Document:

Exhibit 10.13

Exhibit 10.13

FIRST AMENDMENT

TO

EMPLOYMENT AGREEMENT

FIRST AMENDMENT TO EMPLOYMENT AGREEMENT dated as of March 31, 2011 by and between Veramark
Technologies, Inc. a Delaware corporation with its principal office located at 1565 Jefferson Road,
Suite 120, Rochester, NY 14623 (the “Company”), and Tom McAlees, an individual residing at
XXXX XXXX XXXX, Victor, NY 14564 (“Executive”).

WHEREAS, the Company and the Executive entered into an Employment Agreement, dated as of
January 25, 2008 (the “Employment Agreement”); and

WHEREAS, the term of the employment of Employee by the Company under the Employment Agreement
terminated as of the date hereof, March 31, 2011; and

WHEREAS, the parties wish to amend the Employment Agreement so as to extend the term of the
employment of Employee thereunder, to confirm the granting to Employee of certain stock options,
subject to earning and vesting provisions, to increase the compensation payable to Employee and to
add certain other provisions, all as provided herein;

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained and
intending to be bound, the parties agree as follows:

1. Amendment of Employment Agreement — Term. In accordance with Section 2. of the
Employment Agreement, the term thereof is extended for a first one-year renewal term, beginning on
April 1, 2011 and ending on March 31, 2012 (the “First Renewal Term”). The provisions of
Section 2 of the Employment Agreement shall otherwise remain in full force and effect.

2. Amendment of Employment Agreement — Base Compensation. Section 3(a) of the
Employment Agreement is amended so as to provide that the Salary (as defined therein) shall be
$157,500.00 during the First Renewal Term. The provisions of Section 3(a) of the Employment
Agreement shall otherwise remain in full force and effect.

3. Amendment of Employment Agreement — Incentive Stock Options. There is added to
section 3 of the Employment Agreement a new subsection 3(c), which shall read in its entirety as
follows:

(c) Stock Options. On April 12, 2011, the Compensation Committee of the Board of
Directors agreed, and this Agreement confirms, that the Company will grant the Executive options to
purchase up to 50,000 shares of the Company’s $.10 par value common stock on and as of the date
that this Agreement is executed. Such options will be non-qualified options, and the exercise
price of such option will be the closing price of such common stock on [April 15, 2011]. Options
to purchase up to 25,000 of such shares will vest based upon achievement of targets set forth in,
and in accordance with, the Company’s management incentive plan for 2011, which shall be
established by the Board of Directors or Compensation Committee of the Company, in its sole
discretion. Options to purchase up to an additional 25,000 of such shares will vest based upon
achievement of targets set forth in, and in accordance with, the Company’s management incentive
plan for 2012, which shall be established by the Board of Directors or Compensation Committee of
the Company, in its sole discretion. Such
options shall have a term of 10 years and shall otherwise be on the terms and conditions contained
in, and shall be subject to, the Company’s 1998 Long Term Incentive Plan.

 

 

 

4. Amendment of Employment Agreement — Severance upon Termination without Cause. The
second sentence of Section 6(c) of the Employment Agreement is amended so as to read in its
entirety as follows: “In addition, and subject to the execution and delivery by Executive of a
severance agreement and release in form and substance satisfactory to the Company, the Company
shall continue to pay Executive the Salary at the rate in effect on the Date of Termination for
period equal to six (6) months from the Date of Termination plus an amount equal to that amount of
the Performance Bonus paid to Executive for the prior calendar year pro-rated to the Date of
Termination.”

5. Amendment of Employment Agreement — Change of Control. There is added a new
Section 6A to the Employment Agreement, which shall read in its entirety as follows:

6A. Change of Control.

(a) Definition. For purposes of this Employment Agreement, a “Change of Control” shall mean:

(i) the approval by the stockholders of the Company, and the completion of the transaction
resulting from such approval, of (A) the sale or other disposition of all or substantially all the
assets of the Company or (B) a complete liquidation or dissolution of the Company;

(ii) the approval by the stockholders of the Company, and the completion of the transaction
resulting from such approval, of a merger, consolidation, reorganization or similar corporate
transaction, whether or not the Company is the surviving corporation in such transaction, in which
the outstanding shares of common stock of the Company are converted into (A) shares of stock of
another company, other than a conversion into shares of voting common stock of the successor
corporation (or a holding company thereof) representing fifty percent (50%) or more of the voting
power of all capital stock thereof outstanding immediately after the merger or consolidation or (B)
other securities (of either the Company of another company) or cash or other property;

(i) pursuant to an affirmative vote of a holder or holders of seventy five percent (75%) of
the capital stock of the Company entitled to vote on such a matter, the removal of a majority of
the individuals who are at that time members of the Board of Directors; or

(ii) the acquisition by any entity or individual of one hundred percent of the capital stock
of the Company.

