Document:

fs12013a1ex4i_engage.htm

Exhibit 4.1

 

SUBSCRIPTION AGREEMENT

 

This Subscription Agreement (this “Agreement”) is dated as of __________________ 2013, between Engage Mobility, Inc., a Florida corporation (the “Company”) and each purchaser identified on the signature pages hereto (each, including its successors and assigns, a “Purchaser” and collectively the “Purchasers”).

 

WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to an effective registration statement under the Securities Act of 1933, as amended (the “Securities Act”), the Company desires to issue and sell to each Purchaser, and each Purchaser, severally and not jointly, desires to purchase from the Company, securities of the Company as more fully described in this Agreement.

 

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and each Purchaser agree as follows:

 

ARTICLE I.

DEFINITIONS

 

1.1            Definitions.  In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the meanings set forth in this Section 1.1:

 

“Acquiring Person” shall have the meaning ascribed to such term in Section 4.5.

 

“Action” shall have the meaning ascribed to such term in Section 3.1(j).

 

“Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person as such terms are used in and construed under Rule 405 under the Securities Act.

 

“Board of Directors” means the board of directors of the Company.

 

“Business Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.

 

“Closing” means the closing of the purchase and sale of the Securities pursuant to Section 2.1.

 

 “Commission” means the United States Securities and Exchange Commission.

 

“Common Stock” means the common stock of the Company.

 

 “Company Counsel” means Anslow & Jaclin, LLP, with offices located at 195 Route 9 South, Suite 204, Manalapan, NJ 07726.

 

  

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 “GAAP” shall have the meaning ascribed to such term in Section 3.1(h).

 

“Per Share Purchase Price” equals $1.60.

 

“Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

“Proceeding” means an action, claim, suit, investigation or proceeding (including, without limitation, an informal investigation or partial proceeding, such as a deposition), whether commenced or threatened.

 

“Prospectus” means the final prospectus filed for the Registration Statement.

 

“Purchaser Party” shall have the meaning ascribed to such term in Section 4.8.

 

“Registration Statement” means the effective registration statement with Commission file No. 189164 which registers the sale of the Shares to the Purchasers.

 

 “Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended or interpreted from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same purpose and effect as such Rule.

 

“SEC Reports” shall have the meaning ascribed to such term in Section 3.1(h).

 

“Securities” means the Shares.

 

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Shares” means the shares of Common Stock issued or issuable to each Purchaser pursuant to this Agreement.

 

“Short Sales” means all “short sales” as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall not be deemed to include the location and/or reservation of borrowable shares of Common Stock). 

 

 “Subscription Amount” means, as to each Purchaser, the aggregate amount to be paid for Shares purchased hereunder as specified below such Purchaser’s name on the signature page of this Agreement and next to the heading “Subscription Amount,” in United States dollars and in immediately available funds.

 

“Trading Day” means a day on which the principal Trading Market is open for trading.

 

  

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“Trading Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the NYSE AMEX, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange or the OTC Bulletin Board (or any successors to any of the foregoing).

 

“Transfer Agent” means Clear Trust, LLC, 16540 Pointe Village Drive Suite 206 Lutz, Florida and any successor transfer agent of the Company.

 

ARTICLE II.

PURCHASE AND SALE

 

2.1           Subscription Amount. Company agrees to sell, and Purchaser agrees to purchase __________________ Shares from Company at a purchase price of $1.60 per share, for a total subscription amount of ________________________. Purchaser shall deliver to the Escrow Agent, via wire transfer or a certified check, immediately available funds equal to such Purchaser’s Subscription Amount as set forth herein executed by such Purchaser and the Company shall deliver to each Purchaser its respective Shares as determined pursuant to Section 2.2(a), and the Company and each Purchaser shall deliver the other items set forth in Section 2.2 deliverable at the Closing. Closing shall occur either by mail or electronic document transfer, or at a place and time mutually convenient to the parties.

 

2.2           Deliveries.

 

(a)           On or prior to the Closing Date, the Company shall deliver or cause to be delivered to each Purchaser the following:

 

(i)          this Agreement duly executed by the Company;

 

(ii)         a legal opinion of Company Counsel, substantially in the form of Exhibit B attached hereto;

 

(iii)        a copy of the irrevocable instructions to the Transfer Agent instructing the Transfer Agent to deliver on an expedited basis physical certificates for the Shares equal to such Purchaser’s Subscription Amount divided by the Per Share Purchase Price, registered in the name of such Purchaser;

 

(iv)        the Prospectus and Prospectus Supplement (which may be delivered in accordance with Rule 172 under the Securities Act).

 

(b)           On or prior to the Closing Date, each Purchaser shall deliver or cause to be delivered to the Company or the Escrow Agent, as applicable, the following:

 

(i)          this Agreement duly executed by such Purchaser; and

 

(ii)         to Escrow Agent, such Purchaser’s Subscription Amount by wire transfer to the account specified in writing by the Escrow Agreement.

 

  

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2.3           Closing Conditions.

 

(a)           The obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met:

 

(i)          the accuracy in all material respects on the Closing Date of the representations and warranties of the Purchaser contained herein (unless as of a specific date therein in which case they shall be accurate as of such date);

 

(ii)         all obligations, covenants and agreements of each Purchaser required to be performed at or prior to the Closing Date shall have been performed; and

 

(iii)        the delivery by each Purchaser of the items set forth in Section 2.2(b) of this Agreement.

