Document:

licenseagrmnt Ex 10-1

LICENSE AGREEMENT 

 

This License Agreement (this "Agreement"), dated as of Date (the "Effective Date"), is entered into by and between Network Technology, Inc., a Maryland C corporation ("RxNT"), and eRXSYS, Inc., a Nevada C corporation ("eRXSYS"). RxNT and eRXSYS are each sometimes referred to herein as a "Party" and collectively as the "Parties". 

 

  

                                                                              I.   BACKGROUND AND RECITALS 

 

1.1   eRXSYS intends to partner with physicians to provide paperless prescriptions that safely enhance patient care.  The focus will be on the pain management segment of the physician office market place. 

 

1.2   RxNT owns the RxNT Technology (as hereinafter defined) and the Licensed Products (as hereinafter defined), and has the right to grant licenses of the Licensed Products thereunder. 

 

1.3   eRXSYS desires to obtain from RxNT, and RxNT hereby desires to grant to eRXSYS, certain non-exclusive licenses to the Licensed Products as provided in this Agreement. 

 

                                                                                           II.   DEFINITIONS 

 

The following terms shall have meanings ascribed to them below: 

 

            2.1   "Affiliate" means, with respect to either Party, any Person that (directly or indirectly) controls, is controlled by or is under common control with that party. "Control" of a Person means the power (directly or indirectly) to direct the management or policies of that Person, whether through ownership of voting securities, by contract, by agency or otherwise. For purposes of this Section, "Person" means a corporation, partnership, joint venture, association, individual or other entity. 

 

            2.2   "End Users" means eRXSYS’s end user customers, including without limitation, participating physicians and pharmacies, who have each entered into an End User License with eRXSYS prior using the Licensed Products to access the Services. 

 

            2.3   "End User License" means the standard form of license allowing End Users to use the Licensed Products solely to access the Services, and not for resale or transfer to others, and as provided in Section 3.1 below. 

 

            2.4   "Licensed Products" means the products identified on Exhibit A attached hereto, and any derivatives, modifications and/enhancements thereto developed pursuant to this Agreement and during the Term (defined in Section 9.1 below). 

 

            2.5   "RxNT Technology" means the intellectual property of RxNT, including, without limitation, any patent, patent application, source code, object code, software, copyright, trademark and/or trade secret related to or embodied by the Licensed Products. 

 

            2.6   "PBM" means a pharmacy benefit management company (e.g., Express Scripts and Merck-Medco). 

 

            2.7   "RxHub" means RxHub LLC, a Delaware limited liability company. 

 

            2.8   "Services" means the electronic prescription services providing . 

 

 

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            2.9   "eRXSYS Customer" means any person or entity which purchases Services from eRXSYS during the Term, including, without limitation, physician group or healthcare organization; provided, however, that a "eRXSYS Customer" shall not include any person or entity that has purchased products or services from RxNT during the six (6) month period prior to such time that such person, entity or agency first purchased products or services from eRXSYS. 

 

           2.10  "eRXSYS Product" means the product developed pursuant to this Agreement, which incorporates the Licensed Products, for the sole purpose of providing the Services to the eRXSYS Customers. 

 

                                                                                          III.   GRANT OF LICENSE BY RXNT 

 

            3.1   License Grant; During the Term, and subject to the terms and conditions of this Agreement, RxNT hereby grants to eRXSYS, the non-exclusive right and license to use the compiled object code version of the Licensed Products exclusively to market and sell the Services and provide the Services to End Users. The Licensed Products may be used to market, sell and provide the Services to one thousand (1000) End Users who enter into an End User License with eRXSYS; the terms of such End User License shall be in a standard form and shall be approved in advance and in writing by RxNT, which approval shall not be unreasonably withheld or delayed. eRXSYS agrees not to disassemble or reverse engineer the Licensed Products in whole or in part, except to the extent that such restriction is expressly prohibited by applicable law. eRXSYS has the option of purchasing additional End User Licenses in increments of one thousand (1000) End Users per $100,000 under identical terms and conditions described herein. 

 

             3.2   Improvements. Any modifications, customizations and/or improvements (the "Improvements") to the Licensed Products required or desired by the Parties to implement the Services shall be made solely by RxNT unless approved in advance and in writing by RxNT. Any Improvements developed with the purpose of exclusive use and license by eRXSYS shall require mutually agreed upon written consent by eRXSYS and RxNT prior to development. RxNT shall own all rights, title and interest in and to the Improvements and RxNT hereby agrees to grant to eRXSYS an annual, non-exclusive license to use the Improvements solely in conjunction with the authorized use of the Licensed Products. eRXSYS agrees that it shall use only the Licensed Products (including without limitation RxNT’s interface to RxHub) for each prescription transaction generated by eRXSYS Product . 

 

                

                                                                                 IV.    BRANDING AND TRADEMARK USAGE

 

              4.1   Branding. The initial Licensed Product to be offered by eRXSYS shall be distributed under the brand name ASSURED SCRIPT . All Licensed Product distributed by eRXSYS under this Agreement shall also be marked "powered by RxNT" unless otherwise mutually agreed to by the Parties in advance and in writing. The designation "powered by RxNT" shall be placed in a conspicuous and highly visible location on the Licensed Product and shall be displayed on the End Users computer screen each time the License Product is launched. 

 

              4.2   Use of Trademarks. During the Term, eRXSYS may use trademarks owned by RxNT that are associated with the Licensed Product(s), subject to the following conditions. eRXSYS agrees to use the appropriate trademark symbol (either TM or ® in a superscript following the Licensed Product name) and clearly indicate RxNT’s ownership of the trademark whenever the Licensed Product name is mentioned in any computer screen display, advertisement, brochure, or in any other manner in connection with the Licensed Products. eRXSYS shall at least annually provide RxNT with samples of all screen displays, literature, packages, labels and labeling prepared by eRXSYS that uses the Licensed Product name. Solely as set forth in Section 4.1 above, eRXSYS may use another brand name, trademark or service mark in addition to any of the RxNT trademarks. eRXSYS shall not combine RxNT’s trademarks and other marks so as to effectively create a unitary composite mark without the prior written approval of RxNT. eRXSYS acknowledges the ownership of the RxNT trademarks in RxNT and agrees that it will do nothing inconsistent with such ownership and that all use of the RxNT trademarks will inure to the benefit of and on behalf of RxNT. 

 

 

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                                                                                        V.   DUTIES AND RESPONSIBILITIES 

 

                5.1   During the Term, eRXSYS intends to partner with physicians to provide paperless prescriptions that safely enhance patient care.  The focus 

will be on the pain management segment of the physician office market place. 

 

                5.2   Activities may include the following: 

 

                        (a)   Marketing of the prescription writing software to large groups within geographic areas. 

   

                        (b)   Marketing of a variety of healthcare products and services based on software and transaction services to a variety of healthcare submarkets. 

 

                5.3   During the Term, RxNT shall undertake to achieve the following duties and responsibilities: 

 

                        (a)   Ensuring that the Licensed Products remain in good standing with PBM’s, RxHUB and all applicable industry regulatory rules (with eRXSYS agreeing to cooperate with RxNT in such efforts). 

 

                        (b)   Maintaining network connectivity and business relationships with PBM’s and RxHUB. 

 

                        (c)   Customizing and installing the product to combine the ASSURED SCRIPT . 

 

                        (d)   Considering and approving all pricing models for the product. 

 

                        (e)   Jointly responsible with eRXSYS (subject to Section 3.2 above) for the design and implementation of the network and product architecture of the ASSURED SCRIPT product and service. 

