Document:

Ex10.2

SOFTWARE LICENSE AGREEMENT

The following document constitutes a Software License Agreement (together with its appendices, the “Agreement”), which is entered into as of September 28, 2012 (“Effective Date”) by and between:

JIA, Inc., a corporation organized and existing under the laws of the State of Washington, United States of America, located at 203 SE Park Plaza Drive, Suite 250, Vancouver, Washington, 98684, hereinafter referred to as “JIA”, and 

LifeVantage Corporation, a corporation organized and existing under the laws of the State of Utah , located at 9815 S. Monroe Street, Suite 100, Sandy, UT 84070 , hereinafter referred to as “Licensee”.

		
	1.
	DEFINITIONS

"Affiliate" means, with respect to either Party, any other person directly or indirectly controlling, controlled by or under common control with that Party.  The term "control" means the beneficial ownership of 51% or more of the voting equity securities or other equivalent voting interests of the relevant person together with the power to direct or cause the direction of the management, policies and/or affairs of that person.

"Confidential Information" shall have the meaning as specified in the Confidentiality Agreement attached hereto as Appendix B. 

"Licensed Software” means particular program(s) selected by the Licensee as described in the Software section of the Order Form, represented in Appendix A.

“Operational Entity” LifeVantage Corporation is the business unit that will be utilizing the Licensed Software.

"User" means Licensee’s employees and independent sales representatives using the Licensed Software.

		
	2.
	GRANT OF LICENSE

JIA hereby grants and Licensee hereby accepts a nonexclusive, nontransferable license to use the Licensed Software, for use by Licensee, as described on the Order Form as defined in Appendix A in accordance with the terms set forth in this Agreement.  JIA reserves all rights not expressly granted to Licensee.

		
	3.
	LICENSE FEES

Licensee shall pay the fees for the Licensed Software as described on the Order Form.  Any late payment according to the terms set forth in the Order Form shall be subject to a late payment charge of one and one half percent (1 1/2%) per month, or the maximum allowed by law, whichever is less, on the past due balance, commencing with the payment's due date.  The license fees stated herein are for the Licensed Software only and are exclusive of all taxes, duties, and other governmental charges.  The Licensee agrees to pay any and all taxes, duties, and other governmental charges on the Licensed Software however designated or levied.

		
	4.
	USE RESTRICTIONS

 
Licensee's right to use the Licensed Software is limited to use by Licensee's employees for Licensee's own internal business 

[***] -- Confidential portions of this document denoted by [***] have been redacted and filed separately with the Securities and Exchange Commission

purposes, which shall not compete or conflict with the interest of JIA.  This License allows use of the Licensed Software for a single Operational Entity as defined in Section 1.  Licensee shall not have the right to sublicense the Licensed Software or to otherwise allow the use of the Software by any other person, including it’s affiliates, or third party entity without JIA's prior written consent.  

Upon JIA’s request, Licensee will immediately provide written disclosure of all users, Affiliates, businesses or other entities accessing the Licensed Software.  Licensee agrees to not attempt to exceed in any manner the type or quantity of users allowed to access the Licensed Software defined in the Order Form.  Should Licensee require additional users or Affiliates to have access to the Licensed Software, Licensee agrees to contact JIA and satisfy any applicable commercial conditions prior to additional usage.

		
	5.
	COPY RESTRICTIONS

Licensee shall not:  (a) copy the Licensed Software except as required for use as provided in this Agreement and for archival storage to assure against loss, and then only if Licensee reproduces and includes JIA’s copyright notice and other proprietary notices on each copy; (b) alter, remove, distort or otherwise disturb any copyright, patent, trademark or other proprietary rights notices on the Licensed Software or any other materials that JIA provides under this Agreement; (c) modify the Licensed Software (notwithstanding Section 6) or any Confidential Information without JIA’s prior written consent; or (d) reverse engineer, decompile or disassemble the Licensed Software or any Confidential Information except to the extent applicable law allows Licensee to do so to create interfaces or any other purpose required by law, and then only if Licensee gives JIA prior written notice and the opportunity to submit a proposal to Licensee for any interfaces or other purposes required by law.  

		
	6.
	OWNERSHIP 

JIA shall own all changes and/or modifications made by JIA (JIA owned modifications) or Licensee to the Licensed Software.  Without limiting the preceding, Licensee, on its own behalf, (a) acknowledges and agrees that JIA shall be considered the author for copyright purposes of all copyrightable material contained in JIA owned modifications and JIA owned materials, and (b) acknowledges JIA’s authorship and/or ownership of all intellectual property and proprietary rights with respect to the Licensed Software, including without limitation, all copyright, trademark, patent, service mark, logo, Confidential Information of JIA or trade secret rights, and (c) disclaims any and all such interests.  For good and valuable consideration, including the license rights granted to Licensee under this Agreement, Licensee irrevocably assigns to JIA all right, title and interest in and to all changes, modifications and/or enhancements made by or on behalf of Licensee before or after the date of this Agreement, as and when created, including without limitation, all copyrights, patent rights, trademark rights, and trade secret rights therein.  Upon Licensee’s request, Licensee will execute and deliver to JIA any documentation reasonably requested by JIA to reflect that assignment.  Rights granted by JIA to Licensee under this Agreement shall in no manner affect exclusive ownership by JIA of the Licensed Software. JIA shall have the right to retain, obtain, and hold in its own name all copyrights, registrations, and similar protection which may be available with respect to the Licensed Software.  Licensee will assist JIA, at JIA’s expense, to perfect the ownership of such rights in JIA, and to that end Licensee shall require all employees, independent contractors and consultants to disclose all such JIA owned modifications and JIA owned materials to Licensee and JIA.  Licensee shall require those employees and independent contractors either to assign any and all rights therein to JIA, as and when created.  Licensee warrants to have executed a written assignment of those rights to JIA and that Licensee will not in any way contest JIA’s ownership of those rights.  No right, license or other right is granted to Licensee, expressly or by implication, estoppel or otherwise, with respect to any proprietary information or patent, copyright, trade secret or other intellectual property right owned or controlled by JIA except as expressly provided in this Agreement. JIA does not own Licensee’s Confidential Information and will either return or destroy it upon termination of this Agreement, upon request. Reverse engineering, decompilation or any other source code derivations of any object code and Confidential Information by Licensee are expressly prohibited

		
	7.
	TERM AND TERMINATION

The term of Licensee's license under this Agreement shall commence upon the Effective Date and shall remain in force so long as Licensee is not in default under this Agreement.  In the event of a breach of Sections 4, 5 or 6 above, or Sections 9, 10, 14, or Confidentiality Agreement below, this Agreement will terminate immediately without notice or an opportunity to cure.  In the event that Licensee defaults under any other section of this Agreement and that default is not cured within thirty (30) days following written notice from JIA, Licensee's rights hereunder shall terminate.  Upon termination of this Agreement for any 

[***] -- Confidential portions of this document denoted by [***] have been redacted and filed separately with the Securities and Exchange Commission

reason, Licensee will (a) delete and destroy or return to JIA the original and all copies of the Licensed Software and not to retain any copies of the Licensed Software; and (b) within 30 days of termination, will certify in writing that Licensee has complied with the terms of this paragraph.

