Document:

EXCLUSIVE
WORLDWIDE RESELLER AGREEMENT

     

    This
Exclusive Worldwide Axiologix Agreement (the “Agreement”), dated as of the
27th day of August, 2010,

     

    BETWEEN

    
      
        	
                Edumedia
      Software Solutions Corporation

              	 
      
	
                Parkway
      Plaza

              	 
      
	
                110
      Roosevelt Blvd.

              	 
      
	
                Marmora,
      New Jersey 08223

              	
                 ("Edumedia")

              

      

    

    

    AND

    
      
        	
                Axiologix
      Education Corporation

              	 
      
	
                501 Scarborough Dr., Suite 308E

              	 
      
	
                Egg
      Harbor Township, New Jersey 08234

              	
                (“Axiologix”)

              

      

    

    

    WHEREAS:

    

    
      	
              A.

            	
              Edumedia
      is engaged in the development of educational software programs and
      services identified on Exhibit A to
      this Agreement, as the same may be modified from time to time (the “Software and Services”)
      ; and

            

    

    

    
      	
              B.

            	
              Edumedia
      wishes to grant to Axiologix the exclusive worldwide rights to market and
      distribute the Software and Services on the terms and subject to the
      conditions of this Agreement.

            

    

    

    NOW, THEREFORE, THIS AGREEMENT
WITNESSES THAT in consideration of the premises and mutual covenants
contained in this Agreement and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties, intending
to be legally bound hereby, agree as follows:

    

    
      	
              1.

            	
              Agreement

            

    

    

    
      	
              (a)

            	
              Edumedia
      grants to Axiologix a worldwide, exclusive, transferable right and license
      (with the right to sublicense any and all of the rights granted below),
      under all of Edumedia’s Intellectual Property Rights (as defined below) or
      any other rights owned or granted to Edumedia by right, title or
      contract:   (a)  to use, display, copy, sell, market,
      distribute (and to sell the access to and use of) the Software and
      Services, and (b) to copy, display, use, modify and distribute the
      Documentation and the Training and Marketing Materials (each, as defined
      below)  solely in connection with Axiologix’s demonstration, testing,
      marketing and distribution of the Software and
  Serivces.

            

    

     

    
      
        Exclusive
Resellership Agreement 

        Edumedia – Axiologix

      

      
        Page 1 of
13

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              As
      used herein:

            

    

    

    
      	
               
      

            	
              “Documentation” means all
      documentation and information in connection with the installation, use,
      operation and development of the Software and Services, including, without
      limitation, manuals, product templates, data models, and online and
      offline help and user support
information.

            

    

    

    
      	
               
      

            	
              “Intellectual Property
      Rights” means all intellectual property rights throughout the
      world, including all copyrights, copyright registrations and applications,
      trademark and service mark rights (including trade dress), trademark
      registrations and applications, service mark registrations and
      applications, patent rights (including the right to apply therefore),
      patent applications therefore (including the right to claim priority under
      applicable international conventions) and all patents issuing thereon, and
      inventions whether or not patentable, together with all utility and design
      thereof, know-how, specifications, trade names, mask-work rights, trade
      secrets, moral rights, author’s rights, algorithms, computer software,
      rights in packaging, goodwill and other intellectual property rights, as
      may exist now or hereafter come into existence, and all renewals and
      extensions thereof, regardless of whether  any of such rights arise
      under the laws of the United States or any other state, country or
      jurisdiction.

            

    

    

    
      	
               
      

            	
              “Training & Marketing
      Materials” means any training, marketing and collateral materials
      for the Software and Services, including (without limitation) the
      materials described in Exhibit B to
      this Agreement.

            

    

    

    
      	
              (b)

            	
              Edumedia
      will not offer for sale or sell (directly or indirectly) the Software and
      Services, other than through Axiologix.   Edumedia will promptly
      refer to Axiologix all potential customer inquiries and sales leads in
      respect of the Software and
Services.

            

    

    

    
      	
               (c)

            	
              Nothing
      in this Agreement prohibits (or restricts in any way) Axiologix from distributing,
      marketing, representing, dealing with, developing or having any interest
      in any service or product that competes, directly or indirectly, with the
      Software and Services.

            

    

    

    
      	
              2.

            	
              Consideration

            

    

    

    As sole
consideration for the grant of the exclusive reseller rights granted by Edumedia
to Axiologix hereunder:

    

    (a)  R&D
Contribution.   Axiologix has heretofore paid to Edumedia
$91,800 in cash as a contribution to Edumedia’s research and development costs
for the Software and Services.

    

    (b)  Upfront Stock
Issuance.  Axiologix has heretofore issued to Edumedia 940,000
shares of Axiologix’s common stock, par value, $.001 per share (“Common Stock”).

     

    
       

      
        
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          Edumedia – Axiologix

        

        
          Page 2 of
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    (c)   License
Fee.

    

    
      
        	
              	
                (i)

              	
                Monthly License
      Fee. For
      each month during the term of this Agreement, Axiologix will pay to
      Edumedia a monthly license fee (the “Monthly License Fee”)
      equal to 50% of all revenue from sales of the Software and Services
      actually collected by Axiologix during such
  month.

              

      

    

    

    
      	
               
      

            	
              (ii)

            	
              Monthly License
      Report.  Axiologix will submit to Edumedia electronically
      (unless otherwise agreed to by the parties) within the first five business
      days of each month a monthly license report and invoice in respect of the
      preceding month.  The monthly license report and invoice will set
      forth calculation of the total Monthly License Fee for the preceding month
      and the basis of calculation
thereof.

