Document:

uscc_ex1.htm

 

 Exhibit 10.23

 

Exclusive Cooperation Agreement

 

Between

 

Party A: Hangzhou Kunjiang Education Technology Co., Ltd.

 

And

 

Party B: Pingtan Lanhua Middle & High School

 

 

May 31, 2011

  

 

  

 

Exclusive Cooperation Agreement

 

This Exclusive Cooperation Agreement (this “Agreement”) is made and entered into by and between the following Parties on May 31, 2011 in Pingtan County, Fujiang Province, the People’s Republic of China (“China”):

 

(1) Party A,  a wholly foreign owned company duly established and existing under the laws of China, with its registered address at Gongshu District, Hangzhou City, Zhejiang Province(“Party A”); and

 

(2) Party B,  a private middle and high school duly established and existing under the law of China, with its registered address at North Gate Tancheng Town, Pintan County, Fuzhou City, Fujian Province (“Party B”).

 

 (Hereinafter referred as a “Party” individually and as the “Parties” collectively)

 

WHEREAS,

 

(1) Party A is a company specializing in education information consulting and development services.

 

(2) Party B is a secondary education institution (“School”).

 

(3) Party A agrees to provide Party B’s school with support  and assistance in its services for the School, and Party B agrees that Party C is to pay Party A service fees.

 

Now, therefore, through mutual discussions, the Parties have reached the following agreement:

 

1. Nature and Objective of Cooperation

 

The cooperation between the Parties is intended to utilize the Parties’ respective expertise and advantages to further promote Party B’s education services, expand their market share and develop new types of value-added education services.

 

2. Scope of Cooperation

 

2.1 Technical Services and Support

 

2.1.1 Party A will provide exclusive technical and market consulting services and support for Party B in connection with Party B’s School. Such services and support shall include without limitation:

 

(a) To lease computer devices and servers required by Party B’s school Party C;

(b) To grant Party C the license to use Party A’s software applications;

(c) To provide relevant sales and market consulting services;

(d) To provide system operation solutions and technical support;

(e) To provide training for technical personnel and technical consulting services.

(f)  When Party C needs cash flow, the relevant, the relevant costs under this agreement can be lend to Party B’s school as loan.

 

2.1.2 Party B  agrees to appoint Party A as its exclusive provider of technical services and market consulting services and to pay Party A for such services.

 

During the term of the cooperation, Party B shall be responsible for:

 

2.2.1 Maintaining the continued validity of the permits for the various distance education services, including without limitation, the all permits required for the operation of the School.

 

2.2.2 Completing and maintaining filings for computer and server network security.

 

2.2.3 Completing and maintaining filings for the School’s operations.

 

  

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2.2.4 Establishing the responsibility and supervisory mechanism for complying with Chinese laws in relation to the School and the rules and requirements formulated by various related operators.

 

2.2 Business Development

 

Subject to consultations with Party A, Party B will be responsible for developing the market, maintaining business relationships with various educational agencies, enterprises and other partners, and executing relevant necessary business agreements.

 

3. Service Fee and Expenses

 

3.1 Service Fee

 

3.2 The Parties acknowledge that Party B shall pay Party A the service fee equivalent to (i) if Party B pays income tax, then service fee amount should be 65% of Party B  pre-tax profits. (ii) if Party Bl doesn’t pay income tax, then the service fee amount shall be 90% of its net income. Party A shall have the right to adjust such percentage at any time at its sole discretion according to the actual operation of  Party B.

 

3.3 Settlement and Payment Method

 

The Parties acknowledge that the accounting shall be conducted for Party B on a quarterly basis. Within 10 business days after the end of each quarter, Party B shall pay the service fee to Party A’s designated bank account as instructed by Party A in a written notice. The Parties may also separately agree on the timing of payment in writing. Upon receipt of Party B’s payment of the service fee, Party A shall produce relevant commercial invoices to Party B according to law.

 

3.4 Costs and Expenses

 

Unless otherwise agreed by the Parties in writing, the costs and expenses incurred as a result of the performance of this Agreement shall be borne by the Parties respectively.

