Document:

ex10-23.htm

    

     

     Exhibit 10.23
 

    

     

     AGREEMENT 

     

     BETWEEN 

     

     VEMICS
INC 

     

     AND 

     

     THE
PULMONARY HYPERTENSION ASSOCIATION 

    

     

     This
AGREEMENT, consisting of the terms and conditions set forth below and the
attached exhibits, each of which is incorporated into and made a part hereof by
this reference ( ''Agreement''), is entered into as of June 28, 2007, (the
''Effective Date''), by and between Vemics, Inc a Nevada corporation
(''VEMICS''), having its principal place of business at 523 Avalon Gardens
Drive, Nanuet, New York 10954 and The Pulmonary Hypertension Association, Inc (
The Association), a Florida non-profit corporation having its principal place of
business at 801 Roeder Rd, Silver Spring, Maryland 20910. 

     

     BACKGROUND 

     

     VEMICS
and The ASSOCIATION are both involved in serving the medical community with
certain educational and other complementary services. VEMICS provides
connectivity for distribution of information and knowledge over its iMedicor
Portal and other technology platform(s) and interface connections; and The
ASSOCIATION provides community to its membership, connectivity to its membership
base, access to content and presenters of clinically relevant information for
medical professional, The Associations, societies and accreditation
bodies,  companies and other entities that would be interested in
utilizing The ASSOCIATION’S services and access to its membership as approved by
its Board of Directors. The parties will work together to introduce The
ASSOCIATION’S medical membership to the iMedicor Portal which will allow members
to exchange HIPPA compliant medical records, invite their community into the
Portal for collaboration, referrals and consults. The iMedicor portal will also
offer additional services such as, but not limited to access to CME and CEU
accredited educational programs, offered in a variety of formats, e-prescribing
services, and a variety of educational resources, The Vemics Live Access visual
communication service and the NuScribe voice recognition transcription service.
The basic iMedicor service of HIPPA compliant electronic transfer of medical
records, community, referrals and consultations will be a free service to The
ASSOCIATION’S medical membership. Upgrades to additional services such as the
LiveAccess and the Transcription service will be available at a modest premium
(expected to be priced at approximately $100.00). The combined iMedicor Portal
services will provide a unique, electronic, internet based communications system
solution for delivery of HIPPA compliant transfer of medical records and
reports, access to educational / training content and consultation,
collaboration and business meetings. 

     

     The
definition of the Education / Medical Market, for the purposes of this
Agreement, is specifically intended to include those individuals and/or
organizations, professional societies, physicians, allied health care
professionals, caregivers, teachers, students and families involved in the care
and development of people seeking treatment, advice or other services within the
field of pulmonary hypertension.  (Hereinafter referred to as “Medical
Market”). 

     

     NOW, THEREFORE, in
consideration of the mutual covenants and agreements contained in this
Agreement, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, VEMICS and The ASSOCIATION agree
as follows: 

     

    

    
      
         

      

      
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     TERMS
AND CONDITIONS 

     

      1.
Appointment; Territory; Limitations; Relationship of Parties 

     

     (a)
Appointment 

     

     Subject
to all of the terms and conditions in this Agreement, VEMICS hereby appoints The
ASSOCIATION to act, during the term of this Agreement, as its non-exclusive
global representative authorized to offer the iMedicor Portal and any other
VEMICS' Products and Services (the ''VEMICS Services'') as approved by The
ASSOCIATION’S Board of Directors to the membership of The ASSOCIATION (''The
ASSOCIATION Membership'') specifically in the Medical Market (as defined
herein). The ASSOCIATION hereby accepts said appointment. 

     

     (b)
Territory 

     

     The
ASSOCIATION shall be authorized to offer the iMedicor Portal and other approved
VEMICS Services globally. 

     

     (c)
No Restrictions on a Party's Activities 

     

     Each
party acknowledges that this Agreement is non-exclusive and, except as expressly
set forth in section 1(f) of this Agreement, nothing in this Agreement shall
limit in any manner any party's marketing, distribution or revenue generating
activities. 

     

     (d)
Freedom of Action; Certain Restrictions 

     

     Except
as provided in section 1(f) of this Agreement, each party may directly or
indirectly (through The ASSOCIATION or otherwise) market, sell, offer or provide
any of its respective products or services to any customer within the Territory
and during or after the Term. 

     

     (e)
No Agency 

     

     VEMICS
and The ASSOCIATION each acknowledge and agree that the relationship established
by this Agreement is that of independent contractors, and nothing contained in
this Agreement shall be construed to: (i) give either party the power to direct
or control the day-to-day activities of the other; (ii) deem the parties to be
acting as co-owners or otherwise as participants in a joint ownership
undertaking; or (iii) permit either party or any of either party's officers,
directors, employees, agents or representatives to create or assume any
obligation on behalf or for the account of the other party for any purpose
whatsoever. 

     

     (f)
Mutual Non- Exclusivity 

     

     Vemics
hereby grants The ASSOCIATION the non-exclusive right to offer its products and
services globally to its membership specifically and limited to the Medical
Market as defined herein. 

     

    

    
      
         

      

      
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      2.
License Grant; Restrictions; Customer Agreements 

     

     (a)
License Grant 

     

     Subject
to all terms and conditions of this Agreement, VEMICS hereby grants to The
ASSOCIATION during the Term of this Agreement the
non-exclusive,  nontransferable right and license to offer its
iMedicor service to The ASSOCIATION'S membership together with all related
software (the ''Software'') and other intellectual property, and documentation
(the ''Documentation'') that are necessary or appropriate to enable The
ASSOCIATION to provide VEMICS Services (the VEMICS Software and such other
intellectual property and the Documentation are collectively sometimes referred
to as ''VEMICS Intellectual Property'') to The ASSOCIATION’S
membership. 

     

     (b)
License Restrictions 

     

     The
ASSOCIATION shall not appoint any other person, firm, or entity as a
sub-distributor or agent for VEMICS Services without obtaining advance written
approval from VEMICS. The ASSOCIATION shall not, for itself, for any affiliate
of The ASSOCIATION or for any third party: sell, sublicense, assign, or transfer
the Software or any Documentation, except as permitted under this
Agreement.  Furthermore, The ASSOCIATION agrees that is shall not
decompile, disassemble, or reverse engineer the VEMICS
Software. 

     

     (c)
Membership Terms and Conditions; Right of VEMICS to Restrict
Content 

     

     All
use of VEMICS Services by The ASSOCIATION will be subject to the execution and
delivery by each of The ASSOCIATION medical membership of a written, binding
agreement that contains, at a minimum, the relevant terms and conditions set
forth in this Agreement transaction and the VEMICS Standard Terms and Conditions
as well as no terms or conditions that are inconsistent with the terms or
conditions contained in this Agreement (the ''Membership Agreement''). This
documentation occurs upon individual registration at the iMedicor Portal site
the first time The ASSOCIATION’S member attempts to use the portal.
Notwithstanding any registration of a prospective member, if VEMICS subsequently
becomes aware that the content of any of The ASSOCIATION'S members is illegal it
shall notify The ASSOCIATION thereof and unless the illegal content is removed
within Five (5) business days after such notice, VEMICS may take steps to
prevent such illegal content from being routed to, passed through or stored on
or utilized within VEMICS' network. VEMICS shall promptly notify The ASSOCIATION
and the applicable member of such removal of any of The ASSOCIATION’S membership
content pursuant to the foregoing provisions. 

     

     3. Marketing Efforts; Promotional
Materials 

     

     (a)  Efforts 

     

     The
ASSOCIATION shall use its best reasonable commercial efforts to: (i) offer and
support VEMICS Services, specifically the iMedicor Portal site to its membership
in the Territory; (ii) dedicate adequate resources, financial and otherwise, and
maintain facilities and staff, to market, resell and support VEMICS Services in
accordance with The ASSOCIATION'S obligations under this Agreement, in a timely,
diligent and professional manner using competent personnel; (iii) keep VEMICS
informed as to any problems encountered by The ASSOCIATION'S membership or by
The ASSOCIATION with the VEMICS Services or any VEMICS Intellectual Property,
and Vemics will communicate to The ASSOCIATION any resolution or proposed
resolutions relating to such problems. All information concerning The
ASSOCIATION'S Membership shall be deemed Confidential Information of The
ASSOCIATION in accordance with the provisions of Section 10 of this
Agreement. 

     

     (c)
Promotional Materials; Marketing 

     

     VEMICS
will provide The ASSOCIATION with a reasonable amount of sales and marketing
literature relating to the VEMICS Services specifically the iMedicor Portal
site. The exact form and quantity of such literature will be determined jointly
by VEMICS and The ASSOCIATION and be based upon the needs and dictates each of
specific project requirements. The ASSOCIATION shall adhere to VEMICS'
Guidelines, Rules and Procedures then in effect, and The ASSOCIATION shall not
make any representations or statements regarding VEMICS Services other than
those contained in the sales and marketing literature and promotional materials
provided to The ASSOCIATION by VEMICS, without the prior written approval of
VEMICS. Upon reasonable advance notice from VEMICS, The ASSOCIATION shall
discontinue use of any marketing literature or promotional materials that VEMICS
or The ASSOCIATION no longer deems acceptable. 

     

     (d)
Quality Control 

     

     Each
party acknowledges the importance of upholding the good reputation of the other
party and its respective products and services. Accordingly, each party agrees
that it will maintain at all times during the Term of this Agreement the highest
quality controls, business practices and ethics in performing its obligations
and exercising its rights under this Agreement and will comply with all
applicable laws and regulations. 

     

    
      
         

      

      
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     (e)
Publicity 

     

     On or
about the Effective Date, the parties agree to issue a joint press release
announcing the relationship contemplated by this Agreement. The press release
shall be subject to the written approval of each party, which approval shall not
be unreasonably withheld or delayed. During the term of this Agreement, subject
to the restrictions contained in Section 5 below, each party may post on its web
site the other party's logo and/or a hyperlink to the other party's web site, to
use the other party's name in connection with proposals to other prospective
customers and otherwise refer to the other party and the co-branded service
offering contemplated herein in print or electronic form for marketing or
reference purposes. 

     

     (f)
Customers / Members 

     

     Subject
to VEMICS obtaining specific advance written consent from The ASSOCIATION’S
membership, VEMICS shall be entitled to reference The ASSOCIATION'S Membership,
in general, not specific (names addresses etc) on VEMICS' web site and in
marketing materials as a VEMICS Services client. All data pertaining to any of
The ASSOCIATION’S membership shall be deemed Confidential Information in
accordance with the provisions of Section 10 of this Agreement. In addition, no
party shall use any data pertaining to any of The ASSOCIATION’S membership in a
manner that is inconsistent with VEMICS' published privacy policy, the
applicable Customer Agreement, or applicable legal
requirements. 

     

     The
ASSOCIATION membership shall be such medical professional who are members or
associates of The ASSOCIATION at the time of the signing of this Agreement and
those customers that are introduced to the VEMICS System (specifically iMedicor)
solely by The ASSOCIATION efforts as the result of this
Agreement.  VEMICS customers shall be such customers who are customers
of VEMICS at the time of the signing of this Agreement and those customers that
are introduced to the VEMICS System solely by VEMICS efforts as the result of
this Agreement. In the event that a Customer is presently and/or in the future a
customer or member of both parties to this Agreement, as defined herein, then
they shall remain deemed jointly Customers or members of both The ASSOCIATION
and VEMICS. 

