Document:

EXHIBIT 10.42

 

CERTAIN IDENTIFIED INFORMATION HAS BEEN
EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE REGISTRANT IF PUBLICLY
DISCLOSED.

 

 

 

 

TRANSPOSITIONAL
MODULATION

 TECHNOLOGY

  

LICENSING
AGREEMENT

 

BETWEEN

 

 

COMSOVEREIGN HOLDING
CORP. as Licensee

 A Nevada
Corporation

 

AND

 

 

TM IP HOLDINGS,
LLC as Licensor

An Arizona Limited
Liability Company

 

AND

 

 

TM TECHNOLOGIES,
INC.

the Interested-Party

 A Delaware
Corporation

 

    

     

    

 

Party
Details

 

Licensee

 

	Name:	 	COMSovereign Holding Corp.
	 	 	 
	State Organized:	 	Nevada
	 	 	 
	Address:	 	5000 Quorum Drive STE 400, Dallas, TX 75254
	 	 	 
	Contact Person:	 	Dr. Dustin McIntire
	 	 	 
	Phone Number:	 	On file
	 	 	 
	Email Address:	 	DMcIntire@COMSovereign.com

 

Licensor

 

 

	Name:	 	TM IP HOLDINGS, LLC
	 	 	 
	State Organized:	 	Arizona
	 	 	 
	Address:	 	6969 E. Sunrise Drive, Suite 100, Tucson, AZ 85750 USA
	 	 	 
	Contact Person:	 	Daniel Hodges
	 	 	 
	Phone Number:	 	520-512-5299
	 	 	 
	Email Address:	 	DHodges@TMTechnologies.com

 

    

     

    

 

Table
of Contents

 

	 	 	Page
	1.	Definitions and Interpretation	1
	 	1.1	Definitions	1
	 	1.2	Interpretation	7
	2.	Term of
    Agreement	8
	 	2.1	Term	
	3.	Appointment	8
	 	3.1	Appointment	
	4.	Exclusivity	8
	 	4.1	Exclusivity	
	5.	Target
    Performance Requirements	9
	 	5.1	No Guarantee	9
	6.	Exploitation
    of License	9
	 	6.1	Exploitation of License	9
	7.	Transfer of Technology	9
	 	7.1	Initial Technology	9
	 	7.2	Future Technology	9
	 	7.3	Ongoing Support	10
	 	7.4	Provision of Personnel	10
	 	7.5	Access to Licensor’s Premises	10
	8.	Appointment of Resellers and Channel Partners	10
	 	8.1	Appointment	
	 	8.2	Selection	
	 	8.3	Limitation of Liability	
	9.	Developed Technology	
	 	9.1	Right to Develop, Own and Sell Technology	
	10.	Royalties	10
	11.	Warranties	11
	 	11.1	Mutual warranties	11
	12.	Liability and Indemnity	12
	 	12.1	Consequential loss	12

 

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	13.	Technology
    Warranty	12
	 	13.1	Limited
    Warranty	
	 	13.2	Developed Technology
    Warranty	
	14.	Support	12
	 	14.1	Responsibility for
    Support	12
	15.	Customer
    Integration	12
	 	15.1	Licensor to Assist
    with Customer Integration	12
	 	15.2	Payment for Integration	12
	16.	Insurance	13
	 	16.1	Insurance
    Policies and requirements	13
	17.	Intellectual
    Property Rights	13
	18.	Patents	14
	 	18.1	Scope of Clause	14
	 	18.2	Warranties	14
	 	18.3	Indemnities	15
	 	18.4	Failure to grant or
    subsequent revocation of patent	16
	 	18.5	Patent infringement	16
	19.	Termination	17
	 	19.1	No termination by Licensor
    without cause.	17
	 	19.2	Termination for default	17
	 	19.3	Consequences of termination
    for default	17
	 	Upon termination of this
    Agreement for any reason whatsoever:	
	 	19.4	Survival of rights
    and obligations	18
	20.	Other Obligations	18
	 	20.1	Notification of Conflict
    of Interest	18
	 	20.2	Records	18
	21.	Confidential
    Information	18
	 	21.1	Confidentiality Obligations	18
	 	21.2	Permitted Disclosures	19
	22.	Dispute
    Resolution	19
	 	22.1	Application of procedure	19
	 	22.2	Discussions between
    the parties	19
	 	22.3	Referral to a Panel
    / Executive Panel	19
	 	22.4	Procedure	20
	 	22.5	Condition precedent
    to litigation	20
	 	22.6	Performance of obligations
    pending resolution of dispute	20

 

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	23.	Notices	20
	 	23.1	Notice requirements	20
	 	23.2	Official Notices	20
	 	23.3	Deemed receipt	21
	24.	Assignment and Subcontracting	21
	 	24.1	Assignment	21
	 	24.2	Assignment of Technology or Intellectual Property	21
	25.	Force Majeure	21
	26.	General	22
	 	26.1	Relationship between the Licensor and the Licensee	22
	 	26.2	Further Assurance; Interested-Party’s Consent and Assurances	22
	 	26.3	Amendment	22
	 	26.4	Waivers	23
	 	26.5	Set off	23
	 	26.6	Costs and expenses	23
	 	26.7	Entire Agreement	23
	 	26.8	Governing law and submission to jurisdiction	23
	 	26.9	Counterparts	23

 

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Background

 

		A.	The Licensor is a limited liability company that has been organized to serve as an intellectual
property holding company for technology that increases information data rates for a given bandwidth using existing infrastructure.
This technology is referred to as Transpositional Modulation (TM).

 

		B.	For consideration of a one-time, up-front payment of $ * USD or in-kind consideration via engineering
services, and future Royalty Payments as set forth and defined herein, the Licensor wishes to grant the Licensee, an exclusive
right to sell, market, manufacture, integrate and further develop the Licensor’s Technology specifically for use in wireless
telecommunications radio equipment.

 

		C.	The Licensor warrants and represents that it shall grant additional identical rights in TM related
intellectual property to Licensee during the term if, and as, it develops further related technology.

 

Provisions

 

		1.	Definitions and Interpretation

 

		1.1	Definitions

 

The following words have these
meanings in this Agreement unless the contrary intention appears:

 

Agreement means this
Agreement including any attached Schedules.

 

Business Day means any
day between the hours of usual trading that is not a Saturday, Sunday, a bank holiday or public holiday in the Country, State or
Territory where the Licensee has its registered business or, if not incorporated, conducts its business.

 

Change in Control means
for a corporation, a change in:

 

		(a)	control of more than half the voting rights attaching to shares in the corporation; or

 

		(b)	control of more than half the issued shares of the corporation (not counting any share which carries
no right to participate beyond a specified amount in the distribution of either profit or capital).

 

Confidential Information
of a party:

 

		(a)	means:

 

		(i)	the terms of this Agreement; and

 

		(ii)	all information, know-how, ideas, concepts, technology, manufacturing processes, industrial, marketing
and commercial knowledge of a confidential nature (whether in tangible or intangible form) relating to or developed in connection
with or in support of the business of the party

 

		(iii)	which is disclosed, communicated or delivered to, learnt by, or which otherwise comes to the knowledge
of or into the possession of the other party under or in connection with this Agreement,

 

	*	Confidential material redacted 

 

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		(b)	but does not include:

 

		(i)	information which is or becomes generally available in the public domain (other than through any
breach of confidence);

 

		(ii)	information rightfully received by the other party from a third person who is under no obligation
of confidentiality in relation to the information and who has not obtained that information either directly or indirectly as a
result of a breach of any duty of confidence owed to the first party; or

 

		(iii)	information which has been independently developed by the other party.

