Document:

pvsp_ex102.htm

Exhibit 10.2

 

 

SECURITIES SETTLEMENT AGREEMENT

THIS AGREEMENT (“Agreement”) is by and between Magna Group, LLC (“CLAIMANT”) and the undersigned ("COMPANY" or "DEBTOR") and is entered into as of the effective date below, all with reference to the following facts, which the parties agree are true and correct:

RECITALS

CLAIMANT acquired, on or about this date, certain debt rights, noted below, of the COMPANY;

CLAIMANT is, a creditor of the COMPANY entitled to payment and seeks conversion of outstanding debt securities;

DEBTOR seeks to avoid dispute, retire debt from its books and records, make effort to improve its financial picture for potential acquisition and future fundings by eliminating or limiting the extent of debt the DEBTOR faces, and allow such conversion rights desired by the CLAIMANT;

THEREFORE, THE PARTIES AGREE TO SETTLE, AND THE PURPOSE OF THIS AGREEMENT IS TO REFLECT SUCH SETTLEMENT;

 

 

NOW THEREFORE, the parties hereto hereby represent, warrant, and covenant with and to each other and confirm all of the above and following to professionals, and the transfer agent of COMPANY and others to whom it may concern, as follows:

1. Obligations Owing. Reference is made to the debt securities identified on the signature page hereof (the "Debt").  As to the Debt, any past or current dispute, potential defenses and disputed considerations, etc., are waived by the COMPANY, and the debt obligation is hereby confirmed as owed. The COMPANY ratifies and confirms the validity of the Purchase and Assignment Agreement by and between the CLAIMANT acting as an investor and the prior claimant.

2. Exchange.  CLAIMANT and the COMPANY hereby agree to confirm the exchange of the Debt for securities of the COMPANY as follows: based upon the provisions of this Agreement the COMPANY is to repay an amount equal to the principal amount of the Debt ("Principal") with interest at a rate set below per annum ("Interest") by the "Maturity Date" (below) with conversion rights to the CLAIMANT so that, at the election of the CLAIMANT, it may convert the Principal in whole or part from time to time into shares of common stock in the COMPANY (the "Shares"). This obligation of the COMPANY is in the nature of a debenture, but in lieu of issuing a debenture form, the COMPANY shall honor the exchange, payment obligation and conversion rights per this Agreement. Thus, concurrently with the execution of this Agreement, CLAIMANT surrenders hereby the Debt and its interest in the Debt strictly for the payment, conversion, Shares and related rights under this securities Agreement.  (CLAIMANT will endeavor to use best efforts, for non material file recording, to deliver to the COMPANY any promissory notes, commercial paper, or other evidences of the Debt but such ministerial obligation shall not be a condition to the conversion, Shares, and enforcement rights of this Agreement by CLAIMANT.) With reference to Rule 144 promulgated under the Securities Act of 1933, as amended, the exchange hereby is made without any additional consideration applicable.

  

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3.  Payment of Principal and Interest.  The COMPANY promises to pay to CLAIMANT the Principal and Interest on the Maturity Date, or sooner if required hereby, unless to the extent of any completed conversion of Principal and or Interest as stated herein.

THE COMPANY MAY PREPAY ANY PORTION OF THE PRINCIPAL AMOUNT AT 70% OF SUCH AMOUNT, ALONG WITH ANY ACCRUED INTEREST AT ANY TIME UPON THREE DAYS WRITTEN NOTICE TO THE CLAIMANT.

4, Events of Default  "Event of Default," wherever used herein, means any one of the following events (whatever the reason and whether it shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court, or any order, rule or regulation of any administrative or governmental body):

(A)           any default in the payment of the principal of, interest on, or liquidated damages in respect to this Agreement, free of any claim of subordination, as and when the same shall become due and payable (whether on a Conversion Date or the Maturity Date or by acceleration or otherwise); and or

(B)           the COMPANY shall commence, or there shall be commenced against it, a case under any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or the COMPANY commences any other proceeding under any reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect relating to the COMPANY is commenced against the COMPANY; or the COMPANY is adjudicated insolvent or bankrupt; or any order of relief or other order approving any such case or proceeding is entered; or the COMPANY suffers any appointment of any custodian or the like for it or any substantial part of its property which continues undischarged or unstayed for a period of 5 Business Days; or the COMPANY makes a general assignment for the benefit of creditors; or the COMPANY shall fail to pay, or shall state that it is unable to pay, or shall be unable to pay, its debts generally as they become due; or the COMPANY shall call a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of any debt or the COMPANY or shall by any act or failure to act expressly indicate its consent to, approval of or acquiescence in any of the foregoing or any corporate or other action is taken by the COMPANY for the purpose of effecting any of the foregoing; and or

(C)           the COMPANY shall fail to file all reports required to be filed by it with the SEC pursuant to Section 13 or 15(d) of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise required by the Exchange Act or as required to be deemed a current public company as to disclosure including on any exchange or over the counter trading medium and or the COMPANY is in, or accused of, being in violation of any law or regulation by written demand, court proceeding or similarly; and or

  

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(D)    the material breach of any promise or representation in this Agreement and or related representation or agreement made by the COMPANY and or any of its officers, which shall include, without limitation, the failure to deliver shares of common stock due CLAIMANT on a conversion within four Business Days from the date of conversion or sooner, which delivery must be otherwise made per reasonable specifications of the CLAIMANT (e.g. to brokerage firm account).