     

      4.
The ASSOCIATION Use of LiveAccess, Personnel Training; Customer
Support 

     

     (a)
Use of the LiveAccess System 

     

     As
part of this agreement, Vemics will offer The ASSOCIATION up to 27 concurrent
users in its LiveAccess Visual Communications System at no cost to The
ASSOCIATION. The use of this system is to familiarize The ASSOCIATION’S Board of
Directors, Executive Committees and other Committees with the LiveAccess System.
This offer includes 27 Kits (Camera, Microphone and Headset with Microphone) and
unlimited use of the system for one year and customization of the server to
reflect The ASSOCIATION’S look, feel and logo. After the one year anniversary
Vemics, at its sole discretion can continue the current offer or offer the
continued service to The ASSOCIATION for a fee not to exceed $299.00 per license
initial fee plus $100.00 per month for unlimited use per
license. 

     

     (b) Training 

     

     VEMICS
shall provide to The ASSOCIATION’S designated authorized users of the LiveAccess
System, at VEMICS' training facility, or, on-line, or, if VEMICS elects, at The
ASSOCIATION’S facilities: (i) a reasonably sufficient number of training
sessions and source training material to reasonably enable The ASSOCIATION'S
authorized users and support staff to become knowledgeable about the
capabilities and operation of, and support for, the VEMICS LiveAccess Service.
Such training to include, at The ASSOCIATION'S request, a reasonable number of
joint VEMICS/The ASSOCIATION on-site calls, and (ii) technical consulting
services and training to reasonably ensure that The ASSOCIATION has the internal
capability to, among other things, use the service to The ASSOCIATION'S
authorized users. Each party shall be responsible for the travel, lodging and
meal expenses of its employees who attend any training session, if
required. 

     

     (b)
Customer Support 

     

     VEMICS
will provide technical support to The ASSOCIATION and their customers to
whatever extent is required to successfully deploy the LiveAccess System for its
internal use. VEMICS shall provide technical support directly to any of The
ASSOCIATION’S authorized users in accordance with VEMICS' standard technical
support terms and conditions. 

     

     5.
Content Responsibility; Intellectual Property Rights 

     

     (a)
Customer Content 

     

     In the
event that The ASSOCIATION becomes aware of any of The ASSOCIATION’S Member
Content (the ''Member Content'') that is being placed on and/or is utilizing the
VEMICS Service: (a) violates or infringes upon the intellectual property or
other rights of any third party, (b) distributes any libelous, defamatory,
pornographic or obscene material, or (c) violates any laws or regulations
applicable to such Member Content, The ASSOCIATION shall notify the applicable
member of the violation and request that such member remove such Member Content
so that it will not be routed to or pass through VEMICS' network. If such member
fails to comply with The ASSOCIATION’S request within a reasonable period of
time, The ASSOCIATION shall notify VEMICS of the
non-compliance.  VEMICS may then remove such Member Content pursuant
to and in manner set forth in the Membership Agreement. The ASSOCIATION’S
Membership shall be solely responsible for maintaining the availability of the
member computer and network systems, the connectivity of such computers and
network systems to the Internet, and all Member Content, IP addresses, domain
names, hyperlinks, databases, applications and other resources necessary for The
ASSOCIATION’S Membership to access the VEMICS Services. 

     

     

    
      
         

      

      
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     (b)
The ASSOCIATION’S Content 

     

     (i)
The ASSOCIATION’S Conditions of
Use: The ASSOCIATION shall be solely and exclusively responsible for (1)
all The ASSOCIATION’S content and activity; (2) obtaining legal written
permission from the right holder to display and/or utilize any material on the
Vemics System or through its other services (specifically iMedicor Portal); and
(3) ensuring that The ASSOCIATION content of the web site does not violate the
laws of the jurisdiction where the content is displayed. The ASSOCIATION
furthermore hereby agrees to comply with the requirements of the Communications
Decency Act (CDA) and the Digital Millennium Copyright Act (DMCA), and shall
require its subscribers in writing to so comply. 

     

     (ii)
Limitations on The ASSOCIATION
Content 

     

     The
ASSOCIATION shall not intentionally place or cause to be placed on the Vemics
System unacceptable material or activity which includes, but is not limited
to: 

     

     (A)
defamatory or other tortuous activity; 

     (B)
criminal activity, including but not limited to theft of trade secrets, fraud,
child pornography, trafficking in obscene material, violation of US export
provisions, drug dealing, gambling, harassment, stalking, spamming, hacking,
sending of viruses or other harmful files, or illegal posting of computer
passwords or computer code for the purpose of circumventing copyright security
measures; 

     (C)
infringing activity including, but not limited to, the unauthorized display of
confidential, secret, or other proprietary material, trademark infringement,
copyright infringement, or patent infringement. 

     

     

     (iii) Compliance with Lawful Authorities:
VEMICS will comply with all subpoenas and court orders that appear to be
lawful and valid, including subpoenas and court orders requesting information
about The ASSOCIATION or its use of the Service, without prior notice to The
ASSOCIATION. VEMICS reserves the right to report activity that it believes to be
potentially criminal to the appropriate law enforcement
agencies. 

     

     (iv)
Indemnification against Third
Party Claims: 

     

     (A) The ASSOCIATION agrees to
defend, indemnify, and hold harmless VEMICS, its affiliates and the respective
officers, directors, employees, and agents, from and against all actions, third
party civil or criminal claims, liabilities, losses, damages and expenses,
including but not limited to reasonable attorneys' fees, arising out of or
relating to the use of the VEMICS System material supplied by The ASSOCIATION
for use on the VEMICS System or, arising out of or relating to any content
provided by The ASSOCIATION or by The ASSOCIATION'S use of VEMICS's services.
Such indemnification shall operate whether or not VEMICS has been put on notice
of a claim. 

     

     (B) VEMICS agrees to defend,
indemnify, and hold harmless The ASSOCIATION, its affiliates and its and their
respective officers, directors, employees, and agents, from and against all
actions, third party civil or criminal claims, liabilities, losses, damages and
expenses, including but not limited to reasonable attorneys' fees, arising out
of or relating to the use of the VEMICS System supplied by VEMICS. Such
indemnification shall operate whether or not The ASSOCIATION has been put on
notice of a claim. 

     

     (c)
Intellectual Property and VEMICS Services 

     

     As
between VEMICS and The ASSOCIATION or any Member of The ASSOCIATION’S, VEMICS
shall own all right, title and interest in and to the Intellectual Property and
VEMICS Services. The ASSOCIATION acknowledges that the Software, Documentation,
and VEMICS Services includes proprietary information and trade secrets which are
the sole and exclusive property of VEMICS or its licensors and that the
Software, Documentation and VEMICS Services are or may be protected by patent,
copyright, trade secret and/or similar laws and certain international treaty
provisions. The following shall not, however, be considered to be proprietary
information and trade secrets belonging to VEMICS: (i) information which is
publicly known or which becomes publicly known through no fault of The
ASSOCIATION’S; (ii) information which is lawfully obtained by The ASSOCIATION
from a third party; and (iii) information which is the lawful possession of The
ASSOCIATION prior to such information having been initially disclosed by VEMICS
pursuant to this Agreement. This Agreement does not transfer or convey to The
ASSOCIATION or any of The ASSOCIATION’S Members or any third party any right,
title or interest in or to the Intellectual Property of VEMICS Services or any
associated intellectual property rights, but only a limited right of use which
is revocable in accordance with the terms of this Agreement and any Membership
Agreement. Nor does this Agreement transfer any ownership or copyright interest
in any intellectual property owned by The ASSOCIATION to VEMICS except as
provided for in this Agreement. 

     

    
      
         

      

      
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     6.
Marks; Usage Restrictions 

     

     Either
party's use, display or reference to the other party's proprietary indicia,
trademarks, service marks, trade names, logos, symbols and/or brand names
(collectively ''Marks'') shall be subject to the advance written approval of
that party, which approval shall not be unreasonably withheld. Neither party may
remove, destroy or alter the other party's Marks. Each party agrees that it
shall not challenge or assist others in challenging the rights of the other
party or its suppliers or licensors in the Marks or the registration of the
Marks, or attempt to register any trademarks, service marks, trade names, logos,
symbols, brand names or other proprietary indicia confusingly similar to the
Marks. All use of a party's Marks, including but not limited to use of any
co-branded logo comprised of each party's Marks, shall be subject to such
party's logo and trademark usage guide, as provided to the other party and as
the same may be updated from time to time. Neither party grants any rights in
the Marks or in any other trademark, trade name, service mark, business name or
goodwill of the other except as expressly permitted hereunder or by separate
written agreement of the parties. 

     

     7.
Fees; Pricing; Credits and Payment Terms 

     

     (a)
Prices; Fees 

     

     VEMICS'
and The ASSOCIATION, together, agree that any project both parties undertake
that results in generation of revenue will be agreed to in advance in terms of
scope of work, time lines, deliverables, designated activities and financial
considerations, royalties and any other fees identified as an amendment to this
agreement on an individual basis. 

     

      8.
Representations and Warranties 

     

     (a)
VEMICS's Representations and Warranties 

     

     VEMICS
represents and warrants that: (i) VEMICS and its licensors now and will
throughout the Term, own or possess the necessary rights, title and licenses in
and to the Intellectual Property and to operate the VEMICS Products and/or
Services, (ii) VEMICS has and will have throughout the Term the right to enter
into this Agreement and to perform its obligations hereunder, (iii) VEMICS has
obtained any and all consents, approvals and other authorizations necessary for
the performance of its obligations hereunder, (iv) the Intellectual Property and
the VEMICS Products and/or Services do not and will not throughout the Term
violate or infringe upon the intellectual property or other legal rights of any
other party, (v) the operation of the VEMICS Products and/or Services is and
will be throughout the Term in compliance with all applicable, material laws,
rules and regulations of all relevant governmental authorities, and (vi) the
VEMICS Products and/or Services will be operated throughout the Term
substantially in conformity with its specifications. 

     

     (b) The ASSOCIATION’s Representations and
Warranties 

     

     The
ASSOCIATION represents and warrants that: (i) The ASSOCIATION has and will have
throughout the Term the right to enter into this Agreement and to perform its
obligations hereunder, and (ii) The ASSOCIATION has obtained any and all
consents, approvals and other authorizations necessary for the performance of
its obligations hereunder. 

     

      (c)
Warranty Disclaimer 

     

     EXCEPT
AS SPECIFICALLY PROVIDED IN THIS SECTION 8, BOTH PARTIES EXPRESSLY DISCLAIM ALL
WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, TO THE FULLEST EXTENT PERMITTED BY
LAW, INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. NEITHER PARTY SHALL MAKE
ANY REPRESENTATIONS OR WARRANTIES ON THE OTHER'S BEHALF WITHOUT SUCH OTHER
PARTY'S EXPRESS WRITTEN CONSENT. 