		
	8.
	WARRANTY DISCLAIMER

Licensee acknowledges and agrees that it has been provided with ample opportunity to evaluate the suitability of the Licensed Software for Licensee's needs.  Licensee shall look to the services offered by JIA pursuant to its maintenance program under a separate agreement as the exclusive remedy with respect to any errors in or problems with the Licensed Software.  JIA DISCLAIMS ALL EXPRESS OR IMPLIED WARRANTIES WITH RESPECT TO THE LICENSED SOFTWARE, INCLUDING WITHOUT LIMITATION THE WARRANTIES OF MERCHANTABILITY AND OF FITNESS FOR A PARTICULAR PURPOSE.  IN NO EVENT SHALL JIA BE LIABLE FOR INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES OF ANY NATURE WHATSOEVER OR FOR ANY LOST PROFITS, LOST OF USE OR COST OF CURE.  JIA'S LIABILITY SHALL IN NO EVENT EXCEED THE LIMITATION OF LIABILITY IDENTIFIED IN THE SOFTWARE SERVICES AGREEMENT EXECUTED BETWEEN THE LICENSEE AND JIA .  

		
	9.
	TRADE SECRETS & CONFIDENTIALITY

Without limiting JIA’s intellectual property rights, Licensee acknowledges and agrees, on its own behalf: (a) that the Licensed Software and the source code for the Licensed Software (the “Source Code”) are JIA’s valuable trade secret; (b) that the Licensed Software is the fundamental product offered by JIA and any unapproved release of the Licensed Software, the Source Code or any of JIA’s other Confidential Information will be materially damaging to JIA; (c) that Licensee and the Users will exercise great care to protect the Licensed Software and the Source Code and JIA’s other Confidential Information from being viewed or accessed by an unauthorized individual or entity; (d) that Licensee shall keep the Source Code and JIA’s other Confidential Information  at a location designated that will support Licensee’s obligations of Confidentiality; and (e) not to allow anyone but the Users to access or use the Licensed Software, the Source Code or any of JIA’s other Confidential Information.  Without limiting the preceding, Licensee will ensure that except for Licensee and the Users, none of Licensee’s other Affiliates, access or use the Licensed Software, the Source Code or any of JIA’s other Confidential Information.

Each Party will promptly inform the other Party of any improper access or breach of its confidentiality obligations, and cooperate in all respects in protecting the disclosing Party’s interests in and to Confidential Information. Nothing in this Agreement may be construed to affect the intellectual and proprietary rights of either Party or Licensee in and to its Confidential Information, including as modified by JIA or Licensee with or without permission.
    
This section, and the Confidentiality Agreement in Appendix B,shall survive the termination of this Agreement for any and all reasons.  Upon termination of this Agreement, both Parties agree to return to the other Party all written materials, software, hardware, lists, and other information that contains Confidential Information of the disclosing Party upon request.   

		
	10.
	MODIFICATIONS; SOURCE CODE

Licensee is not authorized to access or alter Source Code of the Licensed Software in any manner unless a source code license to the Licensed Software has been purchased from JIA. If Licensee obtains access to any Source Code, whether from JIA or otherwise, Licensee shall treat that Source Code as Confidential Information constituting a trade secret of JIA, subject to the restrictions set forth in Sections 4, 5, 6,  9 and the Confidentiality Agreement of this Software License Agreement.

If Licensee purchases a Source Code license from JIA, Licensee is not authorized to grant access to the Source Code of the Licensed Software to any consultant, contractor, agent or third-party of any kind unless such access has been authorized by JIA in writing.  JIA may, among other factors, condition the grant of access to the Source Code to the proposed recipient’s execution and delivery to JIA of a non-disclosure and confidentiality agreement in form and content satisfactory to JIA in its sole discretion. Any breach of these terms will be considered a violation by Customer and Licensee of the conditions set forth in Sections 4, 5, 6 and 9 of this Agreement and the Confidentiality Agreement set forth in Appendix B of this Agreement.

Any modifications made to the Source Code and Licensed Software at the request of Licensee, whether made by JIA, Licensee or an employee, agent or representative of Licensee under the Source Code license, shall be for Licensee's own internal use only, shall be considered part of the Licensed Software, shall be owned by JIA, and shall be subject to the restrictions on the 

[***] -- Confidential portions of this document denoted by [***] have been redacted and filed separately with the Securities and Exchange Commission

Source Code and Licensed Software, as applicable, provided for in this Agreement.

		
	11.
	ACCEPTANCE 

JIA shall install the current general release version of Licensed Software on servers accessible to the Licensee.  The Licensed Software shall be considered to have been successfully installed and accepted by the Licensee when the Licensee is able to successfully login to the Licensed Software located upon the servers designated by the Licensee.  All payments made by Licensee for the Licensed Software under this Agreement are fully earned and non-refundable.  

		
	12.
	INDEMNITY BY JIA 

JIA agrees to indemnify Licensee, as limited by this paragraph and paragraph 8 of the Agreement, with respect to any suit, claim or proceeding brought by a third party against Licensee alleging that Licensee's use of the Licensed Software constitutes an infringement of any valid United States patent or copyright.  JIA agrees to defend Licensee against any such claims and to pay litigation costs, reasonable attorney's fees, and damages awarded by a court of competent jurisdiction to that third party if, and only if, Licensee promptly gives notice to JIA of any such suit, claim or proceeding, tenders sole control of such suit, claim or proceeding to JIA, and cooperates with JIA in the defense or settlement of such suit, claim or proceeding.

If a claim or allegation is made, or in either Party's judgment is likely to arise, JIA may, at JIA's option:

		
	(i) 
	procure for Licensee the right to continue using the Licensed Software;

		
	(ii)
	replace or modify the Licensed Software so that Licensee's use is not subject to any such claim or allegation; or

		
	(iii)
	accept return of the Licensed Software to JIA, and in the event of such return, refund the license fee paid for the Licensed Software, less a discount for Licensee’s past beneficial use.

Upon JIA’s satisfaction of any of the preceding options, JIA shall have no further liability or obligations arising from any claim of patent or copyright infringement under this Agreement or otherwise.

JIA's indemnity obligations shall not apply to claims to the extent that they arise from any modification or alteration of Licensed Software by anyone other than JIA.  

		
	13.
	KEY FILES

Licensee acknowledges that the Licensed Software may contain Key Files which are a form of disabling code.  For the purposes of this section, "disabling code" means computer code which interferes with the normal operation of the Licensed Software in order to prevent unauthorized use of the Licensed Software. 

		
	14.
	GENERAL PROVISIONS

All notices, requests and demands to or upon the respective Parties shall be in writing to:

To Licensee:                            To:
	
		
	LifeVantage Corporation
	JIA, Inc.

	9815 S. Monroe Street, Suite 100, 
Sandy, UT 84070
	203 SE Park Plaza Dr, Suite 250

	 
	Vancouver, WA  98684

	Attn: Bob Cutler
	Attn:  Accounting Department

Neither Party shall be liable for any failure or delay in its performance under this Agreement, except for payment of invoices, due to causes, including, but not limited to, acts of God, acts of civil or military authority, fires, epidemics, floods, earthquakes, 

[***] -- Confidential portions of this document denoted by [***] have been redacted and filed separately with the Securities and Exchange Commission

riots, wars, sabotage, labor shortages or labor disputes, and governmental actions, which are beyond reasonable control.  Any delay incurred as a result of such causes shall extend the term of this Agreement for a period equal to the duration of the cause. 

		
	14.1.
	Announcement

JIA and Licensee may acknowledge, announce, or in similar fashion reveal the existence of their business relationship provided such announcement does not infringe upon either the Confidential Information of the other Party or Licensee or does not provide in any detail the specific rates, terms, and conditions found within this Agreement.  Additionally, each Party may place the logo of and a link to the other Party or Licensee on its Web page and tradeshow booth.