If any Event of Default occurs and is continuing, the full Principal amount of this Agreement, together with Interest and other amounts owing in respect thereof, shall become immediately due and payable in cash except the CLAIMANT may elect any part thereof to be paid in Shares as part of any conversion hereunder in which case such Shares shall be due.

5. Conversion of Debt into Common Stock.

(A) At any time until both the Principal and Interest is paid in full and all conversions have been honored by the COMPANY and this Agreement is no longer outstanding, this Agreement, including interest and principal, shall be convertible into shares of Common Stock in the COMPANY at 90 percent of the VWAP for the Common Stock during the 3 trading days prior to conversion.  The CLAIMANT shall effect conversions by delivering to the COMPANY the form of Notice of Conversion attached hereto as Exhibit A (a "Notice of Conversion"), specifying the date on which such conversion is to be effected (a "Conversion Date") and Shares shall then be delivered by the COMPANY within four Business Days. If no Conversion Date is specified in a Notice of Conversion, the Conversion Date shall be the date that such Notice of Conversion is provided hereunder. To effect conversions hereunder, the CLAIMANT shall not be required to otherwise physically surrender anything to the COMPANY.  CLAIMANT shall not sell any Shares until COMPANY has delivered the Shares to CLAIMANT’S brokerage account.

(B) The COMPANY covenants that it will at all times reserve and keep available out of its authorized and unissued shares of Common Stock solely for the purpose of issuance upon conversion of this Agreement.

(C) Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (i) the date of transmission, (ii) the date after the date of transmission, if such notice or communication is delivered via facsimile, (iii) the first Business Day following the date of mailing, if sent by nationally recognized overnight courier service, or  (iv) upon actual receipt by the party to whom such notice is required to be given.

  

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Notwithstanding anything to the contrary herein contained, the CLAIMANT may not convert this Agreement to the extent such conversion would result in the CLAIMANT, together with any affiliate thereof, beneficially owning (as determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act") and the rules promulgated thereunder) in excess of 3.99% of the then issued and outstanding shares of Common Stock, including shares issuable upon such conversion and held by the CLAIMANT after application of this section.

6. Definitions, unless otherwise defined herein:

                  "Business Day" means any day except Saturday, Sunday and any day which shall be a federal legal holiday in the United States or a day on which banking institutions in the State of New York are authorized or required by law or other government action to close.  Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day.

                  "Common Stock" means the common stock of the COMPANY and stock of any other class into which such shares may hereafter have been reclassified or changed.

                  "Person" means a corporation, an association, a partnership, organization, a business, an individual, a government or political subdivision thereof or a governmental agency.

                    "Securities Act" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

7. Claimant Status.  CLAIMANT represents and the COMPANY confirms such representation, as follows:

CLAIMANT believes it is not an affiliate, now or by way of this Agreement, and relies upon the COMPANY knowledge of the members of the board of directors and officers in such regard (COMPANY represents to CLAIMANT that it has concluded and CLAIMANT may rely upon same, that CLAIMANT is not and will not be, by way of this Agreement, an affiliate of the COMPANY.); and

CLAIMANT is (i) an "accredited investor" as that term is defined in Rule 501 of the General Rules and Regulations under the Securities Act of 1933, as amended, the  "Act" by reason of Rule 501 and  (ii) able, by reason of the business and financial experience of its officers (if an entity) and professional advisors, as a sophisticated investor.

8. Other Concerns.  CLAIMANT has no responsibility for action or inaction by the DEBTOR nor faced or faces or will face responsibility for determinations of management of the COMPANY.   The parties also recognize and acknowledge that as a result of this Agreement, the parties have entered into a confidential relationship as to this document, except to the requirements of law to the contrary, and they have negotiated and entered into this Agreement in good faith and without any duress. COMPANY has, notwithstanding anything, obtained counsel of its own choosing on the legality of the subject including the issuance of the Shares hereby without legend or restriction. COMPANY agrees and represents that notwithstanding anything, including emails and meetings and calls, if any, at no time is any non public information about or relating to the COMPANY supplied to the CLAIMANT by the COMPANY or any affiliate or representative.  CLAIMANT shall not sell Shares in excess of 30% of the daily trading volume of the Shares and CLAIMANT shall not short sell, hedge, or engage in any strategies to depress the trading price of the Shares.

  

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9.   Miscellaneous. 

A.           Gender.  Wherever the context shall require, all words herein in the masculine gender shall be deemed to include the feminine or neuter gender, all singular words shall include the plural, and all plural shall include the singular.

