Document:

exhibit_10-32.htm

 

Exhibit 10.32

 

LICENSE AGREEMENT

 

 

THIS LICENSE AGREEMENT (this “Agreement”), effective as of this 30 day of October, 2009 (“Effective Date”), by and between Sharecare, Inc.,
a Georgia corporation with offices located at 3350 Peachtree Road, Suite 1500, Atlanta, GA 30326 (hereinafter “Sharecare”), and each of ZoCo 1, LLC, a limited liability company organized under the laws of the State of Delaware and located at 110 N. Carpenter Street, Chicago, Illinois 60607-2146 (“ZoCo”), Discovery SC Investment, Inc., a corporation organized under the laws of
the State of Delaware and located at One Discovery Place, Silver Spring, Maryland 20910 (“Discovery”), HSW International, Inc., a company incorporated under the laws of the State of Delaware and located at One Capital City Plaza, Suite 1600, 3350 Peachtree Road, Atlanta, GA 30326 (“HSWI”), Oz Works, L.L.C. (“Oz”),
Arnold Media Group, LLC (“Arnold”) (ZoCo, Discovery, HSWI, Oz and Arnold may be referred to individually as a “Licensee” or collectively as the “Licensees”).

 

W I T N E S S E T H:

 

WHEREAS, each of the Licensees owns or controls certain assets that are valuable to Sharecare in the development and launch of its business, and such Licensees have agreed to contribute certain of such assets to Sharecare pursuant to various agreements between each of them and Sharecare;
and

 

WHEREAS, Sharecare will be developing certain proprietary technology for the operation of the Sharecare Site, and it has agreed to grant a limited license to such technology to each of the Licensees pursuant to the terms and conditions set forth in this Agreement.

 

NOW, THEREFORE, for and in consideration of the premises and of the mutual representations, warranties, covenants, agreements and conditions contained herein, the parties hereto agree as follows:

 

1. Definitions.

 

1.1 “Affiliates” shall mean, with respect to any person or entity, any other person or entity that, directly or indirectly, controls such individual or entity, is controlled
by such individual or entity or is under common control with such individual or entity.  For the purposes of this definition, “control” (including its derivatives, such as “controlling”, “controlled” and “common control”) shall mean the legal, beneficial or equitable ownership, directly or indirectly, of the majority of the voting rights in the shareholders meeting or in any other management bodies
of such entity, or effective control of the activities of such entity by contract or otherwise, or the right to elect the majority of the entity’s directors and/or officers.  Affiliates of any person or entity shall be deemed to be Affiliates of one another.  “Affiliates” shall mean with respect to a person that is an individual, any person who is an ancestor, descendant, sibling, spouse, or domestic partner of the person, or who is an ancestor, descendant or sibling of the
person’s spouse or domestic partner, or which is a trust, family limited partnership or family limited liability company formed for the benefit of the person or his or her Affiliates, in each case, including adoptive relationships.

 

1.2 “Business Day” means each Monday through Friday, other than national holidays.

 

1.3 “Change of Control” means, with respect to a Licensee or Sharecare, as applicable: (a) a change in the ownership of the Licensee whether by sale of equity, consolidation,
merger or otherwise, in any case in which holders of equity representing 50% or more of the voting power pre-transaction do not represent 50% or more of the voting power post-transaction; or (b) a sale of all or substantially all of the assets of the Licensee.

 

1.4 “Competing Business” shall have the meaning set forth in Section 2.3.

 

 

 

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1.5 “Confidential Information” shall have the meaning set forth in Section 4.

 

1.6 “Derivative Works” means any and all modifications, adaptations and derivative works of the Technology to the extent they incorporate, are based on or derive from
the Technology that is the subject of the licenses granted to Licensee and its Affiliates hereunder, including source code modifications that correct defects or bugs or facilitate the extensibility of the Technology to other software, software services, programs, applications or features.

 

1.7 “Documentation” shall mean any technical and informational material relative to the implementation and
use of the Technology, including any Derivative Works thereof, including full descriptions of the source code, functional specifications, interfaces, systems architecture, diagrams, flow charts, descriptions of processes and methodologies, operating manuals, training manuals and maintenance texts, drawings, pictures, graphics, plans, and other data related thereto.

 

1.8 “Intellectual Property” shall mean any Licensee’s Intellectual Property, the Sharecare Intellectual Property, or both, as applicable in the context.

 

1.9 “Intellectual Property Rights” shall mean all proprietary rights and other rights of ownership recognized
under law in works of authorship and other tangible and intangible materials, including without limitation, copyright, patent, trademark, trade name, trade dress, service mark, mask work, know-how, and trade secret, and all rights of registration and renewal.

 

1.10 “Licensee Entity” shall mean with respect to a Licensee, those specific entities or business generally described by it on Exhibit
A attached hereto, and any other legal entity in which a Licensee has control (as defined in the definition of Affiliates above).

 

1.11 “Licensee Proprietary Works” shall mean any and all software, computer systems, engineered equipment, programs, applications, features, functionality, their parts,
components, modules and peripherals, including technical materials and Documentation relating thereto, developed by or on behalf of a Licensee or its Affiliates, regardless of whether they operate or interact with the Technology or any Derivative Works thereof.

