Document:

ex10j.htm

 

 

 

Exhibit 10.1

 

 

CONSULTING, CONFIDENTIALITY AND PROPRIETARY RIGHTS AGREEMENT

 

 

This Consulting, Confidentiality and Proprietary Rights Agreement ("Agreement") is entered into as of the 31st day of January, 2011 (the “Effective Date”) by and between Green Star Alternative Energy, Inc. (the “Company”), and Eric Stoppenhagen (“Consultant”).

 

 

WHEREAS, the Company desires to engage Consultant to provide certain services as set forth on Schedule attached hereto and as specified from time to time by the Company.

 

 

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

 

 

1. Engagement. The Company hereby engages Consultant to perform, those duties set forth in the Schedule attached hereto and such other duties as may be requested from time to time by the Board of Directors of the Company. Consultant hereby accepts such engagement upon the terms and subject to conditions set forth in this Agreement.

 

 

2. Compensation. For the services rendered by Consultant under this Agreement, the Company shall pay to Consultant the compensation specified in the Schedule which shall include travel time, subject to the terms and conditions set forth in this Agreement.

 

 

3. Term and Survivability. The term of this Agreement shall be for a period from the Effective Date to December 31, 2011. In addition, this Agreement may be terminated if either party materially fails to perform or comply with this Agreement or any material provision hereof. Termination shall be effective five (5) days after notice of such material failure to perform or comply with this Agreement or any material provision hereof to the defaulting party if the defaults have not been cured within such five (5) day period. In the event, Consultant is compelled to spend time as relates to his duties under this Agreement after the termination of this Agreement, the Consultant shall be paid at a rate of $350 per hour. Upon termination of this Agreement the following sections of this Agreement shall survive such termination: Sections 3, 5, 6, 7, 8, 10, 12 13 and 20.

 

 

4. Costs and Expenses of Consultant’s Performance. Except as set forth on the Schedule, all costs and expenses of Consultant’s performance hereunder shall be borne by the Consultant.

 

 

5. Taxes. As an independent contractor, Consultant acknowledges and agrees that it is solely responsible for the payment of any taxes and/or assessments imposed on account of the payment of compensation to, or the performance of services by Consultant pursuant to this Agreement, including, without limitation, any unemployment insurance tax, federal and state income taxes, federal Social Security (FICA) payments, and state disability insurance taxes. The Company shall not make any withholdings or payments of said taxes or assessments with respect to amounts paid to Consultant hereunder; provided, however, that if required by law or any governmental agency, the Company shall withhold such taxes or assessments from amounts due Consultant, and any such withholding shall be for Consultant's account and shall not be reimbursed by the Company to Consultant. Consultant expressly agrees to make all payments of such taxes, as and when the same may become due and payable with respect to the compensation earned under this Agreement.

 

 

6. Confidentiality. Consultant agrees that Consultant will not, except when required by applicable law or order of a court, during the term of this Agreement or thereafter, disclose directly or indirectly to any person or entity, or copy, reproduce or use, any Trade Secrets (as defined below) or Confidential Information (as defined below) or other information treated as confidential by the Company known, learned or acquired by the Consultant during the period of the Consultant's engagement by the Company. For purposes of this Agreement, "Confidential Information" shall mean any and all Trade Secrets, knowledge, data or know-how of the Company, any of its affiliates or of third parties in the possession of the Company or any of its affiliates, and any nonpublic technical, training, financial and/or business information treated as confidential by the Company or any of its affiliates, whether or not such information, knowledge, Trade Secret or data was conceived, originated, discovered or developed by Consultant hereunder. For purposes of this Agreement, "Trade Secrets" shall include, without limitation, any formula, concept, pattern, processes, designs, device, software, systems, list of customers, training manuals, marketing or sales or service plans, business plans, marketing plans, financial information, or compilation of information which is used in the Company's business or in the business of any of its affiliates. Any information of the Company or any of its affiliates which is not readily available to the public shall be considered to be a Trade Secret unless the Company advises Consultant in writing otherwise. Consultant acknowledges that all of the Confidential Information is proprietary to the Company and is a special, valuable and unique asset of the business of the Company, and that Consultant's past, present and future engagement by the Company has created, creates and will continue to create a relationship of confidence and trust between the Consultant and the Company with respect to the Confidential Information. Furthermore, Consultant shall immediately notify the Company of any information which comes to its attention which might indicate that there has been a loss of confidentiality with respect to the Confidential Information. In such event, Consultant shall take all reasonable steps within its power to limit the scope of such loss.