Notwithstanding the foregoing, it is understood by the parties to this Agreement that a
“Change of Control” shall not include any transaction the purpose of which is to reorganize the
Company’s corporate structure, reincorporate the Company in another jurisdiction or undertake any
other action which does not materially affect the ownership and control of the Company at the time
of such transaction.

 

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(b) For purposes of this Section 6A, the following terms shall have the following meanings:

(i) Termination for Cause. Termination of Executive’s employment by the Company shall be
deemed to have been “for cause” if such termination shall be the result of the Executive’s:

a. willfully engaging in conduct which is materially injurious to the Company;

b. willful fraud or material dishonesty in connection with his performance hereunder;

c. deliberate or intentional failure to substantially perform his duties hereunder that
results in material harm to the Company;

d. the conviction for, or plea of nolo contendere to a charge of, commission of a felony; or

e. the continuous and habitual failure by the Executive to substantially perform his duties
under this Agreement.

(ii) Termination for Good Reason. Termination of his employment with the Company by the
Executive shall be deemed to have been for “good reason” if such termination is made in the
following cases:

a. a material diminution during the Employment Period in the Executive’s duties,
responsibilities or title as set forth in Section 1 hereof;

b. a breach by the Company of the compensation and benefits provisions set forth in Section 3
hereof;

c. a material breach by the Company of any of the terms of this Agreement, other than as
specifically provided herein; or

d. the relocation of Executive’s principal place of business at the request of the Company
beyond 50 miles from its current location

(c) Vesting of options upon a Change of Control. Notwithstanding anything to the contrary in
any stock option contract between the Company and the Executive or in any stock option plan or
similar plan of the Company, upon the occurrence of a Change of Control, all options held by the
Executive which shall not yet have vested will vest and become immediately exercisable. After such
a Change of Control, the Executive’s options shall remain exercisable for the period remaining
under the relevant stock option contract and shall not have a shortened period of exercisability as
a result of the Change of Control.

(d) Severance upon a Change of Control. If the Executive’s employment is terminated within
one year of a Change of Control for any reason other than by the Company for “cause” or by the
Executive’s resignation without “good reason”, the Executive shall be entitled to receive the Base
Salary for a period of six (6) months from the effective date of such termination and shall receive
all such benefits as the Executive was receiving immediately prior to the effective date of such
termination for the same six (6) month period.

 

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6. Miscellaneous.

(a) Entire Agreement. The Agreement and the Employment Agreement constitute the entire
agreement of the parties with respect to the subject matter hereof This Employment Agreement may
not be changed, modified or amended other than by a further written agreement signed by both
parties hereto. Except as expressly modified hereby, the Employment Agreement shall remain in full
force and effect in accordance with its terms.

(b) No Waiver. The failure or omission of either party to insist, in any instance,
upon strict performance by the other party of any term or provision of this Agreement or the
Employment Agreement or to exercise any of such party’s rights hereunder shall or thereunder shall
not be deemed to be a modification of any term hereof or a waiver or relinquishment of the future
performance of any such term or provision by such party, nor shall such failure or omission
constitute a waiver of the right of such party to insist upon future performance by the other party
of any such term or provision.

(c) Governing Law. This Agreement shall be governed by, and shall be construed and
interpreted in accordance with, the laws of the State of New York, without giving effect to any
choice of law doctrine.

(e) Assignment. This Agreement shall inure to the benefit of, and bind, the parties
hereto and their respective successors and assigns.

(f) Headings and Counterparts. Headings are inserted for reference purposes only and
shall not affect the interpretation or meaning of this Agreement. This Agreement may be executed in
several counterparts, each of which shall be deemed to be an original but all of which, together,
will constitute one and the same instrument.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement, the Company by its duly
authorized officer, as of the date set forth above.

	 	 	 	 	 
	 	VERAMARK TECHNOLOGIES, INC,

 	 
	 	By:  	/s/
Anthony C. Mazzullo 	 
	 	 	Name:  	Anthony C. Mazzullo 	 
	 	 	Title:  	President and Chief Executive Officer 	 
	 	  	
/s/ Thomas McAlees 	 
	 	 	Name:  	Thomas McAlees 	 

 

4Exhibit 10.14

Exhibit 10.14

ASENTINEL, LLC

NONEXCLUSIVE PATENT LICENSE AND SETTLEMENT AGREEMENT

THIS NONEXCLUSIVE PATENT LICENSE AND SETTLEMENT AGREEMENT (this “Agreement”), is made as of June
16, 2011 (“Effective Date”), between Asentinel LLC, a Tennessee limited liability company
(“Asentinel”), and Veramark Technologies, Inc. (“Licensee”) a New York Corporation. As used
herein, “Party” refers to either Licensee or Asentinel and “Parties” refers to Licensee and
Asentinel collectively.