     

     9.
Confidential Information. 

     (a)
"Confidential Information" as used in this Agreement shall mean any and all
technical and non-technical information including but not limited to patent,
copyright, trade secret, and proprietary information, techniques, sketches,
drawings, models, inventions, know-how, processes, apparatus, equipment,
algorithms, software programs, software source documents, and formulae related
to the current, future, and proposed products and services of each of the
parties and it’s affiliates, and includes, without limitation, each of the
parties and their affiliates information concerning research, experimental work,
development, design details and specifications, engineering, financial
information, procurement requirements, purchasing, manufacturing, customer
lists, business forecasts, sales and merchandising, and marketing plans and
information. "Confidential Information" also includes proprietary or
confidential information of any third party that may disclose such information
to either party in the course of the other party's business. All Confidential
Information disclosed both orally and in writing by the disclosing party
("Discloser") will be considered Confidential Information by the receiving party
("Recipient") and subject to terms of this Agreement, even if such information
is not conspicuously designated as "Confidential" or even when provided orally
and not identified as confidential at the time of disclosure. 

     

    
      
         

      

      
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     (b)   Recipient
hereby agrees that it will not make use of, disseminate, or in any way disclose
any Confidential Information of the Discloser to any person, firm, or business,
except to the extent necessary for negotiations, discussions, and consultations
with personnel and/or authorized representatives of the Discloser, any purpose
of the Discloser authorized by this agreement and any purpose the Discloser may
hereafter authorize in writing. Recipient hereby also agrees that it will use
the Confidential Information disclosed by Discloser for informational purposes
only. Recipient hereby further agrees that it shall not use the Confidential
Information of Discloser in the production and/or the providing of any products
and/or services now or in anytime in the future, other than permitted under this
Agreement. 

    

     (c)
Recipient agrees that it shall treat all Confidential Information of Discloser
with the same degree of care as it accords to its own Confidential Information,
and Recipient represents that it exercises reasonable care to protect its own
Confidential Information. 

    

     (d)
Recipient hereby agrees that it shall disclose Confidential Information of the
Company only to those of its officer(s), manager(s), and/or employee(s) who need
to know such information and certifies that such officer(s), manager(s), and/or
employee(s) have previously agreed, either as a condition of employment or in
order to obtain the Confidential Information, to be bound by terms and
conditions substantially similar to those of this Agreement. 

    

     (e)
Recipient will immediately give notice to Discloser of any unauthorized use or
disclosure of the Confidential Information. Recipient agrees to assist Discloser
in remedying any such unauthorized use or disclosure of the Confidential
Information. 

    

     (f)
Upon the request of the Discloser and/or termination of this Agreement, the
Recipient will promptly return all confidential information furnished hereunder
and all copies thereof. 

    

     (g)
Employees. During the term of this Agreement and for a period of two (2) years
thereafter, The ASSOCIATION will not directly or indirectly: (a) solicit or
encourage any employee of VEMICS to leave the employ of VEMICS; or (b) hire any
employee who has left the employ of VEMICS if the hiring is proposed to occur
within one year after the termination of the employee's employment with VEMICS.
In addition, during the term of this Agreement and for a period of two (2) years
thereafter, VEMICS will not directly or indirectly: (a) solicit or encourage any
employee of The ASSOCIATION to leave the employ of The ASSOCIATION; or (b) hire
any employee who has left the employ of The ASSOCIATION if the hiring is
proposed to occur within one year after the termination of the employee's
employment with The ASSOCIATION; (c) solicit the medical membership of the The
Association for any reason. 

    

     (h)
Consultants. During the term of this Agreement and for a period of two (2) years
thereafter, The ASSOCIATION will not directly or indirectly solicit or encourage
any consultant then under contract with the VEMICS to cease work for VEMICS.
During the term of this Agreement and for a period of two (2) years thereafter,
VEMICS will not directly or indirectly solicit or encourage any consultant then
under contract with The ASSOCIATION to cease work for The
ASSOCIATION. 

    

     (i)  Clients.  For
a period of two (2) years after the termination of this
Agreement,  For a period of two (2) years after the termination of
this Agreement, Vemics will not directly or indirectly solicit any customer
introduced by The ASSOCIATION. For purposes of this Agreement, VEMICS Customers
shall not include those Companies and/or Individuals that The ASSOCIATION had a
documented business relationship with prior to the inception of this Agreement
and/or Customers that were not introduced to The ASSOCIATION by VEMICS. In
addition, for purposes of this Agreement, The ASSOCIATION Customers shall not
include those Companies and/or Individuals that VEMICS had a documented business
relationship with prior to the inception of this Agreement and/or Customers that
were not introduced to VEMICS by The ASSOCIATION. 

    

     (j)
Remedies. In the event of a breach or a threatened breach of any of the
Provisions and/or Covenants set forth in this Section 9 of the Agreement above
(the ''Covenants''), the non-breaching party will, in addition to the remedies
provided by law, have: 

    

     (1)
the right and remedy to have the Covenants specifically enforced by any court
having equity jurisdiction, it being acknowledged and agreed that any material
breach of any of the Covenants will cause irreparable injury to the
non-breaching party and that money damages will not provide an adequate remedy
to the non-breaching party; and 

    

     (2)
the right and remedy to require a person to account for and pay over to the
non-breaching party all compensation, profits, moneys, accruals, increments or
other benefits (collectively the ''Benefits'') derived or received by the
Breaching Party as a result of any transactions constituting a breach of any of
the Covenants, and Breaching Party hereby agrees to account for and pay over the
Benefits to the non-breaching party. 

    

     (k)
The obligations of the parties set forth in this paragraph 10 of this Agreement
shall survive the termination of this agreement. 

     

    

    
      
         

      

      
         7 

        
          

        

      

      
         

      

    

     

      10.
Term and Termination 

     

     (a)
Term; Initial Term; Renewals 

     

     This
Agreement shall become effective as of the Effective Date and remain in full
force and effect for a period of six (6) months. , (the ''Initial Term''). At
any time pior to  the expiration of the Initial Term, this Agreement
may be renewed by The Association  for a one year additional
term  (''Renewal Term'').  The Initial Term, together with
any and all Renewal Terms, is sometimes collectively referred to as the
''Term.'' 

     

     (b)
Termination Upon Default 

     

     Either
party may terminate this Agreement in the event that the other party materially
breaches the terms of the Agreement or defaults in performing any obligation
under this Agreement and such breach or default continues unremedied for a
period of 30 days following written notice of default. 

     

     (c)
Termination Upon Insolvency 

     

     This
Agreement shall terminate, effective upon delivery of written notice by a party:
(i) upon the institution of insolvency, receivership or bankruptcy proceedings
or any other proceedings for the settlement of debts of the other party; (ii)
upon the making of a general assignment for the benefit of creditors by the
other party; or (iii) upon the dissolution of the other party. 

     

     (d)
Effect of Termination 

     

     Except
for the provisions in Sections   8, 9 and 12 herein, all rights
and obligations of the parties shall cease upon termination of this Agreement.
The term of any license or rights granted hereunder shall expire upon expiration
or termination of this Agreement and all kits that have not been paid for will
either be returned or paid for at such time. 

     

    

            
 11. Jurisdiction
Disputes 

    

         (a)
This Agreement shall be governed by the laws of the State of New
York. 

    

         (b)
All disputes hereunder shall be resolved in the applicable state or federal
courts in the County of Rockland in the State of New York. The parties consent
to the jurisdiction of such courts, agree to accept service of process by mail,
and waive any jurisdictional or venue defenses otherwise
available. 

    

     

      12.
General Indemnification 

     

     (a)
Limited Covenant to Defend Infringement Claims by Third
Parties. 

     

     Each
party (the ''Indemnitor''), at its own expense and subject to the terms and
conditions of this Section 12, will (i) defend claims brought against the other
party, its permitted assignees and licensees, agents, officers and employees
(the ''Indemnitee'') by third parties (other than affiliates of the Indemnitee)
that, if true, would constitute a breach by the Indemnitor of its
representations and warranties set forth in this Agreement, and (ii) will
indemnify and hold the Indemnitee harmless from and against any damages to real
or tangible personal property and/or bodily injury to persons, including death,
resulting from the negligence or willful misconduct of the employees or agents
of the Indemnitor. 

     

      (i)
Right to Replace 

     

     If a
claim of infringement under this Section occurs, or if Indemnitor determines
that a claim is likely to occur, Indemnitor will have the right, in its sole
discretion, to either: (i) procure for Indemnitee and its Customers the right or
license to continue to use the Software free of the infringement claim; or (ii)
replace or modify the Software to make it non-infringing provided that the
replacement software substantially conforms to Indemnitor's then-current
specification for the Software. If these remedies are not reasonably available
to Indemnitor, Indemnitor may, at its option, terminate this Agreement without
liability, other than liability that may arise under Section 12(b), and
Indemnitor shall return any fees paid by Indemnitee in respect of Indemnitor
Services not provided. 

     

    
      
         

      

      
         8 

        
          

        

      

      
         

      

    

     

     (ii)
Limitations 

     

     Despite
the provisions of this Section 12, Indemnitor has no obligation with respect to
any claim of infringement that is based upon or arises out of: (i) any
modification to the Software if the modification was not made by or at the
written direction of Indemnitor; or (ii) the use or combination of the Software
with any hardware, software, products, data or other materials not specified or
provided by Indemnitor; or (iii) Indemnitee’s or any Customer's use of the
Indemnitor Services other than in accordance with the Software documentation or
Indemnitor’s written directions or policies. 

     

     (b)
Conditions for Defense. 

     

     To be
entitled to defense by the Indemnitor against a third-party infringement
claim: 

     

     (i)
Indemnitee shall advise Indemnitor of the claim as contemplated by Section (d);
and 

     

     (ii)
Indemnitor shall have the sole right to control the defense or settlement of the
claim, in litigation or otherwise, provided that Indemnitor will not enter into
a settlement on behalf of Indemnitee without Indemnitee's prior written
approval, such approval not to be unreasonably withheld. 

     

     (c)
Expenses and Monetary Awards. 

     

     If a
third-party claim, of which Indemnitor was notified and which Indemnitor has a
duty to defend in accordance with this Section 12, is brought, and if such claim
is sustained in a final judgment from which no further appeal is taken or
possible, then Indemnitor will pay or otherwise satisfy any monetary award
entered against Indemnitee as part of such final judgment to the extent such
award is adjudged in such final judgment to arise from such infringement,
without regard to limitation of liability set forth in Section
11. 

     

     (d)
Notices. 

     

     An
Indemnitee seeking to be defended against a claim under this Section 12, shall
notify the Indemnitor within thirty (30) days of the assertion of any claim(s)
or discovery of any fact upon which the Indemnitee intends to base a claim for
defense or indemnification. The Indemnitee's failure to so notify the Indemnitor
will not relieve the Indemnitor from any liability under this Agreement to the
Indemnitee with respect to defense or indemnity with respect to such claim(s),
except to the extent the Indemnitor demonstrates that the defense of such claim
was prejudiced by the failure to so notify. 

     

     (e)
Counsel. 

