Document:

Exhibit 10.1

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN
EXCLUDED FROM THE EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE REGISTRANT IF
PUBLICLY DISCLOSED. [***] INDICATES THAT INFORMATION HAS BEEN REDACTED.

 

WIRELESS NETWORK PATENT LICENSE AGREEMENT

 

THIS WIRELESS NETWORK PATENT LICENSE AGREEMENT
is made by and between SIPCO, LLC (“SIPCO”), a limited liability company organized and existing under the laws of the
State of Georgia, and IPCO, LLC dba IntusIQ (“IPCO”), a limited liability company organized and existing
under the laws of the State of Georgia, (SIPCO and IPCO hereinafter collectively “Licensors” or individually “Licensor”),
and Telkonet, Inc. (“Licensee”), a Utah Corporation organized and existing under the laws of Utah.

 

WHEREAS, SIPCO has filed a lawsuit
against Licensee captioned SIPCO, LLC v. Telkonet, Inc., No. 2:20-CV-981-LA in the Eastern District of Wisconsin.

 

WHEREAS, Licensors each assert to
own and have the right to license, or have the right to license, one or more patents, utility models and/or allowed patent or utility
model applications, including those listed in the Complaint filed in the above-captioned litigation;

 

WHEREAS, Licensee desires to resolve
the disputed claims of the above-captioned litigation without the expense of costly litigation and for its own and its Affiliates
convenience to obtain the right under the Licensed Patents to manufacture, have manufactured, sell, offer to sell, import, export,
and use Licensed Products as authorized herein, without admission as to infringement, validity, or enforceability of the Licensed
Patents, or liability with respect to any claims of the Complaint filed in the above-captioned litigation; and

 

WHEREAS, Licensors desire to grant
certain rights solely with respect to Licensed Patents as more fully set forth below.

 

NOW, THEREFORE, Licensors and Licensee
hereby agree as follows:

 

1.       DEFINITIONS

 

The definitions set forth in this Article
shall apply to the following terms when used with initial capital letters in this Agreement, its attachments and amendments hereto.

 

	 	1.1	Affiliate – shall mean a legal entity which as of the Effective Date or thereafter during the term of this Agreement,
directly or indirectly, controls, is controlled by or is under common control with a party or another entity. The term “control”
as used in this Section shall mean ownership of more than 50% of the outstanding shares representing the right to vote for directors
or other managing officers of the party or entity; or for a party or entity that does not have outstanding shares, of more than
50% of the ownership interest representing the right to make decisions for such party or entity. An entity shall be deemed an
Affiliate only for the period during which such “control” exists.
	 	 	 
	 	1.2	Agreement – shall mean this Wireless Network Patent License Agreement between Licensors and Licensee, including all
exhibits, attachments, amendments and modifications hereto.
	 	 	 
	 	1.3	Arm’s-Length Sale – shall mean a Sale between or among entities that are not Affiliates and at competitive
conditions which prevail in the market, or the equivalent of such a Sale as determined by mutual agreement of the parties.
	 	 	 
	 	1.4	Intentionally Left Blank
	 	 	 
	 	1.5	Confidential Information – shall mean any information shared between the parties
according to this Agreement, which information is marked or identified by the disclosing party as confidential or with words of
similar import, or is of such a nature that the receiving party should reasonably expect the disclosing party would want it treated
as confidential, including without limitation information shared pursuant to Sections 2.9, 3.7 or 3.9, Article 5 or Exhibit
D. For avoidance of doubt, the terms of this Agreement shall be treated as Confidential Information of both parties.

 

 

 

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	 	1.6	Customer – shall mean any person or entity that is the ultimate end user of
a Licensed Product obtained from Licensee or its Affiliate, either directly or indirectly.
	 	 	 
	 	1.7	Devices – shall mean Nodes and/or Gateways; provided, however, that Devices
shall not include components or subcomponents of Nodes or Gateways (including, but not limited to, chipsets, motherboards, semiconductors,
antennae and/or modules designed for incorporation into another article), but instead shall only include substantially completed
items designed for use by a Customer in the form in which such items are Sold by Licensee or its Affiliates.
	 	 	 
	 	1.8	Distributor – shall mean any third-party distributor, reseller, sales agent,
or channel partners of Licensed Products obtained from Licensee or its Affiliate, either directly or indirectly. For avoidance
of doubt, channel partners shall include but not be limited to downstream: systems integrators; technology deployment consultancies;
value-added resellers, distributors, vendors, retailers; consultants; ESCO (energy service companies); and sales agents.
	 	 	 
	 	1.9	Effective Date – shall mean the date on which this Agreement is signed by the
last of the parties to execute it.

 

	 	1.10	Field of Use – shall mean any field of use except Industrial Automation Products.
Industrial Automation Products means robotic devices, computers, and control systems used in managing, monitoring and controlling
equipment used in industrial processes.
	 	 	 
	 	1.11	Gateway – shall mean a device, whether alone or incorporated in or with one
or more other devices, that is capable of communicating and/or interfacing between or among networks, at least one of which is
a Network, including any integrated firmware or software.
	 	 	 
	 	1.12	Licensed Patents – shall mean the patents and patent applications listed on
Exhibit A attached hereto, as well as any other patents and patent applications that are or become owned, controlled or
licensable by Licensors at any time on or after the Effective Date, including, without limitation, continuations, continuations-in-part,
divisionals, reissues, and reexamined patents of the patents and patent applications listed on Exhibit A, and all patents
and patent applications (including foreign counterparts) claiming priority directly or indirectly therefrom, or from which any
such patent or patent application claims priority directly or indirectly.
	 	 	 
	 	1.13	Licensed Product – shall mean any Device, System Control Software and/or Remote
Access Service within the Field of Use (whether branded or not) that, but for the rights and licenses granted hereunder, would,
according to Licensors, infringe one or more Valid Claims of the Licensed Patents, either on its own or when used in a Network.
Licensed Products shall include, notwithstanding any other provisions of this agreement, and without limitation, the products
or services listed on Exhibit B and Exhibit C attached hereto and any other Devices Sold by Licensee or its Affiliates
as of or prior to the Effective Date. Subject to the foregoing and for the avoidance of doubt, Licensed Products shall not include
any product, system control software, or service that is not capable of Wireless Multi-Hop Network communication, and where because
such product, system control software, or service is not capable of infringing any Valid Claims of the Licensed Patents.
	 	 	 
	 	1.14	Enable, Enabled or Enablement – means hardware, software or any physical modification that, when added to/removed
from, incorporated into or acted upon a device allows or provides for the functionality that renders the device capable of communicating
and/or interfacing between or among networks, at least one of which is a Wireless Multi-Hop Network, whether or not such functionality
is provided by or would require the addition, removal or activation of any hardware, or any firmware or software.
	 	 	 
	 	1.15	Disable or Disabled – means hardware, software or any physical modification that, when added to/removed from, incorporated
into or acted upon a device prevents or removes the functionality that renders the device capable of communicating and/or interfacing
between or among networks, at least one of which is a Wireless Multi-Hop Network, whether or not such functionality is provided
by or would require the addition, removal or activation of any hardware, or any firmware or software.
	 	 	 
	 	1.16	Disabled Products – means any product that is Disabled at the time of Sale by the Licensee.

 

 

 

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	 	1.17	Future Enabled Products – means any Disabled Product that is Enabled at the time of Sale or thereafter by or with
the direct support (direct support understood to include authorization) of Licensee or its Affiliates.
	 	 	 
	 	1.18	Network – shall mean a wireless network capable of using one or more of the following protocols: (i) ZigBee; (ii)
Z-Wave; (iii) RF4CE; (iv) 6LoWPAN; (v) WirelessHART; (vi) EnOcean; (vii) ISA100.11a; (viii) IEEE 802.15.4; (ix) Thread; or (x)
any other Wireless Multi-Hop Network. For the avoidance of doubt, the term “Wireless Multi-Hop Network” shall mean
a wireless network of devices that includes a device capable of relaying data on behalf of other devices in the network.
	 	 	 
	 	1.19	Node – shall mean a device, whether alone or incorporated in or with one or more other devices, that is capable of
functioning as a radio transmitter and/or receiver in one or more Networks by wirelessly transmitting a signal to and/or wirelessly
receiving a signal from one or more other similar devices and/or Gateways, including any integrated firmware or software.
	 	 	 
	 	1.20	Patent – shall mean any issued patent (including reexaminations, reissues, continuations, divisions and continuations-in-part),
enforceable invention certificate, or issued utility model of any country, or any enforceable allowed patent application or enforceable
allowed utility model application, published for opposition in any country.
	 	 	 
	 	1.21	Release Date – shall mean July 1, 2020.
	 	 	 
	 	1.22	Remote Access Service – shall mean any service offered by Licensee or its Affiliates
that involves the use of Devices in a Remote Access Configuration, which service is offered by Licensee or its Affiliates (i)
directly to Customers; or (ii) to one or more third parties that themselves contract to provide such service to Customers.
	 	 	 
	 	1.23	Remote Access Configuration – shall mean a system or network that includes at
least one Gateway in communication with a remote computing device (such as a cell phone, tablet, laptop, desktop computer, server
computer or other similar device) via the Internet or another wide area network (WAN) using System Control Software.
	 	 	 
