Document:

icct_ex101.htm

 
 EXHIBIT 10.1
  
 SETTLEMENT AGREEMENT AND RELEASE
  
 This Settlement Agreement and Release (the “Agreement”) is made effective as of the 1st day of November, 2022 (the “Effective Date”) by and between iCoreConnect, Inc., a Nevada corporation (“iCore”), on the one hand, and Sonoran Pacific Resources, LLP, an Arizona limited liability partnership (“SPR”) and Jerry Smith (“Smith”), on the other hand, each of which hereinafter may be referred to individually as a “Party,” and both of which hereinafter may be referred to collectively as the “Parties”.
  
 RECITALS
  
 A. iCore is engaged in the development, management, and sale of software applications intended to increase productivity and profitability for health care practices.
  
 B. As of the Effective Date, and in part due to that certain Recapitalization Agreement dated as of November 1, 2016 (the “Recap Agreement”), SPR, and various affiliates of it or its principal Smith (collectively, the “SPR Shareholders”), own 14,401,887 shares of common stock in iCore, as more specifically set forth in the list attached hereto as Exhibit “A” (the “Shareholder List.”)
  
 C. Beginning in, or around 2009, SPR and Smith (“Smith”) began making certain financial accommodations to iCore.
  
 D. Ultimately, a series of disputes arose regarding the existence and amount of any debt owed by iCore to SPR or Smith.
  
 E. At present, SPR and Smith assert that the following are owed by iCore:
  
 1. A collateral fee in the amount of approximately $455,421.94 (the “Collateral Fee”) relating to certain financial accommodations provided to iCore in connection with a loan from Western Savings Bank;
  
 2. Accrued and unpaid interest at the rate of 18% per annum (“AccruedI nterest”) on certain loan advances made by SPR to iCore totaling $220,000 between June 2017 and April 2018;
  
 3. $23,625.14, and unpaid interest on such amount, relating to certain credit card accommodations provided by SPR to iCore between April and July 2018 (the “Chase Accommodations”); and
  
 4. Attorneys’ fees incurred by SPR in the amount of approximately $58,125 (the “Attorney’s Fees,” and collectively with the Collateral Fee, the Accrued Interest, and the Chase accommodations, the “Financial Accommodations”).
  
 F. SPR asserts that all of the Financial Accommodations are secured by a blanket lien on all of iCore’s assets (the “Security Interest”) pursuant to that certain Omnibus Agreement dated February 28, 2014 (the “Omnibus Agreement”), which liens were allegedly perfected through the filing or recording of one or more financing statements, fixture filings, or other documents, including that certain UCC-1 filed with the Nevada Secretary of State as Filing No. 2019034092-8 (the “Nevada UCC-1”).
  
  
 
 
 
 	 
	
	

	 

 
 
  
 
 
 
 
 
 
 
 G. iCore asserts that it has fully satisfied all of its obligations to SPR and Smith, and that nothing remains due from iCore in connection with the Financial Accommodations.
  
 H. On August 18, 2021, SPR delivered to iCore a Notice of Disposition of Collateral, pursuant to which SPR gave notice of its intention to foreclose the Security Interest and conduct a foreclosure sale of iCore’s assets (the “Foreclosure Sale”) due to alleged defaults arising in connection with the Financial Accommodations.
  
 I. On October 5, 2021, iCore filed its Verified Complaint for (a) Preliminary and Permanent Injunction; (b) Declaratory Relief; (c) Breach of Contract; and (d) Breach of the Covenant of Good Faith and Fair Dealing (the “Complaint”), thereby commencing the litigation presently pending before the Maricopa County Superior Court as Case No. CV2021-015646 (the “Litigation”).
  
 J. At a hearing held on October 11, 2021, the Court presiding over the Litigation entered an order temporarily enjoining the Foreclosure Sale (the “TRO”).
  
 K. As a condition of the TRO, iCore was required to, and did, post a cash bond in the amount of $200,000 (the “Cash Bond”), which presently remains on deposit with the Court.
  
 L. On October 8, 2021, SPR filed its Verified Answer to Complaint and Counterclaim (the “Counterclaim”), which, among other things, asserted claims against iCore for breach of contract and unjust enrichment.
  
 M. By agreement of the Parties, the TRO has been extended and the Foreclosure Sale has been continued.
  
 N. On September 12, 2022, the Parties participated in a mediation and engaged in good faith and fruitful negotiations, and now wish to resolve all of the disputes existing between them on the terms and conditions set forth herein.
  
 NOW, THEREFORE, for good and valuable consideration, the sufficiency of which is hereby acknowledged, the Parties hereby agree as follows:
  
 AGREEMENT
  
 1. Acquisition or Redemption of Shares. On, or before, the sixtieth (60th) day following the Effective Date (the “Payment Date”), iCore shall redeem, and/or or iCore’s designee shall acquire, a total of Nine Million (9,000,000) shares of iCore’s common stock from the SPR Shareholders (the “Acquired Shares”) at the cost of eight cents ($.08) per share. The Acquired Shares shall include the 5,621,465 shares owned by the following SPR Shareholders, in the following amounts (the “Smith Related Shares”), as reflected in the Shareholder List:
  
 a. Sonoran Pacific Resources – 4,087,279
 b. JD Investments, Inc. – 112
 c. Sonoran Pacific Foundation – 827,962
 d. Family Life Ministries – 706,112
  
 Any Acquired Shares remaining after acquisition of the Smith Related Shares, and any others discovered to be owned, directly or indirectly by Smith or any SPR Shareholder, shall be allocated, at SPR’s discretion, to shares owned by Ralph Broetje or John Lang.
  
  
 
 
 
 	 
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 In addition to the Acquired Shares, iCore or its designee will have the option, but not the obligation, to acquire or redeem any or all of the other shares identified in the Shareholder List on the Payment Date, at the cost of eight cents ($.08) per share. iCore shall also have the option to extend the Payment Date by thirty (30) days by payment of $100,000 to SPR. If iCore elects to exercise this option and extend the Payment Date, the $100,000 paid to SPR in exchange for the extension of the Payment Date shall be credited against the purchase price for the Acquired Shares.
  
 2. Affirmation of the Shareholder List. SPR represents that the Shareholder List accurately and comprehensively identifies the shares owned by all of the SPR Shareholders and their affiliates. To the extent the Shareholder List is subsequently determined to be inaccurate, the Parties will cooperate to re-identify the Acquired Shares with the objective of first designating as Acquired Shares any share owned or controlled, directly or indirectly, by SPR, Smith, or Smith’s family members, or any other SPR Shareholder.
  
 3. Transfer of Shares and Funds Through Escrow. The transfer of all funds from iCore or its designees, and the transfer of all shares by the SPR Shareholders, called for hereunder shall be managed by a mutually acceptable escrow agent (the “Escrow Agent”) and in accordance with the Escrow Agreement attached hereto as Exhibit “B.” The costs of the Escrow Agent will be shared equally by iCore and SPR.
  
 iCore cannot control the timing of the delivery of the Acquired Shares. As such, iCore and its designees shall have fulfilled their obligation to redeem or purchase the Acquired Shares by depositing with the Escrow Agent, on or before the Payment Deadline, at least the sum of
 $620,000 (i.e., the total purchase price of the Acquired Shares, less funds from the Cash Bond described in Paragraph 5 below) for the purchase of the Acquired Shares and any other shares identified in the Shareholder List to be acquired. In the event that SPR is unable to timely deliver the Acquired Shares, and any other shares identified in the Shareholder List to be acquired, SPR will continue to take whatever actions are necessary to properly deliver such shares to the Escrow Agent, and the holders of such shares shall be paid, at the rate of $.08 (eight cents) per share, by the Escrow Agent as shares are delivered.
  
