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Barrett Assignment Agreement

Loral Space to Telesat IOM

March 1, 2011

Page 1 of 10

 

BARRETT ASSIGNMENT AGREEMENT

 

THIS BARRETT AGREEMENT (the “Agreement”) is dated as of the 1st day of March 2011 and effective on the Effective Date (as defined below) by and between TELESAT IOM LIMITED, a corporation organized and existing under the laws of the Isle of Man (“Telesat IOM”) and LORAL SPACE & COMMUNICATIONS INC., a corporation organized and existing under the laws of the State of Delaware (“Loral Space”).  The parties hereto may be referred to individually as a “Party” and collectively as the “Parties”.

 

WITNESSETH:

 

WHEREAS, Loral Space and Barrett Xplore Inc. (“Barrett”) entered into a Satellite Capacity and Gateway Service Agreement, dated as of December 31, 2009, whereby Loral Space agreed to provide to Barrett, and Barrett agreed to take from Loral Space, certain space segment services on the Loral Space payload on the ViaSat-1 satellite (the “Satellite”) and related services; and

 

WHEREAS, Loral Space and Telesat IOM are entering into a Space Segment Assignment and Assumption Agreement contemporaneously with this Agreement (the “Space Segment Assignment Agreement”) pursuant to which Loral Space will assign certain contracts relating to the Satellite to Telesat IOM; and

 

WHEREAS, Loral Space, Loral Canadian Gateway Corporation, a Canadian corporation (“LCGC”) and Telesat Canada, a Canadian corporation (“Telesat Canada”) are entering into a Gateway Assignment and Assumption Agreement contemporaneously with this Agreement (the “Gateway Assignment Agreement”) pursuant to which LCGC will assign contracts associated with the gateway facilities for the operation of the Satellite to Telesat Canada; and

 

WHEREAS, Loral Space desires to assign to Telesat IOM, and Telesat IOM desires to assume from Loral Space, Loral Space’s rights and obligations under the agreements entered into with Barrett identified in Schedule 1 attached hereto (collectively the “Barrett Agreement”), according to the terms and conditions set forth below;

 

NOW, THEREFORE, in consideration of the foregoing premises and of the mutual representations, warranties, covenants and agreements hereinafter contained, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

 

  

  

  

 

Barrett Assignment Agreement

Loral Space to Telesat IOM

March 1, 2011

Page 2 of 10

 

1.0          Assignment by Loral Space to Telesat IOM and

 

1.1           For and in consideration of (x) payment by Telesat IOM to Loral Space of the Loral Payment (as defined below) and (y) and assumption by Telesat IOM from Loral Space of the obligations of Loral Space under the Barrett Agreement, Loral Space hereby absolutely and irrevocably transfers, assigns, sets over and conveys unto Telesat IOM any and all of Loral Space’s rights, title and interest in, to and under the Barrett Agreement and any and all of Loral Space’s burdens, duties, obligations and liabilities under the Barrett Agreement from and after the Effective Date.  Telesat IOM hereby accepts such assignment and, without limiting, and in furtherance of, the
foregoing, agrees pursuant the Barrett Assumption Agreement to be delivered by Telesat IOM on the Effective Date in the form attached hereto as Annex A, to assume such burdens and agrees to observe and perform all of the duties, obligations, terms, provisions and covenants, and to pay and discharge all of the liabilities of Loral Space to be observed, performed, paid or discharged from and after the Effective Date under the Barrett Agreement, with the same force and effect as though Telesat IOM were a party to the Barrett Agreement.  It is understood and agreed that, except as set forth below in Section 1.3, from and after the Effective Date Loral Space shall be released from any and all further liabilities and obligations under the Barrett Agreement, and Telesat IOM shall cooperate with Loral Space and use commercially reasonable efforts to assist Loral Space in obtaining from Barrett a full release of its obligations under the Barrett Agreement.

1.2     On the Effective Date in consideration for the assignment of the Barrett Agreement and other good and valuable consideration, Telesat IOM shall pay to Loral Space TWELVE MILLION, THIRTY-NINE THOUSAND, ONE HUNDRED AND TWENTY-SIX DOLLARS AND TWENTY-NINE CENTS US ($12,039,126.29 USD) (the “Loral Payment”); (ii)  Loral Space shall pay to Telesat IOM    TWO HUNDRED AND EIGHTY THOUSAND, FIVE HUNDRED AND FORTY-THREE DOLLARS AND NINETY-EIGHT CENTS CANADIAN ($280,543.98 Cdn) with respect to a portion of the deposit paid by Barrett. The Loral Payment and the amount paid by Loral Space shall be made without reduction for any tax imposed by Canada, the United States

or the Isle of Man with respect to the transactions contemplated by this Agreement.

1.3           Notwithstanding anything in this Agreement to the contrary, Loral Space shall indemnify, hold harmless, and defend (at Telesat IOM’s request), Telesat IOM and its Affiliates from and against any and all liabilities, losses, costs, claims, damages, penalties and expenses, including reasonable out-of-pocket attorneys’ fees and disbursements, whether direct or indirect (collectively, “Losses”), suffered or incurred by Telesat IOM or its Affiliates relating to the Barrett Agreement assigned hereunder as a result of or arising directly or indirectly out of or in connection with any act or omission of Loral Space or

any other breach of any covenant or agreement set forth under the Barrett Agreement, where such act or omission or breach occurred prior to the Effective Date, unless such Losses arise directly or indirectly as a result of or in connection with Telesat IOM’s default, gross negligence or willful misconduct.

1.4           Telesat IOM shall indemnify, hold harmless, and defend (at Loral Space’s request), Loral Space and its Affiliates from and against any and all Losses suffered or incurred by Loral Space or its Affiliates relating to the Barrett Agreement assigned hereunder arising on or after the Effective Date, unless such Losses arise directly or indirectly as a result of or in connection with Loral Space’s default, gross negligence or willful misconduct.

 

1.5           For purposes of this Agreement, an “Affiliate” of Telesat IOM or Loral Space, as applicable, shall be defined as any individual, partnership, limited liability company, corporation, joint stock company, trust, unincorporated association, joint venture or other entity (i) directly or indirectly controlling (including all directors, officers, members and partners of such person or entity), controlled by, or under direct or indirect common control with, Telesat IOM or Loral Space, as applicable, or (ii) that directly or indirectly owns more than fifty percent (50%) of any class of voting or equity securities of Telesat IOM or Loral Space, as applicable.  “Control” shall mean the power, directly or indirectly,

to direct or cause the direction of the management and policies of another entity whether through the ownership of voting securities or voting interests, by contract or otherwise.