 

(b)           The respective obligations of the Purchasers hereunder in connection with the Closing are subject to the following conditions being met:

 

(i)          the accuracy in all material respects when made and on the Closing Date of the representations and warranties of the Company contained herein (unless as of a specific date therein);

 

(ii)         all obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been performed;

 

(iii)        the delivery by the Company of the items set forth in Section 2.2(a) of this Agreement;

 

(iv)        there shall have been no Material Adverse Effect with respect to the Company since the date hereof; and

 

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

 

3.1           Representations and Warranties of the Company.  Except as set forth in the Prospectus and SEC Reports, which shall be deemed a part hereof and shall qualify any representation or otherwise made herein, the Company hereby makes the following representations and warranties to each Purchaser:

 

(b)           Organization and Qualification.  The Company is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. The Company is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary.

 

  

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(c)           Authorization; Enforcement.  The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement. The execution and delivery of this Agreement and each of the other Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company, the Board of Directors or the Company’s stockholders in connection herewith. or therewith other than in connection with the Required Approvals.  This Agreement and

 

(d)           Issuance of the Securities; Registration.  The Securities are duly authorized and, when issued and paid for, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company. The Company has prepared and filed the Registration Statement in conformity with the requirements of the Securities Act, which became effective on ___________________ (the “Effective Date”), including the Prospectus, and such amendments and supplements thereto as may have been required to the date of this Agreement.  The Registration Statement is effective under the Securities Act and no stop order preventing or suspending the effectiveness of the Registration Statement or suspending or preventing the use of the Prospectus has been issued by the Commission and no proceedings for that purpose have been instituted or, to the knowledge of the Company, are threatened by the Commission. Although the Common Stock is not eligible for the Depository Trust Company’s (“DTC”) Deposit or Withdrawal at Custodian system (aka DWAC system), the Common Stock is DTC eligible.

 

(e)           Capitalization.  The capitalization of the Company is as set forth in the SEC Reports.  The Company has not issued any capital stock since its most recently filed periodic report. No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by this Agreement. No further approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale of the Securities.  There are no stockholders agreements, voting agreements or other similar agreements with respect to the Company’s capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s stockholders.

 

(f)           SEC Reports; Financial Statements.  The Company has filed all reports, schedules, forms, statements and other documents required to be filed by the Company under the Securities Act for the two years preceding the date hereof. The foregoing materials, including the exhibits thereto and documents incorporated by reference therein, together with the Prospectus, being collectively referred to herein as the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension.  As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading.

 

  

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3.2           Representations and Warranties of the Purchasers.  Each Purchaser, for itself and for no other Purchaser, hereby represents and warrants as of the date hereof and as of the Closing Date to the Company as follows (unless as of a specific date therein):

 

(a)           Organization; Authority.  Such Purchaser is either an individual or an entity duly incorporated or formed, validly existing and in good standing under the laws of the jurisdiction of its incorporation or formation with full right, corporate, partnership, limited liability company or similar power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement and performance by such Purchaser of the transactions contemplated by this Agreement have been duly authorized by all necessary corporate, partnership, limited liability company or similar action, as applicable, on the part of such Purchaser.  Each Transaction Document to which it is a party has been duly executed by such Purchaser, and when delivered by such Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against it in accordance with its terms, except: (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

(b)           Understandings or Arrangements.  Such Purchaser is acquiring the Securities as principal for its own account and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Securities (this representation and warranty not limiting such Purchaser’s right to sell the Securities pursuant to the Registration Statement or otherwise in compliance with applicable federal and state securities laws).  Such Purchaser is acquiring the Securities hereunder in the ordinary course of its business.

 

(c)           Experience of Such Purchaser.  Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities, and has so evaluated the merits and risks of such investment.  Such Purchaser is able to bear the economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.

 

(d)           Certain Transactions and Confidentiality.  Other than consummating the transactions contemplated hereunder, such Purchaser has not, nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, directly or indirectly executed any purchases or sales, including Short Sales, of the securities of the Company during the period commencing as of the time that such Purchaser first received a term sheet (written or oral) from the Company or any other Person representing the Company setting forth the material terms of the transactions contemplated hereunder and ending immediately prior to the execution hereof.  Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser’s assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser’s assets, the representation set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Securities covered by this Agreement.  Other than to other Persons party to this Agreement, such Purchaser has maintained the confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction). Notwithstanding the foregoing, for avoidance of doubt, nothing contained herein shall constitute a representation or warranty, or preclude any actions, with respect to the identification of the availability of, or securing of, available shares to borrow in order to effect Short Sales or similar transactions in the future.

 

  

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ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES

 

4.1           Reservation of Common Stock. As of the date hereof, the Company has reserved and the Company shall continue to reserve and keep available at all times, free of preemptive rights, a sufficient number of shares of Common Stock for the purpose of enabling the Company to issue Shares pursuant to this Agreement.

 

4.2           Listing of Common Stock. The Company hereby agrees to use best efforts to maintain the listing or quotation of the Common Stock on the Trading Market on which it is currently listed, and concurrently with the Closing, the Company shall apply to list or quote all of the Shares on such Trading Market and promptly secure the listing of all of the Shares on such Trading Market. The Company further agrees, if the Company applies to have the Common Stock traded on any other Trading Market, it will then include in such application all of the Shares, and will take such other action as is necessary to cause all of the Shares to be listed or quoted on such other Trading Market as promptly as possible.  The Company will then take all action reasonably necessary to continue the listing and trading of its Common Stock on a Trading Market and will comply in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules of the Trading Market.

 

ARTICLE V.

MISCELLANEOUS

 

5.1           Fees and Expenses.  Except as expressly set forth herein to the contrary, each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement.  The Company shall pay all Transfer Agent fees (including, without limitation, any fees required for same-day processing of any instruction letter delivered by the Company and any exercise notice delivered by a Purchaser), stamp taxes and other taxes and duties levied in connection with the delivery of any Securities to the Purchasers.

