Document:

exv10w10

 

    Exhibit 10.10

 

    MERCHANDISE
    SERVICING AGREEMENT

 

    THIS AGREEMENT is made and entered into as of the
    1st day of April 2002, by and between American
    Consolidation, Inc., 500 Washington Avenue, Carlstadt, New
    Jersey 07512 (“ACI”) and Aeropostale, Inc., 35
    Continental Drive Wayne NJ 07470. (“Customer”).

 

    W I T
    N E S S E T H

 

    WHEREAS, Customer is engaged in the retail business and
    the sale of merchandise customarily available therein; and

 

    WHEREAS, ACI receives, processes, marks, picks,
    consolidates, packs, manifests and loads merchandise at its
    facility located at 500 Washington Avenue, Carlstadt, New Jersey
    (the “ACI Facility”); and

 

    WHEREAS, Customer desires to have ACI perform and ACI is
    willing to provide to Customer all receiving, processing,
    marking, consolidating, picking, packing, manifesting, and
    loading services for Customer’s merchandise sent to ACI at
    Customer’s discretion (the “Merchandise”) subject
    to the terms and conditions specified herein;

 

    NOW, THEREFORE, in consideration of the mutual covenants
    and agreements herein contained, the parties hereto agree as
    follows:

 

		
	
    1.  
	
    Term

 

    The term of this Agreement shall be for an initial term of five
    (5) years commencing as of April 1, 2002 and ending
    March 31, 2007. Customer shall have the option to extend
    this Agreement for an additional five (5) year period
    commencing as of April 1, 2007 and ending March 31,
    2012 upon terms mutually agreed upon. Customer will notify ACI
    with its intent to exercise its option to renew within
    120 days of the expiration of the initial term.

 

		
	
    2.  
	
    Termination

 

    In the event there is a breach of any term of this Agreement by
    ACI, including but not limited to ACI’s failure to provide
    the Services, materials and equipment pursuant to the standards
    set forth herein, Customer shall notify ACI of such breach in
    writing and ACI shall have thirty (30) days to cure such
    breach. In the event ACI has not cured the breach within such
    time, Customer shall have the right to terminate this Agreement
    upon three (3) days notice to ACI.

 

    Customer shall have right to terminate this Agreement:
    (a) upon thirty (30) days notice to ACI, if a
    substantial change in ownership of ACI occurs,
    (b) immediately in the event ACI seeks bankruptcy
    protection or assigns a substantial portion of its assets for
    the benefits of creditors, or (c) immediately after an
    Event of Force Majeure, as hereafter defined in Section 12,
    continues for ninety (90) days.

 

    In addition, in the event Customer terminates this Agreement
    during the initial term prior to March 31, 2007, the
    expiration date set forth in Section 1, other than due to
    ACI’s breach of its obligations under this Agreement,
    Customer agrees to reimburse ACI for the unamortized value of
    the material and equipment upgrades, which material and
    equipment shall be amortized over a five (5) year period,
    made to the ACI Facility at the request of Customer during the
    calendar year 2002.

 

		
	
    3.  
	
    Services,
    Materials and Equipment Provided By ACI

 

    During the term of this Agreement, ACI shall provide the
    distribution services for Customer according to the performance
    standards as set forth in Exhibit A (the
    “Services”), which Exhibit may be amended from time to
    time upon written agreement by both parties hereto.

 

    In addition ACI will provide, at its sole cost and expense, the
    ACI Facility, utilities, insurance, all merchandise handling
    equipment including consolidation, manifesting and sortation
    systems, a Pro Handling rapidpack system

    

    50

 

    and management and labor necessary for the efficient performance
    of its obligations herein. Notwithstanding Section 5(a) of
    this Agreement, the parties understand that ACI is specifically
    providing new scanners, radio frequency or other, manifesting
    and sortation equipment, and software which is part of
    ACI’s new material handling system, which is compatible
    with the Customer’s existing computer hardware and software

 

		
	
    4.  
	
    Representations
    and Warranties of ACI

 

    ACI makes the following representations and warranties to
    Customer on a continuing basis:

 

    (a) ACI is a corporation duly organized, validly existing,
    and in good standing under the laws of the State of New Jersey
    and has the requisite power and authority and the legal right,
    without violating its certificate or articles of incorporation
    or bylaws or any agreement with any third party or any
    applicable law, rule, regulation or governmental or judicial
    decree, to conduct its business as presently conducted and
    hereafter contemplated to be conducted and to execute, deliver
    and perform this Agreement.

 

    (b) This Agreement has been duly executed and delivered by
    ACI and constitutes the legal, valid, and binding obligation of
    ACI.

 

    (c) ACI is Solvent.

 

    (d) No contract, lease agreement, or other instrument to
    which ACI is a party or by which either ACI is bound, and no
    provision of applicable law, materially and adversely affects or
    may so affect the financial condition, business, property or
    prospects of ACI or ACI’s ability to perform this Agreement.

 

    (e) ACI shall comply with all present and future laws,
    statutes, ordinances, rulings, regulations, orders and
    requirements of all federal, state, municipal, county and other
    government agencies and authorities relating to the ACI
    Facility, and shall obtain and keep in full force and effect all
    necessary licenses, permits and similar authorizations from
    governmental authorities required to perform its obligations
    hereunder.

 

		
	
    5.  
	
    Customer’s
    Responsibilities

 

    (a) Customer will provide, at its sole cost, all the
    materials and equipment set forth in Exhibit B attached
    hereto and made a part hereof (the “Customer
    Equipment”). In addition, Customer will be responsible for
    the cost of all inbound and outbound freight associated with the
    processing of its Merchandise.

 

    (b) Customer will provide the personnel to:

 

    (i) Act as an information resource for ACI in the event
    ongoing operational issues arise.

 

    (ii) Handle all systems (AS 400 & Island Pacific)
    problems.

 

    (iii) Handle all communications with vendors regarding
    shipments which are received at the ACI Facility.

 

    (iv) Handle all freight negotiations and payment of freight
    bills.

 

		
	
    6.  
	
    Fees and
    Payment Terms

 

    (a) As ACI’s entire and full compensation for its
    provision of the Services, materials and equipment set forth in
    Section 3 hereof, and any necessary and related costs or
    expenses incurred by ACI in the course of providing the
    Services, materials and equipment, Customer shall pay ACI the
    fees set forth in Exhibit C attached hereto and made a part
    hereof.

