Document:

ecig_ex42.htm

EXHIBIT 4.2

 

THE SECURITIES REPRESENTED HEREBY AND THE SECURITIES INTO WHICH THIS SECURITY IS ISSUABLE HAVE BEEN OFFERED IN AN OFFSHORE TRANSACTION TO A PERSON WHO IS NOT A U.S. PERSON (AS DEFINED HEREIN) PURSUANT TO REGULATION S UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE "1933 ACT").

 

NONE OF THE SECURITIES REPRESENTED HEREBY NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE ISSUABLE HAVE BEEN REGISTERED UNDER THE 1933 ACT, OR ANY U.S. STATE SECURITIES LAWS, AND, UNLESS SO REGISTERED, MAY NOT BE OFFERED OR SOLD, DIRECTLY OR INDIRECTLY, IN THE UNITED STATES OR TO A U.S. PERSON EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF REGULATION S UNDER THE 1933 ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT, OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS.  HEDGING TRANSACTIONS INVOLVING THIS SECURITY AND THE SECURITIES INTO WHICH THIS SECURITY IS ISSUABLE MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE 1933 ACT.  "UNITED STATES" AND "U.S. PERSON" ARE AS DEFINED BY REGULATION S UNDER THE 1933 ACT.

 

Effective Date: November 4, 2013

 

 U.S. u

 

6% NOTE

(CANADIAN HOLDERS)

 

FOR VALUE RECEIVED, VICTORY ELECTRONIC CIGARETTES CORPORATION (the “Company”) promises to pay to u (the “Holder”), the principal sum of  u ($u) in lawful currency of the United States (the “Principal Amount”) on January 1, 2014 or such earlier date as the Note may be permitted to be repaid as provided hereunder (the “Maturity Date”), and to pay interest to the Holder on the Principal Amount of this Note at a rate of 6% per annum, subject to Section 2 below, payable on or prior to the Maturity Date (except that, if any such date is not a Business Day, then such payment shall be due on the next succeeding Business Day) in cash.  Interest shall be calculated on the basis of a 360-day year and, subject to Section 2, shall accrue daily commencing on the Effective Date until payment in full of the Principal Amount, together with all accrued and unpaid interest and other amounts which may become due hereunder. Interest shall cease to accrue upon the Issuance Date, provided that the Company in fact delivers the shares of Common Stock (the “Shares”). The Company may prepay all of the Principal Amount without the prior written consent of the Holder subject to the prepayment terms and conditions set out in Section 4 hereto.

 

This Note is subject to the following additional provisions:

 

	 1. 	 Subscription Agreement

 

 This Note has been issued pursuant to a subscription agreement between the Company and the Holder dated November 4, 2013 (the “Subscription Agreement”) pursuant to which the Holder purchased this Note, and this Note is subject in all respects to the terms of the Subscription Agreement and incorporates the terms of the Subscription Agreement to the extent that they do not conflict with the terms of this Note.  This Note may not be transferred or exchanged.

 

	 2.	 Repayment in Shares

 

(a)      Provided there is no Event of Default (as defined herein), the Company may elect to issue  Shares to the Holder on or before the Maturity Date in lieu of payment of the Principal Amount plus any accrued interest and other amounts owing in respect thereof (the “Outstanding Amount”). The Company shall effect such issuance by delivering to the Holder the form of Company Notice of Issuance attached hereto as Annex A (a “Notice of Issuance”), specifying the date on which such issuance is to be effected (the “Issuance Date”); provided that the date upon which any such issuance may be effected may not be less than 5 calendar days following the date of delivery of the Notice of Issuance.  Upon the issuance of the Shares, the Holder shall promptly physically surrender the Note to the Company for cancellation and the Outstanding Amount will be deemed to be forgiven.