 

 

7. Return of the Company’s Proprietary Materials. Consultant agrees to deliver promptly to the Company on termination of this Agreement for whatever reason, or at any time the Company may so request, all documents, records, artwork, designs, data, drawings, flowcharts, listings, models, sketches, apparatus, notebooks, disks, notes, copies and similar repositories of Confidential Information and any other documents of a confidential nature belonging to the Company, including all copies, summaries, records, descriptions, modifications, drawings or adaptations of such materials which Consultant may then possess or have under its control. Concurrently with the return of such proprietary materials to the Company, Consultant agrees to deliver to the Company such further agreements and assurances to ensure the confidentiality of proprietary materials. Consultant further agrees that upon termination of this Agreement, Consultant's, employees, consultants, agents or independent contractors shall not retain any document, data or other material of any description containing any Confidential Information or proprietary materials of the Company.

 

 

8. Assignment of Proprietary Rights. Other than the Proprietary Rights listed on the Schedule attached hereto, if any, Consultant hereby assigns and transfers to the Company all right, title and interest that Consultant may have, if any, in and to all Proprietary Rights (whether or not patentable or copyrightable) made, conceived, developed, written or first reduced to practice by Consultant, whether solely or jointly with others, during the period of Consultant's engagement by the Company which relate in any manner to the actual or anticipated business or research and development of the Company, or result from or are suggested by any task assigned to Consultant or by any of the work Consultant has performed or may perform for the Company.

 

 

Consultant acknowledges and agrees that the Company shall have all right, title and interest in, among other items, all research information and all documentation or manuals related thereto that Consultant develops or prepares for the Company during the period of Consultant's engagement by the Company and that such work by Consultant shall be work made for hire and that the Company shall be the sole author thereof for all purposes under applicable copyright and other intellectual property laws. Other than the Proprietary Rights listed on the Schedule attached hereto, Consultant represents and covenants to the Company that there are no Proprietary Rights relating to the Company's business which were made by Consultant prior to Consultant's engagement by the Company. Consultant agrees promptly to disclose in writing to the Company all Proprietary Rights in order to permit the Company to claim rights to which it may be entitled under this Agreement. With respect to all Proprietary Rights which are assigned to the Company pursuant to this Section 8, Consultant will assist the Company in any reasonable manner to obtain for the Company's benefit patents and copyrights thereon in any and all jurisdictions as may be designated by the Company, and Consultant will execute, when requested, patent and copyright applications and assignments thereof to the Company, or other persons designated by the Company, and any other lawful documents deemed necessary by the Company to carry out the purposes of this Agreement. Consultant will further assist the Company in every way to enforce any patents, copyrights and other Proprietary Rights of the Company.

 

 

9. Trade Secrets of Others. Consultant represents to the Company that its performance of all the terms of this Agreement does not and will not breach any agreement to keep in confidence proprietary information or trade secrets acquired by Consultant in confidence or in trust prior to its engagement by the Company, and Consultant will not disclose to the Company, or induce the Company to use, any confidential or proprietary information or material belonging to others. Consultant agrees not to enter into any agreement, either written or oral, in conflict with this Agreement.

 

 

10. Other Obligations. Consultant acknowledges that the Company, from time to time, may have agreements with other persons which impose obligations or restrictions on the Company regarding proprietary rights made or developed during the course of work hereunder or regarding the confidential nature of such work. Consultant agrees to be bound by all such obligations and restrictions and to take all action necessary to discharge the obligations of the Company hereunder.

 

 

11. Independent Contractor. Consultant shall not be deemed to be an employee or agent of the Company for any purpose whatsoever. Consultant shall have the sole and exclusive control over its employees, consultants or independent contractors who provide services to the Company, and over the labor and employee relations policies and policies relating to wages, hours, working conditions or other conditions of its employees, consultants or independent contractors.

 

 

12. Non-Solicit. Consultant and the Company will not, during the term this Agreement and for one year thereafter, directly or indirectly (whether as an owner, partner, shareholder, agent, officer, director, employee, independent contractor, consultant, or otherwise) with or through any individual or entity: (i) employ, engage or solicit for employment any individual who is, or was at any time during the twelve-month period immediately prior to the termination of this Agreement for any reason, an employee of the other party, or otherwise seek to adversely influence or alter such individual's relationship with the other party; or (ii) solicit or encourage any individual or entity that is, or was during the twelve-month period immediately prior to the termination of this Agreement for any reason, a customer or vendor of the other party to terminate or otherwise alter his, her or its relationship with the other party or any of its affiliates. Section 12 does not apply to individuals or entities known to the Consultant previous to the Effective Date.

 

 

13. Equitable Remedies. In the event of a breach or threatened breach of the terms of this Agreement by Consultant, the parties hereto acknowledge and agree that it would be difficult to measure the damage to the Company from such breach, that injury to the Company from such breach would be impossible to calculate and that monetary damages would therefore be an inadequate remedy for any breach. Accordingly, the Company, in addition to any and all other rights which may be available, shall have the right of specific performance, injunctive relief and other appropriate equitable remedies to restrain any such breach or threatened breach without showing or proving any actual damage to the Company.

