Document:

Dussault Apparel Inc.: Exhibit 10.9 - Filed by newsfilecorp.com

MERCHANDISING LICENSE AGREEMENT

	1. 	Licensor: 	Dussault Apparel Inc (“Licensor”) 
	 	  	2250 East Hastings Street 
	 	  	Vancouver, BC V5L1V4 
	 	  	Attention: Mr. Jason Dussault 
	 	 	 Phone: 604 222
  2010   
	 	  	  
	 	Licensee: 	USPA Accessories, LLC d/b/a Concept One 
	 	  	Accessories (“Licensee”) 
	 	 	 119 West 40th
      Street   
	 	 	New York, NY 10018   
	 	  	Attention: Mr. Sam Hafif, 
	 	  	Phone: 212 868 2590; Fax: 212 868 2595 
	 	  	  
	 	Licensor’s 	  
	 	Representative: 	Bill Macdonald 
	 	  	Macdonald Tuskey Law Corp 
	 	  	1210 777 Hornby Street 
	 	  	Vancouver BC, V6Z 1S4 
	 	  	Phone: (604) 648-1670; Fax (604) 687-3214
	 	 	 
	3. 	Proprietary Subject
      Matter: 

Any and all designs submitted by
Dussault Apparel Inc.

	4. 	Articles: The following
      products utilizing, bearing or otherwise relating to the Proprietary
      Subject Matter: 
	  	  	  
	  	(a) 	belts (for pants or jeans as an example) of all
      materials; 
	  	  	
	  	(b) 	 wallets and purses of all materials;  
	 	 	 
	  	(c) 	 messenger bags of all materials; 
	 	 	 
	  	(d) 	laptop bags (with or without accordion
      folds) of materials all 
	  	        

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	 	(e) 	
      bags or soft sided luggage of any size or design, with or
      without straps or handles, of all materials

	 	 	 
	 	(f) 	belt buckles of all materials
	 	 	 
	 	(g) 	
      headwear (hats, bandana’s as an example) of all
      materials

	 	 	 
	 	(h) 	
      apparel, (including but not limited to t-shirts, screened
      shirts, polo shirts, buttoned shirts, leather shirts/jackets, hoodies,
      etc.), of all materials

	 	 	 
	 	(i) 	
      gloves of all materials

Unless otherwise indicated by the text
of this Agreement, the above shall be collectively referred to herein as
“Articles.”

	5. 	Territory: United States, Canada, European Union and
      Japan
	 	 
	6. 	
      Term: The term shall commence on the date this
      Agreement is executed by all parties and shall expire on November 1, 2011,
      unless sooner terminated as provided in Exhibit “A” hereto (the “Initial
      Term”). This Agreement shall automatically renew for one two (2) year term
      (the “First Renewal Term”) if Licensee achieves minimum net sales of one
      million dollars ($1,000,000) within the Initial Term. This Agreement shall
      automatically renew for another two (2) year term (the “Second Renewal
      Term”) if Licensee achieves minimum net sales of two million dollars
      ($2,000,000) within the First Renewal Term. Notwithstanding the foregoing,
      Licensee may elect not to renew this Agreement by delivering to Licensor a
      written notice, not less than ninety (90) days prior to the expiration of
      the Initial Term, or First Renewal Term as the case may be, stating that
      it does not intend to renew this Agreement. Any reference hereinafter to
      the “Term” shall be deemed to be a reference to the Initial Term and the
      Renewal Terms, if any.

	7. 	Exclusivity (check
      one):    X   
       Non-exclusive license as defined in Paragraph 21.1
    

	8. 	
      Royalty Rate: Ten Percent (10 %) of Net Sales as
      defined in Paragraph 19.2 paid to Licensor (the “Royalty Rate”).Royalty
      Rate payments will be submitted for dispersal quarterly on the calendar
      year.

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	9. 	
      Channels of Distribution: including Specialty
      Sports Retailers, Specialty Chain Stores, Specialty Footwear Stores, and
      Off Price Retailers, to be approved by Licensor (“Channels of
      Distribution”), excluding high-end specialty retail and department stores,
      with any approvals or non-approvals not to be unnecessarily
    withheld.

	 	 
	10. 	Earliest In-Store Date: November 1,
      2009.

	11. 	
      Shipping Date For Each Category of Articles
      (a) Through (i), Above: Not later than the earlier
      of December 31, 2009 or four (4) months from the date of Sample
      Approvals (“Shipping Date”).

	 	 
	12. 	
      Copyright and Trademark
Notices:

	 	Copyright: 	© 200_ Dussault Apparel Inc. 
	 	  	All Rights Reserved 
	 	  	 
	 	Trademark: 	[Proprietary Subject Matter]®

	13. 	
      Approvals: All Articles, any related packaging and
      advertising and any use of the Proprietary Subject Matter or other
      trademarks or any intangible property rights of Licensor and all Channels
      of Distribution must be approved by Licensor in writing before
      distribution or sale by Licensee. Such approvals or disapprovals are
      within Licensor’s sole discretion, any submission not approved in writing
      is deemed disapproved. Notwithstanding the foregoing, if the Licensor does
      not object in writing within ten (10) business days of notification
      seeking approval, such approval shall be deemed to have been
    provided.

	14. 	Insurance Amount: 	$1,000,000.00. 
	 	 	 
	15. 	Samples: 	12 of each Article. 

	16. 	
      Special Provisions:

	 	 	 
		(i) 	
      Any articles purchased by Licensor may be sold or
      otherwise disposed of or used at Licensor’s sole discretion with no
      obligation or liability to Licensee for any reason. There shall be no
      royalties with respect to Samples or Articles purchased by Licensor from
      Licensee.

	 	 	 
		(ii) 	
      Licensor shall during the Term:

	 	 	 
			
      (a) 
	co-operate with and assist Licensee in selling to
      Channels of Distribution and developing a catalogue of Articles to be sold
      at or through retailers in the Channels of Distribution
;

 

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	 	 	(b) 	 assist Licensee in establishing relationships with existing
        and potential third party buyers of Articles;

	 	 	 	 
	 	 	(c) 	 develop, in conjunction with Licensee, merchandise tie-ins
        to current and future Articles;

	 	 	 	 
	 	 	(d) 	 promote the Articles supplied to or to be supplied to
        retail stores and, whenever reasonably possible and within their
        power, cause Jason Dussault to promote the Articles in public appearances,
        as well as in print, radio and television programs or interviews of or
        with Jason Dussault and or other representatives of Dussault Apparel Inc;

	 	 	 	 
	 	 	(e) 	 the Licensor shall utilize it's reasonable best efforts
        to promote, extend and maximize sales of the licensed products and the
        reputation of the product throughout the Territory. The Licensor will
        recommend products to Authorized Sales Agents based upon their customer’s
        needs and interests. The Licensor shall utilize reasonable best efforts
        to Contact Authorized Sales Agents and their prospective customers to
        explain products and solicit orders. The Licensor shall consult with Authorized
        Sales Agents after sales or contract signings to solve problems and provide
        ongoing support. Monitor market conditions, product innovations and competitors
        pricing;

	 	 	 	 
	 	 	(f) 	 the Licensor agrees to provide initial design concepts,
        and to supervise design of the lines at least 2x per year (Spring, Fall),
        according to a line plan and calendar requested by Licensee;

	 	 	 	 
	 	 	(g) 	 the Licensor and the licensee shall create each season
        a program of design themes and concepts with respect to the design of
        the licensed products. The Licensor and the licensee shall confer on Design
        concepts and will make such modifications as are required to meet the
        Licensor's final approval which may be granted or withheld in Licensor's
        sole discretion; and

	 	 	 	 
	 	 	(h) 	 promote the Articles through paid advertising, promotion,
        trade show and other means as the parties hereto may mutually agree upon
        from time-to- time, the cost of which shall be paid by Licensee and deducted
        from gross receipts for purposes of determining Gross Income.

	 	 	 	 
	 	 	
      (iii) 
	Subject to the terms of this Agreement and any required approvals, Licensee
      shall use commercially reasonable efforts to promote, sell and distribute
      the Articles and Licensee shall be responsible for all aspects of the design,
      development, manufacturing, advertising, marketing, sale and distribution
      of the Articles, including, but not limited to the following:
	 	 	 	 
	 	 	(a) 	 product design and development;

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	 	 	(b) 	
      order processing;

	 	 	 	 
	 	 	(c) 	
      transaction processing;

	 	 	 	 
	 	 	(d) 	
      order fulfillment;

	 	 	 	 
	 	 	(e) 	
      shipping and distribution;

	 	 	 	 
	 	 	(f) 	
      sales reporting;

	 	 	 	 
	 	 	(g) 	
      cash management and
disbursement.