 4. Surrender of Shares / Securities Matters. No later than ten (10) business days prior to the Payment Date, SPR shall deliver to the Escrow Agent all certificates representing all Acquired Shares and any other shares identified in the Shareholder List to be acquired. All certificates shall be properly endorsed in blank or accompanied by stock powers separate from certificates duly executed by the respective shareholder. If any certificates have been lost, stolen or destroyed, SPR shall obtain a notarized affidavit from the shareholder owning the shares attesting that such certificate has been lost, stolen or destroyed and SPR shall indemnify iCore against any claim that may be made with respect to such lost, stolen or destroyed certificate.
  
 To the extent necessary, in addition to the foregoing, SPR shall take whatever other actions are necessary to legally and sufficiently deliver clear and unencumbered title to each Acquired Share, and any other shares identified in the Shareholder List to be acquired, to the Escrow Agent, as soon as possible but no later than ten (10) business days prior to the Payment Date. iCore shall, within five (5) business days of the deposit of the shares with the Escrow
  
  
 
 
 
 	 
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 Agent commence whatever action is necessary to eliminate or modify any restrictions on the Acquired Shares, and any of the other shares identified in the Shareholder List to be acquired, so that such shares can be transferred in the manner provided in the Agreement. With respect to any of the shares identified in the Shareholder List that are not transferred to iCore or its designees hereunder, so long as iCore does not incur any expense in doing so, iCore will sign any document reasonably requested by, and otherwise cooperate with, the holders of such shares in the process necessary to remove any restrictions applicable to such shares so that they can be freely transferable to others, without violation of any otherwise applicable law or stock restriction. SPR hereby covenants and warrants that it can, and will, ensure that none of the shares identified in the Shareholder List are sold, or otherwise transferred or encumbered, unless and until iCore does not acquire them under the terms of the Agreement.
  
 The Parties acknowledge that ancillary documentation or action may be required (e.g. by the implicated transfer agent) to eliminate share restrictions and transfer shares in the manner, and within the time periods, provided in this Agreement. iCore, on the one hand, and SPR and Smith, on behalf of themselves and the SPR Shareholders, on the other hand, agree that they will promptly sign whatever documents, and take whatever actions, are reasonably necessary to carry out the terms of this Agreement within the time periods provided herein. The Parties agree that neither they, nor their respective principals, will take any action, or fail to take any action, that will unreasonably delay or hinder the transfer of shares or the payments by the Escrow Agent called for under this Agreement.
  
 5. Distribution of the Cash Bond. The Parties hereby agree that $100,000 of the Cash Bond shall be released to SPR upon full execution of this Agreement. This $100,000 shall serve as a non-refundable deposit and, assuming iCore performs its obligations under this Agreement, shall be credited toward the purchase price of the Acquired Shares. The remaining $100,000 of the Cash Bond shall be released to SPR on the Payment Date and shall serve as consideration for the release of all claims and liens and the dismissal of the Litigation. If iCore does not perform its obligations under this Agreement, this remaining $100,000 shall remain on deposit with the Court until the Court orders otherwise, and the Parties shall resume the Litigation without any prejudice to their respective claims or defenses. The Parties shall make whatever filings are necessary to distribute the Cash Bond in the manner provided herein, but understand that the precise timing of the release of funds from the Cash Bond will be dictated by the Court, and therefore no party shall be in default of this Agreement as a result of a delay in distribution of any portion of the Cash Bond.
  
 6. Suspension and Subsequent Dismissal of the Litigation. Within five (5) business days of the Effective Date, the Parties shall take whatever actions, and make whatever filings are necessary, to completely suspend the litigation until the Payment Date, and extend any remaining deadlines to a date that is not less than 30 days after the Payment Date. Within five (5) business days of the Payment Date, conditioned upon iCore’s performance under this Agreement, the Parties shall dismiss the Litigation, with prejudice, with each Party to bear its own fees and costs.
  
  
 
 
 
 	 
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 7. Release and Termination of All Liens. Within five (5) business days of the Payment Date, conditioned upon delivery to the Escrow Agent of at least $620,000 on, or before, the Payment Date, SPR shall terminate all UCC-1 financing statements filed against iCore, its predecessors, successors, and affiliates, and make any additional filings or recordings reasonably necessary to evidence the elimination of any and all liens or security interest asserted by SPR, Smith or their respective affiliates against iCore or its affiliates, including, but not limited to, filing a termination statement relating to the Nevada UCC-1 with the Nevada Secretary of State.
  
 8. Resignation of J.D. Smith. Effective on the Payment Date, conditioned upon delivery to the Escrow Agent of at least $620,000 on, or before, the Payment Date, J.D. Smith shall immediately resign his position as a Director and Chairman of iCore’s Board of Directors.
  
 9. Third Party Action. The Parties acknowledge that this Agreement requires that the SPR Shareholders transfer their shares in iCore and J.D. Smith resign his position(s) on iCore’s Board of Directors. Many of the SPR Shareholders, and J.D. Smith, are not party to this Agreement. SPR and Smith represent and warrant, however, that they can and will cause the SPR Shareholders and J.D. Smith to act in accordance with this Agreement. In the event that any SPR Shareholder or J.D. Smith shall not act in accordance with this Agreement, it shall be deemed a breach of this Agreement by SPR, which shall entitle iCore to pursue against SPR, as if it had breached this Agreement, any right or remedy available at law or in equity. Notwithstanding the foregoing and anything herein to the contrary, the Parties hereby agree and acknowledge that there are no third-party beneficiaries to this Agreement.
  
 10. Release of Claims Against iCore. As of the Payment Date, conditioned only upon (a) delivery to the Escrow Agent of at least $620,000 on, or before, the Payment Date, and (b) SPR’s receipt of the $200,000 Cash Bond, in the manner described in Paragraph 5 above, SPR and Smith, and all those claiming through or on behalf of either of them, including, but not limited to, affiliates, subsidiaries, parents, companies, representatives, partners, attorneys, agents, predecessors and successors, in interest or otherwise, heirs and assigns, release, acquit, relieve, and forever discharge iCore and its representatives, affiliates, directors, officers, shareholders, attorneys, agents, predecessors, successors, and assigns, from any and all claims, rights, actions, complaints, demands, causes of action, obligations, promises, contracts, agreements, controversies, suits, debts, expenses, damages, attorneys’ fees, costs, and/or liabilities of any nature whatsoever, whether or not now known, suspected or claimed, matured or unmatured, existing or potential, fixed or contingent, including, but not limited to, any and all claims, debts, suits, and obligations arising out of, or related to iCore, the Financial Accommodations, the Omnibus Agreement, the Recap Agreement, the negotiation or performance of this Agreement, or the Acquired Shares, and any claims made, or that could have been made, in the Litigation. To be clear, any enforceable obligations of Robert McDermott, the chief executive officer of iCore, to Smith with respect to a separate loan by Smith to McDermott, is not released hereby.
  
 11. Release of Claims Against SPR. As of the Payment Date, conditioned only upon performance of the obligations under this Agreement by SPR, the SPR Shareholders, and J.D. Smith, iCore and all those claiming through it or on its behalf, including, but not limited to, affiliates, subsidiaries, parents, companies, representatives, partners, attorneys, agents, predecessors and successors, in interest or otherwise, and assigns, release, acquit, relieve, and forever discharge SPR and Smith and their representatives, affiliates, directors, officers, attorneys, agents, heirs, successors, and assigns, from any and all claims, rights, actions, complaints, demands, causes of action, obligations, promises, contracts, agreements, controversies, suits, debts, expenses, damages, attorneys’ fees, costs, and/or liabilities of any nature whatsoever, whether or not now known, suspected or claimed, matured or unmatured, existing or potential, fixed or contingent, including, but not limited to, any and all claims, debts, suits, and obligations arising out of, or related to iCore, the Financial Accommodations, the Omnibus Agreement, the Recap Agreement, the negotiation or performance of this Agreement, or the Acquired Shares, including, and any claims made, or that could have been made, in the Litigation.
  
