Document:

ex103.htm

Schedule to Product Sales Representative Agreement -

@MyWork-CM

 

This Schedule forms part of the Product Sales Representative Agreement between Advanced Credit Technologies, Inc. ("Representative") and InterTech Systems. LLC d/b/a Contata Solutions L.L.C ("Contata") signed June  __ 2010.

 

Product: @MyWork-CM

This is a customized version of Contata's @MyWork application, featuring tight integration with Representative's Credit Management ("CM") application.

 

The integration with Representative's Credit Management application will be realized in one or more of following ways:

· Provide a link to go to CM application portal

· Provide auto-login from within the @MyWork application into CM portal

· Provide updates and other information from CM portal directly into @MyWork application

 

Contata will own all intellectual property rights to @MyWork-CM. Specifically, Contata owns the @MyWork application and shall own all integration code developed by it and incorporated into @MyWork-CM, the customized version of Contata's @MyWork application.

 

Representative shall continue to own all of its intellectual property rights in its Credit Management application, and Contata makes no claim thereto.

 

Terms and Compensation to Representative:

	
1.  

	
Pricing: Contata and Representative will decide on general or per customer pricing for @MyWork-CM application

	
2.  

	
Contata Responsibilities: Contata will be responsible for:

 

o Ongoing maintenance, enhancements to the Product

o Preparation of marketing collateral for the Product

o Hosting and support of the Product as a web-based on-demand Service

o All costs associated with the above responsibilities

o Customer support as defined below

 

3.      Representative Responsibilities: Representative will be responsible for:

 

o Direct sales to customers

o All direct and indirect costs associated with sales efforts

o Any marketing/sales and/or other collateral materials over and above those provided by Contata

 

  

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4.   

	
Revenue Share: Contata will retain 50% of Net Revenues and will pay Representative an amount equal to 50% of Net Revenues. Net Revenues means the amounts billed and received by Contata under contracts solicited by Representative for use of the Product less Refunds and credit card fees and charges.

	
5.  

	
Third Party Agents: For third party agents that have potential to bring in more than 500 user seats, Contata and Representative may agree to designate such agents as Volume Agents, and share up to 20% of Net Revenue from such seats. Volume Agent fees will be deducted from the Net Revenues before splitting between Representative and Contata.

 

Fees to any third parties not mutually designated by Contata and Representative as Volume Agents, will be borne by Representative out of its 50% split.

 

	
6.  

	
Minimum Revenue: Notwithstanding any of the foregoing, Contata will retain an amount each month not less than $8 per user of the Product, and the amounts payable to Representative shall be reduced to the extent that the remainder of Net Revenues in any month is less than 50% of total Net Revenues.

 

	
7.  

	
Payment: On or before the fifteenth day of each calendar month, Contata shall pay Representative the amounts due to Representative with respect to Net Revenues received in the previous calendar month. With each payment, Contata shall provide a summary statement of the calculation of the amounts due to Representative. Appropriate adjustments shall be made in subsequent months to take into account refunds of amounts included in Net Revenues in any prior month.

 

	
8.  

	
Support: Representative will provide initial training and ongoing first level support to licensees of Product. Contata will provide support to Representative on issues that have been diagnosed as technical problems and not user issues.

 

CONTATA:

InterTech Systems, LLC d/b/a Contata Solutions L.L.C.

900 2nd Ave S, #495

Minneapolis, MN 55402

Email:

 

By:  /s/ Pradeep Sinha

Name:     Pradeep Sinha

 

REPRESENTATIVE:

Advanced Credit Technologies, Inc. 1915 Plaza Drive #202

Eagan, MN 55122

By: /s/ Chris Jackson

Name:  Chris Jackson  

 

  

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PRODUCT SALES REPRESENTATIVE AGREEMENT

 

This Agreement is entered into as of June 17, 2010 between InterTech Systems,

 

LLC, a Minnesota limited liability c pany, dba Contata Solutions L.L.C. ("Contata") , and Advanced Credit Technologies, Inc. ("Representative").