 

  

  

  

 

Barrett Assignment Agreement

Loral Space to Telesat IOM

March 1, 2011

Page 3 of 10

 

1.6           The indemnifying party shall have the right, upon written notice to the indemnified party, to investigate, contest, defend or settle any asserted liability that may result in a Loss with respect to which the indemnified party is entitled to indemnification pursuant to this Agreement, as the case may be, subject to a reservation of rights; provided that the indemnified party may, at its option and at its own expense, participate in the investigation, contesting, defense or settlement of any such asserted liability through representatives and counsel of its own choosing; and, provided further, that the indemnifying party shall not settle any asserted liability unless (i) such settlement is on exclusively monetary terms or (ii) the indemnified
party shall have consented to the terms of such settlement, which consent shall not unreasonably be withheld.  If requested by the indemnifying party, the indemnified party will, at the sole cost and expense of the indemnifying party, cooperate with the indemnifying party and its counsel in contesting any asserted liability or, if appropriate and related to the asserted liability in question, in making any counterclaim against the third party claimant, or any cross-complaint against any person (other than the indemnified party or its Affiliates).  Unless and until the indemnifying party elects to defend the asserted liability, the indemnified party shall have the right, at its option and at the indemnifying party’s expense, to do so in such manner as it deems appropriate; provided, however, that the indemnified party shall not settle, compromise or pay any asserted liability for which it seeks indemnification hereunder without the prior written consent of the

indemnifying party (which shall not be unreasonably withheld).

1.7           All transfer, documentary, sales, use, stamp, registration, goods and services, provincial sales, harmonized sales and other such taxes, and all conveyance fees, recording charges and other fees and charges (including any penalties and interest) incurred in connection with consummation of the transactions contemplated by this Agreement shall be paid by Telesat IOM when due, and Telesat IOM will, at its own expense, file all necessary tax returns and other documentation with respect to all such taxes, fees and charges, and, if required by applicable law, Loral Space will, and will cause its Affiliates to, join in the execution of any such tax return and other documentation.

1.8           Loral Space shall reimburse Telesat IOM THIRTEEN MILLION US DOLLARS ($13,000,000M USD) in the event that ViaSat Inc. terminates the Satellite Contract for default as contemplated by Article 6.A of the Agreement between Loral Space and Space Systems/Loral Inc. dated January 11, 2008 (“Loral Payload Agreement”) which will be assigned to Telesat IOM.

 

  

  

  

 

Barrett Assignment Agreement

Loral Space to Telesat IOM

March 1, 2011

Page 4 of 10

  

	
2.0

	
Supplemental Capacity Revenue Share

 

2.1           Notwithstanding anything in this Agreement to the contrary, Loral Space and Telesat IOM agree that, in the event that Telesat IOM obtains any Supplemental Capacity (as defined in the Barrett Agreement), Telesat IOM agrees to remit to Loral Space one-half of any revenue (“Supplemental Revenue”) actually received and earned by Telesat IOM in connection with leasing the Supplemental Capacity to its customers during the first four years after the service commencement date of the Supplemental Capacity (the “Supplemental Capacity Service Date”), after deducting (i) the

costs incurred by Telesat IOM to obtain the Supplemental Capacity, including, without limitation, the capital cost of and any tariffs, taxes, permits or licence fees for additional components, gateway equipment and consumer premises equipment specifically required to enable implementation of the Supplemental Capacity, and costs incurred to install such equipment (provided that if there is any incremental revenue associated with the consumer premises equipment, the cost of which is deducted pursuant to this section 2.1, such incremental revenue shall be included in Supplemental Revenue) and (ii) any reduction in revenue related to the Barrett Capacity (as defined in the Barrett Agreement) which results from the implementation of the Supplemental Capacity (collectively, the “Supplemental Capacity Costs”).  Within thirty (30) days after the end of each calendar quarter during the first four years after

the Supplemental Capacity Commencement Date, Telesat IOM shall send to Loral Space a report of such Supplemental Revenue, if any, received and earned by Telesat IOM for leasing the Supplemental Capacity in excess of the Supplemental Capacity Costs during that calendar quarter, and shall remit payment to Loral Space of its share of the Supplemental Revenue, by wire transfer or such other method as the Parties may agree.  If requested by Loral Space, Telesat IOM shall provide Loral Space with backup information and data to support the Supplemental Revenue and Supplemental Capacity Costs contained in its report.  Loral Space shall have the right to audit such report and backup information during regular business hours upon reasonable notice to Telesat IOM.

 

	
3.0

	
Representations and Warranties

 

3.1           Except as disclosed in Schedule 2 hereto (the “Disclosure Schedule”) delivered by Loral Space to Telesat IOM in connection with this Agreement, Loral Space represents and warrants to Telesat IOM as of the Effective Date as follows:

 

3.1.1           No Other Commitments.  Loral Space has not made any promises or commitments or incurred any liabilities or obligations with respect to the Barrett Agreement being assigned to Telesat IOM hereunder other than as set forth in the terms and conditions of such Barrett Agreement, nor has Loral Space waived or modified or agreed to waive or modify any terms of the Barrett Agreement.  Loral Space represents that no other commitments or promises have been made by Loral Space or its Affiliates with respect to the procurement, operation or sale of capacity on the ViaSat 1 satellite other than as set forth in the Barrett
Agreement, the Gateway Assignment Agreement and the Space Segment Assignment Agreement.

 

3.1.2           Authority. Loral Space has the requisite power and authority and has taken all action necessary in order to execute and deliver this Agreement, to perform all of its obligations hereunder, and to consummate the transactions contemplated by this Agreement.  The execution and delivery by Loral Space of this Agreement and the performance its obligations hereunder has been duly authorized by all necessary and proper corporate action.  This Agreement has been, and each other document to be delivered by Loral Space pursuant to this Agreement will be, duly executed and delivered by Loral Space and, assuming the due
authorization, execution and delivery hereof by Telesat IOM, this Agreement and each such other document shall constitute a legal, valid and binding obligation of Loral Space, enforceable against Loral Space in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency and other laws affecting the rights of creditors generally and the availability of equitable remedies.

 

3.1.3           Barrett Agreement.  So far as Loral Space is aware, the Barrett Agreement is legal, valid and binding, and in full force and effect, in accordance with its terms and Barrett has not cancelled or given written notice that it intends to cancel the Barrett Agreement.  Loral Space has performed, and as far as Loral Space is aware, Barrett has performed, in all material respects, its respective obligations under the Barrett Agreement.  No material default exists (or, but for the passage of time or the giving of notice, would exist) under the Barrett Agreement on the part of Loral or, so far as Loral is
aware, on the part of Barrett to said Loral Barrett Agreements.

