License Agreement by and between Authentic Heroes, Inc. and Paul Serbiak, dated May 2, 2022

Contract Categories: Intellectual Property - License Agreements
EX-10.1 2 gftx_ex101.htm LICENSE AGREEMENT gftx_ex101.htm





This License Agreement (the "Agreement"), dated May 2, 2022 (the "Effective Date"), is entered into by Paul Serbiak (the "Licensor") and Authentic Heroes, Inc. (the "Licensee"), a corporation organized and existing under the laws of NEVADA .


WHEREAS, Licensor is the authorized licensor of certain Licensed Technology (as defined below);


WHEREAS, pursuant to this Agreement, Licensee desires to obtain, and Licensor desires to grant, a license of the Licensed Technology to enable Licensee to manufacture, market and sell Exclusive Products (as defined below), in the United States;


NOW, THEREFORE, in consideration of the foregoing and of the mutual agreements and covenants herein contained, the Parties hereto agree as follows:


Section 1. Definitions.


1.1 "Affiliate" of a person or entity shall mean any entity Controlled by, under common Control with or under the Control of such person or entity.


1.2 "Agreement" shall have the meaning set forth in the Preamble.


1.3 "Change in Control" shall mean, with respect to a Party, (i) the acquisition of that Party by another entity by means of any transaction or series of related transactions, whether effected by that Party or its stockholders (including, any stock acquisition, reorganization, merger, consolidation or the like but excluding any sale of stock for capital raising purposes), other than a transaction or series of transactions in which the holders of the voting securities of that Party outstanding immediately prior to such transaction continue to retain (either by such voting securities remaining outstanding or by such voting securities being converted into voting securities of the surviving entity) on account of their shares of stock of that Party as of immediately prior to such transaction a majority of the total voting power represented by the voting securities of the Party or such surviving entity outstanding immediately after such transaction or series of transactions; or (ii) a sale, lease or other conveyance of all or substantially all of the assets of that Party (including the sale or exclusive licensing of all or substantially all of the Intellectual Property assets of that Party).


1.4 "Confidential Information" means all information and materials, including source code and software, that are not generally known to the public and in which either Party, or its suppliers, clients or other persons (to the extent such Party owes a duty of confidence to any such person) has rights, and which (i) is marked confidential, restricted or proprietary, or (ii) under all of the circumstances, ought reasonably to be treated as confidential. Confidential Material of Licensor includes the Licensed Technology. Confidential Information does not include information that: (i) is, as of the time of its disclosure, or thereafter becomes, part of the public domain without breach of this Agreement; (ii) was known to the receiving Party as of the time of its disclosure; (iii) is independently developed by employees of the receiving Party who have not used or had access to the Confidential Information as evidenced by written documentation; or (iv) is subsequently learned from an unaffiliated Third Party not subject to an obligation of confidentiality with respect to the information disclosed.


1.5 "Control" shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of an entity, whether through the ownership of registered capital or voting securities, by agreement or otherwise, and includes (i) ownership directly or indirectly of fifty percent (50%) or more of the shares or other equity interests in issue or registered capital of such entity, (ii) ownership, directly or indirectly of fifty percent (50%) or more of the voting power of such Person or (iii) the power directly or indirectly to appoint a majority of the members of the board of directors or similar governing body of such entity, and the terms "Controlled" and "Controlling" shall have correlative meanings.




1.6 "Cure Period" shall have the meaning set forth in Section 14.2(d).


1.7 "Disclosing Party" shall have the meaning set forth in Section 12.1.


1.8 "Event of Force Majeure" shall have the meaning set forth in Section 16.1.


1.9 "Executive Business Reviews" shall have the meaning set forth in Section 7.4.


1.10 "Exclusive Products" shall mean products in the sports and music memorabilia business, which are used in Field and other applications.


1.11 "Field" shall mean the sports and music memorabilia business.


1.12 "Hindered Party" shall have the meaning set forth in Section 12.1.


1.13 " Improvements" shall mean shall mean technical data, engineering information and Know-How which are improvements or modifications to the Licensed Technology and are developed jointly, by Licensee or Licencor or one or more employees, agents or contractors of both or either Parties or their Affiliates during the Term.


1.14 "Indemnification Claim" shall have the meaning set forth in Section 10.5.


1.15 "Indemnified Party" shall have the meaning set forth in Section 10.5.


1.16 "Indemnifying Party" shall have the meaning set forth in Section 10.5.


