Document:

EXHIBIT 10.1

CYBERARTS SOURCE CODE LICENSE AND SERVICES AGREEMENT

This CyberArts Source Code License and Services Agreement
(the “Agreement”) is made effective as of June 16, 2006
(the “Effective  Date”)
by and between CyberArts Licensing, LLC., a Delaware limited liability company
with offices at 51 Arbor
Street, San Francisco, CA 94131 (“CyberArts”), and WPT Enterprises, Inc., a California
corporation with offices at 5700 Wilshire Boulevard, Suite 350, Los Angeles,
CA 90036 (“WPT”).

BACKGROUND

CyberArts is in the business of developing commercial
and custom online gaming software. CyberArts also provides corresponding
support, implementation, and training services. CyberArts desires to provide
its Licensed Product to WPT in order to enable WPT to provide online gaming to
End Users, subject to the terms of this Agreement.

1.             Definitions.

“Affiliate Services”
mean the provision of standard incentive based affiliate services to a
third-party entity or individual.

“Licensed  Product”
means the executable object code of the CyberArts game(s) and corresponding
software listed in Exhibit A. The Licensed Product includes, the Documentation,
any other standard documentation and any standard modifications, updates, and upgrades
to the Licensed Product.

“Client” means the object code portion
of the Licensed Product intended for distribution to WPT’s End-Users to enable
the use of the Licensed Product games.

“End-User” means an individual that WPT authorizes to
use the Client to play the Licensed Product, subject to the terms of this
Agreement.

“The Site” means the WPT branded poker site and servers
hosting the Licensed Product. WPT shall be responsible for operating the Site.

“Network Operations” means any branding of the Licensed Product,
the Client, and/or documentation with any name, logo, tag-line, or any other
text or marking that a reasonable person would associate with any party except
WPT or CyberArts, including but not limited to, the individual or entity
subject to the Affiliate Services.

“Support and Maintenance Services”
means CyberArts’ Licensed Product support provided under CyberArts’ support and
maintenance services policy attached hereto as Exhibit D, as amended from
time-to-time.

 “Public Software”
means any software within the Licensed Product that contains, or is derived (in
whole or in part) from, any software that is distributed as free software, open
source software or similar licensing or distribution models.

2.             License and CyberArts Obligations.

2.1          License Grant.
CyberArts grants to WPT, a perpetual, nonexclusive, nontransferable,
nonsublicensable license (the “License Grant”) to use in object code format and
distribute the Client to End-Users for the limited purpose of playing the
Licensed Product, subject to the terms of this Agreement for both its real-money
wagering site and its free play site (“Freeplay Site”). WPT shall ensure that End
Users are also subject to the use restrictions in Section 2.2 as applicable. For
purpose of clarity, nothing in this Agreement should be construed as a
prohibition on WPT from offering Affiliate Services in connection with the
Licensed Product, except that WPT shall not be permitted to perform Network
Operations. WPT is also solely responsible for determining whether its intended
use of the Licensed Product is consistent with any and all applicable laws.

2.1.1       Additional License Grant. Upon
CyberArts receipt of the Source Code Trigger Payment (as set forth in Exhibit
A) such that the total amount of payments made for object code and/or source
code version of the Licensed Product equal or exceeds Four Million Dollars ($4,000,000),
CyberArts shall cause the Escrow Agent to release a copy of the source of the
Licensed Product to WPT (“Source Code Grant”). The license grant in Section 2.1
shall become a non-refundable source code license with the 

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additional benefits stated in Section 2.2.1, subject to the terms of
this Agreement. The language “executable object code” in the definition of
Licensed Product shall then be replaced with “source code.”  The language “object code” in the definition
of Client shall then be replaced with “source code.”

 

2.2 Object Code Use Restrictions.
Unless or until WPT obtains the Source Code pursuant to payment of the Source
Code Payment Trigger (in which case such use restrictions shall be controlled
by Section 2.2.1 below), WPT shall not use or copy the Licensed Product, or any
portion thereof, except as expressly authorized in this Agreement. WPT also agrees
to comply with platform use license grant and the Documentation. WPT also
agrees not to (i) sublicense or otherwise use the Licensed Product for the
benefit of any entity, except for End-Users, provided that use of License
Product in conjunction with Affiliates shall not be prohibited herein; (ii)  transfer, assign, copy, modify, translate, or
prepare derivative works based upon the Licensed Product; (iii) reverse-compile
or decompile, disassemble, or unbundle any software contained in the Licensed
Product, or otherwise reverse engineer the Licensed Product; (iv) use the
Licensed Product and/or Client for Network Operations; or (v) alter, remove, or
obscure any copyright or other proprietary notices or labels on or in the
Licensed Product. Notwithstanding anything to the contrary in this section,
nothing in this Agreement shall prevent WPT from duplicating the License
Product for use in its both its real-money and Free Site.

2.2.1
Source Code Use Restrictions and Terms. Upon the occurrence of the Source Code
Grant, Section 2.2 shall be deleted and replaced with the following.

“Use Restrictions
and Terms. WPT shall continue to be bound by this
Section 2.2.1 Use Restrictions and Terms. WPT also agrees not to (i) sublicense,
copy, or otherwise use the Licensed Product for the benefit of a third-party any
entity, except for End-Users or for the provision of Affiliate Services; (ii) transfer
or assign the Licensed Product to a third 
party, unless specifically provided herein; (iii) distribute the source
code of the Licensed Product to any third party unless specifically provided
herein; or (iv) alter, remove, or obscure any copyright or other proprietary
notices or labels on or in the Licensed Product. Notwithstanding the foregoing,
WPT shall be entitled to use the source code for the provision of skinned site
affiliate services as well as for standard Affiliate Services.

WPT shall be entitled to  (i) copy,
modify, translate, or prepare derivative works based upon the Licensed Product
or (ii) reverse-compile or decompile, disassemble, or unbundle any software
contained in the Licensed Product, or otherwise reverse engineer the Licensed
Product. Notwithstanding anything to the contrary in this section, nothing in
this Agreement shall prevent WPT from duplicating the License Product for use
in its both its real-money and Free Site.

2.4 Source Code Escrow. Within
thirty (30) days of the Effective Date, CyberArts shall place a complete copy
of the source code of the Licensed Product and any corresponding documentation
in escrow with a third party escrow agent (“Escrow Agent”), subject to the
Escrow Agent’s standard escrow agreement (“Escrow Agreement”). Provided that
WPT has elected and has paid the Support and Maintenance Services Fees, within
thirty (30) days of when CyberArts releases a materially new and standard
version of its Licensed Product, CyberArts shall also provide a copy of the
same to the Escrow Agent. The Escrow Agreement shall also provide for the
release of the source code of the Licensed Product to WPT upon the Source Code
Grant, upon CyberArts materially breaching this Agreement and failing to cure
such material breach in accordance with Section 10.2a, or the assignment of
this Agreement by CyberArts to a party that WPT reasonably believes is
detrimental to the business interests of WPT (each a “Release Condition”). In
the event of a Release Condition, CyberArts shall provide a reasonable amount
of support to train WPT personnel on the underlying principles and techniques
embodied in the source code of the Licensed Product.

2.5  Branding. The Licensed Product is
branded “Powered by Cyberarts.”  WPT shall not remove the “Powered by
Cyberarts” branding and shall continue to brand as such.