 

5.2           Entire Agreement.  This Agreement, together with the exhibits and schedules thereto, the Prospectus and the Prospectus Supplement, contain the entire understanding of the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

 

  

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5.3           Notices.  Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of: (a) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto at or prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the second (2nd) Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is required to be given.  The address for such notices and communications shall be as set forth on the signature pages attached hereto.

 

5.4           Headings.  The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.

 

5.5           Successors and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns.  The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of each Purchaser (other than by merger).  Any Purchaser may assign any or all of its rights under this Agreement to any Person to whom such Purchaser assigns or transfers any Securities, provided that such transferee agrees in writing to be bound, with respect to the transferred Securities, by the provisions of the Transaction Documents that apply to the “Purchasers.”

 

5.6           No Third-Party Beneficiaries.  This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise set forth in Section 4.8.

 

5.7           Governing Law.  All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall be governed by and construed and enforced in accordance with the internal laws of the State of Florida, without regard to the principles of conflicts of law thereof.  Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in Orange County, Florida.

 

5.8           Survival.  The representations and warranties contained herein shall survive the Closing and the delivery of the Securities.

 

5.9           Execution.  This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each other party, it being understood that the parties need not sign the same counterpart.  In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof.

 

  

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5.10         Severability.  If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

5.11         Replacement of Securities.  If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation), or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction.  The applicant for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement Securities.

 

5.12         Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business Day.

 

5.13         Construction. The parties agree that each of them and/or their respective counsel have reviewed and had an opportunity to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments thereto. In addition, each and every reference to share prices and shares of Common Stock in any Transaction Document shall be subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after the date of this Agreement.

 

WAIVER OF JURY TRIAL.  IN ANY ACTION, SUIT, OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.

 

  

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IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

	
ENGAGE MOBILITY, INC.

	 	 	
Address for Notice:

	 
	 	 	 	 	 	 
	By:	 	 	 	
Fax:

	 
	 	
Name:

	 	 	
 

	 
	 	
Title:

	 	 	
 

	 
	 	 	 	 	 	 
	
With a copy to (which shall not constitute notice):

	 	 	 	 
	 	 	 	 	 
	
Gregg E. Jaclin, Esq.

Anslow & Jaclin, LLP

195 Route 9 South, Suite 204

Manalapan, NJ 07726

Tel. No.: (732) 409-1212

Fax No.: (732) 577-1188

	 	 	 	 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

 

  

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[PURCHASER SIGNATURE PAGES TO APGS SECURITIES PURCHASE AGREEMENT]

IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.

 

Name of Purchaser: ________________________________________________________

Signature of Authorized Signatory of Purchaser: _________________________________

Name of Authorized Signatory: _______________________________________________

Title of Authorized Signatory: ________________________________________________

Email Address of Authorized Signatory:_________________________________________

Facsimile Number of Authorized Signatory: __________________________________________

Address for Notice to Purchaser:

 

Address for Delivery of Securities to Purchaser (if not same as address for notice):

 

Subscription Amount: $_________________

Shares: _________________

 

EIN Number: _______________________

o  Notwithstanding anything contained in this Agreement to the contrary, by checking this box (i) the obligations of the above-signed to purchase the securities set forth in this Agreement to be purchased from the Company by the above-signed, and the obligations of the Company to sell such securities to the above-signed, shall be unconditional and all conditions to Closing shall be disregarded, (ii) the Closing shall occur on the third (3rd) Trading Day following the date of this Agreement and (iii) any condition to Closing contemplated by this Agreement (but prior to being disregarded by clause (i) above) that required delivery by the Company or the above-signed of any agreement, instrument, certificate or the like or purchase price (as applicable) shall no longer be a condition and shall instead be an unconditional obligation of the Company or the above-signed (as applicable) to deliver such agreement, instrument, certificate or the like or purchase price (as applicable) to such other party on the Closing Date.

 

[SIGNATURE PAGES CONTINUE]

 

11fs12013a1ex10iii_engage.htm

Exhibit 10.3

 

TCS AR License and MCRM Software & Services Agreement for MarketKast

 

MCRM Platform, U/I & Analytics for MarketKast

 

This TECHNOLOGY LICENSE AND SERVICES AGREEMENT (the “Agreement”) is entered into as of January 24, 2013 (the “Effective Date”), between Total Communicator Solutions, Inc., a Delaware corporation with its principal place of business at 747 Armada Terrace, San Diego, CA 92106 (“TCS”), and “MarketKast”, a Florida  corporation  with principal place of business at 171 English Landing, Kansas City, Mo (“Customer”).

 

RECITALS

	
A.

	
WHEREAS TCS and/or its owners or affiliates are the licensees and owners of a patent pending augmented reality (AR) technology that allows businesses to upload a target image such as a logo or advertisement and allows users to point a mobile device at such target and view an AR video or image;

	
B.

	
Whereas, TCS is also engaged in providing software related services and those services identified herein; and

	
C.

	
WHEREAS Customer desires to license the AR technology and to utilize the software services offered by TCS in a branded mobile application to be designed and built by TCS; and

	
D.

	
WHEREAS the Customer desires to engage and contract for the services of TCS to perform certain tasks as set forth below, and to enter into a Technology License as defined herein;

	
E.

	
NOW, THEREFORE, in consideration of the above recitals and the mutual promises and conditions contained in this Agreement, TCS and the Customer, (the “Parties”), agree as follows:

	
1.

	
DEFINITIONS

When used in this agreement, the following terms have the meanings set forth here:

	
1.1

	
“Mobile Apps or Mobile Applications” shall refer to application software that is developed for small low-power handheld devices such as mobile phones and tablet devices.