  
 
 
 
 	 
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 12. Mutual Representations and Warranties. The Parties hereto hereby represent and warrant to each other as follows: 
  
 A. Each Party has received or had the opportunity to receive independent legal, financial, and tax advice from the professionals of its choice with respect to the advisability of entering into this Agreement and the releases provided for herein.
  
 B. Except as expressly stated in this Agreement, no Party has made any statement or representation to the other Party regarding any fact, which statement or representation is relied upon by any Party in entering into this Agreement. In connection with the execution of this Agreement or the negotiating of the terms provided for herein, no Party to this Agreement has relied upon any statement, representation, or promise of any other Party not expressly contained herein.
  
 C. This Agreement has been duly and validly authorized, executed, and delivered by the Parties, and no other action is required for the valid and binding execution, delivery, and performance of this Agreement by the Parties.
  
 13. Full Authority. The individuals signing below represent and warrant to each other and the Parties that they have full power, authority, and legal right to execute this Agreement on behalf of the Party for which they are signing. Each Party represents to each other Party it has not executed this Agreement under any duress, undue pressure, or fraud, and that each Party is legally and equitably bound by the express terms, or representations, warranties, covenants, and conditions contained herein.
  
 14. Modifications. This Agreement may not be amended, canceled, revoked, or otherwise modified except by written agreement subscribed by all of the Parties.
  
 15. Severability. If any provision of this Agreement is held to be void, voidable, or unenforceable, then the remaining provisions remain in full force and effect.
  
  
 
 
 
 	 
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 16. Notice. Any notice provided to the Parties in connection with this Agreement will be in writing sent via U.S. Mail and email to the following addresses:
  
 iCore:
 Robert McDermott President and CEO
 529 E. Crown Road, Suite 250
 Ocoee, FL 34761
 and a copy to their counsel: 
 Wesley D. Ray
  
Sacks Tierney P.A.
 4250 N. Drinkwater Blvd., 4th Floor
 Scottsdale, AZ 85251-3693
  
 SPR or Smith:
 10632 N. Scottsdale Road, #B208
 Scottsdale, AZ 85254
  
 and a copy to its counsel:
 Steven Oman
  
Provident Law
 14646 N. Kierland Blvd., Ste. 230
 Scottsdale, AZ 85254
  
 17. Calculation of Time Periods. Unless otherwise specified, in computing any period of time or deadline described herein, the day of the act or event upon which the designated period of time begins to run is not to be included and the last day of the period so computed is to be included, unless such last day is a Saturday, Sunday or legal holiday for national banks in the State of Arizona, in which event the period shall run until the end of the next day which is neither a Saturday, Sunday, or legal holiday. The last day of any period of time described herein shall be deemed to end at 5:00 p.m. MST.
  
 18. Governing Law. This Agreement shall be construed under and governed by the laws of the State of Arizona, without regard for its conflict of law principles.
  
  
 
 
 
 	 
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 19. Attorneys’ Fees and Costs. In the event legal proceedings must be instituted to enforce this Agreement, the prevailing Party shall be entitled to recover from the other Party its attorneys’ fees and costs incurred in such proceedings.
  
 20. Entire Agreement. This Agreement contains the entire agreement and understanding between the Parties and supersedes all prior negotiations, agreements and understandings, oral or written, concerning the matters covered by this Agreement.
  
 21. Counterparts. This Agreement may be executed in one or more counterparts, each of which when executed and delivered is an original, and all of which when executed constitute one and the same instrument. Any Party may deliver its signed counterpart of this Agreement to the other Party by facsimile or e-mail transmission and such delivery is deemed made upon receipt of such transmission by the other Party (with proof of facsimile or e-mail transmission) and shall have the same force and effect as a counterpart bearing an original signature.
  
 22. Successors and Assigns. This Agreement shall in all respects bind and inure to the successors in interest and assigns of the Parties hereto.
  
  
 
 
 
 	 SONORAN PACIFIC RESOURCES, LLP
	  
	  
	 iCORECONNECT, INC.,

	  
	  
	  
		  

	 /s/ JERRY SMITH
	  
	  
	 By 
	 /s/ Robert McDermott

	 By JD Investments, Inc.
	  
	  
		  

	 Its General Partner
	  
	  
	 Its: 
	 CEO

	 By Jerry Smith
	  
	  
		 11/3/22

	 Its: President
	  
	  
		  

	  
	  
	  
	  
	  

	  
	  
	  
	  
	  

	 JERRY SMITH
	  
	  
		  

	 /s/ JERRY SMITH
	  
	  
	  
	  

 
 
  
 
 
 
 
 
 
 
  
 
 
 
 	 
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 EXHIBIT A
  
  
 
 
 
 	 
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 	 Shareholder
	 Shares

	 Sonoran Pacific Resources, LLP
	 4,087,279

	 JD Investments, Inc.
	 112

	 Sonoran Pacific Foundation
	 827,962

	 Family Life Educational Ministries
	 706,112

	 Ralph Broetje
	 1,222,222

	 John Lang
	 7,558,200

	 JD Smith
	  

	  
	  

	 Total
	 14,401,887

 
 
  
 
 
 
 
 
 
 
  
 
 
 
 	 
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 EXHIBIT B
  
  
 
 
 
 	 
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 ESCROW AGREEMENT
  
 THIS ESCROW AGREEMENT (“Escrow Agreement”) is made this 1st day of November, 2022, by and between SONORAN PACIFIC RESOURCES, LLP, an Arizona limited liability partnership (“SPR”), ICORECONNECT, INC., a Nevada corporation (“iCore”), and ARIZONA ESCROW & FINANCIAL CORPORATION (“Escrow Agent”).
  
 RECITALS:
  
 SRP,iCore, and Jerry Smith have entered into that certain Settlement Agreement, dated of even date herewith (the “Settlement Agreement”), pursuant to which, among other things, SRP and its affiliates will sell to iCore or its assignees, and iCore or its assignees shall acquire from SPR or its affiliates, at least 9,000,000, but up to 14,401,887 shares of iCore common stock (the “Shares”).
  
 In order to secure the obligations of SPR and iCore under the Settlement Agreement, the Shares as well as the funds for the purchase of the Shares (the “Funds”) as more particularly defined below shall be delivered to the Escrow Agent for ultimate delivery to either SPR or iCore as described herein.
  
 SPR and iCore acknowledge that (i) Escrow Agent is not a party to and has no duties or obligations under the Settlement Agreement, and (ii) Escrow Agent shall have no implied duties beyond the express duties set forth in this Escrow Agreement. This Escrow Agreement is executed in furtherance of the Settlement Agreement, however, and nothing herein is intended to, or shall, modify or eliminate any obligation that any party to the Settlement Agreement has thereunder. The Escrow Agent is empowered and directed to act in accordance with the terms of the Settlement Agreement, and any discrepancy between the terms of this Escrow Agreement and the Settlement Agreement shall be resolved in favor of the Settlement Agreement.
  
 NOW, THEREFORE, the parties agree as follows:
  
 1. It is agreed that Escrow Agent shall be and is hereby appointed Escrow Agent for the purpose of receiving and holding the Shares and Funds. Escrow Agent hereby accepts such appointment and, upon receipt by wire transfer of the Funds in accordance with Section 2, and the Shares in accordance with Section 3, agrees to hold and disburse the Funds and Shares in accordance with this Escrow Agreement.
  