 

4. Representations and Warranties

 

4.1 Each Party represents and warrants that, as of the date of this Agreement,

 

4.1.1 As an independent legal person, it has the right to execute this Agreement and has the capacity and necessary authority to perform its responsibilities and obligations hereunder; and

 

4.1.2 It will execute all documents and take all actions necessary to complete the performance of this Agreement.

 

4.2 Party B hereby represents and warrants that its operation is in compliance with the laws and regulations of China and the requirements of relevant competent authorities.

 

5. Exclusivity and Limitation on Rights

 

5.1 Both Parties agree that the cooperation contemplated by this Agreement is exclusive. Party B shall not transfer, pledge or assign to any third party the aforementioned rights and obligations or use such rights and obligations for the benefit of any third party, without Party A’s written consent.

 

5.2 Party B agree to use the rights authorized by Party A strictly in accordance with the provisions herein, not to use such rights in any way deemed by Party A as misleading, and the way in which it uses such rights shall not prejudice Party A’s goodwill and interests.

 

5.3 Party B agrees not to raise an objection to Party A’s relevant technology rights or the effectiveness of this Agreement during or after the cooperation. This provision shall survive the termination of this Agreement.

 

  

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6. Confidentiality

 

6.1 Either Party shall hold all information about the other Party that is known or received in connection with the execution and performance of this Agreement during the cooperation in confidence. Either Party may only use such business information for purposes of performing its obligations under this Agreement. Either Party shall not disclose such trade secrets (including the execution, performance and contents of this Agreement) to any third party without the other Party’s written consent; otherwise, such Party shall be liable for breach of contract and indemnify for losses incurred.

 

6.2 Either Party shall, subject to obtaining the other Party’s written consent, ensure that it shall disclose such trade secrets to its employees, consultants, agents or contractors only for purposes of performing this Agreement, and shall undertake to the other Party that its employees, consultants, agents or contractors will hold such trade secrets confidential; otherwise, such Party shall be responsible for the related compensation.

 

6.3 Either Party shall, at the request of the other Party, return, destroy or otherwise dispose of all documents, materials or software that contain the other Party’s trade secrets, and cease to use such trade secrets.

 

7. Liability for Breach

 

7.1 Where either Party breaches any provisions herein or any of its representations and warranties hereunder, fails to perform its obligations hereunder or fails to perform its obligations as agreed hereunder, the non-breaching Party (“Non-Breaching Party”) shall, upon ten (10) days’ written notice, have the right to require the breaching Party (“Breaching Party”) to redress such breach, continue to perform this Agreement, take adequate, effective and prompt actions to eliminate the consequences arising out of the breach, and indemnify the Non-Breaching Party for the losses incurred by it as a result of the breach by the Breaching Party.

 

7.2 The Breaching Party shall compensate the Non-Breaching Party for its breach. The compensation shall be equal to the losses arising out of such breach, including the interests that become available after the performance of the Agreement, but shall not exceed the losses incurred arising out of the breach of this Agreement that were reasonably foreseen (or should have been foreseen) at the time this Agreement is entered into by the Parties.

 

7.3 Where both Parties breach this Agreement, the Parties shall respectively assume the liabilities as determined in Section 7.1 and 7.2 to the extent of their respective actual fault.

 

8. Force Majeure

 

8.1 Force Majeure means any events or circumstance beyond the reasonable control including any act of God or act of War.

 

8.2 If either Party fails to perform this Agreement in part or in whole due to Force Majeure, such Party may be exempted from all or any of its liabilities hereunder to the extent of the effect of the Force Majeure, except otherwise provided under the Chinese law.

 

8.3 If either Party delays the performance of its obligations hereunder before the Force Majeure occurs, such Party shall not be exempted from its liabilities.

 

8.4 If either Party fails to perform this Agreement due to Force Majeure, it shall accurately notify the other Party of the circumstances and reasons for such failure of performance immediately after the occurrence of such Force Majeure in a timely manner so as to reduce the losses incurred by the other Party, and shall produce a lawful certificate issued by a notary public (or any other appropriate authority) in the place where such Force Majeure occurs within a reasonable period of time upon the notice of Force Majeure.

 

8.5 The Party affected by the Force Majeure may suspend the performance of its obligations hereunder until the effect of such Force Majeure is eliminated, but shall use its best efforts to remove any obstacles as a result of such Force Majeure to eliminate any impact and minimize the losses arising out of such Force Majeure.