PRELIMINARY STATEMENTS

	A.	 	Licensee desires to acquire a non-exclusive license under certain patents owned by Asentinel.
	 
	B.	 	Asentinel is the registered owner of “the Asentinel Patents.”
	 
	C.	 	The Parties are currently involved in a lawsuit pending in the United States District Court
for the Western District of Tennessee, styled Asentinel LLC, v. The Info Group, Inc., et al.
bearing Docket No. 2:10-cv-02706-BBD-tmp (the “Patent Litigation”).
	 
	D.	 	In the Patent Litigation, certain products of Licensee are accused of infringing the
Asentinel Patents and Licensee has asserted various counterclaims against Asentinel.
	 
	E.	 	The Parties now desire to enter into this Agreement to settle the Patent Litigation and to
provide for certain releases, licenses and covenants not to sue, all on the terms and
conditions set forth herein.
	 
	F.	 	Licensee understands and agrees that the payments conferred from Licensee to Asentinel under
this Agreement are not representative or indicative of a reasonable royalty with respect to
the Asentinel Patents.

NOW, THEREFORE, in consideration of the above promises and the mutual covenants contained
herein and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties, intending to be legally bound, agree as follows:

ARTICLE 1

License and Release

1.1. License. Subject to the terms and conditions set forth in this Agreement, upon payment of the
compensation and execution of the Promissory Note set forth in Section 2.1 below, Asentinel hereby
grants to Licensee a nonexclusive, perpetual, fully paid-up, worldwide license under the Asentinel
Patents to make, use, sell, and offer for sale, the Licensed Products, including, but not limited
to making, using, selling, and offering for sale the Licensed Products as software as a service,
without any right to sublicense. A Licensed Product shall remain licensed hereunder so long as a
Customer is making, using, selling, offering for sale, exporting or importing such Licensed
Product; provided that the foregoing shall not apply to other products or services incorporated
therewith by the Customer that would otherwise themselves infringe one or more Asentinel Patents.
Such license shall be irrevocable, except as specified in Sections 1.6, 2.1 and for other material
breaches hereunder. Other than as expressly stated herein, no licenses or other rights are granted
or may be implied to Licensee or any other entity under this Agreement, whether by implication,
inducement, estoppel or otherwise.

 

 

 

1.2. Release and Covenant. Asentinel, and its successors and assigns, hereby irrevocably covenant
not to sue or commence, prosecute, or participate in any action, claim or proceeding for
infringement of the Asentinel Patents against Licensee, Licensee’s Affiliates, predecessors,
successors, agents, attorneys, distributors, insurers, servants, licensees, service providers,
retailers, suppliers, employees, officers, directors, users and customers to the extent that
Licensee’s Affiliates, predecessors, successors, agents, attorneys, insurers, servants, licensees,
service providers, retailers, suppliers, employees, officers, directors, users and customers are
using the Licensed Products solely for their own benefit as related to the Asentinel Patents.
Parties, on behalf of themselves, their Affiliates, and their successors and assigns hereby
release, acquit and forever discharge one another (together with their Affiliates, agents,
distributors, service providers, retailers, suppliers, users and customers) from any and all
actions, causes of action, claims or demands, liabilities, losses, damages, attorney fees, court
costs, or any other form of claim or compensation, whether known or unknown as of the Effective
Date, arising out of the facts, events or occurrences underlying or giving rise to or otherwise
related to the Asentinel Patents and the Patent Litigation.

1.3. Past Damages. Asentinel waives all known claims against Licensee and its Affiliates,
predecessors, successors, agents, attorneys, distributors, insurers, servants, licensees, service
providers, retailers, suppliers, employees, officers, directors, users and customers for past
damages relating to infringement of the Asentinel Patents.

1.4. Assignment. Licensee is strictly prohibited from assigning, transferring or sublicensing this
Agreement or any rights granted hereunder, in whole or in part, and any such attempted assignment,
transfer or sublicense shall be void and of no effect, except as provided in Sections 1.1, 1.7 and
1.8.  

1.5. Technical Assistance. Asentinel shall have no obligation to provide Licensee with know how or
materials or to provide technical assistance in the exercise of the License. In the event Licensee
requires technical assistance with respect to the activities conducted by Licensee pursuant to this
Agreement, obtaining such technical assistance shall be Licensee’s responsibility and at Licensee’s
expense.

1.6. No Attempt to Invalidate. Licensee agrees that, in the absence of a subpoena, agency order,
or court order requiring its participation or support, or in response to a law suit or other
proceeding filed by Asentinel or its successors or assigns against the Licensee or its Affiliates,
the Licensee shall not participate in or support any suit, claim, action, litigation, patent
reexamination, administrative proceeding, or proceeding of any nature brought against Asentinel
that challenges the validity or enforceability of the Asentinel Patents.