     

     If the
Indemnitor defends the Indemnitee in a lawsuit, arbitration, negotiation, or
other proceeding concerning a claim pursuant to this Section 12, then the
Indemnitee may engage separate counsel, at the Indemnitee's expense, to monitor
and advise the Indemnitee about the status and progress of the
matter. 

     

     (f)
Exceptions to Duties to Defend and Indemnify. 

     

     Except
as may be otherwise expressly provided in this Agreement, neither party will be
required to defend or indemnify the other party with respect to losses, damages
or expenses finally adjudged to have been caused by the indemnified party's own
negligence or willful misconduct. 

     

      13.
Limitation of Liability and Damages; Insurance 

     

     (a)
Limitation of Liability 

     

     EXCEPT
FOR LIABILITY ARISING OUT OF A PARTY'S INDEMNIFICATION OBLIGATIONS WITH RESPECT
TO THIRD PARTY CLAIMS AND A BREACH OF THE PROVISIONS OF THIS AGREEMENT RELATING
TO CONFIDENTIAL INFORMATION AND TRADE SECRETS, EACH PARTY AGREES THAT IN NO
EVENT WILL THE OTHER PARTY OR ITS SUPPLIERS OR LICENSORS BE LIABLE, UNDER ANY
THEORY OF LIABILITY, HOWEVER ARISING, FOR ANY COSTS OF COVER OR FOR INDIRECT,
SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES OF ANY KIND (INCLUDING ANY LOSS OF
USE, INTERRUPTION OF BUSINESS, LOSS OF BUSINESS PROFITS, LOSS OF BUSINESS
INFORMATION, AND THE LIKE) ARISING OUT OF THIS AGREEMENT, EVEN IF SUCH PARTY HAS
BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THESE LIMITATIONS SHALL APPLY
DESPITE ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED WARRANTY OR
REMEDY. 

     

    
      
         

      

      
         9 

        
          

        

      

      
         

      

    

     

     (b)
Limitation of Damages 

     

     EXCEPT
FOR LIABILITY ARISING OUT OF A PARTY'S INDEMNIFICATION OBLIGATIONS WITH RESPECT
TO THIRD PARTY CLAIMS AND A BREACH OF THE PROVISIONS OF THIS AGREEMENT RELATING
TO CONFIDENTIAL INFORMATION AND TRADE SECRETS, IF THERE SHALL BE ANY LIABILITY
OF ONE PARTY TO THE OTHER THAT ARISES OUT OF OR IS IN ANY WAY CONNECTED TO THIS
AGREEMENT, EACH PARTY'S AGGREGATE LIABILITY FOR ALL DAMAGES, LOSSES AND CAUSES
OF ACTION WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, EITHER
JOINTLY OR SEVERALLY, SHALL NOT EXCEED TEN THOUSAND DOLLARS ($10,000.00). EACH
PARTY ACKNOWLEDGES THAT THE OTHER IS NOT AN INSURER; THAT THE PAYMENTS MADE
HEREUNDER ARE BASED SOLELY ON THE VALUE OF THE SERVICES AND ARE NOT SUFFICIENT
TO WARRANT ASSUMING ANY RISK OF CONSEQUENTIAL OR OTHER DAMAGES DUE TO NEGLIGENCE
OR FAILURE TO PERFORM. DUE TO THE NATURE OF THE SERVICES TO BE PERFORMED, IT IS
IMPRACTICABLE AND EXTREMELY DIFFICULT TO FIX THE ACTUAL DAMAGES, IF ANY, WHICH
MAY RESULT (PROXIMATELY OR OTHERWISE) FROM NEGLIGENCE OR FAILURE TO PERFORM
UNDER THIS AGREEMENT. THIS LIMITATION OF LIABILITY REFLECTS AN ALLOCATION OF
RISK BETWEEN THE PARTIES IN VIEW OF THE FEES CHARGED, IS NOT A PENALTY, AND
SHALL BE EXCLUSIVE. THE LIMITATIONS IN THIS AGREEMENT SHALL APPLY DESPITE ANY
FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED WARRANTY OR REMEDY. 

     

     (c)
Insurance 

     

     VEMICS
AGREES TO MAINTAIN IN EFFECT DURING THE TERM, AT SUCH PARTY'S EXPENSE,
COMPREHENSIVE PROPERTY, CASUALTY AND GENERAL LIABILITY INSURANCE OF THE TYPES
AND AMOUNTS, AND COVERING SUCH RISKS AS ARE REASONABLE AND CUSTOMARY FOR
BUSINESSES ENGAGED IN A SIMILAR BUSINESS AND COVERING PROPERTIES SIMILAR TO THE
PROPERTIES OWNED, LEASED OR OPERATED BY VEMICS. IN ADDITION, VEMICS SHALL
MAINTAIN IN EFFECT DURING THE TERM AN ERRORS AND OMISSIONS POLICY INSURING
AGAINST ITS ERRORS AND OMISSIONS IN THE PERFORMANCE OF ITS SERVICES CONTEMPLATED
UNDER THIS AGREEMENT WITH COVERAGE OF AT LEAST FIVE MILLION DOLLARS AS TO A
SINGLE CLAIM AND FIVE MILLION DOLLARS AS TO ALL CLAIMS IN THE AGGREGATE. SUCH
INSURANCE COVERAGE WILL BE OBTAINED FROM REPUTABLE INSURANCE COMPANIES OR The
ASSOCIATIONS. UPON THE REQUEST OF The ASSOCATION, VEMICS SHALL PROVIDE VALID
CERTIFICATES OF INSURANCE. 

     

      14.
Miscellaneous 

     

     (a)
Compliance with Laws 

     

     Each
party agrees to comply with all applicable laws, regulations, and ordinances
relating to their performance hereunder. 

     

     (b)
Notices 

     

     Any
notice required or permitted hereunder shall be in writing and shall be
delivered as follows (with notice deemed given as indicated): (i) by personal
delivery when delivered personally; (ii) by established overnight courier upon
written verification of receipt; (iii) by facsimile transmission when receipt is
confirmed in writing; or (iv) by certified mail, return receipt requested, upon
verification of receipt. All notices must be sent to the following
addresses: 

    

    

     If to
VEMICS: 

     Fred
Zolla, CEO 

     Vemics,
Inc 

     523
Avalon Gardens Drive 

     Nanuet,
New York 10954 

    

     

     If to
The
ASSOCIATION: 

     Rino
Aldrighetti 

     President 

     Pulmonary
Hypertension Association, Inc 

     801
Roeder Rd 

     Silver
Spring, MD 20910 

     

     Either
party may change its contact person for notices and/or address for notice by
means of notice to the other party given in accordance with this
Section. 

     

     

    
      
         

      

      
         10 

        
          

        

      

      
         

      

    

     

     (c)
Assignment 

     

     Neither
party may, without the prior written consent of the other party, assign this
Agreement, in whole or in part, either voluntarily or by operation of law, and
any attempt to do so shall be a material default of this Agreement and shall be
void. Any change of control in the ownership of either party shall not be deemed
an assignment subject to the prohibitions of this Section. 

     

     (d)
Third Party Beneficiaries 

     

     This
Agreement is solely for the benefit of the parties and their successors and
permitted assigns, and, except as expressly provided herein or in any exhibit
hereto, does not confer any rights or remedies on any other person or
entity. 

     

     (e)
Governing Law and Arbitration 

     

     This
Agreement shall be interpreted according to the laws of the State of New York
without regard to or application of choice-of-law rules or principles. Any and
all disputes arising or related in any way to this Agreement shall be resolved
in accordance with the Commercial Rules of the American Arbitration Association
utilizing a panel of three (3) neutral arbitrators. The arbitration shall be
held in New York, New York. 

     

     (f)
Entire Agreement and Waiver 

     

     This
Agreement and any Exhibits hereto shall constitute the entire agreement between
VEMICS and The ASSOCIATION with respect to the subject matter hereof and all
prior agreements, representations, and statement with respect to such subject
matter are superseded hereby, including without limitation any non-disclosure
agreement previously executed between the parties. The terms of this Agreement
shall control in the event of any inconsistency with the terms of any Exhibit
hereto. This Agreement may be changed only by written agreement signed by both
VEMICS and The ASSOCIATION. No failure of either party to exercise or enforce
any of its rights under this Agreement shall act as a waiver of subsequent
breaches; and the waiver of any breach shall not act as a waiver of subsequent
breaches. 

     

     (g)
Severability 

     

     In the
event any provision of this Agreement is held by a court of other tribunal of
competent jurisdiction to be unenforceable, that provision will be enforced to
the maximum extent permissible under applicable law, and the other provisions of
this Agreement will remain in full force and effect. The parties further agree
that in the event such provision is an essential part of this Agreement, they
will begin negotiations for a suitable replacement provision. 

     

     (h)
Non-Disclosure of Agreement Terms 

     

     Neither
party shall disclose to third parties, other than its agents and representatives
on a need-to-know basis, the terms of this Agreement or any Exhibits hereto
without the prior written consent of the other party, except either party shall
be entitled to disclose (i) such terms to the extent required by law, and (ii)
the existence of this Agreement. 

     

     (i)
Force Majeure 

     

     If
either party is prevented from performing any of its obligations under this
Agreement due to any cause beyond the party's reasonable control, including,
without limitation, an act of God, fire, flood, explosion, war, strike, embargo,
government regulation, act(s) of terrorism, civil or military authority, acts or
omissions of carriers, transmitters, providers, vandals, or hackers (a ''force
majeure event'') the time for that party's performance will be extended for the
period of the delay or inability to perform due to such occurrence; provided
however, that if a party suffering a force majeure event is unable to cure that
event within 30 days, the other party may terminate this
Agreement. 

     

     (j)
Counterparts 

     

     This
Agreement may be executed in any number of counterparts, each of which, when so
executed and delivered, shall be deemed an original, and all of which shall
constitute one and the same Agreement. 

     

     (k)
Remedies 

     

     Except
as provided herein, the rights and remedies of each party set forth in this
Agreement are not exclusive and are in addition to any other rights and remedies
available to it at law or in equity. 

     

     (l)
Binding Effect 

     

     This
Agreement shall be binding upon and shall inure to the benefit of the respective
parties hereto, their respective successors and permitted
assigns. 

     

     (m)
Amendments 

     

     Amendments
to this Agreement, including amendments to any Exhibits, shall be effective only
if they are in writing and signed by both parties. 

     

    
      
         

      

      
         11 

        
          

        

      

      
         

      

    

     

     IN WITNESS WHEREOF, each of
the parties, by its duly authorized representative, has entered into this
Agreement as of the Effective Date. 

    

    

    

     VEMICS
INC. 

    

     By:
___________________       

            Fred
Zolla, CEO 

    

     THE
PULMONARY HYPERTENSION ASSOCIATION, INC. 

