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[*] CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED
PORTIONS. 

CONFIDENTIAL  

EXHIBIT 10. 11  

 
 

ETHANOL MARKETING AGREEMENT    
    

This
Ethanol Marketing Agreement ("Agreement") is made and entered into as the 22nd day of February 2005 by and between Aventine Renewable Energy, Inc., a Delaware
corporation ("AREI) and VeraSun Fort Dodge, LLC, a Delaware corporation ("VeraSun Fort Dodge"). 

In
consideration of the mutual terms and conditions contained herein, the Parties agree as follows: 

	1.
	Terms and Termination

	A.
	The
term of this Agreement shall commence on the first day of ethanol sales and continue for a primary term ending March 31, 2007 and thereafter, renewing for consecutive two
(2) year terms, unless terminated by either party at the end of the primary term or any subsequent two (2) year anniversary thereof with at least six (6) months prior written
notice.

	B.
	In
addition, this Agreement may be terminated under the circumstances set out below.

	(1)
	Termination for Intentional Misconduct.    If either party engages in intentional misconduct reasonably likely to result in
significant adverse consequences to the other party, the party harmed or likely to be harmed by the intentional misconduct may terminate this Agreement immediately, upon written notice to the party
engaging in the intentional misconduct.

	(2)
	Termination for Uncured Breach.    If one of the parties breaches the terms of this Agreement, the other party may give the
breaching party a notice in writing which specifically sets out the nature and extent of the breach, and the steps that must be taken to cure the breach. After receiving the written notice, the party
will than have thirty (30) days to cure the breach, if the breaching does not involve a failure to make any payments which are required by this Agreement.

	

	If
breach involves lack of payment beyond the established delinquency period, as specified in this Agreement, VeraSun Fort Dodge may terminate this
Agreement immediately and without prior written notice.

	(3)
	Change of Control.    Based on a change of majority interest in AREI, VeraSun Fort Dodge shall have six (6) months to
terminate

	

	this
Agreement following the receipt of written notice regarding such change of ownership. AREI must notify VeraSun Fort Dodge of said event in writing
within two (2) weeks of event. VeraSun Fort Dodge may terminate Agreement with (30) days written notice within said six (6) month period.

	(4)
	Termination by Mutual Written Agreement.    This Agreement may also be terminated upon any terms and under any condition,
which are mutually agreed upon in writing by AREI and VeraSun Fort Dodge.

	(5)
	Termination by Bankruptcy, etc.    This Agreement may also be terminated immediately and without prior notice by a party as a
result of the other party's bankruptcy, assignment for 

1

 

the
benefit of creditors, admission in writing of its inability to pay debts generally, or its liquidation, insolvency or dissolution. 

	2.
	Quantity and Quality

	A.
	VeraSun
Fort Dodge shall sell to AREI the total output of fuel grade ethanol ("Ethanol") produced at the VeraSun Fort Dodge, Iowa, facility ("Plant"), currently anticipated to be one
hundred (110) million gallons per year. Ethanol shall be delivered FOB the Plant, and title shall pass as the Ethanol is loaded into transport vessels.

	B.
	Such
Ethanol shall meet or exceed all industry standards, including but not limited to ASTM D.4806 specifications and Magellan Pipeline Company specifications for E-Grade
Denatured Fuel Ethanol

	C.
	Ethanol
produced at the Plant and marketed by VeraSun Fort Dodge, directly or indirectly, to the E-85 fuel market is excluded from this Agreement.

	3.
	AREI shall:

	A.
	Purchase
all of the Ethanol produced by VeraSun Fort Dodge, at the price outlined in Section 5;

	B.
	Remit
payment to VeraSun Fort Dodge for the Ethanol as provided in Section 5: and

	C.
	Schedule
all loads with VeraSun Fort Dodge.

	D.
	Extend
any alliance volume buying power of discounting to VeraSun Fort Dodge.

	E.
	Extend
railcar freight rates negotiated by AREI to VeraSun Fort Dodge.

	F.
	Participate
with VeraSun Fort Dodge in a monthly sales strategy call.

	4.
	VeraSun Fort Dodge shall:

	A.
	Provide
to AREI quarterly production forecasts, monthly updates, daily plant inventory balances and shipment information;

	B.
	Provide
to AREI specifications and certificates of analysis of the Ethanol produced;

	C.
	Provide
for a minimum of eight days storage on the VeraSun Fort Dodge premises;

	D.
	Have
meters that provide both gross and net 60° Fahrenheit temperature compensated gallons; and

	E.
	Establish
and participate in monthly sales strategy meetings with AREI.

	5.
	Pricing and Commission

	A.
	Sales Price.    The sale price VeraSun Fort Dodge shall receive for its Ethanol shall be the Pooled Net Price, as defined
below.

	

	"Pooled Net Price" shall mean the net sales per gallon calculated by subtracting the Pooled Costs on a per
gallon basis from the Alliance Ethanol Average Market Price.

	

	"Alliance Ethanol Average Market Price" shall mean the monthly average price received by AREI for Pooled
Market Alliance Volumes sold during such month on a per gallon basis.

	

	"Pooled Market Alliance Volumes" shall mean, with respect to any given period, aggregate fuel grade ethanol
volumes purchased by AREI from all sellers who have agreed to receive the Pooled Net Price and aggregate fuel grade ethanol volumes produced by AREI during such period. 

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	"Pooled Costs" shall mean, with respect to any given period, all direct costs incurred by AREI in handling
Pooled Market Alliance Volumes during such period, including by not limited to terminal lease charges, throughput charges, terminal shrinkage costs, freight charges, tariffs, costs of leasing railcar
and trucks, government taxes and assessments, insurance, inspection fees, inventory carrying costs, purchased ethanol cost incurred due to lost production and other such costs, but excluding direct
costs incurred in marketing such ethanol. AREI shall use commercially reasonable efforts to contain Pooled Costs so as to maximize the ultimate net price payable to VeraSun Fort Dodge for its Ethanol.

	B.
	Commission.    AREI shall deduct from the Pooled Net Price a commission equal to [*] percent of the
Pooled Net Price. [*]

	C.
	Payment.    For all quantities of ethanol purchased by AREI from VeraSun Fort Dodge during a one-week period
beginning on Monday and ending on the following Sunday, AREI shall pay the estimated Pooled Net Price referred to in Section 5.A. less commissions referred to in Section 5.B., to VeraSun
Fort Dodge by ACH or wire [*].

	D.
	Quarterly Meetings.    VERASUN and AREI agree to hold quarterly meetings (by telephone or in person) to formulate a market
outlook and perspective for the purpose of establishing pricing parameters and sales strategy for a given period (the "Guidelines"). For any period to which such Guidelines are agreed upon and apply,
AREI agrees to use its commercially reasonable efforts to execute deals consistent with these guidelines and when possible AREI will solicit feedback from VERASUN before executing deals outside such
Guidelines. AREI will, to the extent it deems it necessary or appropriate, utilize VERASUN to participate on customers calls.