 

  

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9. Effectiveness and Term

 

9.1 This Agreement shall come into effect upon the date of execution and shall remain effective for a period of twenty (20) years. Except in the circumstances specified in Section 10.2, this Agreement may be renewed through consultations upon expiration.

 

9.2 If either Party intends to renew this Agreement, it shall notify the other Party in writing of such intention within thirty (30) days prior to the expiration of this Agreement, and the other Party shall give a written reply within ten (10) days upon receipt of such notice.

 

10. Amendment and Termination

 

10.1 This Agreement shall not be amended or assigned unless approved by a written agreement signed by the authorized representatives of both Parties.

 

10.2 This Agreement may be terminated through consultations between the Parties by mutual agreement, provided that

 

10.2.1 If the Breaching Party fails to redress its breach or take adequate, effective and promt actions to eliminate the consequences arising out of the breach, and indemnify the Non-Breaching Party for the losses incurred by it as a result of the breach by the Breaching Party within 10 days after the Non-Breaching Party issues the written notice as specified in Section 7.1 hereof, the Non-Breaching Party may terminate this Agreement upon written notice.

 

10.2.2 If this Agreement cannot be performed because the Force Majeure persists for thirty (30) days, either Party shall have the right to terminate this Agreement upon written notice.

 

10.3 The termination or expiration of this Agreement due to any reason shall not affect:

 

10.3.1 The effectiveness of the settlement and damages clauses in this Agreement;

 

10.3.2 The obligations of Party B and Party B’s school’s concerning the restrictions on rights specified in Section 5;

 

10.3.3 The confidentiality obligations of both Parties under Section 6.

11. Dispute Resolution and Governing Law

 

In the event of any dispute with respect to the interpretation and implementation of this Agreement, the Parties shall negotiate in good faith to resolve the dispute. In the event the Parties fail to reach an agreement on the resolution of such dispute within 30 days after the negotiation begins, either Party may submit such dispute to the China International Economic and Trade Arbitration Commission for arbitration in accordance with its then effective arbitration rules.

 

11.2 The execution, effectiveness, interpretation and implementation of this Agreement and the resolution of disputes hereunder shall be governed by the laws of China.

 

11.3 In the course of arbitration, the Parties shall try to perform any part of this Agreement that has not been submitted for arbitration.

 

12. Notices

 

12.1 Unless notified in writing by the other Party of a new address beforehand, all notices arising in the performance of this Agreement shall be sent to the following addresses by personal delivery, courier, facsimile, registered mail or e-mail:

 

  

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Party A: Hangzhou Kunjiang Education Technology Co., Ltd.Address: 4028 South Loop Rd, Zhongheng Century Science and Technology Zone 3-B-401, Binjiang District, Hangzhou City, Zhejiang Province __________________

Post Code: 310000

Telephone: 0571-88855286, 18951849116

Fax: 0571-88855286

 

Party B: Pingtan Lanhua Middle and High School

Address: North Gate Tancheng Town, Pintan County, Fujian Province

Post Code: 350400

Telephone: 0591-24328755

Fax: 0591-24317868

 

12.2 The dates on which notices and communications shall be deemed to have been effectively given shall be determined as follows:

 

12.2.1 Notices given by facsimile transmission shall be deemed effectively given at the time displayed on the transmission record. If the time displayed on the transmission record is after five o’clock in the afternoon, or if such time occurs in a non-business day in the recipient’s place, the time of receipt shall be the immediate next business day in the time of the recipient’s place.

 

12.2.2 Notices given by personal delivery (including courier) shall be deemed effectively given upon the date when such notices are signed by the receiving “party”.

 

12.2.3 Notices given by registered mail shall be deemed effectively given upon fifteen days after the post office issues the receipt.

12.2.4 Notices given by e-mail shall be deemed effectively given at the time when the sender prints out the record for sending the relevant notices.

 

13. Supplemental Provisions

 

13.1 Either Party’s failure to excise promptly or failure to exercise its rights hereunder shall not be deemed a waiver of such rights; and any single or partial exercise of any rights shall not preclude such party’s exercise of such rights in the future.

 

13.2 The invalidity of any provisions of this Agreement shall not affect the validity of the other provisions of this Agreement.

 

13.3 Any matters not covered by this Agreement shall be determined by the Parties separately through consultations and shall be in compliance with the laws of China.

 

14. IN WITNESS WHEREOF, the duly authorized representatives of the Parties have executed this Agreement on the date first above written.