	
1.2

	
“Nontransferable” shall mean incapable of being transferred, assigned, or otherwise assumed by any third party aside from Customer or the single corporate entity that Customer intends to form.

	
1.3

	
“Non-sub Licensable” shall mean a personal right for Customer or the single corporate entity Customer intends to form that cannot be transferred, assigned, or licensed to a third party.

	
1.4

	
“TCS Software” shall refer to proprietary software belonging to TCS and its contractors that includes a web based hosted software platform, Augemented Reality application’s unique use under the TCS patent pending applications and to which Customer shall have limited access to use including the backend to report on usage and content views.

 

 

CONFIDENTIAL AND PROPRIETARY

747 Armada Terrace § San Diego, CA 92106 § Phone: 619.277.1488 § ErikB@Communicatar.com

 

  

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1.5

	
“Personal” shall refer to the use of the software service by Customer as an individual or as a single corporate entity that Customer has indicated he intends to form.

	
1.6

	
“Software” shall mean a collection of computer programs and related data that provide the instructions for telling a computer what to do and how to do it.

	
1.7

	
“Mobile App” shall mean the application on the mobile device which customer has hired TCS to develop or integrate into, as more fully defined herein.

 

ACCESS RIGHTS; ACCOUNT

 

Subject to the terms and conditions of this Agreement, TCS grants to Customer a nontransferable, non-sub licensable, limited right to remotely access the proprietary TCS - Software (the “Software”) which includes the web based hosted software platform.  In addition, all mobile software, distributed software, web based components, etc. (Mobile Apps) are to be used for access to the Software and used only for its internal business purposes of the Corporation and only during the Service Term (as defined below), meaning not to be re-sold or re-branded to any company outside of Customer Corporation.

 

This is a contract for services, and Customer has no right to receive copies of any software or computer programs (whether in source or object code other than the Mobile App).  Instead, Customer will access the Software through a web browser and distributed Mobile Apps.  Customer will identify an administrative user name and password for its TCS account (the “Account”).  Customer shall be responsible for the security of its user name(s) and password(s), and for all uses of the Account with or without Customer’s knowledge or consent. At customer’s request, TCS shall deliver to customer copies of all software and computer programs (subject and object code) relating to the Mobile App.

 

In addition to the above, TCS and/or its owners and affiliates, hereby grant to Customer a perpetual, non-exclusive license to access, use, exploit and commercialize the patent pending and licensed AR technology owned and/or developed by TCS, as enhanced, modified, improved or replaced from time to time, for all purposes consistent with Customers business plans anywhere where Customer does business throughout the world. TCS shall, to the best of its ability, protect and defend said patent and technology at all times, and shall, to the best of its ability, provide all reasonable and necessary support, maintenance and upkeep of said technology as necessary to remain abreast of the market and industry. This Technology License shall survive the termination of this Agreement and shall stand-alone as it relates to the rights and obligations of the parties.

In consideration of the Technology License granted hereby, Customer shall pay to TCS a royalty equal to 5% of all gross revenues derived by Customer from its use of the AR technology as defined herein up to $2 million annually, 4% from $2 million to $5 million annually and 3% for all revenue above $5 million annually. Customer shall make said royalty payments to TCS monthly, on the 15th day of each month, based on gross revenues received by Customer during the preceding month, along with a revenue and royalty report providing an accounting of such revenues in a form mutually agreed by the parties.

 

 

CONFIDENTIAL AND PROPRIETARY

747 Armada Terrace § San Diego, CA 92106 § Phone: 619.277.1488 § ErikB@Communicatar.com

 

  

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In the event that TCS has good cause to believe that Customer has materially under-reported its revenues to TCS it shall have the right, upon reasonable notice, to audit the books and records of Customer for the sole purpose of determining whether it has been fully paid what it is due hereunder.

SERVICES AND SUPPORT

 

Subject to the terms and conditions of this Agreement and in consideration of Customer’s payment of the Fees set forth in Attachments hereto, during the Term hereof TCS will provide to Customer the services in connection with Customer’s access to the Software (collectively, “Services”):

 

TCS shall host, manage, operate and maintain the Software on TCS servers, and shall provide the customer support and maintenance services relating to the Software, as described and in accordance with the provisions of Attachment C (collectively, the “Platform Management Services”); and

 

TCS shall assist with the branding, setup, user training and other services more particularly described on Attachment A (collectively, the “One Time Activation & Configuration Fee”).

 

TCS shall provide customized integration and services as described on Attachment C (collectively, the “Integration”).

 

RESTRICTIONS

 

If Customer or its agents are provided access to the Software or to any software utilized by TCS in delivering the Software (collectively, the “Platform”), Customer shall not (nor shall it permit others to) directly or indirectly: (a) reverse engineer, decompile, disassemble or otherwise attempt to discover the source code, object code or underlying structure, ideas or algorithms of the Services or any Software; (b) modify, translate, or create derivative works based on the Services or any Software; (c) copy (except for archival purposes), rent, lease, distribute, pledge, or encumber rights to the Services or any Software; (d) use the Services or any Software for timesharing or service bureau purposes or otherwise for the benefit of a third party; (e) remove any proprietary notices or labels; or (f) access or attempt to access any other TCS customer accounts or restricted information.