            

    

    

    
      	
               
      

            	
              (iii)

            	
              License Fee and
      Payment.    In the event that Edumedia fails to notify
      Axiologix of any disagreement within ten business days after receipt of
      the monthly license report and invoice, such report shall be deemed
      approved and binding.  Upon receipt of a notice of disagreement, the
      parties shall resolve such disagreement pursuant to Section 10. 
      Axiologix will pay the Monthly License Fee (or any undisputed portion
      thereof in the event that Edumedia provides Axiologix with notice of
      disagreement), by no later than the 30th day of the calendar month in
      which it delivers such monthly license report and invoice, and any
      disputed amount within 30 days of resolution of such
    dispute.

            

    

    

    
      	
               
      

            	
              (iv)

            	
              Option to Pay Monthly License
      Fee in Cash or Common Stock.   At its option, Axiologix
      may pay any Monthly License Fee (A) in cash or (B) restricted shares of
      Common Stock.   If Axiologix elects to pay a Monthly License Fee
      in restricted shares of Common Stock, the number of restricted shares of
      Common Stock to be issued to Edumedia will be an amount equal to the
      Monthly License Fee, divided by the
      average of the VWAP (as defined below) for the five trading days
      immediately preceding the date the Monthly License Fee is
      paid.

            

    

    

    
      	
               
      

            	
              The
      term “VWAP” means,
      for any date, (i) the daily volume weighted average price of the Common
      Stock for such date on any of a national securities exchange, a national
      automated quotation system or the over-the-counter electronic bulletin
      board (or any similar organization or agency succeeding its
      functions) that is the principal exchange or market on which the
      Common Stock is trading or is quoted (an “Applicable Market”)  as
      reported by Bloomberg Financial L.P. (based on a trading day from 9:30
      a.m. Eastern Time to 4:02 p.m. Eastern Time); (ii) if the Common Stock is
      not then listed or quoted on an Applicable Market  and if prices for
      the Common Stock are then reported in the “Pink Sheets” published by the
      Pink OTC Market, Inc. (or a similar organization or agency succeeding to
      its functions of reporting prices), the most recent bid price per share of
      the Common Stock so reported; or (iii) in all other cases, the fair market
      value of a share of Common Stock as determined by an independent appraiser
      selected in good faith by Axiologix and reasonably acceptable to
      Edumedia.

            

    

      

    
      
        
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          Edumedia – Axiologix

        

        
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13

          
            

          

        

        
           

        

      

    

      

    
      	
               
      

            	
              (v)

            	
              All
      shares of Common Stock  to be issued under Section 2(c)(iv) will be
      deemed “restricted securities” as defined in paragraph (a) of Rule 144
      under the Securities Act of 1933, as amended (the “Securities Act”). 
      All shares of Common Stock to be issued under the terms of this Agreement
      shall be issued pursuant to an exemption from the registration
      requirements of the Securities Act, under Section 4(2) of the Securities
      Act and the rules and regulations promulgated thereunder. 
      Certificates representing the shares of Common Stock to be issued
      hereunder shall bear a restrictive legend in substantially the following
      form:

            

    

    

    
      “The
securities represented by this certificate have not been registered under the
Securities Act of 1933, as amended, and may not be offered for sale, sold, or
otherwise disposed of, except in compliance with the registration provisions of
such Act or pursuant to an exemption from such registration provisions, the
availability of which is to be established to the satisfaction of Axiologix.
“

    

    

    
      	
               
      

            	
              (vi)

            	
              In
      respect of any acquisition of shares of Common stock under this Agreement,
      Edumedia represents, warrants and agrees
that:

            

    

    

    
      	
               
      

            	
              (A)

            	
              It
      is acquiring the shares of Common Stock for its own account and for
      investment only and not with a view to distribution or resale thereof
      within the meaning of such phrase as defined under the Securities
      Act.

            

    

    

    
      	
               
      

            	
              (B)

            	
              It
      shall not dispose of any part or all of such shares of Common Stock in
      violation of the provisions of the Securities Act and the rules and
      regulations promulgated under the Securities Act by the Securities and
      Exchange Commission and all applicable provisions of state securities laws
      and regulations.

            

    

    

    
      	
               
      

            	
              (C)

            	
              It
      acknowledges being informed that the shares of Common Stock shall be
      unregistered, shall be “restricted securities” as defined in paragraph (a)
      of Rule 144 under the Securities Act, and must be held indefinitely unless
      (1) they are subsequently registered under the Securities Act, or (2) an
      exemption from such registration is
available.

            

    

     

    
      
        
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              (D)

            	
              It
      acknowledges that it has been afforded access to all material information
      which it has requested relevant to their decision to acquire the shares of
      Common Stock and to ask questions of Axiologix’s management and that,
      except as set forth herein, neither Axiologix nor anyone acting on behalf
      of Axiologix has made any representations or warranties to Edumedia which
      have induced, persuaded, or stimulated Edumedia to acquire such shares of
      Common Stock.

            

    

    

    
      	
               
      

            	
              (E)

            	
              Either
      alone, or together with its investment advisor(s), Edumedia has the
      knowledge and experience in financial and business matters to be capable
      of evaluating the merits and risks of the prospective investment in the
      shares of Common Stock, and Edumedia is and will be able to bear the
      economic risk of the investment in such shares of Common
      Stock.

            

    

    

    
      	
              3.

            	
              Edumedia’s
      Duties

            

    

    

    
      	
              (a)

            	
              Edumedia
      will provide Axiologix with current versions of the Software and Services,
      the Documentation and the Training & Marketing Material, in each case,
      at such times and in such formats as Axiologix may reasonably
      request.

            

    

    

    
      	
              (b)

            	
              Edumedia
      acknowledges that research and development is an integral part of being
      able to continue to improve functionality and meet the increasing business
      needs of the education market.   Edumedia will make such
      research and development efforts related to the Software and Services as
      are necessary to maintain and improve the performance of the Software and
      Service.  At least ten days before the end of each quarter, Edumedia
      will provide Axiologix with a current version of Edumedia’s Software and
      Services development roadmap, in such detail as Axiologix may reasonably
      request.  At least once per calendar quarter, Edumedia’s management
      team responsible for the development roadmap will meet with
      representatives of Axiologix to discuss Axiologix’s suggestions regarding
      roadmap goals and the relative prioritization of those goals. 
       Edumedia will use commercially reasonable efforts to incorporate
      Axiologix’s suggestions into the Software and Services development
      roadmap.