	 	1.24	Sale (Sell) (Sold) – shall mean any sale, re-sale, rental, lease, license or
other form of distribution or provision of a Licensed Product to a person or entity. A Sale shall be deemed to have occurred when
the Licensed Product is paid for by or delivered to the person or entity, whichever occurs earlier; provided, however, that in
the case of Licensed Products Sold on a subscription or recurring revenue basis, a separate Sale shall be deemed to have occurred
for each period covered by a subscription or recurring revenue payment owing from the person or entity on the earlier of (i) the
date that the Licensed Product is paid for by person or entity, or (ii) the first day of the period covered by the subscription
or recurring revenue payment owing from the person or entity.
	 	 	 
	 	1.25	Sales Price – shall mean (i) in the case of an Arm’s-Length
Sale of Licensed Products for which no value other than money is received either directly or indirectly, the total amount invoiced
for the applicable Sale after deduction of any actual seller-to-buyer discounts granted; and excluding, or making proper deductions
for any costs of carriage and freight and value added tax or other sales tax and, in the case of export orders, any import duties
or similar applicable governmental levies, subject in all cases to the same being separately charged; or (ii) in the case of any
other Sale or usage of Licensed Products, the fair market value of such Licensed Products as determined
by reference to comparable Arm’s-Length Sales made during the same period, if any. Notwithstanding any actual seller-to-buyer
discounts as described in section (i) above, the Sales Price also shall include any money or other consideration received from
a third party in connection with the Sale of Licensed Products, such as, for example, advertising, sponsorship or other similar
revenue. Sales Price in currencies other than United States dollars (US$) shall be converted to United States dollars (US$) at
the foreign official conversion rate as reported by the Federal Reserve Bank of New York on the third business day prior to the
date that payment under this Agreement is due.
	 	 	 
	 	1.26	Supplier – shall mean a person or entity that (i) is a contract manufacturer
of Licensed Products for Licensee or its Affiliates, or (ii) supplies components or services to Licensee or its Affiliates for
their manufacture of Licensed Products.

 

 

 

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	 	1.27	System Control Software – shall mean software capable of accessing, monitoring
and/or controlling one or more Nodes and/or Gateways in a Network. However, System Control Software shall not include any firmware
or software that is integrated or intended for integration into Nodes and/or Gateways, or any components thereof.
	 	 	 
	 	1.28	Valid Claim – shall mean a claim of a Patent, which claim has neither expired nor been finally, following expiration
of all rights of appeal, held unpatentable, invalid or unenforceable by a court or other government agency of competent jurisdiction
at both the time of manufacture and the time of sale of the applicable product or service.

 

	2.	LICENSE, COVENANT AND RELEASE

 

		2.1	License Grant. Subject to the payment and other terms of this Agreement, Licensors hereby
grant to Licensee and its Affiliates a worldwide, nonexclusive, nontransferable and royalty-bearing license under the Essential
Claims of the Licensed Patents, to make, have made, Sell, offer for Sale, import, export and use Licensed Products within the Field
of Use on or after the Release Date. As used herein, “Essential Claims” means those patent claims that, but for this
Agreement and according to Licensors, would be directly infringed by Licensee or its Affiliates making, having made, Selling, offering
for Sale, importing, exporting or using the particular Licensed Product in question within the Field of Use.

 

		2.2	Firmware and Software Updates. For clarification, the license rights granted under Section
2.1 include rights to provide firmware and software updates to Devices constituting Licensed Products. However, no rights or licenses
to Sell or otherwise distribute firmware or software updates to any other Devices are granted under this Agreement.

 

		2.3	Covenant Not to Assert. Subject to the payment and other terms of this Agreement, Licensors
hereby covenant not to assert the Licensed Patents: (i) against Licensee or its Affiliates, or their Suppliers, based solely on
the re-Sale or use by Distributors or Customers of Licensed Products in the Field of Use on or after the Release Date, including
combining such Licensed Products with other products or services (“Other Products”) offered by such Distributors or
third parties (collectively “Combined Products”); and (ii) against Distributors and Customers based solely on their
Sale or use of such Licensed Products in the Field of Use after the Release Date, including combining such Licensed Products with
Other Products. The covenant not to assert in section (ii) shall not apply to said Other Products to the extent they independently
embody essential features of any claim of the Licensed Patents, are not standard off the shelf items, and are not otherwise licensed
by Licensor.

 

		2.4	Release. Subject to the payment and other terms of this Agreement, including payment
                                                                      of the Initial Payment, all Minimum Payment amounts, Closing Payment and all other payments required under Section 3.1,
                                                                      Licensors hereby irrevocably and forever discharge and release Licensee (and its existing Affiliates as of the Effective Date
                                                                      (“Current Affiliates”)), and their Suppliers, Distributors and Customers, from any and all past, present and
                                                                      future claims, demands or liability of every kind and nature, at law, in equity or otherwise, known and unknown, suspected
                                                                      and unsuspected, disclosed and undisclosed, threatened, not threatened or that could have been threatened, for infringement
                                                                      (directly, contributorily, by inducement or otherwise) of any of the Licensed Patents based on their making, having made,
                                                                      Selling, offering for Sale, importing, exporting or using any Licensed Products Sold by Licensee or its Current Affiliates
                                                                      within the Field of Use prior to the Release Date, to the extent such activities would have been authorized under this
                                                                      Agreement if the licenses and other rights granted hereunder had been in existence at such time. In the case of any Acquired
                                                                      Entity, the foregoing release shall not apply to any Licensed Products Sold by the Acquired
Entity within the Field of Use prior to its Affiliation Date, unless and until all royalties are paid on such Licensed Products
pursuant to Section 3.1 and as otherwise provided in this Agreement.

 

	 	2.5	No Implied Licenses or Rights. EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, NO LICENSE, COVENANT NOT TO ASSERT, RELEASE
OR OTHER IMMUNITY IS GRANTED TO LICENSEE, ITS AFFILIATES, OR ANY OTHER PERSON OR ENTITY, EITHER DIRECTLY OR BY IMPLICATION, ESTOPPEL
OR OTHERWISE. NO RIGHTS OR LICENSES ARE EXTENDED FOR PRODUCTS OR SERVICES NOT EXPRESSLY LICENSED HEREUNDER, OR FOR ANY COMBINATIONS
OF THE LICENSED PRODUCTS WITH OTHER PRODUCTS OR SERVICES EXCEPT AS EXPRESSLY SET FORTH HEREIN.

 

 

 

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	 	2.6	Notice Required for Sales. Licensee shall provide, and cause its Affiliates to provide, the following notice or a notice
with substantially the same effect of disclaiming any implied licenses) to each Distributor or Customer to which Licensee or its
Affiliate Sells or otherwise provides Licensed Products that are designed or intended for incorporation into or use with a wireless
mesh network: “NO RIGHTS OR LICENSES UNDER PATENTS OWNED OR CONTROLLED BY THIRD PARTIES, EXPRESS OR IMPLIED, ARE GRANTED
WITH RESPECT TO ANY OTHER PARTY’S DEVICES OR SERVICES WHETHER ALONE OR IN COMBINATION WITH THESE PRODUCTS AND/OR SERVICES.”
Such notice must be provided in the packaging, shipping documentation, manual for, or other similar items accompanying the Licensed
Products. Virtual marking where the phrase “license rights and limitations” (or a substantially similar phrase) is
used together with a publicly accessible address on the Internet that declares above-stated notice is also permissible.
	 	 	 
	 	2.7	Affiliates and Sublicenses. Licensee is responsible for ensuring compliance by its Affiliates with the obligations under
this Agreement applicable to them, and for any breach of such obligations by its Affiliates, except as to those of its Affiliates
that have separately agreed in writing to be bound by such obligations, and for which written notice has been provided to Licensors.
Licensee and its Affiliates shall have no right to grant any sublicenses under the Licensed Patents.
	 	 	 
	 	2.8	Patent Marking. Licensee and its Affiliates shall mark the Licensed Products constituting
    articles with the patent numbers for the Licensed Patents covering such Licensed Products. If marking of the Licensed Products
    themselves is not practical, their associated product packaging, labels, tags or products inserts shall be marked with such
    patent numbers instead. Virtual marking where the word “patent” or the abbreviation “pat.” is used
    together with a publicly accessible address on the Internet that associates the Licensed Product with the required patent
    numbers is permissible. The obligations required of Licensees and its Affiliates may be satisfied by including a notice of
    the form: “Covered by one or more claims of patents: http://sipcollc.com/patent-list/ and http://intusiq.com/patent-list/.”
    Licensors shall have the right to request in writing, no more than once per year, that Licensee provide reasonable
    evidence of the marking of the Licensed Products, and Licensee shall provide the same.

 

		2.9	Schedule of Products. Licensee represents and warrants that Exhibit B lists all Licensed
Products Licensee or its Affiliates expect to Sell or offer for Sale during the twelve (12) months following the Effective Date.
Upon written request by Licensors no more than once every twelve (12) months thereafter, Licensee shall provide Licensors with
a written list of all Licensed Products actually Sold or offered for Sale by Licensee or its Affiliates during the preceding three
(3) year period. All such lists shall include applicable product names, model numbers, service descriptions and any other identifying
designations. Exhibit B hereto may be supplemented from time to time by either party in order to add any additional Licensed
Products included on such lists or otherwise identified by a party or to add any additional or derivative products included on
such lists or otherwise identified by a party].