    

     By:  /s/ Rino
Aldrighetti           

            Rino
Aldrighetti, President 

     

     

     

    
      
         

      

      
         12ex10-24.htm

    

     Exhibit
10.24 

     

    

     

     AGREEMENT 

     

     BETWEEN 

     

     VEMICS
INC 

     

     AND 

     

     HYPERTROPHIC
CARDIOMYOPATHY ASSOCIATION 

     

     

     This
AGREEMENT, consisting of the terms and conditions set forth below and the
attached exhibits, each of which is incorporated into and made a part hereof by
this reference ( ''Agreement''), is entered into as of June 15, 2007, (the
''Effective Date''), by and between Vemics, Inc a Nevada corporation
(''VEMICS''), having its principal place of business at 523 Avalon Gardens
Drive, Nanuet, New York 10954 and The Hypertrophic Cardiomyopathy Association
(The SOCIETY), a Medical Society in the State of New Jersey having its principal
place of business at 328 Green Pond Road, Hibernia, NJ 07842 

     

     Background 

     

     VEMICS
and THE SOCIETY are both involved in serving the medical community with certain
educational and other complementary services. VEMICS provides connectivity for
distribution of information and knowledge over its iMedicor Portal and other
technology platform(s) and interface connections; and THE SOCIETY provides
community to its membership, connectivity to its membership base, access to
content and presenters of clinically relevant information for medical
professional, associations, societies and accreditation
bodies,  companies and other entities that would be interested in
utilizing THE SOCIETY’S services and access to its membership as approved by its
Board of Directors. The parties will work together to introduce THE SOCIETY’S
membership to the iMedicor Portal which will allow members to exchange HIPAA
compliant medical records, invite their community into the Portal for
collaboration, referrals and consults. The iMedicor portal will also offer
additional services such as, but not limited to access to CME and CEU accredited
educational programs, offered in a variety of formats, e-prescribing services,
and a variety of educational resources, The Vemics Live Access visual
communication service and the NuScribe voice recognition transcription service.
The basic iMedicor service of HIPAA compliant electronic transfer of medical
records, community, referrals and consultations will be a free service to THE
SOCIETY’S membership. Upgrades to additional services such as the LiveAccess and
the Transcription service will be available at a modest premium (expected to be
priced at approximately $100.00 per month). The combined iMedicor Portal
services will provide a unique, electronic, internet based communications system
solution for delivery of HIPAA compliant transfer of medical records and
reports, access to educational / training content and consultation,
collaboration and business meetings. 

     

     The
definition of the Education / Medical Market, for the purposes of this
Agreement, is specifically intended to include those individuals and/or
organizations, professional societies, physicians, allied health care
professionals, caregivers, teachers, students and families involved in the care
and development of people seeking treatment, advice or other services within the
Hypertension and related fields (Hereinafter referred to as “Medical
Market”). 

     

     NOW, THEREFORE, in
consideration of the mutual covenants and agreements contained in this
Agreement, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, VEMICS and THE SOCIETY agree as
follows: 

     

     Terms
and Conditions 

     

      1.
Appointment; Territory; Limitations; Relationship of Parties 

     

     (a)
Appointment 

     

     Subject
to all of the terms and conditions in this Agreement, VEMICS hereby appoints THE
SOCIETY to act, during the term of this Agreement, as its non-exclusive global
representative authorized to offer the iMedicor Portal and any other VEMICS'
Products and Services (the ''VEMICS Services'') as approved by THE SOCIETY’S
Board of Directors to the membership of THE SOCIETY (''THE SOCIETY Membership'')
specifically in the Medical Market (as defined herein). THE SOCIETY hereby
accepts said appointment. 

     

    
      
         

      

      
         1 

        
          

        

      

      
         

      

    

     

     (b)
Territory 

     

     THE
SOCIETY shall be authorized to offer the iMedicor Portal and other approved
VEMICS Services globally. 

     

     (c)
No Restrictions on a Party's Activities 

     

     Each
party acknowledges that this Agreement is non-exclusive and, except as expressly
set forth in section 1(f) of this Agreement, nothing in this Agreement shall
limit in any manner any party's marketing, distribution or revenue generating
activities. 

     

     (d)
Freedom of Action; Certain Restrictions 

     

     Except
as provided in section 1(f) of this Agreement, each party may directly or
indirectly (through THE SOCIETY or otherwise) market, sell, offer or provide any
of its respective products or services to any customer within the Territory and
during or after the Term. 

     

     (e)
No Agency 

     

     VEMICS
and THE SOCIETY each acknowledge and agree that the relationship established by
this Agreement is that of independent contractors, and nothing contained in this
Agreement shall be construed to: (i) give either party the power to direct or
control the day-to-day activities of the other; (ii) deem the parties to be
acting as co-owners or otherwise as participants in a joint ownership
undertaking; or (iii) permit either party or any of either party's officers,
directors, employees, agents or representatives to create or assume any
obligation on behalf or for the account of the other party for any purpose
whatsoever. 

     

     (f)
Mutual Non- Exclusivity 

     

     Vemics
hereby grants THE SOCIETY the non-exclusive right to offer its products and
services globally to its membership specifically and limited to the Medical
Market as defined herein. 

     

      2.
License Grant; Restrictions; Customer Agreements 

     

     (a)
License Grant 

     

     Subject
to all terms and conditions of this Agreement, VEMICS hereby grants to THE
SOCIETY during the Term of this Agreement the
non-exclusive,  nontransferable right and license to offer its
iMedicor service to THE SOCIETY'S membership together with all related software
(the ''Software'') and other intellectual property, and documentation (the
''Documentation'') that are necessary or appropriate to enable THE SOCIETY to
provide VEMICS Services (the VEMICS Software and such other intellectual
property and the Documentation are collectively sometimes referred to as
''VEMICS Intellectual Property'') to THE SOCIETY’S membership.  Each
party shall also be authorized to utilize the other party’s Intellectual
Property solely for the purposes set forth in this Agreement 

     

     (b)
License Restrictions 

     

     THE
SOCIETY shall not appoint any other person, firm, or entity as a sub-distributor
or agent for VEMICS Services without obtaining advance written approval from
VEMICS. THE SOCIETY shall not, for itself, for any affiliate of THE SOCIETY or
for any third party: sell, sublicense, assign, or transfer the Software or any
Documentation, except as permitted under this Agreement.  Furthermore,
THE SOCIETY agrees that is shall not decompile, disassemble, or reverse engineer
the VEMICS Software. 

     

     (c)
Membership Terms and Conditions; Right of VEMICS to Restrict
Content 

     

     All
use of VEMICS Services by THE SOCIETY will be subject to the execution and
delivery by each of THE SOCIETY membership of a written, binding agreement that
contains, at a minimum, the relevant terms and conditions set forth in this
Agreement transaction and the VEMICS Standard Terms and Conditions as well as no
terms or conditions that are inconsistent with the terms or conditions contained
in this Agreement (the ''Membership Agreement''). This documentation occurs upon
individual registration at the iMedicor Portal site the first time THE SOCIETY’S
member attempts to use the portal. Notwithstanding any registration of a
prospective member, if VEMICS subsequently becomes aware that the content of any
of THE SOCIETY'S members is illegal it shall notify THE SOCIETY thereof and
unless the illegal content is removed within Five (5) business days after such
notice, VEMICS may take steps to prevent such illegal content from being routed
to, passed through or stored on or utilized within VEMICS' network. VEMICS shall
promptly notify THE SOCIETY and the applicable member of such removal of any of
THE SOCIETY’S membership content pursuant to the foregoing
provisions. 

     

    
      
         

      

      
         2 

        
          

        

      

      
         

      

    

     

     3.
Marketing Efforts; Promotional Materials 

     

     (a)  Efforts 

     

     THE
SOCIETY shall use its best reasonable efforts to: (i) offer and support VEMICS
Services, specifically the iMedicor Portal site to its membership in the
Territory; (ii) dedicate adequate resources, financial and otherwise, and
maintain facilities and staff, to market, resell and support VEMICS Services in
accordance with THE SOCIETY'S obligations under this Agreement, in a timely,
diligent and professional manner using competent personnel; (iii) keep VEMICS
informed as to any problems encountered by THE SOCIETY'S membership or by THE
SOCIETY with the VEMICS Services or any VEMICS Intellectual Property, and Vemics
will communicate to THE SOCIETY any resolution or proposed resolutions relating
to such problems. All information concerning THE SOCIETY'S Membership shall be
deemed Confidential Information of THE SOCIETY in accordance with the provisions
of Section 10 of this Agreement. 

     

     (c)
Promotional Materials; Marketing 

     

     VEMICS
will provide THE SOCIETY with a reasonable amount of sales and marketing
literature relating to the VEMICS Services specifically the iMedicor Portal
site. The exact form and quantity of such literature will be determined jointly
by VEMICS and THE SOCIETY and be based upon the needs and dictates each of
specific project requirements. THE SOCIETY shall adhere to VEMICS' Guidelines,
Rules and Procedures then in effect, and THE SOCIETY shall not make any
representations or statements regarding VEMICS Services other than those
contained in the sales and marketing literature and promotional materials
provided to THE SOCIETY by VEMICS, without the prior written approval of VEMICS.
Upon reasonable advance notice from VEMICS, THE SOCIETY shall discontinue use of
any marketing literature or promotional materials that VEMICS or THE SOCIETY no
longer deems acceptable. 

     

     (d)
Quality Control 

     

     Each
party acknowledges the importance of upholding the good reputation of the other
party and its respective products and services. Accordingly, each party agrees
that it will maintain at all times during the Term of this Agreement the highest
quality controls, business practices and ethics in performing its obligations
and exercising its rights under this Agreement and will comply with all
applicable laws and regulations. 

     

     (e)
Publicity 

     

     On or
about the Effective Date, the parties agree to issue a joint press release
announcing the relationship contemplated by this Agreement. The press release
shall be subject to the written approval of each party and all future releases
subject to mutual approval, which approval shall not be unreasonably withheld or
delayed. During the term of this Agreement, subject to the restrictions
contained in Section 5 below, each party may post on its web site the other
party's logo and/or a hyperlink to the other party's web site, to use the other
party's name in connection with proposals to other prospective customers and
otherwise refer to the other party and the co-branded service offering
contemplated herein in print or electronic form for marketing or reference
purposes. 

     

     (f)
Customers / Members 

     

     Subject
to VEMICS obtaining specific advance written consent from THE SOCIETY’S
membership, VEMICS shall be entitled to reference THE SOCIETY'S Membership, in
general, not specific (names addresses etc) on VEMICS' web site and in marketing
materials as a VEMICS Services client. All data pertaining to any of THE
SOCIETY’S membership shall be deemed Confidential Information in accordance with
the provisions of Section 10 of this Agreement. In addition, no party shall use
any data pertaining to any of THE SOCIETY’S membership in a manner that is
inconsistent with VEMICS' published privacy policy, the applicable Customer
Agreement, or applicable legal requirements. 

     

     THE
SOCIETY membership shall be such professional individuals who are members or
associates of THE SOCIETY at the time of the signing of this Agreement and those
customers that are introduced to the VEMICS System (specifically iMedicor)
solely by THE SOCIETY efforts as the result of this Agreement.  VEMICS
customers shall be such customers who are customers of VEMICS at the time of the
signing of this Agreement and those customers that are introduced to the VEMICS
System solely by VEMICS efforts as the result of this Agreement. In the event
that a Customer is presently and/or in the future a customer or member of both
parties to this Agreement, as defined herein, then they shall remain deemed
jointly Customers or members of both THE SOCIETY and VEMICS. 

