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Exhibit 10.12  

 
 

TEMPLATE PURCHASE AGREEMENT    
    

THIS AGREEMENT made as of the 1st day of February, 2005 

BETWEEN:

HOSTOPIA.COM INC., a corporation incorporated under the

laws of Delaware (hereinafter referred to as "Hostopia") 

OF
THE FIRST PART 

– and –

GEEKSFORLESS INC., a corporation incorporated under the

laws of Ontario (hereinafter referred to as the "GFL") 

OF
THE SECOND PART 

WHEREAS Hostopia is a provider of web hosting, electronic commerce, e-mail solutions and other related services through Internet
accessible means; 

AND WHEREAS GFL is a creator of website templates and media content and a provider of programming services; 

AND WHEREAS Hostopia wishes to obtain the services of GFL to create various website templates; 

AND WHEREAS Hostopia acknowledges and agrees that GFL is the author and first owner of copyright in the Templates (as defined below). GFL,
however, wishes to assign a portion of its ownership interest to Hostopia. GFL and Hostopia therefore acknowledge and agree that the Templates (and all rights therein, including, without
limitation, copyright) are the joint property of GFL and Hostopia. Under law, as joint owners, each may act independently of the other in exploiting the Templates, with no obligation to account to
each other for a share of any profits other than when expressly stated herein; 

AND WHEREAS the templates will be accessed and used by GFL and Hostopia's customers and its customer's customers. 

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the mutual covenants and agreements herein contained and for other good and valuable
consideration, it is agreed by the parties hereto as follows: 

 
 
 

ARTICLE 1
  TEMPLATE ARRANGEMENT    
    

	1.1
	Hostopia
hereby agrees to engage GFL and GFL agrees to accept such engagement in accordance with the express terms and conditions hereinafter set forth. 

 
 

ARTICLE 2
  PARTIES' RIGHTS    
    

	2.1
	Hostopia
acknowledges and agrees that GFL shall be deemed to be the author and first owner of copyright in the Templates. Notwithstanding the foregoing, GFL, hereby assigns a portion
of its ownership interest in the Templates to Hostopia. "Templates" means Advanced Templates and Premium Templates created by GFL for Hostopia in
accordance with this Agreement, including without limitation all still photographs, digital images, video, graphics, text, sound, Flash applications, original work or images in any media or form
("Content") that are incorporated therein, as defined in Section 3.3.

	2.2
	GFL
and Hostopia acknowledge and agree that the Templates are the joint property of GFL and Hostopia. Both parties shall, under copyright for the full term of copyright in the
Templates, have the irrevocable, unlimited, paid-up and worldwide right to use the Templates for any purpose whatsoever, including without limitation, the right to license, sell, assign,
transfer, use, re-use, duplicate, distribute, publish, republish, lease, lend, adapt, translate, modify and transmit the Templates, in electronic form, print media or otherwise to any
third parties, subject to Article 9.

	2.3
	GFL
and Hostopia further acknowledge and agree that each party may commercially exploit the Templates independently of the other and any revenues earned by either party with respect
to the Templates shall be the sole property of the party that received such revenues, subject to Section 9.2.

	2.4
	GFL
irrevocably waives in favour of Hostopia, and Hostopia's licensees, all moral rights that it has or may have, as author, with respect to the Templates, including, without
limitation, the right to attribution of authorship, the right to restrain any distortion, mutilation or other modification of the Templates and the right to prohibit any use of the Templates in
association with a product, service, cause or institution that might be prejudicial to GFL's honour or reputation. 

2

 
 
 

ARTICLE 3
  DELIVERY OF TEMPLATES    
    

	3.1
	GFL
will provide the Templates and all copies, negatives and prints thereof, in electronic form or otherwise, to Hostopia no later than the dates specified in Schedule "A".

	3.2
	Hostopia
shall have two (2) months from the date on which Hostopia receives each Template as stated in Schedule "A", to accept or reject any Template delivered to
Hostopia. Any Template that Hostopia rejects shall be accompanied by a brief explanation for such rejection.

	3.3
	"Advanced Templates" are comparable in features and functionality to the template(s) within the CD-ROM attached to
Schedule "B" and shall include limited Flash applications. "Premium Templates" are comparable in features and functionality to the
template(s) within the CD-ROM attached to Schedule "C" and shall include robust Flash, sound, html and video applications.