		
	14.2.
	Assignment

This Agreement is assignable by JIA upon written notice to Licensee.  This Agreement is not assignable by Licensee without written consent of JIA.  In the event of assignment, the promises and covenants herein contained shall continue to be binding upon the original parties.  

		
	14.3.
	Invalid Provisions

If any provision of this Agreement is invalid or unenforceable, then the remainder of this Agreement shall not be affected thereby.

		
	14.4.
	Entire Agreement; Amendments 

This Agreement supersedes all prior agreements, letters of intent, negotiations, representations and proposals, written or oral, requests for proposals, or previous discussions of the Parties.  There have been no other promises or inducements, oral or written, given by any Party to the other to enter into this Agreement.  The Parties agree that this Agreement or any term or provision thereof shall not be modified in any manner whatsoever without the written authorization of both Parties hereto and signed by both an authorized representative of Licensee and by an authorized representative of JIA.

		
	14.5.
	Governing Laws 

This Agreement shall be governed by and construed in accordance with the laws of the state of Washington. Jurisdiction and Venue for any dispute regarding this Agreement will be based in Clark County, Washington.

		
	14.6.
	Arbitration

Licensee and JIA agree that any controversy or disputes arising out of this Agreement, or the breach thereof, will be resolved as described in this Section.  The Parties will endeavor to settle such dispute amicably.  If the Parties, and if applicable, Licensee, shall fail to settle any dispute, such dispute shall be finally settled by binding arbitration conducted in Clark County, Washington.  All arbitration shall be in accordance with the then existing Commercial Arbitration Rules of the American Arbitration Association, and judgment upon the award rendered by the competent jurisdiction to obtain temporary relief pending resolution of the dispute through arbitration.  The Parties hereby agree that service of any notices in the course of such arbitration at their respective addresses as provided for in this Agreement shall be valid and sufficient.  The non-prevailing Party shall pay all costs and expenses incurred by the prevailing Party.

		
	14.7.
	Attorney Fees

The prevailing Party in any arbitration or lawsuit concerning this Agreement or any matter related thereto shall be entitled to any award of reasonable attorney fees and costs from the other, including fees incurred through trial, appeal or in bankruptcy proceedings.  

		
	14.8.
	Authority

Each individual signing this Agreement warrants that he or she is authorized to, and by his or her signature does intend to, bind the entity or person for which he or she purports to act.

		
	14.9.
	Equitable Relief

Because Licensee will have access to and become acquainted with Confidential information of JIA, the unauthorized use or disclosure of which would cause irreparable harm and significant injury which may be difficult to ascertain and which may not be compensable by damages alone, each Party agrees that the other Party will have the right to enforce this Agreement and any of its provisions by injunction, specific performance or other equitable relief without prejudice to any other rights and remedies that each Party may have for the other Party’s breach of this Agreement.

[***] -- Confidential portions of this document denoted by [***] have been redacted and filed separately with the Securities and Exchange Commission

		
	14.10.
	Inspection

 JIA have the right to inspect, from time to time, the Licensed Software, the Licensed Software database, User profiles, User count or other applicable criteria to ensure compliance to this Agreement at JIA’s discretion.  JIA shall treat such information as Confidential.

		
	14.11.
	Hiring of JIA Personnel

JIA has invested significant time and resources in the selection, training, education and development of each JIA employee.  Licensee, on its own behalf, acknowledges and agrees that significant harm and damage would result to JIA in the event JIA’s employee was to terminate employment with JIA to work for Licensee, whether as an employee or as an independent contractor.

		
	14.11.1.
	Licensee will not directly or indirectly through any other person enter into any discussion about employment, engagement or compensation in any form whatsoever, or the possibility of the same including offers of employment, engagement, compensation, or other arrangements of forming a business relationship directly with any employee of JIA unless express written permission has been granted by JIA in advance.  The Parties hereto do hereby acknowledge that JIA would suffer significant damage in the event that an employee of JIA were to become employed in any way by Licensee within [***] of the employees termination from JIA.

		
	14.11.2.
	The Parties further agree that it would be difficult to ascertain with any degree of certainty the amount of damages which would be sustained by JIA.  In light of the foregoing, the Parties hereto do hereby agree that in the event an employee of JIA does become so employed by Licensee within the time period set forth herein, Licensee shall pay to JIA as liquidated damages, and not as a penalty, an amount equal to [***] of the employee’s last salary at JIA, which sum shall be compensation to JIA for the inconvenience, disruption, recruitment, training, education and development of the replacement employee.  Licensee shall pay that amount to JIA within thirty (30) days of the date on which the former employee of JIA commences work or services with or for Licensee.

		
	14.12.
	Severability

If for any reason a court of competent jurisdiction finds any provision of this Agreement, or portion thereof, to be void, invalid, or unenforceable, that provision of the Agreement shall be enforced to the maximum extent permissible so as to affect the intent of the Parties, and the remainder of this Agreement shall continue in full force and effect.

		
	14.13.
	Survival

The provisions set forth in the following Sections and Subsections of this Agreement will survive after termination or expiration of this Agreement and will remain in effect until fulfilled: “Use Restrictions”, “Copy Restrictions”, “Ownership”, “Warranty Disclaimer”, “Trade Secrets & Confidentiality”, “Modifications; Source Code” and “General Provisions”.

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 

[***] -- Confidential portions of this document denoted by [***] have been redacted and filed separately with the Securities and Exchange Commission

IN WITNESS WHEREOF, the parties have caused their duly authorized representatives to execute this Agreement effective as identified below.     

	
			
	

Accepted by:
	JIA, Inc.
	LifeVantage Corporation

	

Name :
(Please Print)
	

J. Robert Cavitt
	Douglas C. Robinson

	

Name :
(Signature)
	/s/ J. Robert Cavitt
	/s/ Douglas C. Robinson

	

Title:
	

President & CEO
	President & CEO

	

Date:
	October 1, 2012
	September 28, 2012

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[***] -- Confidential portions of this document denoted by [***] have been redacted and filed separately with the Securities and Exchange Commission

APPENDIX A

JIA, Inc. Order Form 
203 SE Park Plaza Drive, Suite 250
Vancouver, WA USA 98684

	
		
	

Presented To: 

	                                             
Date: September 28, 2012

	LifeVantage Corporation
10813 S. River Front Parkway, Suite 500 
South Jordan, UT 84095
	 

	 
	 

	Licensed Software
	Amount (USD)

	j6® System License Fee 
[***]

License allows for:
•    A single Production copy of the software 
•    Unlimited number of Users may use the Licensed Software
•    Unlimited number of Countries may be configured within the single Production copy of the Licensed Software
•    License for use by the direct selling operations of LifeVantage Corporation

	

$[***].00
([***].00)
$[***].00

	Employee Portal v7.5 or greater  
Major Standard Features Include: 
Plan Builder:
¤    Supports multiple, concurrent compensation & incentive plans & [***]
¤    Graphical User Interface To Create Compensation Plans, Contests/Promotion Plans, & Reporting Metrics (Key Operating Indicators)
•    Define each Plan’s rules for Qualifications
•    Define each Plan’s rules for Earnings or Point calculations
•    Control Plan Parameters (percentages, fixed payouts or values )
•    [***]
•    [***]
¤    Copy Existing Plans 
¤    Add New Plans And [***]
•    View Historical Plan Rules
¤    Automatically archives the Genealogy and Transactions for each plan and period
	 