 

	 	2.10	Withdrawal of Lawsuit. Within ten (10) days of the Effective Date of this Agreement, SIPCO will withdraw the claims against
Licensee of 20-CV-981 with prejudice by signing and filing a copy of the Stipulated Dismissal substantially in the form as attached
hereto as Exhibit E.

 

3. ROYALTIES
AND PAYMENTS

 

		3.1	Running Royalties. Licensee shall pay to Licensors royalties on all Licensed Products Sold
by Licensee or its Affiliates on or after the Release Date, until December 31, 2024, as follows:

 

	 	3.1.1	Licensee shall pay to Licensors an Initial Payment in the amount of $40,000 in two installments: (a) $20,000 no later than 5 business
days after the Effective Date and (b) $20,000 no later than December 31, 2020.
	 	 	 
	 	3.1.2	In addition, Licensee shall pay to Licensors a running royalty for all Licensed Products of:

 

(a) three-and-one-half percent (3.50%) of the Sales Price for all such products Sold for the quarters ending September 30, 2020;
December 31, 2020; March 31, 2021; June 30, 2021; September 30, 2021; and December 31, 2021.

 

(b) the
greater of a $35,000 Minimum Payment per quarter or three-and-three-quarters percent (3.75%) of the Sales Price for all such
products Sold for each quarter ending March 31, 2022; June 30, 2022; September 30, 2022; and December 31, 2022; March 31,
2023; and June 30, 2023.

 

 

 

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(c) the
greater of a $40,000 Minimum Payment per quarter or four percent (4.0%) of the Sales Price for all such products Sold for
each quarter ending September 30, 2023; December 31, 2023; March 31, 2024; June 30, 2024; September 30, 2024; and December
31, 2024.

 

	 	3.1.3	Licensee shall pay to Licensors a Closing Payment of $50,000 no later than January 31, 2025.

 

In the event Licensee or its Affiliates
Enable or directly support any third party to Enable any Disabled Products to become Future Enabled Products at any point in time,
both parties agree a royalty amount under Section 3.1 shall be due at the time of such Enablement and payable to SIPCO/IPCO by
Licensee and its Affiliates as if such Disabled Product was originally Sold as a Licensed Product and royalties shall be calculated
at the original Sales Price of such Disabled Product plus any additional Sales Price associated with the Enablement. Licensee
and its Affiliates represent and warrant that they have not Enabled or directly supported any third party to Enable any Disabled
Products to become Future Enabled Products prior to the Effective Date and shall not Enable or directly support any third party
to Enable any Disabled Products to become Future Enabled Products after the Effective Date without the payment of royalties due
hereunder or in an attempt to circumvent the royalty obligations hereunder.

 

	 	3.1.4	Additive Royalties and Bundled Sales. For clarification, the royalties set forth in this Section 3.1 are additive to the
extent that Devices, System Control Software and/or Remote Access Services are Sold separately. In the case where such items are
Sold as a bundled offering with products that are not Licensed Products, the Sales Price shall be the average Sales Price for
each individual Licensed Product when Sold separately during the most recent calendar quarter.
	 	 	 
	 	3.1.5	Sales Between Affiliated Entities. With respect to each Licensed Product intended for ultimate Sale to a non-Affiliated
third party (whether or not as part of a bundled offering), the royalties set forth in this Section 3.1 shall be payable based
on the first Sale of such Licensed Product to the non-Affiliated third party, and not on Sales of the Licensed Product between
or among Licensee and its Affiliates in advance thereof.

 

	 	3.2	Payment Schedule.

 

	 	3.2.1	Payment of Royalties. Royalties payable pursuant to Article 3 based on Licensed Products Sold on or after the Release Date
shall be payable by Licensee to Licensors on a calendar quarterly basis, beginning with the period from the Release Date to the
end of the then-current calendar quarter and continuing for each three (3) month period thereafter, within thirty (30) days following
the end of the relevant three (3) month period. Such royalties shall be paid to Licensors and shall be accompanied by a statement
pursuant to Section 3.7.
	 	 	 
	 	3.2.2	Back Royalties. Based on Licensee’s representation and warranty to Licensors that Licensee and its Affiliates Sales
or other provision of Licensed Products prior to the Release Date was substantially as set forth on Exhibit C (excepting
refurbished products and certain end devices agreed upon by the parties) attached hereto (“Past Sales”), Licensee
has agreed to the royalty rate and the Initial Payment, Minimum Payments and Closing Payment set forth in Section 3.1 for Licensed
Products as compensation intended to also cover any Past Sales. This term does not extend beyond the term of every Licensed Patent
in Exhibit A. Licensee shall have no additional obligation to pay royalties for Past Sales other than by satisfaction of the payment
terms set forth in Section 3.1.

 

	 	3.3	Payments Upon Termination or Expiration. Within thirty (30) days after the effective date of termination or expiration
of this Agreement, Licensee shall pay Licensors any and all amounts that are due or will be due under this Agreement based on
Sales or usage of Licensed Products occurring prior to the effective date of such termination or expiration. To the extent Licensee
or its Affiliates are in possession of, but did not sell, any Licensed Products prior to the effective date of such termination
or expiration, and those Licensed Products are ultimately sold, Licensee shall pay to Licensors royalties for such Licensed Products
under the terms of this agreement as they are sold in the ordinary course on a quarterly basis for a period of time not to exceed
six (6) months following the termination or expiration of this Agreement. At which time, Licensee or its Affiliates shall make
a final payment for any remaining Licensed Product in their possession as of the effective date of termination or expiration of
this Agreement. Licensee or its Affiliates shall include with all such royalty payments a royalty statement for such payment in
accordance with Section 3.7 of this Agreement.

 

 

 

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	 	3.4	Form of Payment. Any payment made under the provisions of this Agreement shall be made in United States dollars and by
wire transfer to the account of Licensors to be provided by Licensor at the time of execution of this Agreement, without deduction
of any taxes, bank fees or other assessments of any kind, or by such other means as the parties shall mutually agree in writing.
	 	 	 
	 	3.5	Taxes. Each party shall be responsible for payment of all taxes imposed on it as a result of this Agreement or any of the
transactions contemplated hereunder.
	 	 	 
	 	3.6	Late Payments. Any payment required hereunder that is received by Licensors more than five (5) business days after the
date it is due pursuant to the terms of this Article 3 (including unpaid portions of amounts due) shall bear interest, compounded
monthly, at the lesser of one percent (1%) per month or the highest interest rate permitted to be charged by Licensors under applicable
law. No payment shall be deemed made under this Agreement until the funds in the appropriate amount and as specified in this Agreement
are actually received by and credited to Licensors’ bank account.
	 	 	 
	 	3.7	Royalty Statements. On or prior to the date on which royalties are due for any reporting period, Licensee shall provide
a royalty statement to Licensors in electronic form, which statement shall include the quantity of any and all Licensed Products
Sold or used by Licensee or its Affiliates during the relevant reporting period and a calculation of the royalties, if any, which
are payable. The statement also shall show in reasonable detail and separately identify each Licensed Product, its name, model
number or SKU, and any other identifying designations or descriptions, as well as its Sales Price, and shall be substantially
in the form of Exhibit D attached hereto or such other form as may be mutually agreed on by the parties in writing. If
no Sales of Licensed Products occurred during the relevant reporting period, Licensee shall submit a statement indicating as such.
All such statements shall be certified as correct by an authorized representative of Licensee.
	 	 	 
	 	3.8	Books and Records. Licensee and its Affiliates shall keep and maintain accurate and detailed books and records for Licensors
to ascertain all royalties payable hereunder. Books and records pertaining to a particular royalty reporting period shall be maintained
for three (3) years from the date on which a royalty statement is submitted and royalty paid in respect of such period.
	 	 	 
	 	3.9	Audit Rights. Licensors shall have the right to audit the books and records of Licensee and its Affiliates relating to
payments made or due hereunder not more than once per calendar year upon reasonable notice to Licensee. Such audits shall be conducted
during reasonable business hours and shall be performed by an independent certified public accountant selected by Licensors (the
“Auditor”) in accordance with generally applicable accounting standards and practices for the conduct of financial
audits. Licensee and its Affiliates shall fully cooperate with the Auditor and permit the Auditor to inspect and copy such portions
of their books and records as the Auditor deems appropriate. Licensors shall bear the cost of the audit unless it reveals an underpayment
in the aggregate that is greater than ten percent (10%) of the amount actually due for the period being audited. Within thirty
(30) days after receiving notice from Licensors of any shortfalls uncovered, Licensee shall pay (i) such shortfalls plus interest
as set forth in Section 3.6, as measured from the date when the shortfall should have been paid, and (ii) the cost of the audit
if required under this paragraph.
	 	 	 
