Document:

Exhibit 10.1

 

Collaborative Research Agreement

 

New
Horizons Diagnostic (“New Horizons”), a Maryland corporation with an address at 9110
Red Branch Road, Columbia, Maryland 21045, and Power3
Medical Products, Inc. (“Power3”), with an address of 3400 Research
Forest Drive, The Woodlands, TX 77381, enter into this Collaborative Research
Agreement (“Agreement”) for the development and evaluation of a diagnostic tool
for Neurodegenerative Disease.  This
Agreement is effective as of March 21, 2005 (“Effective Date”).

 

1.             SCOPE
OF WORK.

 

1.1           Within
60 days after the Effective Date, Power3 and New Horizons will develop an
agreed upon time schedule and budget for accomplishing the Schedule of Work set
forth under this Section and in Exhibit A. 
The time schedule and budget will clearly define the obligations of each
party and the expenses to be encumbered by each party.

 

1.2           As
soon as practicable after the Effective Date, Power3 will disclose to New
Horizons, the identity of protein biomarkers for neurological disease and
related information as set forth under Phase I of Exhibit A.

 

1.3           Technical
personnel of Power3 and New Horizons will meet to determine the most
efficacious way to pursue the expression of the protein biomarkers as set forth
under Phase III of Exhibit A.  Power3 and
New Horizons shall work together to select which biomarkers to pursue first and
to achieve milligram quantities of those protein biomarkers.

 

1.4           Once
sufficient quantities of a protein biomarker become available, New Horizons
will initiate the production of monoclonal and polyclonal antibodies to that
biomarker as set forth in Phase IV of Exhibit A.

 

1.5           The
technical personnel of Power3 and New Horizons will determine which biomarker
antibodies to include in one or more diagnostic assays.  Once the antibodies to be included in a
diagnostic assay become available, New Horizons and Power3 will initiate the
development and validation of a diagnostic assay for a neurodegenerative or
other disease pursuant to Phase V of Exhibit A.

 

1.6           Technical
personnel of Power3 will be available on a reasonable basis during the term of
this Agreement to consult with New Horizons and provide assistance to New
Horizons in the performance of Phases II, III, IV and V.

 

1.7           New
Horizons Diagnostics will co-develop with Power3 a test comparable to the
standard serum test now run from a whole blood spot card.

 

1.8           New
Horizons Diagnostics will assist in expanding the testing platform currently
developed (and future platforms) into other geographical locations where it has
influences.

 

1

 

1.9           New
Horizons Diagnostics will assist Power3 to raise the required capital
(government or private) to enable the validation of the technology and test
development.

 

2.             CONFIDENTIALITY.  For the purposes of this Agreement, the
term “Information” shall mean all information provided by either party to the
other for the purposes of fulfilling this Agreement which the disclosing party
shall deliver to the receiving party, marked “Confidential”, and all oral
material which the disclosing party declares to be confidential and confirms
such declaration in writing within thirty (30) days of disclosure.  The receiving party agrees to maintain the
Information in confidence with the same degree of care it holds its own
confidential information.  The receiving
party will not use the Information except for the work described in Exhibit A
and Section 1 of this Agreement.  The
receiving party will disclose the Information only to its officers and employees
directly concerned with the work, but will neither disclose Information to any
third party nor use the Information for any other purpose.  All obligations of the receiving party under
this Agreement shall survive the termination of this Agreement for a period of
five (5) years.

 

3.             EXCEPTIONS
TO CONFIDENTIALITY.  The receiving
party’s obligation of nondisclosure and the limitations upon the right to use
the Information shall not apply to the extent that the receiving party can
demonstrate by written documentation that the Information: (a) was in the
possession of receiving party prior to the time of disclosure; or (b) is or
becomes public knowledge through no fault or omission of receiving party; or
(c) is obtained by receiving party from a third party under no obligation of
confidentiality to the disclosing party; or (d) is ordered to be disclosed by a
court of law.

