Document:

Exhibit 10.18

 

INDEPENDENT CONTRACTOR AGREEMENT

 

This Independent
Contractor Agreement (this “Agreement”)  is entered into as of October 30, 2006
between Daniel H. Smith an independent contractor (“Consultant”),  and DeMarseCo Holdings, Inc. (“Company”).

 

WHEREAS, the company
desires to retain the Consultant as an independent contractor to perform
various services (“Services”)  in
connection with the Company’s products and services.

 

NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, it is
agreed as follows:

 

1.         Independent Consulting Services. The Company appoints and the Consultant
accepts appointment under the terms of this Agreement. The Services to be
performed by the Consultant consist of the development of strategic vision and
initiatives in support of the Company’s products and services and other
services as requested from time
to time by the Company. As reasonably requested by the Company, the Consultant
will submit progress reports to the Company.

 

2.         Consulting Fees: Payments. The Company will pay Consultant the fees set
forth in Schedule A as full compensation for Services rendered. The Company will be required to reimburse the
consultant for pre-approved travel and expenses incurred by the Consultant.

 

3.         Termination. Either party may terminate this agreement at any time by written
notice to the other. If either party terminates the agreement, the Company’s obligation will be limited to payment to
Consultant for Services performed through the date of termination at the rate
set forth in Schedule A.

 

4.         Term. This Agreement is effective as of the date set forth above and shall
terminate upon written notice by either party. Sections 5, 8 and 10
shall survive termination of this Agreement.

 

5.         Confidentiality: Ownership.

 

(a)      In order to allow the
Consultant to perform the services, the Company or its affiliates, directors,
officers, employees, agents or controlling person (collectively, “Representatives”)  may provide the Consultant with certain
information related to the Company’s products, services, research, development,
marketing and selling, business plans, budgets and unpublished financial
statements, licenses, prices and costs, suppliers, customer lists and
customers, substantial portions of which will be non-public, confidential and
/or proprietary in nature. All such information, whether written or oral and
whether furnished before or after the date hereof, together with all documents
an other materials prepared by the consultant which are based on or contain or
otherwise related to such information are collectively referred to as the “Company Information.”  The term “person” shall be
broadly interpreted to include, without limitation, any governmental entity,
corporation, partnership, company or individual. The Consultant agrees to (i)
use the Company Information only for the purpose of performing the Services;
(ii) hold all Company Information in strict confidence and use all reasonable
care to maintain the confidentiality of all Company Information and (iii) not
disclose Company Information to any person; provided, however, that the
foregoing obligations regarding confidentiality shall not apply to any Company
Information that (i) is or becomes generally available to or known by the
public other than as a result of a disclosure made by the Consultant or (ii) is
or was disclosed to the Consultant on a non-confidential basis from a source
other than the Company (or its predecessors) provided that the Consultant is
not aware that such source is or was then bound by a confidentiality agreement
with the Company or otherwise prohibited from transmitting the information to
the Consultant.

 

 

Further,
Consultant assigns to the Company any rights Consultant may have or acquire in
any Company Information and recognizes that all Company Information shall be
the sole property of the Company and its assigns and that the Company and its
assigns shall be the sole owner of all patent rights, copyrights, trade secret
rights, and all other rights throughout the world.

 

(b)      The
Consultant acknowledges that the Company could not be made whole by monetary
damages of a breach of this Section 5. Accordingly, the Company, in
addition to any other remedy to which it may be entitled by law or in equity,
shall be entitled to seek an injunction to remedy and prevent breaches of this
Agreement, and to an order compelling specific performance of this Agreement.
The Consultant acknowledges and agrees that the Company derives economic value
from the Company Information not being known by other persons who can obtain
economic value from its disclosure or use and that any disclosure or
unauthorized use of the Company Information could cause irreparable harm and
loss to the Company.

 

6.         Assignment. This Agreement is not assignable by the Consultant, in whole or in
part, and any attempt to make such assignment shall be void. The Consultant
agrees that the Company may assign this agreement.

 

7.         Texas Law. This agreement shall be construed according to the law of the State of
Texas.

 

8.         Prevailing Party. If any dispute relating to this Agreement
occurs, the prevailing party shall be reimbursed by the other for all costs
incurred in connection therewith, including without limitation reasonable
attorney’s fees.