 

Conflict of Interest
means any conflict of interest of any nature including:

 

		(a)	any actual or threatened litigation, proceeding, claim or allegation by a Party, its Related Companies
or any of its employees, subcontractors or agents against or in any way involving the other Party;

 

		(b)	any actual or threatened litigation, proceeding, claim or allegation against or in any way involving
a Party, its Related Companies or any of its employees, subcontractors or agents, which materially affect in an adverse manner
the ability of the other Party to obtain the full benefit of its rights under this Agreement or a Contract;

 

		(c)	any proven or alleged breach or default by a Party of any law, regulation, Agreement, order or
award binding on the Party, whether admitted or contested, which may materially affect in an adverse manner the ability of the
other Party to obtain the full benefit of its rights under this Agreement or a Contract;

 

		(d)	any Insolvency Event in relation to a Party; or

 

		(e)	the supply or proposed supply of services to or from a person in a manner or to an extent that
may:

 

		(i)	adversely affect the a Party’s ability to compete in a market; or

 

		(ii)	prejudice or be likely to prejudice the confidentiality or privacy of any of a Party’s Confidential
Information.

 

Customer Integration
means customizing the Products or Technology to allow a customer of the Licensee to gain full benefit of a Product or the Technology,
including, but not limited to:

 

		(f)	ensuring Product or Technology compliance
with any and all local standards or Legislative Requirements,
including electrical, safety and environmental and certification standards, as required by any authority in any Country, State
or Territory;

 

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		(g)	ensuring that a Product or Technology is compatible with the customer’s software and hardware
systems; and

 

		(h)	ensuring that a Product or Technology meets minimum requirements as notified by the customer.

 

Licensee includes
any officer, director, agent and/or employee and/or a related body
corporate of the Licensee

 

Documentation means
handbooks, information, drawings and other documents or material (whether in written or electronic form) which is otherwise supplied
or to be supplied by or on behalf of the Licensee under the Agreement or any Contract.

 

Engineering Services means
design, engineering, integration and testing services for customer and/or country specific requirements.

 

EFT means
electronic transfer of funds to a bank account nominated by the recipient of the funds.

 

Executive Panel means
the panel consisting of the Chief Executive Officer or equivalent of the Licensee and a person holding a position at the same level
within the Licensor’s organization, or their respective nominees.

 

Force Majeure means:

 

		(a)	riot, war, invasion or act of foreign enemies, acts of terrorism, or hostilities;

 

		(b)	ionizing radiation or contamination, radio activity from any nuclear fuel or from any nuclear waste
from the combustion of nuclear fuel, radioactive, toxic, explosive or other hazardous properties of any explosive assembly or nuclear
component;

 

		(c)	pressure waves caused by aircraft or other aerial devices travelling at sonic or supersonic speeds; and

 

		(d)	earthquakes, flood, fire or other physical natural disaster, including severe weather conditions.

 

Hardware means
all physical items (including spares) used in connection with this Agreement, including any hardware, equipment, infrastructure
and firmware and any Modifications to them, however, excludes any hardware which is not manufactured by a Party or under the direction
of a Party.

 

Insolvency Event means
the happening of any of these events:

 

		(a)	an application is made to a court for an order or an order is made that a body corporate be wound
up, and the application is not withdrawn, stayed or dismissed within 21 days of being made; or

 

		(b)	an application is made to a court for an order appointing a liquidator or provisional liquidator
in respect of a body corporate and the application is not withdrawn, stayed or dismissed within 21 days of being made, or one of
them is appointed, whether or not under an order; or

 

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		(c)	except to reconstruct or amalgamate while solvent, a body corporate enters into, or resolves to
enter into, a scheme of arrangement, deed of company arrangement or composition with, or assignment for the benefit of, all or
any class of its creditors, or it proposes a reorganisation, moratorium or other administration involving any of them; or

 

		(d)	a body corporate resolves to wind itself up, or otherwise dissolve itself, or gives notice of intention
to do so, except to reconstruct or amalgamate while solvent or is otherwise wound up or dissolved; or

 

		(e)	a body corporate is or states that it is insolvent; or

 

		(f)	a body corporate takes any step to obtain protection or is granted protection from its creditors,
under any applicable Legislation or an administrator is appointed to a body corporate; or

 

		(g)	a person becomes an insolvent under administration as defined in the US Bankruptcy Code or action
is taken which could result in that event; or

 

		(h)	anything analogous or having a substantially similar effect to any of the events specified above
happens under the law of any applicable jurisdiction.

 

Insurance Policies has
the meaning given in Clause 15 (Insurance).

 

Intellectual Property includes
but not limited to:

 

		(a)	inventions, discoveries and novel designs, whether or not registered or registrable as patents
or designs, including developments or improvements of equipment, products, technology, processes, methods or techniques;

 

		(b)	copyright (including future copyright) throughout the world in all literary works, artistic works,
computer Software, and any other works or subject matter in which copyright subsists and may in the future subsist;

 

		(c)	confidential information and trade secrets;

 

		(d)	trade and service marks (whether registered or unregistered), business names, trade names, domain
names, logos and get-up;

 

		(e)	proprietary rights under the applicable U.S. Code, and

 

		(f)	specifically includes those patents identified
in Annexure A to this Agreement

 

Interested-Party means
TM Technologies, Inc. (a Delaware Corporation).

 

Legislation means
acts, ordinances, regulations, rules, by-laws, orders, awards, proclamations and subordinate legislation.

 

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Legislative Requirements
includes:

 

		(a)	Legislation having effect from time to time in the jurisdiction where any part of this Agreement
will be performed; and

 

		(b)	certificates, Licenses, consents, permits, approvals, determinations requirements and directions
issued or required from time to time by organisations having jurisdiction in connection with the performance of this Agreement.

 

Level 1 Support means
basic level technical support for the Technology and includes basic troubleshooting methods such as resolving username and password
problems, reinstalling Software, verification of correct Hardware and Software set up, and assistance with basic functionality
of the Software and/or Hardware.

 

Level 2 Support means
technical support that goes beyond the capabilities of Level 1 Support and includes onsite training, installation or replacement
of Hardware and/or Software, Software repair, diagnostic testing, and the utilization of remote tools to take over the customer’s
machine for the purpose of troubleshooting and resolving the problem.

 

Level 3 Support means
technical support for problems that cannot be solved by Level 1 or Level 2 Support and includes repairs to Software source code
or inherent problems with Hardware, or requires reengineering of the technology to solve the problems in either Software or Hardware
but does not include addition of new capabilities or functionalities.

 

Marketing Material includes
all present and future promotional and advertising materials, Technology data sheets, sizing guides/tools, sales aids, sales brochures,
orderable parts lists, shipping dimensions and weight lists, case studies, white papers, customer testimonials, customer success
stories and Technology awards and other related materials.

 

Official Notice means
a written notice, approval, consent, request or demand expressly required under this Agreement.

 

Quarter means
a 3-month period ending on the last day of March, June, September and December

 

Panel means
the panel established in accordance with Clause 21.3(a) (Referral to a Panel/Executive Panel) which shall consist of a nominated
senior representative of each of the Licensor and the Licensee.

 

Party means
a party to this Agreement and includes any officer, director, agent
and/or employee and/or a related body corporate of the Party;

 

Patent means
all those patents existing in the ownership name of, or under the full control of, Licensor, as well as any other patents which
are or become registered in the Licensor’s name or which the Licensor is or becomes in any way Licensed or authorized to
deal with.

 

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Product means
any commercialized item which is developed or manufactured by the Licensee, or with the Licensee’s authority, pursuant to
this Agreement, and includes any Product which is based on or in any way incorporates the Technology.

 

Technology means
any Intellectual Property, products, technology or other thing that is developed, marketed, Licensed to, licensed by or sold by
the Licensor in its ordinary course of business, and includes:

 

		(a)	software and any documentation or packaging, labelling, marketing or promotional material associated with the Technology;

 

		(b)	hardware;

 

		(c)	the Patents;

 

		(d)	any component or part of the Technology; and

 

		(e)	maintenance, support and training relating to the Technology.

