Document:

exv10w21

 

Exhibit 10.21

A Smart Move L.L.C. Service Agreement

     This Agreement made on the 9th day of May 2005, by and between A Smart Move, L.L.C., a
Colorado COMPANY, (dba Smart Move) its successors and assigns whose principal place of business is
located at 5350 South Roslyn — Suite 380, Denver, Colorado 80111, and Overnite Transportation
Company and assigns whose principal place of business is situated at 1000 Semmes Avenue, Richmond,
VA 23224

     A Smart Move L.L.C. herein called “COMPANY” and the service provider herein called “OVERNITE”
hereby agree to an operating agreement for services including but not limited to container
delivery, pickup, line haul transportation and storage. OVERNITE accepts such appointment, and both
parties in consideration of the mutual covenant and agreements herein, agree as follows:

SCOPE OF AUTHORITY

     The COMPANY will introduce OVERNITE to companies, individuals or other entities that are
actual buyers and users of the Smart Move suite of services including container delivery,
container pickup, container line haul transportation, and container storage. The COMPANY will
notify OVERNITE of business “transactions” in a timely manner and COMPANY will arrange with
customer for scheduling of services including delivery and pickup. OVERNITE will not be
required to negotiate with customer regarding cost of services.

TERM OF AGREEMENT

     COMPANY does hereby engage OVERNITE, as their service provider, to deliver, pickup, and
possibly store containers, for a period of thirty-six (36) months from the date of this Agreement
(the “Primary Term”), and shall continue month to month thereafter, provided however, that either
party may terminate this Agreement at any time by giving the other party ninety (90) days written
notice of termination. Upon the expiration of the Primary term the parties agree to negotiate in
good faith in an effort to conclude mutually acceptable terms for continuation of the arrangements
effectuated by this Agreement

DUTIES OF COMPANY

	 	1.	 	To make available all forms and communications needed by OVERNITE to perform the
service of business for COMPANY.
	 
	 	2.	 	To keep OVERNITE informed as to pickup, deliveries, transportation and storage on
a timely basis.
	 
	 	3.	 	To arrange for and transfer all shipments booked by COMPANY, on the
carrier and equipment designated by the COMPANY with reasonable notice, as promptly as
operating conditions will permit.

1

 

	 	4.	 	To provide equipment necessary to perform the duties of OVERNITE (see
attached exhibit 1).
	 
	 	5.	 	COMPANY is responsible for all costs associated with the service, repair and
regular maintenance of the provided assets. COMPANY will pay all fees associated with
license, tags or registration of the trailers and forklifts. COMPANY will also
reimburse OVERNITE for any out of pocket expenses incurred with respect to the COMPANY
assets, including the forklifts, trailers, tractors, and Smart Vault containers.
	 
	 	6.	 	To provide insurance coverage for the equipment, the container and its contents,
and transit insurance for the common carrier shipment. COMPANY shall name OVERNITE as a
“certificate holder” and furnish a copy of its current insurance Certificate. COMPANY
shall not cancel or materially change its insurance coverage without first giving
OVERNITE 30 days notice of such change.
	 
	 	7.	 	To provide necessary operational instructions and technical training to operate
the COMPANY’s equipment.
	 
	 	8.	 	To provide OVERNITE with the necessary “ORDER FOR SERVICE” form for each customer
shipment.

DUTIES OF OVERNITE

     OVERNITE accepts such engagement, and for the period herein specifically agrees to endeavor to
perform in a responsible and professional manner in business practices within its Territory.

1. OVERNITE shall require its employees, representatives, directors, officers, and
affiliates to faithful, honestly and properly represent the COMPANY in an active and
aggressive and intelligent manner in service of the COMPANY and to provide only services of
the highest caliber to the Smart Move customers and partners. To conduct its business in
such a manner that it reflects positively upon OVERNITE and the COMPANY.

2. To represent COMPANY on a non-exclusive basis. COMPANY is free to utilize other
service providers and OVERNITE is free to provide similar services to other companies.

3. To allow any authorized representative of COMPANY to inspect the records and equipment
of OVERNITE insofar as these records relate directly to the performance of the OVERNITE’S
obligation under this agreement.

4. That all trade names, trademarks, service marks, slogans, or color combinations,
designs, now or hereafter owned or used by COMPANY, are, as between COMPANY and OVERNITE
solely and exclusively owned by COMPANY, and neither are, nor ever will become the property
of OVERNITE.

2

 

5. To aid COMPANY upon request in the investigation and adjustment of claims.

6 OVERNITE’s drivers must have current Commercial Driver License Class A. (CDL).
OVERNITE is responsible to keep all required DOT records current.

7. OVERNITE to conduct all phases of business practices and operation, in accordance with
COMPANY’S procedural, operational, accounting, and sales directives provided such
procedures and directives are reasonable and made known to OVERNITE in advance.

8. OVERNITE is responsible for monitoring and conducting a pre-trip DOT inspection,
which would include the inspection of the Company’s trailers. In addition the OVERNITE
will monitor, maintain, and schedule maintenance as needed for the COMPANY provided
forklifts in order to ensure proper operating condition. The costs for any maintenance or
repairs on the COMPANY trailers and forklifts will be the sole responsibility of the
COMPANY.

9. OVERNITE will maintain and provide copies of all work orders that specify actual
repairs made to Company’s assets.

10. OVERNITE will get prior approval for any repair over five-hundred dollars
($500.00) or beyond normal maintenance.

11. Where COMPANY assets are lost or damaged (beyond normal wear) due to fault or
negligence of OVERNITE, OVERNITE agrees to be responsible for the repair or replacement.

12. On all COD deliveries, OVERNITE will be required to remit any money received within a
reasonable period of time to the COMPANY.

13. OVERNITE will not be required to complete a bill of lading or provide a proof of
delivery to COMPANY to prove completion of service. However, OVERNITE must have the
COMPANY customer sign the ORDER OF SERVICE form in the designated areas as required by
COMPANY.

14. OVERNITE will give 90 day written notice to COMPANY of its intent to perform the same
or substantially similar services to those of COMPANY, as described in Exhibit 2.

