Document:

ex10-2.htm

    Exhibit
10.2

    VEMICS,
INC.

    

    2007
EQUITY COMPENSATION PLAN

    

    INCENTIVE STOCK OPTION
GRANT

    

    This
INCENTIVE STOCK OPTION GRANT, dated as of August __, 2008 (the “Date of Grant”),
is delivered by VEMICS, INC. (the “Company”) to ______ (the
“Grantee”).

    

    RECITALS

    

    A.           The
VEMICS, INC. 2007 Equity Compensation Plan (the “Plan”) provides for the grant
of options to purchase shares of common stock of the Company.  The
Board of Directors of the Company (the “Board”) has decided to make a stock
option grant as an inducement for the Grantee to promote the best interests of
the Company and its shareholders.  A copy of the Plan is
attached.

    

    B.           The
Board is authorized to appoint a committee to administer the Plan.  If
a committee is appointed, all references in this Agreement to the “Board” shall
be deemed to refer to the committee.

    

    NOW,
THEREFORE, the parties to this Agreement, intending to be legally bound hereby,
agree as follows:

    

    1. Grant of
Option.

    

    (a) Subject
to the terms and conditions set forth in this Agreement and in the Plan, the
Company hereby grants to the Grantee an incentive stock option (the “Option”) to
purchase _____ shares of common stock of the Company (“Shares”) at an exercise
price of ___ ($___) per Share.  The Option shall become exercisable
according to Paragraph 2 below.

    

    (b) The
Option is designated as an incentive stock option, as described in Paragraph 5
below.  However, if and to the extent the Option exceeds the limits
for an incentive stock option, as described in Paragraph 5, the Option shall be
a nonqualified stock option.

    

    2. Exercisability of
Option.  The Option is fully vested and thus shall become fully
exercisable on the date hereof, if the Grantee is employed by, or providing
service to, the Employer (as defined in the Plan).  The exercisability
of the Option is cumulative, but shall not exceed 100% of the Shares subject to
the Option.  If the foregoing schedule would produce fractional
Shares, the number of Shares for which the Option becomes exercisable shall be
rounded down to the nearest whole Share.

    

    3. Term of
Option.  The Option shall have a term of five (5) years from
the Date of Grant and shall terminate at the expiration of that period, unless
it is terminated at an earlier date pursuant to the provisions of this Agreement
or the Plan.  Any portion of the Option that is not exercisable at the
time the Grantee ceases to be employed by, or provide service to, the Employer
shall immediately terminate.

    

    4. Exercise
Procedures.

    

    (a) Subject
to the provisions of Paragraphs 2 and 3 above, the Grantee may exercise part or
all of the exercisable Option by giving the Company written notice of intent to
exercise in the manner provided in this Agreement, specifying the number of
Shares as to which the Option is to be exercised and the method of
payment.  Payment of the exercise price shall be made in accordance
with procedures established by the Board from time to time based on type of
payment being made but, in any event, prior to issuance of the
Shares.  The Grantee shall pay the exercise price (i) in cash, (ii)
with the approval of the Board, by delivering Shares of the Company, which shall
be valued at their fair market value on the date of delivery, or by attestation
(on a form prescribed by the Board) to ownership of Shares having a fair market
value on the date of exercise equal to the exercise price, (iii) after a public
offering of the Company’s stock, by payment through a broker in accordance with
procedures permitted by Regulation T of the Federal Reserve Board or (iv) by
such other method as the Board may approve.  The Board may impose from
time to time such limitations as it deems appropriate on the use of Shares of
the Company to exercise the Option.

    

    (b) The
obligation of the Company to deliver Shares upon exercise of the Option shall be
subject to all applicable laws, rules, and regulations and such approvals by
governmental agencies as may be deemed appropriate by the Board, including such
actions as Company counsel shall deem necessary or appropriate to comply with
relevant securities laws and regulations.  The Company may require
that the Grantee (or other person exercising the Option after the Grantee’s
death) represent that the Grantee is purchasing Shares for the Grantee’s own
account and not with a view to or for sale in connection with any distribution
of the Shares, or such other representation as the Board deems
appropriate.

    

    (c) All
obligations of the Company under this Agreement shall be subject to the rights
of the Company as set forth in the Plan to withhold amounts required to be
withheld for any taxes, if applicable.  Subject to Board approval, the
Grantee may elect to satisfy any tax withholding obligation of the Employer with
respect to the Option by having Shares withheld up to an amount that does not
exceed the minimum applicable withholding tax rate for federal (including FICA),
state and local tax liabilities.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5. Designation as Incentive
Stock Option.