            

    

    

    
      	
              (c)

            	
              Edumedia,
      at its own expense, will conduct three training sessions at Axiologix’s
      workplace(s) to acquaint Axiologix’s sales people about the Software and
      Services, and to train Axiologix’s technical people on technical support
      of the Software and Services.  All subsequent training sessions will
      be at Axiologix’s expense.

            

    

     

    
      
        
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              (d)

            	
              Edumedia
      will maintain a product manager on its staff whose task will be to support
      Axiologix’s sales and customer support efforts for the Software and
      Services.

            

    

    

    
      	
              (e)

            	
              Edumedia
      shall provide level 3 support for the Software and Services, which
      consists of software bug fixes for the Software and Services and similar
      support.

            

    

    

    
      	
              (f)

            	
              Edumedia
      agrees that for a period of three years after the expiration or
      termination of this Agreement, that it will not directly or indirectly (a)
      take any action to solicit or divert any customers away from
      Axiologix  or Axiologix’s resellers, as they exist during this
      Agreement or at termination or expiration hereof (b) induce customers,
      suppliers, agents or other persons under contract or otherwise associated
      or doing business with Axiologix, to reduce or alter any such association
      or business with or from Axiologix, and/or (c) induce any person in the
      employment of Axiologix or any consultant to Axiologix to (i) terminate
      such employment, or consulting arrangement, (ii) accept employment, or
      enter into any consulting arrangement, with anyone other than Axiologix,
      and/or (iii) interfere with the customers, suppliers, or the clients of
      Axiologix in any manner. The restrictions of clauses (a) and (b) above
      shall apply to the customers of Axiologix as they exist from time to time
      during the term of this Agreement and at the termination or expiration of
      this Agreement, in either case, for so long as such customer remains a
      customer of Axiologix.

            

    

    

    
      	
              4.

            	
              Axiologix’s
      Duties

            

    

    

    
      	
              (a)

            	
              Axiologix
      will use its commercially reasonable efforts to secure sales of the
      Software and Services.

            

    

    

    
      	
              (b)

            	
              Axiologix
      will be responsible for all billing and collections of amounts payable
      from its customers in respect of the Software and Services. 
       Axiologix will keep records of all billing, collection and payment
      transactions in a level of detail sufficient to demonstrate its compliance
      with the provisions of this Agreement relating
  thereto.

            

    

    

    
      	
              (c)

            	
              Except
      as provided in Sections 3(c) through (e) hereof, Axiologix will be
      responsible for all customer support for its customers in respect of the
      Software and Services.

            

    

      

    
      
        
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          Edumedia – Axiologix

        

        
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              5.

            	
              Intellectual
      Property

            

    

    

    All
right, title and interest in and to the Software and Services, including all
copyrights,  trademarks, service marks, logos, names, patents and
other  intellectual  property  embodied  in the 
Software or Services or provided by Edumedia in connection  therewith shall
remain the property of Edumedia.  Axiologix shall have a right to use such
Edumedia properties only for the limited purpose of distributing and promoting
the Software and Services in accordance with this Agreement.  Axiologix may
use literature and other promotional materials to aid in marketing the Software
and Services only if such materials have been provided or approved in advance by
Edumedia.  In   marketing the Software and Services, Axiologix
may reference its own name or brand in     association with the
Software and Services, rather than Edumedia’s, if done in a manner that does not
prejudice Edumedia's intellectual property rights in and to the Software and
Services.

    

    
      	
              6.

            	
              Representations and
      Warranties

            

    

    

    
      	
              (a)

            	
              Each
      party represents and warrants to the other  party that (a) it has the
      full power,  authority  and legal right to execute, deliver and
      perform this Agreement, (b) this Agreement has been duly  authorized,
      executed and delivered by it and (c) this Agreement is a legal, valid and
      binding obligation enforceable in accordance with its   
       terms, subject to applicable bankruptcy, insolvency and similar laws
      affecting the rights  of creditors generally and subject to general
      principles of equity.

            

    

    

    
      	
              (b)

            	
              Edumedia
      represents and warrants to Axiologix that (i) it owns the Software and
      Services, the Documentation and the Training & Marketing Materials and
      has the right to grant the rights and licenses contemplated by this
      Agreement and (ii) the Software and Services, the Documentation and the
      Training & Marketing Materials do not and shall not infringe any
      Intellectual Property Rights of any third
party.

            

    

    

    
      	
              (c)

            	
              Edumedia
      represents and warrants to Axiologix that the Software and Services (i)
      will operate in all material respects to the specifications set forth in
      the Documentation and (ii)  will not have any timer, clock, counter,
      trap or virus or other limiting design or routine that may cause the
      Software or Services to become inoperable, inaccessible, or incapable of
      performing in accordance with the specifications therefore upon the
      occurrence of a triggering event, including without limitation the passage
      of time.

            

    

    

    
      	
              (d)

            	
              Edumedia
      makes no representations or warranties of any kind to Axiologix with
      respect to the Software and Services, other than any that are expressly
      set forth in this Agreement.  If Axiologix   makes any
      representations or warranties to its customers with respect to the
      Software and Services, such representations and warranties shall be the
      sole responsibility of Axiologix.

            

    

    

    
      	
              7.

            	
              Term and
      Termination

            

    

    

    
      	
              (a)

            	
              The
      term of this Agreement shall commence as of the date hereof and shall
      continue until 18 months following such date (the “Initial Term”). 
      Following the Initial Term, this Agreement shall automatically renew for
      successive one-year periods unless either party gives written notice of
      termination to the other party at least 90 days prior to the end of the
      then-current term.

