CONSULTINGSERVICESAGREEMENT
THISCONSULTINGSERVICESAGREEMENT(“Agreement”)ismade effectiveasof August10,2015byandbetweenSpherix,Inc.aDelawarecorporation,withitscorporate headquartersat6430 RockledgeDrive,Suite503,Bethesda,Maryland20817(“Company”),and HowardEGoldberg,d/b/aForwardVisionAssociates,withaprincipalbusinessaddressof [REDACTED](“Consultant”).The aboveparties arecollectivelyreferredtoasthe“Parties”and individuallyreferredtoasa“Party.”
BACKGROUND
1. Company isanintellectualpropertycompanythatownspatentedandunpatented intellectualproperty;Company hasexpandeditsactivitiesinwirelesscommunicationsand telecommunicationsectors includingantennatechnology,Wi-Fi,basestationfunctionalityand cellularthrough recentportfolioacquisitionsfromRockstarConsortiumUS,LP,andfromHarris CorporationasaresultoftheacquisitionofNorthSouthHoldings,Inc.(“SpherixIP”).
2. Consultanthascertainexpertiseandexperienceinthefieldofintellectualproperty, licensingandtechnologycompaniesrequiredbyCompanyanddesirestoconsultdirectlywith Companyand/orprofessionalsactingonbehalfofCompany.Thescopemayincludewithout limitation,interactionwiththeCompany’soutsideCounsel,onbehalfoftheCompany,in Consultant’sareaofexpertise.Suchinteractionsshallbesubjecttoalllimitationsotherwiseset forthinthisAgreementwithrespecttothirdparties.
3. SubstantiallycontemporaneouswiththeexecutionofthisAgreement,ConsultantmaybecomeamemberoftheCompany’sBoardofDirectors,anduponappointmenttheboardwill renderseparateservicesinthatrole,outsidethescopeofthisAgreement.
4. CompanydesirestoretaintheservicesofConsultantandConsultantdesirestorendersuch services.
NOW,THEREFORE,inconsiderationofthemutualcovenantshereincontained,the Parties,intendingtobelegallybound,agreeasfollows:
AGREEMENT
1. Retention asConsultant.CompanyherebyretainsConsultant,andConsultanthereby agreestorenderconsultingservicestoCompany,uponthetermsandconditionssetforthin Schedule1attachedhereto.
2. Duties.Consultantcovenantsandagreesthathewill,asanindependentcontractor, performall servicesassetforthinExhibit“A”attachedhereto andincorporatedherein(the “Services”).Consultantfurthercovenantsandagreesthatheisfullyqualifiedtoperformthe Services,andshallperformtheServicesinaprompt,professionalandcompetentmanner.
3. Independent ContractorStatus.EachofthePartiesagreeandherebyacknowledgethat Consultantis anindependentcontractorandnotanemployee,agent,orrepresentativeof Company,this Agreementdoesnotcreateanemployer-employeerelationshipbetween Consultantand theCompanyandthatConsultantshallnothavethepowerortheauthorityto bindCompanyinanymannerwhatsoever.Consultantshallatalltimesdisclosehisindependent contractor statusandthatConsultantisnotanemployee,agent,orrepresentativeofCompany.
4. Taxes.AlltaxesapplicabletoanyamountspaidbyCompanytoConsultantunderthis AgreementshallbeConsultant’ssoleresponsibility, andCompanyshallnotwithholdorpayany amountsforanyforeigntaxoranyU.S.federal,stateorlocalincometax,SocialSecurity, Unemploymentor Workman’sCompensation.Consultant shallnotbeentitledtoreceiveany employmentbenefitsoffered toemployeesofCompany.TheCompanyshallissueConsultanta Form1099following theendofitsfiscalyear,withacopytotheIRS,andConsultantagreesto pay alltaxesdueinrespectoftheConsultancyFee andtoindemnifytheCompanyinrespectof anyobligationthat maybeimposedontheCompanytopayanysuchtaxesorresultingfrom Consultant’s beingdeterminednottobe anindependentcontractor. UponrequestbyCompany, Consultant will provide documentation evidencing compliance with all applicable laws, regulations and orders in regard to amounts received under this Agreement. Consultant agrees to indemnify, defend and hold Company harmless from the payment of Federal, State and local taxes,as well as the preparation and submission of all reports, returns, andmonies which may be imposed orrequiredunderanyapplicablelaws, regulationsand ordersrelativetoanypayments which Company makes to Consultant pursuant to this Agreement.