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3.  Professional
Services and Development.

 

3.1 
Professional Services. In the event that WPT requests
CyberArts to perform Custom Development services on the Site, CyberArts shall
provide WPT with the professional services and at the fees listed in Exhibit B
and/or fees and additional terms in any other statement of work (“SOW”)
executed between the parties (“Services”). CyberArts currently contemplate that
the fees for Services (i.e., $150,000) will be sufficient for the provision of
the following: (a) integration of registration and payment processing similar
to registration and payment processing found at gamesgrid.com, (b) development
of a custom interface, (c) set up and integration of basic administrative
tools; and (d) sufficient training for WPT employees in the operation of the
Licensed Product.

3.2   Custom Development. At WPT’s
request, CyberArts shall provide WPT with the Custom Development work at the
rates listed in Exhibit C, as amended from time-to-time, and additional terms
in a statement of work (“SOW”) executed between the parties (also, “Services”).
The parties shall, in good-faith and based on reasonableness factors, agree in
writing in each SOW on the ownership of the Custom Development (at exemplified
in Exhibit B). In the event the SOW does not specify ownership of the Customer
Developments, the provisions of Section 6 shall apply.

3.3                Expenses. Before
commencing any custom development work, the parties shall mutually agree on an
arrangement for reasonable out-of-pocket expenses incurred in conjunction with
the Professional Services and/or Custom Development.

3.4                Integration. CyberArts
agrees that it will make reasonable efforts to integrate a casino client and/or
sportsbook into the Site at WPT’s direction, subject to an SOW and the Fees
listed in Exhibit C.

4.                       Delivery, Fees,
and Payment.

4.1     Delivery and Fees.
CyberArts shall deliver the Licensed Product electronically. WPT shall pay CyberArts
the applicable fees specified in Exhibit A (based on whether it has purchased
on object or source code license and whether or not it has elected to subscribe
to Support and Maintenance Services)  and
for any applicable Professional Services and Custom Development, at the rates
listed in Exhibit C. All payments under this Agreement shall be due within
thirty (30) days of the date of CyberArts’ invoice for such payments. Late
payment of fees payable to CyberArts shall bear interest at the rate of 1% per
month (12% per annum). The Fees corresponding to Support and Maintenance
Services shall be due upon the Effective Date and then on anniversary of the
Effective Date thereafter (“Support and Maintenance Services Renewal”) at the
Fees listed in Exhibit A, plus an increase of up to 9% per year as notified by CyberArts
to WPT. A party may, however, notify the other party sixty (60) days prior to
the anniversary of the Effective Date of its intent to not renew Support and Maintenance
Services.

4.2     Taxes and other Fees.
The fees payable under this Section 4 are exclusive of and WPT shall pay without
deduction and hold CyberArts harmless from all taxes, duties, VAT, or other similar
charges (including interest and penalties) imposed by any country or taxing authority
thereof, connected with this Agreement, except such taxes as are imposed on or
measured by a party’s net income or property (“Taxes”). In the event CyberArts
reasonably requests it, WPT shall provide evidence that the applicable Taxes
have been paid to the appropriate taxing authority by delivering to the CyberArts
copies of receipts of the filings within a reasonable period of time after such
request.

5.        Confidentiality.

5.1     Confidential Information.
The parties acknowledge that they have received or may receive confidential
information relating to the other party’s products (including the Licensed
Product), concepts, inventions, technology documentation, business and
financial plans, and trade secrets in connection with the performance of this
Agreement, together with such other information designated as confidential or
proprietary by one party or which should be reasonably understood by the
receiving party as confidential information of the disclosing party, (“Confidential
Information”). Confidential
Information shall not include any information which:  (i) is or falls into the public domain
without fault of the receiving party; or (ii) the receiving party can document
was in its possession prior to receipt 

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thereof from the disclosing party; or (iii) the receiving party
receives from a third party with no obligation of confidence to the disclosing
party; or (iv) the receiving party independently develops without benefit of
any Confidential Information of the disclosing party.

 

5.2  Use of Confidential Information.

a)     Except as
expressly permitted or required in carrying out this Agreement, the receiving
party of any Confidential Information disclosed by a disclosing party shall not
use such Confidential Information or disclose such Confidential Information to
any third party, either during the term of this Agreement or for three (3)
years thereafter, without the prior written consent of the disclosing party. The
receiving party shall use the disclosing party’s Confidential Information only
to perform its obligations under this Agreement and to the extent permitted in
the licenses granted in this Agreement. The receiving party shall protect such
Confidential Information with the same degree of care used to protect its own
proprietary information of like importance, but with no less than a reasonable
degree of care.

b)     Nothing in this
Agreement shall prohibit either party from disclosing Confidential Information
of the other party if legally required to do so by judicial or governmental
order or by deposition, interrogatory, request for documents, subpoena, civil
investigative demand or similar process in a judicial or governmental
proceeding, or as otherwise required by law (“Required  Disclosure”);
provided that the disclosing party shall (i) give the other party prompt notice
of such Required Disclosure prior to disclosure, (ii) cooperate with the other
party in the event that it elects to contest such disclosure or seek a
protective order with respect to it and (iii) in any event only disclose the
exact Confidential Information, or portion thereof, specifically requested or
required by the Required Disclosure.

c)     The specific terms
of this Agreement shall not be disclosed by either party to any third party
without the prior written approval of the other party except (i) as may be
required by law or by any competent government authority or (ii) such
limited disclosures as may be reasonably necessary to either party’s bankers,
investors or potential investors, attorneys and accountants. Except in regard
to disclosures about the terms or this Agreement or the relationship of the
parties, any such disclosure shall be subject to confidentiality terms no less
restrictive than those contained in this Section 5 and the Agreement.

5.3  No Licenses or Warranties for Confidential
Information. All Confidential Information shall remain
the property of the respective disclosing party. Except as otherwise provided
in this Agreement, no license under any intellectual property right is granted
or implied by the conveying of Confidential Information to the receiving party.
None of the Confidential Information which may be disclosed by the disclosing
party shall constitute any representation, warranty, assurance, guarantee, or
inducement by the disclosing party of any kind, including the non-infringement
of any intellectual property rights, or other rights of third persons or of the
disclosing party.

6.     Intellectual
Property Rights.

WPT acknowledges that CyberArts and its licensors,
retain all intellectual property rights and title (including any patent,
copyright, trademark, trade secret, and other rights) in and to all of CyberArts’
and its  licensors’ confidential
information, trade secrets or other proprietary information, products, and the
ideas, concepts, techniques, inventions, processes, Licensed Product or works
of authorship developed, comprising, embodied in, or practiced in connection
with the Services provided by CyberArts under this Agreement (“Works”). Except for the rights expressly granted under this
Agreement (e.g., for Custom Development, if defined in the applicable SOW), CyberArts
and its licensors reserve and retain all intellectual property rights and title
associated with derivatives of such Licensed Product and Works. This includes,
without limitation, all Works or derivatives developed or created by CyberArts
or its personnel or contractors during the course of performing the Services
for WPT, unless such Works were created at the request of WPT and the
applicable SOW defines otherwise. WPT does not acquire any rights, express or
implied, in the Licensed Product and Works or in any modifications,
enhancements, localizations, extensions or derivative works of the Licensed
Product or Works, or in any other materials provided under this Agreement. Notwithstanding
the foregoing, in the event WPT modifies the Licensed Product in subject to and
accordance with Section 2.2.1, WPT shall own the intellectual property rights
and title (including patent, copyright, trademark, trade secret)  in 

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the derivative works (excluding CyberArts’ rights in the unmodified
portions of the Licensed Product), subject to the terms of this Agreement.

