Document:

CROSS-LICENSE
      AGREEMENT 

     

    This
      Cross-License
      Agreement (this “Agreement”)
      is
      entered into effective March __, 2008 by and between: ZAGG INCORPORATED, a
      Nevada corporation (“ZAGG”),
      POW!
      Entertainment, a _________ corporation (“POW!”),
      and
BRIGHTON
      PARTNERS, LLC.,
      a Utah
      limited liability company (“BRIGHTON”).
      ZAGG,
      POW! and BRIGHTON are hereinafter jointly referred to as “PARTIES”,
      and
      each of them, individually and indistinctly referred to as a “PARTY.”

     

    WITNESSETH:

     

    I. On
      even
      date herewith, ZAGG and BRIGHTON have entered into a Bridge Loan Agreement
      (the
“Loan
      Agreement”),
      whereby ZAGG agreed to loan BRIGHTON up to $500,000 under a Secured Promissory
      Note in exchange for 10% ownership in BRIGHTON and the entry into this Agreement
      upon the terms and conditions stated herein;

     

    II. POW!
      and
      BRIGHTON have entered into a collaborative effort to develop, finance, produce
      and distribute new characters and stories in various mediums, including but
      not
      limited to animated theatrical motion pictures, direct-to-video motion pictures,
      television motion pictures, stage play projects, internet projects, theme park
      projects, video and computer game projects, wireless and mobile projects and
      other projects, (the “Property”),
      as
      more aptly discussed in Schedule
      A
      to this
      Agreement;

     

    III. In
      connection with the development of the Property, ZAGG desires to license certain
      trademarks listed on Schedule
      B
      to this
      Agreement (the “ZAGG
      Marks”)
      to
      POW! and BRIGHTON, and POW! and BRIGHTON desire to acquire the ZAGG Marks for
      use in the development of the Property, pursuant to the terms and conditions
      set
      forth under this Agreement; and

     

    IV. POW!
      and
      BRIGHTON desire to license to ZAGG the right to use specific Property developed
      using the ZAGG Marks (the “ZAGG Property”), and ZAGG desires to acquire the ZAGG
      Property for ZAGG’s marketing and commercial use.

     

    Now,
      therefore, in consideration of the representations, warranties, and covenants
      herein contained, the PARTIES agree to enter into this Agreement, which shall
      be
      governed by the following clauses and conditions:

     

    SECTION
      1. GRANT OF LICENSES

     

    1.1. ZAGG
      grants to POW! and BRIGHTON a nonexclusive, limited, royalty free license during
      the Term to use the ZAGG Marks in connection with the development of the
      Property. POW! and BRIGHTON have no right to permit or sublicense any third
      party to use the ZAGG Marks, including, without limitation, by way of
      sub-license, and/or assignment or otherwise, unless with the prior written
      approval of ZAGG. All rights not expressly granted herein are reserved by
      ZAGG.

     

    1.2. POW!
      and
      BRIGHTON grant to ZAGG a nonexclusive, limited, royalty free, perpetual right
      to
      use the ZAGG Property in connection with its marketing of its own products
      and
      services. ZAGG has no right to permit or license any third party to use ZAGG
      Property, including, without limitation, by way of sub-license, and/or
      assignment or otherwise, unless the prior written approval of both POW! and
      BRIGHTON is obtained. All rights not expressly granted herein are reserved
      by
      POW! and BRIGHTON. For greater certainty, ZAGG is not granted any rights in
      the
      Property outside of the rights granted hereunder in connection with the ZAGG
      Property.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SECTION
      2. OWNERSHIP
      OF INTELLECTUAL PROPERTY

     

    2.1 POW!
      and
      BRIGHTON acknowledges ZAGG’s ownership and/or right to use the ZAGG Marks. POW!
      and BRIGHTON agree that they will do nothing inconsistent with such ownership
      rights. 

