Document:

Unassociated Document

    MANAGEMEMT
      AND GOVERNANCE CONSULTANT AGREEMENT

    

    

    THIS
      AGREEMENT
      dated
      effective December 1, 2007, although executed on December 21, 2007 is made:
      

    

    BETWEEN:
      

    

    American
      Petro-Hunter Inc.

    225
      Marine Drive, Suite 210 

    Blaine,
      WA 98230 USA

    

    (referred
      to as the “Company")

    

    AND:

    

    Sound
      Energy Advisors LLC 

    225
      Marine Drive, Suite 210

    Blaine,
      WA 98230 USA

    

    (referred
      to as “Consultant")

     

    1.
       
      Consultation
      Services

    

    The
      Company hereby engages the Consultant to perform the following services in
      accordance with the terms and conditions set forth in this Agreement: The
      Consultant will consult with the officers and employees of the Company
      concerning matters relating to corporate management and governance, including
      day-to-day operations, accounting, regulatory compliance, marketing and investor
      relation services. 

    

    2.
       
      Terms
      of Agreement. 

    

    The
      term
      of this Agreement will commence December 1, 2007 and will continue until
      November 30, 2009. Either party may terminate this Agreement by giving the
      other
      party thirty (30) days written notice delivered by registered mail or confirmed
      email. 

    

    3.
       
      Place
      Where Services Will Be Rendered

    

    The
      Consultant will perform most services in accordance with this Agreement at
      225
      Marine Drive, Blaine, WA 98230. In addition, the Consultant will perform
      services on the telephone and at such other places as designated by the Company
      to perform these services in accordance with this Agreement. 

    

    4.
       
      Payment
      to Consultant

    

    The
      Consultant will be paid in advance on the 1st day of each month at the rate
      of
      Two Thousand Five Hundred Dollars in US funds (US$ 2,500.00) per month for
      work
      performed in accordance with this Agreement; Provided that the Consultant issues
      an invoice to the Company on or before the first day of each month of the term.
      The Company will reimburse the Consultant for all disbursements, including
      travel, accommodation, printing, postage, long distance telephone charges and
      other related costs, reasonably incurred by the Consultant for the purpose
      of
      the provision of the Consultant’s services to the Company within 10 days of
      having received written receipts in respect of this disbursements, providing
      that any such disbursement exceeding $500.00 must have been approved by the
      Company in advance of its having been incurred; and providing further that
      the
      disbursements must be submitted once a month and will only be reimbursed once
      a
      month. The Consultant has the right to ask the Company for an advance payment,
      if appropriate, to pay for certain disbursements that have been pre-approved
      by
      the Company. 

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    5. 
      Independent
      Contractor

    

    Both
      the
      Company and the Consultant agree that the Consultant will at all times act
      as an
      independent contractor in the performance of its duties under this Contract.
      Accordingly, the Consultant shall be solely responsible for payment of all
      taxes
      including Federal, State and local taxes arising out of the Consultant's
      activities in accordance with this Agreement, including by way of illustration
      but not limitation, Federal and State income tax, business tax, and any other
      taxes or business license fees as may be required to be paid. 

    

    6.      Confidential
      Information and Non-Competition

    

    The
      Consultant agrees that any information received by the Consultant or Gregory
      Leigh Lyons during the performance of the Consultant's obligations pursuant
      to
      this Agreement or otherwise, regarding the business, financial, technological
      or
      other any other affairs of the Company or its personnel will be maintained
      by
      the Consultant and Gregory Leigh Lyons as strictly confidential and will not
      be
      revealed by the Consultant or Gregory Leigh Lyons to any other persons, firms,
      organizations or other entities whatsoever. This covenant shall survive the
      termination of this Agreement.

    

    The
      Consultant agrees that during the term of this Agreement and thereafter, it
      and
      Gregory Leigh Lyons will not compete or attempt to compete with the business
      or
      technology of the Company or in any other respects whatsoever.

    

    7.
       
      Employment
      of Others

    

    The
      Company may from time to time request that the Consultant arrange for the
      services of others. All costs to the Consultant for those services will be
      paid
      by the Company. 

    

    8.
       
      Signatures
      

    

    Both
      the
      Company and the Consultant agree to the above Contract. 

    

    9.
       
      Entire
      Agreement 

    

    This
      agreement contains the entire agreement between the parties hereto with respect
      to the Consultant’s engagement by the Company and supersedes any prior oral or
      written agreements or understandings with respect hereto.

    

    10.  
Notices

    

    All
      notices, requests, demands, and other communications hereunder shall be in
      writing and shall be delivered personally, sent be recognized overnight courier
      or sent by registered or certified mail, return receipt requested, to the other
      parties hereto at his or its address as set forth above, and shall be deemed
      given when delivered, or if sent by registered or certified mail, five (5)
      days
      after mailing. Any party may change the address to which notices, requests,
      demands, and other communications hereunder shall be sent by sending written
      notice of such change of address to the other parties in the manner above
      provided.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    11.
       
      Successors
      and Assigns

    

    Subject
      to the terms of Paragraph 7, this Agreement shall inure to the benefit of,
      and
      be binding upon, the successors and assigns of the party hereto.

    

    12.
       
      Amendment

    

    No
      amendment of any provision of the Agreement, or consent to any departure
      therefrom, shall be effective unless the same be in writing signed by the
      parties. 

    

    13.
       
      Waiver
      

    

    The
      waiver by the Company of any breach of any term or condition of the Agreement
      shall not be deemed to constitute the waiver of any other breach of the same
      or
      any other term or condition hereof. 

    

    14.
       
      Severability
      

    

    Each
      of
      the terms and provisions of this Agreement is to be deemed severable in whole
      or
      in part and, if any terms or provision or the application thereof in any
      circumstances should be invalid, illegal or unenforceable, the remaining terms
      and provisions or the application of such term or provision to circumstances
      other than those as to which it is held invalid, illegal or unenforceable shall
      not be affected thereby and shall remain in full force and effect.

    

    15.
       
      Governing
      Law 

    

    This
      agreement and the enforcement thereof shall be governed and controlled in all
      aspect by the laws of the State of Nevada. 

    

    14.
       
      Counterparts
      

    

    This
      Agreement may be executed in several counterparts and all so executed shall
      constitute one agreement binding on all the parties hereto, notwithstanding
      that
      all the parties are not signatories to the original or the same
      counterpart.

     

    

    AMERICAN
      PETRO-HUNTER INC.

     

    

    _________________________________________
      

    Gregory
      Leigh Lyons, Director

    

    

    

    SOUND
      ENERGY ADVISORS LLC

    

    

     _________________________________________
      

    Gregory
      Leigh Lyons, PresidentConfidential
      treatment has been requested for portions of this exhibit. The copy filed
      herewith omits the information subject to the confidentiality request.
      Omissions
      are designated as [***]. A complete version of this exhibit has been filed
      separately with the Securities and Exchange Commission.

     

    AGREEMENT

    

    THIS
      AGREEMENT (the “Agreement”) dated March 25, 2008 by and between the New
      York
      Yankees Partnership,
      an Ohio
      limited partnership with offices at Yankee Stadium, Bronx, New York 10451 (the
      “Yankees”) and SpongeTech
      Delivery Systems, Inc.,
      a
      ___________ corporation, having offices at 43 West 33rd
      Street,
      Suite 600, New York, New York 10001 (“Sponsor”). 

    

    W
      I T
      N E S S E T H

    

    WHEREAS,
      Sponsor seeks and the Yankees desires to grant to Sponsor the right and license
      to display certain advertising in Yankee Stadium (the “Stadium”) during the 2008
      Season (as defined below) in the manner set forth below; 

    

    WHEREAS,
      the parties desire to make certain other commercial arrangements as set forth
      in
      this Agreement to be operative during the Term (as defined below).

