended Payment Plan

 

 

In the event that Product is purchase on a Student Account whereby the Purchase Order allows the student to make 12 payments, the parties agree that the student shall be required to make payments and that all such payments shall be made and distributed amongst the parties in accordance with the following schedule.

 

	
Purchase Price*

	
Payments by Customer

	
Payments to SheerVision (SV)

	
Payments by and to Assurance (AF)

	
First Payment

	
10%

	
100% of First Payment

	
0

	
Assurance Initial Payment

	  	
35% of Purchase Price paid to SV by AF

	
35% (to SV)

	
Second Payment

	
8.2%

	
42.5%

	
57.5%

	
Third Payment

	
8.2%

	
42.5%

	
57.5%

	
Fourth Payment

	
8.2%

	
42.5%

	
57.5%

	
Fifth Payment

	
8.2%

	
42.5%

	
57.5%

	
Sixth Payment

	
8.2%

	
42.5%

	
57.5%

	
Seventh Payment

	
8.2%

	
42.5%

	
57.5%

	
Eighth Payment

	
8.2%

	
42.5%

	
57.5%

	
Ninth Payment

	
8.2%

	
42.5%

	
57.5%

	
Tenth Payment

	
8.2%

	
42.5%

	
57.5%

	
Eleventh Payment

	
8.2%

	
42.5%

	
57.5%

	
Twelfth Payment

	
8.0%

	
42.5%

	
57.5%

	
Total

	
100%

	  	  

 

* does not include sales tax.

 

 

The following table is meant to help explain and illustrate the above payment schedule. For purposes of the table below we are assuming a Purchase Price of $1,000.

 

	
Purchase Price-$1,000*

	
Payments by Customer

	
Payments to SheerVision (SV)

	
Payments by and to Assurance (AF)

	
First Payment

	
$100.00

	
$100.00

	
$0.00

	
Assurance Initial Payment

	  	
$350.00

	
($350.00)

	
Second Payment

	
$82.00

	
$34.85

	
$47.15

	
Third Payment

	
$82.00

	
$34.85

	
$47.15

	
Fourth Payment

	
$82.00

	
$34.85

	
$47.15

	
Fifth Payment

	
$82.00

	
$34.85

	
$47.15

	
Sixth Payment

	
$82.00

	
$34.85

	
$47.15

	
Seventh Payment

	
$82.00

	
$34.85

	
$47.15

	
Eighth Payment

	
$82.00

	
$34.85

	
$47.15

	
Ninth Payment

	
$82.00

	
$34.85

	
$47.15

	
Tenth Payment

	
$82.00

	
$34.85

	
$47.15

	
Eleventh Payment

	
$82.00

	
$34.85

	
$47.15

	
Twelfth Payment

	
$80.00

	
$34.00

	
$46

	
Total

	
$1,000.00

	
$832.50

	
$167.50

 

  

  

  

9 Month Extended Payment Plan

 

 

In the event that Product is purchase on a Student Account whereby the Purchase Order allows the student to make 9 payments, the parties agree that the student shall be required to make payments and that all such payments shall be made and distributed amongst the parties in accordance with the following schedule.

 

 

 

	
Purchase Price*

	
Payments by Customer

	
Payments to SheerVision (SV)

	
Payments by and to Assurance (AF)

	
First Payment

	
10%

	
100% of First Payment

	
0

	
Assurance Initial Payment

	  	
35% of Purchase Price paid to SV by AF

	
35% (to SV)

	
Second Payment

	
11.25%

	
42.5%

	
57.5%

	
Third Payment

	
11.25%

	
42.5%

	
57.5%

	
Fourth Payment

	
11.25%

	
42.5%

	
57.5%

	
Fifth Payment

	
11.25%

	
42.5%

	
57.5%

	
Sixth Payment

	
11.25%

	
42.5%

	
57.5%

	
Seventh Payment

	
11.25%

	
42.5%

	
57.5%

	
Eighth Payment

	
11.25%

	
42.5%

	
57.5%

	
Ninth Payment

	
11.25%

	
42.5%

	
57.5%

	
Total

	
100%

	  	  

 

* does not include sales tax.

 

 

 

 

The following table is meant to help explain and illustrate the above payment schedule. For purposes of the table below we are assuming a Purchase Price of $595.