	17. 	
      Additional Terms: The attached Exhibit “A”
      (Additional Terms and Conditions) is incorporated herein by this
      reference.

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By signing below, Licensee affirms that it is in agreement with
the foregoing and that it has read and understands and agrees to be bound by
Exhibit “A” (Additional Terms and Conditions) attached hereto and forming a part
hereof. Licensee further agrees that this Agreement shall also serve an invoice
to Licensee with respect to the amounts payable as set forth above and Licensee
agrees to pay such amounts to Licensor as and when specified above. This
Agreement shall not be binding upon Licensor until fully executed and
delivered.

	ACCEPTED AND AGREED TO: 	  
	 	 
	Dussault Apparel Inc 	Concept One Accessories,
      Inc. 
	A Nevada Corporation 	A New York Corporation 
	By: ______________________________	 
         By: ____________________________
	         Jason
      Dussault, President 	  
	  	 
         Print Name: ______________________
	Date: ____________________________	 
         Title: ___________________________
	  	 
         Date: ___________________________

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EXHIBIT “A”

  MERCHANDISING LICENSE AGREEMENT ADDITIONAL TERMS AND
CONDITIONS

     These Additional Terms and
Conditions shall be deemed fully incorporated in the Merchandising License
Agreement (“Underlying Agreement”) to which this Exhibit “A” is attached, and
these Additional Terms and Conditions and the Underlying Agreement shall
hereinafter be collectively referred to as the “Agreement.” All terms shall,
unless expressly provided to the contrary herein, have the same respective
meanings as set forth in the Underlying Agreement. Unless expressly provided to
the contrary herein, to the extent that any provision of these Additional Terms
and Conditions conflicts with any provision of the Underlying Agreement, the
Additional Terms and Conditions shall control.

18. Further Conditions on Grant of Rights.

     Licensor hereby grants to
Licensee, and Licensee hereby accepts, the right and license to utilize during
the Term the Proprietary Subject Matter, including any associated Trademark,
solely on or in connection with the manufacture and sale of Articles in the
Territory, subject to the terms and conditions hereunder. Licensee shall be
entitled to sell Articles solely in the Channels of Distribution set forth in
Paragraph 9 of the Underlying Agreement; provided further that in the event
Licensor shall own or operate or license an official website, Licensee’s
channels of distribution on the Internet shall consist of said official website,
except as Licensor shall give its written consent. No such sales shall be on an
approval, consignment, guaranteed sale or return basis. Licensee agrees that it
will not make or authorize any use, direct or indirect, of the Articles outside
the Territory and that it will not intentionally sell Articles to persons who
intend or are likely to resell them outside the Territory.

19. Consideration.

      19.1 INTENTIONALLY OMITTED

      19.2 Licensee shall pay to the
Licensor their respective Royalty Rate as specified in Paragraph 8. Royalties
shall be paid on all Net Sales of Licensee arising out of or in connection with
the commercial exploitation of this license or the Articles. As used herein the
term "Net Sales" shall mean the invoice price charged by LICENSEE for Licensed
Products sold and shipped by LICENSEE (exclusive of any "value added tax") less
(a) refunds, credits, and allowances actually made or allowed to customers for
returned Licensed Products; and (b) trade discounts exclusive of anticipations
afforded to and actually taken by customers in payment of Licensed Products and
(c) customary trade

allowances, including, but not limited
to, warehouse allowances, damage allowances, new store allowances, advertising
and co-op allowances, mark-down allowances and gross margin payments or credits,
actually allowed and taken by customers. . Articles shall be considered sold
when invoiced.

      19.3 All royalties due Licensor
as set forth in this Agreement shall be collectively referred to as “Royalties.”
Royalties, gross sales and gross revenues for purposes of determining Royalties
hereunder shall accrue when the Articles are billed and paid for and when any
other revenues are actually received and are payable in accordance with
Paragraph 20 below.

      19.4 If withholding taxes based
on Licensor’s direct net income taxes are required, Licensee may deduct the
required amount from Royalties prior to remitting same to Licensor, provided
Licensee provides Licensor with a copy of such withholding tax payment prior to
such deduction and provides Licensor with the appropriate tax credit forms
within sixty (60) days of payment and shall reimburse Licensor for the amounts
deducted from Royalties for withholding taxes in the immediately following
Royalty Report in the event that it is reasonably determined by Licensor’s
certified public accountant that the tax credit for such withholding taxes
will be allowed to Licensee only under applicable law and may not be passed
through to Licensor.

      20. Accounting;
Auditing.

     On such form as Licensor may from
time to time provide to Licensee, Licensee shall (i) render royalty reports
(“Royalty Reports”) to Licensor on a quarterly basis within thirty (30) days
after the close of each calendar quarter during the Term hereof, whether or not
any payment is shown to be due to Licensor along with such Royalty Reports. If
the Territory covers more than one country, Royalty Reports shall be prepared on
a country-by-country basis. Royalties may be computed in the currency of the
country where earned and paid to the Licensor in U.S. Dollars at the exchange
rate received by Licensee at the time of conversion. Licensee shall be solely
responsible for all costs of any currency conversion to U.S. Dollars, and such
costs shall not reduce the amounts due to Licensor hereunder. Acceptance of
Royalties by Licensor shall not preclude Licensor from questioning the
correctness of same at any time. All Royalties shall be made without set-off of
any amount whatsoever, whether based upon any claimed debt or liability of
Licensor to Licensee.

     20.1 Licensee shall keep and
maintain accurate books of account and records covering all transactions
relating to this Agreement. Licensor or its designee shall be entitled to (i)
audit and inspect such books and records no more than once annually, at any time
or times during or after the Term of the Agreement during reasonable
business

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hours and upon five (5) days prior written notice to Licensee,
and (ii) make copies of summaries of such books and records. All such books of
account and records shall be retained by Licensee for a minimum of three (3)
years after expiration or termination of this Agreement. If Licensor’s duly
authorized representative discovers a deficiency in the Royalties paid to
Licensor for any period under audit (an “Audit Deficiency”), Licensee shall
promptly pay such audit Deficiency to Licensor and, if such Audit Deficiency is
five percent (5%) or more of the Royalties paid to Licensor for such audit
period, Licensee shall also reimburse Licensor for all reasonable costs and
expenses incurred by Licensor in connection with such audit. In calculating
costs for an internal auditor to perform such audit, Licensor shall bill its
personnel costs incurred in performing such audit on an hourly basis at the
hourly salaried rate of the personnel performing such services multiplied by a
factor of 1.25, to take into account employment taxes, etc., not to exceed a
combined cost of US$35.00 per hour. If such Audit Deficiency is twenty percent
(20%) or more of the Royalties paid to Licensor for such audit period, then in
addition to the above, Licensor may, at its sole option, immediately terminate
the Agreement upon notice to Licensee, even if Licensee tenders the Audit
Deficiency and associated costs and expenses to Licensor.

       20.2 Without prejudice to
any other rights of Licensor hereunder, time is of the essence regarding all
payments due hereunder and Licensee shall pay interest on any Audit Deficiency,
as well as on all delinquent Royalty payments hereunder, at one percent (1%)
plus the "prime rate" established by the Bank of America in San Francisco,
compounded annually at the rate form time to time in effect and calculated from
the date on which such payment was due.

	

21. Exclusivity. 

      21.1 If, and only if, the Underlying Agreement specifies
        that Licensee's license hereunder is exclusive, Licensor shall not, except
        as otherwise provided herein, grant any other licenses effective during
        the Term for the use of the Proprietary Subject Matter in connection with
        the manufacture, distribution and sale in the Channels of Distribution in
        the Territory of the Articles as expressly described in the Underlying
        Agreement. Notwithstanding the foregoing, nothing in this Agreement shall
        be construed to prevent Licensor from granting any licenses for the use of
        the Proprietary Subject Matter other than as provided herein, or from
        utilizing the Proprietary Subject Matter in any manner whatsoever other
    than as provided herein
22. Copyright, Trademarks, etc.