5. Compensation.CompanyshallpaytoConsultant,ascompensationfortheServicesto berendered,onlythoseamountssetforthinSchedule1attachedhereto.Consultantshallnotbe entitledto receiveany employment or other benefits offered to employeesof Company.Further, Consultantshallnotbeentitledtochargepremiumsforovertimeorweekendwork.Itis expectedthatConsultantwilldedicatesubstantialtimeandcommitmentduringthosedayson whichServicesarerendered.TheprovisionofanyadditionalServicesbeyondthoseidentifiedin Schedule 1 and any additional costs associated therewith shall require advance written approval from Company.
6. Term.ThisAgreementshallcommenceonthedateofthisAgreementandshallcontinue untiltheearlierof(a)one(1)yearfromthedateofthisAgreement,or(b)thedateonwhich,by mutualagreementoftheParties,Serviceshavebeencompletedasevidencedbynoticeofsuch completionbyConsultant.ThetermofthisAgreementmaybeextendedonlybywritten agreementofbothConsultantandCompany.
7. Termination.Exceptasotherwiseprovidedherein,Companymaynotterminatethis Agreement.ConsultantmayterminatethisAgreementbywrittennoticetoCompanyatleast thirty(30)calendardayspriortoanyanniversaryquarter,thefirstsuchcalendarquarter commencingNovember10, 2015(“SubsequentQuarterlyRetainerPeriod”).Uponanysuch termination,(a)Companyshallbeentitledtoreceiveandunconditionallyuseallworkproduct producedbyConsultantinconnectionwiththeServices,andConsultantshallpromptlydeliver all such work productto Companyasacondition of final paymenthereunder, and(b) Consultant shallbeentitledtonon-refundable retainer andpaymentin accordancewiththisAgreementfor Servicesproperlyrendered(andfor reimbursableexpenses properlyincurred)prior tosuch termination, subject to offset for any amounts owing from Consultant to Company hereunder. Upon the effective date of termination of this Agreement, all legal obligations, rights and duties arising out of this Agreement shall terminate except for such legal obligations, rights and duties as shall have accrued prior to the effective date of termination and except as otherwise expressly provided in this Agreement.
8. CovenantofNon-Disclosure.Exceptasotherwisepubliclydisclosed,Consultantshall not,atanytimeduringorafterthetermofthisAgreement,inanymanner,eitherdirectlyor indirectly,use, divulge, disclose or communicate to anyperson, firm, corporation or other entity, theexistenceofthisAgreementoritsterms,oranyConfidentialInformation,exceptingusein performingtheServiceshereunder,withouttheexpresspriorwrittenconsentofanauthorized executiveofficerofCompanyinaccordancewithandgovernedsolelybythetermsofaseparate MutualNon-DisclosureAgreementdatedAugust11,2015,asofAugust10,2015(the“Non- DisclosureAgreement”),whichNon-DisclosureAgreementisherebyexpresslyreaffirmed.
9. Ownership;AssignmentofIdeas.AllworkproductproducedbyConsultantsolelyor jointlyorarisingoutofConsultantinconnectionwithhisservicestotheCompany(“Work Product”)shallbethesoleandexclusivepropertyoftheCompany,andConsultantwaivesany rightswhatsoeverinsuchWorkProduct.
(A) ConsultantwillreportanddoesherebyassigntoCompany(oritsdesignated assignee)allright,titleandinteresttotheWorkProductandideas,concepts,tradesecrets, inventions,articlesorwork,whetherpatentable,copyrightableornot,created,uncoveredor developedduringtheperformanceofhis/herdutieshereunder.Allsuchideas,concepts,trade secrets,inventionsandarticlesofworkshallbeconsideredwork“madeforhire”andCompany shallhavethesoleright,titleandinterestinsuchWorkProductandConsultantwillnothaveany rightsofanykindwhatsoeverinsuchWorkProduct.Consultantshallexecutealldocumentation anddoallsuchdeeds asisreasonablyrequiredtovestownership,right,titleandinterestin Company and for Company to secure patent or copyright protection, as applicable.