1.17 "Intellectual Property" shall mean (a) patents, patent applications, patent disclosures and all related continuation, continuation-in-part, divisional, reissue, reexamination, utility model, certificate of invention and design patents, patent applications, registrations and applications for registrations; (b) trademarks, service marks, trade dress, Internet domain names, logos, trade names and corporate names and registrations and applications for registration thereof; (c) copyrights and registrations and applications for registration thereof; (d) mask works and registrations and applications for registration thereof; (e) computer software, data and documentation; (f) inventions, trade secrets and confidential business information, whether patentable or non-patentable and whether or not reduced to practice, Know-How, manufacturing and product processes and techniques, research and development information, copyrightable works; and (g) copies and tangible embodiments thereof.


1.18 "Know-How" means know-how, trade secrets and other confidential technical information, including, technical data, formulae, specifications, processes, methods, software source code, and materials , unless such information is generally known and generally available for public use without breach of a confidentiality obligation.


1.19 "License" shall mean the licenses granted in Section 2.1 and Section 2.2.




1.20 "Licensed Technology" shall mean certain of Licensor's Patent Rights, Know-How and Intellectual Property rights in the form of technical data and engineering information, all as specifically described in Appendix 1.


1.21 "Licensee" shall have the meaning set forth in the Preamble.


1.22 "Licensor" shall have the meaning set forth in the Preamble.


1.23 "Licensor IP Claim" shall have the meaning set forth in Section 12.2.


1.24 "Loss" shall have the meaning set forth in Section 12.1.


1.26 "Party" shall mean Licensor or Licensee, individually, and "Parties" shall mean Licensor and Licensee, collectively.


1.27 "Patent Rights" shall mean those patent applications and patents set forth in Appendix 1 hereto, and any continuations, divisionals, reissues, and reexaminations thereof.


1.28 "Products" shall mean the Exclusive Products.


1.29 "Receiving Party" shall have the meaning set forth in Section 12.1.


1.30 "Reporting Period" shall begin on the first day of each calendar month and end on the last day of such month.


1.31 "Revenue" shall mean the GAAP definition of Revenue.


1.32 "Revenue Targets" shall have the meaning set forth in Section 2.4.


1.33 "Royalties" shall have the meaning set forth in Section 5.1(b).


1.34 "Technical Documentation" shall mean documentation embodying technical information, know-how, trade secrets, data, plans, specifications, necessary for Licensee to exploit the Licensed Technology to develop, use, make, and have made Products.


1.35 "Term" shall have the meaning set forth in Section 14.1


1.36 "Territory" shall mean the United States.


1.37 "Third Party" shall mean any person or entity other than a Party to this Agreement.


1.38 "USA" shall mean the United States of America.


1.39 "US dollars" or "US$" shall mean the lawful currency of the United States.


Section 2. Grant of License.


2.1 Exclusive License. Provided Licensee fully complies with its obligations under this Agreement (including its confidentiality obligations under Section 16, and the payment of all applicable fees and royalties), and subject to the terms and conditions of this Agreement, Licensor grants to Licensee, and Licensee hereby accepts from Licensor, an exclusive, non-sublicensable (except as provided in Section 2.6), non-transferable, royalty-bearing license under the Licensed Technology to develop, use, make, offer to sell, sell, lease and otherwise provide to third parties the Exclusive Products (including, for clarity, the sale of products in the sports and music memorabilia business), solely in the Field in the Territory during the Term. Licensee may not have the Exclusive Products made by a Third Party without Licensor's prior written consent.




2.2 Third-Party Manufacturers. In addition to the rights granted to Licensee in Section 2.1, Licensee shall have the right to have Products made by its Affiliates that are not competitors of Licensor.


2.3 Technical Documentation. At the Effective Date, Licensor shall deliver to Licensee one (1) complete copy of the Technical Documentation in both electronic and hardcopy form. Licensor hereby grants Licensee the right to use, copy and adapt the Technical Documentation for solely the purpose of developing, using, and making Products in accordance with this Agreement.