 

1.12 “Licensee Upgrade Request Period” shall have the meaning set forth in Section 2.2.

 

1.13 “Representatives” shall have the meaning set forth in Section 4.

 

1.14 “Restrictions” shall have the meaning set forth in Section 2.3.

 

1.15 “Sharecare Derivative Works” shall have the meaning set forth in Section 2.2.

 

1.16 “Sharecare Derivative Works License” shall have the meaning set forth in Section 2.2.

 

1.17 “Sharecare Intellectual Property” shall have the meaning set forth in Section 3.

 

1.18 “Sharecare Site” shall mean the top level domain web site developed and owned by Sharecare for the creation, aggregation and distribution of digital health and wellness
information, content, tools and other features via Internet protocol.

 

1.19 “Technology” shall mean the proprietary software (including scripts, schemas, queries, executables and object and source code), programs, business processes and
methodologies developed and owned by Sharecare and deployed into production as the technical platform for the Sharecare Site, including any and all Documentation related thereto and all Intellectual Property Rights therein, but expressly excluding the “look and feel” elements of the Sharecare Site, and any content contained thereon.

 

1.20 “Technology License” shall have the meaning set forth in Section 2.1.

 

 

 

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1.21 “Third Party Software” means that software and those computer systems, software services, programs, applications and features and their parts, components, modules
and peripherals, including Documentation thereto owned by a third party and provided to Licensee or Sharecare for use pursuant to a license.

 

2. License Grants.

 

2.1 Technology License.  As of the Effective Date, Sharecare hereby grants to each Licensee at no cost to Licensee a perpetual, fully paid, royalty-free, worldwide, non-transferable,
non-exclusive, quitclaim license for Licensee and its Affiliates (subject to the Restrictions) to (a) use, reproduce, adapt, distribute, and publicly perform and display the Technology and all Documentation related thereto in connection with its and their operation of their respective businesses, and (b) sublicense the rights and licenses granted in Section 2.1(a) to any Licensee Entity (the “Technology
License”).  For the sake of clarity, the Technology License shall continue in full force and effect upon any sale, transfer or other disposition of all or part of a Licensee's interest in any Licensee Entity such that the Licensee Entity can continue to use the Technology and Documentation thereafter in accordance with the foregoing license including following the expiration or termination of this Agreement.  Sharecare agrees to simultaneously deliver to each Licensee the production
version of the Technology promptly following the commercial launch of the Sharecare Site.  Without limiting the generality of the foregoing, the Technology License shall expressly include the right to (i) modify and adapt the Technology to create Derivative Works thereof, and (ii) use and combine the Technology with other products and materials, in each case for use by Licensee and its Affiliates consistent with the scope and purpose of the Technology License.  Licensee and its Affiliates
will have the right to exercise any and all of the foregoing rights through the use of subcontractors solely for the purpose of providing services to such Licensee and its Affiliates, in each case consistent with the scope and purpose of the Technology License.  The parties hereby agree that the Technology License is fully conditioned upon each Licensee’s agreement with the following: (A) Sharecare makes no representations or warranties of any kind or nature in connection with the Technology and
related Documentation and expressly disclaims the same, (B) Sharecare shall have no obligation with respect to the Technology and related Documentation, and (C) any use by Licensee or its Affiliates or exercise of any other right granted to Licensee with respect to  the Technology and related Documentation shall be solely at its and their own risk.  It is expressly understood and agreed that the Technology shall not include any Third Party Software.

 

2.2 Sharecare Derivative Works.  Each Licensee shall have the right to request, by delivery of written notice to Sharecare, all then-existing Derivative Works of the Technology
developed by or on behalf of Sharecare (“Sharecare Derivative Works”), if any, no more than once every six months for a period of five (5) years following the Effective Date (the “Licensee Upgrade Request Period”).  Upon receiving the request, Sharecare will provide the Sharecare Derivative Works and related Documentation
to such Licensee at the cost of such Licensee in a form and format mutually agreed by the Licensee and Sharecare, and Sharecare will grant to the Licensee a perpetual, fully paid, royalty-free, non-exclusive, non-transferable, worldwide quitclaim right and license for such Licensee and its Affiliates (subject to the Restrictions) to (a) use, reproduce, adapt, distribute, and publicly perform and display the Sharecare Derivative Works and all Documentation related thereto in connection with its and their operation
of their respective businesses, and (b) sublicense the rights and licenses granted in Section 2.2(a) to any Licensee Entity (the “Sharecare Derivative Works License”).  Without limiting the generality of the foregoing, the Sharecare Derivative Works License shall
expressly include the right to (i) modify and adapt the Sharecare Derivative Works to create Derivative Works thereof, and (ii) use and combine the Sharecare Derivative Works with other products and materials, in each case for use by Licensee and its Affiliates consistent with the scope and purpose of the Sharecare Derivative Works License.  Nothing in this Agreement shall obligate Sharecare to create or develop any Sharecare Derivative Works.  Licensee and its Affiliates will have the right
to exercise any and all of the foregoing rights through the use of subcontractors solely for the purpose of providing services to such Licensee and its Affiliates, in each 