 

 

 

	
Purchase Price-$595*

	
Payments by Customer

	
Payments to SheerVision (SV)

	
Payments by and to Assurance (AF)

	
First Payment

	
$59.50

	
$59.50

	
$0.00

	
Assurance Initial Payment

	  	
$208.25

	
($208.25)

	
Second Payment

	
$66.94

	
$28.45

	
$38.49

	
Third Payment

	
$66.94

	
$28.45

	
$38.49

	
Fourth Payment

	
$66.94

	
$28.45

	
$38.49

	
Fifth Payment

	
$66.94

	
$28.45

	
$38.49

	
Sixth Payment

	
$66.94

	
$28.45

	
$38.49

	
Seventh Payment

	
$66.94

	
$28.45

	
$38.49

	
Eighth Payment

	
$66.94

	
$28.45

	
$38.49

	
Ninth Payment

	
$66.94

	
$28.45

	
$38.49

	
Total

	
$595.00

	
$495.34

	
$99.66

 

 

  

  

  

 

6 Month Extended Payment Plan

 

 

In the event that Product is purchase on a Student Account whereby the Purchase Order allows the student to make 12 payments, the parties agree that the student shall be required to make payments and that all such payments shall be made and distributed amongst the parties in accordance with the following schedule.

 

	
Purchase Price*

	
Payments by Customer

	
Payments to SheerVision (SV)

	
Payments by and to Assurance (AF)

	
First Payment

	
10%

	
100% of First Payment

	
0

	
Assurance Initial Payment

	  	
35% of Purchase Price paid to SV by AF

	
35% (to SV)

	
Second Payment

	
18.00%

	
42.5%

	
57.5%

	
Third Payment

	
18.00%

	
42.5%

	
57.5%

	
Fourth Payment

	
18.00%

	
42.5%

	
57.5%

	
Fifth Payment

	
18.00%

	
42.5%

	
57.5%

	
Sixth Payment

	
18.00%

	
42.5%

	
57.5%

	
Total

	
100%

	  	  

 

* does not include sales tax.

 

 

 

 

The following table is meant to help explain and illustrate the above payment schedule. For purposes of the table below we are assuming a Purchase Price of $895.

 

 

 

	
Purchase Price-$895*

	
Payments by Customer

	
Payments to SheerVision (SV)

	
Payments by and to Assurance (AF)

	
First Payment

	
$89.50

	
$89.50

	
$0.00

	
Assurance Initial Payment

	  	
$313.25

	
($313.25)

	
Second Payment

	
$161.10

	
$68.47

	
$92.63

	
Third Payment

	
$161.10

	
$68.47

	
$92.63

	
Fourth Payment

	
$161.10

	
$68.47

	
$92.63

	
Fifth Payment

	
$161.10

	
$68.47

	
$92.63

	
Sixth Payment

	
$161.10

	
$68.47

	
$92.63

	
Total

	
$895.00

	
$745.09

	
$149.91exh10-33.htm

EXHIBIT 10.33

BERYL ZYSKIND

 

August 4, 2010

 

 

SheerVision, Inc.

4030 Palos Verdes Drive N., Suite 104

Rolling Hills, CA 90274

Attention:                                Ms. Suzanne Lewsadder, Chief Executive Officer

Gentlemen:

 

1.           We are pleased to set forth the terms of the retention of Berylz Zyskind (“Consultant”) by SheerVision, Inc., a Delaware corporation (collectively with its affiliates, the “Company”) to act as a non-exclusive financial and strategic advisor in connection with the advancement of the Company’s business objectives, including analyzing the Company’s business and revenue models and capital structure, and identifying strategic partners.

 

2.           In connection with Consultant’s activities on the Company’s behalf, Consultant will familiarize itself with the business, operations, properties, financial condition, and prospects of the Company.  In connection with its role as the advisor to the Company, Consultant would expect its services to include such additional financial and strategic advisory and related services as may be mutually agreed upon by Consultant and the Company.  The retention by the Company of Consultant as advisory as heretofore described shall be for a period of one year from the date hereof.