 2. Deposit of Funds. As soon as possible, but on or before the Funding Date (as hereinafter defined), iCore shall transfer, or cause to be transferred, by wire transfer of immediately available funds to an account designated by Escrow Agent, at least $620,000 but not more than $1,152,151 (the “Funds”) to be held by Escrow Agent for transfer to SPR or its affiliates in exchange for at least 9,000,000, but not more than 14,401,887, Shares at a purchase price of $0.08 per Share in accordance with the Settlement Agreement.
  
  
 
 
 
 	 
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 3. Deposit of Shares. As soon as possible, but on or before the Funding Date, SPR shall deliver, or cause to be delivered, to Escrow Agent at least 9,000,000, but not more than 14,401,887 Shares, which shall include the Smith Related Shares, as defined in the Settlement Agreement, duly endorsed for sale by SPR or its affiliates, as applicable, to iCore or its assignees to be held by Escrow Agent for transfer to iCore or its assignees in exchange for a purchase price of $0.08 per Share in accordance with the Settlement Agreement.
  
 4. Funding Date. The Funding Date shall be the date that all of the Funds and all of Shares have been delivered to Escrow Agent, which date shall be mutually agreed to by SPR and iCore, but not later than 60 days following the date hereof, unless extended in accordance with the following sentence. The Funding date may be extended upon request of iCore for up to an additional 30 days provided iCore delivers directly to SPR outside of escrow the sum of $100,000 on or before 60 days following the date hereof which sum shall be non-refundable and credited against the purchase price of the Shares to be purchased.
  
 5. Closing. Provided the Funds and Shares have been timely delivered to the Escrow Agent, Escrow agent shall deliver to iCore or its assignees at least 9,000,000 (which shall include the Smith Related Shares, as defined in the Settlement Agreement), but not more than 14,401,887 Shares (the number in excess of 9,000,000 to be determined by iCore as instructed by iCore), and payment for said delivered Shares in the amount of $0.08 per Share to SPR or its affiliates as instructed by SPR. The closing of said transaction shall occur on the Funding Date, unless otherwise instructed by both SPR and iCore. Any Funds not paid to SPR shall be returned to iCore or its assignees as instructed by iCore.
  
 6. Escrow Failure. In the event the closing does not occur by the Funding Date, all Funds held by Escrow Agent shall be returned by Escrow Agent to iCore or its assignees as instructed by iCore, and all Shares held by Escrow Agent shall be returned by Escrow Agent to SPR or its affiliates as instructed by SPR, and this Escrow Agreement shall terminate.
  
 7. Compensation of Escrow Agent.
  
 (a) Fees and Expenses. iCore and SPR agree, jointly and severally, to compensate Escrow Agent upon demand for its services hereunder in accordance with Schedule A attached hereto. Without limiting the joint and several nature of their obligations to Escrow Agent, iCore and SPR agree between themselves that each will be responsible to the other for one-half of Escrow Agent’s compensation. The obligations of iCore and SPR under this Section shall survive any termination of this Escrow Agreement and the resignation or removal of Escrow Agent.
  
 (b) Disbursements from Escrow Funds to Pay Escrow Agent. Escrow Agent is authorized to, and may disburse to itself from the Escrow Funds, from time to time, the amount of any compensation and reimbursement of expenses due and payable hereunder (including any amount to which Escrow Agent is entitled to seek indemnification hereunder). Escrow Agent shall notify iCore and SPR of any such disbursement from the Escrow Funds to itself and shall furnish iCore and SPR copies of related invoices and other statements. Notwithstanding the disbursement from the escrowed Funds to Escrow Agent as provided herein, either SPR or iCore shall be responsible for its half of such expense in accordance with subsection (a) above if the Funds are paid or returned to the other.
  
  
 
 
 
 	 
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 8. Escrow Agent shall be entitled to rely and act upon each notice, certificate, request, waiver, consent, receipt, directive or other paper or document believed by Escrow Agent to be genuine without independent investigation as to its authenticity or validity.
  
 9. Subject to the terms, conditions and provisions of this Escrow Agreement, SPR or its affiliates shall retain, and have the sole power and authority to exercise, all of the rights and privileges of a holder of each escrowed Share, including, without limitation, the right to vote, and make any election with respect to each escrowed Share, unless and until such escrowed Share is delivered to iCore or its assignees pursuant to the terms and conditions contained in this Escrow Agreement. Notwithstanding the foregoing, SPR and its affiliates shall not be entitled to transfer the escrowed Shares or any interest therein for so long as the escrowed Shares remain subject to this Escrow Agreement.
  
 10. Escrow Agent shall not be liable for any error of judgment or for any act done or step taken or omitted by it in good faith, or for any mistake of fact or law, or for anything which it may do or refrain from doing in connection herewith, except its own gross negligence and willful misconduct. Escrow Agent shall have no duties to anyone or any party other than iCore and SPR, and with respect to iCore and SPR, Escrow Agent shall have only those duties and responsibilities set forth in this Escrow Agreement.
  
 11. The Escrow Agent shall have the right to assume, in the absence of written notice to the contrary, that a fact or any event does not exist or has not occurred, without incurring liability for any action taken or omitted in good faith and in the exercise of its own best judgment, in reliance upon such assumption.
  
 12. The Escrow Agent shall not be responsible for the sufficiency or accuracy of the form of, or the execution, validity, value or genuineness of, any document or property received, held or delivered by it hereunder, or of any signature or endorsement thereon, or for any lack of endorsement thereon, or for any description therein, nor shall the Escrow Agent be responsible or liable in any respect on account of the identity, authority or rights of the persons executing or delivering or purporting to execute or deliver any of the Shares.
  
 13. Tax Reporting. Escrow Agent shall have no responsibility for the tax consequences of this Escrow Agreement. iCore and SPR shall consult with independent counsel concerning any and all tax matters. iCore and SPR jointly and severally agree to (a) assume all obligations imposed now or hereafter by any applicable tax law or regulation with respect to payments or performance under this Escrow Agreement and (b) request and direct the Escrow Agent in writing with respect to withholding and other taxes, assessments or other governmental charges, and advise the Escrow Agent in writing with respect to any certifications and governmental reporting that may be required under any applicable laws or regulations. Except as otherwise agreed by Escrow Agent in writing, Escrow Agent has no tax reporting or withholding obligation.
  
  
 
 
 
 	 
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 14. Escrow Agent may consult with legal counsel in the event of any dispute or question as to the construction of the foregoing instructions, or Escrow Agent’s duties thereunder, and Escrow Agent shall incur no liability and shall be entitled to rely and act in accordance with the opinion and instructions of such counsel.
  
 15. The Escrow Agent shall be indemnified and held harmless, jointly and severally by iCore and SPR from and against any expenses, including legal fees and disbursements, or loss suffered by the Escrow Agent in connection with any action, suit or other proceeding involving any claim, or in connection with any claim or demand, which, in any way, directly or indirectly arises out of or relates to this Escrow Agreement, the services of the Escrow Agent hereunder, or the property held by it hereunder.
  
 16. From time to time, on and after the date hereof, iCore and/or SPR shall deliver, or cause to be delivered, to the Escrow Agent such further documents and instruments and shall do any further acts, or cause such further acts to be done as the Escrow Agent shall reasonably request (it being understood that the Escrow Agent shall have no obligation to make any such request) to carry out more effectively the provisions and purposes of this Escrow Agreement, to evidence compliance herewith or to assure itself that it is protected in acting hereunder.
  
 17. iCore and SPR may jointly at any time, mutually, terminate this Escrow Agreement and appoint a successor Escrow Agent in place of Escrow Agent. Escrow Agent may at any time, upon not less than ten (10) days prior written notice to the Parties, resign, in which event iCore and SPR may mutually appoint a successor Escrow Agent. In the event iCore and SPR fail to appoint a successor Escrow Agent upon the resignation of Escrow Agent and release Escrow Agent from its duties and obligations under this Escrow Agreement, Escrow Agent may, by application to, or commencement of an action with, a court of competent jurisdiction, apply for the appointment of a substitute Escrow Agent and the release of Escrow Agent of its duties and obligations hereunder.
  