B.           Severability.  If any provision hereof is deemed unenforceable by a court of competent jurisdiction, the remainder of this Agreement, and the application of such provision in other circumstances shall not be affected thereby.

C.           Further Cooperation.  From and after the date of this Agreement, each of the parties hereto agrees to execute whatever additional documentation or instruments as are necessary to carry out the intent and purposes of this Agreement or to comply with any law. However, this shall not require any additional documents or acts by CLAIMANT  for CLAIMANT to obtain and dispose of the subject shares.

D.           Waiver.  No waiver of any provision of this Agreement shall be valid unless in writing and signed by the waiving party.  The failure of any party at any time to insist upon strict performance of any condition, promise, agreement or understanding set forth herein, shall not be construed as a waiver or relinquishment of any other condition, promise, agreement  or understanding set  forth herein or of the right to insist upon strict performance of such waived condition, promise, agreement or understanding at any other time.

E.           Expenses.  Except as otherwise provided herein, or agreed in writing, each party hereto shall bear all expenses incurred by each such party in connection with this Agreement and in the consummation of the transactions contemplated hereby and in preparation thereof.

F.           Amendment.  This Agreement may only be amended or modified at any time, and from time to time, in writing, executed by the parties hereto.

  

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G.           Notices.  Any notice, communication, request, reply or advice (hereinafter severally and collectively called "Notice”) in this Agreement provided or permitted to be given, may be made or be served by delivering same by overnight mail or by delivering the same by a hand-delivery service, such Notice shall be deemed given when so delivered or sooner as stated within this Agreement.

H.           Captions.  Captions herein are for the convenience of the parties and shall not affect the interpretation of this Agreement.

I.           Counterpart Execution.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall consti­tute one and the same instrument and this Agreement may be executed by fax or email.

J.           Assignment.  This Agreement is not assignable without the written consent of the parties except CLAIMANT has the right to assign the obligations and Shares owed to it hereunder as it may determine.

K.           Parties in Interest and Affiliates.  Provisions of this Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties, their heirs, executors, administrators, other permitted successors and assigns, if any. Nothing contained in this Agreement, whether express or implied, is intended to confer any rights or remedies under or by reason of this Agreement on any persons other than the parties to it and their respective successors and assigns.

L.           Entire Agreement.  This Agreement constitutes the entire agreement and under­standing of the parties on the subject matter hereof and supersedes all prior recent settlement discussions and verbal agreements and understandings except in no way does this Agreement change or eliminate the terms of financial and related obligations to the CLAIMANT per past agreements and instruments except as strictly modified in writing above.

M.           Construction and Misc.  This Agreement shall be governed exclusively by the laws of the State of New York without reference to conflict of laws and the exclusive venue for any action, claim or dispute in respect of this Agreement shall be such court of competent jurisdiction as is located in Nassau County New York as the sole venue. The parties agree and acknowledge that each has reviewed this Agreement and the normal rule of construction that agreements are to be construed against the drafting party shall not apply in respect of this Agreement given the parties have mutually negotiated and drafted this Agreement.

N.           Cooperation and Representations.  The parties hereto agree to cooperate with one another in respect of this Agreement, including reviewing and executing any document  necessary for the performance of this Agreement, to comply with law or as reasonably requested by any party hereto, or legal counsel to any party hereto.

  

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Representations of the COMPANY shall survive the signing and closing of this Agreement.

O.           Independent Legal Counsel.  The parties hereto agree that (i) each has retained independent legal counsel in connection with the preparation and of this Agreement, (ii) each has been advised of the importance of retaining legal counsel, and (iii) by the execution of this Agreement, each has retained or waived retaining counsel except as otherwise stated above.

EXHIBIT A.  Form of Conversion

Effective Date:  July 21, 2011

Principal Amount due hereunder: $275,000.

Interest due hereunder: 6% per annum

Maturity Date:  Date that is twelve months from this Effective Date

Description of Debt: Term loan

Assignor :NetCapital.com LLC

Name of Company: Pervasip Corp

State of Incorporation of Company:  NY

Address of Company: 75 South Broadway #400,White Plains, NY 10601

Name of Claimant: Magna Group, LLC

Claimant Address: 5 Hanover Square, New York NY 10004

      The undersigned hereby execute this document the Effective Date noted:

 

 

	"COMPANY/DEBTOR"	 
	Name: Pervasip Corp.	 
	 	 
	By:  	 
/s/ Paul H. Riss

	 
	 	 
	Its: CEO	 
	 	 
	 	 
	“CLAIMANT”	 
	Name:	 
	 	 
	 By: 	/s/  Joshua Sason	 
	 	 	 
	Its: Managing Member	 
	 	 	 

 

  

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Exhibit A

 

FORM NOTICE OF CONVERSION

The undersigned hereby elects to convert principal under the Securities Settlement Agreement of the "COMPANY" noted below, dated July 21, 2011 into shares of common stock (the "Common Stock") of the COMPANY according to the conditions hereof, as of the date written below. If shares are to be issued in the name of a person other than the undersigned, the undersigned will pay a reasonable transfer expense payable with respect thereto.