    

    (a) This
Option is designated an incentive stock option under Section 422 of the Internal
Revenue Code of 1986, as amended (the “Code”).  If the aggregate fair
market value of the stock on the date of the grant with respect to which
incentive stock options are exercisable for the first time by the Grantee during
any calendar year, under the Plan or any other stock option plan of the Company
or a parent or subsidiary, exceeds $100,000, then the Option, as to the excess,
shall be treated as a nonqualified stock option that does not meet the
requirements of Section 422.  If and to the extent that the Option
fails to qualify as an incentive stock option under the Code, the Option shall
remain outstanding according to its terms as a nonqualified stock
option.

    

    (b) The
Grantee understands that favorable incentive stock option tax treatment is
available only if the Option is exercised while the Grantee is an employee of
the Company or a parent or subsidiary of the Company or within a period of time
specified in the Code after the Grantee ceases to be an employee.  The
Grantee understands that the Grantee is responsible for the income tax
consequences of the Option, and, among other tax consequences, the Grantee
understands that he or she may be subject to the alternative minimum tax under
the Code in the year in which the Option is exercised.  The Grantee
will consult with his or her tax adviser regarding the tax consequences of the
Option.

    

    (c) The
Grantee agrees that the Grantee shall immediately notify the Company in writing
if the Grantee sells or otherwise disposes of any Shares acquired upon the
exercise of the Option and such sale or other disposition occurs on or before
the later of (i) two years after the Date of Grant or (ii) one year after the
exercise of the Option.  The Grantee also agrees to provide the
Company with any information requested by the Company with respect to such sale
or other disposition.

    

    6. Change of
Control.  The provisions of the Plan applicable to a Change of
Control shall apply to the Option, and, in the event of a Change of Control, the
Board may take such actions as it deems appropriate pursuant to the
Plan.

    

    7. Right of First Refusal;
Repurchase Right; Shareholder’s Agreement.  As a condition of
receiving this Option, the Grantee hereby agrees that all Shares issued under
the Plan shall be subject to a right of first refusal and repurchase right as
described in the Plan, and the Board may require that the Grantee (or other
person exercising the Option) execute a shareholder’s agreement, in such form as
the Board determines, with respect to all Shares issued upon the exercise of the
Option before a public offering of the Company’s stock.

    

    8. Restrictions on
Exercise.  Only the Grantee may exercise the Option during the
Grantee’s lifetime.  After the Grantee’s death, the Option shall be
exercisable (subject to the limitations specified in the Plan) solely by the
legal representatives of the Grantee, or by the person who acquires the right to
exercise the Option by will or by the laws of descent and distribution, to the
extent that the Option is exercisable pursuant to this Agreement.

    

    9. Grant Subject to Plan
Provisions.  This grant is made pursuant to the Plan, the terms
of which are incorporated herein by reference, and in all respects shall be
interpreted in accordance with the Plan.  The grant and exercise of
the Option are subject to interpretations, regulations and determinations
concerning the Plan established from time to time by the Board in accordance
with the provisions of the Plan, including, but not limited to, provisions
pertaining to (i) rights and obligations with respect to withholding taxes, (ii)
the registration, qualification or listing of the Shares, (iii) changes in
capitalization of the Company and (iv) other requirements of applicable
law.  The Board shall have the authority to interpret and construe the
Option pursuant to the terms of the Plan, and its decisions shall be conclusive
as to any questions arising hereunder.

    

    10. No Employment or Other
Rights.  The grant of the Option shall not confer upon the
Grantee any right to be retained by or in the employ or service of the Employer
and shall not interfere in any way with the right of the Employer to terminate
the Grantee’s employment or service at any time.  The right of the
Employer to terminate at will the Grantee’s employment or service at any time
for any reason is specifically reserved.

    

    11. No Shareholder
Rights.  Neither the Grantee, nor any person entitled to
exercise the Grantee’s rights in the event of the Grantee’s death, shall have
any of the rights and privileges of a shareholder with respect to the Shares
subject to the Option, until certificates for Shares have been issued upon the
exercise of the Option.