	3.4
	GFL
agrees to provide Hostopia, copies of any model releases, consents, assignments or other documents. 

 
 

ARTICLE 4
  FEES    
    

	4.1
	GFL
shall be entitled to receive a one-time fee of US $110.00 for each Advanced Template delivered to, and accepted by Hostopia, and US $140.00 for each Premium Template
delivered to, and accepted by Hostopia. GFL shall create and provide to Hostopia (a) no less than five hundred (500) Advanced Templates and (b) no less than five hundred
(500) Premium Templates. GFL shall be solely responsible for all deductions and remittances required by law as a result of the services provided hereunder or which otherwise arise out of
GFL's performance under this Agreement. Hostopia, at its option, may receive 500 Premium Templates in exchange for the fees set out in this section during the term of
this Agreement. 

 
 

ARTICLE 5
  REPRESENTATIONS, WARRANTIES AND COVENANTS    
    

	5.1
	GFL
hereby represents, warrants and covenants that:

	(a)
	It
has the right to enter into this Agreement to perform the obligations contemplated hereby;

	(b)
	It
has not made, nor will hereafter make, any commitment or agreement which will interfere with the completion of its services, or limit Hostopia's rights, hereunder;

	(c)
	It
is the exclusive owner of all Content incorporated into the Templates, with the exception of any materials provided by Hostopia, and the Templates, or Content, do not infringe upon
or misappropriate any common law or statutory rights of any person, including without limitation, any copyright, patent right, right of publicity or privacy, trademark, trade secret or other
proprietary rights; 

3

 

	(d)
	It
has obtained all necessary releases, consents, assignments and similar instruments in order to grant Hostopia the rights in the Templates, and, including without limitation, has
entered into agreements with any models portrayed in the Templates, whereby such models have agreed to assign to GFL all of the model's rights with respect to the Templates in which
they appear;

	(e)
	No
claims will be made by any person against Hostopia with respect to the rights hereby assigned by GFL including without limitation a claim of passing off, and any use of the rights
in the Templates will not violate the rights of any person, firm or corporation;

	(f)
	The
Templates are of high quality and will be free of defects in material and workmanship in all material respects;

	(g)
	The
Templates shall conform to Hostopia's functional and other requirements; and

	(h)
	It
shall fix, at its own expense, any material errors or defects, which may be discovered in the Templates during the Term of this Agreement. 

 
 

ARTICLE 6
  INDEMNITY LITIGATION AND LIMITATION OF LIABILITY    
    

	6.1
	GFL
will indemnify and hold harmless Hostopia, its directors, officers, agents, suppliers, associates, successors, licensees, and assigns from any and all claims, demands, suits,
losses, costs, expenses (including reasonable counsel fees), damages or recoveries (including any amount paid in settlement) which may be obtained against, imposed upon or suffered by Hostopia and
other parties referred to above, by reason of (a) the breach by GFL of any of the representations, warranties or covenants herein contained, or (b) GFL's performance of
its obligations in accordance with this Agreement.

	6.2
	GFL
hereby grants to Hostopia the free and unrestricted right to institute in the name and on behalf of GFL, any and all suits and proceedings in law or in equity, to enjoin and
restrain any infringements of the rights herein granted, and hereby assigns and sets over Hostopia any and all causes of action arising or resulting by reason of or based upon any such infringement,
and hereby assigns and sets over to Hostopia any and all recoveries obtained in any such action. GFL will not compromise, settle or in any manner interfere with such litigation if brought. GFL will
and does hereby appoint Hostopia its irrevocable attorney-in-fact to establish and protect the validity of all rights herein granted if they are attacked or appropriated by
others, and Hostopia may also sue or defend in the name of GFL at GFL's expense. 