    

    NOW,
      THEREFORE, in consideration of the foregoing premises, the agreements,
      representations and warranties, covenants and obligations hereinafter contained
      and other good and valuable consideration, the receipt and sufficiency of which
      are hereby acknowledged, the parties hereto, intending to be legally bound,
      hereby agree as follows:

     

    
      	1.	
              Grant
                of Rights

            

    

    

    (a) Subject
      to Section 12, below, and in consideration for the payment of each Season’s
      Sponsorship Fee by Sponsor, the Yankees hereby grants to Sponsor the right
      and
      license to display each Advertisement upon the respective Signage Space in
      the
      manner provided in this Agreement during the 2008 Major League Baseball (“MLB”)
      Season. As used herein, “Season” means the period of time commencing the day the
      New York Yankees Baseball Club (“Club”) plays its first Game and ending the day
      after the Club plays its last Game during the Term, but specifically excludes
      any Jewel Events. As used herein, “Game(s)” means the MLB regular season home
      game(s) played by the Club in the Stadium. As used herein, “Jewel Events” means
      any event that MLB may designate as a “Jewel Event” including, but not limited
      to, the All Star Game and postseason (i.e.,
      Division Series, League Championship Series and World Series). As used herein,
      “Advertisement” means any visual display advertisement, including replacement(s)
      thereof, exhibited on the Signage Space by Sponsor. As used herein, “Signage
      Space” means the visual display advertising space specified in Exhibit
      A,
      annexed
      hereto. Except as otherwise agreed to, all Advertisements and electronic
      materials will be produced, supplied and installed by Sponsor at its sole cost
      and expense. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    (b) The
      Yankees reserve the right to require that each Advertisement (i) be displayed
      at
      and during
      any
      Event, even if such Event will be the subject of a broadcast (live or replay)
      by
      means of any media now known or hereafter developed; and (ii) not be displayed
      at and during any Event if such Advertisement is prohibited by governmental
      rules or regulations or by the organizers of the Event. If the Yankees
      determines, in its sole discretion, that the circumstances of the Event would
      require the entire or partial covering, removing, obscuring or hiding of the
      Advertisement, the Yankees may use all reasonable means for accomplishing this
      in a manner that would not cause any physical damage to the Advertisement.
      As
      used herein, “Event” means any event or multiple events that may occur or be
      held in or at the Stadium including, without limitation, religious events,
      sporting events (amateur or professional, including the Games), banquets,
      picnics, weddings, concerts, movies, television programs and/or commercials
      as
      well as the occurrence of such events including, without limitation, the
      creation, filming, taping, development, exhibition, broadcast, telecast,
      transmission or distribution of such events by any means and media now known
      or
      hereafter developed. In addition, and except as otherwise set forth in this
      Agreement, the Yankees will solely determine the appropriate locations for
      all
      Advertisements in the Stadium.

    

    (c) Subject
      to the prior written approval with respect to each such use and any other
      restrictions contained in this Agreement, Sponsor is granted the limited,
      non-exclusive license during the Term to use the Marks (as defined below)
      throughout the Yankees’ Home Television Territory, as defined by MLB from time
      to time, in print advertisements, radio and television to advertise, promote
      and
      market Sponsor’s relationship with the Yankees. Sponsor acknowledges that by
      virtue of this Agreement it obtains no ownership right to any copyright,
      trademark, trade name or similar intangible owned by or acquired by the Yankees
      during the Term and it will make no use whatsoever (including in publicity
      for
      itself) of any of them without the Yankees’ prior, written consent. Sponsor
      further acknowledges that such trademarks include, but are not limited to,
      the
      name “New York Yankees,” the name “Yankee Stadium,” “Yankees” (script), Yankees’
Top Hat and interlocking “NY” logos,
      and any and all variations of the foregoing, together with any other marks
      owned
      by the Yankees, whether or not registered (the
      “Marks”). Sponsor may not utilize the Marks in conjunction with any other text
      or intellectual property or
      content (collectively, “Content”) in
      a
      manner that may cause confusion in the marketplace and/or create an entirely
      new
      mark that is not protected by the Yankees current intellectual property rights.
      In addition, Sponsor will make no use whatsoever (including publicity for
      itself) of the names or likeness of any of the Yankees’ staff or players,
      including minor league staff or players, without the prior written consent
      of
      the Yankees and the particular staff member or player (as the case may be).
      Moreover, any photographs, copyrighted materials or other intellectual property
      provided to Sponsor by
      the
      Yankees or its agents or representatives
      in
      connection with any Advertising and Sponsorship Benefits, as set forth in
      Exhibit B, may only be used for commemorative and non-commercial purposes,
      except as otherwise specifically set forth in this Agreement. Sponsor may not
      use such Content
      or the Marks
      as an
      endorsement and/or certification by the Yankees of Sponsor or any of its goods
      and services without the Yankees prior written consent. Marks
      shall not be used in combination or co-joined or co-branded with any other
      names, marks, words, symbols, letters or designs not previously approved in
      writing by the Yankees, which approval may be withheld or granted in the sole
      and absolute discretion of the Yankees. Sponsor shall promptly notify the
      Yankees upon becoming aware of any third party infringing any of the
      Marks.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    
      	2.	
              Term

            

    

    

    (a) The
      term
      of this Agreement will commence March 31, 2008 and will terminate on November
      1,
      2008 (the “Term”), unless earlier terminated as provided for in this
      Agreement.

    

    
      	3.	
              Sponsorship
                Fee 

            

    

     

    (a) In
      consideration of all the rights and Advertising and Sponsorship Benefits, as
      set
      forth in Exhibit
      B,
      granted
      to Sponsor by this Agreement, Sponsor agrees to provide the Yankees with a
      total
      sponsorship fee of [***]
      ($[***])
      Dollars
      (the “Sponsorship Fee”) which shall be due and payable as follows:

     

    
      	 	
              i)

            	
              One-fifth
                (i.e.,
                $[***])
                of the Sponsorship Fee on each of May 1, June 1, July 1 and August
                1
                during the Term; and

            

    

     

    
      	 	
              ii)

            	
              The
                remainder on or prior to September 1 of the
                Term.

            

    

    

    (b) The
      payment specified in subsection (a), above, must be paid by wire transfer or
      by
      check made payable to the “New York Yankees” drawn on a New York clearinghouse
      bank. Payment by check must be made to the Yankees at the address specified
      in
      subsection 15(a). Sponsor will be responsible for and pay any taxes, including
      sales taxes, levied as a result of this Agreement, other than any income taxes
      levied upon the Yankees for the Sponsorship Fee paid. The obligations contained
      in this subsection (b) will survive termination and/or expiration of the
      Agreement.

    

    (c) Any
      invoice sent to Sponsor is due within thirty (30) days from the date of
      Sponsor’s receipt of the invoice. Should Sponsor fail to make any payment when
      due, the past-due amount will bear interest at the rate of One Percent (1%)
      per
      month or the maximum amount permitted by applicable law. Failure to pay any
      invoice when due constitutes a material breach of the Agreement entitling the
      Yankees, in its sole discretion, to terminate the Agreement or withhold any
      of
      the Advertising and Sponsorship Benefits set forth in Exhibit
      B
      if not
      cured as set forth in Section 10. The withholding of any Advertising and
      Sponsorship Benefits as a result of Sponsor’s failure to pay any invoice is
      subject and without prejudice to any claims, rights and remedies which the
      Yankees may have against Sponsor.

     

      
        

      

    

    
      [***]CERTAIN
        INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE
        SECURITIES AND EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED
        WITH RESPECT TO SUCH OMITTED PORTIONS.

       

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    
      	4.	
              Content
                of Advertisement

            

    

    

    (a) The
      content and format of each Advertisement will be provided by Sponsor and
      thereafter: (i) be subject to the prior written approval of the Yankees, which
      approval may not be unreasonably withheld or delayed; and (ii) only market,
      promote or advertise Sponsor’s products and/or services described in Section 6
      below. 