 

Representative means,
in respect of a party, any person acting for or on behalf of the party and includes any director, officer, employee, contractor
or professional adviser of the party. However, the Licensee is not a Representative of the Licensor.

 

Royalty means
an amount equating to [*]% of the gross profits of the Licensee from the sale or license of Products incorporating and using the
Technology, payable to TM Technologies, Inc., the Interested-Party

 

Software means
any program, data or databases (in any material form) supplied or to be supplied by or on behalf of the Licensor to the Licensee
under this Agreement and any Modifications to them.

 

Licensor includes
any officer, director, agent and/or employee and/or any of the following entities:

 

		(a)	the Licensor;

 

		(b)	a related body corporate of the Licensor;

 

		(c)	recipient of the Licensee goods and services.

 

Taxes means
all taxes including sales taxes, excise duty, stamp duties, custom duties, payroll taxes, government duties, charges and fees,
other than income tax and gross sales tax.

 

Territory means
the entire world where it is legal for U.S. companies and individuals to conduct business operations, exclusive of sales to the
U.S. federal government, its agencies or representatives for the benefit of the U.S. government.

 

Term means
the term of this Agreement calculated in accordance with Clause 2.

 

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Third Party means
a person who is not a Party to this Agreement.

 

Third Party Claims means
any actual, threatened or potential claim, demand, proceeding, suit, objection or other challenge:

 

		(a)	affecting the Licensee’s ownership of the Intellectual Property Rights in the Territory of
the Technology or Engineering Services; or

 

		(b)	that the manufacture, importation, sale, hire, supply, offering for sale, hire, supply or other
use of the Technology or Engineering Services infringes or may infringe the Intellectual Property Rights of a Third Party.

 

		1.2	Interpretation

 

		(a)	where any word or phrase is given a defined meaning any other part of speech or other grammatical
form of that word or phrase has a corresponding meaning;

 

		(b)	headings are inserted for convenience and do not affect the interpretation of this Agreement;

 

		(c)	a reference to a Clause, paragraph, schedule or annexure is to a Clause or paragraph of, or schedule
or annexure to, this Agreement, and a reference to this Agreement includes any schedule or annexure;

 

		(d)	a reference to a document or instrument includes the document or instrument as novated, altered,
supplemented or replaced from time to time;

 

		(e)	a reference to USD, dollar or $ is to United States currency;

 

		(f)	a reference to a party is to a party to this Agreement, and a reference to a party to this or any
other document includes the party's executors, administrators, successors and permitted assigns and substitutes;

 

		(g)	a reference to a person includes a natural person, partnership, body corporate, association, governmental
or local authority or agency or other entity;

 

		(h)	words denoting the singular shall include the plural and vice versa and words denoting any gender
shall include all genders

 

		(i)	a reference to a statute, ordinance, code or other law includes regulations and other instruments
under it and consolidations, amendments, re-enactments or replacements of any of them;

 

		(j)	the meaning of general words is not limited by specific examples introduced by including, for example
or similar expressions;

 

		(k)	a rule of construction does not apply to the disadvantage of a party because the party was responsible
for the preparation of this Agreement or any part of it;

 

		(l)	Any reference to time shall be the time in Arizona (UTC – 7), USA; and

 

		(m)	An agreement on the part of, or in favour of, two or more persons binds or is for the benefit of
them jointly and severally.

 

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		2.	Term of Agreement

 

This Agreement commences on
the date of this Agreement and continues for an initial period of 5 years, is exclusive for a period of 6 months from the date
hereof, and is automatically renewable for subsequent 2-year renewal terms, or until it is terminated in accordance with the provisions
of this Agreement.

 

		3.	Appointment and Production Rights

 

In consideration for the payment
of the Royalty, as set out in Clause 9, the Licensor grants the Licensee the following:

 

		(a)	A technology License to enjoy, commercialize and exploit the Intellectual Property of the Licensor
including the right to manufacture, have manufactured, use, market and sell Products in the Territory for the direct or indirect
benefit of Licensee customers during the Term;

 

		(b)	The right to further improve or enhance Technology and to enjoy, commercialize and exploit such
Technology including the right to manufacture, have manufactured, use, market and sell the Technology in the Territory for the
Term;

 

		(c)	A commitment by the Licensor that it shall provide all assistance reasonably necessary to enable
the Licensee to obtain full benefit of the License granted under this Clause; and

 

		(d)	The right to appoint Third Parties to produce and manufacture the Products subject to written consent
by Licensor, which consent shall not unreasonably withheld.

 

		4.	Exclusivity

 

For a period of 6-months from
the date hereof, the Licensor agrees:

 

		(a)	Not to license any other person to use the Intellectual Property of the Licensor in any way for
the direct or indirect benefit of any user in the Territory during the Term;

 

		(b)	To use all reasonable measures not to allow any person other than the Licensee to market, sell
or otherwise supply Products in the Territory for the direct or indirect benefit of any user during the Term; and

 

		(c)	Not to sell or market Products in the Territory for the direct or indirect benefit of any user.

 

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		5.	Target Performance Requirements

 

No Guarantee

 

The Licensee does not guarantee
a minimum Royalty to the Licensor or Interested-Party (TM Technologies, Inc.) until the end of two years from the date of this
agreement, at which time the minimum royalty shall become $ [*] USD, and remain at least that amount per year thereafter.

 

		6.	Exploitation of License

 

		6.1	Exploitation of License

 

The Licensee, at its expense,
must use its commercially reasonable efforts to commercialize and exploit the Intellectual Property of the Licensor and to manufacture,
have manufactured, use, market and sell the Products for the purpose of such commercialization and exploitation. These efforts
are strictly and solely for the specified Territory for the direct or indirect benefit of Licensee customers under this Agreement.

 

		7.	Transfer of Technology

 

		7.1	Initial Technology

 

Within 28 days from the date
of this Agreement the Licensor shall supply to the Licensee all things necessary for the Licensee to exercise its rights under
Clause 3, including, but not limited to:

 

		(a)	Copies of all Patents, including related documentation;

 

		(b)	Developer documentation and specification materials;

 

		(c)	All designs, files, software, firmware, source code, object code, mask works, design tools and
other technical material under the control of Licensor and/or Interested Party necessary for Licensee to commercialize the rights
licensed to Licensee hereunder; and

 

		(d)	Such other technical resources, including people, technology and certification knowledge for the
Territory as the Parties agree are reasonably necessary for the purposes of this Agreement.

 

		7.2	Future Technology

 

Licensor
shall promptly supply to the Licensee all things of the nature described in Clause 7.1 necessary for Licensee to commercialize
the rights licensed to Licensee hereunder.

 

	*	Confidential material redacted

 

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		7.3	Ongoing Support

 

For the Term of this Agreement
the Licensor must at its own expense, except as otherwise provided by this Agreement, in good faith promptly and regularly supply
to the Licensee assistance, within thirty (30) days of a request for same, or such shorter period where a more immediate response
is reasonably necessary in the opinion of the Licensee including (but without limitation):

 

		(a)	advice on the technical characteristics of the Technology
and potential processes used to manufacture the Products;

 

		(b)	operating manuals relating to special tools, machinery
and other equipment suitable for use in the manufacture of the Product to ensure the full exploitation of the License granted
under this Agreement; and

 

		(c)	except where prohibited by US Federal Laws, regulations
or mandates, all details of all Licensor’s Intellectual Property and other developments in the Licensor’s Intellectual
Property which become known to, owned by or Licensed to the Licensor including (but without limitation) general information concerning
the commercialization of the Technology and manufacture of the Product and the use of the Intellectual Property and all changes
in Intellectual Property previously supplied.

 

		7.4	Provision of Personnel

 

At the reasonable request of
the Licensee the Licensor will provide personnel at nominated production facilities of the Licensee for a period of two (2) weeks,
or such other period as is agreed between the Parties. All reasonable and proper expenses incurred by the Licensor’s personnel
in dealing with each such request, including transportation and accommodation, are to be paid by the Licensee.