 18. Escrow Agent shall not be responsible for delays or failures in performance resulting from acts of God, strikes, lockouts, riots, acts of war or terror, epidemics, governmental regulations, fire, communication line failures, computer viruses, attacks or intrusions, power failures, earthquakes or any other circumstance beyond its control. Escrow Agent shall not be obligated to take any legal action in connection with the Funds, the Shares, this Escrow Agreement or the Settlement Agreement or to appear in, prosecute or defend any such legal action or to take any other action that in Escrow Agent’s sole judgment may expose it to potential expense or liability.
  
  
 
 
 
 	 
	15
	

	 

 
 
  
 
 
 
 
 
 
 
 19. If any portion of the Funds is at any time attached, garnished or levied upon, or otherwise subject to any writ, order, decree or process of any court, or in case disbursement of Funds is stayed or enjoined by any court order, Escrow Agent is authorized, in its sole discretion, to respond as it deems appropriate or to comply with all writs, orders, decrees or process so entered or issued, including but not limited to those which it is advised by legal counsel of its own choosing is binding upon it, whether with or without jurisdiction; and if Escrow Agent relies upon or complies with any such writ, order, decree or process, it shall not be liable to any of the parties hereto or to any other person or entity by reason of such compliance even if such order is reversed, modified, annulled, set aside or vacated.
  
 20. This Escrow Agreement is entered into in the State of Arizona, and the provisions hereof shall be governed and construed according to the laws of the State of Arizona excluding its choice of law or conflict of law provisions.
  
 21. This Escrow Agreement shall be binding upon and inure to the benefit of the parties hereto, their successors, assigns, beneficiaries, heirs and representatives.
  
 22. Modifications; Waiver. No waiver, modification, amendment, discharge or change of this Escrow Agreement shall be valid unless the same is in writing and signed by the party against which the enforcement of such modification, waiver, amendment, discharge or change is sought.
  
 23. No Third Party Rights. Nothing in this Escrow Agreement, express or implied, is intended to confer upon any persons other than the parties hereto and their respective successors and assigns, any rights or remedies under or by reason of this Escrow Agreement
  
 24. Notice. Any notice or demand to be given hereunder shall be given in writing and delivered in person, by courier service during days other than legal holidays; or by certified mail, postage prepaid, or by email, at the respective addresses set forth on the signature page below or to such other addresses as may from time to time be specified to the other Party in writing.
  
 25. Counterparts. This Escrow Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
  
 [See next page for signatures.]
  
  
 
 
 
 	 
	16
	

	 

 
 
  
 
 
 
 
 
 
 
  
 IN WITNESS WHEREOF, the parties hereto have hereunto set their hands the day, month and year first above written.
  
  
 
 
 
 	 SPR:
	  
	 iCore:

	  
	  
	  
	  
	  

	 SONORAN PACIFIC RESOURCES, LLP,
	  
	 ICORECONNECT, INC., a Nevada corporation

	 an Arizona limited liability partnership
	  
	  
	  

	  
	  
	  
	 By:
	 /s/ Robert McDermott

	 By:
	 JD Investments, Inc.
	  
	  
	 Robert McDermott

	  
	 an Arizona corporation General Partner
	  
	  
	 Chief Executive Officer

	  
	  
	  
	  
	  

	 By:
	 /s/ Jerry D. Smith
	  
	  
	  

	  
	 Jerry D. Smith, President 
	  
	  
	  

	  
	  
	  
	  
	  

	 Address for Notices:
	  
	 Address for Notices:

	  
	  
	 529 E. Crown Point Rd.

	 10632 N Scottsdale Road, #208
	  
	 Ocoee, FL 34761

	 Scottsdale, AZ 85254
	  
	 Email: 

	 Email: jsmith@spgaz.com
	  
	  

 
 
  
 
 
 
 
 
 
  
 ESCROW AGENT:
  
 ARIZONA ESCROW & FINANCIAL CORPORATION
  
  
 
 
 
 	 By:
	  
	  
	  

	  
	  
	  
	  

	 Its:
	  
	  
	  

	  
	  
	  
	  

	 Address for Notices:
	  
	  

	  
	  
	  

	 5353 N. 16th Street, Suite 110
	  
	  

	 Phoenix, AZ 85016
	  
	  

	 5117\025\Escrow Agreement (Final)
	  
	  

 
 
  
 
 
 
 
 
 
 
  
 
 
 
 	 
	17Exhibit 10.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TECHNICAL KNOWHOW
LICENSE

AND SERVICING AGREEMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	 	 

     

    

 

THIS Technical
Knowhow License and Servicing Agreement (this “Agreement”) is made on the 8th of November 2022
(“Effective Date”)

 

BETWEEN:

 

		(1)	MARVION GROUP LIMITED (BVI company
number: 2073752), a company incorporated in the British Virgin Islands, with registered address at OMC Chambers, Wickhams Cay 1, Road
Town, Tortola, British Virgin Islands (hereinafter the “Customer”); and

 

		(2)	DATACUBE RESEARCH CENTRE LIMITED
(HK company number: 2258257), a company incorporated in Hong Kong, with a registered address at Unit 1717-1718, 17/F., Star House, 3 Salisbury
Road, Tsim Sha Tsui, Kowloon (hereinafter the “Service Provider”).

 

(the Service Provider and the Customer are
hereinafter collectively referred to as the “Parties” and individually as a “Party”).

 

WHEREAS :

 

		(A)	The Customer has engaged the Service Provider to develop the Deliverables (to be defined hereinbelow)
for the Customer.

 

		(B)	The Service Provider and the Customer desire to enter into a transfer of Technical Knowhow and in which
the Service Provider will provide description of services to the Customer.

 

NOW, THEREFORE, in consideration of the
mutual promises and undertakings herein contained, the Parties, intending to be legally bound, do hereby agree as follows:

 

		1.	Definitions

 

		1.1	For purposes of this Agreement, the following terms shall have the following meanings:

 

		i.	“Deliverables” means any tangible property with the implementation of the Technical
Knowhow, including software media, delivered to the Customer under this Agreement, as specified in the Clause 7;

 

		ii.	“Project” means the combination of Services and Deliverables to be provided under this
Agreement;

 

		iii.	“Services” means any and all services specified in the Statement of Work (as defined
in Clause 3);

 

		iv.	“Technical Knowhow” means the technical knowhow as fully described in Clause 2; and

 

		v.	“USD” means the legal tender of the United States of America.

 

		1.2	In this Agreement, unless the context otherwise requires, words denoting the singular number only shall
include the plural and vice versa. Save as otherwise indicated, references to "Clauses" and the "Schedule"
are to be construed as references to clauses of, and the schedule to, this Agreement.

 

		1.3	Words importing the masculine gender, feminine gender or neuter shall include the others. All capitalised
words and phrases used in the agreement shall bear the meanings ascribed to them as set out in the definitions of such capitalised words
and phrases in the Schedule. The Service Provider shall have final authority to interpret this Agreement and to make any and all determinations
under them, and its decision shall be binding and conclusive upon the Parties in respect of any questions arising under this Agreement.
The words ‘include’ and ‘including’ shall be deemed to be qualified by a reference to ‘without limitation’.

 

 

 

    	 	2	 

     

    

 

		1.4	The Recitals set forth hereinabove are incorporated into and made part of this Agreement.

 

		2.	Technical Knowhow

 

		2.1	Visual Intelligence Engine; Speech Recognition Engine; Text Analytics Engine; Emotion Recognition Engine;
Motion Recognition Engine and AI Agent Creation Engine.

