EXHIBIT 10.1
800 COMMERCE INC.
ADVISORYBOARDAGREEMENT
THISADVISORYBOARDAGREEMENTismadeeffectiveasof August1st,2012,(the"Effective
Date")byandbetween 800CommerceInc. a FloridaCorporation(the"Company"),andJames Canton(the
"Advisor").
RECITALS
A.CompanydesirestoobtaintheservicesofAdvisortoserveontheCompany’sBoardof
Advisors(the“AB”),andtheAdvisordesirestoserveontheAB,uponthefollowingtermsandconditions.
B.Companyhasspentsignificanttime,effort,andmoneytodevelop certainProprietary
Information(asdefinedbelow),whichCompanyconsidersvitaltoitsbusinessandgoodwill.
C.TheProprietaryInformationmaynecessarilybecommunicatedtoorreceivedbyAdvisorinthe courseofservingon theABfortheCompany,and Companydesirestoobtainthe ServicesofAdvisor,onlyif,indoingso,itcanprotectitsProprietaryInformationandgoodwill.
D.Companydoesnot,however,desire toreceivefromAdvisor,orforAdvisortoeither inducetheuseoforuseinconnectionwiththeperformanceoftheServices,anyinformationwhichisconfidentialtoorownershipofwhichresidesin athirdparty,whetheracquiredeitherpriortoorsubsequenttoAdvisor'sretentionhereunder.
AGREEMENT
NOW,THEREFORE,thepartiesheretoherebyagreeasfollows:
1.AdvisoryBoardMember.Companyhereby retainsAdvisorto serve on itsAdvisoryBoard.ThetermofthisAgreement(the“Term”)shallbetheperiodcommencingontheEffectiveDateandterminatinguponthirty(30)dayspriorwrittennoticedeliveredbyeitherpartytotheotherforanyreason.Uponanyterminationof the Servicesasprovidedinthe precedingsentence,this AgreementshallterminateexceptthattheprovisionssetforthinSections2.b, 4and 6ofthisAgreementshallsurvivesuchtermination.
2.Position,Duties,Responsibilities.
a.Duties.Advisor shall performthose services (“Services”)as reasonablyrequestedbytheCompanyfromtimetotime,includingbutnot limitedtothe ServicesdescribedonExhibitAattachedhereto.AdvisorshalldevoteAdvisor'scommerciallyreasonableeffortsandattentiontothe performanceoftheServicesforthe Companyonatimelybasis.Advisorshallalsomakehimselfavailableto answerquestions,provideadvice andprovideServicestotheCompanyuponreasonablerequestandnoticefrom theCompany.
b.IndependentContractor;NoConflict.Itisunderstoodandagreed,anditistheintentionof the partieshereto,that Advisorisan independentcontractor,andnotthe employee,agent,jointventurer,orpartnerofCompanyforanypurposeswhatsoever.AdvisorisskilledinprovidingtheServices,.Totheextentnecessary,Advisorshallbesolelyresponsibleforanyandalltaxesrelatedtothereceiptofanycompensationunder thisAgreement.Advisorhereby represents,warrantsandcovenantsthatAdvisorhas theright,powerandauthoritytoenterintothisAgreementandthatneithertheexecutionnordeliveryofthisAgreement,northeperformanceoftheServicesbyAdvisorwillconflictwithorresultin abreachoftheterms,conditionsor provisionsof, or constituteadefaultunder,anycontract,covenantorinstrumentunderwhichAdvisorisnoworhereinafterbecomesobligated.
3.Compensation,Benefits,Expenses.
a.Compensation.AsfullandcompleteconsiderationoftheServicestoberenderedhereunder,theCompanyshallpayAdvisortheCompensationdescribedonExhibit Aattachedhereto.
b.ReimbursementofExpenses.Companyshallpromptly reimburseAdvisorforanyreasonablecostsandexpensesincurredbyAdvisorinconnectionwithanyServicesspecificallyrequestedbyCompanyandactuallyperformedbyAdvisorpursuantto the termsof thisAgreement.Each suchexpenditureorcostshallbereimbursedonlyif:(i)withrespecttocostsinexcessof$100,individually,Advisorreceivespriorapprovalfrom theCompany’sCEOorCFOorotherexecutiveforsuchexpenditureorcost,and (ii)withrespecttocostsinlessthan$100,individually,providedAdvisorfurnishestoCompanyadequaterecordsandotherdocumentsreasonablyacceptabletoCompanyevidencingsuchexpenditureorcost.
