Document:

INTELLECTUAL PROPERTY LICENSE AGREEMENT

IP License Agreement

INTELLECTUAL PROPERTY MASTER LICENSE AGREEMENT

THIS AGREEMENT is made effective the day of  May 2, 2013 (the “Effective Date”)

BETWEEN:

Alenadre Frigon

 (the “Licensor”)  

-AND-

Xumanii, Inc.

(the “Licensee”)

(collectively, the “Parties”)

WHEREAS:

A.

The Licensor has developed Source Code, know-how, trade-secrets relating to the pending United States Patent Applications. 

B.

The Licensee desires a license to use and commercially exploit the Licensor’s Technology for use in    .

C.

The Licensor has agreed to grant an exclusive worldwide license to the Licensee for the use and commercial exploitation of the Technology, upon terms and conditions. 

NOW THEREFORE, IN CONSIDERATION of entering into this Agreement, the mutual covenants, conditions and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties covenant and agree as follows:

1

DEFINITIONS

Wherever used in this Agreement, the following words and terms shall have the respective meanings ascribed to them as follows:

“Accounting Period” means the period commencing on the 1st day of the previous month and the last day of the previous month.

“Accrued” means when payment is received by the Licensee or is to accrue on record pursuant to is accounting system.

“Agreement” means this Intellectual Property License Agreement, and includes authorized amendments and schedules, if any;

“Certification” means a sworn or affirmed statement under oath in the form of Schedule A to this Agreement.

“Confidential Information” means all information, in whatever form, that is not generally available to third parties or the public, including without limitation, all research, data, specifications, technical information, devices, concepts, compilations, programs, designs, tooling, plans, drawings, prototypes, models, documents, recordings, instructions, manuals, papers, business practices and strategies, financial information, business plans, know-how including, but not limited to the Know-How, inventions (whether patentable or not), techniques, processes, methods of doing business, software, personnel data, contracts, purchase requirements, forecasts and market strategies, data on equipment sold and serviced, plans production processes, product specifications and formulas, methods, technical and product bulletins, surveys, research and development programs, sales reports, or other materials, of any nature or embodiment whatsoever written or otherwise, relating to same, as well as the existence of this Agreement and its terms and conditions.

Confidential Information does not include any information which is publicly available at the time of disclosure or subsequently becomes publicly available through no fault of the recipient party, or is rightfully acquired by the recipient party from a third party who is not in breach of an agreement to keep such information confidential;

“Effective Date” means:   Date of signing

“Improvements” means improvements, modifications and developments relating to the subject matter of the Technology, including patentable inventions including, but not limited to, Divisional or Continuation Patent Application from one of the original Patent Applications.

“Know-How” means the information, source code knowledge, the plans and drawings, and the Trade-Secrets of the Licensor relating to the Technology.

“Net Sales Price” means Licensee’s invoice price for all Licensee’s Products.

“Patent Rights” means patents and patent applications in any country in respect of an invention owned by the Licensor relating to the Technology, including provisions, continuations-in-part, continuations, divisions, Improvements, re-issues and extensions of those patent and patent applications, including inventions covered by United States Patent Application Numbers.

“Licensed Use” means the right to use and commercially exploit the Technology for the Licensee’s Products.

“Licensee’s Products” means any product or service made, used, sold, offered for sale, or otherwise distributed by the Licensee that includes the Technology.

“Royalty” means Sales Revenue for the Accounting Period which has Accrued to the Licensee. 

“Sale” means every disposition or provision of goods or services to a person at arm’s length from the seller for any consideration, including renting, leasing, lending and bartering of any product or service involving the use of the Technology.

“Sales Revenue” means the total income or value, whichever is higher, net of trade discounts, excise and sales taxes, returns and allowances, in accordance with generally accepted accounting principles, earned from normal bona fide arm’s length transaction from the Sale or use of the Technology irrespective of collection of any debt.  If a product or service is sold or disposed other than at arm’s length, or is bartered for other goods, then the Sales Revenue is deemed to be a typical recent price or reasonable price of such a product or service, or their equivalent, whichever is higher.

“Exclusive” means that the right granted solely to the Licensee for the Licensed Use, and that the Licensor will not, subject to the conditions specified in this Agreement, grant to any third party, any rights which would overlap the rights granted to the Licensee.  The Licensor however reserves the full right to use the Technology and its Improvements for its purposes and exploitation.

“Technology” means unpatented inventions, Source Code, the Confidential Information, the Patent Rights, the Know-How, and the Trade-Secrets. 

 “Territory” means worldwide. 

“Trade-Secrets” means written or oral information, including formulae, patterns, compilations, programs, devices, methods, know-how including, but not limited to Know-How, techniques, process or business information that derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use, and is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.   

2

GRANT AND TERM OF THE LICENSE

GRANT 

Subject to the terms of this Agreement, the Licensor hereby grants to the Licensee the Sole Right to the Technology for the Licensed Use in the Territory and the Sole Right to improve, modify and develop the Technology for the Licensed Use in the Territory.