 

 

 

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case consistent with the scope and purpose of the Sharecare Derivative Works License.  The parties hereby agree that the Sharecare Derivative Works License is fully conditioned upon each Licensee’s agreement with the following: (A) Sharecare makes no representations or warranties of any kind or nature in connection with the Sharecare
Derivative Works and related Documentation, and expressly disclaims the same, (B) Sharecare shall have no obligation with respect to the Sharecare Derivative Works and related Documentation, and (C) any use by Licensee or its Affiliates or exercise of any other right granted to Licensee with respect to the Sharecare Derivative Works and related Documentation shall be solely at its and their own risk.  It is expressly understood and agreed that the Sharecare Derivative Works shall not include any Third
Party Software.

 

2.3 Restrictions.  Notwithstanding the rights granted to each Licensee under the Technology License and the Sharecare Derivative Works License, no Licensee or Licensee
Entity shall have the right to use the Technology or the Sharecare Derivative Works, in whole or in part, directly or indirectly, in or for the benefit of a Competing Business (“Restrictions”).  A “Competing Business” shall be defined as any business involved in the creation, aggregation, archiving, hosting or distribution of health and wellness information and content.

 

2.4 Third Party Software.  Each Licensee shall be solely responsible for obtaining and maintaining at its sole cost any and all Third Party Software necessary or desirable
for operation of the Technology, including any Sharecare Derivative Works thereof.

 

2.5 Change of Control.  If a Sharecare Change of Control occurs at any time during the Licensee Upgrade Request Period, Sharecare’s obligations under Section
2.2 shall automatically terminate as to both Sharecare and its successor in interest.  The obligations of the other parties to this Agreement shall continue in full force and effect to the extent they use the Technology or the Sharecare Derivative Works.

 

2.6 Notice of Infringement.  The parties agree to promptly notify each other of any actual or suspected infringement (i) of their respective interests in and to the Technology
or Derivative Works and any Intellectual Property Rights therein by any third party of which they become aware, or (ii) by the Sharecare Intellectual Property on the Intellectual Property Rights of any third party of which they become aware.  Upon any notice given pursuant to clause (ii) above, Sharecare may terminate the License granted to the Licensees hereunder solely as necessary to satisfy its obligations and/or mitigate any continuing liability for potential damages under applicable law. Each
Licensee shall fully indemnify and hold Sharecare harmless from and against any third-party claims and damages associated with such Licensee’s own continued use of the subject Sharecare Intellectual Property after such notice, but Sharecare agrees to waive any claims or damages (of any type or nature other than in connection with third party claims) it may have under this Agreement in connection with such continued use.

 

2.7 Licensee Intellectual Property.  Sharecare acknowledges and agrees that this Agreement does not confer to Sharecare, and Sharecare shall not acquire any right or license
to use, any Licensee Intellectual Property whatsoever under this Agreement.

 

2.8 Proprietary Notices; Protection.  Each party agrees that neither it nor its Affiliates with rights under
this Agreement will remove, alter or obscure, or allow any person to remove, alter or obscure, any copyright, trademark or other proprietary rights notices of the other party on, stated in or affixed to the materials of the other party, including the Sharecare Intellectual Property and any Licensee’s Derivative Works.  Any proprietary, restrictive or copyright notice included with or affixed to such materials must be reproduced or included in any whole or partial copies that are made.

 

3. Ownership.  Each Licensee acknowledges and agrees that all right, title and interest in and to, and ownership of, including all Sharecare Intellectual Property Rights,
the Technology, the Sharecare Derivative Works, and the Documentation related thereto (such Sharecare Derivative Works are referred to collectively with the Technology and the Documentation related to both as “Sharecare Intellectual 

 

 

 

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Property”) shall at all times remain solely and exclusively with Sharecare, and neither this Section 3 nor any Licensee’s exercise of the licenses granted to it herein shall be construed as giving Licensee any right of any kind with respect thereto, except
as expressly authorized hereunder.  Sharecare specifically reserves its rights in and to the Sharecare Intellectual Property not expressly licensed to Licensees in Section 2.  Further, each Licensee acknowledges and agrees that neither Section 2 nor Licensee’s exercise of the licenses granted to it herein with respect to the Sharecare Intellectual Property
shall be construed as giving any Licensee any ownership interest in Sharecare’s business or its Intellectual Property Rights therein, and each Licensee understands that it shall have no ownership rights whatsoever with respect thereto under this Agreement.