(B) IntheeventthatConsultantintegratesanyworkthatwaspreviouslycreatedby theConsultantintoanyWorkProduct,theConsultantshallgrantto,andCompanyishereby granted,aworldwide,royalty-free,perpetual,irrevocablelicensetoexploittheincorporated items,including,butnotlimitedto,anyandallcopyrights,patents,designs,tradesecrets, trademarksorotherintellectualpropertyrights,inconnectionwiththeWorkProductinany mannerthatCompanydeemsappropriate.Consultantwarrantsthatitshallnotknowingly incorporateintoanyWorkProductanymaterialthatwouldinfringeanyintellectualproperty rightsofanythirdparty.
10. LegalandEquitableRelief.Consultantacknowledges thatifConsultantbreaches,or threatens tobreach anyofthecovenantsexpressedherein,itwouldcauseimmediateand irreparable harmtotheCompanyforwhichmonetarydamagestoCompanymaybedifficultto measureandbeinadequate;therefore,Companywillbeentitledtoapplytoacourtofcompetent jurisdictionforinjunctiveorotherequitablereliefwithoutproofofactualdamagesandwithout postingofabondorothersecuritytorestrainsuchbreachorthreatofbreach,inadditiontoall otherreliefavailabletoCompanyineitherlaworequity.
Intheeventthatanyorallofthecovenantsexpressedhereinshallbedeterminedbyacourtof competentjurisdictiontobeinvalidorunenforceable,byreasonofitsgeographicortemporal restrictionsbeingtoogreat,orbyreasonthattherangeofactivitiescoveredaretoogreat,orfor anyotherreason,thesecovenantsshallbeinterpretedtoextendoverthemaximumgeographic area,periodoftime,rangeofactivitiesorotherrestrictionstowhichtheymaybeenforceable.
11. OtherCompensation/ConflictofInterest.Consultantherebyrepresentsandwarrants thathewillreceivenocompensationfromanyotherpartyfortheperformanceofitsdutiesto Company,assetforthinExhibit“A”,exceptfromCompanyorasotherwiseagreedtoby Company,andthatConsultantwillimmediatelyreporttoCompanyanypotentialoractual conflictofinterestintheperformanceofitsdutieshereunder.
12. CompliancewithLawsandPolicies.ConsultantshallperformallServiceshereunderin compliancewithallapplicablelaws,orders,rulesandregulationsofgovernmentalauthorities. Inaddition,ConsultantshallcomplywithCompany’spoliciesandproceduresapplicableto contractorsandconsultantsinconnectionwithitsperformanceoftheServices.
13. Indemnification.Consultantshalldefend,indemnifyandholdharmlessCompany,its affiliates,andtheirrespectiveofficers,directors,employees,agents,andrepresentatives,from andagainstanyandallclaims,losses,liabilities,andexpenseswhatsoever(includingreasonable attorney’sfeesandrelateddisbursements),eitherinlaworinequity,incurredbyreasonof(i) anybreachbyConsultantofSections11and12hereof,(ii)anyfailureofConsultanttocomply withapplicablelaws,or(iii)anynegligenceorwillfulmisconductofConsultantinconnection withthisAgreementand/ortheperformanceofServiceshereunder. Companyshallhavethe righttooffsetanyamountsduetoCompanybyConsultantforadvancementsunderthis Agreement(excludingby wayof exampleandnot byway oflimitation,any non-refundable Retainer Payments) against any fees or other payments otherwise due Consultant hereunder.