2.1

The Licensee shall promptly disclose to the Licensor the Improvements it may discover or acquire during the term of this Agreement.

2.2

The Licensee understands and agrees to assign to the Licensor all the Improvements it discovers or acquires during the term of this Agreement.

2.3

The Licensee agrees to incorporate into all contracts, with all of its employees and contractors, with a provision that all the Improvements discovered or acquired during the term of this Agreement be assigned to the Licensee.  The Licensee understands and agrees that upon the request of the Licensor the Licensee shall provide to the Licensor the Certification that they have complied with this obligation.

2.4

The Licensor shall grant to the Licensee a right to use the Improvements in respect of the Licensed Use in the Territory. 

 

2.5

The Licensee agrees to execute all necessary documents and provide assistance during and subsequent to the term of this Agreement to enable the Licensor to perfect and maintain its right, title and interest in and to all the Improvements, including the preparation, filing and prosecution of any patentable invention.

2.6

The Licensee shall make best efforts to use, promote, market, sell, improve, development, modify and otherwise commercially exploit the Technology and the Licensees’ Products. 

         TERM

 This Agreement shall become effective on the Effective Date, and shall extend for an 

 initial term of twenty five (25) years (the “Term”) with an additional option for successive twenty-five years or other longer  period that is mutually agreed upon by both parties and shall automatically be renewed on  successive Terms unless either of the Parties by notice in writing at least thirty (30) days before the expiration of the initial term or any renewal hereof, shall advise the other party of its desire to terminate.

3

INSPECTION AND QUALITY STANDARDS

3.1

The quality of the Licensees’ Products shall meet a standard of reasonable quality and service, which shall be determined in the sole discretion of the Licensor (the “Reasonable Quality and Service”).

3.2

The Licensor may request a sample of the Licensees’ Products, at the Licensor’s sole expense, to determine whether they meet the Reasonable Quality and Service.  If the Licensor requests a sample of the Licensees’ Products, the Licensee shall promptly provide the sample.

3.3

In the event that the Licensor determines that the Licensees’ Products do not meet the Reasonable Quality and Service, the Licensor shall give the Licensee notice, within seven (7) days of receiving the sample of the Licensees’ Products pursuant to clause 3.2 of this Agreement.  The notice shall outline the deficiencies and provide that within seven (7) days from the date that the Licensee receives the notice the Licensee shall remedy the deficiencies outlined in the notice.  If the deficiencies are not cured within this seven (7) day period, the Licensor may deliver written notice to the Licensee terminating this Agreement.  

3.4

The Licensee shall, at their own cost, provide a proprietary notice on the Licensees’ Products, and the Licensees’ Products promotional material and product catalogues.  The proprietary notice shall be determined, from time to time set out in written notice to the Licensee by the Licensor acting reasonably.   

4

SUB-LICENSE

4.1

The Licensee shall be entitled to grant sub-licenses to any person at the Licensees  upon written notice and reasonable approval to Licensor.  Licensee shall require the sub-Licensee to (a) execute an agreement with identical terms and conditions to this Agreement and (b) provide an definitive copy of the sub-license agreement with the Sub-Licensee to Licensor, as a pre-condition to such sub-license.  Licensor shall be included as a party of interest and beneficiary of any sub-license agreement.

5

USE OF THE TECHNOLOGY

5.1

The Licensee shall comply with all laws applying to the Technology, the Improvements and the Licensees’ Products. 

6

OWNERSHIP OF THE TECHNOLOGY

6.1

The Licensee acknowledges that all right, title, interest, ownership and any goodwill in and to the Technology, the Confidential Information, the Improvements, inventions and other intellectual property shall at all times remain with the Licensor and nothing herein conveys any of such rights to the Licensee.

7

CONSIDERATION AND PERFORMANCE MILESTONES

a)

Licensee shall pay to Licensor $10,000, per annum post audit.

 

                      The Licensee shall make such payments to Licensor within thirty (30) days after  

                       the end of each one year period referred to above.

b)

On request by Licensor from time to time, Licensee shall provide to Licensor complete information, particulars, documents and records of or related to Licensee’s use of the Technology, its manufacturing, selling, licencing and other dispositions of Licensee’s Products, and of its Net Sales Price.

a.1

The Licensee shall provide to the Licensor sixty (60) days prior to the Effective Date each year that this Agreement is in effect, the Sales Revenue for the Accounting Period.

a.2

The Licensee agrees to keep and maintain records in sufficient detail for the purpose of determining the Sales Revenue for the Accounting Period (the “Sales Revenue Records”). 

a.3

 The Licensee shall keep and preserve the Sales Revenue Records for the duration of this Agreement and for a period of seven (7) years thereafter.  If the Licensor fails to keep and preserve the Sales Revenue Records for this period of time the Licensor may deliver written notice to the Licensee terminating this Agreement.  