 

7.     Warranty;
Warranty Disclaimer.

7.1  Warranty. WPT shall be entitled to terminate this
Agreement upon the occurrence of the sooner of 1) April 1, 2007 or 2) one
hundred and twenty (120) days after WPT goes live with the Licensed Product and
to recover all fees paid by WPT to CyberArts (excluding any Professional
Services and Custom Development and Support and Maintenance Services Fees accrued
and/or paid to CyberArts), in the event that the features and functionality of
the Licensed Product fails to perform in accordance with WPT’s reasonable
expectations, and subject to the notice and cure provisions in Section 10.2(a).
For two hundred and seventy (270) days after the Effective Date of this
Agreement (“Warranty
Period”), CyberArts warrants that (i) the Licensed Product
will perform substantially in accordance with the Documentation (provided that
it is operated in accordance with the Documentation on the designated operating
systems) and (ii) the media containing the Licensed Product is free of
defects in material and workmanship. WPT must notify CyberArts of any breach of
the above warranty in writing within thirty (30) days after the Warranty Period.
WPT’s sole and exclusive remedy, and CyberArts and its licensors’ entire
liability, for any material breach of this warranty is for CyberArts to repair
or replace the Licensed Product.

7.2  Disclaimer. EXCEPT AS EXPRESSLY
PROVIDED OTHERWISE IN THIS AGREEMENT AND TO THE MAXIMUM EXTENT PERMITTED BY
APPLICABLE LAW, THE LICENSED PRODUCT AND SERVICES ARE PROVIDED “AS IS” AND CYBERARTS
DOES NOT MAKE ANY WARRANTIES WHATSOEVER, WHETHER EXPRESS, IMPLIED, STATUTORY OR
OTHERWISE, WITH RESPECT TO THE LICENSED PRODUCT OR THE SERVICES PROVIDED UNDER
THIS AGREEMENT, INCLUDING WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR, EXCEPT AS STATED IN THIS
AGREEMENT, NON-INFRINGEMENT OF THIRD PARTY RIGHTS. ALL SUCH WARRANTIES ARE
HEREBY EXPRESSLY DISCLAIMED. WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, CYBERARTS
DOES NOT WARRANT THAT (I) THE LICENSED PRODUCT PROVIDED UNDER THIS AGREEMENT
MEETS ANY GAMBLING LAWS, RULES, AND/OR REGULATIONS AND PERFORMS ANY AGE VERIFICATION;
(II) THE LICENSED PRODUCT WILL MEET WPT’S REQUIREMENTS OR (III) THE LICENSED
PRODUCT WILL BE ERROR FREE AND/OR OPERATE WITHOUT INTERRUPTION. SOME STATES AND
JURISDICTIONS DO NOT ALLOW LIMITATIONS ON IMPLIED WARRANTIES, SO THE ABOVE
LIMITATION MAY NOT APPLY TO WPT.

8.     Limitation
of Liability.

IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER
PARTY (OR ANY OTHER THIRD PARTY) FOR ANY CONSEQUENTIAL, EXEMPLARY, PUNITIVE,
INCIDENTAL, INDIRECT OR SPECIAL DAMAGES OR COSTS HOWSOEVER ARISING OUT OF OR
RELATED TO THE LICENSED PRODUCT, SERVICES, OR THIS AGREEMENT, UNDER ANY THEORY
OF LIABILITY, WHETHER OR NOT EITHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY
OF SUCH DAMAGES OR COSTS. EXCEPT FOR A BREACH OF SECTION 5, EACH PARTY’S
AGGREGATE LIABILITY TO THE OTHER PARTY UNDER THIS AGREEMENT SHALL NOT EXCEED
FEES PAID BY WPT TO CYBERARTS AND FREE FROM ALL CONTINGENCIES, IN THE TWELVE
MONTH PERIOD IMMEDIATELY PRECEDING THE ACCRUAL OF ANY CLAIM.

9.     Indemnification.

9.1  Indemnification. Each
party at its own expense shall indemnify, defend and hold the other party free
and harmless from any and all claims, damages, losses, costs, actions and
expenses, including attorneys’ and experts’ fees (“Indemnity
Condition”), arising from any claim or contention (a) arising
under this Agreement or (b) the breach
of warranties, representations and obligations under this Agreement. Without
limiting the generality of the foregoing, CyberArts, at its own expense
shall indemnify, defend and hold WPT free and harmless, against any claim that the Licensed Product and/or Services
infringes any U.S. patent, Berne Convention copyright or misappropriates any
third party’s trade secret.

a)     Defense. Each party shall (1) give prompt written notice of
any such claim, suit, expense or the like in accordance with the provisions of
Section 12.1, (2) permit the other party to control and direct the defense or
settlement of any such claim, suit or the like, provided, however that (a) the
other party shall not enter into any settlement agreement that would result in
any admission by a party 

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or payment by the party without such party’s prior written consent and
(b) such party may at its election participate in the defense of such claim,
suit or the like through separate counsel at its own expense, and (3) provides
the other party all reasonable assistance (at the expense of such party) in
connection with the defense or settlement of any such claim or suit.

 

b)     Options. If the
Licensed Product or Services is, or in CyberArts’ opinion is likely to be, held
to be infringing, CyberArts, at its expense and in its sole discretion, may:
(i) procure the right to allow WPT to continue to use the Licensed Product or
Services; or (ii) modify or replace the Licensed Product or Services or
infringing portions thereof to become non-infringing. If neither (i) nor (ii)
is available or commercially feasible, CyberArts shall have the right to
terminate WPT’s right to use the affected portion of the Licensed Product or
Services and WPT shall be entitled to recover the fees paid by WPT for that
portion of the Licensed Product or Services, as applicable, prorated over a
three year period from the Effective Date.

c)     Exclusion. Notwithstanding
the foregoing, CyberArts shall have no obligation to indemnify WPT under this
Section 9.1 to the extent any claim of intellectual property infringement is
based upon or arising out of (i) any modification or alteration to the Licensed
Product or Services made by WPT, in the event such infringement would have been
avoided but for such modification or alteration, (ii) WPT’s continuance of
allegedly infringing activity after being notified by CyberArts in writing to
stop using the Licensed Product or using corrections or enhancements made
available by CyberArts, (iii) use of the Licensed Product or Services materially
not in accordance with the Documentation and any other applicable end user
documentation or outside the scope of the license granted under this Agreement,
and/or (iv) Third Party Software.

9.2   Sole Remedy. The foregoing remedies
constitute WPT’s sole and exclusive remedies, and CyberArts’ entire liability,
with respect to intellectual property infringement.

10.   Term
and Termination.

10.1  Term. This Agreement shall commence
as of the Effective Date and the use of the Licensed Product shall continue
perpetually, unless sooner terminated pursuant to Section 10.2. The Support and
Maintenance Services shall continue as long as they have been renewed in
accordance with Section 4.1.