 

    (b) Customer shall make payment to ACI of all correctly
    stated amounts within seven (7) days of Customer’s
    receipt of the invoice.

 

		
	
    7.  
	
    Right to
    Audit

 

    ACI agrees to allow Customer’s personnel to inspect and to
    perform an operation field audit of the Services and the ACI
    Facility and to inspect and audit ACI’s invoicing and
    records which relate to the Services performed on the

    

    51

 

    Merchandise as Customer deems necessary in its sole discretion
    at times during any business hours in which ACI operates and
    upon reasonable notice to ACI.

 

		
	
    8.  
	
    Shortages
    and Damages to Merchandise

 

    ACI shall be responsible and liable to Customer for the cost to
    Customer of lost, damaged or misplaced Merchandise. The cost to
    Customer shall be the greater of (i) the book value of the
    Merchandise as determined by the invoice cost plus per unit
    processing cost or (ii) if ACI has been reimbursed by
    virtue of an insurance claim, the total amount of such
    reimbursement. Customer shall notify ACI of any shortage or
    damage to the Merchandise within thirty (30) days of
    ACI’s receipt of the Merchandise.

 

		
	
    9.  
	
    Insurance

 

    ACI shall, at all times during the term of this Agreement, and
    at its sole cost and expense, obtain and maintain the following
    insurance written by insurance companies reasonably acceptable
    to Customer having a minimum rating of A-X in the most recently
    published A.M. Best’s Guide, and admitted and licensed
    to provide insurance in the states in which the Services will be
    performed:

 

    (a) All-risk property insurance upon the Merchandise in
    ACI’s possession in an amount equal to the full replacement
    cost of the Merchandise;

 

    (b) Commercial general liability insurance (including
    contractual liability coverage specifically covering ACI’s
    obligations hereunder) written on an occurrence basis in amounts
    of Five Million Dollars ($5,000,000.00) combined single limit
    per occurrence with respect to bodily injury (including death),
    personal injury and property damage;

 

    (c) Workers’ compensation insurance covering all of
    its employees to the full extent required of all states in which
    ACI performs services under this Agreement;

 

    (d) Employers’ liability insurance with a limit of not
    less than One Million Dollars ($1,000,000.00) for each accident
    and One Million Dollars ($1,000,000.00) for disease.

 

    (e) Business income interruption insurance in an amount not
    to exceed $500,000.00 per occurrence.

 

    The insurance policies, other than the workers’
    compensation insurance policy, shall name Customer as an
    additional insured. Such insurance coverage shall commence as of
    the date of this Agreement and ACI promptly shall deliver to the
    Customer the policies of such insurance, or certificates
    thereof, and with respect to each renewal policy, at least
    thirty (30) days prior to the expiration of the policy it
    renews. All insurance policies maintained by ACI shall provide
    that such policies name Customer as loss payee and shall not be
    amended or canceled without at least thirty (30) days prior
    written notice to Customer. In the event ACI does not obtain the
    insurance required under this Agreement, ACI shall be in default
    of this Agreement and Customer, in addition to its remedies at
    law and equity and as may be found elsewhere in this Agreement,
    may obtain such insurance on behalf of ACI. Customer shall have
    the option of (i) offsetting the cost of such insurance
    against any amounts payable by Customer to ACI until fully
    reimbursed, or (ii) invoicing ACI for such insurance, in
    which event ACI shall pay such invoice within fifteen
    (15) days after the invoice date together with any the
    maximum rate of interest that may be legally charged.

 

    The required liability insurance may be carried under a
    “blanket policy” covering other work of ACI, provided
    that if the blanket policy contains an aggregate limit, the
    limit will apply on a per location basis.

 

    Such policies shall provide for a waiver of any right of
    subrogation that the insurer may acquire against Customer.

 

    It is the express intention of the parties to this Agreement
    that ACI shall cause such insurance coverages to be provided on
    a “primary” basis, regardless of any other insurance
    Customer may elect to purchase and maintain. Accordingly, no
    liability coverage required of ACI shall be subject to an
    “excess” or “pro-rata” type of other
    insurance clause, nor shall any such coverage be subject to any
    clause which would be contrary to the aforesaid intent of the
    parties. Any coverage purchased by Customer will be excess for
    Customer only and not provide any coverage for ACI.

    

    52

 

		
	
    10.  
	
    Indemnification

 

    ACI shall indemnify, defend and hold harmless Customer, its
    affiliates and their respective directors, officers, employees
    and agents from and against any and all damages, costs, losses,
    liability and expenses (including reasonable attorneys fees) in
    connection with any and all actions or threatened actions
    arising out of: (a) the use by ACI of any Customer
    Equipment, (b) the performance by ACI of the Services, or
    (c) the breach of ACI of any term of this Agreement,
    provided that such indemnification obligation shall not arise in
    circumstances where the claim in question arose solely from any
    grossly negligent, intentional, wrongful or unlawful act or
    omission of Customer.

 

		
	
    11.  
	
    Effect of
    Termination

 

    Upon the termination of this Agreement, ACI shall fully perform
    all Services with respect to all Merchandise delivered to ACI
    prior to the effective date of such termination. Customer shall
    pay for all Services performed by ACI prior to the effective
    date of such termination. Each party also agrees to perform all
    other obligations on its part which, by the terms of this
    Agreement, are required to be performed upon termination thereof.

 

		
	
    12.  
	
    Force
    Majeure

 

    Neither party to this Agreement shall be liable for any default
    hereunder due to act of God, riot, accident, strikes, labor
    disputes, work stoppages, fires, floods, acts of a public enemy,
    acts of the United States Government, war or other unforeseeable
    cause beyond its control and without its fault or negligence (an
    “Event of Force Majeure”). Each party hereto shall
    notify the other in writing of any such unforeseeable causes
    beyond its control which may have delayed or may delay the
    performance of its obligations pursuant to this Agreement. When
    ACI has, for any reason, failed to perform the Services
    hereunder because of an Event of Force Majeure or given notice
    hereunder that it will fail to make such delivery because of any
    Event of Force Majeure, Customer shall have the right, for a
    period of not less than thirty (30) days, to have the
    Services performed by sources other than ACI, provided that
    Customer’s commitment to have such Services performed by
    sources other than ACI. Notwithstanding anything contained
    herein to the contrary, in the event any Event of Force Majeure,
    ACI shall have a period of ten (10) days from the date of
    said occurrence to have the Services performed with respect to
    the Merchandise from another source. In the event ACI is unable
    to provide such alternate source to have the Services performed
    within such
    10-day
    period, Customer shall have the right to have the Services
    performed through an alternate source, and any difference in the
    cost of having the Services performed by an alternate source and
    the cost of Services provided under this Agreement shall be
    immediately reimbursed by ACI to Customer. The failure of ACI to
    perform the Services due to an Event of Force Majeure shall not
    be deemed to be a breach of any provision of this Agreement;
    provided that ACI commences performing Services with respect to
    the Merchandise within ninety (90) days after an Event of
    Force Majeure or after notice to Customer of any Event of Force
    Majeure.