a.4

The Licensor may request inspection of the Sales Revenue Records, at the sole expense of the Licensor.  If the Licensor requests inspection of the Sales Revenue Records, the Licensee shall promptly provide reasonable access to the books and records by an independent auditor to verify payment made by the Licensee to the Licensor according to clause 7 of this Agreement, or any other clause in this Agreement.  

a.5

If the Licensee refuses to provide to the Licensor the Sales Revenue Records, fails to keep and maintain the Sale Revenue Records, or refuses access to the Licensee’s  premises to inspect and commission audits the Licensor may deliver written notice to the Licensee terminating this Agreement.  

a.6

The Licensee shall be liable for interest at a rate of two (2%) percent per month (24% annually) compounded annually on any overdue payment under clause 7 of this Agreement, or any other payment payable under this Agreement, commencing on the date that the payment becomes dues.

a.7

The Licensor may terminate this Agreement upon delivery of written notice to the Licensee if the Licensee has not fulfilled its obligations under clause 7.1 or 7.2 of this Agreement, and such obligations are not fulfilled within thirty (30) days following delivery to the Licensee by the Licensor of written notice identifying the non-fulfilment and stating its intention to terminate this Agreement if the obligations are not fulfilled within the thirty (30) days.

a.8

The Licensee’s obligation to pay the Licensor pursuant to clause 7 of this Agreement, or payment pursuant to any other clause in this Agreement, shall continue to remain after the termination of this Agreement.

2

LICENSOR REPRESENTATIONS AND WARRANTIES

2.1

The Licensor represents and warrants that the Licensor has the power, authority, and capacity to enter into this Agreement and other agreements and instruments to be executed by the Licensor as contemplated by this Agreement and to grant the rights intended to be granted to the Licensee under this Agreement and to perform the Licensor’s obligations under this Agreement.

3

LICENSEE REPRESENTATIONS AND WARRANTIES

3.1

The Licensee represents and warrants that:

a)

the Licensee has the power, authority, and capacity to enter into this Agreement and other agreements and instruments to be executed by the Licensor as contemplated by this Agreement and to grant the rights intended to be granted to the Licensee under this Agreement and to perform the Licensor’s obligations under this Agreement;

b)

the Licensee has the ability and authority to use and commercially exploit the Technology in the Territory;

c)

the Licensee has the ability and authority to distribute, sell, sub-license and market the Licensees’ Products in the Territory;

d)

the execution of this Agreement is duly and validly authorized by all necessary authorities and all necessary approvals have been sought;

e)

the execution of this Agreement is not inconsistent with, restricted by or in breach or violation of any other contract, instrument or obligation of the Licensee; 

f)

this Agreement constitutes a legal, valid and binding obligation of the Licensor enforceable against the Licensee;

g)

the Licensee is not an insolvent person within the meaning of applicable bankruptcy, reorganization, insolvency or fraudulent conveyance law and will not become an insolvent person as a result of the transactions contemplated by this Agreement or any of the other agreements or instruments to be executed by the Licensee as contemplated by this Agreement; and  

h)

the Licensee shall not dispute or contest, directly or indirectly, the validity, ownership or enforceability of the Licensor’s right, title and interest in and to the Technology, and shall not take any other steps to the detriment of the validity of the Technology during the term of this Agreement.

1

CONFIDENTIAL INFORMATION AND TRADE-SECRETS

1.1

The Parties agree to keep the Confidential Information and the Trade-Secrets provided to each other under this Agreement confidential and not to disclose to any person or to use it for any purpose, except as may be necessary in the proper discharge of their obligations under this Agreement. 

1.2

 Prior to disclosing any Confidential Information to any person, Licensee shall first obtain or cause to be obtained, written confidentiality agreements incorporating all of the terms of part 10 of this Agreement with necessary changes, from each and every person to whom such Confidential Information is to be disclosed, including without limitation all directors, officers, employees and contractors of Licensee, and all directors, officers and employees of contractors of Licensee to whom any Confidential Information is to be disclosed.  Without limiting the foregoing, the Licensee agrees to incorporate into all contracts, with all of its employees and contractors, the obligation to keep the Confidential Information and the Trade-Secrets provided to it by the Licensor confidential.