 

4.             CONSIDERATION.    New Horizons Diagnostics (NHD) and
Power3 will work together to achieve the goals of Phases II, III, IV and V of
Exhibit A for the development of at least one successful diagnostic kit for
monitoring the presence of neurological and/or other diseases.  In the event that the goals of Phases II,
III, IV and V are achieved, NHD will be compensated in any of the following fashions:

 

1.     NHD
will receive a business agreement to manufacture at least one key component of
any diagnostic kit developed under this Agreement.

2.     NHD
will receive royalties on the sale of any diagnostic kit developed under this
Agreement.

3.     NHD
will form a joint venture with Power3 for the commercialization of at least one
diagnostic kit developed under this Agreement.

4.     NHD
will receive a reasonable percentage of any cash consideration that Power3
receives from a third party for the technology and/or diagnostic kit developed
under this Agreement.

 

NHD realizes that it is too early to commit to precise numbers for the
above considerations.  Both parties agree
to be reasonable in assessing these.  If
there is any disagreement they agree to arbitration by a mutually acceptable
third party.

 

5.             DISCLAIMER
OF WARRANTIES.  THE INFORMATION THAT NEW
HORIZONS SHALL RECEIVE, HAVE ACCESS TO, AND/OR BECOME FAMILIAR

 

2

 

WITH PURSUANT TO THIS AGREEMENT IS PROVIDED “AS
IS” AND “WHERE IS.”  THERE ARE NO
REPRESENTATIONS OR WARRANTIES BY POWER3, EXPRESSED OR IMPLIED, INCLUDING,
WITHOUT LIMITATION, IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE.

 

6.             PUBLICITY.  No press releases or other statements, intended for
use in the public or private media, in connection with this Agreement shall be
made by Power3 or New Horizons without the prior written consent of the other
Party.  If either Party is required by
law or governmental regulation to describe its relationship to the other, it
shall promptly give the other Party notice with a copy of any disclosure it
proposes to make.  This does not include
internal documents available to the public, which identify the existence of
this agreement.

 

7.             INDEMNIFICATION.  Each
Party shall defend, indemnify and hold harmless the other Party, its employees,
directors, trustees and officers (“Indemnities”), from and against any and all
liability which an Indemnitee may incur by reason of the other Party’s use of
the Information or results of the work, except to the extent arising from the
negligence or willful malfeasance of the Indemnities.

 

8.             ENTIRE AGREEMENT. 
This Agreement sets forth the entire agreement between Power3 and New
Horizons as to its subject matter.  None
of the terms of this agreement shall be amended except in a writing signed by
both parties.

 

9.             BREACH.  If either
party breaches this agreement, the other may terminate it if the breaching
party does not cure the breach within thirty (30) days of written notice of the
same.  The right of termination shall be
in addition to any other rights the terminating party may have, at law or
equity, pursuant to this Agreement.

 

10.          COMPLIANCE WITH LAWS. 
Both New Horizons and Power3 shall comply in all material respects with
the requirements of all applicable laws, rules, regulations and orders of any
government authority in handling or disposing of biological reagents.

 

11.          CHOICE OF LAW.  This
Agreement shall be construed in accordance with the laws of the State of Texas.

 

3

 

IN WITNESS WHEREOF, the parties hereto have caused their duly
authorized representatives to execute this Agreement.

 

 

	
  Agreed:

  	
  Agreed:

  
	
   

  	
   

  
	
  Power3 Medical Products, Inc.

  	
  New Horizons Diagnostic 

  
	
  Corporation

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Steven B. Rash

  	
   

  	
  By:

  	
  /s/ Lawrence Loomis

  	
   

  
	
  Name:

  	
      Steven B. Rash

  	
   

  	
  Name:

  	
     Lawrence Loomis

  	
   

  
	
  Title:

  	
        Chairman/CEO

  	
   

  	
  Title:

  	
       President

  	
   

  
	
  Date:

  	
        March 21, 2005

  	
   

  	
  Date:

  	
       March 21, 2005

  	
   

  
														

 

4

 

Exhibit A

Scope of Work

 

Phase I                   Biomarker Identification

1.             Biomarker
Identification

2.             Accession Number in
NCBI or Swiss Database

3.             Protein and/or DNA
sequence

4.             Clinical and Patient
data related to the Biomarker

 

Phase II                 Development
of Diagnostic Test based upon current technology

1.             NHD will develop, in
conjunction with Power3 a test device and procedure that will enable Power3 to
get results from a whole blood spot (on a card) comparable to their current
results obtained from patient serum.