	E.
	Supporting Records.    AREI shall keep a set of accurate and complete books and records in accordance with generally accepting
accounting principles with respect to all ethanol purchased and sold by AREI, including ethanol sold under AREI's Purchase and Resale business, and all costs and commissions associated therewith, and
shall make such books and records reasonably available to mutually agreeable independent outside accounting representatives at AREI's office at anytime by appointment during normal business hours upon
at least five (5) business days prior written notice; provided, however, there shall be no more than two such review of AREI's books and records in any twelve (12) month period and prior
to such review the independent outside accounting representatives shall executive a mutually agreeable confidentiality agreement with AREI. AREI agrees to pay fifty percent (50%) of the expenses of
such independent outside accounting representatives in conducting such review, provided that AREI's share of such expenses shall not exceed $15,000. All other costs and expenses of such review are the
sole responsibility of VeraSun Fort Dodge. In addition, AREI shall provide VeraSun Fort Dodge, by e-mail or fax, a monthly report regarding Pooled Market Alliance Volumes, Alliance Ethanol
Average Market Price, and a breakdown of Pooled Costs in sufficient detail to arrive at calculated Pooled Net Price. 

[*]
CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. 

3

 

In
addition to the foregoing, set forth on Exhibit "A" attached hereto and incorporated herein by reference, are the business guidelines and related obligations AREI agrees to follow in managing its
Purchase/Resale Program (as defined in Exhibit "A") in conjunction with this Agreement. 

6.    Indemnity:    AREI shall indemnify, defend, and hold VeraSun Fort Dodge and its affiliates, subsidiaries, parents, directors,
officers, employees, customers, contractors, subcontractors and agents harmless from and against any an all claims, losses, awards, judgments, settlements, fines, penalties, liabilities, damages,
costs or expenses (including reasonable Attorney's fees) alleged or incurred on account or any injury to or death of persons or damages to property or any other claim to the extent caused by or
arising out of the negligence or willful miscount of AREI, its officers, employees, customers, contractors, subcontractors or agents. 

VeraSun
Fort Dodge shall indemnify, defend and hold AREI and its affiliates, subsidiaries, parents, directors, officers, employees, and agent harmless from and against any and all claims, losses,
awards, judgments, settlements, fines, penalties, liabilities, damages, costs or expenses (including reasonable Attorney's fees) alleged or incurred on account of any injury to or death of persons or
damages to property or any other claim to the extent caused by or arising out of the negligence or willful misconduct of VeraSun Fort Dodge, its officers, employees, customers, agents, or contractors.
VeraSun Fort Dodge shall indemnify and hold AREI and its affiliates, subsidiaries, parents, directors, officers, employees, customers and agents harmless from and against any and all claims, losses,
awards, judgments, settlements, fines, penalties, liabilities, damages, costs or expenses (including reasonable Attorney's fees) from any defects in the Ethanol caused by VeraSun Fort Dodge. 

7.    Independent Contractor:    It is expressly understood that the relationship of AREI to VeraSun Fort Dodge is that of an
independent contractor and nothing contained herein shall be construed to create any partnership, agency, or employer/employee relationship. AREI may freely choose the customers from whom business
shall be solicited and the time and place for solicitation, except as otherwise provided in this Agreement. 

8.    Notices:    Any notices required to be given under this Agreement shall be in writing and shall be deemed given upon personal
delivery to the party to be notified; on the third day after deposit with the United State Postal Service, by registered or certified mail, postage prepaid; or upon confirmation if sent by telex,
facsimile machine or other means of telecommunication that transmits or produces a written record of the message so sent. Notices shall be sent addressed as follows: 

	 	VeraSun Fort Dodge:	 	VeraSun Fort Dodge, LLC

1930 Hayes Avenue

Fort Dodge, IA 50501

Attn: Donald Endres, CEO

Telephone: 515-955-7370
	

 	

AREI:	
 	

Aventine Renewable Energy, Inc.

P.O. Box 10

Pekin, IL 61555

Attn: Ronald Miller, President and CEO

Telephone: 309-347-9388

Fax: 309-347-8541

9.    Insurance:    The Parties shall maintain, at all times while this Agreement is in effect, and each at its own sole cost and
expense, comprehensive general liability insurance with a combined single limit for bodily injury and property damage of not less than $1,000,000 for any one occurrence. Each party shall promptly
after execution of this Agreement furnish the other party a Certificate of Insurance evidencing the foregoing insurance coverage, and containing a clause specifying that no reduction, cancellation or
expiration of the policies shall become effective until thirty (30) days from the date 

4

 

written
notice is provided to the other Party. The insurance requirements set forth herein are minimum coverage requirements and are not to be constructed in any way as a limitation on liability under
this Agreement. 

10.    Entire Agreement:    This Agreement contains the entire agreement between the Parties and supersedes all previous agreements,
either oral or written, between the Parties. No modifications hereof shall be valid unless made in writing and signed by both Parties. 

11.    Waiver:    The failure of either Party to enforce any of its rights hereunder on any particular occasion shall not constitute
a waiver of such rights on any subsequent occasion. 

12.    Assignment:    This Agreement may not be assigned by either party without the prior written consent of the other party, which
consent shall not be unreasonably withheld. 

13.    Headings:    Any paragraph headings are used for convenience only and are not intended and shall not be used in interpreting
any provisions of this Agreement. 

14.    No Third Party Beneficiary:    Except as otherwise provided herein, nothing contained in this Agreement shall be considered
or construed as conferring any right or benefit on a person not a party to this Agreement and neither this Agreement nor the performance hereunder shall be deemed to have created a joint venture or
partnership between the Parties. 

15.    Governing Law:    This Agreement shall be governed by the laws of the State of Illinois, without regard to the conflict of
laws provisions thereof. 

	

	In
WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly executed as of the date first written above. 

	Aventine Renewable Energy, Inc	 	VeraSun Fort Dodge, LLC
	

By:	

/s/  RONALD H. MILLER      
 Ronald H. Miller, President & CEO	
 	

By:	

/s/  BRUCE A. JAMERSON      
 Bruce A. Jamerson, President & CFO
	Date:	2/22/05	 	Date:	3/11/05

5

  

 
 

EXHIBIT "A"    
    

	1.
	Commercial Objective:    To the extent commercially feasible as determined in AREI's good faith judgment in accordance with
the provisions of this Exhibit "A", AREI will not disadvantage the Pooled Net Price to be paid VeraSun Fort Dodge under the Agreement, as a result of its Purchase/Resale Program.

	2.
	Defined Terms

	

	"Alliance Partners"—shall mean the group of ethanol producers that have agreed to exclusively
commit substantially all of their ethanol production to AREI for purposes of AREI marketing their ethanol.

	

	"Purchase/Resale Program"—shall mean the program administrated by AREI, independent of VeraSun
Fort Dodge or other Alliance Partners, whereby AREI purchases ethanol from non-Alliance Partners for the purpose of selling to customers, independent of the Pooled Market Alliance Volume.