[***] -- Confidential portions of this document denoted by [***] have been redacted and filed separately with the Securities and Exchange Commission

	
		
	Major Standard Features continued:

Earnings Module:
¤    Multiple Titles & Title Groups 
•    Allows organizing of titles and ranks within specific categories (groups) defined by the user.
¤    Define Earning Categories for auditing and analysis reporting 
¤    Multiple Volume Types
•    Track, count or calculate different transaction types or events (i.e. orders, sales by SKU, enrollment activity, customers, event registrations) that are transmitted into the j6 database
¤    Multiple Calendars/Periods for different Plans 
¤    Manage [***] Types and [***] Rules (i.e. [***], Etc.)
¤    Manage Multiple Account Classes Which Categorize Account Types (i.e. Retail, Distributor, Preferred Customer, Lead, Etc.)
¤    Manage the sponsoring rules by Account Classes

	 

	Multi-Plan Processor: 
¤    Can provide [***] Qualifications status
¤    Generates Plan Results and Audit reporting
•    Includes standard Earnings Summary Report, Audit Detail Report, Qualifications Inquiry, Earnings Report, Downline Earnings Report and Commission Statement
¤    Exemption Management
¤    Earnings Adjustments
¤    Volume Adjustments
¤    Custom Plan Settings
¤    Processing Workbench - Graphical Administrative Page
•    ‘At-a-glance’ view of processing status for every production and model plan
•    Easy-to-use, icon-based plan processing
	 

	Genealogy Management & Customer Service
¤    Add New Account, Inquiry and Edit
¤    Contact Management & Inquiry by Account & Employee
¤    Sponsor and Title Management
¤    Account Status Management
•    Terminate, Class Change And Reinstate With Or Without Downline
¤    First Level Change Inquiry
¤    Web Profile Management
¤    Graphical Genealogy
¤    Tree View Genealogy
¤    Performance [***]
¤    [***]Viewing the Distributor view of the [***] page within the Employee Portal.

	 

[***] -- Confidential portions of this document denoted by [***] have been redacted and filed separately with the Securities and Exchange Commission

	
		
	Sales Order Management:
¤    Order Entry
¤    Product ‘fast entry’ and ‘browse’ options in Employee and Distributor Portals
¤    Browse / Add to Cart in PWS
¤    Support for pending orders
¤    Multiple Order Types 
¤    Distributor, Customer, Preferred Customer
¤    Redemption
¤    Autoship
¤    Event/Party
	 

	¤    Inventory Setup
¤    Define SKU information
¤    Warehouse location
¤    Stock Master (assign inventory to warehouses, define starting quantities)
•    Optionally, track Starting Qty, Reserved Qty, Available Qty in j6
¤    Optionally, import quantities from 3rd party WMS (requires integration)

	 

	¤    Product Information Setup
¤    Single product assigned to one or more countries
¤    Optionally, separate products per country
¤    Support for Individual, Pack, and Service type products
¤    Support for multiple price types ([***])
¤    Support for multiple volumes ([***])
¤    Support for Cart Views and Product Content (browsing)
¤    Support for Product Categories (browsing)
	 

	Database & Change Auditing  

Systems Integration Tool Kit (API & Web Services Suite) 

Communication Module
¤    Message Trigger Setup 
•    Allows users to create Triggers from the [***] and [***] flows such as [***], and [***]
•    Users can identify method of delivery ([***], and/or [***]).
¤    Supports Templates for [***]  and [***]
•    Email Templates requires integration with SMTP email Server provided by Customer
•    SMS Templates uses associated carrier email address
•    Web Alerts are viewed in the j6 Distributor Portal Web Alerts are viewed in the j6 Distributor Portal which requires a separate Software License purchase.

	 

[***] -- Confidential portions of this document denoted by [***] have been redacted and filed separately with the Securities and Exchange Commission

	
		
	Administration
¤    Audit Inquiry
¤    Genealogy Viewer Filter and Highlight Management
¤    Menu Administration
¤    Content Resource Management for Language Translation Administration

	 

	j6 Distributor Portal - v7.5 or greater
Major Standard Features Include: 
¤    [***] Performance Success Tracker
¤    Business Alerts  & Tasks
¤    Graphical Genealogy 
•    Highlights & Filters
•    Save to List
•    Export to Excel
¤    Tree View Genealogy Query
¤    Additional Downline Reports
•    Group Status Report
•    Full Genealogy Report
¤    Commission Earnings Report
•    With drill down into detail
¤    Downline Earnings Report
¤    My Profile Manager
•    Account Information
•    Banking (ACH) Account Management
•    Web Profile
¤    Theme select
¤    URL Select
¤    My Story
¤    My Image
¤    Online Enrollment 
•    Supports [***] Enrollment process
 ̈    Customer
 ̈    Preferred Customer
 ̈    Distributor
 ̈    Other 
¤    Performance Dashboard
¤    Distributor Order Entry
•    Customer Orders
•    Supply Orders
•    Redemption/Loyalty/Reward orders
•    Sales Order Incentives
•    Autoship Orders
•    PCI Compliant
¤    Event Orders
•    Hostess Management
•    Guest List Manager
•    Invitations & Reminders
•    Updated by Hostess Portal
•    Hostess reward calculation and validation against hostess reward rules
•    Email Blaster and List Builder
	 

[***] -- Confidential portions of this document denoted by [***] have been redacted and filed separately with the Securities and Exchange Commission

	
		
	j6 Personal Website - v7.5 or greater
Major Standard Features Include: 
▪Multi - Theme Support
•Provide themes based on Product Ranges, Opportunity, Party/Hostess, etc.
▪Multi - Language Support
▪Multi - Country & Currency Support
▪Retail Shopping Cart
•Retail Sales Order Incentives
•Product Browsing and Details
•PCI Compliant
▪Retail Account Login 
•Account Profile Management 
•Order Status and History
•Autoship Order Setup & Management
•Redeem Loyalty Rewards 
•Upcoming Events (Hostess Portal)
▪Online Enrollment with Kit Order
•Distributor, Retail and Preferred Customer Enrollment
•Add Product to Kit Order

	 

	¤    Hostess Portal
•    Guest List Manager
•    Invitations & Reminders
•    Guest RSVP Updates (from invitations)
•    Non-attending Guest Orders (e-Order) added to Event/Party totals
•    Hostess Coaching Content
¤    Content Management Tool
¤    Menu Administration Tool
¤    Manage menu and Page Content Type
	 

	 
	 

	Software License Fee Total
	$[***].00

	
		
	Payment Terms
	 

		
	•
	$[***].00 due upon execution of Software License Agreement.

		
	•
	$[***].00 due upon initial installation of the standard Licensed Software at Jenkon’s hosting facility or at a location designated by LifeVantage under the terms of this Agreement, whichever is sooner.

		
	•
	$[***].00 due [***] days after installation of the standard j6 software.

Additional Terms & Conditions
	
		
	Travel Costs
	If in the course of providing services travel is required, costs incurred traveling to and from Customer Site will be billed to the Customer.  All expenses of economy class airfare (or business class airfare for overseas travel), lodging, ground transportation, telephone expenses, Internet charges and per diem will be invoiced, with pre-paid terms. Travel time while Jenkon employee(s) are in transit is invoiced at $[***]/hr, with a maximum of 8 hours per day.

