Document:

ex109.htm

EXHIBIT 10.9

 

Execution Copy

 

AMENDED AND RESTATED MARKETING AGREEMENT

 

THIS AMENDED AND RESTATED MARKETING AGREEMENT (“Agreement”) is entered into as of this 12th day of August, 2011 (the “Effective Date”), by and between HZO, INC., a Delaware Corporation (“Company”) and ZAGG INCORPORATED, a Nevada corporation, (“ZAGG”), separately a “Party” and jointly the “Parties”. This Agreement amends and restates in its entirety that certain Exclusive Marketing & Distribution Agreement between Company and ZAGG dated September 25, 2009.

 

RECITALS:

 

A. ZAGG is in the business of, among other things, providing marketing, promotional, and public relations services (the “Marketing Services”) for protective products and services for consumer mobile electronics devices sold directly to consumers (the “Defined  Market” as further described in Exhibit A herein). The Defined Market excludes the provision of protective products and services for consumer mobile electronics devices sold to manufacturers of such devices.

 

B. Company is engaged in the business of creating and marketing hydrophobic coatings for electronic devices to protect such devices against water and moisture damage, including its WaterBlockTM surface treatment technology (as the same may be modified or updated from time to time, (the “Technology”)).

 

C. Company desires to engage ZAGG to provide the Marketing Services to Company in the Defined Market, , as such may be amended by ZAGG and Company from time to time, upon the terms and subject to the conditions contained in this Agreement.

 

D. ZAGG desires to provide the Marketing Services to Company in the Defined Market, subject to the terms and conditions of this Agreement.

 

AGREEMENT:

 

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

 

1.APPOINTMENT. The Parties agree that ZAGG has developed significant brand

equity, contacts and customer relationships through sales of ZAGG products in the Defined Market, many of such contacts are prospective customers of the Company. ZAGG desires to refer Company and the Technology to its contacts and otherwise assist the Company secure business from ZAGG’s contacts. Subject to the terms and conditions set forth in this Agreement, Company hereby appoints ZAGG, on a non-exclusive-basis to: (a) perform Marketing Services for the Technology to potential customers and to refer customers within the Defined Market (each a “Customer”); and (b) refer Customers outside the Defined Market to Company (the

	
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rendering of services described in (a) and the rendering of services described in (b), collectively the “Appointment”). The Appointment entitles ZAGG to market and promote the Technology and Company products in the Defined Market, but ZAGG shall have no right to purchase, sell, distribute or license the Technology or any Company products under this Agreement.

 

2. CONSIDERATION. In consideration of ZAGG’s agreement to accept the Appointment, Company hereby agrees to pay ZAGG as follows:

 

2.1During the three (3) years following the Effective Date (the “Royalty Term”), a royalty (the “Royalty”) in the amount of five percent (5.0%) of Company’s net income calculated in accordance with U.S. GAAP, in accordance with Company’s standard accounting policies. The Royalty shall be due and payable to ZAGG within thirty (30) days after the end of each calendar quarter during the Royalty Term; and

 

2.2691,000 shares of Company’s Series A Preferred Stock, to be issued to ZAGG on the Effective Date.

 

3. RIGHT OF FIRST OFFER OF APPOINTMENT. In the event that ZAGG identifies any opportunities for the Technology outside the Defined Market (each a “Proposed Market Segment Opportunity”), then ZAGG shall inform Company promptly of the existence of such Proposed Market Segment Opportunity. In addition, ZAGG may, by a written proposal including terms, conditions and pricing and budget, notify Company that ZAGG would be willing to pursue marketing and promotions of the Proposed Market Segment Opportunity (the “ZAGG Proposal”). ZAGG and Company shall negotiate the ZAGG Proposal in good faith and in a commercially reasonable manner. If Company accepts the ZAGG Proposal, the Proposed Market Segment Opportunity shall be added as an exhibit to this Agreement. In the event that Company rejects the ZAGG Proposal, then Company may market and promote the Technology for any application in or with the Proposed Market Segment Opportunity through its own direct sales organization or through third parties.

 

4. ADDITIONAL SERVICES. The Parties agree that in certain circumstances Company may desire to engage ZAGG to perform additional services, either beyond the Marketing Services or outside the Defined Market (“Additional Services”). In the event that Company desires to engage ZAGG to perform such Additional Services, Company shall make a proposal to ZAGG for the engagement. If the proposal is agreeable to ZAGG, then the terms under which the Additional Services shall be rendered shall be added as an exhibit to this Agreement.

 

5. SUPPLEMENTAL BUDGET. Any marketing budget established on a per project basis supporting a Proposed Market Segment Opportunity or Additional Services which establishes terms different in any way than the terms of this Agreement will be negotiated between the Parties and attached as an exhibit to the Proposed Market Segment Opportunity or Additional Services proposal (each a “Supplemental Budget”). For the avoidance of doubt, a Supplemental Budget shall not apply in the ordinary course of the provision by ZAGG of the Marketing Services in the Defined Market.

 

6. CONFLICT OF INTEREST. ZAGG warrants to Company that ZAGG does not currently distribute, sell, market or promote any products, services or technologies that directly

	
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compete with the Technology (“Competing Technology”) within the Defined Market. Further, ZAGG warrants that it shall not distribute, market, sell, or promote any Competing Technology within the Defined Market during the Term. Except as set forth in the previous sentence, each Party shall have the unrestricted right to develop new or competing products, including products under development or on either Parties’ current or future product roadmap.

 

7. CHANGES IN THE TECHNOLOGY. ZAGG shall have the right to market and promote in the Defined Market updated changes or modifications to the Technology and Company shall notify ZAGG in writing of any such modifications, updates or discontinuations of the Technology that may affect the Marketing Services to be rendered ZAGG.

 

8. OBLIGATIONS OF ZAGG

 

8.1General. ZAGG will use commercially reasonable efforts to refer, market and promote the Technology to Customers and other potential users of the Technology for applications within the Defined Market and to refer such Customers to Company in accordance with the terms and conditions of this Agreement (the “Promotion Obligations”). Without limiting the generality of the foregoing, the Promotion Obligations shall include the following:

 

8.1.1 Customer Relations. ZAGG shall be governed in all dealings with members of the public by high standards of honesty, integrity and fair dealing, and shall do nothing which would tend to discredit, dishonor, reflect adversely upon or in any manner injure the reputation of Company or any of its officers, partners, directors, managers, stockholders, affiliates or representatives (the “Related Parties”) or the Technology.

 

8.1.2 Compliance with Laws, Procedures and Good Business Practices. ZAGG shall at all times conduct its business, and perform its obligations under this Agreement, in compliance with all applicable laws and regulations of the international, federal, state and municipal governments, including without limitation the CAN-SPAM Act of 2003, and will not knowingly make any false or misleading representations to Customers or others regarding Company or the Technology. Without limiting the generality of the foregoing, ZAGG shall be responsible for compliance with all applicable laws related to marketing, sales, and distribution of the Technology or products utilizing the Technology, noncompliance with which would have a material adverse effect upon Company. ZAGG further agrees that ZAGG and its Related Parties will comply with any reasonable standards or procedures established by Company for the referral of Customers.

 

8.1.3 ZAGG Expenses. Other than provisions detailed in any Supplemental Budgets approved by Company, ZAGG shall pay all costs and expenses incurred by it in connection with the performance of its obligations under this Agreement

 

8.1.4 Advising of Changes. ZAGG will promptly advise Company of any significant political, regulatory, financial, legislative, industrial or other events in the Defined Market that it learns of that, in the opinion of ZAGG, could affect the mutual business interests of ZAGG and Company, whether harmful or beneficial.

 

8.1.5 Book and Records. During the Term, as defined below, and for a

	
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period of one (1) year after the expiration or termination of this Agreement, ZAGG will maintain and make available to Company and its representatives, upon written request, books, records, and accounts relating to the business of ZAGG with respect to the Marketing Services and the Customers. On a basis no more frequent than one (1) time per calendar year, Company may, at its own expense, conduct a financial audit of sales and financial records relating to the Technology after fifteen (15) days written notice to ZAGG.

 

8.1.6 No Modification or Reverse Engineering. ZAGG, its employees, agents, subcontractors, and representatives will not modify, reverse engineer or affirmatively attempt to engineer or work around, the Technology. Notwithstanding the foregoing, ZAGG hereby expressly agrees and acknowledges that in the event ZAGG breaches this Section 8.1.6, Company shall own, and ZAGG shall and hereby does assign, all intellectual property rights relating to the results of any such breach, including, but not limited to, all rights in patents, trademarks, copyrights and trade secrets.

 

9.LICENSE GRANTS.

 

9.1License for Marketing and Promotional Purposes. Company hereby grantsto ZAGG a non-exclusive right and license (the “License”) within the Defined Market to use the trade names, logos, service marks adopted by Company in connection with the Technology (“Company Marks”) for the purposes of performance of its Marketing Services in accordance with the terms of this Section; provided, however, that ZAGG shall retain exclusive ownership rights in and to the ZAGG Materials (as defined below) including, without limitation, all copyrights, trademarks, trade dress and other proprietary designations and legends as may be placed upon the Technology by ZAGG.

 

9.2Use of Company Marks. During the Term (as defined below), ZAGG willhave the right to indicate to the public that it is an authorized marketing licensee of the Technology and agent of Company. ZAGG may advertise (within the Defined Market) the Technology using Company Marks in connection with the packaging, labeling, marketing, promotion, sale and distribution of any product that includes the Technology. For the avoidance of doubt, ZAGG may use Company Marks in connection with internet advertising or marketing materials (“Online Materials”) only to the extent such Online Materials are limited in scope to targeting customers, prospects or potential customers that are within the Defined Market. ZAGG may not alter or remove any Company Marks. At the termination or expiration of this Agreement, ZAGG will discontinue using or displaying Company Marks on any packaging, labeling, or any marketing materials.