 

 

Party A:  Hangzhou Kunjiang Education Technology Co., Ltd.

 

Authorized Representative:  /s/ Yuefeng Gan

 

 

Party B Pingtan Lanhua Middle & High School

	
Authorized Representative:  /s/Qiming Wengdebt_ex101.htm

Exhibit 10.1

 

EMPLOYMENT AGREEMENT 

 

This Employment Agreement, effective on June 1,2011, is between DEBT RESOLVE, INC., a Delaware corporation (hereinafter referred to as the "Company"), and Michael J. Cassella (hereinafter referred to as "Executive").

 

WITNESSETH: 

 

WHEREAS, the Company desires to retain the services of the Executive and to that end desires to enter into a contract of employment with him, upon the terms and conditions herein set fordi; and

 

WHEREAS, the Executive desires to be employed by the Company upon such terms and conditions;

 

NOW, THEREFORE, in consideration of the premises and of the mutual benefits and covenants contained herein, the parties hereto, intending to be bound, hereby agree as follows:

 

1.       APPOINTMENT AND TERM

 

Subject to the terms hereof, the Company hereby employs tire Executive, and the Executive hereby accepts employment with the Company, all in accordance with the terms and conditions set forth herein, for a period of one (1) year commencing on June 1, 2011 and conditioned upon funding at least $250,000 to the Company, provided, however, that the Company may terminate the agreement upon thirty (30) days notice at any time and for any reason or no reason within the first six months, subject to the provisions in Section 6(b)v below. At the end of such initial one year Term, this Agreement shall be extended automatically for successive one (1) year Terms of employment, unless either the Company or the Executive notifies the other party in writing at least ninety (90) days prior to the end of the incumbent Term of any intention not to renew this Agreement, in which case (A) this Agreement will terminate at the end of such incumbent Term and (B) Section 6(g) hereof shall apply. All references herein to the "Term" shall refer to both such initial Term and any successive Terms. The date upon which the Term of this Agreement expires shall be referred to herein as the "Expiration Date". The Executive shall serve as the Chief Operating Officer of the Company and shall report directly to the Company's President.

 

  

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2.       SCOPE OF DUTIES

 

During the term of this Agreement, the Executive shall, unless prevented by incapacity, devote his business time, attention and ability to the discharge of his duties hereunder and to the faithful and diligent performance of such duties and the exercise of such powers as may be assigned to or vested in him by the President of the Company (the "President"), such duties to be consistent with his position. The Executive shall obey the lawful and reasonable directions of the President, consistent with Ms position, and shall use his diligent business efforts to promote the interests of the Company and to maintain and promote the reputation thereof. Specifically, the Executive will be responsible for sales and investor relations. The executive shall be based in Tarrytown, New York and Long Island, New York.

 

With written approval from the Company's Board of Directors, the Executive may serve as a director or advisor to other corporations when those activities do not conflict with Ms duties at Debt Resolve. Executive agrees that he will, upon request of die President and the Board of Directors of die Company, resign from any such dhectorsMp or advisorsliip if such directorship or advisorsMp becomes a direct conflict of interest with Executive's obligations to the Company.

 

3.       COMPENSATION

 

a) Annual Salary. For the services and duties to be rendered and performed by Executive during the Employment Period, the Company agrees to pay Executive as follows: 

 

(1) at the rate of One Hundred Fifty Thousand Dollars ($150,000), payable in equal monthly or semi-monthly installments, consistent with the policies of the Company for employees, effective on the Employment Date.

 

The Executive shall be reimbursed upon receipt of an approved expense report. In addition, the Company shall reimburse Executive for all expenses reasonably and necessarily incurred in connection with his employment by the Company, including traveling expenses while absent, on the Company's business.

 

  

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b) Commissions. The Executive shall receive commissions of four (4%) percent on any client secured by the Executive after the date of hire (excluding current clients and current pipeline clients) for the duration of employment and for a three (3) year term thereafter upon leaving employment.

 

c) Stock and other Incentive Compensation. Executive shall be issued 2,000,000 options at the prior day's closing on the Effective Date which shall vest one fourth on die Effective Date, one fourth at the year one anniversary of the Effective Date, one fourth at die year two anniversary of die Effective Date and one fourth at die year three anniversary of the Effective Date.