 

		7.5	Access to Licensor’s Premises

 

Except
where prohibited by US Federal Laws, regulations or mandates, representatives of the Licensee (who must first have signed a confidentiality
agreement in terms reasonably required by the Licensor) can visit the premises of the Licensor for the purpose of obtaining full
particulars and technical assistance in the application of information and data to be disclosed pursuant to this Agreement. Each
Party must pay and bear all expenses incurred by its representatives making such visits and is responsible for loss or damage resulting
from injury or death to its representatives during such visits unless caused by the negligence of the other party; and agrees to
indemnify the other party against any such loss or damage.

 

		8.	Appointment of Resellers and Channel Partners

 

NOT EFFECTIVE THIS SECTION

 

		9.	Royalties and License Royalties

 

	9.1	(a)	In consideration of the Licenses and rights granted under this Agreement the Licensee must pay the Royalty to the Interested-Party:

 

		(b)	The Royalty must be computed at the end of each Quarter.

 

		(c)	If this Agreement is terminated for any reason during
a Quarter then, for the purpose of this Clause, the date of termination is the end of that current quarter.

 

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		(d)	The Licensee must pay the Royalty for each Quarter free
of all taxes or charges within 30 days of the end of the Quarter.

 

		(e)	Royalties referred to in this Clause are exclusive of
gross sales tax.

 

		(f)	The Licensee must notify the Interested-Party with each
quarterly payment of the Royalty of:

 

		i.	the
number of Products manufactured and/or sold during the Quarter.

 

		ii.	the
net profit of each of the Products sold during the Quarter.

 

		iii.	the
                                         manner in which the net profit is calculated including discounts, transportation charges,
                                         purchasing costs, insurance and taxes.

 

	9.2	(a)	In
                                         consideration of Licensee total specific product development funding and rights granted
                                         to Licensor under this Agreement, Licensor shall pay the Licensee Royalty, if any, to
                                         Licensee:

 

		(b)	The
                                         Licensee Royalty must be computed at the end of each Quarter.

 

		(c)	If
                                         this Agreement is terminated for any reason during a Quarter then, for the purpose
                                         of this Clause, the date of termination is the end of that current quarter.

 

		(d)	Licensor must pay the Licensee Royalty for each Quarter
free of all taxes or charges within thirty (30) days of the end of the Quarter.

 

		(e)	Licensee Royalties referred to in this Clause are exclusive
of gross sales tax.

 

		(f)	TMT must notify Licensee with any quarterly payment of
the Licensee Royalty of:

 

		(i)	the number of Funded Products sold during the Quarter.

 

		(ii)	the net profit of each of the Funded Products sold during
the Quarter.

 

		(iii)	the manner in which the net profit is calculated including
discounts, transportation charges, purchasing costs, insurance and taxes.

 

		10.	Warranties

 

Mutual warranties

 

Each of the parties represents
and warrants to the other that:

 

		(a)	it has full power and authority and the legal right to sign and deliver this Agreement, and to
perform its obligations;

 

		(b)	this Agreement and the transactions contemplated by it do not contravene its constituent documents
or any law, regulation or official directive or any of its obligations or undertakings;

 

		(c)	this Agreement has been duly signed and delivered on its behalf;

 

		(d)	the obligations undertaken by it in this Agreement are enforceable against it in accordance with
the terms; and

 

		(e)	its officers and representatives described in this Agreement or nominated under this Agreement
have the authority to act for and on behalf of it in relation to the matters within their authority under this Agreement, unless
the party notifies the other party to the contrary.

 

    11

     

    

 

		11.	Liability and Indemnity

 

		11.1	Consequential loss

 

Without prejudice to any liquidated
damages provisions stipulated for delay, non-performance or otherwise, neither party is liable to the other under Agreement, law
of tort (including negligence), statute, in equity or otherwise for any kind of indirect or consequential loss or damage arising
out of or in connection with this Agreement.

 

		12.	Technology Warranty

 

The Licensor’s Technology
is warranted as being free from defects in material and workmanship.

 

		13.	Support

 

		13.1	Responsibility for Support

 

		(a)	The Licensee shall be responsible for providing Level 1 Support and Level 2 Support for any Products
sold or supplied by the Licensee and may appoint a third party to provide the said support.

 

		(b)	The Licensee will attempt to undertake Level 3 Support, however if, in its sole opinion it, or
any Third Party, is incapable of doing so then the Licensor agrees to provide such support. In consideration for this the Licensee
will pay to the Licensor an amount equal to the Licensor’s reasonable costs of providing the support. Such amount will be
paid within 30 days of the provision of such support.

 

		14.	Customer Integration

 

		14.1	Licensor to Assist with Customer Integration

 

As and when reasonably required
by the Licensee, the Licensor shall provide any and all assistance requested by the Licensee to enable Customer Integration. Such
assistance will include integration to the standards or specifications as notified to the Licensor by the Licensee.

 

		14.2	Payment for Integration

 

In consideration of Clause
14.1 the Licensee will pay to the Licensor an amount equal to all reasonable costs incurred by the Licensor in complying with Clause
14.1. Such amount will be paid within 30 days of the successful integration of the Technology or Products into the systems of the
Reseller, Channel Partner or customer.

 

    12

     

    

 

		15.	Insurance

 

		15.1	Insurance Policies and requirements

 

The Licensee and the Licensor
may (where applicable), at their sole discretion, and at their own cost, take out and maintain during the term of this Agreement:

 

		(a)	the following policies:

 

		(i)	professional indemnity insurance;

 

		(ii)	public liability insurance;

 

		(iii)	product liability insurance; and

 

		(b)	workers compensation insurance as per statutory requirements, all collectively (the “Insurance
Policies”) in respect of liability or loss which may be incurred or suffered in connection with the performance or purported
performance of the Licensee’s and the Licensor’s (where applicable) obligations under this Agreement.

 

		16.	Intellectual Property Rights

 

		(a)	The Licensee recognizes that all Intellectual Property existing as of the date of this agreement,
including the trademarks, registered designs, patents, trade secrets and copyrights used on or in relation to the Technology are
the property of the Licensor.

 

		(b)	The Licensee will, to the best of its ability, not do or permit to be done any act or thing which
might in any way impair the goodwill or other rights of the Licensor in its Intellectual Property, or which might otherwise prejudice
or damage the reputation of the Licensor’s Intellectual Property.

 

		(c)	Each party will promptly give written notice to the other party of all acts of unfair competition,
passing off or infringement of the Licensor’s Intellectual Property that come to either party’s knowledge.

 

		(d)	The Licensor grants to the Licensee an unlimited License to affix and use the Licensor’s
Intellectual Property in the Territory on and in connection with the marketing and sale of the Products to Licensee customers subject
to the terms and conditions of this Agreement, and during the term of this Agreement.

 

		(e)	The Licensor warrants to the Licensee that the Licensor has full right, power and authority to
License the Licensee to use the Licensor’s Intellectual Property in the Territory for the direct and/or indirect benefit
of non-U.S. government users and that the use by the Licensee of the Licensor’s Intellectual Property hereunder in the Territory
for the direct and/or indirect benefit of such users will not infringe the rights of any third party in the Territory. The Licensor
further warrants to the Licensee that the Licensor will do all such acts and things as may be necessary to maintain and keep on
foot any registrations in relation to the Licensor’s Intellectual Property in the Territory.

 

    13

     

    

 

		(f)	If at any time during the Term the Licensee becomes aware that an infringement of the Licensor’s
Intellectual Property is occurring or about to occur the Licensee will forthwith notify the Licensor of the facts relating to such.
The Licensor will then take such action, in its sole discretion, as it deems necessary to protect the Trademarks and the Licensee
will render to the Licensor all possible assistance including, when necessary, joining with the Licensor in any legal proceedings.
The Licensor will bear the expense of all proceedings and will retain any costs and damages resulting therefrom. In that event
the Licensee will not take any action with regard to such infringement nor suspect an infringement without the prior consent of
the Licensor.