14. Miscellaneous.
| 14.1 | Cooperation.EachofthePartiesheretoagree,atanytimeandfromtimetotime, upontherequestoftheotherPartyhereto,todo,execute,acknowledgeanddeliver,or causetobedone,executed,acknowledgedanddelivered,allsuchfurtheracts, documentsandinstrumentsasmayberequiredtoeffectanyofthetransactions contemplatedbythisAgreement. |
| 14.2 | EntireAgreement/Amendments.ThisAgreementreplacesandsupersedesallprior consultingagreements,andanyotheragreementsorunderstandingsrelatingtothe subjectmatterhereof,betweenthePartiestothisAgreement;notwithstandingthe priorclause,theNon-DisclosureAgreementreferredtoinSections8and9shall continueinfullforceandeffect.Noalteration,modification,amendmentorother changeofthisAgreementshallbebindingonthePartiesunlessinwritingand executedbybothParties. |
| 14.3 | BindingEffect.ThisAgreementshallbebindinguponandinuretothebenefitofthe Partiesheretoandtheirrespectiveheirs,executors,successorsandpermitted assignees. |
| 14.4 | Assignment.ThisAgreementispersonaltoConsultantandmaynotbeassigned, sold,transferred,delegatedordisposedbyConsultantwithoutthepriorwritten consentofCompany.Anysuchnon-authorizedtransfer,sale,delegationor disposition shallbe immediatelydeemedvoid andofno effect.Companymayassign thisAgreement,oranyofitsrights,benefitsorobligationshereunder(excluding obligationsrelatingtopaymentofConsultant’sfeesandexpenses),withoutprior consentprovidedthatsuchtransferistoabonafidethirdparty,madeingoodfaith, andnot made for the purpose of avoiding payment hereunder. |
| 14.5 | Non-Competition.(a)DuringthetermofthisAgreement,Consultantwillengagein nobusinessorotheractivitieswhichare,directlyorindirectly,competitivewiththe businessactivitiesoftheCompanywithoutobtainingthepriorwrittenconsentofthe Company;(b)Non-Solicitation.Consultantagreesthatforaperiodofone(1)year afterterminationofthisAgreement,Consultantshallnot:(i)divertorattemptto divertfromtheCompanyanybusinessofanykindinwhichitisengaged,including, withoutlimitation,thesolicitationoforinterferencewithanyofitssuppliersor customers,or (ii) employ,solicit for employment,or recommend foremployment any personemployed by the Company, during the Consultancy Period and for a period of one (1) year thereafter. |
| 14.6 | Notices.AnynoticeorothercommunicationpursuanttothisAgreementshallbein writingandshallbedeemedtohavebeenfullygivenormadewhenpersonally deliveredorwhenmailedbyanationallyrecognizedovernightdeliveryserviceorby UnitedStatesregisteredorcertifiedmail,postageprepaid,tothefollowingaddresses: |
IftoCompany:
AnthonyHayes,ChiefExecutiveOfficer
SpherixIncorporated
1350AvenueoftheAmericas,2ndFloor
NewYork, NY10019
IftoConsultant:
HowardE.Goldbergd/b/aForwardVisionAssociates
[REDACTED]
| 14.7 | GoverningLaw.ThisAgreementshallbeconstruedinaccordancewiththelawsof theStateofDelawarewithoutreferencetoconflictoflawsprinciples.TheParties heretoagreethatanyactionorproceedingrelatedtothisAgreementshallbesubject totheexclusivejurisdictionofthecourtsoftheStateofNewYork,NewYork |
County,ortheU.S.FederalCourtfortheSouthernDistrictoftheDistrictofNew YorkandeachofthePartiesconsentstothejurisdictionofsuchcourts(andofthe appropriateappellatecourts)inanysuchactionorproceedingandwaivesany objectiontovenuelaidtherein.
| 14.8 | WAIVEROFJURYTRIAL.TOTHEFULLESTEXTENTPERMITTEDBY APPLICABLELAW,CONSULTANTANDCOMPANYHEREBY IRREVOCABLYWAIVEALLRIGHTTOATRIALBYJURYINANYACTION ORPROCEEDING(WHETHERBASEDONCONTRACT,TORTOR OTHERWISE)ARISINGOUTOFORRELATINGTOTHISAGREEMENTOR ANYBREACHHEREOF. |
| 14.9 | Invalidity.ThetermsofthisAgreementshallbeseverablesothatifanyterm, clause,orprovisionhereofshallbedeemedinvalidorunenforceableforanyreason, suchinvalidityorunenforceabilityshallnotaffecttheremainingterms,clausesand provisionshereof,thePartiesintendingthatifanysuchterm,clauseorprovisionwere heldtobeinvalidpriortotheexecutionhereof,theywouldhaveexecutedan Agreementcontainingalltheremainingterms,clausesandprovisionsofthis Agreement. |