 

9.         Entire Agreement. This Agreement supersedes all prior
agreements and understanding between the parties for performance of like or
similar services, and constitutes the complete agreement and understanding
between parties unless modified in writing and signed by both parties.

 

10.       Independent Contractor. Consultant’s relationship with Company is
that of an independent contractor, and nothing in this Agreement is intended
to, or shall be construed to, create a partnership, agency, joint venture,
employment or similar relationship. Consultant will not be entitled to any of
the benefits that Company may make available to its employees, including, but
not limited to, group health or life insurance, profit sharing or retirement
benefits. Consultant is not authorized to make any representation, contract or
commitment on behalf of Company unless specifically requested or authorized in
writing to do so by the Company’s board of directors or Chief Executive
Officer. Consultant is solely responsible for, and will file, on a timely
basis, all tax returns and payments required to be filed with, or made to, any
federal, state or local tax authority with respect to the performance of
services and receipt of fees under this Agreement. Consultant is solely
responsible for, and must maintain adequate records of, expenses incurred in
the course of performing services under this Agreement. No part of Consultant’s
compensation will be subject to withholding by Company for the payment of any
social security, federal, state or any other employee payroll taxes. The
Company will regularly report amounts paid to Contractor by filing Form 1099
MISC with the Internal Revenue Service as required by law.

 

Signature Page
Follows.

 

 

IN
WITNESS WHEREOF, the parties have entered into this Agreement
as of the date first above written.

 

 

	
   

  	
  DEMARSECO
  HOLDINGS, INC.

  	
   

  	
  DANIEL
  H. SMITH

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip Siegel

  	
   

  	
   

  	
  /s/
  Daniel H. Smith

  	
   

  
	
   

  	
   

  	
  Philip Siegel

  	
   

  	
  Daniel H. Smith

  
	
   

  	
   

  	
  Secretary

  	
   

  	
  Tax ID:

  	
   

  	
   

  
								

 

 

Signature Page to Independent
Contractor Agreement

 

 

SCHEDULE A

 

Fees for Services

 

The compensation for
services performed under this Agreement is $1000 per day worked by Consultant,
payable quarterly in arrears. Consultant agrees to devote a minimum of four
days a month to the performance of Services and moreso as mutually agreed upon
by the Company and Consultant.

 

Pre-approved
travel and expenses are to be invoiced separately.Exhibit 10.19

 

NON-COMPETITION AND
NON-SOLICITATION AGREEMENT

 

This
Non-Competition and Non-Solicitation Agreement (this “Agreement”) is made and entered into as of October
30, 2006 by and between DeMarseCo Holdings, Inc., a Delaware corporation (“Acquiror”),
CreditCards.com, L.P., a Texas limited partnership (the “Target”), and Daniel H. Smith (“Smith”  and,
together with Target, the “Inducer”).

 

RECITALS

 

A.        Pursuant to that certain
Asset Purchase Agreement (the “Purchase Agreement”)
dated as of even date herewith by and among Acquiror, Target, and certain other
parties thereto, Acquiror will acquire substantially all of the assets of the
Target together with all of the goodwill of Target related to the business of
Target being conducted and proposed to be conducted by Target, comprised of the
establishing, maintaining and publishing of an online marketplace whereby
consumers may search, compare and apply for credit cards suited to such
consumers’ needs (the “Target
Business”). The
effective time of this Agreement (the “Effective Time”) shall be the effective time of the closing of the
transaction contemplated by the Purchase Agreement (the “Acquisition”). Capitalized terms not otherwise defined
herein shall have the meaning ascribed to them in the Purchase Agreement.

 

B.         In conjunction with the
Purchase Agreement, as an inducement to Acquiror entering into the Purchase
Agreement and as a condition to the consummation of the Acquisition, Inducer
has agreed to refrain from competing with the Target Business for a reasonable
period of time in order that Acquiror may obtain the contemplated benefits from
the Acquisition and the goodwill associated therewith.