 

		(g)	Should the Licensor in its discretion decide, within 60-days of notice by Licensee of adverse condition,
not to commence legal proceedings in respect of the Trademarks infringement then the Licensee may at its own expense commence such
proceedings, if necessary in the name of the Licensor.

 

		(h)	Any party commencing proceedings will conduct the same with due diligence and will not abandon
the same or any right of appeal without first giving the other party the right to take over their conduct. Any costs and damages
hereunder will accrue to the party having final conduct of the proceedings.

 

		17.	Patents

 

		17.1	Scope of Clause

 

Without in any way limiting
the rights, terms and conditions contained in Clause 16, this Clause 17 applies specifically to any Patents that are the subject
of this Agreement.

 

		17.2	Warranties

 

		(a)	the Licensor has and for the duration of this Agreement will continue to have full right and title
to the Patents as necessary for Licensee to commercialize the Technology within the Territory for the direct and/or indirect benefit
of its intended customers and users;

 

		(b)	the Licensor is entitled to make all patent applications which it has made, and no invention which
is the subject of any such application is part of the state of the art in the part of the Territory where the application is filed;

 

		(c)	all patent applications comprised in the Patents have been made in the prescribed form and in the
prescribed manner;

 

		(d)	the Patents include all patents or applications for a patent made, owned by or registered in the
name of the Licensor or to which the Licensor is beneficially entitled which are or may be material to the Technology;

 

		(e)	the use and License for use by the Licensee of the Patents do not infringe any patent, trade mark,
registered design, copyright or similar or other industrial commercial property rights of any person, nor give rise to payment
by the Licensee of any royalty to any third party or to any liability to pay compensation;

 

    14

     

    

 

		(f)	all designs, specifications, plans, drawings supplied to the Licensee by the Licensor will be to
the best of the knowledge and belief of the Licensor true, accurate, reliable and up-to-date; and

 

		(g)	the Licensor will use its best endeavors to obtain the grant of a patent pursuant to each application
made at the date of this Agreement and made in respect of any of the Patents or any patentable Licensor’s Intellectual Property
in any jurisdiction in the Territory, and (without prejudice to the foregoing) will at its own expense:

 

		(i)	procure publication;

 

		(ii)	to the extent that it has not already done so, make requests to the relevant patent authority in
the prescribed form for a preliminary examination and search and pay the prescribed fee;

 

		(iii)	request the relevant patent authority to make a substantive examination and pay the prescribed
fee;

 

		(iv)	so far as may be required make observations and amend the application;

 

		(v)	in respect of the Patents pay all renewal fees necessary to keep such Patents in force, each such
payment to be effected not later than seven days before the last date and upon demand produce to the Licensee each renewal certificate;
and

 

		(vi)	notify the Licensee of any withdrawal of or amendment to any application and if any application
is treated as refused.

 

		17.3	Indemnities

 

The Parties indemnify each
other against any losses, costs, actions, claims, demands, expenses, judgments, court orders or other liabilities arising directly
or indirectly out of or in connection with:

 

		(a)	any breach by a non-breaching Party of any of the representations, warranties or undertakings contained
in this Clause;

 

		(b)	any claim made or threatened, whether by legal proceedings or otherwise, against the other Party
by a third party on the ground that, by virtue of rights to which such third party lays claim under letters patent or copyright
(whether registered as a design or not) or any other similar right or claim including (but without limitation) rights arising from
the disclosure under cover of confidence, such third party is entitled to prevent or interfere with the free use of any or all
of the Patents or Trade Secrets by a Party pursuant to this Agreement; or

 

		(c)	any claim against the other Party by its customer in respect of any similar loss or injury and
court fees and expenses of damages and costs and loss or injury suffered by compliance with an injunction on the part of such customer.

 

    15

     

    

 

		17.4	Failure to grant or subsequent revocation of patent

 

In the event that no exclusivity
exists due to the refusal to grant the patent applications or subsequent invalidity, revocation or expiration of Patents in any
part of the Territory which affects the profitability of any of the Licensee of the manufacture, use or sale of Product, then:

 

		(a)	the Royalty payable to TM Technologies, Inc. arising from the country or countries so affected
by the loss of exclusivity consequent upon the refusal to grant or subsequent revocation or declaration of invalidity of the relevant
Patents, is reduced with effect from the decision of the relevant patent authority (or the equivalent in the relevant part(s) of
the Territory) or, as the case may be, the Court of first instance, by fifty per cent (50%) such Royalty to be payable in the event
of a court order against which no party has appealed declaring the relevant patents valid or (as the case may be) granting the
relevant patent; and/or

 

		(b)	the parties agree to a lesser proportion of Royalties to be payable to the Interested-Party from
such country or countries in the event that the Licensee must demonstrate good and sufficient reason for such reduction.

 

		17.5	Patent infringement

 

		(a)	The Licensor appoints and constitutes the Licensee, its non-exclusive agent during the Term of
this Agreement, to assert from time to time in the name of and for the account of the Licensor but for the benefit of and at the
expense of the Licensee whatever claims and rights the Licensor may have arising from any actual or apparent infringement of the
Patents within the Territory. The Licensee, in its sole discretion, may assert and enforce all such claims and rights and institute
and prosecute an action against such infringement, or assign such claims to the Licensor to assert and enforce all such claims
and rights and institute and prosecute an action against such infringement.

 

		(b)	In the event the Licensee asserts a claim or institutes an action as a result of an actual or apparent
infringement of the Patents, the Licensee must immediately notify the Licensor.

 

		(c)	The Licensor must, if required by the Licensee and if necessary for the purposes of this Clause,
lend its name and otherwise do all acts and things the Licensee may reasonably require to assist in performing its obligations
under this Clause.

 

		(d)	The Licensee must keep the Licensor indemnified from and against all loss, costs and damage suffered
or incurred by the Licensor arising out of the Licensee exercising its powers and performing its obligations under this Clause.

 

		(e)	The proceeds from any judgment or settlement made by the Licensee in any action brought by it pursuant
to this Clause must be used to reimburse the Licensor for all expenses incurred by it in assisting the Licensee in prosecuting
the action, and to pay the Licensee’s costs and expenses incurred in such prosecution, and the remainder are the Licensee’s.

 

The Licensor must execute all
documents and do all things reasonably necessary to aid and co-operate in the prosecution of any action brought by the Licensee
pursuant to this Clause.

 

    16

     

    

 

		18.	Termination

 

		18.1	No termination by Licensor without cause.

 

The Licensee or Licensor may
not terminate this Agreement without cause in whole or in part.

 

		18.2	Termination for default

 

Either party may, without prejudice
to any other rights and remedies it may have under this Agreement or at law, immediately terminate this Agreement in whole or in
part by notice in writing to the defaulting party, if:

 

		(a)	the defaulting party is in material breach of any of its material obligations under this Agreement
and:

 

		(i)	the breach is not capable of remedy; or

 

		(ii)	if the failure or breach (as the case may be) is capable of remedy, the defaulting party has failed
to rectify that failure or breach (as the case may be) within 30 days after receipt of written notice or such other period agreed
between the parties in writing;

 

		(b)	an Insolvency Event occurs which materially impairs the ability of Licensor or Licensee, or any
successor thereto, to substantially perform the respective obligations of each such party under this Agreement; or

 

		(c)	an event of Force Majeure which materially impairs the ability of Licensor or Licensee, or any
successor thereto, to substantially perform the respective obligations of each such party under this Agreement has continued for
more than 180 Days.