10.2  Termination.
This Agreement may be terminated as follows:

a)     by either CyberArts
or WPT upon thirty (30) days prior notice for any material default or breach of
any of the material terms and conditions of this Agreement by the other party,
unless the defaulting party has cured such failure or default within such
30-day period or

b)     by either party
immediately upon notice, if (i) the other party is subject to a bankruptcy
proceeding, whether voluntary or involuntary, which is not dismissed within
sixty (60) days or makes an assignment for the benefit of creditors, or if a
receiver, liquidation, administrator or trustee is appointed for such party’s
affairs is initiated and not dismissed within sixty (60) days or (ii) the other
party is dissolved.

c)     By WPT or
Acquiring Party (as defined herein), where a party acquires WPT through a
merger, reorganization, or sale of substantially all of the business or equity
interests WPT (the “Acquiring Party”) within Sixty (60) days after execution of
this Agreement.

10.3  Effect of Termination.

10.3.1
Upon termination of this Agreement for any reason, the provisions of
Sections 5 -9, 10.3, and 11 shall survive.

10.3.2                  If termination occurs after WPT has paid the Source
Trigger Payment, there is an occurrence of a Source Code Grant, a Release
Condition, or a material breach of Sections 2.2.1 or 5, but solely in regard to
the disclosure of technology constituting Confidential Information, Sections
2.1. and 2.21 shall survive unless the termination is based upon re-licensing
or assignment of Licensed Product to a third-party not otherwise authorized by
this Agreement or a breach of Section 2.2.1 and/or Section 5, but solely in
regard to the disclosure of technology constituting Confidential Information.

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10.3.3                  Upon termination
of this Agreement and where there has not been an occurrence of a payment of a
Source Code Trigger Payment by WPT, a Source Code Grant, or a Release Condition,
or a material breach of Section 2.2.1 or Section 5, but solely in regard to the
disclosure of technology constituting Confidential Information by WPT, WPT shall
stop using the Licensed Product and shall promptly return to CyberArts, or, at CyberArts’
option, destroy, all copies, in any medium, of the Licensed Product and all
Confidential Information of CyberArts. In the event that WPT does not stop using
the Licensed Product, CyberArts shall have the right to restrict WPT’s access
to the Licensed Product.

 

10.3.4                  In the event of termination pursuant to Section
10.2(c), CyberArts shall immediately refund to WPT (or the WPT successor
entity) any portion of the Object Code Fee or Source Code Trigger Payment
(whichever is applicable) that WPT had actually paid to CyberArts.
Notwithstanding the foregoing, CyberArts shall be entitled to any amount of the
fees related to Services (i.e., of the $150,000 credit) actually performed and
incurred upon submission of invoice to WPTE (or the successor entity).

11.          General Provisions.

11.1        Notices.
Unless otherwise provided in this Agreement, all notices under this Agreement
shall be in writing and shall be sent by facsimile with a hard copy
confirmation of receipt, or sent by express delivery service to the other party
addressed to the addressed specified on the first page of this Agreement.
Either party may change its address by written notice to the other party in the
manner set forth above. Notices shall be effective on the date of the hard copy
confirmation of receipt in the case of delivery by facsimile or on the date the
notice is delivered to the applicable address in the case of delivery by
express overnight service.

11.2  Publicity. Subject to WPT’s
prior approval, WPT agrees to participate in a press release as a named
customer.  CyberArts may disclose WPT as a customer in sales
presentations, other press releases, product brochures, and other marketing
material.

11.3  Force Majeure.
Except as otherwise set forth in this Agreement, a party will not be deemed to
have materially breached this Agreement to the extent that performance of its
obligations (except payment obligations) or attempts to cure any breach are delayed
or prevented by reason of any act of God, fire, natural disaster, accident, act
of government, or any other cause beyond the reasonable control of a party. The
party whose performance is delayed or prevented must resume performance of its
obligations as soon as practicable.

11.4   No Assignment.
Neither party shall assign, transfer or pledge this Agreement, or any interest
or rights of any kind herein, without the prior written consent of the other
party, except in connection with a merger, reorganization or sale of all or
substantially all of the business or equity interests either party. Subject to
the foregoing, this Agreement shall be binding upon and inure to the benefit of
the parties and their successors and assigns.

11.5   Independent Contractors.
In performing this Agreement, each of the parties will operate as, and have the
status of, an independent contractor. This Agreement does not create any
agency, employment, partnership, joint venture, franchise or other similar or
special relationship between the parties. Neither party will have the right or
authority to assume or create any obligations or to make any representations,
warranties or commitments on behalf of the other party or its affiliates,
whether express or implied, or to bind the other party or its affiliates in any
respect whatsoever.

11.6   Export Control and Restricted Rights.
WPT acknowledges that the Licensed Product and Services may be subject to
United States or other governments’ export and import laws and regulations, and
any use or transfer of the Licensed Product or Services must be permitted or
authorized under those regulations. Except as expressly permitted in this
Agreement, WPT shall not export or import the Licensed Product or Services. To
the extent any export or import is permitted under this Agreement, WPT shall be
responsible for ensuring that it complies with all laws and 

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regulations of the United States and other applicable governments
relating to the Licensed Product and Services.

 

11.7  Governing Law/Jurisdiction. This Agreement,
and all matters arising out of or relating to this Agreement, shall be governed
by the laws of the State of California, without giving effect to its conflicts
of law principles. It shall be deemed to be executed in San Francisco, California.
The United Nations Convention on Contracts for the International Sale of Goods
shall not apply to this Agreement. In the event of a dispute, a party shall
notify the other party of the dispute and provide a reasonable description of
the dispute. Each party shall use good faith efforts to resolve the dispute
within ten (10) business days after receipt of a dispute notice. If the parties’
business representatives are unable to resolve the dispute, or agree upon the
appropriate corrective action to be taken within such ten (10) business days,
then either party may initiate arbitration proceedings as set forth below. If
the parties are unable to resolve a dispute pursuant to the informal procedure
set forth above, the parties shall then try to resolve their dispute through
mediation. If there is still no settlement, then such dispute shall be
submitted to binding arbitration, according to the then-current Commercial
Arbitration Rules and Procedures of the American Arbitration Association. Arbitration
shall be held in San Francisco, California. The arbitration will be conducted
by one (1) impartial arbitrator to be mutually agreed upon by the parties, or a
panel of three (3) arbitrators if the parties are unable to agree upon a single
arbitrator, within thirty (30) days after the first demand for arbitration by
one party to the other. Each party will bear its own expenses for any such
binding arbitration proceedings. Judgment upon the award rendered by the
arbitrator may be entered in any court having jurisdiction.

11.8  Injunctive Relief. WPT
acknowledges and agrees that any breach of this Agreement relating to CyberArts’
intellectual property rights in the Licensed Product or Services may cause
irreparable harm to CyberArts for which recovery of money damages would be
inadequate. Therefore, in addition to any and all remedies available to CyberArts
at law or in equity, CyberArts may be entitled to obtain injunctive relief to
protect its intellectual property rights.

11.9  Severability.
If any provision of this Agreement is determined by a court of competent
jurisdiction to be invalid, illegal or otherwise unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions contained
herein shall not, in any way, be affected or impaired thereby.

