Document:

EX-10.40

Exhibit 10.40

ASPEN INSURANCE HOLDINGS LIMITED

RESTRICTED SHARE UNIT AWARD AGREEMENT

     THIS AWARD AGREEMENT (the “Agreement”), is made effective as of the ___day of ___,
between Aspen Insurance Holdings Limited, a Bermuda corporation (hereinafter called the “Company”),
and NAME (hereinafter called the “Participant”):

R E C I T A L S:

     WHEREAS, the Company has adopted the Aspen Insurance Holdings Limited 2003 Share Incentive
Plan (the “Plan”); and

     WHEREAS, the Committee has determined that it would be in the best interests of the Company
and its shareholders to grant the Restricted Share Units provided for herein (together, the
“Grant”) to the Participant pursuant to the Plan and the terms set forth herein.

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

1. Plan and Defined Terms. The Grant is made pursuant to the Plan, a copy of which the
Participant acknowledges having received. The terms and provisions of the Plan are incorporated
into this Agreement by this reference. All capitalized terms that are used in this Agreement and
not otherwise defined herein shall have the meanings ascribed to them in the Plan.

2. Award. Pursuant to the provisions of the Plan, the Committee hereby awards to the
Participant, on the date hereof, subject to the terms and conditions of the Plan and subject
further to the terms and conditions herein set forth, XXXXX Restricted Share Units.

3. Terms and Conditions. The award evidenced by this Agreement is subject to the following
terms and conditions:

     (a) The Participant shall not be entitled to receive payment for the value of Restricted Share
Units until vested;

     (b) The Company shall not issue any certificates representing Restricted Share Units granted
to Participants, and the grant of Restricted Share Units to Participants shall not entitle such
Participants to any rights of a holder of Shares, including the right to vote; provided, however,
that the Participant shall receive Dividend Equivalents in accordance with the provisions of
Section 5 of this Agreement; and

     (c) Restricted Share Units and any interest of the Participant therein may not be sold,
assigned, transferred, pledged, hypothecated or otherwise disposed of. Any attempt to

 

 

transfer Restricted Share Units in contravention of this Section 3(c) shall be void.
Restricted Share Units shall not be subject to execution, attachment or other process.

4. Vesting.

     (a) Subject to earlier termination as provided in Sections 4(b) and 4(c), and subject to the
Participant’s continued Employment, Restricted Share Units shall vest in tranches with one-third
vesting on each of December 31, 2005, December 31, 2006, and December 31, 2007.

     (b) If the Participant’s employment with the Company or one of its Affiliates is terminated by
the Company or an Affiliate for Cause or by the Participant for any reason, all unvested Restricted
Share Units shall be forfeited on the date of such termination of employment.

     (c) If the Participant’s employment with the Company or one of its Affiliates is terminated by
the Company or an Affiliate without Cause (including as a result of the Participant’s death or
Disability), all unvested Restricted Share Units shall vest on the date of such termination of
employment.

5. Dividend Equivalents. If a cash dividend is declared on the Shares, the Participant
shall be credited with Dividend Equivalents in an amount equal to the number of Restricted Share
Units held by the Participant as of the dividend record date, multiplied by the amount of the cash
dividend per Share. Dividend Equivalents shall be denominated in cash and paid in cash if and when
the underlying Restricted Share Units vest. Dividend Equivalents denominated in cash shall not
accrue interest during the period of restriction.

6. Payment. Except as otherwise elected by the Participant in accordance with the
provisions of Section 7, payment for the value of the Participant’s Restricted Share Units shall be
made to the Participant (or, in the event of the Participant’s death, the Participant’s
beneficiary, or, in the event that no beneficiary shall have been designated, the Participant’s
estate) as soon as practicable following the date on which such Restricted Share Units vest.
Restricted Share Units shall be paid in Shares, less any Shares withheld in accordance with the
provisions of Section 9, with one (1) Share paid for each Unit.

7. Deferral.

     (a) Form of Deferral. Subject to such terms and conditions as may be established by
the Committee, the Participant shall be eligible to defer receipt of payment of the value of
Restricted Share Units granted under the Plan by filing a Deferral Agreement with the Company. The
Deferral Agreement shall specify the time of payment (the “Determination Date”) and the manner of
payment. An election to defer payment shall be effective upon receipt by the Company and shall
apply only to Restricted Share Units that vest in the following calendar year or thereafter.
Restricted Share Units deferred in accordance with this Section shall be converted into an equal
number of Deferred Share Units. Dividend Equivalents credited with respect to Restricted Share
Units are not eligible for deferral under this Section 7.

 

 

     (b) Accounts for Deferred Share Units.

	 	(i)	 	A Deferral Account shall be maintained for the Participant’s
Deferred Share Units, which shall be utilized solely as a device for the
measurement and determination of the amounts to be paid to the Participant
pursuant to this Agreement, and which shall not constitute or be treated as a
trust fund of any kind. The balance of the Participant’s Deferral Account
shall be adjusted to reflect Dividend Equivalents credited in accordance with
the provisions of Section 7(b)(ii) and distributions pursuant to Section 7(c)
through 7(e).
	 