 

4. Confidentiality.  Except as and to the extent required by law, no party will disclose, and will direct its representatives not to disclose other than as permitted herein,
any Confidential Information (as defined below) with respect to the business of the other party furnished, or to be furnished, by or through such party, or their respective Representatives to the other party or its Representatives at any time or in any manner other than disclosures to directors, employees or agents (collectively, such party’s “Representatives”) on a need-to-know basis.  For purposes of this section, “Confidential
Information” means any proprietary or non-public information, including trade secrets, about a party or its business or activities, whether or not specifically identified as such, and the terms of this Agreement.  For purposes of this Agreement, Confidential Information shall only include information disclosed in connection with this Agreement and Confidential Information shall not include information disclosed to a party pursuant to any other agreement between the parties, or in any other
capacity, including without limitation, to a Representative of a Licensee as a director of Sharecare.  Disclosure of Confidential Information to Representatives of the parties hereto will be limited to a need to know basis under circumstances where the Representative is advised of the confidential nature of the disclosure and is advised to keep said information confidential.  Notwithstanding the foregoing, the following information shall not be deemed Confidential Information: (a) information
that is already known to the recipient party or its Representatives or to others not known to the recipient party to be bound by a duty of confidentiality prior to disclosure; (b) information that becomes publicly available through no fault of the recipient party or its Representatives; (c) information that is independently developed by a party without the use of or reference to the Confidential Information of the other party; or (d) information that properly comes into the recipient party’s possession
from a third party who is not known by the recipient party to be under an obligation to maintain the confidentiality of such information.  Notwithstanding anything contained herein, it shall not be a breach of this provision for any party to disclose Confidential Information pursuant to any applicable subpoena or other legal or regulatory process or to its stockholders pursuant to regulatory requirement so long as the recipient party notifies the disclosing party prior to making such disclosure.  Upon
the written request of the disclosing party, the recipient party will promptly return to the disclosing party or destroy any Confidential Information in its possession and certify in writing to the disclosing party that it has done so.  Notwithstanding any other provision of this Paragraph, any party may, for purposes of filing legally required documents in connection with any SEC or other regulatory requirements, disclose the terms of this Agreement to the extent required by the applicable laws; however,
all parties agree to use reasonable best efforts to secure confidential treatment for any economic or other sensitive terms prior to such disclosure.  Each party shall be responsible for any disclosure by its Representatives in violation of the terms of this Agreement.  Without limiting the generality of the foregoing, each party shall treat the Intellectual Property of each other party, all information relating to the Intellectual Property of each other party, and the terms of this Agreement
as strictly confidential to that party.

 

5. Limitation of Damages.  EXCEPT TO THE EXTENT ARISING OUT OF A THIRD-PARTY
CLAIM INDEMNIFIED PURSUANT TO SECTION 2.6, NEITHER SHARECARE NOR ANY LICENSEE SHALL BE LIABLE TO THE OTHER PARTY FOR ANY LOSS OF PROFITS OR ANY INCIDENTAL, CONSEQUENTIAL, SPECIAL, PUNITIVE, INDIRECT, DELAY OR ECONOMIC 

 

 

 

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DAMAGES WHATSOEVER (INCLUDING ANY DAMAGES FOR LOSS OF REVENUES, BUSINESS INTERRUPTION, LOSS OF BUSINESS INFORMATION, OR OTHER PECUNIARY LOSS) ARISING OUT OF OR RELATED TO THE TECHNOLOGY, DERIVATIVE WORKS AND DOCUMENTATION OR THIS AGREEMENT, WHETHER ARISING IN CONTRACT, TORT OR UNDER ANY OTHER LEGAL THEORY (INCLUDING, WITHOUT LIMITATION, NEGLIGENCE OR STRICT LIABILITY), OR FOR ANY CLAIM
MADE AGAINST THE OTHER PARTY BY A THIRD PARTY, EVEN IF IT WAS ADVISED OF THE POSSIBILITY OF SUCH DAMAGE OR CLAIM.

 

6. Mutual Representations and Warranties.

 

6.1 Authorization.  Sharecare on the one hand, and each Licensee, on the other hand, represents to the other that it has full power, capacity and authorization to enter
into this Agreement, grant the rights granted to the other party hereunder, and to perform its duties and obligations hereunder.  No further act is necessary to authorize the execution and the fulfillment of this Agreement by the party.  This Agreement, properly executed by each of the parties, will constitute the legal and valid obligation of such party and will be enforceable against it in accordance with the terms set forth herein.

 

6.2 Validity.  Sharecare on the one hand, and each Licensee, on the other hand, represents to the other that it is legally constituted, its corporate acts have been practiced
pursuant to the applicable corporations laws, it is valid and existing pursuant to the applicable laws, and it is qualified to conduct its business as it is now conducted, possessing the administrative and governmental authorization necessary to carry out its activities.  Sharecare on the one hand, and each Licensee, on the other hand, represents to the other that all the corporate acts practiced by it were properly authorized, and it has not practiced any act that constituted or resulted in violation
of any of its articles, bylaws or governing documents.

 

6.3 No Conflict.  Each party agrees that the signature of this Agreement by it (a) does not conflict, violate or infringe in any way, or constitute or cause default (or
event that when notified or having its deadline expired, or both, results in a event of default), generate the right to terminate, amend, suspend, revoke or cancel any agreements, permissions or other instruments or understandings of which such party is a party to, including any agreement not to compete; (b) does not violate any disposition of law, decree, norm or ruling, administrative or judicial order to which such party is subject, except if the effect of such violation is not relevant for the operations
established in this Agreement; (c) does not require or shall not require any consent, approval or authorization from, notice to, or filing with any individual or entity, court or governmental authority; and (d) shall not result in the creation of any burden or encumbrance over any of its assets.