 

  

  

 

  

 

(b)      If the Company, at any time while this Note is outstanding: (A) pays a stock dividend or otherwise makes a distribution or distributions in shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock, (B) subdivides outstanding shares of Common Stock into a larger number of shares, (C) combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (D) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then the number of Shares to be issued to the Holder shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding before such event and of which the denominator shall be the number of shares of Common Stock outstanding after such event. Any adjustment made pursuant to this Section shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

 

	 3.	Events of Default

  

(a)     “Event of Default”, wherever used herein, means any one of the following events (whatever the reason and whether it shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or order of any court, or any order, rule or regulation of any administrative or governmental body):

 

	
(i)  

	
any default in the payment of the Principal Amount or interest payable pursuant to this Note; and

 

	
(ii)  

	
the Company or any of its subsidiaries, if and when applicable (each a “Subsidiary”), shall commence, or there shall be commenced against the Company or any Subsidiary a case under any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or the Company or any Subsidiary commences any other proceeding under any reorganization, arrangement, adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect relating to the Company or any Subsidiary or there is commenced against the Company or any Subsidiary any such bankruptcy, insolvency or other proceeding which remains undismissed for a period of 60 days; or the Company or any Subsidiary is adjudicated insolvent or bankrupt; or any order of relief or other order approving any such case or proceeding is entered; or the Company or any Subsidiary suffers any appointment of any custodian or the like for it or any substantial part of its property which continues undischarged or unstayed for a period of 60 days; or the Company or any Subsidiary makes a general assignment for the benefit of creditors; or the Company shall fail to pay, or shall state that it is unable to pay, or shall be unable to pay, its debts generally as they become due; or the Company or any Subsidiary shall call a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its debts; or the Company or any Subsidiary shall by any act or failure to act expressly indicate its consent to, approval of or acquiescence in any of the foregoing; or any corporate or other action is taken by the Company or any Subsidiary for the purpose of effecting any of the foregoing.

 

(b)      If any Event of Default occurs, subject to any cure period, the Outstanding Amount shall become, at the Holder’s election, immediately due and payable.  Under such circumstances and at the option of the Holder, the Holder may elect to receive uShares in lieu of the Outstanding Amount.  The Holder shall effect such an issuance by delivering to the Company the form of Holder Notice of Issuance attached hereto as Annex B (a “Holder Notice of Issuance”), specifying therein the Issuance Date; provided that the date upon which any such issuance may be effected may not be less than 5 calendar days following the date of delivery of the Holder Notice of Issuance.  The terms and conditions in Section 2(b) apply to an issuance under this Section.

 

(c)      Upon payment in full of the Outstanding Amount or the issuance of the Shares in lieu thereof, the Holder shall promptly physically surrender the Note to the Company for cancellation and the Outstanding Amount will be deemed to be forgiven.

 

  

A-2

  

 

(d)      The Holder need not provide and the Company hereby waives any presentment, demand, protest or other notice of any kind, and the Holder may immediately and without expiration of any grace period enforce any and all of its rights and remedies hereunder and all other remedies available to it under applicable law.  Such declaration may be rescinded and annulled by the Holder at any time prior to payment hereunder and the Holder shall have all rights as a Note holder until such time, if any, as the full payment under this Section shall have been received by it.  No such rescission or annulment shall affect any subsequent Event of Default or impair any right consequent thereon.

 

(e)      Except in the circumstances where the Holder has received Shares in lieu of the Outstanding Amount, in which case the following amounts will be forgiven, the Company will forthwith upon demand pay to the Holder the amount of any and all reasonable out-of-pocket expenses, including the reasonable fees and disbursements of its counsel and of any agents not regularly in its employ which the Holder may incur in connection with any default on the Company’s part hereunder.

 

	 4.	Prepayment

  

The Company may, at its option, upon ten (10) days’ prior written notice (a “Prepayment Notice”) to the Holder, prepay (the “Prepayment”) the Outstanding Amount on or prior to the Maturity Date.  The Prepayment (less any tax required to be withheld by the Company) shall be paid by cheque or by such other reasonable means as the Company deems desirable. The mailing of such cheque from the Company’s registered office, or the payment by such other reasonable means as the Company deems desirable, on or before the prepayment date shall be deemed to be payment on the Prepayment date unless the cheque is not paid upon presentation or payment by such other means is not received. Notwithstanding the foregoing, the Company shall be entitled to require at any time, and from time to time, that the Prepayment be paid to the Holder only upon presentation and surrender at the registered office of the Company or at any other place or places designated by the Prepayment Notice.  At any time after a Prepayment Notice is given, the Company shall have the right to deposit the amount of the prepayment with any chartered bank or banks or with any trust company or trust companies named for such purpose in the Prepayment Notice to the credit of a special account or accounts in trust for Holder, to be paid to it upon surrender to such bank or banks or trust company or trust companies of the certificate or certificates representing the Note. Upon such deposit or deposits being made or upon the prepayment date, whichever is later, the Note shall be and be deemed to be paid and the rights of the Holder shall be limited to receiving, without interest, the amount so deposited.  Any interest allowed on such deposit or deposits shall accrue to the Company.