 

Phase III                Protein Expression of Non-Commercially
Available Biomarkers

1.             Construct cDNA clone

2.             Express at least 2 mg
protein for injection

 

Phase IV                Antibody Development and Evaluation

1.             Determine Antibody
Specifications (specificity, affinity, cross-reactivity, etc.)

1.             Immunize Host

2.             Produce Antibodies

3.             Construct Antibody
Libraries

4.             Evaluate Antibodies

5.             Deliver Antibodies
that meet Specifications

 

Phase V.                Diagnostic Kit Development

1.             Identify Antibodies
for Differential Diagnosis

2.             Design and Develop
Diagnostic Kit

3.             Validation of
Diagnostic Kit

 

5Exhibit 10.1

 

SEPARATION AGREEMENT

 

This agreement is
between InfoNow Corporation, a Delaware corporation (“InfoNow”) and Michael W.
Johnson (“Johnson”), and shall, except as provided in paragraph 14(b) below, be
effective as of March 4, 2005 (the “Effective Date”).

 

Recitals

 

1.                                       Johnson
had been Chief Executive Officer, President and Chairman of the Board of
InfoNow until his separation from employment on March 4, 2005.  Johnson remains a director on InfoNow’s Board
of Directors.

 

2.                                       Johnson
was employed by InfoNow until March 4, 2005 pursuant to an employment agreement
dated April 15, 2000, as amended July 27, 2001, February 26, 2002 and December
19, 2003 (collectively the “Employment Agreement”).

 

3.                                       InfoNow
and Johnson desire fully and completely to resolve all differences between
them, including without limitation all matters that were or could have been
raised relating to Johnson’s employment with InfoNow.

 

Agreement

 

In consideration
of the conditions, covenants and agreements set forth below, the parties agree
as follows:

 

1.                                      Payment.

 

(a)                                  Pursuant to the Employment
Agreement, the following terms and conditions governing the relationship
between InfoNow and Johnson shall be in effect and Johnson is entitled to the
payments and benefits set forth in paragraphs 1(a)(i)-(vii) regardless of
whether or not he signs this agreement:

 

i.                                          Johnson is entitled to receive the
equivalent of his annual base salary of two hundred and fifty thousand dollars
($250,000) (“Base Salary”) for a period of fifteen months ending on June 4,
2006 (the “Payment Period”). Johnson shall continue to receive semi-monthly
payments of his Base Salary until September 30, 2005. On the next regularly
scheduled payroll date following September 30, 2005, Johnson shall receive a
final lump sum payment equal to eight months and four days of his Base
Salary.  Total payments to Johnson under
this Section 1(a)(i) will be three hundred and twelve thousand, five hundred
dollars ($312,500).  Except as expressly
set forth herein, Johnson agrees he will receive no additional severance or
other compensation from InfoNow with respect to his employment with
InfoNow.  The payment under this
paragraph shall be subject to standard payroll withholdings.  InfoNow will issue an I.R.S. Form W-2
reporting this payment to Johnson.

 

ii.                                       During the Payment Period, Johnson
shall not be paid any fees in connection with his continuing service on
InfoNow’s Board of Directors, provided however, that

 

 

Johnson
shall remain eligible to participate in any other benefits provided to
directors on InfoNow’s Board of Directors, including but not limited to,
D&O insurance coverage, expense reimbursement and stock option grants.  In the event Johnson provides services to a
competitor of InfoNow, as determined by InfoNow’s Board of Directors in its
reasonable discretion, Johnson shall immediately resign from the Board of
Directors of InfoNow.

