Document:

exhibit10_1.htm

Exhibit 10.1

 

AMENDED AND RESTATED

MANAGEMENT SERVICES AGREEMENT

THIS AMENDED AND RESTATED MANAGEMENT SERVICES AGREEMENT made as of the 13 day of March, 2014.

 

BETWEEN:

 

MEDICAN ENTERPRISES, INC. (“Medican Enterprises”), MEDICAN SYSTEMS INC. (“Medican Systems”) and MEDICAN (CANALEAF) SYSTEMS INC.

 

(“CanaLeaf Systems” and, together with Medican Enterprises and Medican Systems, “Medican CanaLeaf”)

 

AND:

 

INTERNATIONAL HERBS (BC) LTD.

(“IHL”)

AND:

 

LFG ADVISORY LTD. (“LFG Advisory”) and LFG ADVISORY & ACCOUNTING LTD.

(“LFG Accounting” and, together with LFG Advisory, “LFG”)

WHEREAS:

	
A.

	
Medican Enterprises is a publically traded company incorporated pursuant to the laws of the State of Nevada;

 

	
B.

	
Medican Systems is a company incorporated pursuant to the laws of the Territory of Yukon, Canada and is wholly owned by Medican Enterprises;

 

	
C.

	
CanaLeaf Systems is a company incorporated pursuant to the federal laws of Canada and is wholly owned by Medican Systems;

 

	
D.

	
Medican CanaLeaf is engaged in, inter alia, efforts obtain fifty  percent (50%) ownership of International Herbs Medical Marijuana Ltd (“IHMML”), a company that procures authorization to legally produce and distribute marijuana within Canada;

 

	
E.

	
IHL is a company incorporated pursuant to the laws of British Columbia which is engaged in the business of, inter alia, the production and distribution of agricultural products to consumers and retailers in British Columbia;

 

	
F.

	
LFG Advisory and LFG Accounting are each a company incorporated pursuant to the laws of British Columbia and LFG is engaged in the business of, inter alia, the provision of strategic business advice and the formation of strategic business alliances to persons and businesses conducting or intending to conduct business within Canada;

 

	
G.

	
On November 15, 2013, IHL, LFG and Medican (Delta) Systems Inc. (“Medican Delta”) entered into a Management Services Agreement pursuant to which IHL and LFG agreed to provide certain services to Medican Delta (the “Original MSA”);

 

	
H.

	
The parties to this Agreement (the “Parties”) wish to amend and restate the Original MSA on the terms and conditions contained herein.

 

  

 

  

 

	
I.

	
IHL and  LFG have agreed to cooperate and work together to promote and develop the business of Medican CanaLeaf and assist Medican CanaLeaf in partnering with IHMML, a company that is applying to obtain licensed producer status from Health Canada;

 

	
J.

	
Medican CanaLeaf, IHL and LFG wish to formalize the terms of their relationship as described in this Agreement on the terms and conditions herein.

 

FOR GOOD AND VALUABLE CONSIDERATION, including the mutual promises and covenants expressed herein, each of Medican CanaLeaf, IHL, and LFG agree as follows:

 

	
1.

	
PHASE I

 

	
1.1.

	
In this Agreement, “Phase I” means and refers to the period of time beginning on November 15, 2013 or the date on which this agreement is executed by each of Medican CanaLeaf, IHL, and LFG, whichever is latest (“Phase I Commencement Date”), and ending on February 24, 2014, or such other period as each of Medican CanaLeaf, IHL, and LFG may mutually agree to in writing.

 

	
1.2.

	
During Phase I:

	
  

	
(a)

	
LFG will provide Medican CanaLeaf with consultation services, consisting of corporate finance advisory support as set out in Appendix A, to assist Medican CanaLeaf in entering into formal relationship with IHMML, whether as a partner, joint venturer or such other capacity as may be agreed upon, for the purpose of the establishment and operation of a facility for the legal production and distribution of marijuana (the “Business”), and in particular, will use its best efforts to assist Medican CanaLeaf in procuring funding and investment for use by Medican CanaLeaf in the Business. The amount of capital to be raised is estimated at CAD$52,000,000.

	
  

	
(b)

	
Authorized representatives of IHL, LFG and Medican CanaLeaf will meet in good faith and with the objective of exchanging information to enable and formalize a relationship between Medican CanaLeaf and IHMML.

 

	
  

	
(c)

	
The objective of Phase I is to formulate a business strategy to set the basis for a formal agreement with IHMML, subject to confirmation that IHMML has completed an application with Health Canada. The Parties acknowledge that Phase I is deemed to have been completed and Phase I Fees (as defined in Section 4.1(a)) have been earned by each of IHL and LFG.

 

	
2.

	
PHASE II

 

	
2.1.

	
In this Agreement, “Phase II” means and refers to the period of time beginning on the day immediately following the end of Phase I (“Phase II Commencement Date”) and ending on March 21, 2014, or such other date as each of Medican CanaLeaf, IHL and LFG may mutually agree to in writing (the “Phase II Completion Date”).

 

	
2.2.

	
During Phase II:

 

	
  

	
(a)

	
LFG will provide Medican CanaLeaf with consultation services, consisting of corporate finance advisory support as further described in Appendix A, to assist

 

  

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Medican CanaLeaf in acquiring fifty percent (50%) ownership of IHMML, a company involved in development of facilities and business infrastructure, for the Business, and to the extent that Medican CanaLeaf has not procured funding or investment for use by Medican CanaLeaf in furtherance of the Business, LFG will continue to use its best efforts to assist in procuring such funding or investment during Phase II.

 

	
  

	
(b)

	
Upon Medican CanaLeaf entering into a Share Purchase Agreement with IHMML, it is understood that IHL and Medican CanaLeaf will cooperate and work jointly through the shared contribution of time, effort and resources to:

	
  

	
(i)

	
design, build and develop a facility in which to lawfully produce and from which to lawfully distribute marijuana (the “Facility”);

 

	
  

	
(ii)

	
hire employees as deemed necessary for the operation of the Facility and all business conducted at and in relation to the Facility;

 

	
  

	
(iii)

	
develop and implement systems and processes to optimize the production and profitability of all business conducted at and in relation to the Facility;

 

	
  

	
(iv)

	
ensure compliance with and adherence to all applicable laws, regulations, ordinances and directions; and

 

	
  

	
(v)

	
prepare the Facility for a final site visit and inspection by government and regulatory personnel as may be required to gain final approval of the Facility.

 

	
  

	
(c)

	
IHL and LFG may provide the services described in this Section 2.2 directly to IHMML, as Medican CanaLeaf will benefit from the same due to common ownership.

