Document:

20-F/A

Exhibit 4.8  

Master ASIC Services
Agreement
For 

EZChip Technologies
Ltd. 

April 29, 2004 

	
 

	
 

	
 

	
eSilicon Corporation

	
Business Confidential – Master ASIC Services Agreement

	
1/20

	
 

	
 

	
 

        This
Master ASIC Services Agreement (“Agreement”), dated _________________,
(the “Effective Date”), is entered into by and between eSilicon
Corporation, a Delaware corporation with offices at 501 Macara Avenue, Sunnyvale,
California 94085-2808 (“eSilicon”), and EZchip Technologies Ltd., an
Israeli company with offices at 1 Hatamar Street, Yokneam, Israel
(“Customer”). eSilicon and Customer are referred to herein individually
as a “Party” and collectively as the “Parties.” 

RECITALS 

        WHEREAS,
eSiliconTM provides various ASIC services, including but not limited to,
design, fabrication, packaging and testing. 

        WHEREAS,
Customer desires to engage eSilicon from time to time pursuant to one or more Proposals to
perform services of different kinds related to ASICs, and eSilicon is interested in
accepting such engagements, subject to the Parties’ further agreement on the scope
and terms of each such Proposal. 

        WHEREAS,
Customer and eSilicon mutually desire to set forth in this Agreement certain terms
applicable to all such engagements. 

        NOW,
THEREFORE, eSilicon and Customer hereby agree as follows: 

SECTION 1:   DEFINITIONS 

    1.1         "Agreement"
shall have the meaning set forth in the Preamble hereto.  

    1.2       “Affiliate” shall
mean, with respect to the Customer, an entity (i) which is directly or indirectly
controlling the Customer, (ii) which is under the same direct or indirect ownership or
control as the Customer; or (iii) which is directly or indirectly owned or controlled by
the Customer; and which is designated by the Customer to procure eSilicon products and/or
services on its behalf and who has become a Party to this Agreement by delivering to
eSilicon a duly executed copy of this Agreement.  

    1.3        “Approved
Agent” shall mean any entity listed in a Proposal, which will be providing the
Agent Component (as defined below) identified opposite such Approved Agent’s name in
the Proposal.  

    1.4        “Agent
Component” shall mean the technology, product or service to be provided by an
Approved Agent, as shall be more fully set forth opposite such Approved Agent’s name
in the Proposal.  

    1.5        “Background
Technology” shall mean, for a particular Party, any and all designs, methods,
processes, formulas, algorithms, discoveries, inventions, technical information,
drawings, modifications, enhancements, improvements and other technologies (collectively,
“Inventions”) that are owned by such Party as of the Effective Date or
provided by such Party following the Effective Date, and which eSilicon uses to perform
the Services under this Agreement, and/or which are embodied in the Deliverables or
Products provided by eSilicon under this Agreement.  

    1.6        “Business
Day” shall mean any week day between Monday and Friday, which is not a holiday
in Israel or in the United States of America and on which the United States Postal Office
in the United States is not required by governmental regulation to remain closed.  

    1.7        "Change
Documents" shall have the meaning set forth in Section 2.3 hereof.  

    1.8        "Change
Order" shall have the meaning set forth in Section 2.3 hereof.  

	
 

	
 

	
 

	
eSilicon Corporation

	
Business Confidential – Master ASIC Services Agreement

	
2/20

	
 

	
 

	
 

    1.9        "Change
Request" shall mean Customer's written request for a change to the terms of a current
Proposal.  

    1.10        “Change
Response” shall mean eSilicon’s written response to a Change Request, which
response will identify any new or revised terms of performance resulting from the Change
Request, including, without limitation, adjustments to fees and payment schedules,
revised delivery schedules, and recovery of costs of any materials and resources rendered
excess or obsolete as a result of the Change Request.  

    1.11        “Confidential
Information” shall have the meaning set forth in the Mutual Non-Disclosure
Agreement and, for purposes of this Agreement, such definition shall be deemed to include
(a) the Parties’ respective Background Technology and Inventions, the Customer
Deliverables and the Deliverables, and (b) the terms and conditions of this Agreement and
any of its parts or attachments.  

    1.12        "Customer"
shall have the meaning set forth in the Preamble hereto, and shall include any Affiliate.  

    1.13        “Customer
Deliverables” shall mean the deliverables and other materials specified in a
Proposal to be delivered to eSilicon by Customer under the terms of this Agreement and on
the date specified in the Proposal, including, without limitation, Specifications, design
database and test data. For the avoidance of doubt, the Agent Components shall not be
deemed Customer Deliverables.  

    1.14       “Deliverables” shall
refer to the Non-Recurring Expense (NRE) deliverables and other work product specified in
a Proposal to be developed by or on behalf of eSilicon under the terms of this Agreement
and the Proposals.  

    1.15        "Effective
Date" shall have the meaning set forth in the Preamble hereto.  

    1.16        “End
of Life” shall occur upon the termination of (a) any continuous [*] month
period starting from the Effective Date during which Customer fails to submit an Order,
or (b) the manufacturing process that corresponds to a Customer’s Product, whichever
occurs earlier.  

    1.17        “End
of Life Order” shall have the meaning set forth in Section 3.8, provided,
however, that such End of Life Order: (a) shall relieve eSilicon from the obligation to
accept any subsequent Orders; and (b) is in full lot increments as appropriate to the
applicable foundry.  

    1.18        “eSilicon
Partners” shall mean those entities identified in a Proposal that eSilicon may
use to provide some or all of the Services.  

    1.19        "Forecast"
shall have the meaning set forth in Section 3.5 hereof.  

    1.20        "Indemnified
Party" shall have the meaning set forth in Section 10.1 hereof.  

    1.21        "Indemnifying
Party" shall have the meaning set forth in Section 10.1 hereof.  

*     This portion of the Exhibit has
been omitted pursuant to a Request for Confidential Treatment under Rule 24b-2 of the
Securities Exchange Act of 1934. The complete Exhibit, including the portions for which
confidential treatment has been requested, has been filed separately with the Securities
and Exchange Commission. 

	
 

	
 

	
 

	
eSilicon Corporation

	
Business Confidential – Master ASIC Services Agreement

	
3/20

	
 

	
 

	
 

    1.22        "Initial
Term" shall have the meaning set forth in Section 9.1 hereof.  

    1.23        “Intellectual
Property Rights” shall mean patent rights (including those arising under patent
applications and disclosures), rights of priority, copyright rights, moral rights, mask
work rights, trade secret rights, know-how rights, and any other intellectual property or
proprietary rights recognized in any country or jurisdiction in the world, now or
hereafter existing, and whether or not filed, perfected or recorded.  

    1.24        "Inventions"
shall have the meaning set forth in Section 1.3 hereof.  

    1.25        “Minimum
Order Quantity” shall mean, for any specific foundry, the product quantity that
must be ordered in order to meet such foundry’s lot size or minimum assembly build
quantity.  

    1.26        "Mutual
Non-Disclosure Agreement" shall mean that Mutual Non-Disclosure Agreement by and
between eSilicon and Customer dated as of _____________________.  

    1.27        “Order”shall
mean a purchase order submitted to eSilicon by written or electronic transmission by the
Customer or an Affiliate for Products and Services specified in the Proposal or for
additional Services offered during the Term.  

    1.28        "Party"
and "Parties" shall have the meanings set forth in the Preamble hereto.  

    1.29       “Products” shall
mean packaged and tested (in accordance with the provisions set forth in the Proposal)
production quality ASICs specified in a Proposal, which will be manufactured by or on
behalf of eSilicon under the terms of this Agreement.  

    1.30       “Proposal” shall
mean a document prepared by eSilicon in consultation with Customer and executed by the
Parties specifying, among other things, the Services to be provided by or on behalf of
eSilicon on a particular project, the Deliverables from such Services, and the
development schedule for such Deliverables, pursuant to the terms of this Agreement.  

    1.31        “Risk
Buy Order” shall mean an Order to manufacture production quantities of Product
not yet fully released through the eSilicon qualification process.  

    1.32       “Services” shall
mean the services specified in a Proposal which will be performed by or on behalf of
eSilicon under the terms of this Agreement.  

    1.33       “Specifications” shall
mean the technical specifications for Deliverables or Products specified in a Proposal,
including, without limitation, design, quality and reliability requirements, in
sufficient detail to permit eSilicon to perform the Services.  

    1.34        "Term"
shall have the meaning set forth in Section 9.1 hereof.  

    1.35        "Termination"
shall have the meaning set forth in Section 9.1 hereof.  

    1.36        "XPressChip"
shall mean a prototyping engagement using multi-project wafer technology.  

	
 

	
 

	
 

	
eSilicon Corporation

	
Business Confidential – Master ASIC Services Agreement

	
4/20

	
 

	
 

	
 

SECTION 2:   PERFORMANCE
OF SERVICES 

    2.1       Services
and Deliverables. From time to time, Customer may request or eSilicon may
propose work to be performed by eSilicon for the benefit of Customer. In response or as
its proposal, eSilicon will create a proposal for Customer approval. The manner and means
used by eSilicon to perform the Services desired by the Customer are in the sole
discretion and control of eSilicon, unless otherwise mutually agreed in the applicable
Proposal. The Parties recognize that scheduled performance dates are partially dependent
on matters which are not within eSilicon’s reasonable control. However, eSilicon
will use commercially reasonable efforts to furnish the Services and develop and deliver
the Deliverables within the Proposal schedule. eSilicon shall promptly inform the
Customer in writing of any anticipated delays in the performance of the Services or the
delivery of any Deliverable.  

    2.2       Proposals.
Upon execution of a proposal by Customer and eSilicon, such Proposal shall be attached as
an exhibit hereto and shall constitute the Parties’ contractual obligations of that
specific project. In the event that the terms and conditions of a Proposal conflict with
the terms and conditions of this Agreement, the terms and conditions of the Proposal will
govern and control with respect to the conflicting terms.  

    2.3       Amending
Proposals. If Customer desires to implement a change to a Proposal, Customer will
submit in writing to eSilicon a Change Request Form (see Exhibit A), to which
eSilicon will provide a Change Response within ten (10) Business Days following receipt
of the Change Request. Customer will, within ten (10) Business Days after receipt of the
Change Response (or such other term as shall be mutually agreed in writing by the
Parties), furnish eSilicon with a Change Order, or the Change Request will be deemed to
have been withdrawn. If the Change Request is not withdrawn, eSilicon will, as soon as
reasonably practicable after receipt of the Change Order, commence performance of the
Change Order. The Change Request, Change Response and Change Order for each change
(collectively, the “Change Documents”) will be deemed incorporated into
and made a part of the applicable Proposal. In the event of a discrepancy between the
Change Documents and any other part of this Agreement or applicable Proposal executed
prior to such Change Documents, the terms of the Change Documents will govern. In no
event will any Proposal be amended, enhanced or otherwise modified except as set forth
above.  

    2.4       General
Obligations of Customer. Customer agrees to, in a timely manner: (a) furnish eSilicon
with such assistance, cooperation and information as reasonably requested by eSilicon;
(b) review Deliverables submitted by eSilicon hereunder; and (c) provide those Customer
Deliverables and personnel required by the Proposal at no charge and ensure that all
personnel are qualified for the tasks assigned to them and that all Customer Deliverables
are of good quality, are in good operating condition and are suitable for eSilicon’s
performance of Services. eSilicon will be entitled to rely on the completeness and
accuracy of all information provided by Customer in performing the Services. Customer is
responsible for the maintenance of all Customer Deliverables and for the accuracy and the
results produced by such resources.  

    2.5       Personnel
and Nonexclusive Arrangement. eSilicon will determine the assignment of its
personnel for the performance of Services and may in its sole judgment subcontract any of
the Services to eSilicon Partners, provided that eSilicon shall at all times remain
responsible for any work performed by the eSilicon Partners. No person performing
Services on behalf of eSilicon will be restricted or prevented from performing services
that are similar to such Services for any third party. Nothing in this Agreement will
restrict eSilicon from performing work for others during the Term whether or not such
work is similar to Services performed for Customer. eSilicon is an independent contractor
and not an employee or agent of Customer and neither Party will have authority to bind or
obligate the other Party in any manner whatsoever.  

	
 

	
 

	
 

	
eSilicon Corporation

	
Business Confidential – Master ASIC Services Agreement

	
5/20

	
 

	
 

	
 

    2.6       eSilicon
Financial Condition. During the Term of this Agreement, eSilicon will provide to
Customer a copy of its quarterly income statement and balance sheet within thirty (30)
days after the close of each calendar quarter.  