 

iii.                                    During the Payment Period, InfoNow
shall provide to Johnson benefits at levels substantially equivalent to those
in place before the Effective Date, including but not limited to, continued
health benefits pursuant to COBRA and document assistance with SEC filing
obligations, e.g. Form 4s and Schedule 13D filings.

 

iv.                                   Johnson previously purchased a
$500,000 (five hundred thousand dollar) term life insurance policy, the
proceeds of which are be payable to Johnson’s estate in the event of his
death.  Pursuant to the terms of the
Employment Agreement, Johnson shall purchase an additional  $1,000,000 (one million dollar) term life
insurance policy to be effective during the Payment Period, the proceeds of
which will be payable to Johnson’s estate in the event of his death
(collectively, the “Policies”).  Johnson
shall consult with InfoNow prior to the purchase of the $1,000,000 (one million
dollar) term life Policy to insure that such Policy is purchased at a
competitive rate.  InfoNow shall pay the
premiums for the Policies only throughout the Payment Period.  To the extent required, InfoNow will issue an
I.R.S. Form W-2 to Johnson reporting payments for the Policies.

 

v.                                      Johnson shall have 30 days from the
Effective Date to provide InfoNow with appropriate receipts and documentation
reflecting unreimbursed expenses incurred by Johnson ordinarily reimbursed in
connection with his employment by InfoNow. 
Upon the receipt of such appropriate receipts and documentation, InfoNow
shall reimburse Johnson for expenses reasonably and necessarily incurred in
connection with InfoNow’s business, in an amount not to exceed the amount of
accrued and unpaid expenses reflected in the books and records of InfoNow and
reimburseable expenses incurred in the first quarter of 2005, in the
approximate amount of $40,000 (forty thousand dollars).  Such payment to Johnson shall be characterized
as reimbursement of expenses, and shall not be subject to standard payroll
withholdings.  Johnson shall sign a
receipt for any reimbursement check before tendering it for payment, and agrees
that upon receipt of this payment he will have no further entitlement to
reimbursement or payment of any expenses incurred before the Effective Date.

 

vi.                                   All options to purchase common stock
of InfoNow held by Johnson shall be exercisable in accordance with the terms
and conditions of the applicable option plans and option agreements relating to
such options, provided however, that Johnson and InfoNow recognize and agree
that Johnson’s separation from employment at InfoNow was a “termination for
other than cause” as those terms are defined in the applicable stock option
plans and option agreements for purposes of determining the term of the
exercise period of such options.

 

vii.                                Within five (5) days after the
execution of this agreement by Johnson, he shall be paid his accrued and unused
vacation, in the amount of $28,845.60 (twenty eight thousand eight hundred
forty-five dollars and sixty cents), subject to standard payroll

 

 

deductions.  This payment shall satisfy in full InfoNow’s
obligations with respect to Johnson’s accrued vacation.

 

viii.                             Johnson shall be allowed to keep his
company-purchased laptop computer, associated software and computer devices and
cellular telephone.  The payment by
InfoNow for Johnson’s cellular telephone service shall cease immediately and
Johnson shall be solely responsible for all charges related to the use of his
cellular telephone from and after the Effective Date.

 

ix.                                     At InfoNow’s sole discretion,
Johnson shall be allowed to keep his InfoNow voicemail and e-mail accounts for
a period of one year commencing on the Effective Date, subject to the
applicable terms of use for corporate network security.  Should InfoNow determine to terminate this
benefit to Johnson, InfoNow shall provide ten (10) days prior notice to Johnson
and may terminate this benefit thereafter.

 

x.                                        Johnson shall be allowed to attend
any Young President’s Organization sessions for which InfoNow has paid
non-refundable expenses on behalf of Johnson, and Johnson shall provide a
report to InfoNow’s Board of Directors regarding the content of such sessions
in consideration for being allowed to attend such sessions.

