9.1.3 No registration or filings with, notices to, or consent,
approval, permit, authorization or action of, any third party
(including any Governmental Agency or other Person) is required
in connection with the execution of this Agreement by ParagonEX.
9.1.4 ParagonEX is the true, lawful, and sole and exclusive owner of
all of the License assets, and has valid and marketable title to
all of the License assets, free and clear of all Liens. ParagonEX
has the absolute and unconditional right, power, authority and
capacity to license the License assets to Client free and clear
of all Liens.
9.1.5 The License assets do not infringe, violate or conflict with any
patent, copyright, trade secret or other Intellectual Property of
another Person.
9.1.6 No claims with respect to the License assets have been asserted
or, to the knowledge of ParagonEX, are threatened by any Person,
9.1.7 There is no outstanding order, judgment, decree or stipulation
binding on ParagonEX, and ParagonEX is not a party to or bound by
any agreement, restricting the license of the License assets.
9.1.8 To the best knowledge of ParagonEX, there is no unauthorized
use, infringement or misappropriation of any of the License
assets by any third party, including any employee, former
employee, consultant, distributor or customer of ParagonEX.
9.1.9 ParagonEX has all requisite material licenses, permits and
certificates from state and local authorities necessary to own,
use and license the License assets. ParagonEX is not in violation
of, and is not under investigation with respect to, and has not
been threatened to be charged with or given notice of any
violation of, any law, regulation or ordinance relating to the
License assets.
9.1.10 Neither this Agreement nor any other agreement, document,
certificate or written or oral statement furnished to Client in
connection with the transactions contemplated hereby contains any
untrue statement of a material fact or omits to state a material
fact necessary in order to make the statements contained herein
or therein not misleading. There is no fact within the knowledge
of ParagonEX which has not been disclosed herein or in writing by
them to Client and which has a material adverse Effect, or in the
future in their reasonable opinion may have a material adverse
Effect on Client or the License assets.
10 MARKETING
10.1 Any publicity material and other documentation prepared by or at the
request of the Client which refers to the Marks or any other name or
mark owned by ParagonEX shall first be submitted to ParagonEX for
approval, and approval shall be obtained, before publication.
10.2 The Client will clearly display a "Powered by ParagonEX" notice
containing the ParagonEX official logo and linked to the ParagonEX
website on every page of the Client Website. The exact format of such
display will be mutually agreed between the parties, however ParagonEX
reserves the right to modify at any time its official logo and Client
agrees to modify the ParagonEX logo accordingly within 10 days of
notice given by ParagonEX to the Client regarding such variation.
11 OWNERSHIP RIGHTS AND INTELLECTUAL PROPERTY
Except as expressly provided herein, ParagonEX shall have the sole and
exclusive ownership of all right, title and interest in and to the Marks,
the System, the Technology, and any enhancements and work products thereto,
any documentary or other materials regarding the use thereof and related
thereto, and any data provided to Client by ParagonEX in whatever form or
media. ParagonEX is the sole and exclusive owner of all right, title and
interest in and to all intellectual property rights related to the Marks,
the Technology and the System and any related documentation including,
without limitation, any patents, trademarks (whether registered or not),
trade names, copyright, algorithms, designs, drawings, formula, know-how,
ideas, inventions, improvements' designs, concepts, methods, systems,
computer software programs, databases, mask works, and trade secrets,
plans, processes, software, techniques, tools, and other technology, and
all materials, products, deliverables, derivative work and work products in
all territories. The Client acknowledges that neither it nor any other
person will, by virtue of this Agreement, acquire any ownership interest in
the Marks, Technology or System, including any new version releases,
updates, enhancements, modifications or improvements thereto made available
to Client or in ParagonEX's Confidential Information (as defined below) or
in any intellectual property of ParagonEX, or any rights represented
thereby or therein, or any associated goodwill as a result of the License
and/or ParagonEX's license of the Marks and/or the Services and/or the
Support under this Agreement.
In order to ensure the continuity of the ongoing operation of the Client's
Websites, ParagonEX will deposit the source code of the System's software
in trust of its lawyer, within 30 days from the date of signing this
contract, under the terms of the Escrow Agreement attached as APPENDIX C to
this Agreement (the "ESCROW AGREEMENT"). ParagonEX undertakes to deposit
with the trustee under the Escrow Agreement, from time to time during the
term of this Agreement, any new version and/or update of the source code of
the System's software.
The parties hereby agree that in the event of a dispute between the parties
in respect to the occurrence of any of the conditions set forth in Section
3.1 to the Escrow Agreement, such dispute shall be submitted to a single
arbitrator (the "ARBITRATOR"), who shall be agreed upon by the parties,
within 14 days of the date on which one of the parties has requested in
writing to appoint the Arbitrator, and in the absence of such agreement the
Arbitrator shall be appointed by the Chairman of the Israeli Bar
Association. The arbitrator shall not be subject to the laws of evidence or
civil procedure but shall be subject to the applicable material law of the
State of Israel. The ruling of the Arbitrator shall be binding upon the
parties hereto. This clause shall constitute an arbitration agreement
pursuant to the Arbitration Law - 1968.
