Document:

ex10-41.htm

Exhibit 10.41

TENTH SUPPLEMENTAL

PROMISSORY NOTE

 

	$50,000.00	May 30, 2012

 

Artisanal Cheese, LLC

a New York Limited Liability Company

500 West 37th Street

2nd Floor

New York, New York  10018

(Hereinafter referred to as “Borrower”)

Frederick G. Perkins, III

Declaration of Trust dated 1995

amended 2007

200 Ocean Lane Drive

Apt. 806

Key Biscayne, FL  33149

 (Hereinafter referred to as “Lender”)

Pursuant to a Loan Agreement, Promissory Note and Security Agreement each dated February 22, 2010, by and among Borrower, Lender, Lender's Affiliate, American Home Food Products and Daniel W. Dowe, (collectively the “Loan Documents”), Borrower promised to pay to the order of Lender, in lawful money of the United States of America, at his address indicated above or wherever else Lender may specify, the sum of Two Million Five Hundred Thousand and 00/100 Dollars ($2,500,000.00).  On September 1, 2010, Lender agreed to loan an additional Two Hundred Thousand and 00/100 Dollars ($200,000.00) subject to the same terms, conditions and security interests as provided in the Loan Documents with interest on the unpaid principal balance at the rate and on the terms provided for in the First Supplemental Promissory Note.  On November 1, 2010, Lender agreed to loan an additional One Hundred Thousand and 00/100 Dollars ($100,000.00) subject to the same terms, conditions and security interests as provided in the Loan Documents with interest on the unpaid principal balance at the rate and on the terms provided for in the Second Supplemental Promissory Note.  On November 2, 2010, Lender agreed to loan an additional One Hundred Thousand and 00/100 Dollars ($100,000.00) subject to the same terms, conditions and security interests as provided in the Loan Documents with interest on the unpaid principal balance at the rate and on the terms provided for in the Third Supplemental Promissory Note.  On May 27, 2011, Lender agreed to loan an additional One Hundred Thousand and 00/100 Dollars ($100,000.00) subject to the same terms,conditions and security interests as provided in the Loan Documents with interest on the unpaid principal balance at the rate and on the terms provided for in the Fourth Supplemental Promissory Note.  On August 8, 2011, Lender agreed to loan an additional Two Hundred Thousand and 00/100 Dollars ($200,000.00) subject to the same terms,conditions and security interests as provided in the Loan Documents with interest on the unpaid principal balance at the rate and on the terms provided for in the Fifth Supplemental Promissory Note.  On February 2, 2012, Lender agreed to loan an additional Three Hundred Thousand and 00/100 Dollars ($300,000.00) subject to the same terms,conditions and security interests as provided in the Loan Documents with interest on the unpaid principal balance at the rate and on the terms provided for in the Sixth Supplemental Promissory Note.  On March 9, 2012, Lender agreed to loan an additional Thirty-Two Thousand and 00/100 Dollars ($32,000.00) subject to the same terms,conditions and security interests as provided in the Loan Documents with interest on the unpaid principal balance at the rate and on the terms provided for in the Seventh Supplemental Promissory Note.  On April 13, 2012, Lender agreed to loan an additional One Hundred Thousand and 00/100 Dollars ($100,000.00) subject to the same terms,conditions and security interests as provided in the Loan Documents with interest on the unpaid principal balance at the rate and on the terms provided for in the Eighth Supplemental Promissory Note.  On May 17, 2012, Lender agreed to loan an additional Two Hundred Thousand and 00/100 Dollars ($200,000.00) subject to the same terms,conditions and security interests as provided in the Loan Documents with interest on the unpaid principal balance at the rate and on the terms provided for in the Ninth Supplemental Promissory Note.  On the date hereof, Lender agreed to loan an additional Fifty Thousand and 00/100 Dollars ($50,000.00) subject to the same terms, conditions and security interests as provided in the Loan Documents with interest on the unpaid principal balance at the rate and on the terms provided for in this Tenth Supplemental Promissory Note (including all renewals, extensions or modifications hereof, this “Note”).

 

  

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LOAN AGREEMENT.  This Note is issued in connection with and pursuant to the Loan Agreement dated February 22, 2010.  Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Loan Agreement.