 

		i.	Description of Technical Knowhow

 

		(A)	Visual Intelligence Engine (Price: USD 8M)

 

		a.	Image Restoration and Enhancement: This module is aiming at the restoration of degraded image content,
the filling in of missing information, or the needed transformation and/or manipulation to achieve a desired target. (Price: USD 1M)

 

		b.	3D Model Reconstruction: This module is able to re-constructure a 3D model from an image by learning
the relationship between 3D model and 2D image. (Price: USD 2M)

 

		c.	Feature Extraction: This module is to extract the features from given images. (Price: USD 1M)

 

		d.	Training: This module is to train a DNN model with the extracted features in order to generate
a fingerprint model. (Price: USD2M)

 

		e.	Classification: This module is to classify artwork using the trained model. (Price: USD 2M)

 

		(B)	Speech Recognition Engine (Price: USD 5M)

 

		a.	Speech to Text: This module is used for identifying and transcribing voice into text. The voice
is captured in sound frequencies that can be analysed in order to associate each phoneme with a word or a group of words to constitute
a text. (Price: USD 1M)

 

		b.	Natural Language Processing: This module is used for translating human language into machine language.
It can analyse the sentence, extract a maximum of linguistic data and finally can generate the reply in text format to the user. (Price:
USD 2M)

 

		c.	Text to Speech: This module is to convert text into voice and inform the user by the conversational
interface. It corresponds to the feedback of the system which is expressed through a synthetic voice. (Price: USD 2M)

 

		(C)	Text Analytics Engine (Price: USD 10M)

 

		a.	Tokenization: This module refers to the process of breaking out long-form text into sentences and
words called “tokens”. These are, then, used in the models, like bag-of-words, for information retrieval tasks. (Price:
USD 2M)

 

		b.	Stemming: This module refers to the process of separating the prefixes and suffixes from words
to derive the root word form and meaning. (Price: USD 2M)

 

		c.	Summarization: This module provides a synopsis of long pieces of text to create a concise, coherent
summary of a document’s main points. (Price: USD 1.5M)

 

 

 

    	 	3	 

     

    

 

		d.	Part-of-Speech Tagging: This module assigns a tag to every token in a document based on its part
of speech. (Price: USD 1.5M)

 

		e.	Feature Selection: This module refers to the process of selecting the important features (dimensions)
to contribute the most to output of a predictive analytics model. (Price: USD 1.5M)

 

		f.	Feature Extraction: This module refers to the process of selecting a subset of features to improve
the overall performance by dimensionality reduction. (Price: USD 1.5M)

 

		(D)	Emotion Recognition Engine (Price: USD 5M)

 

		a.	Image: This module is to classify the expressions on face images into various categories such as anger, fear,

                                                                                surprise,
sadness, happiness and so on. (Price: USD 1.5M)

                                                                                

		b.	Voice: This module is to recognize a speaker's emotion using tone and tempo information of a voice
signal. (Price: USD 2M)

  

		c.	Text: This module is to detect and recognize types of feelings through the expression of texts,
such as anger, disgust, fear, happiness, sadness, and surprise. (Price: USD 1.5M)

 

		(E)	Motion Recognition Engine (Price: USD 7M)

 

		a.	Detection: This module detects hand or body movements and segments the image to find hand edges
and positions with deep learning. (Price: USD 2M)

 

		b.	Tracking. This module monitors movements frame by frame to capture every movement and provide accurate
input for data analysis. (Price: USD 2.5M)

 

		c.	Recognition. This module tries to find patterns based on the gathered data. When it finds a match
and interprets a gesture, it performs the action associated with this gesture. (Price: USD 2.5M)

 

		(F)	AI Agent Creation Engine (Price: USD 7M)

 

		a.	Dialog: This module is to get agents talking. (Price: USD 1.5M)

 

		b.	Event: This module is to trigger different actions based on event sequences. (Price: USD 1M)

 

		c.	Path: This module is to let agents moving to destinations with the shortest path approach. (Price:
USD 1M)

 

		d.	Behaviour: This module is to assign behaviours to agents so that they can interact with others.
(Price: USD 1.5M)

 

		e.	Emotion: This module is to allow for agents to have emotions that can change due to different reasons
and at various rates. (Price: USD 2M)

 

 

 

    	 	4	 

     

    

 

		3.	Statement of Work 

 

		3.1	Implementation the Technical Knowhow

 

		i.	The work which the Service Provider shall perform is specified as below:

 

		(A)	The Service Provider shall perform and deliver to the Customer the implementation the Technical Knowhow
as set forth in Clause 2 to the tangible items as instructed from time to time by the Customer against and subject to the terms and conditions
of this Agreement.

 

		(B)	The Service Provider performs production for each Deliverables and deliver to the Customer within ninety
(90) days upon commencement of production. The Customer deserves rights to examine progress during production period.

 

		4.	Development Fee

		4.1	In consideration of the Service Provider delivering the Deliverables to the Customer, the Customer shall
pay the Service Provider the sum total of USD 42 million, amortized as follows:

 

		(A)	Visual Intelligence Engine (Price: USD 8M)

 

		(B)	Speech Recognition Engine (Price: USD 5M)

 

		(C)	Text Analytics Engine (Price: USD 10M)

 

		(D)	Emotion Recognition Engine (Price: USD 5M)

 

		(E)	Motion Recognition Engine (Price: USD 7M)

 

		(F)	AI Agent Creation Engine (Price: USD 7M)

 

		5.	Term

		5.1	The term of the service shall be for 3 years, commencing from the Effective Date or until the exercise
of Clause 13 or as provided in Clause 12.

 

		6.	Terms of payment

 

		6.1	Payment channel

 

		i.	By bank transfer whereby the Service Provider specify a bank account to the Customer over the Term.

 

		ii.	By digital currencies, unless otherwise agreed between the parties in writing, in the form of stable-coins
(“Digital Currencies”) whereby the Service Provider specify a wallet address to the Customer over the Term.

 

 

 

    	 	5	 

     

    

 

		6.2	Payment details

 

		i.	The Customer hereby agrees to pay the Service Provider a deposit in the sum equivalent to the Development
Fee amortized pursuant to each module as amortized in Clause 4.1 (A-G) hereinabove, within thirty (30) days from the pre-paid invoice
being issued for each amortized module, after the Customer has given notice to the Service Provider to start certain scope(s) of the Technical
Knowhow describes above.

 

		ii.	The Customer will receive pre-paid and completion invoices based upon the billing/payment schedule contained
in the applicable Statement of Work. Invoices will contain a description of the Services or Deliverables provided. The Customer shall
arrange for payment within thirty (30) days to the Service Provider. If any invoice is not paid when due, the Service Provider may not
start the provision of Services and/or Deliverables without liability or penalty until final resolution of the matter.

 

		iii.	If the Customer chooses to pay the Service Provider via Digital Currencies, the Customer agrees that a
5% handling fee based on the deposit sum will be levied in accordance with clause 6.2.i hereinabove (“Handling Fee”)
and the Customer undertakes to pay for such Handling Fee (if any).

 

		7.	Deliverables

		7.1	Except for commercial off-the-shelf type products where the license for such products is contained in
the applicable Statement of Work, the Customer shall have the perpetual nonexclusive license to use for commercial purposes, all Deliverables
under this Agreement with the Service Provider.

 

		7.2	All of the foregoing shall be deemed to be work made for hire, except as hereafter specified, and belong
to the Customer, with the Customer having the sole right to obtain, hold, and renew, in its own name or for its own benefit, patents,
copyrights, registrations, or other appropriate protection.

 

		7.3	The Customer acknowledges that the Service Provider uses, or may develop hereunder, methods, concepts,
code sequences, format, sequence structure, organization, menu command hierarchy, templates, masks, user interface, techniques, program
organization, database structuring techniques, and the like (“Service Provider Proprietary Items”) that are proprietary
to the Service Provider.