 

                         (f)   Second level support of the ASSURED SCRIPT product and service. 

 

                 5.4   During the Term, eRXSYS will shall undertake to achieve the following duties and responsibilities: 

 

                         (a)   Primary responsible for the sales and marketing of the ASSURED SCRIPT product. 

 

                         (b)   Sourcing appropriate financing for eRXSYS. 

 

                         (c)   Jointly responsible with RxNT (subject to Section 3.2 above) for the design and implementation of the network and product architecture. 

 

                         (d)   First level support of the product and service. 

 

                         (e)   General product implementation, including training of personnel. 

 

                                                                                            VI.   TITLE AND OWNERSHIP 

 

                  6.1   eRXSYS hereto expressly acknowledges and agrees that the ownership of and all right, title and interest in the RxNT Technology and Licensed Products, the components comprising the RxNT Technology and Licensed Products, and any trademark, trade name, trade secret, patent or copyright relating

 

 

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to the RxNT Technology and Licensed Products is and will remain vested solely in RxNT. Except as otherwise provided herein, e RXSYS will not have access to or permission to use in any manner the RxNT Technology, including without limitation the source code version of the Licensed Products, without the express written permission of RxNT. 

 

                                                           VII.   LICENSE FEES; ROYALTIES; STOCK APPRECIATION RIGHTS 

 

                 7.1   eRXSYS will pay to RxNT a license fee of $100,000, $50,000 of which shall be payable upon execution of this contract, and the remaining $50,000 of which shall be payable upon "going live" as indicated by the installation of a functional version of the product. 

 

                 7.2   eRXSYS will commence paying RxNT royalties (the "Royalties") equal to twenty five percent (25%) of the Gross Profit from the sale of the ASSURED SCRIPT product of eRXSYS for the remainder of the Term. 

 

                7.3   Royalties due under Section 7.2 above shall be paid on a calendar monthly basis within thirty (30) days after the end of the applicable calendar month. Payments shall be made by wire transfer to an account specified by RxNT in writing at least thirty (30) days prior to the date a Royalty payment is due. Within thirty (30) days after the end of each calendar month, eRXSYS shall furnish to RxNT a report providing the Gross Profit, and Gross Revenues for the ASSURED SCRIPT product for the applicable monthly period. 

 

                7.4   eRXSYS agrees to make and maintain such books, records and accounts as are reasonably necessary to verify the Royalty payments due RxNT under this Agreement. An independent certified accountant, selected by RxNT, may, upon reasonable notice and during normal business hours, but no more than once per calendar quarter, audit and inspect those records of eRXSYS which are necessary to determine the accuracy of the Royalty payments made by eRXSYS to RxNT under this Agreement. In the event that that any such audit reveals that the Royalties paid to RxNT for a given calendar quarter are more than five percent (5%) greater than the Royalties actually paid by eRXSYS for that calendar quarter, then in addition to remitting all outstanding Royalties shown to be due under such audit, all reasonable out-of-pocket expenses incurred by RxNT in conducting the audit shall be paid by eRXSYS within thirty (30) days of receiving the auditor’s report; otherwise, all expenses incurred by RxNT in conducting such audit will be borne by RxNT. 

 

                                                                                             VIII.   NO COMPETITION 

 

                8.1   The Parties acknowledge and agree that, during the Term, RxNT will not sell the Licensed Products (whether as a standalone product or in combination with any other product) to any existing eRXSYS physician group or healthcare organization. 

 

                                                                                      IX.   TERM AND TERMINATION 

 

               9.1   The term of this Agreement shall commence on the Effective Date and shall continue for three (3) years or until terminated (a) upon the written consent of both RxNT and eRXSYS; or (b) as provided in Sections 9.2 or 9.3 below (the "Term"). Such term shall automatically be extended for additional one-year terms thereafter upon payment of an agreed upon annual licensing fee or unless either party notifies the other, not less than thirty (30) days prior to the expiration of the applicable term, of its intention not to renew the Agreement. In the case of a change in ownership or control of RxNT pursuant to Section 15.1 below, the RxNT Successor (as defined in Section 15.1) shall provide prior written notice to eRXSYS, not less than twelve (12) months prior to the expiration of the applicable term, of its intention not to renew the Agreement. Any debts, obligations covenants or liabilities accrued hereunder between the Parties shall survive the expiration or termination of this Agreement for whatever reason. 

 

 

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               9.2   Either Party shall have the right to terminate this Agreement upon a material default by the other Party of any of its obligations hereunder, if such default has not been cured within sixty (60) days after receipt of written notice from the other Party of the alleged default. 

               9.3   In the event either Party files a petition in bankruptcy or in case a petition in bankruptcy is filed against such Party and said petition is not dismissed within ninety (90) days thereafter, or if said Party is adjudged bankrupt or shall make a general assignment for the benefit of its creditors or any assignment in the nature of such a general assignment, or in case a receiver is appointed for its business, then this Agreement, at the option of the other Party, shall terminate forthwith upon written notice from the other party to the insolvent Party in the exercise of such option to terminate. 

               9.4   Upon termination of this Agreement by RxNT pursuant to Section 9.2 above:

                       (a)   All obligations of eRXSYS to pay all sums due on or prior to the date of termination shall be due and payable upon the effective date of termination. 

                       (b)   The licenses granted herein shall immediately terminate, except as provided below in this Section 9.4. 

                       (c)   eRXSYS and its reproduction agents shall immediately discontinue all use, reproduction and distribution of the software and user documentation pertaining to the Licensed Products, except as provided in subpart (d) below. 

                       (d)   eRXSYS shall deliver to RxNT or destroy all Licensed Products and related materials in its possession furnished hereunder by RxNT, together with all copies thereof, and shall warrant in writing within thirty (30) days of termination that the Licensed Products, related materials and all copies thereof have been returned to RxNT or erased or destroyed; provided, however, that eRXSYS may retain one copy of the Licenses Products and the related software and user documentation to be used solely for End User support services. 

                        (e)   eRXSYS shall continue to be responsible for safeguarding the trade secrets and proprietary rights of RxNT in accordance with the terms of this Agreement. 

                        (f)   End Users shall be permitted the continued and uninterrupted use of the Licensed Products for the balance of the term of their End User agreements provided that and so long as such End Users are not in default of their End User agreements. 

                9.5   Upon termination of this Agreement by eRXSYS pursuant to Section 9.2 above: 

                        (a)   All obligations of RxNT to pay all sums due on or prior to the date of termination shall be due and payable upon the effective date of termination. 

                        (b)   The licenses granted herein shall immediately terminate, except as provided below in this Section 9.5. 

                        (c)   eRXSYS and its reproduction agents shall immediately discontinue all use, reproduction and distribution of the software and user documentation pertaining to the Licensed Products, except as provided in subpart (d) below. 

                        (d)   eRXSYS shall deliver to RxNT or destroy all Licensed Products and related materials in its possession furnished hereunder by RxNT, together with all copies thereof, and shall warrant in writing within thirty (30) days of termination that the Licensed Products, related materials and all copies thereof have been returned to RxNT or erased or destroyed; provided, however, that eRXSYS may retain one copy of the 

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Licenses Products and the related software and user documentation to be used solely for End User support services. 

 

                       (e)   eRXSYS shall continue to be responsible for safeguarding the trade secrets and proprietary rights of RxNT in accordance with the terms of this Agreement. 

 

                       (f)   End Users shall be permitted the continued and uninterrupted use of the Licensed Products for the balance of the term of their End User agreements provided that and so long as such End Users are not in default of their End User agreements. 