	

	"Contract Segment"—shall mean the type of ethanol contract used in selling ethanol. Contracts
are segmented into the following categories:

	

	Fixed Contracts—whereby a buyer agrees to purchase a volume of ethanol from AREI at a particular
time, over a period of time, for a fixed price;

	

	Spot—whereby a buyer agrees to buy a volume of ethanol from AREI at a specific time, or over a
period of time, for a price that varies over the term of the contract and is based on a mutually agreed upon market index;

	

	Gas Plus—whereby a buyer agrees to buy a volume of ethanol from AREI at a particular time, or
over a period of time, for a price that is determined by the sum of: a gasoline market index (e.g. NYMEX, CARE), plus a fixed amount. The gas plus segment is further segmented by the gasoline market
index used in determining the price.

	3.
	Business Rules

	

	The
following describes the business rules AREI will follow and the methodology AREI will employ to measure its performance against the commercial objective
set forth above with contracts in effect and established after the date of this Agreement.

	A.
	To
the extent commercially feasible, AREI will attempt to maintain its total mix of Alliance Partner sales contracts, as follows: 

	 
	Contract Segment
 
	 	Low
	 	Target % of

Total Gallons

Sold
	 	High

	 	Fixed Price	 	20%	 	33%	 	55%
	 	Gas Plus	 	20%	 	33%	 	45%
	 	Spot	 	20%	 	33%	 	45%

	B.
	Prior
to entering into a contract for the sale of ethanol of a Contract Segment type specified in 3.A. above originating from the Purchase/Resale Program (a "New Resale Contract") AREI
will compare the average netback price (on a cents per gallon basis) being realized from the sale of that portion of the Pooled Market Alliance Volumes being sold under then existing contracts of the
same Contract Segment (with such average netback price to be calculated on the same basis as the Net Pooled Price, except limited to the specific Contract Segment type at issue) (herein the "Alliance
Contract Segment Net Pooled Price") against the average net back price (on a cents per gallon basis before purchase/resale margin) being realized from the 

6

 

sale
of that portion of the quantities of ethanol being purchased under the Purchase/Resale Program and being sold under then existing contracts of the same Contract Segment under the Purchase/Resale
Program (with such average netback price to be calculated on a basis similar to that used in calculating the Net Pooled Price except using Purchase/Resale Program volumes rather than Pooled Market
Alliance Volumes). Where a New Resale Contract will be a Gas Plus Contract Segment type, only contracts having the same gasoline index will be used in making the above comparison. Whenever possible
and to the extent commercially feasible, AREI will only enter into a New Resale Contract of a particular Contract Segment type when the then existing Purchase/Resale Contract Segment Net Pooled Price
before purchase/resale margin (after including such New Resale Contract) will be less than or equal to the then existing Alliance Contract Segment Net Pooled Price, both as determined on the basis of
then existing contracts of the same Contract Segment type. 

	C.
	AREI
may still enter into Purchase/Resale Program contracts for good commercial reasons.

	4.
	Reporting

	

	AREI
will monitor the activities set forth in 3. above and report monthly by Contract Segment to VeraSun Fort Dodge on:

	•
	Alliance
Ethanol Average Market Price

	•
	Breakdown
of Pooled Costs

	•
	Pooled
Net Price

	•
	Pooled
Market Alliance Volumes

	•
	Average
Purchase/Resale Market Price

	•
	Breakdown
of Purchase/Resale Costs

	•
	Average
Purchase/Resale Net Price Before Margin

	•
	Purchase/Resale
Volume

	•
	Differences
by Contract Segment of Alliance Ethanol Average Market Price and Pooled Net Price compared to Average Purchase/Resale Market Price and Average Purchase/Resale
Net Price

	5.
	Revisions

	

	—AREI
shall have the right to amend or eliminate this Exhibit "A" (a "Contract Change") subject to the following:

	A.
	Any
such Contract Change shall require VeraSun Fort Dodge's written consent, with such consent not to be unreasonably withheld. For purposes of the foregoing, VeraSun Fort Dodge shall
not withhold its consent to any amendment to this Exhibit "A" as long as such amendment will not have an adverse economic effect on VeraSun Fort Dodge under the Agreement.

	B.
	VeraSun
Fort Dodge shall have thirty (30) days from receipt of AREI's written notice of a proposed Contract Change to notify AREI in writing of whether or not VeraSun Fort Dodge
consents to such Contract Change. If VeraSun Fort Dodge notifies AREI in writing within such thirty (30) day period of its consent to such Contract Change or fails to provide written notice to
AREI within such thirty (30) day period of its non-consent to such Contract Change then such Contract Change shall be effective as of the date set forth in AREI's written notice;
provided, however, if such Contract Change will not have an adverse economic effect on VeraSun Fort Dodge under the Agreement it shall also be effective as of the date set forth un AREI's written
notice, whether or not such consent is given by VeraSun Fort Dodge.

	C.
	Subject
to B. above, if VeraSun Fort Dodge provides written notice of its non-consent to the Contract Change within thirty (30) days of its receipt of AREI's written
notice of such Contract Change, then the Contract Change shall not be effective. 

	Aventine Renewable Energy, Inc	 	VeraSun Fort Dodge, LLC
	

By:	

/s/  RONALD H. MILLER      
 Ronald H. Miller, President & CEO	
 	

By:	

/s/  BRUCE A. JAMERSON      
 Bruce A. Jamerson, President & CFO
	Date:	2/22/05	 	Date:	3/11/05

7

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ETHANOL MARKETING AGREEMENT

EXHIBIT "A"QuickLinks
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Exhibit 10.9    
    

[Administaff Logo]  

  
 

    CLIENT SERVICE AGREEMENT    
    

        THIS CLIENT SERVICE AGREEMENT (the "Agreement") is between Administaff Companies II, L.P., ("Administaff"), a Delaware limited partnership, with its principal
place of business at 19001 Crescent Springs Drive, Kingwood, Texas 77339-3802, and Bidz com. Incorporated ("Client"). Administaff is a
professional employer organization, serving Client as an off-site, full service human resource department. Administaff personnel management services are delivered by entering into a
co-employment relationship with Client's employees. This relationship and the allocation of responsibilities are defined in this Agreement. 

 
 

I. PERSONNEL    
    

        Administaff and Client agree that Administaff will provide personnel management services to Client through an allocation of responsibilities and that Administaff
and Client will be co-employers of the worksite employees assigned to Client's worksite ("Staff") for the job functions listed in Schedule A ("Confidential Census"). Client warrants
that information supplied to Administaff on the Confidential Census is accurate as supplied and acknowledges that Administaff is relying on the accuracy of the information. Client agrees on an ongoing
basis to amend Schedule A to reflect each change in pay rate, addition or deletion of Staff, or any change in their workers' compensation code within five (5) days of the effective date
of such change or addition. If such information is inaccurate, Client shall promptly notify Administaff. 

 
 

II. TERM OF AGREEMENT    
    

        This Agreement shall commence on the date shown below and remain in force until either Administaff or Client terminates the Agreement by giving thirty
(30) days prior written notice unless otherwise provided herein or as agreed to in writing by Client and Administaff. 