 

SECURITY; RANK.  As security for the payment of the monies owing under this Note, the Borrower has delivered or has caused to be delivered to the Lender a security agreement (“Security Agreement”) dated February 22, 2010.  Lender shall have a first priority security interest in all assets of the Borrower pursuant to the Security Agreement subject only to a prior security interest in certain intellectual property held by Terrence Brennan and Marvin Numeroff as previously disclosed to Lender.  Subject to the terms of the Fifth Supplemental Promissory Note, all payments due under this Note shall, for the avoidance of doubt, rank pari passu with the Promissory Note, the First Supplemental Promissory Note, the Second Supplemental Promissory Note, the Third Supplemental Promissory Note, the Fourth Supplemental Promissory Note, the Sixth Supplemental Promissory Note, the Seventh Supplemental Promissory Note, the Eighth Supplemental Promissory Note and the Ninth Supplementary Promissory Note.

 

INTEREST RATE TO BE APPLIED.  Interest shall accrue on the unpaid principal balance of this Note from the date hereof at a fixed rate of twelve percent (12.00%) per annum (“Interest Rate”).

 

INTEREST AND FEE(S) COMPUTATION.  (Actual/365).  Interest and fees, if any, shall be computed on the basis of a 365-day year for the actual number of days in the applicable period.

 

ISSUANCE OF COMMON SHARES.  In consideration of making this loan, Lender shall receive Twenty-Five Thousand (25,000) shares of Artisanal Brand Inc.’s Common Stock.

 

PREPAYMENT.  The Note may be prepaid, in whole or in part, at any time.  Any prepayment shall include accrued and unpaid interest to the date of prepayment on the principal amount prepaid and all other sums due and payable hereunder.  All prepayments received on this Note may be applied in such order as the Lender in his sole discretion shall determine.

 

  

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REPAYMENT TERMS.  Interest in the amount of Six Thousand Dollars ($6000.00) shall be prepaid on the date hereof.  All principal, together with all other amounts due hereunder, shall be due and payable in full on May 30, 2013.

 

APPLICATION OF PAYMENTS.  Monies received by Lender for application toward payment of this Note shall first be applied to accrued interest and then to principal.  If a Default occurs, monies may be applied to the obligations in any manner or order deemed appropriate by Lender.  If any payment received by Lender under this Note is rescinded, avoided or for any reason returned by Lender because of any adverse claim or threatened action, the returned payment shall remain payable as an obligation of all persons liable under this Note as though such payment had not been made.

 

ATTORNEYS’ FEES AND OTHER COLLECTION COSTS. Borrower shall pay all of Lender’s reasonable expenses incurred to enforce or collect any of the obligations under this Note, including, without limitation, reasonable court, arbitration, paralegals', attorneys' fees and expenses, whether incurred without the commencement of a suit, in any trial, arbitration, or administrative proceeding, or in any appellate or bankruptcy proceeding.

 

DEFAULT.  If any of the following occurs, a default (“Default”) under this Note shall exist:  Nonpayment.  The failure of Borrower to pay any of the obligations under this Note within ten (10) calendar days of when due.  Nonperformance.  The failure of timely performance of the obligations hereunder or under the Security Agreement, other than payment obligations, and such default shall continue unremedied for a period of fifteen (15) calendar days after Borrower shall receive notice of such default.  False Warranty.  A warranty or representation made or deemed made in this Note, the Loan Agreement or the Security Agreement, or furnished Lender in connection with the loan evidenced by this Note, proves materially false, or if of a continuing nature, becomes materially false.  Cessation; Bankruptcy.  The dissolution of, termination of existence of, loss of good standing status by, appointment of a receiver for, assignment for the benefit of creditors of, lender workout proceedings, or commencement of any bankruptcy or insolvency proceeding by or against the Borrower or AHF, or any of their subsidiaries or affiliates.  Material Capital Structure or Business Alteration. Without the prior written consent of Lender, which shall not be unreasonably withheld (i) a material alteration in the kind or type of Borrower's business or that of Borrower's subsidiaries or affiliates; (ii) the sale of all or substantially all or a material portion of the business or assets of Borrower or any of Borrower's subsidiaries or affiliates if such a sale is outside the ordinary course of business of Borrower; (iii) the acquisition of substantially all of the business or assets or more than 50% of the outstanding stock, membership interests, or voting power of any other entity; (iv) should Borrower or any of Borrower's subsidiaries enter into any merger or consolidation or similar transaction; or (v) any change in the members of the Borrower resulting in a change of a majority or more of the membership interests or equity interests of Borrower.