	 	(ii)	 	If a cash dividend is declared on the Shares, the Participant
shall be credited with Dividend Equivalents in an amount equal to the number of
Deferred Share Units in the Participant’s Deferral Account as of the dividend
record date, multiplied by the amount of the cash dividend per Share. Dividend
Equivalents shall be denominated in cash and paid in cash at such times as the
underlying Deferred Share Units are paid. Dividend Equivalents denominated in
cash shall not accrue interest during the deferral period.
	 
	 	(iii)	 	Any Deferred Share Units and Dividend Equivalents denominated
in cash hereunder credited to the Participant’s Deferral Account will represent
only an unsecured promise of the Company to pay or deliver the amount so
credited in accordance with the terms of this Section 7. Neither the
Participant nor any beneficiary of the Participant will acquire any right,
title, or interest in any asset of the Company as a result of any amount
credited to the Participant’s Deferral Account. At all times, the
Participant’s rights with respect to the amount credited to his Deferral
Account will be only those of an unsecured creditor of the Company. The
Company will not be obligated or required in any manner to restrict the use of
any of its assets as a result of any amount credited to the Participant’s
Deferral Account. No right or benefit under the Agreement shall be subject to
anticipation, alienation, sale, assignment, pledge, lien, encumbrance or
charge, and any attempt to take any such action shall be void.

	(c)	 	Time of Payment. The Participant’s Deferral Account shall be distributed at such
times as elected by the Participant in his Deferral Agreement.

     (d)  Form of Payment.

	 	(i)	 	If the Participant has elected to receive payment of all or a
portion of his Deferral Account in a lump sum, the Participant’s Deferral
Account shall be valued as of the Determination Date and paid by the Company to
him (or, in the event of the Participant’s death, to his beneficiary) as soon
as practicable thereafter.

 

 

	 	(ii)	 	If the Participant has elected to receive payment of all or a
portion of his Deferral Account in installments, the Company shall make annual
payments from the portion of the Participant’s Deferral Account subject to the
election. Each installment shall commence as soon as practicable following the
applicable Determination Date. Each installment payment shall be in an amount
equal to the portion of the Participant’s Deferral Account subject to the
election multiplied by a fraction, the numerator of which is one (1) and the
denominator of which is the number of remaining installments (including the
installment being paid). The portion of the Participant’s Deferral Account
denominated in Deferred Share Units that is not distributed shall be credited
with additional Dividend Equivalents through the subsequent installment date
pursuant to Section 7(b)(ii).

     (e) Medium of Payment. The portion of the Participant’s Deferral Account denominated
in Deferred Share Units shall be paid in Shares and the portion denominated in cash shall be paid
in cash. One (1) Share shall be paid for each whole Deferred Share Unit contained therein, and any
fractional Deferred Share Units shall be paid in cash.

     (f) Change in Law. If, due to a change in applicable law, deferral elections are no
longer permitted, all affected Deferral Agreements automatically shall be deemed null and void and,
if and to the extent that any amount in the Participant’s Deferral Account shall be deemed
immediately taxable to such Participant, the balance of such Participant’s Deferral Account shall
be immediately distributed to him.

8. Definitions. For purposes of this Agreement, the following terms, when capitalized,
shall have the meanings set forth below:

     (a) “Cause” means (i) the Participant’s willful misconduct that is materially
injurious to Aspen Re America, Inc. or any of its affiliates; (ii) the Participant’s intentional
failure to act subject to and in accordance with any proper and lawful specific material direction
of Aspen Insurance U.S. Services Inc. or of Aspen Re America, Inc., which breach is not promptly
cured by the Participant after written notice of such breach; (iii) the Participant’s having been
convicted of, or entered a plea of nolo contendere to, a crime that constitutes a felony under the
laws of the United States or any State; (iv) the Participant’s violation of any applicable federal
or state law governing the business of Aspen Re America, Inc. or of any application rules or
regulations promulgated by any regulatory body, the violation of which shall either disqualify the
Participant from employment or association with Aspen Insurance U.S. Services Inc. or Aspen Re
America, Inc. as an executive or have a material adverse effect on the business of Aspen Re
America, Inc.; provided, however, that any such violation shall not constitute “Cause” if it
results from action taken by the Participant in accordance with instructions from the Chief
Executive Officer of the Company or his designee or the Board of Directors of Aspen Insurance U.S.
Services Inc. or Aspen Re America, Inc., or upon the advice of internal or outside counsel to Aspen
Insurance U.S. Services Inc. or Aspen Re America, Inc.; or (v) the intentional breach by the
Participant of any written covenant or agreement with Aspen Insurance U.S. Services Inc. or Aspen
Re America, Inc. or any of their

 

 

affiliates not to disclose any information pertaining to Aspen Re America, Inc. or any of its
affiliates or not to compete or otherwise interfere with Aspen Re America, Inc. or any of its
affiliates.

     (b) “Deferral Account” means the bookkeeping account maintained on the books of the
Company for the Participant in accordance with the provisions of Section 7 hereof.

     (c) “Deferral Agreement” means an agreement in such form as the Committee may
prescribe filed by a Participant in accordance with the provisions of Section 7(a) hereof.