 

 

14. Governing Law. This Agreement shall be governed, construed and interpreted in accordance with the internal laws of the State of California. In the event a judicial proceeding is necessary, the sole forum for resolving disputes arising under or relating to this Agreement are the Municipal and Superior Courts for the County of Orange, California or the Federal District Court for the Central District of California and all related appellate courts, and the parties hereby consent to the jurisdiction of such courts, and that venue shall be in Orange County, California.

 

 

15. Entire Agreement: Modifications and Amendments. The terms of this Agreement are intended by the parties as a final expression of their agreement with respect-to such terms as are included in this Agreement and may not be contradicted by evidence of any prior or contemporaneous agreement. The Schedule referred to in this Agreement is incorporated into this Agreement by this reference. This Agreement may not be modified, changed or supplemented, nor may any obligations hereunder be waived or extensions of time for performance granted, except by written instrument signed by the parties or by their agents duly authorized in writing or as otherwise expressly permitted herein.

 

 

16. Attorneys Fees. Should any party institute any action or proceeding to enforce this Agreement or any provision hereof, or for damages by reason of any alleged breach of this Agreement or of any provision hereof, or for a declaration of rights hereunder, the prevailing party in any such action or proceeding shall be entitled to receive from the other party all costs and expenses, including reasonable attorneys' fees, incurred by the prevailing party in connection with such action or proceeding.

 

 

17. Prohibition of Assignment. This Agreement and the rights, duties and obligations hereunder may not be assigned or delegated by Consultant without the prior written consent of the Company. Any assignment of rights or delegation of duties or obligations hereunder made without such prior written consent shall be void and of no effect.

 

 

18. Binding Effect: Successors and Assignment. This Agreement and the provisions hereof shall be binding upon each of the parties, their successors and permitted assigns.

 

 

19. Validity. This Agreement is intended to be valid and enforceable in accordance with its terms to the fullest extent permitted by law. If any provision of this Agreement is found to be invalid or unenforceable by any court of competent Jurisdiction, the invalidity or unenforceability of such provision shall not affect the validity or enforceability of all the remaining provisions hereof.

 

 

20. Indemnification. The Company shall indemnify, defend and hold harmless Consultant from and against any and all liability, loss, damage, expense, claims or suits arising out of: (i) Company’s breach of this Agreement, including any representations warranty contained herein; or (ii) the Services provided by Consultant, provided such claim does not in any manner arise from Consultant’s grossly negligent or willful act or omission. Additionally, Consultant will be covered under the Director’s and Officer’s policy of the Company. The Company will provide evidence of coverage to the Consultant which shall be a minimum of one million dollar coverage paid in full for the year.

 

 

21. Notices. All notices and other communications hereunder shall be in writing and, unless otherwise provided herein, shall be deemed duly given if delivered personally or by telecopy or mailed by registered or certified mail (return receipt requested) or by Federal Express or other similar courier service to the parties at the following addresses or (at such other address for the party as shall be specified by like notice)

 

 

(i) If to the Company:

 

 

Office:

 

 

Fax:

 

 

(ii) If to the Consultant:

 

 

Any such notice, demand or other communication shall be deemed to have been given on the date personally delivered or as of the date mailed, as the case may be.

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Consulting, Confidentiality, and Proprietary Rights Agreement as of the Effective Date written above.

 

 

Eric Stoppenhagen

 

 

Consultant

 

 

By: ___/s/ Eric Stoppenhagen___________

 

	  	  	
Eric Stoppenhagen

 

Green Star Alternative Energy, Inc.

 

 

The Company

 

 

By: ___/s/ Eric Stoppenhagen ___________

 

	  	  	
Name:

	
Eric Stoppenhagen

 

 

	  	
Title: Chairman of the Boardcws_ex103.htm

Exhibit 10.3

Perpetual License Agreement

 

THIS AGREEMENT (hereinafter “Agreement”) is entered into on the date indicated herein below, by and among CWS Marketing & Financing Group, Inc a Delaware Corporation with a principal place of business at 3525 Del Mar Heights Rd #316, San Diego, CA 92130(“CWSMF”),, Inc., a Delaware corporation and FN Implementation & Financing Partners, Inc., Delaware corporation with its principal place of business at P.O. Box 9, Fairfield CT, 08624 (“FNIFP”).

 

WHEREAS, CWSMF is in the business of, among other things, financial and marketing consultancy; and

 

WHEREAS, FNIFP has developed a proprietary methodology and business process, which it calls Accountmetricing Architectue (“AAI”) and

 

WHEREAS, CWSMF, on the one hand, and FNIFP, on the other hand wish to enter into an agreement.