15. Where advance notice has been received from COMPANY and operating conditions permit,
OVERNITE agrees to provide the services described herein on Saturdays, Sundays and
Holidays.

3

 

INSURANCE

     This AGREEMENT requires the following minimum levels of insurance to be in effect for both
OVERNITE and the COMPANY.

	 	•	 	Comprehensive General Liability — $1,000,000 each Occurrence and a $2,000,000
Aggregate.
	 
	 	•	 	Business Automobile Liability — $1,000,000 Combined Single Limit
	 
	 	•	 	Workers Compensation – Statutory limits with employer’s limit of at least $500,000
	 
	 	•	 	Cargo/Terminal Liability – Release Bill of Lading Limit and as required by this
Agreement.

	 	a.	 	OVERNITE is to Name the COMPANY and affiliated companies, as an
“additional insured on each of its Commercial General and Business Automobile
Liability Policies to the extent of OVERNITE’S obligation to indemnify COMPANY..
OVERNITE shall furnish COMPANY with a current Certificate of Insurance.
	 
	 	b.	 	Provide for at least thirty-days (30) advance written notice to the other
party of any cancellation or any material change in the coverage.
	 
	 	c.	 	Insurance Carrier must be rated at least an A- or better by the A.M.
Best’s Guide.

INDEMNITY

     Each party must indemnify and hold harmless the other party, the other party’s parents,
subsidiaries and affiliated companies, and all of their respective officers, managers, directors,
employees and agents from any and all liabilities, damages, claims, suits, judgments, costs and
expenses (including reasonable attorney’s fees and court costs), directly or indirectly incurred in
relation to third party claims against a party hereto as a result of:

	 	1)	 	the negligence or willful misconduct of that party relating to the
performance of services under this Agreement;
	 
	 	2)	 	alleged patent, trademark or copyright infringement or any claims by third
persons based upon or arising out of or in connection with any statements,
illustrations, research data, advertising, product claims, representations or
warranties of that party for the purposes of this Agreement;
	 
	 	3)	 	any and all claims, demands, actions, and causes of action which are
hereafter made or brought against that party by any person for the recovery of damage
for the injury, illness, or death of any person which is caused or alleged to have
been caused by the negligence or willful misconduct of any services/products provided
by the other party hereto.

4

 

	 	4)	 	a party’s failure to maintain the minimum levels of insurance described
herein.

     These obligations survive the termination of this Agreement.

COMPENSATION

     OVERNITE will charge and COMPANY will pay for services performed under this Agreement at the
rates and charges as calculated from the schedule of rates and charges attached hereto as (Exhibit
A) and any written supplements or revisions thereof mutually agreeable to OVERNITE and COMPANY.
Payment by COMPANY will be made within thirty (30) days of date shown on OVERNITE’S invoice.
COMPANY shall remit payment to OVERNITE at PO Box 79755 Baltimore, MD 21279 including specific
remittance advice (OVERNITE freight bill number). No offsets may be taken against invoiced
charges.

HAZARDOUS OR ILLEGAL MATERIALS

     COMPANY represents to OVERNITE that customers have been notified that no hazardous materials
(as defined by the Hazardous Materials Transportation Act, 49 U.S.C. §5101 et seq., as amended and
by the regulations of the U. S. Department of Transportation or other governing agencies) or
illegal materials, may be loaded in containers or tendered to OVERNITE under this Agreement.
COMPANY agrees to indemnify and hold harmless OVERNITE and its parents, subsidiaries and affiliated
companies, and all of their respective officers, managers, directors, employees and agents from any
and all liabilities, damages, claims, suits, judgments, costs and expenses (including reasonable
attorney’s fees and court costs), directly or indirectly incurred arising or resulting from the
loading of hazardous or illegal materials into COMPANY containers.

CUSTOMER SITE/LOCATION

     OVERNITE will comply with all reasonable requests from COMPANY or customer regarding the
placement of a container or equipment at a customer site location. COMPANY agrees to indemnify and
hold OVERNITE harmless from any fines or claims levied against OVERNITE, its parents, subsidiaries,
affiliates, or employees, arising from the placement of such container or equipment, and from any
third party claims arising from the injury, illness or death to persons resulting from the physical
opening of a loaded container at customer site location. In no case shall OVERNITE be liable for
any incidental, consequential, special, punitive, or exemplary damages.

LOSS AND DAMAGE CLAIMS

     Claims for loss or damage to cargo shall be handled between COMPANY and customer. OVERNITE
shall have no liability for loss and damage to cargo absent any negligence or willful misconduct on
the part of OVERNITE. In such cases, OVERNITE liability for cargo shall be for actual value not to
exceed 10 cents per pound. Any loss or damage claim must be presented to OVERNITE within 3 months
of delivery of the container or in the case of non-delivery, 3 months from the date the container
should have delivered.

5

 

FORCE MAJEURE OR LEGAL RESTRAINT

     Neither COMPANY nor OVERNITE shall be held liable for any loss, damage, delay or failure to
perform any of the terms and provisions of this Agreement resulting from any cause beyond the
reasonable control of either party, including without limitation, acts of God, fires, strikes,
labor disturbances, equipment shortages, federal and state legislation or regulation, riot, war,
weather conditions, acts of the public enemy, acts of terrorism, local or national disruptions to
the transportation networks or operations, fuel shortages, governmental request or requisition for
national defense, and provided that the applicable cause is not attributable to the acts or
omissions of such party.

CHANGES IN ECONOMIC CONDITIONS / RIGHT OF TERMINATION

     In the event that as a result of business or economic developments occurring after the
effective date hereof, the transactions contemplated by this Agreement cannot be implemented or
continued by a party hereto without undue cost, loss or detriment to such party, the party
experiencing such adverse consequences shall have the right, upon notification to the other party
of the particulars of such developments, to cancel this Agreement effective ninety (90) days after
the giving of such written notice.

NO TERMINATION UPON SALE OR MERGER

     In the event of the sale, lease, or transfer of COMPANY’s rights in the property or the
Property to any other person, payments due hereunder shall survive and pass unto and be honored by
and binding upon such party’s respective heirs, legal representatives, successors, and assignees.