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	6.3
	EACH PARTY'S AGGREGATE LIABILITY TO THE OTHER, INCLUDING, WITHOUT LIMITATION, FOR ALL BREACHES OF THIS AGREEMENT, SHALL BE LIMITED TO $100,000. IN NO EVENT,
WHETHER AS A RESULT OF BREACH OF CONTRACT, TORT LIABILITY (INCLUDING NEGLIGENCE) OR OTHERWISE, SHALL EITHER PARTY OR THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, AGENTS OR REPRESENTATIVES BE
LIABLE TO THE OTHER PARTY FOR ANY INDIRECT, SPECIAL, INCIDENTAL, EXEMPLARY, PUNITIVE, CONSEQUENTIAL OR THIRD PARTY DAMAGES. 

 
 

ARTICLE 7
  CONFIDENTIAL INFORMATION    
    

	7.1
	All
documentation and information designated at the time of disclosure by the party disclosing the information (the "Disclosing
Party") as proprietary or confidential, including without limitation drawings, source code, computer program listings, techniques, algorithms and processes, and technical and
marketing information ("Confidential Information") which is supplied by the Disclosing Party in connection with this Agreement shall be treated
confidentially by the recipient of the confidential information ("Recipient") and its employees, and shall not be disclosed by the Recipient without the
Disclosing Party's prior written consent.

	7.2
	Information
shall not be considered to be Confidential Information if it (1) is already or otherwise becomes publicly known through no act of Recipient; or (2) is
lawfully received from third parties subject to no restriction of confidentiality; or (3) can be shown by Recipient to have been independently developed by it; or (4) is authorized by
the Disclosing Party to disclose, copy or use; or (5) is required to be disclosed in the context of an administrative or judicial proceeding.

	7.3
	The
duty of confidentiality with respect to confidential information shall survive the termination or expiration of this Agreement for a period of five (5) years. 

 
 

ARTICLE 8
  TERM AND TERMINATION    
    

	8.1
	If
one party materially breaches or is in material default of any obligations hereunder, which material breach or default has not been cured within thirty (30) calendar days
after receipt of written notice of such default from the non-defaulting party or within such additional cure period as the non-defaulting party may authorize in writing, then
the non-breaching party may terminate this Agreement immediately.

	8.2
	Hostopia
may terminate this Agreement at any time upon thirty (30) calendar days written notice to GFL for any reason whatsoever, provided that Hostopia shall pay GFL any
outstanding amounts due and payable to GFL for Templates delivered to, and accepted by Hostopia, prior to the date upon which notice to terminate has been provided to GFL. 

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	8.3
	Neither
the expiration, rescission, termination for default nor any other termination of this Agreement shall:

	(a)
	affect,
limit or nullify the rights of Hostopia with respect to the Templates received and accepted by Hostopia in accordance with the terms of this Agreement;

	(b)
	affect
limit or nullify any representation, warranty or covenant on the part of GFL in connection therewith; or

	(c)
	otherwise
alter or adversely affect any of the rights or privileges of Hostopia hereunder. 

 
 

ARTICLE 9
  NON-SOLICITATION    
    

	9.1
	Both
parties agree that they will not during the term of this Agreement and for five (5) years following termination thereof, Solicit any of the other party's employees for
employment unless approved by the non-soliciting party, in writing in advance. For the purposes of this Agreement "Solicit" means to contact
for any purpose, directly or indirectly.

	9.2
	In
the event that GFL sells any Templates to Hostopia's customers during the term of this Agreement, and for a period of five (5) years thereafter, GFL shall pay to Hostopia an
amount equal to ten percent (10%) of the total fees collected by GFL from Hostopia's customers. 

 
 

ARTICLE 10
  GENERAL    
    

	10.1
	Time
shall be of the essence in this Agreement.

	10.2
	All
notices, requests, approvals, consents and other communications required or permitted under this Agreement shall be in writing and addressed as follows:

	(a)
	if
to GFL: 

GEEKSFORLESS INC.

Attention: President

5915 Airport Road, Suite 110

Mississauga, Ontario

Canada

L4V 1T1

E-mail: president@geeksforless.com

Tel.: 416-883-3000

Fax: 416-883-3003 

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	(b)
	if
to Hostopia 

HOSTOPIA.COM INC.,

Attention: President

5915 Airport Road, Suite 1100

Mississauga, Ontario

Canada

L4V 1T1

E-mail: president@hostopia.com

Ph: 1 800 322-9438

Fax: 1 800 979-9587 

and
shall be sent by email, delivery (written receipt required) or by facsimile transmission (machine confirmation to be retained by sender) and the party sending such notice shall telephone to
confirm receipt. Either party may change its email address, address or facsimile number for notification purposes by giving the other party notice of the new email address, address or facsimile number
and the date upon which it will become effective. A communication shall be deemed to have been received as of the next Business Day following its transmission by facsimile. 