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4.ProprietaryInformation;WorkProduct;Non-Disclosure.
a.Defined.Companyhasconceived,developedandowns,andcontinuestoconceiveanddevelop,certainpropertyrightsandinformation,includingbutnot limitedtoitsbusinessplansandobjectives,client andcustomerinformation,financialprojections,marketingplans, marketingmaterials,logos,anddesigns,andtechnicaldata, inventions,processes,know-how,algorithms,formulae,franchises,databases,computerprograms,computersoftware,userinterfaces,sourcecodes,object codes,architectures and structures,display screens, layouts,development tools and instructions,templates,andother trade secrets,intangibleassetsandindustrialorproprietarypropertyrightswhichmayormaynotberelateddirectlyorindirectlytoCompany'ssoftwarebusinessandalldocumentation,mediaorothertangibleembodimentoforrelatingtoanyoftheforegoingandallproprietaryrightsthereinofCompany(allofwhicharehereinafterreferredtoasthe"ProprietaryInformation").Althoughcertaininformationmaybegenerallyknownin therelevantindustry,thefactthatCompanyusesitmaynotbeso known.Insuchinstance,theknowledgethatCompanyusestheinformationwouldcompriseProprietaryInformation.Furthermore,thefact thatvariousfragmentsofinformationordatamaybegenerallyknownintherelevantindustrydoesnotmeanthatthemannerinwhichCompanycombinesthem,andtheresultsobtainedthereby,areknown.Insuchinstance,thatwouldalsocompriseProprietaryInformation.
b.GeneralRestrictionsonUse.Advisoragrees toholdallProprietaryInformationinconfidenceandnotto,directlyorindirectly,disclose,use,copy,publish,summarize,orremovefromCompany'spremisesany ProprietaryInformation(orremovefromthepremisesany otherpropertyofCompany),except(i)duringtheconsultingrelationshiptotheextentauthorizedandnecessarytocarryoutAdvisor'sresponsibilitiesunderthisAgreement,and(ii)afterterminationoftheconsultingrelationship,onlyasspecificallyauthorizedinwritingbyCompany.Notwithstandingtheforegoing,suchrestrictionsshallnot applyto: (x)informationwhichAdvisorcanshowwasrightfullyinAdvisor'spossessionatthetimeofdisclosurebyCompany;(y)informationwhichAdvisorcanshowwasreceivedfromathirdpartywholawfullydevelopedtheinformationindependentlyofCompanyorobtainedsuchinformationfromCompanyunderconditionswhichdidnotrequirethatitbe heldinconfidence;or(z)informationwhich,atthetimeof disclosure,isgenerallyavailabletothepublic.
c.OwnershipofWorkProduct.AllWorkProductshallbeconsideredwork(s)madebyAdvisorforhireforCompanyandshallbelong exclusivelytoCompanyanditsdesignees.Ifbyoperation oflaw,anyoftheWorkProduct,includingallrelatedintellectualpropertyrights,isnotownedinitsentiretybyCompanyautomaticallyuponcreationthereof,thenAdvisoragreestoassign,andherebyassigns,toCompanyanditsdesigneesthe ownershipofsuchWorkProduct,includingall relatedintellectualpropertyrights."WorkProduct"shallmeananywritings(includingexcel,powerpoint,emails,etc.),programming,documentation,datacompilations,reports,andanyothermedia,materials,orotherobjectsproducedasaresultofAdvisor'sworkordeliveredbyAdvisorinthecourseofperformingthatwork.
d. Incidentsand Further Assurances.Companymay obtain and hold in its own namecopyrights, registrations,andotherprotection thatmaybeavailable in theAdvisor.Advisoragrees toprovideanyassistance requiredtoperfectsuchprotection.Advisoragrees to takesure furtheractions andexecuteanddeliversuchfurtheragreementsandotherinstrumentsasCompanymayreasonablyrequesttogiveeffecttothisSection4.
e.ReturnofProprietaryInformation.Upon terminationof thisAgreement,AdvisorshalluponrequestbytheCompanypromptlydelivertoCompanyatCompany’ssolecostandexpense,all drawings,blueprints,manuals,specificationdocuments,documentation, source or object codes, tape discs andanyotherstoragemedia, letters,notes,notebooks,reports, flowcharts,andallothermaterialsin itspossessionorunderitscontrolrelatingtotheProprietaryInformationand/orServices,aswellasallotherpropertybelongingtoCompanywhichistheninAdvisor'spossessionorunderitscontrol.Notwithstandingthe foregoing,AdvisorshallretainownershipofallworksownedbyAdvisorpriortocommencingworkforCompanyhereunder,subjecttoCompany'snonexclusive,perpetual,paiduprightandlicensetousesuchworksinconnectionwithitsuseoftheServicesandanyWorkProduct.
f.Remedies/AdditionalConfidentialityAgreements.NothinginthisSection 4is intendedtolimitanyremedyofCompanyunderapplicablestateorfederallaw. AttherequestofCompany,Advisorshall also execute Company'sstandard"ConfidentialityAgreement"or similarlynamed agreementassuchagreementiscurrentlyappliedtoandenteredintobyCompany'smostrecentemployees.