            

    

     

    
      
        
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              (b)

            	
              Without
      limitation to any other rights available under this Agreement, this 
      Agreement may be terminated (I) by either party for the material 
      breach of this Agreement or of a representation,  warranty or
      covenant  contained herein by the other party,  which breach is
      not cured within 30 days after written notice of such breach by the
      terminating  party, or (ii) by Edumedia if Edumedia 
      discontinues the Software or Services and gives  Axiologix 90 days'
      prior written notice of the applicable 
    discontinuation.

            

    

    

    
      	
              (c)

            	
              In
      the event of expiration or any termination of this  Agreement, the
      obligations of the parties under this Agreement shall cease as of such
      expiration  or termination,  except  (i) for 
      obligations  (including payment obligations) that accrued prior to
      termination;  (ii) that, if the  determining  event was not
      a  termination  of this  Agreement  by Edumedia under
      Section  7(b)(ii)  hereof,  Axiologix  shall be
      entitled to continue any license of or subscription to the Software
      or  Services   existing  at the  time  of
      such expiration or termination,  subject to Axiologix's 
      compliance with all of the terms and  conditions  of this 
      Agreement  with respect  thereto;  and  (iii)  as
      may  otherwise  be  expressly    provided in this
      Agreement.

            

    

    

    
      	
              8.

            	
              Indemnification

            

    

    

    Each
party hereto shall indemnify and hold  harmless the other party, such other
party's affiliates, and the officers, directors,  employees, agents and
representatives of all thereof from and against any and all claims, damages,
actions, costs and expenses (including reasonable attorneys' fees) arising 
out of or relating to a breach by such  party of any of its
representations, warranties or undertakings set forth in this Agreement or
arising out of or relating to such party's intentionally wrongful or
grossly  negligent conduct in connection with this Agreement or with such
party's performance  hereunder.  In the event of a claim for which
indemnification is to be sought hereunder, the party to be indemnified shall
provide prompt written notice of such claim to the other party, shall allow the
other party to control the defense of such claim and shall cooperate with the
other party in conducting such defense.

    

    
      	
              9. 

            	
              Confidentiality

            

    

    

    All
proprietary  information regarding the Software and Services and its
distribution,  shall  be confidential  between the parties, 
and neither shall reveal such terms,  conditions or information  to
any third parties other than its  accountants or attorneys or as required
by law.  The obligations contained in this confidentiality 
 provision shall survive the expiration or any termination of this
Agreement.

     

    
      
        
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              10. 

            	
              Dispute
      Resolution

            

    

    

    
      	
               (a)

            	
              The
      parties recognize that disputes as to certain matters may from time to
      time arise which relate to either party’s rights and/or obligations
      hereunder.  It is the objective of the parties to establish
      procedures to facilitate the resolution of such disputes in an expedient
      manner by mutual cooperation and without resort to litigation.  To
      accomplish this objective, the parties agree to follow the procedures set
      forth below if and when such a dispute arises between the
      parties.

            

    

    

    
      	
              (b)

            	
              If
      any dispute arises between the parties relating to the interpretation,
      breach or performance of this Agreement or the grounds for the termination
      thereof, and the parties cannot resolve the dispute within thirty (30)
      days of a written request by either party to the other party, the parties
      agree to hold a meeting, attended by the Chief Executive Officer or
      President of each party, or their executive level designees, to attempt in
      good faith to negotiate a resolution of the dispute prior to pursuing
      other available remedies.  If, within sixty (60) days after such
      written request, the parties have not succeeded in negotiating a
      resolution of the dispute, such dispute shall be submitted to final and
      binding arbitration under the then current commercial rules and
      regulations of the American Arbitration Association (“AAA”) relating to
      voluntary arbitrations.  The arbitration proceedings shall be held in
      New York, New York (unless otherwise agreed to by the parties).  One
      arbitrator shall be selected by Axiologix, one arbitrator shall be
      selected by Edumedia, and the third arbitrator shall be chosen by the
      first two arbitrators chosen.  The arbitrators shall be knowledgeable
      in the subject matter at issue in the dispute.  The arbitrators must
      give full effect to the applicable law and to the terms of this
      Agreement.  The arbitration shall be conducted in accordance with the
      following time schedule unless otherwise mutually agreed to in writing by
      the parties:  (i) the parties to the arbitration proceeding shall
      each appoint their respective arbitrator within fifteen (15) business days
      after the date the dispute is submitted to arbitration; (ii) within five
      (5) business days thereafter, such arbitrators shall appoint the third
      arbitrator; (iii) within ten (10) business days after the appointment of
      the third arbitrator, the parties to the arbitration proceeding shall
      provide all documents, records and supporting information reasonably
      necessary to resolve the dispute; and (iv) within fifteen (15) business
      days after the date the above records are due, the arbitrators shall hold
      a hearing, and (v) within fifteen (15) days thereafter render their
      decision.  Each party shall initially bear its own costs and legal
      fees associated with such arbitration.  The prevailing party in any
      such arbitration shall be entitled to recover from the other party the
      reasonable attorney’s fees, costs and expenses incurred by such prevailing
      party in connection with such arbitration.  The decision of the
      arbitrator shall be final and binding on the parties.  The arbitrator
      shall prepare and deliver to the parties a written, reasoned opinion
      conferring his or her decision.  Judgment on the award so rendered
      may be entered in any court having competent jurisdiction thereof and
      shall be enforceable under the United States Federal Arbitration
      Act.

            

    

     

    
      
        
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              11.