 

		
	
    13.  
	
    Alternate
    Dispute Resolution

 

    If there is a controversy or dispute arising out of, related to
    or involving this Agreement that is not resolved by negotiation
    and agreement of the parties within 30 calendar days of the
    controversy or dispute arising, such controversy or dispute
    shall be resolved exclusively through binding, conclusive and
    confidential alternate dispute resolution (“ADR”)
    pursuant to the New Jersey Alternate Procedure for Dispute
    Resolution Act (“NJADR Act”), N.J.S.A. 2A:23A-1
    et seq, by submission to an umpire mutually selected by
    the parties. If the parties are unable to mutually agree upon an
    umpire, each party shall designate a former federal judge or New
    Jersey Supreme Court justice of Superior Court judge and the
    umpire shall be selected as between them by the flip of a coin.
    The ADR shall be held in Wayne, New Jersey, and shall then
    proceed in accordance with the NJADR Act but shall be conducted
    confidentially. The decision of the umpire shall be binding upon
    the parties hereto and the parties hereby waive and relinquish
    right of appeal afforded by the NJADR Act. The cost of the
    umpire shall be borne equally by the parties, unless the umpire
    decides based on equitable principles to apportion such costs in
    a different manner.

 

		
	
    14.  
	
    Confidentiality

 

    ACI shall, from time to time, gain access to certain proprietary
    business information (including, without limitation, information
    relating to Customer’s business activities, cost of doing
    business and the cost of supplies

    

    53

 

    purchased hereunder) (“Proprietary Information”) of
    Customer which is confidential in nature. ACI agrees to hold all
    such Proprietary Information in trust and confidence for the
    exclusive benefit of Customer. ACI shall not disclose or
    divulge, nor permit any disclosure of, any Proprietary
    Information to any entity not a party to this Agreement, nor
    shall ACI appropriate or use any Proprietary Information to
    benefit itself or any other entity. ACI shall also inform any of
    its respective affiliates or subsidiaries and their respective
    directors, officers, employees and agents thereof
    (“Agent”) providing Services hereunder of the terms of
    this Section of this Agreement. ACI shall be responsible for its
    respective Agent’s failure to comply with the terms of this
    Section and any liability arising therefrom.

 

    ACI and Customer agree that any disclosure or use of the
    Proprietary Information other than for the exclusive benefit of
    Customer will cause irreparable harm to Customer and that money
    damages alone would be an inadequate remedy for any disclosure
    or unauthorized use of the Proprietary Information by ACI.
    Therefore, ACI and Customer agree that Customer shall be
    entitled to obtain specific performance, injunctive relief or
    any other remedy available at law or in equity in the event of
    such disclosure or unauthorized use. This Section 14 shall
    survive the termination of this Agreement.

 

		
	
    15.  
	
    Relationship
    of the Parties

 

    The relationship between Customer and ACI under this Agreement
    shall be solely that of vendor and vendee. It is expressly
    understood and agreed by the parties hereto that nothing in this
    Agreement, its provisions, or the transactions and relationships
    contemplated hereby shall constitute either party as an agent,
    employee, partner, or legal representative of the other for any
    purpose whatsoever, nor shall either party hold itself out as
    such. Neither party to this Agreement shall have the authority
    to bind or commit the other party hereto in any manner or for
    any purpose whatsoever but rather each party shall, at all
    times, act and conduct itself in all respects and events as an
    independent contractor. In no event shall the employees or
    contractors of ACI or any other person performing the Services
    hereunder be deemed to be the employees of Customer. This
    Agreement creates no relationships of joint ventures, partners,
    associates, or principal or agents between the parties hereto.
    ACI agrees that neither it nor any of it officers or affiliates
    will at any time, either during or after the termination of this
    Agreement, directly or indirectly, in any manner use the name of
    Customer or any trade, trademark, service mark, or logo of
    Customer without Customer’s prior written permission. In no
    event shall the employees or contractors of ACI or any other
    person performing the Services hereunder be deemed to be the
    employees of Customer.

 

		
	
    16.  
	
    Assignment

 

    This Agreement may not be assigned by either party hereto except
    with the prior written consent of the other party, which consent
    will not unreasonably be withheld or delayed, and any attempted
    assignment in violation of this provision shall be void.

 

		
	
    17.  
	
    Administrative
    Expenses

 

    Each party hereto shall pay all of its own administrative
    expenses (including, without limitation, the fees and expenses
    of their agents, representatives, counsel and accountants,
    incident to the preparation of this Agreement).

 

		
	
    18.  
	
    Successors
    and Assigns

 

    This Agreement shall be binding upon and inure to the benefit of
    the successors and permitted assigns of the parties hereto.

 

		
	
    19.  
	
    Title to
    Merchandise and Customer Equipment

 

    (a) Title to and ownership of the Merchandise shall, at all
    times, rest solely with the Customer. ACI shall not act in a
    manner which is inconsistent with Customer’s title thereto
    including, but not limited to, causing or allowing any lien or
    security interest for the benefit of any ACI creditor to attach
    to the Merchandise. In the event that any such security interest
    or lien attaches to such Merchandise, ACI agrees to pay the same
    and have it discharged of record, promptly, and to take such
    action as may be required to reasonably and legally object to
    such security interest or lien or to have such security interest
    or lien removed from such Merchandise, including, without

    

    54

 

    limitation, completing and signing any documents,
    acknowledgments or other documentation requested by Customer.

 

    ACI hereby waives any right to lien against any Merchandise
    which may be located in the ACI facility. Customer may make, in
    its sole discretion, any and all UCC informational filings
    regarding its ownership interest in its equipment and the
    Merchandise. ACI agrees to cooperate with Customer in making
    such filings and take all reasonable action to complete such
    filings as requested by Customer.