1.6.1. Reexamination Request. Except for a draft reexamination request prepared by
the law firm of BOYLAN BROWN CODE VIGDOR & WILSON, LLP, Licensee represents that Licensee
has not provided a patent reexamination request relating to any of the Asentinel patents to
any other party, including, but not limited to any of the defendants in the Patent
Litigation. After the Effective Date of this Agreement, Licensee shall not assist any other
party in the development or filing with the United States Patent and Trademark Office of any
reexamination request against any of the Asentinel Patents. Licensee or its Counsel shall
not make available to a third party any attorney-client work product developed in support of
the Pending Litigation. In the event of breach of this Section 1.6 or 1.6.1 by Licensee or
any other party acting on behalf of the Licensee, subject to the dispute provisions of
Article 8 below, Asentinel may revoke the License to the Asentinel Patents.

1.7. *

	 	 	 
	1
*	 	denotes redacted information

 

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1.8. Acquisition of Licensee. In the event an Entity acquires the Licensee (referred to as the
“Acquiring Entity”) after the Effective Date (referred to as the “Acquisition Date”), then this
agreement may be assigned by the Licensee to the Acquiring Entity upon written notification to
Asentinel. Upon assignment, the license of Section 1.1 shall cover the TEM Services of the
Acquiring Entity attributable to the acquired TEM Services of Licensee, and shall exclude (i)
revenue attributable to any TEM Services of the Acquiring Entity before the Acquisition Date, and
(ii) revenue attributable to any TEM Services from an entity acquired by the Acquiring Entity after
the Acquisition Date.

1.9. Lawsuit Dismissal The parties will jointly execute a Stipulation of Dismissal, a copy of
which is attached hereto as Exhibit A in the Patent Litigation within five (5) days of the
Effective Date of this Agreement.

ARTICLE 2

Consideration

2.1. Compensation. Upon the Effective Date of this Agreement, Licensee will pay to Asentinel the
sum of two hundred and fifty thousand United States dollars (US $250,000). Licensee shall also
execute the Promissory Note attached hereto as Exhibit B, such that the Promissory Note obligates
the Licensee to pay to Asentinel within twelve (12) months of the Effective Date of this Agreement
an additional amount of two hundred and fifty thousand dollars (US $250,000). In the event that
Licensee is acquired, Licensee shall satisfy the Promissory Note through full payment within ten
(10) days of the acquisition date of the Licensee. In the event that the Promissory Note is not
paid in full within twelve months of the Effective Date of this Agreement or within ten (10) days
of an acquisition date of the Licensee, in addition to seeking a court judgment against Licensee
for satisfaction of the Promissory Note, the dispute resolution provisions of Article 8 will not
apply, and upon ten (10) days written notice to Licensee, Asentinel may revoke this License to the
Asentinel Patents.

2.2. Banking Information. Payment shall be made by electronic transfer of funds to Asentinel’s
bank account as follows:

Bank Name: Triumph Bank

Bank Address: 2171 Judicial Drive, Germantown TN 38138

ABA No.: XXXXXXXXX

Account No.: XXXXXXXXX

Account Name: Asentinel LLC

ARTICLE 3

License Term

3.1. This Agreement shall not be binding on the Parties until it has been signed below by both
Parties, at which time it shall be deemed effective as of its Effective Date. The Agreement shall
remain in full force and effect until the expiration of the last to expire of the Asentinel Patents
at which time, the licenses, covenants, and releases of Article 1 shall remain in effect in
perpetuity with respect to rights granted prior to the expiration, subject to the provisions of
Section 2.1.

3.2. Other than as set forth in Section 3.1, this Agreement may only be terminated by mutual
written agreement of the Parties.

 

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ARTICLE 4

Registration of Agreement

4.1. Registration of Agreement. Licensee shall be responsible for the registration or approval of
this Agreement by the relevant local authorities as required by local law and regulations in
respect of the rights granted pursuant to this Agreement and bear the relevant fees in respect
thereof.

ARTICLE 5

Representations and Warranties

5.1. Asentinel’s Representations and Warranties. Asentinel represents and warrants that: (i) it
has full corporate power and authority to enter into this Agreement, to carry out the provisions of
this Agreement and to grant the rights granted to Licensee herein; and (ii) it is the owner of the
entire right, title and interest in and to the Asentinel Patents (iii) this Agreement has been duly
authorized by all proper corporate action of Asentinel, (iv) the person executing this Agreement on
behalf of Asentinel is duly authorized to do so; (v) no consent, approval or authorization of any
third party is required in order for Asentinel to enter into, execute or perform this Agreement and
to grant the rights granted to Licensee herein; and (vi) this Agreement is binding upon Asentinel
and enforceable against it in accordance with its terms.