 

NOW THEREFORE, agreeing and acknowledging that this Agreement is supported by good and valuable consideration, the sufficiency and adequacy of which are hereby expressly acknowledged, the Parties hereby agree as follows:

 

1.  Definitions: As used herein the following terms have the following meanings:

 

1.1  The Parties:  The term “Party” or “Parties” shall mean CWSMF on the one hand and FNIFP on the other hand.

 

1.2   Trademark Rights.  The term “Trademark” or “Trademark Rights” shall mean U.S. Trademark Application No., 77075679 approved on November 4 2008, and entitled Accoutmetricing Architecture,” owned by FNIFP,

 

1.4   Improvements.  The term “Improvement” means any and all improvements to or derivatives of the Trademark Rights, including without limitation, enhancements, modifications, updates, new versions, features or functionality.

 

2.  Grant of Rights and License.  Subject to the terms of this Agreement, and in consideration of the payment of the amounts set forth herein which payments are hereby acknowledged by FNIFP and FNIFP (to the extent applicable if  possesses any residual rights to the Trademark Rights and the Improvements) hereby grants to CWSMF the world-wide, perpetual right as further described in this Agreement.

 

3.  Improvements. If FNIFP has previously developed or hereafter develops any Improvement to the Trademark Rights, FNIFP shall promptly disclose such Improvements to CWSMF and such Improvements shall become a part of this Agreement and licensed to CWSMF hereunder.   If any such Improvement may be Trademarkable, FNIFP shall have the first option to file a Trademark application in FNIFP’s name.  The expense (including all attorney’s fees) of filing, securing, prosecuting and maintaining Trademark or other intellectual protection on such Improvement shall be borne by FNIFP.

 

4.  Notice of Infringements; Protection of Intellectual Property Rights.  CWSMF shall immediately notify and inform FNIFP of any actual or potential infringement of the Trademark Rights, which may come to CWSMF’s attention.  Subject to the additional provisions of this section, FNIFP may, in its sole discretion, take whatever steps it deems necessary or advisable to terminate or resolve any such actual or potential infringement.  If FNIFP shall elect not to pursue or defend any action, CWSMF, at its sole cost and expense and with FNIFP’s approval, may undertake such action to resolve or terminate such infringement, and FNIFP shall cooperate with CWSMF to resolve or terminate such infringement.

 

  

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(a)  FNIFP shall maintain the Trademark Rights in good standing and shall pay all maintenance fees due thereon during the term.  FNIFP, having the right of ownership of any Improvement hereunder, shall be responsible for all costs and expenses of applying for any U.S. or foreign Trademark protection; provided, however, that if FNIFP fails to apply for a Trademark within nine (9) months of public disclosure of such Improvement, then CWSMF may apply, at its own cost and expense, for a U.S. and/or foreign Trademark on such Improvement and, if a Trademark issues on such Improvement, then CWSMF shall own all rights under such Trademark, other than a royalty-free non-exclusive license to such Improvement, which CWSMF shall grant to FNIFP, at no further cost nor obligation.

 

(b)  In the case of any infringement of any Trademark Rights or any violation of any other intellectual property rights by any third party during the term of this Agreement, FNIFP shall have the right, at its own expense, to cause such third party to cease such infringement and to otherwise enforce such Trademark Rights or such other intellectual property right.  CWSMF shall assist FNIFP as reasonably requested, at FNIFP’s expense, in taking any such action against any such infringer.  Any amount recovered as a result of any action taken by FNIFP hereunder shall be first applied to reimbursing FNIFP for its out-of-pocket expenses incurred in connection therewith, and the remainder, if any, shall be divided appropriately between CWSMF and FNIFP with reference to the relative monetary injury suffered by each of them by reason of the infringement for which said amounts are recovered.  If, following reasonable written notice from CWSMF, FNIFP shall fail to take any action against any infringer which CWSMF may reasonably deem necessary or desirable to prevent such infringement or violation, or to recover damages therefore, in addition to any other remedy available to it, CWSMF may, upon written notice to FNIFP, take any steps CWSMF may deem appropriate against such infringer at CWSMF’s own expense.  FNIFP shall assist CWSMF, at CWSMF’s expense, as reasonably requested in taking any such action against any such Infringer.  Any amount recovered as a result of any such action taken by CWSMF shall be retained by CWSMF.  This paragraph shall survive the termination or expiration of this Agreement.