 

	
  

	
(d)

	
LFG will use its commercially reasonable efforts to facilitate the objectives of Phase II, which for greater certainty include (A) the execution and delivery of a Share Purchase Agreement (or other substantially similar investment agreement) pursuant to which Medican CanaLeaf shall acquire a fifty percent (50%) interest in IHMML and (B) a Shareholders Agreement among Medican CanaLeaf and the other shareholders of IHMML.

 

	
3.

	
PHASE III

 

	
3.1.

	
In this Agreement, “Phase III” means and refers to the period of time beginning on the day immediately following the Phase II Completion Date and continuing thereafter until a date to be mutually agreed to by the Parties in writing.

 

	
3.2.

	
During Phase III:

 

	
  

	
(a)

	
LFG will provide Medican CanaLeaf with consultation services, consisting of corporate finance advisory support as further described in Appendix A, to assist Medican CanaLeaf with the development of facilities and business infrastructure, for the Business, and to the extent that Medican CanaLeaf has not procured funding or investment for use by Medican CanaLeaf in furtherance of the Business, LFG will continue to use its best efforts assist in the procurement of such funding or investment during Phase III.

  

-3-

  

 

	
  

	
(b)

	
IHL and Medican CanaLeaf will cooperate and work jointly through the shared contribution of time, effort and resources to develop and implement a strategic plan regarding all aspects of the Business.

 

	
  

	
(c)

	
IHL and LFG may provide services described in Phase III, directly to IHMML, as Medican CanaLeaf will benefit from the same due to common ownership.

 

	
4.

	
FEES

 

	
4.1.

	
For and in consideration of the services, time, and resources expended by IHL and LFG, Medican CanaLeaf will pay each of IHL and LFG a fee, in accordance with the following:

 

	
  

	
(a)

	
On the Phase I Commencement Date, Medican CanaLeaf will pay to IHL a fee in the amount of CAD$225,00 and will pay to LFG a fee in the amount of CAD$50,000 (together, the “Phase I Fees”). The Parties acknowledge that, as of the date of this Agreement, Phase I is complete and all Phase I Fees have been paid in full;

 

	
  

	
(b)

	
On the Phase II Completion Date, Medican CanaLeaf will pay to IHL a fee in the amount of CAD$500,000 and will pay to LFG a fee in the amount of CAD$100,000; and

 

	
  

	
(c)

	
During each month of Phase III, Medican CanaLeaf will pay to LFG, on the first day of each month, a fee in the amount of CAD$17,500 per month. The Parties acknowledge that IHL shall receive compensation for Phase III services directly from IHMML.

 

(collectively, the “Fees”).

 

	
4.2.

	
In addition to the Fees, during Phase I and Phase II, Medican CanaLeaf will pay to LFG, an amount equal to two percent (2%) of all monies procured from investors (the “Commission”). Based on the expected raise amount of CAD$52,000,000 the Commission is estimated to be $1,040,000 applicable taxes.

 

	
4.3.

	
In addition to the Fees and the Commission, on March 21, 2014, Medican CanaLeaf shall cause shares in the capital of Medican Enterprises to be issued or transferred, as the case may be, to the persons, in the denominations and at the issue prices set out in Appendix B (the “Equity Compensation”).  The Equity Compensation shall be issued or transferred, as the case may be, for no additional consideration, as fully paid as non-assessable and free and clear of any encumbrances whatsoever.

 

 

	
5.

	
INDEPENDENT CONTRACTOR

 

	
5.1.

	
The Parties agree that LFG is retained by Medican CanaLeaf only for the purposes and to the extent set forth in this Agreement and LFG’s relationship to Medican CanaLeaf shall, during the term of this Agreement, be that of an independent contractor.

 

	
5.2.

	
The Parties agree that LFG is not an employee of Medican CanaLeaf or IHL and Medican CanaLeaf and IHL shall not be required to make contributions or other payments to Canada Revenue Agency, Employment Insurance, Canada Pension Plan, Worker’s Compensation Board or other similar levies in respect of this Agreement, the Fee, the Commission or other amounts to be paid to LFG pursuant to this Agreement.

 

	
5.3.

	
LFG will not, without the prior written consent of Medican CanaLeaf or IHL, enter into any contract or commitment in the name of or on behalf of Medican CanaLeaf or IHL or bind

 

  

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Medican CanaLeaf or IHL in any respect whatsoever.  The Parties acknowledge and agree that LFG’s relationship with Medican CanaLeaf or IHL shall not be deemed to constitute a joint venture or partnership.

 

	
6.

	
LIMITED LIABILITY

 

	
6.1.

	
Notwithstanding any other provision of this Agreement, the aggregate liability of LFG and IHL for any claims, losses, expenses, costs or damages arising as a result of any terms of this Agreement for any cause whatsoever, including, but not limited to, LFG and/or IHL’s negligent acts or omissions, shall not exceed CAD$100,000.

 

	
7.

	
INDEMNITY

 

	
7.1

	
Medican CanaLeaf, LFG and IHL shall mutually indemnify and save each of and their respective shareholders, directors, officers, employees, agents and representatives harmless of and from, and shall pay for, any damages suffered by, imposed upon or asserted against it or any of them as a result of, in respect of, connected with, or arising out of, under, or pursuant to:

 

	
  

	
(a)

	
any breach or inaccuracy of Medican CanaLeaf under this Agreement;

 

	
  

	
(b)

	
any failure of Medican CanaLeaf to perform or fulfil an of its obligations under this Agreement;

 

	
  

	
(c)

	
any failure of Medican CanaLeaf to cause a transfer of good and valid title to the Equity Compensation to those persons set out in Appendix B, free and clear of all encumbrances whatsoever; and

 

	
  

	
(d)

	
any and all claims made by Medican CanaLeaf investors, shareholders or other third parties.

 

	
8.

	
FURTHER AGREEMENTS

 

	
8.1.

	
It is understood and agreed that the Parties will execute and enter into such further agreements as may be required to ensure the intent and purposes of this Agreement are fulfilled.

 

	
9.

	
EFFECT OF AMENDMENT AND RESTATEMENT

 

	
9.1.

	
This Agreement is intended to represent a continuation of the Original MSA, as amended and restated, and supersedes and replaces the Original MSA in its entirety.

 

	
10.

	
CONFIDENTIALITY

 

	
10.1.

	
The Parties recognize and acknowledge that this Agreement creates a confidential relationship between each of them and that information shared in furtherance of this Agreement is confidential and will not be disclosed to any person or for any reason without the mutual consent of all of the Parties except as required by law or in the performance of any Party’s obligations under this Agreement.

 

	
11.

	
MISCELLANEOUS

 

	
11.1.