SECTION 3:   ORDERS AND
FORECASTS 

    3.1       Order
Placement; Authorized Agent. Customer may purchase Services and Products by
issuing an Order that references the applicable Proposal, states the Service or Product,
and includes unit price, unit quantities, requested shipping dates, selected courier and
shipping instructions. Customer Order quantities must be in increments matching the
estimated chips generated per wafer lot, which amount is a function of dies per wafer and
manufacturing yields. In the event of any conflict between the provisions of an Order:
(a) and the terms of this Agreement, the terms of this Agreement shall govern and be
controlling with respect to the conflicting terms; and (b) and the terms of the
applicable Proposal, the terms of the applicable Proposal shall govern and be controlling
with respect to the conflicting terms. Customer may procure Products and/or Services from
eSilicon directly, or through an Affiliate.  

    3.2       Acceptance
of Purchase Order. eSilicon shall accept an Order in writing within five (5) Business
Days after receipt of an Order, and will seek to provide scheduled shipping dates for
accepted Orders within that time. Notwithstanding the above, in the event that an Order
deviates from the Forecast (as defined below) and eSilicon, using reasonable commercial
efforts, is unable to comply with such Order, then eSilicon may reject the portion of the
Order which deviates from the Forecast, provided that written notice is delivered to the
Customer within five (5) Business Days after receipt of an Order. Without derogating from
the above, Orders are invalid until accepted by eSilicon in writing.  

    3.3       Risk
Buy Order. Risk Buy Orders must be submitted to eSilicon with a signed Risk Buy
form provided by eSilicon. Delivery commitments for a Risk Buy Order are conditional upon
the qualification date and may be adjusted by eSilicon, as required. Notwithstanding the
provisions of Section 5.4 hereof, for a Risk Buy Order, the Customer accepts all
responsibility for the performance of the Product, waives all rights to reschedule or
cancel the purchase Order, and waives the right to return defective units, unless for a
defect in workmanship.  

    3.4       eSilicon
Access. For an Order of $100,000 or more for a specific Product and related Services,
Customer will be granted five (5) eSilicon Access user accounts to view information
specific to that Order, valid for a one (1) year period. Each subsequent Order of
$100,000 placed by the same Customer for the same Product and related Services will
extend the existing five (5) user accounts by one (1) year from the date that subsequent
Order is accepted.  

    3.5       Forecasts.
Within thirty (30) days after the receipt by the Customer of the first sample of the
Product, Customer shall provide eSilicon with an initial nine (9) month non-binding,
written forecast of its anticipated Product Orders (the “Forecast”).
Each month thereafter and until Termination, the Customer shall provide a rolling nine
(9) month Forecast for each Product due pursuant to a Proposal.  

    3.6       Rescheduling
Production Order. eSilicon shall use commercially reasonable efforts to accommodate
Customer’s reasonable requests to reschedule shipments, subject to the following
limitations. If a reschedule request is received: (a) within 30 days of scheduled
delivery, then no rescheduling is permitted; (b) between 30 and 80 days of scheduled
delivery, then 20% of the order may be rescheduled and may not be delayed for more than
15 days; (c) more than 80 days before scheduled delivery, then 100% of the Order may be
rescheduled for no more than 90 days. The Customer shall reimburse eSilicon for all costs
incurred by eSilicon in connection with shipment rescheduling, against delivery to the
Customer of a detailed invoice. Orders rescheduled and subsequently cancelled shall incur
cancellation charges with respect to the initial schedule dates. Reschedule requests are
limited to one (1) per Order.  

	
 

	
 

	
 

	
eSilicon Corporation

	
Business Confidential – Master ASIC Services Agreement

	
6/20

	
 

	
 

	
 

    3.7       Canceling
Purchase Order; Fees. After acceptance by eSilicon of an Order, Customer may notify
eSilicon in writing of any cancellation, termination, suspension or hold of any Order, in
whole or in part, subject to the payment of the applicable cancellation fee as follows.  

        (a) Service
Order. Upon receipt by eSilicon of a Customer notice to cancel an           Order for
Services, eSilicon will invoice Customer for all out-of-pocket           material and
labor expenditures incurred up to and including the date of the           cancellation
notice. Labor expenditure is calculated by multiplying the total           hours worked
by each relevant employee by such employee’s fully burdened           billing rate.  

        (b)
          Product Order. Upon receipt by eSilicon of a Customer notice to cancel an
          Order for Product: (i) before wafer start, the cancellation fee is $0; (ii)
          after wafer start but prior to start of assembly, eSilicon will invoice
Customer           for 70% of the total Order purchase price; (iii) after start of
assembly,           eSilicon will invoice Customer for 100% of the total Order purchase
price;           provided, however, that in all cases of Product Order cancellation,
Customer           will be invoiced for all out-of-pocket material and labor expenditures
incurred           up to and including the date of cancellation, including, but not
limited to,           unrecouped labor expenditures incurred in connection with designing
and           developing such Product.  

        (c)
XPressChip Order. Upon receipt by eSilicon of a Customer notice to cancel an
          XPressChip Order: (i) more than two weeks before the start date of the
          XPressChip wafer run, the cancellation fee is $0; (ii) less than two weeks
          before the start date of the XPressChip wafer run, eSilicon will invoice
          Customer for 100% of the total Order purchase price.  

        (d)
          Cancellation Fees Independent. Any amount invoiced pursuant to this Section
          3.7 shall be independent of any other payments due to eSilicon and shall not in
          any event be credited towards or offset any other payments, fees, or amounts
          owing to eSilicon for any reason.  

    3.8       End
of Life Order. At the End of Life, Customer (a) shall have [*] Business Days
to provide an End of Life Order and (b) shall purchase from eSilicon all good material
from the final build lot and all materials ordered by eSilicon to support Minimum Order
Quantity.  

    3.9        Direct
Purchase Right upon Triggering Event; Cancellation of Orders; Return on Investment.  

        (a)
          Upon the occurrence of a Triggering Event (as defined below), the Customer
shall           have the right (the “Direct Purchase Right”) to purchase
          components, products or services directly from the eSilicon Partners, all upon
          the terms and conditions more fully set forth in the Direct Purchase Letter
(the           “Direct Purchase Letter”) attached hereto as Schedule
          3.9(a). The Direct Purchase Letter shall be executed by the
          Parties hereto and acknowledged by each of the eSilicon Partners, on or prior
to           the Effective Date.  

*     This portion of the Exhibit has
been omitted pursuant to a Request for Confidential Treatment under Rule 24b-2 of the
Securities Exchange Act of 1934. The complete Exhibit, including the portions for which
confidential treatment has been requested, has been filed separately with the Securities
and Exchange Commission. 

	
 

	
 

	
 

	
eSilicon Corporation

	
Business Confidential – Master ASIC Services Agreement

	
7/20

	
 

	
 

	
 

For purposes of this Agreement,
“Triggering Event” shall be deemed to have occurred if (i) eSilicon
commences liquidation proceedings, voluntarily files a petition of bankruptcy, or seeks
any other similar relief under any bankruptcy law or related statutes, (ii) eSilicon is
either unable or unwilling to fulfill its obligations pursuant to the provisions of this
Agreement (including the attached Proposals) for a period exceeding thirty (30) Business
Days, provided that the Customer provides eSilicon with written notice informing eSilicon
that such obligation was not fulfilled and eSilicon does not fulfill its obligation within
fifteen (15) Business Days following the receipt of such notice from the Customer, (iii)
the Parties anticipate a delay of more than forty-five (45) Business Days in the delivery
of any Deliverable or Products and the Customer reasonably determines that such delay can
be cured by the exercise of the Direct Purchase Right, (iv) repeated delays, more than one
(1) week beyond the normal lead time times of eSilicon Partners, in delivery of any
Deliverable or Product occur, or (v) Products or Deliverable are repeatedly found to be
non-conforming or otherwise defective. 

        (b)
          Upon exercise of the Direct Purchase Right, all outstanding Orders for which
          eSilicon has not started wafers shall be cancelled without any liability to the
          Customer. For all Orders for which eSilicon has started wafers, Customer must
          take delivery per the terms of the Order provided that eSilicon can deliver the
          Product within one hundred (100) days of the “Triggering Event.”          Customer
has no liability for any Product that is not delivered on or before the           one
hundredth (100th) day.  

	
 

	
 

	
 

	
eSilicon Corporation

	
Business Confidential – Master ASIC Services Agreement

	
8/20

	
 

	
 

	
 

SECTION 4:   PRODUCT
DELIVERY, ACCEPTANCE AND PAYMENT 

    4.1       Delivery.
eSilicon shall use commercially reasonable efforts to ensure that Products are shipped on
the scheduled shipment date as specified in the applicable accepted Order. Any shipment
of products before the scheduled delivery date shall require Customer’s prior
written consent. eSilicon may ship partial line items with an Order provided that
eSilicon notifies Customer prior to shipment. Due to lot-to-lot yield variations,
Customer orders will be considered complete at +/- 10% of the order quantity. Delivery of
Products shall be [*], eSilicon’s designated shipping point and continue on
to the Customer per its designated carrier. Customer shall receive good and marketable
title to the Products at the time of delivery to their designated Carrier. Customer shall
be responsible for, and assume all risk of loss and/or damage to the Products, from any
cause, upon leaving eSilicon’s designated shipping point.  

    4.2       Acceptance
of Shipment. Items will be deemed “delivered” when delivered to Customer’s
selected freight carrier. Customer’s right to return defective Products will be
covered by the warranty provisions set forth in Section 5.  

    4.3       Payment
Terms. The fees for Services and Products will be set forth in the applicable
Proposal. eSilicon will invoice Customer: (a) for Services as set forth in the applicable
Proposal; (b) for Products upon delivery of Product to eSilicon’s designated
shipping point; (c) notwithstanding the foregoing subsection (b), for Risk Buy Orders
upon acceptance by eSilicon of such Risk Buy Order; and (d) for cancellation fees upon
receipt of a Customer cancellation notice. In each case, payment is due net [*] days
from the date of the invoice. Customer will pay the full amount stated in the invoice
under the terms of the applicable Proposal in United States dollars by wire transfer to
eSilicon’s designated bank account. Payments made by Customer after their due date
shall incur interest at the lower of [*]% per month or the highest rate
permitted by applicable law. In addition, eSilicon shall have the right to withhold
Products or Deliverables when payments are past due.  

    4.4       Taxes.
The Customer shall be obligated to pay all sales, use and other taxes due on any payments
made by Customer to eSilicon under this Agreement, except for taxes based on eSilicon’s
net income.  

    4.5        Compliance
with Law. 

In furnishing the Products and other
Deliverables hereunder, eSilicon agrees to comply (and ensure compliance by the eSilicon
Partners) with all applicable laws, rules, regulations and executive orders in connection
with its activities under this Agreement (including, but not limited to, environmental
laws and regulations). Without limitation to the foregoing, eSilicon represents and
warrants that in all respects, the manufacture and sale of the Products and the Delivery
of any other Deliverables comply and will throughout the term of this Agreement comply
with all applicable laws, regulations and other regulatory requirements. 

SECTION 5:   REPRESENTATIONS AND WARRANTIES 

    5.1       Customer
Representations and Warranties. Customer represents and warrants to eSilicon that:
(a) Customer has not previously granted or assigned and will not grant or assign any
rights in the Customer Deliverables, Customer’s Background Technology or Customer’s
Product to any third party in a manner that is
inconsistent with the rights granted or assigned herein to eSilicon; (b) Customer has
sufficient rights to grant and assign to eSilicon the rights set forth in this Agreement;
and (c) Customer has full corporate power to enter into this Agreement, to carry out its
obligations hereunder, and to grant and assign the rights herein granted or assigned to
eSilicon. 

*     This portion of the Exhibit has
been omitted pursuant to a Request for Confidential Treatment under Rule 24b-2 of the
Securities Exchange Act of 1934. The complete Exhibit, including the portions for which
confidential treatment has been requested, has been filed separately with the Securities
and Exchange Commission. 

	
 

	
 

	
 

	
eSilicon Corporation

	
Business Confidential – Master ASIC Services Agreement

	
9/20

	
 

	
 

	
 

    5.2       eSilicon
Representations and Warranties. eSilicon represents and warrants to Customer that:
(a) eSilicon has not previously granted or assigned and will not grant or assign any
rights in eSilicon’s Background Technology to any third party in a manner that is
inconsistent with the rights granted or assigned herein to Customer; (b) eSilicon has
sufficient rights to grant to Customer the rights set forth in this Agreement; and (c)
eSilicon has full corporate power to enter into this Agreement, to carry out its
obligations hereunder, and to grant the rights herein granted to Customer.  