 

d) Funding. The Executive will receive a bonus upon die successful introduction to the Company of investors of seven (7%) percent of the funds closed for die referral.

 

e) Stock price. The Executive will receive a bonus in an amount to be determined by the President and the Board upon the Company share price trading in excess of $0.50 and again in excess of $ 1.00 for a period of twenty (20) consecudve trading days in each case.

 

4.       HEALTH INSURANCE AND OTHER FRINGE BENEFITS

 

In addition to the compensation specified in Section 3, the Executive shall be entitled to participate in regular employee fringe benefit programs to the extent such programs are offered by the Company to its executive employees, including, but not limited to health, dental and vision, in effect prior to the Commencement Date, and any benefit but not compensation programs developed after the Commencement Date.

 

5.       VACATION

 

The Executive shall be entitled to four (4) weeks vacation (in addition to the usual national holidays) during each calendar year during which he serves hereunder. Such vacation shall be taken at such time or times as reasonably requested by the Executive. Vacation not taken during a calendar year may not be carried forward.

  

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6.       TERMINATION

 

a. This Agreement shall terminate in accordance with die terms of Section 6(b) hereof; provided, however, that such termination shall not affect the obligations of the Executive pursuant to die terms of Sections 7, 8 and 9 hereof.

 

b. This Agreement shall terminate on the Expiration Date; or as follows:

 

i.  Upon die written notice to the Executive by die Company at any time, because of (v) die willful and material malfeasance, dishonesty or habitual drug or alcohol abuse by the Executive materially and demonstrably related to or materially and demonstrably affecting the performance of his duties; (w) the Executive's continuing and intentional breach, non­performance or non-observance of any of the material terms or provisions of this Agreement, but only after notice by the Company of such breach, nonperformance or nonobservance and the failure of the Executive to cure such default within thirty (30) days after the Company's delivery of such notice; (x) the conduct by the Executive which the Board in good faith determines could reasonably be expected to have a material adverse effect on the business, assets, properties, results of operations, financial condition, personnel or prospects of the Company (within each category, taken as a whole), but only after notice by the Company of such conduct and die failure of the Executive to cure same within thirty (30) days after die Company's delivery of such notice; (y) upon the Executive's conviction of a felony, any crime involving moral turpitude (including, witiiout limitation, sexual harassment) related to or affecting the performance of his duties or any act of fraud, embezzlement, theft or willful breach of fiduciary duty against the Company (clauses (v)-(y), collectively referred to as "Cause").

 

ii. In the event the Executive, by reason of physical or mental disability, shall be unable to perform the services required of him hereunder with or without reasonable accommodation for a period of more dian 90 consecutive days, or for more than a total of 120 non-consecutive days in the aggregate during any period of twelve (12) consecutive calendar months, on the 91st consecutive day, or the 121st day, as the case may be. The Executive agrees, in the event of any dispute under this Section 6(b)(ii), and after written notice by the Board, to submit to a physical examination by a licensed physician practicing in the metropolitan New York, NY area selected by the Board.

 

  

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iii. In the event the Executive dies while employed pursuant hereto, on die last day of die montii in which his deadi occurs.

 

iv. After the initial six (6) month period, upon sixty (60) days' written notice by the Executive to the Company, in the event that the Company (A) shall not comply with any material provision of diis Agreement and shall not have cured any such failure within thirty (3 0) days after written notice of such noncompliance has been given by the Executive to the Company, or (B) shall assign to the Executive any duties that are materially inconsistent with his status or that materially diminish his duties hereunder.

 

v.  Within the initial six (6) month period, upon thirty (30) days written notice to the Executive.

 

c.  Termination by Company for Cause/Termination by Executive without Cause. If dus Agreement is tenninated by die Company pursuant to Section 6(b)(i) or upon resignation by the Executive with or without notice, then, odier dian as set forth in this Agreement, the Company will have no further liability to die Executive after die date of termination including, widiout limitation, the compensation and benefits described herein. In the case of termination by die Company pursuant to Section 6(b)(1) or resignation by the Executive with or without notice, all Stock Options diat have not dien vested shall be immediately forfeited. From and after the date of such termination, Executive shall continue to be subject to the terms of Section 7, 8 and 9 hereof.