 

The parties acknowledge and agree that the continued availability of the Software is important to Customer in the conduct of its business and, therefore, within 30 days following the Effective Date Customer will identify an agreed upon Escrow Company for TCS to deposit mobile app source code with Customer the sole beneficiary; provided, however, that, notwithstanding and in lieu of any provision in the Escrow Agreement to the contrary, the Escrow Agreement shall provide for (a) the deposit by TCS Inc of the source code of the mobile app into escrow with the Escrow Agent, including the deposit of any new Major Releases on a Quarterly basis and (b) subject to all terms and conditions of the Escrow Agreement, the release of such Software source code to Customer in the event of insolvency. All escrow code in both object and source form will be available to Customer in the Source Control System and be current to latest release in the operating environment and be transferrable via electronic form. Upon any release of the source code to Customer in accordance with the terms of the Escrow Agreement, Customer shall have a limited, non-exclusive non-transferable, non-sublicensable license to use the Software solely to maintain and support the Software for Customer’s internal business purposes.

 

The source code shall at all time remain the exclusive property of TCS, subject only to the right of Customer to use the source code under the terms of this agreement.

Customer shall use the Services only in compliance with all applicable laws (including but not limited to policies and laws related to spamming, privacy and intellectual property). Customer hereby agrees to indemnify and hold harmless TCS against any damages, losses, liabilities, settlements and expenses (including without limitation costs and attorneys’ fees) in connection with any claim or action that arises from an alleged violation of the foregoing from Customer’s misuse of the Services. Although TCS has no obligation to monitor the content provided by Customer or Customer’s use of the Services, TCS may do so and may remove any such content or prohibit any use of the Services that is in violation of the foregoing.

 

CUSTOMER’S RESPONSIBILITIES

 

Customer shall obtain and maintain any and all equipment and ancillary services needed to connect to and use its Account, including, without limitation, modems, hardware, server, software, operating system, networking, web servers, long distance and local telephone service (collectively, “Access Equipment”).

 

During the Service Term, Customer shall provide the following:

 

	
·

	
Applicable means for submitting mobile apps to distribution stores (eg. Apple’s App Store, Google Play)

	
·

	
A project manager to represent the business users

	
·

	
An IT contact to provide IT guidance and troubleshooting

	
  

	
·

	
Provide art-work, logos, branding and images with full license to use within the app in a timely fashion

 

	
  

	
·

	
Provide input, feedback and direction in a timely manner.  This will affect the delivery and production schedule.

 

	
  

	
·

	
Market, sell, promote the application in all your marketing efforts.

 

	
  

	
·

	
Provide content and use the platform to drive end user adaptation.

 

	
  

	
·

	
Provide feedback on bugs, problems, customer concerns and complaints.

 

	
  

	
·

	
Adhere to the privacy laws and restrictions included in the EULA and final agreements, as well as all other aspects in the SOW, final contacts and any license agreements with TCS, its subcontractors and partners, including but not limited to Qualcomm.

 

 

CONFIDENTIAL AND PROPRIETARY

747 Armada Terrace § San Diego, CA 92106 § Phone: 619.277.1488 § ErikB@Communicatar.com

 

  

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·

	
Allow and participate in PR and press releases

 

	
  

	
·

	
Allow TCS and Qualcomm to showcase and use as solution as a demonstration platform to showcase abilities, capabilities and marketing efforts including potential sales.

 

	
  

	
·

	
Reasonably market, sell, promote the application in all your marketing efforts.

 

	
  

	
·

	
.

 

At all times during the Service Term, Customer agrees to allow TCS to communicate with Customer’s instance of the Software in order to facilitate the web-based presentation, review usage statistics for the purposes of consulting with Customer, and enter into discussions regarding new features in future releases.

 

The AR technology is based on Qualcomm SDK which required periodic updates and communication about technology and device performance that will be retained and recorded by Qualcomm. This is defined in detail in the EULA as a mandatory requirement for the use of the technology. No personable identifiable information is shared, recorded or retained by Qualcomm. The EULA is available for review.

 

FEES; PAYMENT TERMS

 

Customer shall pay TCS a Technology License Royalty and Software Services and Management fee based on pricing (the “Fees”) specified in the Order Form attached hereto as Attachment A in accordance with the payment terms contained therein. Concurrent herewith, Customer shall issue a purchase order for the total amount of the Fees listed in the Order Form.

 

Any overdue amounts are subject to a finance charge of an annualized rate of prime plus 2% on any outstanding balance, or the maximum permitted by law, whichever is lower, plus all reasonable expenses of collection. Customer shall be responsible for all taxes associated other than taxes based on TCS’s net income.

 

TERM AND TERMINATION

 

The initial term of this Agreement shall begin on the Effective Date of the Agreement and shall be in effect for so long as described on Attachment A, which includes a multi-year services agreement and a perpetual technology license. Termination of this agreement can be made by either party with 90 days notice, however, the Technology License as set forth herein may only be terminated upon a showing of misuse of the licensed technology by Customer, or the failure of Customer to pay license fees due, following a 30 day notice and opportunity to cure.

 

CONFIDENTIAL AND PROPRIETARY

747 Armada Terrace § San Diego, CA 92106 § Phone: 619.277.1488 § ErikB@Communicatar.com

 

  

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INTELLECTUAL PROPERTY RIGHTS

 

The Software will be installed, accessed and maintained only by or for TCS, and no license is granted thereto, except for as specifically set forth herein. All patents, copyrights, trademarks, service marks, trade secrets and other proprietary rights in or related to the Software, the Documentation and all copies and modifications thereof, and TCS’s other methodologies, tools and analyses (collectively, “TCS IP”), are and will remain the exclusive property of TCS or its licensors. Customer shall not acquire any right in the TCS IP, except the limited rights to access the Software specified in this Agreement. Neither party shall take any action that jeopardizes the other’s intellectual property rights. Anything in this Agreement to the contrary not withstanding, all intellectual property rights in the Mobile App shall belong solely to customer.