    5.3       Limited
Services Warranty. eSilicon warrants that Services will be performed in a good and
workmanlike manner, consistent with generally accepted industry standards. As Customer’s
sole and exclusive remedy, and eSilicon’s entire liability for any breach of the
foregoing warranty, eSilicon will, at its sole expense, re-perform any Services that fail
to meet this limited warranty or refund to Customer the fees paid for the non-conforming
Services.  

    5.4       Limited
Product Warranty. Subject to Section 3.3, eSilicon warrants to Customer, for
[*] from the date the Products are delivered to the carrier, that such Product will be
free from defects in material and workmanship, and will substantially conform to the
applicable Specifications agreed upon by the Parties based on the production test program
(approved by the Customer in advance and more fully set forth in the Proposal) applied by
eSilicon for use in Product testing. eSilicon’s sole and exclusive obligation under
the Product Warranty is, at eSilicon’s sole option, (a) replace the affected
Product, (b) repair the affected Product or (c) promptly refund the purchase price for
the affected Product; provided, however, that any replaced Product will be warranted for
(i) the unexpired portion of the warranty applicable to the original Product plus the
period from the delivery of non-conformance notice to eSilicon and until return of the
Product to the Customer following the warranty repair, or (ii) [*] days,
whichever is longer. Should eSilicon elect to repair or replace Product, it shall use
reasonable commercial efforts to do so within X Business Days following the receipt of
written notice of non-conformance from the Customer.  

Without derogating from the above,
eSilicon’s aggregate cumulative liability to Customer arising out of or related to
this Agreement shall not exceed the total amount actually paid by Customer to eSilicon
under the applicable Proposal. 

    5.5       Agent
Components. The Customer shall deliver or ensure delivery to eSilicon of the Agent
Components required for the purpose of performing the Services and delivering the
Deliverables and the Products, in the manner more fully set forth in each Proposal.  

Promptly upon receipt of the Agent
Component, eSilicon shall test such component in accordance with the provisions more fully
set forth in the Proposal. If, at any time during the Term of this Agreement, the Agent
Components shall be found to be non-conforming, eSilicon shall promptly inform the
Customer and shall work together with the Customer and the applicable Approved Agent in
order to solve any problems in a timely manner. For the avoidance of doubt, neither the
Customer nor eSilicon shall be deemed liable for non-conformity of the Agent Components. 

*     This portion of the Exhibit has
been omitted pursuant to a Request for Confidential Treatment under Rule 24b-2 of the
Securities Exchange Act of 1934. The complete Exhibit, including the portions for which
confidential treatment has been requested, has been filed separately with the Securities
and Exchange Commission. 

	
 

	
 

	
 

	
eSilicon Corporation

	
Business Confidential – Master ASIC Services Agreement

	
10/20

	
 

	
 

	
 

Each of the Customer and eSilicon
shall be responsible for any costs and expenses incurred by it in connection with the
activities described in this Section 5.5. 

    5.6       Exclusions. The
warranty shall only apply to Customer and does not cover damage to Products due to
external causes, including but not limited to, accident, abuse, misuse, neglect,
mishandling, improper testing, use of contrary industry practices, or any damage caused
by equipment not supplied by eSilicon. eSilicon makes no representation or warranty that
the performance or operation of any Deliverables will be error-free or that all errors
can be corrected or circumvented.  

    5.7       No
Other Warranties. THE WARRANTIES SET FORTH IN SECTION 5 ARE THE SOLE AND EXCLUSIVE
WARRANTIES MADE BY ESILICON FOR SERVICES AND PRODUCTS HEREUNDER AND ESILICON DISCLAIMS
ALL OTHER WARRANTIES, WHETHER EXPRESSED OR IMPLIED, INCLUDING BUT NOT LIMITED TO, ANY
IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND
NON-INFRINGEMENT.  

SECTION 6:   LICENSE
RIGHTS 

    6.1       License
Grant by Customer. Subject to the terms and conditions of this Agreement, Customer
hereby grants to eSilicon and eSilicon Partners a worldwide, nonexclusive, fully-paid,
royalty-free license (sub-licensable only during the Term and only to eSilicon Partners,
solely for the purpose of performing the Services pursuant to the Proposal) under Customer’s
Intellectual Property Rights in Customer’s Background Technology, Customer
Deliverables and any Inventions made by Customer during the Term, together with any other
Confidential Information of Customer delivered to eSilicon and the Agent Components,
solely for the purpose of designing, developing, manufacturing and have manufactured the
Deliverables and Products and performing the Services during the Term of this Agreement.  

    6.2       License
Grant by eSilicon. Subject to the terms and conditions of this Agreement, eSilicon
hereby grants to Customer a worldwide, nonexclusive, royalty-free license (without the
right to sublicense other than to Affiliates) under eSilicon’s Intellectual Property
Rights in eSilicon’s Background Technology and any Inventions made by eSilicon
during the Term, together with any other Confidential Information of eSilicon delivered
to Customer, to (i) use, copy and modify the Deliverables, only in connection with the
Services; and (ii) market, sell, and distribute (directly or indirectly) the Products or
any other Deliverable (to the extent applicable).  

    6.3       Right
to Sublicense Third Party Technology. Without derogating from the provisions of
Section 5.5 above, the Customer shall obtain for eSilicon the right to use, for the
purpose of performing the Services, preparing the Deliverables and manufacturing the
Products, such third party information, materials and technology, (the “Third
Party Technology”) identified in the Proposal. Customer represents that to the
extent it provides any Third Party Technology to eSilicon, it shall have obtained all
necessary permissions, licenses, consents and has the authority and right to do so.
Should the Customer and eSilicon agree in the Proposal that eSilicon shall be responsible
for obtaining a license to any Third Party Technology, then eSilicon shall be required to
obtain all such permissions, licenses and consents. Any such license of Third Party
Technology shall be subject to one or more sublicense agreements which must include the
other Party as a third party beneficiary.  

License Restrictions.
Each Party’s rights in the other Party’s Background Technology, Inventions
and Confidential Information will be limited to those expressly granted under this
Agreement. Each Party reserves all rights in its respective Background Technology and
Confidential Information not expressly granted to the other Party. To the extent a
Deliverable includes computer software, neither Customer nor a third party acting on
Customer’s behalf will modify, decompile, reverse engineer, disassemble or otherwise
reduce all or any part of such software to human-readable form unless eSilicon provided it
to Customer in human-readable form. 

	
 

	
 

	
 

	
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SECTION 7:   INTELLECTUAL
PROPERTY 

    7.1       Existing
Property. Subject to the limited license rights granted by the Parties under Sections
6.1 and 6.2, each Party shall retain all rights, title and interest in and to such Party’s
Background Technology, Inventions and Confidential Information, and all Intellectual
Property Rights therein. The Customer shall also retain all rights, title and interest in
the Agent Component, the Deliverables and the Products.  

    7.2       New
Innovations; Individual Property. Customer shall own all rights, title and interest
in and to all Intellectual Property Rights in any Inventions that are conceived during
the performance of the Services described in any Proposal other than Innovations based
solely on eSilicon Background Technology.  

SECTION 8:   CONFIDENTIALITY 

    8.1       Incorporation
by Reference. The terms and conditions of the Mutual Non-Disclosure Agreement are
incorporated herein by reference and shall become part of this Agreement. In the event of
any conflict between the provisions thereof and hereof, the terms hereof shall govern and
be controlling with respect to the conflicting terms.  

    8.2       Use
and Disclosure Restrictions. Notwithstanding the provisions of the Mutual
Non-Disclosure Agreement, each Party shall refrain from using the other Party’s
Confidential Information except as permitted therein, and from disclosing such
Confidential Information to any third party except by the Customer to its Affiliates or
by eSilicon to eSilicon Partners, employees and consultants as is reasonably required on
an absolute need to know basis and only in connection with the exercise of its rights and
obligations under this Agreement (and only subject to binding use and disclosure
restrictions at least as protective as those set forth in the Mutual Non-Disclosure
Agreement and executed in writing by such employees and consultants).  

    8.3       Duration.Notwithstanding
the provisions of the Mutual Non-Disclosure Agreement, the Parties’obligations under
such agreement shall remain in effect during the Term and for a period of five (5) years
following Termination.  

SECTION 9:   TERM AND
TERMINATION 

    9.1       Term. This
Agreement will commence on the Effective Date and continue in full force and effect for a
period of three (3) years thereafter (the “Initial Term”), unless
terminated earlier in accordance with the terms of this Agreement (“Termination”).
Notwithstanding the above, the Customer may terminate this Agreement in accordance with
Section 9.2 below or in either of the following two (2) circumstances: (a) upon the
occurrence of a Triggering Event described in Section 3.9 or (b) after Customer has
purchased [*] units of Products, by providing eSilicon with fifteen (15) days’ prior
written notice. At the end of the Initial Term and each renewal term thereafter (together
with the Initial Term, the “Term”),
this Agreement will automatically renew for a one (1) year period unless either Party
provides the other Party with written notice of non-renewal at least ninety (90) days
prior to the date of any such automatic renewal. 

*     This portion of the Exhibit has
been omitted pursuant to a Request for Confidential Treatment under Rule 24b-2 of the
Securities Exchange Act of 1934. The complete Exhibit, including the portions for which
confidential treatment has been requested, has been filed separately with the Securities
and Exchange Commission. 

	
 

	
 

	
 

	
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Should the Customer terminate this
Agreement prior to the date on which the Customer or any of its Affiliates orders any
units of the Product, then such termination shall be subject to the payment in full of the
Investment Amount to eSilicon. However, should the Customer terminate this Agreement
following the date on which the Customer or any of its Affiliates have already ordered at
least [*] units of the Product, eSilicon shall not receive any portion of the
Investment Amount, and in the event that the number of units of the Product ordered by the
Customer and its Affiliates is lower than [*], then the termination of this
Agreement shall be subject to the payment to eSilicon of the pro rata portion of the
Investment Amount. 

    9.2       Termination
for Cause. A Party shall have the right to terminate this Agreement if the other
Party breaches any material term or condition of this Agreement and fails to cure such
breach within thirty (30) days after receipt of written notice of such breach.
Termination of this Agreement by either Party will be a non-exclusive remedy for breach
and will be without prejudice to any other right or remedy of such Party. Without
derogating from the generality of the foregoing, it is hereby clarified that any use of
Confidential Information or Background Technology other than in accordance with the
provisions of the Mutual Non-Disclosure Agreement or the provisions of this Agreement
shall be deemed a material breach of this Agreement.  

    9.3       Termination;
Confidential Information. Within thirty (30) days of Termination, the Parties will
return or destroy all copies of any Confidential Information provided hereunder in such
Party’s possession or control and, upon request, will furnish to such other Party an
affidavit or declaration signed by an officer of such Party certifying that such delivery
or destruction has been fully effected.  

    9.4       Termination;
Pending Orders. Upon, and only upon Termination due to (i) the Customer’s
non-payment or repeated delays in payments due to eSilicon, or (ii) subject to Section
10.3 below, infringement of Intellectual Property Rights of third parties by the Customer’s
Confidential Information or Background Technology provided to by the Customer hereunder,
eSilicon will cease to be responsible for completing any pending Services under any
Proposals or Orders. Notwithstanding the foregoing, eSilicon will wind up its work in a
commercially reasonable manner and preserve and deliver to Customer all Deliverables and
Products in their then-current state of completion as of the effective date of
Termination. Customer will pay all fees and expenses related to eSilicon’s completed
work, work-in-process, and winding-up activities within fifteen (15) days after the date
of eSilicon’s invoice therefore.  

    9.5       Termination;
Title To Mask Sets, Assembly, and Test Tooling. Upon the occurrence of a Triggering
Event as described in Section 3.9 or a termination of this Agreement by Customer pursuant
to Section 9.1 after the Customer has purchased [*] units of Products, all
eSilicon’s right, title, and interest in the mask sets, assembly and test tooling
that are used by eSilicon’s Partners solely to make Products for Customer shall be
transferred to Customer.  

    9.6       Damages.
Neither Party will be liable to the other for damages of any type solely as a result of
terminating this Agreement in accordance with its terms.  

*     This portion of the Exhibit has
been omitted pursuant to a Request for Confidential Treatment under Rule 24b-2 of the
Securities Exchange Act of 1934. The complete Exhibit, including the portions for which
confidential treatment has been requested, has been filed separately with the Securities
and Exchange Commission. 

	
 

	
 

	
 

	
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    9.7       Survival.
The Parties’ rights and obligations under Sections 4.3, 4.4, 5, 6, 7, 8, 9.2, 9.3,
9.4, 9.5, 9.6, 9.7, 10, 11, and 12 will survive Termination.  