SUCCESSORS AND ASSIGNS OF PARTIES

     This Agreement shall be binding upon and inure to the benefit of the executors, personal
representatives, heirs, devisees, legatees, successors and assigns of the Parties.

CONFIDENTIALITY

     COMPANY and OVERNITE must hold in strictest confidence and may not disclose to others or use
other than for purposes of this Agreement any data, reports, writings and communications and any
other information provided to, learned by or made available to them by the other party in the
course of this Agreement (collectively referred to as “Information”) except as the other party
expressly authorizes in writing. Both COMPANY and OVERNITE acknowledge that all Information
provided by them in connection with this Agreement constitutes trade secret data and/or proprietary
information of great value. Both COMPANY and OVERNITE agree not to use such Information in any way
for their own benefit. This obligation of strict confidentiality is also applicable to each
party’s employees. It continues for five (5) years beyond the end of the Agreement. In the event
that either party receives notice of an attempt by anyone to obtain a court order compelling any
disclosure of any Information, they shall immediately notify the other party.

6

 

     Nothing in this section in any way restricts or impairs either party’s right to use, disclose
or otherwise deal with any Information or data which:

	 	1)	 	at the time of disclosure is generally available to the public or thereafter
become available to the public by publication or otherwise through no act of that
party;
	 
	 	2)	 	that party can demonstrate was within its possession prior to the time of
disclosure and was not acquired directly or indirectly from the other party or any
person, firm or corporation acting on its behalf, or
	 
	 	3)	 	is independently made available as a matter of right to either party by a
third party who is under no confidentiality obligation to the other party.

GENERAL COVENANTS

1. That all provisions hereof shall be construed and executed in a manner consistent with
the United States Department of Transportation, (“DOT”) Federal Motor Carrier Safety Administration (“FMSCA”) and all other local applicable laws,
and with such lawful rules, regulations, and directives as are issued pursuant thereto.

2. This agreement and the parties’ rights hereunder may not be assigned, or pledged as
security by either party hereto without the express written consent of the party.

3. That, except as herein specifically stated, OVERNITE shall have no right to act for
COMPANY, nor to obligate neither in any manner or form whatsoever, nothing contained
herein, nor in the relationship between OVERNITE and COMPANY shall empower OVERNITE to
accept or receive Service of Process on behalf of COMPANY.

4. COMPANY reserves the right to sell its services directly to any prospective customer
without incurring any liability to OVERNITE.

5. COMPANY and OVERNITE shall each have the right to review and audit at reasonable
intervals the records and information maintained or acquired by the other party hereto for
the purpose of determining, verifying or analyzing any deliveries, retrievals, charges or
credits arising in the course of performance of this Agreement. Any expenses incurred by a
party in relation to record keeping or reporting of information contemplated by this
Agreement, shall be borne by the party charged with maintaining such records and providing
such information. Expenses incurred by a party in relation to audits performed hereunder
shall be borne by the party undertaking such audit.

7

 

6. The failure of either party to enforce any provision of this Agreement shall not

be construed as a waiver or limitation of that party’s right to subsequently enforce and
compel strict compliance with every provision of this Agreement.

7. OVERNITE agrees to comply with the COMPANY’s policies and procedures, rules and
regulations and with the policies, procedures, rules and contractual requirements, which
may be established by the COMPANY and/or a Customer in relation to a specific Contract
Assignment provided such policies and procedures are reasonable and made known to OVERNITE.

8. This Agreement and the performance hereof shall be construed in accordance with, and
governed by the internal laws of the state of Colorado.

9. If any term, provision or covenant of this Agreement shall be held invalid or
unenforceable for any reason, the remaining provisions shall continue to be valid and
enforceable.

NOTICES

     All notices or other communications required by this Agreement shall be in writing and shall
be sent by courier, registered, certified or first-class mail or telefacsimile and shall be
regarded as properly given in the case of a courier upon actual delivery to the proper place of
address; in the case of a letter, seven (7) days after the registered, certified or first-class
mailing date if the letter is properly addressed and postage prepaid; in the case of telefacsimile,
on the day following the date of transmission if properly addressed and sent to the correct number;
and shall be regarded as properly addressed if sent to the parties or their representatives at the
addresses provided to the parties as follows:

	 	 	 
	A Smart Move L.L.C.

	 	Overnite Transportation Company
	Attn: Chris A. Sapyta

	 	Russ C. Kingery
	5350 South Roslyn, Suite 380

	 	1000 Semmes Ave.
	Denver, Colorado 80111

	 	Richmond, VA 23224
	Telephone: 720-488-0204

	 	Telephone: 804-291-5725
	Facsimile: 720-488-0199

	 	Facsimile: 804-291-5076

ACCOUNTING PROCEDURES

     COMPANY shall specify and may periodically supplement or revise basic accounting procedures to
be implemented by the parties in relation to the transactions contemplated by this Agreement. Such
accounting procedures shall not impose any material obligation on OVERNITE that is not set forth in
the body of this Agreement.

8

 

OVERNITE WARRANTIES

     OVERNITE hereby represents and warrants to COMPANY that:

1. OVERNITE is a legally existing entity with the authority to enter into this Agreement.

2. OVERNITE and its Employees warrant that they have complied and will comply fully with all
applicable laws, regulations, statutes, and ordinances both State and Federal.

ATTACHMENTS and EXHIBITS

     All Attachments and Exhibits attached to or referred to in this Agreement are incorporated
into and made a part of this Agreement.

COMPLETE AGREEMENT

     This Agreement sets forth the complete agreement between the Company and Contractor with
respect to Contract Assignments covered hereby and no additions, alterations or modifications to
any of the terms of the Agreement will be binding on a party unless evidenced by a written
amendment signed by the parties or a supplement to Exhibit “A” hereto duly signed or initialed by
the parties for identification.

IN WITNESS WHEREOF, the Parties hereto have set their hands hereinbelow on the date above first
written.