 

                       (g)   RxNT agrees not to directly or indirectly offer, sell or provide (i) the eRXSYS Product and Improvements (whether as a product or a service, or part of a product or service) or (ii) any Licensed Product (whether as a standalone product or in combination with any other product) to perform the Services to any state government or agency (including the State of Kentucky), physician group or healthcare organization, except as otherwise mutually agreed to in writing by the Parties. 

 

                                                                                        X.   INFRINGEMENT BY OTHERS 

 

             10.1   In the event during the Term there is any apparent infringement, by others, of the RxNT Technology and/or Licensed Products, the Parties agree that RxNT shall have the sole right to proceed against such infringers at RxNT’s sole discretion. All recoveries had or obtained in such suit shall belong to RxNT. However, if RxNT elects to proceed against such infringer, eRXSYS may, at its sole election, also proceed against such infringer, at eRXSYS's sole cost and expense, in which event all damages recovered by eRXSYS shall belong to eRXSYS. 

 

                                                                                                  XI.   INDEMNIFICATION 

 

             11.1   Indemnity by RxNT. Except as provided in Section 11.3 below, RxNT agrees at its expense to defend and indemnify eRXSYS for damages and reasonable costs incurred in any suit, claim or proceeding brought against eRXSYS alleging that the Licensed Products furnished and used within the scope of this Agreement infringes any third party’s intellectual property rights (including, without limitation, any patent, copyright, trademark or trade secret right) arising under United States law; provided that RxNT is promptly notified of any claim or suit brought against eRXSYS in respect of which eRXSYS intends to invoke the provisions of this Section 11.1, although the failure to so notify RxNT shall not release RxNT from its obligations under this Section 11.1 unless RxNT shall have been materially prejudiced by such failure. RxNT shall be responsible for the defense of any such action, and shall provide and keep eRXSYS fully informed on a current basis of RxNT’s defense and/or settlement of such claim or suit. eRXSYS shall reasonably cooperate in the defense of such claim or suit and shall have the right, but no obligation, to participate in the defense thereof at eRXSYS’s expense. 

 

             11.2   Section 11.1 Exceptions. The indemnity obligations set forth in Section 11.1 above shall not extend to any claims of infringement resulting from, arising out of or related to (i) a modification of the Licensed Products by anyone other than RxNT without RxNT’s prior written consent (as provided in Section 3.2 above) if such infringement would not have arisen but for such modifications; (ii) a combination with any third party software or hardware where the infringement would not have occurred through the use of the Licensed Products alone; or (iii) use of a version of the Licensed Products other than the then-current version if infringement would have been avoided with the use of the then-current version, provided that RxNT had made such then-current version available for use by eRXSYS and eRXSYS Customers prior to the date of alleged infringement, at no cost to eRXSYS and eRXSYS Customers. 

 

              11.3   Indemnification for Improvements. In the event that one of the Parties makes any Improvements (as provided in Section 3.2 above) (the "Improving Party"), then the Improving Party agrees at its expense to defend and indemnify the non-Improving Party for damages and reasonable costs incurred in 

 

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any suit, claim or proceeding brought against the non-Improving Party alleging that the Improvements furnished and used within the scope of this Agreement infringes any third party’s intellectual property rights (including, without limitation, any patent, copyright, trademark or trade secret right) arising under United States law; provided that the Improving Party is promptly notified of any claim or suit brought against the non-Improving Party in respect of which the non-Improving Party intends to invoke the provisions of this Section 11.3, although the failure to so notify the Improving Party shall not release the Improving Party from its obligations under this Section 11.3 unless the Improving Party shall have been materially prejudiced by such failure. The Improving Party shall be responsible for the defense of any such action, and shall provide and keep the non-Improving Party fully informed on a current basis of the Improving Party’s defense and/or settlement of such claim or suit. The non-Improving Party shall reasonably cooperate in the defense of such claim or suit and shall have the right, but no obligation, to participate in the defense thereof at the non-Improving Party’s expense. 

 

               11.4   In the event that the use of the Licensed Products by eRXSYS is enjoined or, in the event that RxNT desires to minimize its liabilities hereunder, RxNT may at its option and expense (i) substitute a fully equivalent non-infringing version of the Licensed Products, (ii) modify the infringing item so that it no longer infringes but remains functionally equivalent, or (iii) obtain for eRXSYS, the right to continue use of such item. THE FOREGOING STATES THE ENTIRE LIABILITY OF RxNT AND eRXSYS’S SOLE AND EXCLUSIVE REMEDY FOR INFRINGEMENT OF PATENT, TRADEMARK COPYRIGHT OR OTHER PROPRIETARY RIGHTS. 

 

                11.5   Indemnity by eRXSYS. eRXSYS agrees to indemnify and hold RxNT harmless from any claim or damages made against RxNT as a result of the negligence, misrepresentation, or error or omission on the part of eRXSYS or representatives of eRXSYS. eRXSYS shall be solely responsible for any claims, warranties or representations made by eRXSYS or eRXSYS’s employees or agents that differ from the warranty provided by RxNT to eRXSYS.

 

                11.6   Indemnity by RxNT. RxNT agrees to indemnify and hold eRXSYS harmless from any claim or damages made against eRXSYS as a result of the negligence, misrepresentation, or error or omission on the part of RxNT or representatives of RxNT. RxNT shall be solely responsible for any claims, warranties or representations made by RxNT or RxNT’s employees or agents that differ from the warranty provided by eRXSYS to RxNT. 

 

                11.7   Limitation of Liability. Except for damages incurred by third party customers of eRXSYS and claimed against eRXSYS as a direct result of an infringement described in Section 11.1 above, NEITHER PARTY SHALL BE LIABLE FOR INDIRECT, SPECIAL, CONSEQUENTIAL OR PUNITIVE DAMAGES (INCLUDING LOSS OF INCOME, PROFITS OR GOODWILL) ARISING UNDER OR IN RELATION TO THIS AGREEMENT WHETHER BASED ON AN ACTION OR CLAIM IN CONTRACT, EQUITY, NEGLIGENCE, INTENDED CONDUCT, TORT OR OTHERWISE AND EACH PARTY HEREBY WAIVES ANY CLAIMS WITH RESPECT THERETO. IN CONNECTION WITH THE CONDUCT OF ANY LITIGATION WITH THIRD PARTIES RELATING TO ANY LIABILITY OF ONE PARTY TO THE OTHER OR TO SUCH THIRD PARTIES, THE ONE PARTY SHALL HAVE ALL RIGHTS (INCLUDING THE RIGHT TO ACCEPT OR REJECT SETTLEMENT OFFERS AND TO PARTICIPATE IN SUCH LITIGATION) WHICH ARE APPROPRIATE TO ITS POTENTIAL RESPONSIBILITIES OR LIABILITIES. 

 

                                                                                       XII.     PROPRIETARY INFORMATION 

 

During the period from the date of disclosure until five (5) years after the termination of this Agreement, RxNT and eRXSYS, respectively, will treat and maintain the proprietary business, technical, patent prosecution and other proprietary information, to include the documentation and comments communicated between RxNT and eRXSYS (collectively, the "Proprietary Information") of the other Party in confidence (using at least the same degree of care as the recipient uses to protect its own Proprietary 

 

 

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Information of a like nature) and only use such Proprietary Information in furtherance of this Agreement and the transactions and matters contemplated herein. Notwithstanding the foregoing, RxNT and eRXSYS may disclose Proprietary Information of the other Party to its employees, agents, consultants, contractors and permitted sublicensees, provided that each such person is bound by a like duty of confidentiality and restriction on use. 