11.10  Entire Agreement.
This Agreement, including all of the Exhibits, constitutes the entire agreement
of the parties concerning its subject matter and supersedes any and all prior
or contemporaneous, written or oral, negotiations, correspondence,
understandings and agreements between the parties regarding the subject matter
of this Agreement. Any additional terms in any WPT purchase order or other
ordering document are expressly rejected by CyberArts.

11.11  Execution.
This Agreement shall not be binding in whole or in part upon the parties unless
and until duly executed by or on behalf of both parties hereto, in which event
this Agreement shall be effective as of the Effective Date.

The parties hereto have caused this Agreement
to be executed by their duly authorized officers or representatives as of the
Effective Date.

 

	
  CYBERARTS LICENSING, LLC

  	
  WPT ENTERPRISES, INC.

  	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
    /s/ Kenneth M. Arnold

  	
   

  	
  By:

  	
    /s/  Adam Pliska

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
    Kenneth
  M. Arnold

  	
   

  	
  Name:

  	
    Adam
  Pliska

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
    Chairman

  	
   

  	
  Title:

  	
      General
  Counsel

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fax:

  	
   

  	
   

  	
  Fax:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date:

  	
   

  	
   

  
												

 

 8
 

 

 

EXHIBIT A

LICENSED PRODUCT AND FEES

This Exhibit A is
dated as of                ,
20       and is incorporated by reference and is
part of the Appliance Agreement dated                 ,
20      by and between WPT and CyberArts.

	
  Item Description

  	
   

  	
  Fees (in USD)

  	
   

  	
  Payment Terms

  
	
  1.Licensed
  Product:  FoundationTM Poker, including Foundation Server, Client
  (windows client for poker), back office management suite of banking and
  cardroom management tools. Platform restrictions Windows.

  	
   

  	
  For Object Code: $1,300,000

   

   

  For
  Source Code: $4,000,000 less any amounts previously paid
  for Object Code License

  	
   

  	
  $1,300,000 due upon the
  Effective Date (“The Object Code Fee”).

   

   

  Trigger payment to
  obtain Source Code to be made and received concurrently or before the date of
  release of Source Code to WPT (“Source Code Trigger
  Payment”).

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.Services.
  $150,000 worth of free Services in accordance with Exhibit
  B and thereafter due at the rates in Exhibit C. 

  	
   

  	
  $0

  	
   

  	
  Due in accordance with
  Exhibit B.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.Support
  and Maintenance Services.(1). 

  	
   

  	
  $180,000

  	
   

  	
  Due annually on the
  Effective Date for as long as WTP requires Support and Maintenance Services. 

  

IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be executed by their duly authorized officers or
representatives as of the Effective Date.

	
  CYBERARTS LICENSING, LLC

  	
         WPT
  ENTERPRISES, INC.

  
	
   

  	
   

  
	
  By:

  	
   /s/ Kenneth M. Arnold

  	
   

  	
  By:

  	
  /s/ Adam Pliska

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   Kenneth M.
  Arnold

  	
   

  	
  Name:

  	
  Adam Pliska

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
    Chairman

  	
   

  	
  Title:

  	
  General Counsel

  	
   

  
										

 

 9Exhibit 10.5

EMPLOYMENT AGREEMENT

THIS AGREEMENT (“Agreement”) is made and entered into
this 3rd day of August, 2006, by and between Scott P. Mitchell (the “Executive”)
and Think Partnership Inc., a Nevada corporation (the “Company”).

WHEREAS, the Company desires to employ the Executive
and the Executive desires to accept such employment;

NOW, THEREFORE, in consideration of the promises,
mutual covenants and agreements contained herein, the Company and the Executive
do hereby agree as follows:

1.   Employment and Duties.   On
the terms and subject to the conditions set forth in this Agreement, the
Company agrees to employ the Executive as the President and Chief Executive
Officer of the Company to perform such duties and responsibilities as are
consistent with such positions.

2.   Performance.   The
Executive accepts the employment described in Section 1 above, and
agrees to faithfully and diligently perform the duties and responsibilities
described therein. The Executive shall devote time and attention to matters of
the Company such that the Executive’s services to the Company constitute his
primary business activity. The Company acknowledges that the Executive may (i)
engage in charitable and community affairs (including serving on the board of
directors or similar management body of any charitable or community
organization), (ii) serve on the board of directors of or act as a consultant
to other companies which are not engaged in a business that directly competes
with the Company Business (as defined in Section 18 below), and (iii)
make personal investments in public and private companies; provided, however,
that Executive shall not have beneficial ownership (A) in excess of 10% in any
public entity, (B) in any private entity which directly competes with the
business of the Company, unless such investment is approved by the
disinterested members of the Company’s board of directors.

3.   Term.   The
term of employment under this Agreement shall commence on the date of this
Agreement (the “Commencement Date”) and shall continue for a period of five (5)
years thereafter (the “Employment Period”); provided, however, that on the
fourth anniversary of the Commencement Date the Employment Period shall be
automatically extended for an additional year, and on every anniversary date
after the fourth anniversary date the Employment Period shall be automatically
extended an additional year, unless at least sixty (60) days before such
anniversary, either the Executive or the Company, as the case may be, notifies
the other of its desire not to further extend the Employment Period; and
provided, further, that the Employment Period shall terminate upon the earliest
to occur of the events described in Section 14 hereunder. For purposes
of this Agreement, “Balance of the Term” shall mean the period beginning on the
date of termination and ending on the date that the Employment Period would
have ended pursuant to this Section 3 due to lapse of time (assuming no
further extensions of the Employment Period beyond those already approved as of
the date of termination), without regard to Section 14.

 

4.   Salary.   For
all the services to be rendered by the Executive hereunder, the Company agrees
to pay, during the Employment Period, a base salary (“Salary”) at an initial
rate of four hundred and eighty five thousand Dollars ($485,000.00) per
Contract Year, payable in the manner and frequency in which the Company’s
payroll is customarily handled. In addition, Executive shall receive an
additional $10,000 per Contract Year in compensation to be allocated and paid
by the Company at the direction of Executive for a car allowance, additional
insurance or other benefits. For purposes of this Agreement, “Contract Year”
shall mean a one-year period commencing on the Commencement Date or on any
anniversary of the Commencement Date. The Company may increase the Executive’s
Salary at any time, or from time to time, during the Employment Period,
provided, however, that the Company may not at any time reduce the Salary from
its then-current level. During the term of this Agreement, the combined Salary
and Annual Cash Bonus (as hereinafter defined) paid to Executive during any
Contract Year shall be higher than the combined Salary and Annual Cash Bonus
paid to any other employee of the Company. Executive shall, in any event,
receive as combined Salary and Annual Cash Bonus no less than 90% of the
combined Salary and Annual Cash Bonus paid to the Chief Executive Officer
during each year of this Agreement. 

5.   Incentive Compensation.   In
addition to the Executive’s Salary, the Executive shall be eligible to
participate in and receive awards under any other stock-based plans of the
Company pursuant to Section 12 below (“Incentive Compensation”).

6.   Cash Bonus Compensation.   The
Executive shall be entitled to the following bonus compensation:

(a)   Annual Cash Bonusl.   At
the end of each fiscal year of the Company, the Executive shall be entitled to
an annual cash bonus determined by the Board of Directors (the “Annual Cash
Bonus”). In the event the Executive’s employment is terminated during a
Contract Year, the Executive shall be entitled to an annual cash bonus
pro-rated based on the number of days he was an employee of the Company during
the Contract Year prior to the date of termination. The Company shall pay the
Annual Cash Bonus to the Executive no later than thirty (30) days after the
completion of the audit for such fiscal year or, in the event the Employment
Period is terminated during the Contract Year, thirty (30) days after the date
the Employment Period is terminated, unless this Agreement provides a different
payment schedule for the Annual Cash Bonus to be paid in the event of
termination.