     

    

    
      
         

      

      
         3 

        
          

        

      

      
         

      

    

     

      4.
THE SOCIETY Use of LiveAccess, Personnel Training; Customer
Support 

     

     (a)
Use of the LiveAccess System 

     

     As
part of this agreement, Vemics will offer THE SOCIETY up to 25 concurrent users
in its LiveAccess Visual Communications System at no cost to THE SOCIETY. The
use of this system is to familiarize THE SOCIETY’S Board of Directors, Executive
Committees and other Committees with the LiveAccess System. This offer includes
25 Kits (Camera, Microphone and Headset with Microphone) and unlimited use of
the system for one year and customization of the server to reflect THE SOCIETY’S
look, feel and logo. After the one year anniversary Vemics, at its sole
discretion can continue the current offer or offer the continued service to THE
SOCIETY for a fee not to exceed $299.00 per license initial fee plus $100.00 per
month for unlimited use per license. 

     

     (b) Training 

     

     VEMICS
shall provide to THE SOCIETY’S designated authorized users of the LiveAccess
System, at VEMICS' training facility, or, on-line, or, if VEMICS elects, at THE
SOCIETY’S facilities: (i) a reasonably sufficient number of training sessions
and source training material to reasonably enable THE SOCIETY'S authorized users
and support staff to become knowledgeable about the capabilities and operation
of, and support for, the VEMICS LiveAccess Service. Such training to include, at
THE SOCIETY'S request, a reasonable number of joint VEMICS/THE SOCIETY on-site
calls, and (ii) technical consulting services and training to reasonably ensure
that THE SOCIETY has the internal capability to, among other things, use the
service to THE SOCIETY'S authorized users. Each party shall be responsible for
the travel, lodging and meal expenses of its employees who attend any training
session, if required. 

     

     (b)
Customer Support 

     

     VEMICS
will provide technical support to THE SOCIETY and their customers to whatever
extent is required to successfully deploy the LiveAccess System for its internal
use. VEMICS shall provide technical support directly to any of THE SOCIETY’S
authorized users in accordance with VEMICS' standard technical support terms and
conditions. 

     

     5.
Content Responsibility; Intellectual Property Rights 

     

     (a)
Customer Content 

     

     In the
event that THE SOCIETY becomes aware of any of THE SOCIETY’S Member Content (the
''Member Content'') that is being placed on and/or is utilizing the VEMICS
Service: (a) violates or infringes upon the intellectual property or other
rights of any third party, (b) distributes any libelous, defamatory,
pornographic or obscene material, or (c) violates any laws or regulations
applicable to such Member Content, THE SOCIETY shall notify the applicable
member of the violation and request that such member remove such Member Content
so that it will not be routed to or pass through VEMICS' network. If such member
fails to comply with THE SOCIETY’S request within a reasonable period of time,
THE SOCIETY shall notify VEMICS of the non-compliance.  VEMICS may
then remove such Member Content pursuant to and in manner set forth in the
Membership Agreement. THE SOCIETY’S Membership shall be solely responsible for
maintaining the availability of the member computer and network systems, the
connectivity of such computers and network systems to the Internet, and all
Member Content, IP addresses, domain names, hyperlinks, databases, applications
and other resources necessary for THE SOCIETY’S Membership to access the VEMICS
Services. 

     

     (b)
THE SOCIETY’S Content 

     

     (i)
THE SOCIETY’S Conditions of
Use: THE SOCIETY shall be solely and exclusively responsible for (1) all
THE SOCIETY’S content and activity; (2) obtaining legal written permission from
the right holder to display and/or utilize any material on the Vemics System or
through its other services (specifically iMedicor Portal); and (3) ensuring that
THE SOCIETY content of the web site does not violate the laws of the
jurisdiction where the content is displayed. THE SOCIETY furthermore hereby
agrees to comply with the requirements of the Communications Decency Act (CDA)
and the Digital Millennium Copyright Act (DMCA), and shall require its
subscribers in writing to so comply. 

     

     (ii)
Limitations on THE SOCIETY
Content 

     

    
      
         

      

      
         4 

        
          

        

      

      
         

      

    

     

     THE
SOCIETY shall not intentionally place or cause to be placed on the Vemics System
unacceptable material or activity which includes, but is not limited
to: 

    

     (A)
defamatory or other tortuous activity; 

    

     (B)
criminal activity, including but not limited to theft of trade secrets, fraud,
child pornography, trafficking in obscene material, violation of US export
provisions, drug dealing, gambling, harassment, stalking, spamming, hacking,
sending of viruses or other harmful files, or illegal posting of computer
passwords or computer code for the purpose of circumventing copyright security
measures; 

    

     (C)
infringing activity including, but not limited to, the unauthorized display of
confidential, secret, or other proprietary material, trademark infringement,
copyright infringement, or patent infringement. 

     

     (iii) Removal of Customer
Content:  VEMICS reserves the right in its sole discretion, and
without prior notice, to remove any material from Vemics System which is
inconsistent with the basic mission, goals and objectives of this
Agreement. 

     

     (iv) Compliance with Lawful
Authorities: VEMICS will comply with all subpoenas and court orders that
appear to be lawful and valid, including subpoenas and court orders requesting
information about THE SOCIETY or its use of the Service, without prior notice to
THE SOCIETY. VEMICS reserves the right to report activity that it believes to be
potentially criminal to the appropriate law enforcement
agencies. 

     

     (vi)
Indemnification against Third Party Claims: 

     

     (A) THE SOCIETY agrees to
defend, indemnify, and hold harmless VEMICS, its affiliates and the respective
officers, directors, employees, and agents, from and against all actions, third
party civil or criminal claims, liabilities, losses, damages and expenses,
including but not limited to reasonable attorneys' fees, arising out of or
relating to the use of the VEMICS System material supplied by THE SOCIETY for
use on the VEMICS System or, arising out of or relating to any content provided
by THE SOCIETY or by THE SOCIETY'S use of VEMICS's services. Such
indemnification shall operate whether or not VEMICS has been put on notice of a
claim. 

     

     (B) VEMICS agrees to defend,
indemnify, and hold harmless THE SOCIETY, its affiliates and its and their
respective officers, directors, employees, and agents, from and against all
actions, third party civil or criminal claims, liabilities, losses, damages and
expenses, including but not limited to reasonable attorneys' fees, arising out
of or relating to the use of the VEMICS System supplied by VEMICS. Such
indemnification shall operate whether or not THE SOCIETY has been put on notice
of a claim. 

     

     (c)
Intellectual Property and VEMICS Services 

     

     As
between VEMICS and THE SOCIETY or any Member of THE SOCIETY’S, VEMICS shall own
all right, title and interest in and to the Intellectual Property and VEMICS
Services. THE SOCIETY acknowledges that the Software, Documentation, and VEMICS
Services includes proprietary information and trade secrets which are the sole
and exclusive property of VEMICS or its licensors and that the Software,
Documentation and VEMICS Services are or may be protected by patent, copyright,
trade secret and/or similar laws and certain international treaty provisions.
The following shall not, however, be considered to be proprietary information
and trade secrets belonging to VEMICS: (i) information which is publicly known
or which becomes publicly known through no fault of THE SOCIETY’S; (ii)
information which is lawfully obtained by THE SOCIETY from a third party; and
(iii) information which is the lawful possession of THE SOCIETY prior to such
information having been initially disclosed by VEMICS pursuant to this
Agreement. This Agreement does not transfer or convey to THE SOCIETY or any of
THE SOCIETY’S Members or any third party any right, title or interest in or to
the Intellectual Property of VEMICS Services or any associated intellectual
property rights, but only a limited right of use which is revocable in
accordance with the terms of this Agreement and any Membership Agreement. Nor
does this Agreement transfer any ownership or copyright interest in any
intellectual property owned by THE SOCIETY to VEMICS except as provided for in
this Agreement. 

     

     6.
Marks; Usage Restrictions 

     

     Either
party's use, display or reference to the other party's proprietary indicia,
trademarks, service marks, trade names, logos, symbols and/or brand names
(collectively ''Marks'') shall be subject to the advance written approval of
that party, which approval shall not be unreasonably withheld. Neither party may
remove, destroy or alter the other party's Marks. Each party agrees that it
shall not challenge or assist others in challenging the rights of the other
party or its suppliers or licensors in the Marks or the registration of the
Marks, or attempt to register any trademarks, service marks, trade names, logos,
symbols, brand names or other proprietary indicia confusingly similar to the
Marks. All use of a party's Marks, including but not limited to use of any
co-branded logo comprised of each party's Marks, shall be subject to such
party's logo and trademark usage guide, as provided to the other party and as
the same may be updated from time to time. Neither party grants any rights in
the Marks or in any other trademark, trade name, service mark, business name or
goodwill of the other except as expressly permitted hereunder or by separate
written agreement of the parties. 

     

    
      
         

      

      
         5 

        
          

        

      

      
         

      

    

     

     7.
Fees; Pricing; Credits and Payment Terms 

     

     (a)
Prices; Fees 

     

     VEMICS'
and THE SOCIETY, together, agree that any project both parties undertake that
results in generation of revenue will be agreed to in advance in terms of scope
of work, time lines, deliverables, designated activities and financial
considerations, royalties and any other fees identified as an amendment to this
agreement on an individual basis. 

     

      8.
Representations and Warranties 

     

     (a)
VEMICS's Representations and Warranties 

     

     VEMICS
represents and warrants that: (i) VEMICS and its licensors now and will
throughout the Term, own or possess the necessary rights, title and licenses in
and to the Intellectual Property and to operate the VEMICS Products and/or
Services, (ii) VEMICS has and will have throughout the Term the right to enter
into this Agreement and to perform its obligations hereunder, (iii) VEMICS has
obtained any and all consents, approvals and other authorizations necessary for
the performance of its obligations hereunder, (iv) the Intellectual Property and
the VEMICS Products and/or Services do not and will not throughout the Term
violate or infringe upon the intellectual property or other legal rights of any
other party, (v) the operation of the VEMICS Products and/or Services is and
will be throughout the Term in compliance with all applicable, material laws,
rules and regulations of all relevant governmental authorities, and (vi) the
VEMICS Products and/or Services will be operated throughout the Term
substantially in conformity with its specifications. 

     

     (b) THE SOCIETY’s Representations and
Warranties 

     

     THE
SOCIETY represents and warrants that: (i) THE SOCIETY and its licensors now and
will throughout the Term, own or possess the necessary rights, title and
licenses in and to its Intellectual Property, membership lists and other
information according to this agreement, (ii) THE SOCIETY has and will have
throughout the Term the right to enter into this Agreement and to perform its
obligations hereunder, (iii) THE SOCIETY has obtained any and all consents,
approvals and other authorizations necessary for the performance of its
obligations hereunder, and (iv) the THE SOCIETY’s Intellectual Property and
membership lists does not and will not throughout the Term violate or infringe
upon the intellectual property or other legal rights of any other
party. 