 

3.           In connection with Consultant’s activities on the Company’s behalf, the Company will cooperate with Consultant and will furnish Consultant with all information and data concerning the Company (the “Information”) that Consultant deems appropriate and will provide Consultant with access to the Company’s officers, directors, employees, independent accountants, and legal counsel.  The Company represents and warrants that all Information made available to Consultant by the Company will, at all times during the period of engagement of Consultant hereunder, be complete and correct in all material respects and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein not misleading in the light of the circumstances under which such statements are made.  The Company further represents and warrants that any projections provided by it to Consultant will have been prepared in good faith and will be based upon assumptions which, in light of the circumstances under which they are made, are reasonable.  The Company acknowledges and agrees that, in rendering its services hereunder, Consultant will be using and relying on the Information without independent verification thereof by Consultant or independent appraisal by Consultant of any of the Company’s assets.  Consultant does not assume responsibility for any information regarding the Company.  Any advice rendered by Consultant pursuant to this Agreement may not be disclosed publicly without our prior written consent.

 

  

  

  

 

4.           (a)           In consideration of its services pursuant to this Agreement, Consultant shall be entitled to receive 1,400,000 shares of common stock, par value $0.001 per share (the “Common Stock”), of the Company upon the execution and delivery hereof.

 

                              (b)           The Company shall cause the resale of the such shares of Common Stock to be registered as soon as reasonably practicable, and in any event within 45 days, on an appropriate form under the Securities Act of 1933, as amended.

 

                              (c)           Consulting fees of $7,500 per month for a period of one year commencing November 1, 2010.

5.           In addition to the fees described in Paragraph 4 above, the Company agrees to promptly reimburse Consultant for expenses incurred in connection with its retention provided that such expenses are approved in advance in writing by the Company.

6.           The Company agrees to indemnify Consultant in accordance with the indemnification provisions (the “Indemnification Provisions”) attached to this Agreement as Annex A, which Indemnification Provisions are incorporated herein and made a part hereof.

7.           Consultant may terminate this Agreement at any time upon 30 days’ prior written notice, without liability or continuing obligation, except as set forth in the following sentence.  Neither termination of this Agreement nor completion of the assignment contemplated hereby shall affect: (i) any compensation earned by Consultant up to the date of termination or completion, as the case may be, including the entirety of the fees referenced in Paragraph 4 hereof; (ii) the reimbursement of expenses incurred by Consultant up to the date of termination or completion, as the case may be, (iii) the provisions of Paragraphs 4 through 7 of this Agreement and (iv) the Indemnification Provisions attached as Annex A hereto which are incorporated herein, all of which shall remain operative and in full force and effect.

8.           The validity and interpretation of this Agreement shall be governed by the law of the State of New York applicable to agreements made and to be fully performed therein. The Company irrevocably submits to the jurisdiction of any court of the State of New York or the United States District Court for the Southern District of the State of New York for the purpose of any suit, action, or other proceeding arising out of this Agreement, or any of the agreements or transactions contemplated hereby, which is brought by or against the Company and (i) hereby irrevocably agrees that all claims in respect of any such suit, action, or proceeding may be heard and determined in any such court and (ii) to the extent that the Company has acquired, or hereafter may acquire, any immunity from jurisdiction of any such court or from any legal process therein, the Company hereby waives, to the fullest extent permitted by law, such immunity.  The Company hereby waives, and agrees not to assert in any such suit, action, or proceeding, in each case, to the fullest extent permitted by applicable law, any claim that (a) the Company is not personally subject to the jurisdiction of any such court, (b) the Company is immune from any legal process (whether through service or notice, attachment prior to judgment, attachment in aid of execution, execution, or otherwise) with respect to the Company’s property or (c) any such suit, action, or proceeding is brought in an inconvenient forum.

  

  

  

9.           The benefits of this Agreement shall inure to the respective successors and assigns of the parties hereto and of the indemnified parties hereunder and their successors and assigns and representatives, and the obligations and liabilities assumed in this Agreement by the parties hereto shall be binding upon their respective successors and assigns.

10.           For the convenience of the parties hereto, any number of counterparts of this Agreement may be executed by the parties hereto.  Each such counterpart shall be, and shall be deemed to be, an original instrument, but all such counterparts taken together shall constitute one and the same Agreement.  This Agreement may not be modified or amended except in writing signed by the parties hereto.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK;

SIGNATURE PAGE FOLLOWS]

  

  

  

If the foregoing correctly sets forth our Agreement, please sign the enclosed copy of this letter in the space provided and return it to us.

 

Very truly yours,

_________________________________

Beryl Zyskind

Confirmed and Agreed to:

as of this 4th day of August, 2010

SHEERVISION, INC.