(b)   Additional Bonus.   The
Executive shall be eligible to receive additional cash bonuses pursuant to Section
10 below.

7.   Vacation.   The
Executive shall be entitled to take vacations with pay, in a reasonable amount
during each year of service under this Agreement, to be taken during the year
at such time or times deemed reasonable by the Executive. Unused vacation time
shall not be accumulated from one year to the next..Unused vacation time shall
not be accumulated from one year to the next.

 2
 

 

8.   Sick Leave.   In
accordance with the policies and rules governing the sick leave of senior
management, the Executive shall be allowed paid sick leave during each year of
service under this Agreement. Unused sick leave shall not be accumulated from
one year to the next.

9.   Disability Benefit.   If
at any time during the Employment Period the Executive is unable to perform fully
his duties hereunder for a period of six (6) consecutive months by reason of
illness, accident, or other physical or mental disability (as confirmed by
competent medical evidence) and such condition may reasonably be expected to be
permanent (“Total Disability”), the Executive shall be entitled to receive
within thirty (30) days of the date of determination of the Total Disability
(i) any accrued but unpaid Salary, Annual Cash Bonus (determined in accordance
with Section 6(a)), and prorated vacation, and any other amounts accrued
but unpaid as of the date of termination. In addition, the Executive shall
receive the Salary for an additional six (6) months following determination of
the Total Disability, payable at the regular monthly intervals then in effect.
If any dispute regarding the existence of the Executive’s Total Disability
arises, each party shall appoint a physician and such physicians shall jointly
appoint a third physician, the decision of any two (2) of such physicians
regarding the existence of Total Disability shall be binding upon the parties.

10.   Death Benefit.   In
the event of the death of the Executive during the Employment Period, the
Company shall pay within thirty (30) days of the date of death any accrued but
unpaid Salary, Annual Cash Bonus (determined in accordance with Section 6(a))
and prorated vacation, and any other amounts accrued but unpaid as of the date
of termination. In addition, the Executive shall receive the Salary for an
additional six (6) months following the date of termination, payable at the
regular monthly intervals then in effect. The benefits payable under this Section
10 shall be paid to the person or persons designated by the Executive on
the form provided by the Company or, in the absence of such a designation, as
follows: (i) to the Executive’s spouse if she survives him; (ii) if the
Executive’s spouse fails to survive the Executive, then in equal shares to the
Executive’s children who survive him; or (iii) if neither Executive’s spouse
nor any child survives the Executive, then all to the Executive’s estate.

11.   This section intentionally left blank.

12.   Other Compensation, Benefits and Perquisites.   The
Executive’s Salary shall be as described in Section 4 above; his Annual
Cash Bonus shall be as described in Section 6(a) above; his vacation
shall be as described in Section 7 above; and his sick leave, disability
benefit, death benefit shall be as described in Sections 8, 9, and 10
above, respectively. In addition to the aforesaid types of compensation,
benefits and perquisites and additional compensation set forth in Section 4,
the Executive shall be entitled to participate in all other types of
compensation, benefits and perquisites then available to executive management
as approved by the Board of Directors, such as, but not limited to: cash
bonuses in addition to guaranteed cash bonuses; stock option plans; 401(k)
plans; welfare plans; business travel policies; medical insurance; dental
insurance; dues, fees and costs (including travel) associated with membership
and participation in professional, educational and other clubs and
organizations, and attendance at professional, educational and other programs,
presentations, workshops, seminars and conventions.

 3
 

 

13.   Business Expense Reimbursement.   Executive
is authorized to incur reasonable expenses in carrying out his duties and
responsibilities under this Agreement, including, without limitation, expenses
for travel, entertainment and similar items related to such duties and
responsibilities (“Business Expenses”). The Company shall provide the Executive
with a Company corporate credit card to be used by Executive to cover Business
Expenses and the Company agrees to pay the monthly credit card bills. The
Company will reimburse Executive for all such out-of-pocket Business Expenses
incurred by the Executive upon presentation by Executive, from time to time, of
accounts of such expenditures (appropriately itemized and approved consistent
with the Company’s policy).

14.   Termination.

(a)   Unilateral Termination.   The
Employment Period may be terminated by the Executive at any time by written
notice of termination given to the other party at least ninety (90) days in
advance of the termination date stated in such notice.

(b)   Termination for Just Cause.   The
Company shall have the option to terminate the Employment Period, effective
upon written notice of such termination to the Executive, for Just Cause as
determined by the Executive Committee. For purposes of this Agreement, the term
“Just Cause” shall mean the occurrence of any one or more of the following
events:

(i)     The
willful and continued failure by the Executive to substantially perform his
duties with the Company (other than any such failure resulting from termination
by Total Disability, retirement or death) after a demand for substantial
performance is delivered to the Executive that specifically identifies the
manner in which the Company believes that the Executive has not substantially
performed his duties, and the Executive fails to resume substantial performance
of his duties on a continuous basis within fourteen (14) days of receiving such
demand; provided, that if such breach is not capable of being cured within a 14
day period, Executive will have a reasonable additional period to cure such
breach but only if Executive promptly commences and continues good faith
efforts to cure such breach;

(ii)    The
Executive’s engaging in conduct which is demonstrably and materially injurious
to the Company, monetarily or otherwise, and willful disloyalty or deliberate
dishonesty or the commission by Executive of an act of fraud or embezzlement
against the Company; or

(iii)   The
Executive’s conviction of a felony or a misdemeanor, other than traffic related
or similar minor misdemeanors, either in connection with the performance of
Executive’s obligations to the Company or which otherwise materially and
adversely affects Executive’s ability to perform such obligations.

 4
 

 

For purposes of this subsection (b), an act, or
failure to act, on the Executive’s part, shall not be deemed “willful” unless
done, or omitted to be done, by the Executive not in good faith and without a
reasonable belief that his action or omission was in the best interest of the
Company.

(c)   Termination Upon Death.   The
Employment Period shall automatically terminate upon the death of the
Executive, without further action by the Company.

(d)   Termination Upon Disability.   The
Employment Period shall terminate thirty (30) days after the Company notifies
the Executive of a determination of Total Disability (as defined above) of the
Executive, provided the Executive does not dispute such determination as
provided in Section 9 hereof, in which case the date of termination for
Total Disability shall be the date the Executive is determined to have a Total
Disability pursuant to Section 9 hereof.

(i)   Termination for Good Reason.   The
Executive shall have the right to resign for Good Reason (as defined below).
For purposes of this Agreement, “Good Reason” shall mean (i) any material
breach by the Company of its obligations hereunder which is not cured within
fourteen (14) days of written notice from the Executive to the Company
describing such breach, provided that if such breach is not capable of being
cured within such 14 day period, the Company will have a reasonable additional
period to cure such breach but only if the Company promptly commences and
continues good faith efforts to cure such breach, or (ii) any transfer of the
Executive’s principal work location to a location outside of Clearwater,
Florida without the Executive’s prior written consent.