	10.3
	It
is understood that GFL is an independent contractor and as such, GFL shall be solely responsible for the performance of the services hereunder.

	10.4
	This
Agreement constitutes the entire agreement between the parties hereto relating to the engagement of GFL and replaces any and all previous agreements, contracts, understandings
or discussions. There are not and shall not be any oral statements or representations, warranties, undertakings or agreements among the parties relating to the subject matter hereof and this Agreement
may not be amended or modified in any respect except by written instrument signed by the parties hereto.

	10.5
	This
Agreement shall be construed in accordance with, and the rights of the parties shall be governed by, the laws of the Province of Ontario.

	10.6
	In
the event however that a court of law determines that any provision of this Agreement or any alternative provision set out in this Agreement is unenforceable in law or in equity,
then the offending provision shall be reduced in scope or amended to the extent required so that such provision, as so reduced or amended, is enforceable in law and in equity and the unenforceable
part thereof shall be deemed to be severed from the balance, which balance shall survive and be of full force and effect.

	10.7
	The
parties hereto shall do all such further acts and things and execute and deliver all such assurances and other documents and writings as may be required from time to time in
order to fully carry out the terms, provisions and intent of this Agreement.

	10.8
	Each
party hereby affirms that they have read this Agreement, prior to its execution, and have been advised to seek independent legal advice. 

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	10.9
	Hostopia
may assign this Agreement and its rights and obligations hereunder without the consent of GFL. This Agreement shall be binding upon, and shall enure to the benefit of, the
parties hereto and their respective successors and assigns.

	10.10
	Any
failure of Hostopia at any time to require or enforce the performance by GFL of any of the obligations of GFL hereunder shall in no way effect the right of Hostopia to enforce
those obligations at any time thereafter.

	10.11
	This
Agreement may be executed by the parties hereto by facsimile and in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all
such counterparts shall together constitute one and the same agreement. 

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IN WITNESS WHEREOF the parties hereto have caused this Agreement to be signed and delivered by their respective authorized signatories as of the date
set out on the first page of this Agreement. 

	 	 	HOSTOPIA.COM INC.
	

 	
 	

Per:	
 	

/s/ FRANC NEMANIC
 Franc Nemanic
	 	 	 	 	 
	 	 	 	 	 
	 	 	GEEKSFORLESS INC.
	

 	
 	

Per:	
 	

/s/ IGOR NIKOLAICHUK
 Igor Nikolaichuk
	 	 	 	 	 

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Schedule "A"    
    

The
following Templates shall be provided by GFL to Hostopia in accordance with this Agreement. 

	Type 
	 	DESCRIPTION
	 	QUANTITY
	 	DELIVERY DATE
	 	Price

	Advanced Templates	 	Basic Flash	 	500	 	April 1st, 2005	 	$110 USD
	Premium Templates	 	HTML version, with flash and sounds.	 	500	 	September 1st, 2005	 	$140 USD

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QuickLinks

TEMPLATE PURCHASE AGREEMENT

ARTICLE 1 TEMPLATE ARRANGEMENT

ARTICLE 2 PARTIES' RIGHTS

ARTICLE 3 DELIVERY OF TEMPLATES

ARTICLE 4 FEES

ARTICLE 5 REPRESENTATIONS, WARRANTIES AND COVENANTS

ARTICLE 6 INDEMNITY LITIGATION AND LIMITATION OF LIABILITY

ARTICLE 7 CONFIDENTIAL INFORMATION

ARTICLE 8 TERM AND TERMINATION

ARTICLE 9 NON-SOLICITATION

ARTICLE 10 GENERAL

Schedule "A"QuickLinks
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Exhibit 10.13  

 
 

IMAGE LIBRARY AGREEMENT    
    

THIS AGREEMENT made as of the 2nd day of January, 2005 

BETWEEN:

HOSTOPIA.COM INC., a corporation incorporated under the

laws of Delaware (hereinafter referred to as "Hostopia") 