1.3

The Licensee agrees and understands that if the Licensee discloses the Confidential Information or Trade-Secrets, pursuant to clause 10.1 or 10.2 of this Agreement, the Licensee shall be responsible for:

a)

ensuring that the recipient party of this information understands and maintains its confidentiality; and

b)

keeping a list of all persons to whom this information is disclosed to.

a.1

Upon request of the Licensor, the Licensee shall provide the Licensor with the list referred to in clause 10.2(b) of this Agreement, and the Certification that this is a complete and accurate list.

a.2

 Upon request of the Licensor, the Licensee shall provide to the Licensor the Certification that they have complied with the obligation contained in clause 10.2(a) of this Agreement.

a.3

The Confidential Information and the Trade-Secrets may only be disclosed as is required to comply with binding orders of governmental entities or courts of law that have jurisdiction over it, provided that the receiving party:

a)

gives the disclosing party reasonable written notice to allow the disclosing party to seek a protective order or other appropriate remedy;

b)

discloses only such information as is required by the governmental entity or the court of law; and

c)

uses commercially reasonable efforts, at the disclosing party’s cost and expense, to obtain confidential treatment for any of the disclosing party’s Confidential Information and the Trade-Secrets so disclosed.

a.1

The Licensor may terminate this Agreement immediately upon delivery of written notice to the Licensee if the Licensee breaches the confidentiality obligations contained in this Agreement, or does not provide the Certification when requested to do so.

a.2

The Licensee shall use the same or greater degree to prevent any unauthorized disclosure or use of the Confidential Information and the Trade-Secrets as it uses to protect its own confidential information of a like nature.

a.3

The Licensee’s obligation not to disclose and to prevent the disclosure of the Confidential Information and the Trade-Secrets shall continue to remain after the termination of this Agreement.

a.4

Upon termination of this Agreement, the Licensee shall return to the Licensor all the Confidential Information and the Trade-Secrets, in its possession, custody or control.  The Licensee shall also provide the Licensor with the Certification that the Licensee has complied with this obligation.

2

PROTECTION AND PRESERVATION OF THE TECHNOLOGY

2.1

The Licensor and the Licensee mutually covenant that they will at all times use their best efforts to preserve the value and validity of the Technology.

2.2

The Licensee shall promptly give notice to the Licensor of any conflicting use, act of infringement, appropriation, and any action or threatened action by any person alleging that the use of the Technology infringes the rights of a third person (the “Unauthorized Use”).

2.3

If, after three (3) months from the time the Licensor has knowledge of the Unauthorized Use, the Licensor declines or fails to defend or protect the Technology, the Licensee may provide the Licensor with an opinion as to the substantial likelihood of success from an independent competent counsel in the field of intellectual property (the “Opinion”).

2.4

If, after three (3) months from the time the Licensor receives the Opinion, the Licensor declines or fails to defend or protect the Technology, the Licensee shall have the right, at its own cost, to prosecute, defend or assume conduct of the prosecution or defence of the Technology provided that the Licensee:

a)

retains the legal counsel approved by the Licensor; and

b)

regularly consults the Licensor’s designated Attorney in privilege communication in order to: 

i.

keep the Licensor fully informed of the progress of the proceedings;

ii.

consult the Licensor on all legal matters pertaining to the proceedings; and

iii.

provide the Licensor with copies of all pleadings and correspondence pertaining to the proceedings.

The Licensee and Licensor agree that the proceeds and any damages awarded in these proceedings shall be considered the Royalty after the Licensee’s legal and attorney costs have for such action have been deducted from such proceeds or damages awarded. 

a.1

In all such proceedings, each of the Parties shall cooperate and assist the other to the fullest extent possible on any such negotiations and proceedings.

a.2

If the Licensor is a party to proceedings, referred to in clause 11 of this Agreement, the Licensor may in its sole discretion settle any dispute with any third party at any time without notice or compensation to the Licensee.

1

TERMINATION 

1.1

The Licensor may terminate this Agreement:

a)

For cause immediately upon delivery of written notice to the Licensee if the Licensee breaches this Agreement, and such breach is not cured within thirty (30) days following delivery to the Licensee by the Licensor of written notice identifying the breach and stating its intention to terminate this Agreement if the breach is not cured within the thirty (30) days or some other mutually agreed upon time frame;

b)

Immediately upon delivery of written notice to the Licensee in the event the Licensor has an agreement (or memorandum of understanding) to sell the Licensor’s Technology, subject to Licensee’s and or it’s company or companies’ right of first refusal.

c)

immediately upon delivery of written notice to the Licensee if bankruptcy or insolvency proceedings have been initiated for the distribution of the assets of the Licensee;

d)

immediately upon delivery of written notice to the Licensee if there is a Change of Control (subsequently defined) in respect of the Licensee without the prior written consent of the Licensor;

e)

immediately upon delivery of written notice to the Licensee if the Licensee assigns or attempts to assign this Agreement or any rights granted hereunder without the prior written consent of the Licensor; and

f)

immediately upon delivery of written notice to the Licensee if the Licensor notifies the Licensee that the Licensee has received from the Licensor during a consecutive twelve (12) month period three (3) or more notices relating to a default under this Agreement, whether or not such defaults have been cured.

g)

The Licensee and or its company or companies shall have the right of first refusal to purchase all or part of the Licensor’s Technology of the Licensee should they come up for sale for any reason.

a.1

Upon the termination of this Agreement the Licensee shall deliver to the Licensor all the Licensees’ Products, and cease using the Technology.