 

	 5.	Notices

 

Any and all notices or other communications or deliveries to be provided by the Holder hereunder, including, without limitation, any Notice of Issuance, shall be in writing, sent by a nationally recognized overnight courier service or by facsimile, addressed to the Company, Attn: President at the facsimile telephone number or address of the Company appearing on the books of the Company or such other address as the Company may specify for such purposes by notice to the Holder delivered in accordance with this Section. Any and all notices or other communications or deliveries to be provided by the Company hereunder shall be in writing and delivered personally, by facsimile, sent by a nationally recognized overnight courier service addressed to the Holder at the facsimile telephone number or address of such Holder, or if no such facsimile telephone number or address appears, at the address of the Holder to which this Note was delivered.  Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile telephone number specified in this Section prior to 5:30 p.m. (Pacific Time), (ii) the date after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile telephone number specified in this Section later than 5:30 p.m. (Pacific Time) on any date, (iii) the second business day following the date of mailing, if sent by nationally recognized overnight courier service, or (iv) upon actual receipt by the party to whom such notice is required to be given.

 

	 6. 	Definitions

 

For the purposes hereof, in addition to the terms defined elsewhere in this Note: (i) capitalized terms not otherwise defined herein have the meanings given to such terms in the Subscription Agreement, and (ii) the following terms shall have the following meanings:

 

	
(i)  

	
“Business Day” means any day except Saturday, Sunday and any day which shall be a federal legal holiday in the United States or a day on which banking institutions in the Province of British Columbia are authorized or required by law or other government action to close.

 

	
(ii)  

	
“Common Stock” means the common stock, par value $0.001 per share, of the Company and stock of any other class into which such shares may hereafter have been reclassified or changed.

 

	
(iii)  

	
“Effective Date” shall have the meaning shown on the first page of this Note.

 

	
(iv)  

	
“Person” means a corporation, an association, a partnership, organization, a business, an individual, a government or political subdivision thereof or a governmental agency.

 

  

A-3

  

 

	 7.	Replacement of Note if Lost or Destroyed

 

If this Note shall be mutilated, lost, stolen or destroyed, the Company shall execute and deliver, in exchange and substitution for and upon cancellation of a mutilated Note, or in lieu of or in substitution for a lost, stolen or destroyed Note, a new Note for the principal amount of this Note so mutilated, lost, stolen or destroyed but only upon receipt of evidence of such loss, theft or destruction of such Note, and of the ownership hereof, and indemnity, if requested, all reasonably satisfactory to the Company.

 

	8.	Governing Law

 

All questions concerning the construction, validity, enforcement and interpretation of this Note shall be governed by and construed and enforced in accordance with the internal laws of the Province of British Columbia, without regard to the principles of conflicts of law thereof.

 

	9.	Severability

 

The invalidity or unenforceability of any particular provision of this Note shall not affect or limit the validity or enforceability of the remaining provisions of this Note.

 

	10.	Waivers

 

Any waiver by the Company or the Holder of a breach of any provision of this Note shall not operate as or be construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Note.  The failure of the Company or the Holder to insist upon strict adherence to any term of this Note on one or more occasions shall not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this Note.  Any waiver must be in writing.