5.2. Licensee’s Representations and Warranties. Licensee represents and warrants that: (i) it has
full corporate power and authority to enter into this Agreement and carry out all the provisions of
this Agreement; (ii) this Agreement has been duly authorized by all proper corporate action of
Licensee, (iii) the person executing this Agreement on behalf of Licensee is duly authorized to do
so; (iv) no consent, approval or authorization of any third party is required in order for Licensee
to enter into, execute or perform this Agreement and to grant the rights granted to Licensee
herein; and (v) this Agreement is binding upon Licensee and enforceable against it in accordance
with its terms.

Licensee further represents and warrants that, except as otherwise provided hereunder, it
shall not deny, contest (through declaratory judgment action or otherwise), or take any action
inconsistent with Asentinel’s ownership in or the validity or enforceability of any of the
Asentinel Patents.

5.3. Limitations on Representations and Warranties. Nothing contained in this Agreement shall be
construed as: (a) a warranty or representation by either party that any manufacture, sale, use, or
other disposition of products or services by the other party has been or will be free from
Infringement of any patents other than the Asentinel Patents; (b) an agreement by either Party to
bring or prosecute actions or suits against any Entity for Infringement; (c) conferring any right
to either Party to use in advertising, publicity, or otherwise, any trademark, service mark, or
trade dress of the other Party, or any simulation thereof, without the prior written consent of the
other Party; (d) conferring any right to either Party, except as otherwise provided in Section 9
(Confidentiality), to use any names or trade names of the other Party, or any simulation thereof,
without the prior written consent of the other Party; (e) an obligation to furnish any technical
information or know-how; or (f) conferring by implication, estoppel or otherwise, upon either
party, any right (including a license) under patents other than the Asentinel Patents except for
the rights expressly granted hereunder.

5.4 DISCLAIMER OF WARRANTIES. EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH IN THIS AGREEMENT, THE
PARTIES MAKE NO EXPRESS REPRESENTATIONS AND GRANT NO WARRANTIES, EXPRESS OR IMPLIED, EITHER IN FACT
OR BY OPERATION OF LAW, BY STATUE OR OTHERWISE.

 

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ARTICLE 6

Indemnification/Liability

6.1. Licensee Indemnity. Licensee shall indemnify and hold Asentinel harmless against any claim,
including costs and reasonable attorney’s fees, resulting from the gross negligence or willful acts
or failure to act by the Licensee, its employees or agents, while performing its obligations
pursuant to this Agreement, including but not limited to any claims arising from Licensee’s
utilization of the Asentinel Patents or breach of any obligations of Licensee hereunder.

6.2. No Liability. In no event shall Asentinel or its respective directors, officers, employees
or affiliates be liable for incidental or consequential damages of any kind, including, without
limitation, economic damage, injury to property or lost profits, regardless of whether Asentinel
shall be advised, shall have other reason to know, or in fact shall know of the possibility of any
of the foregoing. Nothing in this Agreement shall be construed as: (i) a representation made or
warranty given by Asentinel that the practice by Licensee of any license granted hereunder shall
not infringe the patents of any third party; (ii) a requirement that Asentinel shall be responsible
for the additional expenses from the Effective Date of this Agreement for filing or prosecuting any
patent application or maintaining any licensed patents in force; (iii) an obligation on the part of
Asentinel to bring or prosecute actions or suits against third parties for infringement of the
Asentinel Patents or for unauthorized use of the Asentinel Patents;(iv) an obligation on the part
of Asentinel to defend any action or suit brought by any third party; or (v) a representation made
or warranty given by Asentinel as to the safety, reliability or efficacy of the Asentinel Patents
claimed subject matter.

ARTICLE 7

Confidentiality & Press Release

7.1. The terms of this Agreement and all correspondence relating to this Agreement are
confidential, expect as authorized in Section 7.2 or under one of the exceptions in this Section
7.1. The Parties shall keep terms and particulars of this Agreement strictly confidential and no
Party shall now or hereafter disclose such terms and particulars to any third party except: (i)
with the prior written consent of the other Party, (ii) as may be required by applicable law,
regulation or order of a governmental authority of competent jurisdiction; provided that, to the
extent permitted by law or regulation, the Party required to make such a disclosure gives as much
notice as is reasonably possible to the other Party to contest such order or requirement and takes
all reasonable actions in an effort to minimize the nature and extent of such disclosure, (iii)
during the course of litigation so long as the disclosure of such terms and conditions is subject
to the same restrictions as is the confidential information of the other litigating parties, such
restrictions are embodied in a court-entered protective order limiting disclosure to outside
counsel and such disclosing Party provides the other Party written notice at least ten (10)
business days prior to such disclosure, (iv) in confidence to the professional legal and financial
counsel representing such Party, (v) in confidence to any party covered by the releases, licenses
or covenants granted herein, (vi) to third parties under non-disclosure agreements in the course of
additional licensing activities of Asentinel or in merger, acquisition or investment discussions by
either Party or (vii) by Licensee to the extent necessary to fulfill its disclosure obligations
under the Securities Exchange Act of 1934, as amended, and other applicable securities laws and
regulations.