     (d) “Deferred Share Unit” means a vested Restricted Share Unit for which the
Participant has elected to defer payment in accordance with the provisions of Section 7 and any
Dividend Equivalents credited thereto.

     (e) “Disability” means (i) the Participant’s entitlement to long-term disability
benefits under the long-term disability plan or policy, as the case may be, of Aspen Insurance U.S.
Services Inc. as in effect on the date specified in the notice of termination, or (ii) if no such
plan or policy is maintained, the Participant’s inability to perform the duties provided for in the
Employment Agreement for 180 consecutive days.

     (f) “Dividend Equivalent” means, with respect to Restricted Share Units or Deferred
Share Units, the right to receive an amount equal to cash dividends declared on an equal number of
outstanding Shares.

     (g) “Employment Agreement” means the Participant’s employment agreement with Aspen
Insurance U.S. Services Inc., dated as of EMPLOYMENT DATE, as may be amended from time to time.

     (h) “Restricted Share Units” means a Share-denominated unit with a value equal to the
Fair Market Value of a specified number of Shares that is subject to vesting requirements.
Restricted Share Units are bookkeeping units and do not represent ownership of Shares or any other
equity security.

     (i) “Share” means an ordinary share, par value 0.15144558 cents per share, in the
capital of the Company.

9. Taxes. The Company shall make such provisions as are necessary or appropriate for the
withholding of all applicable taxes on this Grant, in accordance with Section 4(d) of the Plan.
With respect to any minimum statutory tax withholding required upon vesting or payment of benefits
hereunder, the Participant may elect to satisfy all or a portion of such withholding requirement by
having the Company withhold Shares.

10. Regulatory Compliance and Listing. The issuance or delivery of any certificates
representing Shares issuable pursuant to this Agreement may be postponed by the Committee for such
period as may be required to comply with any applicable requirements under the federal or state
securities laws, any applicable listing requirements of any national securities exchange or the
NASDAQ system, and any applicable requirements under any other law, rule

 

 

or regulation applicable to the issuance or delivery of such Shares, and the Company shall not be
obligated to deliver any such Shares to the Participant if either delivery thereof would constitute
a violation of any provision of any law or of any regulation of any governmental authority, any
national securities exchange or the NASDAQ system, or the Participant shall not yet have complied
fully with the provisions of Section 9 hereof.

11. Bermuda Government Regulations. No Shares shall be issued pursuant to this Agreement
unless and until all licenses, permissions and authorizations required to be granted by the
Government of Bermuda, or by any authority or agency thereof, shall have been duly received.

12. Investment Representations and Related Matters. The Participant acknowledges and
agrees that any sale or distribution of Shares issued pursuant to this Agreement may be made only
pursuant to either (a) a registration statement on an appropriate form under the Securities Act of
1933, as amended (the “Securities Act”), which registration statement has become effective and is
current with regard to the Shares being sold, or (b) a specific exemption from the registration
requirements of the Securities Act that is confirmed in a favorable written opinion of counsel, in
form and substance satisfactory to counsel for the Company, prior to any such sale or distribution.
The Participant hereby consents to such action as the Committee or the Company deems necessary or
appropriate from time to time to prevent a violation of, or to perfect an exemption from, the
registration requirements of the Securities Act or to implement the provisions of this Agreement,
including but not limited to placing restrictive legends on certificates evidencing Shares issued
pursuant to this Agreement and delivering stop transfer instructions to the Company’s stock
transfer agent.

13. Arbitration. In the event of any controversy between the Participant and the Company
arising out of, or relating to, the Plan or this Agreement which cannot be settled amicably by the
parties, such controversy shall be finally, exclusively and conclusively settled by mandatory
arbitration conducted expeditiously in accordance with the American Arbitration Association rules,
by a single independent arbitrator. If the parties are unable to agree on the selection of an
arbitrator, then either the Participant or the Company may petition the American Arbitration
Association for the appointment of the arbitrator, which appointment shall be made within ten (10)
days of the petition therefor. Either party to the dispute may institute such arbitration
proceeding by giving written notice to the other party. A hearing shall be held by the arbitrator
in New York, London or Bermuda as agreed by the parties (or, failing such agreement, in Bermuda)
within thirty (30) days of his or her appointment. The decision of the arbitrator shall be final
and binding upon the parties and shall be rendered pursuant to a written decision that contains a
detailed recital of the arbitrator’s reasoning. Judgment upon the award rendered may be entered in
any court having jurisdiction thereof.

14. No Right To Continued Employment. This Agreement does not confer upon the Participant
any right to continued Employment, nor shall it interfere in any way with the right of the
Participant’s employer to terminate the Participant’s Employment at any time for any reason or no
reason.

 

 

15. Construction. The Plan and this Agreement will be construed by and administered under
the supervision of the Committee, and all determinations of the Committee will be final and binding
on the Participant and the Company.

16. Notices. Any notice necessary under this Agreement shall be addressed to the Company
in care of its Secretary at the principal executive office of the Company and to the Participant at
the address appearing in the personnel records of the Company for the Participant or to either
party at such other address as either party hereto may hereafter designate in writing to the other.
Any such notice shall be deemed effective upon receipt thereof by the addressee.