 

	11.	Usury

  

If any provision of this Note is invalid, illegal or unenforceable, the balance of this Note shall remain in effect, and if any provision is inapplicable to any Person or circumstance, it shall nevertheless remain applicable to all other Persons and circumstances. If it shall be found that any interest or other amount deemed interest due hereunder violates applicable laws governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the maximum permitted rate of interest. The Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law or other law which would prohibit or forgive the Company from paying all or any portion of the principal of or interest on this Note as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance of this indenture, and the Company (to the extent it may lawfully do so) hereby expressly waives all benefits or advantage of any such law, and covenants that it will not, by resort to any such law, hinder, delay or impeded the execution of any power herein granted to the Holder, but will suffer and permit the execution of every such as though no such law has been enacted.

 

  

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	12.	Next Business Day

 

Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day.

 

IN WITNESS WHEREOF, the Company has caused this Note to be duly executed by a duly authorized officer as of the date first above indicated.

 

	 	
VICTORY ELECTRONIC CIGARETTES CORPORATION

	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	
Per:  

	 	 
	 	 	
Authorized Signatory

	 
	 	 	 	 
	 	 	 	 

 

 

  

A-5

  

 

ANNEX A

 

COMPANY NOTICE OF ISSUANCE

 

The undersigned hereby elects to issue u Shares to the Holder in lieu of the Outstanding Amount in accordance with the terms of the Note of VICTORY ELECTRONIC CIGARETTES CORPORATION, a Nevada corporation (the “Company”), due on January 1, 2014.

 

	Date to Effect Issuance:	 ___________________________________
	 	 
	Principal Amount of Note:	 ________US$ u________________________
	 	 
	Number of Shares to be issued:  	 ______________u___________

 

                                                                                                                                                                             

VICTORY ELECTRONIC CIGARETTES CORPORATION

 

 

Per:           ____________________________

                  Authorized Signatory

 

  

  

  

 

ANNEX B

 

HOLDER NOTICE OF ISSUANCE

 

The undersigned hereby elects to exercise its right to require the Company to issue  u Shares to the undersigned in lieu of the Outstanding Amount in accordance with the terms of the Note of VICTORY ELECTRONIC CIGARETTES CORPORATION, a Nevada corporation, due on January 1, 2014.

 

	Date to Effect Issuance:	 ___________________________________
	 	 
	Principal Amount of Note:	 ________US$ u________________________
	 	 
	Number of Shares to be issued:  	 ______________u___________

              

 

	Signature: 	 ________________________________________	 

 

	 _________________________________________________	 
	
Name:

	 
	 	 
	 _________________________________________________	 
	 Address:	 

 

                                                               

2most_ex101.htm

Exhibit 10.1

 

Partner Agreement

This Agreement, dated May 24, 2013 (“Agreement”) is entered into by and between Smart Online, Inc., a Delaware corporation located at 4505 Emperor Blvd. Suite 320, Durham, NC 27703, (“Smart Online” (DBA MobileSmith)) and Jon Campbell, a ________________ corporation (“Partner”) located at ________________________ (collectively “Parties”).

WHEREAS Partner markets software to customers; and

WHEREAS Smart Online creates and distributes software and online services to businesses; and

WHEREAS Smart Online and Partner wish to enter into a marketing relationship whereby Partner may promote and market certain products and services of Smart Online to its customers.

NOW THEREFORE, and in consideration for the following recitals and mutual promises set forth herein, the parties agree as follows:

 

1.   Services.

During the term of this Agreement, Partner will promote and market Smart Online’s website, www.mobilesmith.com (“Website”), and any and all products and services contained on the Website (“Website Products and Services”).  Partner shall promote and market the Website Products and Services to its customers by the means or the activities set forth on Exhibit A, attached hereto and made a part hereof, (“Program”).

2.           Term.

This agreement shall become effective on May 24, 2013 (the “Effective Date”).  The initial term of this Agreement shall be for a period of one (1) year Effective Date, unless terminated as provided herein.  Thereafter, the Agreement may be renewed for successive one (1) year terms by mutual written agreement of the parties.

3.           Compensation

Referral and Co-Sell– 5% commission on software license portion of a sale.  5% of gross profit for services and custom development portion of a sale.  Partner provides details of the opportunity, an introduction to the account, and direct/active assistance during all parts of the sales process as requested by Smart Online staff.