 

5.  Obligations of the Parties.  The Parties agree that each will perform the following services or provide the following products, or otherwise have the following obligations during the term of this Agreement:

 

5.1   By FNIFP:  FNIFP shall provide to CWSMF, and CWSMF shall purchase, license and/or pay FNIFP the amounts set forth on Exhibit “A” to this Agreement for the products, services, or training/support (the “FNIFP Offerings”) also set forth in Exhibit “A” which Exhibit is hereby made a part of this Agreement by specific reference.  FNIFP shall accept such amounts in full payment and satisfaction for the provision of the FNIFP Offerings as described in Exhibit “A.”

 

5.2   By CWSMF:  CWSMF shall sell or license the delivery of the FNIFP Offerings to its current and/or prospective clients, and/or to the current or prospective clients of any Identified Agency as described in paragraph 6.3 herein and pay such amounts that are owed under royalty and licensing fees as identified.5.3

 

6.  Additional Terms & Conditions.  The Parties agree that the following additional terms and conditions shall apply to this Agreement and the resulting relationship between the Parties:

 

6.1   Term and Termination.  This Agreement is for a set term of 18 months from the effective date set forth below.  At the end of such term, CWSMF shall have the exclusive option to renew this Agreement for successive 18-month periods by sending notice to FNIFP of such election at least ten (10) days prior to the end of the initial term or any renewal term.  The amounts due to either Party under any renewal of this Agreement shall be those amounts reflected in Exhibit “A” under “Renewal Amounts.” Notwithstanding this automatic renewal clause, either Party may terminate this Agreement as follows:

 

  

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6.1(a)   A non-breaching Party, at their sole and exclusive election, may terminate this Agreement, or suspend performance of its obligations hereunder, upon written notice, if the other Party shall be subject to one or more of the following events:

 

the filing by a Party of an involuntary petition in bankruptcy, the entry of a decree or order by a court or agency or supervisory authority of competent jurisdiction for the appointment of a conservator, receiver, trustee in bankruptcy or liquidator for a Party in any insolvency, readjustment of debt, marshaling of assets and liabilities, bankruptcy or similar proceedings, or the winding up or liquidation of its affairs, and the continuance of any such petition, decree or order undismissed or unstayed and in effect for a period of sixty (60) consecutive days; or the consent by a Party to the appointment of a conservator, receiver, trustee in bankruptcy or liquidator in any insolvency, readjustment of debt, marshaling of assets and liabilities, bankruptcy or similar proceedings of or relating to a Party, or relating to substantially all of its property, or if a Party shall admit in writing its inability to pay its debts generally as they become due, file a petition to take advantage of any application insolvency, reorganization or bankruptcy statute, make an assignment for the benefit of its creditors or voluntarily suspend payment of its obligations.

 

6.1(b)   A non-breaching Party may also terminate this Agreement or suspend performance of its obligations hereunder, upon written notice at any time as a result of a material breach of this Agreement as follow: (i) the non-breaching Party shall provide written notice of its claim of a material breach; (ii) the Party receiving such notice shall be afforded 30 days to cure the breach; and (iii) if, after providing notice of a material breach and where the Party receiving such notice fails to cure the conditions causing such material breach, this Agreement shall be terminated (or suspended, at the election of the non-breaching Party).

 

6.1(c)   Either Party may terminate this Agreement with the expressed written consent of the other Party.

 

6.1(d)   All rights and obligations of both Parties as contained in each and every paragraph of this Agreement shall remain in full force and effect during the notice period.  Upon termination of this Agreement for any reason in accordance with this Agreement, and at the specific written request of either Party, each Party so requested shall return any products or materials of the other Party which such Party may have in its possession within five (5) business days after the date of termination. Termination by either Party shall relieve both Parties of any remaining obligations under this Agreement, but shall not affect any existing rights of either Party under this Agreement that exist at the time of termination.  The following paragraphs of this Agreement shall survive termination:  6.2, 6.3, 6.5 and 6.8.

 

6.2   Confidentiality & Non-Disclosure Obligation. The Parties understand and acknowledge that in the course of the business relationship contemplated under this Agreement, information of a confidential, proprietary and/or trade secret nature may be revealed by one Party (the “Disclosing Party”) to the other Party (the “Receiving Party”) and that such information constitutes valuable business assets of the Disclosing Party.  “Confidential Information” means any and all proprietary information, trade secrets, know-how and technical data, including but not limited to, products, data, compilations, algorithms, code, software, processes, systems, technology, and databases, whether on computer discs, tapes, CD, DVD or other media for sorting, storing or displaying information and including information that is marked as “confidential” or should be reasonably understood to be confidential or proprietary by either Party. The Receiving Party agrees that for the Term of this Agreement and for two (2) years after termination of this Agreement, the Receiving Party will not disclose the Confidential Information to any third party (except as required by law), nor use the Confidential Information for any purpose not permitted under this Agreement or any purpose not specifically linked to the Services.  The nondisclosure obligations set forth in this Section shall not apply to information that the Receiving Party can document is generally available to the public (other than through breach of this Agreement) or was already lawfully in the Receiving Party’s possession at the time of receipt of the information from the Disclosing Party.  The Parties further agree that documents created, source code developed and methodologies generated including but without limitation, all copyrights, remain the property of the Party possessing such right(s) and that, except for the licenses and rights to use any confidential information granted under this Agreement, the other Party shall not disclose, use, employ, task, distribute, transfer or sell any such materials without the prior express written permission and consent of the other.  Such intellectual property is specifically not designated as “works made for hire” pursuant to 17 U.S.C. §101.