12 CONFIDENTIAL INFORMATION
12.1 Confidential Information shall not be used, disclosed or reproduced by
the receiving party without the express written consent of the
disclosing party.
12.2 Confidential Information does not include information which (i) is or
has become generally known or available through no act or failure to
act by the receiving party; (ii) is already known or available at the
time of receipt as evidenced by then-existing written records; (iii)
is previously furnished to the receiving party by a third party, as a
matter of right and without restriction on its disclosure; or (iv) is
disclosed by written permission of the disclosing party.
12.3 Any Confidential Information which is required to be disclosed by
court order or law shall remain Confidential Information, except to
the extent that such disclosure is required by such court order or law
(including US Federal securities laws). If the receiving party
receives a demand in a legal proceeding or by regulatory authorities
that would require the Confidential Information of the disclosing
party to be disclosed, the receiving party shall, to the extent
possible, notify the disclosing party of the demand and assist the
receiving party, if required to do so, in obtaining a protective order
or other relief. Notwithstanding anything to the contrary in this
Agreement, ParagonEx acknowledges that Client or one or more of its
affiliates is a reporting company whose shares are registered under US
Federal securities laws. Therefore Client or its affiliates, as the
case may be, based on advise of counsel, may publicly disclose the
existence of this Agreement and, if need to, file it and make other
disclosures with respect to this Agreement, as requested by regulatory
authorities or as required by law (including securities laws),
applicable regulation or a listing agreement applicable to the Client
or any of its affiliates. Any such disclosure shall be, to the extent
applicable, subject to the terms of this section 12.
12.4 Each party hereby agrees that it shall not use any Confidential
Information received from the disclosing party other than as expressly
permitted under the terms of this Agreement or expressly authorized in
writing by the disclosing party. Each party shall use the same degree
of care to protect the other party's Confidential Information as it
uses to protect its own Confidential Information of like nature, but
in no circumstances less than reasonable care. The receiving party
shall not disclose the disclosing party's Confidential Information to
any person or entity other than its officers, employees and
independent contractors who have a specific need to know such
information in order to effect the intent of this Agreement and who
have entered into written confidentiality agreements with that Party
consistent with no less restrictive provisions than this Section. The
receiving party's duty to hold Confidential Information in confidence
shall expire five (5) years after the term of this Agreement or after
this Agreement has been terminated pursuant to Section 16.2 below.
12.5 The receiving party acknowledges that any breach of the provisions of
this Section 12 may cause irreparable harm to the disclosing party to
an extent that may be extremely difficult to ascertain. Accordingly,
the disclosing party will have, in addition to any other rights or
remedies available to it at law or in equity, the right to seek
injunctive relief to enjoin any breach or violation of this Section 12
and to be indemnified by the receiving party from any loss or harm,
including without limitation, lost profits and attorney's fees, in
connection with any breach or enforcement of the receiving party's
obligations hereunder or the unauthorized use or release of any such
Confidential Information. The receiving party will notify the
disclosing party in writing immediately upon the occurrence of any
such unauthorized release or other breach.
12.6 Notwithsatnding the abovementioned, ParagonEX shall have the right to
disclose Confidential Information, to the extent required in the event
that ParagonEX at its sole discretion identifies any attempt of fraud
either by the Client or by an End User, provided that, with respect
only to fraud by an End User, such disclousre is notified to the
Client reasonable time in advance.
13 INDEMNIFICATION AND INSURANCE
13.1 Each party shall indemnify the other party and hold the indemnified
party harmless from and against any and all third party claims and/or
suits (collectively, "CLAIM(S)") arising out of or in connection with
any breach by the indemnifying party of any term and/or warranty under
this Agreement; provided, however, that (1) The indemnified party
shall have given the other party prompt written notice of such Claim;
(2) The indemnified party shall reasonably cooperate with the other
party in the defense and settlement thereof at other party's expense;
and (3) The other party shall have sole control of the defense of such
claim, suit, demand, or action and the settlement or compromise
thereof.
13.2 Each party shall indemnify the other party against any damage loss or
expense caused to the indemnified party as a result of the other
party's breach of any of its undertakings under this Agreement.
13.3 ParagonEX declares and undertakes that it has in its position and that
it shall maintain during the Term (as defined below) an insurance
policy covering potential liability of ParagonEX in connection with
the performance of this Agreement, with a limit of liability of not
less than US$ 1,500,000 (One Million And Five Hundred Thousand United
States Dollars) per claim and in the aggregate. ParagonEX shall
provide the Client with a copy of such insurance policy within 45-days
from the Commencement Date (or, if not obtained by such time,
reasonable time after it has been obtained but not later than 90-days
from the Commencement Date).