            	
              Miscellaneous

            

    

    

    
      	
              (a)

            	
              All
      demands, notices and communications under this Agreement shall be in
      writing and shall be deemed duly given if delivered by hand, by recognized
      commercial courier, by fax or by certified mail (with return receipt), in
      each case with postage or delivery charges pre-paid, as
      follows:

            

    

    

    If to
Edumedia:

    

    Edumedia
Software Solutions Corporation

    Parkway
Plaza

    110
Roosevelt Blvd.

    Marmora,
New Jersey 08223

    Attention: Vice
President

    

    If to
Axiologix:

    

    Axiologix
Education Corporation

    501
Scarborough Dr., Suite 308E

    Egg
Harbor Township, New Jersey 08234

    Attention: John P. Daglis,
President

    

    
      
        	
                (b)

              	
                Any
      provision of this Agreement that is prohibited or held to be void or
      unenforceable shall be ineffective to the extent of such prohibition or
      unenforceability, without invalidating the remaining provisions of this
      Agreement.

              

      

    

    

    
      	
              (c)

            	
              This
      Agreement shall bind and inure to the benefit of and be enforceable by the
      parties hereto and their respective permitted successors and assigns.
      Neither party may assign this Agreement nor any rights or obligations
      hereunder without the prior written consent of the other party, which
      consent shall not be unreasonably withheld. . However, either
      party may assign this Agreement (i) to any subsidiary of such party or
      (ii) to a third party purchasing: (A) majority control of such party's
      equity shares, or (B) all or substantially all of such party’s
      assets.

            

    

    

    
      	
              (d)

            	
              No
      term or  provision  of this  Agreement  may be
      waived  or  modified unless  such  waiver or 
      modification  is in writing and signed by the party 
      against  whom  such  waiver  or 
      modification  is  sought to be enforced.  No waiver of any
      breach of any provision of this Agreement shall constitute a waiver of any
      prior, concurrent or subsequent breach of the same or any other provision
      hereof.

            

    

    

    
      	
              (e)

            	
              Edumedia
      and Axiologix shall be considered independent contractors to one another,
      and nothing in this Agreement shall be construed as creating an
       employer-employee,  agency,  partnership  or
       joint  venture relationship between the
  parties.

            

    

    

    
      	
              (f)

            	
              No
      provision of this Agreement shall be interpreted against a party solely
      because such party or its attorney drafted such
  provision.

            

    

     

    
      
        
          Exclusive
Resellership Agreement 

          Edumedia – Axiologix

        

        
          Page 10
of 13

          
            

          

        

        
           

        

      

    

     

    
      	
              (g)

            	
              Neither
      party shall be deemed in breach of this Agreement to the extent that
      performance of its obligations is prevented or delayed by reason of any
      act of God, fire, natural disaster, accident, riot, act of government,
       shortage of materials or supplies,  failure of
       transportation  or  communication, third party
      nonperformance (including, without limitation, failure of performance by
      common carriers, interexchange carriers and local exchange carriers) or
      any other cause beyond such party's reasonable
  control.

            

    

    

    
      	
              (h)

            	
              All
      claims regarding this Agreement are governed by and construed in
      accordance with the laws of New Jersey, applicable to contracts wholly
      made and performed in such jurisdiction, except for any choice or conflict
      of Law principles, and must be resolved as provided in Section 11, except
      that a party may seek injunctive or other equitable relief in any venue of
      its choosing within New Jersey, regardless of the inconvenience of the
      forum. The parties acknowledge and agree that the United Nations
      Convention on Contracts for the International Sale of Goods is
      specifically excluded from application to this
  Agreement.

            

    

    

    
      	
              (i)

            	
              This
      Agreement constitutes the entire agreement between the parties with
      respect to the subject matter hereof and supersedes all prior and
      contemporaneous written or oral agreements or communications between such
      parties with respect to such subject
matter.

            

    

    

    IN WITNESS WHEREOF, the
parties have duly executed and delivered this Agreement as of the date first
written above.

     

    EDUMEDIA
SOFTWARE SOLUTIONS CORPORATION

     

    
      
        
          	
                  Per:

                
	
                   

                
	
                  J.
      Chris Tyson Vice President

                
	
                  Authorized
      Signatory

                

        

      

    

     

    AXIOLOGIX
EDUCATION CORPORATION

    

    
      
        
          	
                  Per:

                
	
                   

                
	
                  John
      P. Daglis

                

        

      

    

     

    
      
        
          Exclusive
Resellership Agreement 

          Edumedia – Axiologix

        

        
          Page 11
of 13

          
            

          

        

        
           

        

      

    

     

    Exhibit
“A”

    

    The
following is a detailed list of Edumedia’s Software and Services that Axiologix
will resell:

     

    
      
        
          Exclusive
Resellership Agreement 

          Edumedia – Axiologix

        

        
          Page 12
of 13

          
            

          

        

        
           

        

         

        Exhibit
“B”

      

    

    

    The
following is some of the documentation and brochures that Edumedia will provide
to Axiologix:

     

    
      
        
          Exclusive
Resellership Agreement 

          Edumedia – Axiologix

        

        
          Page 13
of 13EMPLOYMENT
AGREEMENT

     

    Peerless
Systems Corporation, a Delaware Corporation, (the “Company”) and its
successors and assigns, and Timothy E. Brog, a natural person (“Executive”)
(collectively, the “Parties”), make this
EMPLOYMENT AGREEMENT (“Agreement”) as of
August 26, 2010.

     

    RECITALS

     

    WHEREAS,
the Executive has been instrumental to the Company since he joined its Company’s
Board of Directors in 2007; and

     

    WHEREAS,
the Company wishes to employ Executive and Executive wishes to be employed as
the Company’s Chief Executive Officer.

     

    NOW,
THEREFORE, in consideration of the mutual covenants and agreements hereinafter
set forth, the Company and Executive agree as follows:

     

    AGREEMENT

     

    1.             Term.  The
Company hereby agrees to employ Executive as Chief Executive Officer commencing
on the date hereof and continuing for a period of one (1) year.  On
each of the first and second anniversaries hereof, Executive’s employment and
this Agreement shall be automatically extended for an additional one (1) year
period unless terminated by either party to this Agreement by written notice
given to the other party not less than one hundred and twenty (120) days prior
to such anniversary.  From and after the third anniversary hereof,
this Agreement may be terminated by either party upon ninety (90) days’ notice
to the Executive.