 

                12.2   In order to be considered Proprietary Information, proprietary information must be labeled or marked confidential or proprietary by the disclosing Party, or if communicated orally, must be followed-up in writing within thirty (30) days after disclosure and labeled as confidential or proprietary. The human-readable source code version of the Licensed Products, along with all other nonpublic technical and design information contained in or relating to the Licensed Product is hereby deemed the Proprietary Information of RxNT. The receiving Party shall not remove any proprietary or other legal notices from the Proprietary Information of the disclosing Party. 

 

                 12.3   Exception. Neither Party shall not be liable for disclosure or use of any data or information which (i) was in the public domain at the time it was disclosed or falls within the public domain, except through the fault of the receiving Party; (ii) was known to receiving Party at the time of disclosure, which knowledge receiving Party shall have the burden of establishing by clear and convincing evidence; (iii) was disclosed to third parties after written approval of disclosing Party, specifically authorizing such disclosure; (iv) becomes known to receiving Party from a source other than disclosing Party without breach by the disclosing party; or (v) was independently developed by receiving Party without the benefit of confidential information received from disclosing Party, which independent development the receiving party shall have the burden of establishing by clear and convincing evidence. 

 

                                                                                         XIII.   DISCLAIMER OF WARRANTIES 

 

                 13.1   NEITHER RxNT NOR eRXSYS MAKE ANY WARRANTIES WITH RESPECT TO THE SUBJECT MATTER OF THIS AGREEMENT OTHER THAN AS EXPRESSLY SET FORTH HEREIN AND EACH PARTY EXPRESSLY DISCLAIMS ANY IMPLIED WARRANTIES, INCLUDING WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE. 

 

                 13.2   Nothing in this Agreement shall be construed as a warranty or representation by either party hereto (a) as to the validity, enforceability or scope of any patent, design patent or utility mode; (b) that any manufacture, sale, lease, import, use or other disposition of the RxNT Technology or Licensed Products will be free from infringement of any intellectual property right of third parties. 

 

                 13.3   UNLESS THIS AGREEMENT PROVIDES OTHERWISE, UNDER NO CIRCUMSTANCES AND IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY FOR CONSEQUENTIAL, INCIDENTAL, PUNITIVE OR EXEMPLARY DAMAGES, REGARDLESS OF THE ACTIONS OR CONDUCT GIVING RISE TO SUCH PARTY’S CLAIM FOR SUCH DAMAGES. 

 

                                                                                                 XIV.   SOURCE CODE ESCROW. 

 

                 14.1   Addition to Escrow Account . Within sixty (60) days after the execution of this Agreement, RxNT will add eRXSYS as a beneficiary of its source code escrow account. RxNT shall maintain the current version of the Licensed Products on deposit with Raffa and Associates, P.C. [with offices in Washington D.C. (202) 955-6700], its escrow agent, for use when, and if, permitted under this Section 14. 

 

                 14.2   Release Conditions . eRXSYS shall have the right to receive the escrowed source code only if the release conditions described in this Section are satisfied. A release of such escrowed source code will take place only if RxNT permanently ceases business in the ordinary course. 

 

 

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                14.3   License . Subject to the terms and conditions of this Agreement, RxNT hereby grants to eRXSYS a personal, non-exclusive, nontransferable, nonassignable license, without the right to sublicense, solely to use and modify the escrowed source code for the Licensed Products for the sole purpose of supporting and maintaining the then-current version of the Licensed Products exclusively to the extent necessary for eRXSYS to fulfill its obligations to provide the Services to End Users ; provided, however, that Customer covenants not to exercise such license if, when and until a release of such materials occurs pursuant to such source code escrow agreement. 

 

               14.4   Costs and Expense . eRXSYS shall pay the costs and expenses associated with adding and maintaining eRXSYS as a beneficiary under RxNT’s source code escrow account. 

 

                                                                                           XV.   GENERAL PROVISIONS 

 

               15.1   This Agreement shall be binding upon and inure to the benefit of RxNT and eRXSYS and their respective permitted successors and permitted assigns. Neither Party may assign this Agreement or any of its rights or obligations hereunder, whether by operation of law or otherwise, without the prior written consent of the other party, which consent may not be unreasonably withheld; provided, however, that either Party may assign this Agreement to any purchaser of all or substantially all of the assets of such Party or to any entity which acquires such Party in a merger or consolidation whereby such Party is not the surviving entity, without the consent of the other Party. Notwithstanding the foregoing, no Party may assign this Agreement to any purchaser or acquiring entity that is an Affiliate of such Party, without the prior written consent of the other Party. Any permitted assignment of this Agreement by either Party shall not relieve or release such Party from any of its duties or obligations under this Agreement. Each and every permitted successor and permitted assign to the interests of either Party to this Agreement shall hold such interests subject to the terms, conditions and provisions of this Agreement. In the event that this agreement is assigned by RxNT to any purchaser of all or substantially all of the assets of RxNT or to any entity which acquires RxNT in a merger or consolidation whereby RxNT is not the surviving entity (each a "RxNT Successor") such Rx NT successor shall be obligated to provide written notice of its intent not to renew any license term as provided in Section 9.1 above. 

 

              15.2   Except as otherwise provided for in this Agreement, all disputes, claims and controversies between the Parties concerning this Agreement shall be submitted to arbitration before a panel of three arbitrators who shall apply applicable state and U.S. federal law. The arbitration shall be conducted according to the commercial arbitration rules and the rules governing large, complex cases of the American Arbitration Association. A Party shall commence arbitration under this Section by submitting a concise statement of its claim and a demand for arbitration to the other Party and to the American Arbitration Association. The decision and award of the arbitrators shall be final and binding, and the award so rendered may be entered in any court having jurisdiction thereof. The arbitration shall be held in Annapolis, Maryland, United States of America, or such other location as mutually agreed to by the Parties. Nothing in this Agreement shall preclude a Party from seeking equitable or injunctive relief from a court on an emergency, temporary or expedited basis prior to the pendency of an arbitration proceeding; provided that the arbitration panel, once appointed, shall have the power and authority to modify or rescind such relief. 

 

              15.3   This Agreement, and the rights and obligations of the Parties hereunder, shall be construed and enforced in accordance with the laws of the State of Maryland, without regard to its choice of law principles. 

 

              15.4   All notices required or permitted under this Agreement shall be in writing and shall be delivered personally or sent by certified mail, return receipt requested, recognized overnight delivery service, recognized courier service or facsimile as follows: 

 

 

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                                               To RxNT:                            Network Technology, Inc. 637 Tebbston Drive Pasadena, Maryland 21122
                                                                                          Attn: Randy Boldyga, President/CEO 

                                                                                          Fax: 410-255-2223 

 

                                               To eRXSYS:                       eRXSYS, Inc. 18662 MacArthur Blvd., Suite 200-15  Irvine, CA 92612
                                                                                          Attn: A.J. LaSota, President Fax: (949) 440-3253 

 

 

Either Party may change its address or facsimile number by giving the other party notice of such change in accordance with this Section. A notice shall be deemed given (a) if by personal delivery, on the date of such delivery, (b) if by certified mail, on the date shown on the applicable return receipt, (c) if by courier service or overnight delivery service, on the day delivered, or (d) if by facsimile, on the date of transmission. 