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     22.1 Licensee's use of the
Proprietary Subject Matter shall inure exclusively to the benefit of Licensor,
and Licensee shall not acquire any rights therein. Licenseerecognizes the value of the goodwill associated with the
Proprietary Subject Matter and that the Proprietary Subject Matter has acquired
secondary meaning in the mind of the public. Licensee agrees, during the Term
and thereafter, never to contest the rights of Licensor in such Proprietary
Subject Matter or the validity of the license herein granted to it. Licensee
shall not at any time apply for any registration of any copyright, trademark,
patent, or any other intellectual property right, whether recognized currently
or in the future, or other designation which would affect the ownership or
rights of Licensor in and to the Proprietary Subject Matter nor file any
document with any governmental authority or otherwise to take any action which
would adversely affect any of such ownership or rights in and to the Proprietary
Subject Matter, or assist anyone else in doing so.
     22.2 Ownership of all
intellectual property rights, whether recognized currently or in the future,
including, without limitation, copyright, patent and trademark rights, in the
Articles and in all artwork, packaging, copy, literary text, advertising
material and promotional material of any sort utilizing the Proprietary Subject
Matter, including all such material developed by Licensee, shall vest in
Licensor and title thereof shall be it the name of Licensor, or its respective
designees. All such items and all Articles shall bear the copyright and
trademark notices specified in Paragraph 12 and any other legal notices which
Licensor may form time to time prescribe which shall be incorporated in the next
production run unless otherwise required by law. With the exception of
(i) the Proprietary Subject Matter, any other intellectual property of Licensor
(all of which shall be owned by Licensor and (ii) the trademarks Concept 1,
Concept One and Concept One Accessories, and any trade use currently and/or
normally associated with, used or owned by Licensee, all of which shall be owned
by Licensee, Licensee and Licensor will jointly own all styles, designs,
logos and other materials or intellectual property developed by Licensee in
connection with the Articles and manufacturing, sale and distribution of the
Articles. Licensee shall enter into written agreements with all of its
independent contractors (i) providing that all artwork and designs created by
them in the course of Licensee's performance under this Agreement shall be the
joint property of Licensor and Licensee either as works for hire under United
States copyright law or otherwise, and (ii) obligating them to assign all rights
in such artwork and designs jointly to Licensor and Licensee. Licensee shall not
permit any of its employees or independent contractors to obtain or reserve, by
written or oral agreement or otherwise, any rights as "authors" or "inventors"
of any such artwork or designs (as such terms are used in present or future
United States copyright and/or patent statutes or judicial decisions). Licensee
shall furnish to Licensor at Licensor's request, full information concerning the
invention and creation of such artwork and designs, together with the originals
of assignments of all rights therein obtained from all such third parties to
Licensor and Licensee. After termination of this Agreement, neither party shall
use any jointly owned styles, designs, logos and other materials or intellectual
property without the written consent of the other party.

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     22.3 Licensee shall assist Licensor, at Licensor's request and expense, in the procurement and maintenance of Licensor's rights in the Proprietary Subject Matter (including all intellectual property rights, whether
recognized currently or in the future). In connection therewith, Licensee shall, without limitation, execute and deliver to Licensor in such form as it may reasonably request, all instruments and sufficient samples necessary to (i) effectuate
copyright and trademark protection, (ii) record Licensee as a registered user of any trademark pursuant to this Agreement, or (iii) cancel any such registration that conflicts with Licensor’s rights in the proprietary subject matter. Such
registration shall be handled by attorneys selected or approved by Licensor.

     22.4 Licensor and Licensee shall cooperate to ensure that third parties may not unlawfully infringe or engage in any acts of unfair competition involving the Proprietary Subject Matter. Licensee shall promptly notify
the Licensor of any such infringements or acts of unfair competition by third parties that comes to its attention.  Licensor shall have the exclusive right, exercisable at its discretion, to institute in its own name and/or Licensee's name and to
control, all actions against third parties relating to Licensor's copyrights, trademarks, and other proprietary right in and to the Proprietary Subject Matter, at Licensor's expense. With respect to any such actions, Licensor shall employ counsel of
its own choice to direct the handling of the litigation and any settlement thereof. Licensor shall be entitled to receive and retain all amounts awarded, if any, as damages, profits or otherwise in connection with such suits. Licensee shall not,
without Licensor’s prior written consent, institute any suit or take any action on account of such infringements, acts or unfair competition or unauthorized uses. Licensor shall incur no liability to Licensee by reason of Licensor's refusal to
permit Licensee to prosecute any alleged infringement by third parties, nor by reason of any settlement which Licensor may agree. In the event Licensor institutes any such action in the name of Licensee, Licensor shall indemnify Licensee for any and
all costs, demands, damages associated with the action, including reasonable attorneys’ fees and may use any recovery from a defendant in such action to pay same.

     22.5 Licensee shall not use Licensor’s name, or the Proprietary Subject Matter, other than as permitted hereunder and, in particular, shall not incorporate Licensor’s name, or the Proprietary Subject Matter,
in the Licensee’s corporate or business name in any manner whatsoever.  Licensee agrees that in using the Proprietary Subject Matter it will in no way represent that it has any rights, title and/or interest in or to the Proprietary Subject
Matter other than those expressly granted under the terms of this Agreement. Licensee further agrees that it will not use, either during or after the Term, of any configuration, trademark, trade name, or other designation confusingly or
substantially similar to the Proprietary Subject Matter.

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	23.  Indemnification.

       23.1 During and after the
Term hereof, Licensor shall indemnify and hold harmless, Licensee and its
parents, subsidiaries, affiliates, officers, directors, representatives,
employees and agents, and all persons whose names and/or likeness are licensed
hereunder (each, an “Indemnitee” and collectively “Indemnitees”) from and
against any and all claims, liabilities, demands, causes of action, judgments,
settlements and expenses (including, but not limited to, reasonable attorneys’
fees and court costs) (“Claim”) arising out of or in connection with (i) any
breach of any representation, warranty, or covenant made by Licensor hereunder,
or (ii) the failure of Licensor to perform any of its covenants or obligations
contained in this Agreement. If any Claim is initiated against any Indemnitee
with respect to which such Indemnitee may make a claim against Licensor pursuant
to this Paragraph 23.1, then the Indemnitee shall give prompt written notice of
such Claim to the Licensor. Licensor, at Licensor’s own expense, shall have the
option to assume the defense of such Claim. If Licensor assumes the defense of
such Claim, (i) Licensor shall keep the Indemnitee informed of all material
developments and events relating to such Claim, (ii) the Indemnitee shall have
the right to participate, at its own expense, in the defense of such Claim but
such participation shall not be deemed to give the Indemnitee the right to
control such defense, (iii) the Indemnitee shall cooperate as reasonably
requested by Licensor in the defense of such Claim, and (iv) Licensor shall not
settle such Claim without the prior written consent of the Indemnitee, which
consent shall not be unreasonably withheld. If Licensor fails to assume the
defense of such Claim, or fails to diligently defend such Claim, Indemnitee may
assume the defense of such Claim and Licensor shall reimburse Indemnitee for all
reasonable expenses (including reasonable attorneys’ fees which may include,
without limitation, an allocation for in-house counsel) as such expenses are
incurred, relating to the defense of such Claim. In no event shall Licensee be
liable for any consequential damages arising out of same. The foregoing
indemnity shall not be construed to cover any claim with respect to which
Licensee has committed to indemnify Licensor under Paragraph 23.2 below.

       23.2 During and after the
Term hereof, Licensee shall indemnify and hold harmless, Licensor, and
Licensor’s Representative, , Jason Dussault and Jason Dussault’s Partner's
Representative, and their respective parents, subsidiaries, affiliates,
officers, directors, representatives, employees and agents, and all persons
whose names and/or likeness are licensed hereunder (each, an “Indemnitee” and
collectively “Indemnitees”) from and against any and all claims, liabilities,
demands, causes of action, judgments, settlements and expenses (including, but
not limited to, reasonable attorneys’ fees and court costs) (“Claim”) arising
out of or in connection with (i) the design, manufacture, packaging,
distribution, shipment, advertising, promotion, sale or exploitation of the
Articles (including, but not limited to the use of any intellectual property
other than the Proprietary Subject Matter), (ii) any breach of any
representation, warranty, or covenant made by Licensee hereunder, or (iii) the
failure of Licensee to perform any of its covenants or obligations contained in
this Agreement provided, however, that in the event Licensor manufactures
Articles for sale by Licensee, Licensee’s indemnification obligations under this
paragraph shall not include any claim arising out of or in connection with the
design, manufacture, packing, distribution, shipment, advertising, promotion,
sale or exploitation of the Articles which is not attributable to Licensee’s
negligence or willful act or omission. In no event shall Licensee be liable for
any consequential damages arising out of same. Without limiting the generality
of the foregoing, Licensee’s indemnity shall specifically apply to claims
relating to or based upon defects in the Articles, whether hidden or obvious,
and despite Licensor’s approval of the Articles, it being agreed that any
governmental order of recall or injunction against distribution and/or sale
shall, as between Licensee and Licensor, be deemed conclusively proof of such
defect for the proposes of invoking Licensee’s indemnity hereunder. The
foregoing indemnity shall not be construed to cover any claim with respect to
which the Licensor has committed to indemnify Licensee under Paragraph 23.1
above. If any Claim is initiated against any Indemnitee with respect to which
such Indemnitee may make a claim against Licensee pursuant to this Paragraph
23.2, then the Indemnitee shall give prompt written notice of such Claim to the
Licensee. Licensee, at Licensee’s own expense, shall have the option to assume
the defense of such Claim. If Licensee assumes the defense of such Claim, (i)
Licensee shall keep the Indemnitee informed of all material developments and
events relating to such Claim, (ii) the Indemnitee shall have the right to
participate, at its own expense, in the defense of such Claim but such
participation shall not be deemed to give the Indemnitee the right to control
such defense), (iii) the Indemnitee shall cooperate as reasonably requested by
Licensee in the defense of such Claim, and (iv) Licensee shall not settle such
Claim without the prior written consent of the Indemnitee, which consent shall
not be unreasonably withheld. If Licensee fails to assume the defense of such
Claim, or fails to diligently defend such Claim, Indemnitee may assume the
defense of such Claim and Licensee shall reimburse Indemnitee for all reasonable
expenses (including reasonable attorneys’ fees) as such expenses are incurred,
relating to the defense of such Claim.

