Document:

exhibit1014-consultingagreem.htm - Generated by SEC Publisher for SEC Filing

CONSULTING AGREEMENT

     THIS CONSULTING AGREEMENT, dated as of February 1, 2011 (this "Agreement"), is between Parallax Diagnostics, Ltd. a Delaware Corporation, (hereinafter "Company"), and Grant Park Global LLC, an Illinois limited liability company (hereinafter "Consultant" and along with Company, each a "Party" and together the "Parties").

     WHEREAS, Company is the premier provider of mobile, point-of-care molecular diagnostics, screening, monitoring, testing technologies and data management services; and

     WHEREAS, Company desires to retain the professional consulting services of Consultant on a non-exclusive basis to identify customers, business opportunities, partners and relationships, for the purpose of sales, marketing and distribution of "Company Products and Services" as defined herein, and Company desires to appoint Consultant as its non-exclusive representative for such purposes pursuant to the terms and conditions contained herein;

     NOW THEREFORE, in consideration of the mutual promises contained herein, it is agreed as follows:

	
I.      		
DEFINITIONS	
	 	
A.      		
Company’s Products and Services: As used in this Agreement, the term "Company’s Products and Services" shall mean any form of the Company’s products or services as described on Attachment A attached to this Agreement. Attachment A will be updated as additional products and services are developed by the Company.	
	 	
B.      		
Consultant Customer: As used in this Agreement, the term "Consultant Customer" shall mean one or more individuals, firms, entities or persons that Consultant introduces to Company for the purpose of purchasing, licensing, distribution, joint venture partnership or other commercial use of Company’s Products and Services. Consultant shall notify Company in writing, by electronic mail (email), or facsimile, of each proposed Consultant Customer that Consultant wishes to introduce to Company. Company shall have the right to reject proposed Consultant Customer(s) put forward by Consultant, but Company agrees that approval of proposed Consultant Customer(s) put forward by Consultant will not be unreasonably withheld. Each Consultant Customer that is mutually approved by both Consultant and Company shall be listed on Attachment B of this Agreement. Attachment B will be updated as additional Consultant Customers are approved.	
	 	
C.      		
Completed Sale Gross Revenue: As used in this Agreement, the term "Completed Sale Gross Revenue" shall be deemed to mean the Total Realized Contract Value, including renewal term value, of a commercial transaction entered into during the term of this Agreement by and between a Consultant Customer and Company related to Company’s Products and Services, in any form, including but not limited to, a direct purchase and/or under license agreement or JVE (as defined herein). For purposes of this definition, "Total Realized Contract Value" shall be deemed to mean the aggregate actual payments received on any given contract over the term of the contract and shall accrue as such payments are received by Company.	
	 	
D.      		
Confidential Data: As used in this Agreement, the term "Confidential Data" includes but is	
	 	
not      		
limited to confidential information regarding either Party’s work papers, concepts,	
	 	
formulas,      		
techniques, strategies, components, programs, reports, studies, memoranda,	
	 	
correspondence,      		
materials, manuals, records, data, technology, products, plans, research,	
	 	
service,      		
design information, procedures, methods, documentation, policies, pricing, billing,	
	 	
customer      		
lists and leads, and any other technical data, information and know-how which	

Initials _____ / _____ Page 1 of 9

 

	 	
relate to or are otherwise useful to either Party’s business and which either Party considers proprietary and desires to maintain confidential	
	
E.      		
Success Fee: A fee paid by Company to Consultant after the completion of a legal transaction between Company and Consultant Customer. The fee will be based off money paid to Company by Consultant Customer for either upfront payments made to Company or from product (or service) sales made to Company by Consultant Customer. The structure of the Success Fee is described in section V. below.	
	
F.      		
Joint Venture Entity ("JVE"): As used in this Agreement, the term "JVE" shall be deemed to mean a business entity formed by and between Company and Consultant Customer for the purpose of combining their respective assets, expertise, financial resources, skills, experience, and knowledge in the furtherance of a particular project or undertaking related to the Company's Products and Services.	