 

    (b) In the event ACI causes or allows any such security
    interest of lien to attach to Customer’s property rights in
    and to the Merchandise, which security interest or lien is not
    removed within thirty (30) days, Customer shall have the
    right to terminate this Agreement immediately after such thirty
    (30) day period cure period.

 

    (c) The Customer Equipment shall at all times remain the
    sole and exclusive property of Customer and shall not be used
    for any purpose except as specifically directed by Customer. ACI
    shall not permit any security interest, lien or other
    encumbrance (“Encumbrance”) to attach to any Customer
    Equipment or Merchandise and in the event any such Encumbrance
    attaches to any Customer Equipment or Merchandise, ACI will pay
    to have it discharged of record promptly, and to take such
    action as may be required to reasonably and legally object to
    such security interest or lien or to have such security interest
    or lien removed from such property. ACI hereby waives any right
    to lien against any property of Customer, including any Customer
    Equipment and Merchandise which may be located at the ACI
    Facility. Customer may make, in its sole discretion, any and all
    UCC informational filings regarding its ownership interest in
    the Customer Equipment and the Merchandise. ACI agrees to
    cooperate with Customer in making such filings and take all
    reasonable action to complete such filings as requested by
    Customer at Customer’s cost and expense. Customer shall be
    responsible for the cost of maintenance of the Customer
    Equipment located at the ACI Facility and ACI agrees to notify
    Customer of the need for any non-routine maintenance on the
    equipment and Customer agrees to keep all of the Customer
    Equipment in a condition which enables ACI to perform the
    Services for Customer herein. Upon termination of this
    Agreement, all such Customer Equipment shall be returned
    forthwith to Customer in the condition such Customer Equipment
    was delivered to ACI, reasonable wear and tear excepted. ACI
    hereby agrees that it will assume all risk of loss on the
    Merchandise and Customer Equipment owned by Customer from the
    time of its receipt of such Merchandise or Customer Equipment
    until such time as Customer subsequently receives such
    Merchandise or Customer Equipment. ACI shall replace or repair,
    at its sole cost and expense, any Customer Equipment which is
    lost, stolen, damaged, destroyed or otherwise unavailable for
    use or return to Customer.

 

		
	
    20.  
	
    Waiver of
    Breach

 

    The waiver by any party to this Agreement of any breach or
    violation of any provision of this Agreement by the other party
    hereto shall not operate or be construed to be a waiver of any
    subsequent breach of violation thereof.

 

		
	
    21.  
	
    Governing
    Law and Severability

 

    This Agreement shall be governed by and interpreted in
    accordance with the substantive and procedural laws of the State
    of New Jersey. The terms and conditions of this Agreement are
    hereby deemed by the parties to be severable, and the invalidity
    or unenforceability of any one or more of the provisions of this
    Agreement shall not affect the validity or enforceability of the
    other provisions hereof.

    

    55

 

		
	
    22.  
	
    Notices

 

    Any notice contemplated by or required or permitted to be given
    under this Agreement shall be sufficient if in writing and if
    delivered personally or sent by nationally recognized carrier or
    by registered or certified mail, return receipt requested, to
    the parties’ respective addresses below, or to such other
    addresses either of the parties hereto may hereinafter designate
    in writing:

 

    American Consolidation, Inc.

    500 Washington Avenue

    Carlstadt, New Jersey 07072

    Attn: Steven Sacharoff, Chief Executive Officer

 

    Aeropostale, Inc.

    35 Continental Drive

    Wayne, New Jersey 07470

    Attn: John Mills, Chief Operating Officer

    

    56

 

    THIS AGREEMENT reflects the complete understanding of the
    parties and constitutes their entire agreement, all prior
    negotiations, representations and statements having been merged
    herein. This Agreement, including the Exhibits hereto, may not
    be changed or amended orally but only in writing signed by both
    parties.

 

    IN WITNESS WHEREOF, the parties have executed this
    Agreement by the signature of their respective, duly authorized
    corporate officers as of the day and year first above written.

 

    AMERICAN CONSOLIDATION, INC.

 

			
	 	    By: 
	
    /s/  Steven Sacharoff

    Steven Sacharoff,

    Its Chief Executive Officer

 

    AEROPOSTALE, INC.

 

			
	 	    By: 
	
    /s/  John S. Mills

    John S. Mills

    Its Chief Operating Officer

    

    57

 

 

    Exhibit A

 

    Services
    and Performance Standards to be Provided by ACI

 

    SERVICES

 

    (a) Schedule deliveries within twenty-four (24) hours
    of request for appointment based upon Customer’s monthly
    plan.

 

    (b) Receive, Check, Mark (where applicable), Pick, Pack,
    Consolidate, Manifest and Ship merchandise in accordance with
    customer’s standard policies and procedures attached hereto
    as Attachment 1 to Exhibit A.

 

    (c) Process all documentation related to the warehouse and
    distribution system including but not limited to, Appointment
    Log, Vendor Invoice, Packing Slip, Bill of Lading, Key Rec
    Panel, Trouble Notification Form, Receiving Worksheet, Receiving
    Manifest, Vendor Chargeback Form and LTA Shipping Manifest, and
    in accordance with customer’s standard policies and
    procedures attached hereto as Attachment 1 to Exhibit A.

 

    PERFORMANCE
    STANDARDS

 

    (a) ACI shall perform the Services in a proper and
    workmanlike manner in accordance with accepted industry
    standards, practices and procedures (“Industry
    Standards”).

 

    (b) ACI shall provide the Services with regard to the
    Merchandise within the following time constraints:

 

    (1) All Merchandise received as Cross-Docked will be
    processed and shipped within 24 hours of receipt of
    Distribution information from Customer.

 

    (2) All other Merchandise will be processed within
    48 hours of receipt of Distribution information from
    Customer.

 

    (c) ACI shall maintain a Quality Level of 99% with respect
    to Merchandise processing accuracy and as defined in the Base
    Plus Kurt Salmon Associates Quality System.

    

    58

 

    Attachment
    1 to Exhibit A

 

    Customer’s
    Standard Policies and Procedures

    

    59

 

    EXHIBIT B

 

    Materials
    and Equipment to be provided by Customer at the ACI
    Facility

 

    (A) ALL CONTROL ROOM EQUIPMENT, TICKET MAKING
    EQUIPMENT, TICKET STOCK, COMPUTER FORMS, LABELS, AND PACKING
    CARTONS.