 

TCS agrees and acknowledges that at all time Customer shall be the sole and exclusive owner of content Customer uploads for use in the Software (the “Software Data”), as well as all information related to the Clients and Users (as defined herein. All customer lists and information and all data generated relative to any such customer or client shall remain the sole and exclusive property of Customer, except for as described below, for all time and may not be used by TCS for any purpose other than to advance the interests of Customer hereunder.

 

The TCS platform and MCRM system retains contextual information about the users. The client will have access to this and will own it’s customers, but TCS will retain a copy of the contextual data gathered and will append this into it’s existing database. The appended database is and remains TCS property and TCS is free to use this as it sees fit as long as it is not in direct competition with Client or in any way harms the Client’s relationship with its users.

 

If any action is brought against Customer or any client of Customer claiming that the Services or the Software infringes any U.S. patent issued as of the Effective Date or any copyright, trademark or trade secret of a third party, TCS will indemnify, defend and hold Customer harmless from and against any and all damages, losses, liabilities, settlements, costs and expenses (including without limitation costs and attorneys’ fees) incurred by Customer in connection with any such infringement claim. TCS’s obligations hereunder are subject to the following: (a) Customer must notify TCS within a reasonable time of Customer’s learning of the claim (however lack or delay of notice shall not excuse TCS’s indemnification obligations except to the extent such lack or delay caused material prejudice to TCS); (b) TCS shall have sole control over the defense of the claim, including appeals and all negotiations, settlements or compromises; and (c) Customer shall provide TCS with reasonable assistance, information, and authority necessary to perform the above. Customer may be represented, at Customer’s expense, by counsel of Customer’s selection.

 

If an infringement claim described above may be or has been asserted, Customer will permit TCS, at TCS’s option, to: (a) procure the right to continue using the allegedly infringing item; (b) replace or modify the allegedly infringing item to eliminate the infringement while providing func­tionally equivalent performance; or (c) if either of the above is not commercially reasonable, terminate this Agreement and refund to Customer a pro-rated amount of the Fees prepaid by Customer relating to the infringing item for the unused portion of the Service Term.

 

 

CONFIDENTIAL AND PROPRIETARY

747 Armada Terrace § San Diego, CA 92106 § Phone: 619.277.1488 § ErikB@Communicatar.com

 

  

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CONFIDENTIALITY

 

“Confidential Information” shall mean all confidential and/or proprietary information relating to the intellectual property, planned or existing technology, research, development, products, pricing, processes, trade secrets, business plans, customers (identified or otherwise), transactions, sales, finances, and personnel data related to the business of either party and/or unrelated but received before or during the term of this Agreement. Confidential Information may be communicated orally, in writing or in any other recorded or tangible form. Confidential Information shall not include any information which the receiving party can establish: (a) is already rightfully known to the receiving party at the time of disclosure; (b) is or becomes public knowledge through no fault of the receiving party; (c) is received without an obligation of confidentiality from a third party having the lawful right to disclose same; or (d) is required by law to be disclosed. In addition, the terms of this Agreement shall be considered to be each party’s Confidential Information.

 

Each party acknowledges the confidential and proprietary nature of the other party’s Confidential Information and agrees that it shall not reveal, disclose or use (other than for purposes of this Agreement) any Confidential Information of the other for any purpose to any other person, firm, corporation, or other entity, other than its employees with a need to know such Confidential Information to perform employment responsibilities consistent with this Agreement. Each party shall use the same standard of care that such party uses to protect its own most confidential information, but in no event less than a reasonable standard of care. Each party shall inform its employees of their obligations under this Agreement and shall take such steps as may be reasonable under the circumstances, or as may be reasonably requested by the other party, to prevent any unauthorized disclosure, copying, distribution, or use of such other party’s Confidential Information. In addition to the foregoing, each party to this Agreement shall be bound by the terms and conditions of the Mutual Confidentiality Agreement previously executed by the parties.

 

The parties acknowledge that the covenants herein are unique and integral to this Agreement and that monetary damages would be an inadequate remedy at law in the event of a breach. For that reason, the parties consent that such covenants shall be enforceable in a court of equity by temporary or permanent injunction, restraining order or a decree of specific performance. The remedies provided above shall be cumulative and not exclusive and are in addition to any other remedies that either party may have under this Agreement or applicable law.

 

TCS acknowledges that Customer is a public company, and as such is subject laws regarding insider trading or use of public information. Neither TCS, nor any of its officers, directors or employees will utilize any information gained as a result of its relationship with Customer to trade in the stock of Customer, nor shall it share any non-public information with any third party. Any and all revenues and sales figures provided by Customer under the Technology License shall remain at all times strictly confidential and shall not be shared with any third parties or used for any reason by TCS, or its officers, directors or employees.

 

CONFIDENTIAL AND PROPRIETARY

747 Armada Terrace § San Diego, CA 92106 § Phone: 619.277.1488 § ErikB@Communicatar.com

 

  

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WARRANTIES; DISCLAIMER

 

TCS warrants that it shall perform the Services with skill and care, using suitably qualified personnel and / or subcontractors and / or contract personnel in a manner consistent with industry standards. In addition, TCS shall use all commercially reasonable efforts to maintain the availability of the Software in a manner that minimizes errors and interruptions. The Software may be temporarily unavailable for scheduled maintenance or for unscheduled emergency maintenance, either by TCS or by third-party providers, or because of other causes beyond TCS’s reasonable control, but TCS shall use all commercially reasonable efforts to provide advance notice in writing or by e-mail of any scheduled service disruption.

 

TCS DOES NOT WARRANT THAT THE SOFTWARE WILL FUNCTION UNINTERRUPTED OR ERROR FREE; NOR DOES IT MAKE ANY WARRANTY AS TO THE RESULTS THAT MAY BE OBTAINED FROM USE OF THE SOFTWARE. THE ABOVE WARRANTIES ARE EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES, WHETHER EXPRESS, IMPLIED OR STATUTORY, INCLUDING WITHOUT LIMITATION THE IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND UNINTERRUPTED USE.