	 	3.10	Third-Party Claims Regarding Certain Products. If a third party claims that any products or services it obtains from Licensee
or its Affiliates, directly or indirectly, are covered as Licensed Products under this Agreement (“Claimed Products”),
Licensors may request, and Licensee shall promptly provide to Licensors in writing, such information as is reasonably requested
by Licensors to confirm or dispute the claim, including, without limitation, (i) whether each of the Claimed Products was, in
fact, Sold by Licensee or its Affiliates, (ii) the quantities of each Claimed Product Sold by Licensee or its Affiliates to the
third-party claimant, and (iii) in case the Claimed Products were not Sold by Licensee or its Affiliates directly to the third-party
claimant, the name of each Distributor to which Licensee or its Affiliates Sold the Claimed Products and the quantities of each
Claimed Product Sold to such Distributor. Licensors shall treat such information as Confidential Information of Licensee; provided,
however, that notwithstanding Article 5, Licensors shall be entitled to disclose this information to the third-party claimant
and any distributor of the Claimed Products, and to use the information in connection with resolving any dispute with the third-party
claimant or the distributor regarding the Claimed Products, after the third party has executed a confidentiality agreement agreeing
to maintain the confidentiality of said information.

 

 

 

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	 	3.11	Unsuccessful Challenges. In the event that Licensee or its Affiliate initiates or prosecutes, or assists others in initiating
or prosecuting, any suit or action to challenge the validity or enforceability of any of the Licensed Patents, Licensors shall
have the option to terminate this Agreement on written notice to Licensee. In the event that Licensors do not exercise this option
to terminate the Agreement and, if at the conclusion of such action, any of the remaining claims of the challenged Licensed Patent(s)
still cover products or services offered by Licensee or its Affiliate in the Field of Use, Licensee shall reimburse Licensors,
on demand, for all reasonable costs and expenses that they incurred in defending the suit or action, including the fees of all
of Licensors’ attorneys and expert witnesses and any administrative fees or charges, not exceed $200,000.00 for each IPR
or other action filed. The foregoing shall survive any termination of this Agreement (other than by Licensors under this Section
3.11) as to any suit or action initiated prior to the effective date of such termination. Nothing herein shall limit or prevent
Licensee or its Affiliate from challenging the validity or enforceability of any of the Licensed Patents, or Licensors from defending
against any such challenge.

 

	4.	REPRESENTATIONS AND WARRANTIES

 

		4.1	Right to Grant Licenses. Licensors represent and warrant that they have the authority, power
and right to grant the licenses, covenant not to assert and release under this Agreement.

 

		4.2	No Warranty of Non-Infringement. Licensors makes no representation or warranty that the
making, using or selling of any Licensed Product will not infringe, directly, contributorily, by inducement or otherwise, any other
patents or intellectual property rights.

 

		4.3	No Obligation to Bring Actions. Nothing herein shall be construed as imposing on Licensors
the obligation, or as conferring upon Licensee or any other person or entity, the right, to bring or prosecute actions or suits
against third parties for infringement of the Licensed Patents, or upon any party to defend any suit or action brought by a third
party that challenges or concerns the validity or enforceability of the Licensed Patents.

 

		4.4	Determination of Payment Amounts. Each party acknowledges that the amounts payable hereunder
(i) have been determined as a matter of convenience to both parties and are not associated with the value of using any particular
Licensed Patent; and (ii) shall neither increase nor decrease because of an increase or decrease in the number of Licensed Patents
covering the Licensed Products.

 

		4.5	Use of the Licensed Patents. Each party acknowledges that: (i) Licensee and its Affiliates
are not required by this Agreement to use all of the Licensed Patents licensed herein; and (ii) nothing in this Agreement prevents
Licensors, Licensee or its Affiliates from using, licensing or in any other way dealing in or with any other technology, whether
or not such technology is deemed to be competitive with the technology embodied by the Licensed Patents.

 

		4.6	Compliance with Law. Each party represents and warrants that it will comply with all applicable
laws, regulations or ordinances pertaining to its performance hereunder.

 

		4.7	Approval and Conflicts. Each party represents and warrants that its entry into this Agreement
has been approved by all requisite corporate action, and that this Agreement and the transactions contemplated hereby do not violate
any other agreements to which it is subject as a party or otherwise bound.

 

		4.8	No Independent Promises. Each party represents and warrants that in executing this Agreement
it has not relied on any promises, inducements or representations made by the other or any third party that are not expressly set
forth in writing herein, or in another document specifically referencing this Agreement and executed by both parties.

 

 

 

    	 	8	 

     

    

 

		4.9	No Bankruptcy Filings. Each party represents and warrants that it is not presently the subject
of a voluntary or involuntary petition in bankruptcy or the equivalent thereof, and does not presently have reason to believe
that such an involuntary petition will be filed against it.

  

	 	4.10	No Other Warranties. OTHER THAN THE EXPRESS WARRANTIES SET FORTH IN THIS AGREEMENT, THERE ARE NO OTHER WARRANTIES, EXPRESS
OR IMPLIED.

 

	5.	CONFIDENTIAL INFORMATION

 

		5.1	Obligation of Confidentiality. Each party (the “receiving party”) shall use
reasonable care and discretion, commensurate with that degree of care they use to protect similar information of their own, to
avoid disclosure, publication or dissemination of Confidential Information of the other party (the “disclosing party”)
outside of the employees, officers and consultants of the receiving party and its Affiliates. In addition, each party shall treat,
and cause its Affiliates to treat, this Agreement and its terms as Confidential Information of both parties, and neither party
shall disclose this Agreement or any of its terms to any third party without prior written consent of the other party; provided,
however, that (i) each party may disclose the existence of this Agreement and, under obligations of confidentiality at least as
stringent as those contained herein, the Licensed Patents, Field of Use, Licensed or Licensed Products and license rights granted
under this Agreement, to third parties claiming rights under the Licensed Patents through this Agreement, or by reason of their
obtaining Licensed or Licensed Products through Licensee or its Affiliates under this Agreement; and (ii) Licensors may announce
this Agreement on their website and add Licensee to the list of current patent licensees at http://sipcollc.com. Subject
to the foregoing sentence, to the extent any information was shared prior to the execution of this Agreement pursuant to the separately
executed non-disclosure agreement between the parties dated effective July 20, 2020 (the “Prior NDA”), the restrictions
of said Prior NDA shall apply in addition to, or in lieu of, the requirements of this Article 5. Any prior nondisclosure or confidentiality
agreements between the parties hereto, including the Prior NDA, are superseded by Section 5 of this Agreement with respect to any
information shared on or after the Effective Date of this Agreement.

 

		5.2	Authorized Disclosure. Notwithstanding Section 5.1, Disclosure of Confidential Information
also shall be permitted if the receiving party shall have first given reasonable notice as practicable to the disclosing party
that such disclosure is to be made, and the receiving party shall have made reasonable efforts to minimize the nature and extent
of such disclosure: (i) to any governmental body having jurisdiction and specifically requiring such disclosure, subject to seeking
confidential treatment for the material disclosed; or (ii) as required in response to a valid subpoena or otherwise during the
course of litigation, subject to a protective order where production under the protective order would be on the basis of an “Attorneys
Eyes Only” or higher confidentiality designation. Notwithstanding Section 5.1, Disclosure of Confidential Information also
shall be permitted (i) to a party’s accountants, legal counsel, tax advisors and other financial and legal advisors, or to
a counterparty in connection with a proposed merger, acquisition, financing or similar transaction, in either case subject to obligations
of confidentiality at least as stringent as those contained in Section 5.1, and (ii) as required in connection with any filings,
reports or other disclosures under applicable securities or other laws or regulations.

 

		5.3	Exceptions. Notwithstanding any other provisions of this Agreement, the obligations specified
in Section 5.1 will not apply to any information that: (i) is or becomes publicly available without breach of this Agreement; (ii)
is released for disclosure by written consent of the disclosing party; or (iii) is independently developed by the receiving party
as evidenced by contemporaneously written records; or (iv) is subsequently disclosed to the receiving party or any of its Affiliates
on a non-confidential basis by a third party that is not bound by a duty of confidentiality or restriction on its use.

 

		5.4	Survival. The obligations with respect to Confidential Information under this Article 5
shall survive expiration or termination of this Agreement for a period of two (2) years or December 31, 2026, whichever occurs
later.

 

	6.	TERM AND TERMINATION

 

		6.1	Term. This Agreement shall expire on the sooner of December 31, 2024 or the date that the
last of the Licensed Patents expires or is invalidated.

 

 

 

    	 	9	 

     

    

 

	 	6.1.1	Licensee and its Affiliates shall have the option to extend the license beyond the date contained in Section 6.1 or to take a
new license by giving notice to Licensors within no more than 60 days thereafter under the same terms as contained herein. Should
Licensee or its Affiliates opt to extend this license or take a new license at any point in the future, neither Licensee or its
Affiliates shall owe additional past royalties for any period of time covered by the current license, unless such past royalties
are otherwise owed pursuant to this Agreement, for example and without limitation, if sales were underreported.