     

      (c)
Warranty Disclaimer 

     

     EXCEPT
AS SPECIFICALLY PROVIDED IN THIS SECTION 9, BOTH PARTIES EXPRESSLY DISCLAIM ALL
WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, TO THE FULLEST EXTENT PERMITTED BY
LAW, INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. NEITHER PARTY SHALL MAKE
ANY REPRESENTATIONS NOR WARRANTIES ON THE OTHER'S BEHALF WITHOUT SUCH OTHER
PARTY'S EXPRESS WRITTEN CONSENT. 

     

      10.
Confidential Information. 

     

     (a)
"Confidential Information" as used in this Agreement shall mean any and all
technical and non-technical information including but not limited to patent,
copyright, trade secret, and proprietary information, techniques, sketches,
drawings, models, inventions, know-how, processes, apparatus, equipment,
algorithms, software programs, software source documents, and formulae related
to the current, future, and proposed products and services of each of the
parties and it’s affiliates, and includes, without limitation, each of the
parties and their affiliates information concerning research, experimental work,
development, design details and specifications, engineering, financial
information, procurement requirements, purchasing, manufacturing, customer
lists, business forecasts, sales and merchandising, and marketing plans and
information. "Confidential Information" also includes proprietary or
confidential information of any third party that may disclose such information
to either party in the course of the other party's business. All Confidential
Information disclosed both orally and in writing by the disclosing party
("Discloser") will be considered Confidential Information by the receiving party
("Recipient") and subject to terms of this Agreement, even if such information
is not conspicuously designated as "Confidential" or even when provided orally
and not identified as confidential at the time of disclosure. 

     

    
      
         

      

      
         6 

        
          

        

      

      
         

      

    

     

     (b)   Recipient
hereby agrees that it will not make use of, disseminate, or in any way disclose
any Confidential Information of the Discloser to any person, firm, or business,
except to the extent necessary for negotiations, discussions, and consultations
with personnel and/or authorized representatives of the Discloser, any purpose
of the Discloser authorized by this agreement and any purpose the Discloser may
hereafter authorize in writing. Recipient hereby also agrees that it will use
the Confidential Information disclosed by Discloser for informational purposes
only. Recipient hereby further agrees that it shall not use the Confidential
Information of Discloser in the production and/or the providing of any products
and/or services now or in anytime in the future, other than permitted under this
Agreement. 

    

     (c)
Recipient agrees that it shall treat all Confidential Information of Discloser
with the same degree of care as it accords to its own Confidential Information,
and Recipient represents that it exercises reasonable care to protect its own
Confidential Information. 

    

     (d)
Recipient hereby agrees that it shall disclose Confidential Information of the
Company only to those of its officer(s), manager(s), and/or employee(s) who need
to know such information and certifies that such officer(s), manager(s), and/or
employee(s) have previously agreed, either as a condition of employment or in
order to obtain the Confidential Information, to be bound by terms and
conditions substantially similar to those of this Agreement. 

    

     (e)
Recipient will immediately give notice to Discloser of any unauthorized use or
disclosure of the Confidential Information. Recipient agrees to assist Discloser
in remedying any such unauthorized use or disclosure of the Confidential
Information. 

    

     (f)
Upon the request of the Discloser and/or termination of this Agreement, the
Recipient will promptly return all confidential information furnished hereunder
and all copies thereof. 

    

     (g)
Employees. During the term of this Agreement and for a period of two (2) years
thereafter, THE SOCIETY will not directly or indirectly: (a) solicit or
encourage any employee of VEMICS to leave the employ of VEMICS; or (b) hire any
employee who has left the employ of VEMICS if the hiring is proposed to occur
within one year after the termination of the employee's employment with VEMICS.
In addition, during the term of this Agreement and for a period of two (2) years
thereafter, VEMICS will not directly or indirectly: (a) solicit or encourage any
employee of THE SOCIETY to leave the employ of THE SOCIETY; or (b) hire any
employee who has left the employ of THE SOCIETY if the hiring is proposed to
occur within one year after the termination of the employee's employment with
THE SOCIETY. 

    

     (h)
Consultants. During the term of this Agreement and for a period of two (2) years
thereafter, THE SOCIETY will not directly or indirectly solicit or encourage any
consultant then under contract with the VEMICS to cease work for VEMICS. During
the term of this Agreement and for a period of two (2) years thereafter, VEMICS
will not directly or indirectly solicit or encourage any consultant then under
contract with THE SOCIETY to cease work for THE SOCIETY. 

    

     (i)  Clients.  For
a period of two (2) years after the termination of this Agreement, THE SOCIETY
will not directly or indirectly solicit any customer introduced by VEMICS. For a
period of two (2) years after the termination of this Agreement, Vemics will not
directly or indirectly solicit any customer introduced by THE SOCIETY. For
purposes of this Agreement, VEMICS Customers shall not include those Companies
and/or Individuals that THE SOCIETY had a documented business relationship with
prior to the inception of this Agreement and/or Customers that were not
introduced to THE SOCIETY by VEMICS. In addition, for purposes of this
Agreement, THE SOCIETY Customers shall not include those Companies and/or
Individuals that VEMICS had a documented business relationship with prior to the
inception of this Agreement and/or Customers that were not introduced to VEMICS
by THE SOCIETY. 

    

     (j)
Remedies. In the event of a breach or a threatened breach of any of the
Provisions and/or Covenants set forth in this Section 9 of the Agreement above
(the ''Covenants''), the non-breaching party will, in addition to the remedies
provided by law, have: 

    

     (1)
the right and remedy to have the Covenants specifically enforced by any court
having equity jurisdiction, it being acknowledged and agreed that any material
breach of any of the Covenants will cause irreparable injury to the
non-breaching party and that money damages will not provide an adequate remedy
to the non-breaching party; and 

    

     (2)
the right and remedy to require a person to account for and pay over to the
non-breaching party all compensation, profits, moneys, accruals, increments or
other benefits (collectively the ''Benefits'') derived or received by the
Breaching Party as a result of any transactions constituting a breach of any of
the Covenants, and Breaching Party hereby agrees to account for and pay over the
Benefits to the non-breaching party. 

    

     (k)
The obligations of the parties set forth in this paragraph 10 of this Agreement
shall survive the termination of this agreement. 

     

    

    
      
         

      

      
         7 

        
          

        

      

      
         

      

    

     

      11.
Term and Termination 

     

     (a)
Term; Initial Term; Renewals 

     

     This
Agreement shall become effective as of the Effective Date and remain in full
force and effect until June 15, 2009, (the ''Initial Term''). Upon the
expiration of the Initial Term, this Agreement will automatically renew for one
additional term of three years (''Renewal Term'') unless and until either party
notifies the other party in writing of its intent to terminate at least 90 days
prior to the expiration of the Initial Term or 90 days prior to the expiration
of a Renewal Term. The Initial Term, together with any and all Renewal Terms, is
sometimes collectively referred to as the ''Term.'' 

     

     (b)
Termination Upon Default 

     

     Either
party may terminate this Agreement in the event that the other party materially
breaches the terms of the Agreement or defaults in performing any obligation
under this Agreement and such breach or default continues unremedied for a
period of 30 days following written notice of default. 

     

     (c)
Termination Upon Insolvency 

     

     This
Agreement shall terminate, effective upon delivery of written notice by a party:
(i) upon the institution of insolvency, receivership or bankruptcy proceedings
or any other proceedings for the settlement of debts of the other party; (ii)
upon the making of a general assignment for the benefit of creditors by the
other party; or (iii) upon the dissolution of the other party. 

     

     (d)
Effect of Termination 

     

     Except
for the provisions in Section 7(b), 8, 10 and 13 herein, all rights and
obligations of the parties shall cease upon termination of this Agreement. The
term of any license or rights granted hereunder shall expire upon expiration or
termination of this Agreement. 

     

    

      12. Jurisdiction
Disputes 

    

         (a)
This Agreement shall be governed by the laws of the State of New
York. 

    

         (b)
All disputes hereunder shall be resolved in the applicable state or federal
courts in the County of Rockland in the State of New York. The parties consent
to the jurisdiction of such courts, agree to accept service of process by mail,
and waive any jurisdictional or venue defenses otherwise
available. 

     

      13.
General Indemnification 

     

     (a)
Limited Covenant to Defend Infringement Claims by Third
Parties. 

     

     Each
party (the ''Indemnitor''), at its own expense and subject to the terms and
conditions of this Section 13, will (i) defend claims brought against the other
party, its permitted assignees and licensees, agents, officers and employees
(the ''Indemnitee'') by third parties (other than affiliates of the Indemnitee)
that, if true, would constitute a breach by the Indemnitor of its
representations and warranties set forth in this Agreement, and (ii) will
indemnify and hold the Indemnitee harmless from and against any damages to real
or tangible personal property and/or bodily injury to persons, including death,
resulting from the negligence or willful misconduct of the employees or agents
of the Indemnitor. 

     

      (i)
Right to Replace 

     

     If a
claim of infringement under this Section occurs, or if Indemnitor determines
that a claim is likely to occur, Indemnitor will have the right, in its sole
discretion, to either: (i) procure for Indemnitee and its Customers the right or
license to continue to use the Software free of the infringement claim; or (ii)
replace or modify the Software to make it non-infringing provided that the
replacement software substantially conforms to Indemnitor's then-current
specification for the Software. If these remedies are not reasonably available
to Indemnitor, Indemnitor may, at its option, terminate this Agreement without
liability, other than liability that may arise under Section 13(b), and
Indemnitor shall return any fees paid by Indemnitee in respect of Indemnitor
Services not provided. 

     

    
      
         

      

      
         8 

        
          

        

      

      
         

      

    

     

     (ii)
Limitations 

     

     Despite
the provisions of this Section 13, Indemnitor has no obligation with respect to
any claim of infringement that is based upon or arises out of: (i) any
modification to the Software if the modification was not made by or at the
written direction of Indemnitor; or (ii) the use or combination of the Software
with any hardware, software, products, data or other materials not specified or
provided by Indemnitor; or (iii) Indemnitee’s or any Customer's use of the
Indemnitor Services other than in accordance with the Software documentation or
Indemnitor’s written directions or policies. 

     

     (b)
Conditions for Defense. 

     

     To be
entitled to defense by the Indemnitor against a third-party infringement
claim: 

     

     (i)
Indemnitee shall advise Indemnitor of the claim as contemplated by Section (d);
and 

     

     (ii)
Indemnitor shall have the sole right to control the defense or settlement of the
claim, in litigation or otherwise, provided that Indemnitor will not enter into
a settlement on behalf of Indemnitee without Indemnitee's prior written
approval, such approval not to be unreasonably withheld. 

     

     (c)
Expenses and Monetary Awards. 

     

     If a
third-party claim, of which Indemnitor was notified and which Indemnitor has a
duty to defend in accordance with this Section 13, is brought, and if such claim
is sustained in a final judgment from which no further appeal is taken or
possible, then Indemnitor will pay or otherwise satisfy any monetary award
entered against Indemnitee as part of such final judgment to the extent such
award is adjudged in such final judgment to arise from such infringement,
without regard to limitation of liability set forth in Section
12. 

     

     (d)
Notices. 