 

d.  Termination due to Disability. In die case of termination pursuant to Section 6(b)(ii), the Executive will receive his then current salary until such time (but not more dian 180 days after such termination for disability) as payments begin under any long term disability insurance plan of the Executive, if any. From and after die date of such termination, Executive shall continue to be subject to the terms of Section 7, 8 and 9 hereof.

 

  

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e.  Termination due to Death of Executive. In die case of termination pursuant to Section 6(b)(iii), the Executive will receive his salary to die date of termination.

 

f.  Constructive Termination or Termination widiout Cause. In the case of termination pursuant to Section 6(b)(iv) after die initial six (6) mondi period, die Executive will receive from the Company (i) the remaining balance of the contract year's Base Salary, subject to a minimum of at least 6 months pay and (ii) the right to exercise all Stock Options that have vested. The Executive shall be bound by the terms of Section 9 for a period of one year from the date of termination. The Executive shall continue to be bound by the terms of Sections 7 and 8 as long as its terms apply.

 

g. Non-Renewal. In the event that, at least ninety (90) days prior to die end of the Term of this Agreement, the Company notifies the Executive in writing of the Company's intention not to renew this Agreement, then (A) the Executive will receive from the Company three months' Base Salary following the Term of this Agreement and (B) the terms of Section 9 hereof shall only apply to the Executive during the three months following the Term during which die Executive is being paid his Base Salary.

 

h. Initial Six (6) Month Period. In the event that the Company terminates tliis agreement within the first six (6) months upon tiiirty (30) days written notice to the Executive, then (1) the Executive shall be eligible for thirty (30) days severance, (2) any deferred compensation to date and severance shall be paid in cash or, at the option of the Executive, in Company stock at a conversion price of $0.10 per share, such deferred compensation and severance to be paid in cash provided that die Company has sufficient cash for at least six (6) months of operations and diat such payment would not violate die terms of any financing secured by the Company and (3) in the event that Company terminates tins agreement after sixty (60) days but prior to die end of the six (6) month initial period, dien Executive's unvested options shall immediately vest and die former Executive shall have thirty (30) days in which to exercise such options, after which time all newly vested but unexercised options shall expire but previously vested options continue to follow die terms of the option agreement.

  

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7.      CONFIDENTIAL INFORMATION

 

(a) The Executive covenants and agrees that he will not at any time during die continuance of this Agreement or at any time thereafter (i) print, publish, divulge or communicate to any person, firm, corporation or odier business organization (except in connection widi die Executive's employment hereunder) or use for his own account any proprietary secret or confidential information relating to the business of the Company (including, without limitation, information relating to any customers, suppliers, employees, products, services, formulae, technology, know-how, trade secrets or the like, financial information or plans) or any proprietary secret or confidential information relating to the affairs, dealings, projects and concerns of die Company, both past and planned (die "Confidential Information"), which the Executive has received or obtained or may receive or obtain during the course of his employment with the Company (whether or not developed, devised or otherwise created in whole or in part by the efforts of the Executive), or (ii) take with him, upon termination of his employment hereunder, any information in paper or document form or on any computer-readable media relating to the foregoing. The term "Confidential Information" does not include information which is or becomes generally available to the public other than as a result of disclosure by the Executive or which is generally known in the consumer debt collection business. The Executive furtiier covenants and agrees that he shall retain the Confidential Information received or obtained during such service in trust for the sole benefit of the Company or its successors and assigns.

 

(b) The term Confidential Information as defined in Section 7(a) hereof shall include information obtained by the Company from any diird party under an agreement including restrictions on disclosure known to die Executive.

 

(c) In die event tiiat the Executive is requested pursuant to subpoena or otiier legal process to disclose any of the Confidential Information, die Executive will provide the Company with prompt written notice so that the Company may seek a protective order or other appropriate remedy and/or waive compliance with Section 7 of this Agreement. In die event that such protective order or other remedy is not obtained or that the Company waives compliance with the provisions of Section 7 of this Agreement, the Executive will furnish only that portion of the Confidential Information which is legally required.