 

               15.5   This Agreement constitutes the full and entire understanding and agreement between the Parties with regard to the subject matter hereof and supersedes all prior or contemporaneous proposals, oral or written, understandings, representations, conditions and all other communications between the Parties relating to such subject matter. Any other terms or conditions shall not be incorporated herein or be binding upon either Party unless expressly agreed to in writing by both Parties. This Agreement may not be amended without the prior written agreement of RxNT and eRXSYS. 

 

               15.6   If any provision of this Agreement is declared or found to be illegal, unenforceable or void, then both Parties shall be relieved of all obligations arising under such provision, but only to the extent that such provision is illegal, unenforceable or void. Further, this Agreement shall be deemed amended by modifying such provision to the extent necessary to make it legal and enforceable while preserving its intent or, if that is not possible, by substituting therefor another provision that is legal and enforceable and achieves the same intended objective. If the remainder of this Agreement shall not be affected by such illegal, unenforceable or void provision and is capable of substantial performance, then each provision not so affected shall be enforced to the extent permitted by law. 

 

              15.7   No delay or omission by either Party to exercise any right or power hereunder shall impair any right or power or be construed to be a waiver thereof. A waiver by either of the Parties of any of the covenants, conditions or agreements to be performed by the other Party or any breach thereof shall not be construed to be a waiver of any succeeding breach thereof or of any other covenant, condition or agreement contained herein. All remedies provided for in this Agreement shall be cumulative and in addition to and not in lieu of any other remedies available to either Party at law, in equity or otherwise, and may be enforced concurrently therewith or from time to time.

 

              15.8   Each Party is an independent contractor. No employment relationship is created by this Agreement. Each Party's employees and sub-contractors will be under the sole and exclusive direction and control of that Party, will not be considered employees of the other Party for any purpose, and are ineligible for any employee benefits from the other Party. Each Party shall comply with all relevant and applicable U.S. and international local, state, and federal requirements, ordinances, regulations, and laws pertaining to the performance of this agreement. 

 

             15.9   Captions, headings and titles in this Agreement are for reference purposes only and are neither part of this Agreement nor to be used for purposes of interpreting the Parties’ intent. 

 

             15.10   Either Party may publicly disclose the existence of this Agreement and its broad purpose, but not any of the specific terms thereof, except as required by law. 

 

 

	 	10 	 
	

 

             15.11   This Agreement and any amendments, waivers, consents or supplements hereto may be executed in any number of counterparts, and by different parties in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same agreement. Each such agreement shall become effective upon the execution of a counterpart hereof or thereof by each of the Parties. 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective the day and year first above written. 

 

                                                                                                   

                                                                                                        NETWORK TECHNOLOGY, INC. 

 

                                                                                                        Name:          Randy Boldyga 

                                                                                    

                                                                                                                            /s/ Randy Boldyga 

                                                                                                        Signature: ___________________________                 

 

                                                                                                        Title: President/CEO                                         

 

 

 

                                                                                                        eRXSYS, Inc. 

 

                                                                                                        Name:          A.J. LaSota 

 

                                                                                                                            /s/ A.J. LaSota 

                                                                                                        Signature: ___________________________

 

                                                                                                        Title: President                                                

 

 

 

	 	11 	 
	

	 

 

 

EXHIBIT A

LICENSED PRODUCTS

 

	Web-based electronic prescription writing product supported in the current Internet Explorer browser environment. Palm OS based product  supported in the current Palm OS environment               

	Third party drug database and drug reference

	Customized sigs creator for frequently prescribed drugs.

	Drug Utilization Review (DUR): drug-to-drug, drug-to-food, and duplicate therapy.

	RxNT proprietary pharmacy list (72,000 + pharmacies).

	Flexible print and send options: 

	        Print script through hot-sync to local printer.

	        Send script to pharmacy of choice through hot-syncing PDA or through wireless transmission (requires wireless PDA).

	RxNT to RxHub interface for patient specific formularies

	RxNT to RxHub interface for patient prescription plan eligibility

	RxNT to RxHub patient medication history based on Rx card 

 

	 	12EMPLOYMENT AGREEMENT
                              --------------------

     THIS EMPLOYMENT AGREEMENT (the "Agreement") made and entered into effective
as  of  the  7th  day  of  September,  1998,  by and between Eye Care Centers of
America,  Inc.,  a  Texas corporation (the "Company"), or its assigns, and Diana
Beaufils  ("Employee");

                              W I T N E S S E T H:
                              - - - - - - - - - -

     WHEREAS,  the  Company  desires  to  employ  executive  on  the  terms  and
conditions  set  forth  below;  and

     WHEREAS,  Employee desires to serve in the employment of the Company on the
terms  and  conditions  set  forth  below;

     NOW,  THEREFORE,  in  consideration  of the mutual covenants and agreements
hereinafter  set  forth,  the  parties  hereto  agree  as  follows:

1.     Employment.  The Company hereby employs Employee and Employee hereby
      -----------
accepts  such  employment,  upon  the  terms  and  conditions  set forth herein.

2.     Term.   The  term  of  this  Agreement  shall  commence  on  the  date
       ----
hereof  (the "Effective Date") and shall terminate on December 31, 2000, subject
to  earlier  termination  and  extension  as  hereinafter provided (the "Term").
Thereafter,  and  subject  to  Section  8(d), this Agreement shall automatically
renew  for successive one-year terms unless either party gives written notice of
its election not to renew at least thirty (30) days prior to the end of the then
current  period. In the event of such extension, all of the terms and conditions
of  this  Agreement  shall  remain  in  full  force  and  effect.

3.     Duties.  During  the  Term, Employee agrees that she will devote her
       ------
full  business  time,  attention and energies to the business of the Company and
its  subsidiaries  and  affiliates, if applicable, and to the performance of her
duties  hereunder,  and  shall  not engage in any other business, profession, or
occupation  for  compensation  or  otherwise.

4.     Compensation.
       ------------

     (a)     Base  Compensation.  During the term of this Agreement, the Company
             ------------------
shall  pay to Employee a salary at an annual rate of not less than $175,000 (the
"Base  Salary").  The  Base  Salary  shall be reviewed by the Board from time to
time as the Board deems appropriate. The Base Salary shall be payable during the
Term  in  substantially  equal installements not less frequently than monthly in
accordance  with  the  Company's  standard  payroll  policy  or  in  such  other
installments  as  the  parties  may  mutually  agree.

     (b)     Bonus.  Employee  shall  be  eligible  to earn a bonus based upon a
             -----
bonus  plan  to  be  determined from time to time by the Company for each fiscal
year.

<PAGE>

(c)     Reimbursement of Expenses; Automobile.  The Company shall reimburse
        -------------------------------------
Employee,  in  accordance with the Company's policy in effect from time to time,
for all reasonable travel, entertainment and other business expenses incurred by
Employee  in  the  performance  of  her  duties  and responsibilities hereunder.
Employee  will  receive  an  automobile  allowance of $500 per month and will be
reimbursed  for  her  reasonable  automobile  insurance  costs.

(d)     Stock Option Plan.  Employee shall be eligible to participate in the Eye
        -----------------
Care Centers of America, Inc.'s Executive Stock Option Plan, and her rights with
respect  to  options  granted  to her thereunder shall be governed solely by the
terms  of  such plan, as it may be in effect from time to time, and the terms of
the  Stock  Option  Agreement  evidencing  the  grant  of  such  options.

(e)     Net  Payments.  The  amount  of  any gross payments provided for in this
        -------------
Agreement  shall  be  paid  net  of  any  applicable  withholding required under
federal,  state  or  local  law.