     

     An
Indemnitee seeking to be defended against a claim under this Section 13, shall
notify the Indemnitor within thirty (30) days of the assertion of any claim(s)
or discovery of any fact upon which the Indemnitee intends to base a claim for
defense or indemnification. The Indemnitee's failure to so notify the Indemnitor
will not relieve the Indemnitor from any liability under this Agreement to the
Indemnitee with respect to defense or indemnity with respect to such claim(s),
except to the extent the Indemnitor demonstrates that the defense of such claim
was prejudiced by the failure to so notify. 

     

     (e)
Counsel. 

     

     If the
Indemnitor defends the Indemnitee in a lawsuit, arbitration, negotiation, or
other proceeding concerning a claim pursuant to this Section 13, then the
Indemnitee may engage separate counsel, at the Indemnitee's expense, to monitor
and advise the Indemnitee about the status and progress of the
matter. 

     

     (f)
Exceptions to Duties to Defend and Indemnify. 

     

     Except
as may be otherwise expressly provided in this Agreement, neither party will be
required to defend or indemnify the other party with respect to losses, damages
or expenses finally adjudged to have been caused by the indemnified party's own
negligence or willful misconduct. 

     

    
      
         

      

      
         9 

        
          

        

      

      
         

      

    

     

      14.
Limitation of Liability and Damages; Insurance 

     

     (a)
Limitation of Liability 

     

     EXCEPT
FOR LIABILITY ARISING OUT OF A PARTY'S INDEMNIFICATION OBLIGATIONS WITH RESPECT
TO THIRD PARTY CLAIMS AND A BREACH OF THE PROVISIONS OF THIS AGREEMENT RELATING
TO CONFIDENTIAL INFORMATION AND TRADE SECRETS, EACH PARTY AGREES THAT IN NO
EVENT WILL THE OTHER PARTY OR ITS SUPPLIERS OR LICENSORS BE LIABLE, UNDER ANY
THEORY OF LIABILITY, HOWEVER ARISING, FOR ANY COSTS OF COVER OR FOR INDIRECT,
SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES OF ANY KIND (INCLUDING ANY LOSS OF
USE, INTERRUPTION OF BUSINESS, LOSS OF BUSINESS PROFITS, LOSS OF BUSINESS
INFORMATION, AND THE LIKE) ARISING OUT OF THIS AGREEMENT, EVEN IF SUCH PARTY HAS
BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THESE LIMITATIONS SHALL APPLY
DESPITE ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED WARRANTY OR
REMEDY. 

     

     (b)
Limitation of Damages 

     

     EXCEPT
FOR LIABILITY ARISING OUT OF A PARTY'S INDEMNIFICATION OBLIGATIONS WITH RESPECT
TO THIRD PARTY CLAIMS AND A BREACH OF THE PROVISIONS OF THIS AGREEMENT RELATING
TO CONFIDENTIAL INFORMATION AND TRADE SECRETS, IF THERE SHALL BE ANY LIABILITY
OF ONE PARTY TO THE OTHER THAT ARISES OUT OF OR IS IN ANY WAY CONNECTED TO THIS
AGREEMENT, EACH PARTY'S AGGREGATE LIABILITY FOR ALL DAMAGES, LOSSES AND CAUSES
OF ACTION WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE) OR OTHERWISE, EITHER
JOINTLY OR SEVERALLY, SHALL NOT EXCEED TEN THOUSAND DOLLARS ($10,000.00). EACH
PARTY ACKNOWLEDGES THAT THE OTHER IS NOT AN INSURER; THAT THE PAYMENTS MADE
HEREUNDER ARE BASED SOLELY ON THE VALUE OF THE SERVICES AND ARE NOT SUFFICIENT
TO WARRANT ASSUMING ANY RISK OF CONSEQUENTIAL OR OTHER DAMAGES DUE TO NEGLIGENCE
OR FAILURE TO PERFORM. DUE TO THE NATURE OF THE SERVICES TO BE PERFORMED, IT IS
IMPRACTICABLE AND EXTREMELY DIFFICULT TO FIX THE ACTUAL DAMAGES, IF ANY, WHICH
MAY RESULT (PROXIMATELY OR OTHERWISE) FROM NEGLIGENCE OR FAILURE TO PERFORM
UNDER THIS AGREEMENT. THIS LIMITATION OF LIABILITY REFLECTS AN ALLOCATION OF
RISK BETWEEN THE PARTIES IN VIEW OF THE FEES CHARGED, IS NOT A PENALTY, AND
SHALL BE EXCLUSIVE. THE LIMITATIONS IN THIS AGREEMENT SHALL APPLY DESPITE ANY
FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED WARRANTY OR REMEDY. 

     

     (c)
Insurance 

     

     EACH
PARTY AGREES TO MAINTAIN IN EFFECT DURING THE TERM, AT SUCH PARTY'S EXPENSE,
COMPREHENSIVE PROPERTY, CASUALTY AND GENERAL LIABILITY INSURANCE OF THE TYPES
AND AMOUNTS, AND COVERING SUCH RISKS AS ARE REASONABLE AND CUSTOMARY FOR
BUSINESSES ENGAGED IN A SIMILAR BUSINESS AND COVERING PROPERTIES SIMILAR TO THE
PROPERTIES OWNED, LEASED OR OPERATED BY SUCH PARTY. IN ADDITION, EACH PARTY
SHALL MAINTAIN IN EFFECT DURING THE TERM AN ERRORS AND OMISSIONS POLICY INSURING
AGAINST ITS ERRORS AND OMISSIONS IN THE PERFORMANCE OF ITS SERVICES CONTEMPLATED
UNDER THIS AGREEMENT WITH COVERAGE OF AT LEAST FIVE MILLION DOLLARS AS TO A
SINGLE CLAIM AND FIVE MILLION DOLLARS AS TO ALL CLAIMS IN THE AGGREGATE. SUCH
INSURANCE COVERAGE WILL BE OBTAINED FROM REPUTABLE INSURANCE COMPANIES OR
ASSOCIATIONS. UPON THE REQUEST OF A PARTY, THE OTHER PARTY SHALL PROVIDE VALID
CERTIFICATES OF INSURANCE. 

     

      15.
Miscellaneous 

     

     (a)
Compliance with Laws 

     

     Each
party agrees to comply with all applicable laws, regulations, and ordinances
relating to their performance hereunder. 

     

     (b)
Notices 

     

    
      
         

      

      
         10 

        
          

        

      

      
         

      

    

     

     Any
notice required or permitted hereunder shall be in writing and shall be
delivered as follows (with notice deemed given as indicated): (i) by personal
delivery when delivered personally; (ii) by established overnight courier upon
written verification of receipt; (iii) by facsimile transmission when receipt is
confirmed in writing; or (iv) by certified mail, return receipt requested, upon
verification of receipt. All notices must be sent to the following
addresses: 

    

    

     If to
VEMICS: 

     Fred
Zolla, CEO 

     Vemics,
Inc 

     523
Avalo9n Gardens Drive 

     Nanuet,
New York 10954 

    

     

     If to
THE
SOCIETY: 

     Lisa
Salberg 

     President 

     The
Hypertrophic Cardiomyopathy Association 

     328
Green Pond Road 

     Hibernia,
NJ 07842 

     

     Either
party may change its contact person for notices and/or address for notice by
means of notice to the other party given in accordance with this
Section. 

     

     (c)
Assignment 

     

     Neither
party may, without the prior written consent of the other party, assign this
Agreement, in whole or in part, either voluntarily or by operation of law and
any attempt to do so shall be a material default of this Agreement and shall be
void. Any change of control in the ownership of either party shall not be deemed
an assignment subject to the prohibitions of this Section. 

     

     (d)
Third Party Beneficiaries 

     

     This
Agreement is solely for the benefit of the parties and their successors and
permitted assigns, and, except as expressly provided herein or in any exhibit
hereto, does not confer any rights or remedies on any other person or
entity. 

     

     (e)
Governing Law 

     

     This
Agreement shall be interpreted according to the laws of the State of New York
without regard to or application of choice-of-law rules or
principles. 

     

     (f)
Entire Agreement and Waiver 

     

     This
Agreement and any Exhibits hereto shall constitute the entire agreement between
VEMICS and THE SOCIETY with respect to the subject matter hereof and all prior
agreements, representations, and statement with respect to such subject matter
are superseded hereby, including without limitation any non-disclosure agreement
previously executed between the parties. The terms of this Agreement shall
control in the event of any inconsistency with the terms of any Exhibit hereto.
This Agreement may be changed only by written agreement signed by both VEMICS
and THE SOCIETY. No failure of either party to exercise or enforce any of its
rights under this Agreement shall act as a waiver of subsequent breaches; and
the waiver of any breach shall not act as a waiver of subsequent
breaches. 

     

    
      
         

      

      
         11 

        
          

        

      

      
         

      

    

     

     (g)
Severability 

     

     In the
event any provision of this Agreement is held by a court of other tribunal of
competent jurisdiction to be unenforceable, that provision will be enforced to
the maximum extent permissible under applicable law and the other provisions of
this Agreement will remain in full force and effect. The parties further agree
that in the event such provision is an essential part of this Agreement, they
will begin negotiations for a suitable replacement provision. 

     

     (h)
Non-Disclosure of Agreement Terms 

     

     Neither
party shall disclose to third parties, other than its agents and representatives
on a need-to-know basis, the terms of this Agreement nor any Exhibits hereto
without the prior written consent of the other party, except either party shall
be entitled to disclose (i) such terms to the extent required by law and (ii)
the existence of this Agreement. 

     

     (i)
Force Majeure 

     

     If
either party is prevented from performing any of its obligations under this
Agreement due to any cause beyond the party's reasonable control, including,
without limitation, an act of God, fire, flood, explosion, war, strike, embargo,
government regulation, act(s) of terrorism, civil or military authority, acts or
omissions of carriers, transmitters, providers, vandals, or hackers (a ''force
majeure event'') the time for that party's performance will be extended for the
period of the delay or inability to perform due to such occurrence; provided
however, that if a party suffering a force majeure event is unable to cure that
event within 30 days, the other party may terminate this
Agreement. 

     

     (j)
Counterparts 

     

     This
Agreement may be executed in any number of counterparts, each of which, when so
executed and delivered, shall be deemed an original, and all of which shall
constitute one and the same Agreement. 

     

     (k)
Remedies 

     

     Except
as provided herein, the rights and remedies of each party set forth in this
Agreement are not exclusive and are in addition to any other rights and remedies
available to it at law or in equity. 

     

     (l)
Binding Effect 

     

     This
Agreement shall be binding upon and shall inure to the benefit of the respective
parties hereto, their respective successors and permitted
assigns. 

     

     (m)
Amendments 

     

     Amendments
to this Agreement, including amendments to any Exhibits, shall be effective only
if they are in writing and signed by both parties. 

     

    
      
         

      

      
         12 

        
          

        

      

      
         

      

    

     

     IN WITNESS WHEREOF, each of
the parties, by its duly authorized representative, has entered into this
Agreement as of the Effective Date. 

    

    

    

     Vemics
Inc.                                                                                   THE
SOCIETY. 

    

     By:
___________________                                                      By: /s/ Lisa
Salberg                
 

            Fred
Zolla,
CEO                                                                            
Lisa Salberg, President 

     

     

     

     

    
   

    
      
         

      

      
         13

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