	 	 	 	 	 	 	 	 	 	 	 
	A Smart Move L.L.C.	 	 	 	Overnite Transportation Company	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Chris A. Sapyta	 	 	 	By:	 	/s/ Russ C. Kingery	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	     Chris A. Sapyta, CEO
	 	 	 	 	 	     Russ C. Kingery	 	 
	Title:

	 	CEO
	 	 	 	Title:
	 	Manager — Contracts	 	 

9

 

EXHIBIT A

SCHEDULE OF SERVICES: RATES AND CHARGES-OVERNITES INCOME

I. Container Charges —     Charges are per container (See notes 1 – 12 below)

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Flat Charge per	 	 
	 	 	Flat Charge per	 	Container when P/U and	 	Flat Charge per
	 	 	Container	 	DEL are not performed	 	Container for
	Miles	 	Primary Rate Column	 	by OVNT	 	Repositioning
	1 — 499
	 	 	*	*	 	 	*	*	 	 	*	*
	500
— 999
	 	 	*	*	 	 	*	*	 	 	*	*
	1000
— 1499
	 	 	*	*	 	 	*	*	 	 	*	*
	1500
— 1999
	 	 	*	*	 	 	*	*	 	 	*	*
	2000
— 2499
	 	 	*	*	 	 	*	*	 	 	*	*
	2500 and up
	 	 	*	*	 	 	*	*	 	 	*	*

 

			
	**	 	Portions of this exhibit have been omitted and filed separately with the SEC. Confidential treatment has
been requested with respect to the omitted portions.**

Accessorial Exceptions

**Portions of this exhibit have been omitted and filed separately with the SEC. Confidential
treatment has been requested with respect to the omitted portions.**

This Exhibit A is effective May 9, 2005.

	 	 	 	 	 	 	 	 	 	 	 
	A Smart Move L.L.C.	 	 	 	Overnite Transportation Company	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Chris A. Sapyta	 	 	 	By:	 	/s/ Russ C. Kingery	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	     Chris A. Sapyta, CEO
	 	 	 	 	 	     Russ C. Kingery	 	 
	Title:

	 	CEO
	 	 	 	Title:
	 	Manager — Contracts	 	 

 

 

EXHIBIT 1

EQUIPMENT to be provided to OVERNITE: 

COMPANY will provide the following equipment to OVERNITE:

1) 32 foot flat bed trailer, equipped with fork mount lift kit and tie down winches

2) trailer mounted forklift: Palfinger, Crayler CR55 

3) asset containers — SmartVaultTM measuring (72”W x 90”L x 88”H)

4) furniture pads

	 	 	 	 	 	 	 	 	 	 	 
	A Smart Move L.L.C.	 	 	 	Overnite Transportation Company	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Chris A. Sapyta	 	 	 	By:	 	/s/ Russ C. Kingery	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	     Chris A. Sapyta, CEO
	 	 	 	 	 	     Russ C. Kingery	 	 
	Title:

	 	CEO
	 	 	 	Title:
	 	Manager — Contracts	 	 

 

 

EXHIBIT 2

Definition of the Business

The Company offers a container system solution for the Office and Household Moving industry.
Customers will be given a more convenient, more efficient, more secure, and lower cost move as
compared to today’s traditional moving industry leaders. The important components to the solution
are; (1) the company offers a specialized container and the ability to deliver this container to
the consumer in a residential market, by the use of a specialty forklift and flat bed truck or
trailer. (2) The size or physical dimensions of these containers are key, because they have been
designed to allow them to be shipped over the road, across country, inside any standard trailer van
used in today’s trucking industry and sea container shipping methods. (3) The container can be
handled in the warehouse and on the trailers with the use of industry standard forklift machinery,
no special loading devices specific to the Smart Move containers are needed. The Company’s goal is
to become best in class as a supplier of moving alternatives and service to the consumer household
and business goods moving and relocation industry.

Business Model

The fundamental operational aspect of the Company is the building of a global pool of moving
containers that are independent assets that can be deployed for residential and commercial moving
purposes. The Company will utilize a network of warehouse and distribution centers to provide
storage and local delivery of the container assets. The Company anticipates maintaining this pool
of independent container assets and utilizing the network of locations to meet production demands
by optimising freight costs.

Several means will be used to optimise the fleet of the Smart VaultTM containers:

	 	-	 	usage of IT-based asset-management tools,
	 
	 	-	 	optimisation algorithms to minimize the fleet size by maximizing the usage of each
container and
	 
	 	-	 	inventory control systems to achieve transparency of the fleet.

Through superior container asset management, the Company can achieve economies of scale far beyond
the scales of a single moving company. This results in lower unit costs, higher service levels,
better asset standardization and a maximized purchasing power of the Company with the container
manufacturer.

 

 

Products and services

The product offered to the customer will include, but not be limited to, the following
comprehensive services pertaining to the management of household goods relocation and potential
commercial moves, that utilize the Company’s Smart VaultTM containers.

	 	-	 	Day-to-day supply of Smart VaultTM containers
	 
	 	-	 	Inventory planning and management to optimise stock of the pool
	 
	 	-	 	Sourcing and leasing
	 
	 	-	 	Maintenance management
	 
	 	-	 	Product development and updates to container equipment and GPS tracking technology.

     The Company will market it services via the web and various direct marketing means. The
Company will also use purchased leads from leading moving web sites and leading job search web
sites to captures consumers who are in the need for moving services.

	 	 	 	 	 	 	 	 	 	 	 
	A Smart Move L.L.C.	 	 	 	Overnite Transportation Company	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Chris A. Sapyta	 	 	 	By:	 	/s/ Russ C. Kingery	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	     Chris A. Sapyta, CEO
	 	 	 	 	 	     Russ C. Kingery	 	 
	Title:

	 	CEO
	 	 	 	Title:
	 	Manager — Contractsexv10w22

 

Exhibit 10.22

MASTER PURCHASE AGREEMENT

     This Master Purchase Agreement (this “Agreement”) is made effective as of the 24th day of
August, 2005 (“Effective Date”), by and between LINPAC MATERIALS HANDLING INC., a Kentucky
corporation with an address of 120 Commerce Court, Georgetown, Kentucky 40324 (“Linpac”) and A
SMART MOVE L.L.C., a Colorado limited liability company with an address of 5350 Roslyn Street,
Suite 400, Greenwood Village, Colorado 80111 (“Smart Move”).