 

C.         Inducer possesses, and
after the Effective Time will continue to possess, detailed and special
knowledge of confidential and proprietary information of the Target Business,
including confidential or proprietary information regarding Target’s
activities, products and technology.

 

D.        Inducer’s entry into
this Agreement is an essential part of the transactions described in the
Purchase Agreement. Smith owns an interest in Target and will derive
significant financial benefit from the Acquisition. The due execution of this
Agreement by Inducer is a condition to the closing of the Acquisition.

 

E.         The parties to this
Agreement, and to the Purchase Agreement, recognize that Target has carried on
the Target Business via the Internet, marketing to customers, clients and
suppliers in the United States and its territories, the remainder of the
countries of North America, Asia, Africa, South America, Australia and Europe
(the “Geographic Area”).

 

F.         This Agreement is
necessary for the protection of Acquiror’s investment in Target’s assets that
it is purchasing in the Acquisition.

 

NOW,
THEREFORE, in consideration of the mutual promises made in
this Agreement and the consideration to be received by Inducer in connection
with the Acquisition and for other good and valuable consideration, the
simultaneous receipt and adequacy of which are hereby acknowledged, the Inducer
and Acquiror (collectively referred to as the “Parties”)
hereby agree as follows:

 

 

1.         Non-Competition;
Non-Solicitation. Inducer agrees that for a period (the “Restricted Period”), commencing from the Effective Time
until the six (6) year anniversary of the date hereof, Inducer will not
directly or indirectly, whether as an owner, partner, stockholder, joint
venturer, corporate officer, director, employee, consultant, principal,
trustee, lender or licensor, or in any other similar capacity whatsoever, of or
for any person, firm, partnership, company or corporation (other than for
Acquiror or any of its affiliates): (a) engage, own, manage, operate, sell,
finance, control or participate in the engagement, ownership, management,
operation, sales, finance or control of, or be connected in any manner with,
any business that competes with the Business; (b) approach or solicit in
connection with a competing business purpose, or divert, interfere with or take
away, or attempt to approach or solicit in connection with a competing business
purpose, or divert, interfere or take away, the business or patronage of any of
the clients, customers or suppliers of the Target or Acquiror which are
presently existing or identified as prospective clients, customers or
suppliers; or (c) recruit or solicit any person who is or was employed by
Target, Acquiror or any of their respective affiliates, or induce or attempt to
induce or take any action which is intended to induce any employee of Target,
Acquiror or any of their respective affiliates to terminate his or her
employment with, or otherwise cease his or her relationship with, Acquiror or
any of its affiliates, or interfere in any manner with the contractual or
employment relationship between Acquiror or any of its affiliates and any
employee of Acquiror or any of its affiliates; provided however, the
restriction in Paragraph I(c) shall terminate upon (i) termination of the
employee’s employment by Acquirer or its affiliate, as applicable; or (ii) sale
of Target, whether by sale of stock, sale of assets, merger, or otherwise. In
addition, notwithstanding any restriction in this Paragraph 1, Inducer is
permitted to own, as a passive investor, up to a 1% interest in any
publicly-traded entity. The restrictions set forth in this Paragraph 1 shall be
effective within all cities, counties, states, provinces or other similar
designated regions of the Geographic Area.

 

2.         Confidentiality.
Inducer possesses certain information related to Target’s products, services,
research, development, marketing and selling, business plans, budgets and
unpublished financial statements, licenses, prices and costs, suppliers,
customer lists and customers, substantial portions of which are non-public,
confidential and /or proprietary in nature. All such information, whether
written or oral and whether furnished before or after the date hereof which are
based on or contain or otherwise related to such information are collectively
referred to as the “Confidential
Information.”  The term “person” shall be broadly
interpreted to include, without limitation, any governmental entity,
corporation, partnership, company or individual. Inducer agrees to (i) hold all
Confidential Information in strict confidence and use all reasonable care to
maintain the confidentiality of all Confidential Information and (ii) not
disclose Confidential Information to any person; provided, however, that the
foregoing obligations regarding confidentiality shall not apply to any
Confidential Information that (i) is or becomes generally available to or known
by the public other than as a result of a disclosure made by Inducer, or (ii)
is or was disclosed to Inducer on a non-confidential basis from a source other
than Target or Acquiror (or their predecessors) provided that Inducer is not
aware that such source is or was then bound by a confidentiality agreement with
Target or Acquiror or otherwise prohibited from transmitting the information to
Inducer. Further, Inducer acknowledges the assignment to Acquiror of any rights
Inducer may have in any Confidential Information and recognizes that all
Confidential Information shall be the sole property of the Acquiror and its
assigns and that the Acquiror and its assigns shall be the sole owner of all
patent rights, copyrights, trade secret rights, and all other rights throughout
the world. Notwithstanding the foregoing, Smith may use his know-how in other
activities so long in so doing he does not disclose or use the Confidential
Information in violation of his obligations hereunder or under any other agreement
between Acquiror or any affiliate of the Acquiror) and Smith.

