EXHIBIT 10.1 TRADEMARK AND DOMAIN NAME PURCHASE AGREEMENT

 

 

                                                                    EXHIBIT 10.1

 

                   TRADEMARK AND DOMAIN NAME PURCHASE AGREEMENT

 

     THIS  TRADEMARK AND DOMAIN NAME PURCHASE AGREEMENT ("Agreement"), effective

as  of  14, November, 2005, is by and among Payment Data Systems, Inc., a Nevada

corporation,  and  Bills.com,  Inc.,  a  Delaware  corporation,  each  having  a

principal  place  of  business  at  12500  San  Pedro,  San Antonio, Texas 78216

(hereinafter together referred as "Seller") and Alivio Holdings, LLC, a Delaware

limited  liability  company,  having a principal place of business at 1875 South

Grant  Street, Suite 400, San Mateo, California 94402 ("Buyer") (together, Buyer

and Seller shall hereinafter be identified as the "Parties" or individually as a

"Party").

 

     WHEREAS,  Seller  adopted,  owns and has continuously used "bills.com" as a

trademark  for dissemination of advertising for others via an on-line electronic

communications  network; electronic bill presentment and payment information via

a  global  computer  information network; consulting and technical assistance in

the  field of designing, hosting, maintenance, operating, managing, advertising,

and  marketing  on-line  commerce  web  sites  (the  "Mark");

 

     WHEREAS,  Buyer wishes to acquire Seller's rights worldwide to the Mark and

the  goodwill  of Seller's business symbolized thereby and associated therewith;

 

     WHEREAS,  Seller  is  willing  to  assign to Buyer its rights in and to the

Mark,  along  with  the  goodwill  of  Seller's  business symbolized thereby and

associated  therewith  on  the  terms  and  conditions  hereinafter  provided;

 

     WHEREAS,  Seller  is  the  sole  owner  of  the Domain Name and the related

Intellectual  Property  Rights  (each  as  defined  below);  and

 

     WHEREAS, Buyer wishes to purchase from Seller and Seller wishes to sell and

assign  to Buyer the Domain Name and the related Intellectual Property Rights on

the  terms  and  conditions  hereinafter  provided.

 

     NOW,  THEREFORE,  in consideration of the foregoing and the mutual promises

and  consideration  hereinafter  set  forth,  the  Parties  agree  as  follows:

1.     As  used  in  this Agreement the following terms shall have the following

meanings:

 

     (a)     "Acquired Assets" shall mean the Domain Name, Intellectual Property

Rights  and  the  Mark.

 

     (b)  "Domain  Name"  shall  mean  the  domain address www.bills.com that is

registered  with  Network Solutions, LLC in the United States and all applicable

foreign  jurisdictions. The Domain Name does not include any web pages, computer

software,  copyrights,  patent  rights, trade secrets, or other assets of Seller

that  may  be  or  may  have  been  associated  with  the  Domain  Name.

 

     (c)  "Intellectual  Property  Rights"  shall  mean  any trademark, right of

trademark  registration  or  re-registration,  common  law  trademark  right and

goodwill  associated  with  the  Mark and the Domain Name, whether in the United

States or any foreign jurisdiction, including, but not limited to, the Mark. The

Intellectual  Property  Rights  do not include any web pages, computer software,

copyrights,  patent rights, trade secrets, or other assets of Seller that may be

or  may  have  been  associated  with  the  Mark  or  the  Domain  Name.

 

2.  At  the  Closing (as hereinafter defined) Seller will assign to Buyer all of

Seller's  right,  title  and  interest  throughout  the world in and to the Mark

(including, without limitation, U.S. Trademark Registration No. 2568868 and U.S.

Trademark  Registration No 2555338, collectively the "Trademark Registrations"),

together  with the goodwill of Seller connected with and symbolized by the Mark,

and  together  with  all  claims for past infringement(s) of the Mark including,

without  limitation,  the  right  to  sue  for, collect, and recover damages and

profits  for the same. Buyer specifically acknowledges that all assets of Seller

other  than  the  Acquired  Assets including, but not limited to, the CLICK YOUR

BILLS  GOODBYE  mark  and  U.S.  Trademark Registration No. 2,539,815 associated

therewith,  are expressly excluded from this Agreement and shall remain the sole

property  of  Seller.