	
II.      		
APPOINTMENT OF INDEPENDENT REPRESENTATIVE	
	 	
A.      		
Consultant is an independent contractor (advisor/broker) in the performance of the Services, as defined herein, under this Agreement and shall determine the method, details and means of performing the Services. Consultant shall have no authority to enter into any binding agreements on behalf of Company or to take any other action on behalf of Company without Company’s prior written consent.	
	 	
B.      		
The Company hereby engages Consultant, to the fullest extent permissible under law, as provider of the Services. Consultant hereby accepts such appointment on the terms and subject to the conditions stated herein. Such appointment shall be effective as of the effective date of this Agreement.	
	
III.      		
OBLIGATIONS OF REPRESENTATIVE AND COMPANY	
	 	
A. Obligations of Consultant	
	 	
1.      		
During the term of this Agreement, Consultant shall provide Company the following services on a non-exclusive basis: (a) advise Company on attracting and retaining national and international customers of Company's Products & Services; and, (b) assist Company in development of a sales and marketing strategy for Consultant Customers related to Company Products and Services (collectively, the "Services").	
	 	
B. Obligations of Company	
	 	
1.      		
During the term of this Agreement, Company shall reasonably cooperate with Consultant and make available to Consultant such employees, information, materials, documentation; training and similar resources as reasonably required for Consultant to effectively provide the Services.	
	 	
2.      		
Company shall at all times supply to Consultant all the marketing materials, documentation, brochures and other publications of the Company related to Company Products and Services.	

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IV.      		
EXPENSES	
	 	
Company shall reimburse Consultant for pre-approved reasonable and ordinary expenses including travel, lodging, entertainment and other expenses related to networking to achieve target meetings with Consultant Customers. The Parties acknowledge and agree that all expenses over five hundred ($500.00) dollars shall be pre-approved in writing by Company prior to the Company assuming responsibility for reimbursement to Consultant.	
	
V.      		
COMPENSATION	
	 	
A.      		
Advisory Fee. For providing the Services, Company shall pay to Consultant, on a monthly basis, an advisory fee of five thousand dollars ($5,000) (the "Advisory Fee") for the first six months of this Agreement and seven thousand five hundred dollars ($7,500) per month thereafter. The Advisory Fee is due and payable on or before the 15th day of each month. In addition to the monthly fee, Company will provide Consultant 25,000 stock warrants at a price of $0.50 if this Agreement is executed prior to Company being	
	 	 	
traded      		
on the public market. If the Agreement is executed after the Company’s stock is	
	 	 	
publically traded then the strike price of the warrant will be equal to the price of the last trade on the day this agreement is executed. The Company shall issue an additional	
	 	 	
75,000      		
stock warrants when the total Completed Gross Sales Revenue exceeds five (5)	
	 	 	
million dollars. The strike price of these warrants will be equal to the price of the last trade on the date that the Completed Gross Sales Revenue exceeds five (5) million dollars.	
	 	
B.      		
Success Fees. As compensation for completed transactions with Consultant Customers, Company shall pay Consultant a Success Fee calculated as follows:	
	 	 	
a.      		
Company shall pay Consultant a fee equal to five percent (5%) of the aggregate gross proceeds of the first ten (10) million dollars of any upfront payments made by Consultant Customers to Company that are not payments for Company's Products and Services, including but not limited to License Fees or Joint Venture Payments received by Company from Consultant Customer.	
	 	 	 	
Additionally, Company shall pay Consultant a cash fee based on the "Lehman Formula" for the upfront fees that are over ten (10) million dollars.	
	 	 	 	