5.     Benefits.  Employee  shall  be entitled to receive the benefits made
       --------
available  or  applicable  from  time  to  time to the employees of the Company;
provided,  however,  that  the  receipt  of  such  benefits by Employee shall be
subject  to  the Company's eligibility and enrollment requirements pertaining to
such  benefit  programs.

6.     Confidentiality  and  Competitive  Activities.
       ---------------------------------------------

(a)     Confidentiality.  Employee  acknowledges that during her employment
             ---------------
with  the  Company,  the  Company  has  and will continue to disclose to her the
confidential  affairs  and  proprietary  information  of  the  Company  and  its
subsidiaries and affiliates which is developed by and belongs to the Company and
its  subsidiaries and affiliates, including matters of a business nature such as
information  about  costs,  profits,  markets,  sales,  trade secrets, potential
patents  and  other  business  ideas, customer lists, supplier and vendor lists,
plans  for future developments and/or acquisitions, and information of any other
kind  not  known  within  the  optical  retail industry generally (collectively,
"Confidential  Matters").  Employee  further acknowledges that the Company would
not hire Employee or disclose these Confidential Matters to Employee without the
promises  made  by  Employee  in  this  Section  6.  In  light of the foregoing,
Employee  agrees:

(i)     To  keep secret all Confidential Matters of the Company and of
any  subsidiaries  and  affiliates  of  the Company, and not to disclose them to
anyone  outside  of  the Company or its subsidiaries or affiliates, or otherwise
use  them or use her knowledge of them for her own benefit or for the benefit of
any  third party, including, without limitation, use of the trade secrets, trade
names or trademarks of the Company, either during or after the Term, except with
the  Company's  prior  written  consent;  and

(ii)     To  deliver promptly to the Company at the termination of the
Term,  or  at any time the Company may request, all memoranda, notices, records,
reports and other documents (and all copies thereof) relating to the business of
the Company or any of its subsidiaries or affiliates, including, but not limited
to,  Confidential Matters, which she may then possess or have under her control.

                                        2
<PAGE>

Notwithstanding  any  of the foregoing, the term "Confidential Matters" does not
include  information  which  ( ) is or becomes generally available to the public
other  than  as  a  result  of  any  disclosure  by Employee or (  ) Employee is
compelled  to  disclose by judicial or administrative process; provided, that in
the case of any such requirement or purported requirement Employee shall provide
written  notice to the Company prior to producing such information, which notice
shall  be  given at least ten (10) days prior to the producing such information,
if  practicable,  so  that  the  Company  may  seek  a protective order or other
appropriate  remedy.

(b)     Competitive  Activities.  Employee  expressly  recognizes  and
        -----------------------
acknowledges that the terms and condition of this Section 6(b) are reasonable as
to  time,  area  and  scope  of  restricted  activity,  necessary to protect the
legitimate  interests of the Company, and are not unduly burdensome to Employee.
For  a  period  commencing  on  the Effective Date and ending twelve (12) months
following  the effective date of a termination of Employee's employment (for any
reason  whatsoever other than termination by the Company without Cause or if the
Company  elects not to renew the Term as provided in Section 2 hereof), Employee
shall  not,  without  the written consent of the Company, directly or indirectly
(whether  for  compensation  or  otherwise),  alone  or  as  officer,  director,
stockholder (excepting not more than 1% stockholdings for investment purposes in
securities of publicly held and traded companies), partner, associate, employee,
agent, principal, trustee, salesman, consultant, capacity, take any action in or
participate  with  or  become  interested  in  or  associated with the companies
commonly  referred  to  as  Cole/Pearl, Lenscrafter or Walmart (or any successor
thereto).  (Such  activities  are  hereinafter  referred  to as the "Competitive
Activities").

(c)     Antisolicitation.  Employee  agrees  that  during  the Term of this
        ----------------
Agreement,  and for a period of two (2) years thereafter, she will not influence
or  attempt  to influence customers (including customers with respect to managed
care plans), vendors or suppliers of the Company or any of its present or future
direct or indirect subsidiaries or affiliates, either directly or indirectly, to
divert  their  business  from  the  Company  or  any  of  its direct or indirect
subsidiaries  or affiliates to any individual, partnership, firm, corporation or
other  entity  then  in  competition  with  the  business  of the Company or any
subsidiary  or  affiliate  of  the  Company; provided this prohibition shall not
apply  to  general  advertisements  in  newspaper  or  other  widely distributed
publications,  media,  or  mail,  whether  electronic  or  otherwise.

(d)     Soliciting  Employees.  Employee  agrees  that  during  the Term of this
        ---------------------
Agreement,  and for a period of two (2) years thereafter, she will not, directly
or  indirectly, contact or solicit to employ, or employ, any of the then current
or  past  employees of the Company or any subsidiary or affiliate of the Company
unless  such  person  shall  have  ceased to be employed by the Company and such
cessation  of  employment  shall have occurred at least twelve (12) months prior
thereto.

(e)     Comments  Regarding  Employer.  Employer  and Employee agree
        ------------------------------
that  during  Employee's  employment  and  following  Employee's separation from
employment  with  Employer,  Employee  will  not defame, disparage or in any way
malign  Employer,  its  officers,  directors  or  past  and present employees to
anyone, including but not limited to prospective employers, competitors, vendors
or  suppliers  to the employer, and current or former employees of the Employer.
Employer agrees that it will not defame, disparage or malign Employee in any way
to  any  third  party.

                                        3
<PAGE>

7.     Remedies  for  Breach.  In  addition  to  the  rights  and  remedies
       ---------------------
provided  in  Section  14, and without waiving the same if Employee breaches, or
threatens  to breach, any of the provisions of Section 6, the Company shall have
the  following  rights  and  remedies,  in addition to any others, each of which
shall  be  independent  of  the  other  and  severally  enforceable:

      (i)     The right and remedy to have such provisions specifically enforced
by  any  court  having  equity  jurisdiction together with an accounting for any
benefit  or  gain  by  Employee  in  connection  with any such breach.  Employee
specifically acknowledges and agrees that any breach or threatened breach of the
provisions  of  Section  6 will cause irreparable injury to the Company and that
money  damages  will  not  provide  an  adequate  remedy  to  the Company.  Such
injunction shall be available without the posting of any bond or other security.

     (ii)     The  right  and  remedy to require Employee to account for and pay
over  to  the Company all compensation, profits, monies, accruals, increments or
other  benefits  (hereinafter  collectively the "Benefits") derived or received,
directly or indirectly, by Employee as a result of any transactions constituting
a  breach  of  any  of  the provisions of Section 6, Employee hereby agreeing to
account  for  and  pay  over  the  Benefits  to  the  Company.

     (iii)     The  right to terminate Employee's employment pursuant to Section
8(c).

     (iv)     Upon  discovery  by  the  Company  of  a  breach  or immediate and
material  threatened  breach  of  Section  6,  the  right to immediately suspend
payments  to  Employee  under  Section  8,  pending a resolution of the dispute.

     If  any covenant contained in Section 6 or any portion thereof is hereafter
construed  to  be  invalid  or  unenforceable,  the  same  shall  not affect the
remainder  of  the covenant or covenants contained therein, which shall be given
full  effect,  without  regard  to  the  invalid  portions, and any court having
jurisdiction  shall  reform  the  covenant  to the extent necessary to cause the
limitations  contained  therein  as  to  time,  geographical  area  and scope of
activity to be restrained to be reasonable and to impose a restraint that is not
greater  than  necessary  to protect the goodwill and other business interest of
the  Company and to enforce the covenant as reformed.  The parties hereto intend
to  and hereby confer jurisdiction to enforce the covenants contained in Section
6 upon the courts of any state or other jurisdiction in which any alleged breach
of any such covenant occurs.  If the courts of any of one or more of such states
or  other  jurisdictions  shall  hold  such  covenants not wholly enforceable by
reason  of  the  scope  thereof or otherwise, it is the intention of the parties
hereto  that such determination not bar or in any way affect the Company's right
to  the relief provided above in the courts of any other states or jurisdictions
as  to  breaches  of  such  covenants  in  such  other  respective  states  or
jurisdictions,  and  the  above  covenants  as  they  relate  to  each  state or
jurisdiction  being,  for  this  purpose, severable into diverse and independent
covenants.