[***] -- Confidential portions of this document denoted by [***] have been redacted and filed separately with the Securities and Exchange Commission

	
					
	Software Modifications & Other Professional Services
	Unless specified, prices do not include any customizations or modifications to the software.  Any additional software customizations and professional services will be performed on an hourly time & material basis by JIA.  JIA’s current hourly rate, at the time of execution of this Agreement, is $[***]/hour.

	Third-party Products
	Unless designated as part of this Agreement, the Customer is responsible for any and all third-party products or services  including, but not limited to, hardware , operating systems, database, SSL Certificates, accounting software, tax withholding reports, commissions disbursements, tax data, credit card merchant accounts, order fulfillment, shipping and warehouse management.  Any third party products provided by Jenkon are not refundable.

	Regulatory Fees, Taxes
	Customer is responsible for any and all governmental, regulatory, import or export fees, tariffs, duties, and sales taxes, which includes any such fees associated with the past, present or future purchase or delivery of all JIA products and services.  Additionally, for any products or services provided to Lessee in the United States jurisdictions of Texas, Washington and California, Lessee may be billed directly by JIA for applicable sales taxes.

	Training
	Unless specified in this Order Form, training may be provided at the Customer’s facilities, or remotely via web or phone conferencing.  Customer may request additional time for training beyond the amount identified in this Order Form.
Use of the Report Builder requires Customer to obtain training from 3rd party Microsoft partners or online services that specialize in reporting services features.  Use of the Report Builder also requires Visual Studio licenses and an internal j6® reporting services environment.

	Credit Cards
	If accepting Credit Card payments for j6 orders, the Customer has the option to have a Credit Card Merchant Account from an approved services provider to use the existing standard j6 interface with PayPal Payflow Pro Gateway or the ProPay Gateway. Customer may also elect to use a different Merchant Account and Processor for credit card payments which may result in additional software modification costs to the Customer. Customer is responsible for establishing and maintaining the business relationship and agreements with the merchant account providers.

	PCI Compliance
	JIA has a relationship with ProPay who offers additional data security for PayPal or ProPay credit card payment transactions by providing compliance with Payment Card Industry Data Security Standards (PCI/DSS), via their Protect Pay product. For the purposes of maintaining PCI/DSS compliance with the Application located at JIA’s hosting facility, the Lessee is required to establish a Protect Pay account with ProPay, or request Professional Services for the implementation of another PCI-compliant credit card processing solution.

	US Sales Tax
(if required)
	For customers requiring US sales tax rates, the Customer is required to directly contract with CCH for use of their Sales Tax Online, Vertex or Avalara for use of their Avatax product.

	Cancellation
	Any and all cancelled orders, prior to delivery of the software or service, are subject to a [***] cancellation fee, plus all related expenses in the form of services rendered at the rate of $[***]/hour, travel costs, hotel, car, and per diem. Upon receipt of the Licensed Software or Professional Service, Customer may not cancel any Order Form.

[***] -- Confidential portions of this document denoted by [***] have been redacted and filed separately with the Securities and Exchange Commission

APPENDIX B

Confidentiality Agreement

		
	1.
	Definition.  For the purposes of this Agreement, "Confidential Information" means proprietary information belonging to either Party, including systems, technology, processes, project descriptions, specifications, drawings, business plans, sales & marketing information, prices, technical data, trade secrets, pending trademark and patent applications, computer software, training curriculum, current and prospective clients and customers and financial and accounting information, the source code for the Licensed Software, documentation, technical specifications or information regarding the Licensed Software and any object code, data, fonts and/or technology, financial terms or information communicated by either Party to the other in furtherance of this Agreement not generally known to the public.  

		
	2.
	Identification of Confidential Information.   Neither Party shall have an obligation to specifically identify any information as to which the protection of this Agreement is desired by any notice or other action, and each Party agrees that all information described in Section 1 disclosed by the other Party shall be deemed to be Confidential Information covered by this Agreement.

		
	3.
	Protection.  Unless written consent is otherwise granted by the disclosing Party, release of, access to, or use of Confidential Information disclosed by either Party shall be restricted to those employees and officers of the receiving Party or their respective affiliates who have a need to know the Confidential Information and only for purposes furthering and consistent with the terms of the Software License Agreement.  The Parties shall use the same degree of care to protect the confidentiality of the Confidential Information disclosed to each of them as they use to protect their own Confidential Information and will not disclose or use the Confidential Information other than in conjunction with the terms of the Software License Agreement.   

4.    Exceptions. The obligations imposed under paragraph 3, above, shall not apply to Confidential Information:

a.    Which becomes generally available to the public through no wrongful act of the receiving Party;

		
	b.
	Which is already lawfully in the possession of the receiving Party and not subject to an existing agreement of confidentiality between the Parties;

		
	c.
	Which is received from a third Party without restriction and without breach of this Agreement or other confidentiality agreement between the third Party and the disclosing Party;  

d.    Which was independently developed by the receiving Party; or

		
	e.      
	To the extent necessary to release such Confidential Information in order to comply with applicable law.  In the event that the receiving Party is legally requested or required (by oral questions, interrogatories, requests for information and documents, subpoena, or similar process or, in the opinion of counsel for such Party, by other statutes, regulations or laws), to disclose any Confidential Information, the receiving Party shall promptly notify the disclosing Party of such request or requirement so that the disclosing Party will have adequate opportunity to seek an appropriate protective order and monitor compliance with the terms of this Agreement.  Failure of either Party to promptly notify the other Party of such request or requirements will constitute a breach of this Agreement.

		
	5.
	Limitations.  The original and all copies of all or any part of written Confidential Information that is disclosed under this Agreement shall be returned by the receiving Party upon written request by the disclosing Party,. Upon receipt of returned Confidential Information, disclosing Party shall execute an itemized receipt if so requested by the receiving Party. 

		
	6.
	Obligations.   No disclosure of Confidential Information and no obligation hereunder shall be construed to obligate any of the Parties to enter into any further agreement or negotiation with or make any further disclosure to the other Party hereto.

		
	7.
	Remedies.  In the event of a breach of any of the foregoing provisions, the Parties agree that the harm suffered by the injured Party would not be compensable only by monetary damages and, accordingly, that the injured Party shall be 

[***] -- Confidential portions of this document denoted by [***] have been redacted and filed separately with the Securities and Exchange Commission

entitled to an injunction against such breach in addition to any other available legal or equitable remedies.

		
	8.
	Term.  This Agreement shall terminate upon the termination or expiration of the Software License Agreement being entered into by the Parties concurrently with this Agreement.  Notwithstanding the termination of this Agreement, the Parties obligations regarding the confidentiality of disclosed Confidential Information shall continue as set forth in paragraph 3, above. 

		
	9.
	Entire Agreement.  This Agreement and Section 9 of the Software License Agreement constitutes the entire agreement and understanding between the Parties with respect to confidentiality of the Confidential Information and it supersedes any and all prior or contemporaneous oral or written understandings or agreements relating thereto. No agent, employee or representative of any Party has any authority to bind such Party to any affirmation, representation or warranty; and, unless such is specifically included within this Agreement, it shall not be enforceable by another Party hereto.

		
	10.
	Notices.  Any notices required by this Agreement shall be in writing and shall be given by hand or sent by first class mail to the applicable address noted below:

	
		
	LifeVantage Corporation
	JIA, Inc.