     In consideration of the mutual covenants contained herein, and other good and valuable
consideration the receipt and sufficiency of which is hereby acknowledged, Linpac and Smart Move
agree as follows:

Article 1. Definitions and Construction

	1.1	 	In this Agreement, the following terms shall have the following meanings:
	 
	 	 	“Agreement” means this Master Purchase Agreement;

“Applicable Law” means all federal, state, and local laws, rules, regulations and executive or
judicial orders that are applicable to Linpac or Smart Move, or their respective businesses, and
that are applicable in any jurisdiction where the Containers are manufactured and any jurisdiction
where the Containers will be maintained, stored, sold or used;

“Confidential Information” has the meaning set out in Article 10;

“Container” means that certain large, plastic household goods storage container, specifically
designed and manufactured by Linpac for Smart Move, which results from using the Mold, and which is
more particularly specified in Schedule A ;

“Engineering Services” means those services to be provided by Linpac in connection with the design
of the Mold, supervise the production of the Mold by the manufacturer, technical analysis related
to the Mold.

 

 

“Engineering Costs” means all of the costs and expenses incurred by Linpac in connection with
providing the Engineering Services.

“Intellectual Property Rights” means any patent, utility model, design right, copyright (including
any right in computer software), database right or topography right (whether or not any of these
are registered and including applications for registrations of any such thing), drawing,
specifications for Mold and any trade secret, know-how or any right or form of protection of a
similar nature or having equivalent or similar effect to any of those which may subsist anywhere in
the world, and for the purpose of Article 9 shall also include any trademark, service mark, trade
dress, trade or business name;

“Linpac Facilities” ” has the meaning set out in Article 4.2;

“Price” means the price to be paid to Linpac for providing the Containers as set forth in Article
4.1 below;

“Purchase Order” means any purchase order or amendment to a purchase order that is a standing
purchase order between Linpac, and Smart Move as of the Effective Date or submitted by Smart Move
to Linpac on or after the Effective Date;

“Mold” means the mold designed and manufactured for Smart Move and used by Linpac in the
manufacture of the Containers, and all related equipment, tooling and fixtures purchased or created
therefore.;

“Vendor Equipment” means all equipment, machines, tooling, tools and materials paid or to be paid
for by Linpac and used by

2

 

in the manufacture of the Containers.

1.2 In this Agreement, the following rules of construction shall apply:

	 	(a)	 	The definitions set forth above are equally applicable to both the singular and plural forms of
any of the terms defined in Section 1.1.
	 
	 	(b)	 	The headings are for convenience only and shall not affect the interpretation of this Agreement.
	 
	 	(c)	 	References to Linpac or Smart Move shall be a reference to any third party with whom such Party
has contracted, subcontracted or otherwise agreed to do business for the purposes of carrying
out an obligation under this Agreement (e.g., the distribution of the Containers or the
delivery of the Containers).

Article 2. General Agreement

	2.1	 	During the term of this Agreement, Linpac agrees to manufacture
and sell the Containers only to Smart Move and Smart Move agrees
to purchase the Containers under the terms and conditions of this
Agreement and the applicable Purchaser Order; provided, however,
that specific commitments to provide the Containers shall be
subject to the Purchase Orders issued by Smart Move and approved
by Linpac. All Purchase Orders shall be subject to all of the
terms and conditions of this Agreement. Any Purchase Order may be
rejected by Linpac for non-compliance with any of the provisions
of this Agreement. There is no required minimum amount of
Containers that must be purchased by Smart Move under this
Agreement, provided that Smart Move shall purchase at least 1,200
containers in the first year of the Agreement. No term or
condition contained in any Purchase Order from Smart Move, other
than those specifically provided in Exhibit B, shall be effective
or become part of the agreement between the parties unless it has
been agreed to in writing by both parties.
	 
	2.2	 	Subject to Article 13, this Agreement is a mutually exclusive
contract. During the term of this Agreement, (i) Smart Move will
have the exclusive right to purchase the Containers from Linpac
for use or resale in the household/office relocation market; (ii)
Linpac will not sell the Containers or any other container system
that accomplishes a similar goal for any other company that would
be targeting the house hold goods/office relocation market; and
(iii) Linpac will have the

3

 

exclusive right to manufacture the Containers for Smart Move and Smart Move will purchase all
of the Containers required for its business from Linpac.

Article 3. Duration of Agreement

	3.1	 	The Parties’ obligations hereunder shall commence on the date
hereof and shall end on September 16th, 2008 or such earlier date
on which this Agreement is terminated in accordance with Article
11. The Parties shall have the option to renew this Agreement for
additional terms of one (1) year on the same terms as this
Agreement. Said renewal terms will be deemed automatically
exercised unless either Party gives the other Party written notice
to the contrary at least sixty (60) days prior to termination of
the initial term or any subsequent renewal term.

Article 4. Price and Terms; Enginnering Costs

	4.1	 	Linpac currently estimates that the ** subject to the adjustments
below. If, following completion of the design and the Mold for the
Containers, Linpac determines that a different initial Price will
be required, it shall notify Smart Move and the Parties shall
mutually agree in writing upon the new initial Price. From time to
time, the Price or adjusted Price, as the case may be, shall be
adjusted as many times as necessary to reflect increases or
decreases in the cost of plastic and other materials of which the
Containers consist. Linpac shall promptly notify Smart Move of any
actual change in Linpac’s cost of any plastic or other material
that would result in a price adjustment (increase or decrease),
and any such cost adjustments made pursuant to this Paragraph 4.1
shall be effective upon thirty (30) days’ written notice to Smart
Move. At Smart Move’s request, Linpac shall provide Smart Move
with written substantiation and verification of any plastic or
other materials cost changes resulting in a price adjustment for
Containers.

	4.2	 	Linpac shall make all Containers available for delivery to Smart
Move at Linpac (the “Linpac Facilities”), the location being
determined and designated by Linpac. Smart Move shall take title
to all Containers upon shipment from either of the Linpac
Facilities. Linpac shall render its invoices to Smart Move upon
each shipment of Containers from the Linpac Facilities, regardless
of whether such shipment includes all of the Containers requested
under a Purchase Order.