 
 

III. ADMINISTRATION    
    

	3.1
	Administaff
is responsible for the following:

	a.
	reserving
a right of direction and control over Staff, including a right to hire or terminate as to Administaff's employment relationship with Staff, maintain Staff records, and a
right to resolve Staff disputes not subject to a collective bargaining agreement;

	b.
	payment
of salaries, wages, and compliance with applicable rules and regulations governing the reporting and payment of all federal and state taxes on payroll wages paid under this
Agreement, including, but not limited to: (i) federal income tax withholding provisions of the Internal Revenue Code; (ii) provisions of state and/or local income tax withholding laws,
if applicable; (iii) provisions of the Federal Insurance Contributions Act ("FICA"); (iv) provisions of the Federal Unemployment Tax Act ("FUTA"); and, (v) provisions of
applicable state unemployment tax laws;

	c.
	providing
employee benefits under the terms and conditions as amended from time to time, of those Administaff sponsored plans set forth on Schedule B, if any are to be provided,
and compliance with its obligations under the Health Insurance Portability and Accountability Act ("HIPAA") if applicable, and the Employee Retirement Income Security Act of 1974, as amended
("ERISA"), if applicable solely with respect to employee benefit plans sponsored by Administaff; 

1

 

	d.
	procurement
of workers' compensation insurance and administration of claims for Staff;

	e.
	development
and implementation of policies and practices in conjunction with Client relating to personnel management services only, including, but not limited to, enrolling,
recruiting, interviewing, testing, selecting, training, evaluating, replacing, supervising, disciplining, reassigning, and terminating Staff; and

	f.
	compliance
with any applicable state statute or regulations governing a professional employer organization.

	3.2
	Client
is responsible for the following:

	a.
	the
service provided or product produced by Client;

	b.
	the
direction and control over Staff as necessary to conduct Client's business, including a right to hire or terminate as to Client's employment relationship with Staff, and comply
with any applicable licensure, regulatory or statutory requirement of Client and/or Staff;

	c.
	development
and implementation of policies and practices related to the services provided or product produced by Client, including, but not limited to hiring, training, evaluating,
supervising, disciplining and terminating Staff;

	d.
	compliance
with any professional licensing, fidelity bonding, and/or professional liability insurance requirements;

	e.
	compliance
with Occupational Safety and Health Administration ("OSHA") regulations, Environmental Protection Agency ("EPA") regulations, child labor laws, Worker Adjustment and
Retraining Notification Act ("WARN"), Fair Labor Standards Act ("FLSA"), including Equal Pay Act, Uniformed Services Employment and Reemployment Rights Act ("USERRA") and compliance with federal
governmental contracting provisions, and any state and/or local equivalent of any of the foregoing;

	f.
	compliance
with National Labor Relations Act ("NLRA") and liability for all obligations, including organizing efforts and process expenses, related to Client's collective bargaining
agreement and any benefits arising from such agreement;

	g.
	the
operation of Client's business, equipment or property, including motor vehicles;

	h.
	the
payment, through Administaff, of vacations, commissions, bonuses, paid leaves of absence, and severance payments to Staff, if any;

	i.
	the
payment of any non-qualified deferred compensation or equity based compensation of any type, including, but not limited to, stock options, restricted stock and phantom
stock, the number and value of options granted, whether such payment is actual or imputed for taxing purposes, and compliance with all applicable rules and regulations governing such compensation
including, but not limited to, valuation, payment or reporting of such compensation;

	j.
	development
and implementation of policies and practices to establish and maintain Client's intellectual property rights including but not limited to patents, trademarks, copyrights,
trade secrets and confidential information and to prevent any infringement or unauthorized use of Client's intellectual property rights by any third party;

	k.
	development
and implementation of policies and practices to avoid infringement or unauthorized use by Staff and/or Client of any intellectual property rights; 

2

 

	l.
	to
the extent Client deems appropriate, entering into agreements with Staff concerning assignment of inventions and copyrights to Client and protection of Client's intellectual
property rights;

	m.
	compliance
with administrative procedures established by Administaff with respect to Administaff sponsored employee benefit plans;

	n.
	compliance
with all applicable requirements of HIPAA and ERISA, if any, with respect to Client and/or its employees, including but not limited to, Client's business operations,
Client-sponsored employee benefit plans and Client's workplace; and

	o.
	compliance
with Fair Credit Reporting Act ("FCRA") and any state equivalent in the event Client processes its own employee/candidate background checks.

	3.3
	Administaff
and Client will each be responsible for its own compliance with all federal, state and local employment laws, including, but not limited to, Title VII of the 1964 Civil
Rights Act; Age Discrimination in Employment Act ("ADEA"); Title I of the Americans with Disabilities Act ("ADA"); Family and Medical Leave Act ("FMLA"); Consumer Credit Protection Act, Title III; 42
U.S.C. § 1981; § 503 of the Rehabilitation Act of 1973; immigration laws and regulations, and any state and/or local equivalent of the foregoing, as well as any and all
personnel management policies and procedures that are maintained by Administaff and referenced in paragraph 3.1e.

	3.4
	The
provisions of this Agreement relating to: (a) any 401(k) plan sponsored or maintained by either party are set forth on Exhibit F of this Agreement and (b) any
section 125 Cafeteria plan or dependent care assistance plan sponsored or maintained by Client are set forth on Exhibit G of this Agreement.

	3.5
	Responsibility
for compliance with Consolidated Omnibus Budget Reconciliation Act ("COBRA") is as follows:

	a.
	Client's
responsibility for COBRA: The Client is responsible for compliance with Client's COBRA responsibilities, if any, except to the extent expressly provided by
paragraph 3.5(b). The Client is also responsible for any other benefit coverage continuation, conversion or any other obligation originating from or in any way related to a plan maintained by
Client or a predecessor plan to such plan at any time.

	b.
	Administaff
responsibility for COBRA:

	(i)
	Administaff
is responsible for compliance with any COBRA obligations that may exist for any Staff who is an active employee participant in an Administaff sponsored plan; and

	(ii)
	Administaff
agrees to provide benefit coverage eligibility on Client's behalf consistent with Client's COBRA responsibilities, if any, for any individual that: (A) elects
COBRA coverage under an Administaff sponsored health plan which will become effective on the Effective Date or reasonably soon thereafter; or (B) is within the sixty (60) day election
period for COBRA on the Effective Date and subsequently elects COBRA coverage under an Administaff sponsored health plan, (collectively, the "Client's C0BRA Participants") to the extent the number of
such Client's COBRA Participants does not exceed ten percent (10%) of the total number of Staff as of the Effective Date. Additionally, Administaff agrees to provide benefit coverage eligibility on
Client's behalf, consistent with Client's COBRA responsibilities, if any, for Client's COBRA Participants in excess of ten percent (10%) of the total number of Staff on the Effective Date ("Excess
Client COBRA Participants") subject to the additional fees set forth in paragraph 8.10 of this Agreement. Any benefits coverage eligibility provided by Administaff shall only be provided in a
manner consistent with the employee benefits available to Staff, as indicated on Schedule B excluding employee contributions by Staff, 

3

 

if
any. Any obligation of Administaff to provide benefit coverage eligibility on Client's behalf as provided above is solely limited to Client's COBRA responsibility. 

	c.
	For
purposes of this paragraph 3.5, only Staff employed on the Effective Date and regularly scheduled to work thirty (30) or more hours per week (or as otherwise required
by law), shall be considered in computing the total number of Staff as of the Effective Date. 