 

The parties agree as follows:

 

1. Engagement and Duties.

 

Subject to the terms of this Agreement, Representative agrees to act as an independent sales representative to solicit contracts for the license of the Contata software products described on any attached Schedule ("Product").

 

Representative will use Representative's reasonable best efforts to identify potential customers for Products, promote the use of the Products by such potential customers, present proposals for the license of the Products and undertake such other activities as are appropriate leading to executed contracts. Representative shall coordinate solicitation activities with the Contata employee identified on the attached Schedule or such other person as may be designated from time to time.

 

All terms of any proposals and contracts, including pricing, shall be approved by Contata prior to submission to a potential customer. Representative agrees not to make any representations regarding the Products or Contata except those expressly authorized by Contata. All contracts solicited by Representative shall be submitted to Contata for acceptance or rejection, and Representative has no authority to enter into contracts on behalf of Contata.

 

2.   Compensation.

 

As consideration for Representative's services, Contata agrees to pay Representative the amounts set forth on the attached Schedule, at the times stated on the Schedule.

 

  3. Ownership of Intellectual Property; Confidentiality Obligations.  a. Intellectual Property

During the term of this Agreement, Representative may generate ideas, inventions, improvements, suggestions, copyrightable materials or other information of value to Contata ("Intellectual Property") which falls into one of two categories:

 

	
(1)  

	
Intellectual Property generated in connection with Representative's efforts under this Agreement;

 

	
(2)  

	
Intellectual Property not generated in connection with Representative's efforts under this Agreement;

All Intellectual Property described in subparagraph (1), whether made alone or in conjunction with others, shall be disclosed to and belong to Contata, and Representative agrees to assign and hereby does assign all of Representatives rights, title and interest in such Intellectual Property to Contata. Representative further agrees to render such assistance as Contata may require to perfect such assignment and to protect Contata's rights in such Intellectual Property in any manner decided at the sole discretion of Contata, including but not limited to obtaining patent protection. To the extent allowed under copyright law, copyrightable material described in subparagraph (1) shall be deemed to be a "work made for hire"; however, in the event any such copyrightable material is deemed not to be a "work made for hire", Representative agrees to assign, and hereby does assign all rights in and title to such copyrightable material to Contata. Representative will not disclose to Contata or use in connection with the services provided by Representative under this Agreement any Intellectual Property described in subparagraph (2) except as provided in the next paragraph.

 

Intellectual Property, including software, developed by Representative prior to entering this Agreement or developed outside of this Agreement, and not a direct result hereof, shall remain in Representative and shall not be used by Representative in the performance of this Agreement without the express written agreement of Contata. If any of such Intellectual Property, including software, is used, modified or provided to Contata by Representative to fulfill its obligations under this Agreement, Representative grants and Contata hereby accepts, a perpetual, worldwide, royalty-free, non-exclusive license to use such Intellectual Property. With respect to software, Contata's right to use under this license includes the right to use internally the software in object or source code form for any purpose, the right to make enhancements, modifications and derivatives of the software, and the right to sublicense and distribute the software, enhancements and derivatives.

 

  

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Contata agrees that Representative shall have the right to continue to use any tools, methods, concepts and techniques ("Tools") previously developed and used by Representative in the development of software deliverables under this Agreement, but which do not form part of such deliverables, except to the extent that Representative's Tools have been incorporated into the source code or architecture of a software deliverable and must be accessed to utilize the software deliverable as intended. If Representative's Tools are so incorporated into a deliverable under this Agreement, Representative grants Company a license to use the Tools as is necessary to utilize the deliverable, and title to Representative's Tools remains with Representative.

 

b. Confidentiality

 

As a result of this Agreement, Representative may obtain confidential information of Contata, of customers of Contata, or of third parties involved in joint undertakings with Contata, which Contata is under obligation to protect. Representative will not, during or after the term of this Agreement, use or divulge to others any of such confidential information unless authorized in writing to do so by Contata. Representative agrees to treat as confidential information and not to use or disclose to third parties any information provided by Contata which is marked or otherwise identified so as to indicate its confidential nature or information obtained by Representative during the term of this Agreement which under the circumstances Representative should reasonably know is being disclosed in confidence.