Conversion calculations:______________________________________

Company Name:

Date to Effect Conversion:  _____________

 

 

Conversion Price: 90% of the VWAP for the Common Stock during the 3 trading days prior to conversion.

 

 

 

 

Principal Amount of Agreement to be converted:   __________________________________

Number of shares of Common Stock to be issued:   __________________________________

Signature: _____________________

 

 

Send   Shares Via DWAC:

DTC Number:

A/C:

FAO:

Attn:

Phone:

8ex101.htm

 

	 	  

Antero Payment Solutions

24328 Vermont Ave #300

Harbor City, Ca. 90710

Office (310) 997-2482

Toll free (800) 499-0072

Fax (310) 954-9243

www.anteropaymentsolutions.com

 

PRIVATE LABELED AGREEMENT

THIS AGREEMENT is entered into as of the 20th day of October, 2011 (the “Effective Date”) by and between Antero Payment Solutions, Inc., a Nevada corporation with its principal place of business at 24328 Vermont Ave #300 Harbor City, Ca. 90710 U.S.A. (“Antero” or “Company”), and Consolidated Fleet Management Corp., a New York Corporation, with a principal place of business at 10 W Beech Street # B Islip, NY11751-1509 (“AGENT”).

  

 

Recitals

WHEREAS, Company is in the business, among other things, of developing, promoting, licensing and supporting its Antero SVS (Third Party Processing Application), Card of America and other debit based products the (“Private Label Program”), as further defined herein;

WHEREAS, AGENT is in the business of, among other things, serving as an independent sales representative for companies selling or licensing products and services in the mobile wallet, credit, debit, prepaid, gift, and/or virtual card programs; and

WHEREAS, Company and AGENT mutually desire that Company engage AGENT on a non-exclusive basis to promote the private label mobile wallet, credit, debit, prepaid, gift, and/or virtual card programs to Accountholders.

NOW, THEREFORE, in consideration of the mutual promises herein contained, Company and AGENT (each a “party”; together, the “parties”) agree as follows:

 

	
1.  

	
Definitions.

 

In addition to those capitalized terms defined elsewhere in this Agreement, the following terms shall have the following meanings:

“Account” shall mean a debit account issued by a Bank (defined herein).

“Accountholder” shall mean an individual, business, or organization authorized by the Bank to receive an Account.

“Agreement” shall mean this Agreement between Company and AGENT and any attachments, exhibits, schedules, addenda, and amendments thereto.

“Bank” shall mean those banking institutions identified by Company to AGENT that have an established contractual relationship with Company for the sales and processing of debit cards for the Private Label Program.

"Private Label Program" shall mean the Company’s Private Labeled Prepaid / Debit / Virtual / Mobile Wallet Card Programs and services provided exclusive to AGENT.  As of the Effective Date, current sample artwork for the Private Label card is contained in Schedule A to this Agreement.

 “Territory” shall mean the United States of America.

  

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Antero Payment Solutions

24328 Vermont Ave #300

Harbor City, Ca. 90710

Office (310) 997-2482

Toll free (800) 499-0072

Fax (310) 954-9243

www.anteropaymentsolutions.com

 

“Tracking Number” shall mean a registered number issued by Company to AGENT for the purpose of tracking AGENT’s sales and active Accountholder status.

 

	
2.  

	
Scope of Agreement / Appointment.

 

Antero hereby appoints AGENT as a non-exclusive independent contractor sales representative to promote the Private Label Program to Accountholders in the Territory in accordance with the terms and conditions set forth in this Agreement.

 

	
3.  

	
AGENT’s Responsibilities.

 

In addition to those responsibilities stated elsewhere in this Agreement, AGENT shall:

	
a.  

	
AGENT is required to maintain its own sales training and continuously maintain a full time staff of at least one (1) trained sales and marketing professional;

	
b.  

	
Actively and continuously promote the Private Label Program in the Territory, conduct promotional activities, and advertise and distribute only Company approved promotional material as may be provided by Company to AGENT from time to time;

	
c.  

	
Direct all Accountholders to purchase Private Label card(s) directly from Company’s website and refrain from entering into agreements directly with Accountholders;

	
d.  

	
If AGENT has a website and provides a link to Company’s website, AGENT shall ensure that AGENT’s website at all times complies with all applicable laws and that the AGENT’s website shall not contain any gambling, adult entertainment, obscene, fraudulent or any other unlawful material or content or links to any websites containing same;

	
e.  

	
AGENT shall require all prospective Accountholders to specifically identify AGENT by name in their written and on-line applications to Company for the Private Label card(s), or any other Private Label Program services, so that Company may assign AGENT’s Tracking Number to such Accounts and be able to fully account for and pay commission fees to AGENT for such Accounts. AGENT acknowledges and agrees that it is AGENT’s sole responsibility and risk that an Accountholder specifically identifies AGENT, and that an Accountholder’s failure to identify AGENT on its application form will result in Company being unable to connect such Accountholder to AGENT and pay AGENT commissions for the Accountholder’s Account. AGENT hereby releases Company from any obligation to pay AGENT commissions under such circumstances;

	
f.  