 

  

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6.3  Non-Solicitation.  The Parties agree that neither Party will hire, recruit, solicit, employ, or make any offer of employment to, or cause or encourage another to hire, recruit, solicit, employ or make any offer of employment to, any employee of the other Party until one (1) year after the termination of such employee’s employment with a Party; and that neither Party will encourage or cause another to encourage any employee of the other Party to terminate his/her employment with that Party.  The Parties further agree that they will not encourage any employee to breach any non-compete nor non-disclosure agreement in effect between any employee/former employee of the other and any such Party.

 

6.4   Warranties and Disclaimers.  The Parties agree to the following warranties and/or disclaimers as they pertain to their respective services or obligations under this Agreement:

 

6.4(a)  CWSMF represents and warrants that that it will use its best efforts and professional abilities in implementing the AAI offering under this Agreement. EXCEPT AS SET FORTH IN THIS PARAGRAPH, CWSMF MAKES NO OTHER WARRANTIES OR GUARANTEES OF ANY KIND TO ANY PERSON OR ENTITY WITH RESPECT TO THE SERVICES PROVIDED BY IT OR THE RESULTS SUCH SERVICES MAY ACHIEVE, OR OTHER GUARANTEES OR WARRANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

 

6.5   Indemnification.  The Parties agree to the following indemnifications with respect to the respective services or obligations under this Agreement:

 

6.5(a)   CWSMF shall indemnify and hold FNIFP and its officers, directors, employees and agents harmless from and against any and all third party claims, actions, losses, damages, liability, costs and expenses (including, without limitation, reasonable attorneys’ fees) arising out of or in connection with the sole gross negligence or willful misconduct of CWSMF, its employees, officers, directors or agents as it pertains to the provision of services to Referrals under this Agreement.  CWSMF shall further indemnify and hold FNIFP, harmless from and against any and all third party claims alleging violations or infringement by CWSMF of Trademarks, trademarks or copyrights of any third party.

 

6.5(b)  FNIFP shall indemnify, defend and hold harmless CWSMF and its officers, directors, managers, members, stockholders, employees, customers, and agents and their successors and assigns (each a “CWSMF Indemnitee”), against third party claims, suits, actions, demands or judgments whether arising directly or indirectly (i.e., a cross-claim or third-party claim) against any CWSMF Indemnitee that any claim covered by the Trademark Rights, AAI Technology or Improvements developed by FNIFP infringes a Trademark, trademark, copyright or other intellectual property of a third party, or misappropriates a trade secret of a third party.  FNIFP will pay all costs (including reasonable attorneys’ fees and expenses of litigation) and damage awards incurred by or imposed upon an CWSMF Indemnitee in connection with any such claims, suits, actions, demands or judgments; provided, however, that the CWSMF Indemnitee gives reasonable written notice to FNIFP of any such claim or action, tenders the defense of such claim or action to FNIFP and assists FNIFP at FNIFP’s expense in defending such claim or action, and does not  compromise or settle such claim or action without FNIFP’s prior written consent.

 

6.6   Interpretation.  The subject headings herein are for convenience of reference only and shall in no way affect interpretation of this Agreement. This Agreement may be executed in counterparts, all of which together shall be deemed one and the same Agreement. In the event of a dispute hereunder, this Agreement shall be interpreted in accordance with its fair meaning and shall not be interpreted for or against a Party hereto on the ground that such Party drafted or caused to be drafted this Agreement or any part thereof.

 

  

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6.7   Applicable Law.  The validity, interpretation, enforceability, and performance of this Agreement shall be governed by and construed in accordance with the law of the State of Connecticut, U.S.A. without regard to any conflicts of laws provisions or any provisions and the Parties to this Agreement consent to the jurisdiction of the courts, whether state or federal, located in the State of Connecticut. If any part, term or provision of the Agreement shall be held illegal, unenforceable, or in conflict with any law of a federal, state or local government having jurisdiction over this Agreement, the validity of the remaining portions of provisions shall not be affected thereby and each and every term shall be valid and enforceable to the fullest extent and in the broadest application permitted by law.