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24. Insurance.

     Licensee shall at all times while
this Agreement is in effect and for two (2) years thereafter, obtain and
maintain at its own expense, from a qualified insurance carrier with a Best
rating of at least “B,” insurance, including, without limitation, products
liability, personal injury, and advertising, which includes as additional
insureds Licensor, Jason Dussault and its Representative and their respective
parents, subsidiaries, affiliates, officers, directors, employees,
representatives and agents, Jason Dussault and its Representative and their
respective parents, subsidiaries, affiliates, officers, directors, employees,
representatives and agents. The amount of coverage shall not be less than the
amount specified in Paragraph 14 combined single limit (net of any deductible
amount) for each single occurrence. The policy shall provide for thirty (30)
days written notice to Licensor and its Representative from the insurer by
registered or certified mail, return receipt requested, in the event of any
modification, cancellation or termination. Upon execution of this Agreement, Licensee shall
furnish Licensor and with a certificate of insurance issued by the carrier
evidencing the same. In no event shall Licensee manufacture, advertise,
distribute or sell any Articles prior to Licensor’s receipt of such certificate
of insurance.

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	25.  Artwork; Approvals; Samples; Quality
      Control.

    25.1 Licensee undertakes that the Articles
as well as all packaging, hang tags, labels, press releases, advertising,
promotion, display or other materials of any and all types prepared by Licensee
in connection with the Articles (collectively the “Collateral Materials”) shall
be subject to Licensor’s prior approval and shall be of the highest standard and
quality. Notwithstanding the foregoing, any Collateral Material which is not
approved in writing by both Licensor shall be deemed disapproved.
Licensee shall also ensure and be solely responsible that all Articles and the
manufacture, distribution, sale, promotion and advertisement thereof comply with
all federal, state and local laws and regulations.

     25.2 Licensor shall supply
Licensee with its standard package of photographs, transparencies, designs,
materials, and artwork, as applicable, embodying the Proprietary Subject Matter
(“Artwork”) for Licensee’s use in the Articles or in the Collateral Materials.
If Licensee has supplemental requests for Artwork which results in an additional
expense to Licensor, Licensee shall pay Licensor for its out-of-pocket costs in
duplication and providing such Artwork to Licensee.

     25.3 Licensee shall furnish to
Licensor, without charge, a minimum number of samples of each finished Article
from the first production run, together with its Collateral Materials, as is
specified in this Agreement. Licensee shall not sell, ship, or distribute any
Articles until all such samples have been furnished to Licensor. No Royalties
shall be due or payable on all finished samples furnished to Licensor or on any
Articles sold to Licensor under Paragraph 16 above.

     25.5 Licensee shall allow
Licensor or its representative to enter Licensee’s premises and all
manufacturing facilities during regular business hours, upon three (3) business
days’ notice, for the purpose of inspecting the Articles, the Collateral
Materials, and the facilities in which they are manufactured and packaged. In
the event that the quality standards hereinabove referred to are not met,
Licensee shall, upon written notice from Licensor, discontinue the manufacture
and distribution of such Articles and/or the Collateral Materials related
thereto, unless Licensee shall have remedied such failure of quality to
Licensor’s satisfaction within twenty (20) business days after Licensee’s
receipt of notice thereof; failure to effect such remedial measures shall
entitle Licensor to terminate this Agreement upon notice to Licensee and in such
event , subject to Licensee’s right to terminate this Agreement in Paragraph 13
above,Licensee shall
pay to Licensor the amount of the Guarantee, less any Royalties previously paid
to Licensor under this Agreement.

 14

	26. Reserved Rights.

    26.1 Licensor and Jason Dussault reserve all
rights not expressly granted to Licensee hereunder, including but not limited to
the right to use and/or license other trademarks owned by Licensor or Jason
Dussault to any third party for apparel items or otherwise and to use and/or
license the Proprietary Subject Matter to third parties for any goods or
services not included within the definition of “Articles.”

     26.2 Licensor shall not be
prevented form granting third parties the right to use the Proprietary Subject
Matter in any manner whatsoever, except as otherwise provided herein.

     26.3 It is specifically
acknowledged by Licensee that all personal, publicity and other rights of
Licensor not granted in Paragraph 3, shall not be included in the definition of
Proprietary Subject Matter and the use thereof is not licensed herein.

	27. Manufacture and
  Distribution.

     27.1 The Proprietary Subject Matter
may only be used in connection with the manufacture, actual packaging and
advertising, promotion and distribution of the Articles.

     27.2 Licensee shall be entitled
to sublicense the right to manufacture Articles to any third party (“Supplier”),
within or without the Territory in whole or in part, with Licensor’s prior
written consent. Licensee represents and warrants that it shall familiarize each
such Supplier with the terms and conditions of this Agreement as they apply to
such Supplier. In addition, Licensee acknowledges and agrees that Licensee’s use
of any such Supplier shall in no way derogate from or relieve Licensee of any of
its obligations under this Agreement. Licensee further acknowledges and agrees
that it shall be responsible and primarily liable for all activities and
obligations of all such Suppliers taken pursuant to Licensee’s direction with
respect to the Articles. Furthermore, if Licensor so requests, Licensee shall
cause each such Supplier to sign an agreement with Licensee for the manufacture
of the Articles, in whole or in part, in a form satisfactory to Licensor and
which shall preclude each such Supplier from making any claim against or
bringing any suit or proceeding against for any reason whatsoever.

     27.3 The Proprietary Subject
Matter shall not be used in conjunction with any other musical artist or group,
name, character, symbol, design, likeness or literary or artistic material,
except that actual representations of an Article and its packaging may be shown
in advertising showing other Articles sold by Licensee, provided such use is not
made in a manner that may be likely to cause doubt or confusion in the minds of
the public as to the ownership of the Proprietary Subject Matter,
and in no event may the Articles be packaged for sale with other articles.

15

     27.4 Upon request by Licensor and
upon ten (10) business days prior written notice to Licensee, Licensee agrees to
provide Licensor with any and all lists compiled by Licensee in connection with
Licensee’s marketing of the Articles hereunder of names and addresses of
customers or potential customers thereof, including but not limited to any
so-called registration cards as completed and sent to Licensee by purchasers of
the Articles hereunder.

	28.  Representations and
    Warranties.

    28.1 Licensor represents and warrants to
Licensee as follows: (i) Licensor owns or controls all rights in and to the
Proprietary Subject Matter; and (ii) Licensor has the full right, authority and
power to enter into this Agreement and to perform all its obligations hereunder.
Licensor makes no representation or warranty as to the amount of receipts
Licensee will derive.

     28.2 Licensee represents and
warrants to Licensor as follows: (i) Licensee has full power and authority to
enter into this Agreement and perform its obligations herein; and (ii)
Licensee’s execution, deliver, and performance of this Agreement will not
infringe upon the rights of any third party or violate the provisions of any
agreement to which Licensee is a party; and (iii) Licensee will perform its
obligations and exercise its rights under this Agreement in compliance with all
applicable laws. Except as provided in this Agreement Licensee makes no
representation or warranty as to the amount of income Licensor will derive from
this Agreement or the articles.

	29. Termination/Security
  Interest.

     29.1 In addition to any and all other
remedies available to it hereunder, Licensor shall have the right to immediately
terminate this Agreement upon written notice to Licensee upon the occurrence of
any of the following:

              
29.1.1 Licensee makes, sells, offers for sale, uses or distributes any Article
without having the prior written approval of Licensor as specified in this
Agreement or continues to make, sell, offer for sale, use or distribute any
Article after receipt of notice from Licensor withdrawing approval for same.