14 LIMITATION OF LIABILITY
IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY INDIRECT, INCIDENTAL, OR
CONSEQUENTIAL DAMAGES ARISING OUT OF OR OTHERWISE RELATING TO THIS
AGREEMENT, THE USE OR PERFORMANCE OF THE TECHNOLOGY AND THE SYSTEM, OR TO
THE SERVICES OR THE SUPPORT, INCLUDING, WITHOUT LIMITATION, FOR ANY SYSTEM
DISRUPTION, MARKET DISRUPTION, THE NETWORK, TECHNICAL MALFUNCTION, COMPUTER
ERROR OR LOSS OF DATA OR OTHER INJURY, DAMAGE OR DISRUPTION OF ANY KIND,
EVEN IF SUCH DAMAGES WERE FORESEEABLE AND WHETHER OR NOT THE OTHER PARTY
HAS BEEN ADVISED OF THE POSSIBILITY THEREOF. IN NO EVENT SHALL EITHER
PARTY'S LIABILITY, EXCEED THE GREATER OF THE AMOUNT OF US$1,500,000 (ONE
MILLION AND FIVE HUNDRED THOUSANDUNITED STATES DOLLARS) OR THE AMOUNTS PAID
TO PARAGONEX BY THE CLIENT HEREUNDER DURING THE PERIOD OF 18 MONTHS PRIOR
TO THE EVENT THAT GAVE RISE TO SUCH LIABILITY.
15 TAXES
Without prejudice to the above, in the event that (i) Paragonex is required
to make any payment of or on account of tax on or in relation to any sum
received or receivable under this Agreement, including without limitations
any tax for any Trading made by End User, and any sum deemed for the
purposes of tax to be received or receivable by Paragonex whether or not
actually received or receivable; or (ii) any liability in respect of any
such payment is asserted, imposed, levied or assessed on or against
Paragonex; or (iii) Paragonex incurs any liability in respect of any stamp,
registration, or similar tax (including for the avoidance of doubt stamp
duty reserve tax) which is or become payable in connection with this
Agreement or the applicable law; then the Client and/or its End Users is
required, upon demand by Paragonex, to promptly indemnify Paragonex against
that payment or liability, together with any interest, penalties, costs and
expenses payable or incurred in connection with that payment or liability
provided that this Section will not apply to any tax imposed on and
calculated by reference to the charges actually received or receivable by
Paragonex. For the avoidance of any doubt, it is clarified that the
provisions of this section 15 shall not apply to any deduction of tax at
source under section 6.7 above, to the extent applicable.
16 TERM AND TERMINATION
16.1 INITIAL TERM. Unless terminated earlier by Client in accordance with
the provisions hereof, this Agreement shall commence as of the
Commencement Date as defined under Appendix A and shall be in effect
for unlimited period of time (the "TERM").
16.2 TERMINATION.
16.2.1 Either party may terminate this Agreement at any time without
notice in the event that (i) the other party should become
insolvent or upon a filing of a request for the appointment of a
trustee, liquidator or receiver for such party or such similar
action; or (ii) if the other party is in breach of a material
provision herein and the breaching party does not cure such
breach within thirty (30) days (iii) any delay in payment which
is not cured within twenty one (21) days from the date of a
written demand by the other party to make such payment.
16.2.2 Either party may terminate this Agreement, for any reason, upon
not less than ninety (90) days' prior notice but not earlier than
20 (twenty) years after the Commencement Date.
16.2.3 Without derogating from the abovementioned, ParagonEX may
terminate this Agreement with a notice (in accordance with
section 17.6 below) of 21 business days to the Client in the
event that it has come to its attention that (i) the Client
and/or the Client's Website is in breach of the applicable
regulatory requirement for Forex Trading; (ii) any End User is
using or trying to use the Client's Website in an illegal or
unethical way and the Client shall not act to prevent such End
User from performing such use within thirty (30) days from notice
(in accordance with section 17.6 below) by ParagonEX.
16.3 EFFECT OF EXPIRATION OR TERMINATION.
16.3.1 Upon the expiration or termination of this Agreement for any
reason, the receiving party will, at the disclosing party's
option, return or destroys any and all Confidential Information
including all documentation.
16.3.2 Client acknowledges that upon the expiration or termination of
this Agreement, it will immediately cease to use or access the
System and the License and license to the Marks will immediately
be terminated.
16.4 SURVIVAL. Sections 12, 13, 14, 16.3, 17 shall survive any termination
or expiration of this Agreement.