	
No public announcement or statement concerning the agreements contemplated herein between the parties shall be made by any Party, including the shareholders of each of

 

  

-5-

  

	
  

	
Medican CanaLeaf, IHL and LFG, without the prior written consent of each of the Parties.  The Parties acknowledge that, in accordance with applicable laws, the Parties or the shareholders of the Parties may be required to disclose the agreements contemplated herein.  If such disclosure is required by applicable laws, the Party required to provide such disclosure shall use commercially reasonable efforts to enable the other Parties to review and comment on such disclosure prior to the release thereof, and if such prior review and consultation is not possible, to give oral and written notice of such disclosure immediately following the making of such disclosure.  In addition, Medican CanaLeaf may be required, in accordance with applicable securities laws, to file a copy of this Agreement on SEDAR, and each Party agrees that in such case it shall make such redactions to this Agreement required by the other Parties as are permitted under Section 12.2(3) of National Instrument 51-102 (“NI 51-102”) (subject to compliance with the remaining provisions of Section 12.2 of NI 51-102).

 

	
11.2.

	
Medican CanaLeaf acknowledges and agree that the services provided by IHL and LFG are provided on a non-exclusive basis and that IHL and LFG are exploring several other medical marijuana related projects.

 

	
11.3.

	
Services of IHL and LFG are provided on a best efforts basis, with no guarantee of success.

 

	
12.

	
DISPUTE RESOLUTION

 

	
12.1.

	
If a dispute arises between the Parties relating to this Agreement, or arising out of this Agreement, the Parties agree to negotiate in good faith for a period of thirty (30) days. If the Parties are not successful in resolving the dispute through negotiation, then the Parties agree that the dispute shall be settled by arbitration in accordance with the Arbitration Act (British Columbia). The decision of the arbitrator shall be final and binding and shall not be subject to appeal on a question of fact, law or mixed fact and law. The costs of mediation or arbitration shall be shared equally between the Parties. Costs shall not include costs incurred by a Party for representation by counsel. Unless the Parties otherwise agree, the rules of the British Columbia International Commercial Arbitration Centre shall apply.

 

	
13.

	
OTHER

 

	
13.1.

	
The Parties acknowledge that CanaLeaf Systems is a subsidiary of a publicly reporting company and that, because of that relationship, certain material contracts must be disclosed to the Securities and Exchange Commission (the “SEC”) through publication on its EDGAR reporting system. The Parties hereby consent to the disclosure of this Agreement in accordance with the securities laws of the United States, and agrees to consent to reasonable written requests to the disclosure of the Agreement to the SEC.

 

 

	
14.

	
GOVERNING LAW

 

	
14.1.

	
This Agreement shall be construed and enforced in accordance with the laws of the Province of British Columbia.

 

	
  

	
[Remainder of page left intentionally blank]

 

  

-6-

  

 

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

 

	
MEDICAN ENTERPRISES INC.

 

Per:           /s/                                                                                               

Authorized Signatory

	  	  

 

	
MEDICAN SYSTEMS INC.

 

Per:           /s/                                                                                                

Authorized Signatory

	  	  

 

	
MEDICAN (CANALEAF) SYSTEMS INC.

 

Per:           /s/                                                                                                 

Authorized Signatory

	  	  

 

	
INTERNATIONAL HERBS (BC) LTD.

 

Per:           /s/                                                                                               

Authorized Signatory

 

	  	  
	  	  
	  	  

 

	
LFG ADVISORY LTD.

 

Per:           /s/                                                                                            

Authorized Signatory

	  	  
	  	  
	  	  

	
LFG ADVISORY & ACCOUNTING LTD.

 

Per:           /s/                                                                                                

Authorized Signatory

	  	  
	  	  
	  	  
	  	  	  

  

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APPENDIX A

CORPORATE FINANCE SUPPORT

ALL SERVICES PROVIDED ON A BEST EFFORTS BASIS. Corporate Finance Support will be provided by LFG, a Vancouver based full service corporate finance advisory firm. The two main partners, Sam Perera, MBA, CAIA and David Fong, CA, will provide advisory services to assist with fundraising and structuring of Medican CanaLeaf.

Support for Phases I to III will be provided as follows:

Phases I & II (Structuring and Assisting Medican CanaLeaf in raising $52M and negotiating the purchase of 50% of International Herbs Medical Marijuana Ltd.)

	
  

	
1.

	
Model Definition and Development

	
  

	
a.

	
Develop understanding of the Medican CanaLeaf’s industry and business model.

	
  

	
b.

	
Assess the business realities of Medican CanaLeaf and build a 5-year financial forecast based on the same.

	
  

	
c.

	
Determine the amount of capital that is required for the Medican CanaLeaf’s long-term business objectives

	
  

	
2.

	
Information Gathering, Market Research, Create a Pitch Deck

	
  

	
a.

	
Conduct research of identified target markets of topics including (but not limited to) the following:

	
  

	
i.

	
Current market size

	
  

	
ii.

	
Projected market potential

	
  

	
iii.

	
Ease of access; key barriers to entry, risks and additional considerations

	
  

	
iv.

	
Key players within identified market

Research will be based on secondary sources including (but not limited to) industry reports (e.g., banking institutions, advisory firms, special interest groups etc.), news agencies, analytic tools / sites, various online sources etc.)

	
  

	
3.

	
Assistance in the Creation of a Pitch Deck

	
  

	
4.

	
Assisting in Market Sounding and Completing the Capital Raise

	
  

	
a.

	
Liaise with Medican CanaLeaf to determine the optimal investment partners / capital providers and pitch the company as required

	
  

	
b.

	
Follow up with investment partners and capital providers/investors

	
  

	
c.

	
Review term sheets for investment/capital. Model the various options and discuss the pros and cons with each option. This will allow the Medican CanaLeaf to determine the best source of capital.

	
  

	
5.

	
Negotiating the Share Purchase Agreement and Shareholder Agreement between Medican (CanaLeaf) Systems Inc and International Herbs Medical Marijuana Ltd.

	
  

	
6.

	
Acting as a conduit in providing prospective investors in conducting their due diligence.

Note: It is mutually understood that Medican CanaLeaf is responsible for raising CAD$52,000,000, or other amount as mutually agreed upon. LFG’s services are provided to supplement the fundraising expertise of Medican CanaLeaf.

  

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Phase III(Long Term Continued Support)

	
  

	
1.

	
Conduct monthly budget to actual review

	
  

	
2.

	
Assistance in preparing monthly update packages for the directors of Medican CanaLeaf

	
  

	
3.

	
Managing the optimal debt/equity structure of Medican CanaLeaf

	
  

	
4.

	
Assisting in the perpetration of Management Discussion and Analysis commentary for public reporting purposes.

	
  

	
5.

	
Setting quarterly and annual revenue and cost targets

	
  

	
6.

	
Ensuring effective internal financial controls are in place

	
  

	
7.

	
Act as a legal liaison for corporate matters

	
  

	
8.