     

    2.2. ZAGG
      acknowledges the rights POW! and BRIGHTON have in the Property. ZAGG agrees
      that
      it will do nothing inconsistent with such rights. 

     

    SECTION
      3. 
      QUALITY MAINTENANCE

     

    3.1. POW!
      and
      BRIGHTON agree to cooperate with ZAGG to ensure that its quality standards
      are
      kept concerning use of the ZAGG Marks. ZAGG agrees that it will supply POW!
      and
      BRIGHTON with specimens of all uses of the ZAGG Marks upon request. POW! and
      BRIGHTON shall comply with all applicable laws and regulations and obtain all
      appropriate government approvals pertaining to the sale, distribution and
      advertising of goods and services covered by the license granted herein. POW!
      and BRIGHTON agree that the quality of any products sold with the ZAGG Marks
      shall be at least as good as the quality of the goods and services marketed
      by
      ZAGG and shall conform to any quality standards identified by ZAGG from time
      to
      time.

     

    3.2. ZAGG
      agrees to cooperate with POW! and BRIGHTON to ensure that their quality
      standards are kept concerning use of the ZAGG Property. POW! and BRIGHTON agree
      that they will supply ZAGG with specimens of all uses of the ZAGG Property
      upon
      request. ZAGG shall comply with all applicable laws and regulations and obtain
      all appropriate government approvals pertaining to the sale, distribution and
      advertising of goods and services covered by the license granted herein. ZAGG
      agrees that the quality of any ZAGG Products shall be at least as good as the
      quality of the goods and services marketed by POW! and BRIGHTON and shall
      conform to any quality standards identified by POW! and BRIGHTON from time
      to
      time.

     

    SECTION
      4. 
      INFRINGEMENT PROCEEDINGS

     

    4.1. POW!
      and
      BRIGHTON agree to promptly notify ZAGG of any unauthorized use of the ZAGG
      Marks
      by others as it comes to their attention. ZAGG shall have the sole right and
      discretion to bring infringement or unfair competition proceedings involving
      the
      ZAGG Marks. 

     

    4.2. ZAGG
      agrees to promptly notify POW! and BRIGHTON of any unauthorized use of the
      ZAGG
      Property by others as it comes to ZAGG’s attention. POW! and BRIGHTON shall have
      the sole right and discretion to bring infringement or unfair competition
      proceedings involving ZAGG Property.

     

    SECTION
      5. REPRESENTATIONS
      AND WARRANTIES OF ZAGG

     

    5.1. ZAGG
      grants to the POW! and BRIGHTON the following representations and
      warranties:

     

    5.1.1. Ownership.  ZAGG
      is the sole owner of or has the right to use and sublicense the ZAGG
      Marks.  The ZAGG Marks are free of any liens and are registered for the
      term of validity indicated in their respective registration certificates.
      Nothing in this Agreement shall be deemed as an obligation of ZAGG to renew
      the
      registration of any of the ZAGG Marks, which will only be renewed at ZAGG’s sole
      and exclusive discretion, and ZAGG shall not be liable to POW! and BRIGHTON
      for
      any expense, cost, or loss associated with ZAGG’s exercise of such
      discretion.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    5.1.2. Organization.  ZAGG
      is a corporation organized under the laws of the state of Nevada, with offices
      at 3855 South 500 West, Suite J, Salt Lake City, Utah 84115;

     

    5.1.3. Authorization.  ZAGG
      has the full power and necessary authority to execute and deliver this Agreement
      and to perform the obligations contained in this Agreement. ZAGG has the full
      capacity and does not depend on any additional authorization to execute this
      Agreement.

     

    5.1.4. Valid
      and Enforceable Agreement.  This
      Agreement was executed by ZAGG and is a valid and enforceable obligation of
      ZAGG.