    

    12. Assignment and
Transfers.  The rights and interests of the Grantee under this
Agreement may not be sold, assigned, encumbered or otherwise transferred except,
in the event of the death of the Grantee, by will or by the laws of descent and
distribution.  In the event of any attempt by the Grantee to alienate,
assign, pledge, hypothecate, or otherwise dispose of the Option or any right
hereunder, except as provided for in this Agreement, or in the event of the levy
or any attachment, execution or similar process upon the rights or interests
hereby conferred, the Company may terminate the Option by notice to the Grantee,
and the Option and all rights hereunder shall thereupon become null and
void.  The rights and protections of the Company hereunder shall
extend to any successors or assigns of the Company and to the Company’s parents,
subsidiaries, and affiliates.  This Agreement may be assigned by the
Company without the Grantee’s consent.

    

    13. Applicable
Law.  The validity, construction, interpretation and effect of
this instrument shall be governed by and construed in accordance with the laws
of the State of Delaware, without giving effect to the conflicts of laws
provisions thereof.

    

    14. Notice.  Any
notice to the Company provided for in this instrument shall be addressed to the
Company in care of the President at Vemics, Inc., at the Company’s headquarters,
and any notice to the Grantee shall be addressed to such Grantee at the current
address shown on the payroll of the Employer, or to such other address as the
Grantee may designate to the Employer in writing.  Any notice shall be
delivered by hand, sent by telecopy or enclosed in a properly sealed envelope
addressed as stated above, registered and deposited, postage prepaid, in a post
office regularly maintained by the United States Postal Service.

    

    IN
WITNESS WHEREOF, the Company has caused its duly authorized officers to execute
and attest this Agreement, and the Grantee has executed this Agreement,
effective as of the Date of Grant.

    

    VEMICS, INC.

    

    Attest:

    

    

    By:                                                                

    

    

    I hereby
accept the Option described in this Agreement, and I agree to be bound by the
terms of the Plan and this Agreement.  I hereby further agree that all
the decisions and determinations of the Board shall be final and
binding.

    

    Grantee:                                                                

    

    

    Date:ex10-2.htm

    
      

    

    Exhibit
10.2

     

    SERVICES
AGREEMENT

    

    THIS VENDOR SERVICES AGREEMENT
(the “Agreement”) is
made and entered into as of the 15th day of July, 2008 (the “Effective Date”), between
United Marketing Solutions, Inc., a Virginia Corporation  whose
address is 7644 Dynatech Court, Springfield VA, 22153  (“CUSTOMER”) and ColorFX, LLC (a division of
Rock Communications), an Iowa Corporation, with offices at 10776 Aurora Avenue,
Urbandale, Iowa 50322 ("VENDOR”).  This
Agreement, as may be amended from time to time, together with each Statement of
Work (“SOW”) executed
between the parties, forms the agreement among the parties relating to the
provision of professional services as contemplated herein.

    
 

    In
consideration of the mutual promises contained herein, the parties agree as
follows:

    

    
      	
              1.

            	
              SERVICES

            

    

     

    
      	
               
      

            	
              1.1

            	
              Services
      Provided by VENDOR.  During the term of this Agreement,
      VENDOR agrees to provide certain turnkey printing services to CUSTOMER,
      and/or for the benefit of CUSTOMER’s clients, partners or affiliates, (the
      “Services”) which
      may be authorized by CUSTOMER from time to time, by the execution of SOWs
      as described in this Agreement. VENDOR shall not be obligated to provide
      any service and CUSTOMER shall not be obligated to pay for any service
      until an SOW or other written authorization has been executed in
      accordance with this Agreement. Furthermore, CUSTOMER shall not be
      obligated to pay for any service until an acceptable delivery is made in
      accord with the requirements of this Agreement, including, without
      limitation, the Warranty of Service set forth hereinbelow. It is
      understood by the parties that delivery by VENDOR shall be made to a
      independent contractor for CUSTOMER, Rees Associates, or other designated
      third parties.

            

    

     

    
      	
               
      

            	
              1.2

            	
              Warranty of
      Service.  VENDOR warrants that all materials produced and
      Services provided under this Agreement (a) will be of original development
      and will not infringe or violate any patent, copyright, trade secret,
      trademark, or other third party intellectual property rights; (b) will be
      performed in accordance with applicable laws and regulations; (c) will be
      free from defects in materials and faulty workmanship and conform to all
      specifications and the disclosed purposes of CUSTOMER and meet all
      specifications as they are contained in an SOW; (d) will be provided by
      VENDOR’s personnel having the appropriate level of skills and training;
      and (e) will be performed with care, skill and diligence, consistent with,
      or above applicable professional standards, in accordance with generally
      accepted industry standards.

            

    

     

    
      	
               
      

            	
              1.3

            	
              Point of
      Contact.  Each party shall designate a principal point of
      contact between the parties for all matters relating to services provided
      under a particular SOW.  A party may designate a new point of
      contact by written notice to the other party. 