2

NOTICES

2.1

Any notice, consent, or other communication required or authorized under this Agreement to be given by either party to the other party shall be in writing, shall be deemed to be properly given when actually transmitted or delivered, and shall be delivered to the Parties at their respective addresses as set out below or at such other address as may be designated by written notice of the Party:

a)

in the case of the Licensor to:

and 

b)

in the case of the Licensee to:

1

RIGHT TO PURCHASE

14.1

 Upon the request of the Licensee, the Licensor shall sell within Licensor’s Technology to Licensee for a purchase price to be negotiated at that time, subject to Licensor providing its shareholders with dissenters rights pursuant to the  Law of the Cayman Islands.  

2

GUARANTEE AND INDEMNITY

2.1

The Licensee shall indemnify and undertake to defend the Licensor and its affiliates, shareholders, directors, officers, employees and agents and hold them harmless against all claims, suits, proceedings, demands, actions of any nature or kind whatsoever, damages, judgments, costs, expenses and fees (including, but without limitation, reasonable legal expenses) arising out of or in any way connected with the manufacture, use marketing or sale of the Licensee’s Products and the Technology.

2.2

The Licensee agrees to cooperate fully with and assist the Licensor in the defence of such claim and execute such documents and does such acts and things as in the opinion of the Licensor may be reasonably necessary.

3

FURTHER ASSURANCES

3.1

The Parties shall from time to time, at its own expense, execute and deliver all such other and further deeds, documents, instruments and assurances as may be necessary or required to carry out and to put into effect the purpose and intent of this Agreement.

4

RELATIONSHIP OF PARTIES

4.1

Nothing in this Agreement is intended, nor shall it be deemed, to confer on or constitute either party as the agent of the other or to create a partnership, subsidiary, joint venture, franchise or similar relationship between the parties.  

4.2

Neither party shall have the power to obligate or bind the other party in contract, tort or otherwise howsoever except as provided in this Agreement.

5

SURVIVAL

5.1

All obligations of the Licensor and the Licensee which expressly or by their nature survive the termination or expiration of this Agreement shall continue in full force and effect. 

6

FORCE MAJEURE

6.1

Neither party shall be responsible to the other for the non-performance or delay in performance (other than the payment of money) occasioned by any causes beyond its control including, without limitation, acts of civil or military authority, strikes, lockouts, embargoes, insurrections, acts of God or acts of terrorism.

6.2

If any such delay occurs, any applicable time period shall be extended for a period equal to the time lost, provided that the party affected makes reasonable efforts to mitigate the consequences of such an event and gives the other party prompt notice of any such delay.

7

ASSIGNMENT AND CHANGE OF CONTROL

7.1

This Agreement and the license rights granted hereunder, or any part thereof, may not be assigned or transferred by the Licensee without the prior written consent of the Licensor.

7.2

Any change in the control or identity of the Licensee, be it direct or indirect, including without limitation, by sale of all or a substantial portion of the assets of the Licensee, any shareholder selling or transferring any of the shares in the Licensee, share issuance of the Licensee, merger, material change in control and management of the Licensee or otherwise, shall be deemed to be an assignment (“Change of Control”). 

8

AGREEMENT BINDING ON SUCCESSORS AND ASSIGNS

8.1

This Agreement shall enure to the benefit of and is binding upon the Parties and their respective affiliates, successors and permitted assigns.

9

ENTIRE AGREEMENT AND NO WAIVER OF RIGHTS

9.1

This Agreement constitutes the entire Agreement between the Parties with respect to the subject matter herein and supersedes all prior agreements, understandings, negotiations, discussions, and representations, written or oral, between the Parties with respect thereto.  

9.2

There are no representations, promises, warranties, covenants or undertakings other than those contained in this Agreement, which together represent the entire understanding of the Parties.  

9.3

This Agreement may not be released, amended or modified by the Parties in any matter except by written instrument signed on behalf of each of the Parties by their duly authorized officers or representatives.

9.4

The failure of or delay on the part of any party hereto to enforce any of its rights under this Agreement shall not be deemed to be a continuing waiver or a modification by such party of any of its rights under this Agreement, and any party, within the time provided by the applicable law, may commence appropriate legal proceedings to enforce any or all of its rights under this Agreement, and any prior failure to enforce or delay in enforcement shall not constitute a defence.

9.5

This Agreement may not be amended except by written agreement between the Parties.

10

COUNTERPARTS

10.1

This agreement may be executed in any number of counterparts, and may be delivered by facsimile.  All of these counterparts shall for all purposes constitute one agreement, binding on the parties, notwithstanding that all parties are not signatory to the same counterpart.

11

HEADINGS, CONSTRUCTION AND INTERPRETATION

11.1

The headings in this Agreement are for convenience of reference only and shall have no legal effect in the interpretation of the terms hereof.

11.2

The Parties acknowledge that this Agreement has been the subject of full opportunity for negotiation and amendment and that the party who has taken the role of drafter shall not suffer any adverse construction of any terms or language of this Agreement because of such role.