For the purpose of this Agreement, Lehman Formula shall be structured as follows: 5% of the first million dollars, 4% of the second million; 3% of the third million; 2% of the fourth million; and 1% of each million thereafter.	
	 	 	
b.      		
Company shall pay Consultant a fee based on a percent of Completed Gross Sale Revenue for each specific Consultant Customer. The fee to Consultant will be five (5%) percent of the Completed Gross Sale Revenue for the first five years and three (3%) percent of the Completed Gross Sale Revenue for the next three years.	
	 	 	
The Success Fees shall be due and payable within 45 days of Company receiving payments from Consultant Customers. All payments shall be made in U.S. currency and will reflect any currency variation. To the extent that Completed Gross Sales Revenues	
	 	 	
accrue      		
following the termination of this Agreement, for any reason, then the Company	
	 	 	
shall continue to have the obligation to pay Consultant a monthly Success Fee, as set forth in Section VII(C).	

Initials _____ / _____ Page 3 of 9

 

	
VI.      		
REPRESENTATIONS, WARRANTIES AND COVENANTS	
	 	
A.      		
Execution. The execution, delivery and performance of this Agreement, in the time and manner herein specified, will not conflict with, result in a breach of, constitute a material default under any existing agreement, indenture, or other instrument to which either Company or Consultant is a party or by which either Party may be bound or affected.	
	 	
B.      		
Independent Contractor. Consultant shall be an independent contractor, and not an agent or employee of Company. Consultant shall have no right or authority to enter into any agreements on behalf of Company.	
	 	
C.      		
Corporate Authority. Both Company and Consultant have full legal authority to enter into this Agreement and to perform the same in the time and manner contemplated.	
	 	
D.      		
Authorized Signatures. The individuals whose signatures appear below are authorized to sign this Agreement on behalf of their respective entities.	
	
VII.      		
TERM AND TERMINATION	
	 	
A.      		
This Agreement shall be effective upon its execution and shall remain in effect for a minimum period of three (3) months (the "Initial Period") and until such time as it is terminated as provided in this Section VII.	
	 	
B.      		
Either Party may terminate this Agreement at the end of the Initial Period by providing the other Party with a minimum of ten (10) days advance written notice of such election to terminate at the end of the Initial Period. After the Initial Period, either Party may terminate this Agreement by providing the other Party with a minimum of thirty (30) days advance written notice of such election to terminate.	
	 	
C.      		
Notwithstanding the foregoing, Company shall remain obligated and shall pay to Consultant the Success Fees following the termination of the Agreement, for any reason, related to any commercial transaction(s) entered into with Consultant Customers prior to the effective date of termination for the full duration or term of such commercial transaction(s). The Parties agree that this Section VII (C) shall survive the termination of this Agreement.	
	
VIII.      		
CONFIDENTIAL DATA	
	 	
A.      		
Except for its employees, agents and independent contractors, each Party shall not divulge to others, any Confidential Data obtained by a Party as a result of its engagement hereunder, unless authorized, in writing by the other Party.	
	 	
B.      		
Each Party agrees that it will not make use, either directly or indirectly, of any Confidential Data of the other Party for the benefit or purpose of any other person, firm, partnership, joint venture, association, corporation or other business organization, entity or enterprise, except with the express prior written authorization of the other Party.	
	 	
C.      		
The Parties agree that this Section VIII shall survive the termination of this Agreement.	

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IX.      		
OTHER MATERIAL TERMS AND CONDITIONS	
	 	
A.      		
Non-Circumvention. Company hereby covenants that it, and all of its affiliated companies, agents, employees, successors in interest or assigns, will not, during this Agreement’s term and during the term or duration of any commercial transaction entered into during the term of this Agreement between Company and Consultant Customer(s), engage in Non- Circumvention Conduct with Consultant Customers. "Non-Circumvention Conduct" means contacting, discussing or transacting business with Consultant Customers, without the prior knowledge and written consent of Consultant; provided, however, that it does not include contacting, discussing or transacting business with Consultant Customers on any matter or potential commercial transaction that is not directly related to any commercial transaction entered into during the term of this Agreement.	
	 	