By:___________________________

      Name:

      Title:

 

 

  

  

  

Annex A

 

INDEMNIFICATION PROVISIONS

 

 

SheerVision, Inc. (the “Company”), agrees to indemnify and hold harmless Beryl Zyskind (“Consultant”) against any and all losses, claims, damages, obligations, penalties, judgments, awards, liabilities, costs, expenses, and disbursements (and any and all actions, suits, proceedings, and investigations in respect thereof and any and all legal and other costs, expenses, and disbursements in giving testimony or furnishing documents in response to a subpoena or otherwise), including, without limitation the costs, expenses, and disbursements, as and when incurred, of investigating, preparing, or defending any such action, suit, proceeding, or investigation (whether or not in connection with litigation in which Consultant is a party), directly or indirectly, caused by, relating to, based upon, arising out of, or in connection with Consultant’s acting for the Company, including, without limitation, any act or omission by Consultant in connection with its acceptance of or the performance or non-performance of its obligations under the letter agreement dated August 4, 2010, between Consultant and the Company, as it may be amended from time to time (the “Agreement”); provided, however, such indemnity agreement shall not apply to any portion of any such loss, claim, damage, obligation, penalty, judgment, award, liability, cost, expense, or disbursement to the extent it is found in a final judgment by a court of competent jurisdiction (not subject to further appeal) to have resulted primarily and directly from the willful misconduct of Consultant. The Company also agrees that Consultant shall not have any liability (whether direct or indirect, in contract or tort or otherwise) to the Company for or in connection with the engagement of Consultant, except to the extent that any such liability is found in a final judgment by a court of competent jurisdiction (not subject to further appeal) to have resulted primarily and directly from Consultant’s willful misconduct.

 

These Indemnification Provisions shall be in addition to any liability which the Company may otherwise have to Consultant or the persons indemnified below in this sentence and shall extend to the following: Consultant, its affiliated entities, directors, officers, employees, legal counsel, agents, and controlling persons (within the meaning of the federal securities laws).  All references to Consultant in these Indemnification Provisions shall be understood to include any and all of the foregoing.

 

If any action, suit, proceeding, or investigation is commenced, as to which Consultant proposes to demand indemnification, it shall notify the Company with reasonable promptness; provided, however, that any failure by Consultant to notify the Company shall not relieve the Company from its obligations hereunder.  Consultant shall have the right to retain counsel of its own choice to represent it, and the Company shall pay the fees, expenses, and disbursements of such counsel; and such counsel shall, to extent consistent with its professional responsibilities, cooperate with the Company and any counsel designated by the Company.  The Company shall be liable for any settlement of any claim against Consultant made with the Company’s written consent, which consent shall not be unreasonably withheld.  The Company shall not, without the prior written consent of Consultant, settle or compromise any claim, or permit a default or consent to the entry of

 

  

  

  

any judgment in respect thereof, unless such settlement, compromise, or consent includes, as an unconditional term thereof, the giving by the claimant to Consultant of an unconditional release from all liability in respect of such claim.

 

In order to provide for just and equitable contribution, if a claim for indemnification pursuant to these Indemnification Provisions is made, but it is found in a final judgment by a court of competent jurisdiction (not subject to further appeal) that such indemnification may not be enforced in such case, even though the express provisions hereof provide for indemnification in such case, then the Company, on the one hand, and Consultant, on the other hand, shall contribute to the losses, claims, damages, obligations, penalties, judgments, awards, liabilities, costs, expenses, and disbursements to which the indemnified persons may be subject in accordance with the relative benefits received by the Company, on the one hand, and Consultant, on the other hand, and also the relative fault of the Company, on the one hand, and Consultant on the other hand, in connection with the statements, acts, or omissions which resulted in such losses, claims, damages, obligations, penalties, judgments, awards, liabilities, costs, expenses, or disbursements and the relevant equitable considerations shall also be considered.  No person found liable for a fraudulent misrepresentation shall be entitled to contribution from any person who is not also found liable for such fraudulent misrepresentation.  Notwithstanding the foregoing, Consultant shall not be obligated to contribute any amount hereunder that exceeds the amount of fees previously received by Consultant pursuant to the Agreement.

 

Neither termination nor completion of the engagement of Consultant referred to above shall affect these Indemnification Provisions which shall then remain operative and in full force and effect.

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