    

     

    2.            
Duties.

     

    (a)           Duties and
Responsibilities. The Executive will report to the Board of Directors
(the “Board”).  Executive shall be employed as Chief Executive
Officer and shall
perform and discharge the duties which may be assigned to him from time to time
by the Board in connection with the conduct of the Company’s business as well as
those duties which are normally and customarily vested in a Chief Executive
Officer of a corporation.  Executive’s job responsibilities shall
include, but not be limited to, anything reasonably requested or required of
Executive on behalf of the Company.

     

    (b)           Extent of Services and
Business Activities.  Executive shall devote his full-time
efforts to the business of the Company and shall not devote material time to
other activities except (i) for serving on the Board of Directors of Eco-Bat
Technologies Ltd or (ii) with the prior written consent of the
Board.  Executive covenants and agrees that for so long as he is
employed by the Company, Executive shall not, whether as an executive, employee,
employer, consultant, agent, principal, partner, member, stockholder, corporate
officer or director, or in any other individual or representative capacity, for
compensation, engage in or participate in or render material services to any
other person or entity, provided, however, that,
notwithstanding the foregoing, Executive (a) may invest in securities of any
entity, solely for investment purposes, if (x) such securities are traded on any
national securities exchange or the National Association of Securities Dealers,
Inc. Automated Quotation System, and (y) Executive does not, directly or
indirectly, own 4.9% or more of any class of securities of such
entity.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (c)           Location.  Executive
shall regularly perform his duties from a newly established Peerless office (the
“Office”) at such location as reasonably determined by the Executive and agreed
to by the Board.  In addition to spending time at the Office,
Executive may be required to travel from time to time in order to perform his
duties hereunder.

     

    3.             Compensation.

    

    (a)                 Base
Salary.  From and after the date hereof until the termination
of his employment, Executive shall be paid an annual base salary (“Base Salary”) of
three hundred forty thousand dollars ($340,000).  Executive’s Base
Salary shall be payable in installments consistent with the payroll practices
established by the Company with respect to its senior executive
employees.

    

    (b)                 Equity and Incentive
Compensation.  On the date hereof, the Company shall issue to
the Executive a total of 200,000 restricted shares (the “Restricted Shares”) of
common stock, par value $0.001 per share, of the Company (the “Common Stock”)
pursuant to the agreement attached hereto as Exhibit A, which shall vest in
accordance with the schedule set forth below.  Such Restricted Shares
shall vest as follows:

     

    
      
        	
                Number of Restricted
      Shares Vested

              	
                Target
      Price

              
	
                50,000

              	
                $3.75

              
	
                50,000

              	
                $4.00

              
	
                50,000

              	
                $4.25

              
	
                50,000

              	
                $4.50

              

      

    

    

    The
Restricted Shares shall vest on the first date before the third anniversary
hereof, if any, that the average closing price of the Common Stock as reported
on the Nasdaq Capital Market for any fifteen consecutive trading days
immediately prior to the such date (“Average Price”) is greater than or equal to
the Target Price for such Restricted Shares set forth in the table above,
provided that Executive remains employed by the Company i as of the vesting
date.  Notwithstanding the foregoing, if the Executive’s employment
pursuant to this Agreement is terminated without Cause: (i) if 150,000 of the
Restricted Shares have vested on or before the date of such termination (the
“Termination Date”), then the remaining 50,000 Restricted Shares shall vest; and
(ii) if less than 150,000 of the Restricted Shares have vested on or before the
Termination Date, then 100,000 Restricted Shares shall vest and any other
unvested Restricted Shares shall expire and have no further
effect.  Notwithstanding anything to the contrary in this Agreement,
all Restricted Shares that have not vested on or before the third anniversary
hereof shall expire and shall have no further effect.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    (c)                 Options and
Bonus.  Executive is eligible to receive semi-annual incentive
options and bonus payments at the sole discretion of the Board.  All
equity awards shall be subject to the terms and conditions set forth in the
Peerless 2005 Incentive Award Plan (the “Plan”) and such other terms approved by
the Board.

    

    (d)                 Payment.  Payment
of all compensation to Executive hereunder shall be made in accordance with the
relevant written Company policies in effect from time to time, including normal
payroll practices, and shall be subject to all applicable employment and
withholding taxes.  This provision shall survive the termination of
Executive’s employment with the Company, for any reason.

     

    4.            
Other Employment
Benefits.

     

    (a)           Business
Expenses.  Upon submission of itemized expense statements, in
the manner as shall be specified by the Company, Executive shall be entitled to
reimbursement for reasonable business and travel expenses duly incurred by
Executive in the performance of his duties under this Agreement, pursuant to
written Company policy and any relevant written policies established by the
Board and provided to Executive.

     

    (b)           Benefit
Plans.  To the extent offered by the Company, Executive shall
be entitled to participate, on a basis commensurate with his position, in the
Company’s medical insurance, retirement (e.g., non-matching 401(k)
plan) and other benefit plans pursuant to their terms and conditions during the
term of this Agreement. Nothing in this Agreement shall preclude the Company or
any affiliate of the Company from terminating or amending any employee benefit
plan or program from time to time.

     

    (c)           No Other
Benefits.  Executive understands and acknowledges that the
compensation and benefits specified in Paragraphs 3, 4 and 5 of this Agreement
are the only compensation and benefits he is entitled to receive under this
Agreement.