 

		6.2	Termination by Licensors for Material Breach. Licensors shall have the right to terminate
this Agreement upon breach of a material provision thereof by Licensee or its Affiliates. Subject to Section 6.3, Licensors shall
acquire the right, at its election, to immediately terminate for material breach upon Licensors sending written notice to Licensee
specifying the breach, and the failure of Licensee to demonstrate, to the reasonable satisfaction of Licensors, that Licensee has
cured such breach within thirty (30) days of the sending of such notice. A material breach as that term is used herein shall include,
but is not limited to:

 

	 	6.2.1	Failure of Licensee to make payments and provide statements in accordance with this Agreement;
	 	 	 
	 	6.2.2	Failure of Licensee or its Affiliates to maintain adequate books and records or to permit an audit in accordance with Article
3;
	 	 	 
	 	6.2.3	Failure of Licensee or its Affiliates to provide notices in accordance with Section 2.6, or to mark Licensed Products as required
by Section 2.8; or
	 	 	 
	 	6.2.4	Failure of Licensee to provide accurate and complete lists of Licensed Products as required by Section 2.9.

 

	 	6.3	Other Termination by Licensors. In addition to other provisions set forth in this Agreement, this Agreement may be terminated
by Licensors immediately upon written notice to Licensee, without any right of Licensee to cure:

 

	 	6.3.1	If Licensee files a petition in bankruptcy or the equivalent thereof, or is the subject of an involuntary petition in bankruptcy
that is not dismissed within sixty (60) days after the filing date thereof, or is or becomes insolvent, or admits of a general
inability to pay its debts as they become due;
	 	 	 
	 	6.3.2	Upon the de facto or de jure nationalization or expropriation of Licensee by governmental or military action, whether
or not with valid authority;
	 	 	 
	 	6.3.3	Upon any failure by Licensee to provide, within thirty (30) days after written request by Licensors, reasonably satisfactory and
adequate assurances that Licensee remains able and willing to fully and effectively perform its obligations under this Agreement;
	 	 	 
	 	6.3.4	Upon Licensee’s failure on two (2) or more occasions within any twenty-four (24) month period during the term of this Agreement
to pay royalties and/or provide statements as required by this Agreement; or
	 	 	 
	 	6.3.5	Upon the determination of a court of competent jurisdiction that an Affiliate of Licensee (as of the date of the determination)
has infringed one or more of the Licensed Patents.

 

	 	6.4	Survival. The following provisions shall survive expiration or termination of this Agreement:

 

	 	6.4.1	The obligation of Licensee to make all payments due under this Agreement as of the effective date of expiration or termination,
or thereafter in accordance with Section 3.3;
	 	 	 
	 	6.4.2	The obligation of Licensee to provide statements pursuant to Section 3.7, and to allow for an audit pursuant to Section 3.9; and
	 	 	 
	 	6.4.3	The obligation of each party to maintain confidentiality under Article 5.

 

	 	6.5	Remedies. Nothing herein shall limit any rights or remedies that may be available to either party, at law or in equity,
on account of any breach or threatened breach of this Agreement by the other party. In the event of any breach or threatened breach
of this Agreement, the aggrieved party shall be entitled to seek specific performance and/or injunctive relief as a remedy, without
posting any bond or other security, which remedy shall be in addition to, and not in lieu of, any appropriate relief in the way
of monetary damages.

 

 

 

    	 	10	 

     

    

 

In the event of Licensee’s material
breach as defined in Section 6.2.1 and Licensee’s failure to cure as provided in Section 6.2, if Licensors elect not to
terminate this Agreement, Licensors shall be entitled to immediate and accelerated payment of any and all remaining Initial Payment
amount, quarterly Minimum Payment amounts and Closing Payment, without discount on account of present value or any other grounds,
and Licensors may immediately seek such remedy in the appropriate court. In such event, Licensors shall be entitled to recover
all costs and attorney’s fees associated with bringing and maintaining such an action. In such event, Licensee shall continue
to perform all other obligations of this agreement, including but not limited to payment of any and all royalty amounts that exceed
the relevant quarterly Minimum Payment amount.

 

	7.	ASSIGNMENT AND RELATED MATTERS

 

		7.1	Assignment by Licensors. This Agreement or Licensors’ right to enforce or receive
any payments under this Agreement may be assigned or transferred by Licensors to one or more third parties. Any assignee or transferee
of the Licensed Patents must agree in writing to be bound by the licenses, covenant not to assert and release granted hereunder
to the same extent as Licensors; provided, however, that this shall apply only to those Licensed Patents that were assigned or
transferred and not to any other patents or patent applications of the assignee or transferee.

 

		7.2	Assignment by Licensee. This Agreement may not be assigned or transferred by Licensee to
any other person or entity without the prior written consent of Licensors; provided, however, that this Agreement may be assigned
or transferred by Licensee, without consent of Licensors, to a transferee that is either (i) the purchaser of all or substantially
all of the assets of Licensee to which this Agreement relates; or (ii) the successor of Licensee in connection with a merger involving
the sale of all or substantially all of the outstanding capital stock of Licensee (a “Permitted Transferee”), but in
either case only if the Permitted Transferee is not then engaged in litigation or other adversarial proceedings with any of Licensors.
Within ten (10) business days following the date of the transfer, Licensee shall provide Licensors with written notice of the transfer
and a written commitment of the Permitted Transferee to comply with the terms and provisions of this Agreement. As to any Affiliate
of Licensee, this Agreement shall immediately terminate on the date of transfer unless such Affiliate remains an Affiliate of the
Permitted Transferee.

 

		7.3	Acquired Entities. Notwithstanding anything to the contrary herein, if a legal entity or
business unit becomes an Affiliate of Licensee, or a business unit of Licensee or its Affiliate, after the Effective Date (an “Acquired
Entity”), the licenses, covenant not to assert and release under this Agreement shall not extend to any products or services
of that Acquired Entity, or to any new or modified products or services based thereon, if the Acquired Entity or any of its pre-acquisition
Affiliates is then engaged in litigation or other adversarial proceedings with any of Licensors.

 

		7.4	Divested Entities. Notwithstanding anything to the contrary herein, if an Affiliate of Licensee;
or a business unit of Licensee or its Affiliate, is sold or otherwise divested after the Effective Date (a “Divested Entity”),
the Divested Entity shall cease to enjoy the benefit of the licenses and covenant not to assert under this Agreement. Licensee
shall provide Licensors with written notice within sixty (60) days following the date of divestiture of any Affiliate or business
unit that manufactured or Sold Licensed and Licensed Products at the time of divestiture. Upon Licensee’s written request,
Licensors agree to grant a separate license to the Divested Entity under terms and conditions to be negotiated, but such agreement
shall not extend to any Affiliates of the Divested Entity that are then engaged in litigation or other adversarial proceedings
with any of Licensors.

 

	8.	MISCELLANEOUS

 

		8.1	Notices. All notices required or permitted under this Agreement to Licensee or Licensors
shall be sent by one or more of: (i) Certified Mail with return receipt requested, (ii) overnight delivery by commercial or other
service which can verify delivery, or (iii) email to the addresses indicated herein; provided, however, that any notices involving
breach, termination or transfer of this Agreement must be sent or copied by (i) or (ii) above. Any such notice so sent shall be
effective as of the date it first arrives.

 

 

 

    	 	11	 

     

    

 

	 	8.1.1	All notices from Licensors to Licensee shall be sent to:

 

	 	Name:	Gene Mushrush
	 	Title:	CFO
	 	Company:	Telkonet, Inc.
	 	Address:	20800 Swenson Dr., Suite 175 
	 	 	Waukesha, WI 53186
	 	Tel:	414-302-2260
	 	E-mail:	gmushrush@telkonet.com

 

With a copy to:

 

	 	Name:	Jason Tienor
	 	Title:	CEO
	 	Company:	Telkonet, Inc.
	 	Address:	20900 Swenson Dr., Suite 175 
	 	 	Waukesha, WI 53186
	 	Tel:	414-302-2201
	 	E-mail:	jtienor@telknonet.com

 

	 	8.1.2	All notices from Licensee to Licensors shall be sent to SIPCO:

 

	 	Name:	Kenneth Lee
	 	Title:	Chief Finance Officer
	 	Company:	SIPCO, LLC
	 	Address:	13921 Park Center Road, Suite 380 
	 	 	Herndon, VA 20171
	 	Tel:	+1-571-206-1799
	 	E-mail:	klee@ewmesh.com

 

And to IPCO:

 

	 	Name:	Kenneth Lee
	 	Title:	Chief Finance Officer
	 	Company:	IPCO, LLC
	 	Address:	13921 Park Center Road, Suite 380 
	 	 	Herndon, VA 20171
	 	Tel:	+1-571-206-1799
	 	E-mail:	klee@ewmesh.com

 

	8.2	Relationship of the Parties. Nothing in this Agreement shall be construed to create a principal-agent relationship, partnership
or joint venture between the parties, or give rise to any fiduciary duty from one party to the other party. Nothing in this Agreement
shall be construed as prohibiting or restricting Licensors or Licensee from independently developing any product or service, regardless
of whether such product or service is competitive with the products or services licensed hereunder.
	 	 
	8.3	Severability. If any provision of this Agreement is held by a court or tribunal of competent jurisdiction to be unenforceable
or contrary to law, the remaining provisions of the Agreement will remain in full force and effect to the extent that the interests
of the parties in entering into this Agreement can be realized.

 

 

 

    	 	12	 

     

    

 

	 	 
	8.4	No Waiver. The failure of either party at any time to require performance by the other party of any provision of this Agreement
shall not be construed as acquiescence or waiver of such failure to perform such provision. The failure of either party to take
action upon the breach of any provision of this Agreement shall not be construed as acquiescence or waiver of any such breach.
	 	 
	8.5	Headings. The Article and Section headings contained in this Agreement are for reference purposes only and shall not in
any way control the meaning or interpretation of this Agreement.
	 	 