B.      		
Audit Rights. Consultant shall have the right to access the books and records of Company and its affiliates and to have an independent certified public accountant selected and retained by Consultant (and at Consultant’s expense) to inspect and examine such books of Company during regular business hours for the purpose of verifying the accuracy of the Completed Sales Gross Revenues and related compensation referred to in Section V and VII(C). Such access shall be conducted after thirty (30) days' prior written notice to Company and during ordinary business hours, will be conducted in a manner that is not disruptive to Company's operations, and shall not be more frequent than once per annum. If during the course of an audit, the independent certified public accountant's report shows any underpayment by Company, (a) Company shall pay to Consultant within thirty (30) days after Company's receipt of such report, the amount of such underpayment, (b) if such underpayment exceeds five percent (5%) of the total amount owed for the period then being audited, the reasonable fees and expenses of any independent accountant performing the audit on behalf of	
	 	
Consultant.      		
Any audit or inspection conducted under this Agreement by Consultant or its	
	 	
agents      		
or contractors will be subject to the confidentiality provisions of this Agreement, and	
	 	
Consultant      		
will be responsible for compliance with such confidentiality provisions by such	
	 	
agents      		
or contractors.	
	 	
If      		
any dispute arises under this Section IX.B. between the Parties relating to fee payments to	
	 	
Consultant,      		
and the Parties cannot resolve such dispute within thirty (30) days of a written	
	 	
request      		
by either Party to the other Party, the Parties shall hold a meeting, attended by the	
	 	
Chief      		
Executive Officer or President of each party (or their respective designees), to attempt	
	 	
in      		
good faith to negotiate a resolution of the dispute. If, within sixty (60) days after such	
	 	
meeting      		
request, the Parties have not succeeded in negotiating a resolution of the dispute,	
	 	
either      		
Party may pursue any other available remedy, including, upon prior written notice to	
	 	
the      		
other Party, instituting legal action.	
	 	
C.      		
Indemnification. Each Party indemnifies and holds harmless the other Party from and against	
	 	
any      		
and all liabilities, losses, damages, claims or causes of action, and any connected	
	 	
expenses      		
(including reasonable attorneys’ fees) that are caused, directly or indirectly, by or as	
	 	
a      		
result of the performance by such Party or its employees or agents, provided that nothing	
	 	
herein      		
shall be construed to require such Party to indemnify the other Party from or against	
	 	
the      		
negligent acts of the other Party or its employees or agents.	
	 	
D.      		
Additional Instruments. Each Party shall, from time to time, at the request of the other	
	 	
Party,      		
execute, acknowledge and deliver to the other Party any and all further instruments that	
	 	
may      		
be reasonably required to give full effect and force to the provisions of this Agreement.	
	 	
E.      		
Entire Agreement. Each Party hereby covenants that this Agreement is intended to, and does	
	 	
contain      		
and embody herein, all of the understandings and agreements, both written and oral,	
	 	
of      		
the Parties with respect to the subject matter of this Agreement, and that there exist no oral	

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agreements or understandings, expressed or implied, whereby the absolute, final and unconditional character and nature of this Agreement shall be in any way invalidated, empowered or affected. There are no representations, warranties or covenants other than those set forth herein.	
	
F.      		
Laws of the State of Illinois. This Agreement shall be deemed to made in, governed by and interpreted under and construed in all respects in accordance with the laws of the State of Illinois. In the event of controversy arising out the interpretation, construction, performance, or breach of this Agreement, the Parties hereby agree and consent to the jurisdiction and venue of the District or County Court of Cook County, Illinois.	
	
G.      		
Successors and Assigns. The benefits of this Agreement shall inure to the respective successors and assigns of the Parties hereto and their successors and assigns and representatives, and the obligations and liabilities assumed in this Agreement by the Parties hereto shall be binding upon their respective successors and assigns. The Parties acknowledge and agree that neither Party may assign its rights under this Agreement without the express written consent of the other Party, which will not be unreasonably withheld.	
	