2.4 Revenue Targets. The revenue targets of Revenue that Licensee must meet to retain the exclusive rights set forth in Section 2.1 are set forth in Section A of Appendix 2, attached hereto ("Revenue Targets"). If Licensee fails to achieve any such Revenue Targets Licensor may convert the exclusive license in Section 2.1 to a non-exclusive license upon written notice to Licensee, which conversion shall be effective on the date specified for such conversion in the notice. Conversion of the exclusive license to a non-exclusive license shall be Licensor's sole remedy for Licensee's failure to meet such Revenue Targets under this Section 2.4. From time to time, the Parties shall review the foregoing performance milestones and shall discuss in good faith any requested adjustments requested by either Party based on such review. If the Parties do not agree on any adjustments during such review, the then-current performance milestones shall remain in effect.


2.5 Professional Services. Licensee has the right to provide professional services in the Territory to Licensee's customers in relation to its Products and Licensor shall provide Licensee with training to provide such services.


2.6 Sublicensing and Marking. Licensee has the right to sublicense the Licensed Technology to any partner of Licensee to which Licensee transfers its business or operations relating to the subject matter of this Agreement; provided that (i) the partner is neither a competitor of Licensor nor a subsidiary or Affiliate of a competitor of Licensor and (ii) the partner agrees in writing to be bound by the same obligations under this Agreement applicable to Licensee and that Licensor shall have the right to terminate the sublicense if partner is subsequently acquired by a competitor of Licensor and (iii) Licensee maintains management control over the partner, which control shall include control over the day-to-day operations of such partner. If Licensee does not maintain such management control over the partner as required by subparagraph (iii), then any such sublicense shall be subject to Licensor's prior review and written consent. Licensee shall be liable for any act or omission of such partner that would be a breach of this Agreement if such act or omission were committed by Licensee. Licensee shall not obscure, remove or alter any of the trademarks, trade names, logos, patent or copyright notices or markings from the Licensed Technology.


2.7 Ownership. Licensee agrees and acknowledges that, as between Licensee and Licensor, Licensor is the sole and exclusive owner of all the Licensed Technology. Licensee shall not, and shall not abet or encourage any Third Party to, challenge the scope, validity or enforceability of any of the Intellectual Property rights in the Licensed Technology. Nothing in this Agreement shall be construed to confer any rights upon Licensee by implication, estoppel, or otherwise as to any technology, patent or other Intellectual Property rights of Licensor or any other entity other than the rights granted hereunder with respect to the Licensed Technology.




2.8 Infringement. Licensee shall notify Licensor immediately of any information it obtains concerning any Third Party's infringement on any patent right or other proprietary right of Licensor with respect to the Licensed Technology and Licensor shall notify Licensee immediately of any information it obtains concerning any Third Party's infringement on any patent right or other proprietary right of Licensor with respect to the Licensed Technology that Licensor reasonably believes might affect Licensee's rights under this Agreement.


Section 3. Technical Support. Licensor or its Affiliates shall be responsible for providing qualified technical personnel and services to assist and support Licensee's personnel in the use of the Licensed Technology.


Section 4. Rights to Improvements. All Improvements to the Licensed Technology during the Term shall belong to the Licensor. All Improvements shall constitute Confidential Information of Licensor and shall be subject to the confidentiality provisions set forth in Section 12. If requested by Licensee, Licensor shall grant Licensee and its wholly owned subsidiaries under the Improvements a license that is exclusive and consistent with the terms of the license granted in Section 2.1, without additional compensation.


Section 5. Fees, Royalties and Payment Terms.


5.1 Consideration for Grant of Rights.


(a) License Fee. In consideration of the rights granted hereunder, Licensee shall pay to Licensor a fee of $100 within ten (10) business days of this Agreement and a fee of $10,000 on or before January 1, 2023 (together, the “License Fees”).


(b) Royalties. During the Term, Licensee shall pay to Licensor running royalties as indicated in Appendix 2.


5.2 Payments.


(a) Method of Payment. All payments under this Agreement shall be made by wire transfer to a bank account, anywhere in the world, as Licensor may identify to Licensee in writing from time to time.


(b) Currency. All payments under this Agreement shall be made in United States Dollars. Prior to calculation of Royalties, any Revenue arising in any other currency other than United States Dollars shall be converted to U.S. Dollars at the exchange rate that is the median rate between the applicable buying and selling rates on the last business day of the applicable Reporting Period.


(c) Late Payments. Any payments by Licensee that are not paid on or before the date such payments are due under this Agreement shall bear interest at a rate equal to the lesser of (i) 10% per annum and (ii) the highest rate permitted by applicable law.


Section 6. Competitiveness of Licensed Technology. The Parties shall use commercially reasonable efforts to work together to provide that the Licensed Technology remains competitive, in terms of technology and price, with competing technologies.