	9815 S. Monroe Street, Suite 100
Sandy, UT 84070
	203 SE Park Plaza Dr, Suite 250

	 
	Vancouver, WA  98684

	Attn: Bob Cutler
	Attn:  Accounting Department

		
	11.
	Governing Law. This Agreement is to be governed by the laws of Washington and the Parties hereby consent to the jurisdiction of the courts sitting in Clark County, Washington to adjudicate all disputes arising hereunder.

		
	12.
	Arbitration.  BY AGREEING TO RESOLVE FUTURE DISPUTES IN ARBITRATION, THE PARTIES ARE WAIVING THEIR RIGHT TO LITIGATE IN COURT, INCLUDING THEIR RIGHT TO A JURY TRIAL.  Any claim or controversy between or among the Parties shall be resolved by binding arbitration in Vancouver, Washington, in accordance with the applicable arbitration rules of the American Arbitration Association.  The arbitrator(s) shall award recovery of all attorneys' fees and costs, arbitration administration fees and costs, and arbitrator(s)' fees.  Judgment on the arbitrator(s)' award may be entered in any court having jurisdiction thereof.  This Section does not limit the right of any Party to exercise the remedies provided in Section 7.

		
	13.
	Authority. Each individual signing this Agreement warrants that he or she is authorized to, and by his or her signature does intend to, bind the entity or person for which he or she purports to act.

	
			
	

Accepted by:
	JIA, Inc.
	LifeVantage Corporation

	

Name :
(Please Print)
	

J. Robert Cavitt
	Douglas C. Robinson

	

Name :
(Signature)
	/s/ J. Robert Cavitt
	/s/ Douglas C. Robinson

	

Title:
	

President & CEO
	President & CEO

	

Date:
	October 1, 2012
	September 28, 2012

[***] -- Confidential portions of this document denoted by [***] have been redacted and filed separately with the Securities and Exchange Commissionspni_ex101.htm

EXHIBIT 10.1

 

EXECUTION COPY

 

EXECUTIVE EMPLOYMENT AGREEMENT

 

THIS AGREEMENT (“Agreement”), made as of the 23rd day of May, 2013, effective on the Effective Date (as defined herein), between Sputnik Enterprises, Inc., a Nevada corporation (the “Company”), having its principal place of business at Orlando, Florida, and R. Thomas Kidd (the “Executive”).

 

W I T N E S S E T H:

 

WHEREAS, Executive has agreed to serve as the CEO and Principal Financial Officer of the Company and;

 

WHEREAS, the Company desires to secure the services of Executive, upon the terms and subject to the conditions set forth in this Agreement;

 

WHEREAS, Executive possesses knowledge and skills that will contribute to the continued success of the Company’s business, and,

 

WHEREAS, the Company believes that Executive’s knowledge and skills will prove to be crucial in executing the business plan of the Company;

 

WHEREAS, the Company is prepared to commit to the terms and conditions of employment as forth herein currently applicable to Executive; and

 

WHEREAS, the recitals set forth above are hereby incorporated into and made a part of this Agreement.

 

NOW, THEREFORE, intending to be legally bound, the Company agrees to employ Executive, and Executive hereby agrees to be employed by the Company, upon the following terms and conditions:

 

ARTICLE I

EMPLOYMENT

 

1.01. Position and Duties.  Executive is hereby employed as the CEO of the Company, and will use his/her energies and abilities in the performance of his/her duties, related to and consistent with his position, as may be assigned to him/her from time to time by the Board of Directors of the Company (“the Board”).  Executive shall perform such services and render reports as directed by the Board of the Company.

 

1.02. Location.  Executive’s place of work shall be in Orlando, Florida subject to Executive traveling outside of such location from time to time as business needs may require.

 

1.03. Term.

 

1.03.1.  The executive’s term as CEO shall be effective as of May 23, 2013 (the “Effective Date”), and shall continue on a month to month basis until either Executive or the Company provides at least 15 days advance written notice.

 

  

1

  

1.04. Compensation.

 

1.04.1. Base Fee. None.

 

1.04.2. Signing Bonus. Executive shall receive 5000 shares of convertible preferred shares of Sputnik Enterprises, Inc. (SPNI OTCBB), par value $10, for a signing bonus. The shares are earned upon execution of this agreement.

 

1.04.3. Future Bonus. Executive shall be entitled to any future merit bonuses as adopted and approved by the Board of Directors of the Company in their sole discretion.

 

1.05. Benefits and Expenses.

 

1.05.1. Benefits. Company shall not provide and Executive shall not receive any benefits.

 

1.05.2. Business Expenses.  The Company shall pay or reimburse Executive for all reasonable expenses incurred or paid by Executive in the performance of Executive’s duties hereunder, upon presentation of expense statements or vouchers and such other information as the Company may require in accordance with the generally applicable and reasonable policies and procedures of the Company.  Approved expenses will be paid within 30 days of submission.

 

ARTICLE II

TERMINATION

 

2.01. Incapacity.  If during the term of Executive’s employment, Executive is prevented from effectively performing the essential functions of his job, with reasonable accommodation (if such reasonable accommodation can be provided by Company), for a period of 180 days within any twelve month period by reason of illness or Disability, the Company, by written notice to Executive, may terminate Executive’s employment.  Upon delivery to Executive of such notice, together with payment of any salary, bonus and commissions accrued under Sections 1.04.1 and 1.04.2 and any other amounts as may be due and/or accrued (which amounts shall be pro-rated up to the date of termination) under Sections 1.04 and 1.05 up to the date of termination, Executive’s employment and all obligations of the Company will terminate and this Agreement shall end.  For purposes of this Agreement, “Disability” is defined as the Executive being eligible for disability insurance benefits under the Company’s long term disability insurance policy, or in the absence of such disability insurance coverage, Disability shall be defined as provided under applicable disability discrimination law.

 

2.02. Retirement.  This Agreement shall end, without notice to terminate being required, upon Executive’s voluntary election to retire at any time after Executive reaches age 65.  Upon retirement, Executive’s employment shall terminate and Executive shall be entitled to payment of any salary accrued under Section 1.04.1, any awarded but unpaid bonuses applicable to any prior period, together with any other amounts as may be due and/or accrued (which amounts shall be pro-rated up to the date of termination) under Sections 1.04 and 1.05 up to the date of termination, following which all obligations of the Company will terminate.

 

2.03. Death.  If Executive dies during the term of his employment, Executive’s employment will terminate, the Agreement shall end, and all Company’s obligations, other than any obligations with respect to the payment of accrued but unpaid salary under Section 1.04.1, a cash payment of $200,000 to be paid to Executive’s estate immediately following the date of death, and any awarded but unpaid bonuses applicable to any prior period, together with any other amounts as may be due and/or accrued (which amounts shall be pro-rated up to the date of termination) under Sections 1.04 and 1.05 up to the date of death, will cease.