	
Only provide pricing information to prospective Accountholders that has been provided by Company to AGENT;

	
g.  

	
Not present itself as, or appear to be, a member or representative of Visa, not use any Visa-owned mark on marketing materials such as business cards, letterhead or stationery, and not knowingly enable Visa debit cards to be sold through multi-level marketing, or used for gambling, adult entertainment, or fraudulent activity; and

 

  

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Antero Payment Solutions

24328 Vermont Ave #300

Harbor City, Ca. 90710

Office (310) 997-2482

Toll free (800) 499-0072

Fax (310) 954-9243

www.anteropaymentsolutions.com

 

 

	
h.  

	
 Not accept money from Accountholders.

 

	
4.  

	
Company’s Rights / Responsibilities.

 

In addition to those rights and responsibilities stated elsewhere in this Agreement, Company shall have the following rights and responsibilities:

	
a.  

	
Company reserves the right, in its absolute discretion, at any time upon written notice to AGENT, without incurring any liability to AGENT or otherwise, whether in contract or tort, to change, reduce or expand the scope of the Private Label Program, including any products or services therein and the prices charged for Private Label Program transactions.  Company reserves the right to discontinue the sale of the Private Label Program and sale or license of all products thereunder, at any time or from time-to-time without notice to AGENT; provided, however, that Company will endeavor to provide AGENT with as much advance written notice as possible under the circumstances.

	
b.  

	
All applications and orders for the Private Label Program, if sent to AGENT, shall be immediately forwarded by AGENT to Company.  Company reserves the right in its sole discretion to accept or reject any such application or order without any liabilities whatsoever to AGENT.

	
c.  

	
Company will assign AGENT’s Tracking Number to those Accounts where the Account holders’ applications specifically identified AGENT by name in their written and on-line applications to Company for the Private Label card(s) or other Private Label Program services. Company shall have no duty to investigate and assign tracking numbers to any Accountholder applications that do not specifically identify AGENT.

 

	
5.  

	
Commission Payments / Payment Terms.

 

If the Company receives Private Label Program revenue from those Accountholders that purchased the Private Label Program from Company during the term of this Agreement as the sole and direct result of AGENT’s sales efforts, then subject to the terms and conditions of this Agreement, Company shall pay AGENT sales commission fees in the following amounts and under the following terms:

	
a.  

	
AGENT shall receive sales commissions in the amount specified in Schedule B to this Agreement (PRIVATE LABEL CARD PROGRAM SALES COMMISSIONS).  AGENT’s exclusive compensation from Company shall be the commission payments described in this Section 5, less all applicable taxes.

	
b.  

	
Payment terms are net thirty (30) days from the last day of each month during the term of this Agreement; provided, however, that the Company may withhold remitting payment to AGENT until such time as the total amount due AGENT exceeds the sum of $100.00 and/or all minimums are met.

	
c.  

	
Company shall continue to make commission payments to AGENT during the period that the Account remains active (that is, until expiration or cancellation), unless: (i) this Agreement is terminated according to the terms herein by reason of AGENT’s uncured material breach of this Agreement, (ii) this Agreement is terminated by Company pursuant to Section 9.E. of this Agreement, or (iii) the Account issuing Bank ceases making payments to Company for such Account for any reason whatsoever.

 

  

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Antero Payment Solutions

24328 Vermont Ave #300

Harbor City, Ca. 90710

Office (310) 997-2482

Toll free (800) 499-0072

Fax (310) 954-9243

www.anteropaymentsolutions.com

	
d.  

	
If any sales giving rise to Company’s payments to AGENT are reversed for any reason, the sales commissions shall not be payable to AGENT and if Company has already paid AGENT the commission for a sale that is reversed, AGENT shall repay Company the commission within ten (10) days after Company’s notification to AGENT.  If Company determines in its reasonable judgment that it should provide the Bank a credit or discount with respect to any sale for which a commission is payable to AGENT, Company shall have the right to charge a proportional amount of the credit or discount to AGENT’s commission and to deduct or set-off such proportion from the amount otherwise payable to AGENT.  If AGENT has not paid Company the commission for a reversed sale, Company may deduct the commission for the reversed sale from any other Amount Company owes to AGENT.

 

	
6.  

	
Warranty / Disclaimer / LIMITATION OF LIABILITY.