| 14.10 | WaiverofBreach.NofailureordelaybyeitherPartyinexercisinganyright,power orprivilegehereunderwilloperateasawaiverthereof,norwillanysingleorpartial exercisethereofprecludeanyotherorfurtherexercisethereofortheexerciseofany right,powerorprivilegehereunder. |
| 14.11 | EnumerationandHeadings.Theenumerationandheadingscontainedinthis Agreementareforconvenienceofreferenceonlyandarenotintendedtohaveany substantivesignificanceininterpretingthisAgreement. |
| 14.12 | ExportControl.Inaccordancewithandgovernedsolelybythetermsofaseparate Non-DisclosureAgreement,Consultantwilladheretoallapplicablelaws,regulations andrulesrelatingtotheexportandre-exportoftechnicaldataandshallnottransfer anyConfidentialInformationreceivedhereundertoanycountryprohibitedfrom obtainingsuchdata accordingto anynational exportregulation(e.g. U.S.Department ofCommerceExportAdministrationRegulations)withoutfirstobtainingCompany’s consenttopursuetheappropriateexportlicensesandauthorizations. |
| 14.13 | ForceMajeure.NeitherPartyshallbedeemedtobeindefaultof,ortohave breachedanyprovisionofthisAgreementasaresultofanydelay,orfailureinthe performanceorinterruptionoftheServices,solongassuchinterruptioniscausedby aforcemajeureevent(i.e.,aneventbeyondthereasonablecontrolofeitherParty including, butnotlimitedto,acts ofnature,fire,war,labor strikes,actsorregulations ofgovernmentagencies,materialsshortages,etc.).Thedelayorfailurein performanceorinterruptionofServicemustbewithoutthefaultornegligenceofthe Partyclaiming excusabledelay andthe Partyclaiming excusabledelay mustpromptly notify the other Party of such delay. Performance under this Agreement shall be considered extended for the period of time equivalent to the time of delay; provided, however, that if any such delay continues for a period of more than five (5) business days, the Party not claiming excusable delay shall have the option of terminating this Agreement upon written notice to the other Party hereto. |
| 14.14 | ConflictofTerms.ThetermsofthisAgreementshallgovernandsupersedeany conflictingtermscontainedwithin,butnotlimitedto,anyproposal,offeror discussionsbyandbetweenthePartiesrelatingtothesubjectmatterhereof. |
| 14.15 | Counterparts.ThisAgreementmaybeexecutedbythePartiesintwo(2)original counterparts,whichtogethershallconstituteoneandthesameoriginalinstrument. |
| 14.16 | CertainAcknowledgements.COMPANYACKNOWLEDGESTHAT CONSULTANTHAS NOTBEEN ENGAGEDTO, ANDWILL NOT,RENDER EITHERLEGALORFINANCIALADVISE,ANDTHATANYSTRATEGIC OROPERATIONALRECOMMENDATIONSRENDERED BYOR DEVELOPEDINCONJUNCTIONWITHCONSULTANTANDHAVING LEGALAND/ORFINANCIALCONSEQUENCESSHOULDBEREVIEWED WITHCOMPANY’SLEGALANDFINANCIALADVISORSASPARTOF THETRANSACTIONPROCESS. |
* * *
(Signaturescontinuedonthenextpage)
INWITNESSWHEREOF,thePartieshaveexecutedthisAgreementeffectiveasofthedatefirst abovewritten.
COMPANY
SpherixIncorporated
By: ___________________________
Name: _________________________
Title: __________________________
CONSULTANT
HowardE.Goldbergd/b/aForwardVisionAssociates
By: ____________________________
PrintName:HowardE.Goldberg,Principal
[Balanceofthispageintentionallyleftblank]
EXHIBIT“A”
TO
CONSULTINGAGREEMENT
Services
Consultant shall perform the following services (“Services”), subject tothe monitoring by AnthonyHayes,ChiefExecutiveOfficer,orhissuccessorordelegate:
| Ø | | Reviewandsuggestionsforenhancementand/ormodificationoftheCompany’sbusiness plan andstrategies tooptimizebusinessopportunitiesanddrivelong-termshareholdervalue; consideration ofcollateralshort-termstrategies |
| Ø | | Initiating commercialcontacts forthepurposeofexploringpotentialstrategicandfinancing relationships |
| Ø | | Advisory servicesrelated toCompany’scurrent,futureorpotentialSpherixIPmonetization including related and associated licensing and/or litigation strategies, as appropriate in conjunction with Company counsel |