12

SEVERABILITY

12.1

In the event that any part, section, article, clause, paragraph or subparagraph of this Agreement shall be held to be indefinite, invalid, illegal or otherwise voidable or unenforceable (the “Invalid Provision”), the entire Agreement shall not fail on account thereof, and the balance of this Agreement shall continue in full force and effect.  

12.2

The Parties agree to negotiate to replace the Invalid Provision with a valid provision which follows the original intent of the Invalid Provision as closely as possible.

13

GOVERNING LAW

13.1

This Agreement shall be governed by and construed in accordance with the laws of the Cayman Islands in force therein without regard to its conflict of law rules.  

13.2

The Parties agree that by executing this Agreement they have submitted to the exclusive jurisdiction of a court of competent jurisdiction within the Cayman Islands.  Nothing in this Agreement excludes the Parties from seeking injunctive and equitable relief in a court of competent jurisdiction.

IN WITNESS WHEREOF the Parties have executed this Agreement with effect as of the Effective Date. 

/s/ Alexandre Frigon

Name: Alexandre Frigon

Title: President/CEO

/s/ Alexandre Frigon

Name: Alexandre Frigon

Page 1 of 17Converted by EDGARwiz

CONSULTING AGREEMENT

THIS  AGREEMENT  (the  “Agreement”)  is  made  and  entered  into  this  13th  day  of  May,  2013,  by  and  between

Xumanii  Inc.  a  company  duly  incorporated  in  Nevada,  USA  with  its  address  at  PO  Box  309,  Ugland  House,

South  Church  Street,  George  Town,  Grand  Cayman  KY1-1104  Cayman  Islands  (the  “Company”  or  “Xumanii”)

and  Mr.  John  E.  Johnson  II  residing  at  5440  Tujunga  #1405  north  Hollywood  CA  91601  (“Consultant”)

(together the “Parties”).

WHEREAS,  the  Parties  desire  to  set  forth  the  terms  and  conditions  under  which  the  Consultant  shall  provide

consulting  services  to  negotiate  live  broadcast  agreements  with  Artists,  Management,  Record  Labels,

Festivals and other entities within the Entertainment  Industry, on behalf of the Company, to the best and

reasonable efforts of consultant.

NOW  THEREFORE,  in  consideration  of  the  mutual  promises  and  covenants  herein  contained,  and  other  valid

consideration, receipt of which is hereby acknowledged, the Parties agree as follows:

1.    Term and Venue of Agreement

The  agreement  shall  remain  in  effect  from  May  1st,  2013  through  the  expiration  of  a  period  of  2  years

from  the  date  hereof  (“the  Term”),  and  thereafter  may  be  renewed  upon  the  mutual  consent  of  the

Parties.  This agreement is also valid for the world.

2.    Termination of Agreement

The  Company  may  not  terminate  this  agreement  unless;  the  Consultant  is  not  performing  his  duties  as

described  in  this  agreement  or;  the  Consultant  is  causing  harm  or  damage  to  the  Xumanii  brand.  In  the

event the company alleges that the Consultant is not performing his duties, the Company must notify the

Consultant  in  writing  pursuant  to  the  notice  requirements  identified  in  paragraph   19A  below.  Further,

the  Consultant  shall  be  allowed  10  calendar  days  to  “cure”  said  alleged  default.  In  the  event  of

termination  of  said  Agreement,  the  Consultant  shall still  be  paid  his  cash  and  stock  for  the  remainder  of

this  Agreement  according  to  the  Compensation  schedule  below  on  an  accelerated  basis;  payable  at

termination.

3.    Nature of Services to be rendered

During  the  Term  and  any  renewal  thereof,  the  Consultant  shall;  provide  the  Company  with   consulting

service(s)  on  a  best  efforts  basis  in  connection  with  negotiating  live  broadcast  agreements  or  other

endorsements  within  the  Entertainment  industry  and  use  its  best  efforts  to  introduce  the  Company  to

various  Artists,  Managers,  Companies  and  Event  producers  to  secure  live  broadcast  agreements  with

them.  It  is  acknowledged  and  agreed  by  the  Company  that  the  Consultant  carries  no  professional

licenses,   and   is   not   rendering   legal   advice   or   performing   accounting   services,   nor   acting   as   an

investment advisor or broker-dealer within the meaning of applicable state and federal laws.

4.     Disclosure of Information

The Consultant agrees as follows:

The  Consultant  shall  NOT  disclose  to  any  third  party  any  material  non-public  information  of  data

received  from  the  Company  without  the  consent  and  approval  of  the  Company  other  than:  (i)  to  its

agents or representatives that have a need to know in connection with the services hereunder; (ii) as may

be  required  by  applicable  law;  and  (iii)  such  information  that  becomes  publicly  known  through  no

action of the Consultant.