 

Upon termination of this Agreement, Representative agrees to return to Contata all materials and property furnished by Contata to Representative.

 

4. Non-Solicitation

 

During the term of this Agreement and for a period of two (2) years thereafter, Representative and Contata shall not directly or indirectly solicit any licensees of Product or any potential licensees of Product to whom Representative or Contata have made a written proposal.

 

For purposes of this Section 4:

	
–  

	
Solicit means making any contact with, directing any proposal to, or taking any other action for the purpose of entering into a business relationship outside the terms of this Agreement, with the licensee or potential licensee, directly or on behalf of a third party, involving any product or service that competes with the Product

	
–  

	
The term licensee will apply to specific division of use within a company/organization. Divisions not mentioned in proposals or licensing agreements are not subject to this Section 4.

 

5. Status of Representative as Independent Contractor.

 

Representative shall devote such time and effort as may be necessary to satisfactorily provides the services described in this Agreement. Representative may engage in other business activities, provided that such business activities do not interfere with Representative's duties under this Agreement, and provided Representative complies with its confidentiality and other obligations under this Agreement. Representative represents that Representative has disclosed to Contata the existence of any of Representative's activities which may conflict with Contata's competitive interests.

 

Representative shall be an independent contractor in the performance of this Agreement, and neither Representative nor any of its employees, shall be deemed an employee of Contata for any purpose whatsoever. Representative and Representative's employees, if any, shall not participate in any benefit programs for Contata employees, including without limitation health benefits, life insurance, pension or profit sharing plans and paid vacation and sick leave.

 

Representative specifically agrees to comply with all federal and state tax laws applicable to operation of a business such as Representative's, including without limitation, the reporting and payment of all applicable self-employment and income taxes, compliance with all employment tax requirements for employees of Representative and compliance with state unemployment and worker's compensation laws.

 

Representative shall have no power to act as an agent of Contata or bind Contata in any respect.

 

  

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6. Termination.

 

This Agreement may be terminated at any time by either party by giving written notice at least two (2) weeks in advance of the desired termination date. Termination of this Agreement shall not affect liabilities which have accrued prior to termination. In addition, the obligations of the parties which by their nature are continuing, including without limitation the obligations of the parties under Sections 3 and 4, shall survive termination.

 

7. Miscellaneous.

 

	
a.  

	
Entire Agreement. This Agreement sets forth the entire agreement of the parties with respect to the subject matter hereof, and supersedes all prior agreements. This Agreement may not be amended or modified in any manner except by an instrument in writing signed by the parties.

 

	
b.  

	
No Assignment. Representative shall not subcontract or assign any of Representative's rights or obligations hereunder without the prior express written consent of Contata, which may be given or withheld in the sole discretion of Contata.

 

	
c.  

	
Severability. The invalidity or unenforceability of one or more provisions of this Agreement shall not affect the validity or enforceability of any of the other provisions, and this Agreement shall be construed as if such invalid or unenforceable provisions were omitted.

 

	
d.  

	
Construction. This Agreement shall be deemed to have been entered into in, and shall be construed and enforced in accordance with the laws of, the State of Minnesota.

 

	
e.  

	
Waivers. The failure of any party to insist, in any one or more instances, upon the performance of any of the terms or conditions of this Agreement or to exercise any right shall not be construed as a waiver of the future performance of any such term or condition or the future exercise of such right.

 

	
f.  

	
Headings. The heading of the paragraphs used in this Agreement are included for convenience only and are not to be used in construing or interpreting this

Agreement.

 

	
g.  

	
Notices. Any notice to be given shall be sufficiently given when received. Notices may be sent by email and shall be deemed received the earlier of the time the party to be notified replies to the notice whether or not specifically acknowledging receipt or, absent proof of network failure preventing receipt, twenty four hours after sending. Notice which is mailed certified mail or sent by a recognized overnight express service shall be deemed received on the date indicated on the return receipt or proof of delivery provided by the express service. Notices shall be sent to the parties at the address set forth below or such other address as may be provided by notice appropriately given.

 

	
h.  

