CONSULTING AND PARTICIPATION AGREEMENT
This
Consulting and Participation
Agreement (the “Agreement”) is effective as of January 10, 2010,and is
made by and between m-Wise,
Inc., Inc, a Delaware corporation, ("m-Wise") with offices at 0
Xxxxx Xxxxxx, Xxxxxxxxx, Xxxxxx and TMT Strategic Advisors (“COMPANY”), with offices
located at 000 X Xxxxxxxx Xxxxx #000, Xxxxxxx Xxxxx, XX 00000, XXX (each a
“Party” and collectively, the “Parties”).
Recitals
A.
|
m-Wise
is a company that provides products and services in the field of
Telecommunication and
Entertainment.
|
B.
|
COMPANY
is a company that among other things, provides consulting, advisory, and
brokering services to clients in the telecommunications and/or
entertainment industry.
|
C.
|
m-Wise
is desirous of engaging COMPANY to provide consulting and brokering
services on a non-exclusive basis to promote m-Wise’s products and
services in the territories agreed by the parties from time to time in
writing, and COMPANY desires to enter into a relationship with m-Wise to
provide such services as described
herewith.
|
Therefore,
the parties agree as follows:
1.
|
COMPANY,
at its own expense, shall explore opportunities with companies that may be
interested in purchasing m-Wise’s products or services or in entering into
other business transactions with m-Wise. COMPANY shall arrange
introductions and contacts between m-Wise and such companies, and shall
provide support where requested to assist in the transactions between
them. This engagement for such services shall be on a non-exclusive basis
unless otherwise agreed in writing between the
parties.
|
2.
|
In
the event that COMPANY introduces to m-Wise (i) a prospective customer or
business partner with whom m-Wise was previously personally unacquainted
(“Customer”), and/or (ii) a prospective transaction of which m-Wise was
unaware but with a company previously acquainted with m-Wise
(“Transaction”), m-Wise shall determine, at its own and complete
discretion, whether to enter into a business relationship with the
Customer or to enter into the Transaction. COMPANY shall have no claims
against m-Wise if it determines not to enter into such business
relationship or transaction.
|
3.
|
M-Wise
shall pay COMPANY a sum of $20,000 (twenty thousand US dollars) against a
three months process that will be conducted by COMPANY in which COMPANY
shall deliver at least 12 (twelve) qualified meetings between m-Wise and
potential Customers, specified in the list set as Appendix A herewith,
where the Customer will be represented in that meeting by personnel who
have decision authorities in matters related to signing Transactions with
m-Wise (“Qualified Meeting”, “Business Development Fee”). In addition
m-Wise shall pay COMPANY a sum of $100 (one hundred US Dollars) against
any delivered Qualified Meeting (“Meeting Fee”). Notwithstanding the above
M-Wise shall pay company an additional fee of $5,000 (five thousand US
dollars) in case number of Qualified Meetings reaches 18 meetings or above
(“Additional Business Development
Fee”).
|
1
4.
|
Payment
of Business Development Fees to COMPANY according to section 3 above shall
be done by issuance of m-Wise stocks to COMPANY or to persons appointed by
COMPANY. Promptly after the execution of this Agreement m-Wise shall
register 1,000,000 common shares on COMPANY’s or COMPANY’s appointed
person’s name and shall then issue stocks to COMPANY following COMPANY’s
performance as described in section 3 above where the value of the issued
stocks shall reflect sums payable to COMPANY as Business Development Fees
or Additional Business Development Fees at the issuance date. In case
COMPANY delivers less that 12 qualified meetings in a period of 4 months
as of execution of this agreement then number of stocks issued to COMPANY
shall be reduced proportionally (i.e. if only 10 meetings are delivered
COMPANY shall received 10/12 X $20,000 in issued stocks). In case COMPANY
achieves 18 Qualified Meetings or more m-Wise shall further issue to
COMPANY additional m-Wise stocks which will be paid to COMPANY as
Additional Business Development Fee. Payment of Meeting Fees shall be paid
to COMPANY in cash.
|
5.
|
M-Wise
shall reimburse COMPANY’s expensed related to the efforts specified in
this agreement only upon prior approval sent by m-Wise to COMPANY in
writing.