5.    Compensation

The following represents the compensation to be paid to the Consultant in connection with rendering the

Services hereunder during the term of this Agreement, or at termination as described above.

The  Consultant  shall  receive  a  sum  of  Five  Thousands  US  dollars  per  month  (US$  5,000.00)  for  the

duration of this agreement, beginning May 1, 2013.

The  Consultant  shall  also  receive  One  Million  Five  Hundred  Thousand  (1,500,000)  Class  B  Preferred

Stock.  The  shares  will  be  issued  in  the  following  manner:  500,000  shares  upon  the  execution  of  this

agreement  and  250,000  Class  B  Preferred  Stock  on  each  subsequent  6  month  period  until  all  1,500,000

shares have been issued.

The Consultant shall also be reimbursed actual reasonable travel and other out of pocket expenses which

will  be  billed  in  arrears  and  are  due  payable  within  (15)  days  of  the  Company’s  receipt  of  the  subject

invoices  and  detailed  expense  report.  All  such  expenses  must  be  pre-approved  by  the  Company.  (Said

approval “request form” attached as exhibit “A” hereto).

6.      Reporting to the Board of Directors

The Consultant agrees as follows:

The  Consultant  shall  report  to  the  board  of  directors  on  a  bi  weekly  basis  and  provide  to  the  board  of

directors  a  written  progress  report  as  to  meetings,  signings  or  endorsements  with  prospective  live  broad

cast    events,    performance    artists,    management    companies,    marketing    companies,    within    the

Entertainment industry.  (Said progress report standards are attached hereto as exhibit “B”).

7.    Representations and Warranties of the Consultant.

In  order  to  induce  the  Company  to  enter  into  said  Agreement,  the  Consultant  hereby  makes  the

following unconditional representation and warranties:

In connection with its execution of and performance under this Agreement, the Consultant has not taken

and  will  not  take  any  action  that  will  cause  it  to  become  required  to  make  any  filings  with  or  to  register

in  any  capacity  with  the  Securities  and  Exchange  (the  “SEC”),  the  Financial  Industry  Regulatory

Authority.  (“FINRA”)  formerly  known  as  the  National  Association  of  Securities  Dealers,  Inc.  (the

“NASD”),  the  securities  commissioner  or  department  of  state,  or  any  other  regulatory  or  governmental

body or agency.

The  Consultant  is  not  subject  to  any  sanction  or  restriction  imposed  by  the  SEC,  FINRA,  any  state

securities  commission  or  department,  or  any  other  regulatory  or  government  body  or  agency  that  would

prohibit,   limit   or   curtail   the   Consultant   execution   of   said   Agreement   or   the   performances   of   its

obligation hereunder.

8.    Non-Circumvention, Non-Disclosure and Confidentiality

This  Agreement  is  a  perpetuating  guarantee  for  three  (3)  years  from  the  date  of  execution  and  is  to  be

applied  to  any  and  all  transactions  present  and  future,  of  the  introducing  party,  including  subsequent

follow-up, repeat, extended, renegotiated, and new transactions regardless of the success of the project.

Because of this Agreement, the Parties involved in this transaction  may  learn from one another, or from

principals,  the  names  and  telephone  numbers  of  investors,  borrowers,  lenders,  agents,  brokers,  banks,

lending  corporations,  individuals  and/or  trusts,  or  buyers  and  sellers  hereinafter  called  contacts.  The

Parties  with  this  acknowledge,  accept  and  agree  that  the  identities  of  the  contacts  will  be  recognized  by

the  other  Party  as  exclusive  and  valuable  contacts  of  the  introducing  Party  and  will  remain  so  for  a

period of three (3) years.

The  Parties  agree  to  keep  confidential  the  names  of  any  contacts  introduced  or  revealed  to  the  other

party,  and  that  their  firm,  company,  associates,  corporations,  joint  ventures,  partnerships,  divisions,

subsidiaries,  employees,  agents,  heirs,  assigns,  designees,  or  consultants  will  not  contact,  deal  with,

negotiate  or  participate  in  any  transactions  with  any  of  the  contacts  without  first  entering  a  written

agreement  with  the  Party  who  provided  such  contact  unless  that  Party  gives  prior  written  permission.

Such  confidentiality  will  include  any  names,  addresses,  telephone,  telex,  facsimile  numbers,  and/or

other pertinent information disclosed or revealed to either Party, from the others.

The   Parties   agree   not   to   disclose,   reveal   or   make   use   of   any   information   during   discussion   or

observation regarding methods, concepts, ideas, product/services,  or proposed new products or services,

nor to do business with any  of the revealed contacts  without the written consent of the introducing party

or parties.

The  Parties  agree  that  due  to  the  many  variables  surrounding  each  Business  Financial  Transaction  that

will  occur  because  of  this  agreement,  the  commission  to  be  paid  and/or  the  fee  structure  between  the

Parties   can   vary.   A   separate   fee/commission   agreement   will   outline   compensation   for   each

Business/Financial  Transaction.  The  fee  or  commission  agreement  must  be  drafted  and  acknowledged

by signature before all Business/Financial Transactions.