4.           Termination.

The Parties’ obligations under this Agreement shall continue in full force and effect until this Agreement is terminated in accordance with the terms hereof.  Either Party may terminate this Agreement by providing thirty (30) days prior written notice of termination to the other Party.  In the event of a material breach of this Agreement by a Party, the non-breaching Party may terminate this Agreement immediately upon written notice to the other Party.

  

  

  

 

5.           Rights and Responsibilities of Smart Online and Partner.

Each of the Parties agrees that:

a.           each is responsible for its own expenses regarding fulfillment of its responsibilities and

obligations under the terms of this Agreement;

b.           neither Party will disclose the terms of this Agreement, unless both Parties agree in

writing to do so, or unless required by law.  In addition, neither Party will issue any press release or make other such public statements relating to this Agreement without the prior written consent of the other;

c.           neither Party will assume or create any obligations on behalf of the other or make any

representations or warranties about the other, other than those authorized;

d.           each Party will comply with all applicable laws and regulations (including without

limitation those governing consumer transactions);

e.           neither Party will use each other’s trademarks, except as authorized in this Agreement or

approved by the other Party in writing;

f.           each Party’s rights under this Agreement are not property rights and, therefore, can

not be transferred or encumbered in any way, other than by an assignment as expressly permitted herein;

g.           that when access to information systems or confidential information is provided by either

Party to the other, it is only in support of this Agreement and the marketing

activities as set forth on Schedule A; and governed by the Mutual Non Disclosure Agreement signed by both parties as part of this arrangement – Exhibit B:

	
h.

	
each Party will provide the other with such information and assistance as may be reasonably requested from time to time in connection with the Program.

  

  

  

 

6.           Representations and Warranties.

Both Parties represent and warrant that:

	
a.

	
They have the full legal right and corporate power and authority to enter into and perform all of their obligations under this Agreement and to comply with all terms and conditions of this Agreement;

	
b.

	
They will require their employees, agents and contractors to comply with the terms of this Agreement;

	
c.

	
They will comply with all applicable federal, state and local laws in the performance of obligations under this Agreement; and

	
d.

	
They will conduct their respective businesses in a legal and ethical manner, and shall commit no act that would reflect unfavorably on the other.  Neither party shall misrepresent the other’s prices, services or products.

7.           Independent Contractor Relationship.

Partner shall be an independent contractor hereunder and nothing contained in this Agreement shall be construed to create the relationship of employer and employee, agency, joint venture, or any other relationship or to make commitments of any kind for the account of or on behalf of the other, the existence of which is hereby expressly denied by the Parties.  Furthermore, both Smart Online and Partner acknowledge and agree that Partner shall not be deemed to be the agent of Smart Online and is not authorized to make any agreement for Smart Online or any representation or warranty on behalf of Smart Online.  Smart Online shall not be liable for any withholding tax in relation to the payment of fees to the Partner.

8.           Indemnification.

Partner hereby indemnifies Smart Online, its officers, directors, employees and agents from any damage, liability, loss or expense, including legal fees, related to or arising from Partner’s failure to comply with the terms of this Agreement or Partner’s material breach of any representation, warranty or covenant made by Partner herein, including the reasonable costs and expenses of investigating and defending against any claim, suit, action or proceeding in which such damages, liabilities, losses or expenses shall be asserted against Smart Online or its officers, directors, employees or any agents in connection therewith.

Smart Online hereby indemnifies Partner, its officers, directors, employees and agents from any damage, liability, loss or expense, including legal fees, related to or arising from Smart Online’s failure to comply with the terms of this Agreement or Smart Online’s material breach of any representation, warranty or covenant made by Smart Online herein, including the reasonable costs and expenses of investigating and defending against any claim, suit, action or proceeding in which such damages, liabilities, losses or expenses shall be asserted against Partner or its officers, directors, employees or any agents in connection therewith.

9.           Governing Law.

This Agreement is made pursuant to and shall be governed under and by the laws of the state of North Carolina without giving effect to the conflicts of laws provisions thereof.  Further, the parties consent to the jurisdiction and venue of the state and federal courts located in Wake County, North Carolina.