OF
THE FIRST PART 

– and – 

GEEKSFORLESS INC., a corporation incorporated under the

laws of Ontario (hereinafter referred to as the "GFL") 

OF
THE SECOND PART 

WHEREAS Hostopia is a provider of web hosting, electronic commerce, e-mail solutions and other related services through Internet
accessible means; 

AND WHEREAS GFL is a creator of website templates, media content and a provider of programming services; 

AND WHEREAS Hostopia and GFL wish to create an Image Library (as defined below) and share all rights with respect to the Image Library; 

AND WHEREAS Hostopia acknowledges and agrees that GFL is the author and first owner of copyright in GFL's Images (as defined
below) and GFL acknowledges and agrees that Hostopia is the author and first owner of copyright in Hostopia's Images (as defined below). Each party, however, wishes to assign a portion of its
ownership interest in their respective Images to the other so that each may share equally in the rights of ownership. GFL and Hostopia therefore acknowledge and agree that the Image Library
(and all rights therein, including, without limitation, copyright) are the joint property of GFL and Hostopia. Under law, as joint owners, each may act independently of the other in exploiting
the Image Library, with no obligation to account to each other for a share of any profits other than as expressly stated herein; 

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the mutual covenants and agreements herein contained and for other good and valuable
consideration, it is agreed by the parties hereto as follows: 

 
 
 

ARTICLE 1
  IMAGE CREATION ARRANGEMENT    
    

	1.1
	Each
party shall employ one (1) photographer and one (1) clip art artist for the duration of the term of this Agreement. The remuneration for, and all expenses arising
from, the employment of each party's photographer and clip art artist shall be paid by the party employing the photographer and clip art artist.

	1.2
	GFL
shall:

	(a)
	submit
all Images (as defined below) created by GFL's photographer and GFL's clip art artist ("GFL's
Images") during the term of this Agreement to the Image Library;

	(b)
	submit
Images of objects, things, buildings, places and people ("Models") to the Image Library;

	(c)
	download
and store a copy of, the Image Library on its computer system no less than once per month;

	(d)
	enter
into an agreement with all Models the form of which is attached hereto as Exhibit "A" ("Model Agreement"); and

	(e)
	pay
the Models' remuneration and all expenses arising from the employment of the Models, including without limitation the cost of renting a studio or set production.

	1.3
	Hostopia
shall:

	(a)
	submit
all Images created by Hostopia's photographer and Hostopia's clip art artist ("Hostopia's Images") during the term of this
Agreement to the Image Library;

	(b)
	submit
Images of objects, things, buildings or places to the Image Library;

	(c)
	clip,
crop and edit Images; and

	(d)
	name,
categorize and assign key words to the Images.

	1.4
	Other
Definitions:

	(a)
	"Image Library" means all of GFL's Images and Hostopia's Images electronically stored on Hostopia's computer system, and
to which both parties shall have unrestricted access.

	(b)
	"Images" means all still photographs, portraits, plates, negatives, digital images, video, graphics, cartoons, clip art, text, sound,
original work or images in any media or form. 

2

 

	1.5
	The
parties agree that the Image Library shall contain no more than 50,000 Images and that each party shall submit no less than forty percent (40%) of the total number
of Images. 

 
 

ARTICLE 2
  PARTIES' RIGHTS    
    

	2.1
	Hostopia
acknowledges and agrees that GFL shall be deemed to be the author and first owner of copyright in GFL's Images. GFL acknowledges and agrees that Hostopia shall
be deemed to be the author and first owner of copyright in Hostopia's Images. Notwithstanding the foregoing, GFL and Hostopia hereby assign to each other a portion of their ownership interest in
GFL's Images and Hostopia's Images respectively.

	2.2
	GFL
and Hostopia hereby irrevocably waive in favour of the other party, and the other party's licensees, all moral rights that each has or may have, as author, with respect to their
rights within GFL's Images and Hostopia's Images respectively, including, without limitation, the right to attribution of authorship, the right to restrain any distortion, mutilation or
other modification and the right to prohibit any use of GFL's Images and Hostopia's Images respectively, in association with a product, service, cause or institution that might be
prejudicial to GFL's or Hostopia's honour or reputation respectively.