 
 

IV. SUPERVISION AND EMPLOYMENT AGREEMENT    
    

	4.1
	One
or more on-site supervisors shall be designated by Administaff from among Staff. On-site supervisors shall be Administaff's contact for facilitating
personnel management services provided by Administaff.

	4.2
	Employees
listed on Schedule A, and any Staff added later, become co-employees of Administaff only when (i) he/she becomes an employee of Client,
(ii) he/she executes an Administaff Employment Agreement as set forth in Exhibit C ("Employment Agreement"); and, (iii) Client pays the first Administaff invoice covering such
employee. 

 
 

V. WORK ENVIRONMENT    
    

	5.1
	Client
agrees that it will comply, at its sole cost and expense, with all applicable federal, state and local health and safety laws, regulations, rules, ordinances, and directives
and rules relating to workplace, provide and ensure use of all personal protective equipment, and follow all recommendations concerning a safe work environment suggested by Administaff's workers'
compensation insurance carrier.

	5.2
	Client
agrees to immediately report to Administaff all work-related accidents and injuries involving Staff.

	5.3
	Administaff
and Administaff's workers' compensation insurance carrier shall have the right to inspect Client's workplace, including, but not limited to, any job sites at which Staff
work. To the extent possible, such inspections shall be scheduled at mutually convenient times. 

 
 

VI. INSURANCE    
    

	6.1
	Administaff
shall, at its expense, keep in force at all times during this Agreement, workers' compensation insurance covering Staff. Client shall be named an alternate employer. Upon
written request by Client, Administaff shall request that its insurance carrier furnish a certificate of insurance verifying coverage. The policy shall include a waiver of subrogation.

	6.2
	a.
Administaff shall maintain Employment Practices Liability Insurance Policy ("EPLI") with coverage for Client, provided:

	(i)
	Client
provides Administaff notice immediately but in no event more than five (5) days of its becoming aware of any charge, litigation, request for arbitration, or demand
letter involving Staff, former Staff or an applicant that could give rise to a claim under EPLI; and

	(ii)
	Client
complies with the requirements set forth at paragraphs 11.8 and 11.11 of this Agreement.

	b.
	The
Administaff EPLI policy provides for a deductible, to be paid by the Client, and provides a maximum coverage amount. The policy covers reasonable and necessary attorneys' fees only
from attorneys selected from the insurance carrier approved panel. Coverage will be determined by the insurance carrier upon notice of a claim. The notice specified above shall 

4

 

be
sent by facsimile transmission to 281.348.3118 Attn: EEO Compliance with the original document following via overnight courier to the address shown in paragraph 13.7. 

	c.
	The
EPLI coverage terminates with the termination of this Agreement.

	d.
	This
paragraph 6,2 is subject to the terms and conditions set forth in the policy. To the extent that the terms of this Agreement conflict with such policy, the terms of the
policy shall control.

	6.3
	Client
warrants and represents to Administaff that it has in force at the Effective Date of this Agreement, and will maintain during this Agreement, the following insurance coverage
and minimum limits. Such coverage shall be provided at the Client's sole cost and expense and shall be provided by an admitted or licensed excess and surplus lines insurance company and rated by A M
Best Company at A- or better.

	a.
	General
Liability. Commercial General Liability coverage in standard form on an occurrence basis covering Client's operations with minimum limits of: 

	(1) $2,000,000.00	 	General Aggregate
	(2) $1,000,000.00	 	Products/Completed Operations Aggregate
	(3) $1,000,000.00	 	Personal and Advertising Injury
	(4) $1,000,000.00	 	Each Occurrence.
	Additional coverage may be required for special operations.

	b.
	Automobile
Liability. Comprehensive automobile liability insurance covering all owned, hired, and non-owned Client vehicles, with minimum limits of One Million and No/100
Dollars ($1,000,000.00) combined single limit per occurrence for bodily injury and property damage liability. Client warrants that all persons operating Client's vehicles are duly licensed and covered
under the Client's automobile liability insurance policy without exception. Client agrees to furnish to Administaff a list of drivers upon request. The policy shall be endorsed to include, at no
additional cost to Administaff, Staff who shall be operating motor vehicles for Client.

	c.
	Workers'
compensation insurance coverage on any of its employees that are not part of Staff and any Client subcontractor employees.

	d.
	Professional
liability insurance (e.g., errors and omissions, malpractice) may be required for specified Clients. Professional liability insurance will be required for some Clients
including medical, legal, insurance and the like. All such policies shall have a minimum of $l,000,000.00 per occurrence and aggregate.

	6.4
	Policy
Requirements. All Client insurance policies required herein shall provide for thirty (30) days written notice to Administaff prior to cancellation or
non-renewal of the coverage. All such insurance policies shall be endorsed to waive any and all rights of subrogation against Administaff and name Administaff as an additional insured,
both at no additional cost or expense to Administaff. Each of the policies shall be primary insurance and not excess over or contributory with any other valid, existing and applicable insurance
carried by Administaff.

	6.5
	Client
shall submit certificates of insurance to Administaff signed by authorized representatives of insurance companies evidencing all insurance required pursuant to this
Article VI within thirty (30) days of execution of this Agreement and at any renewal or replacement of such policies. 

5

 
 
 

VII. ENROLLMENT FEE    
    

        Client agrees to pay Administaff a non-refundable enrollment fee in the sum specified in the initial Schedule B ("Client Service Application").
This one time enrollment fee is due and payable at the time the initial Agreement is signed by Client. 

 
 

VIII. SERVICE FEE    
    

        In exchange for the personnel management services provided by Administaff, Administaff and Client agree as follows: 

	8.1
	The
Administaff service fee percentages ("Administaff Service Fee Percentages") are established for each employee (Staff) based upon a number of factors and estimates regarding, but
not limited to, the following: a) information provided by the Client on Schedule A, b) federal and state statutory requirements including taxes and fees, c) insurance
costs, and d) professional services and administrative fees (collectively "Administaff Allocations"). A composite Administaff Service Fee Percentage is reflected in the attached
Schedule B.

	8.2
	Any
changes in the Schedule A information provided by the Client (including payroll amounts, additions or reductions in Staff, individual employee benefit elections, or
workers' compensation codes or location) any changes in Administaff's employer tax requirements, and any statutory changes required by law shall be reflected in the individual Administaff Service Fee
Percentages for each Staff as they occur and may result in a change to the composite Administaff Service Fee Percentage reflected in the attached Schedule B.

	8.3
	The
Administaff Service Fee Percentages may also be adjusted at the end of the first twelve (12) months of the Agreement and annually thereafter, with prior written notice, or
as mutually agreed by Client and Administaff.

	8.4
	Each
pay period Client shall pay Administaff the total service fee ("Total Service Fee"). The Total Service Fee is comprised of the actual gross payroll of Staff during such pay
period plus the applicable Administaff Service Fee Percentage for each Staff multiplied by the gross payroll for each Staff, plus any other charges related to services provided to Client including,
but not limited to, allocations for medical costs and professional services and administrative fees relating to Staff who do not receive an Administaff payroll check for that payroll period. All
charges shall be reflected on the Administaff invoice.