SECTION 10:   INDEMNIFICATION 

    10.1       Indemnification
Obligation. The Customer, on the one hand, and eSilicon, on the other hand (each, an
“Indemnifying Party,” as the case may be), shall defend, indemnify and
hold harmless eSilicon or eSilicon Partners, on the one hand, and the Customer or its
Affiliates, on the other hand (each, an “Indemnified Party”, as the case
may be) from and against any and all claims, demands, causes of action and any
liabilities, damages (excluding consequential or indirect damages), losses, costs and
expenses arising therefrom, (including but not limited to reasonable fees of attorneys
and other professionals) arising from: (a) in the case where the Indemnified Party is
eSilicon, (i) any third party claim that the Customer Deliverables, Customer’s
Background Technology or Customer’s Product, in whole or in part, infringe any
patent or copyrights or incorporate any misappropriated trade secrets of any third party,
or (ii) any sale or distribution of Products to third parties; and (b) in the case where
the Indemnified Party is Customer, any third party claim that eSilicon’s Background
Technology as embodied in a Deliverable or Product, in whole or in part, infringes any
patent or copyright or incorporates any misappropriated trade secrets of any third party.  

    10.2       Indemnity
Conditions. In the event of any such claim, the Indemnified Party shall: (i) promptly
notify in writing Indemnifying Party of the claim; (ii) provide Indemnifying Party with
all reasonable information and assistance, at Indemnifying Party’s expense, to
defend or settle such a claim; and (iii) grant Indemnifying Party authority and control
of the defense or settlement of such claim. Indemnifying Party shall not settle any such
claim, without Indemnified Party’s prior written consent, if such settlement would
alter, impair or reduce the scope of Indemnified Party’s rights under this Agreement
or in its Intellectual Property Rights or Background Technology. Indemnified Party
reserves the right to retain counsel, at Indemnified Party’s expense, to participate
in the defense and settlement of any such claim.  

    10.3       Injunctions;
Termination. In the event that any of the rights granted to the Indemnified Party
under this Agreement are exercised and consequently enjoined or, in the Indemnifying Party’s
reasonable opinion, are likely to be enjoined due to the type of infringement or
misappropriation specified in Section 10.1, the Indemnifying Party may at its expense and
without prejudice to the rights and remedies of Indemnified Party: (i) procure for
Indemnified Party a license to continue to exercise all of the rights granted under this
Agreement with respect to the Indemnifying Party’s Deliverables, Background
Technology and Product; or (ii) modify the allegedly infringing item to avoid the
infringement or misappropriation, without materially impairing the performance or
compliance with the Specifications. If the remedies set forth in subsections (i) and (ii)
of this section 10.3 fail despite the Indemnifying Party’s reasonable efforts, then
the Indemnified Party may terminate this Agreement upon thirty (30) days prior written
notice to the Indemnifying Party.  

    10.4       Exclusions.
The Indemnifying Party shall have no liability for any infringement or misappropriation
claim to the extent it results from: (i) modifications of the Indemnifying Party’s
Background Technology or Product not expressly authorized herein or in the applicable
Proposal other than by the Indemnifying Party or a party authorized by the Indemnifying
Party, if such a claim would have been avoided but for such modification; (ii) any
material deviation from the Specifications, if any to the extent prepared or provided by
the Indemnified Party, (iii) a combination of the Indemnifying Party’s Deliverables,
Background Technology or Product with materials, products or systems not provided by
Indemnifying Party, if such a claim would have been avoided but for such combination; or
(iii) Indemnified Party’s failure to use modifications to the Indemnifying Party’s
Deliverables, Background Technology or Product provided by Indemnifying Party to avoid
infringement or misappropriation.  

	
 

	
 

	
 

	
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    10.5       Sole
Remedy. The provisions of Section 10 represent each Party’s sole and exclusive
obligation and sole and exclusive remedy for any claim of infringement or
misappropriation of third party Intellectual Property Rights.  

SECTION 11:   LIMITATION
OF LIABILITY 

    11.1       Total
Liability. eSilicon’s total liability to Customer, from all causes of action and
all theories of liability, will be limited to and will not exceed the aggregate amounts
paid to eSilicon by Customer under the Proposal giving rise to any liability hereunder.  

    11.2       Limitations
and Exclusions. Liability for damages will be limited and excluded as set forth in
this Section 11, even if any exclusive remedy provided for in this Agreement fails of its
essential purpose. Neither Party will be liable to the other Party or to any third party
for any special, incidental or consequential damages (including loss of use, data,
business or profits) arising out of or in connection with this Agreement or the Services,
whether such liability arises from any claim based upon contract, warranty, tort
(including negligence), product liability or otherwise, and whether or not a Party has
been advised of the possibility of such loss or damage. In no event will eSilicon be
liable (a) to Customer for any direct or indirect damages owed to third parties relating
to any deliverables or services not provided by eSilicon or (b) for any damages relating
to or resulting from the use of deliverables used for aviation, medical, nuclear or ultra
hazardous purposes.  

SECTION 12:   GOVERNANCE 

    12.1       Compliance
With Law. Both Parties will comply in all material respects with all laws and
regulations applicable to its activities under this Agreement. Without limiting the
foregoing, both Parties will: (a) comply with all United States Department of Commerce
and other United States export control laws and regulations with respect to the subject
matter hereof; and (b) not produce or distribute any software, products, or technical
data in any country where such production or distribution would be unlawful.  

    12.2       Governing
Law and Venue. This Agreement will be governed by and construed in accordance with
the substantive laws of the United States and the State of California, without regard to
or application of provisions relating to conflicts of law, and expressly excluding the
United Nations Convention on Contracts for the International Sale of Goods. Any
litigation arising under this Agreement will be brought exclusively in the federal courts
of the Northern District of California or any state courts therein, and the Parties
hereby consent to the personal jurisdiction and venue of such courts.  

    12.3       Attorneys’Fees.
Each Party agrees that in any action to enforce this Agreement the prevailing Party will
be entitled to reasonable attorneys’ fees and other costs incurred therein, in
addition to any other appropriate relief.  

    12.4       Waiver
and Modification. Failure by either Party to enforce any provision of this Agreement
will not be deemed a waiver of future enforcement of that or any other provision. Any
waiver, amendment or other modification of any provision of this Agreement will be
effective only if in writing and signed by the Parties.  

	
 

	
 

	
 

	
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    12.5       Severability.
If, for any reason, a court of competent jurisdiction finds any provision of this
Agreement to be unenforceable, that provision of the Agreement will be enforced to the
maximum extent permissible to affect the intent of the Parties, and the remainder of this
Agreement will continue in full force and effect.  

    12.6       Notices.
All notices required or permitted under this Agreement will be in writing and delivered
by confirmed facsimile transmission, by courier or overnight delivery service, or by
certified mail, and in each instance will be deemed given upon receipt. All
communications will be sent to the addresses set forth as follows or to such other
address as may be specified by either Party to the other in accordance with this Section
12.6. If to eSilicon: eSilicon Corporation, 501 Macara Avenue, Sunnyvale, CA 94085-2808.
If to Customer: 1 Hatamar Street, Yokneam 20692, Israel.  

    12.7       Assignment.
Neither party may assign its rights or delegate its obligations under this Agreement, in
whole or in part, without the other Party’s prior written consent, which will not be
unreasonably withheld, delayed or conditioned. Any attempted assignment or delegation by
a Party, without such consent, will be void. Subject to the foregoing, the rights and
obligations of the Parties will bind and inure to the benefit of the Parties’respective
successors and permitted assigns.  

    12.8       Force
Majeure. Except for payment obligations, neither Party will be deemed in default of
this Agreement to the extent that performance of its obligations is delayed or prevented
by reason of fire, natural disaster, accident, act of government, shortages of material
or supplies or any other cause beyond the reasonable control of such Party, provided that
such Party gives the other Party written notice thereof promptly and, in any event,
within fifteen (15) days of discovery thereof and uses its reasonable commercial efforts
to so perform or cure.  

    12.9       Entire
Agreement. This Agreement, including all exhibits and appendices attached
hereto and any Proposals and accepted Orders, constitutes the entire agreement between
the Parties with respect to the subject matter hereof, and supersedes and replaces all
prior and contemporaneous understandings, communications or agreements, written or oral,
regarding such subject matter. This Agreement may be executed in one or more
counterparts, each of which will constitute an original, but taken together will
constitute one and the same instrument.  

	
 

	
 

	
 

	
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        IN
WITNESS WHEREOF, the duly authorized representatives of eSilicon, Customer and Authorized
Agent have executed this Agreement as of the Effective Date. 

		eSilicon Corporation

——————————————

By:
Name:
Title:	Customer:

——————————————

By:
Name:
Title:

		 	Authorized Agent:

——————————————

By:
Name:
Title:

The signing of this service
agreement by EZchip technologies Ltd., is contingent upon the receipt of a “Direct
Purchase Letter” signed by TSMC, as described in section 3.9 to this service
agreement 

	
 

	
 

	
 

	
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APPENDICES –
Exhibits & Forms 

EXHIBITS  

Exhibits 1 through n –
<SmartCOT or Netlist> Handoff Proposal for <Customer> <ProjectName> 

	
 

	
 

	
 

	
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CHANGE REQUEST FORM

	
 

	
 

	

	Engineering Change Order (ECO) Form

ECO#:                          

The terms and conditions applicable to this ECO will be those of the
signed <Customer><Project> project (“Proposal”) dated <Month,
Date, Year> and those of the Master ASIC Services Agreement (MSA) dated <Month,
Date, Year> by and between eSilicon Corporation and <Customer>. This
ECO is hereby incorporated into the above referenced Proposal.

Customer
or Program Manager to complete Sections I & II.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
  SECTION I: CUSTOMER
INFORMATION 

	 

	
Initiator:

	
 

	
 

	
 

	
 

	
 

	
Date:

	
 

	
 

	
 

	
 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
Product Number:

	
 

	
 

	
 

	
 

	
 

	
Proposal
  No.:

	
 

	
 

	
 

	
 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
Project/Product
  Name:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
Customer
  Name:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
Address:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
City:

	
 

	
 

	
 

	
State:

	
 

	
 

	
 

	
Zip Code:

	
 

	
 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
Country:

	
 

	
 

	
 

	
Phone
  No:

	
 

	
 

	
 

	
Fax
  No:

	
 

	
 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
SECTION II: CHANGE
  REQUEST

	 

	
  List the Summary of the Change Request:

	 

	
  1)
 
  

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
  2)
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
  3)
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	 

	
  Describe Special Constraints or Conditions Related to Change Request:

	
 

	

 
 

	
  Supporting Documentation Attached?     o Yes  o No

	 

	
  If
  Yes, please list:

Please submit completed form to the eSilicon
Program Manager.
Fax
408.991.9580

	
 

	
 

	
 

	 

	
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Engineering Change Order (ECO) Form

 

If Change Request approved by Program
Manager, eSilicon to complete Sections III and IV.

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
SECTION III:
  CHANGE ORDER PROPOSAL

	
eSilicon Proposed Change Response:

	
1)

	
 

	
2)

	
 

	
3)

	
 

	
SECTION
  IV:  CHANGE IMPACT SUMMARY

	
Delivery Date: ______

	
Price: _____

	
Special Notes:

	
                                 SECTION V:  CUSTOMER APPROVALS (To Proceed)
	
o YES      o NO

	
Title

	
Print Name

	
Signature

	
Date

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
                          SECTION
  VI:  CUSTOMER APPROVALS (Deliverables)
	
o YES      o NO

	
Title

	
Print Name

	
Signature

	
Date

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
SECTION
  VII:  ESILICON CHANGE BOARD APPROVALS

	
 

	
Signature

	
Date

	
 

	
Signature

	
Date

	
Program Management:

	
 

	
 

	
Supply Chain:

	
 

	
 

	
Engineering:

	
 

	
 

	
QA & Reliability:

	
 

	
 

	
Sales:

	
 

	
 

	
Controller:

	
 

	
 

	
Change Board Decision:

	
o APPROVED     o NOT APPROVED

	
Reason
  for not approving the change:

Submit completed ECO package to Document
Control for archiving.

	
 

	
 

	
 

	
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20/20ex10-1.htm

    Exhibit
10.1

     

    LIMITED
ASSET PURCHASE AGREEMENT

     

    BETWEEN
VEMICS, INC. AND CLEARLOBBY, INC.

     

    AGREEMENT
made and entered into as of 11th day of September 2008, by and between
ClearLobby, Inc., a Delaware corporation, with its principal place of business
at 60 Silver Lane, Holliston, MA 01746, (''Seller'') and Vemics, Inc., a Nevada
corporation, with its principal place of business at 523 Avalon Gardens, Nanuet,
NY 10954, (''Buyer'').