 

  

  

  

 

Barrett Assignment Agreement

Loral Space to Telesat IOM

March 1, 2011

Page 5 of 10

   

3.1.4           No Conflicts; No Default.  The execution and delivery of this Agreement by Loral Space does not, and the performance by Loral Space of the obligations to be performed by Loral Space hereunder and the consummation by Loral Space of the transaction contemplated by this Agreement will not, constitute or result in (i) a breach or violation of, or a default under, the articles, by-laws or the comparable governing instruments of Loral Space; (ii) a material breach or violation of, a default under, the triggering of any payment or other material obligation pursuant to, the acceleration of (with or without the giving of notice or

the lapse of time) any provision of the Barrett Agreement, or create in any party the right to accelerate, terminate, modify or cancel, require any notice or give rise to a loss of any benefit under the Barrett Agreement; (iii) a material breach or violation of any law or regulation to which Loral Space is subject; (iv) any material and adverse change in the rights or obligations of Loral Space under the Barrett Agreement, or under any permit or license; or (v) the creation of any lien or encumbrance on, or the forfeiture of the Barrett Agreement.

 

3.1.5           Accuracy of Information.  Loral Space represents that the information, including without limitation the financial information relating to the Barrett Agreement is accurate and complete.  So far as Loral Space is aware, after due inquiry, no representation, warranty or statement made by Loral Space in this Agreement, or in any Schedule, statement or certificate furnished to Telesat IOM pursuant to this Agreement (including the Disclosure Schedule) contains any untrue statement of material fact, or omits as of the Effective Date to state a material fact necessary to make the representations, warranties or
statements contained herein or therein, not misleading.

 

3.1.6           Governmental Proceedings, Litigation, Laws and Licenses.  So far as Loral Space is aware, there is not in effect any judgment, ruling, order, writ, decree, stipulation or injunction by or with any governmental entity or agency to which Loral Space or any of its Affiliates is party to or by which Loral Space or any of its Affiliates or any properties or assets of any of the foregoing is bound and which relates to or affects the Barrett Agreement, or this Agreement or the transactions contemplated hereby.  Neither Loral Space or any of its Affiliates is party to, engaged in or, to the knowledge of any of them,
threatened with any legal action or proceeding, claim or complaint which relates to or affects the Barrett Agreement, this Agreement or the transactions contemplated hereby, and Loral Space does not have any knowledge of any event or condition which would reasonably be expected to result in any such legal action or proceeding or that would reasonably be expected to prevent, or to materially hinder, modify or delay, the transactions contemplated by this Agreement.  So far as Loral Space is aware, neither Loral Space nor any of its Affiliates is in default under or with respect to any judgment, ruling, order, writ, decree, stipulation or injunction of the type described in this Section 3.1.6 relating to this Agreement or the Barrett Agreement.

 

3.2           Notwithstanding anything in this Agreement to the contrary, Loral Space shall indemnify, hold harmless, and defend (at Telesat IOM’s request), Telesat IOM and its Affiliates from and against any and all Losses suffered or incurred by Telesat IOM or its Affiliates as a result of or arising directly or indirectly out of or in connection with any breach of the foregoing representations or warranties. In no event shall Loral Space’s liability for all Losses under this Agreement exceed the amount of SIXTY-ONE MILLION, TWO HUNDRED THOUSAND DOLLARS US ($61,200,000 USD) less any amounts paid to Telesat Canada or Telesat IOM pursuant to:  (i) this Agreement, or (ii) the Space
Segment Assignment Agreement or (iii) the Gateway Assignment Agreement, whether paid with respect to an indemnification obligation, direct damages or otherwise.

 

  

  

  

 

Barrett Assignment Agreement

Loral Space to Telesat IOM

March 1, 2011

Page 6 of 10

  

3.3          Telesat IOM represents and warrants to Loral Space as of the Effective Date as follows:

 

3.3.1           Authority.  Telesat IOM has the requisite power and authority and has taken all action necessary in order to execute and deliver this Agreement, to perform all of its obligations hereunder, and to consummate the transactions contemplated by this Agreement.  The execution and delivery by Telesat IOM of this Agreement has been duly authorized by all necessary and proper corporate action.  This Agreement has been, and each other document to be delivered by Telesat IOM pursuant to this Agreement will be, duly executed and delivered by Telesat IOM and, assuming the due authorization, execution and delivery hereof by Loral Space, this Agreement shall
constitute a legal, valid and binding obligation of Telesat IOM, enforceable against Telesat IOM in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency and other laws affecting the rights of creditors generally and the availability of equitable remedies.

 

3.3.2           No Conflicts; No Default.  The execution and delivery of this Agreement by Telesat IOM does not, and the performance by Telesat IOM of the obligations to be performed by it hereunder and the consummation by Telesat IOM of the transactions contemplated by this Agreement will not, constitute or result in (i) a breach or violation of, or a default under, the articles, by-laws or the comparable governing instruments of Telesat IOM; (ii) a material breach or violation of, a default under, the triggering of any payment or other material obligation pursuant to, the acceleration of (with or without the giving of notice or the lapse of time) any provision of any agreement to
which Telesat IOM is party or may be bound, or create in any party the right to accelerate, terminate, modify or cancel, require any notice or give rise to a loss of any benefit under any such agreement; or (iii) a material breach or violation of any law or regulation to which Telesat IOM is subject.

 

3.3.3           Governmental Proceedings, Litigation, Laws and Licenses.  So far as Telesat IOM  is aware, there is not in effect any judgment, ruling, order, writ, decree, stipulation or injunction by or with any governmental entity or agency to which Telesat IOM or any of its Affiliates is party to or by which Telesat IOM or any of its Affiliates or any properties or assets of any of the foregoing is bound and which relates to or affects the Barrett Agreement, or this Agreement or the transactions contemplated hereby.  Neither Telesat IOM nor any of its Affiliates is party to, engaged in or, to the knowledge of any

of them, threatened with any legal action or proceeding, claim or complaint which relates to or affects the Barrett Agreement, this Agreement or the transactions contemplated hereby, and Telesat IOM has no knowledge of any event or condition which would reasonably be expected to result in any such legal action or proceeding or that would reasonably be expected to prevent, or to materially hinder, modify or delay, the transactions contemplated by this Agreement.  So far as Telesat IOM is aware, neither Telesat IOM nor any of their Affiliates is in default under or with respect to any judgment, ruling, order, writ, decree, stipulation or injunction of the type described in this Section 3.3.3 relating to this Agreement or the Barrett Agreement.