 

REMEDIES UPON DEFAULT.  If a Default occurs under this Note or the Security Agreement, Lender may at any time thereafter take the following actions:  Acceleration Upon Default. Accelerate the maturity of this Note and all obligations hereunder, and all of the obligations hereunder shall be immediately due and payable.  Cumulative. Exercise any rights and remedies as provided under the Note or the Security Agreement, or as provided by law or equity.

 

  

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WAIVERS AND AMENDMENTS. No waivers, amendments or modifications of this Note shall be valid as against Lender unless in writing and signed by Lender.  No waiver by Lender of any Default shall operate as a waiver of any other Default or the same Default on a future occasion.  Neither the failure nor any delay on the part of Lender in exercising any right, power, or remedy under this Note, the Loan Agreement or the Security Agreement shall operate as a waiver thereof, nor shall a single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or remedy.

 

Borrower and any person liable under this Note waives presentment, protest, notice of dishonor, demand for payment, notice of intention to accelerate maturity, notice of acceleration of maturity, notice of sale and all other notices of any kind.  Further, Borrower agrees that Lender may extend, modify or renew this Note or make a novation of the loan evidenced by this Note for any period and grant any releases, compromises or indulgences with respect to any collateral securing this Note, all without notice to or consent of each Borrower or each person who may be liable under this Note and without affecting the liability of Borrower or any person who may be liable under this Note.

 

NOTICE.  All notices, consents, waivers and other communications under this Agreement shall be in writing and shall be deemed to have been duly given when (a) delivered by hand (with written confirmation of receipt), (b) sent by facsimile (with written confirmation of receipt), provided that a copy is mailed by registered mail, return receipt requested, or (c) when received by the addressee, if sent by a nationally recognized overnight delivery service (receipt requested), in each case to the appropriate addresses and facsimile numbers set forth below (or to such other addresses and facsimile numbers as a party may designate by notice to the other parties):

If to Borrower, to:                                 Artisanal Cheese, LLC

500 West 37th Street, Second Floor

New York, New York 10018

Attn:  Daniel W. Dowe, President

Telephone No.: (212) 871-3150

Telecopy No.:  (212)-239-1417

Email: ddowe@artisanalcheese.com

If to Lender, to:                                     Frederick G. Perkins, III

200 Ocean Lane Drive, Apt. 806

Key Biscayne, FL  33149

Telephone No.:  (305) 361-8992

Telecopy No.:  (305) 361-0463

Email: fgperkins@yahoo.com

 

MISCELLANEOUS PROVISIONS.  Assignment.  This Note shall inure to the benefit of and be binding upon the parties and their respective heirs, legal representatives, successors and assigns. This Note may be assigned or pledged by Lender to a bank, other financing source or other person or entity.  Borrower shall not assign its rights and interest hereunder without the prior written consent of Lender, and any attempt by Borrower to assign without Lender’s prior written consent is null and void.  Any assignment shall not release Borrower from its obligations hereunder.  Applicable Law; Conflict Between Documents.  This Note shall be governed by and construed under the laws of the State of New York without regard to conflict of laws principles.  If the terms of this Note should conflict with the terms of the Loan Agreement or the Security Agreement, the terms of this Note shall control.  Jurisdiction and Venue.  Borrower irrevocably agrees that any suit regarding this Note shall be brought in the state or federal courts located in New York, New York and Borrower submits to such jurisdiction.  Severability.  If any provision of this Note shall be prohibited or invalid under applicable law, such provision shall be ineffective but only to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Note or other such document.  Plural; Captions.  All references in this Note to Borrower, person, document or other nouns of reference mean both the singular and plural form, as the case may be, and the term “person” shall mean any individual, person or entity.  The captions contained in this Note are inserted for convenience only and shall not affect the meaning or interpretation of the Note.  Binding Contract. Borrower by execution of and Lender by acceptance of this Note agree that each party is bound to all terms and provisions of this Note.  Fees and Taxes.  Borrower shall promptly pay all documentary, intangible recordation and/or similar taxes on this transaction whether assessed at closing or arising from time to time.