 

9.3Use of ZAGG Marks. During the Term, with prior written authorization ofZAGG, Company may advertise the promotion and sales of the Technology with the ZAGG or stylized “Z” mark (the “ZAGG Marks”) indicating a ZAGG trademark for packaging, labeling, marketing and promotion of any agreed upon product or service not otherwise exclusively licensed to ZAGG.

	
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10.OWNERSHIP.

 

10.1 Company Ownership. ZAGG acknowledges and agrees that Company and its licensors are, and shall remain, the sole and exclusive owners of all right, title and interest in and to Company Marks and the Technology (collectively, “Company Property”). Except as expressly provided herein, no rights in or to Company Property, including any use thereof, shall be transferred to ZAGG and ZAGG specifically disclaims any ownership right to any Company Property. Any use of Company Property by ZAGG, as permitted herein, shall inure to the benefit of Company. To the extent any Company Mark is incorporated in any materials developed for, by or on behalf of ZAGG (“ZAGG Materials”), in accordance with the terms of this Agreement, Company hereby grants to ZAGG a worldwide fully paid-up, sublicensable license to use, publish, reproduce, distribute, and prepare derivative works based upon such ZAGG Materials. ZAGG shall cease the use of Company Property, or any portion thereof, upon the expiration or termination of this Agreement. Without limiting the generality of the foregoing, in the event ZAGG conceives, develops or reduces to practice any feature, enhancement, novel combination or use, or modification of the Technology (each a “Derivative Work”), ZAGG hereby expressly agrees and acknowledges that, as between Company and ZAGG: (a) Company shall own, and ZAGG shall and hereby does assign, all intellectual property rights relating to such Derivative Works, including, but not limited to, all rights in patents, trademarks, copyrights and trade secrets; and (b) such Derivative Work shall be deemed to be included within the definition of Company Property and may, at Company’s sole discretion, be licensed to ZAGG pursuant to this Agreement. During the Term (as defined below) and after its expiration or termination, ZAGG will (i) neither challenge nor assist others in challenging any Company Marks and (ii) not attempt to register any trademarks, service marks, or trade names confusingly similar to any Company Marks.

 

10.2 Infringements. ZAGG will notify Company promptly in writing if it becomes aware of any infringement of any Company Property. Company will have the sole right to take action regarding any alleged infringement of any Company Property or other acts of unfair competition, and Company will be entitled to all damages related thereto. ZAGG will reasonably cooperate with Company in any such action. Notwithstanding the foregoing, if ZAGG notifies Company of any infringement of any Company Property and Company fails to take action regarding such infringement within sixty (60) days after being notified in writing by ZAGG, then ZAGG will have the right to take action in such regard so long as ZAGG receives the prior written approval of Company.

 

10.3 ZAGG Ownership. Notwithstanding anything to the contrary contained herein, Company acknowledges and agrees that ZAGG and its licensors are, and shall remain, the sole and exclusive owners of all right, title and interest in and to the ZAGG Marks. Except as expressly provided herein, no rights in or to the ZAGG Marks, including any use thereof, shall be transferred to Company and Company specifically disclaims any ownership right to any ZAGG Marks. Any use of the ZAGG Mark by Company, as permitted herein, shall inure to the benefit of ZAGG. To the extent any ZAGG Mark is incorporated in any materials developed for, by or on behalf of Company pursuant to Section 9.3, ZAGG hereby grants to Company a worldwide fully paid-up, sublicensable license to use, publish, reproduce, distribute, and prepare derivative works based upon such materials. Company shall cease the use of the ZAGG Marks upon the expiration or termination of this Agreement. During the Term and after its expiration or

	
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termination, Company will (a) neither challenge nor assist others in challenging any ZAGG Marks and (b) not attempt to register any trademarks, service marks, or trade names confusingly similar to any ZAGG Marks.

 

11. NOT USED.

 

12. ADVERTISING MATERIALS. Company agrees to furnish ZAGG with relevant Company sales, online and promotional literature which Company in the normal course of business develops with respect to the Technology to assist ZAGG in creating and publishing, at ZAGG’s sole cost and expense, the ZAGG Materials.

 

13. CONFIDENTIALITY. The Parties recognize and agree that in connection with the relationships described in this Agreement, each Party and its employees may have access to highly sensitive, confidential business, financial, and other proprietary information of the other Party which, if used without the other Party’s consent, would cause severe and irreparable harm to such other Party, including, without limitation: (1) know-how, trade secrets, formulas, programs, processes, techniques, methodologies, inventions and research; (2) business information, including, but not limited to, strategies, projections, markets, sales, profits, costs, customer lists and business plans; (3) plans for future development; and (4) other information of a similar sensitive nature and not generally known by third parties (“Confidential Information”). Consequently, each Party, for itself and its employees, agrees to keep all such Confidential Information confidential; to not use the Confidential Information for any purpose other than as permitted under this Agreement; and not to disclose such Confidential Information to any third Party without the prior written consent of the other Party.

 

14. WARRANTIES; DISCLAIMERS.

 

14.1 Parties Authority to Enter Agreement. Each Party represents and warrants that it has the authority to enter into this Agreement and that such Party does not have any knowledge of the existence of any other contract, agreements, or limitations which would prevent such Party from carrying out its responsibilities under this Agreement.

 

14.2 ZAGG’s Warranties. ZAGG represents and warrants that: (i) it will perform its obligations under this Agreement in conformity with industry standards; (ii) it has sufficient technical and professional expertise to enable it to perform its obligations under this Agreement, (iii) it will comply with all laws, rules and regulations applicable to its business and its performance of its duties hereunder, non-compliance with which will have a material adverse effect upon Company; and (iv) it will not knowingly violate or infringe any third party’s patent, copyright, trademark, trade secret or other intellectual property or other proprietary rights in performing this Agreement.

 

14.3 Company’s Warranties. Company represents and warrants that: (i) it will perform its obligations under this Agreement in conformity with industry standards; (ii) it has or will retain sufficient technical and professional expertise to enable it to perform its obligations under this Agreement, (iii) it will comply with all laws, rules and regulations applicable to its business and its performance of its duties hereunder, non-compliance with which will have a material adverse effect upon ZAGG; and (iv) it will not knowingly violate or infringe any third

	
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party’s patent, copyright, trademark, trade secret or other intellectual property or other proprietary rights in performing this Agreement.

 

14.4 EXCEPT AS EXPRESSLY SET FORTH HEREIN, NEITHER PARTY MAKES ANY WARRANTY TO THE OTHER PARTY WITH RESPECT TO THIS AGREEMENT OR THE MARKETING SERVICES, COMPANY PROPERTY OR TECHNOLOGY, WHETHER EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT. NO REPRESENTATION OR AFFIRMATION OF FACT, INCLUDING BUT NOT LIMITED TO STATEMENTS REGARDING SUITABILITY FOR USE OR PERFORMANCE OF THE SERVICES, SHALL BE DEEMED TO BE A WARRANTY BY COMPANY OR ITS AFFILIATES FOR ANY PURPOSE OR GIVE RISE TO ANY LIABILITY. No person is authorized to change or otherwise modify the warranties set forth herein or to assume any other liability on behalf of Company.

 

14.5 Limitation of Liability. IN NO CIRCUMSTANCE AND UNDER NO LEGAL THEORY (TORT, CONTRACT OR OTHERWISE), SHALL COMPANY OR ITS RELATED PARTIES BE LIABLE FOR ANY SPECIAL, PUNITIVE, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES (INCLUDING ANY LOST PROFITS, LOSS OF USE, OR LOSS OF OPPORTUNITY) ARISING FROM OR OTHERWISE RELATED TO THIS AGREEMENT EVEN IF COMPANY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. IN NO EVENT SHALL COMPANY’S CUMULATIVE LIABILITY HEREUNDER EXCEED THE REVENUE RECEIVED BY ZAGG AS A RESULT OF THE APPOINTMENT IN THE TWELVE (12) MONTH PERIOD PRECEDING THE DATE OF THE APPLICABLE CLAIM. IN NO EVENT SHALL COMPANY OR ITS RELATED PARTIES BE LIABLE FOR OR IN CONNECTION WITH THE OFFER, SALE, MANUFACTURE, DISTRIBUTION, PROVISION OR USE OF ANY ZAGG OR THIRD PARTY PRODUCTS OR SERVICES WHETHER BY OR ON BEHALF OF COMPANY, ZAGG OR ANY THIRD PARTY, AND WHETHER CONDUCTED ONLINE, VIA MAIL OR OTHERWISE. ZAGG ACKNOWLEDGES AND AGREES THAT THESE LIMITATIONS REFLECT A FAIR ALLOCATION OF RISK AND THAT COMPANY WOULD NOT ENTER INTO THIS AGREEMENT WITHOUT THESE LIMITATIONS ON ITS LIABILITY, AND AGREES THAT THESE LIMITATIONS SHALL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE. BECAUSE SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OR LIMITATION OF CERTAIN CATEGORIES OF DAMAGES, IN SUCH JURISDICTIONS, ZAGG AGREES THAT COMPANY’S LIABILITY SHALL BE LIMITED TO THE FULLEST EXTENT PERMITTED BY SUCH JURISDICTION.

 

15.INDEMNIFICATION.

 

15.1 Company’s Indemnification. Company will indemnify, defend, and hold harmless ZAGG and its directors, officers, employees, agents, consultants, advisors, legal counsel, and stockholders, as well as the controlling persons and affiliates of each of the foregoing (collectively, the “ZAGG Indemnified Persons”) against and from, and will pay to the ZAGG Indemnified Persons the amount of, any loss, liability, claim, damage, expense (including costs of investigation and defense and reasonable attorneys’ fees), whether or not involving a

	
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third-party claim, (collectively “Damages”) directly or indirectly, from or in connection with: (a) any breach of any representation or warranty made by Company in this Agreement; (b) any breach by Company, its employees, representatives, subcontractors, agents, and others under its control of any covenant or obligation of Company in this Agreement; (c) any claim made by any third party related to the conduct of Company’s business, including, without limitation, with respect to any disputes between Customer(s) and Company and Company’s other products or services; (d) any claim based upon the alleged wrongful acts, fraud, false advertising, or misrepresentations of Company in connection with this Agreement.