     

    W I T N E
S S E T H

     

    Whereas
Seller desires to sell certain of its assets, including certain trademarks,
computer software and know-how related thereto, in accordance with the terms and
conditions of this Agreement; and

     

    Whereas
Buyer desires to purchase such assets in accordance with the terms and
provisions hereof.

     

    Now,
therefore, in consideration of the premises and of the mutual promises herein
contained, the parties agree as follows;

     

    
      	
              1.  

            	
              Sale
      and Purchase of Assets

            

    

     

    1.1 Transfer of
assets.  Subject to the terms and provisions hereof, Buyer, in
reliance upon Seller's warranties and representations herein made, shall
purchase and acquire from Seller, and Seller shall sell, transfer and convey to
Buyer, with the exceptions set forth herein and in the schedules annexed hereto,
all of the assets, properties and rights of Seller, of every type and
description, whether tangible or intangible, including but not limited to the
following:

     

    (a) All
designs, drawings, procedures (including design, manufacturing, test and
maintenance procedures), specifications, software (other than as described in
Subparagraph (b) hereof), printed circuit board art work, integrated circuit
masks, test equipment, tools, fixtures, documentation, training materials, and
information, in whatever form, related to, useful, utilizable or necessary in
the design, manufacture, test and/or maintenance of the website  known
as the Clearlobby Website; the foregoing being more specifically defined and
described in the Schedule of Computer Technology, Schedule A, attached hereto
and made a part hereof (hereinafter collectively referred to as ''Computer
Technology'').

     

    (b) All
software (including object and source code, in machine readable and listing
form), documentation (including internal documentation, documentation made
available to customers and training materials), flowcharts, source code notes,
software tools, compilers, test routines and information, in whatever form, and
all revisions, release levels and versions of the foregoing, used on or with the
Computer Technology, offered for sale or license by Seller, developed by or for
Seller, or in the possession of Seller; the foregoing being more specifically
defined and described in the Schedule of Software, Schedule B, attached hereto
and made a part hereof (hereinafter collectively referred to as
''Software'').

     

    (c) All
patents, patent applications, copyrights, trade secrets, trademarks, trade
names, and other proprietary rights based, in whole or in part, or included in
or covering the Computer Technology, Software or any portion thereof; the
foregoing being more specifically defined and described in the Schedule of
Proprietary Rights, Schedule C, attached hereto and made a part hereof
(hereinafter collectively referred to as ''Proprietary Rights'').

     

    (d) All
inventories of Computer Technology, Software, or any portions thereof; the
foregoing being more specifically defined and described in the Schedule of
Inventories, Schedule D, attached hereto and made a part hereof (hereinafter
collectively referred to as ''Inventories'').

     

    (e) All
rights of Seller under sales agreements, franchises, license agreements, lease
agreements, maintenance agreements, procurement agreements, consultant
agreement, employee agreements, invention agreements and all other agreements of
whatever nature or kind relating to Computer Technology, Software or Proprietary
Rights specifically defined and described in the Schedule of Contract Rights,
Schedule E, attached hereto and made a part hereof (hereinafter collectively
referred to as ''Contract Rights'').

     

    (f) All
rights of Seller in the domain name and url http://www.clearlobby.com being more
specifically defined and described in the Schedule of Inventories, Schedule D,
attached hereto and made a part hereof.

     

    All
assets of Seller to be transferred to the Buyer pursuant hereto, including the
Computer Technology, Software, Proprietary Rights, Inventories and Contract
Rights, are sometimes hereinafter collectively referred to as ''Seller's
Assets.''

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    1.2 Excluded assets.The following
shall be excluded from Seller's Assets being sold and transferred to Buyer
hereunder:

     

    (a)
Seller's cash on hand and bank deposits at the time of Closing.

     

    (b) All
accounts receivable, refundable income taxes, prepaid interest, investments in
marketable securities, loans and exchanges; and loans
receivable.

     

    (c) All
stock or securities, in whatever form, of Seller.

     

    (d) All
liabilities or obligations of Seller, in existence at the time of Closing as
well as anytime after the closing, including, accounts payable, but excluding
the obligations expressly included in Contract Rights.

     

    (e) All
leases for land and/or buildings.

     

    1.3 Encumbrances.  The
sale and transfer of Seller's Assets shall, at the time of Closing, be free and
clear of all obligations, security interests, liens, infringements and
encumbrances whatsoever..

     

    1.4 Purchase price .Subject to
the provisions of Paragraph 1.5 and the Promissory Note attached hereto as
Schedule G, the purchase price for the sale and transfer of Seller's Assets to
Buyer is the sum of $250,000.00.  The purchase price shall be payable
as follows:

     

    (a) At
the time of Closing, by wire transfer to Seller's account at Citizen’s Bank
$10,000.00.  Wire transfer and account information shall be provided
by the Seller to the Buyer at Closing.

     

    (b) The
remaining $240,000.00 of the purchase price shall disbursed by Buyer to Seller
in accordance with the terms of the Promissory Note dated September 11, 2008 and
attached hereto as Schedule F.

     

    (d) Sean
Hanlon and Gregory Englehardt shall each be issued 10,000 shares of SEC 144
restricted stock in Buyers Company.

     

    1.5 Closing.  The
completion of the contemplated transactions is herein designated as the Closing,
which shall take place on the 9th
day of September, 2008, or such later date as may be mutually agreed upon by the
parties.

     

    1.6
Intentionally
Omitted.

     

    1.7 Access and information
..Seller shall give to Buyer, Buyer's accountants, technical personnel,
counsel and other representatives access, during normal business hours, from the
date hereof to Closing, to Computer Technology, Software, Inventories, books,
records, contracts and commitments of Seller (including Contract Rights) and
shall furnish Buyer, during such period, with information concerning Seller's
Assets as Buyer may reasonably request.  Such information shall be
subject to the provisions of Paragraph 8.15.

     

    1.8 Conduct of business .Seller
warrants and represents to and covenants and agrees with Buyer that, pending
completion of the Closing, unless otherwise agreed in writing by
Buyer:

     

    (a)
Seller shall not sell, license, contract, commit or otherwise encumber Seller's
Assets, other than in the ordinary course of business.

     

    (b)
Seller shall carry and continue in force and effect through the Closing, such
fire and extended coverage insurance on the Inventories as is in existence of
the date of this Agreement.

     

    (c)
Seller shall not amend, modify or terminate any agreement to which it is a party
and which in any way relates to Seller's Assets, without the prior written
consent of Buyer.

     

    (d) There
will be no increase in any compensation payable or to become payable by Seller
to any employee, agent or consultant.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2. Warranties and Representations of
Seller

     

    Seller
warrants and represents to Buyer as follows:

     

    2.1 Corporate
organization.  Seller is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware and is
duly qualified to do business in the Commonwealth of Massachusetts and has full
power and authority to carry on its current business and to own, use and sell
its assets, including Seller's Assets, and properties.

     

    2.2 Corporate authority.The
execution and delivery of this Agreement to Buyer and the carrying out of the
provisions hereof have been duly authorized by the Board of Directors of Seller
and authorized by Seller's shareholders, and at Closing, Seller shall furnish
Buyer copies of the authorizing resolutions of Seller's Board of Directors and
its shareholders.

     

    2.3 Labor issues.  To
the best of Seller's knowledge and belief, no strike, picketing or similar
action is pending or threatened against Seller by its employees or any labor
union.  To the best of its knowledge and belief, Seller is not engaged
in any unfair labor practices in connection with the operation of the business
of Seller relating to Seller's Assets.  Seller will not be responsible
for any violations arising or determined subsequent to Closing that have been
caused by any act of Buyer or any failure to act by Buyer.  Seller
represents and warrants that it has not had any solicitation by any labor
organization within the preceding three years.

     

    2.4 Non-infringement.  The
Computer Technology, Software, Proprietary Rights, and Inventories, in whole or
in part, do not infringe, to the best of Seller’s knowledge, any patents,
copyrights, trade secrets, trademarks or other proprietary rights of any third
parties and no rights or licenses are required from third parties to exercise
any rights with respect to Seller's Assets or any portion thereof.

     

    2.5 Proprietary
rights.  The Proprietary Rights are in full force and effect
and there are no liens, claims, proceedings or causes of actions that in any way
affect the validity or enforceability of such Proprietary
Rights.  Except for licenses granted in the ordinary course of
business to purchasers/licensees of Seller's products, no rights or licenses,
express or implied, have been granted to any third parties under Proprietary
Rights or any portion thereof

     

     2.6
Contracts, licenses, permits
and approvals.

     

    (a)
Seller has no presently existing contracts or commitments extending beyond the
execution date hereof that in any way relate to Seller's Assets that are not
included in the Schedule of Contract Rights, Schedule E hereto.

     

    (b)
Seller does not have any obligation under any collective bargaining agreement or
any other contract with a labor union.  Except to the extent set forth
in the Schedule of Contract Rights, Schedule E hereto, Seller is not a party to
any executive or employee compensation plan or agreement or compensatory plan or
agreement with any independent contractors, or employees or agents of Seller,
including, without limitation, any pension, retirement, profit sharing, stock
purchase, stock option, bonus or savings plan.  Seller agrees to pay
or allow as a credit to Buyer any vacation or sick pay accrued to Seller's
employees at Closing.

     

    (c)
Seller agrees to inform Buyer of any changes in status of the Paragraph 2.6
representations.

     

    2.7 Compliance.  Neither
the execution and delivery of this Agreement, nor any instrument or agreement to
be delivered by Seller to Buyer at the Closing pursuant to this Agreement, nor
the compliance with the terms and provisions thereof by Seller, will result in
the breach of any applicable statute or regulation promulgated thereunder, or
any administrative or court order or decree, nor will such compliance conflict
with, or result in the breach of, any of the terms, conditions or provisions of
the Certificate of Incorporation or bylaws of Seller, as amended, or any
agreement or other instrument to which Seller is a party, or by which Seller is
or may be bound, or constitute an event of default or default thereunder, or
with the lapse of time or the giving of notice or both constitute an event of
default thereunder.

     

    2.8 Fitness of
Assets.  The Assets as of the date hereof consist, and at
Closing will consist of items of a quality and quantity usable or salable in the
ordinary course of business of Seller and are currently used by Seller in the
ordinary course of business.

     

    2.9Litigation. There is no suit
or action, or legal, administrative, arbitration or other proceeding or
governmental investigation affecting Seller's Assets pending, or to the best
knowledge and belief of Seller, threatened against Seller that materially or
adversely affects the business of Seller relating to Seller's Assets or Seller's
Assets.  Seller further warrants and represents that there is no
outstanding judgment, decree or order against Seller that affects Seller or
Seller's Assets in any way.

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2.10
Effect of
Agreement.  The terms and conditions of this Agreement and all
other instruments and agreements to be delivered by Seller to Buyer pursuant to
the terms and conditions of this Agreement are valid, binding and enforceable
against Seller in accordance with their terms, subject only to the applicable
bankruptcy, moratorium and other laws generally affecting the rights and
remedies of creditors.

     

    2.11
Good
title.  Seller has and shall transfer to Buyer at Closing good
and marketable title to Seller's Assets, free and clear of any and all security
interests, encumbrances or liens.

     

    2.12
Representations and
warranties.  No representation or warranty by Seller in this
Agreement or any documents provided hereunder contains or will contain any
untrue statement or omissions or will omit to state any material fact necessary
to make the statements contained herein or therein not
misleading.  All representations and warranties made by Seller in this
Agreement and any documents provided hereunder shall be true and correct as of
the date of Closing with the same force and effect as if they had been made on
and as of such date.

     

    2.13
Due
performance.  Seller has in all material respects performed all
obligations required to be performed by it hereunder, and is not in default in
any material respect hereunder, or in violation in any material respect of its
Certificate of Incorporation or bylaws, as amended, or any agreement, lease,
mortgage, note, bond, indenture, license or other documents or undertaking, oral
or written, to which it is a party or by which it is bound, or by which it or
any of its properties or assets may be materially affected. Seller is not in
violation or default in any material respect of any order, regulation,
injunction or decree of any court, administrative agency or governmental
body.  The execution and delivery of this Agreement, and the
consummation of the transactions contemplated hereby will not result in any of
the violations or defaults referred to in this paragraph.

     

    2.14
Subsidiaries.  Seller
does not have any subsidiaries nor does it have any interest in any business
enterprise not disclosed herein relating to or competing with Seller's Assets or
any portion thereof.

     

    2.15
Computer
technology.  Schedule A, Computer Technology, is a complete
listing of all items used and required by Seller to design, manufacture, test,
market and support the computer system known as the Clearlobby
website.

