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 owne