 

8.      PATENTS

 

Executive agrees to and does hereby sell, assign, transfer and set over to the Company, its successors, assigns, or affiliates, as the case may be, all his right, title, and interest in and to any inventions, improvements, processes, patents or applications for patents which he has developed or develops or conceives individually or in conjunction with otiiers during Ms employment by the Company, or, having possibly conceived same prior to his employment, may complete while in die employ of the Company or any of its affiliates, in botii cases whether during or outside business hours, whether or not on the Company's premises, in connection with any matters with which his employment by die Company or any of its affiliates is or may be concerned, to be held and enjoyed by the Company, its successors, assigns or affiliates, as the case may be, to the full extent of the term for which any Letters Patent may be granted and as fully as die same would have been held by Executive, had diis Agreement, sale or assignment not been made. Executive will make, execute and deliver any and all instruments and documents necessary to obtain patents for such inventions, improvements and processes in any and all countries. Executive hereby irrevocably appoints the Company to be his attorney in fact in die name of and on behalf of Executive to execute all such instruments and do all such diings and generally to use die Executive's name for die purposes of assuring to die Company (or its nominee) the full benefit of its rights under the provisions of this Article 8.

 

9.      CERTAIN COVENANTS

 

(a) Covenant Not to Compete.    Executive agrees tiiat during die Employment Period, he will not, widiout the express written permission of die Company, which may be given or withheld in the Company's sole discretion, directly or indirectly own, manage, operate, control, lend money to, endorse die obligations of, or participate or be connected as an officer, director, 5% or more stockholder of a publicly-held company, stockholder of a closely-held company, employee, partner or otherwise, with any enterprise or individual engaged in a business which is directly competitive with die business conducted by die Company. For die purposes of tiiis Agreement, directly competitive shall mean any company engaged in sales of (i) debt resolution software, or (ii) collection software, or (hi) applications or extensions of the Company's debt resolution technology.

 

  

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(b) Covenant Regarding Solicitation of Customers and Employees.       During the one year period fodowing termination of his employment, Executive agrees that, if such agreement is requested by die Company, he will not (i) solicit any past, present or future customers of the Company in any way relating to the business of the Company, or (ii) induce or actively attempt to influence any other employee or consultant of the Company to terminate his or her employment or consultancy with the Company.

 

(c)      Scope of Covenants.   It is understood and acknowledged by both parties that, inasmuch as the Company intends to transact business worldwide, the covenants set forth in diis Article 9 shall be enforced throughout die United States and in any otiier country in which the Company does business.

10.     REMEDIES

 

(a) Without intending to limit die remedies available to the Company, it is mutually understood and agreed that the Executive's services are of a special, unique, unusual, extraordinary and intellectual character giving them a peculiar value, the loss of which may not be reasonably or adequately compensated in damages in an action at law, and, tiierefore, in the event of any material breach by the Executive tiiat continues after any applicable cure period, the Company shall be entitled to equitable relief by way of injunction or otherwise.

 

(a) The covenants of each of Sections 7, 8 and 9 hereof shall be construed as independent of any other provisions contained in this Agreement and shall be enforceable as aforesaid notwithstanding the existence of any claim or cause of action of the Executive against the Company, whether based on this Agreement or otiierwise. In die event that any of the provisions of Sections 7, 8 or 9 hereof should ever be adjudicated to exceed the time, geographic, product/service or other limitations permitted by applicable law in any jurisdiction, then such provisions shall be deemed reformed in any such jurisdiction to the maximum time, geographic, product/service or other limitations permitted by applicable law.

11.    COMPLIANCE WITH OTHER AGREEMENTS

 

The Executive represents and warrants to die Company that the execution of this Agreement by Mm and Ms performance of Ms obligations hereunder will not, witii or without the givmg of notice or the passage of time or bodi, conflict witii, result in the breach of any provision of or the termination of, or constitute a default under, any agreement to wlrich die Executive is a party or by which die Executive is or may be bound.

12.    WAIVERS

 

The waiver by die Company or die Executive of a breach of any of the provisions of diis Agreement shall not operate or be construed as a waiver of any subsequent breach.

13.    BINDING EFFECT: BENEFITS

 

TMs Agreement shall Mure to the benefit of, and shall be binding upon, die parties hereto and their respective successors, assigns, heirs and legal representatives, including any corporation or other business orgamzation with wMch the Company may merge or consolidate or sell all or substantially all of its assets. Insofar as the Executive is concerned, diis contract, being personal, cannot be assigned.