 

  

2

  

 

2.04. Termination For Cause.  If the Company terminates Executive for Cause, this Agreement and all obligations of the Company shall terminate effective upon notice of termination for Cause, other than any obligations with respect to the payment of accrued but unpaid salary and bonus under Sections 1.04.1 and 1.04.2, together with any other amounts as may be due and/or accrued under Section 1.05 up to the date of termination.  For purposes of this Agreement, “Cause” shall mean:

 

(i) Executive’s failure to perform duties (other than as a result of incapacity as described in Section 2.01) in any material respect that remains uncured for 10 days after written notice thereof is given to Executive;

 

(ii) Executive’s willful misconduct or gross negligence;

 

(iii) Executive’s willful failure to conduct the business of the Company in accordance with the lawful directives of the Board, which failure causes material harm to the Company or would be likely to cause material harm to the Company;

 

(iv) any material breach by Executive of any of the covenants, terms or conditions of this Agreement that remains uncured for 30 days after written notice thereof is given to Executive;

 

(v) Executive’s engagement in conduct during the term of this agreement, which is dishonest or disloyal, which has injured or would injure the business or reputation of the Company or otherwise adversely affects its interests in any material respect; or

 

(vi) Executive’s engagement in fraud or embezzlement or Executive’s conviction or plea of nolo contendre to a felony.  This provision shall not apply to any conviction or plea of nolo contendre to any traffic (driving) offenses.

 

2.04.1. Any notice given by the Company under this Section 2.04 shall specifically state the manner in which the Executive has not performed his duties, or has breached any of the covenants, terms or conditions of this Agreement, that the notice is given under this Section 2.04, and that failure to correct such breach will result in termination of employment under this Agreement.  For the purpose of the above definition of Cause, no act, or failure to act, on Executive’s part shall be deemed “willful” unless done, or omitted to be done, by the Executive not in good faith and without reasonable belief that his action or omission was in the best interest of the Company.  Failure of the Company or the Executive to achieve or satisfy any target, milestone or other performance goal or hurdle shall not be deemed a failure by the Executive to perform his duties or to comply with any of the directives of the Board of Directors.

 

2.04.2.  Notwithstanding the foregoing, termination by the Company for Cause shall not be effective until and unless (i) notice of intention to terminate for Cause has been given by the Company within 60 days after the Company learns of the act, failure or event constituting “Cause” under this Section 2.04 (which is not cured by the Executive within any time period permitted for such cure above), and (ii) the Board of Directors has voted (at a meeting of the Board duly called and held as to which termination of Executive is an agenda item) to terminate Executive for Cause, and (iii) if Executive has commenced arbitration in the manner prescribed in this Agreement within 15 days after receipt of such notice of termination, disputing the Company’s right under this Agreement to terminate for Cause, the Arbitrator shall thereafter have determined that the Executive was terminated for Cause.  If the Arbitrator declines to rule that the Executive was terminated for Cause, the Executive shall be treated as having been terminated without cause and the Executive shall be entitled to receive the Severance Benefits pursuant to Section 3.

 

  

3

  

 

2.05. Termination Without Cause.  Executive’s employment is at-will, and this Agreement may be terminated at any time by the Company without Cause upon 15 days notice to Executive.  If the Company terminates Executive without Cause hereunder, the Company shall pay to Executive accrued but unpaid salary under Section 1.04.1, together with any other amounts as may be due and/or accrued under Sections 1.04 and 1.05 up to the date of termination (which amounts shall be pro-rated up to the date of termination), and any awarded but unpaid bonuses applicable to any prior period. The Company’s provision of written notice not to extend either the Initial Term or any Extension Term of this Agreement pursuant to Section 1.03 shall be deemed to be a termination of the Executive by the Company without Cause hereunder.

 

2.06. Executive Termination for Good Reason.  If Executive terminates his employment for Good Reason, this Agreement and all obligations of the Company shall terminate effective upon Executive’s provision of notice of termination, and Executive shall receive the same salary, benefits and Severance Benefits as would be provided or payable to him in connection with a termination without Cause under Section 2.05 hereof.  For purposes of this Agreement “Good Reason” shall mean:

 

	
(i)  

	
change in control of the company;

 

	
(ii)  

	
an assignment to Executive of any duties or responsibilities inconsistent with, or a significant reduction or change by the Company (or its successor) in the nature or scope of the authority of, such duties or responsibilities assigned to or held by Executive hereunder or as of the Effective Date;

 

	
(iii)  

	
any removal of Executive from the position of  CEO with the Company (or its successor);

 

	
(iv)  

	
a reduction by the Company (or its successor) and its subsidiaries in Executive’s base salary under this Agreement or as it may be increased at any time thereafter;

 

	
(v)  

	
non-payment of Executive’s base salary for a period of more than 30 days (Executive is not required to notify company to cure non-payment of salary);

 

	
(vi)  

	
a transfer or relocation of the site of employment of Executive, without his express written consent, to a location more than 50 miles from the location of his principal place of business as set forth in this Agreement; or

 

	
(vii)  

	
any failure of the Company to comply with and satisfy its material obligations under this Agreement (other than those specified in clauses (i) through (iv) above, as to which no notice and opportunity to cure shall be provided) that remains uncured for 30 days after written notice thereof is given to the Company.

 

  

4

  

 

ARTICLE III

EXECUTIVE’S REPRESENTATIONS AND WARRANTIES

 

4.01. Duties.  Executive agrees that, in addition to all other obligations commensurate with his employment with the Company, he shall comply with each of the Company’s corporate governance and ethics guidelines, conflict of interests policies and code of conduct applicable to all Company employees or senior Executives as adopted by the Board from time-to-time.  Executive first shall obtain the consent of the Board in writing before engaging in any other business or commercial activities, duties or pursuits; provided however that nothing shall preclude Executive from (i) engaging in charitable activities and community affairs, (ii) acting as a member, director or officer of any industry trade association or group, (iii) serving as a trustee, director or advisor to any family companies or trusts, (iv) managing his personal investments and affairs, and (v) acting as a director of any other companies, provided that in the case of clause (v), such service is not to any company which competes with the Company, and further provided that such activities under clause (v) do not, in the reasonable judgment of the Board, materially interfere with the proper performance of his duties and responsibilities hereunder.

 

4.02. Executive Nonsolicitation.  Should Executive’s employment with the Company be terminated with Cause or by Executive’s voluntary resignation without Good Reason, for a period of twelve (12) months following such termination, Executive shall not solicit or induce, or attempt to solicit or induce, any employee of the Company or its affiliates, other than any administrative assistant, to terminate such employment for any reason whatsoever or hire any employee of the Company or its affiliates, other than any administrative assistant.

 

4.03. Non-Disclosure.  Executive shall not, during or after his employment with the Company, (i) disclose, in whole or in part, any Company Confidential Information, as hereinafter defined, to any person, firm, corporation, association or other entity for any reason or purpose whatsoever unless authorized in writing to do so by the Company or required by law, order of any court or court process, or (ii) use any Company Confidential Information for Executive’s own purpose or for the benefit of any person, firm, corporation, association or other entity other than the Company; except in the proper performance of Executive’s duties as instructed by the Company.  Company Confidential Information shall not include (i) information in the public domain or generally known in the industry (unless Executive is responsible, directly or indirectly, for such Company Confidential Information entering the public domain or becoming known in the industry without the Company’s consent), (ii) information and know-how derived or known by Executive from experience in the industry generally and not specific to Company, and (iii) information disclosed by the Company to third parties without any duty or obligation of confidentiality or non-disclosure. .

 

4.03.1. Confidential Information.  For purposes of this Agreement, Company Confidential Information shall mean the knowledge and information acquired by Executive concerning the Company’s confidential and proprietary information regarding its business plans, programs, client prospects, client lists, supplier and vendor information, client contacts, client information and data, marketing plans, data processing systems and information contained therein, products, proposals to clients and potential clients, account reports, plans, studies, price lists, financial statements and records, files and other trade secrets, know-how, or other private, confidential or proprietary information of or about the Company which is not already available to the public or known generally in the industry.