	
Assisting the CFO of Medican Enterprises Inc with reporting pertaining to Medican (CanaLeaf) Systems Inc and other tasks that may reasonably be required by the CFO.

 

  

-9-crwgex101.htm

Exhibit 10.1

 

 

WEB SITE PURCHASE AGREEMENT

 

This Web Site Purchase Agreement (“Agreement”) is made as of the 16th day of March, 2014, between VerticalScope Inc. (“Buyer”) with a place of business at 111 Peter Street, Suite 700, Toronto, Ontario, Canada, M5V 2H1, and CrowdGather, Inc. (“Seller”) with a place of business at 20300 Ventura Blvd, Suite 330, Woodland Hills, CA  91364 (collectively referred to herein as the “Parties”, and singularly as a “Party”).

RECITALS

 

	
A.  

	
Seller owns and operates the web sites known as Motorcycleforum.com, NgEmu.com, PocketBikePlanet.com, PersonalityCafe.com, AquaticPlantCentral.com, and ClubXB.com and is willing to sell the web sites to Buyer on the terms and conditions set forth in this Agreement; and

 

	
B.  

	
Buyer is willing to purchase the web sites on the terms and conditions set forth in this Agreement.

 

For good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties agree as follows:

 

1. PURCHASE OF WEB SITES.

 

1.1 Sale and Purchase.  Seller hereby sells, transfers and assigns to Buyer, who hereby purchases, all of the right, title and interest in the web sites known as Motorcycleforum.com, NgEmu.com, PocketBikePlanet.com, PersonalityCafe.com, AquaticPlantCentral.com, and ClubXB.com  (the “Web Sites”), currently located at http://www.Motorcycleforum.com, http://www.NgEmu.com, http://www.PocketBikePlanet.com, http://www.PersonalityCafe.com, http://www.AquaticPlantCentral.com, and http://www.ClubXB.com, respectively  (the “Assets”). The Assets include all of the following property and assets of Seller:

(i) the following domain names and any and all sub-domain names and extensions:

 

Motorcycleforum.com;

NgEmu.com;

Pcsx.net;

Emuforums.com;

Psxemu.com

PocketBikePlanet.com;

PersonalityCafe.com;

Personalitycafe.net;

Personalitycafe.org;

Personalitycafe.info;

16typequiz.com;

Enneagramquiz.com;

Cognitivequiz.com;

Myersly.com;

AquaticPlantCentral.com; and

ClubXB.com.

 

 

collectively known as  the “Domain Names”;

 

  

1

  

(ii) all Web Site content and databases currently associated with the Domain Name or Domain Names(the “Web Site Content”);

 

	
(iii)  

	
all intellectual property in the Domain Names, the Web Site Content, all business and trade names,  trademarks, logos and designs, brand names, and slogans related thereto, and all copyright in the Web Site Content (the “Intellectual Property”);

 

(iv) the Assigned Contracts and any and all receivables thereunder, as set out in Schedule “A” (the“Assigned Contracts”);

 

 (v) copies of Seller’s books, records and documentation relating to the Web Site business as may berequested by Buyer (including any advertising, billing, PayPal or banking records related to theWeb Sites);

 

        (vi) ownership of all social media or other accounts that are associated with the Web Sites, as set out in Schedule “B”; and

 

	
(vii)  

	
all other assets necessary for Buyer to continue to operate the Web Sites as they were each operated prior to the date hereof.

 

1.2 Assumption of Liabilities. Except with respect to obligations of Seller under the Assigned Contracts from and after the date hereof, Buyer is not assuming and shall not be responsible for any liabilities of Seller, whether present or future, known or unknown, direct or indirect, absolute or contingent, and whether or not relating to the Assets.

 

1.3 Amount of Purchase Price.  The purchase price payable by Buyer to Seller Five Hundred Seventy Thousand US Dollars (USD $570,000) (the “Purchase Price”), after a successful transfer of the Domain Names and Web Sites to Buyer pursuant to the transition and migration process set forth in Article 6, consists of Three Hundred Eighty One Thousand Nine Hundred US Dollars (USD $381,900) for purchase of the Domain Name and goodwill, and One Hundred Eighty Eight Thousand One Hundred US Dollars (USD $188,100) for purchase of the Web Site Content. Notwithstanding any other provisions of this Agreement, Buyer shall purchase the Assets free from any Tax (including any transfer tax), and Buyer shall not in any manner assume or be liable or responsible for any obligation for any Tax. “Tax” is defined as all taxes, charges, fees, levies, imposts and other assessments, including all income, sales, use, goods and services, value added and capital taxes.

 

1.4 Escrow; Process of Ownership Transfer.  A third party escrow service, Escrow.com, will be used to facilitate the process for payment of the Assets within one (1) business day of a successful transfer of the Domain Names and Web Sites to Buyer and Buyer will inform Escrow.com to release funds in the amount of the Purchase Price to Seller. Buyer and Seller agree to each pay an equal share of the applicable Escrow.com transaction fee.

 

2. REPRESENTATIONS AND WARRANTIES of SELLER. As a material inducement for Buyer to enter into this Agreement Seller represents and warrants to Buyer as follows:

 

2.1 Authority and Title.  Seller is a publicly traded corporation duly incorporated under the laws of Nevada and is duly organized, validly subsisting and in good standing under such laws. Seller has all necessary corporate power, authority and capacity to enter into this Agreement and all other agreements and instruments to be executed by it as contemplated by this Agreement and to carry out its obligations under this Agreement and such other agreements and instruments. The execution and delivery of this Agreement and such other agreements and instruments and the completion of the transactions contemplated by this Agreement and such other agreements and instruments have been duly authorized by all necessary actions on the part of Seller. Seller has the full power and authority and is qualified to own and dispose of the Assets to Buyer.  No act or proceeding has been taken by or against Seller in connection with the liquidation, winding up, bankruptcy or reorganization of Seller. Seller is the sole owner of and has good and marketable world-wide title to all the Assets, free and clear of any and all liens.  Seller has full and complete right to use the Assets and to transfer the Assets as contemplated hereunder. The execution and delivery of this Agreement by Seller and the consummation of the transactions contemplated hereunder will not conflict with any contracts or agreements to which Seller is a party or by which it is bound.

 

2.2 Assigned Contracts.  Schedule “A” lists all the revenue-generating contracts of Seller with respect to the Assets, whether such Assigned Contracts are in writing or otherwise (“Assigned Contracts”). Seller has delivered to Buyer true and complete copies of all Assigned Contracts as of the date hereof. Each Assigned Contract is in good standing and Seller has not received notice of any dispute or default under, and Seller is not disputing or in default under, any Assigned Contract and there has not occurred any event which, with a lapse of time or giving of notice, or both, would constitute such a default.  Each Assigned Contract is in full force and effect, unamended by written or oral agreement, and Seller is entitled to the full benefit and advantage of each Assigned Contract in accordance with the terms of each Assigned Contract.  The Assigned Contracts are assignable to Buyer without payment of penalties or restrictions (including notice or consent requirements) or other adverse effects of any kind. Seller is not aware of any intention on the part of any counterparty to any Assigned Contract that it wishes to terminate or materially amend the terms of any Assigned Contract.