     

    5.1.5. No
      Conflict; Consents.  The
      execution and delivery of this Agreement by ZAGG and the completion of the
      operations described herein do not: (i) breach or conflict with any
      organizational or corporate document of ZAGG, or with any corporate resolution
      of its respective shareholders, or any agreement, contract, commitment,
      obligation, understanding, arrangement or restriction of any kind to which
      ZAGG
      is a party or is subject to, or by which its respective assets or properties
      are
      bound; (ii) to the actual knowledge of ZAGG, breach or conflict with any law,
      decision or sentence issued by any governmental authority, applicable to ZAGG
      or
      to its respective assets or properties; and (iii) to the actual knowledge of
      ZAGG, require any consent, approval or authorization of, any person or any
      governmental authority or any registration before them.

     

    SECTION
      6. REPRESENTATIONS
      AND WARRANTIES OF POW! AND BRIGHTON

     

    6.1.
      POW!
      and BRIGHTON grant to ZAGG the following representations and
      warranties:

     

    6.1.1. Ownership.  POW!
      and BRIGHTON are sole owners of or have the right to use and sublicense the
      ZAGG
      Property.  The ZAGG Property is free of any liens. Nothing in this
      Agreement shall be deemed as an obligation of POW! and BRIGHTON to register
      ZAGG
      Property, and POW! and BRIGHTON shall not be liable to ZAGG for any expense,
      cost, or loss associated with their exercise of such discretion.

     

    6.1.2. Organization.  BRIGHTON
      is a Utah limited liability company, with offices at 3540 East Bengal Boulevard,
      Salt Lake, UT 84121. POW! is a _____________, with offices at 9460 South Santa
      Monica Boulevard, Suite 620, Beverly Hills, CA 90210.

     

    6.1.3. Authorization.  Each
      company has the full power and necessary authority to execute and deliver this
      Agreement and to perform the obligations contained in this Agreement. Each
      company has the full capacity and does not depend on any additional
      authorization to execute this Agreement.

     

    6.1.4. Valid
      and Enforceable Agreement.  This
      Agreement was executed by the POW! and BRIGHTON and is a valid and enforceable
      obligation each company.

     

    6.1.5. No
      Conflict; Consents.  The
      execution and delivery of this Agreement by POW! and BRIGHTON and the completion
      of the operations described herein do not: (i) breach or conflict with any
      organizational or corporate document of either company, or with any corporate
      resolution of either’s respective shareholders, or any agreement, contract,
      commitment, obligation, understanding, arrangement or restriction of any kind
      to
      which either company is a party or is subject to, or by which its respective
      assets or properties are bound; (ii) to the actual knowledge of POW! and
      BRIGHTON, breach or conflict with any law, decision or sentence issued by any
      governmental authority, applicable to either company or to its respective assets
      or properties; and (iii) to the actual knowledge of POW! and BRIGHTON, require
      any consent, approval or authorization of, any person or any governmental
      Authority or any registration before them.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    SECTION
      7. TERM

     

    7.1. This
      Agreement shall be effective upon execution (the “Effective
      Date”)
      and
      shall continue for the term the collaborative agreements exists between POW!
      and
      BRIGHTON to develop the Products (the “Term”)
      unless
      sooner terminated in accordance with Sections 8 and 9.

     

    SECTION
      8. TERMINATION
      FOR CAUSE

     

    8.1. Any
      PARTY
      may terminate this Agreement and the licenses granted herein if: (i) the other
      PARTY breaches any term or condition of this Agreement and fails to cure such
      breach within ten (10) days after receipt of written notice of the same; or
      (ii)
      the other PARTY becomes bankrupt, or is the subject of proceedings for
      liquidation or dissolution, or ceases to carry on business or becomes unable
      to
      pay its debts as they come due or upon the winding-up sale, consolidation,
      merger or any sequestration by governmental authority of the other PARTY.