    

    (b) In
      the
      Yankees sole judgment, the Yankees may refuse any Advertisement or element
      thereof that is, among other things: (i) of poor taste; (ii) considered
      repugnant by the public, or contains any material that is defamatory, obscene,
      profane or offensive; (iii) includes any material that describes or depicts
      any
      internal bodily function or symptomatic result of internal conditions in a
      repellant manner, or refers to matters that are not considered socially
      acceptable topics; (iv) of a political nature or makes an appeal for funds;
      (v)
      not of a suitable artistic and technical quality; (vi) contains any false,
      unsubstantiated or unwarranted claims for any product or services; (vii)
      contains any false or misleading statement or representation or unauthenticated
      testimonials; (viii) advertises any habit-forming drug, tobacco product,
      distilled liquor, weapon, firearm or ammunition; (ix) may violate the rights
      of
      any person, entity, firm or corporation, or infringes on another Sponsor’s
      rights through copyright infringement, plagiarism or unfair imitation of either
      an idea or copy; (x) gives rise to any other colorable claim of infringement,
      misappropriation or other form of unfair competition or includes elements of
      intellectual property without the owner’s consent to such use; (xi) disparages
      or libels any competitors’ products; (xii) contains any material constituting or
      relating to a lottery, a contest of any kind in which the public is unfairly
      treated or any enterprise, service or product that tends to encourage, abet,
      facilitate or promote illegal or legal gambling (unless otherwise agreed to);
      (xiii) might be injurious, prejudicial, detrimental to or be in conflict with
      the interests of the public, the Yankees, the Office of the Commissioner of
      MLB
      or honest advertising and reputable business in general; or (xiv) reasonably
      determined by the Yankees to directly or indirectly disparage or derogate the
      Yankees or any of its affiliates or portray the Yankees or any of its affiliates
      in a false, competitively adverse or poor light; or that adversely diminishes
      the value of the Yankees or any of its affiliates.

    

    
      	5.	
              Installation
                and Replacement

            

    

    

    (a) Sponsor
      is responsible for any and all actual and reasonable charges, costs and expenses
      including those directly related to the installation, fabrication, insertion,
      erection, development and/or affixation of the Advertisement on the Signage
      Space (the “Installation”). Sponsor must pay to or on behalf of the Yankees any
      and all charges, costs and expenses related to the Installation no later than
      seven (7) days following the Yankees’ request. 

    

    (b) In
      the
      event Sponsor desires to change or substitute any Advertisement, Sponsor must:
      (i) submit all samples, copies, camera ready artwork and/or digital displays
      for
      such Advertisement to the Yankees for approval in accordance with and subject
      to
      Section 4 above; and (ii) be responsible for any and all Installation charges,
      costs and expenses for such Advertisement.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (c) The
      Installation of any Advertisement may only occur when the Club is not playing
      in
      the Stadium and must comply with all applicable laws, regulations and
      ordinances. The Installation may only occur at a time and in a manner that
      is
      acceptable to the Yankees’ Stadium Operation department and will occur under the
      direction thereof. Sponsor further agrees that the Installation will not require
      the Signage Space to be cut, drilled, built into, disfigured or otherwise
      damaged or modified.

    

    
      	6.	
              Products
                to be Advertised

            

    

    

    (a) The
      written and graphic content of the Advertisement will be limited to the
      following products and/or services (the “Product Category”): Car
      Care.

    

    (b) Sponsor
      will not use the Signage Space for commercial or other announcements unrelated
      to the "SpongeTech” brand in the Product Category, or to advertise or provide
      information concerning any person, entity, product or service other than
“SpongeTech” and the “SpongeTech” brand in the Product Category. Each Signage
      Space may not advertise more than one Product Category. Furthermore, Sponsor
      may
      not co-op, resell, sublease or otherwise grant any right to any Advertisement,
      or portion thereof, to any person or entity that is not a party to the
      Agreement. 

    

    
      	7.	
              Advertising
                and Sponsorship
                Benefits

            

    

     

    In
      full
      consideration for Sponsor’s payment of the Sponsorship Fee and compliance with
      all the terms and conditions of this Agreement during the Term, Sponsor will
      receive the advertising and sponsorship benefits set forth in Exhibit
      B
      (the
“Advertising and Sponsorship Benefits”). 

    

    
      	8.	
              Representations
                and Warranties

            

    

    

    (a)
       The
      Yankees represents and warrants to Sponsor as follows:

    

    (i) it
      is a
      limited partnership duly organized, validly existing and in good standing under
      the laws of the State of Ohio;

    

    (ii) this
      Agreement has been duly executed and validly delivered and, subject to Section
      12, constitutes a valid and binding obligation legally enforceable against
      the
      Yankees in accordance with its terms;

    

    (iii) the
      execution and delivery of this Agreement by the Yankees and the performance
      of
      its obligations hereunder are not in violation of, and do not conflict with
      or
      constitute a default under, any of the terms and provisions of its limited
      partnership agreement or any agreement, indenture or instrument by which it
      is
      bound, or any law, regulation, order, decree, judgement or award to which it
      is
      subject and aware; 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

    (iv) it
      has
      the legal right, power, authority and capacity to execute, deliver and perform
      this Agreement; and

    

    (v) that
      it
      shall comply with all applicable federal, state and local laws, rules
and
      regulations in carrying out its obligations hereunder.

    

    (b)
       Sponsor
      represents and warrants to the Yankees as follows:

    

    (i) it
      is a
      corporation duly organized, validly existing and in good standing under the
      laws
      of the state of ____________;

    

    (ii) this
      Agreement has been duly executed and validly delivered and constitutes a valid
      and binding obligation legally enforceable against it in accordance with its
      terms;

     

    (iii) the
      execution and delivery of this Agreement by Sponsor and the performance of
      its
      obligations hereunder are not in violation of its organizational documents
      or
      bylaws, and do not conflict with or constitute a default under, any of the
      terms
      or provisions of or any agreement, indenture or instrument to which it is bound,
      or any law, regulation, order, decree, judgment or award to which it is subject
      and aware;

    

    (iv) it
      has
      the legal right, power, authority and capacity to execute, deliver and perform
      this Agreement; 

    

    (v) neither
      the Advertisements, Promotional Items nor any of their respective
      elements,
      content
      or
      material will: (1) infringe on or violate any person’s or entity’s rights of
      privacy or publicity or other personal property right of any other third party;
      (2) libel, slander or otherwise defame or disparage any third party; (3)
      violate that
      party’s
      copyright, trademark, service mark,
      trade
      dress
      or moral
      rights; or (4)
      violate
      any other applicable law;
      and,
      except with respect to Marks licensed hereunder, that Advertiser has all right,
      title and interest in and to each Advertisement created by or for
      Sponsor, 

    

    (vi)
       it
      will
      maintain in good standing its qualification to do business in the State of
      New
      York and in every other jurisdiction in which the failure to be so qualified
      or
      authorized to do business could have a material adverse effect on this Agreement
      and will comply in all material respects with all applicable governmental laws,
      rules, regulations and orders; and

    

    (vii) it
      possess all rights, licenses and clearances to distribute (as well as permit
      the
      Yankees to distribute) the Promotional Item(s) during the Promotional
      Day.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (c) Sponsor
      further covenants and agrees as follows:

    

    During
      and following the Term of this Agreement, Sponsor shall not:

    

    (i) infringe
      upon, harm or contest the rights of the Yankees in or to any of the
      Marks;

    

    (ii) adopt
      or
      seek to register or take any action to use or establish rights in any name,
      mark, word, symbol, letter or design which is confusingly similar to the Marks;
      or

    

    (iii) attack
      or
      perform any action, direct or indirect, which might challenge, impair or
      otherwise affect the validity of the Marks or the Yankee’s ownership
      thereof;

    

    
      	9.	
              Right
                to Terminate and/or
                Amend

            

    

    

    (a) The
      Yankees has the right to terminate and/or amend this Agreement upon thirty
      (30)
      days’ prior written notice to Sponsor if:

    

    (i) the
      Yankees desires, at any time during the Term, to change, structurally alter
      or
      demolish the Stadium in a manner which would require the removal or obstruction
      of the Advertisements; 

     

    (ii) the
      Club
      relocates from the Stadium; 

    

    (iii) the
      Yankees sell naming rights, “Premier Partner” rights, or an equivalent, to the
      Stadium; or

    

    (iv)
       the
      Yankees, in its reasonable discretion, determines that the continued association
      with Sponsor will be injurious to the goodwill and reputation of the
      Yankees.