 

LIMITATIONS ON LIABILITY

 

EXCEPT FOR LIABILITY RELATED TO BREACHES OF SECTIONS 8 OR 9, NEITHER CUSTOMER, TCS, NOR THEIR RESPECTIVE OFFICERS, AFFILIATES, CONTRACTORS AND EMPLOYEES SHALL BE RESPONSIBLE OR LIABLE WITH RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT OR TERMS AND CONDITIONS RELATED THERETO UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY OR OTHER THEORY FOR ANY INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES.

 

IN ADDITION, EXCEPT FOR CLAIMS UNDER SECTION (4.1) AND THE ENTIRETY OF SECTIONS 8 AND 9 AND EXCEPT FOR AMOUNTS PROPERLY PAYABLE TO TCS HEREUNDER, IN NO EVENT SHALL THE AGGREGATE LIABILITY THAT EITHER PARTY MAY INCUR IN ANY ACTION OR PROCEEDING EXCEED THE SERVICE FEES PAID BY CUSTOMER TO TCS IN THE PREVIOUS 12 MONTHS UNDER THIS AGREEMENT.

 

MARKETING

 

The parties have agreed on a form of press release announcing the Technology License and Agreement to be issued as soon as practicable following the Effective Date. In addition, Customer agrees to issue a second press release announcing its subscription for the Software at such time as requested by TCS. In addition, Customer hereby grants to TCS a non-exclusive license to use Customer’s names, trade names, trademarks and logos as may be designated from time to time by Customer (“Customer’s Trademarks”) for the limited purpose of including and displaying Customer’s Trademarks in TCS’s marketing materials and on the TCS website.

 

Customer may, at its discretion: (a) act as a reference for the Software and the Services, including providing quotes from suitable executive level personnel for marketing materials and access; (b) make available Customer management for promotional purposes at times that are convenient for Customer; (c) participate in interviews to be used by TCS in marketing collateral; and (d) assuming reasonable notice and availability of personnel, make joint appearances at industry conferences and events.

 

 

CONFIDENTIAL AND PROPRIETARY

747 Armada Terrace § San Diego, CA 92106 § Phone: 619.277.1488 § ErikB@Communicatar.com

 

  

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GENERAL INDEMNIFICATION

 

TCS shall defend, indemnify and hold harmless Customer, its affiliates and their respective officers, directors, employees, customers, agents and representatives from and against any and all claims, losses, injuries, penalties, damages, fines, liabilities, demands, costs and expenses (including without limitation reasonable attorney’s fees) arising out of or relating to: (a) TCS’s breach of any obligation, representation or warranty under this Agreement; (b) the provision of Services by TCS or any employee, independent contractor or agent, including without limitation the negligence or willful misconduct of TCS or any employee, independent contractor or agent, or (c) any claim that any of the TCS’s employees, independent contractors or agents is an employee or independent contractor of Customer or any claim by any such individual or company for wages or benefits.

 

MISCELLANEOUS

 

This Agreement, including the Attachments hereto, is the complete and exclusive statement of the mutual understanding of the parties regarding the subject matter hereof and supersedes and cancels all previous written and oral agreements, communications and other understandings relating to the subject matter of this Agreement, and that all waivers and modifications must be in a writing signed by both parties by an authorized officer of each party, except as otherwise provided herein.

 

If any provision of this Agreement is found to be unenforceable or invalid, that provision will be limited or eliminated to the minimum extent necessary so that this Agreement will otherwise remain in full force and effect and enforceable.

 

The parties are independent contractors. This Agreement does not create any agency, employment, partnership, joint venture, franchise or other similar relationship between the parties. Neither party will have the right to assume or create any obligations or to make any representations, warranties or commitments on behalf of the other party, whether express or implied, or to bind the other party in any respect whatsoever. Each party shall be solely responsible for any benefits, insurance and taxes related to its employees, servants and agents, as well as any claims, damages or lawsuits arising out of its acts or those of its employees, servants or agents or any of them.

 

Neither this Agreement nor any rights or licenses granted hereunder may be sold, leased, assigned, or otherwise transferred, in whole or in part, by either party, and any such attempted assignment shall be void and of no effect without the prior written consent of the other party. This means, among other things, that unless Customer obtains TCS’s prior written consent, Customer cannot assume, assume and assign, or otherwise transfer this Agreement in a bankruptcy case of Customer or any dissolution, reorganization, or winding up of Customer’s business, whether voluntary or involuntary. The foregoing notwithstanding, such consent shall not be required if: (a) TCS assigns this Agreement in connection with a reorganization, merger, acquisition, sale of all or substantially all of its assets; (b) TCS assigns its right to receive and collect payments hereunder; or (c) Customer assigns this Agreement to a successor in interest in connection with a merger, acquisition or sale of all or substantially all of its assets or as part of general corporate restructuring, but only if such successor: (i) is not a competitor of TCS, and (ii) agrees in writing to be bound to the terms and conditions of this Agreement, and provided that any such assignment does not enlarge the scope of the usage of the Software or TCS’s obligations hereunder.

 

 

CONFIDENTIAL AND PROPRIETARY

747 Armada Terrace § San Diego, CA 92106 § Phone: 619.277.1488 § ErikB@Communicatar.com

 

  

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This Agreement shall be binding on, inure to the benefit of, and be enforceable by the parties and their respective successors and permitted assigns.