 

  

  

  

 

Barrett Assignment Agreement

Loral Space to Telesat IOM

March 1, 2011

Page 7 of 10

  

3.4          Notwithstanding anything in this Agreement to the contrary, Telesat IOM shall indemnify, hold harmless, and defend (at Loral Space’s request), Loral Space and its Affiliates from and against any and all Losses suffered or incurred by Loral Space or its Affiliates as a result of or arising directly or indirectly out of or in connection with any breach of the foregoing representations or warranties.

 

	
4.0

	
Miscellaneous

 

4.1          Governing Law.  This Agreement shall be governed by and construed under the laws of the province of Ontario, Canada, without giving effect to its conflict of law principles, and the laws of Canada applicable therein.

 

4.2          Further Assurances. Each Party to this Agreement covenants and agrees that, from time to time after the date hereof, it will execute and deliver all such documents, including all such additional conveyances, transfers, consents and other assurances, and do all such other acts and things as the other Party hereto, acting reasonably, may from time to time request be executed or done in order to better evidence or perfect or effectuate any provision of this Agreement or any of the respective obligations intended to be created hereby or thereby.  Loral Space hereby
constitutes and appoints, effective as of the Effective Date, Telesat IOM and its successors and assigns as the true and lawful attorney of Loral Space with full power of substitution in the name of Telesat IOM or in the name of Loral Space but for the benefit of Telesat IOM (a) to collect for the account of Telesat IOM all amounts due or accounts receivable under the Barrett Agreement and (b) to institute and prosecute all proceedings which Telesat IOM may in its discretion deem proper in order to collect such amounts or accounts receivable or to assert or enforce any right, title or interest in, to or under the Barrett Agreement and to defend or compromise any and all actions, suits or proceedings in respect of the Barrett Agreement.  Telesat IOM shall be entitled to retain for its own account any amounts collected pursuant to the foregoing powers, including any amounts payable as interest in respect thereof.

 

4.3          Notices.  All notices hereunder shall be made by written notification, by hand, mail, recognized courier service, or electronic mail transmission, and to the address(es) set forth below and shall be deemed to be received upon actual delivery by a recognized courier service or personal delivery or upon confirmation of a facsimile or electronic mail transmission:

 

If to Loral Space, to:

 

Loral Space & Communications Inc.

600 Third Avenue

New York, New York 10016

Phone:  212-697-1105

Facsimile: 212-338-5320

Attention: Senior Vice President, General Counsel and Secretary

 

If to Telesat IOM, to:

 

1601 Telesat Court

Ottawa, Ontario K1B 5P4

Phone:  613-748-8797

Facsimile:  613-748-8712

Attention:  Vice President, Law

  

  

  

 

Barrett Assignment Agreement

Loral Space to Telesat IOM

March 1, 2011

Page 8 of 10

  

Either Party may by notice in accordance with this Section change the person or address to which such notices, requests or other communications are to be given.

 

4.4            Non-Waiver; Cumulative Remedies.  No failure to exercise and no delay in exercising, on the part of either Party, any right, remedy, power, or privilege under this Agreement shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power, or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power, or privilege.  The rights, remedies, powers, and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers, and privileges provided by law.

 

4.5           Succession.  This Agreement shall inure to the benefit of and be binding upon the respective successors and permitted assigns of the Parties hereto.

 

4.6           Headings.  The headings used throughout this Agreement are for convenience only, are not a part of this Agreement, and shall have no effect upon the construction and/or interpretation of this Agreement.

4.7           Counterparts.  This Agreement may be executed in two or more identical counterparts, each of which shall constitute an original, binding version of this Agreement, and all such counterparts shall constitute but one and the same agreement.  The signature of each Party shall appear on each counterpart.  Facsimile signatures shall be considered valid.

 

4.8           Severability.  Any provision of this Agreement found to be unenforceable or invalid by a court of competent jurisdiction shall in no way affect the validity or enforceability of any other provision except that if such invalid or unenforceable provision provided a material benefit to a Party hereto, such Party shall have the right to terminate the Agreement without liability to the other.

 

4.9           Third Party Beneficiary/Independent Contractor.  Nothing in this Agreement shall be deemed or construed by either Party, or by any third party, to create any rights, obligations, or interests in any third party, or to create any association, partnership, joint venture, principal/agent relationship, employer/employee relationship, or any fiduciary relationship of any kind between the Parties.

 

4.10         Amendment.  This Agreement may not be amended or terminated, and no provision hereof may be waived, except by a writing signed by each of the Parties hereto.

 

  

  

  

 

Barrett Assignment Agreement

Loral Space to Telesat IOM

March 1, 2011

Page 9 of 10

  

4.11         Effective Date. The Effective Date shall be the later of (a) the date of execution of this Agreement, (b) the date that the Space Segment Assignment Agreement becomes effective and (c) the date on which the notice of the assignment and assumption provisions in article 8.4 of the Barrett Agreement have been satisfied.

 

4.12         Entire Agreement.  This Agreement, along with the Schedules hereto, constitutes the entire agreement between Loral Space and Telesat IOM relative to the subject matter of this Agreement, and this Agreement may be altered, amended, or revoked only by an instrument in writing signed by Loral Space and Telesat IOM.  Loral Space and Telesat IOM agree that any prior or contemporaneous oral and written agreements between and among themselves and their agents and representatives relative to the subject of this Agreement are superseded and replaced by this Agreement.

 

[Remainder of page left intentionally blank]

 

  

  

  

 

Barrett Assignment Agreement

Loral Space to Telesat IOM

March 1, 2011

Page 10 of 10

  

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

 

	
LORAL SPACE & COMMUNICATIONS INC.

	  
	
By:

	    /s/ Avi Katz
	  	
Name:  Avi Katz

	  	
Title:    Senior Vice President, General Counsel and Secretary

	  
	
TELESAT IOM LIMITED

	  
	
By:

	    /s/ Christopher DiFrancesco
	  	
Name:  Christopher DiFrancesco

	  	
Title:    DirectorUnassociated Document

 

Exhibit 10.23

 

Daleco Resources Corporation

	
17 Wilmont Mews, 5th Floor

	
Office: 610.429.0181

	
West Chester, PA 19382

	
Fax: 610.429.0818

	
gnovinskie@da1ecoresources.com

	
Cell: 614.270.0482

 

 

February 25, 2011

 

 

	
The Musser Group

	
LLC           By Fax: (610) 975 975-4911

	
435 Devon Park Drive

	
Bldg. 500

	
Wayne

	
PA 19087-1935

 

	
Attention:

	
Warren V. "Pete" Musser

	
Howard E. Lubert

	 	
Thomas R. Smith

	
Michael M. Carter

 

	
Re:

	
Consulting Services Agreement between The Musser Group LLC and Daleco Resources Corporation

 

Gentlemen:

 

This proposed letter-form Consulting Services Agreement (this "Agreement") is in response to the proposal previously submitted to Daleco Resources Corporation ("Daleco") by HTP Partners. However, Daleco understands that Warren V. "Pete" Musser, Howard E. Lubert, Thomas R. Smith, Michael M. Carter, and such other individuals and firms retained and/or employed by The Musser Group LLC ("Musser Group"), shall provide the consulting services contemplated by this Agreement to be performed by the Musser Group for the benefit of Daleco.