 

15.2 ZAGG’s Indemnification. ZAGG will indemnify, defend, and hold harmless Company and its directors, officers, employees, agents, consultants, advisors, legal counsel, and stockholders, as well as the controlling persons and affiliates of each of the foregoing (collectively, the “Company Indemnified Persons”) against and from, and will pay to the Indemnified Persons the amount of Damages arising, directly or indirectly, from or in connection with: (a) any breach of any representation or warranty made by the ZAGG in this Agreement; (b) any breach by ZAGG, its employees, representatives, subcontractors, agents, and others under its control of any covenant or obligation of ZAGG in this Agreement; (c) any claim made by any third party related to the conduct of ZAGG’s business, including, without limitation, with respect to any disputes between Customer(s) and ZAGG and ZAGG’s other products or services; (d) any claim based upon the alleged wrongful acts, fraud, false advertising, or misrepresentations of ZAGG in connection with this Agreement.

 

16. TERM AND TERMINATION.

 

16.1 Term. Subject to Sections 16.2, 16.3 and 16.4, this Agreement will continue in force for a fixed term of three (3) years from the Effective Date (the “Initial Term”). At the end of the Initial Term, this Agreement will automatically renew for subsequent terms of one (1) calendar year (together with the Initial Term, the “Term”) unless either Party provides the other with notice of non-renewal at least sixty (60) days prior to the expiration of the Term.

 

16.2 Termination for Cause. If either Party defaults in the performance of a provision of this Agreement, then the non-breaching Party may give written notice to the breaching Party to terminate this Agreement if such default is not cured within thirty (30) days after such notice. If the default is not cured during the applicable period, then this Agreement will automatically terminate at the end of such thirty (30) day period without any further actions being required by any Party.

 

16.3 Termination for Company Liquidity Event. Company may terminate this Agreement in the event of any Company Liquidity Event after giving ZAGG sixty (60) days’ written notice of such termination. For the purposes of this Agreement, “Company Liquidity Event” shall mean the occurrence of any of the following: (a) any liquidation, dissolution, or winding up of Company, (b) the closing of a transaction or series of related transactions in which Company is merged or consolidated into another entity in which the shareholders of Company as at the date hereof own less than a majority in voting power of the securities of the surviving corporation or any parent thereof or (c) the sale, license or disposal of all or substantially all of Company’s assets.

	
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16.4 Termination for ZAGG Liquidity Event or Management Change. Company may terminate this Agreement in the event of any ZAGG Liquidity Event after giving ZAGG sixty (60) days’ written notice of such termination. For the purposes of this Agreement, “ZAGG Liquidity Event” shall mean the occurrence of any of the following: (a) any liquidation, dissolution, or winding up of ZAGG, (b) the closing of a transaction or series of related transactions in which ZAGG is merged or consolidated into another entity in which the shareholders of ZAGG as at the date hereof own less than a majority in voting power of the securities of the surviving corporation or any parent thereof, (c) the sale, license or disposal of all or substantially all of ZAGG’s assets, or (d) the Section 16 officers of ZAGG, Robert Pedersen and Brandon O’Brien, cease to be subject to the requirements of that section.

 

16.5 Termination for Insolvency. This Agreement will terminate, without notice, upon (a) the institution by or against either Party of insolvency, receivership, or bankruptcy proceedings or any other proceedings for the settlement of such Party’s debts, (b) a Party making an assignment for the benefit of creditors, or (c) upon either Party’s dissolution or ceasing to do business.

 

16.6 Return or Destruction of Parties’ Respective Property. Upon termination of the rights and licenses granted under this Agreement for whatever reason, each Party shall promptly return to the other Party all property, including any Company Property and/or ZAGG Materials, and any copies thereof.

 

16.7 Limitation on Liability Due to Termination. In the event of termination in accordance with any of the provisions of this Agreement, neither Party will be liable to the other, because of such termination, for compensation, reimbursement or damages on account of the loss of prospective profits or anticipated sales or on account of expenditures, inventory, investments, leases or commitments in connection with the business or goodwill of Company or ZAGG.

 

16.8 Survival of Certain Terms. The provisions of Sections 6, 10, 14, 15, 16.6, 16.8 and 17 (excluding Section 17.2) will survive the expiration or termination of this Agreement for any reason. All other rights and obligations of the Parties will cease upon termination of this Agreement. Termination will not, however, relieve either Party of obligations or liabilities incurred prior to the termination.

 

17.MISCELLANEOUS.

 

17.1 Independent Contractors. The relationship of Company and ZAGG established by this Agreement is that of independent contractors, and nothing contained in this Agreement will be construed to (a) give either Party the power to direct or control the day-to-day activities of the other, (b) constitute the Parties as partners, joint venturers, co-owners, or otherwise as participants in a joint or common undertaking, or (c) allow either Party to create or assume obligations on behalf of the other Party for any purpose whatsoever. ZAGG does not regard itself as a “franchisee” nor Company as a “franchisor” nor the relationship between ZAGG and Company as a “franchise.” All sales and other agreements between either Party and its customers are such Party’s exclusive responsibility and will have no effect on the other Party’s obligations under this Agreement. All financial obligations associated with either Party’s business are the sole responsibility of such Party.

	
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17.2 Insurance. Both Parties will maintain product liability insurance in an amount of not less than one million dollars ($1,000,000.00) for bodily injury and property damage per occurrence. Each Party shall name the other Party as an additional insured. Each Party shall provide the other with a certificate of insurance evidencing this coverage and providing that it shall not be modified or cancelled without sixty (60) days prior written notice to the other Party.

 

17.3 Entire Agreement. This Agreement sets forth the entire agreement and understanding of the Parties, relating to its subject matter and supersedes all prior discussions, letters of intent or term sheets between them. No modification of or amendment to this Agreement, nor any waiver of any rights under this Agreement, will be effective unless in writing signed by the Party to be charged.

 

17.4 Notices. All notices and other communications under this Agreement will be in the English language, in writing, and sent by certified or registered mail, commercial delivery service or by facsimile, to the following addresses, or such other address a Party may specify by written notice:

 

If to Company:

 

HzO, Inc.

3855 South 500 West, Suite J Salt Lake City UT 84115 Facsimile: (888)-291-8345 Attn: President

 

With a copy to:

 

Durham, Jones &Pinegar

111 East Broadway, Suite 900 Salt Lake City, UT 84111 Attention: Jeffrey M. Jones

 

If to ZAGG:

 

ZAGG Incorporated

3855 South 500 West, Suite J Salt Lake City, Utah 84115 Fax: 801.263.1841

 

Attention: Brandon O’Brien

 

With a copy to:

 

ZAGG Incorporated

3855 South 500 West, Suite J Salt Lake City, Utah 84115 Fax: 801.263.1841

	
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Attention: Chief Legal Officer

 

Notice pursuant to this Agreement is deemed given pursuant to the following rules: if delivered by certified or registered mail or commercial delivery service, upon confirmation of receipt tat the time of delivery and if sent by facsimile at the time of electronic acknowledgment that the facsimile was transmitted.

 

17.5 Assignments; Binding Effect: No Third Party Rights. The Parties agree that neither Party may assign or transfer its rights and obligations under this Agreement directly or indirectly unless such Party first obtains the other Party’s prior written consent, which consent shall not be unreasonably withheld, except that Company shall have the right to assign this Agreement, without consent of ZAGG, to any successor to its business in the event of a Liquidity Event; any assignment contrary to the foregoing is void ab initio. Subject to the foregoing, this Agreement will be binding upon and inure to the benefit of the Parties hereto, their successors, and their assigns. Nothing expressed or referred to in this Agreement will be construed to give any person, other than the Parties, any legal or equitable right, remedy, or claim under or with respect to this Agreement or any provision of this Agreement. This Agreement and all of its provisions and conditions are for the sole and exclusive benefit of the Parties, their successors, and their assigns.

 

17.6 Rules of Interpretation. In this Agreement, (a) words importing the

singular include the plural and vice versa; and words importing one gender include all genders; (b) any person (to include natural persons and business entities) will be construed so as to include its and any subsequent successors, transferees, and assigns in accordance with their respective interests and in accordance with the provisions of this Agreement; (c) references to this Agreement or any other agreement or document will be construed as a reference to this Agreement or, as the case may be, such other agreement or document, as the same may have been, or may from time to time be, amended, varied, novated, replaced, or supplemented; (d) references to Sections or Exhibits will be deemed to be references to such parts of this Agreement unless the context otherwise requires, and such references are for convenience only and do not affect the interpretation of this Agreement; (e) if the day on or by which (i) a particular obligation hereunder must be fulfilled or (i) a time period provided for hereunder ends, falls on a day that is not a business day, then such obligation may be fulfilled on or by, and the end of such time period will be extended to, the next succeeding business day; and (f) except where the contrary is indicated, in this Agreement any reference to a statute or other legal requirement will be construed, at the particular time, as including a reference to any modification or extension thereof then in force and to all instruments, orders, or regulations then in force and made under or deriving validity from the relevant statute or legal requirement, as the case may be.

 

17.7 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Utah, other than such laws, rules, regulations or case law that would result in the application of the laws of a state other than Utah. If any dispute arises concerning a provision of this Agreement, the federal courts located in Salt Lake City, Utah, shall have exclusive jurisdiction and venue over such dispute. Each Party hereby consents to the personal jurisdiction of such courts. The prevailing Party shall be entitled to an award of its costs and reasonable attorneys’ fees in any such action.

