TRANSITION
AGREEMENT
This TRANSITION AGREEMENT (the “
Agreement ”), is made as of December 15, 2006, by and
between Das Family Holdings, a California corporation (“
Licensor ”), and BPOMS/HRO, Inc., a Delaware
corporation (“ Licensee ”).
R E C I T A L
S:
A. Immediately prior hereto, Licensor purchased
BPO Management Services, Inc.’s interest in Research
Engineers, Ltd. and certain other assets including, without
limitation, the Internet domain name set forth on Exhibit A
hereto (the “ Domain Name ”) and trademark set
forth on Exhibit A hereto (the “ Mark ”
and collectively with the Domain Name, the “ Marks
”) pursuant to the terms and conditions of that certain
Purchase Agreement dated August 29, 2006, as amended (the “
Purchase Agreement ”), between Licensor and BPO
Management Services, Inc. (formerly netGuru, Inc.), a Delaware
corporation (“Parent”).
B. Licensee is a wholly-owned subsidiary of
Parent.
C. Licensee intends to continue to market and sell
(i) certain engineering business process outsourcing services for
the architecture, engineering, and construction (A/E/C) industry,
(ii) document/project collaboration software/solutions for A/E/C
companies, enterprise software providers, software integrators, and
other businesses engaged in document/project-centric operations,
and (iii) technical services and support (collectively, the “
Business ”).
D. Licensee desires to obtain from Licensor and
Licensor desires to grant to Licensee a temporary license to use
the Marks in connection with the Business during the Term (as
defined in Section 7 below), on the terms and subject to the
conditions set forth herein.
A G R E E M E N
T:
NOW, THEREFORE, in consideration of the mutual
covenants herein and for other good and valuable consideration, the
receipt and sufficiency of each of which are hereby acknowledged,
the parties hereby agree as follows:
1. Grant of License . Licensor hereby grants to Licensee, and
Licensee hereby accepts, an exclusive, non-transferable,
royalty-free license (the “ License ”) to use
and display the Marks, and to use the Domain Name for the purpose
of promoting the Business and directing customers or potential
customers to an Internet web site or other computer server
accessible via the Internet in connection with the Business, during
the Term and subject to the restrictions on use set forth in
Section 2 below. Licensee shall have no right to grant sublicenses
of the Marks or to assign its rights hereunder to any other party
except as expressly provided in Section 11(d) hereof.
2. Restrictions on License of Marks; Likelihood of
Confusion .
(a) Licensee shall only use the Marks in connection
with the operation and promotion of the Business in a manner
consistent with its usage prior to the date hereof and for no other
purpose whatsoever.
(b) Licensee shall not adopt or use any word, name,
mark or other designation that is likely to cause confusion with
the Marks and shall not make any unlicensed use or file any
application for registration of the Marks or any mark confusingly
similar thereto anywhere in the world. Licensee shall not use or
advertise the Marks in a manner which is likely to cause third
parties to believe that Licensee is related to Licensor in any way
other than as a holder of a license to the Marks. In the event that
Licensor reasonably believes an action or practice undertaken by
Licensee is likely to be confusing to third parties, Licensor may,
in its sole discretion, require Licensee to cease and desist use of
the Licensee in that manner, and Licensor and Licensee shall work
together in good faith to modify such action or practice so as to
comply with this Agreement.
3. Consideration . The grant of the License hereunder is a
requirement and inducement for Parent to consummate the
transactions contemplated by the Purchase Agreement and, as such,
the parties agree that this constitutes adequate consideration.
Accordingly, Licensee shall not be required to pay a separate
royalty or other charge for the License.
4. Title in Licensor . Licensee acknowledges Licensor’s use of
the Marks and agrees that Licensee shall not acquire any right,
title or interest in or to the Marks by virtue of the License or
through Licensee’s use of the Marks other than the right to
use such Marks to the extent expressly provided under this
Agreement. Licensee agrees that it shall not (a) assert any claim
to the Marks other than as a licensee as expressly provided herein,
(b) contest in any way Licensor’s ownership of or right to
use such Marks, or (c) take any action or any position inconsistent
with such ownership.
5. Quality Control . Licensee agrees to use the Marks only in
connection with the purpose for which they are intended, which
purpose shall not reflect adversely upon the good name of Licensor
or the goodwill and reputation associated with the
Marks.
6. Infringement by Third Parties
. If Licensee learns of any
infringement of the Marks or of the existence, use or promotion of
any mark or design that is confusingly similar to the Marks by any
third party, or believes that any third party may be so infringing
the Marks or using or promoting any such confusingly similar mark
or trade name, Licensee shall promptly give Licensor notice in
accordance with Section 11(c). If Licensor elects to take action
against any infringement, Licensee shall, at Licensor’s cost,
render all reasonable assistance to Licensor in connection
therewith.
7. Term .
The term of this Agreement (the “ Term ”) shall
be for a period commencing on the date hereof and expiring on March
31, 2007, except in the event that (a) the parties hereto mutually
agree to terminate this Agreement in which event the Term shall
terminate at such agreed upon time, (b) Licensee materially
breaches this Agreement in which case the Agreement shall terminate
immediately, (c) Licensor materially breaches this Agreement in
which case the Agreement may be terminated at the election of
Licensee, (d) an Event of Default occurs under that certain secured
promissory note in principal amount of $125,000 made in favor of
Licensor dated the same date hereof, in which case the Agreement
shall terminate immediately, or (e) Licensee is no longer a
wholly-owned subsidiary of Parent, Licensee discontinues its
business, makes an assignment for the benefit of creditors, files a
petition under Section 11 of the United States Bankruptcy Code (or
any successor thereto), is adjudicated bankrupt or insolvent, a
petition in bankruptcy is filed against Licensee that is not
dismissed within sixty (60) days, a receiver or trustee is
appointed for Licensee’s business or property or there is a
permanent cessation of business by Licensee, in which case the
Agreement shall terminate immediately. For purposes of this
Agreement, a material breach
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