 

From and after the date of execution of this Agreement by Daleco and The Musser Group LCC ("Effective Date"), the following shall constitute a formal agreement between our organizations:

 

1.      Parties. Musser Group shall provide the consulting services to and for the benefit of Daleco.

 

2.      Nature of the Business Relationship. Musser Group shall be independent contractors to Daleco providing advisory and consulting services to Daleco. Under no circumstances shall the business relationship be deemed to be a partnership or joint venture, and neither Musser Group nor Daleco shall represent to any other person that the business relationship is other than an independent contractor relationship.

 

3.      Background Matters.

 

3.1 Daleco's Natural Resources. Daleco, directly or through one or more wholly-owned subsidiaries, has a number of natural resources, including without limitation a number of oil and gas properties ("Daleco's Oil and Gas Interests"), unpatented mining claims covering a substantial kaolin deposit (known within Daleco as the "Sierra Kaolin" property in Sierra County, New Mexico), and a leasehold interest in a substantial zeolite deposit nears Marfa, Texas and mining claims near Three Creek, Utah ("Daleco Zeolite") (collectively "Daleco's Minerals").

 

  

  

  

 

The Musser Group, LLC February 25, 2011

Page 2

Re:           Consulting Services Agreement between The Musser Group LLC and Daleco Resources Corporation

 

 

3.2 Daleco's Intellectual Property. Daleco, directly or through one or more wholly-owned subsidiaries and/or through various licensing arrangements, has intellectual property rights ("Daleco's Intellectual Property Rights") which, as applied to Daleco's Minerals, may make Daleco's Minerals unique in the industrial minerals marketplace and may create additional value to Daleco's Minerals.

 

Daleco's Minerals and Daleco's Intellectual Property Rights are sometimes referred to collectively as "Daleco's Resources".

 

3.3 Musser Group's Strengths and Capacities. Musser Group has extensive entrepreneurial and new emerging growth expertise and experience. Musser Group has strong relationships with venture capital and investment banking communities. Musser Group employs its bottom-line business-centric business acceleration methodologies to provide sound, appropriate business services targeted to generate results for Daleco within reasonable time frames. Under this Agreement, Musser Group shall:

 

	
  

	
·

	
Provide to Daleco a full range of strategic managed services which are defined in this Agreement and which will be refined by Musser Group and Daleco over time as Daleco's needs and opportunities are more fully determined;

 

	
  

	
·

	
Provide Daleco venture funding sourcing, strategic business planning and implementation, and other professional services that will meet Daleco's requirements; and

 

	
  

	
·

	
Employ hands-on consultancy services and will either direct or help execute the implementation of each of the strategies it recommends to Daleco

 

3.4 Musser Group's Team. Under this Agreement, Musser Group shall perform its services to and for the benefit of Daleco with its staff of seasoned business consultants with exceptional business and marketing skills as well as deep technical capabilities and expertise. Brief biographical sketches of some of the Musser Group team project leaders follows:

 

	
  

	
·

	
Mr. Warren V. "Pete" Musser, - Mr. Musser is a Co-Founder and President and Chief Executive officer of The Musser Group. A veteran of the technology and financial industries, Pete has been a leading figure in the business world as both an entrepreneur and a chief executive for more than 50 years. Pete is perhaps best known for his role as Founder and Chairman of Safeguard Scientifics, Inc. As the Chairman of the Board and Chief Executive Officer from 1953 until 2001, he facilitated the formation and success of many of today's top Fortune companies, including QVC, Comcast, Novell, and more. Today, Pete continues to serve as Chairman Emeritus of Safeguard, and brings his 50+ years of venture and private equity expertise to The Musser Group where he specializes in advising companies on strategic venture positioning. Mr. Musser shall lead the funding initiatives for this engagement.

 

	
  

	
·

	
Mr. Howard E. Lubert - Mr. Lubert brings more than 25 years of experience in the design, configuration, implementation and integration of complex IT systems into corporate business environments. At Deloitte and Touche, Mr. Lubert was instrumental in the creation of the eBusiness consulting service line for the firm and led teams in various Inter/Intranet technology engagements. He has 20+ years of venture and private equity related technical due diligence experience with Safeguard Scientifics and other VC and Angel Investment related funds. Mr. Lubert has developed channel sales and marketing programs for many high tech firms including Novell and IBM and served as the Chairman of an international trade association for the networking technology industry. Mr. Lubert shall serve as an analyst for this project.

 

	
  

	
·

	
Mr. Tom R. Smith - Mr. Smith brings more than 30 years of experience advising small to large corporations on business development and corporate management. Mr. Smith has worked on Wall Street with Morgan Stanley on the sell side, as well as buy-side asset management with Turner Investment Partners, Pilgrim Baxter, etc. Mr. Smith has an extensive finance and equity oriented background with direct experience with helping under­performing public and private companies enhance their shareholder value. Mr. Smith shall serve as the "Partner in Charge" of this engagement, lead analyst, and business development consultant for Daleco. Mr. Smith shall be the primary contact person with Daleco during this engagement.

 

	
  

	
·

	
Michael M. Carter – Mr. Carter is Managing Director of The Musser Group, where he works with entrepreneurs to help finance, structure, and build growth companies. Mike is a former software and IT Services entrepreneur and executive. Mike is founder and former CEO of Dashboard Systems, sold to Cisco Systems funded CXO Systems Carter was Chief Marketing and Business Development Officer for US Interactive and helped take the company public as the youngest Executive Officer of any Safeguard Scientifics funded public company. Carter began his career in client-server technology with Cambridge Technology Partners working in a variety of leadership roles in consulting, business development, and marketing.

 

  

  

  

 

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3.5 Overall Purpose and Goal of Relationship between Daleco and Musser Group. The overall purpose and goal of the relationship between Daleco and Musser Group contemplated by this Agreement is to enhance the overall value of Daleco for the benefit of Daleco's shareholders.