15.   Surrender of Properties.   Upon
termination of the Executive’s employment with the Company, regardless of the
reason therefore, the Executive shall promptly surrender to the Company all
property provided him by the Company for use in relation to his employment and,
in addition, the Executive shall surrender to the Company any and all sales
materials, lists of customers and prospective customers, price lists, files,
records, models, or other materials and information of or pertaining to the
Company or its customers or prospective customers or the products, business,
and operations of the Company.

16.   Headquarters.   The
Company acknowledges that the Executive shall be based in Clearwater, Florida
during the Employment Period.

17.   Severance Pay.   Notwithstanding
any other provision of this Agreement, if the Employment Period is terminated
by the Executive for Good Reason, or if the Company causes the non-renewal of
the Employment Period pursuant to Section 3 herein, the Company shall
pay the Executive (i) any accrued but unpaid Salary, prorated Annual Cash Bonus
(determined in accordance with Section 6(a)) and prorated vacation, and
any other amounts accrued but unpaid as of the date of termination, and
(ii) a lump-sum severance payment equal to the unpaid Salary of the
Balance of the Term at the then-current level. In addition, (i) the Company
shall continue all medical, dental and life insurance benefits at no cost to
the Executive for the greater of (A) twelve (12) months, commencing on the date
of termination of the 

 5
 

 

Employment Period, or (B) the Balance of the Term (the
provision by the Company of any such group health benefits shall not be
considered continuation coverage pursuant to Section 4980B of the Internal
Revenue Code of 1986, as amended (the “Code”), and such continuation coverage
shall commence on the date that benefits provided hereunder cease), except if
Executive begins new employment or service for another person or entity that
offers comparable health insurance, such benefits shall immediately cease and
(ii) the ownership of all restricted stock and options granted to the Executive
by the Company under this Agreement or any other agreement shall vest to the
extent provided for in the applicable stock option or other agreement governing
the issuance thereof. Other than as provided herein, if the Employment Period
is terminated by the Executive pursuant to Section 14(a) or by the
Company as provided in Section 14(b) of this Agreement, or if the
Executive causes the non-renewal of the Employment Period pursuant to Section
3 herein, the Company shall pay to the Executive in a lump sum payment any
accrued but unpaid Salary, prorated Annual Cash Bonus (determined in accordance
with Section 6(a)) and prorated vacation, and any other amounts accrued
but unpaid as of the date of termination. Any severance payable pursuant to
this Section 17 shall be paid to the Executive in one lump sum within
ten (10) days after termination of the Employment Period.

18.   Restrictive Covenants.   In
addition to any other obligation of the Executive under any other agreement
with the Company, in order to assure that the Company will realize the benefits
of this Agreement and in consideration of the employment set forth in this
Agreement, the Executive agrees that he shall not during the Employment Period
and for a period of six (6) months (the “Restricted Period”) from the
termination of the Employment Period:

(a)    Directly
or indirectly, alone or as a partner, joint venturer, member, officer,
director, employee, consultant, agent, independent contractor, stockholder or
in any other capacity of any company or business, engage in any business
activity in any state in the United States or in any other country in which the
Company (i) is qualified to do business on the date of termination of the
Employment Period, or (ii) has planned (pursuant to a plan approved by the
Board of Directors) to be qualified to do business, which is directly or
indirectly in competition with the Company Business; provided, however, that,
the beneficial ownership of less than 5% of the shares of stock of any
corporation having a class of equity securities actively traded on a national
securities exchange or over-the-counter market shall not be deemed, in and of
itself, to violate the prohibitions of this Section;

(b)    Directly
or indirectly (i) induce any person which is a customer of the Company or any
subsidiary or affiliate of the Company on the date of the termination of the
Employment Period to patronize any business directly or indirectly in
competition with the Company Business; (ii) canvass, solicit or accept from any
person that is a customer of the Company or any subsidiary or affiliate of the
Company on the date of the termination of the Employment Period, any such
competitive business, or (iii) request or advise any person that is a customer
of the Company Business on the date of the termination of the Employment Period
to withdraw, curtail, or cancel any such customer’s business with the Company
or any affiliate or subsidiary of the Company;

 6
 

 

(c)    Directly
or indirectly employ, or knowingly permit any company or business directly or
indirectly controlled by him, to employ, any person who was employed by the
Company or any subsidiary or affiliate of the Company on the date of the
termination of the Employment Period or within six (6) months prior to the date
of termination of the Employment Period, or in any manner seek to induce any
such person to leave his or her employment;

(d)    For
purposes of this Agreement, “Company Business” shall mean providing online
advertising services and certain related consumer services which includes
search engine marketing, affiliate marketing, online lead generation, online
dating, and online education..

(e)    The
Executive agrees and acknowledges that the restrictions contained in this Section
18 are reasonable in scope and duration and are necessary to protect the Company
after the Commencement Date. If any provision of this Section 18 as
applied to any party or to any circumstance is adjudged by a court to be
invalid or unenforceable, the same will in no way affect any other circumstance
or the validity or enforceability of this Agreement. If any such provision, or
any part thereof, is held to be unenforceable because of the duration of such
provision or the area covered thereby, the parties agree that the court making
such determination shall have the power to reduce the duration and/or area of
such provision, and/or to delete specific words or phrases, and in its reduced
form, such provision shall then be enforceable and shall be enforced. The
parties agree and acknowledge that the breach of this Section will cause irreparable
damage to the Company and upon breach of any provision of this Section, the
Company shall be entitled to injunctive relief, specific performance or other
equitable relief; provided, however, that this shall in no way limit any other
remedies which the Company may have (including, without limitation, the right
to seek monetary damages).

19.   Confidentiality of Information Duty of
Non-Disclosure.   The Executive
acknowledges and agrees that his employment by the Company under this agreement
necessarily involves his understanding of and access to certain trade secrets
and confidential information pertaining to the Company Business. Accordingly,
the Executive agrees that after the date of this Agreement at all times,
whether during or after the termination of the Employment Period, he will not,
directly or indirectly, without the prior written consent of the Company,
disclose to or use for the benefit of any person, corporation or other entity,
or for himself any and all files, trade secrets or other confidential
information concerning the internal affairs of the Company or its subsidiaries
or affiliates, including, but not limited to, information pertaining to its
clients, services, products, earnings, finances, operations, methods or other
activities; provided, however, that the foregoing shall not apply to
information which is of public record or is generally known, disclosed or
available to the general public or the industry generally. Further, the
Executive agrees that he shall not, directly or indirectly, remove or retain,
without the express prior written consent of the Company, and upon termination
of this Agreement for any reason shall return to the Company, any figures,
calculations, letters, papers, records, computer disks, computer print-outs,
customer lists, price lists, other lists, contracts, business plans, forms,
manuals, other documents, instruments, drawings, designs, programs, brochures,
sales literature, or any copies or reproductions thereof, or any information or
instruments derived therefrom, or any other similar information of any type or
description, however such information might be obtained or 

 7
 

 

recorded, arising out of or in any way relating to the
business of the Company or obtained as a result of his employment by the
Company. The Executive acknowledges that all of the foregoing are proprietary
information, and are the exclusive property of the Company.