17. Failure to Enforce Not a Waiver. The failure of either party hereto to enforce at any
time any provision of this Agreement shall in no way be construed to be a waiver of such provision
or of any other provision hereof.

18. Governing Law. This Agreement shall be governed by and construed according to the laws
of Bermuda, without regard to the conflicts of laws provisions thereof.

19. Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be an original but all of which together shall represent one and the same agreement.

20. Miscellaneous. This Agreement can be changed or terminated only in a writing signed by
both parties hereto. This Agreement and the Plan contain the entire agreement between the parties
relating to the subject matter hereof. The section headings herein are intended for reference only
and shall not affect the interpretation hereof.

     IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first written
above.

	 	 	 	 	 
	 	ASPEN INSURANCE HOLDINGS LIMITED

 	 
	 	 	  
	 	By: 	 	 
	 	Its: 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	  
	 	FULL NAMEExhibit 10.1
    

    

    

    

    

    
      SETTLEMENT AGREEMENT AND MUTUAL RELEASE
    

    
      This Settlement Agreement and Mutual Release ("Agreement") is made
      and entered into by and between Jamison Stafford, Loren Wimpfheimer,
      Commerce Planet, Inc., David Foucar, Charles Gugliuzza, Dominic Bohnett,
      Chris Cruttenden, James T. Crane, Iventa LLC, and Tony Roth, and
      shall be effective February 13, 2009.
    

    
      RECITALS
    

    
       1.       Definitions:
    

    
      As used in the Agreement, the following terms shall mean as follows:
    

    
      a.  "Stafford" shall mean Jamison Stafford and Loren Wimpheimer.
    

    
      b.  "Commerce Planet" shall mean Commerce Planet, Inc.
    

    
      c.  "Iventa" shall mean Iventa LLC.
    

    
      d.  "Foucar" shall mean David Foucar.
    

    
      e.  "Gugliuzza" shall mean Charles Gugliuzza.
    

    
      f.  "Bohnett" shall mean Dominic Bohnett.
    

    
      g.  "Cruttenden" shall mean Chris Cruttenden.
    

    
      h.  "Crane" shall mean James T. Crane.
    

    
      i.  "Roth" shall Tony Roth.
    

    
      j.  "The Parties" shall mean Stafford, Commerce Planet,
      Hill, Foucar, Gugliuzza, Bohnett, Cruttenden, Crari'e and Roth.
    

    
      k.  "Claims" shall mean any claims or debts of whatever kind or nature
      at law, equity or otherwise, whether known or unknown, suspected or
      unsuspected, fixed or contingent, concealed or hidden, which have
      existed or which do exist from the beginning of time until the date
      hereof In this regard, and notwithstanding section 1542 of the
      California Civil Code, the term "Claims" as defined above shall include
      all such Claims as are referred to in Civil Code section 1542 or
      any other comparable provisions or principles of state or federal law or
      common law.
    

    
       2.       Background
    

    
      a.  Stafford filed an action against
      Commerce Planet and other Parties in the Los Angeles Superior Court
      entitled "Stafford v. Commerce
      Planet, Inc., et al ," Case No.
      BC 392 533 ("Stafford Action").
      Commerce Planet filed a cross-complaint against Stafford and Wimpfheimer
      in the Stafford Action.
    

    
      b.  Commerce Planet filed an action against
      Gugliuzza and other defendants in the Santa Barbara Superior Court
      entitled "Commerce Planet, Inc.
      v. Gugliuzza, et al.,"Case No. 1304809 ("Commerce
      Planet Action"). Gugliuzza filed a cross-complaint
      against Commerce Planet and other Defendants the Commerce Planet Action.
    

    
      
        

        

      

      
        

        

        
          

        

      

      
        

        

      

    

    
      c.  It is the desire of the Parties to fully and finally settle and
      resolve all disputes and differences which exist between the Parties,
      known or unknown, including, without limitation, claims arising from the
      facts and circumstances contained in or related to the allegations made
      in the Stafford Action or the Commerce Planet Action, or
      set forth above to avoid the risks and costs of further litigation.
    

    
      AGREEMENT
    

    
      In consideration of the mutual covenants contained herein and other good
      and valuable consideration, the Parties agree as follows:
    

    
      3.       Incorporation of
      Recitals. The Parties incorporate into this Settlement Agreement all
      of the recitals set forth above.
    

    
      4.       Assignment by Commerce
      Planet of payments owing from Morlex transaction. Commerce
      Planet represents and warrants that it has entered into an agreement
      with Morlex under the terms of which Morlex is required to pay Commerce
      Planet $200,000 over a 12 month period beginning on February 21, 2009 as
      such obligation is reflected in the agreement between Commerce Planet
      and Morlex reflected in the public filings of said agreement with the
      SEC by Commerce Planet. Commerce PIanet shall execute the assignment
      attached hereto as Exhibit 1 and shall take all steps necessary to
      ensure Stafford's collection of the sums owing thereunder.
    

    
      5.       Payment by Commerce
      Planet to Stafford. Commerce Planet shall pay Jamison Stafford
      the sum of $2,579,006. In exchange for the assignment set forth in
      paragraph 6, Stafford agrees to defer collection of the amount until
      such time as all efforts to collect this amount and any other settlement
      payments made by Commerce Planet hereunder from Carolina Casualty
      Insurance Company have been exhausted.
    