 

4.      Roles and Responsibilities.

 

4.1 Musser Group's Roles and Responsibilities. In performing its consulting services to and for the benefit of Daleco under this Agreement, Musser Group shall have the following roles and responsibilities and shall have the duty to perform all of the following:

 

4.1.1 Within 60 days. Within sixty days after the Effective Date of this Agreement, Musser Group shall:

 

4.1.1.1 Prepare a proposed timeline of Musser Group's contemplated operations and activities under this Agreement, including without limitation Musser Group's contemplated operations and activities relative to Daleco's Resources, Daleco's marketing efforts, Daleco's management, and Daleco's possible equity enhancement initiatives;

 

4.1.1.2 Deliver to Daleco the proposed timeline of Musser Group's contemplated operations and activities under this Agreement prepared by Musser Group pursuant to Item 4.1.1.1 above;

 

4.1.1.3 Analyze the existing markets and related opportunities for Daleco's Resources;

 

4.1.1.4 Deliver to Daleco a report of the analysis of the existing markets and related

opportunities for Daleco's Resources performed by Musser Group pursuant to Item 4.1.1.3 above;

 

4.1.1.5 Identify, analyze, and validate new market opportunities and product pricing strategies for Daleco's Resources;

 

4.1.1.6 Deliver to Daleco a report of the identification, analysis, and validation of new market opportunities and product pricing strategies in terms of economic and practical viability for Daleco's Resources performed by Musser Group pursuant to Item 4.1.1.5 above;

 

4.1.2 Within 120 days. Within one hundred twenty days after the Effective Date of this Agreement, Musser Group shall:

 

  

  

  

 

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4.1.2.1 Develop a complete program overview for each new market opportunity for Daleco's Resources Musser Group identifies, analyzes, and validates pursuant to Item 4.1.1.5 above;

 

4.1.2.2 Deliver to Daleco a report setting forth the details of each of the programs developed by Musser Group pursuant to Item 4.1.2.1 above;

 

4.1.3 Within 180 Days. Within one hundred eighty days after the Effective Date of this Agreement, Musser Group shall:

 

4.1.3.1 Utilize Musser Group's existing business relationships and extraordinary "RoladexTM" to expose Daleco's Resources to likely strategic partners who might directly or indirectly allow Daleco to get Daleco's Resources into appropriate markets;

 

4.1.3.2 Deliver to Daleco a report setting forth the details of the efforts and results of Musser Group's operations pursuant to Item 4.1.3.1 above;

 

4.1.4 Not later than December 31, 2011. Not later than December 31, 2011, Musser Group shall:

 

4.1.4.1 Develop equity enhancement programs for Daleco;

 

4.1.4.2 Deliver to Daleco a report setting forth the details of the equity enhancement programs for Daleco developed by Musser Group pursuant to Item 4.1.4.1 above;

 

4.1.4.3 Commence efforts to work with Daleco management to implement the equity enhancement programs for Daleco developed by Musser Group pursuant to Item 4.1.4.1 above;

 

4.1.4.4 Identify and validate in terms of economic and practical viability potential merger and acquisition ("M&A”) opportunities for Daleco;

 

4.1.4.5 Deliver to Daleco a report setting forth the details of the identification and validation of potential M&A opportunities for Daleco performed by Musser Group pursuant to Item 4.1.4.4 above;

 

4.1.5 On ongoing basis. On an ongoing basis during the term of this Agreement, Musser Group shall:

 

4.1.5.1 Support Daleco's sales and marketing efforts in new initiatives by participating in sales efforts at the appropriate shows, conferences, as well as with individual opportunities;

 

4.1.5.2 Recommend to Daleco various programs and initiatives which Musser Group determines to be in the best interests of Daleco;

 

4.1.5.3 Deliver to Daleco each month a report setting forth descriptions and, where appropriate, the details of the various programs and initiatives which Musser Group determines to be in the best interests of Daleco pursuant to Item 4.1.5.2 above;

 

4.1.5.4 Deliver to Daleco, in advance of any commitment of Daleco financial liability, probable, good faith estimates/budgets of costs for the implementation of the programs and initiatives which Musser Group recommends pursuant to Item 4.1.5.2 above;

 

4.1.5.5 Communicate with Daleco in an effective, respectful, and timely manner;

 

  

  

  

 

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4.1.5.6 Remain fully engaged in the processes and services contemplated by this Agreement during the entire term of the engagement and cooperate with Daleco to the best of Musser Group's abilities;

 

4.1.5.7 Deliver to Daleco each quarter a report setting forth the operations and activities of Musser Group under this Agreement.

 

In performing its consulting services to and for the benefit of Daleco under this Agreement, Musser Group shall perform its roles and responsibilities in a diligent and timely manner and on a GOOD FAITH REASONABLE BEST EFFORTS basis.

 

Musser Group's job is NOT to make any decisions for Daleco. Musser Group shall help Daleco make its own decisions and shall help Daleco find the people and firms who may be able to help Daleco generate substantial positive economic results within reasonable time frames. Musser Group is NOT guaranteeing the success of Daleco's business. The Musser Group acknowledges that Daleco's Board of Directors (and, where appropriate, Daleco's shareholders) shall be responsible for all of Daleco's decisions to adopt and implement any new programs and initiatives recommended by Musser Group.

 

4.2 Daleco's Roles and Responsibilities. In working with Musser Group with regard to Musser Group's consulting services under this Agreement, Daleco shall have the following roles and responsibilities:

 

4.2.1 Pay the Musser Group in a timely manner the compensation and other reimbursements contemplated by this Agreement;

 

4.2.2 Acting in a diligent and timely manner to make all necessary and appropriate decisions relevant to the operation of Daleco's business and regarding the, review, and if appropriate, the adoption and implementation of any new programs and initiatives recommended by Musser Group;

 

4.2.3 Communicate with Musser Group in an effective, respectful, and timely manner;

 

4.2.4 To remain fully engaged in the processes and services contemplated by this Agreement during the entire term of the engagement and to cooperate with Musser Group to the best of Daleco's abilities.

 

5.      Project Timing and Level of Effort.

 

5.1 Upon the Effective Date of this Agreement, Musser Group anticipates that the initial components of this engagement as set forth in Paragraph 4.1 above. This agreement shall terminated on February 28, 2013 unless extend by the mutual agreement of the parties hereto. The availability of Daleco staff for information, review, implementation, and decision-making may also affect the project timing. This engagement is subject to extension based on Daleco's approval and notification no less than 30 days prior to the projected completion date of the initial engagement phase.