H.      		
Originals. This Agreement may be executed in any number of counterparts, each of which so executed shall be deemed an original and constitute one and the same Agreement. Facsimile copies with signatures shall be given the same legal effect as an original.	
	
I.      		
Addresses of Parties. Each Party shall at all times keep the other informed of its principal place of business if different from that stated in the signature block of this Agreement, and shall promptly notify the other Party of any change, giving the address of the new principal place of business.	
	
J.      		
Modification or Waiver. A modification or waiver of any of the provisions of this Agreement shall be effective only if made in writing and executed by each of the Parties. The failure of any Party to insist upon strict performance of any of the provisions of this Agreement shall not be construed as a waiver of any subsequent default of the same or similar	
	
nature      		
or of any other nature.	
	
K.      		
Attorney’s Fees. If any arbitration, litigation, action, suit or other proceeding is instituted to	
	
remedy,      		
prevent or obtain relief from a breach of this Agreement, in relation to a breach of	
	
this      		
Agreement or pertaining to a declaration of rights under this Agreement, the prevailing	
	
Party      		
will recover all such Party’s attorneys’ fees incurred in each and every such action, suit	
	
or      		
other proceeding, including any and all appeals or petitions therefrom. As used in this	
	
Agreement,      		
attorneys’ fees will be deemed to be the full and actual cost of any legal services	
	
actually      		
performed in connection with the matters involved, including those related to any	
	
appeal      		
or the enforcement of any judgment calculated on the basis of the usual fee charged by	
	
attorneys      		
performing such services.	
	
L.      		
Notices. All notices that are required to be or may be sent pursuant to the provisions of this	
	
Agreement      		
shall be sent by electronic mail (email), facsimile, certified mail with return	
	
receipt      		
requested, or by overnight package delivery service to each Party at the address	
	
appearing      		
below, and shall count from the date of mailing or the validated air bill.	
	
M.      		
Survival. All representations, warranties and covenants set forth in Section VI shall survive	
	
the      		
expiration of this Agreement.	

Initials _____ / _____ Page 6 of 9

 

IN WITNESS WHEREOF, the Parties have caused this Consulting Agreement to be executed by their duly authorized officers as of the day and year first above written.

		
	Parallax Diagnostics, Ltd

1327 Ocean Ave Suite B Santa Monica, CA 90401 Facsimile:

By:

J. Michael Redmond Chief Executive Officer

	Grant Park Global LLC

221 North LaSalle St, Suite 2200 Chicago, IL 60601 Facsimile:

By:

Michael Axelrod Managing Member

 

Initials _____ / _____ Page 7 of 9

 

			
	
Attachment A	
 
	
 
	
 
	
FDA 510K Approved Tests and 510k number	
 
	
 
	
o	
Rubella	
K892051
	
o	
CMV	
K884842
	
o	
Rotavirus	
K884017
	
o	
Infectious Mononucleosis	
K890041
	
o	
Target Strep A	
K880460
	
o	
Target Aso Test	
K910073
	
o	
Target Reader	
K885254
	
 
	
 
	
Products in Development:	
 
	
CD4 Test	
 

 

Initials _____ / _____ Page 8 of 9

 

Attachment B

Consultant Customer:

Initials _____ / _____ Page 9 of 9exhibit1015-stockoptionagree.htm - Generated by SEC Publisher for SEC Filing

 

STOCK OPTION AGREEMENT

This Stock Option Agreement (the “Agreement”) is made and entered into by and between Parallax Diagnostics, Inc., (the “Company”), and Grant Park Global, LLC an Illinois Limited Liability Company (the “Participant”), as of the effective date of this Agreement specified on Schedule I hereof (the “Date of Grant”), pursuant to the Parallax Diagnostics Inc. 2010 Stock Option Plan adopted effective October 2010 (as the same may have been or hereafter be amended from time to time, the “Plan”).  Terms used herein with their initial letters capitalized that are defined in the Plan shall have the meaning given them in the Plan unless otherwise defined herein or the context hereof otherwise requires.