    

    (b) In
      the
      event the Yankees exercises the right to terminate the Agreement as set forth
      herein, the Sponsorship Fee will be adjusted by refunding to Sponsor a pro
      rata
      portion of the Sponsorship Fee paid. Such refund will be equal to the product
      obtained by multiplying (i) the number of home games following the date of
      the
      termination of this Agreement by (ii) the Sponsorship Fee divided by 81.

     

    (c) In
      the
      event the Yankees exercises its right to amend the Agreement as set forth
      herein, the Sponsorship Fee will be adjusted by refunding to Sponsor the pro
      rata portion of Sponsorship Fee paid for the affected Advertising and
      Sponsorship Benefits. Such refund will be equal to the product obtained by
      multiplying (i) the number of home games following the date of amendment of
      this
      Agreement by the Sponsorship Fee divided by 81.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    
      	10.	
              Default;
                Termination

            

    

    

    (a)
       Sponsor
      will be in default of this Agreement if:

     

    (i) it
      fails
      to timely pay the Yankees the Sponsorship Fee when due (as described in Section
      3(c), or any other amount due under this Agreement, and such failure continues
      for a period of thirty (30) business days after notice has been sent to Sponsor
      of the amount due;

    

    (ii) it
      either
      voluntarily files for bankruptcy, receivership, insolvency, reorganization,
      dissolution, liquidation or any similar proceedings, as applicable, or
      involuntarily has a proceeding instituted against it and such proceeding is
      not
      dismissed within thirty (30) days;

     

    (iii)
       it
      makes
      a general assignment for the benefit of creditors; 

    

    (iv) it
      is in
      material breach of this Agreement and such breach is not cured within thirty
      (30) days of a notice specifying the breach; provided, however, the Yankees,
      in
      its sole discretion, may agree to a longer cure period if such breach cannot
      be
      cured within thirty (30) days but Sponsor has commenced action to effect such
      cure within the thirty (30) day period and thereafter is diligently pursuing
      the
      same. If Sponsor fails to cure the default by the end of the thirty (30) days
      or
      a longer cure period, as agreed to by the Yankees, then:

    

    (i) this
      Agreement and the rights granted and licensed to Sponsor herein will terminate;
      and

    

    (ii) Sponsor
      will not receive a refund of any portion of the Sponsorship Fee and will be
      responsible for all costs and expenses related to the removal of the
      Advertisements.

    

    (b) Unless
      otherwise specified and other than under the circumstances set forth in
      subsection (a)(iv) above, if Sponsor is in default of this Agreement, the
      Yankees will provide written notice (the “Default Notice”) to Sponsor stating
      that this Agreement will expire and terminate on a specific date, which date
      will not be less than ten (10) days after the date of the Default Notice (the
      “Termination Date”). If Sponsor fails to cure the default by the Termination
      Date, then:

    

    (i) this
      Agreement and the rights granted and licensed to Sponsor herein will terminate;
      and

    

    (ii) Sponsor
      will not receive a refund of any portion of the Sponsorship Fee and will be
      responsible for all costs and expenses related to the removal of the
      Advertisements.

    

    (c) Notwithstanding
      the provisions of this Section, in the event that, pursuant to the Bankruptcy
      Code, a trustee of Sponsor or Sponsor as debtor-in-possession is permitted
      to
      assume this Agreement and does so and, thereafter, desires to assign this
      Agreement to a third party, which assignment satisfies the requirement of the
      Bankruptcy Code, the trustee or Sponsor, as the case may be, must notify the
      Yankees of the terms of such proposed assignment in writing. The giving of
      such
      notice will constitute an offer to the Yankees to have this Agreement assigned
      to it or to its designee for the consideration, or its equivalent in money,
      and
      upon such terms, as is specified in the notice. This offer may be accepted
      only
      by written notice to the trustee or Sponsor, as the case may be, by the Yankees
      within fifteen (15) days of the Yankees’ receipt of notice from the trustee or
      Sponsor. If the Yankees fails to give its notice to the trustee or Sponsor
      within fifteen (15) days, the trustee or Sponsor may complete the assignment
      referred to in its notice, but only if such assignment is to the entity named
      in
      the notice and for the consideration and upon the terms specified therein.
      Nothing contained herein will preclude or impair any rights which the Yankees
      may have as a creditor in any proceeding. 

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    
 

    (d)
      The
      Yankees will be in default of this Agreement if:

    

    (i)
      it is
      in material breach of this Agreement and such breach is not cured within thirty
      (30) days of a notice specifying the breach; provided, however, Sponsor, in
      its
      sole discretion, may agree to a longer cure period if such breach cannot be
      cured within thirty (30) days but the Yankees has commenced action to effect
      such cure within the thirty (30) day period and thereafter is diligently
      pursuing the same.

    

    (e) If
      the
      Yankees are in default of this Agreement, Sponsor will provide written notice
      (the “Default Notice”) to the Yankees stating that this Agreement will expire
      and terminate on a specific date, which date will not be less than ten (10)
      days
      after the date of the Default Notice (the “Termination Date”). If the Yankees
      fail to cure the default by the Termination Date, then: 

    

    (i) this
      Agreement and the rights granted and licensed to Sponsor herein will terminate;
      and

    

    (ii) Sponsor
      will receive a pro-rata refund of any portion of the Sponsorship Fee paid.
      

    

    
      	11.	
              Indemnification

            

    

    

    (a) Each
      party (“Indemnitor”) agrees to indemnify, defend and hold harmless the other
      party, including such party's partners, parent and affiliated and subsidiary
      companies, and each of their respective directors, officers, employees and
      agents (each an “Indemnitee”) from and against, and to reimburse such Indemnitee
      with respect to, any and all losses, damages, liabilities, costs or expenses
      (including reasonable attorneys’ and professionals’ fees and disbursements)
      arising out of or in connection with any breach or alleged breach of this
      Agreement, any covenant
      herein contained, any representation
      made in it (including, without limitation, any claims by a third party that
      the
      exercise of the rights of a party to this Agreement in accordance with its
      conditions and limitations infringes that third party’s rights) or any personal
      injuries or property damage caused by the negligence or intentional acts of
      the
      Indemnitor or by its employees, representatives or agents. Without
      limiting the generality of the foregoing,
      Sponsor
      agrees to indemnify, defend and hold harmless the Yankees, including the
      Yankees’ partners, parent and affiliated and subsidiary companies, and each of
      their respective directors, officers, employees and agents (each a “Yankees
      Indemnitee”) from and against, and to reimburse such Yankees Indemnitee with
      respect to, any and all third party claims, losses, damages, liabilities, costs
      or expenses (including reasonable attorneys’ and
      professional fees and
      disbursements) arising out of or in connection with any (i) unauthorized use
      of
      the Marks, (ii) alleged or actual false advertising, fraud, misrepresentation,
      libel, slander, illegal competition or trade practice, infringement of
      trademarks, trade names or titles, violations of rights of privacy or publicity,
      or infringement of copyrights or other proprietary and intellectual property
      rights resulting from or arising out of or in connection with any Advertisement
      or brochure, and (iii)
      any
      personal injury or property damage sustained by third parties caused or
      occasioned by the negligence or intentional acts of Sponsor’s guests or invitees
      or any user of any Loge Hall of Fame Suite Tickets or Game tickets provided
      to
      Sponsor pursuant to this Agreement. Notwithstanding
      anything contained in this Agreement to the contrary, in the event that damage
      to the Stadium results or arises out of the acts or omissions of Sponsor, its
      agents, representatives, or invitees hereunder, the Sponsor’s indemnification
      obligations under this Section 11 shall include, but not be limited to, any
      indirect, consequential, or special damages (including lost profits or lost
      opportunities) incurred by the Yankees or any Yankees Indemnitee.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (b) The
      Indemnitee must give the Indemnitor notice of any matter which the Indemnitee
      has determined has given or could give rise to a right of indemnification,
      within thirty (30) days of such determination, stating the amount of the loss,
      if known, and method of computation thereof, and containing a reference to
      the
      provisions of this Agreement in respect of which such right of indemnification
      is claimed or arises (the “Indemnification Notice”); provided,
      however,
      the
      failure to provide the Indemnification Notice will not release the Indemnitor
      from any of its obligations under this Section except to the extent the
      Indemnitor is materially prejudiced by such failure and will not relieve the
      Indemnitor from any other obligation or liability that it may otherwise have
      to
      the Indemnitee. The Indemnitee must allow the Indemnitor the option to
      participate in and, at the Indemnitor’s option, fully control any compromise,
      settlement, litigation or other resolution of the claim or litigation, but
      the
      Indemnitor must not make any agreement that prospectively compromises or limits
      the Indemnitee’s substantive rights without the Indemnitee’s prior written
      consent (which consent will not be unreasonably withheld). The Indemnitee must
      cooperate with the Indemnitor in the defense and make available to the
      Indemnitor, at the Indemnitor’s expense, all witnesses, pertinent records,
      materials and information in the Indemnitee’s possession or under the
      Indemnitee’s control relating thereto as is reasonably required and requested by
      the Indemnitor. In no case will any compromise or limitation implicate rights,
      obligations or property beyond the subject matter of this Agreement. Without
      limiting the generality of the foregoing, if the Indemnitor fails or refuses
      to
      assume the defense of any claims, action or cause of action to which its
      indemnity applies (whether or not suit has formally been brought), the
      Indemnitor will be responsible for payment of any settlement of such claim,
      action or cause of action reached by the Indemnitee, as well as the costs and
      expenses (including reasonable attorneys’ and professionals’ fees) incurred by
      the Indemnitee in defending such claim, action or cause of action and/or in
      reaching such settlement. 