     

    SECTION
      9. EFFECT
      OF TERMINATION

     

    9.1. Upon
      termination of this Agreement, POW! and BRIGHTON agree to immediately
      discontinue all use of the ZAGG Marks and any term confusingly similar thereto,
      and to destroy all printed materials bearing any of the ZAGG Marks, and that
      all
      rights in the ZAGG Marks and the goodwill connected therewith, whether existing
      on the date hereof or created thereafter by any means, shall remain the property
      of ZAGG.

     

    9.2. Upon
      termination of this Agreement, ZAGG agrees to immediately discontinue all use
      of
      the ZAGG Property, and to destroy all printed materials bearing the ZAGG
      Property, and that all rights in the ZAGG Property and the goodwill connected
      therewith, whether existing on the date hereof or created thereafter by any
      means, shall remain the property of POW! and BRIGHTON.

     

    SECTION
      10. INJUNCTION
      RELIEF

     

    10.1. Each
      PARTY acknowledges that any breach of the respective PARTY’s obligations under
      this Agreement concerning use of the ZAGG Marks or ZAGG Property may cause
      the
      other PARTY irreparable harm not compensable with money damages, and that in
      the
      event of such breach, the other PARTY shall be entitled to seek injunctive
      relief, without bond, from any court of competent jurisdiction.

     

    SECTION
      11. 
      ASSIGNMENT

     

    11.1. Neither
      PARTY shall assign or transfer its rights, duties or obligations under this
      Agreement, whether by contract, operation of law, merger, reorganization,
      liquidation, dissolution or sale of assets, without the prior written consent
      of
      the other PARTY. Any purported assignment or transfer of this Agreement without
      the prior written consent of the other PARTY shall be null and
      void.

     

    SECTION
      12. THIRD
      PARTY BENEFICIARIES

     

    12.1. Except
      as
      expressly provided herein, this Agreement is entered into solely between, and
      may be enforced only by POW!, BRIGHTON and ZAGG. This Agreement shall not be
      deemed to create any rights or causes of action in or on behalf of any third
      parties, including without limitation, employees, suppliers and customers of
      a
      PARTY, or to create any obligations of a PARTY to any such third
      parties.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    SECTION
      13. SEVERABILITY

     

    13.1. If
      any
      provision of this Agreement is held invalid or otherwise unenforceable, the
      enforceability of the remaining provisions shall not be impaired thereby and
      the
      illegal provision will be replaced with a legal provision that encapsulates
      to
      the extent permitted by applicable law the original intent of the
      PARTIES.

     

    SECTION
      14. HEADINGS

     

    14.1. The
      headings contained in this Agreement are for reference only and shall not be
      deemed to be a part of this Agreement or to affect the meaning or interpretation
      hereof.

     

    SECTION
      15. INDEPENDENT
      CONTRACTOR

     

    15.1. The
      relationship of the PARTIES under this Agreement shall not constitute a
      partnership or joint venture. Neither PARTY is an agent of the other PARTY
      and
      neither PARTY has right, power or authority, expressly or impliedly, to
      represent or bind the other PARTY.

     

    SECTION
      16. BINDING
      EFFECT

     

    16.1. This
      Agreement is binding between the PARTIES and shall inure to the benefit of
      the
      PARTIES and their respective successors and authorized assignees.

     

    SECTION
      17. GOVERNING
      LAW AND JURISDICTION

     

    17.1. This
      Agreement shall be construed according to and governed by the laws of the State
      of Nevada.

     

    SECTION
      18. 
      AMENDMENT

     

    18.1. Amendments
      to this Agreement and the other contracts contemplated herein may be made only
      by a written agreement signed by duly authorized representatives of each of
      the
      PARTIES.

     

    SECTION
      19. COUNTERPARTS

     

    19.1. This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      an original, and such counterparts together shall constitute one and the same
      instrument. Execution may be effected by delivery of facsimiles of signature
      pages, which shall be deemed originals in all respects.

     

    [The
      remaining portion of this page intentionally blank.]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
      WITNESSWHEREOF, the parties hereto have duly executed and delivered this
Cross-License
      Agreement as of the Effective Date.