 

4.04. Acknowledgment.  Executive acknowledges and agrees that the terms of this Article IV:  (i) are reasonable in light of all of the circumstances; (ii) are sufficiently limited to protect the legitimate interests of the Company and its subsidiaries; (iii) impose no undue hardship on Executive; and (iv) are not injurious to the public.  Executive further acknowledges and agrees that Executive’s breach of the provisions of this Article IV will cause the Company irreparable harm, which cannot be adequately compensated by money damages.  Executive consents and agrees that if Executive commits any such breach or threatens to comment any breach, the Company shall (at its election and notwithstanding Section 5.010 hereof) be entitled to temporary and permanent injunctive relief from a court of competent jurisdiction, without posting any bond or other security and without the necessity of proof of actual damage, in addition to, and not in lieu of, such other remedies as may be available to the Company for such breach, including the recovery of money damages.

 

  

5

  

 

ARTICLE IV

GENERAL PROVISIONS

 

5.01. Authorization to Modify Restrictions.  The provisions of this Agreement will be enforceable to the fullest extent permissible under applicable law, and the unenforceability (or modification to conform to law) of any provision will not render unenforceable, or impair, the remainder of this Agreement.  If any provision will be found invalid or unenforceable, in whole or in part, this Agreement will be considered amended to delete or modify, as necessary, the offending provision or provisions and to alter its bounds to render it valid and enforceable.

 

5.02. No Waiver.  The failure of either the Company or Executive to insist upon the performance of any term in this Agreement, or the waiver of any breach of any such term, shall not waive any such term or any other term of this Agreement.  Instead, this Agreement shall remain in full force and effect as if no such forbearance or waiver had occurred.

 

5.03. Entire Agreement.  This Agreement represents the entire agreement of the parties with respect to the subject matter hereof and supersedes any prior agreement between Executive and the Company (or any of its predecessors or affiliates).  This Agreement may be amended only by a writing signed by each of the parties.  This Agreement may be assigned by the Company to any successor.  This Agreement may not be assigned by Executive.

 

5.04. Governing Law.  This Agreement will be governed by and construed in accordance with the laws of the State of Florida.

 

5.05. Consent to Jurisdiction.  Executive and Company hereby irrevocably submits to the personal jurisdiction of the federal and state courts in the State of Florida with jurisdiction in any action or proceeding seeking to enforce or interpret this Agreement.

 

5.06. Service of Process.  Executive irrevocably consents to the service of any summons and complaint and any other process which may be served in any action or proceeding arising out of or related to this Agreement brought in the federal or state courts of Florida with jurisdiction by the mailing by certified or registered mail of copies of such process to Executive at his address as set forth on the signature page of this Agreement.

 

5.07. Venue.  Executive irrevocably waives any objection which he now or hereafter may have to the laying of venue of any action or proceeding arising out of or relating to this Agreement brought in the federal or state courts of Florida and any objection on the ground that any such action or proceeding in such courts has been brought in an inconvenient forum.

 

5.08. Agreement Binding.  The obligations of the parties under this Agreement will be binding on their respective heirs, executors, legal representatives, successors and assigns.  In the event of any change of control or acquisition of the Company by any other company or entity, such company or entity shall be deemed a successor or assign of the Company under the terms of this Agreement, and shall be required to assume or guaranty the obligations of the Company under this Agreement.  Such assumption or guaranty shall not affect or diminish the liability or obligations of the Company to Executive under this Agreement.

 

5.09. Counterparts, Section Headings.  This Agreement may be executed in any number of counterparts.  Each will be considered an original, but all will constitute one and the same instrument.  The section headings of this Agreement are for convenience of reference only and will not affect the construction or interpretation of any of its provisions.

 

5.010. Arbitration.  In the event that any disagreement or dispute whatsoever shall arise between the parties concerning this Agreement, such disagreement or dispute shall be submitted to the Judicial Arbitration and Mediation Services, Inc (“JAMS”) for resolution in a confidential private arbitration in accordance with the comprehensive rules and procedures of JAMS, including the internal appeal process provided for in Rule 34 of the JAMS rules with respect to any initial judgment rendered in an arbitration.  Any such arbitration proceeding shall take place in Orlando, Florida before a single arbitrator (rather than a panel of arbitrators). Nothing herein shall prevent the Company from seeking injunctive relief as provided for in Article 4 of this Agreement. Judgment upon the final award rendered by such arbitrator, after giving effect to the JAMS internal appeal process, may be entered in any court having jurisdiction thereof.  If JAMS is not in business or is no longer providing arbitration services, then the American Arbitration Association shall be substituted for JAMS for the purposes of the foregoing provisions.

 

  

6

  

 

5.011. Notice.  For the purposes of this Agreement, notices and all other communications provided for in the Agreement shall be in writing and shall be deemed to have been duly given when delivered or mailed by United States certified mail, return receipt requested, postage prepaid, addressed as follows:

 

	
If to the Executive:

 

R. Thomas Kidd

432 Valley Stream Drive

Orlando, Florida 32732

 

	
If to the Company:

 

Sputnik Enterprises, Inc.

37 North Orange Avenue

Suite 500

Orlando, Florida 32801

 

or to such other address as any party may have furnished to the others in writing in accordance herewith, except that notices of change of address shall be effective only upon receipt.

 

5.012. Employee Manuals and Handbooks.  Executive acknowledges that from time to time the Company or its affiliates may establish, maintain and distribute employee manuals or handbooks or personnel policy manuals, and officers or other representatives of the Company may make written or oral statements relating to personnel policies and procedures.  Such manuals, handbooks and statements are intended only for general guidance.  No policies, procedures or statements of any nature by or on behalf of the Company (whether written or oral, and whether or not contained in any employee manual or handbook, as the same may exist from time to time, or personnel policy manual), and no acts or practices of any nature, shall be construed to modify this Agreement or to create express or implied obligations of any nature to the Executive or to impose any such obligations on the Executive in conflict with or in any manner inconsistent with the provisions of this Agreement.

 

5.013. Insurance and Indemnity.  The Company shall, to the fullest extent permitted by law, indemnify the Executive.  The Company shall also provide the Executive with coverage as a named insured under a directors and officers liability insurance policy to be maintained for the Company’s directors and officers.  The Company shall continue to maintain directors and officers liability insurance for the benefit of Executive during the term of this Agreement and for at least three (3) years following the termination of Executive’s employment with the Company, provided that such insurance is available on commercially reasonable terms.  This obligation to provide insurance and indemnify the Executive shall survive expiration or termination of this Agreement with respect to proceedings or threatened proceedings based on acts or omissions of the Executive occurring during the Executive’s employment with the Company or with any affiliated company.  Such obligations shall be binding upon the Company’s successors and assigns and shall inure to the benefit of the Executive’s heirs and personal representatives.

 

EXECUTIVE AND COMPANY SIGNATORY ACKNOWLEDGE THAT THEY HAVE READ AND UNDERSTAND THE FOREGOING PROVISIONS AND THAT SUCH PROVISIONS ARE REASONABLE AND ENFORCEABLE.

 

  

7

  

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed this 23rd day of May 23, 2013.

 

	 EXECUTIVE  	Sputnik Enterprises, Inc.	 
	 	 	 	 	 
	By:  	/s/ R. Thomas Kidd  	 	
By: 

	/s/ Anthony Gebbia  	 
	 	R. Thomas Kidd  	 	Anthony Gebbia,	 
	 	 	 	COO	 

 

  

8

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