In  case  of  circumvention,  the  Parties  agree  and  guarantee  that  they  will  pay  a  legal  monetary  penalty

that  is  equal  to  the  commission  or  fee  the  circumvented  Party  should  have  realized  in  such  transactions,

by  the  person(s)  engaged  on  the  circumvention  for  each  occurrence.  If  either  party  commences  legal

proceedings  to  interpret  or  enforce  the  terms  of  this  Agreement,  the  prevailing  Party  will  be  entitled  to

recover court costs and reasonable attorney fees.

Upon  execution  of  this  Agreement  by  signature  below,  the  Parties  agree  that  any  individual,  firm

company,   associates,   corporations,   joint   ventures,   partnerships,   divisions,   subsidiaries,   employees,

agents,  heirs,  assigns,  designees  or  consultants  of  which  the  signee  is  an  agent,  officer,  heir,  successor,

assign or designee is bound by the terms of this Agreement.

9.    Duties of the Company

The  Company  shall  supply  the  Consultant,  on  a  regular  and  timely  basis,  with  all  approved  data  and

information regarding its management, its products, and its operation. Company  shall be responsible for

advising  the  Consultant  of  any  facts  which  would  affect  the  accuracy  of  any  prior  data  and  information

previously supplied to the Consultant so that the Consultant may take corrective action.

10.  Indemnification of the Consultant by the Company

The Company shall indemnify and hold harmless The Consultant and its principals from and against any

and all liabilities and damages in connection with the Company’s ownership and operation.

11.  Indemnification of the Company by the Consultant

The Consultant shall indemnify  and hold harmless the Company  and its principals from and against any

and all liabilities and damages arising out of any  intentional breach of its representations and warranties

or agreements made hereunder or from any breach of contract with the Company’s Clients brought in by

the Consultant.

12.  Mediation

Any controversy, dispute or claim arising out of or relating to this Agreement or the breach thereof shall

be  settled  by  mediation.  Mediation  proceedings  shall  be  conducted  in  accordance  with  the  rules  then

prevailing  of  the  American  Mediation  Association  or  any  successor.  Venue  for  mediation  proceedings

shall  be  within  the  state  of  Illinois.  The  costs  of  mediation,  reasonable  attorney’s  fees  of  the  Parties,

together with all other expenses, shall be paid as provided in the rules.

13.  Attorney Fees

In  the  event  a  legal  action  is  commenced  by  a  Party  to  the  Agreement  alleging  a  default  of  the  terms  or

conditions    of    the    Agreement,    and    judgment    is    held    in    favor    of    the    non-moving    party

(respondent/defendant), the non-moving party shall be entitled to recover all costs incurred as a result of

defending  such  action  including  reasonable  attorney  fees,  expenses  and  court  costs  through  trial,  appeal

and to final disposition.

14.  Entire Understanding/Incorporation of other Documents

This Agreement requires the entire understanding of the parties with regard to the subject matter hereof;

superseding  any  and  all  prior  agreements  or  understandings,  whether  oral  or  written,  and  no  further  or

additional  agreements,  promises,  representations  or  covenants  may  be  inferred  or  constructed  to  exist

between Parties.

15.  No Amendment Except in Writing

Neither  the  Agreement  nor  any  of  its  provisions  may  be  altered  or  amended  except  in  a  dated  writing

signed by both parties.

16.  Waiver of Breach

No  waiver  of  any  breach  of  any  provision  hereof  shall  be  deemed  to  constitute  a  continuing  waiver  or  a

waiver of any other portion of the Agreement.

17.  Independent Contractor

The  Consultant  agrees  to  perform  its  consulting  duties  hereto  as  an  independent  contractor.  Nothing

contained herein shall be considered   as creating an employer-employee relationship between the parties

to  this  Agreement  and  accordingly  Consultant  will  receive  his  compensation  as  a  1099  Independent

Contractor with no taxes or Social Security withheld.

18.  Governing Law

The  Agreement  and  its  provisions  shall  be  constructed  in  accordance  with,  pursuant  to  and  governed  by

the State of Illinois.

19.  Miscellaneous

A.   Notices

Any  notice  or  other  communication  required  or  permitted  to  be  given  hereunder  shall  be  in  writing  and

shall  be  deemed  to  have  been  duly  given  when  delivered  personally  or  sent  by  registered  or  certified

mail, return receipt requested, postage prepaid to the parties hereto at their addresses first above written,

with  a  copy  to  Law  Offices  of  Victor  J.  Cacciatore,  Attn:  Joseph  P.  Cacciatore,  527  S.  Wells  Street

Chicago,  Illinois  60607,  email  jcacciatore@jos-cacciatore.com.  Either  party  may  change  his  or  its

address for the purpose of this paragraph by written notice similarly given.

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