 

(b)                                 Johnson agrees to pay all taxes
relating to or arising from any payment made pursuant to this agreement.  If any taxes, interest or penalties are
assessed against InfoNow in connection with any payment made pursuant to this
agreement, or based on InfoNow’s failure to withhold any sum from any payment
made pursuant to this agreement, InfoNow shall give notice to Johnson.  Upon receiving that notice, Johnson shall
either pay to InfoNow the total amount of the assessment, including all taxes,
interest and penalties owed, or defend against the assessment, at Johnson’s
sole expense.  If any assessment is
imposed on InfoNow, Johnson shall immediately reimburse InfoNow for all taxes,
interest or penalties paid by InfoNow as a result of the assessment.  InfoNow shall have no obligation to contest
the validity of any such assessment or to reimburse Johnson for any amounts,
including costs and attorneys’ fees, that he incurs in contesting the
assessment.

 

2.                                      Release.

 

(a)                                  Johnson,
for himself, his heirs, personal representatives and assigns, and any other
person or entity that could or might act on behalf of him, including, without
limitation, his counsel (all of whom are collectively referred to as
“Releasers”), hereby fully and forever release and discharge InfoNow, its
present and future affiliates and subsidiaries, and each of their past, present
and future officers, directors, employees, shareholders, independent
contractors, attorneys, insurers and any and all other persons or entities that
are now or may become liable to any Releaser due to any Releasee’s act or
omission, all of whom are collectively referred to as “Releasees,” of and from
any and all actions, causes of action, claims, demands, costs and expenses,
including attorneys’ fees, of every kind and nature whatsoever, in law or in
equity, whether now known or unknown, that Releasers, or any person acting
under any of them, may now have, or claim at any future time to have, based in
whole or in part upon any act or omission occurring on or before the Effective
Date, without regard to present actual knowledge of such acts or omissions,
including specifically, but not by way of limitation, matters which may arise
at

 

 

common law, such as
breach of contract, express or implied, promissory estoppel, wrongful
discharge, tortious interference with contractual rights, infliction of
emotional distress, defamation, or under federal, state or local laws, such as
the Fair Labor Standards Act, the Employee Retirement Income Security Act, the
National Labor Relations Act, Title VII of the Civil Rights Act of 1964, the
Age Discrimination in Employment Act, the Rehabilitation Act of 1973, the Equal
Pay Act, the Americans with Disabilities Act, and the Colorado Civil Rights
Act; EXCEPT for the rights and obligations created by this agreement; AND
EXCEPT for any vested rights under any pension, retirement, profit sharing or
similar plan.  Johnson hereby warrants
that he has not assigned or transferred to any person any portion of any claim
which is released, waived and discharged above. 
Johnson further states and agrees that he has not experienced any
illness, injury, or disability compensable or recoverable under the worker’s
compensation laws of any state, and Johnson agrees that he will not file a
worker’s compensation claim asserting the existence of any such illness,
injury, or disability.  Johnson has
specifically consulted with his attorneys with respect to the agreements,
representations, and declarations set forth in the previous sentence.  Johnson understands and agrees that by
signing this agreement he is giving up his right to bring any legal claim
against InfoNow concerning, directly or indirectly, Johnson’s employment
relationship with InfoNow, including his separation from employment.  Johnson agrees that this legal release is
intended to be interpreted in the broadest possible manner in favor of InfoNow,
to include all actual or potential legal claims that Johnson may have against
Infonow, except as specifically provided otherwise in this agreement.