 

		18.3	Consequences of termination for default

 

Upon
termination of this Agreement for any reason whatsoever:

 

		(a)	The Licensee must deliver up to the Licensor all technical manuals, advertising materials and brochures
in respect of the Technology in its possession or under its control, or in the possession or under the control of its servants
or agents;

 

		(b)	The Licensee has no further rights to manufacture and sell the Products and Technologies;

 

    17

     

    

 

		(c)	the provisions of Clause 9 continue to bind the parties until all Royalties and Licensee Royalties
payable under this Agreement are paid.

 

		(d)	The termination of this Agreement must not affect any right of action which may have accrued to
either party in respect of any breach prior to the date of such termination.

 

		(e)	Upon the termination of this Agreement the Licensee is entitled to complete all contracts already
entered into for manufacture and/or sale of Products and to the extent necessary use the Licensor’s Intellectual Property.

 

		18.4	Survival of rights and obligations

 

The expiry or termination of
this Agreement does not affect:

 

		(a)	any rights of the parties which may have accrued before the date of expiry or termination; or

 

		(b)	the rights and obligations of the parties under Clauses 9.1 (solely with respect to Licensee’s
ownership and license to Licensor of intellectual property developed by Licensee, 10 (Warranties), 11 (Liability and Indemnity),
16 (Intellectual Property Rights), 18 (Termination), 20 (Confidential Information) and 21 (Dispute Resolution) and of these terms
and any other Clauses which are expressed to survive termination or expiry of this Agreement.

 

		19.	Other Obligations

 

		19.1	Notification of Conflict of Interest

 

If a Conflict of Interest or
risk of Conflict of Interest arises, a Party will notify the other Party immediately of the nature and extent of that Conflict
of Interest or risk of Conflict of Interest.

 

		19.2	Records

 

Each Party will keep full and
proper books of accounts and records relating to the performance of this Agreement during the term of this Agreement and for seven
years after the termination or expiry of this Agreement.

 

		20.	Confidential Information

 

		20.1	Confidentiality Obligations

 

The Licensor and the Licensee
each acknowledge and agree that each of them will:

 

		(a)	take all action reasonably necessary to maintain the confidentiality of the other party's Confidential
Information;

 

		(b)	not disclose the other party's Confidential Information to any person except as permitted under
this Clause; and

 

		(c)	use or reproduce the other party's Confidential Information only for the purposes of this Agreement.

 

    18

     

    

 

		20.2	Permitted Disclosures

 

The Licensor or the Licensee
(Disclosing Party) may disclose the Confidential Information of the other party:

 

		(a)	to a Representative of the Disclosing Party or Licensor who needs to know the Confidential Information
for the purposes of this Agreement and subject to the Disclosing Party taking reasonable steps to ensure that any such Representative
is fully aware of the confidential nature of the Confidential Information of the other party before the disclosure is made;

 

		(b)	which is required to be disclosed by law or by the listing rules of any stock exchange where the
party’s securities are listed or quoted, provided that the Disclosing Party has:

 

		(i)	given the other party prior notice where practicable; and

 

		(ii)	provided all assistance and co-operation which the other party reasonably considers necessary for
that purpose;

 

		(c)	in respect of which the other party has given its consent to disclosure or use, which consent may
be given or withheld in its absolute discretion; or

 

		(d)	as permitted by any other provision of this Agreement.

 

		21.	Dispute Resolution

 

		21.1	Application of procedure

 

Each of the parties shall use
their reasonable endeavours to co-operatively resolve a dispute.

 

		21.2	Discussions between the parties

 

If a dispute arises, the dispute
shall be referred to the Licensee Representative and the Licensor Representative for resolution.

 

		21.3	Referral to a Panel / Executive Panel

 

		(a)	If the dispute is not resolved by the Licensee’s Representative and the Licensor’s
Representative within 5 Business Days, the dispute shall be referred to a Panel for resolution. Each party shall nominate a representative
for the Panel within 5 days of the referral to the Panel.

 

		(b)	If the dispute is not resolved by the Panel within 10 Business Days of such referral, the Panel
shall within 3 Business Days refer the dispute for resolution to the Executive Panel.

 

		(c)	If the dispute is not resolved by the Executive Panel within 10 days of such referral, either party
may commence mediation or, should mediation not result in a resolution to the dispute, legal proceedings.

 

    19

     

    

 

		21.4	Procedure

 

		(a)	The Panel and the Executive Panel shall determine their own procedures for the resolution of the
dispute.

 

		(b)	Decisions of the Panel or the Executive Panel may only be made by unanimous Agreement of the members
of the Panel or the Executive Panel, as the case may be.

 

		(c)	Any decision of the Panel or the Executive Panel shall be binding on the parties.

 

		21.5	Condition precedent to litigation

 

Neither party shall commence
legal proceedings unless the parties have undertaken the discussions and referral to a Panel and Executive Panel in accordance
with this Clause and those processes have failed to resolve the dispute.

 

		21.6	Performance of obligations pending resolution of dispute

 

		(a)	Prior to the resolution of a dispute, the parties shall continue to perform their respective obligations
under this Agreement to the extent that those obligations are not the subject matter of the dispute.

 

		(b)	Nothing in this Clause shall prevent a party from choosing to perform an obligation that is the
subject matter of the dispute.

 

		22.	Notices

 

		22.1	Notice requirements

 

A notice will be in writing
and will be deemed to have been given and received if:

 

		(a)	left at the address of the addressee or sent by prepaid ordinary post (airmail if posted to or
from a place outside the USA) to the address of the addressee set out on the front page of this Agreement, or if the addressee
notifies another address then to that address;

 

		(b)	sent by facsimile to the facsimile number of the addressee which is set out in the front page of
this Agreement, or if the addressee notifies another facsimile number then to that facsimile number; or

 

		(c)	e-mailed to the e-mail address of the addressee set out on the front page of this Agreement, or
if the addressee notifies another e-mail address then to that e-mail address.

 

		22.2	Official Notices

 

		(a)	An Official Notice will be in writing and will be deemed to have been given and received if it
complies with the notice requirements for mail or facsimile.

 

		(b)	An Official Notice cannot be sent by email.

 

    20

     

    

 

		22.3	Deemed receipt

 

		(a)	In the case of a letter sent by post, unless there is evidence to the contrary, the letter is taken
to be received on the third (or seventh, if posted to or from a place outside the USA) day after posting.

 

		(b)	In the case of a facsimile, production of a transmission report by the machine from which the facsimile
was sent which indicates that the facsimile was sent in its entirety to the facsimile number of the recipient notified for the
purpose of this Clause shall be prima facie evidence that the facsimile has been received.

 

		(c)	In the case of an e-mail:

 

		(i)	production of a delivery notification statement from the computer from which the e-mail was sent
which indicates that the e-mail was sent in its entirety to the e-mail address of the recipient shall be prima facie evidence that
the e-mail has been received;

 

		(ii)	where there is no delivery notification statement from the computer from which the e-mail was sent,
the date and the time of dispatch of the e-mail shall be prima facie evidence of the date and time that the e-mail was received;
and

 

		(iii)	where an “Out of Office” reply or similar response is delivered to the computer from
which the e-mail was sent, the e-mail will not be taken to be received and the sender shall use the alternative methods of sending
the notice in accordance with this Clause.

 

		23.	Assignment and Subcontracting

 

		23.1	Assignment

 

The Licensee and/or the Licensor
will not, without the other party’s prior written approval (which may not be unreasonably withheld but may be given subject
to reasonable conditions), assign this Agreement or any payment or any other right, benefit or interest under them to another person.

 

		23.2	Assignment of Technology or Intellectual Property

 

The Licensor will not assign
its Intellectual Property rights in the Technology to a person who is not a party to this Agreement unless it also assigns its
rights and obligations under this agreement to that other person. An assignment of the Licensor’s rights includes, but is
not limited to, a Change in Control of the Licensor or a sale of any Intellectual Property rights in the Technology.