     8.     Termination  of  Agreement.
            --------------------------

     (a)     Death.  This Agreement shall automatically terminate upon the death
             -----
of Employee.  During the Term, if Employee's employment is terminated due to her
death,  Employee's estate shall be entitled to receive the Base Salary set forth
in  Section  4  accrued through the date of death; provided, however, Employee's
estate shall not be entitled to any

                                        4
<PAGE>

bonus  payments  (except  as otherwise provided in the applicable bonus plan) or
any  other  benefits  (except  as  provided  by  law).

(b)     Disability.  If  Employee  is  unable  to  perform  her services by
        ----------
reason  of  mental  or  physical Disability (as herein defined), the Company may
terminate  this Agreement at any time. Upon termination of Employee's employment
due  to  Disability,  Employee  shall be entitled to receive the Base Salary set
forth in Section 4 accrued through the date on which Employee is  first eligible
to  receive  payment  of disability benefits under the employee benefit plans as
then  in  effect, and if no such plan is in effect, through the month ending one
hundred  eightly  (180) days after onset of Disability and Employee shall not be
entitled  to  any bonus payments (except as otherwise provided in the applicable
bonus  plan)  or  any  other  benefits  (except  as  provided by law).  The term
"Disability"  shall  mean  an  infirmity preventing Employee from performing her
duties  for  a  period  of  more  than  three  (3)  consecutive  months where no
reasonable  accommodation is available or where a reasonable accommodation would
create  an undue burden on the Company.  Any question as to the existence of the
Disability  of  Employee as to which Employee and the Company cannot agree shall
be  determined  in  writing  by  a  qualified  independent  physician  mutually
acceptable  to Employee and the Company.  If the Employee and the Company cannot
agree  as  to  a  qualified  independent  physician,  each  shall appoint such a
physician  and  those  two  physicians  shall select a third who shall make such
determination  in  writing.  The  determination of Disability made in writing to
the  Company  and Employee shall be final and conclusive for all purposes of the
Agreement.

(c)     Termination For Cause.  The Company may terminate this Agreement at
        ---------------------
any  time  for  "Cause"  in  accordance  with  the  procedures  provided  below.
Termination  of  this  Agreement for "Cause" shall mean termination upon (i) the
breach  of  any  material  provision of this Agreement by Employee which has not
been  rectified  or  cured  within  30  days  after notice by the Company to the
Employee  containing  in  reasonably specific detail the violation or breach and
the  necessary  corrective  action  to rectify or cure such violation or breach,
(ii)  commission  of an act punishable by imprisonment, (iii) willful failure to
substantially  perform  his duties hereunder (other than as a result of total or
partial  incapacity  due  to  physical  or  mental  illness)  which has not been
rectified  or  cured  within 30 days after notice by the Company to the Employee
containing in reasonably specific detail the acts or omissions complained of and
the necessary corrective action to rectify or cure the matters set forth in such
notice;  provided,  however, if the actions or omissions that are the subject of
such notice are substantially similar to acts or omissions with respect to which
the Employee has received notice hereunder within the prior 12 months and had an
opportunity  to  cure  or  rectify,  the  Employee shall not be entitled to such
notice and opportunity to cure, (iv) the engaging by Employee in conduct that is
materially injurious to the Company, monetarily or otherwise, including, without
limitation,  embezzlement,  fraud,  theft,  dishonesty,  misfeasance,
insubordination,  malfeasance,  and  neglect  of  duties,  (v)  violation of the
Company's  code  of  conduct or any material violation or repeated violations by
Employee  of  the other policies and procedures promulgated from time to time by
the Company, or (vi) current alcohol or drug abuse by Employee.  In the event of
termination  of  Employee's  employment for Cause, Employee shall be entitled to
receive  only the Base Salary set forth in Section 4 accrued through the date of
termination  and  she  shall  not  be  entitled  to  any bonus payments or other
benefits  (except  as  provided  by  law).

(d)     Other  Termination  by the Company.  The Company may terminate this
        ----------------------------------
Agreement  at  any time without "Cause" by providing written notice to Employee.
If  the

                                        5
<PAGE>

Company  terminates  this  Agreement at any time without Cause (i.e., other than
pursuant  to Section 8(b) or 8(c) above), or the Company elects not to renew the
Term as provided in Section 2 hereof, the Company shall continue to pay Employee
his Base Salary for a period of nine-months following the date of termination of
employment,  the timing and manner of such payments to be in accordance with the
salary  payment arrangements in effect at the time of such termination. Employee
shall be required to comply with Section 6. It shall be a condition precedent of
payment  to  Employee of such continued payments pursuant to this subsection (d)
that  the  Employee  execute a full and complete release of the Company, each of
its  subsidiaries,  affiliates  and  their  respective  past, present and future
officers, directors, employees, consultants, attorneys, agents and shareholders,
in  form  and  substance  reasonably  acceptable  to  the Company, of any claims
Employee  may  have  against  any  of them, to the extent such claims arise from
Employee's employment hereunder. Notwithstanding any provision in this Agreement
to  the  contrary,  the  Company's obligations to make payments pursuant to this
Section  8(d) shall immediately terminate in the event that the Employee engages
in any of the Competitive Activities (even if Section 6(b) is not applicable due
to  termination  of  employment  without  Cause).

(e)     Termination  by  Employee.  Employee  may  terminate this Agreement
        -------------------------
upon thirty (30) days prior written notice to the Company.  Termination shall be
effective  at  the  expiration  of  the  notice  period.  All obligations of the
Company  under this Agreement shall end on the effective date of termination and
the  Company  shall have no further obligations under this Agreement, including,
but  not  limited  to  payment of salary, bonuses or any similar compensation or
benefits.  Notwithstanding  the notice provided by Employee, the Company, in its
sole  discretion,  may  choose to accept Employee's resignation immediately.  In
that  event,  the  Company's only obligation to Employee will be to pay the Base
Salary  Employee  would  have  received  during  the  notice  period.

(f)     Mitigation.  Employee  shall not be required to mitigate the amount
        ----------
of  any payment or benefit to be provided pursuant to Section 8(d) ("Severance")
by  seeking  other  employment.  However,  anything  in  this  Agreement
notwithstanding,  if Employee provides services for other than de minimus pay to
anyone  other  than the Company or any of its subsidiaries or affiliates ("Third
Party  Services")  during a period in which she is receiving such Severance (the
"Severance Period"), the amount of Severance to be paid to Employee with respect
to  such  Severance  Period  shall, beginning on the date such payment for Third
Party  Services  is  received by employee, be reduced by the lesser of (i) fifty
percent  (50%)  of  such  Severance payment, or (ii) fifty percent (50%) of such
payment  for  Third  Party  Services  rendered.