	
Additional Terms in Schedule. The attached Schedule may include additional terms or agreements of the parties. The attached Schedule and any additional terms or agreements form a part of this Agreement In case of conflict, the terms in the Schedule override those in the Agreement.

 

In Witness Whereof, the parties have signed this Agreement. CONTATA:

InterTech Systems, LLC d/b/a Contata Solutions L.L.C. 900 2nd Ave S, #495

Minneapolis, MN 55402

 

By:  /s/ Pradeep Sinha

 

REPRESENTATIVE:

Advanced Credit Technologies, Inc. 1915 Plaza Drive #202

Eagan, MN 55122

By: /s/ Chris Jackson

  

-5-ex10_1.htm

Exhibit 10.1

CITADEL SECURITY SOFTWARE INC.

AMENDMENT TO AGREEMENTS WITH STEVEN B. SOLOMON

This agreement (this “Agreement”) is made and entered into as of November 3, 2006, by and between Citadel Security Software Inc., a Delaware corporation (“Citadel”), and Steven B. Solomon (“Solomon”).

WHEREAS, Citadel, and certain of its subsidiaries, have entered into an Asset Purchase Agreement, dated as of October 2, 2006, with McAfee, Inc. and McAfee Security LLC (the “Asset Purchase Agreement”);

WHEREAS, in connection with the Asset Purchase Agreement and this Agreement, Solomon has entered into a non-competition agreement with McAfee dated as of October 2, 2006 (the “Non-Competition Agreement”);

WHEREAS, under:  (a) that certain Change of Control Agreement, dated as of December 23, 2005, between Citadel and Solomon and (b) that certain Employment Agreement, dated as of January 1, 2002, between Citadel and Solomon as amended by Amendment No. 1 to Employment Agreement, dated as of October 1, 2003, between Citadel and Solomon (collectively, the “Employment Agreements”), Solomon is entitled to receive certain payments in connection with the closing of the transactions contemplated by the Asset Purchase Agreement (the “Closing”);

WHEREAS, each of Citadel and Solomon agree to amend each of the Employment Agreements (and any similar agreements or arrangements) to provide that, contingent upon the occurrence of the Closing, Solomon will receive only the payments specified in this Agreement in connection with the Closing; and

WHEREAS, each of Citadel and Solomon agree that, contingent upon the occurrence of the Closing, Citadel shall issue to Solomon 3,650,000 shares of its common stock in exchange for the termination of all outstanding obligations ‘of Citadel under any agreements, plan or arrangements with Solomon to issue stock to Solomon upon the exercise of an option (“Stock Option Agreements”);

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements contained herein, and for other good and valuable consideration including the Non-Competition Agreement, the receipt and adequacy of which are hereby acknowledged, Citadel and Solomon hereby agree as follows:

1.             Amendment of Employment Arrangements.  Notwithstanding any terms contained therein to the contrary, each of the Employment Arrangements (as defined below) are hereby amended to provide that, in lieu of the payments to be received under the Employment Arrangements and in consideration of the Non-Competition Agreement, upon the Closing, Solomon shall be entitled to receive from Citadel, whether or not his employment with Citadel is terminated in connection with the Closing and notwithstanding any terms contained therein to the contrary, a single payment, in a lump sum, of $6,089,234 (which amount will not be grossed-up) to be promptly paid to Solomon by Citadel on the earlier to occur of:  (i) January 3, 2007 or (ii) the one month anniversary of the date on which the Closing occurs.  Except as set forth herein, effective on the Closing, Solomon agrees that he will not be entitled to any additional Severance Payment, Special Severance Payment, Gross-Up Payment, Gross-Up Underpayment, Termination upon Change of Control.  Amount, Bonus, or Option Exercise Gross-Up Payment or similar or other special payment or benefit under the Employment Arrangements as a result of or in connection with the Closing; provided however, that Solomon shall remain entitled to any payments or benefits under the Employment Arrangements that are not directly related to the proposed Closing (e.g., accrued bonuses, vacation pay, expense reimbursements, etc.).  For purposes of this Agreement, “Employment Arrangements” shall mean each of the Employment Agreements along with any other agreements or arrangements between Citadel and Solomon regarding employment, bonuses, severance, payments made upon a change of control of Citadel, tax gross-ups, benefits or similar agreements or arrangements, but shall not include any Stock Option Agreements or any agreements or arrangements pursuant to which Solomon has loaned money to Citadel.