     

    2.16
Software.  Schedule
B, Software, is a complete schedule of all software marketed by Seller for use
on or with the Computer Technology, there are no known errors, malfunctions
and/or defects in the Software; there is no known unauthorized use of the
Software or any portion thereof by any third party; and there is no known users
of the software other than the parties hereto.

     

    2.17
Rights of Seller in Computer
Technology and Software.  Computer Technology and Software have
been created solely by and / or for Seller who is under a contractual obligation
to assign all right, title and interest therein to Buyer the terms and
conditions set forth in this agreement.

     

    2.18
Date and Time Compliance of
Computer Technology and Software.  Seller represents and
warrants that the computer technology and software does and shall operate in a
well-defined, correct and predictable manner when using any date or time, and
does and shall not cause material errors related to any date or
time.  Seller shall not be responsible for any computer technology or
software malfunctions or errors that occur subsequent to the Closing if the
Buyer has made material changes to the technology purchased under this
Agreement.  Notwithstanding any provisions of this Agreement to the
contrary, Section 2.19 shall survive the Closing for a period of twelve (12)
months.

     

    2.19
Non-Competition.  Seller
hereby agrees not to compete directly or indirectly with the business of Buyer
or any of its affiliates, within the United States of America for a period of
Two ("2") Years following the effective date of this Agreement.  As
used herein "not to compete" shall mean that Seller shall not own, manage,
operate, advise, consult, invest in, be engaged in or otherwise assist a
business substantially similar to, or competitive with, the business of Buyer as
of the date of this Agreement.  For purposes of this Section, Seller
shall include all officers, directors and employees of Seller’s
Corporation.  In addition, for purposes of this Agreement, the
“Business” of Buyer shall be that which is conducted by the iMedicor division of
Buyer, specifically: (i) physician to physician file sharing; (ii) continuing
medical education; (iii) educational programs for the healthcare industry; and
(iv) online pharmaceutical industry to physician sales and marketing
interactions.

    

    2.20
Non-Solicitation of Clients
and Customers.  Seller hereby agrees that following the
execution of this Agreement that they shall not, as a company, consultant or
agent for any other entity or person, seek to solicit or carry out any work of
the same or similar nature, or offer, develop, license any similar product or
service to the Assets sold herein, for any client or customer of Buyer or any of
its affiliates.  As used herein "similar product or service" shall
mean any product or service similar to that offered, licensed, contemplated or
developed in a similar Business (as defined herein) to Buyer.

    

    2.21
Non-Solicitation of Buyer’s
Employees.  Seller hereby agrees that they shall not as a
company, employer, consultant or agent for any other entity or person, solicit,
engage or employ any employee of the Buyer.  Seller shall not induce
any Employee of Buyer or any of its affiliates to terminate his or her
employment with Buyer or any of its affiliates, or hire or assist in the hiring
of any such Employee by any other entity or person.

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    3. Warranties and Representations of
Buyer

     

    Buyer
warrants and represents to Seller as follows:

     

    3.1 Corporate
organization.  Buyer is a corporation duly organized, validly
existing and in good standing under the laws of the State of Nevada and is duly
qualified to do business in the State of New York and has full power and
authority to carry on its current business and to purchase, own, use and sell
its assets and properties.

     

    3.2 Corporate
authority.  The execution and delivery of this Agreement to
Seller and the carrying out of the provisions hereof have been duly authorized
by the Board of Directors of Buyer, and at Closing, Buyer shall furnish Seller a
copy of the authorizing resolutions of Buyer's Board of Directors.

     

    3.3 Binding
nature.  This Agreement shall be, when duly executed and
delivered, a legal and binding obligation of Buyer, enforceable in accordance
with its terms.

     

    3.4 Representations and
warranties.  No warranties or representations of Buyer in this
Agreement contains or will contain any untrue statement or omissions, or will
omit to state a material fact necessary to make the statements contained herein
not misleading.  All representations and warranties made by Buyer in
this Agreement shall be true and correct as of Closing with the same force and
effect as if they had been made on and as of such date.

     

    3.5 Compliance with securities
laws.  To the best of Buyer's knowledge and belief, neither
Buyer nor any officer, director, affiliate, or controlling person of Buyer has
committed any violation, or been in any way in contravention, of any law, rule
or regulation governing transactions in securities, in connection with the
transactions herein.

     

    3.6 Inspection and
value.  Buyer has formed its own opinion as to the value of
Seller's Assets being purchased hereunder.  Seller's warranties
include such express written warranties as are contained in this
Agreement.

     

     3.7
Litigation.  There
are no pending, or to the best knowledge and belief of Buyer, threatened actions
or proceedings before any court or administrative agency or other authority that
might or will materially or adversely affect Buyer's ability or right to perform
all of Buyer's obligations hereunder.

     

    3.8 Compliance.  Neither
the execution and delivery of this Agreement, nor any instrument or agreement to
be delivered by Buyer to Seller at the Closing pursuant to this Agreement, nor
the compliance with the terms and provisions thereof by Buyer, will result in
the breach of any applicable statute or regulation promulgated thereunder, or
any administrative or court order or decree, nor will such compliance conflict
with, or result in the breach of, any of the terms, conditions or provisions of
the Certificate of Incorporation or bylaws of Buyer, as amended, or any
agreement or other instrument to which Buyer is a party, or by which Buyer is or
may be bound, or constitute an event of default or default thereunder, or with
the lapse of time or the giving of notice or both constitute an event of default
thereunder.

     

    3.9 Effect of
Agreement.  The terms and conditions of this Agreement and all
other instruments and agreements to be delivered by Buyer to Seller pursuant to
the terms and conditions of this Agreement are valid, binding and enforceable
against Buyer in accordance with their terms.

     

    3.10
Good Title. Buyer has
and shall transfer to Sean Hanlon and Gregory Englehardt at Closing good and
marketable title to 10,000 SEC 144 restricted shares each, free and clear of any
and all security interests, encumbrances, or liens.

     

    3.11
Due
performance.  Buyer has in all material respects performed all
obligations required to be performed by it hereunder, and is not in default in
any material respect hereunder, or in violation in any material respect of its
Certificate of Incorporation or bylaws, as amended, or any agreement, lease,
mortgage, note, bond, indenture, license or other documents or undertaking, oral
or written, to which it is a party or by which it is bound, or by which it or
any of its properties or assets may be materially affected. Buyer is not in
violation or default in any material respect of any order, regulation,
injunction or decree of any court, administrative agency or governmental
body.  The execution and delivery of this Agreement, and the
consummation of the transactions contemplated hereby will not result in any of
the violations or defaults referred to in this paragraph.

     

    3.12
Buyer agrees to inform Seller according to the Notice provisions provided for
herein of any and all investment, in excess of five million (5,000,000) dollars,
raised from the date of Closing until the satisfaction of the Promissory
Note.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     4.
Liabilities

     

    4.1 No assumption of
liabilities.

     

    (a)
Seller acknowledges that Buyer is acquiring Seller's Assets hereunder without
any assumption of Seller's liabilities.

     

    (b)
Seller will indemnify and hold Buyer harmless from and against any and all
claims for products, service, and professional liability against Seller arising
out of sales of products or services or grants of licenses rendered by Seller
prior to Closing.

     

    5. Conditions
Precedent

     

    5.1 Conditions precedent to Seller's
obligations.  The obligations of Seller to complete the Closing
hereunder are, at Seller's option, subject to the following
conditions:

     

    (a) All
representations and warranties by Buyer contained in this Agreement shall be
true in all material respects as of and at the Closing.

     

    (b) Buyer
shall have performed and complied with all agreements, terms and conditions
required by this Agreement to be performed and complied with by Buyer on or
before the Closing.

     

    (c)
Seller shall have received an opinion of counsel from Buyer, dated the Closing
date, in form and substance reasonably satisfactory to counsel for Seller,
stating that:

     

    (i) Buyer
is a corporation duly organized and existing in good standing under the laws of
the State of Nevada and is duly qualified to do business in the State of New
York.

     

    (ii)
Buyer has full power and authority to make, execute, deliver and perform this
Agreement, and all corporate and other proceedings required to be taken by
Buyer, its directors to authorize Buyer to enter into and carry out this
Agreement and the transactions contemplated hereby have been duly and properly
taken, and this Agreement constitutes a valid obligation binding upon Buyer in
accordance with its terms, and that Buyer has the corporate power to conduct the
type of business presently conducted by Seller relating to Seller's
Assets.

     

    (iii) The
execution and delivery of this Agreement, and the consummation hereof, do not
conflict with, or result in breach of, or constitute a default under, the
Article of Incorporation or bylaws of Buyer, as amended, or any material
agreement or instrument of which such counsel has knowledge and to which Buyer
is a party or by which it is bound.

     

    (d)
Seller shall not be in bankruptcy or similar proceedings.

     

    5.2 Conditions precedent to Buyer's
obligations.  The obligations of Buyer to complete the Closing
under this Agreement are, at Buyer's option, subject to fulfillment by Seller,
or otherwise, of each of the following conditions:

     

    (a) All
representations and warranties of Seller contained in this Agreement shall be
true in all material respects as of and at the Closing with the same effect as
if said representations and warranties had been made on and as of Closing,
except and to the extent otherwise specifically provided by the terms and
conditions of this Agreement.

     

    (b)
Seller shall have performed and complied with all agreements, terms and
conditions required by this Agreement to be performed and complied with by
Seller on or before the Closing.

     

    (c) The
employees of Seller are listed on the Schedule of Employees, Schedule F,
attached hereto and made a part hereof.  

     

    (d) Buyer
shall have received an opinion of counsel from Seller, dated the Closing date,
in form and substance reasonably satisfactory to counsel for Buyer, stating
that:

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (i)
Seller is a corporation duly organized, validly existing and in good standing
under the laws of the State of Delaware, has full corporate power to own, lease
and sell its assets, including Seller's Assets, and to conduct its then current
business and is duly qualified to do business and is in good standing in the
State of Delaware and every other jurisdiction where such qualification may be
necessary.

     

    (ii)
Seller has the full power and authority to make, execute, deliver and perform
this Agreement.  All corporate and other proceedings required to be
taken by Seller, its directors and shareholders to authorize Seller to enter
into and carry out this Agreement and the transactions contemplated hereby have
been duly and properly taken, and this Agreement constitutes a valid obligation
binding upon Seller in accordance with its terms.

     

    (iii) At
the Closing, Buyer shall receive good and marketable title to all of Seller's
Assets, free and clear of any and all security interests, encumbrances, liens,
infringements, licenses in favor of others (except and to the extent expressly
provided herein) or other interests.

     

    (iv)
Counsel does not know of any litigation, proceeding or governmental
investigation pending or threatened against or relating to Seller that would
adversely affect, in any way, the business of Seller's Assets or Seller's
Assets.

     

    (v) The
execution and delivery of this Agreement and consummation hereof do not conflict
with, or result in the breach of, or constitute a default under the Certificate
of Incorporation or bylaws of Seller, or any material agreement or instrument of
which counsel has knowledge and to which Seller is a party or by which Seller is
bound.

     

    (vi) The
business of Seller and Seller's Assets shall not have been materially and
adversely affected as a result of any transaction or labor dispute or
discussion.

     

    (vii)
Seller does not have any subsidiary corporations or other undisclosed business
enterprises.

     

    (viii)
All corporate and other proceedings and actions required by this Agreement or by
law or any rules or regulations promulgated thereunder, to be taken by or on the
part of Seller, its Board of Directors or its shareholders to authorize Seller
to execute, deliver and perform its duties and obligations arising under this
Agreement have been duly and validly taken.

     

    (ix)
Seller has complied with all applicable statutes, the provisions of its
Certificate of Incorporation and bylaws, as amended, and all other laws and
regulations applicable to the transactions contemplated by this Agreement to be
performed by Seller.

     

    (x)
Seller's Assets are free and clear of all perfected, filed and/or recorded
liens, charges, and encumbrances.  The instruments of assignment,
transfer and conveyance of Seller's Assets to Buyer comply in all respect with
the terms of this Agreement and are sufficient to vest in Buyer all right, title
and interest in respect to all of Seller's Assets.

     

    (xi)
Neither the execution and delivery of this Agreement, nor any instrument or
agreement delivered by Seller to Buyer at the Closing pursuant to this
Agreement, nor the compliance with the terms and provisions hereof by Seller
resulted in or will result in the breach of any applicable statute or regulation
promulgated thereunder, or any administrative or court order or decree, nor will
such compliance conflict with or result in the breach of any of the terms,
conditions, or provisions of the Certificate of Incorporation or bylaws, as
amended, of Seller, or any agreement or other instrument to which Seller is a
party, or by which Seller is or may be, bound, or constitute an event of default
or, with the lapse of time or the giving of notice, or both, constitute an event
of default thereunder.