 

AGENT WARRANTS THAT THE SERVICES IT PROVIDES HEREUNDER WILL BE PERFORMED IN A PROFESSIONAL AND WORKMANLIKE MANNER.  EXCEPT FOR THOSE WARRANTIES PROVIDED IN THIS AGREEMENT, AGENT HEREBY DISCLAIMS ALL OTHER WARRANTIES.  UNDER NO CIRCUMSTANCES WILL COMPANY BE LIABLE TO AGENT FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR PUNITIVE DAMAGES (INCLUDING, BUT NOT LIMITED TO, LOST PROFITS, EVEN IF AN AGENT REPRESENTATIVE OF ANTERO HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. IN NO EVENT WILL THE AGGREGATE LIABILITY OR OBLIGATIONS OF COMPANY TO AGENT ARISING UNDER THIS AGREEMENT OR OTHERWISE EXCEED THE TOTAL AMOUNT THAT BECOMES DUE AND OWING TO AGENT UNDER SECTION 5 HEREIN.

 

	
7.  

	
Mutual Confidentiality.

 

	
a.  

	
AGENT shall hold all proprietary and confidential information of ANTERO (collectively, the “Antero Confidential Information”) in strict confidence by exercising at least the same degree of diligence and care that it uses to avoid disclosure or dissemination of its own highly confidential information, but in no event less than a reasonable standard of diligence and care.  In this regard, AGENT may disclose Confidential Information (a) to its owners, principals, directors, managers, officers, employees representatives, agents and affiliates who understand and are bound by the confidentiality and non-circumvention terms of this Agreement, (b) to other parties with the prior written consent of ANTERO and the written agreement of such other parties to be bound by the confidentiality and non-circumvention terms of this Agreement and (c) to the extent required by law; provided, however, in the latter case, AGENT shall give ANTERO prompt written notice of any request or demand for such disclosure to give ANTERO the opportunity to seek a restraining order to prevent such disclosure and/or a protective order to limit such disclosure.  AGENT shall not use the Confidential Information (i) for any purpose other than to operate under this Agreement, (ii) for its own advantage or economic benefit outside the scope of this Agreement or (iii) in any manner that would harm or otherwise be a detriment to ANTERO.

 

	
b.  

	
ANTERO shall hold all proprietary and confidential information of AGENT (collectively, the “Agent Confidential Information”) in strict confidence by exercising at least the same degree of diligence and

 

  

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Antero Payment Solutions

24328 Vermont Ave #300

Harbor City, Ca. 90710

Office (310) 997-2482

Toll free (800) 499-0072

Fax (310) 954-9243

www.anteropaymentsolutions.com

 

	
 

	
care that it uses to avoid disclosure or dissemination of its own highly confidential information, but in no event less than a reasonable standard of diligence and care.  In this regard, ANTERO may disclose Confidential Information (a) to its owners, principals, directors, managers, officers, employees representatives, agents and affiliates who understand and are bound by the confidentiality and non-circumvention terms of this Agreement, (b) to other parties with the prior written consent of AGENT and the written agreement of such other parties to be bound by the confidentiality and non-circumvention terms of this Agreement and (c) to the extent required by law; provided, however, in the latter case, ANTERO shall give AGENT prompt written notice of any request or demand for such disclosure to give AGENT the opportunity to seek a restraining order to prevent such disclosure and/or a protective order to limit such disclosure.  ANTERO shall not use the Confidential Information (i) for any purpose other than to operate under this Agreement, (ii) for its own advantage or economic benefit outside the scope of this Agreement or (iii) in any manner that would harm or otherwise be a detriment to AGENT.

 

	
8.  

	
Intellectual Property.

 

AGENT acknowledges that Company (or its licensors, as applicable) shall retain its entire right, title and interest in and to all trade secret, patent, copyright, trademark and other intellectual property rights contained in or related to the Private Label Program and products and services therein, and AGENT shall have no ownership or other right, including any intellectual property right, in or to any Private Label Program product or service.  AGENT shall have no right to have or use any intellectual property owned or licensed by Company, except as expressly authorized in this Agreement.  Nothing in this Agreement is intended to transfer from Company to AGENT any intellectual property or intellectual property right Company has in or related to any Licensed Program product or service.

 

	
9.  

	
Non-Circumvention.

 

	
a.  

	
Proprietary Relationships.  As a result of receiving Antero Confidential Information and otherwise becoming familiar with ANTERO’s business and affairs, AGENT may obtain knowledge about ANTERO’s banks, employees, associates, partners, contacts, sources, contractors, vendors, other service providers, customers and prospects (collectively, the “Proprietary Relationships”) and ANTERO’s plans and opportunities (collectively, the “Proprietary Opportunities”). AGENT shall not use its knowledge of any Proprietary Relationship or Proprietary Opportunity (a) for any purpose other than to operate under this Agreement, (b) for its own advantage or economic benefit outside the scope of this Agreement or (c) in any manner that would harm or otherwise be a detriment to ANTERO.  Without limiting the generality of the foregoing, AGENT shall not, nor shall AGENT assist any third party to, directly or indirectly, during the term of this Agreement or thereafter, solicit, entice away or otherwise interfere with any customer, including, without limitation, the Customers who are customers pursuant to this Agreement.

 

	
b.  