RECITALS:

A.                The Company has adopted the Plan to strengthen the ability of the Company to encourage ownership of the Company by certain employees of the Company and its Subsidiaries, to provide additional incentive for them to remain in the employ of the Company and its Subsidiaries, and to promote the growth and success of the Company and its Subsidiaries.

B.                 The Committee that administers the Plan believes that the granting of the stock option herein described to Participant is consistent with the stated purposes for which the Plan was adopted.

NOW, THEREFORE, in consideration of the mutual covenants and conditions hereinafter set forth and for other good and valuable consideration, the Company and Participant agree as follows:

AGREEMENTS:

1.                  Plan Controls.  The terms of this Agreement are governed by the terms of the Plan.  Participant hereby acknowledges receipt of a copy of the Plan, as amended through the date hereof.  The Company hereby agrees to furnish to Participant a copy of the Plan, as amended through the date of request therefore, without charge, on request to the Company at the address to which notices are to be sent to the Company.  In the case of any inconsistency between the terms of this Agreement and the terms of the Plan, the terms of the Plan shall govern.

2.                  Grant of Option.  The Company hereby grants to Participant the right and option (the “Option”) to purchase an aggregate number of shares set forth on Schedule I hereof beside the caption “Number of Optioned Shares” (such number being subject to adjustment as provided in Section 9.6 of the Plan) of the Common Stock of the Company (the “Optioned Shares”) on the terms and conditions herein set forth.  If designated on Schedule I hereof as an Incentive Stock Option, this Option is intended to qualify as an Incentive Stock Option as defined in Section 422 of the Code, and this Agreement shall be interpreted accordingly.  By execution of this Agreement, the Participant accepts the grant of the Option.

3.                  Exercise Price.  The price at which Participant shall be entitled to purchase the Optioned Shares shall be the dollar amount per share set forth on Schedule I hereof beside the caption “Exercise Price” (such exercise price being subject to adjustment as provided in Section 

9.6 of the Plan).  The exercise price shall be paid with (a) cash (including check, bank draft, or money order); (b) if the use of shares of Common Stock is permitted according to Schedule I hereof or otherwise permitted by the Committee in writing, shares of Common Stock owned by Participant; or (c) any combination of the foregoing.

{00188620. }                                  B-1

 

 

4.                  Option Period.  The Option hereby granted shall be and remain in force and effect during the “Option Period.” The Option Period begins on the Date of Grant and terminates on the date that is ten years after the Date of Grant (or, if a different date is shown on Schedule I hereof beside the caption “Termination Date”, such date); subject, however to earlier termination as provided by the provisions of Article VII of the Plan and this Agreement (it being understood that this Agreement contains no express provision that would provide any of the greater or lesser rights that Article VII of the Plan permits to be provided in an Option Agreement except to the extent any variation therefrom is specifically set forth in the language beside the caption “Greater or Lesser Article VII Rights” on Schedule I hereof) (the date of any such termination being called herein the “Expiration Date”).

5.                  Vesting Schedule.  The Option may be exercised, in whole or in part, from and after the following dates and prior to the Expiration Date.  Except only as specifically provided elsewhere herein or in the Plan, this Option shall be exercisable in the following cumulative installments:

Up to 25,000 of the Optioned Shares at any time after the first ninety (90) days of the Date of Grant;

6.                  Nontransferability of Options.  Transfers of the Option are restricted as set forth in the Plan except to the extent, if any, transfers are expressly permitted in the language appearing beside the caption “Expanded Rights to Transfer Option” on Schedule I hereof.  The Participant agrees to comply with such restrictions.

7.                  Nontransferability of, and Right to Acquire, Shares.  Except to the extent, if any, the language appearing beside the caption “Modifications to Transfer/Repurchase Provisions” on Schedule I hereof modifies the provisions thereof, the Stock Transfer/Repurchase Provisions, which are attached to the Plan as Exhibit A, govern transfers of the Shares acquired upon exercise of the Option and grant certain Persons the right to buy such Shares under certain circumstances.  The Participant agrees to comply with the Stock Transfer/Repurchase Provisions (if and as modified).