 

5.3 Musser Group anticipates that its team members will devote a combined total of 40 to 80 hours per month during the initial phase of this engagement.

 

6.      Professional Fees, Expense Reimbursements, and Other Money Matters.

 

6.1 Initial S-8 Shares. Subject to the provisions of this Agreement, as soon as practicable after the execution of this Agreement by Daleco and Musser Group, Daleco shall deliver to Musser Group a total of Two Million Four Hundred Thousand (2,400,000) shares of Daleco's common capital stock (trading Symbol: DLOV) ("Initial S-8 Shares"). Such Initial S-8 Shares shall be S-8, freely trading, shares.

 

  

  

  

 

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6.2 Warrants. Subject to the provisions of this Agreement, as soon as practicable after the execution of this Agreement by Daleco and Musser Group, Daleco shall deliver to Musser Group warrants for the purchase from Daleco of Two Million Five Hundred Thousand (2,500,000) shares of Daleco's common capital stock (trading Symbol: DLOV) ("Warrants"). Upon exercise of the Warrants, the shares shall be deemed to be Section 144 shares and shall bear a restrictive legend providing:

 

THIS WARRANT AND THE COMMON STOCK OBTAINABLE UPON ITS EXERCISE HAVE NOT BEEN REGISTERED WITH THE U.S. SECURITIES AND EXCHANGE COMMISSION UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE "ACT") OR ANY OTHER SECURITIES AUTHORITIES. THEY ARE BEING OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE ACT. THEY MAY NOT BE SOLD OR TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR AN EXEMPTION TO THE REGISTRATION REQUIREMENTS OF THOSE SECURITIES LAWS.

 

The exercise price for such Warrants shall be the average price of Daleco's common stock for the five trading days beginning February 19, 2011, and ending February 24, 2011 ($0.15 per share).

 

Notwithstanding the foregoing, none of the Warrants may be exercised by Musser Group (or by any other "Holder" of the Warrants) unless and until the average price of Daleco's common stock for a period of thirty consecutive trading days exceeds One Dollar (US$1.00) ("Vesting Condition"). Each Musser Group shall have an affirmative duty to require each Holder of any of the Warrants, including without limitation each subsequent Holder of any of the Warrants, to execute an acknowledgment that such Holders understand and accept the Vesting Condition and that they shall be bound by the terms of this Agreement as this Agreement relates to the Warrants. For the purpose of this Paragraph 6.2, the term "Holder" shall have the same meaning as such term is defined in the Warrants.

 

For the purpose of this Paragraph 6.2, the term "average price of Daleco's common stock" shall mean the arithmetic mean of the closing "bid" and "asked" prices for the respective trading days as such prices are/were published by the relevant market reporting services.

 

6.3 Reimbursement of Musser Group Expenses. Subject to the provisions of this Agreement, on a monthly basis during the term of this Agreement, Musser Group shall invoice Daleco for:

 

6.3.1 Musser Group's reasonable and necessary out-of-pocket expenses incurred in the performance of its duties under this Agreement;

 

6.3.2 Other Daleco pre-approved expenses related to this Agreement.

 

Daleco shall pay such reimbursement invoices within 10 days after presentation. The Musser Group agrees that Daleco shall have no responsibility for payment of any "out of pocket expenses" or other expenses unless same are authorized or pre-approved by Daleco.

 

7.      No Take-Over Attempts. Without the prior express written consent of Daleco's Board of Directors, neither Musser Group as a whole nor any member of the Musser Group team shall attempt to take-over Daleco or cooperate with any other person or entity in any attempt to take-over Daleco.

 

8.      Termination of Agreement.

 

8.1 By Daleco. Daleco may terminate this Agreement and the consultancy relationship with Musser Group:

 

8.1.1 With Cause. With good cause at any time after the Effective Date (but before the occurrence of the Vesting Condition; provided, however, that Daleco gives Musser Group written notice of (i) Daleco's determination of good cause for termination, i.e. notice of Musser Group's default under this Agreement, (ii) demand for Musser Group's cure of such default within 30 days after the date of the notice, and (iii) Daleco's intention to terminate this Agreement if Musser Group does not timely cure the default. In the event that Daleco timely The exercises its right to terminate this Agreement with good cause, Musser Group shall return to Daleco seventy-five percent (75.0%) of the Initial S-8 Shares and all of the Warrants.

 

  

  

  

 

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8.2 By Musser Group. Musser Group may terminate this Agreement and the consultancy relationship with Daleco:

 

8.2.1 With Cause. With good cause at any time after the Effective Date (but before the occurrence of the Vesting Condition; provided, however, that Musser Group gives Daleco written notice of (i) Musser Group's determination of good cause for termination, i.e., notice of Daleco's default under this Agreement, (ii)

demand for Daleco's cure of such default within 30 days after the date of the notice, and (iii) Musser Group's intention to terminate this Agreement if Daleco does not timely cure the default. In the event that Musser Group timely exercises its right to terminate this Agreement with good cause, Musser Group shall be entitled to retain all of the Initial S-8 Shares and all of the Warrants.

 

8.3 Definition of "Good Cause". For the purposes of this Paragraph 8, "good cause" shall mean:

 

8.3.1 Gross negligence by the alleged defaulting party in the conduct of its operations and activities and/or other duties and/or responsibilities under this Agreement;

 

8.3.2 Willful misconduct by the alleged defaulting party in the conduct of its operations and activities and/or other duties and/or responsibilities under this Agreement;

 

8.3.3 Material breach by the alleged defaulting party in the conduct of its operations and activities and/or other duties and/or responsibilities under this Agreement;

 

8.3.4 Material failure by the alleged defaulting party to perform any of its duties and/or responsibilities under this Agreement.

 

9.      Dispute Resolution. In the event of any dispute between the parties, the parties shall resolve such disputes as follows:

 

9.1 Oral Discussion. The parties shall first attempt to settle every dispute between the parties and arising under this Agreement by oral discussion between the parties.

 

9.2 Written Proposals. If the parties are unable to resolve the dispute through oral discussion, the party who desires a change from the status quo ("Claimant") shall give the other party ("Respondent") a written request for the proposed change and a concise written statement of the reasons for such proposed change. The Claimant's request and supporting statement shall provide enough information so that the Respondent may reasonably investigate the facts and circumstances asserted as the basis for the proposed change. The Respondent shall investigate the asserted facts and circumstances and, within ten (10) days after such receipt, shall respond in writing with an acceptance, rejection, or counter-proposal to the requested change.