 

6.8   Limitation and Exclusion of Liability.  The Parties agree that neither FNIFP nor CWSMF shall be liable to each other or any other third party, where applicable, for any loss, cost, damage or expense incurred as a result of, but not limited to any unavailability or inoperability of the either Party’s web site or the Internet, technical malfunction, computer error or loss or corruption of data, or other injury, damage or disruption of any kind.  In no event shall either Party be liable for any indirect, incidental, consequential, special or exemplary damages, including, but not limited to, loss of profits, or loss of business opportunity, even if such damages are foreseeable and whether or not either Party has been advised of the possibility thereof. This limitation of liability shall not, however, apply to violations of paragraphs 6.2, 6.3, 6.4, and 6.5.

 

6.9    Resolution of Disputes.  The Parties shall attempt to resolve any controversy or claim arising out of or relating to the creation, performance, termination and/or breach of this Agreement in the first instance through non-binding good faith negotiation and mediation between the Parties.  In the event that such negotiation and mediation fails to resolve such claim or controversy, or if either Party fails to reasonably participate in or respond to negotiation or mediation or attempts by a Party to negotiate or mediate in good faith, the Party seeking redress under this Agreement may be relieved from any further obligation to proceed with negotiation, and the controversy or claim shall be submitted to the courts of the Commonwealth of Massachusetts.

 

6.10   Severability.  Each provision of this Agreement is intended to be severable.  If any term or provision hereof shall be determined by legalor proper authority to be illegal or invalid for any reason whatsoever, such provision shall be severed from this Agreement and shall not affect the validity of the remainder of this Agreement.

 

6.11   Modifications and Waivers.  No failure or delay on the part of either Party in exercising any right, power or remedy under this Agreement shall operate as a waiver of such right, power or remedy, nor shall any single or partial exercise of any such right, power or remedy preclude any other right, power or remedy.  Unless otherwise specified, any amendment, supplement or modification of or to any provision of this Agreement, any waiver of any provision of this Agreement and any consent to any departure by the Parties from the terms of this Agreement, shall be effective only if it is made or given in writing and signed by both Parties.

 

6.12   Notices.  All notices, requests and communications required or permitted hereunder shall be in writing and shall be sufficiently given and deemed to have been received (i) upon delivery, if delivered personally with written receipt, (ii) three (3) days after posting by certified mail, postage prepaid, return receipt requested, (iii) upon confirmed receipt, if delivered by telecopier, or (iv) the next day if delivered by a recognized overnight commercial carrier, such as Federal Express or DHL, addressed in each instance to the Parties at the addresses set forth below at the end of this Agreement (or at such other addresses as shall be given by either of the Parties to the other in accordance with this Section).

 

6.13   No Agency.  The Parties to this Agreement are independent contractors.  Neither Party is an agent, representative, or partner of the other Party.  Neither Party shall have any right, power, or authority to enter into any agreement for or on behalf of, or to incur any obligation or liability of, or to otherwise bind the other Party.

 

6.14   No Assignment.  This Agreement may not be assigned by either Party without the prior, written consent of the other Party, except for an assignment to an acquiring Party in the event of the acquisition of all, or substantially all, of the capital stock or assets of the assigning Party or the merger of the assigning Party in a business combination.  No such assignment shall be effective without the written agreement of the assignor and assignee to fulfill all of the obligations of the assignee under this Agreement and the assignor shall also be liable to the extent the obligations of the assignee are not fully performed to the satisfaction of the non-assigning Party.  This Agreement shall be binding on, and shall inure to the benefit of, the authorized successors and assigns of the Parties hereto.

 

  

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6.15   Restrictions on Resale or Redistribution.  The Parties agree that during the term of this Agreement, or any extensions thereto, CWSMF shall not resell or redistribute the intellectual property supporting the FNIFP Offerings to any third party, except CWSMF may offer or use the intellectual property to or with Identified Agencies as defined in paragraph 6.3.

 

6.16   Non-Compete Covenant of CWSMF.  The Parties further agree that CWSMF shall treat and otherwise recognize FNIFP as a third party beneficiary to any non-disclose/non-compete agreement executed by any CWSMF senior manager in any way involved in selling or performing the FNIFP services pursuant to this Agreement.

 

6.17   Immediate Consulting.  The Parties further agree that FNIFP shall immediately, but only as requested, provide any and all reasonable, necessary and proper consulting and support services to assist CWSMF in implementing three AAI installs at CWSMF clients unless such services have been completed under prior agreement .  The Parties shall mutually agree on which CWSMF clients shall receive the AAI services under this paragraph.