20.   Enforcement.

(a)    Upon
presentation of a claim or claims (collectively, “Claims”) arising out of or
relating to this Agreement, or the breach hereof, by an aggrieved party, the
other party shall have sixty (60) days in which to make such inquiries of the aggrieved
party and conduct such investigations as it believes reasonably necessary to
determine the validity of the Claims. At the end of such period of
investigation, the complained of party shall either pay the amount of the
Claims or the arbitration proceeding described immediately below shall be
invoked.

(b)    In the
event that the Claims are not settled by the procedure set forth immediately
above, the Claims shall be submitted to arbitration conducted in accordance
with the Commercial Arbitration Rules (“Rules”) of the American Arbitration
Association (“AAA”) except as amplified or otherwise varied hereby.

(c)    The
parties shall submit the dispute to the Atlanta regional office of the AAA and
the site of the arbitration shall be Pinellas County, Florida.

(d)    The
arbitration shall be conducted by a single arbitrator. The parties shall
appoint the single arbitrator to arbitrate the dispute within ten (10) business
days of the submission of the dispute. In the absence of agreement as to the
identity of the single arbitrator to arbitrate the dispute within such time,
the AAA is authorized to appoint an arbitrator in accordance with the Rules,
except that the arbitrator shall have as his principal place of business the
Tampa/St.Petersburg/Clearwater metropolitan area.

(e)    The single
arbitrator selected by the AAA shall be an attorney, accountant or other
professional licensed to practice by the State of Florida.

(f)     Notwithstanding
anything in the Rules to the contrary, the arbitration award shall be made in
accordance with the following procedure. Each party shall, at the commencement
of the arbitration hearing, submit an initial statement of the amount each
party proposes be selected by the arbitrator as the arbitration award (“Settlement
Amount”). During the course of the arbitration, each party may vary its
proposed Settlement Amount. At the end of the arbitration hearing, each party
shall submit to the arbitrator its final Settlement Amount (“Final Settlement
Amount”), and the arbitrator shall be required to select either one or the
other Final Settlement Amounts as the arbitration award without discretion to
select any other amount as the award. The arbitration award shall be paid
within ten (10) business days after the award has been made, together with
interest from the date of award at the rate of six percent (6%). Judgment upon
the award may be entered in any federal or state court having jurisdiction over
the parties and shall be final and binding.

 8
 

 

21.   Costs of Enforcement.   The
losing party in any action to enforce the terms of this Agreement shall
reimburse the other for reasonable attorneys’ fees and costs incurred by the
other in connection with any claim brought.

22.   No Duty to Mitigate or Offset.   The
Executive shall not be required to mitigate or offset the amount of any
payments that the Executive may receive from the Company as a result of the
termination of the Employment Period. The amounts payable hereunder by the
Company as a result of the termination of the Employment Period shall be
considered liquidated damages and shall not be reduced by any amounts that the
Executive earns through other employment or otherwise, except that the Company’s
obligation to continue medical, dental and life insurance benefits pursuant to Section
17 herein, shall be reduced by the amount of any such benefits provided to
the Executive by any other employer.

23.   Indemnification.   The
Company will indemnify Executive in accordance with that certain
Indemnification Agreement, of even date herewith, by and between the Company
and Executive.

24.   Directors and Officers Insurance.   The
Executive shall be entitled to the protection of any insurance policies the
Company or any of its affiliates from time to time maintains for the benefit of
its senior executive officers and directors (or substantially similar policies)
respecting liabilities, costs, charges, and expenses of any type whatsoever
incurred or sustained by the Executive in connection with any action, suit or
proceeding to which the Executive may be made a party or may be threatened to
be made a party by reason of the Executive’s being or having been a director,
officer, employee or agent of the Company or serving or having served at the
request of the Company as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise.

25.   General Provisions.

(a)   Notice.   Any
notice or demand required or permitted hereunder shall be made in writing (i)
either by actual delivery of the notice or demand into the hands of the party
thereunder entitled, or (ii) by the mailing of the notice or demand in the
United States mail, certified or registered mail, return receipt requested, all
postage prepaid and addressed to the party to whom the notice or demand is to
be given at the party’s respective address set forth below, or such other
address as the parties may from time to time designate by written notice as
herein provided.

As addressed to
the Company:

Think Partnership Inc.

Attention: Chief Executive Officer

 9
 

 

With a copy to:

Shefsky & Froelich Ltd.

111 East Wacker Drive

Suite 2800

Chicago, Illinois 60601

Attention: Michael J. Choate

As addressed to
the Executive:

Scott P. Mitchell

3844 Wellington Parkway

Palm Harbor, FL 34685

With a copy to:

Law Offices of Nicholas Taldone

2536 Countyside Blvd.

Clearwater, FL 33763

Attention: Nicholas Taldone

The notice or demand shall be deemed to be received in
case (i) on the date of its actual receipt by the party entitled thereto and in
case (ii) on the date of its mailing.

(b)   Amendment and Waiver.   No
amendment or modification of this Agreement shall be valid or binding upon the
Company unless made in writing and signed by an officer of the Company (not
including Executive) duly authorized by the Board of Directors (excluding the
vote of Executive) or upon the Executive unless made in writing and signed by
him. The waiver by either party hereto of the breach of any provision of this
Agreement shall not operate or be construed as a waiver of any subsequent
breach by such party.

(c)   Entire Agreement.   This
Agreement constitutes the entire Agreement between the parties with respect to
the Executive’s duties and compensation as an executive of the Company and
shall supersede any and all prior agreements or understandings between the parties
hereto; there are no representations, warranties, agreements or commitments
between the parties hereto with respect to his employment except as set forth
herein.

(d)   Governing Law.   This
Agreement shall be governed by and construed in accordance with the internal
laws (and not the law of conflicts) of the State of Florida.

(e)   Severability.   If
any provision of this Agreement shall, for any reason, be held unenforceable by
a court of competent jurisdiction, such provision shall be severed from this
Agreement unless, as a result of such severance, the Agreement fails to reflect
the basic intent of the parties. If the Agreement continues to reflect the
basic intent of the parties, then the invalidity of such specific provision
shall not affect the 

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enforceability of any other provision herein, and the
remaining provisions shall remain in full force and effect.

(f)   Assignment.   The
Executive may not under any circumstances delegate any of his rights and
obligations hereunder without first obtaining the prior written consent of the
Company. The Company shall cause this Agreement and all of the Company’s rights
and obligations hereunder to be assigned and expressly assumed by any successor
to all or substantially all of the business and/or assets of the Company,
whether direct or indirect, by purchase, merger, consolidation or otherwise,
including upon a Change in Control (as defined in Section 14(e));
provided, however, that any such assignment shall not relieve the Company of
its obligations hereunder to the extent that an assignee does not fulfill such
obligations.

(g)   Heirs.   This
Agreement shall inure to the benefit of and be enforceable by the Executive’s
personal or legal representatives, executors, administrators, successors,
heirs, distributees, devisees and legatees. If the Executive should die while
any amount would still be payable to him hereunder if he had continued to live,
all such amounts, unless otherwise provided herein, shall be paid in accordance
with the terms of this Agreement to the Executive’s devisee, legatee or other
designees or, if there is no such designee, to the Executive’s estate.

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

	
  

  	
  THINK PARTNERSHIP INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jody Brown

  
	
   

  	
   

  	
  Jody Brown, Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
  /s/ Scott P. Mitchell

  
	
   

  	
  Scott P. Mitchell

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