 

2

 

3.         Condition of
Acquisition; Consideration. Inducer agrees and acknowledges that Acquiror
is entering into the Purchase Agreement in order, in part, to acquire the
Target Business for expansion into worldwide markets. Inducer further agrees
that the covenants provided for in Paragraphs 1 and 2, including, without
limitation, the term of the Restricted Period and the scope of the Geographic
Area encompassed in such covenants, are necessary and reasonable in order to
protect Acquiror in the conduct of the Business and the utilization of its
assets, tangible and intangible, including goodwill, and to preserve and
protect the tangible and intangible assets purchased in the Acquisition,
Acquiror and its affiliates, including their goodwill, and the customers and
trade secrets of which Inducer has and will have knowledge. Both Acquiror and
Inducer agree that the execution, delivery and performance of this Agreement is
in consideration of, and a condition precedent to, the consummation of the
Acquisition, and the Parties do not ascribe and cannot ascribe a separate
consideration or value to the covenants provided in this Agreement.

 

4.         Severability.
The covenants contained in this Agreement shall be construed as a series of
separate covenants, one for each of the cities, counties and states of the
United States of America, and one for each other country, city and any region,
if any, analogous to states or counties in the United States of America in the
Geographic Area. It is the desire and intent of the Parties that these
covenants shall be enforced to the fullest extent permissible under applicable
law. If any portion of this Agreement is held to be invalid or unenforceable
due to the unreasonableness of time or geographical restrictions, such
covenants and restrictions shall be effective for the greatest period of time
and for the greatest geographical area as may be determined to be reasonable by
a court of competent jurisdiction and shall be enforced accordingly. If any
other portion of this Agreement is held to be invalid or unenforceable for
reasons unrelated to the unreasonableness of time or geographical restrictions,
such provisions shall be severed from this Agreement and the remaining
covenants and restrictions or portions thereof shall remain in full force and
effect.

 

5.         Waiver. No
provision of this Agreement shall be modified, waived or discharged unless the
modification, waiver or discharge is agreed to in writing, specifying such
modification, waiver or discharge, and signed by Inducer and by an authorized
officer of Acquiror (other than Inducer). No waiver by any party of any breach
of, or compliance with, any condition or provision of this Agreement by another
party shall be considered a waiver of any other condition or provision or of
the same condition or provision at another time.

 

6.         Injunctive Relief.
It is expressly agreed between the Parties that monetary damages would be inadequate
to compensate Acquiror for any breach by Inducer of the covenants and
obligations set forth in this Agreement. Accordingly, Inducer agrees and
acknowledges that any such breach or threatened breach will cause irreparable
injury to Acquiror, and that, in addition to any other remedies at law or in
equity which may be available, Acquiror shall be entitled to obtain preliminary
and permanent injunctive relief against any breach or threatened breach of this
Agreement or the continuation of any such breach by Inducer, without the
necessity of proving actual damages.

 

7.         Assignability.
Inducer’s obligations under this Agreement are personal in nature and may not
be assigned or transferred; provided, however, that Acquiror may assign this
Agreement to any affiliate or other corporation or entity which acquires
(whether by purchase, merger, consolidation or otherwise) all or substantially
all of the business and/or assets of Acquiror. In the event Acquiror shall
transfer or assign this Agreement to a third party, such transferee or assignee
shall be entitled to enforce this Agreement in full, including, without
limitation, the noncompetition provisions contained herein.