 

  

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WAIVER OF JURY TRIAL.  BORROWER AND LENDER ACKNOWLEDGE AND AGREE THAT (i) ANY SUIT, ACTION OR PROCEEDING, WHETHER CLAIM OR COUNTERCLAIM, BROUGHT OR INSTITUTED BY LENDER OR BORROWER OR ANY SUCCESSOR OR ASSIGN OF LENDER OR BORROWER, ON OR WITH RESPECT TO THIS NOTE OR ANY OTHER DOCUMENT OR THE DEALINGS OF THE PARTIES WITH RESPECT HERETO, OR THERETO, SHALL BE TRIED ONLY BY A COURT AND NOT BY A JURY AND EACH PARTY WAIVES THE RIGHT TO TRIAL BY JURY; (ii) EACH WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER, IN ANY SUCH SUIT, ACTION OR PROCEEDING, ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES; AND (iii) THIS SECTION IS A SPECIFIC AND MATERIAL ASPECT OF THIS NOTE AND LENDER WOULD NOT EXTEND CREDIT TO BORROWER IF THE WAIVERS SET FORTH IN THIS SECTION WERE NOT A PART OF THIS NOTE.

 

IN WITNESS WHEREOF, Borrower, on the day and year first above written, has caused this Note to be executed.

 

	 	 
ARTISANAL CHEESE, LLC

	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	
By: 

	
/s/ Daniel W. Dowe

	 
	 	 	
Name: Daniel W. Dowe

	 
	 	 	
Title: President

	 

5spni_ex101.htm

EXHIBIT 10.1

 

Marketing Agreement

This Marketing Agreement (this "Agreement"), dated as of November 19, 2012 (the "Effective Date"), is between Wireless NRG, LLC, ("WNRG") located at 30 Skyline Drive Suite, Lake Mary, Florida 32746 and Sputnik Enterprises, Inc. or a newly formed subsidiary of Sputnik ( collectively referred to as"SPNI"), located at 37 N. Orange Ave Suite 500, Orlando, Florida 32801. WNRG and SPNI are sometimes individually referred to as "Party" and collectively referred to as the "Parties."

WHEREAS, WNRG and SPNI desire to establish an exclusive strategic marketing agreement whereby Sputnik Enterprises, Inc. will promote Wireless NRG, LLC's products to its customers.  This Agreement may be modified from time to time in the form of a written instrument signed by both Parties (an "Amendment"). The terms of any Amendment executed during this Agreement will be subject to the terms of this Agreement unless otherwise stipulated in the Amendment.

1. SCOPE OF ACTIVITIES. The Parties will undertake the activities listed in Appendix A. The Parties acknowledge that their respective obligations to undertake the activities listed in Appendix A serve as good and valuable consideration for this Agreement.

2. REPORTING. Within ten (10) days after the end of each calendar month during the Term, Sputnik Enterprises, Inc. will provide Wireless NRG, LLC with (or provide access to) a monthly report of data that will let the other Party determine the value (traffic, completed sales, revenues, etc.) derived from individual activities as described in this Agreement.

3. TRACKING OF USERS.  WRNG and SPNI will develop, use and implement reasonable tracking mechanisms in order to permit WNRG to accurately track customers that are exclusive to SPNI and customers that are non-exclusive to SPNI as defined herein and shall provide methods by which SPNI may receive accounting of all customers for audit purposes. The specific tracking systems and internal controls will be mutually approved by the parties within 10 days of the execution of this agreement.