             
29.1.2 Licensee becomes subject to any voluntary or involuntary order of any
government agency involving the recall of any of the Articles because of safety,
health or other hazards or risks to the public.

     29.2 In addition to any and all
other remedies available to it hereunder, on seven (7) days prior written notice
to Licensee, Licensor may terminate this Agreement (in which case such
termination shall be effective immediately upon expiration of the seven (7) day notice period), upon the occurrence of any of the
following circumstances, provided that during such seven (7) day period,
Licensee fails to cure the breach to Licensor’s satisfaction:

 16

               29.2.1
Licensee fails to immediately discontinue the advertising, distribution or sale
of Articles which do not contain the appropriate legal legend or notice.

               29.2.2
Licensor breaches any of the provisions of this Agreement relating to the
unauthorized assertion of rights in the Proprietary Subject Matter.

               29.2.3
Licensee fails to make timely payment of Royalties when due or fails to make
timely submission of Royalty Reports when due. 

               29.2.4
Licensee intentionally sells or authorizes the sales of Articles outside the
Territory, or knowingly sells the Articles to persons who intend or are likely
to resell them outside the Territory.

     29.3 In addition to any and all
other remedies available to it hereunder, on thirty (30) days prior written
notice to Licensee, Licensor may terminate this Agreement (in which case such
termination shall be effective immediately upon expiration of the thirty (30)
day notice period), upon the occurrence of any of the following circumstances,
provided that during such thirty (30) day period, Licensee fails to cure the
breach to Licensor’s satisfaction:

               29.3.1
Licensee fails to obtain or maintain insurance as required under Paragraphs 14
and 24 hereof.

               29.3.2
A petition in bankruptcy is filed by or against Licensee; Licensee is
adjudicated bankrupt or insolvent, or makes an assignment for the benefit of
creditors or an arrangement pursuant to any bankruptcy law; Licensee
discontinues its business; or a receiver is appointed for Licensee or Licensee’s
business and such receiver is not discharged within thirty (30) days.

               29.3.3
Licensee violates any of its other obligations or breaches any of its covenants,
agreements, representations or warranties hereunder.

     29.4 In addition to any and all
other remedies available to it hereunder, on thirty (30) days prior written
notice to Licensor, Licensee may terminate this Agreement (in which case such
termination shall be effective immediately upon expiration of the thirty (30)
day notice period), in the event Licensor breaches any provision of this
Agreement and Licensor fails to cure the breach during such thirty (30) day
period.

     29.5 In addition to any and all
other remedies available to it hereunder, on thirty (30) days prior written
notice to Licensee, Licensor may terminate this Agreement with respect to any category of Articles that Licensee has not
shipped in commercial quantities to purchasers within the twelve (12) month
period immediately preceeding the date of such notice; provided, however, that
in the event of such termination, Licensee may sell-off any Articles within such
category during the period set forth in Section 30.2.

17

     29.6 In addition to any and all
other remedies available to it hereunder, on one hundred eighty (180) days
prior written notice to Licensee, Licensor may terminate this Agreement without
cause (in which case such termination shall be effective immediately upon
expiration of the one hundred eighty (180) day notice period) at any time within
the first twelve (12) months of the Initial Term; provided, however, that in the
event of such termination, the sell-off period pursuant to Section 30.2 shall be
increased from ninety (90) days to one hundred eighty (180) days.

	30. Effect of
Termination.

   30.1 Except as otherwise provided in this
Agreement, on expiration or termination of this Agreement, all Royalties
(including unpaid portions of the Guarantee, if any) shall be immediately due
and payable except that Royalties attributable to any then outstanding account
receivable shall be payable within thirty days of receipt of same by Licensee
and if no payment of same is received within one hundred days of termination
Licensor may elect to have assigned to it such portions of the accounts
receivable in question that equal the amount of Royalties due to Licensor from
same. Except as otherwise provided in this Agreement, termination of this
Agreement, or any portion thereof, by Licensor pursuant to Paragraph 29 shall in
no way reduce, proportionally or otherwise, the amount required to be paid to
Licensor hereunder. Ninety (90) days before the expiration of the Term, and in
the event of its sooner termination, ten (10) business days after receipt of
notice of termination, a statement showing the number and description of
Articles on hand or in process shall be furnished by Licensee to Licensor.
Licensor shall have the right to take a physical inventory to ascertain or
verify such inventory and statement. Refusal by Licensee to submit to such
physical inventory by Licensor and/or failure by Licensee to render the final
statement as and when required by this prevision, shall result in a forfeiture
by Licensee of Licensee’s right to dispose of its inventory (as provided by
Paragraph 30.2 hereof), Licensor retaining all other legal and equitable rights
Licensor may have in the circumstances.

     30.2 On expiration of this
Agreement or on termination pursuant to Paragraph 29.5 or 29.6 only,
Licensee shall have a period of ninety (90) days or one hundred eighty days,
as applicable, commencing with the expiration date, in which to sell-off (on
a non-exclusive basis) Articles which are on hand or termination in
process as of the expiration/termination date; provided, however, (i)
Licensee complies with all the terms and conditions of this Agreement, including, but not limited
to, Licensee’s obligation to pay Royalties on and to account to Licensor for
such sales (such accounting to be provided to Licensor within fifteen (15) days
after the expiration of the sell-off period); (ii) Licensee has not manufactured
Articles solely or principally for sale during the sell-off period; and (iii)
subject to outstanding purchase orders on the date the Term expires or this
Agreement is terminated, whichever is earlier, Licensee has given Licensor the
opportunity to purchase such Articles at Licensee’s cost of manufacture thereof,
which purchase may be of some or all such units, in Licensor’s sole discretion. Licensee shall not dispose of the excess inventory for prices which are less
than ninety percent (90%) of the lowest price at which such Articles were sold
during the twelve (12) months immediately preceding the date of termination or
expiration. Licensee shall not be authorized to dispose of the excess
inventory in the sell-off period to the extent that it exceeds ten percent (10%)
of the total number of Articles sold during the Term, without Licensor’s prior
written consent. During the sell-off period, Licensor may use or license the use
of the Proprietary Subject Matter in any manner, at any time, anywhere in the
world.

18

     30.3 On expiration or termination
of this Agreement, except as noted in Paragraph 30.2 above, Licensee shall have
no further right to exercise the rights licensed hereunder or otherwise acquired
in relation to this Agreement and such rights shall forthwith revert to
Licensor. All Artwork and other materials supplied to Licensee by Licensor
hereunder shall be immediately returned to Licensor at Licensee’s expense.
Except as noted in Paragraph 30.2 above, all remaining Articles and component
parts thereof shall be destroyed Licensee shall, within five (5) business days
after such destruction, deliver to Licensor a certificate of destruction
evidencing same. Licensee agrees that (i) its failure to cease the manufacture,
sale and/or distribution of Articles upon the expiration or termination of this
Agreement will result in immediate and irreparable damage to Licensor, (ii)
there is no adequate remedy at law for such failure and (iii) in the event of
such failure, Licensor shall be entitled to injunctive relief.

     30.4 Upon expiration or
termination of this Agreement, (i) if the Underlying Agreement specifies that
the license granted hereunder is an exclusive license, Licensor shall be free to
license others to use the Proprietary Subject Matter in connection with the
manufacture, sale, distribution and promotion of the Articles in the Territory
(it being acknowledged that Licensor has the full and complete right to do so
during the Term if the license granted is a non-exclusive License), and (ii)
Licensee shall refrain from further use of the Proprietary Subject Matter in
connection with the manufacture, sale, distribution or promotion of Licensee’s
products except as permitted in Paragraph 30.2 above. It shall not be a
violation of any right of Licensee if Licensor should at any time during the
Term enter into negotiations with another to license use of the Proprietary
Subject Matter in respect to the Articles within the Territory provided that, in
the event that the license granted to Licensee hereunder is an exclusive
license, it is contemplated that such prospective license shall commence after
termination of the Agreement.

19

	31. Notices. 

     All notices, demands, contracts
or waivers hereunder shall be given in writing by mail, messenger, overnight air
courier, e-mail, or telefax addressed as indicated in the Underlying Agreement
or as otherwise indicated in writing by a party hereto. The date of messengering
or telefaxing shall be deemed to be the date of service. Three (3) business days
from the date of mailing shall be deemed to be the date of service for mailed
notices. One (1) business day from the date of overnight air courier handling
shall be deemed to be the date of service for courier handled notices.

32. No Modification; Waiver.

     The terms of this Agreement shall
not be modified except by an agreement in writing signed by both parties hereto.
No waiver by either party of a breach or default hereunder shall be deemed a
waiver of such party of a subsequent breach or default of alike or similar
nature.