Section 7. Reports and Records.


7.1 Frequency of Reports. Licensee shall deliver reports to Licensor within 60 days after the end of each Reporting Period, containing information concerning Products and Revenue in such Reporting Period and all other information necessary to allow the Parties to calculate the Royalties owing to Licensee.


7.2 Content of Reports and Payments. Each report delivered by Licensee to Licensor shall contain at least the following information for the immediately preceding Reporting Period:


(a) the number of Products, categorized by type of Product into which they are incorporated, sold, leased or distributed by Licensee and its Affiliates during such Reporting Period;


(b) the gross price charged by Licensee and its Affiliates for each Product, categorized by type of Product;


(c) calculation of Revenue of Products for the applicable Reporting Period, together with the exchange rates used for conversion of any Revenue obtained by Licensee in any currency other than United States Dollars; and


(d) total Royalty payable on Revenue of Products, in U.S. Dollars.


If no amounts are due to Licensor for any Reporting Period, the report shall so state.


7.3 Records. Each Party shall maintain, and shall cause its Affiliates to maintain, complete and accurate records relating to its rights and obligations under this Agreement and any amounts payable to the other Party in relation to this Agreement, which records shall contain sufficient information to permit each Party to confirm the accuracy of any reports delivered to such Party and compliance in other respects with this Agreement. Each Party shall retain such records for at least five (5) years following the end of the calendar year to which they pertain, during which time the other Party shall have the right to engage an independent certified public accountant, at the other Party's expense, to inspect such records during normal business hours to verify any reports and payments made or compliance in other respects under this Agreement.


7.4 Executive Business Review. Executive management of the Parties will plan to meet in person for periodic business reviews during the Term (such meetings, the "Executive Business Reviews"). The Executive Business Reviews will assess the performance of both Parties and adapt business plans as may become necessary from time to time as well as the matters contemplated in Sections 2.5, 3 and 6. Additional management reviews will be scheduled as needed.


Section 8. Taxes and Bank Charges.


8.1 All taxes, duties, registration fees or other charges or fees arising in connection with the implementation of this Agreement imposed by law or a competent government authority on Licensor shall be borne by Licensee. Licensee shall gross up all payments to Licensor to ensure Licensor receives the full amount of the License Fees, Royalties and other payments due to it in accordance with this Agreement, after withholding of applicable taxes and deductions of other applicable charges and fees. All taxes in connection with the subject matter of this Agreement that are levied by authorities on Licensor shall be borne by Licensor.


8.2 All bank charges incurred shall be borne by Licensee.




Section 9. Warranties.


9.1 Mutual Warranties. Each Party represents and warrants that it is duly organized and validly existing under the laws of its domicile, and has the power and authority to enter into and perform its obligations under this Agreement.


9.2 Licensor Warranties. Licensor represents and warrants that:


(a) the Licensed Technology conforms in all material respects to the applicable documentation set forth in Appendix 1;


(b) it has the full right, power, and authority, including all necessary governmental authorizations, licenses, and other approvals, to grant the rights and licenses described in this Agreement, free and clear of any and all claims, rights, and obligations of Third Parties;


(c) as of the Effective Date, Licensor has not received any written notice from a Third Party that the Licensed Technology or the Technical Documentation infringes or misappropriates, any patent, trademark, copyright, trade secret or other Intellectual Property or proprietary rights;


(d) the Technical Documentation delivered to Licensee contains all Licensor’s documentation, specifications, and technical information, in each case that is in written or electronic form and is in Licensor's possession as of the Effective Date, and that relates to the use of the Licensed Technology to develop and manufacture Products.


(e) neither the Licensed Technology nor the Technical Documentation is subject to United States export laws and regulations, including, the Export Administration Regulations of the U.S. Department of Commerce Bureau of Industry and Security (15 C.F.R. Parts 730-774) and International Traffic in Arms Regulations of the U.S. Department of State Directorate of Defense Trade Controls (22 C.F.R. Parts 120-130) and Licensor's grant of the rights and licenses described in this Agreement will not violate any laws of the USA.