 

    (B) ALL CONTROL ROOM COMPUTER EQUIPMENT AND DATA
    COMMUNICATION LINES.

 

    (C) ALL PACKING SUPPLIES, HANGERS, POLY BAGS, CARTONS,
    SEALING TAPE, AND LABELS NECESSARY FOR MERCHANDISE PROCESSING.

    

    60

 

    EXHIBIT C

 

    Fees
    Payable to ACI

 

    Rate
    Schedule

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
 
	
 
	
    Cost per Unit
	
 

	

    Service

	
 
	
    2002*
	
 
	
 
	
    2003
	
 
	
 
	
    2004
	
 
	
 
	
    2005
	
 
	
 
	
    2006
	
 
	
 
	
    2007
	
 

	 

	

    Processing Service
    

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	

    Regular
    

	
 
	
    $
	
    0.316
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
    N/A
	
 
	
 
	
 
	
 
	
 

	

    Pre-Pack
    

	
 
	
    $
	
    0.246
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
    N/A
	
 
	
 
	
 
	
 
	
 

	

    Pre-Ticketed
    

	
 
	
    $
	
    0.251
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
    $
	
    .145
	
 
	
 
	
 
	
 
	
 

	

    Pre-Pack/Pre-Ticketed
    

	
 
	
    $
	
    0.216
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
    $
	
     .11
	
 
	
 
	
 
	
 
	
 

	

    Cross Dock
    

	
 
	
    $
	
    0.050
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
    $
	
     .04
	
 
	
 
	
 
	
 
	
 

	

    Backstock
    

	
 
	
    $
	
    0.120
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
    $
	
     .14
	
 
	
 
	
 
	
 
	
 

	

    Special Projects
    

	
 
	
    $
	
    9.50/hr
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
    $
	
    10.50/hr
	
 
	
 
	
 
	
 
	
 

 

 

			
	
    * 		
    Rates effective 4/1/2002 until 1/31/2003.

 

    All other rates commence on
    2/1
    of the stated year and are effective until
    1/31
    of the following year. New rate structures will be implemented
    each year based upon Aeropostale’s receipt projection.

    

    61exv10w1

 

EXHIBIT 10.1

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (this “Agreement”) dated and effective as of April 3, 2006 (the
“Effective Date”) is by and between US DATAWORKS, INC., a Nevada corporation (the
“Company”), and John J. Figone (“Figone”). In consideration of the mutual covenants and
promises contained herein, the parties agree as follows.

     WHEREAS, the Company deems it essential that it have the advantage of the services of Figone
and desires to enter into a continuing agreement of employment with him, and to provide Figone with
compensation, including stock options.

ARTICLE 1  GENERAL PROVISIONS

     Section 1.1 Employment. The Company hereby employs Figone, and Figone accepts such
employment by the Company upon the terms and conditions hereof.

     Section 1.2 Term. Subject to earlier termination as specifically set forth herein,
the initial term of this Agreement shall be commencing on the Effective Date and continuing until
April 3, 2008 (the “Term”). The Term shall be extended automatically without further action by
either party for successive one (1) year terms (each extension expiring on the anniversary of April
3), unless either party shall have served not less than ninety (90) days prior written notice upon
the other party that this Agreement shall terminate.

     Section 1.3 Termination. Figone’s employment and this Agreement shall terminate upon
the earliest to occur of any of the following events (the actual date of such termination being
referred to herein as the “Termination Date”):

     (a) Pursuant to Section 1.2.

     (b) In the event of Figone’s death or disability as set forth in Section 3.6.

     (c) Termination of Figone’s employment by the Company for cause without any prior notice
(except as specifically set forth below), upon the occurrence of any of the following events (each
of which shall constitute “Cause”):

          (i) any embezzlement or wrongful diversion of funds of the Company or any affiliate of the
Company by Figone;

          (ii) gross malfeasance by Figone in the conduct of Figone’s duties;

          (iii) breach of this Agreement or any of the Company’s written policies and, if such breach is
capable of being cured, as determined by the Board of Directors of the Company (the “Board of
Directors”), failure of Figone to cure such breach after notice and reasonable opportunity to cure
such breach;

          (iv) gross neglect by Figone in carrying out Figone’s duties; or

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          (v) willful violation by Figone of any applicable federal or state securities laws or
regulations.

     (d) Termination of Figone’s employment by the Company at any time without Cause.

     (e) Termination by Figone of his employment at any time.

     Section 1.4 Termination Obligations: Return of Company Property. Upon termination of
this Agreement, Figone shall promptly return all Company property.

ARTICLE 2

POSITION AND DUTIES; OTHER BUSINESS ACTIVITIES

     Section 2.1 Position. Figone shall be employed as Senior Vice President, Business
Development and General Counsel. Figone shall also serve as Secretary of the Company. Figone
shall report directly to the Chief Executive Officer of the Company.

     Section 2.2 Duties: Full Attention to Business. The primary focus of Figone’s
employment is to aggrandize Top-line Revenues of the Company through acquisitions and mergers
(“Inorganic Revenue Growth”) and by establishing strategic partnerships. Figone shall be directly
responsible for the supervision and management of the Company’s Business Development, establishing
and maintaining Strategic Alliances and Relationships, and the Company’s General Counsel. Figone
shall perform such services for the Company that reasonably serve the purpose of this Agreement
and/or meet the needs of the Company, and that are consistent with the position Figone holds.
Figone shall devote his full business time, energies, interest, abilities, and productive efforts
to the business of the Company. Except as may be approved by the Company’s Board of Directors,
Figone shall not render any kind of employee-type or consulting services to others for compensation
and, in addition, shall not engage in any activity which conflicts or interferes with his
performance of duties hereunder. Notwithstanding the provisions of this Section 2.2, Figone may,
with the prior written consent of the Board of Directors, engage in civic, charitable, or
educational activities, provided that such service and activities do not, individually or in the
aggregate, interfere with the performance of Figone’s duties under the Agreement.

     Section 2.3 Covenant Not To Compete During Term. During the Term, Figone shall comply
in all respects with the Company’s written policies with respect to conflicts of interest. Except
as may be approved by the Company’s Board of Directors, Figone shall not engage in or be
interested, directly or indirectly, in any business or operation competitive with the Company. For
the purpose of this paragraph, Figone shall be deemed to be interested in a business or operation
which is competitive with the Company if Figone is a holder of five percent (5%) or more of the
issued and outstanding ownership interests in such business or operation, or serves as a director,
officer, employee, agent, partner, individual proprietor, lender, consultant, or independent
contractor of such business or operation.