 

2.3 Web Site Revenue/Expenses. The total revenue generated by the Web Sites during the twelve (12) month period ended February 28, 2014 was approximately US$130,593 and Seller has provided Buyer with true and complete copies of all supporting documentation. The total expenses incurred by Seller with respect to the Web Sites during the twelve (12) month period ended February 28, 2014 was approximately US$4,080 and Seller has provided Buyer with true and complete copies of all supporting documentation.

 

  

2

  

2.4 Web Site Visitor Activity.  A true and complete representation of audience traffic activity to the Web Sites for the thirty (30) day period ended February 28, 2014 is set forth below and Seller has provided Buyer with true and complete copies of all supporting documentation:

 

	
Web Site(s)

	
Registered Unique Forum Members (Total since Inception

	
Posts

	
Threads

	
Unique Visitors

	
Visits

	
Total Page Views

	
Aquaticplantcentral.com

	
42,253

	
1,731

	
212

	
63,783

	
174,307

	
371,585

	
Clubxb.com

	
27,643

	
4,446

	
216

	
17,613

	
79,587

	
323,150

	
Motorcycleforum.com

	
223

	
78,866

	
273

	
46,558

	
153,303

	
284,400

	
Ngemu.com

	
321,109

	
2,047

	
143

	
397,409

	
501,023

	
894,741

	
Personalitycafe.com

	
70,077

	
107,954

	
3,215

	
337,083

	
664,019

	
3,968,490

	
Pocketbikeplanet

	
62,235

	
1,394

	
77

	
10,705

	
34,786

	
105,092

	
TOTALS

	
602,183

	
123,100

	
4,136

	
873,151

	
1,607,025

	
5,947,458

In providing the activity noted above, Seller represents and warrants that the Web Sites were: (a) tagged using Google Analytics, (b) one (1) Google Analytics tag has been placed per page on each Web Site; and (c) to the best of Seller's knowledge, each Web Site's tagging is configured and installed correctly, with no customizations of any kind.

2.5 Moderators.  Seller has provided Buyer a true and complete list as of the date hereof of all individuals who have been provided with moderator status with respect to the forums located on the Web Sites as well as such individual’s corresponding username, email address (if known by Seller), role and status.

 

2.6 Domain Names. There are no Internet domain names associated with the Web Sites other than the Domain Names.  The Domain Names are all the Internet domain names registered by Seller relating to the Web Site business, linking to the Web Sites. Neither Seller, nor any director, officer, employee or agent of Seller, has registered any Internet domain names that are substantially similar or confusingly similar with the Domain Names. To the best of Seller’s knowledge, the use of the Domain Names does not infringe upon or otherwise violate any rights of any other person and there is no current or pending litigation relating to the Domain Names. Seller has not been provided with and is not aware of any threatened claim or litigation relating to the Domain Names.

 

2.7 Intellectual Property. Schedule “B” lists: (i) all registered and unregistered trade names, trademarks, brand names, slogans and business names associated with the Web Sites, and similar marks and names; and (ii) all registrations and applications for registration of the Intellectual Property.  Seller, all current or former employees, contractors or agents of Seller and other persons involved in the development of the Intellectual Property have assigned all rights they may have in the Intellectual Property to Seller, and have waived any moral rights they may have for the benefit of Seller and anyone claiming through Seller. To the best of Seller’s knowledge, the use of the Intellectual Property does not infringe upon or otherwise violate any rights of any other person. To the best of Seller’s knowledge, no person is infringing upon or otherwise violating any rights of Seller in and to the Intellectual Property.There is no current, pending or threatened litigation relating to the Intellectual Property.

 

2.8 Compliance with Laws. Seller has complied with all applicable laws and regulations in the operation, management and presentation of content on the Web Sites, including applicable privacy laws.

 

2.9 Litigation. Seller is not aware of any threatened or pending (i) action, suit, claim, litigation, arbitration, alternative dispute resolution process (collectively, “Litigation”) relating to the Web Site business, Seller or the Assets, or (ii) investigation or proceeding by or before any governmental authority, and Seller does not know of any valid basis for any such Litigation, investigation or proceeding.  Seller is not subject to any judgment, order or decree entered in any lawsuit or proceeding nor has Seller settled any claim prior to being prosecuted in respect of it.  Seller is not the plaintiff or complainant in any Litigation arising out of or relating to the Web Site business or the Assets.

 

2.10 Solvency. Seller is able to, and after giving effect to the receipt by the Seller of the proceeds from the sale of the Assets, will continue to be able to, pay and satisfy its liabilities as they become due. After the date hereof, the realizable value of Seller’s assets will not be less than the aggregate of its liabilities. The value of the consideration to be received by Seller for the purchase of the Assets is reasonably equivalent to the value of the Assets.  The consummation of the transactions contemplated in this Agreement by Seller is not intended to defeat, hinder, delay or defraud Seller’s creditors or other persons of their just and lawful claims against Seller.

 

  

3

  

3.           REPRESENTATIONS AND WARRANTIES OF BUYER.  As a material inducement for Seller to enter into this Agreement Buyer represents and warrants to Seller that Buyer is a corporation duly amalgamated under the laws of the Province of Ontario and is duly organized, validly subsisting and in good standing under such laws. Buyer has all necessary corporate power, authority and capacity to enter into this Agreement and all other agreements and instruments to be executed by it as contemplated by this Agreement and to carry out its obligations under this Agreement and such other agreements and instruments.

 

4.           INDEMNIFICATION.

 

4.1           Survival of Representations, Warranties and Covenants. The representations and warranties of the Parties shall survive for a period of one year from the date of execution of this Agreement, except for Section 2.1 which shall survive indefinitely.

 

4.2           Indemnification.

 

Seller hereto agrees to indemnify and hold Buyer, its directors, officers, employees, agents and representatives, harmless in respect of any direct or third party claim, demand, action, cause of action, damage, loss, cost, liability or expense which may be made or brought against Buyer or which Buyer may suffer or incur directly or indirectly as a result of, in respect of, or arising out of, (i) any breach of any representation, warranty or covenant of Seller contained in this Agreement or in any certificate, instrument or agreement delivered in connection with this Agreement, (ii) Seller’s operation or ownership of the Web Sites or the Assets prior to the date hereof, or (iii) any liability or obligation of Seller relating to the Assets prior to the date hereof (including if arising from any facts or circumstances that existed at any time on or prior to the date hereof). The aggregate liability of Seller under this Section 4.2 shall not exceed the Purchase Price, except with respect to fraud.