    
      6.       Assignment of Claims
      against Director's and Officer's Insurance Policy by Commerce Planet to
      Stafford . Commerce Planet shall execute the assignment of all
      claims it has against Carolina Casualty Insurance Company in the form
      attached hereto as Exhibit 2. In this regard, Commerce Planet agrees
      that it will not take any action, including the filing of bankruptcy,
      which would in any way impair the claims assigned to Stafford or cause
      them to be transferred back to Commerce Planet. The Parties acknowledge
      and agree that the effectiveness of Stafford's releases set forth are
      conditioned upon the effectiveness of such assignment and the Stafford's
      legal ability to pursue such assigned claims.
    

    
      The Parties agree that the effectiveness of this Settlement Agreement
      and the Releases set forth herein are in no way contingent upon the
      success or failure of Stafford's legal action against the assigned
      Director's and Officer's insurance policy, but, rather, contingent only
      upon no bankruptcy proceedings being filed by or as to Commerce Planet
      within such statutory period of time that would cause the assigned
      claims to be returned to the bankruptcy estate. It is acknowledged by
      the Parties herein that one of the possible effects of a bankruptcy
      filing could be the impairment Stafford's ability to collect on the
      assignment of the Director's and Officer's insurance policy.
      Furthermore, a bankruptcy on the part of Commerce Planet could
      potentially cause the return of the Iventa assets to Commerce Planet's
      bankruptcy estate. Either of these events, or the occurrence of both,
      could render valueless all consideration provided not only to Stafford,
      but also to Gugliuzza in consideration of this GIobal Settlement and the
      corresponding Releases. Only upon the successful tolling of this period
      will these Releases and this Global Settlement become fully binding and
      irrevocable.
    

    
      
        

        

      

      
        
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      Furthermore, in the event that the Global Settlement and corresponding
      Releases are voided due to a Commerce Planet bankruptcy before the
      releases become irrevocable, all provisions within this Global
      Settlement Agreement also will be deemed voidable by the respective
      holders, and other forms of consideration including, but not limited to,
      potential claims, cash and asset compensation will be returned to their
      current and respective owners or holders
    

    
      7.       Transfer of Intellectual
      Property from Iventa LLC. As additional consideration to
      be received by Stafford and Gugliuzza hereunder, Stafford, Gugliuzza,
      Iventa and Commerce Planet agree that:
    

    
      a.  A new company ("Newco") shall be formed by Stafford. Both Iventa and
      Commerce Planet are financially unable to meet their ongoing support
      obligations to the existing clients of Iventa. In lieu of purchasing the
      assets of Iventa, Newco has agreed to accept the intellectual property
      rights described herein necessary to provide ongoing support of Iventa
      customers, should such customers so choose to enter into new ongoing
      support services with Newco. Iventa will retain all existing liabilities
      and assets. Iventa will work in good faith to transfer all existing
      clients to Newco before discontinuing operations in order to mitigate
      damages that may arise to Iventa from its inability to provide web
      support. In addition to the financial difficulties referenced, Iventa
      operates at a dramatic cash deficit. The value of the Iventa license
      discussed herein is nominal and will be purchased for $ 1.00 by
      Newco. Upon the successful transition of the Iventa client base and all
      required supporting documentation to Newco, Iventa will cease operations
      after 90 days and destroy all remaining versions of the Iventa code
      currently in its or other third party's possession. Iventa agrees and
      will represent and warrant that the sole source code of the Iventa
      system will be in the exclusive possession of Newco within the close of
      the 90 day period.
    

    
      b.  Iventa hereby transfers to NewCo the following, and represents and
      warrants that such intellectual property rights are free and clear of
      any encumbrances:
    

    
      i.  Full, unrestricted copy of source code and all associated files and
      processes owned by Iventa, including a irrevocable, exclusive license to
      any copyrights therein or thereto, and unrestricted access to Iventa's
      servers to ensure transfer is complete.
    

    
      
        

        

      

      
        
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      ii.  All right, title and interest in and to the domain names and
      related trademarks: iventa.com, godashboard.com, thebin.com,
      abcecommerce.com, fanconnect.net, iventadev.com, and iventastage.com.
    

    
      iii.  AT&T vanity lines, particularly (888) 848-3682.
    

    
      c.  Iventa LLC agrees to assist in the migration of customer data for
      any customers who chooses to migrate to NewCo.
    

    
      d.  Iventa LLC agrees to cease Iventa operations within 90 days.
    

    
      e.  Iventa LLC represents and warrants that it is the sole owner of
      Iventa source code and agrees that it shall never sell, Iicense or
      otherwise transfer Iventa source code to any other entity. Iventa
      further represents and warrants that it has not already done so.
    

    
      f.  Iventa LLC agrees that it shall destroy all copies of Iventa source
      code after 90 days of the effective date of this Agreement.
    

    
      g.  Iventa LLC, Stafford and Gugliuzza shall comply with the terms of
      the Transition Plan attached hereto as Exhibit 3.
    