	8.6	Representation of Counsel; Mutual Negotiation. Each party has had the opportunity to be represented by counsel of its choice
in negotiating this Agreement. This Agreement shall therefore be deemed to have been negotiated at arm’s-length, with the
advice and participation of counsel, and prepared at the joint request, direction, and instruction of the parties, and shall be
interpreted in accordance with its terms without favor to any party.
	 	 
	8.7	English Language. This Agreement and all documents relating thereto shall be written in English.
	 	 
	8.8	Bankruptcy. The Licensed Patents licensed hereunder shall be deemed to be “intellectual property” as the term
is defined in 11 U.S.C. Section 101(35A). All written agreements entered into in connection with the parties’ performances
hereunder from time to time shall be considered agreements “supplementary” to this Agreement for purposes of 11 U.S.C.
Section 365(n). In the event that Licensors should file a petition under the United States federal bankruptcy laws, or that an
involuntary petition shall be filed against Licensors, the parties intend that Licensee shall be protected in the continued enjoyment
of its rights as Licensee under the Licensed Patents licensed hereunder to the maximum feasible extent including, without limitation,
if it so elects, the protection conferred upon licensees under 11 U.S.C. Section 365(n). Licensors shall give Licensee notice
of the filing of any voluntary or involuntary petition under the United States federal bankruptcy laws.
	 	 
	8.9	Choice of Law and Consent to Jurisdiction. The validity, construction and performance of this Agreement shall be governed
by the substantive law of the State of Delaware, United States of America, without regard to the conflict of law rules. The parties
to this Agreement hereby consent to the exclusive jurisdiction of the federal and state courts of the State of Delaware in the
event of any legal action filed under or in connection with this Agreement.

 

In the event either party files an action against the other in such courts, the other party hereby waives any right to assert lack of personal jurisdiction, or that venue in such courts is inappropriate or inconvenient.

 

	8.10	Arbitration of Commercial Claims. Upon the written request of either party, any Commercial Claim that the parties cannot
resolve within thirty (30) days after the claim is first asserted shall be referred to and finally resolved by arbitration administered
by the American Arbitration Association (“AAA”) under its Commercial Arbitration Rules and Mediation Procedures then
in effect. The arbitrator shall apply the substantive law specified in this Agreement and any arbitration hearings, if necessary,
shall be held at a location mutually agreeable to the parties within the jurisdiction of the governmental body issuing such law.
If the parties cannot agree upon an arbitrator within ten (10) days after demand by either of them, a single, impartial arbitrator
will be selected in accordance with the rules of the AAA. The arbitration proceedings shall be conducted in English and discovery
shall be in accordance with the Federal Rules of Evidence unless otherwise agreed by the parties. The award of the arbitrator
shall be enforceable by any court or tribunal having jurisdiction over the party against which the award has been rendered, or
wherever assets of the party against which the award has been rendered can be located. The arbitrator shall be instructed to award
the prevailing party its reasonable costs and expenses incurred in the arbitration, as well as any subsequent costs associated
with enforcement of the award, including reasonable attorneys’ fees and costs. With respect to Commercial Claims, the arbitration
award shall be final and binding on the parties, and the parties agree to be bound thereby and to act accordingly. As used herein,
“Commercial Claims” means claims or disputes relating to financial or reporting matters under Article 3 of the Agreement,
but shall not include matters relating to patent validity or infringement, or matters concerning the scope of license or other
rights or releases granted under this Agreement (collectively, “Excluded Matters”). If a dispute involves both Commercial
Claims and Excluded Matters, the arbitrator will have the right to stay the arbitration until all Excluded Matters material to
resolution of the Commercial Claims have been resolved. Notwithstanding the foregoing, either party may request any competent
judicial or other authority to order any provisional or conservatory measure (including any injunction), either prior to the institution
of an arbitration proceeding or during such proceeding, for the preservation of its rights and interests, without the need to
post any bond or other security. Each party shall cooperate with the other party in disclosing and providing access to all information
and documents reasonably requested by the other party in connection with such a request, subject only to any preexisting confidentiality
obligations imposed on such party.

 

 

 

    	 	13	 

     

    

 

	 	 
	8.11	No Third-Party Beneficiaries. Nothing in this Agreement shall be construed to give rise to any obligation on any party
hereto for the benefit of any third party, or to confer any rights on any third party, except for Affiliates of Licensee licensed
under this Agreement.
	 	 
	8.12	Entire Agreement; Amendments. Except for any separate non-disclosure agreement between the parties which shall remain in
effect, the provisions of this Agreement, including its attachments and any amendments, constitute the entire Agreement between
the parties, and supersede any and all prior communications and understandings, oral or written, between the parties relating
to the subject matter hereof. Except for supplementation of the Exhibit A by Licensors, no amendment of this Agreement
shall be effective unless such amendment is in writing and specifically references this Agreement, and is signed by all parties
hereto. Licensors shall notify Licensee of any supplementation of Exhibit A from time to time during the term of this Agreement.
	 	 
	8.13	Execution in Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument.

 

[Remainder of page intentionally left
blank; signature page to follow.]

 

 

 

 

 

 

 

 

 

 

 

 

    	 	14	 

     

    

 

IN WITNESS WHEREOF, each of Licensee
and Licensors have entered into this Agreement by their duly authorized representatives as of the Effective Date.

 

 

	 	(Licensee)
	 	 
	Date: 11/30/20	By: /s/ Jason L. Tienor
	 	Name: Jason L. Tienor
	 	Title CEO
	 	 

 

	 	SIPCO, LLC
	 	 
	Date: 11/30/20	By: /s/ Kenneth Lee
	 	Name: Kenneth Lee
	 	Title: CFO
	 	 

 

 

	 	IPCO, LLC dba Intus IQ
	 	 
	Date: 11/24/20	By: /s/ Kenneth Lee
	 	Name: Kenneth Lee
	 	Title: CFO
	 	 

 

 

 

 

 

 

    	 	15	 

     

    

 

Exhibit A

 

LICENSED PATENTS (as of June 6, 2019)

 

SIPCO, LLC

 

U.S. Patents

 

	 	Patent No.	Appl. No.	Filing Date	Title
	1.	5,714,931	08/605,649	22-Feb-96	Personalized security system
	2.	5,926,531	08/895,720	17-Jul-97	Transmitter for accessing pay-type telephones
	3.	6,028,522	09/172,554	14-Oct-98	System for monitoring the light level around an ATM
	4.	6,218,953	09/412,895	5-Oct-99	System and method for monitoring the light level around an ATM
	5. 	6,233,327	09/102,399	22-Jun-98	Multi-function general purpose transceiver
	6.	6,430,268	09/102,178	22-Jun-98	Systems for requesting service of a vending machine
	7.	6,437,692	09/439,059	12-Nov-99	System and method for monitoring and controlling remote devices
	8.	6,618,578	09/301,671	28-Apr-99	System and method for communicating with a remote communication unit via the public switched telephone network (PSTN)
	9.	6,628,764	09/558,030	25-Apr-00	System for requesting service of a vending machine
	10. 	6,747,557	09/702,450	31-Oct-00	System and method for signaling a weather alert condition to a residential environment
	11. 	6,836,737	09/925,393	9-Aug-01	Systems and methods for providing remote monitoring of consumption for a utility meter
	12.	6,891,838	09/704,150	1-Nov-00	System and method for monitoring and controlling residential devices
	13.	6,914,533	09/811,076	16-Mar-01	System and method for accessing residential monitoring devices
	14.	6,914,893	09/812,044	19-Mar-01	System and method for monitoring and controlling remote devices
	15.	7,053,767	10/139,492	6-May-02	System and method for monitoring and controlling remote devices

 

 

 

    	 	16	 

     

    

 

	16.  	7,079,810	10/657,398	8-Sep-03	System and method for communicating with a remote communication unit via the public switched telephone network (PSTN)
	17.  	7,103,511	09/925,269	9-Aug-01	Wireless communication networks for providing remote monitoring of devices
	18.  	7,137,550	08/825,576	31-Mar-97	Transmitter for accessing automated financial transaction machines
	19.  	7,263,073	09/925,270	9-Aug-01	Systems and methods for enabling a mobile user to notify an automated monitoring system of an emergency situation
	20.  	7,295,128	11/119,054	29-Apr-05	Smoke detection methods, devices, and systems
	21.  	7,397,907	09/756,386	8-Jan-01	Multi-function general purpose transceiver
	22.  	7,424,527	10/021,100	30-Oct-01	System and method for transmitting pollution information over an integrated wireless Network
	23.  	7,468,661	11/395,685	31-Mar-06	System and method for monitoring and controlling remote devices
	24.  	7,480,501	10/000,477	24-Oct-01	System and method for transmitting an emergency message over an integrated wireless network
	25.  	7,650,425	09/925,786	9-Aug-01	System and method for controlling communication between a host computer and communication devices associated with remote devices in an automated monitoring system
	26.  	7,697,492	11/159,768	23-Jun-05	Systems and methods for monitoring and controlling remote devices
	27.  	7,739,378	12/206,106	8-Sep-08	System and method for transmitting pollution information over an integrated wireless network
	28.  	7,756,086	10/792,464	3-Mar-04	Method for communicating in dual-modes
	29.  	7,978,059	12/337,739	18-Dec-08	System and method for monitoring and controlling remote devices
	30.  	8,013,732	12/477,329	6-Sep-11	Systems and Methods for Monitoring and Controlling Remote Devices
	31.  	8,031,650	10/792,608	3-Mar-04	System and Method for Monitoring Remote Devices with a Dual-Mode Wireless Communication Protocol
	32.  	8,064,412	11/125,009	22-Nov-11	Systems and Methods for Monitoring Conditions
	33.  	8,171,136	12/816,266	15-Jun-10	System and method for transmitting pollution information over an integrated wireless network
	34.  	8,193,930	13/225,110	2-Sep-11	Systems and methods for remote irrigation control