4. LICENSES. WNRG grants to SPNI a non-exclusive, non-transferable, royalty-free license to use WNRG's and Kudos trade names, trademarks, logos and service marks (collectively Marks) in connection with the performance of this Agreement. SPNI shall not use any of WNRG's Marks for any purpose without first obtaining the prior written advance consent of WNRG. SPNI will not alter or permit alteration of, or remove or modify or permit removal or modification of, any of WNRG's, or other identifying marks placed by WNRG or its agents on the products or associated documentation or literature, without WNRG's prior written approval. Except as specifically provided in this Agreement, nothing in this Agreement shall confer upon SPNI any right, title or interest in any of the Marks or goodwill of WNRG. SPNI acknowledges that WNRG's Marks and any related goodwill are the sole and exclusive property of WNRG, and SPNI agrees not to (or cause a third party to) contest the rights of WNRG in WNRG's marks or to use any confusingly similar marks, works or symbols. At no time during or after the term of this Agreement shall SPNI challenge or assist others to challenge WNRG's Marks or the registration thereof or attempt to register any trademarks, marks or trade names that are in any way confusingly similar to WNRG's Marks.

SPNI acknowledges that WRNG retains ownership of all its Marks and other intellectual property rights that are licensed to it. SPNI acknowledges that its utilization of WNRG's Marks will not create in it, nor will it represent it has, any right, title or interest in or to WNRG's Marks other than the express and limited right to use WNRG's Marks on SPNI’s Website granted under this Agreement. The goodwill from SPNI's use of WNRG's Marks, if any, shall accrue solely to the benefit of WNRG. SPNI agrees that it shall cease using WNRG's Marks immediately upon request, and in no event shall this license survive the term of this Agreement.

 

  

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5. TERM AND TERMINATION. The term of this Agreement shall be 84 months from the Effective Date, unless terminated earlier pursuant to the provisions of this Agreement.  Thereafter, the term will automatically renew for a successive 36 month term with written notice by SPNI 30 days prior to the expiration of the initial term or a successive term.

a. Termination for Cause. If either Party materially defaults in the performance of any provision of this Agreement, and such default is not cured within 30 days after the non-defaulting Party gives the defaulting Party written notice of such default, then the non-defaulting Party shall be entitled to terminate the Agreement immediately upon written notice of termination to the defaulting Party.

b. Effect of Termination. Termination shall not relieve either Party of any obligations incurred prior to the termination. Upon termination, SPNI agrees to (i) cease all promotions of WNRG's products; (ii) cease all use of WNRG's technology and Marks; and (iii) cease making WNRG's products available in or through a website or otherwise, and upon request, to promptly destroy or return all copies (electronic or written) of the content, technology, and any other confidential or proprietary information in SPNI's possession or control. Without limiting the foregoing in any way, the Parties agree that following termination, each Party may continue to make their products/services available directly to users subscribing to the product/service prior to termination, without any liability or obligation to the other Party.

6. WARRANTIES; DISCLAIMER.

	
a.  

	
Warranties. Each Party represents and warrants to the other that:

	
i.  

	
it has the full corporate right and authority to enter into this Agreement and to perform the acts required of it hereunder;

	
ii.  

	
the execution of this Agreement by such Party and the performance by such Party of its obligations and duties hereunder do not and shall not violate any other Agreement to which such Party is a Party or by which it is otherwise bound;

	
iii.  

	
when executed and delivered by such Party, this Agreement shall constitute the

	
iv.  

	
legal, valid and binding obligation of such Party, enforceable against such Party according to its terms;

	
v.  

	
such Party acknowledges that the other Party makes no representations, warranties or Agreements related to the subject matter hereof that are not expressly specified in this Agreement.

	
b.  

	
Disclaimer. EXCEPT AS EXPRESSLY SET FORTH HEREIN, NEITHER PARTY MAKES AND EACH PARTY HEREBY DISCLAIMS ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, REGARDING THE PRODUCTS AND SERVICES CONTEMPLATED BY THIS AGREEMENT, INCLUDING ANY IMPLIED WARRANTY OF NONINFRINGEMENT, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, OR IMPLED WARRANTIES ARISING FROM COURSE OF DEALING OR COURSE OF PERFORMANCE.

7. INDEMNIFICATION.

	
a.  

	
WNRG Duty to Indemnify. WNRG will indemnify, defend, and hold SPNI and its directors, officers, employees and agents harmless from any and all costs, expenses (including reasonable attorney's fees) losses, damages, or liabilities incurred insofar as such costs, expenses, losses, damages or liabilities are based on a claim that the WNRG's technology or the WNRG's Marks infringes any intellectual property rights of a third party.

	
b.  