 

7. Disclaimer.  THE TECHONOLOGY AND SHARECARE DERIVATIVE WORKS ARE PROVIDED "AS IS" AND
EACH LICENSEE, ITS AFFILIATES, SUBLICENSEES AND ITS AND THEIR SUCCESSORS AND ASSIGNS EXPRESSLY ASSUME ALL LIABILITY AND RISK WITH RESPECT THERETO AND SHARECARE SHALL HAVE NO LIABILITY IN CONNECTION THEREWITH.  ALL WARRANTIES AS TO THE TECHNOLOGY, SHARECARE DERIVATIVE WORKS AND DOCUMENTATION, WHETHER STATUTORY, EXPRESS OR IMPLIED, INCLUDING ALL WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NONINFRINGEMENT, OR ERROR-FREE OPERATION ARE DISCLAIMED IN THEIR ENTIRETY BY SHARECARE.

 

8. Miscellaneous.

 

8.1 Assignment.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, Affiliates, personal representatives, successors
and assigns.  Sharecare and each Licensee may assign this Agreement and its rights hereunder to (a) any entity that acquires all or substantially all of its assets, (b) any Affiliate of said party, or (c) a successor entity in a merger or 

 

 

 

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acquisition of said party; provided, that, any such assignment by a Licensee shall be expressly subject to the restrictions set forth in Section 2.3.

 

8.2 Governing Law.  All rights, duties and obligations arising under or related in any manner to the subject matter of this Agreement, as well as the parties’ relationship
under this Agreement, shall be governed, construed and enforced in accordance with the laws of the State of Delaware, without regard to its conflict of law principles.

 

8.3 Injunctive Relief.  Each party retains its right to file to seek relief from any court of competent jurisdiction to obtain a temporary restraining order, preliminary
injunction or other equitable relief in order to prevent immediate and irreparable injury, loss or damage arising from a breach by any other party of its obligations under this Agreement.

 

8.4 Course of Dealing.  No course of dealing on the part of any party, nor any failure or delay by any party with respect to exercising any of its rights, powers or privileges
under this Agreement or law shall operate as a waiver or novation thereof.  No waiver by a party of any condition or the breach of any provision of this Agreement in any instance shall be deemed a further or continuing waiver of the same or any other condition or provision.

 

8.5 Headings.  The headings that appear in this Agreement are inserted for convenience only and do not limit or extend its scope.

 

8.6 Entire Agreement.  This Agreement constitutes the entire understanding of the parties with respect to its subject matter, and all prior agreements and understandings
relating to that subject matter are superseded and canceled in their entirety.

 

8.7 Conflict.  If there is a conflict between this Agreement and any law, the part of this Agreement that is affected shall be curtailed only to the extent necessary to
bring it within the requirements of that law.

 

8.8 Notices.  All notices, requests, demands, claims and other communications hereunder shall be in writing.  Any notice, request, demand, claim, or other communication
hereunder shall be deemed duly given: (a) if personally delivered, when so delivered; (b) if mailed, five (5) Business Days after having been sent by first class, registered or certified U.S. mail, return receipt requested, postage prepaid and addressed to the intended recipient as set forth below; (c) if given by telecopier, once such notice or other communication is transmitted to the telecopier number specified below, provided that: (i) the sending telecopier generates a transmission report showing successful
completion of such transaction; and (ii) such notice or other communication is promptly thereafter mailed in accordance with the provisions of clause (b) above or sent by nationally-recognized overnight delivery service in accordance with clause (d) below, and provided, further, that if such telecopy is sent after 5:00 p.m. local time at the location of the receiving telecopier, or is sent on a day other than a Business Day, such notice or communication shall be deemed given as of 9:00 a.m. local time at such
location on the next succeeding Business Day; or (d) if sent through a nationally-recognized overnight delivery service that guarantees next day delivery, the Business Day following its delivery to such service in time for next day delivery.  All notices shall be sent to the applicable party or parties at the address set for forth above.

 

8.9 Counterparts.  This Agreement may be executed simultaneously in counterparts (including by way of electronic transmission), each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument.

 

8.10 Amendment.  This Agreement may only be modified by written agreement of the parties.

 

 

[Signatures are on the following page]

 

 

  

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Signature Page to the Sharecare, Inc.

License Agreement

 

IN WITNESS WHEREOF, the parties by their duly authorized representatives have executed this Agreement effective as of the Effective Date first written above.

 

 

SHARECARE, INC.

 

 

	By: 	/s/ Colin Daniel
	 	 
	Name:  	Colin Daniel 
	 	 
	Title:  	Vice President, Finance 

 

         

 

 

  

  

  

Signature Page to the Sharecare, Inc.

License Agreement

 

IN WITNESS WHEREOF, the parties by their duly authorized representatives have executed this Agreement effective as of the Effective Date first written above.

 

 

LICENSEE:

 

DISCOVERY SC INVESTMENT, INC.

 

 

	By: 	/s/ James A. Rosenstock
	Name:  	James A. Rosenstock
	Title:  	Senior Vice President, Corporate Development

 

 

  

  

  

Signature Page to the Sharecare, Inc.