    

    (c)
       This
      indemnification provision is in addition to, and not in lieu of, any remedy
      either party may have for breach of this Agreement, and will survive the
      termination or expiration of this Agreement.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    (d) If
      either
      party brings an action against the other to enforce any provision of this
      Agreement, the prevailing party may recover its reasonable attorneys’ and/or
      professionals’ fees in addition to any other remedy it may have.

    

    (e) Each
      party warrants and represents that it has, or will secure, prior to the
      Installation and will maintain during and for at least three years following
      the
      Term of this Agreement:

    

    (i) worker’s
      compensation coverage (including employment liability insurance) covering all
      persons employed by it in connection with the Advertisement and Installation
      which is sufficient under the laws of the State of New York; and

    

    (ii) commercial
      general liability insurance (including advertising injury coverage) having
      a
      limit of at least $1,000,000.00 for bodily injury and property damage combined
      per occurrence for any one person and a limit of at least $3,000,000.00 for
      injuries in the aggregate for all claims of bodily injury and property damage
      combined.

    

    (f) All
      such
      insurance must be issued by reputable insurers rated A or better by A.M. Best
      and Co., contain commercially reasonable deductibles and the commercial general
      liability insurance must cover the other party as an additional insured. Either
      party must provide the other with evidence of such insurance upon the request
      of
      the other party throughout the Term. The liability insurance coverage will
      be
      considered primary and noncontributory with respect to any similar insurance
      carried by the additional insureds.

    

    
      	12.	
              MLB
                Subservience

            

    

    

    Notwithstanding
      any other provision of this Agreement:

    

    (a) This
      Agreement and the rights, exclusivities and protections granted by the Yankees
      to Sponsor hereunder will be subject to the prior written approval of MLB and
      will in all respects be subordinate to, and will not prevent the issuance,
      entering into, or amendment of, any of the following, each as may be issued,
      entered into or amended from time to time (collectively, the “MLB Documents”):
      (i) any present or future agreements or arrangements regarding the telecast,
      broadcast, recording (audio or visual), or other transmission or retransmission
      (including, but not limited to, transmission via the Internet or any other
      medium of interactive communication, now known or hereafter developed) of MLB
      games, and/or the accounts and descriptions thereof, entered into with third
      parties by any of MLB, MLB Enterprises, Inc., MLB Properties, Inc., and/or
      any
      of their respective present or future affiliates, assigns or successors
      (collectively, the “MLB Entities”), either on its own behalf or on behalf of the
      MLB Clubs and/or other MLB Entities; (ii) any other present or future agreements
      or arrangements entered into with third parties by, or on behalf of, any of
      the
      MLB Entities, including, without limitation, those relating to ticketing,
      e-commerce, and/or the exploitation of intellectual property rights in any
      medium, including the Internet or any other medium of interactive communication;
      (iii) any present or future agreements or arrangements entered into by the
      Yankees with the other MLB Clubs and/or one or more of the MLB Entities
      (including, without limitation, the Major League Constitution and each agency
      agreement and operating guidelines among the MLB Clubs and an MLB Entity);
      and
      (iv) the applicable rules, regulations, policies, bulletins or directives issued
      or adopted either by MLB or otherwise pursuant to the Major League Constitution
      or any such agency agreement. The Yankees and Sponsor will each comply with
      all
      applicable terms, conditions and requirements contained in the MLB Documents
      with respect to the subject matter of this Agreement.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (b) No
      rights
      granted by the Yankees herein relate to the advertising or promotion of any
      on-line system, computer network or Interactive Media-related services or other
      on-line specific goods, services or brands. For purposes of this Agreement,
      “Interactive Media” means (i) the Internet or any other on-line system or
      computer network; (ii) any interactive wireless service, including any
      interactive microwave or cellular service; (iii) any interactive satellite
      service; (iv) any interactive broadcast television, broadcast radio or cable
      television service; and (v) any other medium of interactive communication now
      known or hereafter devised. Furthermore, no rights, exclusivities or obligations
      involving the Internet or any on-line media (as defined by MLB Entities) are
      conferred by this Agreement and it is expressly understood and agreed that
      Sponsor will have no rights to any sponsorship benefits with respect to any
      Interactive Media and any Yankees’ Internet web-site, including, without
      limitation, www.yankees.com, or any MLB Internet web-site or any web-site of
      any
      affiliate of the Yankees or MLB or any future Internet site affiliated with
      or
      designated by the Yankees or MLB. It is further understood and agreed that
      the
      Agreement does not grant Sponsor the right or license to utilize the Marks
      in
      connection with any Interactive Media, including, without limitation, Sponsor’s
      Internet site or any current or future Internet site affiliated or not
      affiliated with Sponsor. 

    

    (c) The
      Sponsor acknowledges that MLB Advanced Media (“MLBAM”) controls the Yankees’
Internet site, including the ability to sell sponsorships and/or advertisements
      (e.g.,
      banner
      advertisements, pop-up advertisements, etc.) thereon as well as the ability
      to
      authorize the use of the Marks in connection with any Interactive Media (the
      “Internet Sponsorship Package(s)”). As such, MLBAM may sell an Internet
      Sponsorship Package to Sponsor’s competitor(s). Notwithstanding the foregoing,
      the Sponsor may be provided with a limited “last look” opportunity to buy out
      the Internet Sponsorship Package, but only in certain (not all) product
      categories (as may be defined by MLBAM, from time to time) (the “MLBAM Product
      Categories”). In connection with this limited right, MLBAM will notify the
      Yankees whenever a proposed Internet Sponsorship Package is offered to a
      prospective MLBAM sponsor and, if the Internet Sponsorship Package is within
      the
      MLBAM Product Categories, permit the Sponsor the option to match and/or buy
      out
      the Internet Sponsorship Package (“Internet Matching Option”), which if
      exercised and paid for by Sponsor, would entitle Sponsor to the relevant
      Internet Sponsorship Package (which may or may not include any exclusivity
      and/or right of last refusal). In the event the Sponsor does not timely exercise
      the Internet Matching Option or does not match/buy out the Internet Sponsorship
      Package, then MLBAM would be free to sell the Internet Sponsorship Package
      to
      the prospective MLBAM sponsor. The Sponsor does not have the Internet Matching
      Option for Internet Sponsorship Packages offered to the prospective MLBAM
      sponsors in product categories outside the MLBAM Product Categories. Any actions
      taken by MLBAM in connection with the Yankees’ Internet site including, without
      limitation, the sale of Internet Sponsorship Packages to competitors of Sponsor
      will not constitute a default of the Agreement by the Yankees. 