7.2. Asentinel shall be permitted to issue the press release attached hereto as Exhibit C.

7.3. The confidentiality provisions of this Agreement are material terms of this Agreement, and any
breach of these provisions will constitute a material breach of this Agreement. The failure of any
Party to enforce at any time any of the provisions governing the confidentiality of the terms of
this Agreement or to require at any time performance by any of the Parties of any such provisions
shall in no way be
construed as a waiver of such provision or relinquishment of the right thereafter to enforce such
provision.

 

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ARTICLE 8

Resolution of Disputes

8.1. Dispute Resolution Procedure. The Parties will cooperate in good faith and use reasonable
efforts to informally resolve any disputes, controversy or claim (“Dispute”) arising out of or
relating to this Agreement, or the interpretation, breach, termination or validity hereof. Except
as otherwise provided in Section 8.2.4, if the Parties are not able to informally resolve a dispute
under this Agreement within thirty (30) days after a dispute arises, the following procedure will
be used:

8.1.1. one Party will serve upon the other Party a “Notice of Dispute” that summarizes the
nature of the dispute and the efforts taken to resolve that Dispute to date;

8.1.2. within fifteen (15) business days of receipt of the Notice of Dispute, the Parties will
conduct one or more meetings (which may take place by teleconference) of management
level-representatives of each Party with knowledge of the subject matter of the dispute, which
representatives will use commercially reasonable efforts to resolve the Dispute;

8.1.3. if the Dispute is not resolved at the meeting or meetings described in Section 8.1.2,
then within fifteen (15) business days from the date of the last meeting, the Parties will schedule
one or more meetings (which may take place by teleconference) of executive-level representatives of
each Party, which representatives will use commercially reasonable efforts to resolve the dispute;
and

8.1.4. if, following the last executive-level meeting, the dispute remains unresolved, then
the dispute will be finally settled by binding arbitration conducted in accordance with Section 8.2
below.

8.2. Arbitration. Except as otherwise provided in Section 8.2.4 below, if the Parties are unable to
resolve a Dispute in accordance with Section 8.1, then the Party that served the Notice of Dispute
on the other Party must submit the Dispute to arbitration by the American Arbitration Association
(the “AAA”) in accordance with its Commercial Arbitration Rules (the “Rules”) as are in force at
the date of the notice of arbitration commencing any arbitration, but subject to the amendments
made to the Rules by the rest of this Section 8.2. For the purpose of arbitration, there shall be a
board of arbitration (the “Board of Arbitration”) consisting of three arbitrators, each of
Asentinel and Licensee shall select one (1) member and the third member shall be selected by mutual
agreement of the other members, or if the other members fail to reach agreement on a third member
within twenty (20) days after their selection, the third member shall thereafter be selected by the
AAA upon application made to it for that purpose. The place of arbitration shall be in Memphis,
Tennessee. The arbitrators shall decide any Dispute or claim strictly in accordance with the
governing law specified in Section 9.17 of this Agreement. Judgment upon any arbitral award
rendered hereunder may be entered in any court, and/or application may be made to any court for a
judicial acceptance of the award and/or an order of enforcement, as the case may be.

8.2.1 Each Party shall cooperate in good faith to expedite (to the maximum extent practicable)
the conduct of any arbitral proceedings commenced under this Agreement.

8.2.2 The costs and expenses of the arbitration, including the fees of the arbitration, shall
be borne equally by each Party to the Dispute or claim, and each Party shall pay its own fees,
disbursements and other charges of its counsel.

8.2.3 Any award made by the Board of Arbitration tribunal shall be final and binding on each
of the Parties that were Parties to the Dispute and their respective successors and assigns. The
Parties
expressly agree to waive the applicability of any laws and regulations that would otherwise
give the right to appeal the decisions of the Board of Arbitration so that there shall be no appeal
to any court of law from the award of the Board of Arbitration, and a Party shall not challenge or
resist the enforcement action taken by any other Party in whose favor an award of the arbitration
tribunal was given.

 

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8.2.4 Notwithstanding this Section 8.2 or any other provision to the contrary in this
Agreement, no Party shall be obligated to follow the foregoing arbitration procedures where that
Party intends to apply to any court of competent jurisdiction for an interim injunction or similar
equitable relief against the other, provided there is no unreasonable delay in the
prosecution of that application.

8.2.5 This Agreement and the rights and obligations of the Parties shall remain in full force
and effect pending the award in any arbitration proceeding hereunder.

ARTICLE 9

Miscellaneous

9.1. Asentinel has no obligation hereunder to institute any action or suit against any third party
for infringement of any of the Asentinel Patents, or to defend against any action challenging the
validity of the Asentinel Patents. Licensee has no right to institute any action against any third
party for infringement of any Asentinel Patent.