     

    (xii)
This Agreement and all of the instruments and agreements delivered by Seller to
Buyer on the date hereof are legal, valid, and binding obligations of Seller,
enforceable in accordance with their terms.

     

    (xiii)
There is no suit, action or legal, administrative, arbitration or other
proceeding or governmental investigation, or any material change affecting any
of Seller's Assets pending or, to the Seller’s counsel's knowledge, after due
inquiry, threatened against Seller, which might materially or adversely affect
the financial condition of Seller or the conduct of Seller's business related in
any way to Seller's Assets.

     

    (xiv) To
Seller’s knowledge, there is no suit, action or claim that the Computer
Technology, Software, Proprietary Rights or Inventories infringe any patents,
copyrights, trade secrets, trademarks or other proprietary rights of any third
parties, and that the Computer Technology, Software, Proprietary Rights,
Inventories or any portion thereof or the exercise of any rights related thereto
or to Seller's Assets do not infringe any patents, copyrights, trade secrets,
trademarks or other proprietary rights of third parties.

     

    (d)
Seller shall have delivered to buyer such other instruments and documents as
Buyer shall reasonably request for the purpose of further perfecting the title
of Buyer in Seller's Assets.

    (e)
Seller shall not be in bankruptcy or similar proceedings.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    5.3 Waivers and
consents.  Promptly following the execution of this Agreement,
Seller shall use its best efforts to obtain such written waivers and consents as
may be required, or reasonably requested by Buyer, in connection with the sale
and assignment of Seller's Assets by Seller to Buyer in accordance with the
terms of this Agreement.

     

    6. Closing
Obligations

     

    6.1 Seller's obligations at
Closing.  At the Closing, Seller shall execute and deliver to
Buyer:

     

    (a) A
bill of sale, assignments, and such other instruments, and documents of
conveyance and transfer to Buyer all of Seller's Assets.

     

    (b)
Appropriate original instruments of consent or waiver executed by third parties
with respect to all Contract Rights being transferred to Buyer hereunder in
order more fully to effect transfer of Seller's Assets hereunder, including,
without limitation, consents by all appropriate governmental agencies, if
any.

     

    (c)
Possession of the originals of all Seller's Assets and all copies thereof; it
being understood and agreed that no Seller's Assets or any portion thereof shall
remain in the possession or control of Seller after the
Closing.

     

    (d) True
and complete copies of resolutions duly accepted by Seller's board of Directors
and all shareholders entitled to vote hereon confirming this Agreement,
authorizing the carrying out of all transactions contemplated herein and the
execution and delivery by Seller of all instruments then or thereafter required
to do so; said resolutions to be duly certified by the Secretary of
Seller.

     

    (e)
Opinion of Seller's counsel as hereinabove provided.

     

    (f) Such
other instruments and documents as may be elsewhere herein
required.

     

    (g) A
certificate signed by the President and by the Secretary of Seller, dated the
date of Closing, certifying that all of Seller's representations and warranties
set forth in this Agreement continue to be true on the Closing date as if
originally made on such date, except and to the extent otherwise expressly
provided or permitted in this Agreement.

     

    (h) All
documents necessary to transfer the domain name www.clearlobby.com to
Buyer.

     

    (i) All
documents necessary to document the transfer Seller’s Ownership rights in the
assets being transferred herein to Buyer.

     

    6.2 Seller's further
assurances.From time to time, at Buyer's request and expense, whether at
or after the Closing and without further consideration, Seller
shall:

     

    (a)
Execute and deliver to Buyer such instruments as may reasonably be required to
carry out the intent and purpose of this Agreement.

     

    (b)
Deliver to Buyer such other data, papers and information as may be requested by
Buyer to assist Buyer in the use of Seller's Assets.

     

    6.3 Buyer's obligations at
Closing.At Closing, Buyer shall execute and deliver to
Seller:

     

    (a) The
payments provided for herein.

     

    (b) Stock
certificates in the names of Sean Hanlon and Gregory Englehardt for 10,000 SEC
144 restricted common shares of Buyer.

     

    (c) An
opinion of counsel for Buyer as hereinabove required.

     

    (d) True
and complete copies of resolutions duly adopted by Buyer's Board of Directors
which provide all necessary corporate authorization for the execution and
carrying out of this Agreement and the provisions hereof.

     

    (e) A
certificate signed by the President and by the Secretary of Buyer, dated the
date of Closing, certifying that all of representations and warranties set forth
in this Agreement continue to be true on the Closing date as if originally made
on such date and the fulfillment of the covenants and agreements as of the
Closing.

     

    (f)
Appropriate instruments assuming obligations of Seller in the Contract Rights
and indemnifying Seller.

     

    (g) Such
other instruments and documents as may be elsewhere herein
required.

     

    (h) The
Buyers, by this Agreement, effectively transfer the shares referred to above
(6.3(b) to Sean Hanlon and Gregory Englehardt.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    7. Employees

     

    7.1 Data on employees - Seller
shall comply with whatever reasonable requests Buyer may make for additional
information relating to its employees.

     

    8. Miscellaneous

     

    8.1 Brokerage.  Each
party hereto represents and warrants to the other that no broker or finder is
entitled to any commission, or similar fee, in connection with the making and
carrying out of this Agreement.

    

    8.2 Taxes.  The Parties
hereto shall be solely responsible for their own tax liability.  Each
Party to this Agreement shall be responsible for the payment of any taxes
attributable to and/or accessed against them, as a result of the transactions
contemplated hereunder.  All fees, costs, charges, and expenses
payable to any federal, state, or municipal authority, including without
limitation all filing fees, documentary stamps and transfer, sales and other
taxes required to be paid, or imposed in connection with the terms of this
Agreement shall be paid by the Party incurring such costs.

    

    8.3 Indemnification.Seller
covenants and agrees to defend, indemnify, and hold Buyer harmless against any
loss, damage, claim of third parties, actions, suits, demands, judgments, or
expense (including legal and other fees, costs and charges) incurred or
sustained by Buyer as a result of or attributable, in whole or in part, to any
misrepresentation or breach of any representation, warranty, covenant, or
agreement herein (including, without limitation, provisions on applicable bulk
transfer laws) given or made by Seller. Buyer covenants and agrees to defend,
indemnify, and hold Seller harmless against any loss, damage, claim of third
parties, actions, suits, demands, judgments, or expenses (including legal and
other fees, costs and charges) incurred or sustained by Seller as a result of or
attributable, in while or in part, to any misrepresentation or breach of any
representation, warranty, covenant, or agreement herein (including, without
limitation, provisions with respect to  Buyer's representations of
compliance with securities laws, rules and regulations) given or made by
Buyer.

    

    8.3.1
Sean Hanlon and Gregory Englehardt shall jointly indemnify Buyer against any
claim of third parties asserting ownership of the technology transferred
hereunder, as defined in Schedule A attached hereto, for a period of twelve (12)
months from the execution of this Agreement.  Nothwithstanding the
preceding sentence, such liability is limited to and shall not exceed the amount
of the Purchase Price then received by Seller under the Promissory Note attached
hereto.  Such indemnification shall in no instance terminate the
obligations of Buyer under said Promissory Note.

     

    8.4 Effectiveness.  This
Agreement supersedes any and all agreements, if any, previously made between the
parties relating to the subject matter hereof, and there are no understandings
or agreements other than those included herein.

     

    8.5 Notices and
communications.Any notice, payment, request, instruction, or other
document to be delivered hereunder shall be deemed sufficiently given if in
writing and delivered personally or mailed by certified mail, postage prepaid,
if to Buyer addressed to Buyer at the address first set forth above, and if
addressed to Seller, addressed to Seller at the address first set forth above
unless in each case Buyer or Seller shall have notified the other in writing of
a different address.

     

    8.6 Non-waiver.  No
delay or failure on the part of either party in exercising any right hereunder,
and no partial or single exercise thereof, will constitute a waiver of such
right or of any other right hereunder.

     

    8.7 Headings.  Headings
in this Agreement are for convenience only and are not to be used for
interpreting or construing any provision hereof.

     

    8.8 Governing
law.  This Agreement shall be construed in accordance with and
governed by the laws of the State of New York.

     

    8.9 Jurisdiction.  Any
and all claims arising out of or relating to this Agreement shall be brought in
a court of competent jurisdiction within the State of New York, County of
Rockland.

     

    8.9 Counterparts.  This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original but all of which together shall constitute one and the same
instrument.

     

    8.10
Binding
nature.  The provisions of this Agreement shall be binding upon
and inure to the benefit of each of the parties hereto and their respective
successors and assigns.

     

    8.11
Survival of representations
and warranties.  Except as otherwise expressly provided in this
Agreement or the Schedules annexed, the representations and warranties of Buyer
and Seller extended hereunder shall survive the Closing for a period of twelve
(12) months.  Each party against whom liability is asserted under the
provisions of this Agreement shall be given the opportunity to participate,
directly or through its authorized representative, at its cost and expense, in
the conduct of any negotiations relating to the settlements of any liability or
any other proceeding instituted by any third party against either Seller or
Buyer, as the case may be, giving rise to the alleged breach.

     

    8.12
Expenses.  Except
as otherwise expressly provided herein, each party shall pay all of its own
expenses incidental to the negotiation and preparation of the documentation and
financial statements relating to this Agreement and for entering into and
carrying out the terms and conditions of this Agreement and consummating the
transactions, irrespective of whether the transactions contemplated shall be
consummated.

     

    8.13
Amendment; successors and
assigns.  This Agreement may be amended only by an instrument
signed by the authorized representatives of the parties
hereto.  Neither party may assign any of its rights, obligations, or
liabilities arising hereunder without the prior written consent of the other,
except as otherwise provided herein, and any such assignment or attempted
assignment shall be null and void.

     

    8.14
Third party
beneficiaries.  Except for their proper successors and assigns,
the parties hereto intend that no third party shall have any rights or claims by
reason of this Agreement.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    In
witness whereof, the parties hereto have cause this Agreement to be duly
executed by their authorized representatives as of the date first above
written.

     

    
      	
              Clearlobby,
      Inc

            	
              Vemics, Inc.

            
	 
      	
               

            
	
              (''Seller'')

            	
              (''Buyer'')

            
	
              By:
      ______________________

            	
              By:
      Fred Zolla

            
	
              Title:
      ______________________

            	
              Title:
      CEO

            
	
              Date:
      ______________________

            	
              Date:
      September 11, 2008

            
	 
      	 
      
	 
      	 
      
	 
      	 
      

    

    

     

    Sean Hanlon and Gregory Englehardt
hereby agree jointly, to the provisions of section 8.3.1 of this
agreement.

     

    

     

    /s/ Sean
Hanlon                                                                                                                         /s/ Gregory
Englehardt                                      

    Sean
Hanlon                                                                                                                               Gregory
Englehardt

    SCHEDULE
A.

     

     

     

     

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    COMPUTER
TECHNOLOGY

     

    

     

    ClearLobby,
represented as www.clearlobby.com, is an online service through which
pharmaceutical companies and physicians share information and
interact.  ClearLobby is intended to supplant, to some degree, the
direct sales call by pharmaceutical sales representatives to
physicians.  By placing those interactions online, through a highly
customizable web portal, ClearLobby is intended to make the detailing process
more efficient.

     

    A hosted
service, ClearLobby provides pharmaceutical companies with an online vehicle to
present information to targeted physicians, who access the site with a login and
password.

     

    ClearLobby
is intended to house industry’s presentations and educational content for
physicians – and be utilized in a manner that supplants unsolicited sales
representative calls to

    physician
offices.  A hosted portal with both physician user-specific and
industry client-specific

    views,
ClearLobby will drive considerable efficiencies for both
constituents.

    

    For
Physicians, ClearLobby will:

     

    
      	
              ·  

            	
              Aggregate
      content from all pharmaceutical brands into a single, convenient
      portal

            

    

    
      	
              ·  

            	
              Enable
      them narrow what they see to only selected, relevant drugs and
      products.

            

    

    
      	
              ·  

            	
              Allow
      them to review that information at their convenience vs. in lieu of
      revenue-producing activities.

            

    

    
      	
              ·  

            	
              Enable
      them to selectively engage companies and sales reps as needed, through
      interactive tools and feedback
mechanisms.

            

    

    
      	
              ·  

            	
              Facilitate
      the formal control over sales rep access to their
  practice.

            

    

    

    For
Pharmaceutical Companies, ClearLobby will:

     

    
      	
              ·  

            	
              Provide
      a new vehicle for delivering promotional and educational messages to
      targeted physicians who chose to limit sales rep
  visits.