|
6.
|
Notwithstanding
the above, in the event that COMPANY introduces m-Wise to a third party
(“Buyer”) and such third party enters into a transaction to merge or
acquire an interest in m-Wise (including an acquisition of substantially
all m-Wise’s assets), COMPANY shall be entitled to compensation based on
the amount of such purchase/sale price in accordance with the following
formula:
|
Transaction Size
|
Fee
|
|||
$1,000,000
- $5,000,000
|
1.5 | % | ||
$5,000,000
- $10,000,000
|
3 | % | ||
Over
$10,000,000
|
4 | % |
7.
|
Payment
shall be made to COMPANY by m-Wise by the 30th
day of each calendar month for revenues received by m-Wise in the previous
calendar month. m-Wise shall prepare and provide with the payment a
written accounting each month detailing the amounts of gross revenue that
it received (i) from each Customer, and (ii) for each
Transaction, and shall state any deductions that are taken for expenses
related thereto. Payment of the amounts due to COMPANY shall be made by
wire transfer to a bank account designated by COMPANY in writing to
m-Wise.
|
8.
|
This
Agreement shall be effective as of the execution date thereof, and shall
remain in force for a period of six months. However, COMPANY shall be
entitled to receive fees under paragraph 6 above for Transactions executed
between m-Wise and Buyers under this agreement in a period of up to six
months after the termination of this
agreement;
|
2
9.
|
Upon
written request, but not more then once a year, m-Wise shall provide
COMPANY, with a letter signed by m-Wise CFO and CEO specifying all net
amounts actually received from Buyers and certifying that m-Wise's is in
compliance with Section 6 of this Agreement. Similar letter may be
provided by m-Wise auditors on Company’s own expense. This clause shall
remain in effect as long as Company is entitled to receive Commissions,
and for a period of one year
thereafter
|
10.
|
Each
Party represents and warrants to the other Party that the individual
executing this Agreement on its behalf has the requisite power and
authority to bind that party to the terms
hereof.
|
11.
|
The
Parties are independent firms and are not in partnership nor shall there
be deemed to be any relationship between them for any purpose whatsoever,
including that of
employer/employee.
|
12.
|
Company
has no right or authority to create, in writing or otherwise, any
obligation of any kind, to sign any agreement, or quote prices, on behalf
of m-Wise, unless Company has obtained the prior written consent of
m-Wise. Company shall not represent m-Wise and m-Wise’s Products beyond
the information provided by m-Wise in writing. m-Wise reserves the right
to determine in its sole discretion all prices of Products and the
acceptability of any contract or order. m-Wise shall have the sole and
absolute right to decide whether or not to negotiate with a potential
client, to make any offer or to accept any offer from any potential
client, without any liability to Company or Sub Agent and shall have no
liability to Company or Sub Agent in respect of its failure to enter into
and/or comply with the terms of any agreement. No party shall
have the authority to bind any other party except as set forth herein and
no party shall be responsible for oversight or supervision of any other
party or be liable for the acts or omissions of any other
party.
|
13.
|
Title
and all ownership rights and/or copyright to m-Wise's products or
services, including any associated documentation, and any updates,
improvements, alterations or modifications thereto and all copies and
reproductions thereof, no matter by whom made, shall be retained at all
times by m-Wise. Company shall promote m-Wise's products and services
(including all promotional activities) only under the trademarks applied
to them by m-Wise, and prominently display such trade name and m-Wise as
the copyright holder of the products and services in all appropriate
marketing media.
|
14.
|
COMPANY
and m-Wise shall have the right to assign this Agreement to a third party
only upon the written consent of the other party
hereto.
|
15.
|
For
a period of two (2) years from the date of receipt of Confidential
Information (as defined below), both parties hereto shall refrain from (i)
divulging any Confidential Information to any third party or to any of its
employees or outside advisors who do not have a need to know such
information, or (ii) using any Confidential Information for its own use or
benefit other than for the purpose of fulfilling its obligations under
this Agreement.