 

(b)                                 InfoNow,
for itself, its affiliates, and any other person or entity that could or might
act on behalf of it including, without limitation, its attorneys (all of whom
are collectively referred to as “InfoNow Releasers”), hereby fully and forever
release and discharge Johnson, his heirs, representatives, assigns, attorneys,
and any and all other persons or entities that are now or may become liable to
any InfoNow Releaser on account of Johnson’s employment with InfoNow or
separation therefrom, all of whom are collectively referred to as “InfoNow
Releasees,” of and from any and all actions, causes of action, claims, demands,
costs and expenses, including attorneys’ fees, of every kind and nature
whatsoever, in law or in equity, whether now known or unknown, that InfoNow
Releasers, or any person acting under any of them, may now have, or claim at
any future time to have, based in whole or in part upon any act or omission
occurring before the Effective Date, without regard to present actual knowledge
of such acts or omissions; EXCEPT for all actions, causes of action, claims,
demands, and costs and expenses for which Johnson would not be indemnified by
InfoNow in his capacity as an officer or a director under InfoNow’s
indemnification policies; AND EXCEPT as specifically provided otherwise in this
agreement.  InfoNow understands and
agrees that by signing this agreement, it is giving up its right to bring any
legal claim against Johnson concerning, directly or indirectly, Johnson’s past
employment relationship with InfoNow as President and Chief Executive Officer,
except as specifically provided otherwise in this agreement.  InfoNow agrees that this legal release is
intended to be interpreted in the broadest possible manner in favor of Johnson,
to include all actual or potential legal claims that InfoNow may have against
Johnson through the Effective Date, except as specifically provided otherwise
in this agreement.

 

3.                                      Unemployment Compensation.  InfoNow shall not oppose any application by
Johnson for benefits under Colorado’s Unemployment Compensation Act.

 

 

4.                                      Trade Secrets and Confidential Business Information.

 

(a)                                  Johnson
shall continue to maintain the confidentiality of all documents, trade secrets,
inventions, software algorithms and other confidential and proprietary
information (“Confidential Information”) which consists of information known by
Johnson as a consequence of his employment with InfoNow and continue to comply
with all terms and conditions of the Non-Disclosure and Confidentiality Agreement
between Johnson and InfoNow.

 

(b)                                 Covenant
Not to Interfere.

 

i.                                          For
a period of twelve (12) months following the Effective Date, Johnson shall not
(i) solicit any employee of InfoNow or of any of its affiliates to leave the
employ of InfoNow or any affiliate or (ii) interfere with any transaction in
which InfoNow or any of its affiliates was involved during the term of his
employment or service as a director of InfoNow.

 

ii.                                       Johnson
acknowledges that through his employment with InfoNow and service as a director
of InfoNow he has acquired and will acquire access to information suited to
immediate application by a business in competition with InfoNow. Accordingly,
Johnson considers the foregoing restrictions on his future employment or
business activities in all respects reasonable.

 

(c)                                  Johnson
acknowledges that upon a breach of any obligation under this agreement, InfoNow
may suffer immediate and irreparable harm and damage for which money alone
cannot fully compensate InfoNow.  Upon a
breach by Johnson of any of the provisions of paragraphs 4(a) or 4(b) of this
agreement, InfoNow may be entitled to an injunction restraining Johnson from
such breach.  Nothing herein shall be
construed as prohibiting InfoNow from pursuing any other remedies for such breach
or threatened breach, including recovery of damages from Johnson.

 

(d)                               Johnson
warrants and represents that he will return or destroy any and all documents or
other records containing or referring to Confidential Information that were
prepared by or provided to Johnson during the term of his employment by InfoNow
and any and all documents and other property of InfoNow constituting a trade
secret or other confidential research, development or commercial information in
his possession, custody or control and acknowledges that he has not retained
any copies or originals of any such property of InfoNow, except for such
Confidential information, documents and other property necessary for Johnson’s
service as a member of InfoNow’s Board of Directors.

 

5.                                      Attorneys’ Fees.  Releasers understand and agree that the
compensation described in paragraph 1, above, is in complete satisfaction of
any right that Releasers or their counsel may have, or claim to have, to
recover attorneys’ fees from any Releasees.

 

6.                                      Indemnification.  Johnson shall continue to be
entitled to coverage and participation in InfoNow’s Directors’ and
Officers’  Liability Insurance Policy for
so long as he remains on InfoNow’s Board of Directors and InfoNow shall
continue to provide indemnification to Johnson to the extent provided in its
Certificate of Incorporation and Bylaws

 

 

for
any acts or omissions that occurred in the course and scope of Johnson’s
employment with InfoNow.