8.                  Information Confidential.  As partial consideration for the granting of the Option, the Participant agrees with the Company to keep confidential all information and knowledge that the Participant has relating to the manner and amount of the Participant’s participation in the Plan; provided, however, that such information may be disclosed as required by law and may be given in confidence to the Participant’s spouse, the Participant’s tax and financial advisors, or financial institutions to the extent that such information is necessary to secure a loan.

9.                  Administration.  This Agreement is subject to the terms and conditions of the Plan.  The Plan will be administered by the Committee in accordance with its terms.  The Committee has sole and complete discretion with respect to all matters reserved to it by the Plan 

and decisions of the Committee with respect to the Plan and to this Agreement shall be final and binding upon Participant and the Company.  In the event of any conflict between the terms and conditions of this Agreement and the Plan, the provisions of the Plan shall control.

{00188620. }                                  B-2

 

 

10.              Continuation of Employment.  This Agreement shall not be construed to confer upon Participant any right to continue in the employ of the Company or any of its Subsidiaries and shall not limit the right of the Company or any of its Subsidiaries, in its sole discretion, to terminate the employment of Participant at any time.

11.              Notice.  All notices, requests, demands, and other communications hereunder shall be in writing and shall be personally delivered, delivered by facsimile or courier service, or mailed, certified with first class postage prepaid to the address specified by the person who is to receive the same.

Each such notice, request, demand, or other communication hereunder shall be deemed to have been given (whether actually received or not) on the date of actual delivery thereof, if personally delivered or delivered by facsimile transmission (if receipt is confirmed at the time of such transmission by telephone or facsimile-machine-generated confirmation), or on the third day following the date of mailing, if mailed in accordance with this Paragraph, or on the day specified for delivery to the courier service (if such day is one on which the courier service will give normal assurances that such specified delivery will be made).  Any notice, request, demand, or other communication given otherwise than in accordance with this Paragraph shall be deemed to have been given on the date actually received.  Either party to this Agreement may change its address for purposes of this Paragraph by giving written notice of such change to the other party in the manner herein above provided.  Any person entitled to any notice, request, demand, or other communication hereunder may waive the notice, request, demand, or other communication.  Until changed in accordance herewith, the Company and Participant specify their respective addresses as those set forth below their signatures at the end of this Agreement.

12.              Paragraph Headings.  The Paragraph headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.

13.              Governing Law and Venue.  THIS AGREEMENT SHALL AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEVADA WITHOUT GIVING EFFECT TO ANY CHOICE OR CONFLICT OF LAW PROVISION OR RULE (WHETHER OF THE STATE OF NEVADA OR ANY OTHER JURISDICTION) THAT WOULD CAUSE THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE  OF NEVADA. EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE PERSONAL JURISDICTION OF THE COURTS LOCATED IN THE STATE OF NEVADA AND AGREES THAT ANY LITIGATION BETWEEN THE PARTIES WILL BE FILED IN COURTS LOCATED IN RENO, NEVADA.

14.              Arbitration.  By execution hereof, the parties hereto expressly agree that upon the request of any party, whether made before or after the institution of any legal proceeding, any action, dispute, claim or controversy of any kind, whether in contract or in tort, statutory or common law, legal or equitable, arising between the parties in any way arising out of any of the 