	8.5
	Any
invoice provided under this Agreement shall be due and payable by Client upon receipt. Client shall use a method of payment approved in advance by Administaff.

	8.6
	Client
shall reimburse Administaff for services requested by Client not contemplated by Administaff and not included as part of the Administaff Service Fee Percentage. Administaff
shall advise Client if the requested service is an extra charge.

	8.7
	Client
will notify Administaff of any changes, errors or inaccuracies in any payroll, payroll report, Schedule A, or Schedule B within ten (10) days of such error
or change.

	8.8
	Administaff
reserves the right to impose any terms of the then current Administaff credit policy ("Credit Policy"). A copy of the current policy is set forth in Exhibit E.

	8.9
	Each
payroll period, Client shall provide a written report to Administaff of all time worked by non-exempt Staff, days worked by exempt-salaried Staff, and commissioned
Staff. Client will accurately report FLSA classification of all Staff, pay rate and any overtime worked by non-exempt Staff.

	8.10
	Client
agrees to pay Administaff a fee of $7,500.00 for each Excess Client COBRA Participant that Administaff provides benefit coverage pursuant to eligibility provided under
paragraph 3.5(b)(ii) of 

6

 

this
Agreement. Any fees due Administaff pursuant to this paragraph are due and payable upon receipt of any invoice from Administaff. 

	8.11
	Client
shall pay all fees and fulfill all of its obligations under both Exhibit F and applicable 401(k) plan and trust documents. The provisions of this paragraph 8.11
shall survive the termination of this Agreement. 

 
 

IX. DEFAULT    
    

	9.1
	Acts
of default by Client are:

	a.
	failure
of Client to pay an invoice when due;

	b.
	failure
of Client to comply with any directive of Administaff, when such directive is promulgated or made necessary by: (i) a federal, state or local governmental law or
regulation: (ii) an insurance carrier providing coverage to Administaff and/or its Staff; or (iii) specific circumstances which may affect the safety or violate the legal rights of
Administaff or Staff;

	c.
	commission
or omission of any act that usurps any material right or obligation of Administaff as a co-employer of Staff including failing to cooperate with Administaff in
its fulfilling its obligations hereunder or violation by Client of any material provision of this Agreement;

	d.
	filing
by or against Client for bankruptcy, reorganization or appointment of a receiver, supervisor, assignee, trustee, or liquidator over its assets or property, Client's failure to
meet any of its financial covenants, or Administaff's reasonable belief Client is insolvent;

	e.
	failure
to follow terms of Administaff's credit policy as stated in paragraph 8.8 after being given written notice of the failure;

	f.
	failure
to cooperate with Administaff in its fulfilling any of its obligations under this Agreement after being given notice of the failure to cooperate;

	g.
	direct
payment of taxable wages by Client to Staff for services contemplated by this Agreement except for partner distributions from appropriate client organizations; or

	h.
	failure
to fully and correctly disclose to Administaff (prior to the execution of this Agreement) the total number of Client's COBRA Participants to Administaff where such number of
Client's COBRA Participants exceeds ten percent (10%) of the total number of Staff as computed consistent with the methodology set forth in paragraph 3.5 b (ii) of this Agreement.

	9.2
	Upon
an act of default by Client, Administaff shall have the option, in its sole and absolute discretion, of terminating this Agreement immediately in the case of a default under
paragraph 9.1 by written facsimile transmission or any other method of written communication to the address stated in paragraph 13.7. 

 
 

X. INDEMNITY    
    

	10.1
	Administaff
hereby agrees to indemnify, defend and hold Client harmless from and against any and all liability, expense (including cost of investigation, court costs and reasonable
attorneys' fees) and claims for damage of any nature whatsoever, whether known or unknown and whether direct or indirect, as though expressly set forth and described herein which Client may incur,
suffer, become liable for, or which may be asserted or claimed against Client as a result of Administaff failing to pay when due wages to Staff, federal, state and local payroll taxes, if any, and
health insurance premiums in Administaff sponsored plans for participating Staff or to secure workers' compensation insurance coverage for Staff. 

7

 
	10.2
	Notwithstanding
anything herein or in any other agreement or document to the contrary, Client expressly agrees that Administaff shall under no circumstances be liable for any
special, incidental or consequential damages of any nature whatsoever arising under or relating to this Agreement.

	10.3
	Client
hereby agrees to indemnify, defend and hold Administaff, Administaff, Inc. and all subsidiaries of or companies affiliated with Administaff, Inc. by
shareholdings or other means of control, its and their current and/or former officers, directors, shareholders, employees and agents ("Administaff Indemnified Parties"), harmless from and against any
and all liability, or expense (including cost of investigation, court costs and reasonable attorneys' fees) and claims for damage of any nature whatsoever, whether known or unknown and whether direct
or indirect, as though expressly set forth and described herein, which Administaff Indemnified Parties may incur, suffer, become liable for or which may be asserted or claimed against Administaff
Indemnified Parties with respect to this Agreement, including but not limited to:

	a.
	relating
to any claims, incidents or causes of action that occurred prior to the Effective Date of this Agreement, regardless of whether the claims, incidents or causes of action were
asserted prior to or after the Effective Date of this Agreement;

	b.
	as
a result of the failure of Client to follow applicable federal, state or local laws, rules, regulations or statutes;

	c.
	arising
from the Client's actions or omissions toward Staff, including but not limited to violations under FLSA, OSHA or WARN or a breach of any of its duties under
paragraph 3.2;

	d.
	arising
from actions of Staff toward non-employees of Administaff whether based on contract, tort or statutory violation or under paragraph 11.2 hereof or arising
from non-Staff Client employees or contractors;

	e.
	arising
from any product produced and/or services provided by Client;

	f.
	arising
from operation by Client, Client's employees or Staff of any form or type of motor vehicle and any violation of Department of Transportation, Interstate Commerce Commission
and/or Motor Carrier Act;

	g.
	arising
from employee or Staff unionization and/or provision of benefits to any Staff member covered by a collective bargaining agreement, any organizing activity or claims based on
NLRA;

	h.
	arising
from any Client employment agreement or offer letter Client has with Staff, or any policy or plan Client has regarding paid time off or other payment plans such as vacation,
sick leave, severance, bonus or commissions and nothing in this provision creates any such policy or plan;

	i.
	arising
from any infringement, alleged infringement, unauthorized use or alleged unauthorized use of any intellectual property rights, including but not limited to patents, trademarks,
copyrights, trade secrets and confidential information, by Staff or Client and by any product or services provided by Client;

	j.
	as
a result of the failure of Client to properly maintain and operate any separate employee benefit plan(s), including, but not limited to, a defined contribution or defined benefit
pension plan or a welfare plan maintained by Client in accordance with all applicable federal and state laws and any accompanying regulatory guidance thereto, including, but not limited to, Client or
Client's agents failure with respect to such plan(s) to make timely deposits to the appropriate plan(s) in an amount equal to the Staff requested wage deferral, to perform proper discrimination and
coverage testing, file required annual informational or event specific 

8

 

returns
or reports with the appropriate regulatory agencies, and timely pay any applicable premiums or vendor fees; or 

	k.
	arising
from or in any way related to any failure by Client, its affiliates, employees or third parties to comply and/or fulfill all obligations or duties under Exhibit F or
Exhibit G.