License Agreement

 

IN WITNESS WHEREOF, the parties by their duly authorized representatives have executed this Agreement effective as of the Effective Date first written above.

 

 

LICENSEE:

 

HSW INTERNATIONAL, INC.

 

 

	By: 	/s/ Bradley T. Zimmer
	Name:  	Bradley T. Zimmer
	Title:  	Vice President & General Counsel

 

 

  

  

  

Signature Page to the Sharecare, Inc.

License Agreement

 

IN WITNESS WHEREOF, the parties by their duly authorized representatives have executed this Agreement effective as of the Effective Date first written above.

 

 

LICENSEE:

 

ZOCO 1, LLC

 

 

	By: 	/s/ Tim Bennett
	Name:  	Tim Bennett
	Title:  	Vice President and Secretary

 

 

 

  

  

  

Signature Page to the Sharecare, Inc.

License Agreement

 

IN WITNESS WHEREOF, the parties by their duly authorized representatives have executed this Agreement effective as of the Effective Date first written above.

 

 

LICENSEE:

 

OZ WORKS, L.L.C.

 

 

	By: 	/s/ Mehmet Oz
	Name:  	Mehmet Oz, M.D.
	Title:  	Vice President

 

 

  

  

  

Signature Page to the Sharecare, Inc.

License Agreement

 

IN WITNESS WHEREOF, the parties by their duly authorized representatives have executed this Agreement effective as of the Effective Date first written above.

 

 

LICENSEE:

 

ARNOLD MEDIA GROUP, LLC

 

 

	By: 	/s/ Jeffrey T. Arnold
	Name:  	Jeffrey T. Arnold
	Title:  	Manager

 

 

 

 

  

  

  

EXHIBIT A

 

LICENSEE ENTITIES

 

 

Without limiting the generality of the Agreement, the parties agree that each of the businesses generally described below shall be considered a Licensee Entity with respect to that Licensee:

 

 

Arnold:  The 2006 Arnold Family Trust, The Five Star Travel Corporation, Flexplay Technologies, Inc., and Modo Sports, LLCExclusive Territory Distribution Agreement

EXHIBIT 10.16

Exclusive Territory Distribution Agreement

This agreement (the “Agreement”) is entered into as of May 26, 2009 (the “Effective Date”), by and between Nutra Pharma Corporation (hereinafter known as “Nutra”) with principal offices located at, 791 Park of Commerce Blvd, Suite 300, Boca Raton, Florida, 33487. and XenaCare Holdings (hereinafter known as “XenaCare”) with principal offices located at 14000 Military Trail, Suite 104, Delray Beach, Florida, 33484. The parties are sometimes referred to collectively herein as the “Parties” and individually as a “Party.” 

1. 

APPOINTMENT.  Nutra hereby appoints XenaCare as Nutra’s Exclusive US Distributor and grants XenaCare the right to sell Cobroxin formulations as described in Attachment 1 (the "Products") in the United States (the "Territory") on the terms and conditions hereinafter set forth; provided, however, that in the event XenaCare does not meet the performance standards set forth in paragraph 3.03 of this Agreement, Nutra reserves the right to cancel this Appointment. Under such condition, XenaCare may continue sale of Products provided by Nutra but will not retain any exclusive Territorial rights. 

1.01 Nutra also reserves the sole right to market the Products outside of the US. Nutra further agrees to direct all inquiries from the Territory to XenaCare.

1.02 In the event that XenaCare has the opportunity to market or distribute the Products outside of the Territory, they will inform Nutra of this opportunity and will reserve first rights to market in the new areas. If Nutra has already contracted another exclusive distributor in this new Territory, XenaCare would then deal directly with that Distributor; thus honoring the contractual exclusivity in the new Territory.

 

2. 

XENACARE'S DUTIES.  XenaCare agrees to use its best efforts in marketing the Products in the Territory. In order to develop the full sales potential of the Territory, XenaCare agrees that it will perform at its expense the following duties to Nutra's satisfaction:

2.01 PROMOTION AND MARKETING. XenaCare thru third party associates will engage in or arrange sales promotion activities in the Territory by means reasonably calculated to reach current and potential customers to include but not limited wholesale to retail outlets, direct retailing, television and radio (infomercial sales) and internet related sales specific to the Territory.

 

2.02 INVENTORY. After initial trial orders, XenaCare thru third party associates will purchase and maintain an inventory of Products adequate to service customer requirements in the Territory. 

2.03 COORDINATION. XenaCare will coordinate its sales efforts with Nutra. To this end, XenaCare will (a) effectively and promptly follow up leads and referrals Nutra provides; (b) convey to Nutra any information which may be of value to Nutra that may come to XenaCare's attention concerning market conditions, competition, pricing, etc.

 

2.04 GENERAL CONDUCT. The Parties will at all times conduct their businesses in a manner as will reflect favorably on each other and on the Products, and will not engage in any deceptive, misleading, illegal, or unethical business practice. XenaCare specifically agrees to avoid making claims of efficacy against certain diseases, or any other claim or selling technique which is improper or illegal under Law. 