    
      8.       Request for Dismissals. The
      Parties shall cause requests for dismissal without prejudice of the
      complaint and cross-complaint in the Stafford Action and the
      complaint and cross-complaint in the Commerce Planet Action
      as to any Parties hereto, which dismissals shall be filed within seven
      days after this Agreement is signed by all Parties. The Parties
      agree that any statutes of limitation as to the claims asserted in the Stafford
      Action or the Commerce Planet Action shall be deemed tolled
      as of the filing of said Actions.
    

    
      9.       General Release by Commerce
      Planet et al. of Stafford Except for the obligations arising
      from this Agreement, Commerce Planet, Foucar, Gugliuzza, Bohnett,
      Cruttenden, Crane, Iventa, and Roth each irrevocably and unconditionally
      releases, acquits, and forever discharges Stafford, Wimpheimer, and each
      of their employees, agents, representatives, predecessors, successors,
      assigns, attorneys, and all persons acting by, through, under or in
      concert with them, the ("Stafford Releasees"), from any and all
      obligations under any current or former agreements, including any
      employment agreements, and from any Claims.
    

    
      10.      General Release by Stafford
      and Wimpfheimer. Except for the obligations arising from this
      Agreement, Stafford and Wimphheimer each irrevocably and unconditionally
      releases, acquits, and forever discharges Commerce Planet, Foucar,
      Gugliuzza, Bohnett, Cruttenden, Crane, Iventa, and Roth and each of
      their employees, agents, representatives, predecessors, successors,
      assigns, attorneys, and all persons acting by, through, under or in
      concert with them, from any and all CIaims. This release does not
      release Michael Hill from any Claims by Stafford or Wimpffieimer. This
      release is expressly conditioned upon the effectiveness of the
      assignment of the insurance claims set forth in paragraph 6 above and
      Stafford's legal ability to pursue such claims to judgment or
      settlement. Stafford and Wimpfheimer shall retain their shares in
      Commerce Planet and all rights as shareholders of Commerce Planet with
      respect to any transactions between Commerce Planet and any third party,
      including the Morlex transaction. This release shall not release Claims
      by Stafford and Wimpfheimer against Jasper + Hall or any of its agents,
      employees, or owners.
    

    
      
        

        

      

      
        
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      11.      General Release by Commerce
      Planet, et al. Except for
      the obligations arising from this Agreement, Commerce Planet, Iventa,
      Foucar, Gugliuzza, Bohnett, Crittenden, Crane, Iventa, and Roth each
      irrevocably and unconditionally releases, acquits, and forever
      discharges the other and each of the other's employees, agents,
      representatives, predecessors, successors, assigns, attorneys, and all
      persons acting by, through, under or in concert with them, from any and
      all Claims.
    

    
      12.      Waiver of Section 1542. It
      is the intention of the Parties that this Agreement and the releases
      contained herein shall constitute a full and final accord and
      satisfaction of all Claims that the Parties may have or hereafter be
      deemed to have against each other. In furtherance of this intention,
      each Parry expressly waives any statutory or common law provision that
      would otherwise prevent this release from extending to Claims that are
      not currently known or suspected to exist in any Party's favor at the
      time of executing the release and which if known by that Parry, might
      have materially affected his settlement as provided for hereunder. The
      Parties acknowledge that they are familiar with Section 1542 of the
      California Civil Code, which provides as follows:
    

    
      A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES
      NOT KNOW OR SUSPECT TO EXIST IN His FAVOR AT THE TIME OF EXECUTING THE
      LEASE, WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS
      SETTLEMENT WITH THE DEBTOR.
    

    
      Each Party waives and releases any rights or benefits that he may have
      under Section 1542 to the full extent that he may lawfully waive such
      rights and benefits, and each Party acknowledges that he understands the
      significance and consequences of the waiver of the provisions of
      California Civil Code section 1542 and that he has been advised by his
      attorney as to the significance and consequences of this waiver. Each of
      the Parties agrees that this waiver is an essential and material term of
      this Agreement, as well as the definition of "Claims,"
      and that without such waiver this Agreement would not have been entered
      into.
    

    
      13.      Other Provisions.
    

    
      a. Warranty Re Ownership of Claims Released. Each
      Party represents and warrants that he is the sole owner of all Claims he
      may have against the other or arising out of the Action or any of the
      above-mentioned facts and that he has not transferred or agreed to
      transfer any Claims released under the terms of this Agreement. Each
      Party further agrees to indemnify and hold the other Party harmless from
      and against any liability, loss, judgment, settlement, costs, or
      expense, (including without limitation reasonable attorney's fees)
      resulting from, arising out of, or occasioned by the breach of
      the foregoing representation and warranty.
    