            

    

     

    
      	
               
      

            	
              1.4Time is of
      the essence of VENDOR’s obligations hereunder. Deliveries and/or
      performance are to occur as specified by CUSTOMER. If VENDOR fails to meet
      any milestone date and/or schedule, CUSTOMER, without limiting its other
      rights or remedies as specified herein, may direct expedited routing and
      any excess costs incurred thereby shall be paid for by VENDOR. CUSTOMER
      shall not be liable for VENDOR’s commitments or production arrangements in
      excess to those of the CUSTOMER or in advance of the time necessary to
      meet CUSTOMER’s schedule.

            

    

     

    
      	
              2.

            	
              STATEMENTS OF
      WORK

            

    

     

    
      	
               
      

            	
              2.1

            	
              Issuance of
      Statements of Work.  All SOWs or other forms of written
      authorization executed between the parties shall be subject to the terms
      and conditions set forth in this Agreement.  Each SOW shall
      specify the scope and schedule of Printing Services to be performed by
      VENDOR for CUSTOMER and the applicable fees, which is attached hereto and
      incorporated herein by reference as Schedule “1”.  In the
      absence of express written agreement by the parties otherwise contained in
      a SOW (as set forth hereinbelow), in the event any provision contained in
      an SOW conflicts with any term, condition, or clause in this Services
      Agreement, the provisions of this Services Agreement shall control. In the
      event that the parties desire that the provisions of the SOW control, such
      SOW shall express that the conflict exists, is recognized by the parties
      and that the SOW shall control for that provision and that SOW
      only.  CUSTOMER may, at any time, upon notice to VENDOR, request
      changes to an SOW.  VENDOR will provide CUSTOMER with an
      estimate of the impact, if any of such requested changes on the project
      schedule and resources.  If the parties mutually agree to such
      changes, a written description of the agreed change will be prepared and
      executed between the parties and the relevant SOW will be amended
      accordingly.

            

    

     

    
      
        CUSTOMER

        Rev.
06/08

         

      

      
        1

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              2.2

            	
              Activation
      of Statements of Work.  An SOW under this Agreement shall
      become effective and binding once executed by both CUSTOMER and
      VENDOR.

            

    

     

    
      	
               
      

            	
              2.3

            	
              Termination
      of Statements of Work.  CUSTOMER may at any time
      terminate the Services pursuant to an SOW.  Upon termination of
      an SOW, VENDOR shall promptly turn over to CUSTOMER all documentation,
      programs, reports, data, materials, and work in process produced under
      such SOW and which was generated during the performance of the terminated
      SOW.

            

    

     

    
      	
              3.

            	
              COMPENSATION &
      PAYMENT.  VENDOR agrees to provide services to CUSTOMER,
      and CUSTOMER agrees to accept services and pay VENDOR for same as
      follows:

            

    

     

    
      	
               
      

            	
              3.1

            	
              Fees, Rates
      & Payment Terms.  The fees, rates, and payment terms
      for the services provided by the VENDOR shall be expressly set forth in
      each SOW.

            

    

     

    
      	
               
      

            	
              3.2

            	
              Invoices
      and Payments.  For all services, fees, expenses, amounts
      owed and reimbursements described in this Agreement, including any SOW,
      unless otherwise provided for in an SOW, VENDOR shall prepare and submit
      invoices to CUSTOMER which shall include reasonably detailed descriptions
      of the services performed during the period.  Invoices shall be
      submitted on a monthly basis for Services and materials delivered pursuant
      to Services accepted by CUSTOMER and shall describe the Services
      performed, and such other information relating to the Services as CUSTOMER
      may reasonably request.  CUSTOMER will pay to VENDOR the
      invoiced amounts within [redacted] days of receipt of the
      invoice.

            

    

     

    
      	
               
      

            	
              3.3

            	
              Records.  Each
      party will maintain complete and accurate records relating to any amounts
      invoiced or paid in connection with the services provided under this
      Agreement.

            

    

     

    
      	
              4.

            	
              TERM AND
      TERMINATION

            

    

     

    
      	
               
      

            	
              4.1

            	
              Term.  This
      Agreement will commence on the Effective Date and will remain in full
      force and effect until July 31, 2013 or  terminated as provided
      in this Section 4.

            

    

     

    
      	
               
      

            	
              4.2

            	
              Termination
      due to Breach.   In
      the event either party materially breaches this Agreement, the party not
      in breach may terminate this Agreement by giving written notice to the
      breaching party in accord with the agreements set forth
    below.