	
SPNI Duty to Indemnify. SPNI will indemnify, defend, and hold WNRG and its directors, officers, employees and agents harmless from any and all costs, expenses (including reasonable attorney's fees) losses, damages, or liabilities incurred insofar as such costs, expenses, losses, damages or liabilities are based on a claim that the SPNI's technology or the SPNI's Marks infringes any intellectual property rights of a third party.

	
c.  

	
Indemnification Procedures. The indemnified Party shall provide the indemnifying Party with prompt written notice of any such claim. The indemnifying Party shall have sole control and authority with respect to the defense and settlement of any such claim. The indemnified Party shall cooperate fully with the indemnifying Party, at the indemnifying Party's sole cost and expenses, in the defense of any such claim. The indemnifying Party shall not agree to any such claim that does not include a complete release of the indemnified Party from all liability with respect thereto or that imposes any liability, obligation or restriction on the indemnified Party without the prior written consent of the indemnified Party. The indemnified Party may participate in the defense of any claim through its own counsel, and at its own expense.

 

  

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8. CONFIDENTIALITY.

	
a.  

	
Protection of Information. The parties may provide each other with confidential information and trade secrets, including without limitation, information on their respective organization, business, finances, personnel, services, systems, pricing structure, proprietary products and processes, transactions and/or business relations (collectively, the "Information"). The term "Information" shall not include

	
i.  

	
information generally available to the public through no fault of the other Party,

	
ii.  

	
information which the other Party already had knowledge of, or

	
iii.  

	
information which has become part of the public domain through no fault of a Party. Each Party agrees to retain in confidence at all times and to require its employees, consultants, professional representatives and agents to retain in confidence all information disclosed by the other Party. Each Party shall only use the other's information solely for the purpose of performing obligations under this Agreement, and only disclose the Confidential Information on a need-to-know basis, provided that, such party shall be liable for the acts of any third party who obtains the Confidential Information from such party. Each party shall take all necessary precautions in handling the Confidential Information of the other party and limit disclosures on a strict need-to-know basis. Further, the receiving Party may disclose information to the extent ordered to be disclosed by subpoena, other legal process or requirement of law, after first giving the disclosing Party a reasonable opportunity to contest such disclosure requirement.

	
b.  

	
Injunctive Relief. Each Party acknowledges and agrees that any use or disclosure of Confidential Information by the Party in a manner inconsistent with the provisions of this Agreement may cause another Party harm which will not be compensable by monetary damages alone and, accordingly, such other Party will, in addition to other available legal or equitable remedies, be entitled to seen an immediate injunction restraining the disclosing Party from committing or continuing to commit a breach. A Party may avail itself of injunctive relief in addition and without prejudice to any other remedies available to it.

	
c.  

	
Survival. This Section 8 will survive the termination or expiration of this Agreement.

9. LIMITATION OF LIABILITY. THE PARTIES AGREE THAT IN NO EVENT SHALL WNRG OR SPNI BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, CONSEQUENTIAL, PUNITIVE, OR OTHER INDIRECT DAMAGES OF ANY NATURE, FOR ANY REASON, INCLUDING, WITHOUT LIMITATION, THE BREACH OF THIS AGREEMENT OR ANY EXPIRATION OR TERMINATION OF THIS AGREEMENT, WHETHER SUCH LIABILITY IS ASSERTED ON THE BASIS OF CONTRACT, TORT (INCLUDING NEGLIGENCE OR STRICT LIABILITY) OR OTHERWISE, EVEN IF IT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. IN NO EVENT WILL EITHER PARTY (I) BE LIABLE FOR LOST PROFITS OR LOST BUSINESS OPPORTUNITIES ARISING OUT OF THE TERMINATION OF THIS AGREEMENT, OR (II) BE LIABLE FOR DAMAGES OR ALLEGED DAMAGES HEREUNDER, WHETHER IN CONTRACT, TORT OR ANY OTHER LEGAL THEORY, THAT EXCEED THE AMOUNTS REQUIRED TO BE PAID BY EITHER PARTY TO THE OTHER HEREUNDER. THE PARTIES FURTHER AGREE THAT FOR AMOUNTS PAYABLE UNDER SECTION 7 (INDEMNIFICATION) OR SECTION 8 (CONFIDENTIALITY) HEREUNDER, EITHER PARTY'S TOTAL LIABILITY UNDER THIS AGREEMENT SHALL NOT EXCEED THE SUM OF ($2,000,000.00). THE FOREGOING NOTWITHSTANDING, AS BETWEEN THE PARTIES AND ANY PARTNER AND/OR VENDOR OF THE RESPECTIVE PARTIES, NOTHING IN THIS AGREEMENT SHALL CONFER ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, CONSEQUENTIAL, PUNITIVE OR OTHER INDIRECT DAMAGES OF ANY NATURE FOR ANY REASON BY THE PARTIES AGAINST SUCH PARTNER AND/OR VENDOR USED BY THE PARTIES TO PROVIDE AND/OR SUPPORT THE PARTY'S RESPECTIVE PRODUCTS AND/OR SERVICES.