	4.3	 	Smart Move shall remit payment to Linpac in full within thirty
(30) days of date of each invoice; provided that Smart Move shall
have a credit limit of $400,000 for purchases of Containers under
this Agreement.

4

 

	4.4	 	If Smart Move fails to pay any amount when due, including
without limitation payments for the Containers, Smart Move
shall pay, in addition to the sums due, interest on the
entire past due balance at the rate of twelve percent (12%)
per annum until the full amount of the outstanding balance,
together with all related late charges, interest and other
fees, have been paid in full. In addition, Smart Move shall
indemnify and reimburse Linpac for all costs and expenses,
including reasonable attorneys fees, incurred in enforcing
the terms of this Agreement against Smart Move or collecting
any amounts due from Smart Move under this Agreement.

	4.5	 	Smart Move shall be obligated to pay Linpac a fee ** in payment of ** Engineering Costs.

Article 5. Mold; Costs and Manufacture

	5.1	 	Smart Move shall pay all of the costs and expenses of
manufacturing the Mold directly to the company selected to do the
work. ** shall provide the Engineering Services related to the
design and manufacture of the Mold. Smart Move shall be deemed to
be the owner of the Mold and all of the Intellectual Property
rights associated with the Mold; provided that Smart Move hereby
grants to Linpac the right to possess and use Mold during the term
of this Agreement for the purposes contemplated by this Agreement.
Once the final design criteria for the Mold are completed, and
following discussions with the manufacturing company, Linpac shall
provide Smart Move with an estimate of the cost of the Mold.
Linpac shall manufacture a pilot Container in accordance with the
final design criteria. Smart Move shall inspect the pilot
Container and, if it is satisfactory to Smart Move, notify Linpac
in writing of its approval of the pilot container. Following Smart
Move’s approval of the final design criteria and the pilot
Container, any modification to the design or manufacture of the
Containers shall be made only with the mutual agreement of both
parties and Smart Move shall be responsible for all of the costs
and expenses of making such modification and of any increase in
the cost of each Container arising from such modification.

	5.2	 	Linpac shall undertake to provide the Engineering Services and to
facilitate the manufacture of the Mold in accordance with that
time line set forth on Schedule B attached to this Agreement
(the “Time Line”); provided that Linpac shall not have any
liability for the failure to provide any or all of such services
in accordance with the Time Line. The Parties acknowledge that the
Time Line is merely an estimate of the schedule for the provision
of the Engineering Services by Linpac.

5

 

Article 6. Risk of Loss, Receipt and Inspection

	6.1	 	The risk of loss or damage to the Containers shall pass from
Linpac to Smart Move at the time of the shipment of the Containers
by Smart Move from the Linpac Facilities. Unless otherwise agreed
by the parties, Smart Move shall be responsible for selecting the
freight forwarder which shall pick up the Containers and Smart
Move shall be responsible for the payment of all costs and
expenses of transporting the Containers from the Linpac
Facilities. Smart Move may inspect the Containers at the time of
delivery and, during such inspection, Smart Move and its agents
shall comply with all rules and guidelines established by Linpac
for the Linpac Facilities.

Article 7. Warranties

	7.1	 	Linpac expressly warrants the Containers furnished by Limpac to be
free from defects in workmanship and materials for a period of
three (3) years from the date of delivery. If within such time, a
Container is proved to Linpac satisfaction to be so defective,
Linpac, at its option, will repair or replace the Container.
Linpac must receive written notice of any claim within ten (10)
days of the discovery of the defect, and may require the return of
the Container at issue to Linpac F.O.B. at the Linpac Facilities.
If replaced, Linpac will provide payment of or credit for its
Price upon the return of the Container plus transportation charges
relating to such return. This warranty shall not apply to
Containers or Container parts which have been altered in any
manner other than by Linpac personnel, or repaired contrary to
Linpac instruction, or have not been handled or maintained
properly by Smart Move.

LINPAC DISCLAIMS ALL OTHER EXPRESS WARRANTIES AND ALL IMPLIED WARRANTIES AS TO THE QUALITY OF ANY
PRODUCT, INCLUDING IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

6

 

Article 8. Mold; Security Interests

	8.1	 	In the event of a delinquent payment of any invoice, as agreed to
in Section 4.3, Linpac shall have the right to suspend deliveries
of all Containers and/or require future payments to be made prior
to any requested delivery of Containers. Linpac is authorized to
file a security interest in the Mold and any Container inventory
in the possession of Linpac at its own premises, if Smart Move
fails to fulfill its financial obligations as agreed to in the
terms of Section 4.3.

	8.2	 	Linpac shall maintain the Mold in good condition and repair, at
the cost and expense of Smart Move. Linpac shall invoice Smart
Move for any costs Linpac incurs in such maintenance or repair,
but shall notify Smart Move, and must receive Smart Move’s
permission, prior to undertaking any maintenance or repair. Linpac
shall not be responsible for any delay in performing its
obligations under this Agreement resulting from Smart Move’s
failure to timely respond to any request for permission for
maintenance or repair.

Article 9. Intellectual Property and Infringement

	9.1	 	Smart Move is deemed to be the owner of any Intellectual Property
Right with respect to the design of the Mold and the Containers.
Linpac shall have the right, upon the consent of Smart Move, to
grant sublicenses to other parties in connection with the
manufacture of the Containers.

	9.2	 	In the event Smart Move is involved in a dispute with a third
party in connection with Intellectual Property Rights relating to
the Containers or the parts thereof, or Smart Move believes that
there is a likelihood that such a dispute may occur, Smart Move
shall immediately notify Linpac, and shall furnish all
information in its possession or under its control relating to the
dispute.