33. Entire Agreement.

     This Agreement shall constitute
the entire understanding of the parties with respect to the subject matter,
superceding all prior and contemporaneous promises, agreements and
understandings, whether written or oral pertaining thereto.

34. Relationship of the Parties.

     This Agreement does not appoint
either party as the agent of the other party, or create a partnership of joint
venture between the parties.

35. Governing Law.

     This Agreement shall be construed
and interpreted pursuant to the laws of the State of Nevada and the parties
hereto submit and consent to the jurisdiction of the courts of the State of
Nevada, including the Federal Courts located therein, should Federal
jurisdiction requirements exist, in any action brought to enforce (or otherwise
relating to) this Agreement. Licensee hereby consents to the exclusive
jurisdiction of any State or Federal court empowered to enforce this Agreement
in the State of Nevada, Clark County, and waives any objection thereto on
the basis of personal jurisdiction or venue. Notwithstanding the foregoing,
nothing contained in this Agreement shall preclude Licensor from bringing an
action in any appropriate forum to enforce the terms and provisions of this
Agreement.

36. Severability.

     If any provision of this
Agreement is held by a court of competent jurisdiction to be unenforceable, such
decision shall not affect the validity or enforceability of any of the remaining provisions, which remaining provisions shall
continue to have full force and effect.

20

37. Confidentiality.

     Other than as may be required by
any applicable law, government order or regulation, or by order or decree of any
court of competent jurisdiction, Licensee shall not publicly divulge or
announce, or in any manner disclose to any third party, any information or
matters revealed to Licensee pursuant hereto, or any of the specific terms and
conditions (including but not limited to Royalty Rates, Guarantees and Net Sales
of Articles) of this Agreement. 

38. Counterparts.

     This Agreement may be executed in
any number of counterparts, each of which shall be deemed to be an original and
all of which together shall be deemed to be one and the same Agreement. Copies
of this Agreement, including facsimile copies may be used in lieu of the
originals for all purposes. If a party signs this Agreement and then transmits
an electronic facsimile of the signature page to any other party, that party who
receives the transmission may rely upon the electronic facsimile as a signed
original of this Agreement.

39. Further Assurances.

     The parties hereto shall execute
such further documents and perform such further acts as may be necessary to
comply with the terms of this Agreement and consummate the transactions herein
provided.

40. Headings.

     The headings contained in this
Agreement are for convenience and reference purposes only. They do not form a
part hereof and shall not affect the meaning or interpretation of this
Agreement.

41. Assignment.

     Licensee’s rights and obligations
hereunder are personal to Licensee and shall not be assigned to any affiliate of
Licensee (including, without limitation, subsidiary and parent companies, and
partnerships, joint ventures and the like, in which Licensee has an interest) or
to any third party. Except as permitted by Paragraph 27.2 of this Agreement,
Licensee’s rights and obligations hereunder shall not be sublicensed, assigned,
mortgaged or otherwise transferred or encumbered by Licensee or by operation of
law unless otherwise previously agreed in writing by Licensor. Licensor may not
assign this Agreement to any person without the prior written consent of
Licensee. 

21

	42. Equitable Remedies. 

     Licensee acknowledges that its
failure to perform any of the material terms and conditions of this Agreement
shall result in immediate and irreparable damage to Licensor. Licensee also
acknowledges that there may be no adequate remedy at law for such failures and
that in the event thereof, Licensor shall be entitled to equitable relief in the
nature of an injunction and to all other available relief, at law or in
equity.

End of Additional Terms and Conditions.

22ex10-1.htm

EXHIBIT 10.1

REAL ESTATE SALE AGREEMENT

 

THIS AGREEMENT, dated the 16th day of February 2010, is by and between Freedom2, Inc., whose address is 1971 Old Cuthbert Road, Cherry Hill, New Jersey, (hereinafter referred to as "Seller") and Kol Marble and Granite whose address 3 Larwin Road, Cherry Hill, New Jersey (hereinafter referred to as "Buyer").

 

 RECITALS:

 

A.           Seller is the owner of the real estate located at 1971 Old Cuthbert Road, Township of Cherry Hill, County of Camden and State of New Jersey, designated as Lot 7, Block 466.01, on the tax map of Cherry Hill Township, and described in the attached Exhibit A hereinafter referred to as the “Property.”

 

B.           Seller desires to sell and convey and Buyer desires to purchase and receive the Property all upon the terms and conditions hereinafter set forth.NOW THEREFORE, in consideration of the recitals and mutual covenants contained herein, the parties, intending to be legally bound, agree as follows:

 

1.           SALE AND PURCHASE OF PROPERTY 

 

A.           Upon the terms and subject to all of the conditions contained herein, and the performance by each of the parties hereof of their respective obligations hereunder, Seller agrees to sell, convey, transfer and assign to Buyer, and Buyer agrees to purchase from Seller, all of the Seller’s right, title and interest in and to the Property; including the existing structures and improvements.

 

B.           The Property includes the contents and fixtures of the Property, but excludes Seller’s trade fixtures.

 

                2.           PURCHASE PRICE  The price for the Property is One million one hundred fifty thousand dollars ($1,150,00.00).

 

A.           The purchase price shall be paid as follows: 

 

i.           Upon execution of this Agreement, a deposit of  $57,500.00 to be held in escrow in a non interest bearing escrow account by a title company, which will be identified by the Seller. 

 

ii.           The balance of the purchase price ($1,092,500.00) in cash, certified check, or other immediately available funds at the time of final settlement. 

 

B.           The deposit monies will be held in a non-interest account until Closing or until otherwise provided in this Agreement.  The escrow agent shall not be required to resolve any dispute which may arise between Buyer and Seller concerning the deposit monies.  Escrow Agent shall require written consent from Buyer and Seller before paying out the deposit monies.  In the event of a dispute, Escrow Agent shall retain the deposit monies until it receives a court order authorizing its distribution. 

 

3.           MORTGAGE FINANCING CONTINGENCY/SUFFICIENT ASSETS.                                                                                                        

 

            Buyer's obligation to purchase under this agreement is contingent upon Buyer obtaining a written commitment for ninety-five (95%) percent financing from any reputable commercial lender, to make a first mortgage loan on the Property.  The Buyer shall promptly apply for this loan and make a good faith effort to obtain it.  The Buyer must receive the written commitment by April 5, 2010.  The terms of the commitment must be at least as favorable to the Buyer as the following: 

 

-Principal amount of mortgage loan.....................95%.

 

-Annual interest rate.............................................Prevailing  %

 

-Length of mortgage.............................................30 years with monthly payments based on 30 year amortization schedule

 

-"Points" if any to be paid:  by Buyer................ANY/ALL

 

         by Seller..........NONE

 

  

  

  

 

The Seller and the Buyer may later agree to extend the date for obtaining the commitment.  The Buyer may accept a commitment on less favorable terms or agree to buy the Property without this mortgage loan.  If none of these events occurs and the Buyer does not receive the written commitment by the above date, either party may cancel this Contract or the buyer may waive this Mortgage Contingency clause and continue with all other terms of this Contract. 

 

             The purchase of the captioned property is not contingent upon the sale of any other property.

 

4.           SHORT SALE CONTINGENCY.  This Agreement and Seller’s obligations hereunder are contingent upon Seller obtaining approval for a “Short Sale” from its lender and other lienholders and being fully released and discharged from liability for any such liens, encumbrances and underlying loan or other documents of obligation.  See the Short Sale Addendum, attached hereto and incorporated herein by this reference.

 

5.           TIME AND PLACE OF CLOSING.  Settlement will be made on or about April 20th, at the offices of Buyer's Attorney/Title Agency/Realtor, whichever location is deemed mutually convenient at the time of closing by the parties.  Seller and Buyer agree that all times for performance of this Contract are OF THE ESSENCE.  This means that the Seller and Buyer must perform what is required of them within the time limits set by this Contract, or be in default.  It is recognized however, any extensions of time may be granted in writing by mutual consent of the parties.      

 

6.           REAL ESTATE COMMISSION.                                                                 

 

Each party warrants to the other that, to their knowledge, no real estate or other brokers commissions are payable as a result of this transaction except that the Seller has engaged the services of Binswanger of Pennsylvania, Inc  and the seller will be fully responsible for any and all costs associated with their services .   

 

7.           TITLE.

 

Seller warrants that it is the sole owner of the Property and no one has any other rights therein.  The title of the Property to be transferred by Seller shall be good and marketable title and insurable at regular rates by a reputable title insurance company authorized to do business in the State of New Jersey.  Title to the Property shall be free and clear of all monetary liens and encumbrances. 

 

          Title shall be conveyed by way of bargain and sale deed with covenants against grantor’s acts, which deed shall be prepared at the expense of Seller.  Seller shall also supply an affidavit of title and such other documentation as is reasonably required by Buyer’s title insurance company to insure title.