 

5. POST-EXECUTION MATTERS.

 

5.1 Additional Covenants of Seller.  Upon execution of this Agreement and thereafter, Seller shall not directly or indirectly use or adopt any domain name, corporate name, trade mark, trade name, trading style, account name, slogan, design or logo (“Marks”) that includes, is similar to, is confusingly similar to, is substantially similar to or may be mistaken for the whole or any part of any Domain Name or any trade mark, trade name, trading style, slogan, design or logo included in the Intellectual Property. Without limiting the generality of the foregoing, Seller shall cease all use of such Marks immediately upon execution of this Agreement and shall take any required steps to cancel any such Marks, unless those Marks have been conveyed or are to be conveyed pursuant to this Agreement.

 

5.2           Non-Compete Covenant of Seller and its Affiliates.

 

Seller will not for any reason, directly, or indirectly, either as an individual or as a partner or joint venturer or as a consultant, employee, principal, organization, syndicate, company or corporation, or in any manner, own, promote, assist with, carry on, be engaged in, concerned with, interested in, advise, lend money to, guarantee the debts or obligations of, permit Seller’s name or any part of it to be used or employed by any person, business, firm, association, syndicate, company, Affiliate (as defined below), organization, or corporation concerned with or engaged or interested in a business which is the same as, similar to, or competitive with, related to the same subject matter, or offers goods or service similar to, the Web Sites Business (as defined below) nor will Seller solicit or accept business with respect to products or services competitive with those of the Web Sites from any of the Web Sites' direct advertisers (which shall not include ad networks), customers or users, wherever situated. The foregoing covenant shall survive for a period of twenty four (24) months commencing upon the date of this Agreement. The Web Sites Business shall mean the following: Online discussion forums and communities about Motorcycle, Toyota Scion, gaming software, emulation, aquatic plant, and Myers-Briggs. Notwithstanding any other provision of this Agreement, the Seller shall continue to provide forum and website hosting services through Yuku.com, Freeforums.org, Lefora.com and Forumer.com for websites owned by third parties which are the same as, similar to, or competitive with, related to the same subject matter, or offers goods or service similar to, the Web Sites’ Business.

 

5.3           Non-Solicitation Covenant of Seller. As a material inducement for Buyer entering into this Agreement, Seller covenants and agrees that, for the period commencing upon the date of this Agreement, and ending twenty four (24) months thereafter, Seller, or any Affiliate of Seller, shall not, directly or indirectly, hire or engage or attempt to hire or engage any employees, contractors, suppliers, agents, distributors, moderators, administrators, advertisers, customers, or dealers of Buyer or of the Web Site, or any person who is or was within the then most recent 6 month period, such a person, anywhere worldwide, whether for or on behalf of Seller or for any entity in which Seller has or shall have a direct or indirect interest, including but not limited to a subsidiary or Affiliate (as defined below) of Seller, as a proprietor, partner, co-venturer, financier, investor or stockholder, director, officer, employer, employee, servant, agent, or representative; provided however, that the Seller shall continue to employ the services of Kyle Christensen for services unrelated to the Web Sites. Furthermore, as a material inducement for Buyer entering into this Agreement, Seller covenants and agrees that neither it nor any of its Affiliates, shall solicit, contact or allow to be solicited or contacted in contravention of the terms of this Section 5.3, any of the registered users of the Web Sites being purchased, as Seller acknowledges that the user database of the registered users of Web Sites is the valuable and confidential property (“Confidential Information”) of Buyer upon execution of this Agreement and subject to the closing of the transactions contemplated hereby. Seller hereby further agrees to destroy any copies of the Confidential Information which are under its care or control, upon the closing of the transaction contemplated hereby. Seller may continue to participate on the Web Sites in a positive manner in the capacity of a user; provided, that such participation is not contrary to Section 5.3 or Section 7.1 of this Agreement.

 

The term “Affiliates” shall mean any other person or entity that serves as an officer or director, or principal shareholder of Seller, or directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with Seller. Affiliates also include, with respect to Seller, any other person in which Seller or one of its Affiliates serves as a general partner or as a trustee (or similar capacity). For purposes of this definition, "control" (including "controlled by" and "under common control with") means, with respect to the relationship between or among two or more persons, the possession, directly or indirectly, or as trustee, personal representative, or executor, of the power to direct or cause the direction of the affairs or management of a person, whether through the ownership of voting securities, as trustee, personal representative, or executor, by contract or otherwise, including, the ownership, directly or indirectly, of securities having the power to elect a majority of the board of directors or similar body governing the affairs of such person.

Seller acknowledges and agrees that any breach of Section 5.1, 5.2, 5.3, or 7.1 shall entitle Buyer to an injunction or any appropriate decree of specific performance for any actual or threatened violations or breaches by Seller, its employees or agents, or its Affiliates, without the necessity of Buyer showing actual loss or damages, and in such circumstances Buyer shall be entitled to all of its reasonable legal fees and costs.

  

4

  

5.4           Payment and Revenue Accrues to Benefit of Buyer. Buyer and Seller agree that certain payments received by Seller prior to the date of this Agreement are to be remitted to Buyer. In particular, any such payments which Seller receives or is entitled to receive, on account of, or in connection with, any payment or revenue of any kind (whether advertising revenue, subscription fees, donations, or otherwise) from any person, arising from or in connection with the Web Sites and/or the provision of services offered by or from the Web Sites;

 

a)  after the date of this Agreement; or

 

b) prior to the date of this Agreement in respect of a period of time extending past the date of this Agreement or in respect of any goods or services to be provided after the date of this Agreement;

 

(“Buyer Accrued Payments”).

 

Buyer Accrued Payments shall be fully accounted for and remitted forthwith along with the accounting (the “Accounting”, as further defined below in Section 5.4.1), to Buyer in accordance with the Notice provisions specified in Section 7.2 and in accordance with payment methods to be specified by Buyer upon receipt of the aforesaid Notice (collectively referred to herein as “Buyer Accrued Payments and Accounting”. Under no circumstances shall any Buyer Accrued Payments and Accounting be sent to Buyer later than 30 days after any Buyer Accrued Payment are received by Seller or later than 30 days after Seller was entitled to receive any such Buyer Accrued Payments. All Buyer Accrued Payments required to be made hereunder and not paid as required within the aforesaid 30-day period, shall accrue interest at the rate of 2% per month, compounded, until paid, without prejudice to any other rights to recover the Buyer Accrued Payments that Buyer may have.  For example, if Seller receives $1200 in pre-paid advertising revenue to cover the current year and executes this Agreement on the last day of June, Seller will be required to pay $600 in Buyer Accrued Payments to Buyer within 30 days of the execution date.