Article 10. Confidentiality

	10.1	 	The Parties recognize that each of them (“Receiving Party”) may,
during the course of this Agreement, gain knowledge of, have
access to, and have otherwise disclosed to it certain nonpublic
information that is proprietary to the other Party and its
Affiliates (“Disclosing Party”) and which is of a secret or
confidential nature (“Confidential Information”). The following
information shall be considered the Confidential Information:

7

 

	 	(a)	 	information concerning the business operations of either
Party or any of their Affiliates (including product
planning, manufacturing, advertising programs, sales
promotions, complaints, budgets, and forecasts); and
	 
	 	(b)	 	inventions, designs, and research and development programs.

	10.2	 	The Receiving Party shall not disclose, publish,
release, transfer or otherwise make available
Confidential Information of the Disclosing Party in
any form to, or for the use or benefit of, any third
party without the Disclosing Party’s prior written
consent.
	 
	10.3	 	The obligations of confidentiality shall not apply if:

	 	(a)	 	the Confidential Information is, or becomes (other
than through a breach of this Agreement) generally
known to the public;
	 
	 	(b)	 	the Confidential Information was in the Receiving
Party’s possession prior to its disclosure by the
Disclosing Party, as demonstrated by the Receiving
Party’s written records;
	 
	 	(c)	 	the Confidential Information is developed
independently by the Receiving Party without
reliance on information or materials provided by
the Disclosing Party, as demonstrated by the
Receiving Party’s written records;
	 
	 	(d)	 	the Confidential Information was rightfully
received by the Receiving Party without obligation
of confidentiality from a third party, as
demonstrated by the Receiving Party’s written
records; or
	 
	 	(e)	 	disclosure is required by law; provided that the
Receiving Party gives the Disclosing Party prompt
notice of the request for disclosure, cooperates
with the Disclosing Party in obtaining a protective
order or other remedy, and discloses only that
portion of the Confidential Information which it is
legally compelled to disclose.

	10.4	 	Each Party acknowledges that the disclosure of the other Party’s
Confidential Information may result in irreparable injury to that
Party and that such Party will be entitled to seek injunctive
relief in addition to any other legal or equitable remedies that
may be available.

Article 11. Insurance

	11.1	 	Smart Move shall, at its own expense, maintain and carry in full
force and effect general liability, public liability, workers’
compensation liability and property damage (fire, casualty and
theft) insurance. All insurance will be maintained in

8

 

such amounts and with such deductibles as are commonly carried by prudent businesses similarly
situated or as is otherwise required by Applicable Law. Smart Move’s insurance shall insure against
any liability for loss, injury, damage or claims caused by or arising out of or in connection with
the operations of Smart Move’s business, including the ownership, transportation, use or storage of
the Containers, including injury to or death of Smart Move’s employees, agents or any other persons
or entities and damage to or destruction of public or private property.

Article 12. Indemnification; Limitation on Damages

	12.1	 	In addition to what is specified elsewhere in this Agreement,
Smart Move shall indemnify and hold harmless Linpac and its
officers, directors and employees, in full against all loss,
liability, damages, costs and all expenses, including attorney
fees and expert fees, arising directly or indirectly out of Smart
Move’s use or sale of the Containers, including claims, actions
or lawsuits alleging:

	 	(a)	 	personal injury, property damage or economic damage attributable to Smart Move, the materials
it uses or the services it provides,
	 
	 	(b)	 	any design, manufacturing or warning defect relating to the Container or any part thereof to
the extent attributable to Smart Move,
	 
	 	(c)	 	any violation by Smart Move of any of Smart Move’s warranties or Applicable Law,
	 
	 	(d)	 	any act or omission of Smart Move or its employees or agents in taking delivery, using,
selling or otherwise disposing of the Containers or any part thereof, including any injury,
loss or damage to persons caused or contributed to by any of their negligence, or
	 
	 	(e)	 	any other claims resulting from the acts or omissions of Smart Move or its employees or agents.

	12.2	 	TO THE MAXIMUM EXTENT PERMISSIBLE UNDER APPLICABLE LAW, EXCEPT
FOR THE OBLIGATIONS OF EITHER PARTY TO INDEMNIFY THE OTHER FOR
THIRD PARTY CLAIMS OR ANY REGULATORY ACTION, NEITHER PARTY SHALL
HAVE ANY LIABILITY TO THE OTHER PARTY, ANY CUSTOMER, OR ANY OTHER
THIRD PARTY FOR LOST PROFITS OR OTHER CONSEQUENTIAL, SPECIAL,
INDIRECT OR INCIDENTAL DAMAGES, BASED UPON A CLAIM OF ANY TYPE OR
NATURE, INCLUDING BUT NOT LIMITED TO CONTRACT, TORT (INCLUDING
NEGLIGENCE), WARRANTY OR STRICT LIABILITY, OR CLAIMS ARISING FROM
THE TERMINATION OR EXPIRATION OF THIS

9

 

AGREEMENT EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. IN ADDITION, THE MAXIMUM
LIABILITY OF Linpac TO SMART MOVE ARISING IN CONNECTION WITH THE PURCHASE OR USE OF ANY PRODUCT
SOLD TO SMART MOVE HEREUNDER, WHETHER SUCH LIABILITY ARISES FROM ANY CLAIM BASED UPON CONTRACT,
TORT INCLUDING NEGLIGENCE OR OTHERWISE, SHALL IN NO CASE EXCEED THE AGGREGATE PRICE PAID BY SMART
MOVE TO Linpac FOR PRODUCTS DURING THE TWELVE MONTH PERIOD PRECEDING SUCH CLAIM (NOT INCLUDING
REIMBURSEMENT OF THE ENGINEERING COSTS).

Article 13 Termination

	13.1	 	Notwithstanding the term of this Agreement set forth above,
either Party may terminate this Agreement effective immediately
by notice in writing (the “Default Notice”) if the other Party is
in material breach of, or in default under, any term of this
Agreement. Each party shall have thirty (30) days from the date
of the Default Notice to cure such breach or default set out in
the Default Notice; provided, however, that there shall be no
right to cure any failure to pay any amount due under this
Agreement.

	13.2	 	Notwithstanding the term of this Agreement set forth above,
either Party may terminate this Agreement without liability with
immediate effect by serving a written notice on the other Party
in the event such other party becomes insolvent or bankrupt, is
placed into administration, receivership or liquidation,
commences proceedings to be wound up, enters into any voluntary
arrangement with its creditors, or on the happening of any
similar event according to the laws of its domicile.