 

2.05 RECORD KEEPING. XenaCare shall establish and maintain records of its sales in sufficient detail to permit identification and destination of each of the Products sold by XenaCare. 

3. 

PURCHASE OF PRODUCTS 

 

3.01 PURCHASE ORDERS. In order to purchase the Products XenaCare shall deliver to Nutra a purchase order (by telephone, online, or by other reasonable and mutually accepted method) specifying in reasonable detail the types, and quantities, of the Products ordered. No purchase order shall be binding upon Nutra until accepted 

(by telephone, online, or by other reasonable and mutually accepted method) by Nutra. All purchase orders must assume a minimum six-week lead time for product production.

3.02 PRICES. The prices and minimum order quantities for each of the Products applicable to XenaCare are shown in Attachment 1. All prices for Product will be quoted FOB point of manufacture or XenaCare designee per individual Purchase Order. Because the cost of raw materials, packaging and labor are subject to change at any time, all such prices and minimum order quantities are subject to change by Nutra at its sole discretion on thirty (30) days' written notice, and any such change shall apply to purchase orders Nutra receives after the effective date thereof. 

3.03 MINIMUM PERFORMANCE STANDARDS. In order for XenaCare to remain an Exclusive Distributorship from Nutra in the Territory, XenaCare shall order and pay for Products having a minimum aggregate net price (not including freight, insurance, duties or taxes, and reduced by returns and allowances) One Hundred, Eighty Thousand US dollars (USD $180,000.00) in each three (3) month period, beginning six (6) months, commencing on June 15, 2009. If XenaCare does not meet the performance standards set forth in this paragraph 3.03, Nutra shall have the right to renegotiate or terminate the Appointment created under this Agreement.  

4. 

TERM AND RENEWAL; TERMINATION 

4.01 TERM AND RENEWAL. The term of this Agreement shall be for a period of five years from the effective date hereof and shall be renewed automatically for consecutive five-year renewal terms unless and until this Agreement is terminated pursuant to Section 3.03 or 4.02 

4.02 TERMINATION FOR DEFAULT. Any material breach of this Agreement by either party shall constitute a default if not cured within twenty (30) days after written notice of such breach is given. Upon unresolved default by either party, the other party may terminate this Agreement on ten (10) days' written notice only through recognized written communication (certified mail, email with delivery recipient receipt or hand delivered letter).  

                                                                        

4.03 EFFECT OF TERMINATION. Upon termination, XenaCare shall lose any exclusive Territorial Rights in the Territory, and neither party shall have any further rights against the other except for money owed and such other rights as by their nature must survive termination of the Agreement.  

5. 

SALES MATERIALS, TRADEMARKS, AND MARKINGS 

 

5.01 SALES MATERIALS. Both parties to this Agreement will make a best effort to aid the other in maintaining legal, complete and effective marketing material, however, XenaCare shall be fully responsible for compliance, production and supply of all marketing and sales material as required by law in the Territory.  

5.02 PRODUCT LABELS.  If requested by XenaCare for specific and designated markets Nutra will supply products to XenaCare with appropriate product labels providing information in compliance with the applicable laws and regulations of Territory.  

 6. 

TERMS AND CONDITIONS 

6.01 SHIPMENT. Products shall be available for will call pick-up within five business days of a purchase order delivery date. All shipments hereunder will be made in Nutra's standard shipping packages to XenaCare at XenaCare's address as instructed in each Purchase Order. Title and risk of loss to the Products purchased under this Agreement shall pass to XenaCare upon delivery thereof to the carrier or warehouse as so designated by XenaCare. 

 

6.02 ACCEPTANCE. XenaCare shall inspect all Products promptly upon receipt thereof at the shipping destination and may reject any goods which fail in any significant respect to meet XenaCare's acceptance specifications. Products not rejected by written notice to Nutra within twenty (20) days of receipt shall be deemed to have been accepted. Rejected Products shall be returned freight prepaid to Nutra ten (10) days of the date on which Nutra authorizes return. As promptly as possible, but not later than thirty (30) days after receipt by Nutra of properly rejected goods, Nutra shall replace said properly rejected goods. Nutra will prepay transportation charges back to XenaCare and shall reimburse XenaCare for any costs of transportation incurred by XenaCare in connection with the return to Nutra of properly rejected goods; otherwise, XenaCare shall pay transportation charges in both directions. 

6.03 PAYMENT. Payment for products shall be made in U.S. dollars as follows: 

 

- 25% payment upon product delivery

- Net 30 terms for the remaining 75% from date of delivery

6.03 TAXES. XenaCare shall bear all applicable federal, prefectural, municipal, and other government taxes (such as sales, use, value added, or any similar taxes); all customs duties, imposts, and similar charges; and all personal property taxes assessable on the Products after delivery to XenaCare or its assign(s). 

6.04 WARRANTY. Nutra warrants to XenaCare for a period of one- hundred-eighty (180) days from the date of original shipment to XenaCare that the Products delivered by Nutra to XenaCare pursuant to this Agreement shall be free from defects in materials and workmanship. Nutra's obligation under this warranty is limited to replacing the Products that within the warranty period are returned to Nutra and that are found by Nutra to be defective in proper usage. XenaCare shall prepay transportation charges to Nutra's factory. If returned Products are replaced under terms of this warranty, Nutra will prepay transportation charges in both directions. 