 

Seller warrants that all building or other improvement on the Property are within its boundary lines and that no improvements on adjoin properties extend across the boundary lines of the Property.  The title shall be subject to all restrictions, easements and other matters of record. Within five (5) days of the date of their receipt of a fully executed copy of this Agreement, Buyer shall, at its expense, make application for a title commitment for the Property.  Any objection of title shall be promptly communicated to Seller, who shall remove same as a condition to Closing.  Buyer shall also have the right, at its expense, to cause a survey to be made of the Property.  

 

Except as otherwise permitted by the Short Sale Addendum, Seller agrees that, so long as this Agreement is in effect, Seller shall not mortgage, assign, rent, lease, convey, or grant a security interest in, contract to sell or otherwise encumber or dispose of all or any part of the Property without the written consent of Buyer, which consent shall not be unreasonably withheld. 

 

In the event that such title cannot be delivered by Seller as above stated and Buyer is unwilling to accept such title as Seller can deliver, then at Buyer’s option Buyer may, by notice to Seller, given with ten (10) days after notice from Seller that Seller is unable to convey such title, either: (i) accept such title which Seller is able to deliver without any claim for reduction of the purchase price; or (ii) be excused from their obligation to purchase the Property, in which case the deposit monies shall be returned to Buyer and the parties shall have no further liability or obligation to each other hereunder. 

 

8.           ADJUSTMENTS AND INCIDENTAL COSTS.  

 

A.           Taxes, water, sever and other customary adjustments or charges shall be apportioned between Buyer and Seller as of the date of Closing.  All tax adjustments shall be the basis of fiscal year used by the taxing authority. 

  

  

  

B.           Seller shall pay for any conveyancing fees, including preparation of Deed, Sellers Affidavit of Title, real estate transfer taxes assessed upon this transaction, lien discharge fees and release of mortgage. 

 

C.           Buyer shall pay for the cost of title insurance premiums. 

 

D.           Each party shall pay their own counsel fees. 

 

E.           The parties shall evenly divide the title company attendance fee, if any. 

 

F.           Seller shall deliver such affidavits of title as are reasonably required by Buyer’s title insurance company. 

 

  9.           STRICT PERFORMANCE.  The failure of the Buyer or Seller to insist upon strict performance of any of the covenants or conditions of this Agreement shall not be construed as a waiver or relinquishment for the future of any such covenants or conditions, but the same shall be and remain in full force and effect.

 

                10.           POSSESSION.  Seller shall give Buyer possession of the Property, free of all leases, tenancy obligations and claims of right of possession at the time of Closing of title, with the exception of the following:

 

                11.           ASSIGNMENT AND DESIGNATION OF NOMINEE.  This Agreement shall bind the parties hereto and inure to the benefit of the legal representatives, successors and assigns of the respective parties hereto.  This Agreement may not be assigned by any party without the written consent of the other party. 

 

12.           ENTIRE AGREEMENT.   This Agreement contains the complete agreement between Seller and Buyer, and there are no other terms, obligations, covenants, representations, statements or conditions, oral or otherwise, of any kind whatsoever, concerning this sale.  This Agreement shall not be altered, amended, changed or modified except in writing executed by both Seller and Buyer. 

 

13.           MODIFICATION.   This Agreement may not be modified, altered, amended or changed except by an instrument in writing, duly and validly executed by parties hereto. 

 

14.           SEVERABILITY.   The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability or any other provision. 

 

15.           CONSTRUCTION.   This Agreement was made and executed in the State of New Jersey, and shall be governed by and construed according to the laws of the State of New Jersey.  The parties hereto expressly consent to the exclusive jurisdiction of the Superior Court of New Jersey, Camden County, with regard to any matter relating to the construction, enforcement or termination of this Agreement. 

 

16.           NOTICES.   All notices to be given by either party to the other shall be in writing, shall be served either in person, by fax, express mail carrier or by depositing such notice in the United States mails, certified or regular, properly addressed and directed to the party at the addresses listed above. 

 

17.           AS-IS CONDITION OF PROPERTY AT TIME OF CONTRACT AND CLOSING.  Except as may be otherwise noted herein, the Property is being sold “As-Is,” in its current condition, Seller agrees to maintain the Property and the grounds until Closing and shall deliver the Property on the date of Closing free of debris and in broom clean condition.  Buyer shall have the right to inspect the Property immediately prior to Closing to insure the condition of the Property is as agreed.  Seller represents to Buyer that the Property is serviced by public water and sewer.

 

A warranty is a promise.  Seller warrants that the plumbing, electrical, and heating systems together with all equipment servicing those systems, central air conditioning, if existing, and all appliances, at the time of settlement, are functioning as well as can be expected (without being deficient) for a commercial system item or appliance of its age.  Buyer shall have the right to inspect the property immediately prior to settlement to ensure that these items are in working order, also that the conditions of the property are as agreed. Seller shall have all utilities in service during the 48 hour period preceding settlement.

 

The Seller shall transfer the Property to the Buyer in its present condition except for normal wear caused by reasonable use between now and the closing.  The grounds shall be maintained.  The buildings shall be vacant and in broom-clean condition.  All debris and the Seller's personal property not included in the sale shall be removed.  The walks and driveway shall be free of snow and ice.  The Buyer may inspect the Property within 48-hours before the closing on reasonable notice to the Seller.

  

  

  

               18.           CERTIFICATE OF OCCUPANCY; ZONING. The State of New Jersey and/or Township of Cherry Hill may require an inspection(s) of the Property by a representative of the municipality (including inspections concerning smoke detectors and carbon monoxide detectors) and the issuance of a Certificate of Occupancy or Continued Occupancy before title can be transferred.  If so, the Buyer agrees to apply for and obtain same, at its expense, within twenty (20) days of the date of this Agreement.  Any repairs required as a result of the application shall be made at Buyer’s expense.  In the event the cost of any repairs exceeds $10,000.00, Buyer may cancel this Contract.  If Buyer elects to cancel this Contract under this paragraph, the deposit monies paid by the Buyer will be returned. In the alternative, Seller may agree to pay for any required repairs in excess of $10,000.00. 

 

The Seller represents that to the best of its knowledge, information and belief the existing zoning of the Property is designated as Commercial Property and further, Seller is not presently using the Property in violation of any ordinances, zoning or otherwise. The Seller makes no representation or warranty as to whether the Property is currently zoned in such a manner that would permit Buyer’s intended use and Buyer is advised to undertake its own due diligence and make its own assessment in this regard.

 

            Further, the Seller shall be responsible for obtaining ISRA approval prior to Settlement.

 

                19.           DEFAULT.  In the event Buyer commits a default of the terms of this Agreement or fails to proceed to settlement as required hereunder, Seller may commence any legal or equitable action to which Seller may be entitled.  In the event Seller commits a default of the terms of this Agreement or fails to proceed to settlement as required hereunder, Buyer shall be entitled to commence any legal or equitable action available to Buyer under the law. 

 

20.           RISK OF LOSS; CONDEMNATION; FLOOD ZONE.  The risk of loss of or damage to the Property is on the Seller until title passes.  In the event of damage to the Property prior to Closing which, in the sole discretion of Buyer, causes Buyer’s performance to be infeasible, Buyer may cancel this Agreement whereupon the deposit monies shall be returned to Buyer.  Seller agrees that Seller shall maintain in force a policy of insurance against fire.

 

            Seller warrants that it has no knowledge of any action or proceeding pending, threatened or instituted in eminent domain or for the condemnation of any part of the Property.  If Seller becomes aware of same in the future, it shall give immediate written notice to Buyer, who may elect to cancel this Agreement whereupon the deposit monies shall be returned to Buyer.

 

Seller represents that to the best of its knowledge the Property is not located in a flood zone.  In the event the Buyer determines the Property is located within a flood zone, Buyer will have the option to terminate this Agreement and all deposit monies shall be returned to Buyer and all rights and liabilities of the parties to the contract shall cease and terminate. 

 

21.           ACCESS TO PROPERTY.  Seller agrees to provide Buyer, its employees or agents, whatever access to the property is reasonably necessary for the conducting of inspections, engineering studies, measurement or any other reasonable purpose.

 

22.           INSPECTIONS/FEASIBILITY STUDY.  Buyer shall have a period of thirty (30) days from the date of this Agreement to conduct inspections, and such other investigations (including but not limited to a Phase I Environmental Study) as the Buyer deems appropriate to determine the condition of the Property and if the Property is suitable for use as intended by Buyer (“Due Diligence Period”).