 

 

 

    	 	17	 

     

    

 

	35.  	8,212,667	13/173,499	30-Jun-11	Automotive diagnostic data monitoring systems and methods
	36.  	8,223,010	13/221,689	30-Aug-11	Systems and methods for monitoring vehicle parking
	37.  	8,335,304	12/169,536	8-Jul-08	Multi-function general purpose transceivers and devices
	38.  	8,379,564	13/220,355	29-Aug-11	
        System and method for monitoring remote
devices with a dual-mode wireless communication protocol

	39.  	8,410,931	13/222,216	31-Aug-11	Mobile inventory unit monitoring systems and methods
	40.  	8,446,884	12/829,504	2-Jul-10	Dual-mode communication devices, methods and systems
	41.  	8,489,063	13/102,849	6-May-11	Systems and methods for providing emergency messages to a mobile device
	42.  	8,666,357	12/356,358	20-Jan-09	System and method for transmitting an emergency message over an integrated wireless network
	43.  	8,754,780	13/855,452	2-Apr-13	Systems and methods for monitoring and controlling remote devices
	44.  	8,908,842	13/717,384	17-Dec-12	Multi-function general purpose transceivers and devices
	45.  	8,924,587	13/485,977	1-Jun-12	Systems and methods for controlling communication between a host computer and communication devices
	46.  	8,924,588	13/486,014	1-Jun-12	Systems and methods for controlling communication between a host computer and communication devices
	47.  	8,930,571	12/689,220	18-Jan-10	Systems and methods for controlling communication between a host computer and communication devices
	48.  	8,942,666	13/943,598	16-Jul-13	Systems and methods for providing emergency messages to a mobile device
	49.  	8,964,708	12/758,590	12-Apr-10	Systems and methods for monitoring and controlling remote devices
	50.  	9,111,240	13/461,194	1-May-12	System and method for transmitting pollution information over an integrated wireless network
	51.  	9,129,497	13/333,967	21-Dec-11	Systems and methods for monitoring conditions
	52.  	9,282,029	14/195,803	3-Mar-14	System and method for transmitting an emergency message over an integrated wireless network

 

 

 

    	 	18	 

     

    

 

	53.  	9,430,936	14/629,912	24-Feb-15	Systems and methods for monitoring and controlling remote devices
	54.  	9,439,126	11/814,632	24-Jul-07	Wireless network protocol system and methods
	55.  	9,521,533	14/606,403	27-Jan-15	System and method for transmitting an emergency message over an integrated wireless network
	56.  	9,571,582	14/306,412	17-Jun-14	Systems and methods for monitoring and controlling remote devices
	57.  	9,515,691	14/821,853	10-Aug-15	System and method for transmitting pollution information over an integrated wireless network
	58.  	9,691,263	14/836,226	26-Aug-15	System and method for monitoring and controlling residential devices
	59.  	9,615,226	15/063,970	8-Mar-16	System and method for transmitting an emergency message over an integrated wireless network
	60.  	9,860,820	15/257,641	6-Sep-16	Wireless network protocol systems and methods
	61.  	8,346,892	11/721,396	16-Dec-05	Communication network system of bus network structure and method using the communication network system
	62.  	10,149,129	15/377,383	13-Dec-16	System and method for transmitting an emergency message to a mobile device
	63.  	10,356,687	15/859,885	2-Jan-18	Wireless network protocol system and methods

 

 

Pending U.S. Patent Applications

 

	 	App. No.	Filing Date	Title
	1. 	16/205,375	30-Nov-18	System and method for transmitting an emergency message to a mobile device
	2. 	16/432,176	5-June-19	Wireless network protocol system and methods

 

 

    	 	19	 

     

    

 

 

International Patents

 

	 	Country	Patent No.	Filing Date	Title
	1.	Canada	2434642C	9-Aug-01	Wireless communication networks for providing remote monitoring of devices
	2. 	Europe	
        EP 2993591

         

        (IE, ES, FR, IT, CH, GB, DE, NL)

         
	9-Aug-01	Site Controller with Mapping Functionality
	3.  	Korea	10-0807815	17-Dec-04	Communication network system of bus network structure and method using the communication network system
	4.  	Japan	4555345	16-Dec-05	Communication network system of bus network structure and method using the communication network system
	5.    	HongKong (China)	HK121979(issued)	9-Aug-01	Site Controller with Mapping Functionality

 

 

    	 	20	 

     

    

 

IPCO, LLC dba IntusIQ

 

U.S. Patents

 

	 	Patent No.	Appl. No.	Filing Date	Title
	1.  	6,044,062	08/760,895	6-Dec-96	Wireless network system and method for providing same
	2.   	6,249,516	09/492,930	27-Jan-00	Wireless network gateway and method for providing same
	3.  	7,054,271	10/386,159	10-Mar-03	Wireless network system and method for providing same
	4.   	7,089,125	10/976,103	27-Oct-04	Distributed asset optimization (DAO) system and method
	5. 	8,000,314	11/300,902	15-Dec-05	Wireless network system and method for providing same
	6.	8,233,471	12/482,892	11-Jun-09	Wireless network system and method for providing same
	7.   	8,625,496	13/478,913	23-May-12	Wireless network system and method for providing same
	8.  	8,787,246	13/482,961	29-May-12	Systems and methods for facilitating wireless network communication, satellite-based wireless network systems, and aircraft-based wireless network systems, and related methods
	9.  	8,982,856	12/364,769	3-Feb-09	Systems and methods for facilitating wireless network communication, satellite-based wireless network systems, and aircraft-based wireless network systems, and related methods

 

 

 

 

 

    	 	21ewlu_ex101.htm

EXHIBIT 10.1
  
 DEBT SALE AGREEMENT
  
 This Debt Sale Agreement (this “Agreement”) is made and dated as of November __, 2020, (the “Effective Date”), by and among Merion, Inc., a Nevada corporation having its principal address at 100 N. Barranca St., #1000 West Covina CA 91791 (the “Company”), _____, whose principal address is ______ ( “Seller”), and DW California Food Distribution LLC, a California limited liability company, having its principal address at 100 N Barranca St, #1000 West Covina, CA 91791 (“Buyer” and, collectively with Seller and the Company, the “Parties”).
  
 RECITALS:
  
 A. The Company is indebted to Seller for the amount as set forth in the attached Exhibit A (the “Debt”), representing the principal amount of indebtedness owed by the Company to Seller. The Debt continues to accrue interest at the rate provided in such Debt.
  
 B. Seller wishes to transfer and assign to Buyer his right, title, and interest in and to the Debt.
  
 C. Buyer wishes to purchase and receive such right, title, and interest in and to the Debt on the terms and conditions set forth herein.
  
 C. Buyer has requested that Seller transfer and assign to Buyer all of his right, title, and interest in and to the Debt and Seller has agreed to transfer and assign to Buyer all of his right, title, and interest in and to the Debt, pursuant to the terms and conditions of this Agreement and without recourse, warranty, representation, or guaranty of any kind other than as specifically set forth below.
  
 NOW, THEREFORE, in consideration of these premises, and other good and valuable consideration, the receipt, sufficiency, and adequacy of which are hereby acknowledged, the Parties, and each of them, intending to be legally bound, hereby agree as follows:
  
 1. Acknowledgement of Debt. The Company hereby acknowledges and accepts the Debt as its legal obligation in the principal amounts set forth in Exhibit A, plus accrued interest.
  
 2. Company Warranty of Debt. The Company hereby represents and warrants to Buyer that the Debt represents a valid, legal, and binding obligations of the Company, fully enforceable in the amounts set forth in Exhibit A, plus accrued interest, and that, following transfer of right, title, and interest in the Debt from Seller to Buyer pursuant to the terms hereof, the Debt shall be a valid, legally binding, and enforceable obligation of the Company to Buyer.
  
 3. Purchase Price. The price to be paid by Buyer to Seller for the transfer of Debt is the amount set forth in Exhibit A hereto, and in accordance with the terms and conditions of this Agreement.
  
 4. Transfer and Assignment of Debt. Seller hereby transfers and assigns to Buyer all of his right, title, and interest in the Debt in accordance with the terms and conditions of this Agreement. Following transfer to Buyer of Seller’s right, title, and interest in the Debt, the Company shall assume all Debt obligations to Buyer and the Company shall have no further obligation or owe no monies to Seller.
  