 

3

 

8.         Governing Law;
Jurisdiction. This Agreement shall be governed, construed and enforced in
accordance with the laws of the State of Texas.

 

9.         Notice. All
notices and other communications hereunder shall be in writing and shall be
deemed duly delivered: (i) upon receipt if delivered personally; (ii) five (5)
business days after being mailed by registered or certified mail, postage
prepaid, return receipt requested; (iii) one (1) business day after being sent
by commercial overnight courier service; or (iv) one (1) business day after
transmission, if sent via facsimile with confirmation of receipt to the Parties
at the addresses following their signatures to this Agreement (or at such other
address for a party as shall be specified upon like notice). Any party to this
Agreement may give any notice or other communication hereunder using any other
means (including personal delivery, messenger service, telecopy, ordinary mail
or electronic mail), but no such notice or other communication shall be deemed
to have been duly given unless and until it actually is received by the party
for whom it is intended; provided, however, that if such receipt is on a day
that is not a business day, such notice or other communication shall be deemed
to have been duly given on the next business day following such receipt.

 

10.       Entire Agreement.
This Agreement and the Purchase Agreement constitute the entire agreement
between the Parties concerning the matters set forth in this Agreement, and no
representations, warranties or inducements, express or implied, have been made
by either party to the other except as set forth in this Agreement and the
Purchase Agreement. This Agreement may not be amended, modified, altered or
supplemented, other than by means of a written instrument, specifying such
amendment, modification, alternation or supplement, duly executed and delivered
on behalf of Inducer and Acquiror (or any permitted successors or assigns).

 

11.       Counterparts.
This Agreement may be executed by facsimile and in counterpart copies, all of
which when taken together shall be deemed to constitute one and the same
instrument.

 

12.       Nonexclusivity.
The rights and remedies of Acquiror hereunder are not exclusive of, or limited
by, any other rights or remedies which it may have, whether at law, in equity,
by contract or otherwise, all of which shall be cumulative (and not
alternative). Without limiting the generality of the foregoing, the rights and
remedies of Acquiror hereunder, and the obligations and liabilities of Inducer
hereunder, are in addition to their respective rights, remedies, obligations
and liabilities under the laws of unfair competition, laws relating to
misappropriation of trade secrets, other laws and common law requirements and
all related rules and regulations, in each case to the extent applicable to any
action or inaction of Inducer hereunder.

 

13.       Construction. The
Parties hereto agree that any rule of construction to the effect that
ambiguities are to be resolved against the drafting party shall not be applied
in the construction or interpretation of this Agreement.

 

Signature page
follows.

 

4

 

INDUCER
ACKNOWLEDGES THAT HE OR SHE HAS CAREFULLY READ THIS AGREEMENT AND UNDERSTANDS
AND AGREES TO ALL OF THE PROVISIONS IN THIS AGREEMENT.

 

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

 

	
   

  	
   

  	
  DEMARSECO
  HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
   /s/ Philip Siegel

  	
   

  
	
   

  	
   

  	
   

  	
  Philip Siegel

  
	
   

  	
   

  	
   

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  INDUCER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DANIEL
  H. SMITH

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Daniel H. Smith

  	
   

  
	
   

  	
   

  	
  Signature

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CREDITCARDS.COM,
  L.P.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  CCDC Management, LLC,

  its General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  /s/ Jeff Whitmire

  	
   

  
	
   

  	
   

  	
   

  	
  Jeff Whitmire

  	
   

  
	
   

  	
   

  	
   

  	
  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

 

Signature Page to Non-Competition And
Non-Solicitation Agreement

 

 

Acknowledgement

 

I acknowledge that
all products and trade secrets, including creative concepts, articles,
marketing campaigns, slogans, intellectual property, and correspondence, that I
have created or conceived for CreditCards.com L.P. a Texas limited partnership
(“CreditCards.com”), are the property of CreditCards.com

 

	
   

  	
   

  	
  /s/ Daniel H. Smith

  	
   

  
	
   

  	
   

  	
  Daniel H. Smith

  
	
   

  	
   

  	
  October 30, 2006

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