     

    5.            
Termination of
Employment.

     

    (a)           Payments Upon
Termination.  If Executive’s employment is terminated for any
reason by either party, the Company shall promptly pay or provide to the
Executive, or his estate, (i) the Executive’s earned but unpaid Base Salary
accrued through the date of termination, (ii) accrued, but unpaid, vacation time
through such date of termination, (iii) reimbursement of any business expenses
incurred by the Executive prior to the Date of Termination that are reimbursable
under Paragraph 4(a) above, and (iv) any vested benefits and other amounts due
to Executive under any plan, program, policy of, or other agreement with, the
Company (subsections (i) to (iv), above, are referred to together as the “Accrued
Obligations”).  If Executive’s employment is terminated by the
Company without Cause (as Cause is defined below) for any reason prior to the
end of this agreement, the Company shall pay Executive in a lump sum payment any
remaining payments owed through the end of this Agreement.

     

    (b)           Severance
Payments.  In addition to the payments set forth in Section
5(a), in the event Executive’s employment is terminated by the Company without
Cause (as Cause is defined below) or resulting from a non-renewal of this
Agreement without Cause and Executive executes a general release in favor of the
Company in the form attached hereto as Exhibit B, the Company shall pay (i)
Executive his Base Salary for a period of six months (the “Severance Period”)
and (ii) Executive’s health insurance (i.e., medical, dental and vision) for the
Severance Period (collectively, the “Severance Payment”).  The
Severance Payment, if any, would be payable in a lump sum at the termination of
Executive’s employment.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    (c)           Benefits.  Executive
shall have one year from his last day of employment to exercise any vested but
unexercised stock options.

     

    (d)           Definition of
Cause.  For purposes of this Agreement, Cause shall be defined
as (i) Executive’s conviction, pleading guilty or no contest with respect to a
felony involving dishonesty or moral turpitude, (ii) Executive’s commission of
any act of theft, fraud, dishonesty, or falsification of any employment or
Company records (iii) Executive’s refusal without proper legal reason to
substantially perform the duties and responsibilities required of Executive, or
(iv) any material breach by Executive of any material term of this Agreement
and/or of Executive’s fiduciary duties to the Company.

     

    6.           Executive’s Duties Upon
Termination.

    

    (a)         Cooperation.  After
notice of termination, Executive shall, at the Company’s expense and subject to
Executive’s professional availability, cooperate with the Company, as reasonably
requested by the Company, to effect a transition of Executive’s responsibilities
and to ensure that the Company is aware of all matters being handled by
Executive.

    

    (b)         Return of Company
Property.  Within seven days of the termination of Executive’s
employment under this Agreement for any reason, Executive will return all
Company property in Executive’s possession to the Company.

     

    7.           Assignment and
Transfer.  Executive’s rights and obligations under this
Agreement shall not be transferable by assignment or otherwise, and any
purported assignment, transfer or delegation thereof shall be
void.  This Agreement shall be assignable by the Company and inure to
the benefit of, and be binding upon and enforceable by, any purchaser of
substantially all of Company’s assets, any corporate successor to Company or any
assignee thereof; provided however that such assignee assumes in writing the
Company’s obligations thereunder.

     

    8.           No Inconsistent
Obligations.  This Agreement shall represent the sole agreement
with Company as to the subject matter herein, and Executive has no material
obligations, legal or otherwise, inconsistent with the terms of this Agreement
or with Executive undertaking employment with the Company.  Executive
represents and warrants that Executive has the right and power to enter into
this Agreement, to perform Executive’s obligations hereunder and by entering
into this Agreement and performing Executive’s obligations hereunder Executive
is not in conflict with any agreement with any third party.  The
Company represents and warrants that the Company has all requisite corporate
power and authority to execute and deliver this Agreement and to perform its
obligations hereunder.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    9.           Miscellaneous.

     

    (a)           Survival.  The
provisions of this Agreement, including, without limitation Paragraphs 9(c)
(Arbitration), contained herein shall survive the termination of
employment.

     

    (b)           Governing Law. This
Agreement shall be governed by and construed in accordance with the laws of the
State of Delaware without regard to conflict of law principles.

     

    (c)           Arbitration
.  With the exception of any claims for workers compensation,
unemployment insurance, claims before any governmental administrative agencies
or claims related to the National Labor Relations Act, any controversy relating
to this Agreement or Executive’s employment shall be settled by binding
arbitration according to the American Arbitration Association’s Employment
Arbitration Rules and Mediation Procedures (available at http://www.adr.org) and
subject to the Federal Arbitration Act and the Federal Rules of Civil Procedure
(including their mandatory and permission rights to discovery.)  This
provision to arbitrate applies to both Company and Executive.  Such
arbitration shall be presided over by a single arbitrator in
Delaware.  Such binding arbitration is applicable to any and all
claims under state and federal employment related statutes including, without
limitation, the Fair Employment and Housing Act, the Age Discrimination in
Employment Act, the Family Medical Leave Act, the Title VII of the Civil Rights
Act and any similar statute law or regulation of the state of Delaware, as well
as any claims related to a claimed breach of this Agreement.  The
Company shall bear all costs uniquely associated with the arbitration process,
including the arbitrator’s fees where required by law.  The arbitrator
shall have the authority to award any damages authorized by law, including,
without limitation, costs and attorneys’ fees.  The Parties agree to
execute all documents necessary to keep the documents, findings, and award, if
any, of the arbitration confidential, including, without limitation, execution
of a protective order.

     

    (d)           Amendment. This
Agreement may be amended only by a writing signed by Executive and by a duly
authorized representative of the Company (other than Executive) as approved by
the Board.

     

    (e)            Severability. If any
term, provision, covenant or condition of this Agreement, or the application
thereof to any person, place or circumstance, shall be held to be invalid,
unenforceable or void, the remainder of this Agreement and such term, provision,
covenant or condition as applied to other persons, places and circumstances
shall remain in full force and effect, provided however, that any such provision
found invalid, unenforceable or void shall be deemed amended only to the extent
necessary and shall preserve the intent of the parties hereto.