 

		7.4	It is agreed that these Service Provider Proprietary Items shall remain the sole and exclusive property
of the Service Provider. The Service Provider grants the Customer a perpetual, non-exclusive, paid-up license to use the Service Provider
proprietary items subject to the following:

 

		i.	The Customer may use the Service Provider proprietary items solely in connection with the products purchased
hereunder, for the purpose for which those products were originally purchased.

 

		ii.	The Customer may not transfer, sell, or otherwise dispose of any Service Provider Proprietary Items without
the prior written consent of the Service Provider.

 

		iii.	This license gives no title or ownership rights in the Service Provider proprietary items or related intellectual
property to the Customer.

 

		iv.	The Customer agrees to retain or reproduce on all copies of any the Service Provider proprietary items
all copyright notices and other proprietary legends and all trademarks or service marks of the Service Provider or any third party.

 

		v.	The Customer will have no rights to assign or sell the license granted herein to others.

 

 

 

    	 	6	 

     

    

 

		vi.	The Customer grants the Service Provider a perpetual non-exclusive, paid-up license to use all portions
of the Deliverables first developed by the Service Provider during the performance of this Agreement, not to include content or any material
provided to the Service Provider by the Customer.

 

		8.	Acceptance

 

		8.1	The Deliverables, if any, shall be deemed accepted by the Customer upon completion of the following acceptance
test:

 

		i.	Immediately upon receipt of said Deliverables, the Customer shall promptly perform testing of the Deliverables
to confirm that the Deliverables perform in accordance with the documentation or other standards applicable thereto as set forth in the
Statement of Work.

 

		ii.	The Customer shall either promptly provide the Service Provider with written acceptance of the Deliverables,
or deliver to the Service Provider a detailed written statement of nonconformities to be corrected prior to the Customer’s acceptance
of the Deliverables. Unless otherwise agreed to in writing by the parties, the Service Provider will redeliver corrected Deliverables
to the Customer within a reasonable amount of time after receipt of such statement of nonconformities.

 

		iii.	Following redelivery of corrected Deliverables, a new acceptance test shall be immediately commenced by
the Customer. Any such written statement of nonconformities shall provide sufficient detail to enable the Service Provider to remedy the
failure to conform to the completion criteria.

 

		8.2	If the Customer fails to provide a written acceptance or a written statement of nonconformities within
five (5) days of initial receipt of said Deliverables or such other mutually acceptable period as defined in the applicable Statement
of Work, or within five (5) days of re-delivery of said corrected Deliverables or such other mutually acceptable period, the Deliverables
shall be deemed immediately accepted by the Customer.

 

		9.	Warranties and Remedies

 

Warranties

 

		9.1	The Service Provider warrants Deliverable functionality substantially as defined in the Statement of Work
for a period of seven (7) days following final delivery.

 

		9.2	The Service Provider warrants that with respect to any Deliverable assigned by the Service Provider to
the Customer that the Service Provider has the right to transfer title to the Customer.

 

		9.3	The Service Provider further warrants that to its knowledge the Deliverables do not infringe any intellectual
property right held by a third party.

 

		9.4	The Customer’s sole and exclusive remedy and the Service Provider’s only obligation for breach
of the warranty hereunder will be, at the Service Provider’s option, to correct any material errors in provision of Services or
to replace or repair Deliverables which do not conform to the warranty.

 

 

 

    	 	7	 

     

    

 

Remedies

 

		9.5	In order for the Customer to exercise its remedy under this provision, the Customer must give the Service
Provider written notice of such nonconformity within the warranty period, and the Service Provider must determine that any nonconformity
did not arise due to any cause specified below.

 

		9.6	The Service Provider shall be given free and full access to deliverables to make corrections, and the
Customer shall promptly inform the Service Provider of any changes in the location of Deliverables during the warranty period. If this
remedy is adjudged to have failed of its essential purpose, the Service Provider’s total liability will be to refund the price paid
to the Service Provider by the Customer for the nonconforming Deliverables.

 

		9.7	The remedy provided by the Service Provider for breach of warranty does not include the following, which
may be provided, at the Service Provider’s sole option, at the Service Provider’s then-current time and materials rates:

 

		i.	Repair of damage caused by events beyond the Service Provider’s reasonable control.

 

		ii.	Repair of damage caused by the Customer’s improper installation, relocation, or rearrangement of
Deliverables.

 

		9.8	Except for the warranties stated in this clause, the Service Provider DISCLAIMS ALL OTHER WARRANTIES WITH
RESPECT TO THE SERVICES AND DELIVERABLES, EXPRESS OR IMPLIED, ARISING BY OPERATION OF LAW, COURSE OF DEALING, USAGE OF TRADE OR OTHERWISE,
INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE AND WARRANTIES AGAINST NON-INFRINGEMENT.

 

		9.9	The Service Provider expressly does not warrant that the operation of Deliverables which are software
shall be uninterrupted or error-free; or that Deliverables will operate on any system, or with any software, other than the system with
which the Service Provider tested such Deliverables. The Service Provider does not warrant any third-party software development tools.
The Service Provider specifically does not warrant the accuracy of any technical or subject matter content of the courseware or software
that is based upon information or direction provided by the Customer.

 

		10.	Limitation of liability

 

		10.1	The total liability of the Service Provider to the Customer from any cause whatsoever, will be limited
to the lesser of the Customer’s actual damages or the Service Fee paid to the Service Provider for those Services and Deliverables
that are the subject of the Customer’s claim.

 

		10.2	In no event will either party be liable for SPECIAL, INDIRECT, CONSEQUENTIAL, OR INCIDENTAL DAMAGES, including
but not limited to loss of profits, revenues, data or power, damage to or loss of the use of products, damage to property, claims of third
parties, including personal injury or death, suffered as a result of provision of Services or use of Deliverables.

 

		10.3	Time for Claims: All claims against the Service Provider must be brought within one (1) year after the
cause of action arises and the Customer waives any statute of limitations which might apply by operation of law or otherwise.

 

 

 

    	 	8	 

     

    

 

		11.	Indemnification

 

		11.1	The Customer shall defend, indemnify, and save the Service Provider harmless, at the Customer’s
own expense, against any action or suit brought for any loss, damage, expense or liability that may result by reason of an infringement
of any patent, trademark, copyright, or trade secret based upon the normal and intended use of the Deliverables furnished to the Service
Provider hereunder.

 

		11.2	Should any of the Deliverables furnished to the Service Provider hereunder become the subject of a claim
of any infringement of a patent, trademark, copyright, or trade secret, the Customer shall, at its option and expense, deliver non-infringing
material, modify the material so that it becomes non-infringing, or procure for the Service Provider the right to continue using the Customer’s
infringing material.

 

		11.3	The Customer agrees to indemnify and hold the Service Provider harmless against all claims, liabilities,
demands, damages, or expenses (including attorneys’ fees and expenses) arising out of or in connection with the Customer’s
use of the Deliverables.

 

		12.	Force majeure

 

		12.1	Neither party shall be liable for failure to perform, nor be deemed to be in default, under this Agreement
for any delay or failure in performance resulting from causes beyond its reasonable control, including but not limited to failure of performance
by the other party, acts of state or governmental authorities, acts of terrorism, natural catastrophe, fire, storm, flood, earthquake,
riot, insurrection, civil disturbance, sabotage, embargo, blockade, acts of war, or power failure. In the event of such delay, the date
of delivery or time of completion will be extended by a period of time reasonably necessary to overcome the effect of any such delay.

 

		13.	Termination

 

		13.1	The Customer reserves the right to terminate a Service in whole or in part, upon 7 days written notice
to the Service Provider. In the event the Project is terminated by the Customer prior to completion, the Service Provider shall use its
best efforts to conclude or transfer the Project, as directed by the Customer, as expeditiously as possible.