5.Non-Compete.DuringtheTerm,AdvisorshallprovidetheCompanywithpriorwrittennoticeifConsultantintendstoprovideanyservices,asanemployee,consultantorotherwise,toany person, companyorentitythat competesdirectlywiththeCompany,whichwrittennoticeshallincludethe nameof thecompetitor.During theperiod that issix (6)monthsafter the terminationof thisAgreement,AdvisorshallprovidetheCompanywithwrittennoticeanytimethat Advisorprovidesanyservices,asanemployee,consultantorotherwise,toanyperson,companyorentitythatcompetesdirectlywiththeCompany.Notwithstandinganythingto the contrarycontained herein,Companyhereby consentstoConsultantprovidingservices,asanemployee,consultantorotherwise,tothefollowingcompanies.
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6.Miscellaneous.
a.Notices.AllnoticesrequiredunderthisAgreementshallbedeemedtohavebeengivenormadeforallpurposesuponreceiptofsuchwrittennoticeorcommunication.Noticestoeachpartyshallbesenttotheaddresssetforthbelowtheparty'ssignatureonthesignaturepageofthisAgreement.Eitherpartyheretomaychangetheaddresstowhichsuchcommunicationsaretobedirectedbygivingwrittennoticetotheotherpartyheretoofsuchchangeinthemannerprovidedabove.
b.EntireAgreement.ThisAgreementand any documents attachedhereto asExhibits constitutethe entire agreement andunderstandingbetweenthepartieswith respect to the subjectmatterhereinandtherein,andsupersedeandreplaceanyandallprioragreementsandunderstandings,whetheroralorwrittenwithrespecttosuchmatters.TheprovisionsofthisAgreementmaybewaived,altered,amendedorreplacedinwholeorinpartonlyuponthewrittenconsentofbothpartiestothisAgreement.
c.Severability,Enforcement.If, for any reason, any provisionof thisAgreement shallbedeterminedtobe invalidorinoperative,the validityandeffectoftheotherprovisionshereinshallnotbe affectedthereby,providedthat no suchseverabilityshallbeeffectiveifitcauses amaterialdetrimenttoanyparty.
d.Governing Law.The validity, interpretation, enforceability, and performanceof this
AgreementshallbegovernedbyandconstruedinaccordancewiththelawsoftheStateofFlorida.VenueforanyandalldisputesarisingoutofthisAgreementshallbetheCityofPalmBeach,StateofFlorida.
e.InjunctiveRelief.ThepartiesagreethatintheeventofanybreachorthreatenedbreachofanyofthecovenantsinSection4,thedamageorimminentdamagetothevalueandthegoodwillofCompany'sbusinesswillbe irreparableandextremelydifficulttoestimate,makinganyremedyatlaworindamages inadequate.Accordingly, thepartiesagree thatCompany shallbeentitled to injunctive reliefagainstAdvisorintheeventofanybreachorthreatenedbreachofanysuchprovisionsbyAdvisor,inadditiontoanyotherrelief(includingdamages)availabletoCompanyunderthisAgreementorunderapplicablestateorfederallaw.
f.Publicity.The Companyshall, with prior written approval by Advisor, have the right touse thename,biographyandpicture ofAdvisoron theCompany’swebsite, marketingandadvertisingmaterials.
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Date.
INWITNESSWHEREOF,eachpartyhereto hasdulyexecutedthisAgreementasoftheEffective
COMPANY | ||
---|---|---|
800 COMMERCE INC. | ADVISORY BOARD MEMBER | |
Signature | Signature | |
Name | Name |
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Exhibit AtoAdvisoryBoardAgreement
Services.
AsamemberoftheAdvisoryBoard,youshall:
vParticipateinmonthlyAdvisorycallswhichwilllastnomorethan 1hour
vParticipateinannualfulldayretreat
vBeaccessibletoCompanytoprovideguidanceonbusinessandtechnologystrategyissuesonanas-neededbasis
v | Patents |
v | Business Strategy |
v | Alliances |
v | Advice |
v | Business Development |
Compensation.
TheCompanyshallissueAdvisoranon-qualifiedstock optiontopurchase 800,000shares(“OptionShares”)oftheCompany'scommonstockatanexercisepriceequaltothirtycents($0.30)pershare(whichisthecurrentvalueofeachshare).TheOptionSharesshallvestasfollows:providedthisAgreementremainsineffect,200,000sharesshallvestimmediatelyandtheremaining600,000OptionSharesshallvestat therateof
50,000sharespermonthonthelastdayofeachmonthover12consecutivemonths.