	
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17.8Force Majeure. Neither Party will be responsible for any failure to perform

due to unforeseen circumstances or to causes beyond that Party’s control, including acts of God, war, riot, embargoes, acts of civil or military authorities, accidents, strikes, labor disputes, or shortages. Failure to perform will be excused during the continuance of such circumstances; provided, however, that this Agreement will otherwise remain in effect; provided further, that this Section will not excuse failure to pay money due to a Party under this Agreement. If a Party’s performance of any material obligation is reasonably expected to be delayed more than three (3) months due to any such cause, the other Party may terminate this Agreement upon thirty (30) days written notice.

 

17.9 Severability. If any provision of this Agreement, in whole or in part, is

held to be invalid, illegal or unenforceable by a court of authority of competent jurisdiction, such provision shall be modified by such court or authority to the minimum extent necessary to make it valid, legal and enforceable. If the provision cannot be so modified, it shall be severed and all other provisions of this Agreement shall remain in full force and effect. If a provision is held illegal, invalid or unenforceable, the Parties also agree to negotiate reasonably and in good faith to modify this Agreement with a new provision that approximates the intent and purpose of the original provision as closely as possible, without being illegal or unenforceable.

 

17.10 Counterparts. This Agreement may be executed in counterparts, each of which taken together will be deemed an original instrument. Facsimile or electronic signatures will be given the same effect as original signatures.

 

[SIGNATURE PAGE FOLLOWS]

	
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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement effective as of the Effective Date.

 

	 	
HZO, INC.

a Delaware Corporation

	 
	 	 	 	 
	
 

	
By: 

	/s/ Paul Clayson	 
	 	 	Name: Paul Clayson   	 
	 	 	Title: President and CEO	 
	 	 	 	 

 

 

	 	
ZAGG INCORPORATED

a Nevada Corporation

	 
	 	 	 	 
	 	
By: 

	/s/ Robert Pedersen II	 
	 	 	Name: Robert Pedersen II	 
	 	 	Title: President	 
	 	 	 	 

 

 

 

 

 

 

 

 

SIGNATURE PAGE

TO THE

MARKETING AGREEMENT

  

13

  

EXHIBIT A

 

Defined Market

 

Mobile electronic devices marketed to and purchased by consumers.

 

 

 

 

 

 

 

 

	
B3908273.4

  

14

  

EXHIBIT B

 

Technology

 

	
Attorney Reference

Number

	
Description

	
Type

	
Country

	
Filing Date

	
N0494.70000US00

	
Metal and Electronic

Device Coating Process for

Marine Use and Other

Environments Using a

Dual Coating

	
Provisional

Application

Converted from a

Non-Provisional

Application

	
US

	
10/23/2007

	
N0494.70001US00

	
Electronic Devise Coating

Process for Marine Use

and Other Environments

	
Provisional

Application

Converted from a

Non-Provisional

Application

	
US

	
10/23/2007

	
N0494.70000US01

	
Method and Apparatus to

Coat Objects

	
Non-Provisional

	
US

	
4/16/2008

	
N0494.70001US01

	
Method and Apparatus to

Coat Objects

	
Non-Provisional

	
US

	
4/16/2008

	
N0494.70002US00

	
Electronic Device Coating

Process for Marine Use

and Other Environments

	
Provisional

Application

Converted from a

Non-Provisional

Application

	
US

	
9/5/2007

	
N0494.70003WO00

	
Metal and Electronic

Device Coating Process for

Marine Use and Other

Environments

	
Internal

Application

	
PCT

	
3/5/2009

	
N0494.70004TW00

	
Metal and Electronic

Device Coating Process for

Marine Use and Other

Environments

	
Foreign

Application

	
TW

	
3/5/2009

 

 

	
B3908273.4

  

15

  

EXHIBIT C

 

Trademarks

 

	
Trademark

	
Country

	
Appl. No.

	
Filing Date

	
Reg. No.

	
Reg. Date

	
Assignee

	  	  	  	  	  	  	  
	
DON’T FEAR

	
UNFILED

	  	  	  	  	  
	
THE PUDDLE

	  
	  
	
HZO

	
US

	
77/956,003

	
3/10/2010

	  	  	
HZO, Inc.

	  	  	  	  	  
	
HZO

	
AU

	
1386751

	
9/30/2010

	
1386751

	
5/19/2011

	
HZO, Inc.

	  	  	  	  	  	  	  
	
HZO

	
BR

	
830.798.870

	
10/8/2010

	  	  	
HZO, Inc.

	  	  	
830.798.889

	
10/8/2010

	
HZO, Inc.

	
830.798.897

	
10/8/2010

	
HZO, Inc.

	
830.798.900

	
10/8/2010

	
HZO, Inc.

	  	  	  
	
HZO

	
CA

	
1,498,148

	
10/1/2010

	  	  	
HZO, Inc.

	  	  	  	  	  
	
HZO

	
CN

	
8881448

	
11/25/2010

	  	  	
HZO, Inc.

	  	  	
8881449

	
11/25/2010

	
HZO, Inc.

	
8881450

	
11/25/2010

	
HZO, Inc.

	  	  	  
	
HZO

	
CO

	
10160571

	
12/21/2010

	  	  	
HZO, Inc.

	  	  	
10160573

	
12/21/2010

	
HZO, Inc.

	
10160576

	
12/21/2010

	
HZO, Inc.

	  	  	  
	
HZO

	
EP

	
9416223

	
10/1/2010

	
009416223

	
3/1/2011

	
HZO, Inc.

	  	  	  	  	  	  	  
	
HZO

	
HK

	
301734138

	
10/12/2010

	
301734138

	
3/30/2011

	
HZO, Inc.

	  	  	  	  	  	  	  
	
HZO

	
IN

	
2034291

	
10/7/2010

	  	  	
HZO, Inc.

	  	  	  	  	  
	
HZO

	
JP

	
76514/2010

	
9/30/2010

	
5393858

	
2/20/2011

	
HZO, Inc.

	  	  	  	  	  	  	  
	
HZO

	
KR

	
2010-50922

	
10/4/2010

	  	  	
HZO, Inc.

	  	  	  	  	  

	
B3908273.4

  

16

  

	
Trademark

	
Country

	
Appl. No.

	
Filing Date

	
Reg. No.

	
Reg. Date

	
Assignee

	  	  	  	  	  	  	  
	
HZO

	
MX

	
1137179

	
11/24/2010

	
1208476

	
3/24/2011

	
HZO, Inc.

	  	  	
1137180

	
11/24/2010

	
1208477

	
3/24/2011

	
HZO, Inc.

	
1137181

	
11/24/2010

	
1208478

	
3/24/2011

	
HZO, Inc.

	  	  	  	  	  
	
HZO

	
ZA

	
2010/21909-11

	
9/30/2010

	  	  	
HZO, Inc.

	  	  	  	  	  
	
HZO INSIDE

	
UNFILED

	  	  	  	  	  
	  	  
	
WATER

	
UNFILED

	  	  	  	  	  
	
BEWARE

	  
	  
	
WATER

	
US

	
77/956,018

	
3/10/2010

	  	  	
HZO, Inc.

	
BLOCK

	  	  	  	  
	  
	
WATER

	
UNFILED

	  	  	  	  	  
	
BLOCKED

	  
	  
	  	
UNFILED

	  	  	  	  	  
	  
	  
	  	
UNFILED

	  	  	  	  	  
	  
	  
	  	
UNFILEDex1010.htm

EXHIBIT 10.10

 

Execution Copy

 

DISTRIBUTION AGREEMENT

 

(Initial Product Launch)

 

THIS DISTRIBUTION AND LICENSE AGREEMENT (“Agreement”) is made and entered into as of the 12th day of August, 2011 (the “Effective Date”), by and between HzO, Inc., a Delaware corporation (“HzO”), and ZAGG Incorporated, a Nevada corporation (“Distributor”). HzO and Distributor may be referred to individually as a “Party” and collectively as the “Parties.”

 

RECITALS:

 

A. HzO and Distributor are parties to that certain Amended and Restated Marketing and Distribution Agreement, dated August 12, 2011 (the “Marketing Agreement”). This Agreement sets forth rights and obligations of the Parties which are in addition to and supplement the rights and obligations of the Parties under the terms of the Marketing Agreement.

 

B. HzO is engaged in the business of creating and marketing hydrophobic coatings for mobile and other electronic devices in order to protect such devices against water and moisture damage. HzO desires to treat certain handheld electronic devices identified on Exhibit A with HzO’s WaterBlockTM surface treatment (the “Products”) and to sell the Products to Distributor in accordance with this Agreement

 

C. Distributor is engaged in the business of, among other things, marketing and distributing multiple protective products for consumer electronic and hand-held devices.

 

D. In connection with that certain Stock Purchase Agreement among HzO, Distributor and certain other investors, dated August 12, 2011(the “Stock Purchase Agreement”), HzO desires to engage Distributor to market and sell the Products in quantities set forth on Exhibit A in order to fulfill the requirement of a successful retail launch of certain mobile electronic devices which have been treated with HzO’s WaterBlockTM surface treatment.

 

E. Distributor desires, on the terms and conditions hereinafter set forth, to purchase the Products in quantities set forth on Exhibit A, all of which shall have been treated with HzO’s WaterBlockTM surface treatment, from HzO and to act as an exclusive distributor of the Products in the Territory in quantities set forth on Exhibit A through Distributor’s existing channels of distribution, including via Distributor’s website and mall carts.

 

	
F.  

	
HzO is willing to grant to Distributor a distribution license as outlined herein. AGREEMENTS:

 

In consideration of the mutual covenants and agreements contained herein, the sufficiency of which is hereby acknowledged, the parties agree as follows:

 

  

1

  

 

1. General Definitions.

 

1.1“Affiliate” means with respect to an entity, any other entity which is controlled by, controls or is under common control of the entity. For this purpose, the word “control” means the direct or indirect ownership of more than fifty (50%) percent of the voting equity of such entity.

 

1.2“Confidential Information” has the meaning set forth in Section 8.1 below.

 

1.3“Documentation” means the documentation prepared in connection with the Products as of the Effective Date, including functional and design specifications, test reports, and consumer-facing documentation.