| Ø | | Requested assistance in conjunction with negotiation and documentation of any licensing and/or settlement related to Spherix IP |
| Ø | | Such otherAdvisoryandConsultingServicesasmayberequestedfromtimetotime |
Scope:Totheextentthatanunusualsituationarisesinwhichthecontextdoesnotclearly delineateastowhethertheServicesarebeingperformedinaroleasadirectorofCompanyoras aConsultanthereunder,andtoeliminateanydoubtorpotentialconflictofinterest,thefollowing shallbeconsideredindeterminingwhethertheactivitiesarecompensatedpursuanttotheterms ofthisAgreement:
| • | Whethertheservicesareprovidedpursuanttoresponsibilitiesdelegatedtomanagement bytheBoardofDirectors |
| • | WhethertheresponsibilityandinvolvementoftheCompany’sChiefExecutiveOfficeris undertakenpursuanttothatroleorasadirectoroftheCompany |
| • | Whether,andtheextenttowhich,anyothermembersoftheBoardofDirectorshasa concurrentandsimilarlevelofengagementinprovidingsuchservicesasadirector |
| • | Whetheranyotherofficers,employees,orthirdpartiesareengagedtocollaboratewith Consultantinthescopeofservicesbeingundertaken |
SCHEDULEI TO
CONSULTINGAGREEMENT
BillingRates(1),(2):
| ► | Hourly - $ 425 (within Quarterly Retainer, until exhausted); $335 paid in equity for first fifty (50) quarterly hours once retainer has been exhausted; therefter above the Quarterly Retainer at $245 (non-equity). |
• Equityduehereundershallbe intheformmutuallyagreedbetweenConsultantand theCompanybaseduponFederalIncomeTaxdeferraltotheConsultant.Primaryconsiderationshallbegiventostructuringofrestrictedstockwhosevestingtermsare primarily time-basedwithoutfurtherperformance limitations. Inanycase,allvaluationsshallbebaseduponanIRCSec.409Avaluation thatiscurrentandrelevanttothetimeandcircumstancesofthe issuance.
| ► | QuarterlyRetainer -$20,400payablewithin ten(10)daysofthecommencementoftheinitial quarterlyretainerperiod fromAugust10,2015throughNovember9,2015“(InitialQuarterlyRetainerPeriod”),andthereafterbynolaterthanthecommencementofeachQuarterlyRetainerperiodonNovember10,2015,February10,2016,andMay10,2016,asapplicable(eacha“SubsequentQuarterlyRetainerPeriod”,andtogetherwiththeInitialQuarterlyRetainerPeriod,eachaQuarterlyRetainerPeriod(s)”). |
| ► | NoCarryover –Forpurposesofbilling,eachQuarterlyRetainerPeriodshallbeconsidered adiscreteanduniquebillingperiod,andbillingshallbeginineachQuarterlyRetainerPeriodfromthefirsthourapplicable toeachpaidQuarterlyRetainer.Nounusedornon-exhaustedQuarterlyRetaineramountsshallbecarriedovertoanySubsequentQuarterlyRetainerPeriod. |
| ► | Out-of-PocketCosts –Billedonactualcostbasis,withmileagechargesatIRSrates;hotel,autorerntal, train/plane faresandallothercostsofasimilarnatureshallbebooked inconsultationwithCompany.Companyshallberesponsible foranycancellation/change feesor feesorchargesofasimilarnature inconjunctionwithrestricted fareratesbooked inconsultationwithCompany. |
| (1) | Excludesout-of-pocketcoststobebilledatactualcostswithoutmark-up,andtraveltimeat |
$175/hr fornon-workingbillablehoursinexcessofonehoureachwayonadailybasis
| (2) | Dailyhoursbelow two(2)hourstoberoundeduptonearestwholehour,andtimeabovetwohoursdailyshallberoundeduptothenearestone-half(1/2)hour;minimumbillingofsixteen (16) hours per trip extending beyond the East Coast of the United States (e.g. west of the Mississipi River) on behalf of the Company (exclusive of non-working billable hours) |
BillingPolicies:
| • | Retainer –Non-refundable. |
| • | MonthlyBilling –on acalendarmonthbasis,exceptforendofQuarterlyRetainerPeriod tobe billedonpartialmonthbasis. |
| • | AdministrativeFees–nocharge foradministrative time, includingelectronicbillingbasedupon standardConsutantpractices;customizedbillingchargedbaseduponstandardhourlyrates |
| • | PaymentTerms –net20;rightsreservedtocharge interestat1%permonthonallpastdue accounts |
| • | Currency –billedandpayableinUSD |
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