 

5.4.1           The “Accounting” is defined to include, at a minimum, the following:

 

           a) the amount of the Buyer Accrued Payments;

 

b) the date on which the Buyer Accrued Payments were received, or ought to have been received, or are to be received;

 

c) the period that the Buyer Accrued Payments are in respect of;

 

d) the goods, services, or other basis for which the Buyer Accrued Payments are on account of; and

 

e) the person who has remitted or is to remit the Buyer Accrued Payments to Seller;

 

 

5.4.2           Where the Buyer Accrued Payments are in respect of a time period or term that commences prior to the date of this Agreement and continues or terminates subsequent to the date of this Agreement, the Buyer Accrued Payments shall include an amount prorated for any portion of the Buyer Accrued Payments which extends past the date of this Agreement, and the Accounting (and if applicable), Schedule “A”, shall fully itemize and account for same with particularity.

 

5.5           Non-Transferable and Non-Assignable Assets. Nothing in this Agreement will be deemed to constitute an assignment, or an attempt to assign, any agreement to which Seller is a party, if such an attempted assignment, without the consent of the other party thereto, would constitute a breach or affect in any way the rights of Seller thereunder, and such consent has not been given; provided, however, Seller agrees to cooperate with Buyer in any reasonable arrangement, including the enforcement (at the cost and for the benefit of Buyer) of any and all rights of Seller against such other party(ies) thereto, arising out of any breach or cancellation thereof by such other party(ies) or otherwise.

 

5.6           Further Assurances.   Each Party shall promptly do, execute, deliver or cause to be done, executed and delivered all further acts, documents and things in connection with this Agreement that any other Party may reasonably require for the purposes of giving effect to this Agreement.

 

  

5

  

6. TRANSITION AND MIGRATION.

 

6.1 During the fourteen (14) calendar day period from the date of this Agreement (the “Transition and Migration Period”, as such period may be mutually extended by the Parties; and provided, that Seller complies with Buyer’s directions and requests for information in accordance with Section 6.2 within one (1) business day), Seller will continue to operate and host the Web Sites in the ordinary course (business as usual) and in the same manner in which it is currently operated to permit sufficient time for Buyer to migrate the Web Sites in its entirety to Buyer’s servers and launch the Web Sites to the public. Buyer will reimburse Seller for all reasonable and documented Web Site hosting expenses incurred by Seller during the Transition and Migration Period.

 

6.2 During the Transition and Migration Period, Seller shall comply with Buyer’s directions to cause the orderly conversion, transition and migration of the Web Sites from Seller’s (or its hosting provider’s) servers and systems to the servers, systems and technology used by Buyer and Buyer shall be able confirm such orderly conversion, transition and migration, as follows:

 

(i) Seller shall transfer ownership of the Domain Names to Buyer and the Domain Names shall appear in a domain name registrar’s account exclusively controlled by Buyer as shown in the applicable Whois database; and

 

(ii) Seller shall provide Buyer with full root access to the Web Sites for the purpose of initiating the transfer of the Web Sites to Buyer; and

 

(iii) Seller shall provide all documentation to enable Buyer (a) to operate the Web sites without assistance, including providing all network and operating system configuration specifications and any other documentation relating to software licenses, source code, systems and technology of the Web Sites and (b) confirm the Web Site revenues and expenses set forth in Section 2.3 (and any related schedules) and to assist with the transfer of any Assigned Contracts; and

 

(iv) Buyer shall have confirmed to Seller that the Web Sites (a) has been migrated from Seller’s (or its hosting provider’s) servers and systems to the servers, systems and technology used by Buyer to the satisfaction of  Buyer and (b) is receiving traffic on the Buyer’s servers; and

 

(v) Buyer shall have confirmed that it has been delivered all Assets specified in this Agreement; and

 

(vi) Buyer shall have confirmed that for 48 hours following the site transfer to Buyer's servers, that the Web Site visitor activity is substantially similar to the activity set forth in Section 2.4; and

 

(vii) Seller shall keep the sale of the Assets confidential in accordance with Section 7.1 of this Agreement. As an exception to the foregoing, at the request of Buyer, Seller shall assist Buyer in preparing a change of ownership announcement to be posted at a mutually agreed upon date and time privately to the moderators and administrators of the site, and then publicly to the general membership of the Web Sites; and

 

6.3 Seller will maintain all existing links to the Web Sites being purchased from all web sites and domain names owned by Seller except for the Seller’s corporate website located at www.crowdgather.com, in their current locations, with an equal amount of prominence in any re-design, for a minimum period of twenty four (24) months.

 

6.4 During the Transition and Migration Period, Seller shall not take any action that would cause any of the representations and warranties in Article 2 to become untrue.

 

7. GENERAL.

 

7.1 Confidentiality; Public Announcements; Non-Disparagement.  Seller shall keep confidential all information relating to the Agreement (including the existence and status thereof), the Purchase Price, or the transactions and terms contemplated by this Agreement and shall not initiate, encourage or engage in any verbal or written private or public communications regarding any of the foregoing; provided, however, that the restrictions of this Section shall not apply (a) as may otherwise be required by law, including applicable securities laws, (b) as may be necessary or appropriate in connection with the enforcement of this Agreement, or (c) to the extent such information was in the public domain when received or thereafter enters the public domain other than because of disclosures by Seller in violation of this Agreement; and provided, further that, to the extent permitted by law, Seller shall provide notice to Buyer of any information disclosed pursuant to the foregoing proviso. Buyer and Seller acknowledge that this Agreement constitutes a material agreement subject to filing by Seller under the US federal securities laws. Furthermore, without limiting the generality of the foregoing, Seller shall not, directly or indirectly, initiate, encourage or engage in any public or private in person conversations, digital or hand written posts, private messages, photos, images, emails, tweets, text messages or any other form of communication however transmitted that in anyway can be reasonably viewed as diminishing the commercial value of the Web Site or the integrity, good will or public reputation of Buyer whatsoever, including making derogatory, disparaging or critical negative statements against Buyer or the Assets.

 

  

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7.2 Notices. All notices and other communications hereunder shall be in writing and shall be deemed given in writing if delivered personally or by certified or registered mail or by reputable express courier to the parties at the following addresses (or at such other address for a party as shall be specified by like notice):

 

If to Seller:

 

CrowdGather, Inc.

20300 Ventura Blvd, Suite 330

Woodland Hills, CA  91364

Attention: Sanjay Sabnani

Telephone: (818) 435-2472

If to Buyer:

 

VerticalScope Inc.

111 Peter Street, Suite 700

Toronto, ON M5V 2H1

Attention: Rob Laidlaw

Fax: 416-981-3046

With a copy to:

VerticalScope Inc.