	10.4
	In
the event Administaff incurs any expenses, fines and/or liabilities as a result of an act of default by Client as set forth in Article IX or Article X, Client shall
reimburse Administaff for all actual expenses, fines and/or liabilities, including, but not limited to, reasonable attorneys' fees, court costs and any related expenses as they are incurred.

	10.5
	The
indemnities in this section shall be deemed to be contractual in nature and shall survive termination of this Agreement. 

 
 

XI. REPRESENTATIONS, WARRANTIES AND AGREEMENT    
    

	11.1
	Client
agrees not to engage in any conduct that is inconsistent with the policies and procedures of Administaff which are based on applicable laws, regulations or statutes.

	11.2
	Client
agrees that Administaff will have no responsibility or liability for any losses or claims that arise as a result of Staff's negligence, theft, embezzlement, or other unlawful
or willful acts committed by Staff.

	11.3
	Client
agrees to comply with all applicable Department of Transportation, Interstate Commerce Commission and Motor Carrier Act requirements and regulations if Client uses Staff to
operate motor vehicles.

	11.4
	Client
agrees to provide Administaff with a copy of any notice, complaint or charge of a government agency and/or legal action concerning (i) Client's workplace;
(ii) Client's compliance with any laws, rules, regulations or ordinances relating to the workplace; or, (iii) any Staff within five (5) days of its becoming aware of such notice,
complaint, charge or legal action via facsimile transmission to 281.348.3118 Attn: EEO Compliance.

	11.5
	Client
agrees to notify Administaff in advance if it has executed a collective bargaining agreement, is in the process of negotiating a collective bargaining agreement, experiencing
organizing activities, or has any employees represented by a union.

	11.6
	Client
acknowledges that any and all employee benefit plans maintained by Administaff may be amended, modified or terminated at any time at the sole discretion of Administaff or its
affiliates. Such modifications include but are not limited to, increases or decreases of participant co-pays, deductibles, out of pocket maximums, covered services, and the like and such
modifications shall not be restricted as a result of any provision(s) contained in a collective bargaining or other agreement entered into by Client.

	11.7
	In
the event Client files a voluntary petition under Title 11 of the United States Code, or in the event that an involuntary petition is filed against Client under Title
11, all debts that the Client may owe to Administaff shall be considered "administrative expenses" within the meaning of 11 U.S.C.
§ 503 (b)(l)(A) and Administaff's claim or claims for such administrative expenses shall be entitled to the priority specified in 11 U.S.C. § 507 (a) (1).
Client further agrees to use every effort and cooperate with actions which will so classify these claims as administrative.

	11.8
	Client
agrees to cooperate fully with Administaff in any investigation including, but not limited to, the defense of any employment-related claim, involving Staff whether such
investigation or claim is initiated by Staff, a government agency or by Administaff. 

9

 
	11.9
	Client
warrants and represents that all individuals it has represented to Administaff as Staff are: (i) its employees and (ii) included in the personnel management
services of Administaff including receiving wages and coverage under insurance and benefit plans.

	11.10
	Client
warrants and represents to Administaff that, prior to entering into this Agreement, Client has informed Administaff of all compensation, pension and/or benefit plans that
Client may currently provide, or has heretofore provided, for any owners, partners, shareholders, directors, officers, employees or agents of Client. Client acknowledges that if Client currently
provides or has previously provided any pension or benefit plans to such individuals or their dependents, certain complex rules under ERISA and the Internal Revenue Code may apply to these plans, as
well as to any plans maintained by Administaff, as a result of this Agreement. If Client currently maintains or has maintained any such plans, Client acknowledges that Administaff has advised Client
to seek advice from a qualified professional regarding the effect of this Agreement on such plans. Client further warrants and represents to Administaff that it has fully disclosed to Administaff the
total number of individuals to whom it has any COBRA responsibilities as of the date of execution of this Agreement.

	11.11
	Client
warrants and represents to Administaff that prior to entering into the Agreement, it has not engaged to the best of its knowledge in any violations of federal, state or local
laws or regulations regarding wage and hour, unfair labor practices or discrimination and that Client is current on the payment of all wages, payroll taxes, and workers' compensation assessments and
penalties, if applicable.

	11.12
	Client
acknowledges that at the time of termination of this Agreement, Administaff will send Staff employment termination notices terminating Administaff's relationship with Staff
which will not affect the employment relationship Client has with Staff.

	11.13
	Upon
termination of this Agreement, Client will retain sole responsibility and liability for all accumulated unpaid sick leave, paid time off, vacation or similar liabilities for
Staff.

	11.14
	Client
agrees to notify Administaff in advance if it owns or operates aircraft or watercraft or has any foreign operations or expatriates.

	11.15
	Client
warrants it will not request Staff to perform any services outside that person's workers' compensation code or employee's ability or training if such service would expose the
individual, Staff or other persons to injury.

	11.16
	Client
agrees it will not without the prior express written consent of Administaff, make any form of press release or announcement to the general public regarding this Agreement,
publicizing Administaff or using its trade marks, and/or service marks, or otherwise disclosing to the general public in a public forum that the parties have entered this Agreement or have a
relationship.

	11.17
	Client
understands that certain services will be provided by Administaff through the use of Administaff's affiliates' password-protected Internet service platform  My Marketplace and Employee Service Center. These services now or will in the future include payroll,
benefits information, recruiting, and training. Administaff may communicate services or offerings or make certain information available to Staff or Client through My
Marketplace or Employee Service Center. Employee Service Center, My Marketplace and any other Administaff website are governed
by the Terms of Use and Privacy Policy contained on each website. 

 
 

XII. ARBITRATION    
    

	12.1
	Except
for unpaid invoices owed by Client to Administaff, Administaff and Client agree and stipulate that all claims, disputes and other matters in question between Administaff and
Client arising out of, or relating to this Agreement or the breach thereof, will be decided by arbitration in 

10

 

accordance
with the Federal Arbitration Act (9 U.S.C. §§ 10 and 11) and the Commercial Arbitration Rules of the American Arbitration Association subject to the
limitations of this Article XII. This Agreement to so arbitrate and any other agreement or consent to arbitrate entered into in accordance herewith as provided in this Article XII will
be specifically enforceable under the prevailing law of any court having jurisdiction. 

	12.2
	Notice
of the demand for arbitration will be filed in writing with the other party to the Agreement and with the American Arbitration Association. The demand for arbitration shall be
made within a reasonable time after the claim, dispute or other matter in question has arisen, and in no event shall any such demand be made after the date when institution of legal or equitable
proceedings based on such claim, dispute or other matter in question would be barred by the applicable statute of limitations.