            

    

    
      	
              ·  

            	
              Facilitate
      more meaningful and productive sales rep-physician
    meetings.

            

    

    
      	
              ·  

            	
              Allow
      corporate marketing to gain greater control over marketing and
      sales

            

    

    messaging
(vs. field reps).

    
      	
              ·  

            	
              Deliver
      considerable efficiencies by aggregating targeted physicians and reducing
      costly, ineffective unsolicited sales
calls.

            

    

    
      	
              ·  

            	
              Provide
      data on every interaction on the portal, to enable continuous feedback
      on

            

    

    acceptance
and impact of content and messaging.

    SCHEDULE
B.

    SOFTWARE

     

    The
current ClearLobby application is the second version of the software and is in
prototype stage.  An engineer should be able to look at the
application (or perhaps just schema.rb) and understand the business domain
rapidly, for the code base is slim, with nothing unusual
occurring.  Developed as a Rails application, gaining an understanding
the code and domain should not require an expertise in that framework and
language.

    

    The
Domain 

    There are
3 types of Users:  Physicians/MDs (UserMd), Pharma Admins
(UserPharma), and Pharma Reps (UserRep).  MDs belong to a
Practice.  Pharma Admins and Reps belong to Companies.  Products
belong to Companies.  Products have and belong to many
Specialties.  Products have many
ContentPieces.  ContentPieces are viewed (ContentView) and commented
on (ContentComment) by MDs. 

     

    Process
Flow 

    Hitting
the base url triggers the AuthController, a simple application wrapper to
provide generic password protection (note: this is not a true security
controller).  When the correct password is entered, the user comes to
a default home page offering one-click login for each user
type.  There is also the option to run through basic MD
registration.  Each of the options has its own controller:
MDController, PharmaController, RepController, and
RegController.  Because the decision was made to use 3 different User
types in the domain, it allowed for very easy, modular controller
architecture.  No Roles or Role decisions are made anywhere and
layouts do not have to be determined dynamically.  Once a user "logs
in,” a single controller associated with that user type is used.  In
the current application, all behavior is located in a single place.

    

    Persistence

    In the
current application, much of the AJAX does not trigger
persistence.  For example, when an MD rates content, the div is
changed to display a rating image based on their rating
selection.  Sample and Meeting requests do not persist
either.  Likewise, the current Pharma reporting module utilizes static
partials loaded dynamically.  Finally, the Discuss tab in the MD view
has not yet been constructed (clicking on that route will deliver an
error).  As a prototype, infrastructural elements such as system wide
exception handling, logging, authentication/authorization, file upload and
storage, have been established only to simulate behavior and change the user’s
page, but not to write to a database.   

    

    Future
Production

    The
current application is a very small and clean web application.  It
maps a useful user experience across multiple constituents and reflects the
broad business concept of ClearLobby.  In addition, while the
production solution will inherently be more robust, all of the technologies
needed are already in use.  The bulk of the application involves
handling video and document rendering, and solutions exist today, such as ffmpeg
(or similar) for video conversion and FlashPaper for document
conversion.  Numerous Rails plugins, gems, or alternate technologies
altogether, are available to handle smaller bits of functionality (auth,
ratings, tags, modal boxes that hide flash content, background processing,
email, application monitoring, unblocking uploads, etc).  

     

      

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

      SCHEDULE
C.

    PROPRIETARY
RIGHTS

     

    Sean
Hanlon and Gregory Englehardt, the principals of ClearLobby, Inc., hereby assert
that ClearLobby owns the assets it is transferring to Buyer, pursuant to this
agreement.

     

    An
assignment of assets from Kevin Mather is attached hereto.

     

    SCHEDULE
D.

    INVENTORIES

     

    The
application and the ClearLobby logo are contained on one disc of zipped files,
to be transferred by Seller to Buyer upon execution of this
agreement.

     

    Seller
also will transfer ownership of the url http://www.clearlobby.com to Buyer up on
execution of this agreement.

     

    SCHEDULE
E.

    CONTRACT
RIGHTS

     

    Seller
hereby warrants that no persons or entities can claim any contract rights with
respect to the Computer Technology or any of the assets being transferred from
Seller to Buyer hereunder.

     

    In
concert with the execution of this Agreement, Seller will provide to Buyer the
executed Voting Agreement executed by Seller’s shareholders, which reflects the
approval of this Agreement of all of the holders of Seller’s
shares.

     

    In
addition, in concert with the execution of this Agreement, Seller will provide
to Buyer the Statement of Ownership, which affirms that Seller has universal and
complete ownership and rights to the Computer Technology and all assets being
transferred under this Agreement; this Statement of Ownership was approved and
executed by the sole resource responsible for the architecture and development
of the Computer Technology.

     

    SCHEDULE
F.

    PROMISSORY
NOTE

     

    $250,000.00                                                                                                                         September
11, 2008

    

    
      	
              1.  

            	
              Payment
      Obligation.  For value received, Vemics, Inc., a Nevada
      corporation with a principle place of business at 523 Avalon Gardens,
      Nanuet, New York 10954 (“PROMISOR”) hereby promises to pay to the order of
      ClearLobby, Inc., a Delaware Corporation with a principle place of
      business at 60 Silver Lane, Holliston, Massachusetts 01746 (“PROMISEE”)
      the principal amount of two hundred and fifty thousand dollars
      ($250,000.00) interest free.

            

    

    

    
      	
              2.  

            	
              Source of
      Obligation.  This Note arises from PROMISOR’S
      acknowledgement that PROMISOR owes
      $250,000.00 to PROMISEE pursuant to the
      terms of the Limited Asset Purchase Agreement executed by PROMISEE and PROMISOR on September
      11, 2008.

            

    

    

    
      	
              3.  

            	
              Payment
      Terms.  This Promissory Note is due and payable as
      follows, to-wit: PROMISOR shall make a
      payment of ten thousand ($10,000.00) dollars at the time of signing this
      Promissory Note and the Limited Asset Purchase Agreement as well as the
      delivery of the technology referenced in said Limited Asset Purchase
      Agreement and twelve (12) equal monthly payments of twenty thousand
      ($20,000.00) until such time as this note has been fully satisfied. 
      The first such monthly payment shall be due and payable on the 1st
      day of January 31, 2009, and a like installment shall be due and payable
      on the same day of each succeeding month thereafter until the total
      principal of $250,000.00 is paid in
      full. 

            

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
payment terms delineated above are subject to change contingent on PROMISOR receiving investment,
funds, or capital, regardless of source as follows:

    

    If PROMISOR receives investment,
funds, or capital in an amount of ten million ($10,000,000.00) dollars or more,
PROMISOR shall pay any
and all unsatisfied principal pursuant to this promissory note, in full, to
PROMISEE within thirty
(30) days of PROMISOR
receiving/beginning to receive the investment, funds, or capital.

    

    If PROMISOR receives investment,
funds, or capital of five million dollars ($5,000,000.00) or more, but in an
amount less than ten million dollars ($10,000,000.00), PROMISOR shall make a
proportional payment based on the initial 5 Million Dollars received and
proportional payments for each $1,000,000.00 thereafter of investment, funds, or
capital received on a pro rata basis towards the satisfaction of any and all
unsatisfied principal.

    For
example: If Vemics receives 5,000,000.00 in investment, funds, or capital,
Vemics shall make a payment of $120,000.00, equal to 50% of the $240,000.00
principle.

    

    
      	
              4.  

            	
              Form of
      Payment.  Payment shall be deemed made when funds are
      available to PROMISSEE from PROMISOR.  All such payments shall
      be made to ClearLobby, Inc., Any check, draft, Money Order, wire transfer,
      or other instrument given in payment of all or any portion hereof may be
      accepted by the PROMISEE and handled in
      collection in the customary manner, but the same shall not constitute
      payment hereunder or diminish any rights of the PROMISEE hereof except
      to the extent that actual funds are unconditionally received by the PROMISEE and applied to
      this indebtedness in the manner elsewhere herein provided.  All
      such payments shall be issued to ClearLobby, Inc., 60 Silver Lane,
      Holliston,
Massachusetts 01746.

            

    

    

    
      	
              5.  

            	
              Prepayment.  PROMISOR shall have the
      right to prepay the amount owed hereunder in whole or in part at any time
      without penalty or notice.

            

    

    

    
      	
              6.  

            	
              Default.  PROMISOR shall be in
      default upon the occurrence of any of the following (referred to
      individually as an “Event of
Default”):

            

    

    

    
      	
              a.  

            	
              Failure
      to make any payment within ten (10) days of the date of which such payment
      becomes due;

            

    

    

    
      	
              b.  

            	
              Admission
      in writing by PROMISOR of its
      inability to pay debts as they
mature;

            

    

    

    
      	
              c.  

            	
              The
      making of a general assignment for the benefit of creditors by PROMISOR;

            

    

    

    
      	
              d.  

            	
              Adjudication
      that PROMISOR is
      bankrupt or insolvent;

            

    

    

    
      	
              e.  

            	
              Filing
      by PROMISOR of (i)
      a voluntary petition in bankruptcy; or (ii) a petition or an answer
      seeking reorganization or an arrangement with creditors, or to take
      advantage of any insolvency, readjustment of loan, dissolution or
      liquidation law or statute; or  (iii) an answer admitting the
      material allegations of a petition filed against PROMISOR in any
      proceeding under any such law;

            

    

    

    
      	
              f.  

            	
              The
      entering of an order, judgment or decree, without the application,
      approval or consent of PROMISOR by any court of
      competent jurisdiction, appointing a receiver, trustee or liquidator for
      PROMISOR, if such
      order, judgment or decree shall continue unstayed and in effect for a
      period of sixty (60) days.

            

    

    

    
      	
              7.  

            	
              Acceleration of
      Maturity: In the event of default, as defined above, time being of
      the essence hereof, PROMISEE, upon giving
      written notice to PROMISOR and PROMISOR’s failure to
      cure said default within 30 days, may declare the entire principal sum at
      the time of the default, due and
payable.

            

    

     

    
      	
              8.  

            	
              Waiver.

            

    

     

    
      	
              a.  

            	
              PROMISOR hereby waives
      and releases all errors, defects and imperfections in any proceedings by
      PROMISEE under the
      terms of this Note and any claims related to PROMISEE’S Limited Asset
      Purchase Agreement with PROMISOR and all benefit
      that might accrue to PROMISOR by virtue of
      any present or future laws exempting property, real or personal, or any
      part of the proceeds arising from any sale of such property, from
      attachment, levy, sale under execution, or providing for any stay of
      execution, exemption from civil process or extension of time for
      payment.

            

    

    
      	
              b.  

            	
              PROMISOR hereby waives
      presentment for payment, demand, notice of dishonor, protest and notice of
      protest of this Note and all other notices in connection with delivery,
      acceptance, performance, default or enforcement of the payment of this
      Note.  Liability hereunder shall be unconditional and shall not
      be affected in any manner by any indulgence, extension of time, renewal,
      waiver, or modification consented to by the PROMISEE.  Notwithstanding
      anything to the contrary herein, PROMISEE must give notice to PROMISOR
      with time to cure any default as specified above in this
      agreement.

            

    

    

    
      	
              9.  

            	
              Governing
      Law.  This Promissory Note shall be interpreted and
      applied in accordance with the law of the State of New
      York.  Any claim or cause of action arising under this Note
      shall be subject to a Court having jurisdiction thereof, located in the
      County of Rockland in The State of New York.  The prevailing
      party shall be entitled to reimbursement for costs and reasonable
      attorney's fees.

            

    

     

    
      	
              10.  

            	
              Interest on Unpaid
      Amounts: All sums remaining unpaid on the agreed or accelerated
      date of maturity of the last installment shall thereafter bear interest at
      the rate of ten
      percent (10%) per year.

            

    

     

    
      	
              11.  

            	
              Costs &
      Damages: In the event of default of this agreement or breach by
      PROMISOR, PROMISOR hereby agrees
      to pay reasonable attorneys fees and costs to PROMISEE related to
      pursuing its rights hereunder.

            

    

     

    
      	
              12.

            	
              Severability. 
      If any provision of this Note or the application thereof shall, for any
      reason and to any extent, be invalid or unenforceable, neither the
      remainder of this Note nor the application of the provision to other
      persons, entities or circumstances shall be affected thereby, but instead
      shall be enforced to the maximum extent permitted by
  law.

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN WITNESS WHEREOF, PROMISOR has executed this
Note as of the date first written above.

     

    PROMISOR                                                                       PROMISEE

    Vemics,
Inc.:                                                                     
ClearLobby, Inc.

    

    

    By:                                                                
                         By:
___________________________

         
Fred Zolla,
CEO                                                                     Sean
Hanlon, CEO

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