 

6.18   Certification of CWSMF.  FNIFP shall, upon provision of reasonable training and support, certify and identify CWSMF as a “AAI Certified Analyst” and shall not so designate or certify any other organization in a similar or greater level of certification during the term(s) described in paragraph(s) 1.3(a)-(b).  Notwithstanding this provision, FNIFP may certify, identify or otherwise designate any other organization with some other certification of lesser degree than CWSMF. Such other organization may refer business to CWSMF, FNIFP or any other certified organization as set forth in section 1.3(a)-(b), however, no other organization shall possess the same degree of certification nor be authorized to perform FNIFP services on behalf of clients as set forth in section 1.3(a)-(b).

 

6.19   Record-Keeping and Audit Rights.  Each Party will keep accurate books and records showing all financial transactions and contract information, which is or are the subject of this Agreement or which would otherwise obligate a Party to make payment(s) to the other. Either Party shall have the right, but not more than twice annually, and at a reasonable time and upon reasonable written notice, to inspect the relevant books and records (wherever located) and create summaries related to any financial transactions that are the subject of this Agreement.  All such audits will be performed by an independent, third party,  recognized auditor reasonably acceptable to the Party being audited, which auditor has agreed in writing to maintain the strict confidentiality of the books and records audited.  Such books and records, and any results of an audit, will be deemed to be the Confidential Information of the Party audited.  If any inspection reveals an error in the calculation of amounts owing to either Party, the other Party will promptly pay the difference.  If any error is seven percent (7%) or more of the amount owed to either Party, the other Party will pay the inspecting Party's reasonable out-of-pocket costs with respect to that examination and the next subsequent re-examination.

 

6.20   General.  Any provision of this Agreement which is prohibited or unenforceable shall be ineffective only to the minimum extent necessary without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such provisions. Neither Party shall be liable for, nor shall either Party be considered in breach of this Agreement due to, any failure to perform its obligations under this Agreement as a result of a cause beyond its reasonable control, including, but not limited to any act of God or a public enemy, act of any military, civil or regulatory authority, change in any law or regulation, fire, flood, earthquake, storm or other like event, disruption or outage of communications, power or other utility, labor problem, unavailability of supplies, or any other cause, whether similar or dissimilar to any of the foregoing, which could not have been prevented by the non-performing Party with reasonable care. The drafting and negotiation of this Agreement has been participated in by each of the Parties and/or their counsel, and for all purposes this Agreement shall be deemed to have been drafted jointly by both Parties, and shall not be strictly construed against any Party hereto on the basis of any principle or provision of law providing for strict construction against the drafting Party.

 

  

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6.21   Due Authority.  Each of the Parties represent and warrant to the other that the execution and delivery of this Agreement and the performance of the obligations under this Agreement have been duly authorized by all requisite action of the governing body of the Party, if any, and that the person executing this Agreement is fully authorized to bind that Party.

 

6.22   Entire Agreement. This Agreement constitutes the entire agreement of the Parties and supercedes, amends and restates the Prior Agreement.  Any inconsistent prior statements, understandings, agreements, or promises, oral or written, concerning the subject matter of this Agreement shall have no force or effect.  This Agreement can only be amended by a written instrument signed by both Parties.  Each Party acknowledges that in entering into this Agreement it does not do so on the basis of and does not rely on any representation, warranty, or other provision except as expressly provided in this Agreement and all conditions, warranties, and other terms implied by statute or common law are hereby excluded to the fullest extent permitted by law.

 

6.23   Injunctive Relief.  The Parties agree that there is no adequate remedy at law for a breach or threatened breach of this Agreement by a Party, including the license grant, exclusivity, and confidentiality provisions contained herein, and that such a breach would irreparably harm the non-breaching Party and that the non-breaching Party shall be entitled to equitable relief without the necessity of posting a bond (including injunctive relief) regarding any breach or potential breach, in addition to the other remedies available at law.

 

  

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IN WITNESS WHEREOF, the Parties hereto have executed this Perpetual License Agreement by their duly authorized representatives as of the last date set forth below.

 

 

	
FN Implementation & Financing Partners, Inc.

	 	
CWS Marketing & Finance Group, Inc.

	 
	 	 	 	 
	Signature:	 	Signature:	 
	 	 	 	 
	 	 	 	 
	
Howard Kaplan, Managing Director

	 	
Craig Samuels, CEO

	 
	 	 	 	 
	
Dated: December 31, 2009

	 	
Dated: ________________________________________

	 

 

  

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Exhibit “A”

 

A.      Royalty Payment to FNIFP:

 

CWSMF shall pay a royalty fee to FNIFP calculated as follows.  An amount equal to 5% of any and all revenues collected by CWSMF from any Party for which CWSMF specifically identifies for the use and amount of payment related to the AAI offering.   Payments shall be made quarterly along with an accounting of revenues collected per quarter..

 

 

 

 

 

 

 

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