	
Ownership of Customers and Customer Agreements.  Commissions accruing to AGENT from this Agreement shall be and remain the sole and exclusive property of AGENT, but are subject to certain restrictions and rights of offset by ANTERO as contemplated in this Agreement and may not be sold or transferred without permission from ANTERO.  All relationships with Customers of AGENT are the exclusive property of AGENT.  However, the cards, accounts and banking relationships of the Customers shall remain the sole property of the issuing bank.

 

  

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Antero Payment Solutions

24328 Vermont Ave #300

Harbor City, Ca. 90710

Office (310) 997-2482

Toll free (800) 499-0072

Fax (310) 954-9243

www.anteropaymentsolutions.com

 

	
c.  

	
Non-solicitation of Customers.  During the initial or any renewal term of this Agreement, and thereafter upon expiration without renewal or earlier termination, for any reason, and for so long as AGENT receives payments from ANTERO in accordance with this Agreement, ANTERO shall not cause or permit any of their respective agents, employees, independent contractors, subsidiaries, or affiliates of ANTERO to solicit AGENT’s Cardholders for the sale of any products or services.

 

	
d.  

	
No Interest, Right or License.  All Confidential Information, as well as all Proprietary Relationships and Proprietary Opportunities, shall remain the property of each Party and, other than to use the Confidential Information and the knowledge of the Proprietary Relationships and Proprietary Opportunities to operate under this Agreement, neither, the execution, delivery nor performance of this Agreement shall be construed as granting or conferring to the other Party any interest, right or license in or to any Confidential Information, Proprietary Relationship or Proprietary Opportunity.  Without limiting the generality of the foregoing, AGENT shall not acquire any interest, right or license in or to the ANTERO Products or any aspect thereof.

 

	
10.  

	
Term and Termination.

 

	
a.  

	
The initial term of this Agreement shall be for a period of three (3) years commencing on the date this Agreement is executed.  Unless either party notifies the other not later than three (3) months prior to the expiration of the initial term that it does not wish to renew this Agreement for a subsequent term, this Agreement shall automatically renew for an additional term of three (3) years upon the same terms and conditions.  Nothing herein to the contrary, the parties hereto shall have the right to modify all or part of this Agreement, provided that such modification shall be in writing and signed by all parties hereto before such shall become effective and binding on the parties hereto.

	
b.  

	
Either party may terminate this Agreement immediately upon written notice to the other if (i) the other party has breached any of its material obligations under this Agreement and has failed to cure such breach within thirty (30) days of receiving written notice of the breach from the other party, or (ii) has filed any petition in any court for receivership, reorganization, bankruptcy, arrangement or relief from or creditors, or has made any assignment for the benefit of creditors, or has any substantial part of its assets subjected to any involuntary lien, which is not cured or removed within thirty (30) days after notice thereof.

	
c.  

	
Notwithstanding the foregoing in this Section 9, Company may terminate this Agreement with immediate effect if any of the following occur:

(i)           AGENT participates or is alleged to have participated in any fraudulent activity, or any activity that causes the Bank or Company to violate the Visa U.S.A. Inc. Operating Regulations, or any other activities that may result in undue economic hardship or damage to the goodwill of the Bank or Visa system;

(ii)           Bank is at any time unable to offer Accounts or support the Private Label Program due to federal, state, and/or Visa laws and regulations; or

 

  

Page 6 of 9

  

 

 

	 	  

Antero Payment Solutions

24328 Vermont Ave #300

Harbor City, Ca. 90710

Office (310) 997-2482

Toll free (800) 499-0072

Fax (310) 954-9243

www.anteropaymentsolutions.com

 

(iii)              AGENT makes any representation or warranty which shall prove to have been or become false or misleading in any material respect, or any unauthorized representation of the Bank, Visa, or the Private Label Program by AGENT.

	
d.  

	
If this Agreement is terminated by either party under sub-parts B or C, above, then Company shall have no continued payment obligation to AGENT after the effective date of termination.

	
e.  

	
Company shall have the right to hold a quarterly review with AGENT concerning the AGENT’s sales efforts and level of success in promoting and selling the Private Label Program to prospective Accountholders.  If no new Accounts are issued by the Bank over a ninety (90) day period and, in Company’s sole opinion the AGENT is not making commercially reasonable efforts to promote and sell the Private Label Program, then the Company shall have the right to terminate this Agreement with immediate effect upon notice to AGENT.

	
f.  

	
Upon receiving Company’s notice of termination, AGENT shall immediately cease all promotional efforts for Company and the Private Label Program, including any existing or potential Accountholder discussions about Company and the Private Label Program. AGENT shall immediately eliminate all links to Company’s website, remove all Company information and materials from AGENT’s website, and return all marketing and sales materials to Company.

	
g.  

	
The following provisions shall survive expiration or termination of this Agreement for any reason: 5, 6, 7, 8, 10.D, 10.E., 10.F., 10.G., 11 through 17.

 

	
11.  

	
Indemnification.