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    (d) The
      territory of this Agreement, and all rights, licenses and sponsorship benefits
      granted hereunder, is limited to the Yankees’ Home Television Territory, as
      established and amended from time to time pursuant to the MLB Documents. This
      Agreement does not grant Sponsor any rights or sponsorship benefits outside
      of
      the Yankees’ Home Television Territory. Any attempt by Sponsor to exercise any
      rights or sponsorship benefits outside the Yankees’ Home Television Territory
      constitutes a material breach of this Agreement. 

    

    (e) The
      Yankees have the right, at no cost or liability to it or any other club or
      MLB
      Entity, to terminate this Agreement at any time the Sponsor breaches its
      obligations under subsections (a) through (d), above. The right to terminate
      is
      exercisable by delivering written notice to the Sponsor within thirty (30)
      days
      after the Yankees obtains actual knowledge that such breach has occurred and
      the
      effective date of such termination will be no more than thirty (30) days after
      the date such notice is given, as specified by the Yankees in such notice.
      

    

    (f) The
      parties recognize that the Yankees are subject to the MLB Documents. The parties
      agree and intend that this Agreement and the activities of each of them in
      connection with this Agreement must conform to and comply with the terms and
      restrictions of the MLB Documents, and that they will not undertake any
      activities that are prohibited by the MLB Documents. If the rights, obligations
      or benefits of any party to this Agreement are required to be modified, revised,
      restricted or terminated because of the MLB Documents, this Agreement will
      be
      modified to the extent necessary to bring it into conformity with the MLB
      Documents and, as revised, this Agreement will remain in full force and effect,
      with each party obligated to perform its obligations and entitled to receive
      its
      benefits under this Agreement as revised. In the event that the modification(s),
      revision(s), restriction(s) or termination of this Agreement pursuant to the
      MLB
      Documents decreases the value of the rights granted to Sponsor hereunder, the
      parties will negotiate in good faith to adjust the terms of the Agreement to
      provide Sponsor with a reasonable make-good for such decrease. 

    

    
      	13.	
              Limitation
                of Liability; Disclosure of
                Warranties

            

    

    

    (a) EXCEPT
      AS EXPRESSLY PROVIDED FOR IN SECTION 11 OF THIS AGREEMENT, NEITHER PARTY SHALL
      BE LIABLE TO THE OTHER PARTY HEREUNDER FOR ANY PUNITIVE, INDIRECT, SPECIAL
      OR
      CONSEQUENTIAL DAMAGES (UNDER ANY THEORY OF LAW), INCLUDING DAMAGES FOR LOST
      REVENUE, LOST PROFITS OR OTHER ECONOMIC DAMAGE, EVEN IF IT HAS BEEN ADVISED
      OF
      OR HAS FORESEEN THE POSSIBILITY OF SUCH DAMAGES, UNLESS SUCH DAMAGES ARISE
      FROM
      GROSS NEGLIGENCE, WILFULLNESS OR FRAUD.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    (b) EXCEPT
      AS EXPRESSLY SET FORTH IN THIS AGREEMENT, THE PARTIES DISCLAIM ALL EXPRESS
      AND
      IMPLIED WARRANTIES, INCLUDING THE IMPLIED WARRANTY OF MERCHANTABILITY, THE
      IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE OR USE AND THE IMPLIED
      WARRANTY OF NONINFRINGEMENT.

    

    
      	14.	
              Notices

            

    

    

    All
      notices, requests, claims, demands and other communications must be in writing
      and shall be duly given on the date of delivery, if transmitted by a nationally
      recognized courier service or by facsimile (provided a copy of such facsimile
      is
      also sent at the time of such facsimile transmission to the recipient by any
      other means permitted hereunder), so as to be received during the hours of
      8:00
      AM to 5:00 PM, Monday through Friday, or on the date of receipt, if mailed
      to
      the person to whom notice is to be given by certified or registered mail,
      postage prepaid, and properly addressed to the addresses set forth above or
      such
      other address as may be set forth in written notice of change of address
      transmitted in the manner set forth in this Section 14.

    

    
      	
              (a)

            	
              If
                to the Yankees:

            
	 	
              New
                York Yankees

            
	 	
              Yankee
                Stadium

            
	 	
              Bronx,
                New York 10451

            
	 	
              Attention:
                

            	
              Lonn
                A. Trost, Esq.

            
	 	 	
              Chief
                Operating Officer

            
	 	
              Phone:
                

            	
              (718)
                579-4420

            
	 	
              Facsimile:
                

            	
              (718)
                681-1051

            
	 	 	 
	(b)	
              If
                to Sponsor:

            
	 	
              SpongeTech
                Delivery Systems, Inc.

            
	 	
              43
                West 33rd Street, Suite 600

            
	 	
              New
                York, New York 10001

            
	 	
              Attention:
                

            	
              Steven
                Moskowitz

            
	 	 	
              Chief
                Operating Officer

            
	 	
              Phone:
                

            	
              (212)
                695-7850

            
	 	
              Facsimile:
                

            	
              (___)
                ___-____

            

    

    

    
      	15.	
              General
                Provisions

            

    

    

    (a) Separability.
      In case any one or more of the provisions contained in this Agreement or any
      application thereof shall be deemed invalid, illegal or unenforceable in any
      respect, such affected provisions shall be construed and deemed rewritten so
      as
      to be enforceable to the maximum extent permitted by law, thereby implementing
      to the maximum extent possible, the intent of the parties hereto, and the
      validity, legality and enforceability of the remaining provisions contained
      in
      this Agreement shall not in any way be affected or impaired
      thereby.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    (b)
       Waiver.
      Any breach of any term or provision of this Agreement shall be waived only
      by
      means of a writing signed by the non-breaching party hereto which sets forth
      with particularly the breach being waived and the scope of the waiver. Any
      waiver of any term or condition of this Agreement shall not be construed as
      a
      waiver of any subsequent breach or a subsequent waiver of the same term or
      condition, or a waiver of any other term or provision of this Agreement. No
      waiver shall be implied from any conduct or action of the non-breaching party
      hereto. The failure of either party hereto in asserting any of its rights
      hereunder shall not operate as a waiver of any such rights.

    

    (c) Entire
      Agreement. This Agreement and Exhibit A and Exhibit B, annexed
      hereto, constitute the entire agreement and understanding between the parties
      hereto with respect to the subject matter hereof and supersede all prior
      agreements and understandings, both written and oral, of the parties hereto
      regarding the subject matter of Agreement. This Agreement and Exhibit A
      and Exhibit B, annexed hereto, may be amended only by means of a written
      agreement executed by each of the parties hereto.

    

    (d) Binding
      Effect; Assignment. This Agreement shall be binding upon, and shall inure to
      the benefit, of the respective successors and permitted assigns of the parties
      hereto.

    This
      Agreement and all obligations of the parties are binding upon the successors
      and
      permitted assigns of the parties. This Agreement will inure to the benefit
      of
      and be enforceable by the parties and their successors and permitted assigns.
      Neither party may assign or otherwise transfer its rights or obligations under
      this Agreement without the prior written consent of the other party; provided,
      however, the Yankees may assign or otherwise transfer this Agreement to any
      affiliate of the Yankees and/or in connection with the sale or transfer (by
      merger, consolidation or otherwise) by the Yankees of all or substantially
      all
      of the Yankees’ assets. In the event Sponsor is authorized to assign this
      Agreement, and actually assigns this Agreement, Sponsor will nevertheless remain
      fully bound and liable under this Agreement.

     

    (e) Signatures.
      This Agreement may be executed and delivered via telecopier machine or other
      form of electronic delivery by the parties hereto, which shall be deemed for
      all
      purposes as an original.

    

    (f)
       Specific
      Performance; Remedies. Each of the parties hereto acknowledges and agrees
      that its respective remedies at law for a breach or threatened breach of any
      of
      the provisions of this Agreement would be inadequate and, in recognition of
      that
      fact, agrees that, in the event of a breach or threatened breach by a party
      hereto of the provisions of this Agreement, in addition to any remedies at
      law,
      the other party hereto shall, without posting any bond, be entitled to obtain
      equitable relief in the form of specific performance, a temporary restraining
      order, a temporary or permanent injunction or any other equitable remedy which
      may then be available. No remedy herein conferred or reserved is intended to
      be
      exclusive of any other available remedy or remedies, and each and every remedy
      shall be cumulative and shall be in addition to every remedy under this
      Agreement or now or hereafter existing at law or in equity.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    (g)
       Waiver
      of Jury Trial. EACH
      PARTY TO THIS AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY
      IN
      ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR
      OTHERWISE) ARISING OUT OF, OR RELATING TO, THIS AGREEMENT OR THE ACTIONS OF
      THE
      PARTIES TO THIS AGREEMENT IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND
      ENFORCEMENT HEREOF. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE,
      AGENT OR ATTORNEY OF THE OTHER PARTY HERETO HAS REPRESENTED, EXPRESSLY OR
      OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK
      TO
      ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTY
      HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS,
      THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 15.