9.     Effect  of  Termination.  Upon  the  termination  of this Agreement,
       -----------------------
whether  by  the  expiration  of  the Term specified in Section 2 or pursuant to
Section  8, the rights of Employee which shall have accrued prior to the date of
such  termination  shall  not  be  affected  in  any way.  Except as provided in
Section  8(d),  Employee  shall  not  have  any rights which have not previously
accrued  upon  termination  of  this  Agreement.

10.     Communications.  All  notices  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) when received
by  the addressee, if sent by a nationally recognized overnight delivery service
(receipt  requested),  in  each  case  to  the

                                        6
<PAGE>

respective addresses set forth below, or to such other addresses as either party
may  have  furnished to the other in writing in accordance herewith, except that
notice  of  a  change of address shall be effective only upon actual receipt; to
the  Company:  the Company, at c/o Eye Care Centers of America, Inc., 11103 West
Avenue,  San  Antonio,  Texas  78213-1392, for the attention of Bernard Andrews,
President;  and  to  Employee:  Diana Beaufils, 670 Brewer Road, Van Alstyne, TX
75495.

11.     Amendments  or  Additions.  No  amendments  or  additions  to  this
        -------------------------
Agreement  shall  be binding unless in writing and signed by all parties hereto.

12.     Binding  Effect;  Assignability.  This  Agreement  shall be binding
        -------------------------------
upon,  and  shall inure to the benefit of, Employee; the obligations of Employee
hereunder are personal and this Agreement may not be assigned by Employee.  This
Agreement  is  completely assignable by the Company without notice to or consent
of  Employee.  This  Agreement  shall  be  binding  upon, and shall inure to the
benefit  of,  the  Company  and  shall also bind and inure to the benefit of any
successor  of  the  Company by merger or consolidation or any assignee of all or
substantially  all  of  its  properties.

13.     Headings;  References.  The  headings  used  in  this Agreement are
        ---------------------
included  solely  for convenience and shall not affect, or be used in connection
with, the interpretation of this Agreement.  References to a "Section" when used
without  further  attribution  shall  refer  to  the particular sections of this
Agreement.

14.     Binding  Arbitration.  Subject  to  the rights of any party to seek
        ---------------------
injunctive  relief pursuant to Section 7 above and without waiving the same, the
parties  agree  that  all disputes, controversies or claims that may arise among
them  (including their agents and employees), arising out of or relating to this
Agreement,  or the breach, termination or invalidity thereof, shall be submitted
to, and determined by, binding arbitration.  Such arbitration shall be conducted
before  a single arbitrator pursuant to the Commercial Arbitration Rules then in
effect  of the American Arbitration Association, except to the extent such rules
are  inconsistent  with this Section 14.  The arbitrator shall apply the laws of
the  State of Texas (without regard to conflict of law rules) in determining the
substance  of  the  dispute,  controversy  or claim and shall decide the same in
accordance  with  applicable  usages  and  terms  of  trade.  The  fees  of  the
arbitration  initially  shall  be  paid  one-half by the Company and one-half by
Employee;  provided,  however, that the prevailing party in any such arbitration
shall  be entitled to recover its reasonable attorneys' fees, costs and expenses
incurred  in  connection  with  the  arbitration.  Any  award  pursuant  to such
arbitration  shall  be  final  and binding upon the parties, and judgment on the
award  may  be entered in any federal or state court sitting in any court having
jurisdiction.  The  obligations  set  forth in this Section 14 shall survive the
termination  of  this  Agreement.  THE  COMPANY  AND EMPLOYEE EACH KNOWINGLY AND
VOLUNTARILY GIVE UP ANY RIGHT TO A TRIAL BY JURY IN CONNECTION WITH ANY DISPUTE,
CLAIM  OR  CONTROVERSY  WHICH  MAY  ARISE  BETWEEN  THEM.

     15.     Miscellaneous.  No  provision  of  this  Agreement may be modified,
             -------------
waived  or discharged unless such waiver, modification or discharge is agreed to
in  writing  and  signed  by  Employee  and  such officer as may be specifically
designated  by  the  Board.  No waiver by either party hereto at any time of any
breach  by  the  other  party  hereto  of,  or compliance with, any condition or
provision  of this Agreement to be performed by such other party shall be deemed
a

                                        7
<PAGE>

waiver  of  similar or dissimilar provisions or conditions at the same or at any
prior  or subsequent time.  No agreements or representations, oral or otherwise,
express  or implied, with respect to the subject matter hereof have been made by
either party which are not expressly set forth in this Agreement.  The validity,
interpretation, construction and performance of this Agreement shall be governed
by  the  laws  of  the  State  of  Texas  without regard to its conflicts of law
principles.

     16.     Surviving Provisions.  The obligations of the Company under Section
             --------------------
8,  of  Employee  under  Section  6,  and of both the Company and Employee under
Section  14  shall  survive  the  expiration  of  the  Term  of  this Agreement.

     17.     Entire  Agreement.  This  Agreement  shall  constitute  the  entire
             -----------------
agreement  between  the  parties  superseding all prior agreements and all other
negotiations, letter of intent, memoranda of understandings, and representations
(if any) made by and among such parties, and may not be modified or amended, and
no  waiver shall be effective, unless by written document signed by both parties
hereto.  Notwithstanding its foregoing, the parties agree that the provisions of
Section  6  shall be in addition to, and shall not supersede, similar provisions
contained  in  the Stock Purchase Agreement.  The Company and Employee have each
had  an  opportunity to consult with counsel of their choice regarding the terms
and  conditions  of  this  Agreement,  and  each understands the consequences of
entering  into  and  complying  with  the terms and conditions of the Agreement.

     18.     Pronouns.  In this Agreement, the use of any gender shall be deemed
             --------
to  include  all  genders, and the use of the singular shall include the plural,
wherever  it  appears  appropriate  from  the  context.

     19.     Enforcement  Costs.  If  any  legal  action  or  other  proceeding,
             ------------------
including  arbitration,  is  brought  for  the enforcement of this Agreement, or
because  of  an  alleged  dispute,  breach,  default  or  misrepresentation  in
connection  with  any  provisions  of  this  Agreement,  the prevailing party or
parties shall be entitled to recover reasonable attorneys' fees, court costs and
all  expenses  even  if  not  taxable as court costs, incurred in that action or
proceeding,  in  addition to any other relief to which such party or parties may
be  entitled.

     20.     Severability.  The  provisions  of  this  Agreement shall be deemed
             ------------
severable  and  the  invalidity  or  unenforceability of any provision shall not
affect  the  validity  or enforceability of the other provisions hereof.  Except
that  to  the  extent  any  court  determines  that  Section  6  is  invalid  or
unenforceable,  in  this  event  the  Company  shall  be relieved of its payment
obligations  to  Employee  under  Section  8.

     21.     Indemnification.  Employee shall be entitled to indemnification, in
             ---------------
has  capacity  as an officer of the Company in accordance with the provisions of
the  Company's  certificate of incorporation, bylaws or actions of the Board, as
the same shall be in effect from time to time, and Employee shall be entitled to
the  protection  of  any  insurance  policies  the Company may elect to maintain
generally  for  the  benefit  of  its  officers  or  directors.

                                        8
<PAGE>

     22.     Counterparts.  This  Agreement  may  be  executed  in  one  or more
             ------------
counterparts,  each of which shall be deemed to be an original and all of which,
taken  together,  shall  constitute  one  and  the  same  instrument.

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

                                               Eye Care Centers of America, Inc.

                                                 By: ___________________________
                                                              Bernard W. Andrews
                                              Chairman & Chief Executive Officer

                                                                       EMPLOYEE:

                                                 _______________________________
                                                                  Diana Beaufils

                                        9
<PAGE>

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