            

    

     

    
      	
               
      

            	
              (a)

            	
              If
      the breach/breaches are not cured within Twenty (20) days after written
      notice is given to the breaching party specifying the breach, the party
      not in breach may terminate this Agreement at the conclusion of the twenty
      day period and thereafter pursue any and all remedies subject to the
      provisions of this Agreement.

            

    

     

    
      	
               
      

            	
              (b)

            	
              In
      the event that the breach/breaches cannot reasonably be cured, the party
      not in breach may terminate this Agreement immediately by giving written
      notice to the breaching party and thereafter pursue any and all remedies
      subject to the provisions of this
Agreement.

            

    

     

    
      	
               
      

            	
              4.3

            	
              Termination
      for Insolvency.  Either party may terminate this
      Agreement upon written notice to the other party in the event such other
      party (i) seeks reorganization or release under the
      U.S.  Bankruptcy Code, (ii) seeks the appointment of a trustee,
      receiver or custodian, (iii) becomes the subject of a proceeding seeking
      the liquidation, winding-up, dissolution, reorganization or the like of
      such party, and such proceeding is not dismissed within sixty (60) days of
      the commencement thereof, (iv) makes an assignment for the benefit of
      creditors, or (v) has a substantial part of such party's property become
      subject to any levy, seizure, assignment, application or sale for or by
      any creditor or government agency. 

            

    

     

    
      
        CUSTOMER

        Rev.
06/08

         

      

      
        2

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              4.4

            	
              Termination
      for Convenience.   CUSTOMER or VENDOR may terminate
      this Services Agreement for convenience by a unilateral notice that
      provides one hundred eighty (180) days’ prior written notice of the
      effective date of the termination to the other party. The parties may
      otherwise, with express mutual written notice, terminate this Services
      Agreement for their mutual convenience at a mutually acceptable future
      termination date or upon the passage of mutually acceptable timeframe
      agreed between the parties.

            

    

     

    
      	
               
      

            	
              4.5

            	
              Effect of
      Termination.  Upon termination of this Agreement, or
      any SOW
      attached hereto, or any Services for any reason, (i) all materials,
      including without limitation, confidential information, provided by either
      party to the other will be promptly returned after the effective date of
      termination, and (ii) all earned and unpaid fees and expenses will become
      immediately due and payable.  Each party's termination rights
      set forth in this Agreement are cumulative and are in addition to all
      other rights and remedies available to the
  parties. 

            

    

     

    
      	
               
      

            	
              4.6

            	
              In
      the event of any termination of this Agreement by either CUSTOMER or
      VENDOR, CUSTOMER’s maximum liability to VENDOR shall not exceed the value
      of the unpaid portion of the Services actually completed by VENDOR and
      accepted by CUSTOMER as of the effective date of the
      termination.

            

    

     

    
      	
              5.

            	
              INDEMNIFICATION AND
      LIABILITY

            

    

     

    
      	
               
      

            	
              5.1

            	
              Indemnification.
      Subject to the limitation of liability set forth herein, as applicable
      pursuant to its express terms, CUSTOMER agrees at its expense to defend,
      indemnify, and save VENDOR harmless from any and all loss, claims, damages
      and expenses, including reasonable attorney’s fees, which VENDOR may
      suffer or incur arising out of a claim, charge or suit instituted against
      VENDOR by any person, firm, corporation, or other entity arising from,
      relating to, or as a result of (a) any breach of CUSTOMER’s
      responsibilities, warranties, representations, or covenants under this
      Agreement, or (b) the materials furnished by CUSTOMER for use or inclusion
      in the Work.  Notwithstanding the foregoing, CUSTOMER’s
      indemnification of VENDOR shall not extend to losses, claims or damages
      arising from the goods or services of its advertisers, or as a result of
      VENDOR’s gross negligence or willful misconduct or
      omissions.

            

    

    

    Subject
to the limitation of liability set forth herein, as applicable pursuant to its
express terms, VENDOR agrees at
its expense to defend, indemnify, and save CUSTOMER harmless from any and all
loss, claims, damages and expenses, including reasonable attorney’s fees, which
CUSTOMER may suffer or incur arising out of a claim, charge or suit instituted
against CUSTOMER by any person, firm, corporation, or other entity arising from,
relating to, or as a result of (a) VENDOR’s conduct of its business or its acts
or omissions, in performing under this Agreement; (b) a breach by VENDOR of its
responsibilities, warranties, representations, or covenants under this
Agreement.  Notwithstanding the foregoing, VENDOR’s indemnification of
CUSTOMER shall not extend to losses, claims or damages arising as a result of
CUSTOMER’s gross negligence or willful misconduct or
omissions.