10. PUBLICITY. The Parties will cooperate to create appropriate public and promotional announcements or press releases relating to the relationship set forth in this Agreement. All public announcements by one Party which mention the other Party, but specifically excluding announcements which simply mention one Party as a customer or strategic marketer of the other Party, shall be subject to prior review and approval, which shall not be unreasonably withheld or delayed.

 

  

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11. MISCELLANEOUS.

 

	
a.  

	
Notices. All notices that either Party is required or may desire to serve upon the other Party shall be in writing and addressed to the Party to be served at the respective addresses set forth herein and shall be sent via U.S. Express Mail or private express courier service with confirmed receipt and will be effective upon receipt at the addresses listed herein (unless the Parties are notified in writing of a change in address, in which case notice will be sent to the new address).

	
b.  

	
Entire Agreement. This Agreement constitutes the entire understanding and agreement between the parties with respect to the transactions contemplated, and supersedes any and all prior or contemporaneous oral or written representation, understanding, agreement or communication between the Parties concerning the subject matter hereof. Neither Party is relying upon any warranties, representations, assurances, or inducements not expressly set forth herein.

	
c.  

	
Waiver. No waiver of any provision of this Agreement or any rights or obligations of either Party hereunder shall be effective, except pursuant to a written instrument signed by the Party waiving compliance, and any such waiver shall be effective only in the specific instance and for the specific purpose stated in such writing.

	
d.  

	
Force Majeure. Neither Party shall be deemed in default hereunder, nor shall it hold the other Party responsible for, any cessation, interruption or delay in the performance of its obligations hereunder due to earthquake, flood, fire, storm, natural disaster, act of God, war, armed conflict, labor strike, lockout, or boycott, provided that the Party relying upon this section (i) shall have given the other Party prompt written notice thereof and, in any event, within five (5) days of discovery thereof and (ii) shall take all steps reasonably necessary under the circumstances to mitigate the effects of the force majeure event upon which such notice is based; provided further, that in the event a force majeure event described in this section extends for a period in excess of thirty (30) days in the aggregate, either Party may immediately terminate this Agreement.

	
e.  

	
Headings. The section and paragraph headings appearing in this Agreement are inserted only as a matter of convenience and in no way define, govern, limit, modify or construe the scope or extent of the provisions of this Agreement to which they may relate. Such headings are not part of this Agreement and shall not be given any legal effect.

	
f.  

	
Amendments and Severability. No amendment or modification of this Agreement, nor any waiver of any rights, will be effective unless assented to in writing by the party to be charged, and the waiver of any breach or default will not constitute a waiver of any other right hereunder or any subsequent breach or default. In the event that any provision of this Agreement should be found by a court of competent jurisdiction to be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained shall not, in any way, be affected or impaired thereby.

	
g.  

	
Assignment. This Agreement shall be binding upon and inure to the benefit of each Party's successors and assigns. Neither Party may assign this Agreement, in whole or in part, without the other Party's prior written consent; provided, however, that the sale of any portion of the assets of either Party, or any of its subsidiaries, its acquisition by merger into another company, shall not be deemed an assignment of this Agreement by such Party. Provided further, that the Party to be sold or acquired in accordance with the previous sentence must provide written notice to the other Party of any such sale or acquisition within forty-five (45) calendar days of the closing. Any attempt to assign this Agreement other than in accordance with this provision shall be null and void.

	
h.  