    
      
        

        

      

      
        
          5
        

        
          

        

      

      
        

        

      

    

    
      b.  Covenant Re Present and Future Litigation. With
      respect to Claims released under this Agreement, each Party agrees that
      he will not hereafter, either individually or on behalf of any other
      person or entity, (i) commence, maintain, or prosecute any action or
      proceeding at law or otherwise, (ii) assert any right of any nature, or
      (iii) assert any Claims against any other Party to this Agreement. Each
      Party further represents and warrants that he has not commenced any
      other action or proceeding at law or otherwise based on Claims arising
      out of the subject matter of the Action or any of the outer facts set
      forth in the Recitals above on his own behalf or on behalf of any other
      person or entity against any Party to this Agreement.
    

    
      c.  Acknowledgment of Risk. It is understood
      by the Parties that the facts with respect to which this Agreement is
      made may hereafter prove to be other than or different from the facts in
      that connection now known by any of them or believed by any of them to
      be true. Each of the Parties expressly accepts and assumes the risk of
      the facts proving to be so different, and each of the Parties agrees
      that all of the terms of this Agreement shall be in all respects
      effective and not subject to termination or rescission by any such
      difference in facts.
    

    
      d.  No Reliance on Representations. Each of the
      Parties acknowledges that (i) the other Party has not made any
      representations, warranties, or promises, except those specifically set
      forth in this Agreement, which have induced the Parry to enter into this
      Agreement; (ii) he has not relied upon any representations, warranties,
      promises or conditions made by the other Party or the other Parry's
      attorneys, agents or representatives not specifically set forth in
      this Agreement in entering into this Agreement; (iii) he has
      executed this Agreement after independent investigation and without
      fraud, duress or undue influence; and (iv) he has been
      independently represented by legal counsel during the negotiation of
      this Agreement and has executed this Agreement after consulting with his
      own legal counsel.
    

    
      e.  Future Legal Developments Not To Apply. The
      Parties agree that subsequent changes in California law or federal
      law, through legislation or judicial interpretation, which create or
      find additional or different rights and obligations of the Parties shall
      not affect this Agreement.
    

    
      f.  Execution of Other Documents and Further Acts. In
      addition to the acts recited in this Agreement to be performed by
      each of the Parties, each Party agrees to perform or cause to be
      performed all further acts and to execute or cause to be executed
      promptly all documents and instruments necessary to give effect to each
      term of this Agreement.
    

    
      
        

        

      

      
        
          6
        

        
          

        

      

      
        

        

      

    

    
      g.  Governing Law. This Agreement shall be
      construed and enforced under and in accordance with the law of the State
      of California.
    

    
      h.  Indemnification. Each Party agrees to
      indemnify and hold each other Party harmless from and against any
      liability, loss, judgrrtent, settlement, costs, or expense (including
      without limitation reasonable attorney's fees) resulting from, arising
      out of, or occasioned by that Party's breach of the warranties and
      representations contained in this Agreement.
    

    
      i.  Attorney's
      Fees and Costs in This Matter. Each of the Parties shall bear
      his own costs and attorney's fees in connection with the Action or
      arising out of the subject matter hereof.
    

    
      j.  Future Attorney's Fees. Should any
      Party institute any action or proceeding to enforce any provision
      of this Agreement, or for damages by reason of any alleged breach of any
      provision of this Agreement, or for a declaration of such Party's rights
      or obligation hereunder, or for any other remedy, the prevailing party
      in such action or proceeding shall recover from the losing party all
      attorney's fees, costs, and expenses reasonably incurred by the
      prevailing party for the services rendered for or on behalf of such
      prevailing party.
    

    
      k.  Non-Waiver. No waiver of the breach
      of any of the provisions of this Agreement shall be a waiver of any
      preceding or succeeding breach of the Agreement or any other provisions
      of it.
    

    
      1.  Construction. As used herein, the masculine
      gender shall include the feminine and neuter, and the singular shall
      include the plural, wherever the context and fasts require such
      construction.
    

    
      m.
       Execution in Counterparts This Agreement may
      be executed in counterparts, all of which, when taken together, shall
      constitute one agreement with the same force and effect as if all
      signatures had been entered on one document.
    

    
      n.  Merger and Modification. This Agreement
      contains the entire agreement between the Parties with respect to the
      subject matter hereof, supersedes all prior agreements, negotiations,
      and oral understandings, if any, and may not be amended, supplemented,
      or discharged, except by an instrument in writing signed by each of the
      Parties hereto. The Parties represent and warrant that there are no
      other agreements, written or oral, between them with respect to the
      subject matter of this Agreement that are not incorporated herein.
    

    
      o.  No Admission of Liability. This Agreement is
      entered into for the settlement and compromise of disputed claims and
      shall never be treated as an admission of liability by any Party for any
      purpose.
    

    

    

    
      
        

        

      

      
        
          7
        

        
          

        

      

      
        

        

      

    

    
      p.  Agreement Drafted Jointly. This Agreement
      was drafted jointly by the Parties. Therefore, in any construction of
      this Agreement, the Agreement shall not be construed against either
      party.
    

    
      q.  Successors and Assigns. This Agreement shall
      inure to the benefit of and be binding upon each of the Parties and
      their respective successors, assigns, heirs, executors, administrators
      and legal and personal representatives.
    

    
      r.  Headings. The heading of the paragraph of this
      Agreement are inserted. for convenience only and shall not be
      deemed to constitute a part hereof.
    

    
      s.  Severance. If any provision of this Agreement or
      any payments pursuant to the tee hereof shall be invalid or
      unenforceable to any extent, the remainder of this Agreement and any
      other payments hereunder shall not be affected thereby and shall be
      enforceable to the greatest extent permitted by law.
    

    
      t.  Facsimile Signatures. This Agreement maybe
      executed by facsimile, and facsimile signatures shall have the
      same force and effect as original signatures.
    

    
      u.  Warranty of Authority. Each person executing this
      Agreement represents and warrants that he has the full power and
      authority to enter into this Agreement on behalf of the entity or person
      for which he signs or for whose benefit this Agreement is entered into
      and to make this Agreement binding onany such entity or person.
    

    
      v.  Retention of Jurisdiction. The requests for
      dismissal referenced in paragraph 8 herein shall acknowledge the
      continuing jurisdiction of the Los Angeles Superior Court in the Stafford
      Action and the Santa Barbara Superior Co~.iit in reference to the Commerce
      Planet Action to enforce the terns of this Settlement Agreement and
      Mutual Release under CCP 664.6.
    