9.2. Nothing in this Agreement is intended or shall be deemed to constitute a partnership, agency,
employer-employee, or joint venture relationship between the Parties. Neither Party shall incur any
debts or make any commitments for the other. There is no fiduciary duty or special relationship of
any kind between the Parties to this Agreement. Each Party expressly disclaims any reliance on any
act, word, or deed of the other Party in entering into this Agreement.

9.3. Nothing contained in this Agreement shall be construed as conferring any right to a license or
to otherwise use any patent, patent application, trademark, service name, service mark, trade
dress, trade secret or other intellectual property belonging to Licensee.

9.4. This Agreement constitutes the entire agreement between the Parties and supersedes all prior
agreements and understandings, oral and written, between the Parties with respect to the subject
matter hereof and thereof. If there is conflict or contradiction between this Agreement and any
other agreements, this Agreement shall prevail in relation to any issues arising out of or in
connection with the Intellectual Property.

9.5. The terms and conditions of this Agreement will inure to the benefit of, and be binding upon,
the respective successors and assigns of the Parties hereto. Nothing in this Agreement is intended
to confer by implication any rights or remedies hereunder on any person other than Licensee or
Asentinel or any of their respective successors and permitted assigns.

9.6. No amendment, modification or alteration of the terms or provisions of this Agreement will be
binding unless the same is in writing and duly executed by each of the Parties hereto, except that
any of the terms or provisions of this Agreement may be waived in writing at any time by the Party
which is entitled to the benefits of the waived terms or provisions. No waiver of any of the
provisions of this Agreement will be deemed to, or will, constitute a waiver of any other provision
hereof (whether or not similar). No delay on the part of any Party to this Agreement in exercising
any right, power or privilege hereunder will operate as a waiver thereof.

 

7

 

9.7. All notices required or permitted to be given hereunder shall be in writing and shall be
deemed delivered (i) upon receipt if delivered by hand, (ii) the next business day after being sent
by prepaid,
nationally-recognized, overnight air courier, (iii) five (5) business days after being sent by
registered or certified airmail, return receipt required, postage prepaid, or (iv) upon transmittal
when transmitted by confirmed telecopy (provided that such notice is followed notice pursuant to
any of (i) — (iii) above). All notices shall be addressed as follows:

	 	 	 
	Asentinel:

	 	Asentinel, LLC
	 

	 	International Place Tower 2
	 

	 	6410 Poplar, Suite 200
	 

	 	Memphis, Tennessee 38119
	 
	 	 
	Licensee:

	 	Veramark Technologies, Inc.
	 

	 	1565 Jefferson Road, Suite 120
	 

	 	Rochester, NY 14623
	 

	 	Attn: President and CEO, Anthony Mazzullo

9.8. If any provision of this Agreement or the application of any provision to any person, party or
circumstance will be held invalid, illegal or unenforceable in any respect by a court of competent
jurisdiction, the invalidity, illegality or unenforceability will not affect any other provision of
this Agreement and this Agreement will remain in full force and effect and will be effectuated as
if the illegal, invalid or unenforceable provision is not part thereof.

9.9. The Preliminary Statements and the headings of the articles and sections contained in this
Agreement are inserted for convenience only and will not be deemed to constitute part of this
Agreement or to affect the construction thereof.

9.10. This Agreement may be executed in two or more counterparts or duplicate originals, each of
which shall be considered one and the same instrument, and which shall be the official and
governing version in interpretation of this Agreement. This Agreement may be executed by facsimile
or Portable Document Format (PDF) signatures and such signatures shall be deemed to bind each Party
as if they were original signatures.

9.11. The Parties have participated jointly in the negotiation and drafting of this Agreement. In
the event an ambiguity or question of intent or interpretation arises, this Agreement shall be
construed as if jointly drafted by the Parties and no presumption or burden of proof shall arise
favoring or disfavoring either Party by virtue of the authorship of any provision of this
Agreement. This Agreement is in the English language only, which language shall be controlling in
all respects, and all notices under this Agreement shall be in the English language. For purposes
of construction, the singular includes the plural and vice versa.

9.12. The Parties each acknowledge, accept, warrant, and represent that: (i) they are sophisticated
Entities represented at all relevant times during the negotiation and execution of this Agreement
by counsel of their choice, and that they have executed this Agreement with the consent and on the
advice of such independent legal counsel; and (ii) they and their counsel have determined through
independent investigation and arm’s-length negotiation that the terms of this Agreement shall
exclusively embody and govern the subject matter of this Agreement.

9.13. Each Party shall do and execute, or arrange for the doing and executing of, each necessary
act, document and thing to implement this Agreement, including without limitation executing and
delivering and recording any license required by local law, with terms consistent with this
Agreement to the extent permitted by local law, in the relevant country or jurisdictions.