     

    
      	
               
      

            	
              5.2

            	
              Limitation
      of Liability.   Except for claims against VENDOR
      arising under sections 1(b) (warranty of services), 5 (indemnification and
      liability), 6 (proprietary information) and 8.1 (VENDOR’s representations
      and warranties), and for tortious interference with contractual relations,
      in no event shall either party be liable to the other for indirect,
      special, incidental, consequential, punitive, exemplary or tort damages
      (including, without limitation, any damages resulting from loss of use,
      loss of data, loss of profits or loss of business) arising out of or in
      connection with this agreement or the subject matter thereof, whether or
      not either party has been advised of the possibility of such
      damages.

            

    

     

    
      
        CUSTOMER

        Rev.
06/08

         

      

      
        3

        
          

        

      

      
         

      

    

     

    
      	
              6.

            	
              PROPRIETARY
      INFORMATION

            

    

     

    
      	
               
      

            	
              6.1

            	
              “Confidential
      Information”
      means
      confidential and proprietary business and/or technical information
      or any information that may
      have commercial or other value in CUSTOMER’s business, or that of its client, partner,
      or affiliate, and is
      confidential or proprietary in nature, including but not limited to:
      (a) trade secrets, inventions,
      granted or pending patents, copyrights, and trademarks, (b) concepts, know-how, ideas,
      techniques, discoveries, and improvements, (c) algorithms, formulas,
      specifications, research, client information, client
      marketing development, data, databases, ,
      (d) technical or other
      representations, documentation, diagrams, and flow charts, and
      (e) other , business, financial,
      customer, supplier and product development plans or information,
      product pricing
      information, customer pricing information, schedules, forecasts, strategies,
      marketing plans, techniques, and other similar information.  Confidential
      Information may be written or verbally communicated information which: (i)
      if in tangible form, has been marked trade secret, confidential,
      proprietary or with words of similar import; (ii) if oral or other
      intangible form, which is stated to be confidential at the time of
      disclosure; or (iii) even if not so marked, stated or described which
      VENDOR should have considered under the circumstances of its disclosure to
      be trade secret, confidential or proprietary information of
      CUSTOMER.  Confidential Information may include information that
      is confidential or proprietary to CUSTOMER’s clients, partners or
      affiliates for which CUSTOMER is authorized to disclosed solely for the
      purposes of providing services to such clients, partners or
      affiliates. Confidential
      Information does not include information that: (1) is or becomes generally
      available to the public other than as a result of a disclosure in breach
      of this Agreement; (2) is or becomes available VENDOR on a
      non-confidential basis from a source other than CUSTOMER, that is not
      bound by a confidentiality or similar agreement prohibiting the disclosure
      thereof; (3) is within VENDOR’s possession prior to being furnished,
      provided that the VENDOR can establish with appropriate documentation that
      the same or substantially similar data or information was already in
      VENDOR’s possession at the time of disclosure by CUSTOMER; or (4) has been
      independently developed by VENDOR, provided VENDOR can establish with
      appropriate documentation that the same or substantially similar data or
      information was developed by VENDOR without reference to, use of, or
      reliance upon the data or information disclosed by
    CUSTOMER.

            

    

     

    
      	
              7.

            	
              DISPUTE
      RESOLUTION

            

    

     

    
      	
               
      

            	
              7.1

            	
              Definition
      of Dispute.  Any controversy or claim, whether based on
      contract, tort, misrepresentation, or any other legal theory, related
      directly or indirectly to this Agreement ("Dispute"), shall be
      resolved solely in accordance with the terms of this Section
      7.  Either party reserves the right to seek an injunction or
      other equitable relief in court to prevent or stop a breach of this
      Agreement or a violation of rights either party has under
    law.

            

    

     

    
      	
               
      

            	
              7.2

            	
              Material
      Dispute Resolution.   In the event of a material
      dispute concerning the terms or performance hereunder, CUSTOMER and VENDOR
      hereby agree that (i) they will first attempt, in good faith, to resolve
      such dispute through direct negotiation within thirty (30) days of the
      date either party notifies the other party of the existence of a
      dispute.  If a shorter time period is indicated by the
      circumstances, the parties agree that the time period shall be reduced
      accordingly.

            

    

     

    
      	
              8.