     Section 2.4 Non-Disclosure of Confidential Information. Figone acknowledges that in
connection with his employment by the Company or its affiliates, he has and may acquire or

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learn “Confidential Information” of the Company by virtue of a relationship of trust and
confidence between Figone and the Company. Figone warrants and agrees that during the Term he
shall not disclose to anyone (other than to officers of the Company or to such other persons as
such officers may designate), or use, except in the course of his employment with the Company or
its affiliates, any Confidential Information acquired by him in the course of or in connection with
his employment. As used herein, the term “Confidential Information” shall include, but not be
limited to: all information of any type or kind, whether or not reduced to a writing and whether or
not conceived, originated, discovered or developed in whole or in part by Figone, which is directly
related to the Company, its operations, policies, agreements with third parties, its financial
affairs and related matters, including business plans, strategic planning information, product
information, purchase and sales information and terms, supplier negotiation points, styles and
strategies, contents and terms of contracts between the Company and suppliers, advertisers,
vendors, contact persons, terms of supplier and/or vendor contracts or particular transactions,
potential supplies and/or vendors, or other related data; marketing information such as but not
limited to, prior, ongoing or proposed marketing programs, presentations, or agreements by or on
behalf of the Company, pricing information, customer bonus programs, marketing tests and/or results
of marketing efforts, computer files, lists and reports, manuals and memos pertaining to the
business of the Company, lists or compilations of vendor and/or supplier names, addresses, phone
numbers, requirements and descriptions, contract information sheets, compensation requirements or
terms, benefits, policies, and any other financial information whether about the Company, entities
related or affiliated with the Company or other key information pertaining to the business of the
Company, including but not limited to all information which is not generally available to or known
in the information services industry (or is available only as a result of an unauthorized
disclosure) and is treated by the Company as “Confidential Information” during the term of this
Agreement, regardless of whether or not such Information is a “trade secret” as otherwise defined
by applicable law unless such information is in the public domain.

     Section 2.5 No Solicitation of Company’s Employees. Figone specifically agrees that
during the Term and for a period of one (1) year after his termination of employment with the
Company, Figone shall not, directly or indirectly, either for himself or for any other person,
firm, corporation, or legal entity, solicit any individual, then employed by the Company to leave
the employment of the Company, without first securing permission from the Company to do so.

     Section 2.6 Ownership of Work Product and Ideas. Any discoveries, inventions,
patents, materials, licenses and ideas applicable to the industry or relating to Figone’s services
for the Company or its affiliates, whether or not patentable or copyrightable, created by Figone
during his employment by the Company or its affiliates (“Work Product”) and all business
opportunities within the industry (“Opportunities”) introduced to Figone by the Company or its
affiliates will be owned by the Company, and Figone will have no personal interest in such, except
to the extent that the Company allows Figone to invest or participate in or have other rights to
such Work Product or Opportunities. Figone will, in such connection, promptly disclose any such
Work Product and Opportunities to the Company and, upon request of the Company, will assign to the
Company all right in such Work Product and Opportunities.

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ARTICLE 3

COMPENSATION; BENEFITS

     Section 3.1 Salary. The Company shall pay Figone Seven Thousand Two Hundred
Ninety-one Dollars and Sixty-seven cents ($7,291.67) on a semi-monthly basis, for an annualized
base salary (“Base Salary”) of One Hundred Seventy-five Thousand Dollars ($175,000). Beginning
with the first anniversary of the Effective Date and for each subsequent year of employment (or any
portion of any such year), Figone shall be entitled to a Base Salary review by the Company to
determine if any increase to Base Salary is warranted as a result of performance.

     Section 3.2 Inorganic Revenue Growth Bonus.

     (a) The primary focus of Figone’s employment is to increase the Top-line Revenues of the
Company through acquisitions and mergers and by establishing strategic partnerships. As an
incentive to achieving this end, Figone shall receive a cash bonus, paid quarterly, for any
acquisitions or mergers involving the Company (“Inorganic Revenue Growth Bonus”). The amount of
the Inorganic Revenue Growth Bonus shall be calculated by multiplying the Asset Value of the
entity/assets being acquired or merged with the corresponding Inorganic Revenue Growth percentage,
as set forth in Schedule 1, attached hereto. For purposes of this Agreement, the “Asset Value”
shall be the reported value for the asset(s) being acquired or merged determined in accordance with
generally accepted accounting principles (GAAP) and as reported in the Company’s (or the surviving
acquirer’s) Securities Exchange Commission (“SEC”) public filing. For example, if all of the
assets of the Company are acquired by a third party entity, the Asset Value shall be the value such
third party reports as having paid for the Company’s assets, not the asset value of the acquiring
third party entity. Conversely, if the Company acquires an entity, the Asset Value shall be the
value the Company paid for that entity. In the event a merger or acquisition is effected without a
SEC filing, the Asset Value shall be the purchase price as memorialized in the corresponding
acquisition or merger documentation between the parties. The Inorganic Revenue Growth Bonus shall
be paid to Figone within thirty (30) days of the Company’s fiscal quarter’s end in which the
acquisition or merger is consummated.

     (b) At the end of any fiscal quarter in which an Inorganic Revenue Growth Bonus is to be paid
to Figone, should the Company determine, in good faith, that the Company’s cash position is such
that it will not have sufficient cash to fund its business operations for the next three successive
fiscal quarters, then, in lieu of an all cash Inorganic Revenue Growth Bonus, the Company shall
give Figone written notice of its determination and Figone will, at his option, receive an
Inorganic Revenue Growth Bonus payable as follows: (i) cash in any portion up to but not exceeding
fifty percent (50%) of the Inorganic Revenue Growth Bonus amount, and (ii) the remaining balance of
the Inorganic Revenue Growth Bonus shall be payable in shares of restricted common stock equal to
one hundred ten percent (110%) of the non-cash balance of the Inorganic Revenue Growth Bonus

     Section 3.3 Paid Vacation. Figone shall be entitled to be paid vacation time under
the Company’s policies applicable to other senior executives of the Company’s policies, but in no
event shall Figone be eligible for less than four (4) weeks of paid time off per calendar year.

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     Section 3.4 Stock Options.