9.14. Except as otherwise specifically provided in this Agreement, the Parties agree that they
shall bear their own costs and attorneys’ fees incurred in connection with the negotiation and
drafting of this Agreement and the transactions contemplated herein

 

8

 

9.15. Except as specified in Sections 1.6 and 2.1, the remedy for breach of this Agreement shall be
limited to damages and/or injunctive relief, as appropriate, for breach of contract and shall not
include remedies for patent infringement. In the event that the License hereunder is revoked
pursuant to Section 1.6 or 2.1, Asentinel reserves the right to bring an action for breach of this
Agreement and to pursue a cause of action for patent infringement in United States District Court
for the Western District of Tennessee and pursue all available remedies.

9.16. EXCEPT AS PROVIDED EXPLICITLY HEREIN, IN NO EVENT SHALL ANY PARTY BE LIABLE TO ANY OTHER
PARTY OR ANY OTHER PERSON OR ENTITY (UNDER CONTRACT, STRICT LIABILITY, NEGLIGENCE, OR OTHER THEORY)
FOR SPECIAL, INDIRECT, EXEMPLARY, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, INCLUDING LOST PROFITS,
OPPORTUNITIES OR SAVINGS, ARISING OUT OF OR RELATED TO THE SUBJECT MATTER OF THIS AGREEMENT.

9.17. The laws of the State of Tennessee will govern the interpretation, construction, validity,
performance and enforcement of this Agreement, notwithstanding any choice-of-law principle that
might dictate a different governing law.

ARTICLE 10

Definitions

	 
	“Acquires” means to obtain an interest in an entity either by acquisition,
purchase, or merger or all or substantially all of the assets of an entity.

“Asentinel Patents” means (i) United States Patent No. 7,340,422 (“the ‘422 Patent”), United States
Patent No. 7,805,342 (“the ‘342 Patent”), and United States Patent Application Publication No.
2008/0285733 (ii) any divisionals, continuations, continuations-in-part, reissues, reexaminations,
utility models, foreign or international counterpart, parent or extension of any patent or patent
application included in (i), and (iii) any patents based upon Asentinel patent applications that
have a filing date prior to the Effective Date of this Agreement that issue after the date hereof
that cover TEM Services.

“Affiliate” means, with respect to a person, corporation or other entity, any other person,
corporation or entity that directly or indirectly owns, is owned by, or is under common ownership
with such corporation or entity.

“Customer” means Licensee’s Affiliates, predecessors, successors, agents, attorneys, distributors,
insurers, servants, licensees, service providers, retailers, suppliers, employees, officers,
directors, users and direct and indirect customers, including providers that host on behalf of
others.

“Entity” means any individual, trust, corporation, person or company, partnership, joint venture,
limited liability company, association, firm, unincorporated organization or other legal or
governmental entity.

“Exploit” means to own, design, develop, acquire, make, have made, use, sell, offer to sell,
perform, provide, import, export, and/or the exercise of all other activities specified under 35
U.S.C. § 271 and foreign counterparts thereto (as the foregoing 35 U.S.C. § 271 and foreign
counterparts thereof may be amended or superseded from time to time). “Exploited,” “Exploitation,”
and other variations of the word “Exploit” shall have correlative meanings.

“Infringement” or “Infringes” means direct infringement, indirect infringement, infringement under
the doctrine of equivalents, or any other theory of infringement in any jurisdiction worldwide.

 

9

 

“Infringing Products And/Or Services” means any and all products and services the Exploitation of
which, but for the license granted in this Agreement, would Infringe any claim of any Asentinel
Patent.

“Licensed Product” means any product, product line, service, device, system, component, hardware,
software, any combination of the foregoing, or other offering that is designed, branded, made,
used, sold, offered for sale, leased, purchased, licensed, imported, exported, supplied or
otherwise provided by Licensee or a Licensee Affiliate or that would infringe any claim of the
Asentinel Patents, but for this License Agreement.

“TEM Services” means telecommunications expense management (TEM) services, TEM products and other
TEM-related offerings provided by software that aggregates invoice data from telecommunications
providers, and excludes historical audits performed by third party vendors not using the Licensee’s
software but resold by the Licensee, and call accounting.

 

10

 

IN WITNESS WHEREOF, each of the Parties has caused this Non-Exclusive Patent License And Settlement
Agreement to be duly executed in duplicate originals by their duly authorized representatives to be
effective as of the Effective Date.

ASENTINEL, LLC

	 	 	 	 	 
	By:

	 	/s/ David C. Perdue
 

David C. Perdue, CEO
	 	 
	 
	 	 	 	 
	Veramark Technologies, Inc.	 	 
	 
	 	 	 	 
	By:

	 	/s/ Anthony Mazzullo
 

Anthony Mazzullo, CEO
	 	 

 

11

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