 

1.4“Fiscal Quarter” means HzO’s fiscal quarters, as currently calculated, during each year of the Term.

 

1.5“HzO Technology” means any technology in or elements of the Products or Documentation in which HzO owns the Intellectual Property.

 

1.6“HzO Trademarks” means the trademark and trade name HzO and the HzO logo, HzOinside and WaterBlockTM attached as Exhibit B.

 

1.7“Intellectual Property” means any and all now known or hereafter known tangible and intangible: (a) rights associated with works of authorship throughout the world, including but not limited to, copyrights and moral rights; (b) trademarks and trade name rights and similar rights; (c) trade secret rights; (d) patents, patent rights, designs, and other intellectual and industrial property rights (of every kind and nature throughout the world and however designated) whether arising by operation of law, contract, license, or otherwise; and (e) all registrations, initial applications, renewals, extensions, continuations, divisions, or reissues of the foregoing now or hereafter in force.

 

1.8“Marketing Agreement” has the meaning set forth in the Recitals, above.

 

1.9“Net Sales” means the net sales revenue of Products by Distributor and its Affiliates, as reflected in its consolidated financial statements, calculated in accordance with U.S. GAAP, in accordance with Distributor’s standard accounting policies, which may include deductions for sales returns, sales allowances, and other similar deductions.

 

1.10 “Products” has the meaning set forth in the Recitals, above. “Products” shall also include any additional products that the Parties agree in writing to add as Products under the terms of this Agreement.

 

1.11 “Standard Cost” means Distributor’s direct costs for Products sold by Distributor and its Affiliates, in accordance with Distributor’s standard accounting policies.

 

1.12 “Standard Margin” means Net Sales less Standard Cost.

 

1.13“Stock Purchase Agreement” has the meaning set forth in the Recitals, above.

 

1.14 “Term” has the meaning set forth in Section 9.1 below.

 

1.15“Territory” means all countries in the world in which Distributor markets, sells or distributes, directly or indirectly, Distributor’s own products.

 

  

2

  

 

2.Grant of Rights.

 

2.1 Grant of Rights. HzO hereby grants Distributor an exclusive right to purchase the Products from HzO and to use, market, import, offer to sell, distribute or have distributed (including through multiple tiers of distribution) and sell the Products in the Territory at retail (the “Aftermarket”). Distributor may sub-license the foregoing rights and licenses to its Affiliates, as long as they shall remain Affiliates of Distributor. Distributor agrees that Distributor will be responsible and liable under the terms of this Agreement for any breach, action or omission by an Affiliate to the same extent as if Distributor itself had taken such action or made such omission.

 

2.2 Appointment of Distributors. Distributor may exercise its marketing, distribution and selling rights under this Agreement both directly and through its Affiliates, distributors and resellers.

 

2.3 Scope of Exclusivity. During any period that Distributor’s rights hereunder are exclusive, HzO shall not market, sell or distribute the Products in the Aftermarket in the Territory. The exclusivity of Distributor’s appointment shall not prevent HzO licensing or selling HzO Technology to any original equipment manufacturer (“OEM”) of products for application of HzO Technology to such products in the OEM market.

 

2.4 Termination Right. After the initial 3 month period of sales of Products by Distributor, HzO and Distributor will meet and discuss in good faith the results of the initial launch, including Product sales volume, unit pricing, customer feedback, warranty claims, actual financial and sales results versus proforma. The Parties will negotiate in good faith any changes in the terms of this Agreement as may be commercially reasonable in light of the results for the initial Product launch.

 

3. Proprietary Rights; Non-Competition/Freedom to Operate.

 

3.1HzO Intellectual Property. Distributor acknowledges and agrees that the HzO Technology used in the Products and Documentation prepared by or for HzO in its current form as of the date of this Agreement, are proprietary to HzO and all related Intellectual Property rights will at all times remain with HzO. As between Distributor and HzO, HzO shall own any Intellectual Property in any modifications to the HzO Technology used in the Products. HzO reserves all rights not specifically granted in this Agreement.

 

3.2 Third Party Infringements. Each Party will promptly notify the other of any infringements by third parties of rights in the HzO Technology used in the Products, the HzO Trademarks, or related materials that come to such Party’s attention, but shall have no liability to the other Party for a failure to do so. HzO shall have the sole right, but not the obligation, to bring any action for infringement of its Intellectual Property and/or the Trademarks.

 

3.3 Non-Competition/Freedom to Operate. At all times during which Distributor has the exclusive right to distribute the Products, Distributor will not, except as expressly described herein in respect of the Products, carry on any business or activity (whether directly or indirectly, as a partner, shareholder, owner, principal, agent, director, Affiliate, advisor or consultant), which is intended to design, manufacture, market, sell or distribute any product with technology or features substantially similar to the HzO Technology utilized in any one of the Products. Except as set forth in the previous sentence, each of Distributor and HzO shall have the unrestricted right to develop new or competing products to the Products or to other products under development or on either Party’s current or future product roadmap.

 

3.4 Engineering Changes. HzO shall maintain exclusive rights to control the manner in which Products are treated with HzO’s surface treatments. Distributor may suggest engineering or technical changes to the HzO Technology to be utilized in Products and to the Documentation, which HzO will reasonably consider.

 

  

3

  

 

4. Distributor’s Responsibilities. Distributor shall have the following obligations and responsibilities under this Agreement:

 

4.1 Efforts to Sell. Distributor will use reasonable best efforts to market, distribute and sell the Products in the Territory, consistent with its general marketing, distribution and sales practices for comparable products, as they may change over time.

 

4.2 Compliance with Laws. Distributor shall obtain any necessary governmental licenses or approvals for distribution and sale of the Products by it or its Affiliates in the Territory, to the extent not previously obtained by HzO. Distributor shall be responsible for and shall obtain and/or comply with all governmental laws and regulations applicable to the export, import and distribution of the Products by or on behalf of Distributor or its Affiliates in each country within the Territory where Distributor distributes the Products, non-compliance with which would have a material adverse effect upon HzO.

 

4.3 Service and Support. Distributor shall have responsibility for and shall provide, and ensure that third parties appointed by Distributor provide, initial customer and consumer support for Products sold by or through Distributor.

 

4.4 Product Claims. Distributor will be solely responsible for any representations or claims made by it regarding the Products.

 

5. HzO’s Responsibilities.

 

5.1Customer Service and Support. HzO shall provide all customer and consumer support in respect of matters which are not resolved via Distributor’s initial support. HzO shall provide all engineering and technical support for HzO Technology utilized in the Products sold by or through Distributor and shall use commercially reasonable efforts to resolve customer or consumer concerns or inquiries relating to HzO Technology or its application to the Products.

 

5.2Compliance with Laws. HzO will be responsible for packaging and labeling the Products as required by the laws of the country where Distributor distributes the Products.

 

5.3Product Claims. HzO will be solely responsible for any representations or claims made by it regarding the HzO Technology and its application to the Products, other than those contained in Distributor’s promotional literature or matters in respect of which Distributor provides representations, warranties, covenants or indemnification to HzO hereunder.

 

  

4

  

 

6. Pricing and Payment Terms.

 

6.1HzO Product Price to Distributor. HzO shall sell Products to Distributor at its Cost. For purposes of this Agreement, “Cost” shall mean an administrative cost of $1.00 per unit plus charges and costs necessarily incurred and paid by HzO to: (a) acquire the mobile devices described in Exhibit A, (b) apply the HzO Technology to the Products, (c) obtain repair and/or replacement insurance for the Products and (d) deliver the Products. Distributor shall pay HzO for Products net thirty (30) days of receipt of invoice.

 

6.2 Product Margin Share. Distributor shall also pay HzO a margin share of fifty percent (50%) of Standard Margin for each Product sold, and not returned for a refund, by Distributor or its Affiliates to third parties in the Territory; provided that margin share shall be calculated on the aggregate Standard Margin for sales (i) by Distributor to its Affiliates and (ii) from Distributor and/or its Affiliates to third parties. For avoidance of doubt, if there is Standard Margin of $10 on a transaction between Distributor and one of its Affiliates and Standard Margin on $10 on a transaction between the Affiliate and a third party, Distributor would pay HzO 50% of the aggregate Standard Margin on $20. Product returned by customers of the Distributor and replaced with another product are subject to payment of the margin share of the Standard Margin to HzO.

 

6.3 Payments and Reports. Payments due under Section 6.2 shall be made monthly by Distributor based on sales in the preceding calendar month. Within thirty (30) days after the end of a calendar month, Distributor shall deliver to HzO a written report setting forth, in reasonable detail, the total net Products sold by it to its customers in such quarter, with a calculation of Standard Margin and resulting amounts owed to HzO. Unless Distributor is notified by HzO of any discrepancy within five (5) days of receipt, such report will be deemed to be an invoice for Distributor for the aggregate amount due and Distributor shall pay HzO net ten (10) days of receipt of invoice.

 

6.4 Product Pricing. Distributor shall determine the price for the Products to be sold by it in its sole discretion. In the event that Standard Margin on the sale of any Product is less than zero, Distributor shall absorb such loss, and HzO shall not be obliged to pay any amount to Distributor with respect to any sales of Products where Standard Margin is less than zero.

 

6.5 Costs. Except as set forth in this Section 6, each Party shall bear its own costs associated with its business and activities under this Agreement.

 

6.6 Taxes. Distributor shall be responsible for all sales, use, excise, value added, duties and other taxes, governmental duties or assessments, arising out of this Agreement, other than taxes on HzO’s net income.

 

7. HzO Trademark License.

 

7.1 License Grant. Subject to the terms of this Section, HzO grants Distributor a nonexclusive, royalty-free license to use the HzO Trademarks in connection with marketing, advertising and selling the Products. Distributor shall comply with HzO’s policies and guidelines for use of the HzO Trademarks, as they may be revised from time to time, and shall comply with proper legal standards for trademark usage. Distributor agrees to cooperate reasonably in any efforts by HzO to register the HzO Trademarks. All such registrations shall be in HzO’s name.