 

7.                                      Denial of Liability.  The parties understand and agree that this
agreement shall not be construed as an admission of liability on the part of
any person or entity, liability being expressly denied.

 

8.                                      Authority and Nonassignment.  The parties warrant that each has authority
to enter into this agreement, and that neither has transferred to any other
person or entity any claim, action, demand, or cause of action released by this
agreement.

 

9.                                      Confidentiality.   The provisions of this Agreement shall be
held in strictest confidence by Johnson and InfoNow and shall not be publicized
or disclosed in any manner whatsoever; provided, however, that:  (a) Johnson may disclose this Agreement to
his immediate family; (b) the parties may disclose this Agreement in confidence
to their respective attorneys, accountants, auditors, tax preparers, and
financial advisors; (c) InfoNow may disclose this Agreement as necessary to
fulfill standard or legally required corporate reporting or disclosure
requirements (which the parties agree requires disclosure of this agreement in
InfoNow’s Form 10-KSB to be filed for the period ended December 31, 2004); and
(d) the parties may disclose this Agreement insofar as such disclosure may be
necessary to enforce its terms or as otherwise required by law.

 

10.                               Covenant of Non-Disparagement.

 

(a)                                  Johnson covenants never to disparage
or speak ill of InfoNow or any InfoNow product or service, or of any past or
present officer or director of InfoNow, nor shall Johnson at any time harass or
behave unprofessionally toward any past or present InfoNow officer or director.

 

(b)                                 InfoNow covenants that no InfoNow
officer or director shall, while employed by or while serving on the board of
directors of InfoNow, disparage or speak ill of Johnson, nor shall any such
person, while employed by or while serving on the board of directors of
InfoNow, at any time harass or behave unprofessionally toward Johnson.

 

11.                               Covenant of Cooperation in Litigation.  Johnson acknowledges that because of his
position with InfoNow, he may possess information that may be relevant to or discoverable
in litigation in which InfoNow is involved or may in the future be
involved.  Johnson agrees that he shall
testify truthfully in connection with any such litigation, shall cooperate with
InfoNow in connection with such litigation, and that his duty of cooperation
shall include an obligation to meet with InfoNow representatives and/or counsel
concerning such litigation for such purposes, and at such times and places, as
InfoNow deems necessary, in its sole discretion, and to appear for deposition
upon InfoNow’s request and without a subpoena. 
Johnson shall not be entitled to any compensation in connection with his
duty of cooperation, except that InfoNow shall reimburse Johnson for reasonable
out-of-pocket expenses that he incurs in honoring his obligation of
cooperation.

 

12.                               Additional Warranty and Acknowledgment.  The parties warrant and represent that they
have been offered no promise or inducement except as expressly provided in this

 

 

agreement, and that this
agreement is not in violation of or in conflict with any other agreement of
either party.

 

13.                               Survival of Covenants and Warranties.  All covenants and warranties contained in
this agreement are contractual and shall survive the closing of this agreement.

 

14.                               Acknowledgment of Rights Under the Older Worker’s
Benefits Protection Act.

 

(a)                                  Johnson agrees and acknowledges that
he: (i) understands the language used in this agreement and the agreement’s
legal effect; (ii) understands that by signing this agreement he is giving up
the right to sue InfoNow for age discrimination; (iii) will receive
compensation under this agreement to which he would not have been entitled
without signing this agreement; (iv) has been advised by InfoNow to consult
with an attorney before signing this agreement; and (v) was given no less than
twenty-one days to consider whether to sign this agreement.

 

(b)                                 For a period of seven days after the
Effective Date, Johnson may, in his sole discretion, rescind this agreement, by
delivering a written notice of recision to InfoNow.  If Johnson rescinds this agreement within
seven calendar days after the date hereof, this agreement shall be void, all
actions taken pursuant to this agreement shall be reversed, and neither this
agreement nor the fact of or circumstances surrounding its execution shall be
admissible for any purpose whatsoever in any proceeding between the parties,
except in connection with a claim or defense involving the validity or
effective rescission of this agreement. 
If Johnson does not rescind this agreement within seven calendar days
after the date hereof, this agreement shall become final and binding and shall
be irrevocable.