	2.3
	GFL
and Hostopia acknowledge and agree that the Image Library is the joint property of GFL and Hostopia. Both parties shall, under copyright for the full term of copyright in the
Image Library, have the irrevocable, unlimited, paid-up and worldwide right to access and use the Image Library for any purpose whatsoever, including without limitation, the right to
license, sell, assign, transfer, use, re-use, duplicate, distribute, publish, republish, lease, lend, adapt, translate, modify and transmit the Image Library in whole or in part, in
electronic form, print media or otherwise to any third parties, subject to each party's ownership rights herein and Section 8.2.

	2.4
	GFL
and Hostopia further acknowledge and agree that each party may commercially exploit the Image Library independently of the other and any revenues earned by either party with
respect to the Image Library shall be the sole property of the party that received such revenues, subject to Section 8.2. 

 
 

ARTICLE 3
  FEES    
    

	3.1
	GFL
shall pay to Hostopia $1.00 as consideration, and in exchange, for the rights granted herein with respect to Hostopia's Images.

	3.2
	Hostopia
shall pay to GFL $1.00 as consideration, and in exchange, for the rights granted herein with respect to GFL's Images. 

3

 
 
 

ARTICLE 4
  REPRESENTATIONS, WARRANTIES AND COVENANTS    
    

	4.1
	Each
party hereby represents, warrants and covenants that:

	(a)
	It
has the right to enter into this Agreement and to perform the obligations contemplated hereby; and

	(b)
	It
has not made, nor will hereafter make, any commitment or agreement, which will interfere with its obligations, or limit the other party's rights, hereunder.

	4.2
	GFL
represents, warrants and covenants that:

	(a)
	Other
than as set out herein, it is the exclusive owner of GFL's Images incorporated into the Image Library and GFL's Images do not infringe upon or
misappropriate any common law or statutory rights of any person, including without limitation, any copyright, patent right, right of publicity or privacy, trademark, trade secret or other
proprietary rights;

	(b)
	It
has obtained all necessary releases, consents, assignments and similar instruments in order to grant Hostopia the rights to GFL's Images, and, including without
limitation, has entered into the Model Agreement with all Models portrayed in GFL's Images;

	(c)
	It
may further assign to Hostopia the rights granted in the Model Agreements, no claims will be made by any person against Hostopia with respect to the rights hereby assigned by GFL
and any use of GFL's Images will not violate the rights of any person, firm, corporation or other entity;

	(d)
	GFL's
Images are of high quality and will be free of defects in all material respects;

	(e)
	GFL's
Images shall comprise no less than forty percent (40%) of the total number of Images within the Image Library at any time; and

	(f)
	It
shall fix, at its own expense, any material errors or defects, which may be discovered in GFL's Images during the term of this Agreement.

	4.3
	Hostopia
represents, warrants and covenants that:

	(a)
	Other
than as set out herein, it is the exclusive owner of Hostopia's Images incorporated into the Image Library and Hostopia's Images do not infringe upon or misappropriate any
common law or statutory rights of any person, including without limitation, any copyright, patent right, right of publicity or privacy, trademark, trade secret or other proprietary rights;

	(b)
	It
has obtained all necessary releases, consents, assignments and similar instruments in order to grant GFL the rights to Hostopia's Images; 

4

 

	(c)
	No
claims will be made by any person against GFL with respect to the rights hereby assigned by Hostopia, and any use of Hostopia's Images will not violate the rights of any person,
firm or corporation or other entity;

	(d)
	Hostopia's
Images are of high quality and will be free of defects in all material respects;

	(e)
	Hostopia's
Images shall comprise no less than forty percent (40%) of the total number of Images within the Image Library at any time; and

	(f)
	It
shall fix, at its own expense, any material errors or defects, which may be discovered in Hostopia's Images during the term of this Agreement. 

 
 

ARTICLE 5
  INDEMNITY AND LIMITATION OF LIABILITY    
    

	5.1
	Each
party will indemnify and hold harmless the other party, and their respective directors, officers, agents, suppliers, associates, successors, licensees, and assigns from any and
all claims, demands, suits, losses, costs, expenses (including reasonable counsel fees), damages or recoveries (including any amount paid in settlement) which may be obtained against, imposed upon or
suffered by the other party and other parties referred to above, by reason of (a) the breach by a party of any of the representations, warranties or covenants herein contained, or (b) a
party's performance of its obligations in accordance with this Agreement.