	13.3	 	In the event of expiration or termination of this Agreement for
any reason by Smart Move, then, if any Purchase Order is pending
at the time of the termination or expiration of this Agreement,
Linpac shall have the right, at its sole discretion, to cancel
any such Purchase Order or to have it completed by Smart Move. If
Linpac elects to have such Purchase Order completed, this
Agreement shall continue to apply to such Purchase Order and
Smart Move shall pay for such Purchase Order according to its
terms.

In the event that Linpac chooses to terminate this Agreement at any time, if Linpac has prior to
such termination, accepted a Purchase Order from Smart Move, then Linpac must complete this
purchase order and Smart Move shall pay for such Purchase Order according to its terms.

	13.4	 	Smart Move recognizes that if this Agreement is terminated due to
Smart Move’s inability, failure or refusal to perform, for any
reason (including but not limited to material breach, insolvency,
bankruptcy, being placed into administration, receivership or
liquidation, commencement of proceedings to be wound up, entering
into any voluntary arrangement with its creditors, or on the
happening of any similar event according to the laws of its
domicile), then the following shall apply:

	 	(a)	 	Linpac will be entitled to (i) retain the Mold and any and all
Intellectual Property rights thereto, (ii) exercise all rights of
a secured creditor under Applicable Law, (iii) invoice Smart Move
for any and all expenses owed to Linpac, and (iv) assert and
exercise any and all other remedies available at law or in equity,
including without limitation damages resulting from such
inability, failure or refusal to perform, or failure to perform or
adequately assure future performance.

Article 14. Miscellaneous

	14.1	 	Waiver and Remedies. No delay or omission by either Party in
exercising any right or power it has under this Agreement shall
impair or be construed as a waiver of such right or power. No
waiver of any breach of any provision of this Agreement shall
constitute a waiver of any other breach of such or any other
provision. Remedies available to Linpac or Smart Move under this
Agreement shall be cumulative and additional to any other or
further remedies implied or available at law, in equity or under
this Agreement.

	14.2	 	Entire Agreement. This Agreement sets forth the entire and only
agreement and understanding between the Parties relating to the
services to be provided with respect to the Parts and supersedes
all negotiations, commitments and writings prior to the date of
this Agreement. This Agreement may not be modified, supplemented
or amended except by a written agreement executed by both
Parties. In the event of any inconsistencies between the terms of
this Agreement and the terms contained in any other document,
instrument, agreement or Purchase Order related to providing the
services contemplated by this Agreement, the terms of this
Agreement shall prevail.

	14.3	 	Compliance with Applicable Laws. Smart Move and LinPac warrant that each of them

10

 

has and will continue, in performing hereunder, to comply with all Applicable Laws.

	14.4	 	Assignment. The rights and obligations under this Agreement or
this Agreement itself, either in whole or in part, shall not be
assigned or transferred by Smart Move without the prior written
consent of **. Any assignment or attempted assignment of this
Agreement or any part thereof by Smart Move, whether by voluntary
act or operation of law, shall be null and void, unless it is
approved in writing by ** in advance.

	14.5	 	Force Majeure. Neither Party shall be responsible to the other by
reason of failure to perform obligations hereunder to the extent
that the failure to perform is caused by an act of God, flood,
fire, storm, earthquake, shipwreck, acts of public enemy, or acts
or omissions of any sovereign government, branch or agency
thereof and other similar events beyond reasonable control of the
Party whose performance is prevented or interfered with. The
affected Party shall promptly notify the other Party and shall
not be responsible for its failure to perform any obligation
required under this Agreement as a result of any of the
foregoing. The Parties specifically agree that strikes and labor
disputes at the Party whose performance is prevented or
interfered with shall not be included in the Force Majeure
events.

	14.6	 	Survival Those covenants and obligations contained in Article 7
(Warranties), Article 8 (Mold; Security Interests), Article 9
(Intellectual Property Rights and Infringement), Article 10
(Confidentiality), Article 12 (Indemnification; Limitation on
Damages), Section 14.3 (Compliance with Laws), Section 14.4
(Assignment), Section 14.7 (Governing Law), and Section 14.8
(Jurisdiction; Waiver of Jury Trial) shall survive the expiration
or termination of this Agreement for any reason whatsoever.

	14.7	 	Governing Law. This Agreement and all Purchase Orders shall be
governed by and construed in accordance with the laws of the
Commonwealth of Kentucky, without giving effect to principles of
conflicts of law.

	14.8	 	Waiver of Jury Trial.

THE PARTIES HEREBY WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY PROCEEDING
BROUGHT UNDER OR IN CONNECTION WITH THIS AGREEMENT.

	14.9	 	Severability. If any court of competent jurisdiction finds any
provision of this Agreement to be unenforceable or invalid in
whole or in part, such finding shall not affect the validity of
the other provisions of this Agreement or the remainder of the
provision in question.

11

 

	14.10	 	Counterparts. This Agreement may be executed in any number
of counterparts and by different Parties to this Agreement
on separate counterparts, each of which, when so executed,
shall be deemed an original, but all such counterparts
shall constitute one and the same agreement. Any signature
delivered by a Party by facsimile transmission shall be
deemed to be an original signature hereto.

[Signature Page to Follow]

12

 

     IN WITNESS WHEREOF, the Parties have executed this Master Purchase Agreement by and
through their duly authorized representatives on the date first above written.

	 	 	 	 	 	 	 
	 	 	LINPAC MATERIALS HANDLING, INC	 	 
	 

	 	By:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Its:
	 	President, /s/ James Dobell	 	 
	 
	 	 	 	 	 	 
	 	 	A SMART MOVE L.L.C.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Chris Sapyta	 	 
	 

	 	 	 	 

	 	 
	 

	 	Its:
	 	President, Chris Sapyta	 	 

13

 

SCHEDULE A

(Description of the Containers)

 

 

SCHEDULE B

(Time Line)

**Portions of this exhibit have been omitted and filed separately with the SEC. Confidential
treatment has been requested with respect to the omitted portions.**

 

15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]