 

Although the premises is being purchased "AS IS", the Buyer may order a structural, mechanical, plumbing, heating, and electrical inspection of the Property by an established inspector.  The Buyer may also order inspections of the septic or other sewage disposal system, the water system for potability and pressure, and any environmental inspections.  The inspections must be made within 30 days of the execution of this contract. The Buyer shall pay for the inspections, except for the state mandated well water test, if necessary.  The Seller shall make the Property available for the inspections on reasonable notice.  If the report of any of the inspections reveals a defect in any of the above listed systems requiring repair or replacement in excess of $10,000, the Buyer may cancel or renegotiate this Contract within 5 days after the inspections and be entitled to a return of the deposit.  The Buyer shall include a copy of the inspection report with the notice of cancellation. 

 

  Seller is not obligated to pay for the repair of any defects provided in said inspection report.

 

               23.           SELLER NOT LIABLE TO BUYER AFTER SETTLEMENT.  All warranties, guarantees, representations of Seller concerning the property, the systems servicing the property, the appliances, lot lines, location of structures, driveways, fences and any other matter affecting this Contract, unless otherwise set forth in writing shall be absolutely void after settlement or delivery and acceptance of possession or occupancy, whichever is earlier.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date set forth below.

 

Witnessed or attested by:

 

 Date:                                                                As to Seller                                                       

 

Date:                                                                As to Buyer                                          

 

  

  

  

SHORT SALE ADDENDUM

 

Date: February 16, 2010

 

1.           ADDENDUM to Contract.  This Short Sale Addendum (Addendum) is made a part of the Agreement between Seller and Buyer (“Agreement”) dated February 16, 2010 relating to the sale of the Property known as 1971 Old Cuthbert Road, Cherry Hill, New Jersey (“Property”).

 

This Addendum shall control in the event of any conflict with the Agreement.  Except as modified, all other terms and provisions of the Agreement shall remain the same.

 

2.           PURPOSE AND DEFINITIONS.

 

2.1           Purpose of Addendum.  Seller has debts secured by one or more liens on the Property.  The Purchase Price will not be enough to cover payment for all the liens and costs of sale.  Accordingly, the affected Lien Holders (§ 2.2 below) must agree to a Short Sale (§ 2.3 below).

 

2.2.           Lien; Lien Holder.  A Lien is a recorded claim or lien against the Property, including, but not limited to, a mortgage, deed of trust, mechanic’s lien, judgment or tax lien ("Lien").  A title insurance commitment may be used to show the Liens against the Property.  A Lien Holder is a creditor who has a Lien and agrees to release its Lien in a Short Sale (§ 2.3 below).

 

2.3.           Short Sale.  A Short Sale (“Short Sale”) is a transaction in which any Lien Holder releases its Lien against the Property and (a) accepts an amount less than the full amount Lien Holder claims is owed or (b) treats the debt secured by the Lien differently than as originally provided for in the evidence of debt (such as promissory note).  Before a Short Sale can occur, Buyer, Seller, and each Lien Holder (except those creditors that are to be paid the full amount claimed) must consent to the terms of the sale.  Sometimes, a Lien is released but the Lien Holder does not agree to release Seller from liability or reduce the unpaid portion of the debt, and the Seller and any guarantors will remain liable after Closing for that unpaid portion, despite the release of the Lien against the Property at Closing.

 

2.4.           Short Sale Acceptance.  Short Sale Acceptance (“Short Sale Acceptance”) is when Seller receives one or more written statements, signed by each Lien Holder, that specify the terms and conditions of the Short Sale.

 

3.           SHORT SALE CONDITIONS.  Notwithstanding anything to the contrary in this Addendum, the Agreement between Seller and Buyer, for the benefit of both Seller and Buyer, is conditional and contingent upon all of the following occurring:

 

               3.1.           Seller has received from each Lien Holder a Short Sale Acceptance that is acceptable to Seller in Seller’s sole and absolute discretion.

 

               3.2.           Agreement to Amend/Extend Agreement signed by Buyer and Seller, so long as both parties agree, in their sole subjective discretion, to the changes to the Agreement required by the Short Sale Acceptance.

 

4.           SELLER DEADLINE FOR SUBMISSION TO LIEN HOLDER.  Seller agrees to submit to each Lien Holder a request for a Short Sale and all documents and information requested by Lien Holder, including a copy of the Agreement, any Counterproposal, this Addendum and amendments.  The initial submission by Seller to each Lien Holder shall be on or before Initial Submission Deadline (§ 5.1 below).  Any additional information or documentation requested of Seller by such Lien Holder shall be submitted within five (5) days of such request or Buyer may terminate the Agreement pursuant to § 7.2 below.

 

4.1.           Seller Submission Deadline. The Seller Submission Deadline shall be as set forth below.

 

	
Event

	
Deadline

	
From

	
Initial Submission

	
Ten (10)

	
days from Seller’s receipt of the Agreement signed by Buyer

 

 

 

 

 

 

 

 

 

  

  

  

4.2.           Seller Consents to Lien Holder’s Release of Information.  Seller consents that Lien Holder and its representatives may supply and communicate any loan, financial information, or other information of Seller, confidential or otherwise, with any of the following involved in the transaction and their representatives: Seller’s attorney, Broker or Brokerage Firm working with Seller, transaction coordinator, title insurance company, Closing Company, and the following as checked:  Other Lien Creditors   Broker or Brokerage Firm working with Buyer   Buyer   Buyer’s attorney.

 

5.           DATES AND DEADLINES.

 

5.1.           Revised Dates and Deadlines and Other Terms.  Buyer and Seller acknowledge that an Agreement to Amend/Extend Contract (Amend/Extend) may be required to revise the Agreement Deadlines or other terms based on changes required by the Short Sale Acceptance.  If both Buyer and Seller, in their sole subjective discretion, agree to the terms of the Amend/Extend, as evidenced by their signatures on the Amend/Extend; and the offering party to the Amend/Extend receives notice of such acceptance on or before seven days after the earlier of: (a) the receipt by both Buyer and Seller of the Short Sale Acceptance; or (b) the Short Sale Acceptance Deadline (§ 7.1 below), then the Agreement shall be so amended.  If notice of such acceptance is not timely received, the Agreement shall then terminate.

 

6.           UNCERTAINTY OF SHORT SALE.  Buyer and Seller acknowledge:

 

6.1.           There are no promises or representations regarding: (a) whether Lien Holder will agree to a Short Sale, (b) the terms of any Short Sale Acceptance, or (c) when the Lien Holder will advise of its decision to agree to a Short Sale or provide the written terms and conditions of the Short Sale Acceptance.

 

6.2.           Until Closing of the Short Sale, Short Sale Acceptance by the Lien Holder will not prevent, hinder or delay the Lien Holder from initiating or proceeding with any enforcement action, including but not limited to a foreclosure.  In the event Seller loses ownership of the Property through foreclosure, the Agreement shall terminate.

 

6.3.           A significant period of time may be required to determine if a Short Sale Acceptance will be granted.  Therefore, Buyer should inform Buyer’s lender of this fact for structuring Buyer’s loan, duration of “loan lock”, etc.  Additionally, Closing is normally required to be held shortly following the Short Sale Acceptance.

 

6.4.           After a Short Sale Acceptance is given, Lien Holder will normally not agree to any additional changes to the terms of the Agreement that differ from the Short Sale Acceptance, to have repairs performed or to reduce the amount it is willing to accept due to the condition of the Property or results of an inspection.  Buyer may want to conduct an inspection of the Property before Seller submits its request for a Short Sale to Lien Holder.  The Purchase Price should reflect the condition of the Property and results of such inspection.  Buyer recognizes the risk that Lien Holder may not agree to the offer submitted by Buyer.

 

7.           DEADLINE FOR ACCEPTANCE OF SHORT SALE; TERMINATION.  Buyer and Seller must receive written notice of the Short Sale Acceptance on or before Short Sale Acceptance Deadline (§ 7.1 below) or the Agreement shall terminate.

 

7.1.           Short Sale Acceptance Deadline.

 

	
Event

	
Deadline

	
Short Sale Acceptance Deadline

	
April 15, 2010

 

7.2.           Termination.  If any party has a right to terminate the Agreement, such termination shall be governed by the relevant portions of the Agreement, upon written notice to the other party as described in the Agreement.

 

7.3           Additional Rights of Termination. Both Buyer and Seller have the right to Terminate the Agreement by written notice to the other party so long as it is received on or before Short Sale Acceptance.  Additionally, Seller has the right to accept subsequent offers from other buyers prior to Short Sale Acceptance without liability to Buyer.

 

 

Date:                                                                      Date:

 

Buyer                                                                                 Buyer

 

Date:                                                                      Date:

                                                                      

Seller                                                                                  Seller

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