 

9.3 Mediation. If the parties cannot resolve their dispute within ten (10) days after the exchange of their written proposals, any party may require the other party to submit the dispute to non-binding mediation utilizing the services of an impartial professional mediator approved by all parties. Any party may give notice to the other party requesting such mediation. If practicable, such mediation shall occur within thirty (30) days after the notice of request for mediation.

 

  

  

  

 

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9.4 Arbitration.  If the parties cannot resolve their dispute within ten (10) days after commencement of their mediation, any party may give notice to the other party demanding resolution of the dispute by arbitration. Thereafter, the parties shall submit the matter to binding arbitration in Philadelphia, Pennsylvania, unless the parties agree to another location reasonably convenient to all parties. The arbitration shall be conducted on a confidential basis pursuant to rules agreed upon by the parties within thirty (30) days after the initial demand for arbitration; provided, however, if the parties are unable to agree upon the rules of such arbitration, the Commercial Arbitration Rules of the American Arbitration Association shall apply.
Every decision or award as a result of such arbitration shall include the assessment of costs, expenses, and reasonable attorney's fees and shall include a written record of the proceedings (unless the requirement for such written record is unanimously waived) and a written determination of the arbitrator(s). Absent an agreement to the contrary, an arbitrator experienced in consulting relationships, intellectual property, and, preferably, corporate financial and marketing matters shall conduct any such arbitration. Each party reserves the right to object to any individual who owns or is employed by or affiliated with a competing organization or entity. An award of arbitration shall be final and binding on the parties and may be enforced by any court of competent jurisdiction.

 

10.    NOTICES. Every notice may be or is required to be given under this Agreement shall be in writing and shall be deemed properly made if hand delivered, or upon receipt if deposited in the United States mail, postage prepaid, certified mail return receipt requested, or by a reputable overnight courier. Notice may also be sent by electronic mail or facsimile transmission but only if the original "hard copy" of such electronic mail or facsimile transmission is delivered to the addressee by 5:00 P.M. eastern time the next business day following the date of the electronic mail or facsimile transmission.

 

10.1 Notices to Daleco. Any notice to Daleco shall be sent to Daleco at the following address/fax number/email address, or to such other address/fax number/email address as Daleco may hereafter designate:

 

	  	DALECO RESOURCES CORPORATION
	  	
Address:

	
17 Wilmont Mews, 5th Floor

	  	  	
West Chester, PA 19382

	  	
Fax Number:

	
610.429.0818

	  	
Email Address

	
gnovinskie@dalecoresources.com

10.2 Notices to Musser Group. Any notice to Musser Group shall be sent to Musser Group at the following address/fax number/email address, or to such other address/fax number/email address as Musser Group may hereafter designate:

 

	  	THE MUSSER GROUP LLC
	  	
Address:

	
435 Devon Park Drive, Bldg. 500 

	  	  	

Wayne, PA 19087-1935

	  	
Fax Number:

	

610.975.4911

	  	
Email Address

	

pmusser@themussergroup.com

 

11.    MISCELLANEOUS PROVISIONS.

 

11.1 Entire Agreement. Except as specifically provided herein, this Agreement constitutes the entire and sole agreement between the parties with regard to the subject matter of this Agreement. This Agreement cannot be modified, changed or amended except by a writing signed by a duly authorized representative of each of the Parties.

 

11.2 Binding. This Agreement shall inure to the benefit of and be binding upon the parties and all of the representatives, assignees, and successors-in-interest of the parties.

 

11.3 Invalidity and Severability. If any term, provision, condition, or covenant of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable, such term, provision, condition, or covenant shall be deemed modified to the extent necessary and possible to render it valid and enforceable. In any event, the invalidity or unenforceability of any term, provision, condition, or covenant shall not affect any other term, provision, condition, or covenant of this Agreement, and this Agreement shall continue in full force and effect, and be construed and enforced, as if such term, provision, condition, or covenant had not been included, or had been
modified as above provided, as the case may be.

 

  

  

  

 

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11.4 Time Is of the Essence. Time is of the essence as to all matters set forth in this Agreement. The failure of any party hereto to perform any obligation by the date or within the time period set forth in this Agreement shall constitute a material and substantial breach of this Agreement.

 

11.5 Confidentiality and Non-Disclosure Agreements. The parties shall execute comprehensive, mutual Confidentiality and Non-Disclosure Agreements ("NDAs") in such form as their respective counsel shall direct. Such NDAs shall be binding on the respective parties and on each of their respective officers, members, managers, directors, employees, agents, and representatives.

 

11.6 Impossibility to Perform. In the event that either party is unable to perform any of such party's duties by reason of the illness or incapacity of any of its key employees or because of any other reason not the result of its own behavior, or if the performance of such party's duties is prevented, delayed, or rendered impossible or infeasible because of any regulation of any public authority or because of any strike or other labor difficulty, fire, flood, other act of God, civil tumult or other emergency, or because of any other matter outside of such party's reasonable control, neither party shall have any claim for damages or other remedy against the other party and each
party's obligations as to such matter shall be deemed waived.

 

11.7 Captions. Paragraph headings or captions have been inserted for convenience only and shall in no way restrict or otherwise modify the terms and conditions of this Agreement.

 

11.8 Governing Law and Jurisdiction. This Agreement shall be governed in accordance with the laws of the Commonwealth of Pennsylvania, without giving effect to conflicts of laws provisions. The parties consent to the exclusive jurisdiction and venue of the federal and state courts located in Chester County, Pennsylvania, in any action arising out of or relating to this Agreement. The parties waive any other venue to which either party might otherwise be entitled by domicile or otherwise. This paragraph shall not be construed to limit in any way the provisions of Paragraph 9 above relating to arbitration.

 

11.9 Daleco's Acceptance Conditional upon Approval of Daleco's Board of Directors. Despite the approval and acceptance of this Agreement by Daleco's President, Gary J. Novinskie, Daleco shall not be deemed to have approved and accepted this Agreement as binding upon Daleco until this Agreement has been approved and accepted by Daleco's Board of Directors.

 

	APPROVED AND ACCEPTED: Feb. 25, 2011	 	APPROVED AND ACCEPTED: Feb. 25, 2011	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	THE MUSSER GROUP LLC	 	DALECO RESOURCES CORPORATION	 
	 	 	 	 	 	 
	BY	
/s/ Warren V. Pete Musser 

	 	BY	
/s/ Gary J. Novinskie

	 
	 	
Warren V. "Pete" Musser,  

	 	 	
Gary J. Novinskie,

	 
	 	
President & Chief Executive Officer      

	 	 	
President

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