  

  

  

 

10.           Assignment.

This Agreement may not be assigned by either Party in any manner without prior consent of the other parties hereto.  However, in the event of the merger of Smart Online with another company, and/or the acquisition of Smart Online by another company, Partner hereby consents to assignment of this agreement without any prior approval.

11.           Acceptance of Agreement; Entire Agreement.

This Agreement constitutes the entire agreement between the Parties and supersedes all other prior agreements and understandings, both written and oral, between the Parties with respect to the subject matter hereof, and may not be amended except in a writing signed by both Parties.

12.           Proprietary Information.

Partner acknowledges that, in the course of performing its duties hereunder, Smart Online may provide to Partner certain information pertaining to the Services that Smart Online considers proprietary and confidential in nature.  Partner agrees that it will not, and will cause its officers, directors and employees not to, disclose any material, non-public information pertaining to the Services provided to Partner by Smart Online in connection with this Agreement, except for the purposes of Partner performing its obligations under this Agreement.  As per Mutual Non Disclosure Agreement – Exhibit B.

13.           Binding Effect.

This Agreement shall be binding upon, and shall enure to the benefit of, the Parties and each of their respective successors and assigns.

14.   Notices.

Any notices required or permitted to be sent under this Agreement shall be served personally or by overnight courier, or by registered or certified mail, return receipt requested, to the addresses stated below for Partner and for Smart Online or another address provided by notice.  Notices shall be effective upon receipt, refusal of receipt or upon determination that delivery is not possible.

	
To Partner at:

	  	
With a copy to:

	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	
To Smart Online at:

	  	  	  
	  	  	  	  
	  	
Smart Online, Inc.

	  	  
	  	
4505 Emperor Blvd.

Suite 320

Durham, NC 27703

	  	  
	  	
Attn:  Robert Hancock

	  	  

  

  

  

15.           Confidentiality.

Partner and Smart Online shall enter into a Mutual Non Disclosure Agreement in the form of Exhibit B, attached hereto and made a part hereof.

16.           Survival.

Any provision of this Agreement which by its terms imposes continuing obligations on the parties, including but not limited to Sections 5, 6, 7, 8, 9, 12, 14, and 15, shall survive the expiration, cancellation, rescission or termination of this Agreement.  Additionally, any provisions relating to the enforcement of any of the surviving provisions and any remedies available under this Agreement shall also survive termination, cancellation, expiration and/or rescission of this Agreement.

17.           Severability.

If any provision of this Agreement is illegal, unenforceable or void the remainder of the Agreement will not be affected.

IN WITNESS WHEREOF, the Parties hereto have duly executed this Agreement as of the date and year first above written.

SMART ONLINE, INC.

	 	 	 	 	 	 
	By:	
/s/ Jon W. Campbell

	 	By:	
/s/ Robert Hancock

	 
	 	
Name: Jon W. Campbell

	 	 	
Name: Robert Hancock 

	 
	 	
Title:   PRES/CEO 

	 	 	
Title: VP Sales

	 
	 	 	 	 	 	 
	 	Dated: May 24, 2013 	 	 	Dated: May 24, 2013	 

 

  

  

  

 

Exhibit A

PROGRAM

Partner shall market the MobileSmith platform as well as custom application development for Android/iOS smartphones and tablets along with custom mobile website design, development, and delivery. To initiate the partnership partners will agree to the following:

	
·  

	
Specific activities that the partner will undertake to market and sell Smart Online products and services.  These will be identified during the initial 30 days after partnership is initiated through signing of this document.  This will be known as the “go to market plan”.

	
·  

	
Partner will provide, at Smart Online’s request, a list of any ongoing opportunities along with their status.

	
·  

	
In the case of a sales conflict (both parties are talking to the same opportunity) the companies will rely on a first contact rule to resolve the conflict.  Smart Online reserves the right to reject this at its own convenience.

	
·  

	
All proposals and pricing submissions to prospective clients will be approved by Smart Online in advance of submission to the prospective client.

	
·  

	
Pricing schedules etc.. will be completed on a case by case basis for each opportunity.  Should a firm pricing schedule be created it will be added as an addendum to this agreement in the future.

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