     

    (f)              Construction. The
headings and captions of this Agreement are provided for convenience only and
are intended to have no effect in construing or interpreting this
Agreement.  The language in all parts of this Agreement shall be in
all cases construed according to its fair meaning and not strictly for or
against the Company or Executive.

     

    (g)              Nonwaiver. No failure
or neglect of either party hereto in any instance to exercise any right, power
or privilege hereunder or under law shall constitute a waiver of any other
right, power or privilege or of the same right, power or privilege in any other
instance. All waivers by either party hereto must be contained in a written
instrument signed by the party to be charged and, in the case of the Company, by
an officer of the Company (other than Executive) or other person duly authorized
by the Company.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    (h)              I.R.C.
409A.  Unless otherwise expressly provided, any payment of
compensation by Company to Executive, whether pursuant to this Agreement or
otherwise, shall be made within two and one-half months (21⁄2 months) after the
later of the end of the calendar year of the Company’s fiscal year in which
Executive’s right to such payment vests (i.e., is not subject to a “substantial
risk of forfeiture” for purposes of Code Section 409A of the Internal Revenue
Code of 1986, as amended (“Code”)).  To the extent that any severance
payments come within the definition of “involuntary severance” under Code
Section 409A, such amounts up to the lesser of two times the Executive’s annual
compensation for the year preceding the year of termination or two times the
401(a)(17) limit for the year of termination, shall be excluded from “deferred
compensation” as allowed under Code Section 409A, and shall not be subject to
the following Code Section 409A compliance requirements.  All payments
of “nonqualified deferred compensation” (within the meaning of Section 409A) are
intended to comply with the requirements of Code Section 409A, and shall be
interpreted in accordance therewith. Neither party individually or in
combination may accelerate any such deferred payment, except in compliance with
Code Section 409A, and no amount shall be paid prior to the earliest date on
which it is permitted to be paid under Code Section 409A.  In the
event that Executive is determined to be a “key employee” (as defined in Code
Section 416(i) (without regard to paragraph (5) thereof)) of Company at a time
when its stock is deemed to be publicly traded on an established securities
market, payments determined to be “nonqualified deferred compensation” payable
following termination of employment shall be made no earlier than the earlier of
(i) the last day of the sixth (6th) complete calendar month following such
termination of employment, or (ii) Executive’s death, consistent with the
provisions of Code Section 409A.  Any payment delayed by reason of the
prior sentence shall be paid out in a single lump sum at the end of such
required delay period in order to catch up to the original payment
schedule.   Notwithstanding anything herein to the contrary, no
amendment may be made to this Agreement if it would cause the Agreement or any
payment hereunder not to be in compliance with Code Section 409A.

     

    (i)              Notices. All notices,
requests, demands, claims and other communications hereunder will be in
writing.  Any notice, request, demand, claim or other communication
hereunder will be deemed duly given as of the day such information is sent by
registered or certified mail, return receipt requested, postage prepaid, and
addressed to the intended recipient as set forth below:

    

    If to
Executive to the address set forth on Exhibit C hereto.

    

    With a
copy to:

    

    If to
Company:

    Peerless
Systems Corporation

    Attn:  Chairman
of the Compensation Committee

    2361
Rosecrans Avenue, Suite 440

    El
Segundo, CA 90245

    Tel:
(310) 536-0908

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    With a
copy to:

    Peerless
Systems Corporation

    Attn:  General
Counsel

    2361
Rosecrans Avenue, Suite 440

    El
Segundo, CA 90245

    Tel:
(310) 536-0908

    

    Any party
may send any notice, request, demand, claim, or other communication hereunder to
the intended recipient at the address set forth above using any other means
(including personal delivery with receipt acknowledged, expedited courier,
messenger service, telecopy, telex, or electronic mail), but no such notice,
request, demand, claim, or other communication will be deemed to have been duly
given unless and until it is received by the intended recipient (which shall be
evidenced by fax or e-mail confirmation, or registered receipt, or declaration
via a messenger).  Any Party may change the address to which notices,
requests, demands, claims, and other communications hereunder are to be
delivered by giving the other Parties notice in the manner herein set
forth.

     

    (i)           Assistance in
Litigation. Executive shall, during and after termination of employment,
upon reasonable notice, furnish such information and proper assistance to the
Company as may reasonably be required by the Company in connection with any
litigation in which it or any of its subsidiaries or affiliates is, or may
become a party; provided, however, that such assistance following termination
shall be furnished at mutually agreeable times and for mutually agreeable
compensation.

     

    (j)           Executive
Acknowledgment. The undersigned Executive hereby acknowledges that he has
had the option to consult legal counsel in regard to this Agreement, that he has
read and understands this Agreement, that he is fully aware of its legal effect,
and that he has entered into it freely and voluntarily and based on his own
judgment and not on any representations or promises other than those contained
in this Agreement (k)Counterparts. This
Agreement may be executed in two (2) or more counterparts, each of which will be
deemed an original and all of which together will constitute one and the same
instrument.

     

    (l)           Entire Agreement.
This Agreement and the documents referenced herein and executed herewith contain
the entire agreement and understanding between the Parties hereto and supersede
any prior or contemporaneous written or oral agreements, representations and
warranties between them respecting the subject matter hereof.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

    IN
WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the
date set forth above.

     

    
      	
              Peerless
      Systems Corporation, Inc. (“Company”)

            
	 
	
              By: 
      /s/ Steven M.
      Bathgate

              Name:  Steven
      M. Bathgate

              Title:
      Director and Authorized Signatory

            
	 
	 
	
              Dated:  August 26,
  2010

            
	 
	
              Timothy
      Brog (“Executive”)

            
	 
      
	
              Dated: 
      August 26,
      2010

            

    

     

    
      
         

      

      
        8

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