 	 
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 5. Representation of Seller. Seller hereby represents and warrants to the Company and Buyer that, as of the Effective Date:
  
 (a) the amount of the Debt owed by the Company to Seller is the amount set forth for such Debt in the attached Exhibit A, plus accrued interest;
  
 (b) Seller has not previously sold, transferred, participated, or assigned to any party other than Buyer, in whole or in part, any interest in the Debt;
  
 (c) Seller is authorized to execute this Agreement and the other documents called for herein on behalf of Seller and, assuming due authorization, execution, and delivery of this Agreement by Buyer and the Company, this Agreement will constitute a legal, valid ,and binding obligation of Seller, fully enforceable against Seller in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium, or other similar laws affecting enforcement of creditor rights generally, and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law);
  
 (d) execution and delivery of this Agreement by Seller and performance of its obligations hereunder will not conflict with any provision of any law or regulation to which Seller is subject, or conflict with, result in a breach of, or constitute a material default under, any of the terms, conditions or provisions of any agreement or instrument to which Seller is a party or by which it is bound, or any order or decree applicable to Seller , or result in the creation or imposition of any lien on any of Seller’s assets or property, in each case that would materially and adversely affect the ability of Seller to carry out the transactions contemplated by this Agreement;
  
 (e) no consent, approval, authorization or order of any court or governmental agency or body is required for the execution, delivery, and performance by Seller, or for compliance by Seller with this Agreement or consummation of the transactions contemplated hereby;
  
 (f) Seller has power and authority to execute, deliver, and perform its obligations under this Agreement; and
  
 (g) no brokerage commission is payable to any person or entity in connection with the transactions contemplated hereby;
  
 7. Representations and Warranties of Buyer. Buyer represents and warrants to Seller and the Company that, as of the date of this Agreement:
  
 (a) Buyer is a limited liability company duly organized and validly existing under the laws of the State of California;
  
 (b) entry into this Agreement by Buyer has been validly and effectively approved by Buyer by appropriate limited liability company action in accordance with Buyer’s governing organizational documents and applicable law;
  
 	 
	2
	

	 

  
 (c) the individual executing this Agreement on behalf of Buyer is duly authorized to execute and deliver this Agreement and the documents called for herein on behalf of Buyer and, assuming due authorization, execution, and delivery of this Agreement by Seller and the Company, this Agreement will constitute a legal, valid ,and binding obligation of Buyer, enforceable against Buyer in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium, or other similar laws affecting enforcement of creditor rights generally, and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law);
  
 (d) execution and delivery of this Agreement by Buyer and performance of its obligations hereunder will not conflict with any provision of any law or regulation to which Buyer is subject, or conflict with, result in a breach of, or constitute a material default under, any of the terms, conditions or provisions of any agreement or instrument to which Buyer is a party or by which it is bound, or any order or decree applicable to Buyer, or result in the creation or imposition of any lien on any of Buyer’s assets or property;
  
 (e) no consent, approval, authorization, or order of any court or governmental agency or body is required for the execution, delivery, and performance by Buyer or for compliance by Buyer with this Agreement or the consummation of the transactions contemplated hereby; and
  
 (f) Buyer hereby acknowledges and agrees that it is purchasing the right, title, and interest in the Debt “as is” and that, except as specifically set forth herein, Seller has not made any representations or warranties of any kind with respect to the right, title and interest in the Debt or the Company, whether pursuant to this Agreement or otherwise.
  
 8. Representations and Warranties of Company. The Company represents and warrants to Seller and to Buyer that, as of the date of this Agreement:
  
 (a) Company is a corporation duly organized and validly existing under the laws of the State of Nevada;
  
 (b) entry into this Agreement by Company has been validly and effectively approved by Company by appropriate corporate action in accordance with Company’s governing organizational documents and applicable law;
  
 (c) the individual executing this Agreement on behalf of Company is duly authorized to execute and deliver this Agreement and, assuming due authorization, execution, and delivery of this Agreement by
  
 Seller and Buyer, this Agreement will constitute a legal, valid, and binding obligation of Company, enforceable against Company in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium, or other similar laws affecting enforcement of creditor rights generally, and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law);
  
 (d) execution and delivery of this Agreement by Company and performance of its obligations hereunder will not conflict with any provision of any law or regulation to which Company is subject, or conflict with, result in a breach of, or constitute a material default under, any of the terms, conditions or provisions of any agreement or instrument to which Company is a party or by which it is bound, or any order or decree applicable to Company, or result in the creation or imposition of any lien on any of Company’s assets or property; and
  
 (e) no consent, approval, authorization, or order of any court or governmental agency or body is required for the execution, delivery, and performance by Company or for compliance by Company with this Agreement or the consummation of the transactions contemplated hereby.
   
 	 
	3
	

	 

  
 9. Other Documentation. Each of the Parties shall from time to time, upon the reasonable request of another Party, execute any and all additional documents or other instruments that may be necessary,   and as reasonably requested, to more fully transfer the right, title, and interest in the Debt from the Seller to Buyer.
  
 10. Notices. Any notice required or permitted by or in connection with this Agreement shall be in writing and shall be made by facsimile, hand delivery, or overnight delivery service at the appropriate addresses set forth in the first paragraph hereof or to such other address as may be hereafter specified by written notice by the respective Parties. Notice shall be considered given as of the date of the facsimile upon confirmation of transmission, or hand delivery, or one (1) business day after delivery by overnight delivery service. If notice is tendered pursuant to the provisions of this paragraph and is refused by the intended recipient thereof, the notice, nevertheless, shall be considered to have been given and shall be effective as of the date herein provided.
  
 11. Waivers. No waiver or indulgence by any Party at any time and from time to time shall constitute a future waiver of performance or exact performance by such Party unless specifically so expressed by such Party in writing.
  
 12. No Third Party Beneficiary Rights. No person that is not a party to this Agreement shall have any benefit or any third-party beneficiary rights as a result of this Agreement.
  
 13. Assignment. Without consent of the Parties, no Party shall be permitted to assign its rights with respect to this Agreement to a third party.
  
 15. Binding Obligation. This Agreement shall be binding upon the Parties hereto and their successors and permitted assigns.
  
 16. Final Agreement. This Agreement contains the final and entire agreement and understanding of the Parties with respect to the matters addressed herein, and any terms and conditions not set forth in this Agreement are not a part of this Agreement and any understanding of the Parties.
  
 17. Amendment. This Agreement may be amended or altered only in writing signed by the Parties.
  
 18. Choice of Law. The laws of the State of California (excluding, however, conflict of law principles) shall govern and be applied to determine all issues relating to this Agreement and the rights and obligations of the Parties hereto, including the validity, construction, interpretation, and enforceability of this Agreement and its various provisions and the consequences and legal effect of all transactions and events that resulted in the execution of this Agreement or which occurred or were to occur as a direct or indirect result of this Agreement having been executed.
  
 19. Consent to Jurisdiction. Each of the Parties hereby consents to non-exclusive personal jurisdiction in Los Angeles County, California, and the federal courts in the Central District of California in connection with any action arising out of this Agreement.
  
 20. Invalidity of any Part. If any provision or part of any provision of this Agreement shall for any reason be held invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provisions of this Agreement, and this Agreement shall be construed as if such invalid, illegal, or unenforceable provision or part thereof had never been contained herein, but only to the extent of its invalidity, illegality, or unenforceability.
  
 	 
	4
	

	 

   
 21. Time. Time is of the essence with respect to this Agreement and the terms and conditions hereof.
  
 22. Execution in Counterparts and Via Facsimile or PDF. This Agreement may be executed and delivered in counterparts, and signed counterparts may be delivered via facsimile or PDF, with all executed counterparts delivered via facsimile or PDF to be deemed to have the same force and effect as if bearing original signatures.
  
 23. Waiver of Trial by Jury. The Parties hereto, and each of them, hereby waive any right to trial by jury. Any suit, action or proceeding, whether claim or counterclaim, brought or instituted by or against any Party hereto or any successor or assign of any Party on or with respect to this Agreement or which in any way relates, directly or indirectly, to the sale of the Debts or any event, transaction, or occurrence arising out of or in any way connected with the sale of the Debts or the dealings of the Parties with respect thereto, shall be tried only by a court and not by a jury.
  
 	 
	5
	

	 

  
 IN WITNESS WHEREOF, this Agreement is executed under seal and is effective on the date first above written.
  
 the Company: Merion, Inc.
   
 /s/ Dinghua Wang 
 By: Dinghua Wang 
 Its: CEO
  
  
 Buyer: DW California Food Distribution LLC.
   
 /s/ Dinghua Wang 
 By: Dinghua Wang 
 Its: CEO
  
 Seller: 
   
 /s/______________________________
  
  
 	 
	6
	

	 

   
 EXHIBIT A
  
 	 Name
	 Debt in Principal Amount
	 Address

	 SUSS Technology Corporation
	 $1,000,000
	  

	 Lin Yun Da
	 $1,480,000 + $176,997.26 (interest) = $1,656,997.26 
	  

	 Vickie Ho
	 $95,000
	  

	 Huan Xia Xu
	 $30,000
	  

	 Xun Wang
	 $30,000 + $13,117.80 (interest) = $43,117.80
	  

	 Xu Han Yang
	 $180,748.75
	  

	 Shun Pooi Lam
	 $50,000
	  

	 Lee Mew Get
	 $20,000 + $5,375.34 (interest) = $25,375.34
	  

	 Yuling Wei
	 $50,000
	  

	 Chun Yan Xu
	 $308,090.58
	  

  
  
 	 
	7

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