14.    NOTICES

 

All notices and other communications which are required or may be given under diis Agreement shall be in writing and shall be deemed to have been duly given when delivered to the person to whom such notice is to be given at his or its address set forth below, or such other address for die party as shall be specified by notice given pursuant hereto:

 

  

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(a)     If to the Executive, to him at:

 

Michael J. Cassella

2 Connecticut Avenue

Massapequa, NY 11758

 

and

 

(b)     If to the Company, to it at:

 

Debt Resolve, Inc.

150 White Plains Rd., Suite 108

Tarrytown, NY 10591

 

Attention: General Counsel

 

with a copy to:

 

Greenberg Traurig, LLP

200 Park Avenue, 15th Floor

New York, NY 10166

Attention: Spencer G. Feldman, Esq.

 

15.    MISCELLANEOUS

 

(a) This Agreement contains the entire agreement between die parties hereto and supersedes all prior agreements and understandings, oral or written, between the parties hereto with respect to the subject matter hereof. This Agreement may not be changed, modified, or terminated except upon written amendment approved by the President and Board of Directors and executed by a duly authorized officer of the Company and the Executive.

 

(b) The Executive acknowledges that from time to time, the Company may establish, maintain and distribute employee manuals of handbooks or personnel policy manuals, and officers or other representatives of the Company may make written or oral statements relating to personnel policies and procedures. Such manuals, handbooks and statements are intended only for general guidance. No policies, procedures or statements of any nature by or on behalf of the Company (whether written or oral, and whether or not contained in any employee manual or handbook or personnel policy manual), and no acts or practices of any nature, shall be construed to modify this Agreement or to create express or implied obligations of any nature to the Executive.

 

  

9

  

 

(c) This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument.

 

(d) All questions pertaining to the validity, construction, execution and performance of diis Agreement shall be governed by and construed in accordance witii the laws of the State of New York.

 

(e) Any controversy or claim arising from, out of or relating to diis Agreement, or the breach hereof (other tiian controversies or claims arising from, out of or relating to die provisions in Sections 7, 8, 9 and 10), shall be determined by final and binding arbitration in Westchester County, New York, in accordance with the Employment Dispute Resolution Rules of the American Arbitration Association, by a panel of not less dian tiiree (3) arbitrators appointed by the American Arbitration Association. The decision of die arbitrators may be entered and enforced in any court of competent jurisdiction by either the Company or the Executive.

 

 

(f) The parties indicate their acceptance of the foregoing arbitration requirement by initialing below:

 

		 		 
	For the Company	 	Executive	 

 

If any provision of this Agreement is held to be illegal, invalid, or unenforceable under present or future laws, such provision shall be severable, and this Agreement shall be construed and enforced as if such illegal, invalid, or unenforceable provision had never comprised a part of this Agreement, and die remaining provisions of dus Agreement shall remain in full force and effect and shall not be affected by such illegal, invalid, or unenforceable provision or by its severance from this Agreement. Furthermore, in lieu of such illegal, invalid, or unenforceable provision, there shall be added automatically as a part of this Agreement a provision as similar in terms to such illegal, invalid, or unenforceable provision as may be possible and be legal, valid, and enforceable.

(g)     Indemnification. The Company hereby agrees to indemnify die Executive pursuant to this Agreement to the fullest extent permitted by applicable law from and against any and all liability, costs and expenses (including reasonable attorneys' fees) that may be incurred by die Executive (i) as a result of Executive's rendering of services to die Company, other than any such liability which arises as a direct result of the material and demonstrable willful misconduct or gross negligence of the Executive, and (ii) as a result of Executive's rendering of Ins duties hereunder, in accordance with the certificate of incorporation of the Company.

 

  

10

  

 

IN WITNESS WHEREOF, the parties hereto have executed tins Agreement as of the Effective Date.

 

	 	DEBT RESOLVE, INC.	 
	 	 	 	 
	
 

	
By: 

		 
	 	 	David M. Rainey 	 
	 	 	President and Chief Financial Officer	 
	 	 	 	 
	 	EXECUTIVE	 
	 	 		 
	 	 	Michael J. Cassella	 

 

  

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EXHIBIT A TO THE EMPLOYMENT AGREEMENT,

DATED MAY 20,2011, BETWEEN

DEBT RESOLVE. INC. AND MICHAEL J. CASELLA

 

Performance Goals: 2011

 

List/Identify key performance goals below:

To be determined in conjunction with the President, Board of Directors and the approved business plan of the Company.

 

  

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