 

7.2 Restrictions. Distributor agrees it will (i) not alter or change the HzO Trademarks or any trademark notices provided by HzO without HzO’s consent; or (ii) use the HzO Trademarks in connection with any other product or service not supplied or authorized by HzO.

 

7.3 Quality Assurance. Distributor acknowledges that the good will and value of the HzO Trademarks and HzO’s name and goodwill may be adversely affected unless the Products meet reasonable quality standards, including those quality standards set forth in Section 4.2 above. Distributor agrees to take reasonable steps to cure any material quality deficiencies.

 

7.4 Ownership. Distributor acknowledges that HzO owns all interest in and all valid registrations in the HzO Trademarks. Distributor shall do nothing inconsistent with HzO’s ownership of the Trademarks, including attacking the validity of the Trademarks or HzO’s title thereto. All goodwill accrued through use of the HzO Trademarks by Distributor, its agents and employees shall inure to the benefit of HzO. Nothing in this Agreement shall give Distributor any right, title or interest in the HzO Trademarks other than the right to use them in accordance with this Agreement.

 

  

5

  

 

8.Confidential Information.

 

8.1 Definition. “Confidential Information” means the substantive terms of this Agreement, unique or proprietary technology, trade secrets, business plans or schedules, customer lists and data, any written materials marked as confidential and other materials or information which reasonably should be understood by the Receiving Party to be confidential. Confidential Information does not include information that the party who received such information (the “Receiving Party”) from the other party (the “Disclosing Party”) can prove: (i) was or later becomes generally available to the public without fault of the Receiving Party; (ii) was rightfully in the Receiving Party’s possession prior to its disclosure by the Disclosing Party; (iii) is independently developed by the Receiving Party without the use of any Confidential Information of the Disclosing Party; or (iv) is obtained by Receiving Party without obligation of confidentiality from a third party who has the right to disclose it.

 

8.2 Use and Disclosure. The Receiving Party shall not disclose to any person or use for any purpose, except as expressly permitted by this Agreement, any Confidential Information of the Disclosing Party. The Receiving Party may disclose Confidential Information only to its employees and independent contractors who need to know such information, and who are required to keep such information confidential. The Receiving Party shall give the Disclosing Party’s Confidential Information at least the same level of protection as it gives its own Confidential Information of similar nature, but not less than a reasonable level of protection. The Receiving Party shall maintain Confidential Information in a safe and secure place and shall not copy Confidential Information except to the extent necessary for the purposes of this Agreement. Confidentiality obligations shall survive for so long as is permitted by California law. It shall not be a violation of this Agreement if Confidential Information is required to be disclosed by law or judicial order, provided that prior written notice of such required disclosure is given to the Disclosing Party as soon as practicable in order to give the Disclosing Party the chance to object to the disclosure or to seek a protective order.

 

8.3 Injunctive Relief. Each party acknowledges that the other party’s Confidential Information is highly valuable to the other party, that any breach of its obligations under this Agreement with respect to confidentiality will severely damage the other party, the extent of which damage would be difficult to ascertain and, therefore, that other party shall be entitled to, among other remedies, immediate temporary and permanent injunctive relief (without bond) and other equitable relief for any such breach from a court or authority of competent jurisdiction.

 

9. Term and Termination.

 

9.1Term. The initial term of this Agreement begins upon the Effective Date and shall continue for three (3) years, subject to prior termination rights as provided below. At the end of such initial term, this Agreement shall automatically renew for additional one (1) year terms, unless either Party notifies the other, at least sixty (60) days prior to the end of the then-current term, that it wishes to terminate the Agreement. The initial term and all renewal terms are referred to herein as the “Term.”

 

9.2 Termination for Cause. Either Party may terminate this Agreement if the other Party breaches any material covenant or undertaking contained herein, and the breach is not cured within the thirty (30) days following written notice thereof from the other Party.

 

9.3 Termination for HzO Liquidity Event. HzO may terminate this Agreement in the event of any HzO Liquidity Event after giving Distributor sixty (60) days’ written notice of such termination. For the purposes of this Agreement, “HzO Liquidity Event” shall mean the occurrence of any of the following: (a) any liquidation, dissolution, or winding up of HzO, (b) the closing of a transaction or series of related transactions in which HzO is merged or consolidated into another entity in which the shareholders of HzO as of the date hereof own less than a majority in voting power of the securities of the surviving corporation or any parent thereof or (c) the sale, license or disposal of all or substantially all of HzO’s assets.

 

9.4 Termination for Distributor Liquidity Event or Management Change. HzO may terminate this Agreement in the event of any Distributor Liquidity Event after giving Distributor sixty (60) days’ written notice of such termination. For the purposes of this Agreement, “Distributor Liquidity Event” shall mean the occurrence of any of the following: (a) any liquidation, dissolution, or winding up of Distributor, (b) the closing of a transaction or series of

related transactions in which Distributor is merged or consolidated into another entity in which the shareholders of Distributor as at the date hereof own less than a majority in voting power of the securities of the surviving corporation or any parent thereof, (c) the sale, license or disposal of all or substantially all of Distributor’s assets, or (d) the Section 16 officers of Distributor, Robert Pedersen and Brandon O’Brien, cease to be subject to the requirements of that section.

 

9.5 Effect of Termination. Upon termination of this Agreement for any reason, Distributor shall discontinue its distribution of the Products, and terminate all relationships and agreements with dealers and others that related to the distribution and sale of the Products. Upon termination of this Agreement, Distributor shall cease all use of the HzO Trademarks (except as reasonably necessary or appropriate in exercise of the sell-off rights above) and shall return to the other party or destroy all copies of the other party’s Confidential Information, except that each party may retain one copy of the other party’s Confidential Information for archival purposes. Notwithstanding the foregoing, Distributor may, for a period of two (2) months from the date of termination, continue to distribute the Products as necessary to fulfill orders received by Distributor and binding commitments made by Distributor prior to the date of HzO’s notice of termination and to dispose of Distributor’s inventory of Products. In addition to where it is so stated, it is agreed that Sections 3, 8, 9, 10.3, 11 and13 shall survive termination of this Agreement.

 

  

6

  

 

10. Representations, Warranties and Covenants.

 

10.1 Representations, Warranties and Covenants of Distributor. Distributor represents, warrants and covenants that it has the right to enter into this Agreement and perform in accordance with the terms of this Agreement, and such actions do not violate any third party agreement or other obligation by which Distributor is bound.

 

10.2 Representations, Warranties and Covenants of HzO. HzO represents, warrants and covenants as follows:

 

10.2.1 HzO has the right to enter into this Agreement and perform in accordance with the terms of this Agreement, and such actions do not violate any third party agreement or other obligation by which HzO is bound.

 

10.2.2 As of the Effective Date, HzO has not received notice from any governmental entity, customer or distributor within the Territory, nor does it have reason to believe: (a) that the Products or the HzO Trademarks infringe the Intellectual Property Rights of a third party, (b) that the Products have defects in design, components or manufacturing that would constitute an epidemic condition or give rise to a product recall, or (c) that its claims or Documentation regarding the Products are misleading in any material respect.

 

10.3 Limitations of Warranties. EXCEPT AS OTHERWISE SPECIFICALLY SET FORTH IN THIS AGREEMENT, NEITHER PARTY MAKES ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND, WHETHER EXPRESS OR IMPLIED, WITH RESPECT TO ITS PRODUCTS, SERVICES, DOCUMENTS, OR OTHER MATERIALS, INCLUDING WITHOUT LIMITATION THE IMPLIED WARRANTIES OF MERCHANTABILITY, NON-INFRINGEMENT AND FITNESS FOR A PARTICULAR PURPOSE.

 

11.Indemnification.

 

11.1 Indemnification. Each party agrees to indemnify, defend and hold the other party harmless from and against any and all unrelated third party claims, liabilities, judgments, costs, damages and expenses (including reasonable attorneys’ fees) arising out of any unrelated third party claim relating to (a) any breach of such party’s obligations, warranties, covenants or representations in this Agreement, or (b) the HzO Technology, infringing or misappropriating a third party’s Intellectual Property.

 

11.2 Indemnification Procedure. With respect to any third party claims falling within the scope of this indemnification obligation, (i) each party agrees to promptly notify the other of any claim or lawsuit for which it believes it is entitled to be indemnified; (b) the indemnifying party shall assume, at its sole expense, the defense of such claim or lawsuit; (c) the party being indemnified shall have the right to participate in the defense of any such claim or lawsuit with separate counsel, at its sole expense; and (d) the indemnified party shall provide the indemnifying party with the assistance, information and authority reasonably necessary to settle or defend against the third party claim, at the indemnifying party’s expense, but the indemnifying party may not settle any claim or action on behalf of the indemnified party with first obtaining the indemnified party’s written permission, which shall not be unreasonably withheld.

 

11.3 Infringement Cure. If a material component of the Product is finally held or believed by the indemnifying party to infringe or its distribution is enjoined, the indemnifying party will use reasonable efforts to obtain a license or grant of rights under the rights that have been infringed, modify the Product so it is non-infringing or provide a substitute Product or component thereof that is non-infringing, or if the foregoing are not commercially reasonable or the indemnifying party fails to so cure the problems, either party may terminate the license and distribution rights for the infringing Product upon written notice to the other party. Neither party shall be liable for infringement based on modification of the Product by any other party (excluding such party’s own Affiliates or agents), or the combination or use of the Product with any other product, equipment, or process not furnished by such party, if use of the Product alone and in its unmodified form would not have been an infringement.

 

11.4 Limitation of Warranties. THIS SECTION STATES THE PARTIES’ ENTIRE OBLIGATION WITH RESPECT TO ANY CLAIM FOR INFRINGEMENT OR MISAPPROPRIATION OF ANY THIRD PARTY INTELLECTUAL PROPERTY RIGHTS.