 

15.                               Miscellaneous.

 

(a)                                 Successors
and Assigns.  This agreement shall be binding in all
respects upon, and shall inure to the benefit of, the parties’ heirs,
successors and assigns.

 

(b)                                 Governing
Law.  This agreement shall be governed by the
internal laws of the State of Colorado, irrespective of the choice of law rules
of any jurisdiction.

 

(c)                                  Severability. 
If any court of competent jurisdiction declares any provision of this
agreement invalid or unenforceable, the remainder of the agreement shall remain
fully enforceable.  To the extent that
any court concludes that any provision of this agreement is void or voidable,
the court shall reform such provision(s) to render the provision(s)
enforceable, but only to the extent absolutely necessary to render the
provision(s) enforceable.

 

(d)                                 Integration. 
Except as expressly provided herein, this agreement constitutes the
entire agreement of the parties and a complete merger of prior negotiations and
agreements.  This agreement terminates
and supercedes the Employment Agreement.

 

(e)                                  Modification. 
This agreement shall not be modified except in a writing signed by the
parties.

 

 

(f)                                    Waiver. 
No term or condition of this agreement shall be deemed to have been
waived, nor shall there be an estoppel against the enforcement of any provision
of this agreement, except by a writing signed by the party charged with the
waiver or estoppel.  No waiver of any
breach of this agreement shall be deemed a waiver of any later breach of the
same provision or any other provision of this agreement.

 

(g)                                 Headings. 
Headings are intended solely as a convenience and shall not control the
meaning or interpretation of any provision of this agreement.

 

(h)                                 Gender
and Number.  Pronouns contained in this agreement shall
apply equally to the feminine, neuter and masculine genders.  The singular shall include the plural, and
the plural shall include the singular.

 

(i)                                    Other
Agreements.  Each party shall promptly execute,
acknowledge and deliver any additional document or agreement that the other
party reasonably believes is necessary to carry out the purpose or effect of
this agreement.

 

(j)                                    Burden
of Proof.  Any party contesting the validity or
enforceability of any term of this agreement shall be required to prove by
clear and convincing evidence fraud, concealment, failure to disclose material
information, unconscionability, misrepresentation or mistake of fact or law.

 

(k)                                 Construction. 
The parties acknowledge that they and their respective counsel have
reviewed this agreement in its entirety and have had a full and fair
opportunity to negotiate its terms.  Each
party therefore waives all applicable rules of construction that any provision
of this agreement should be construed against its drafter, and agrees that all
provisions of the agreement shall be construed as a whole, according to the
fair meaning of the language used.

 

(l)                                    Disputes. 
Every dispute arising from or relating to this agreement shall be tried
only in the state or federal courts situated in the Denver, Colorado,
metropolitan area.  The parties consent
to venue in those courts, and agree that those courts shall have personal
jurisdiction over them in, and subject matter jurisdiction concerning, any such
action.

 

(m)                              Fees
and Costs.  In any action relating to or arising from
this agreement, or involving its application, the party substantially
prevailing shall recover from the other party the expenses incurred by the
prevailing party in connection with the action, including court costs and
reasonable attorneys’ fees.

 

(n)                                 Counterparts
and Telecopies.  This agreement may be executed in
counterparts, or by copies transmitted by telecopier, all of which shall be
given the same force and effect as the original.

 

[SIGNATURES
FOLLOW]

 

 

	
  MICHAEL W. JOHNSON

  	
   

  	
  INFONOW CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
    /s/ Michael W. Johnson

  	
   

  	
    /s/ Jeffrey Peotter

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  March 22, 2005

  	
   

  	
  By:

  	
  Jeffrey Peotter

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  As its:

  	
  Chairman of the Board

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
  March 22, 2005

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}]]