     (a) Subject to approval of the Compensation Committee of the Board of Directors, which such
grant shall be made as promptly hereafter as practicable, the Company will grant to Figone an
option to purchase Seven Hundred Thousand (700,000) shares of common stock of the Company under the
Plan, which shall be intended to qualify as an incentive stock option to the maximum extent
permitted under Section 422 of the Internal Revenue Code of 1986, as amended. The option shall be
subject to the terms and conditions of the Plan and an option agreement to be entered into between
the Company and Figone, in a form approved by the Compensation Committee of the Board of Directors
which option agreement shall provide that such option shall have a ten (10) year term (subject to
earlier termination in connection with termination of employment). All such options will have the
exercise price per share equal to the fair market value of the Company’s common stock as of the
date of grant.

     (b) The option shall vest and become exercisable, subject to continued employment as follows:

          (i) three hundred thousand (300,000) shares of common stock shall vest on April 3, 2006;

          (ii) two hundred thousand (200,000) shares of common stock shall vest on April 3, 2007;

          (iii) two hundred thousand (200,000) shares of common stock shall vest on April 3, 2008; and,

          (iv) in each case to become fully vested and exercisable upon a Change in Control as defined
in the Plan (a “Change in Control”).

     (c) Figone shall be eligible to receive additional grants of options pursuant to the Plan in
the sole discretion of the Compensation Committee of the Board of Directors.

     Section 3.5 Other Benefits. During the Term, Figone shall be entitled to participate
in present and future employee benefit plans which are available to the Company’s employees,
subject to eligibility requirements thereunder.

     Section 3.6 Disability or Death. If the Board of Directors determines, on the basis
of professional medical advice, that Figone has become unable to substantially perform his duties
under this Agreement due to illness or mental or physical disability with reasonable accommodation,
and that such failure or inability has continued or is reasonably expected to continue for any
consecutive six-month period, the Company shall have the option to terminate this Agreement by
giving written notice to Figone thereof and the basis therefor at least thirty (30) days prior to
the effective date of termination. This Agreement shall also terminate immediately upon Figone’s
death. If Figone’s employment with the Company is terminated pursuant to this Section 3.6, the
Company shall pay Figone the salary, bonuses, and commissions which are earned but unpaid as of the
date of termination.

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     Section 3.7 Severance.

     (a) If the Company terminates Figone’s employment other than for Cause pursuant to Section
1.3(d), other than by reason of death or Disability pursuant to Section 3.6, or if Figone resigns
within ten (10) days following a material reduction in his duties (as per Section 2.2) or material
reduction of compensation within six (6) months following a Change in Control then subject to
Figone’s continuing obligations under Section 2.4 and Section 2.5 and in consideration of the
execution, delivery and effectiveness of a general release of claims in a standard form approved by
the Company, the Company shall pay to Figone a lump sum of two (2) times Figone’s current Base
Salary in cash within fifteen (15) days after the date of termination (or, if later, upon the
effectiveness of the general release following any applicable revocation period), any Inorganic
Revenue Growth Bonus for acquisitions or mergers consummated within one hundred 180 days after the
date of termination and shall vest one hundred percent (100%) of Figone’s then remaining unvested
portion of the options granted in accordance with this Agreement, in addition to other amounts
payable from qualified plans, nonqualified retirement plans, and deferred compensation plans, which
amounts shall be paid in accordance with the terms of such plans.

     (b) If the Company terminates Figone’s employment for Cause, or if Figone resigns, then Figone
shall only be entitled to be paid his accrued, unpaid Base Salary through the effective date of his
termination of employment, any Inorganic Revenue Growth Bonus for acquisitions or mergers
consummated prior to the fiscal quarter’s end in which the date of termination occurs and his
entitlement to other amounts payable from qualified plans, nonqualified retirement plans, and
deferred compensation plans shall be determined in accordance with the terms of such plans.

     (c) No severance benefits shall be provided pursuant to this Section 3.7 if Figone’s
employment is terminated by reason of expiration or non-renewal of this Agreement in accordance
with Section 1.2. with the exception of any earned Revenue Growth Bonus or any unpaid FY2006 bonus.

     Section 3.8 Excess Parachute Payments.

     (a) If there is a “Change in Control” of the Company within the meaning of Section 280G of
the Internal Revenue Code of 1986, as amended (the “Code”), a portion of the benefits to which
Figone is entitled under this Agreement could be characterized as “excess parachute payments”
within the meaning of Section 280G of the Code. The parties hereto acknowledge that the protections
set forth in this Section 3.8 are important, and it is agreed that Figone should not have to bear
the full burden of the excise tax that might be levied under Section 4999 of the Code or any
similar provision of federal, state of local law, in the event that any portion of the benefits
payable to Figone pursuant to this Agreement or the other incentive plans of the Company are
treated as an excess parachute payment. The parties, therefore, have agreed as set forth in this
Section 3.8.

     (b) Anything in this Agreement to the contrary notwithstanding, if it shall be determined that
any payment or distribution (including income recognized by Figone upon the early vesting of
restricted property or upon the exercise of options whose exercise date has been

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accelerated) by the Company or any other Person to or for the benefit of Figone (whether paid
or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise,
but determined without regard to any additional payments required under this Section 3.8, (a
“Payment”) would be subject to the excise tax imposed by Section 4999 of the Code or any similar
provision of any federal, state or local law or any interest or penalties are incurred by Figone
with respect to such excise tax (such excise tax, together with any such interest and penalties,
are hereinafter collectively referred to as the “Excise Tax”), then the Company shall pay an
additional payment, not to exceed the amount of Figone’s then current Base Salary in the aggregate
(a “Gross-Up Payment”), in an amount such that after payment by Figone of all taxes (including any
interest or penalties imposed with respect to such taxes), including, without limitation, any
income taxes (and any interest and penalties imposed with respect thereto) and Excise Tax imposed
on the Gross-Up Payment, Figone retains an amount of the Gross-Up Payment equal to fifty percent
(50%) of the Excise Tax imposed on the Payments. Figone will bear the cost of the remaining fifty
percent (50%) until the aggregate Gross-Up Payments from the Company have reached the amount of
Figone’s then current Base Salary, and will thereafter bear all additional taxes, interest or
penalties.