 

AGENT shall defend, indemnify and hold Company harmless from and against any and all costs, liabilities, losses and expenses including, but not limited to, reasonable attorneys’ fees, resulting from the negligent and other unlawful acts or omissions of AGENT as well as every claim against Company arising from any representation or warranty AGENT makes to Accountholders beyond those representations and warranties that Company provides in its own agreements and documentation that accompany the Private Label Program.

 

	
12.  

	
Independent Contractors.

 

AGENT and Company are independent contractors and neither party has the authority to bind the other party to any third person. Nothing in this Agreement shall be construed to constitute AGENT as a partner or joint venture of or with Company.  AGENT agrees to defend, indemnify and hold Company, its owners, officers, and employees harmless against any claim by any government agency for any taxes or other payments owed by AGENT to such government agency as a result of this Agreement. AGENT also agrees that it is not a representative of Bank.  AGENT also agrees that any compensation it is due will come only from Company, and it will not pursue, nor does it have a right to pursue compensation from Bank or any other party under any circumstance whatsoever.

 

	
13.  

	
Entire Agreement.

 

This Agreement constitutes the entire agreement between AGENT and Company concerning the subject matter herein and supersedes all prior or contemporaneous agreements, written or oral, between the parties. This Agreement may not be modified except by a written document signed by an authorized representative of both parties.

 

  

Page 7 of 9

  

 

	 	  

Antero Payment Solutions

24328 Vermont Ave #300

Harbor City, Ca. 90710

Office (310) 997-2482

Toll free (800) 499-0072

Fax (310) 954-9243

www.anteropaymentsolutions.com

 

 

	
14.  

	
Notices.

 

All notices required or provided for in this Agreement shall be in writing and delivered in person, by delivery service, certified or registered mail.  Notice shall be deemed given on actual receipt.  Notices shall be addressed as follows:

If to Company:

Antero Payment Solutions, Inc.

24328 Vermont Ave #300

Harbor City, Ca. 90710

If to AGENT:

Consolidated Fleet Management Corp.                                                                

2 Clifford Ln. Medford,                                                      

Medford, NY 1173                                           

 

	
15.  

	
Waiver.

 

Neither party may waive any term or excuse any breach of this Agreement unless such waiver or excuse is in writing and signed by the party to be bound by such waiver.

 

	
16.  

	
No Assignment.

 

AGENT shall not assign any of its rights or delegate any of its duties under this Agreement, by operation of law or otherwise, without the prior express written consent of Company.

 

	
17.  

	
Governing Law / Arbitration.

 

	
a.  

	
This Agreement shall be governed by and interpreted in accordance with the laws of the State of California, U.S.A., without regard to its conflict of laws provisions.

	
b.  

	
All disputes arising in connection with this Agreement, which disputes have not been settled by mutual and amicable agreement, shall be finally settled by arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association (the “AAA”) in effect as of the date first above written (the “AAA Commercial Rules”).  Any such arbitration shall take place exclusively in the English language in the county of Los Angeles, California U.S.A.  The arbitration panel will consist of one arbitrator, appointed upon the mutual agreement of the parties, acting reasonably.  Each party shall bear its own expenses and shall share equally in arbitrator’s fees and related expenses, provided that once an arbitration judgment is entered, the prevailing party shall be entitled to recover reasonable attorneys’ and/or expert fees and related costs as damages.  The arbitrator will be empowered to, at either party’s request, grant injunctive relief. An award granted by the arbitrator will be the exclusive remedy of the parties for all claims, counterclaims, issues, or accountings presented or pleaded to the arbitrator.  Judgment upon the arbitral award may be entered in any court that has jurisdiction thereof.  Any additional costs, fees or expenses incurred in enforcing the arbitral award will be charged against the party that unsuccessfully resists its enforcement.  The arbitrator shall apply the substantive law of California, without regard to its conflict of laws provisions.

 

 

  

Page 8 of 9

  

 

 

	 	  

Antero Payment Solutions

24328 Vermont Ave #300

Harbor City, Ca. 90710

Office (310) 997-2482

Toll free (800) 499-0072

Fax (310) 954-9243

www.anteropaymentsolutions.com

 

 

	
c.  

	
Nothing is this Section will prevent either party from seeking interim injunctive relief or filing an action against the other party in the courts having jurisdiction over it in order to enforce an arbitral award granted pursuant to a proceeding under this Section.

WHEREFORE, the parties have signed this Agreement by their duly authorized representatives.

 

	
Antero Payment Solutions, Inc.

	
Consolidated Fleet Management Corp

	
By: /s/ Michael J Sinnwell, Jr.

	
By: /s/ Phil Dorsinvil                                                                          

	
Name: Michael J Sinnwell Jr

	
Name: Phil Dorsinvil                                                                         

	
Title: President

	
Title: CEO                                                                

	
Date:10/20/2011

	
Date: 10/20/2011  

 

 

This Space was Intentionally Left Blank

FOR ANTERO OFFICE USE

Sales AGENT Tracking Number:

 

 

  

Page 9 of 9

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