  

 

  

2.             Stock Options.

(a)           Solomon hereby represents and warrants that, currently, he is entitled to receive 3,650,000 shares of Citadel’s common stock upon exercise of his rights under the Stock Option Agreements.  Solomon hereby agrees that he shall not exercise any of his rights to acquire shares of the common stock of Citadel pursuant to any Stock Option Agreement unless and until the Asset Purchase Agreement is terminated.

(b)           Provided the Closing occurs and effective as of the Closing:  (i) each Stock Option Agreement will terminate and be of no further force or effect, and (ii) effective date after the Closing, Citadel shall issue to Solomon 3,650,000 shares of its common stock.

3.             Post-Closing Employment.  After the Closing, Solomon has agreed to remain as an at-will employee of the Citadel to provide services during the wind down phase of Citadel’s operations after the Closing at his current salary (less applicable withholding), without any bonus or severance payments provided in the Employment Arrangements.

4.             Effect of this Agreement.

(a)           Nothing contained in this Agreement shall be deemed to limit Solomon’s rights in his capacity as a current stockholder of the Citadel including his right to receive distributions on his shares of Citadel’s common stock following the Closing or his rights in his capacity as a creditor of Citadel.

(b)           Except as expressly provided herein, this Agreement shall not be deemed to further modify or terminate any Employment Arrangement.

(c)           If the Asset Purchase Agreement is terminated in accordance with its terms or otherwise, this Agreement shall terminate in its entirety.

  

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5.             Other Provisions.

(a)           This Agreement shall inure to the benefit of and be binding upon (i) Citadel and its successors and assigns and (ii) Solomon and his heirs and legal representatives.

(b)           All notices and statements with respect to this Agreement shall be made or delivered as set forth in that certain Employment Agreement, dated as of January I, 2002, between Citadel and Solomon, as amended by, Amendment No. 1 to Employment Agreement, dated as of October 1, 2003, between Citadel and Solomon.

(c)           This Agreement sets forth the entire present agreement of the parties concerning the subjects covered herein; there are no promises, understandings, representations, or warranties of any kind concerning those subjects except as expressly set forth in this Agreement.

(d)           Any modification to this Agreement must be in writing and signed by all parties; any attempt to modify this Agreement, orally or in writing, not executed by all parties will be void.

(e)            If any provision of this Agreement, or its application to anyone or under any circumstances, is adjudicated to be invalid or unenforceable in any jurisdiction, such invalidity and unenforceability will not affect any other provision or application of this Agreement which can be given effect without the invalid or unenforceable provision or application and will not invalidate or render unenforceable such provision or application in any other jurisdiction.

(f)            This Agreement will be governed and interpreted under the laws of the United States of America and of the State of Texas as applied to contracts made and carried out entirely in Texas by residents of that state.

(g)           No failure on the part of any party to enforce any provisions of this Agreement will act as a waiver of the right to enforce that provision.

(h)           Section headings are for convenience only and shall not define or limit the provisions of this Agreement

(i)            This Agreement may be executed in several counterparts, each of which is an original.  A copy of this Agreement manually signed by one party and transmitted to the other party by FAX or in image form via email shall be deemed to have been executed and delivered by the signing party as though an original.  A photocopy of this Agreement shall be effective as an original for all purposes.

  

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(j)            Capitalized terms used by not defined herein shall have the meanings assigned to such terms in the Employment Agreements.

[SIGNATURE PAGE FOLLOWS]

 

  

4

  

IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement as of the date first above written.

CITADEL SECURITY SOFTWARE INC.

	
By: /s/ Richard Connelly

	
Name: Richard Connelly

	
Title: CFO

	  	  
	  	  
	
/s/ Steven B. Solomon

	  
	
Steven B. Solomon

 

 

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