 

  

7

  

 

12. Limitations of Damages.

 

12.1 IN NO EVENT SHALL HzO OR DISTRIBUTOR BE LIABLE FOR, AND EACH PARTY COVENANTS NOT TO BRING ANY CLAIM FOR, SPECIAL, CONSEQUENTIAL OR INDIRECT DAMAGES (INCLUDING EXEMPLARY OR PUNITIVE DAMAGES), WHETHER OR NOT SUCH DAMAGES WERE FORESEEABLE OR THE PARTY WAS SPECIFICALLY ADVISED CONCERNING THE POSSIBILITY OF SUCH DAMAGES. THE FOREGOING LIMITATIONS SHALL NOT APPLY TO THE PARTIES’ INDEMNIFICATION OBLIGATIONS OR TO A PARTY’S BREACH OF CONFIDENTIALITY OBLIGATIONS, VIOLATION OF THE OTHER PARTY’S INTELLECTUAL PROPERTY RIGHTS, FRAUD OR INTENTIONAL MISCONDUCT.

 

12.2 EXCEPT FOR A PARTY’S FRAUD, INTENTIONAL MISCONDUCT, BREACH OF CONFIDENTIALITY OR FOR VIOLATION OF THE OTHER PARTY’S INTELLECTUAL PROPERTY RIGHTS AND REGARDLESS WHETHER ANY REMEDY SET FORTH HEREIN FAILS OF ITS ESSENTIAL PURPOSE OR OTHERWISE, IN NO EVENT SHALL EITHER PARTY’S AGGREGATE LIABILITY UNDER, ARISING FROM, OR IN ANY WAY RELATED TO, THIS AGREEMENT FROM ALL CAUSES OF ACTION OF ANY KIND, INCLUDING CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, BREACH OF WARRANTY, INDEMNITY, MISREPRESENTATION, OR OTHERWISE EXCEED, INDIVIDUALLY OR IN THE AGGREGATE, TEN MILLION UNITED STATES DOLLARS (US$10,000,000).

 

12.3 EACH PARTY ACKNOWLEDGES AND AGREES THAT THE MUTUAL LIMITATIONS OF LIABILITY CONTAINED IN THIS SECTION 12 REFLECT THE ALLOCATION OF RISK SET FORTH IN THIS AGREEMENT AND THAT EACH PARTY WOULD NOT ENTER INTO THIS AGREEMENT WITHOUT THESE LIMITATIONS ON LIABILITY.

 

13. Miscellaneous.

 

13.1 Entire Agreement; Amendment. The complete and exclusive statement of the agreement between the Parties relating to this subject matter shall consist of this Agreement. Any prior discussions or understandings relating to this subject matter are superseded by the terms of this Agreement. In the event of any conflict between the terms of this Agreement and the Marketing Agreement or the Stock Purchase Agreement, the terms of this Agreement shall control. This Agreement may not be amended except by a written document signed by an authorized representative of both parties.

 

13.2 No Waiver. The waiver by either party of any default or breach of this Agreement by any Party, or any obligation hereunder, shall be ineffective unless in writing. No failure by any Party to exercise any right under this Agreement or to insist upon strict compliance of the Agreement by the other Party shall constitute a waiver of the right subsequently to exercise such right to insist upon strict compliance.

 

13.3 Choice of Law. This Agreement shall be exclusively governed by and construed in accordance with the laws of the state of Utah, without regard to conflicts of laws provisions and excluding the United Nations Convention on Contracts for the International Sale of Goods. If any dispute arises concerning this Agreement, the state and federal courts located in Salt Lake City, Utah, shall have exclusive jurisdiction and venue over such dispute. Each Party hereby consents to the personal jurisdiction of such courts. The prevailing Party shall be entitled to an award of its costs and reasonable attorneys’ fees in any such action.

 

13.4 Force Majeure. Neither Party shall be liable for any failure or delay in performing hereunder, if such failure or delay is due to war, strike, government requirements, acts of nature, acts or omissions of carriers, or other cause(s) beyond its reasonable control; provided, however, that if a Party’s performance of any material obligation is reasonably expected to be delayed more than three (3) months due to any such cause, the other Party may terminate this Agreement upon thirty (30) days’ prior written notice.

 

13.5 Severability. If any provision of this Agreement, in whole or in part, is held to be invalid, illegal or unenforceable by a court or authority of competent jurisdiction, such provision shall be modified by such court or authority to the minimum extent necessary to make it valid, legal and enforceable. If the provision cannot be so modified, it shall be severed and all other provisions of this Agreement shall remain in full force and effect. If a provision is held illegal, invalid or unenforceable, the Parties also agree to negotiate reasonably and in good faith to modify this Agreement with a new provision that approximates the intent and purpose of the original provision as closely as possible, without being illegal or unenforceable.

 

  

8

  

 

13.6 Notices. All notices between the parties shall be in writing and shall be sent by certified or registered mail or commercial delivery service, with provisions for a receipt, or by facsimile to the following addresses, or such other address a Party may specify by written notice:

 

HzO:

 

HzO, Inc.

3855 So. 500 W., Suite R Salt Lake City, UT 84115 Attention: Chief Executive Officer

 

With a mandatory copy to:

 

Durham Jones & Pinegar

111 East Broadway, Suite 900 Salt Lake City, UT 84111 Attention: Jeffrey M. Jones

 

DISTRIBUTOR:

 

ZAGG Incorporated

3855 So. 500 W., Suite C Salt Lake City, UT 84115 Attention: Chief Executive Officer

 

With a mandatory copy to:

 

ZAGG Incorporated

3855 So. 500 W., Suite J Salt Lake City, UT 84115 Attention: General Counsel

 

13.7 Assignment; Binding Effect. Neither Party may not sublicense or assign its rights or delegate its duties or obligations under this Agreement (excepting the limited rights permitted to be sublicensed to Distributor’s distributors) without prior written consent of the other Party, which shall not be unreasonably withheld, except that HzO shall have the right to assign this Agreement, without consent of Distributor, to any successor to its business in the event of a Liquidity Event. This Agreement is binding upon and inures to the benefit of the Parties and their respective successors, representatives and permitted assigns.

 

13.8 Independent Contractors; No Representations. The Parties are independent contractors, and neither Party shall have any right or authority to make any representations or warranties on the other Party’s behalf, or to assume or create any obligations or responsibilities, express or implied, on behalf of the other Party, or to bind the other Party in any way. Neither Party is an agent, employee or legal representative of the other Party.

 

13.9 No Agency, Franchise, Partnership or Other Relationship. This Agreement shall not be construed to create an agency, employer/employee relationship, franchisor/franchisee relationship, joint venture relationship or partnership between the Parties. The Parties expressly agree that no franchise or partnership laws are intended to or shall apply to this Agreement or to the relationship of the Parties.

 

13.10 Publicity / Press Releases. HzO may not issue a press release or refer to Distributor publicly without Distributor’s prior written consent, which may not be unreasonably withheld. Distributor may not issue a press release or refer to HzO publicly without HzO’s prior written consent, which may not be unreasonably withheld. The foregoing excludes any disclosure required under applicable law or regulation, including Securities and Exchange Commission regulation, or by any other governmental agency, in which case the Party required to make the press release or public disclosure shall use commercially reasonable efforts to obtain the approval of the other Party as to the form, nature and extent of the press release or public disclosure prior to issuing the press release or making the public disclosure.

 

13.11 Execution in Counterparts. This Agreement, including any amendment, waiver or modification hereto, may be executed by original, facsimile or electronic signature in counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. Delivery of an executed counterpart of a signature page by fax, e­mail or other electronic delivery or signature method shall be as effective as physical delivery of a manually executed counterpart.

 

13.12 Headings. Section and subsection headings contained in this Agreement are inserted for convenience of reference only, shall not be deemed to be a part of this Agreement for any purpose, and shall not in any way define or affect the meaning, construction or scope of any of the provisions hereof.

 

13.13 Further Actions. Each Party agrees to execute, acknowledge and deliver such further instruments, and to do all such other acts, as may be necessary or appropriate in order to carry out the purposes and intent of this Agreement.

 

[SIGNATURE PAGE FOLLOWS]

 

  

9

  

 

IN WITNESS WHEREOF, the parties hereto have executed this Distribution Agreement on and as of the day and year first above written.

 

	 	HZO, INC.,	 
	 	a Delaware corporation	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

	 	
ZAGG INCORPORATED, 

	 
	 	a Nevada corporation	 
	 	 	 	 
	
 

	
By: 

	/s/ 	 
	 	 	Name: Robert Pedersen II	 
	 	 	Title: President	 
	 	 	 	 

 

  

10

  

 

IN WITNESS WHEREOF, the parties hereto have executed this Distribution Agreement on and as of the day and year first above written.

 

	 	HZO, INC.,	 
	 	a Delaware corporation	 
	 	 	 	 
	
 

	
By: 

	/s/ 	 
	 	 	Name: Paul Clayson	 
	 	 	Title: President and CEO	 
	 	 	 	 

 

	 	
ZAGG INCORPORATED, 

	 
	 	a Nevada corporation	 
	 	 	 	 
	
 

	
 

		 
	 	 	 	 
	 	 	 	 
	 	 	 	 

 

 

  

11

  

 

EXHIBIT A

 

Products and Quantities

 

The following devices will be sold during the initial three month launch of sales of HzO WaterBlock devices. During the third month of sales in the in initial three month sales launch, HzO and ZAGG will review sales, warranty, and logistics information developed during the launch period and determine sales volumes, pricing and devices sold for subsequent months.