    

      
        	 	
                POWI
                  Entertainment.

              
	 	
                 
                   

              	 
	 	
                By: 

              	
                 

              
	 	
                 

              	
                Name:
                  Gill Champion 

              
	 	 	
                Title:
                  President/COO

              
	 	 	 
	 	
                BRIGHTON
                  PARTNERS, LLC.

              
	 	
                 
                   

              	 
	 	
                 
                   

              	 
	 	
                By:
                   

              	 
	 	
                 

              	
                Name:
                  Cord Beatty

              
	 	
                 

              	
                Title:
                  Managing Partners

              
	 	 	 

      

    

    

      
        	 	
                ZAGG
                  INCORPORATED 

              
	 	
                 

              	
                 
                   

              
	 	
                 

              	
                 
                   

              
	 	
                By:
                   

              	 
	 	
                 

              	
                Name:
                  Robert G. Pedersen II

              
	 	
                 

              	
                Title:
                  CEO

              
	 	 	 

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
      A 

    TO
      THE CROSS-LICENSE AGREEMENT 

     

    The
      Property

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SCHEDULE
      B 

    TO
      THE CROSS-LICENSE
      AGREEMENT 

     

    ZAGG
      Marks

     

    
      	
              Trademark

            	
               

            	
              Country
                of 

              Registration

            	
                    

            	
              Application

               No./REG.
                NO

            	
               

            	
              Owner

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	 	
               

            	
              USA

            	
               

            	 	
               

            	
              Zagg
                Incorporated

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	 	
               

            	
              USA

            	
               

            	 	
               

            	
              Zagg
                Incorporated

            
	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            	
               

            
	 	
               

            	
              USA

            	
               

            	 	
               

            	
              Zagg
                IncorporatedOPTION
      AGREEMENT 

     

    THIS
      AGREEMENT is dated as of the 11th
      day of
      March, 2008 between Cord Beatty and Roger Lund (hereinafter called the
“Sellers”) and Zagg, Inc. (hereinafter together called the “Buyer”)

     

    WHEREAS,
      the Sellers are desirous of granting an option to the Buyer; 

     

    WHEREAS,
      the Sellers are the owners of Brighton Partners, L.L.C.; 

     

    WHEREAS,
      the Buyer is desirous to obtain an option to purchase the Shares as described
      below from the Sellers; 

     

    IN
      CONSIDERATION of the representations, warranties, covenants and agreements
      set
      forth in this Agreement and other good and valuable consideration, the receipt
      and sufficiency of which is hereby acknowledged, the parties hereto agree as
      follows: 

     

    
      	1.1	
              Option

            

    

     

    The
      Sellers grant to Buyer an option (the “Option”) to purchase 10% of the equity
      (including all outstanding member units) of Brighton Partners, L.L.C. (the
      “Shares”). 

     

    
      	1.2	
              Term
                and Exercise

            

    

     

    Unless
      the Option is sooner terminated pursuant to paragraph 1.3 below, at any time
      after the repayment of the promissory note by and between Buyer and Brighton
      Partners of even date, Buyer may exercise the Option at any time to purchase
      the
      Shares at the price of $10. The Buyer shall, in turn, give Sellers written
      notice of its intention to exercise the Option. 

     

    
      	1.3	
              Termination

            

    

     

    The
      Option and all rights hereunder shall immediately terminate on June 30, 2008.
      

     

    [signature
      page follows]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      
        	
                SELLERS

              
	 
	
                By:

              	
                 

                
                  

                

              	
              
	
                R.
                  Cord Beatty

              
	 
	
                By:

              	
                 

                
                  

                

              	
              
	
                Roger
                  Lund

              
	 
	
                BUYER

              
	 
	
                ZAGG,
                  INC.

              
	 
	
                By:

              	
                 

                
                  

                

              	
              
	
                Its:

              	
                 

                
                  

                

              	
              

      

    

     

    
      
         

      

      
        2

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