 

		13.2	The Service Provider shall not undertake further work, incur additional expenses, or enter into further
commitments with regard to the Project after receiving such notice of termination from the Customer, except as mutually agreed upon by
the parties. In the event of termination of a Project as described above, the Service Provider shall be entitled to compensation as follows:

 

		i.	All payments due and owing under this Agreement at the time of the Service Provider’s receipt of
the written notice of termination for work completed and in progress;

 

		ii.	Reimbursement for any non-cancellable services and commitments entered into by the Service Provider, in
connection with the Project being terminated, provided the Service Provider provides the Customer with documentation of completion of
work or expenses incurred.

 

		13.3	Termination of the Project shall not affect either party’s obligations in connection with any other
ongoing Projects and the rights and obligations of all non-terminating parties to the Agreement shall remain in full force and effect.

 

		13.4	Failure by either party to comply in any material respect with any of its obligations in this Agreement
shall entitle the other party to give notice to the party in default requiring it to cure such default. If such default is not cured within
seven (7) days after receipt of such notice, the notifying party shall be entitled to terminate this Agreement by giving notice of such
termination to take effect immediately.

 

		13.5	The right of either party to terminate this Service Contract, as herein provided, shall not be affected
in any way by its waiver of, or failure to take action with respect to, any previous default.

 

 

 

    	 	9	 

     

    

 

		14.	Delay or suspension of work

 

		14.1	If the Customer’s acts or failure to act causes the Service Provider to delay or suspend performance
of Services, the Service Provider and the Customer will mutually agree to one of the following remedies:

 

		i.	The Service Provider will use reasonable efforts to continue performance as practicable under the circumstances
and the Customer will continue to make all scheduled payments; or

 

		ii.	The Service Provider will re-assign personnel to extend the Service Provider’s work schedule without
liability, and the Customer will pay all additional costs, if any.

 

		14.2	Notwithstanding the above, the Service Provider shall have the right to invoice the Customer for any work
performed to date of suspension.

 

		15.	Confidentiality

 

		15.1	The Service Provider and the Customer acknowledge that during the course of the performance of a Project,
information of a confidential nature may be disclosed between the parties. Such information, excluding the Deliverables and any other
information incident to the Deliverables that a party could reasonably be expected to be provided to the other party as contemplated hereunder,
shall be considered confidential information (“Confidential Information”).

 

		15.2	Neither party has the right to disclose the Confidential Information of the other, in whole or in part,
to any third party, and neither party will make use of the Confidential Information of the other for its own or a third party’s
benefit or in any way use such Confidential Information other than for the purposes of performance of this Agreement without the prior
written consent of the disclosing party. Each party agrees to take all steps reasonable to protect the other’s Confidential Information
from unauthorized use and/or disclosure.

 

		15.3	The parties agree not to copy in whole or in part, any Confidential Information nor modify the same in
any way without prior written consent from the other party. Neither party will be liable to the other for the disclosure of Confidential
Information if, as shown by clear and convincing evidence, the Confidential Information: (a) is generally known to the public at the time
of disclosure by the disclosing party; or (b) becomes generally known to the public through no fault of the receiving party; or (c) was
lawfully in the possession of the receiving party prior to signing this Agreement; or (d) is subject to applicable United States laws
or a valid court order requiring disclosure of such Confidential Information.

 

		15.4	In any judicial proceeding, it will be presumed that the Confidential Information in question constitutes
protectable trade secrets of the disclosing party, and the receiving party shall bear the burden of proving that the Confidential Information
was publicly or rightfully known or disclosed.

 

		16.	Publicity

 

		16.1	The Service Provider may use the Customer’s name or mark and identify as a client of the Service
Provider, on the Service Provider’s website and/or marketing materials. The Service Provider may issue a press release, containing
the Customer’s name, related to any award under this Agreement.

 

		16.2	Neither party will use the other party’s name or marks, refer to or identify the other party for
any other reason, except as established in this clause, without such other party’s written approval. Any approval required under
this clause shall not be unreasonably withheld or delayed by either party.

 

 

 

    	 	10	 

     

    

 

		17.	General terms

 

		17.1	This Service Contract shall be deemed to have been made, executed and delivered in state of the Republic
of Singapore and shall be construed in accordance with the laws of the Republic of Singapore.

 

		17.2	Notice to be given by either party under this Agreement shall be sent by certified mail, express
overnight delivery, or telecopy to the attention of the other party at the addresses of the parties as first set forth above.

 

		17.3	Severability and assignment: The invalidity or unenforceability, in whole or in part, of any provision
in this Agreement shall not affect in any way the remainder of the provisions herein. This Agreement may not be assigned by the Customer
without the Service Provider’s consent.

 

		17.4	Entire agreement: This Agreement, together with any other materials referenced in or expressly
made a part of the Agreement, constitutes the final and entire Agreement between the Service Provider and the Customer and supersedes
all prior and contemporary agreements, oral or written.

 

		17.5	Counterparts: The Parties hereto agree that digital signatures shall be as effective as if originals.
This Agreement may be executed via email in any number of counterparts, all of which taken together shall constitute one and the same
agreement.

 

		18.	Dispute Resolution

 

		18.1	Any dispute or difference, whether contractual or non-contractual, arising out of or in connection with
this Agreement, including any question regarding its existence, validity or termination shall first be referred to mediation under the
Mediation Rules of The Law Society of Hong Kong. If the mediation is terminated (as defined in the Mediation Rules of The Law Society
of Hong Kong), without the dispute or difference having been resolved, within 21 days after such termination, any party may refer the
dispute or difference to arbitration for final resolution.

 

		18.2	Where following mediation in accordance with Clause 18.1 above, the parties are unable to reach a mutually
satisfactory resolution of the Disputes, except insofar as the parties elect to enforce this Agreement by judicial process or injunction
as provided in the preceding Articles hereof, the Disputes must be submitted to be finally resolved by arbitration in Hong Kong in accordance
with UNICITRAL Arbitration Rules for the time being in force. The arbitration shall be administered by Hong Kong International Arbitration
Centre (“HKIAC”) in accordance with its Practice Note on UNICITRAL cases. The appointing authority shall be the President
or Vice President of HKIAC Court of Arbitration. The language to be used in the arbitral proceedings shall be English.

 

		18.3	This Agreement shall be governed by, and construed in accordance with, the laws of Hong Kong (without
giving effect to principles of conflicts or choices of law).

 

		18.4	A person who is not a party to this Agreement has no right under the Contracts (Rights of Third Parties)
Ordinance (Chapter 623) of Hong Kong (or any similar law, regulation or rule in any jurisdiction) of Hong Kong to enforce any term of
this Agreement.

 

 

 

 

    	 	11	 

     

    

 

IN WITNESS WHEREOF, the undersigned have executed this Agreement
as of the date first above written.

 

 

 

	CUSTOMER	 
	
    SIGNED, SEALED and DELIVERED

    CHAN MAN CHUNG

     

    its director(s) or authorised signature(s) (duly

    authorised
    by resolution of the board of

    directors) for and on behalf of

    MARVION GROUP LIMITED
	
    )

    )

    )

    )

    )

    )

    )

    )
	 
	 	 	 	 

 

	Service Provider	 
	
    SIGNED, SEALED and DELIVERED

    wong king shiu daniel

     

    its director(s) or authorised signature(s) (duly

    authorised
    by resolution of the board of

    directors) for and on behalf of

    DATACUBE RESEARCH CENTRE LIMITED
	
    )

    )

    )

    )

    )

    )

    )

    )
	 
	 	 	 	 

 

 

 

 

 

 

 

 

 

 

    	 	12

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