 

Month 1

 

	
Devices to be Sold

	
Quantity/Sales Target

	
Apple iPod Shuffle

	
350

	
Apple iPod Nano

	
650

 

Month 2

 

	
Devices to be Sold

	
Quantity/Sales Target

	
Apple iPod Shuffle

	
1000

	
Apple iPod Touch

	
500

	
Apple iPod Nano

	
1000

 

Month 3

 

	
Devices to be Sold

	
Quantity/Sales Target

	
Apple iPod Shuffle

	
1500

	
Apple iPod Touch

	
1000

	
Apple iPod Nano

	
1500

	
Other MP3 Player to be determined

	
1000

 

  

12

  

 

EXHIBIT B

 

HzO Trademarks

 

	
Trademark

	
Country

	
Appl. No.

	
Filing Date

	
Reg. No.

	
Reg. Date

	
Assignee

	
DON’T FEAR THE PUDDLE

	
UNFILED

	  	  	  	  	  
	
HZO

	
US

	
77/956,003

	
3/10/2010

	  	  	
HZO, Inc.

	
HZO

	
AU

	
1386751

	
9/30/2010

	
1386751

	
5/19/2011

	
HZO, Inc.

	
HZO

	
BR

	
830.798.870 

830.798.889 

830.798.897 

830.798.900

	
10/8/2010 

10/8/2010 

10/8/2010 

10/8/2010

	  	  	
HZO, Inc. 

HZO, Inc. 

HZO, Inc. 

HZO, Inc.

	
HZO

	
CA

	
1,498,148

	
10/1/2010

	  	  	
HZO, Inc.

	
HZO

	
CN

	
8881448

8881449

8881450

	
11/25/2010

11/25/2010

11/25/2010

	  	  	
HZO, Inc.

HZO, Inc.

HZO, Inc.

	
HZO

	
CO

	
10160571

10160573

10160576

	
12/21/2010

12/21/2010

12/21/2010

	  	  	
HZO, Inc.

HZO, Inc.

HZO, Inc.

	
HZO

	
EP

	
9416223

	
10/1/2010

	
009416223

	
3/1/2011

	
HZO, Inc.

	
HZO

	
HK

	
301734138

	
10/12/2010

	
301734138

	
3/30/2011

	
HZO, Inc.

	
HZO

	
IN

	
2034291

	
10/7/2010

	  	  	
HZO, Inc.

	
HZO

	
JP

	
76514/2010

	
9/30/2010

	
5393858

	
2/20/2011

	
HZO, Inc.

	
HZO

	
KR

	
2010-50922

	
10/4/2010

	  	  	
HZO, Inc.

	
HZO

	
MX

	
1137179

1137180

1137181

	
11/24/2010

11/24/2010

11/24/2010

	
1208476

1208477

1208478

	
3/24/2011

3/24/2011

3/24/2011

	
HZO, Inc.

HZO, Inc.

HZO, Inc.

	
HZO

	
ZA

	
2010/21909-11

	
9/30/2010

	  	  	
HZO, Inc.

	
HZO INSIDE

	
UNFILED

	  	  	  	  	  
	
WATER BEWARE

	
UNFILED

	  	  	  	  	  
	
WATER BLOCK

	
US

	
77/956,018

	
3/10/2010

	  	  	
HZO, Inc.

	
WATER BLOCKED

	
UNFILED

	  	  	  	  	  
	  	
UNFILED

	  	  	  	  	  
	  	
UNFILED

	  	  	  	  	  
	  	
UNFILED

	  	  	  	  	  

 

 

  

13

  

 

EXHIBIT C

HzO Patent Applications

 

	  	  	
Application or

	  	  	  
	
Country

	
Title

	
Patent No.

	
Filing Date

	
Issue

	
Assignee

	  	  	  	  	
Date

	  
	
US

	
METAL AND

	
61/124/797

	
10/23/2007

	
Expired

	
HzO, Inc.

	  	
ELECTRONIC

	  	  	  	  
	  	
DEVICE COATING

	  	  	  	  
	  	
PROCESS FOR

	  	  	  	  
	  	
MARINE USE AND

	  	  	  	  
	  	
OTHER

	  	  	  	  
	  	
ENVIRONMENTS

	  	  	  	  
	  	
USING A DUAL

	  	  	  	  
	  	
COATING

	  	  	  	  
	
US

	
ELECTRONIC

	
61/124/798

	
10/23/2007

	
Expired

	
HzO, Inc.

	  	
DEVICE COATING

	  	  	  	  
	  	
PROCESS FOR

	  	  	  	  
	  	
MARINE USE AND

	  	  	  	  
	  	
OTHER

	  	  	  	  
	  	
ENVIRONMENTS

	  	  	  	  
	
US

	
ELECTRONIC

	
61/124/802

	
09/05/2007

	
Expired

	
HzO, Inc.

	  	
DEVICE COATING

	  	  	  	  
	  	
PROCESS FOR

	  	  	  	  
	  	
MARINE USE AND

	  	  	  	  
	  	
OTHER

	  	  	  	  
	  	
ENVIRONMENTS

	  	  	  	  
	
US

	
METHOD AND

	
12/104,080

	
04/16/2008

	
Pending

	
HzO, Inc.

	  	
APPARATUS TO

	  	  	  	  
	  	
COAT OBJECTS

	  	  	  	  
	  	
WITH PARYLENE

	  	  	  	  
	  	
AND BORON

	  	  	  	  
	  	
NITRIDE

	  	  	  	  
	
US

	
METHOD AND

	
12/104,152

	
04/16/2008

	
Pending

	
HzO, Inc.

	  	
APPARATUS TO

	  	  	  	  
	  	
COAT OBJECTS

	  	  	  	  
	  	
WITH PARYLENE

	  	  	  	  
	  	
AND BORON

	  	  	  	  
	  	
NITRIDE

	  	  	  	  
	
                      WO

	
METAL AND

	
PCT/US2009/00

	
03/05/2009

	
Expired

	
HzO, Inc.

	  	
ELECTRONIC

	
1410

	  	  	  
	  	
DEVICE COATING

	  	  	  	  
	  	
PROCESS FOR

	  	  	  	  
	  	
MARINE USE AND

	  	  	  	  
	  	
OTHER

	  	  	  	  
	  	
ENVIRONMENTS

 

	  	  	  	  

 

 

  

14

  

 

 

	
US

	
METAL AND

	
12/988,103

	
10/15/2010

	
Pending

	
HzO, Inc.

	  	
ELECTRONIC

	  	  	  	  
	  	
DEVICE COATING

	  	  	  	  
	  	
PROCESS FOR

	  	  	  	  
	  	
MARINE USE AND

	  	  	  	  
	  	
OTHER

	  	  	  	  
	  	
ENVIRONMENTS

	  	  	  	  
	
TW

	
METAL AND

	
98107080

	
03/05/2009

	
Pending

	
HzO, Inc.

	  	
ELECTRONIC

	  	  	  	  
	  	
DEVICE COATING

	  	  	  	  
	  	
PROCESS FOR

	  	  	  	  
	  	
MARINE USE AND

	  	  	  	  
	  	
OTHER

	  	  	  	  
	  	
ENVIRONMENTS

	  	  	  	  
	
AU

	
METAL AND

	
2009258264

	
03/05/2009

	
Pending

	
HzO, Inc.

	  	
ELECTRONIC

	  	  	  	  
	  	
DEVICE COATING

	  	  	  	  
	  	
PROCESS FOR

	  	  	  	  
	  	
MARINE USE AND

	  	  	  	  
	  	
OTHER

	  	  	  	  
	  	
ENVIRONMENTS

	  	  	  	  
	
CA

	
METAL AND

	
Not yet assigned

	
03/05/2009

	
Pending

	
HzO, Inc.

	  	
ELECTRONIC

	  	  	  	  
	  	
DEVICE COATING

	  	  	  	  
	  	
PROCESS FOR

	  	  	  	  
	  	
MARINE USE AND

	  	  	  	  
	  	
OTHER

	  	  	  	  
	  	
ENVIRONMENTS

	  	  	  	  
	
CN

	
METAL AND

	
2009801224986

	
03/05/2009

	
Pending

	
HzO, Inc.

	  	
ELECTRONIC

	  	  	  	  
	  	
DEVICE COATING

	  	  	  	  
	  	
PROCESS FOR

	  	  	  	  
	  	
MARINE USE AND

	  	  	  	  
	  	
OTHER

	  	  	  	  
	  	
ENVIRONMENTS

	  	  	  	  
	
EP

	
METAL AND

	
09762789.7

	
03/05/2009

	
Pending

	
HzO, Inc.

	  	
ELECTRONIC

	  	  	  	  
	  	
DEVICE COATING

	  	  	  	  
	  	
PROCESS FOR

	  	  	  	  
	  	
MARINE USE AND

	  	  	  	  
	  	
OTHER

	  	  	  	  
	  	
ENVIRONMENTS

	  	  	  	  
	
IN

	
METAL AND

	
4282/KOLNP/20

	
03/05/2009

	
Pending

	
HzO, Inc.

	  	
ELECTRONIC

	
10

	  	  	  
	  	
DEVICE COATING

	  	  	  	  
	  	
PROCESS FOR

	  	  	  	  
	  	
MARINE USE AND

	  	  	  	  
	  	
OTHER

	  	  	  	  
	  	
ENVIRONMENTS

	  	  	  	  

 

 

  

15

  

 

 

	KR	METAL AND	10-2010-	03/05/2009	Pending	HzO, Inc.
	 	ELECTRONIC	7025728	 	 	 
	 	DEVICE COATING	 	 	 	 
	 	PROCESS FOR	 	 	 	 
	 	MARINE USE AND	 	 	 	 
	 	OTHER	 	 	 	 
	 	ENVIRONMENTS	 	 	 	 
	RU	METAL AND	2010146453	03/05/2009	Pending	HzO, Inc.
	 	ELECTRONIC	 	 	 	 
	 	DEVICE COATING	 	 	 	 
	 	PROCESS FOR	 	 	 	 
	 	MARINE USE AND	 	 	 	 
	 	OTHER	 	 	 	 
	 	ENVIRONMENTS	 	 	 	 
	 	 	 	 	 	 

 

 

 

16

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