	5.2
	EACH PARTY'S AGGREGATE LIABILITY TO THE OTHER, INCLUDING, WITHOUT LIMITATION, FOR ALL BREACHES OF THIS AGREEMENT, SHALL BE LIMITED TO $250,000. IN NO EVENT,
WHETHER AS A RESULT OF BREACH OF CONTRACT, TORT LIABILITY (INCLUDING NEGLIGENCE) OR OTHERWISE, SHALL EITHER PARTY OR THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, AGENTS OR REPRESENTATIVES BE
LIABLE TO THE OTHER PARTY FOR ANY INDIRECT, SPECIAL, INCIDENTAL, EXEMPLARY, PUNITIVE, CONSEQUENTIAL OR THIRD PARTY DAMAGES. 

 
 

ARTICLE 6
  CONFIDENTIAL INFORMATION    
    

	6.1
	All
documentation and information designated at the time of disclosure by the party disclosing the information (the "Disclosing
Party") as proprietary or confidential, including without limitation drawings, source code, computer program listings, techniques, algorithms and processes, and technical and
marketing information ("Confidential Information") which is supplied by the Disclosing Party in connection with this Agreement shall be treated
confidentially by the recipient of the confidential information ("Recipient") and its employees, and shall not be disclosed by the Recipient without the
Disclosing Party's prior written consent. 

5

 
	6.2
	Information
shall not be considered to be Confidential Information if it (1) is already or otherwise becomes publicly known through no act of Recipient; or (2) is
lawfully received from third parties subject to no restriction of confidentiality; or (3) can be shown by Recipient to have been independently developed by it; or (4) is authorized by
the Disclosing Party to disclose, copy or use; or (5) is required to be disclosed in the context of an administrative or judicial proceeding.

	6.3
	The
duty of confidentiality with respect to confidential information shall survive the termination or expiration of this Agreement for a period of five (5) years. 

 
 

ARTICLE 7
  TERM AND TERMINATION    
    

	7.1
	If
one party materially breaches or is in material default of any obligations hereunder, which material breach or default has not been cured within thirty (30) calendar days
after receipt of written notice of such default from the non-defaulting party or within such additional cure period as the non-defaulting party may authorize in writing, then
the non-breaching party may terminate this Agreement immediately.

	7.2
	Either
party may terminate this Agreement at any time upon thirty (30) calendar days written notice to the other party for any reason whatsoever.

	7.3
	This
Agreement shall automatically terminate when the Image Library contains 50,000 Images.

	7.4
	Upon
the date of termination, Hostopia and GFL will cease providing Images to the Image Library.

	7.5
	Neither
the expiration, rescission, termination for default nor any other termination of this Agreement shall:

	(a)
	affect,
limit or nullify the rights of each party with respect to their respective rights in the Image Library;

	(b)
	affect
limit or nullify any representation, warranty or covenant on the part of either party in connection therewith; or

	(c)
	otherwise
alter or adversely affect any of the rights or privileges of either party hereunder. 

6

 

 
 

ARTICLE 8
  NON-SOLICITATION    
    

	8.1
	Both
parties agree that they will not during the term of this Agreement and for five (5) years following termination thereof, Solicit any of the other party's employees for
employment unless approved by the non-soliciting party, in writing in advance. For the purposes of this Agreement "Solicit" means to contact
directly or indirectly.

	8.2
	In
the event that GFL licenses any Image in the Image Library to Hostopia's customers directly or indirectly, or otherwise receives remuneration for any Image in the Image Library
from Hostopia's customers directly or indirectly, during the term of this Agreement, and for a period of five (5) years thereafter, GFL shall pay to Hostopia an amount equal to ten percent
(10%) of the total fees paid by Hostopia's customers directly or indirectly to GFL. Nothing in this Agreement shall prevent Hostopia or GFL from: (a) licensing any Image in the Image Library
to; or (b) otherwise receiving remuneration for any Image in the Image Library from; any third party, including without limitation Hostopia's customers (other than as stated above with respect
to GFL), and nothing herein shall require either party to share with the other party any fees or profits derived therefrom (other than as stated above with respect to GFL). 