            	
              GENERAL

            

    

     

    
      	
               
      

            	
              8.1

            	
              Representations
      and Warranties.  VENDOR represents and warrants that: (a)
      it is financially solvent and has the ability to perform its obligations
      hereunder; (b) it has not entered into and will not enter into any other
      agreement that conflicts with this Agreement or limits its ability to
      perform the Services; (c) it has full authority and sufficient right,
      title, and interest in and to its work product used in the course of the
      Services; and (d) the Services or anything developed, created or provided
      by VENDOR do not infringe any patent, trademark, copyright, trade secret
      or other proprietary right of any third
party.

            

    

     

    
      	
               
      

            	
              8.2

            	
              Assignments.  Neither
      party will assign this Agreement, in whole or in part, without the other
      party's prior written consent; provided, however, that either party may
      assign this Agreement and any applicable SOW to any entity that is
      wholly-owned, directly or indirectly, by such party or to any entity which
      acquires all or substantially all of the business or assets of such party,
      without the prior written consent of the other party, provided that such
      assignee agree in writing to the terms and conditions of this
      Agreement.  Any attempted assignment of this Agreement other
      than as permitted above will be null and void.  Subject to the
      foregoing, this Agreement shall be binding upon and shall inure to the
      benefit of both parties, their successors and permitted
      assigns.

            

    

     

    
      
        CUSTOMER

        Rev.
06/08

         

      

      
        4

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              8.3

            	
              Notices.  All
      notices, requests, demands and other communications to be given in
      connection with this Agreement shall be made in writing and shall be
      deemed sufficiently given if given in writing and be sent to the addresses
      set forth below or to such other address as either party may from time to
      time specify in writing, and shall be deemed given as indicated: (a) upon
      personal delivery when actually delivered; (b) by overnight courier, upon
      written verification of receipt; (c) by facsimile transmission or other
      electronic transmission, upon acknowledgement of receipt of electronic
      transmission; or (d) by certified or registered mail, return receipt
      requested, upon verification of
receipt.:

            

    

     

    
      	
              To
      CUSTOMER:

              United
      Marketing Solutions, Inc.

              7644
      Dynatech Court

              Springfield,
      VA 22153

              Attention:  Darryl Reed,
      President

              (___)
      ___-____

              (___)
      ___-____ Telefax

            

    

    

    
      	
              To
      VENDOR:

              COLORFX,
      INC. 10776 Aurora Avenue

              Urbandale,
      Iowa 50322

              Attention:  Jon Troen,
      President

              ________

              ________
  Telefax

            

    

    
      	 	 	 
	
               
      

            	
              8.4

            	
              Independent
      Contractor.  The
      relationship between VENDOR and CUSTOMER shall be at all times that of
      independent contractor.  Neither party has the authority to bind
      the other party nor to incur any obligation on behalf of the
      other.  CUSTOMER and VENDOR shall be responsible for and shall
      pay promptly all federal, state, and municipal taxes, charges and
      assessments with respect to its employees or agents, including but not
      limited to, social security, unemployment, federal and state withholding
      and other taxes.  Neither party may sign contracts for, or
      handle cash or negotiable instruments of the other party without such
      party’s written consent.  VENDOR is solely responsible for all
      of its employees and agents and its labor cost and expenses and for any
      and all claims, liabilities or damages or debts of any type whatsoever
      that may arise on account of its activities or those of its employees or
      agents in the performance of the Services pursuant to this
      Agreement.

            

    

     

    
      	
               
      

            	
              8.5

            	
              Non-Solicitation.  During
      the term of this Agreement and for a period of twelve (12) months
      thereafter, neither party shall, on its own or on behalf of any other
      person or entity (i) hire or solicit any employee or independent
      contractor of the other party except through a general advertisement; (ii)
      in any manner attempt to influence or induce any employee or independent
      contractor of the other party to leave the employment of such party; (iii)
      disclose to any person or entity any information obtained while rendering
      services to or receiving services from the other party concerning the
      names and addresses of the other party’s employees or independent
      contractors; or (iv) otherwise interfere with the relationship of the
      other party and its employees or independent
  contractors.

            

    

     

    
      	
               
      

            	
              8.6

            	
              Force
      Majeure.  Neither party shall be liable for any failure
      to perform its obligations under this Agreement if prevented from doing so
      by a cause or causes beyond its reasonable control as applicable under law
      as a force majeure condition.

            

    

     

    
      	
               
      

            	
              8.7

            	
              Business
      Days.  Whenever the terms of this Agreement call for the
      performance of a specific act on a specified date, which date falls on a
      Saturday, Sunday or legal U.S. holiday, the date for the performance of
      such act shall be postponed to the next succeeding regular business day
      following such Saturday, Sunday or legal U.S.
  holiday.