    
      In witness whereof, the Parties have executed this Agreement as of the
      date set forth in the first page of this Agreement.
    

    

    

    
    	
          
            /s/ Jamison Stafford
          

        	
           
        	
          
            /s/ Loren Wimpfheimer
          

        
	
          
            Jamison Stafford
          

        	

        	
          
            Loren Wimpfheimer
          

        

    

    
      
        

        

      

      
        
          8
        

        
          

        

      

      
        

        

      

    

    

    

    
    	
          
            /s/ Anthony G. Roth
          

        	
           
        	
          
            /s/ Anthony G. Roth
          

        
	
          
            Commerce Planet, Inc. by
          

        	

        	
          
            Iventa LLC, by
          

        
	

        	

        	
           
        
	
          
            Anthony G. Roth
          

        	

        	
          
            Anthony G. Roth
          

        
	
          
            its Director
          

        	

        	
          
            its Director
          

        
	

        	

        	
           
        
	
          
            /s/ David Foucar
          

        	

        	
          
            /s/ Charles Gugliuzza
          

        
	
          
            David Foucar
          

        	

        	
          
            Charles Gugliuzza
          

        
	

        	

        	
           
        
	
          
            /s/ Dominic Bohnett
          

        	

        	
          
            /s/ Chris Cruttenden
          

        
	
          
            Dominic Bohnett
          

        	

        	
          
            Chris Cruttenden
          

        
	

        	

        	
           
        
	
          
            /s/ James T. Crane
          

        	

        	
          
            /s/ Anthony G. Roth
          

        
	
          
            James T. Crane
          

        	

        	
          
            Tony Roth
          

        

    

    

    

    
      
        

        

      

      
        
          9
        

        
          

        

      

      
        

        

      

    

    

    

    
      Exhibit 1 to Settlement Agreement

    

    
      Commerce Pianet, ke. ("Assignor") conveys.and assigns to Jamison
      Stafford ("Assignee"), an undivided 50% interest in all of its rights,
      remedies, titles and/or interest in and to any and all rights to receive
      payments from Morlex pursuant to that certain agreement under the terms
      of which Morlex is required to pay Commerce Planet $200,000 over a 12
      month period beginning ort February 21, 2009 as such obligation is
      reflected in the agreement between Commerce Planet and Morlex reflected
      in the public filings of said agreement with the SEC by Commerce Planet.
      Assignor shall hold any Morlex payments it receives in trust for
      Assignee and shall pay 50% of my such payments to Assignee immediately
      upon its receipt of same.
    

    
      Commerce Planet represents and warrants that all applicable
      agreements.relating to the Morlex agreement are attached hereto.
    

    
    	
          
            /s/ Jamison Stafford
          

        	
           
        	
          
            /s/ Anthony G. Roth
          

        
	
          
            Jamison Stafford
          

        	

        	
          
            Commerce Planet, Inc., by
          

        
	

        	

        	
           
        
	

        	

        	
          
            Anthony G. Roth
          

        
	

        	

        	
          
            its Director
          

        

    

    

    

    
      
        

        

      

      
        
          10
        

        
          

        

      

      
        

        

      

    

    

    

    
      Exhibit 2 to Settlement Agreement

    

    
      Commerce Planet, .lnc. ("Assignor") conveys and assigns to Jamison
      Stafford ("Assignee"), all of its rights, remedies,
      titles and/or interest in and to any and all claims and/or causes of
      action against Carolina Casualty Insurance Company ("Carolina") or any
      other insurer arising from the facts and circumstances regarding the
      lawsuit filed in the Superior Court of the State of California for the
      County of Los Angeles entitled "Stafford v. Commerce Planet, Inc., et
      al.," Case No. BC 392 533 ("Stafford Lawsuit"),
      including. but not limited to, claims and/or causes of action for Breach
      of Contract, Breach of the Covenant of Good Faith and Fair Dealing,
      Fraud and Declaratory Relief arising from Carolina's failure to provide
      a defense or indemnity to Assignor arising from the Stafford
      Lawsuit:
    

    
    	
          
            /s/ Jamison Stafford
          

        	
           
        	
          
            /s/ Anthony G. Roth
          

        
	
          
            Jamison Stafford
          

        	

        	
          
            Commerce Planet, Inc., by
          

        
	

        	

        	
           
        
	

        	

        	
          
            Anthony G. Roth
          

        
	

        	

        	
          
            its Director
          

        

    

    

    

    
      11

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