    

    (h)
       Third
      Party Beneficiaries. The provisions of this Agreement are not intended to be
      for the benefit of any creditor, person or other entity (other than MLB) to
      whom
      any debts, liabilities, or obligations are owed by (or who otherwise has any
      claim against) the Sponsor or any related party; and no such creditor, person
      or
      other entity shall obtain any benefit from such provisions or shall, by reason
      of any such foregoing provision, have any claim in respect of any debt,
      liability, or obligation against the Yankees or any related party.

    

    (i) Applicable
      Law; Jurisdiction.
      THIS
      AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
      WITH, THE INTERNAL LAWS AND DECISIONS OF THE STATE OF NEW YORK WITHOUT REGARD
      TO
      CONFLICT OF LAW RULES APPLIED IN SUCH STATE. EACH PARTY HERETO IRREVOCABLY
      AGREES THAT ANY LEGAL ACTION, SUIT OR PROCEEDING AGAINST THEM ARISING OUT OF
      OR
      IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
      DISPUTES RELATING HERETO (WHETHER FOR BREACH OF CONTRACT, TORTIOUS CONDUCT
      OR
      OTHERWISE) SHALL BE BROUGHT EXCLUSIVELY IN THE UNITED STATES DISTRICT COURT
      FOR
      THE SOUTHERN DISTRICT OF NEW YORK, OR, IF SUCH COURT DOES NOT HAVE SUBJECT
      MATTER JURISDICTION, THE STATE COURTS OF NEW YORK LOCATED IN BRONX COUNTY AND
      HEREBY IRREVOCABLY ACCEPTS AND SUBMITS TO THE EXCLUSIVE JURISDICTION AND VENUE
      OF THE AFORESAID COURTS
      IN PERSONAM, WITH RESPECT TO ANY SUCH ACTION, SUIT OR PROCEEDING, AND WAIVES
      ANY
      CLAIM THAT SUCH FORUM IS INCONVENIENT OR ANY SIMILAR CLAIM.
IN
      THE EVENT THAT A PARTY COMMENCES ANY ACTION AGAINST THE OTHER PARTY IN ANOTHER
      JURISDICTION OR VENUE IN RESPECT OF ANY SUCH DISPUTE, SUCH OTHER PARTY SHALL
      BE
      ENTITLED, AT ITS OPTION, TO HAVE THE ACTION TRANSFERRED TO ONE OF THE
      JURISDICTIONS AND VENUES DESCRIBED IN THIS SUBSECTION (i)
      OR
      IF SUCH TRANSFER CANNOT BE ACCOMPLISHED UNDER APPLICABLE LAW, TO HAVE SUCH
      ACTION DISMISSED WITHOUT PREJUDICE. EACH
      PARTY AGREES THAT A FINAL JUDGMENT IN ANY SUCH SUIT, ACTION OR PROCEEDING
      BROUGHT IN SUCH COURT, AFTER ALL APPROPRIATE APPEALS, IS CONCLUSIVE AND BINDING
      UPON IT. 

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    (j) Service
      of Process.
      EACH OF THE PARTIES HERETO HEREBY ACKNOWLEDGES AND CONFIRMS THAT SERVICE OF
      ANY
      PROCESS, SUMMONS, NOTICE OR DOCUMENT BY U.S. REGISTERED MAIL TO, IN THE CASE
      OF
      THE YANKEES, THE ADDRESS SET FORTH IN SECTION 15 OF THIS AGREEMENT OR, IN THE
      CASE OF THE SPONSOR, TO SPONSOR’S REGISTERED AGENT FOR SERVICE OR PROCESS IN THE
      STATE OF NEW YORK SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY ACTION, SUIT
      OR
      PROCEEDING IN NEW YORK WITH RESPECT TO ANY MATTERS FOR WHICH IT HAS SUBMITTED
      TO
      JURISDICTION PURSUANT TO SUBSECTION 15(i) OF THIS AGREEMENT AND WILL TO THE
      FULLEST EXTENT ENFORCEABLE BY LAW, BE VALID PERSONAL SERVICE UPON AND PERSONAL
      DELIVERY TO IT. 

    

    (k) Dispute
      Resolution.
      In the
      event of any dispute with regard to the interpretation of this Agreement or
      the
      respective rights and obligations of the parties, and as a condition precedent
      to any legal action, arbitration or alternative dispute resolution proceeding
      being commenced by either party, a representative of the parties will attempt
      in
      good faith to resolve the parties’ differences. If after three (3) business days
      they are unable to resolve the parties’ differences, the dispute will be
      referred to the General Counsel (or a similarly situated person) of each party,
      who will meet in person and attempt in good faith to resolve the dispute. If
      the
      dispute is then not resolved within five (5) business days, then the parties
      may
      agree to arbitration or may file an action to be resolved in the Courts of
      the
      State of New York, by non-binding arbitration at the offices of the American
      Arbitration Association (the "AAA") in New York, New York under the Commercial
      Arbitration Rules of the AAA then in effect or by any other alternative dispute
      resolution proceeding. The Yankees’ determination in this regard is absolute
      even in the event arbitration or another form of alternative dispute resolution
      is favored or instituted by the Sponsor. 

    

    (l) Force
      Majeure.
      Neither
      party will be liable to the other because of any failure to perform any part
      of
      this Agreement because of fire, earthquake, rain, flood, acts of terrorism,
      or
      any other acts of God, power failures, electrical or mechanical difficulties,
      strikes (including any interruption of the playing of major league baseball,
      regardless of the cause), lockout, work stoppages or other labor disturbances,
      governmental regulations or restrictions, or any other cause or condition,
      whether similar or dissimilar to any of the foregoing, beyond the reasonable
      control of the Yankees or Sponsor. Any delay in the performance of this
      Agreement by acts of God or other causes beyond the control of the Yankees,
      or
      because of any strike, sympathy strike, lockout, work stoppage, picketing,
      damage or concerted action by an employee or any labor organization will not
      constitute a breach of this Agreement or a ground for cancellation, suspension
      or termination hereof. Any non-display of any Advertisement due to maintenance
      thereof will not constitute a breach of this Agreement or a ground for
      cancellation, suspension or termination hereof or entitle Sponsor to a credit,
      make good or rebate of any kind. 

    

    (m) Relationship
      of Parties.
      Nothing
      in this Agreement will create any association, partnership, joint venture or
      agency relationship between the parties. All persons employed by Sponsor in
      connection with its performance under this Agreement will be Sponsor’s employees
      and Sponsor will be fully responsible for them, except as otherwise explicitly
      provided in this Agreement. Likewise, all persons employed or engaged by the
      Yankees will be employees or contractors of the Yankees and the Yankees will
      be
      fully responsible for them.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    (n) Survival.
      The
      parties agree that the representations and warranties contained in this
      Agreement will survive the termination of this Agreement.

    

    (o) Sophisticated
      Commercial Party.
      Each
      party to this Agreement represents that it is a sophisticated commercial party
      capable of understanding all of the terms of this Agreement, that it has had
      an
      opportunity to review this Agreement with its counsel, and that it enters this
      Agreement with full knowledge of the terms of this Agreement.