 

		24.	Force Majeure

 

		(a)	An obligation of a party under this Agreement will be suspended for the time and to the extent
that it is prevented from or delayed in complying with that obligation by an event of Force Majeure.

 

		(b)	A party is not liable to another party for any loss of any kind whatsoever whether directly or
indirectly caused or incurred by the other party by reason of any failure or delay in the performance of its obligations under
this Agreement which is due to the occurrence of an event of Force Majeure.

 

    21

     

    

 

		25.	General

 

		25.1	Relationship between the Licensor and the Licensee

 

		(a)	Subject to the provisions of this Agreement, the Licensee will ensure that it does not represent
itself, and its employees or agents do not represent themselves, as employees or agents of the Licensor.

 

		(b)	The Licensor may, from time to time, by notice in writing, appoint the Licensee as its agent in
relation to any activity, matter or thing specified in the notice and to the extent specified in the notice.

 

		(c)	The Licensee will seek the Licensor’s prior written approval to undertake any activity beyond
the scope of its appointment under the provisions of paragraph (b).

 

		25.2	Further Assurance; Interested-Party’s Consent and Assurances

 

Each party will promptly execute
all documents and do all things that the other party from time to time reasonably requires of it to effect, perfect or complete
the provisions of this Agreement and any transaction contemplated by them. The parties acknowledge and agree that the Interested-Party
possesses certain rights and is bound by certain obligations with respect to the Technology as the result of a license of the Technology
from Licensor to Interested-Party and other related agreements by and between Licensor and the Interested-Party. To the extent
that the Interested-Party’s consent is required to effect, perfect or complete the provisions of this Agreement and any transaction
contemplated by them, the Interested-Party hereby unconditionally grants such consent. To the extent that the Interested-Party’s
cooperation is required for Licensor and/or Licensee to perform its respective obligations hereunder, the Interested-Party hereby
covenants and agrees that it will provide such cooperation and shall promptly execute all documents and do all things that Licensor
and/or Licensee from time to time reasonably requires of it to effect, perfect or complete the provisions of this Agreement and
any transaction contemplated by them. The Interested-Party acknowledges and agrees that the foregoing consent and assurances shall
have the effect or limiting and/or restricting the license rights of the Interested-Party such that the Interested-Party may not
offer, sell, license or otherwise provide products and services incorporating the Technology for the direct or indirect benefit
of Limited Users within the Territory.

 

		25.3	Amendment

 

A provision of, or a right
under, this Agreement may not be varied, supplemented or replaced except in writing executed by the parties.

 

    22

     

    

 

		25.4	Waivers

 

		(a)	Except as provided at law or in equity or elsewhere in this Agreement, a provision of, or a right
created under, this Agreement may not be waived except in writing by the party granting the waiver.

 

		(b)	A failure by a party to insist upon a strict performance of any of the terms and conditions of
this Agreement is not deemed a waiver of any subsequent breach or default of the terms and conditions of this Agreement.

 

		25.5	Set off

 

Either party may set off or
apply any amounts payable by a party to the other party under this Agreement after giving the other party 7-days’ prior written
notice of its intention to do this.

 

		25.6	Costs and expenses

 

		(a)	Damages incurred, and liability suffered, by a party covered by indemnification by another party
under this Agreement shall include all related costs and other expenses (including reasonable legal fees and expenses).

 

		(b)	Each party will pay its own costs and expenses in relation to the negotiation, preparation, execution,
delivery, stamping, registration, completion, variation and discharge of this Agreement.

 

		25.7	Entire Agreement

 

This Agreement constitutes
the entire Agreement between the parties concerning the transactions contemplated by them and supersedes all previous negotiations
and Agreements concerning this transaction.

 

		25.8	Governing law and submission to jurisdiction

 

		(a)	This Agreement and the transactions contemplated by it will be governed by and construed in accordance
with the laws in force in the State of Arizona, United States of America.

 

		(b)	Each party irrevocably and unconditionally submits to the non-exclusive jurisdiction of the courts
of the State of Arizona, United States of America, and courts of appeal from them for determining any dispute concerning this Agreement
or the transactions contemplated by it.

 

		(c)	Each party waives any right it has to object to an action being brought in those courts including,
but not limited to, claiming that the action has been brought in an inconvenient forum or that those courts do not have jurisdiction.

 

		25.9	Counterparts

 

This Agreement may be executed
in any number of counterparts which, when taken together, shall constitute one instrument.

 

    23

     

    

 

Signing section

 

Executed as an agreement on August
3, 2020

 

	Executed for and on behalf of	)	 
	TM TECHNOLOGIES, INC.	)	 
	A Delaware corporation	)	 
	by their duly authorized officer(s):	)	 

 

	/s/
    Daniel Hodges	 
	Daniel Hodges, CEO

 

	Executed for and on behalf of	)	 
	TM IP HOLDINGS, LLC	)	 
	AN ARIZONA COMPANY	)	 
	by their duly authorized officer(s):	)	 

 

	/s/ Daniel Hodges	 
	Daniel Hodges, CEO

 

	Executed for and on behalf of	)	 
	COMSOVEREIGN HOLDING CORP.	)	 
	A NEVADA corporation	)	 
	by their duly authorized manager(s):	)	 

 

	/s/ Dustin McIntire	 
	Dr. Dustin McIntire, CTO

 

 

24Exhibit

Exhibit 10.17

VAIL RESORTS, INC. 

RESTRICTED SHARE UNIT AGREEMENT

THIS AGREEMENT is between Vail Resorts, Inc., a Delaware corporation (the “Company”), and the employee who receives this Agreement in connection with an award of Restricted Share Units under the Company’s 2015 Omnibus Incentive Plan (the “Plan”).

NOW, THEREFORE, in consideration of the premises and mutual covenants contained herein, and for other good and valuable consideration, the parties hereto agree as follows.

1.Award of Restricted Share Units. Pursuant to the provisions of the Plan, the terms of which are incorporated herein by reference, you may, from time to time, be awarded Restricted Share Units (the “Award”), subject to the terms and conditions of the Plan and those herein set forth. An Award is granted as of the date set forth in the notification to you of such Award (the “Date of Grant”). Capitalized terms used herein and not defined shall have the meanings set forth in the Plan. In the event of any conflict between this Agreement and the Plan, the Plan shall control.

2.Terms and Conditions. It is understood and agreed that the Award of Restricted Share Units is subject to the following terms and conditions:

3.Vesting of Award. Subject to Sections 4 and 5 below and the other terms and conditions of this Agreement, the Award shall become vested as provided in the notification to you of such Award.

4.Change in Control. Notwithstanding any provision of this Agreement to the contrary, in the event that the successor corporation in a Change in Control does not assume or substitute for the Award (or portion thereof), the Committee will (i) cause any or all of such Award (or portion thereof) to terminate in exchange for cash, rights or other property having a value (as determined by the Committee acting in good faith) equal to the formula or fixed price per share paid to holders of Shares pursuant to such Change in Control, with respect to each Share underlying the Restricted Share Units, or (ii) cause the Participant to fully vest in the Award and all restrictions on the Award to lapse, and, with respect to any performance criteria, all performance goals will be deemed achieved at the greater of actual performance or 100% of target levels and all other terms and conditions shall be deemed met,  in each case, to the extent the Award otherwise remains outstanding and has not otherwise vested or been forfeited as of any such Change in Control.