 
 

ARTICLE 9
  GENERAL    
    

	9.1
	All
notices, requests, approvals, consents and other communications required or permitted under this Agreement shall be in writing and addressed as follows:

	(a)
	if
to GFL: 

GEEKSFORLESS INC.

Attention: President

5915 Airport Road, Suite 110

Mississauga, Ontario

Canada

L4V 1T1

E-mail: president@geeksforless.com

Tel.: 416-883-3000

Fax: 416-883-3003 

	(b)
	if
to Hostopia 

HOSTOPIA.COM INC.,

Attention: President

5915 Airport Road, Suite 1100

Mississauga, Ontario

Canada

L4V 1T1

E-mail: president@hostopia.com

Ph: 1 800 322-9438

Fax: 1 800 979-9587 

7

 

and
shall be sent by email, delivery (written receipt required) or by facsimile transmission (machine confirmation to be retained by sender) and the party sending such notice shall telephone to
confirm receipt. Either party may change its email address, address or facsimile number for notification purposes by giving the other party notice of the new email address, address or facsimile number
and the date upon which it will become effective. A communication shall be deemed to have been received as of the next Business Day following its transmission by facsimile. 

	9.2
	It
is understood that each party is an independent contractor and as such, shall be solely responsible for the performance of their respective obligations hereunder.

	9.3
	This
Agreement constitutes the entire agreement between the parties hereto relating to the matters herein and replaces any and all previous agreements, contracts, understandings or
discussions. There are not and shall not be any oral statements or representations, warranties, undertakings or agreements among the parties relating to the subject matter hereof and this Agreement
may not be amended or modified in any respect except by written instrument signed by the parties hereto.

	9.4
	This
Agreement shall be construed in accordance with, and the rights of the parties shall be governed by, the laws of the Province of Ontario.

	9.5
	In
the event that a court of law determines that any provision of this Agreement or any alternative provision set out in this Agreement is unenforceable in law or in equity, then the
offending provision shall be reduced in scope or amended to the extent required so that such provision, as so reduced or amended, is enforceable in law and in equity and the unenforceable part thereof
shall be deemed to be severed from the balance, which balance shall survive and be of full force and effect.

	9.6
	The
parties hereto shall do all such further acts and things and execute and deliver all such assurances and other documents and writings as may be required from time to time in order
to fully carry out the terms, provisions and intent of this Agreement.

	9.7
	Each
party hereby affirms that they have read this Agreement, prior to its execution, and have been advised to seek independent legal advice.

	9.8
	Each
party may assign this Agreement and its rights and obligations hereunder. This Agreement shall be binding upon, and shall enure to the benefit of, the parties hereto and their
respective successors and assigns.

	9.9
	This
Agreement may be executed by the parties hereto by facsimile and in separate counterparts, each of which when so executed and delivered shall be deemed an original, but all such
counterparts shall together constitute one and the same agreement. 

8

 

IN WITNESS WHEREOF the parties hereto have caused this Agreement to be signed and delivered by their respective authorized signatories as of the date
set out on the first page of this Agreement. 

	 	 	HOSTOPIA.COM INC.
	

 	
 	

Per:	
 	

/s/ FRANC NEMANIC

	 	 	 	 	Franc Nemanic
	 	 	 	 	 
	 	 	 	 	 
	 	 	GEEKSFORLESS INC.
	

 	
 	

Per:	
 	

/s/ IGOR NIKOLAICHUK

	 	 	 	 	Igor Nikolaichuk
	 	 	 	 	 

9

QuickLinks

IMAGE LIBRARY AGREEMENT

ARTICLE 1 IMAGE CREATION ARRANGEMENT

ARTICLE 2 PARTIES' RIGHTS

ARTICLE 3 FEES

ARTICLE 4 REPRESENTATIONS, WARRANTIES AND COVENANTS

ARTICLE 5 INDEMNITY AND LIMITATION OF LIABILITY

ARTICLE 6 CONFIDENTIAL INFORMATION

ARTICLE 7 TERM AND TERMINATION

ARTICLE 8 NON-SOLICITATION

ARTICLE 9 GENERAL

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]