THE FOREGOING WARRANTIES ARE IN LIEU OF ALL WARRANTIES, EITHER EXPRESSED OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, AND OF ANY OTHER OBLIGATION ON THE PART OF COMPANY. 

6.05 INSURANCE AND LIMITATION OF LIABILITY. Each of the parties hereby warrants that it has Product Liability Insurance sufficient to cover any and all claims that may arise related to their activities under this Agreement. Coverage is warranted to be at least the industry standard of $5,000,000 in the aggregate.

7. 

MISCELLANEOUS 

7.01 INDEPENDENT CONTRACTOR. XenaCare is an independent contractor and not an agent or employee of Nutra, and will not hold itself out as, or give any person reason to believe that it is, an agent or employee of Nutra. As an independent contractor, XenaCare will not make any representations or warranties of any kind on behalf of Nutra. XenaCare agrees to indemnify and hold Nutra harmless from and against any and all claims, liabilities, and damages arising out of breach of this provision by, or otherwise attributable to any act or omission of, XenaCare, its agents or employees. 

7.02 ASSIGNMENT. It is understood that XenaCare will be sub-licensing this agreements authority and obligations to associate organization/individuals in the Territory.

7.03 NO WAIVER. Failure by either party to this Agreement at any time or from time to time to enforce any of the provisions of this Agreement shall not be construed to be a waiver of such provision or of such party's right to thereafter enforce each and every provision hereof. 

7.04 GOVERNING LAW. The rights and obligations of the parties under this agreement shall be governed by the laws of the State of Florida, United States of America, excluding its conflict of laws principles. 

7.05 NEGOTIATIONS. In the event questions arise regarding the interpretation or performance of this Agreement, the parties agree to cooperate in resolving such questions through good-faith negotiations. 

7.06 ARBITRATION. All disputes, controversies, claims or differences which may arise between the Parties hereto, out of or in relation to or in connection with this Agreement, and which are not successfully resolved through good faith negotiations as described in 7.05 above, shall be finally settled by arbitration. The place of arbitration shall be Florida and the award rendered by the arbitrator(s) shall be final and binding upon the Parties. 

7.07 LANGUAGE. This Agreement is in the English language only, which language shall be controlling in all respects, and all versions hereof in any other language shall be for accommodation only and shall not be binding upon the parties hereto. All formal notices made or given pursuant to this Agreement shall be in the controlling language. 

7.08 CONFIDENTIAL INFORMATION. Both Parties agree not to disclose to any person outside of its employ or use for any purpose other than to fulfill its obligations under this Agreement, any information concerning customers or markets outside the Territory or the composition, formula, or development of any of the Product which is disclosed in confidence and which is not otherwise publicly available. The foregoing obligation as to confidentiality and non-use shall survive any expiration or termination of this Agreement. Additionally, this Agreement is considered a confidential document and may not be distributed outside the parties. 

7.09 FORCE MAJEUR. If the performance of this Agreement or any obligation under this Agreement, except the making of payments, is prevented, restricted, or interfered with by reason of fire, flood, earthquake, explosion, 

or other casualty or accident, strikes or labor disputes, inability to procure parts, supplies, or power, war or other violence, any law, order, proclamation, regulation, ordinance, demand, or requirement of any government agency, or any other act or condition whatsoever beyond the reasonable control of the affected party, the party so affected, upon giving prompt notice to the other party, is excused from performance to the extent of the prevention, restriction, or interference; provided, however, that the party affected must take all reasonable steps to avoid or remove the causes of nonperformance and must resume performance under this Agreement with dispatch whenever the causes are removed. 

7.10 ENTIRE AGREEMENT. This Agreement supersedes and cancels all prior agreements, if any, between the parties and shall not be amended, altered, or changed except by a written agreement signed by both parties. 

7.11 HEADINGS. The section headings used in this Agreement are for convenience only and are not a part of this Agreement and do not in any way limit or amplify the terms and provisions of this Agreement. 

7.12 NOTICES. All notices hereunder shall be in writing and shall be sent by courier services or by registered or certified air mail and by First Class Mail, postage prepaid, to the parties hereto at their respective addresses specified herein, subject to the right of either party to change its address by written notice. 

7.13 COUNTERPARTS. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 

IN WITNESS WHEREOF, the parties have executed this Agreement to be effective as of the Effective Date. 

Nutra – Nutra Pharma Corporation

By: /s/ Rik Deitsch 

Chief Executive Officer

Date: May 26, 2009

Xenacare Holdings, Inc.

By:/s/ Frank W. Rizzo

President

Date: May 26, 2009

Attachment 1 

The Products

(Cobroxin-Oral)

FORMULA

1oz bottle:

		
	Cobra Venom

	4x

	 
	 

	Natural flavoring

	 

	Natural preservatives

	 

(Cobroxin-Topical)

FORMULA

One 2oz tube contains:

		
	Cobra Venom

	4x

	 
	 

	Natural emulsifiers

	 

	Natural preservatives

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