Notwithstanding anything herein to the contrary, in the event that the Award is assumed or substituted or otherwise continued by a successor in a Change in Control, the following terms shall apply. In the event of your termination of continuous service without Cause by the successor or its affiliates in a Change in Control during the 12-month period following a Change in Control, the Award shall fully vest and all restrictions on the Award shall lapse, and, with respect to any performance criteria, all performance goals will be deemed achieved at the greater of actual performance or 100% of target levels and all other terms and conditions shall be deemed met, in each case, to the extent the Award otherwise remains outstanding and has not otherwise vested or been forfeited. “Cause” shall have the equivalent meaning or the same meaning as “cause” or “for cause” set forth in any employment, consulting, or other agreement for the performance of services between you and the Company or an Affiliate or, in the absence of any such agreement or any such definition in such agreement, such term shall mean (i) the failure by you to perform, in a reasonable manner, your duties consistent with your duties immediately prior to a Change in Control (provided, that a material reduction in your compensation as in effect immediately prior to the Change in Control shall excuse any failure to perform such duties, unless otherwise agreed by you), (ii)  any violation or breach by you of your employment, consulting or other similar agreement with the Company or an Affiliate, if any, (iii) any violation or breach by you of any non-competition, non-solicitation, non-disclosure and/or other similar agreement with the Company or an Affiliate, (iv) any act by you of dishonesty or bad faith with respect to the Company or an Affiliate, (v) use of alcohol, drugs or other similar substances in a manner that adversely affects your work performance, or (vi) the commission by you of any act, misdemeanor, or crime reflecting unfavorably upon you or the Company or any Affiliate. The good faith determination by the Company of whether your service was terminated by the Company for “Cause” shall be final and binding for all purposes hereunder. For the avoidance of doubt, the foregoing shall apply to the extent and in a manner consistent with the requirements of Section 409A of the Internal Revenue Code.

The obligations of the Company hereunder shall be binding upon any successor of the Company.

5.Termination of Service; Forfeiture of Unvested Shares; Death. In the event of a termination of your employment with the Company and its Subsidiaries prior to the date that the Award otherwise becomes vested, the unvested portion of the Award shall immediately be forfeited by you and become the property of the Company. Notwithstanding the foregoing, if your employment with the Company and/or its Subsidiaries terminates as a result of your death, then the Award, if not already vested under Section 3, will vest in full as of the date of death.

6.Delivery. Promptly following the vesting of Restricted Share Units pursuant to the terms and conditions hereof and the satisfaction of any withholding tax liability pursuant to Section 11 hereof, but no later than March 15 of the calendar year following the calendar year in which such vesting occurs, the certificates evidencing the Shares to which the vested Restricted Share Units relate shall be delivered to you or other evidence of the Shares shall be provided to you. In the event of your death and the vesting of this Award pursuant to Section 5 above, the Shares shall be delivered to the executor or administrator of your estate or to the person or persons to whom your rights under this Agreement shall pass by will or by the laws of intestate succession.

7.Rights of a Stockholder. You shall have no right to transfer, pledge, hypothecate or otherwise encumber the Restricted Share Units. You shall not have the rights of a stockholder with respect to the Restricted Share Units, including the right to receive dividends.

8.No Right to Continued Employment. The Award shall not confer upon you any right with respect to continuance of employment by the Company nor shall this Award interfere with the right of the Company to terminate your employment at any time.

9.Transfer of Shares. The Shares delivered hereunder, or any interest therein, may be sold, assigned, pledged, hypothecated, encumbered, or transferred or disposed of in any other manner, in whole or in part, only in compliance with the terms, conditions and restrictions as set forth in the governing instruments of the Company, applicable federal and state securities laws or any other applicable laws or regulations and the terms and conditions hereof. No Shares shall be issued or transferred unless and until any then applicable requirements of state and federal laws and regulatory agencies have been fully complied with to the satisfaction of the Company and its counsel.

10.Expenses of Issuance of Shares. The issuance of stock certificates hereunder shall be without charge to you. The Company shall pay any issuance, stamp or documentary taxes (other than transfer taxes) or charges imposed by any governmental body, agency or official (other than income taxes) by reason of the issuance of Shares.

11.Withholding. No later than the date of delivery of Shares pursuant to Section 6 hereunder, you shall pay to the Company or make arrangements satisfactory to the Committee regarding payment of any federal, state or local taxes of any kind required by law to be withheld at such time with respect to the Award and the Company shall, to the extent permitted or required by law, have the right to deduct from any payment of any kind otherwise due to you, federal, state and local taxes of any kind required by law to be withheld at such time. You may elect to have the Company withhold Shares to pay any applicable withholding taxes resulting from the Award, in accordance with any rules or regulations of the Committee then in effect. Notwithstanding the foregoing, the maximum number of Shares that may be withheld from the Award to satisfy any federal, state, or local tax withholding requirements upon the vesting of, or payment of Shares pursuant to, the Award, as applicable, may not exceed such number of Shares having a Fair Market Value equal to the minimum statutory amount required by the Company to be withheld and paid to any such federal, state, or local taxing authority with respect to such vesting or payment of Shares, or such greater amount as may be permitted under applicable accounting standards.

12.References. References herein to your rights and obligations shall apply, where appropriate, to your legal representative or estate without regard to whether specific reference to such legal representative or estate is contained in a particular provision of this Agreement.

13.Notices. Any notice required or permitted to be given under this Agreement shall be in writing and shall be deemed to have been given when delivered personally or by courier, or sent by certified or registered mail, postage prepaid, return receipt requested, duly addressed to the party concerned at the address indicated below or to such changed address as such party may subsequently by similar process give notice of, or by email or other electronic means using a system maintained by the Company when transmitted without a notice of failed delivery:

If to the Company:    Vail Resorts, Inc.
390 Interlocken Crescent

Suite 1000
Broomfield, Colorado 80021 Attention: General Counsel

		
	If to you:
	At your most recent address shown on the Company’s corporate records, or at any other address which you may specify in a notice delivered to the Company in the manner set forth herein.

14.Adjustments. In  the event that the Committee shall determine that  any dividend in Shares, recapitalization, Share split, reverse split, reorganization, merger, consolidation, spin- off, combination, repurchase, share exchange, or other similar corporate transaction or event affects the Shares such that an adjustment is appropriate in order to prevent dilution or enlargement of your rights under this Award, then the Committee shall make such equitable changes or adjustments as it deems appropriate and adjust, in such manner as it deems equitable, including, without limitation, the number and kind of Shares, other securities or other consideration issued or issuable with respect to this Award. In the event that the Company shall declare an extraordinary cash dividend, then the Committee shall in its discretion either (i) pay you cash when and as your Restricted Share Units vest in an amount equal to the number of Restricted Share Units vested multiplied by the per share amount of such extraordinary cash dividend; or (ii) make such other adjustment as the Committee determines would provide you with a substantially similar benefit.

15.Successors and Assigns. The Company may assign any of its rights under this Agreement. This Agreement will be binding upon and inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer set forth herein, this Agreement will be binding upon you and your beneficiaries, executors, administrators and the person(s) to whom the Restricted Share Units may be transferred by will or the laws of descent or distribution.

16.Severability. The invalidity or unenforceability of any provision of the Plan or this Agreement shall not affect the validity or enforceability of any other provision of the Plan or this Agreement, and each provision of the Plan and this Agreement shall be severable and enforceable to the extent permitted by law.

17.Section 409A. This Agreement is intended to comply with Section 409A of the Code or an exemption thereunder and shall be construed and interpreted in a manner that is consistent with the requirements for avoiding additional taxes or penalties under Section 409A of the Code. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement comply with Section 409A of the Code and in no event shall the Company be liable for all or any portion of any taxes, penalties, interest or other expenses that may be incurred by you on account of non-compliance with Section 409A 
  of the Code.

18.Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, without giving effect to principles of conflict of laws.

19.Binding Effect. By accepting the Award, you agree to be bound by this Agreement.

20.Confidentiality.  As part of your responsibilities with the Company, you may   have access to or become familiar with information concerning the business of the Company that is of a confidential nature. By accepting this Award, you agree that you will not discuss or disclose any confidential information to any outside individual or institution or to use it for your own benefit except on the direct written authorization of a member of the Executive Committee. Please refer to the Confidential Information section in the Employee Guide for additional information, including a description of the information considered confidential. The Company will pursue legal remedies for unauthorized use or disclosure of sensitive, confidential information.

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