     (c) In the event of any dispute as to the applicability or amount of any Gross-Up Payment, all
determinations required to be made under this Section 3.8, including whether and when a Gross-Up
Payment is required and the amount of such Gross-Up Payment and the assumptions to be utilized in
arriving at such determination, shall be made by the independent public accounting firm regularly
employed by the Company (the “Accounting Firm”) which shall provide detailed supporting
calculations both to the Company and to Figone within fifteen (15) business days after the receipt
of notice from Figone that there has been a Payment, or such earlier time as is requested by the
Company. All fees and expenses of the Accounting Firm will be borne by the Company. If the
Accounting Firm determines that no Excise Tax is payable by Figone, it shall furnish Figone with a
written statement that failure to report the Excise Tax on Figone’s applicable federal income tax
return would not result in the imposition of a negligence or similar penalty. Any determination by
the Accounting Firm shall be binding on the Company and Figone unless and until a final
determination is received from the Internal Revenue Service indicating a contrary result. As a
result of uncertainty in the application of Section 4999 of the Code at the time of the initial
determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments may not have
been made by the Company that should have been made (“Underpayment”), consistent with the
calculations required to be made hereunder. If Figone thereafter is required to make a payment of
any Excise Tax, the Accounting Firm shall determine the amount of the Underpayment that has
occurred and any such Underpayment shall be promptly paid by the Company to or for the benefit of
Figone, consistent with the maximum limitation stated in this Section 3.8. In the event it is
determined by the Accounting Firm that the Gross Payments previously made by the Company exceeded
the limitations stated in this Section 3.8, upon written notice from the Company, accompanied by a
copy of the Accounting Firm’s calculation of same, the amount of such overpayment shall be promptly
paid by Figone to the Company.

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ARTICLE 4

MISCELLANEOUS PROVISIONS

     Section 4.1 Entire Agreement. This Agreement contains the entire Agreement between
the Parties and supersedes all prior oral and written Agreements, understandings, commitments, or
practices between the Parties with respect to the subject matter hereof. Other than as expressly
set forth herein, Figone and the Company acknowledge and represent that there are no other
promises, terms, conditions or representations (verbal or written) regarding any matter relevant
hereto. No supplement, modification, or amendment of any term, provision or condition of this
Agreement shall be binding or enforceable unless evidenced in writing and executed by the parties.
The provisions of Sections 2.4, 2.5 and 2.6 shall survive termination of this Agreement.

     Section 4.2 Applicable Law. This Agreement shall be governed exclusively by and
construed in accordance with the laws of the State of Texas, notwithstanding choice of law
provisions thereof; and the venue of any litigation commenced hereunder shall be Houston, Texas.

     Section 4.3 Injunctive Relief. Figone acknowledges that his services are of a
special, unique, unusual, extraordinary and intellectual character, which gives them a peculiar
value, the loss of which cannot be reasonably or adequately compensated in damages in an action at
law. If he should breach this Agreement, in addition to its rights and remedies under general law,
the Company shall be entitled to seek equitable relief by way of injunction or otherwise.

     Section 4.4 Partial Invalidity. If the application of any provision of this
Agreement, or any section, subsection, subdivision, sentence, clause, phrase, word or portion of
this Agreement should be held invalid or unenforceable, the remaining provisions thereof shall not
be affected thereby, but shall continue to be given full force and effect as if the invalid or
unenforceable provision had not been included herein.

     Section 4.5 Notices. Notices given under this Agreement shall be given by registered
or certified mail, postage prepaid, return receipt requested, or by personal delivery to the
respective addresses of the parties. Notices to Figone shall be sent to 5301 Hollister Road, Suite
250, Houston, Texas 77040, Attn: John J. Figone. Notices to the Company shall be sent to 5301
Hollister Road, Suite 250, Houston, Texas 77040, Attn: Chief Executive Officer. A mailed
first-class notice shall be deemed given two (2) business days after deposit with U.S. Postal
Service.

     Section 4.6 Counterparts. This Agreement may be executed in one or more counterparts,
each of which shall be deemed an original, but all of which shall constitute one and the same
instrument.

     Section 4.7 Assignment. This Agreement may not be assigned or encumbered in any way
by Figone. The Company may assign this Agreement to any successor (whether by

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merger, consolidation, or purchase of the Company’s stock) to all or a controlling interest in
the Company’s business, in which case this Agreement shall be binding upon and inure to the benefit
of such successor(s) and assign(s).

     Section 4.8 Limitation on Waiver. A waiver of any term, provision, or condition of
this Agreement shall not be deemed to be, or constitute a waiver of any other term, provision or
condition herein, whether or not similar. No waiver shall be binding unless in writing and signed
by the waiving party.

     Section 4.9 Attorney’s Fees. In the event that any proceeding is commenced involving
the interpretation or enforcement of the provisions of this Agreement, the Party prevailing in such
proceeding shall be entitled to recover its reasonable costs and attorneys’ fees.

     Section 4.10 Taxes. All payments made pursuant to the provisions of this Agreement
shall be subject to the withholding of applicable taxes.

     Section 4.11 Not for the Benefit of Creditors or Third Parties. The provisions of
this Agreement are intended only for the regulation of relations among the parties. This Agreement
is not intended for the benefit of creditors of the parties or other third parties and no rights
are granted to creditors of the parties or other third parties under this Agreement.

     IN WITNESS WHEREOF, this Agreement is executed as of the Effective Date.

	 	 	 	 	 	 	 
	 	 	US DATAWORKS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	/s/ Charles E. Ramey
 

	 	 
	 

	 	Name
	 	     Charles E. Ramey	 	 
	 

	 	Title:
	 	Chairman & Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ John J. Figone	 	 
	 	 	 	 	 
	 	 	John J. Figone	 	 

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SCHEDULE 1

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Inorganic Revenue	 	Blended Inorganic
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Revenue Growth
	 	 	 	 	 	 	 	 	 	 	[enter Asset Value]	 	Growth Bonus	 	Bonus Percentage
	 	 	Asset Value	 	$	6,000,000	 	 	$	115,000	 	 	 	1.92	%
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	From

	 	To

	 	Inorganic Growth

Bonus Percentage
	 	 	 	 	 	 	 	 
	 

	 	$	 -	 	 	$	5,000,000	 	 	 	2.00	%	 	 	 	 	 	 	 	 
	 

	 	$	5,000,001	 	 	$	10,000,000	 	 	 	1.50	%	 	 	 	 	 	 	 	 
	 

	 	$	10,000,001	 	 	$	25,000,000	 	 	 	1.00	%	 	 	 	 	 	 	 	 
	 

	 	$	25,000,001	 	 	and over
	 	 	0.75	%

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00101-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00101-of-00352.parquet"}]]