 

3.     Buyer  shall  deliver  to  Seller,  on  the  Closing Date (as hereinafter

defined),  the sum of nine hundred fifty thousand dollars ($950,000) in the form

of  wire  transfer  of  immediately  available  funds.

 

4.     At  the  Closing,  Seller  will  (a)  execute  and  deliver  a  trademark

assignment  in  the  form  attached  hereto  as  Appendix A, along with Seller's

complete  application  and  registration  files for the Mark and (b) execute and

deliver  to  Buyer a signed, dated, and fully notarized original Registrant Name

Change  Agreement  in  a form acceptable to Go Daddy Software, Inc. or allow for

the  successful  domain  transfer  through  the interNIC system, transferring to

Buyer  the  entire  right,  title,  and  interest  in  and  to  the Domain Name.

 

5.     At  the  Closing, Buyer and Seller will execute and deliver the following

documents and instruments each of which shall be in a form mutually satisfactory

to  Buyer  and  Seller:

 

         (i)     Bill  Payment  Services  Agreement;  and

         (ii)    Non-Competition  Agreement;

 

6.  Seller  agrees  to assign and, upon consummation of the transactions, hereby

does  assign to Buyer all rights in the Domain Name and the related Intellectual

Property Rights. Seller further agrees to cooperate as necessary in the transfer

of the Domain Name and the related Intellectual Property Rights to Buyer. Seller

agrees not to use, register, or attempt to register any domain name, mark, name,

or  other  designation  of  origin  which  includes the term "bills.com" (or any

variation  thereof  that  is  likely to cause confusion). Except as set forth in

this  Agreement,  Seller  agrees not to use the term "bills.com" (and variations

thereof that are likely to cause confusion) as a domain name, trademark, service

mark,  trade name, or other designation of source after the Closing Date of this

Agreement.  Buyer  specifically acknowledges that Seller shall have the right to

continue its business under any name, mark, or domain name that is not likely to

cause  confusion  with respect to the Mark or the Domain Name including, but not

limited  to,  "billx.com,"  "billhelp.com,"  and "billxpress.com." Buyer further

acknowledges  and agrees that Seller shall have the right to continue to operate

its  business using the "bills.com" Domain Name and Mark for a period of 60 days

after  the  Closing  Date  or  until such time as the Parties have completed the

process of converting the "bills.com" web site of Seller to another domain name,

whichever  occurs  earlier.  Buyer  agrees  to  cooperate  with  Seller  in such

conversion  process,  and Buyer agrees that it will not change any IP addresses,

DNS  settings,  or  other material aspects of the "bills.com" web site until the

Parties  mutually  agree  in  writing  that  the conversion process is complete.

 

7.     Except  as set forth in this Section 7, Buyer shall not assume, and Buyer

shall  not  be  deemed  to  have  assumed nor agreed to pay, perform, fulfill or

discharge,  any  contract  or  agreement (whether written or oral), liability or

other  obligation  of  Seller,  including,  without  limitation,  any  liability

relating to the transfer of an Acquired Asset.  Buyer hereby assumes all losses,

costs,  liabilities  and obligations that arise on or after the Closing Date and

relate  solely  to  the  Acquired  Assets  (the  "Assumed  Liabilities").

 

8.     Seller  hereby  represents  and  warrants  as  follows:

 

     (a)  Seller  is  the owner of the Mark as applied to the goods listed above

and  has  the  corporate  right  to  enter  into this Agreement and the attached

assignments;  Seller  does  not  know  of any prior use of the Mark or any third

party  claim  of any prior use of the Mark or any confusingly similar mark on or

in  connection with the same or similar goods or services; and, to the knowledge

of  Seller,  there  are  no  challenges to Seller's ownership of the Mark or its

right  to  assign  the  Mark  and  the  associated  goodwill  to  Buyer.

 

     (b)  Seller  has  not  abandoned  use of the Mark and Seller has reasonably

continuously  used  the Mark in commerce since its adoption, as set forth in the

Trademark  Registrations, in connection with the goods or services listed in the

Trademark  Registrations.

 

     (c)  Except  for  a  fictitious business name registered in the city of San

Antonio and the State of Texas which Seller will terminate within 30 days of the

Closing,  and other than the Trademark Registrations and the Domain Name, Seller

has filed no applications and owns no registrations or other claims to ownership

relating to any trademark, service mark, trade name, or fictitious business name

application  or  registration  for  the  Mark  worldwide.

 

     (d)  Seller  is  the  owner of the Domain Name and the related Intellectual