provisions contained in this Agreement shall be resolved by binding arbitration administered by the American Arbitration Association (the “AAA”) and in Reno, Nevada.  Such arbitration shall be conducted in accordance with the Commercial Arbitration Rules of the AAA and, to the maximum extent applicable, the Federal Arbitration Act (Title 9 of the United States Code) except as otherwise specified herein.  Judgment upon the award rendered by the arbitrator may be entered in any court having competent jurisdiction.  The arbitrator shall resolve all disputes in accordance with the applicable substantive law.  A single arbitrator shall be chosen and shall decide the dispute, unless the amount sought in the dispute exceeds $100,000, in which case a panel of three arbitrators shall decide the dispute.  In all arbitration proceedings in which the amount of any award exceeds $100,000, in the aggregate, the arbitrator(s) shall make specific, written findings of fact and conclusions of law.  In all arbitration proceedings in which the amount of any award exceeds $100,000, in the aggregate, the parties shall have, in addition to the limited statutory right to seek a vacation or modification of an award pursuant to applicable law, the right to vacation or modification of any award that is based, in whole or in part, on an incorrect or erroneous ruling of law by appeal to an appropriate court having jurisdiction; provided, however, that any such application for a vacation or modification of such an award based on an incorrect ruling of law must be filed in a court having jurisdiction over the dispute within 15 days from the date the award is rendered.  The findings of fact of the arbitrator(s) shall be binding on all parties and shall not be subject to further review except as otherwise allowed by applicable law.  No provision of this Agreement nor the exercise of any rights hereunder shall limit the right of any party, and any party shall have the right during any dispute, to seek, use, and employ ancillary or preliminary remedies, such as injunctive relief (including, without limitation, specific performance), from a court having jurisdiction before, during, or after the pendency of any arbitration.  The institution and maintenance of any action for judicial relief or pursuit of provisional or ancillary remedies shall not constitute a waiver of the right of any party to submit any dispute to arbitration nor render inapplicable the compulsory arbitration provisions hereof.

{00188620. }                                  B-3

 

 

15.              Attorney’s Fees.  If any action is brought to enforce or interpret the terms of this Agreement (including through arbitration), the prevailing party shall be entitled to reasonable attorneys’ fees, costs, and necessary disbursements in addition to any other relief to which such party may be entitled.

16.              Counterparts.  This Agreement may be executed in any number of counterparts and shall be effective when each party hereto has executed at least one counterpart, with the same effect as if all signing parties had signed the same document.  All counterparts will be construed together and evidence only one agreement, which, notwithstanding the actual date of execution of any counterpart, shall be deemed to be dated the day and year first written above.  In making proof of this Agreement, it shall not be necessary to account for a counterpart executed by any party other than the party against whom enforcement is sought or to account for more than one counterpart executed by the party against whom enforcement is sought.

17.              Execution by Facsimile.  The manual signature of any party hereto that is transmitted to any other party by facsimile shall be deemed for all purposes to be an original signature.

[THIS SPACE LEFT BLANK INTENTIONALLY]

{00188620. }                                  B-4

 

 

Executed on the date or dates indicated below, to be effective as of February 1, 2011.

 

                                                                        

 

By:                                                                  

Name:                                                              

Title:                                                                

 

Date: February 1, 2011

 

Address:                                                          

                                                                        

 

Participant:

                                                                        

Name:  Grant Park Global, LLC

 

Date: February 1, 2011

 

Address:  221 North LaSalle St

                Suite 2200

                Chicago, Illinois  60601

 

     

{00188620. }                                  B-5

 

 

SCHEDULE I

 

 

	
DATE OF GRANT:

	
February 1, 2011

	
TYPE OF OPTION:

	
Incentive Stock Option           X

	
 

	
Nonqualified Stock Option                

	
NUMBER OF OPTIONED SHARES:

	
25,000

	
EXERCISE PRICE:

	
$ .50 

	
TERMINATION DATE:

	
Fifth Anniversary of Date of Grant (Maximum term of 10 years; 5 years in the case of 10% shareholders)

	
PERMISSION TO PAY WITH SHARES:

	
             Granted          Denied            

	
EXPANDED RIGHTS TO TRANSFER OPTION:

	
             Granted          Denied            

	
GREATER OR LESSER ARTICLE VII RIGHTS:

	
None

 

 

{00188620. }                                   I-1

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