     

    (p) Confidential
      Information.
      Each of
      the parties hereto acknowledges and agrees that the terms of this Agreement
      and
      all Exhibits hereto and all information imparted to or learned by such party
      from the other in connection with or pursuant to the Agreement and all Exhibits
      hereto or any rights and obligations associated with any of the foregoing,
      including, but not limited to, any estimates, budgets, proposals, projections,
      financial settlements, physical or medical information or other documents
      prepared in connection with the relationship proposed in the Agreement, is
      confidential to the extent such information was not obtained through other
      lawful means. Each party agrees that such party will not, unless specifically
      consented to in writing in advance by the other party concerned, divulge,
      transmit or otherwise disclose any confidential information to any person or
      entity, except when disclosure is (i) appropriate in order to protect the rights
      of such party in the event of a default or breach by the other party; (ii)
      required by the MLB Documents; (iii) for either party’s attorneys, accountants,
      bankers, consultants and/or investment bankers; and (iv) with respect to any
      offerings of debt and/or equity by the Yankees or their past, present and future
      subsidiaries, parent and sister corporations, limited liability companies,
      partnerships, affiliates and successors and the like, by
      any
      means or media whatsoever and each party agrees that such party will not use
      any
      confidential information other than in such party’s performance of duties under
      the Agreement. Except
      to
      the extent required by law, each party will take all reasonable steps to protect
      the confidentiality of this Agreement, 

    

    (q) Interpretation.
      All pronouns and any variation thereof shall be deemed to refer to the
      masculine, feminine or neuter, singular or plural, as the identity of the entity
      or entities may require. All references to a “Section” shall mean Section of the
      Agreement, unless the context otherwise requires. 

    

    (r) Further
      Assurances. Each party hereto shall execute, acknowledge, deliver, file and
      record such further certificates, amendments, instruments and documents, and
      to
      do all such other acts and things, as may be required by law or as, in the
      reasonable judgment of the other party hereto, may be necessary or advisable
      to
      carry out the intent and purposes of this Agreement.

    

    (s) Fees
      and Expenses. Each of the parties hereto shall pay its own fees and expenses
      incurred in connection with the negotiation, preparation, execution and delivery
      of this Agreement (including Exhibit A and Exhibit B annexed
      hereto) and any other agreement or document contemplated hereby.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    (t) Exculpated
      Persons. No general or limited partner, shareholder, director, officer,
      member, beneficiary, trustee, manager, other controlling person, investor,
      employee, attorney, agent or independent contractor of either party hereto
      (each
      an “Exculpated Person”) shall be personally liable for any obligation or
      liability of such party under this Agreement, and all obligations and
      liabilities of such party under this Agreement are enforceable solely against
      such party and such party’s assets, and not against any Exculpated Person or the
      assets of any Exculpated Person.

    

    (u) No
      Presumption. This Agreement shall be construed without regard to any
      presumption or rule requiring construction or interpretation against the party
      which drafted or caused this Agreement to be drafted.

    

    (v) Captions.
      The captions used in this Agreement are intended for convenience of reference
      only, shall not constitute any part of this Agreement and shall not modify
      or
      affect in any manner the meaning or interpretation of any of the provisions
      of
      this Agreement.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties have duly executed this Agreement as of the day
      and
      year first above written.

    

    
      	
              SpongeTech
                Delivery Systems, Inc.

            	 	
              New
                York Yankees Partnership

            
	 	 	 	 	 
	
              By:

            	
              /s/
                Steven Moskowitz

            	 	
              By:

            	
              /s/
                Lonn A. Trost

            
	 	
              Steven
                Moskowitz

            	 	 	
              Lonn
                A. Trost, Esq.

            
	 	
              Chief
                Operating Officer

            	 	 	
              Chief
                Operating Officer

            

    

    

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      A

    

    (1) Diorama
      Advertisement (sample Advertisement depicted).

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    (2)
      Highway Marquee Clock Advertisements (sample Advertisement
      depicted).

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B

    

    Advertising
      and Sponsorship Benefits

    

    
      	1.	
              Advertising
                and Sponsorship
                Benefits

            

    

    

    In
      consideration for the payment of the Sponsorship Fee, set forth in Section
      3,
      Sponsor will receive the following Advertising and Sponsorship Benefits during
      the Term:

    

    a. Designation.
      Sponsor
      will be designated as “A Proud Sponsor of the New York Yankees.”

    

    b. Diorama
      Advertisement.
      One (1)
      backlit Diorama Advertisement measuring seventy-two inches by forty-two inches
      (72” x 42”). The Diorama Advertisement will be located on the Field, Main or
      Tier Level of the Stadium. Subject to the MLB Documents, the Diorama
      Advertisement will be displayed during each postseason game played in the
      Stadium. The Diorama Advertisement shall resemble the advertisement depicted
      in
Exhibit
      A.

    

    c. Highway
      Marquee Clock Advertisements.
      Two (2)
      Highway Marquee Matrix Clock Advertisements, each measuring fourteen feet by
      three feet (14’ x 3’), one (1) located on each side of the Highway Marquee
      Matrix Board located adjacent to the Major Deegan Highway. The Clock
      Advertisements shall resemble the advertisement depicted in Exhibit
      A.

    

    d. Promotional
      Day.
      Sponsor
      will receive one (1) promotional day (the “Promotional Day”) during the 2008
      Season. Sponsor will be responsible for the cost and expense of supplying a
      mutually agreed upon number of promotional items (the “Promotional Items”) for
      the Promotional Day. Sponsor will supply: i) 20,000 Promotional Items to be
      given to either the first 18,000 fans 14 and under in attendance or 21 and
      over;
      or ii) 60,000 Promotional Items to be given to all fans in attendance. In
      addition, Sponsor hereby grants the Yankees title to the Promotional Items
      and
      the right to distribute any remaining Promotional Items following the
      Promotional Day for charitable and other non-commercial purposes. Sponsor will
      also be provided with the following customary marketing and hospitality benefits
      in connection with the Promotional Day: 

    

    i) Radio
      and
      Television: The Promotional Day and Promotional Item will be mentioned and/or
      displayed in a live read during live game radio broadcasts and live game
      telecasts in select games preceding the Promotional Day; provided that each
      mention and/or display will be subject to time availability. The timing of
      the
      reads and Games in which the reads are broadcast are solely determined by the
      Yankees, subject to availability;

    

    ii) In-Stadium
      Marquee Matrix Board: Sponsor’s name and the Promotional Day will be spotlighted
      in each of the ten (10) Games preceding the Promotional Day;

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    iii) DiamondVision:
      One (1) full-color video spot promoting the Promotional Day will be displayed
      in
      each of the ten (10) Games preceding the Promotional Day;

    

    iv) Highway
      Marquee Matrix Board: Sponsor’s name and the Promotional Day will be spotlighted
      during each of the ten (10) days preceding the Promotional Day;

    

    v) Yankees
      Magazine:
      Sponsor’s name and the Promotional Day will be listed in each in-Season issue of
      the Yankees
      Magazine
      on a
      special promotion page, subject
      to publication deadlines;

    

    vi) Hall
      of
      Fame Suite Party: One (1) Hall of Fame Suite Party (including food and
      beverages) on the Promotional Day for up to a maximum of twenty-four (24)
      people; 

    

    vii) Game
      Tickets: Two Hundred (200) complimentary Tier Reserved Game tickets (the seating
      locations of which will be determined by the Yankees) to the Game on the
      Promotional Day. All Game tickets (including Promotional Day tickets and suite
      tickets) are provided subject to the condition that if the Agreement is
      terminated, any unused Game tickets must be returned to the Yankees no later
      than thirty (30) days following the termination of the Agreement. Sponsor will
      be required to pay the face value of each Game ticket that has not been returned
      within thirty (30) days following the termination date. No Game tickets may
      be
      resold for any consideration, monetary or otherwise, or used for including,
      without limitation, promotions, contests, giveaways, sweepstakes, auctions,
      etc., without the prior written approval of the Yankees. The exercise of such
      right by the Yankees will not result in any liability on the part of the Yankees
      or entitle Sponsor to any credits, make-goods, rebates or other benefits;
      and

    

    viii) On-Field
      Ceremony: A pre-game On-Field Ceremony will be held prior to the Game on the
      Promotional Day whereby the Yankees will express its thanks to Sponsor for
      sponsoring the Promotional Day. Two (2) of Sponsor’s representatives may
      participate in the pre-game On-Field Ceremony. 

    

    
      
        
        

      

      
        24

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