	
Independent Contractors. The Parties to this Agreement are independent contractors. Neither Party is an agent, representative, or partner of the other Party. Neither Party shall have any right, power or authority to enter into any agreement for or on behalf of, or incur any obligation or liability of, or to otherwise bind, the other Party. This Agreement shall not be interpreted or construed to create an association, joint venture, partnership, franchise, sales, representative or employment relationship between the Parties or to impose any partnership obligation or liability upon either Party. Each Party shall bear its own costs and expenses in performing this Agreement.

	
i.  

	
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Florida, without reference to conflicts of laws or choice of laws rules. All legal actions relating to this Agreement shall be brought in the state or federal courts located in the State of Florida.

 

  

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IN WITNESS WHEREOF, each of Wireless NRG, LLC and Sputnik Enterprises, Inc. has caused this Agreement to be signed and delivered by its duly authorized representative.

 

	Sputnik Enterprises, Inc. 	 	 	Wireless NRG, LLC	 
	 	 	 	 	 
	 	 	 	Managing Members	 
	 	 	 	 	 
	 	 	 	 	 
	
By /s/ Anthony Gebbia

	 	 	
By /s/ Ed Lachcik

	 
	
Anthony Gebbia, CEO 

	 	 	
Ed Lachcik

	 
	
 

	 	 	
 

	 

 

	 	 	 	 	 
	
/s/ Robert Mehler

	 	 	
 

	 
	
Robert Mehler

	 	 	
 

	 
	
 

	 	 	
 

	 

                                                                                                                                                                                                                                                                                     

	 	 	 	 	 
	
/s/ David Foster

	 	 	
 

	 
	
David Foster

	 	 	
 

	 
	
 

	 	 	
 

	 

 

	 	 	 	 	 
	
/s/ Arturo Bendek

	 	 	
 

	 
	

Arturo Bendek

	 	 	
 

	 
	
 

	 	 	
 

	 

 

	 	 	 	 	 
	
/s/ Jorge Bendek

	 	 	
 

	 
	
Jorge Bendek

	 	 	
 

	 
	
 

	 	 	
 

	 

  

5

  

 

APPENDIX A

Party Responsibilities & Payment Terms

Wireless NRG, LLC and Sputnik Enterprises, Inc. OTCBB SPNI have agreed to execute the marketing and administrative activities identified below. Each Party shall coordinate their respective activities. All such promotion/ marketing costs or administrative and fulfillment costs by a respective Party shall be borne solely by that Party, if applicable, unless otherwise indicated below.

Activities of Wireless NRG, LLC: Provide all products, customer service, product fulfillment, shipping, handle returns, and general administrative and tech support for all products sold by SPNI personnel at WRNG cost. The grant of marketing rights to SPNI by WRNG is exclusive as to SPNI with respect to all group sales and corporate sales with minimum orders of 10 or more closed domestically in the US and in all areas internationally, whether the sales are made by SPNI or a third party not affiliated to SPNI. It is agreed and understood that any corporate or group sales as defined herein made by any entity or person, whether SPNI personnel, WRNG or other third party shall accrue to the benefit of SPNI under this agreement. Big Box accounts are excluded from this provision.

Activities of Sputnik Enterprises, Inc. SPNI: SPNI shall market all WRNG products to corporate and group accounts on a US domestic and international basis on an exclusive basis utilizing all marketing channels available, including but not limited to local, regional and national media and international media. It is agreed and understood that the initial marketing emphasis will be on the Kudos IPAD case and Kudos IPhone case for IPhone 5. SPNI shall also market individual consumer sales of WRNG products on a non exclusive basis through special promotions and SPNI will be entitled to receive compensation on these sales as set forth below.

Payment Terms: WRNG shall pay SPNI a minimum fee equivalent to 40.5% of the purchase price paid by the corporate or group customer or individual retail customer, without deduction or offset of any kind or nature. WRNG shall render a monthly statement of sales reflecting all WRNG corporate and or group sales for the calendar month by the 5th of the month following the reporting month and the appropriate remittance as set forth hereinabove.

 

 

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