SERVICES
AGREEMENT
This SERVICES AGREEMENT (the " Agreement
"), is entered into as of July 22, 2009 (the " Effective
Date ") by and between Adama Technologies Corporation ,
a corporation incorporated under the laws of the State of Delaware
(“ Recipient ”), and Adama Technologies
(Israel) Ltd. , a company incorporated under the laws of the
State of Israel (“ Provider ”).
RECITALS
WHEREAS , Recipient desires, from time to time, to
engage Provider to provide services for the benefit of Recipient;
and
WHEREAS , Provider desires to provide such services to
Recipient;
NOW THEREFORE , the parties agree as follows:
1.
Services
1.1. Scope of Services . At
the request of Recipient, Provider will provide Recipient with
business management services, including, without limitation,
on-going supervision, management and business development of the
Recipient's business activities as well as any other services that
will be requested by the Recipient (the “ Services
”). In rendering the Services, Provider Personnel (defined
below) shall act, among other duties, as CEO of Recipient and as
such shall have full power and authority to negotiate, conclude,
sign, execute or in any other way accept contracts or business
engagements in the name of or on behalf of Recipient and exercise
discretion with respect to the conduct of the business of
Recipient.
1.2. The Services will be provided by
employees or contractors of Provider, which are to be pre-approved
by Recipient ( "Provider Personnel "). As of execution of
this Agreement, the Services will be provided by Peled Barkai and
Omri Krigel, who shall personally perform all Services. Recipient
will be entitled to replace the individuals providing the Services,
with or without cause, upon 7 days prior written notice to
Provider.
2.
Payments.
2.1. Direct Cost . Recipient will
pay Provider for all the direct costs (“ Direct Costs
”) that Provider incurs in rendering the Services, including
payments made to Provider Personnel; travel; rent; office costs and
similar items directly allocable to Provider’s provision of
the Services.
2.2.
Profit Sharing . In addition to payment of the Direct Costs,
in consideration for the rendering of the Services, Provider will
be entitled to a share of Recipient’s profits at an amount
equal to 80% of Recipient’s profit (“ Profit
Share ”). The Profit Share will only be payable to
Provider at the end of the fiscal year in which profits were
generated by Recipient or as otherwise will be agreed by the
parties.
2.3. Reporting and Payment
Terms .
(a) Provider will invoice Recipient
on a quarterly basis for the amount of Direct Costs due and
payable. Recipient will pay the Direct Costs no later than 90
calendar days after receipt of the quarterly invoice. Late payments
shall incur interest at the minimum applicable rate required under
applicable laws.
(b) Provider will furnish Recipient,
together with the applicable invoice, with a report showing the
components of cost comprising the Direct Costs under the applicable
invoice, together with such information related thereto reasonably
requested by Recipient.
2.4. At the end of each fiscal year, during
the term of this Agreement, Recipient shall issue Provider a
report, executed by an officer of Recipient, indicating the
aggregate profits generated by recipient in the past year and
showing the applicable amount payable to Provider as Profit share
thereunder. The Profit Share shall be due and payable within 4
months from the end of the fiscal year with respect to which such
payment is being made.
2.5. Withholding Taxes . Recipient
may withhold from payments due under this Agreement such taxes as
are required to be withheld under applicable law. If any tax is
withheld by Recipient, Recipient shall provide Provider with
receipts or other evidence of such withholding and payment to the
appropriate tax authorities.
2.6. VAT Taxes . All invoices from
Provider shall include value added and similar taxes, if and to the
extent required by applicable law. The costs of such taxes shall be
borne by Provider and shall not be remitted by Recipient
notwithstanding their required inclusion in any invoice.
3.
Intellectual Property .
3.1. Ownership of Rights .
Any Proprietary Rights (as defined below), whether or not
patentable or registrable under copyright or similar laws, that are
developed, invented, improved, reduced to practice and/or conceived
by Provider, Provider Personnel or any of its employees or service
providers through the provision of the Services to the Recipient,
are and will be the sole and exclusive property of the
Recipient.
3.2. Assignment of Rights .
To the extent applicable, Provider hereby assigns (the “
Rights Assignment ”) to Recipient all rights, title
and interest throughout the world in each invention or improvement
that results from the Services, and all related improvements,
inventions, formulae, ideas, processes, techniques, know-how and
data, whether or not patentable, made or conceived or reduced to
practice or learned by Provider on or after its organization,
including any and all patent and patent rights, copyrights, trade
secret rights, and other rights in connection therewith ("
Proprietary Rights "). The Rights Assignment includes an
assignment of Provider’s rights under any and all inventions
assignment and non-disclosure agreements executed with Provider
Personnel and its employees, contractors, consultants and agents.
Provider undertakes to assist Recipient in every proper way to
evidence and perfect the Rights Assignment and to apply for and
obtain, and from time to time enforce, maintain, and defend the
Proprietary Rights in any and all countries that Recipient may
designate. Provider will execute all documents that Recipient may
request for such purposes.
4.
Confidentiality
4.1. Definition . “
Confidential Information ” means any information
disclosed by one party to the other party pursuant to this
Agreement in any form that is marked “Confidential,”
“Company Secret,” or disclosed under circumstances that
reasonably indicate that the information is confidential.
Confidential Information may also include information disclosed
orally by one party to the other party pursuant to this Agreement
under circumstances that reasonably indicate that the information
is confidential. All of the rights to be assigned under the Rights
Assignment are considered Confidential Information of
Recipient.
4.2. Non-Use; Non-Disclosure
. Each party agrees to (a) keep in confidence and trust all of
the other party’s Confidential Information received by it,
(b) not to use such Confidential Information other than as
expressly permitted under the terms of this Agreement or any other
agreement between the parties, (c) take all reasonable steps
to prevent unauthorized disclosure or use of the other
party’s Confidential Information, and to prevent it from
falling into the public domain or the possession of
unauthor