111 Peter Street, Suite 700

Toronto, ON M5V 2H1

Attention: Diane Yu, Chief Legal Officer

All notices given by certified mail will be deemed as given on the delivery date shown on the return mail receipt, and all notices given in any other manner will be deemed as given when received.

 

7.3 Time of Essence.  Time shall be of the essence of this Agreement in all respects.

 

7.4 Entire Agreement.  This Agreement (including the Schedules hereto and the deliveries made hereunder) constitutes the entire agreement among and between the Parties pertaining to the subject matter of this Agreement and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written.

 

7.5 Waiver. A waiver of any default, breach or non-compliance under this Agreement is not effective unless in writing and signed by the party to be bound by the waiver.  No waiver shall be inferred from or implied by any failure to act or delay in acting by a Party in respect of any default, breach or non-observance or by anything done or omitted to be done by the other Party. The waiver by a Party of any default, breach or non-compliance under this Agreement shall not operate as a waiver of that Party’s rights under this Agreement in respect of any continuing or subsequent default, breach or non-observance (whether of the same or any other nature).

 

  

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7.6 Severability.  Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of such prohibition or unenforceability and shall be severed from the balance of this Agreement, all without affecting the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.

 

7.7 Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario and the parties hereto irrevocably attorn to the jurisdiction of the courts of the Province of Ontario, Canada.

 

7.8 Successors and Assigns.  This Agreement shall enure to the benefit of, and be binding on, the Parties and their respective successors and permitted assigns.  No Party shall not assign or transfer, whether absolutely, by way of security or otherwise, all or any part of its respective rights or obligations under this Agreement without the prior written consent of the other Party; provided, however, that (i) Buyer may assign this Agreement to an affiliate without the prior written consent of Seller; and (ii) Seller may assign this Agreement after the transition and migration period in connection with a merger or acquisition; provided, however, that any such assignee shall directly have the financial capacity to perform Seller’s indemnification obligations under this Agreement on the same terms, and is contractually bound to perform such obligations, as if it were a signatory hereto.

 

7.9 Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which taken together shall be deemed to constitute one and the same instrument.  Facsimiles and electronic copies in portable document format (“PDF”) containing original signatures shall be deemed for all purposes to be originally signed copies of the documents that are the subject of such facsimiles or PDF versions.

 

7.10 Expenses.  Each party will pay all fees and expenses (including, without limitation, legal and accounting fees and expenses) incurred by such party in connection with the transactions contemplated by this Agreement, except that Buyer and Seller agree to each pay an equal share of the applicable Escrow.com transaction fee as specified in Section 1.4.

 

[Signature page to follow]

 

 

 

 

  

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IN WITNESS WHEREOF the Parties have executed this Agreement.

 

	
SELLER

By:

/s/ Sanjay Sabnani                                                                

Name: Sanjay Sabnani

Title: CEO, CrowdGather, Inc.

	  

 

BUYER

 

By:

/s/ Rob Laidlaw                                                                

Name: Rob Laidlaw

Title: CEO, VerticalScope Inc.

 

 

By:

/s/ Diane Yu                                                                

Name: Diane Yu

Title: Chief Legal Officer, VerticalScope Inc.

 

  

9

  

 Schedule “A” – Assigned Contracts

Seller must fill in this Schedule by including a list of the following:

1) All written and oral agreements entered into between Seller and third party advertisers or supporting vendors in relation to the Web Site (this includes any advertising agreements with individuals or companies).

No formal written or oral agreements between Seller and third parties for the sites in question

	
Company

	
Contact Info

	
Ad Placement

	
Fee / Term

	
Start Date/Expiration Date

	
Payment Method

	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  
	  	  	  	  	  	  

2) All revenue generating advertising network or affiliate program agreements entered into between Seller and a third party in relation to the Web Site (Google AdSense, etc.).

Advertising Networks included:  AdSense, Lijit, Matomy, Sonobi, GumGum, Adgorithms, TLV, PriceGrabber, Viglinks, Exelate

3) All other agreements, contracts or arrangements that result in a revenue stream for the Web Site. For example, this includes advertisements that are not covered b #1 and #2 above, such as merchandise sales agreements, etc.

Not Applicable

4) All payments received by Seller or to be received by Seller prior to the date of this Agreement, which are to be remitted to Buyer in accordance with Section 5.4.

Not Applicable

5) Any other agreements necessary for Buyer to continue to operate the Web Site as it was operated prior to the date hereof.

Not Applicable

6) Any contracts requiring notice or consent to transfer to Buyer before the sale can take place.

Not Applicable

  

10

  

Schedule “B” – List of Intellectual Property

Seller must fill in this Schedule by including a list of the following:

1) All business names, Web Site names, and other names, or logos of Seller that are used on the Web Site:

Web Site names:

personalitycafe.com, personalitycafe.com, personalitycafe.net, personalitycafe.org, personalitycafe.info, 16typequiz.com, enneagramquiz.com, cognitivequiz.com, myersly.com

ngemu.com: ngemu.com, pcsx.net, emuforums.com, psxemu.com

aquaticplantcentral.com

clubxb.com

motorcycleforum.com

pocketbikeplanet.com

Logos: Each site has a logo active within the forum template that will be transferred with the site.

NOTE: Seller must (when available) send high-res copies of any site graphics via email to Buyer representative upon execution of this agreement.

2) All registrations or applications for any trademarks, copyrights, patents or other intellectual property.

Not Applicable

3) All social media and other accounts that are associated with the Web Site, including but not limited to Twitter, YouTube, Facebook, Linked In, Google + and any other external publishing outlet that is directly or indirectly associated with the Web Site.

Social Media accounts include the items listed below.  All access credentials and admin privileges will be provided during the transition and migration period.

	
Site

	
Twitter

	
Facebook Page

	
AquaticPlantCentral.com

	
APlantCentral

	
No

	
ClubXB.com

	
clubxb

	
Yes

	
MotorcycleForum.com

	
Mcforums

	
Yes

	
PocketBikePlanet.com

	
pocketbikeforum

	
No

	
PersonalityCafe.com

	
personalitycafe

	
Yes

	
Ngemu.com

	
EmulatorForums

	
Yes

4) Other Parties’ Intellectual Property

a) Any content used on the Web Site that is owned by a third party and that is licensed to Seller. This would include such items as text, graphics, HTML code, etc that is owned by a third party and not by Seller.

Not Applicable

b) Any third party software (and version number) used to power the Web Site forum.  NOTE: All software licenses must be fully paid, current and available for transfer from Seller to Buyer unless otherwise agreed to in writing by Buyer.

Personaltiycafe.com – vbulletin 4.0

Aquaticplantcentral.com – vbulletin 3.8

Ngemu.com -  xenforo 1.2.2

Motorcycleforum.com – vbulletin 3.8

ClubXb.com – vbulletin 3.8

Pocketbikeplanet – vbulletin 3.8

 

 

11

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