17 MISCELLANEOUS PROVISIONS
17.1 INDEPENDENT CONTRACTOR STATUS. Each party shall be and act as an
independent contractor and not as partner, joint venturer or agent of
the other, and nothing herein shall be construed as creating a
partnership, joint venture or agency relationship. In performing the
obligations contained in this Agreement, Each party shall have
exclusive control over the means, methods and details of meeting the
respective obligations for which each is responsible hereunder, and at
all times shall be acting in their capacity as an independent
contractor and not as an employee or agent of the other party.
17.2 FORCE MAJEURE. Neither party will be deemed to be in default of this
Agreement to the extent that performance of its obligations or
attempts to cure any breach are delayed or prevented by reason of
Force Majeure, provided that such party gives the other party written
notice thereof promptly and, in any event, within fifteen (15) days of
discovery thereof, and uses its diligent, good faith efforts to cure
the breach. In the event of such a Force Majeure, the time for
performance or cure will be extended for a period equal to the
duration of the Force Majeure but not in excess of six (6) months, at
which point this Agreement may be terminated in accordance with the
terms hereunder.
17.3 ASSIGNMENT. The Client may not assign or transfer its rights or
obligations under this Agreement to any third party without the
express written permission of ParagonEX, which permission will not be
unreasonably withheld. ParagonEX may freely assign its rights and
obligations under this Agreement to an affiliate or to a successor to
all or a substantial part of its business activities. For greater
certainty, a change of ownership of ParagonEX's shares will not be
considered an assignment of ParagonEX's rights and obligations
hereunder.
17.4 GOVERNING LAW; DISPUTE RESOLUTION. This Agreement shall be governed in
all respects by, and interpreted in accordance with the laws of
England excluding its conflict of laws provisions. All disputes and
differences arising out of or relating to this Agreement or to its
interpretation, shall be brought exclusively in a competent courts of
London. Notwithstanding, in the event of a dispute between the parties
as provided in section 11 to this Agreement, the provisions of section
11 shall apply and the provisions of this section 17.4 shall not be
applicable.
17.5 PUBLICITY. Client and ParagonEX may disclose the existence of this
Agreement and the relationship established hereunder, with the consent
of the other party. Each party shall give the other party reasonable
opportunity to review any disclosure required by law prior to its
dissemination. Notwithstanding the foregoing, nothing in this
Agreement is intended to imply that either party agrees to any
publicity whatsoever, and either party, may in its sole discretion,
withhold its consent to any publicity. The provisions of this section
17.6 are subject to the provisions of section 12.3 below with respect
to any notice and/or disclosure which the Client shall be required to
make by any competent authority and/or under any applicable law.
17.6 NOTICES. Except as otherwise provided herein, any notice hereunder
shall be in writing and shall be given by registered, certified or
express mail, or reliable overnight courier addressed to the addresses
above, or by facsimile to the above facsimile numbers, or by email to
the above email address. Notice shall be deemed to be given upon the
earlier of actual receipt or three (3) Business Days after it has been
sent, properly addressed and with postage prepaid.
17.7 HEADINGS. The headings of sections and subsections of this Agreement
are inserted only for the purposes of convenience and they shall not
be construed as to affect the scope, meaning or intent of the
provisions of this Agreement or any part or portion thereof, nor shall
they otherwise be given any legal effect.
17.8 NO WAIVER. Failure by either party to enforce any provision of this
Agreement will not be deemed a waiver of future enforcement of that or
any other provision
17.9 SEVERABILITY. If a court of competent jurisdiction finds any provision
of this Agreement invalid or unenforceable, such determination will
not affect any other provision of this Agreement, and the parties
shall negotiate in good faith a replacement provision.
17.10 COUNTERPARTS. Any number of counterparts may be executed by the
Parties. Each such counterpart shall be deemed to be an original
instrument but all such counterparts, taken together, shall constitute
one and the same agreement.
17.11 ENTIRE AGREEMENT AND MODIFICATIONS. This Agreement represents the
entire understanding between ParagonEX and Client with regard to the
subject matter hereof, and supersedes all prior other agreements,
instruments, understandings and/or communications between the parties
and the parties hereby agree that upon execution of this Agreement all
such other agreements, instruments, understandings and/or
communications shall become void, null and of no further force and
effect. This Agreement may not be and cannot be modified except by a
written instrument signed by the parties hereto.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the
Commencement Date:
PARAGONEX LIMITED. B OPTION LTD.
/s/ Arik Peretz /s/ Shimon Citron
- --------------- -----------------
By: Arik Peretz By: Shimon Citron
Title: director Title: CEO
Date: February 25, 2010 Date: February 25, 2010
The following exhibits have been omitted and will be supplementally furnished to
the Securities and Exchange Commission upon request:
Appendix A - Services
Appendix B - Terms for System Support Coverage