	12.3
	No
arbitration arising out of, or relating to, this Agreement shall include by consolidation, joinder or in any other manner any other person or entity who is not a party to this
contract unless:

	a.
	the
inclusion of such other person or entity is necessary if complete relief is to be afforded among those who are already parties to the arbitration, and/or such other person or
entity is substantially involved in a question of law or fact which is common to those who are already parties to the arbitration and which will arise in such proceedings; and

	b.
	the
written consents of the other person or entity sought to be included and Administaff and Client have been obtained for such inclusion, which consent shall make specific reference
to this paragraph 12.3, but no such consent shall constitute consent to arbitration of any dispute not specifically described in such consent or to arbitration with any party not specifically
identified in such consent.

	12.4
	The
award rendered by the arbitrators will be final, judgment may be entered upon it in any court having jurisdiction thereof, and will not be subject to modification or appeal
except to the extent permitted by §§ 10 and 11 of the Federal Arbitration Act (9 U.S.C. §§ 10 and 11). 

 
 

XIII. MISCELLANEOUS    
    

	13.1
	This
Agreement is between Administaff and Client and creates no individual rights of Staff or any third parties (except as stated in Article X), as against Client or
Administaff.

	13.2
	Client
shall not assign this Agreement or its rights and duties hereunder, or any interest herein, without the prior written consent of Administaff, except to a subsidiary or
affiliate.

	13.3
	The
prevailing party, in any enforcement action arising with respect to this Agreement, shall be entitled to recover from the other party all costs of such enforcement action
including, without limitation, reasonable attorneys' fees, court costs and related expenses.

	13.4
	EXCEPT
FOR ARTICLE XII OF THIS AGREEMENT, WHICH SHALL BE GOVERNED BY THE FEDERAL ARBITRATION ACT (9 U.S.C. §§ 10 AND 11), THIS AGREEMENT SHALL BE GOVERNED BY
THE LAWS OF THE STATE OF TEXAS WITHOUT REFERENCE TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF.

	13.5
	This
instrument, including the initial Schedules and Exhibits attached hereto, contains the entire Agreement of the parties and supersedes all prior and contemporaneous agreements or
understandings, whether written or oral, with respect to the subject matter hereof. No amendment or modification to this Agreement, other than a subsequent Schedule B, shall be valid unless in
writing and signed by both parties hereto. This Agreement is binding on the parties as of the last date it is signed by the parties if the execution dates are different. 

11

 
	13.6
	If
any provision of this Agreement, or any amendment thereof, is determined by a court of competent jurisdiction to be invalid the remaining provisions shall remain in effect and be
so construed as to effectuate the intent and purposes of this Agreement and any amendments thereto.

	13.7
	All
notices, requests and communications provided hereunder and required by Client except as required under paragraphs 6.2 and 11.4 shall be in writing, sent by facsimile with
written confirmation of successful transmission, or hand-delivered with a signed receipt, or mailed by prepaid United States registered, certified, or express mail, return receipt
requested, or overnight courier service and addressed to the party's principal place of business as set forth in this Agreement (or to such other address provided in writing by such party). 

	If to Administaff:	 	If to Client (see signature lines)
	

Administaff Companies II, L.P.

c/o: Administaff Companies, Inc., its General Partner

19001 Crescent Springs Drive

Kingwood, Texas 77339-3802

Attn: John H. Spurgin, II

Senior Vice President, Legal, General Counsel and Secretary

Fax: 281.358.6492	
 	

 

	13.8
	The
waiver by either party hereto of a breach of any term or provision of this Agreement shall not operate or be construed as a waiver of a subsequent breach of the same provision or
of a breach of any other term or provision of this Agreement by any party.

	13.9
	Force
Majeure. Neither Administaff nor Client shall be required to perform any term, condition, or covenant of this Agreement so long as such performance is delayed or prevented by
force majeure, which shall mean acts of God, strikes, lockouts, labor restrictions by any governmental authority, civil riot, floods, and any other cause not reasonably within the control of
Administaff or Client and which by the exercise of due diligence by Administaff or Client is unable, wholly or in part, to prevent or overcome.

	13.10
	Authority.
Each party represents and warrants that each has actual authority and power to enter this Agreement and to be bound by the terms and conditions hereof. Any individual
signing this Agreement on behalf of a Client represents, warrants and guarantees that he or she has full authority to do so. This Agreement is binding upon Administaff only if signed by the President
or a Vice President of the general partner. 

 
 

XIV. ATTACHMENTS    
    

        The following Schedules, Exhibits and addendum are attached to this Agreement and incorporated herein by reference for all purposes: 

	

A.	
 	

Schedule A ("Confidential C [illegible].	
 	

D.	
 	

Exhibit D ("State Specific and/or Profession Specific Addendum") if any;
	

B.	
 	

Schedule B ("Client Services [illegible]")	
 	

E.	
 	

Exhibit E ("Credit Policy");
	

C.	
 	

Exhibit C ("[illegible] Agreement");	
 	

F.	
 	

Exhibit F ("401k Plans");
	

 	
 	

 	
 	

G.	
 	

Exhibit G ("Client Sponsored Benefit Plans (other than Retirement)), if applicable.

12

 

        The
eligibility waiting period for newly employed Staff before such Staff are eligible to participate in the Administaff health insurance plan, if any, is LK
(required Client initial) days from hire date (if blank automatically defaults to zero if benefits being provided). 

        Handwritten/typed changes except for completing blank spaces on this Agreement will void the Agreement.  

        This Agreement contains Indemnity and Hold Harmless Clauses found at Article X and Arbitration Clause found at Article XII.  

Effective Date of the Client Service Agreement: 1/2/06 

	This Agreement is executed by Administaff on              day

of                               ,
                    .	 	This Agreement is executed by Client on              day

of                               ,
                    .
	

ADMINISTAFF COMPANIES II, L.P.

By: Administaff Companies, Inc., its General Partner

19001 Crescent Springs Drive

Kingwood, Texas 77339-3802

(800) 237-3170	
 	

FOR CLIENT: Bidz.com. Incorporated
	

BY:	
 	

    
 Vice-President	
 	

BY:	
 	

/s/ Lawrence Kong            CFO
 (Signature)          Title or Position
	

 	
 	

 	
 	

Lawrence Kong
 (Name — Typed or Printed)
	

 	
 	

 	
 	

    
 Email Address (please print)
	

 	
 	

 	
 	

3562 Eastham Dr.

Culver City, CA 90232
	

 	
 	

 	
 	

    
 Address
	

 	
 	

 	
 	

    
 Facsimile Number

13

QuickLinks

Exhibit 10.9

CLIENT SERVICE AGREEMENT

I. PERSONNEL

II. TERM OF AGREEMENT

III. ADMINISTRATION

IV. SUPERVISION AND EMPLOYMENT AGREEMENT

V. WORK ENVIRONMENT

VI. INSURANCE

VII. ENROLLMENT FEE

VIII. SERVICE FEE

IX. DEFAULT

X. INDEMNITY

XI. REPRESENTATIONS, WARRANTIES AND AGREEMENT

XII. ARBITRATION

XIII. MISCELLANEOUS

XIV. ATTACHMENTS

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