|
3
|
(a)
|
Confidential
Information includes without limitation: (i) any information or material
proprietary to the disclosing party; and (ii) any information not
generally known by respective non-company personnel; and (iii) any
information which the Receiving Party should know the Disclosing Party
would not wish to have revealed to others or used in competition with the
Disclosing Party. The Confidential Information includes but is not limited
to the following types of information and other information of a similar
nature (whether or not reduced to writing): Inventions (as defined below),
development procedures, “know-how”, specifications, models, software and
other technology in various stages of development, diagrams, data,
flowcharts, spreadsheets, marketing and development plans, customer names
and other information related to customers, price lists, pricing policies,
supplier lists, and financial
information.
|
|
(b)
|
For
the purposes of this Agreement, “Inventions” shall mean ideas, designs,
creations, concepts, techniques, inventions, improvements, discoveries,
and works of authorship, whether or not patentable or protectable by
copyright, mask work or patent, whether or not fixed in a tangible medium
of expression and whether or not reduced to practice, including but not
limited to the nature and results of research and development activities,
processes, formulae, devices, designs, processes, computer programs, and
methods, together with any improvements thereon or thereto, derivative
works or applications derived therefrom, and know-how related
thereto.
|
|
(c)
|
The
obligations of the Receiving Party regarding the confidentiality of
Confidential Information shall not apply to any information which (i) is
contained in a generally available publication bearing a date prior to the
date of this Agreement; (ii) is or becomes available to the public other
than as a result of improper action by the Receiving Party; (iii) is known
by the Receiving Party from a source independent of any restrictions
imposed by the Disclosing Party or becomes rightfully known to the
Receiving Party from such source; (iv) shall be or has been independently
developed by Receiving Party; (v) is furnished by the Disclosing Party to
a third party without explicit or implied restrictions of confidentiality
on the third party's rights to disclose same; or (vi) is required to be
disclosed under applicable law, subject to the Receiving Party giving the
Disclosing Party prior notice
thereof.
|
16.
|
NO
PARTY SHALL UNDER ANY CIRCUMSTANCES BE LIABLE TO THE OTHER PARTY FOR
INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES, LOSSES,
LIABILITIES, COSTS, OR EXPENSES (INCLUDING, BUT NOT LIMITED TO, LOSS OF
PROFITS, GOODWILL, REVENUE, OR BUSINESS) RESULTING FROM OR IN ANY WAY
RELATED TO THIS AGREEMENT, OR THE TERMINATION OF THIS AGREEMENT. THIS
LIMITATION APPLIES REGARDLESS OF WHETHER SUCH DAMAGES ARE SOUGHT BASED ON
BREACH OF CONTRACT, BREACH OF WARRANTY, NEGLIGENCE, STRICT LIABILITY OR
ANY OTHER LEGAL OR EQUITABLE
THEORY.
|
17.
|
This
Agreement sets forth the entire agreement and understanding between the
parties with respect to the subject matter hereof and supersedes and
replaces all prior agreements and negotiations, whether written or oral,
with respect thereto. This Agreement shall not be altered or amended
except by writing executed by each
party.
|
18.
|
This
Agreement may be executed simultaneously in two or more counterparts, each
of which taken together shall constitute but one and the same
instrument.
|
19.
|
This
Agreement shall be governed and construed in accordance with the laws of
the State of Israel.
|
4
20.
|
No
provision of this Agreement may be modified, waived or discharged unless
such waiver, modification or discharge is agreed to in writing and signed
by m-Wise and COMPANY. No waiver by either party hereto at any time of any
breach by the other party hereto of, or compliance with, any condition or
provision of this Agreement to be performed by such other party shall be
deemed a waiver of similar or dissimilar provisions or conditions at the
same or at any prior or subsequent
time.
|
21.
|
The
provisions of this Agreement shall be deemed severable, and the invalidity
or unenforceability of any provision shall not affect the validity or
enforceability of the other provisions
hereof.
|
m-Wise,
Inc.
|
COMPANY
|
By:
Zach Sivan_______________________
|
By:
Xxxxxxx Shapiro___________
|
Title:
CEO_________________________
|
Title:
Partner, TMT___________________
|
Signature:
_/s/Zach Sivan______________
|
Signature:
/s/ Xxxxxxx Shapiro________________
|
5