            

    

     

    
      
        CUSTOMER

        Rev.
06/08

         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              8.8

            	
              Severability.  If
      any provision of this Agreement is held to be illegal, invalid or
      unenforceable, such provision will be fully severable and this Agreement
      will be construed and enforced as if such illegal, invalid or
      unenforceable provision never comprised a part hereof; and the remaining
      provisions hereof will remain in full force and effect and will not be
      affected by the illegal, invalid or unenforceable provision or by its
      severance herefrom.  Furthermore, in lieu of such illegal,
      invalid or unenforceable provision, there will be added automatically as
      part of this Agreement, a provision as similar in its terms to such
      illegal, invalid or unenforceable provision as may be possible and be
      legal, valid and enforceable.

            

    

     

    
      	
              9.

            	
              GOVERNING
      LAW.  ALL PROVISIONS OF THIS AGREEMENT SHALL BE SUBJECT
      TO, ENFORCED AND CONSTRUED PURSUANT TO THE LAWS OF THE COMMONWEALTH OF
      VIRGINIA, WITHOUT REGARD, TO ITS CONFLICT OF LAWS
    PRINCIPLES.

            

    

     

    
      	
              10.

            	
              Entire
      Agreement/Amendment.  This Agreement, any executed SOW
      and any exhibits attached hereto contain the entire understanding between
      the parties with respect to the subject matter hereof and supersede all
      prior or contemporaneous negotiations and agreements, oral or written,
      between them regarding the subject matter hereof and constitute the entire
      agreement of whatsoever kind or nature existing between the parties
      respecting the subject matter hereof.  As between the parties,
      no oral statements or prior written material not specifically incorporated
      herein shall be of any force and effect; the parties specifically
      acknowledge that in entering into and executing this Agreement, the
      parties relied solely upon the representations and agreements contained in
      this Agreement and no others.  All prior or contemporaneous
      representations or agreements, whether written or verbal, not expressly
      incorporated herein are superseded and no changes in or additions to this
      Agreement shall be recognized unless and until made in writing by all
      parties hereto.

            

    

     

    
      	
              11.

            	
              Counterpart
      Execution.  This Agreement may be executed in multiple
      counterparts, including by facsimile or other electronic transmission, and
      each of which shall be deemed to be an original and all of which together
      shall constitute but one and the same
    instrument.  

            

    

     

    
      	
              12.

            	
              Attorney’s
      Fees.  If any action at law or in equity, including an
      action for declaratory relief, is brought to enforce or interpret the
      provisions of this Agreement, the prevailing party shall be entitled, in
      addition to other such relief as may be granted, to a reasonable sum as
      and for attorney's fees, costs of collection, and costs of any litigation,
      which fees may be set by the court in the trial of such action or may be
      enforced in a separate action brought for that
  purpose.

            

    

     

    
      	
              13.

            	
              No
      Waiver.  The failure of either party to require
      performance by the other party of any provision hereof shall not affect
      the full right to require such performance at any time 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

            

    

     

    
      	
              14.

            	
              Interpretation.  Headings
      used in this Agreement are for convenience only and will not be deemed to
      be operative text.  Terms of gender will be deemed
      interchangeable as will singular and plural terms, in each case unless the
      context otherwise requires.  All monetary amounts used herein
      will be deemed to refer to current U.S. dollars, unless the context
      otherwise requires.

            

    

     

    IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be executed by their authorized
agents as and made effective as of the date first above written.

     

    
      
        CUSTOMER

        Rev.
06/08

         

      

      
        6

        
          

        

      

      
         

      

    

     

    
      	
              United
      Marketing Solutions, Inc.

              7644
      Dynatech Court

              Springfield,
      VA 22153

              Phone:(703)
      644-0200

              Fax:              (703)
      455-8519

               

              _________________________________________________

              Signature

               

              Printed
      Name:  Darryl Reed, President

               

            	
              ColorFX,
      Inc.

              10776
      Aurora Avenue

              Urbandale,
      Iowa 50322

              Phone:                  (515)
      284-0402

              Fax:                  (515)
      299-1200____

               

              _________________________________________________

              Signature

               

              Printed
      Name:  Jon Troen, President

               

            

    

    

    

    Exhibits
Attached:

    

    Schedule
1 – [redacted]

     

     

     

    CUSTOMER

    Rev. 06/08

    7

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