 

To the extent provided herein, each party’s performance under this Agreement is excused to the extent it is prevented or delayed by reason of war, acts of terrorism, civil disorders, epidemics, quarantines, embargoes, fires, earthquakes, storms, or Acts of God, the effects of which cannot be avoided by the exercise of reasonable diligence.

 

Any notice required or permitted to be given under this Agreement shall be in writing and delivered either by hand, email, certified mail, return receipt request, postage prepaid, or Federal Express or other commercial overnight delivery service with tracking capabilities, all delivery charges prepaid, and address to the applicable party’s address set forth in this Section below or such other addresses as to which the party has notified the other party in accordance with this Section. Notice shall be deemed effective upon receipt, provided, however, that notice sent by certified mail shall be deemed received five (5) days after posting unless received sooner

 

	 	
If to TCS:

	
TCS, Inc.

747 Armada Terrace

San Diego, CA 92106

Attn:  Erik Bjontegard

	 	 	 
	 	If to Customer:   	Customer:  	MarketKast, Inc.
	 	 	
171 English Landing

Kansas City, Mo

 

Attn: James Byrd, CEO

 

This Agreement shall be governed by, construed under and enforced in accordance with the laws of the State of Delaware, without regard to its conflicts of law principles.

 

This Agreement may be executed in counterparts, including counterparts executed and delivered by facsimile, each of which shall be deemed to be an original, and both of which together shall constitute one and the same instrument.

 

	Total Communicator Solutions, Inc.  	 	Customer: MarketKast, Inc.
	 	 	 
	By:	 	 	By:	 
	Erik Bjontegard, President  	 	 James Byrd, CEO
	 	 	 

 

	Date:  	 	 	Date:  	 

 

 

The rest of this page is intentionally left blank

 

 

CONFIDENTIAL AND PROPRIETARY

747 Armada Terrace § San Diego, CA 92106 § Phone: 619.277.1488 § ErikB@Communicatar.com

 

  

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CONFIDENTIAL AND PROPRIETARY

747 Armada Terrace § San Diego, CA 92106 § Phone: 619.277.1488 § ErikB@Communicatar.com

 

  

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 ATTACHMENT A

 

	 	
Services

	 	 	
Fee

	CRM PLATFORM, AR TECHNOLOGY & USAGE FEES MONTHLY LICENSE FEE	 	 	 
	●	The monthly license fee includes integration into a single property mobile application including initial training, ongoing support, maintenance and uptime	 	 	
Up to 50,000 users; $ 500/month

50,001 – 150,000 users; $1,500/mo

150,001 – 249,999 users $3,000/mo

250,000 – 499,999 users; $ 5,000/mo

500,000 up to 2,000,000 users; $ 10,000/mo

Over 2 million users, $15,000/mo

	●	Technology License and Usage Fees – monthly royalty for license of patent pending and patented AR technology	 	 	
Over 2 million users, $15,000/mo

5% of all gross revenues generated from use of AR video technology, payable monthly from prior month

up to annual revenues of $2,000,000, 4% on revenues from $2,000,000 to $5,000,000 and 3% on revenues above $5 million annually.

	
Mobile app development with 

PLATFORM CONFIGURATION & ACTIVATION

	 	 	 
	●	Integration of Categories and Alerting Into Mobile App & Configuration of MCRM Platform as per SOW attached as including integration of AR technology for both client and user engagement with the ability to upload AR targets and play videos on the defined AR targets	 	 	
$75,000

 (One-Time Fee for development of and integration into iPhone and Android Mobile App)

	 	 	 	 	 
	ONGOING INTEGRATION AS NEEDED	 	 	 
	●	Integration of the mobile and platform components to customer specific merchant systems as well as new features specific and non-specific to Customer vertical – on as needed basis	 	 	
Billed on Time & Materials Basis as needed and agreed upon by both parties

 

$65.00 / Hour - Offshore Engineering & Development

 

$125.00 / Hour - Onshore Development and Project Management

	 	 	 	 	 
	VARIABLE HOSTING FEES	 	 	
Amazon Web Services

Included in Monthly fees

	 	 	 	 	 
	 	
USAGE FEES:

	 	 	
Standard Usage fees include:

	 	 	 	 	 
	●	
Delivery – Cost of message delivery per CPM

	 	 	●	Delivery Fee per message
	●	Proof of Presence	 	 	●	Success Fee per opened and acted upon message
	●	Success Fee (message opened / acted upon)	 	 	●	Affiliate / Commission Fees
	●	Commissions on sales	 	 	●	Sponsorship Fee
	 	 	 	 	 
	 	 	 	 	
These fees have been included in the gross revenue license fee and do not apply

 

Usage Fees are covered above in the monthly CRM Platform, AR Technology and Usage Fee

 

 

CONFIDENTIAL AND PROPRIETARY

747 Armada Terrace § San Diego, CA 92106 § Phone: 619.277.1488 § ErikB@Communicatar.com

 

  

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Total Costs including building the Mobile Communication Platform;

Mobile Application in iOS and Android , Augmented Reality Re-Play on User Defined AR Targets,

Full integration & branding of the Platform and Mobile App:

 

US$ 73,000

 

$24,000 upon contract execution

$24,000 on delivery of satisfactory alpha demo as defined

$25,000 on final satisfactory delivery and publication to App Stores & Play

 

 

This proposal is valid until 2-3-13

This proposal is null and void unless executed by this date

 

CONFIDENTIAL AND PROPRIETARY

747 Armada Terrace § San Diego, CA 92106 § Phone: 619.277.1488 § ErikB@Communicatar.com

 

  

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CONFIDENTIAL AND PROPRIETARY

747 Armada Terrace § San Diego, CA 92106 § Phone: 619.277.1488 § ErikB@Communicatar.com

 

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