Section 10. Indemnification


10.1 Each Party shall indemnify, defend, and hold harmless the other Party and its Affiliates and their respective employees, representatives and agents, successors and assigns from and against any Third Party claim, suit, action, demand, damages, liabilities, expenses (including reasonable fees and disbursements of counsel and court costs), judgments, settlements and penalties of every kind (collectively, "Losses") arising out of, resulting from or related to (i) the first Party's gross negligence or intentional misconduct of itself or of its employees, agents, representatives or subcontractors during the performance of its obligations under this Agreement or (ii) in the case of Licensee, its exercise of the rights granted by Licensor under this Agreement, including product liability claims or demands that arise from Licensee's development, integration, assembly, manufacture, production, verification, use, offer to sell or sale of Products, in each case, only to the extent that such Losses do not arise from an IP Claim.




10.2 During the term of this Agreement and for three (3) years thereafter, Licensor shall defend Licensee from any Third Party claim that the Know How described in Appendix 1 (as such appendix is updated by the Parties during the Term) or Improvements licensed to Licensee under Section 4 (collectively, the "Licensed Materials") infringe or misappropriate any proprietary right of such Third Party (each, a "Licensor IP Claim"), and subject to the other terms of this Section 10, and the limitations set forth in Section 11, Licensor shall (i) pay any damages awarded by a court or agreed to by Licensor in a settlement arising from such Licensor IP Claim and (ii) reimburse Licensee for (A) Licensee's cost of the destruction, disposition, modification, or repair of Products in Licensee's inventory at the time of a settlement or injunctive relief ruling or other court order resulting from a Licensor IP Claim (the "Order") and (B) the value of the inventory destroyed or disposed of, provided that (x) in the case of destruction or disposition of Products, either the destruction or disposition is required to be undertaken to comply with the terms of such Order or such Order prohibits the sale of such Products, or (y) in the case of modification or repair of Products, the modification or repair is required to be undertaken to comply with the terms of such Order.


10.3 Notwithstanding the foregoing, Licensor shall have no responsibility for Licensor IP Claims to the extent they result from (i) misuse of, or improvements or modifications to, the Licensed Materials by Licensee, its customers or any other Third Party, (ii) design specifications used by Licensee that were not provided by Licensor, (iii) Licensee's design or development activities or (iv) the combination, operation or use of the Licensed Materials with any products or technology not supplied by Licensor. If a Licensor IP Claim is subsequently found by a court of competent jurisdiction or other competent authority to result solely or in part from any actions or items described in clauses (i) through (iv) above, Licensee shall indemnify Licensor for Losses arising from such claim, including reasonable expenses Licensor incurred in handling the claim, but not to the extent such Losses are attributable to acts by Licensor (which acts, for clarity, do not include the grant of rights hereunder by Licensor).


10.4 If the use of the Licensed Materials as authorized under this Agreement, or any part thereof, is enjoined or in Licensor's opinion is likely to become the subject of a valid claim of infringement, then Licensor may, at its sole expense: (i) procure for Licensee the right to continue using the Licensed Materials as authorized hereunder; (ii) replace the Licensed Materials with a non-infringing version of equivalent function and performance; (iii) modify the Licensed Materials to be non-infringing and to be of equivalent function and performance; or (iv) if the remedies in clauses (i) through (iii) cannot be obtained with respect to any infringing Licensed Materials after using reasonable efforts, terminate this Agreement with respect to such Licensed Materials , in which case Licensee will cease using such Licensed Materials after the date of Licensor's notice of such termination.


10.5 If either Party is entitled to make a claim (an "Indemnification Claim") for indemnification under Section 10.1 or 10.2 (the "Indemnified Party"), it shall promptly notify the other Party (the "Indemnifying Party") in writing of the Indemnification Claim. The Indemnifying Party shall defend the Indemnified Party, at the Indemnified Party's request, from and against any Indemnification Claim. Promptly after receipt of such request, the Indemnifying Party shall assume the defense of such Indemnification Claim with counsel of its choosing, but reasonably satisfactory to the Indemnified Party. The Indemnifying Party must conduct the defense of the Indemnification Claim in a commercially reasonable manner. The Indemnified Party will cooperate with the Indemnifying Party and provide the Indemnifying Party with all information in its possession or control that is related to the claim or its defense. The Indemnifying Party shall not settle or compromise any such Indemnification Claim if the settlement or compromise imposes any liability on or makes any admission of liability on behalf of the Indemnified Party, or in any way restricts the Indemnified Party's right to conduct its business (excluding restrictions on use of the Licensed Technology or Licensee Improvements, as applicable), unless the Indemnifying Party obtains the prior written consent of the Indemnified Party (which consent shall not be unreasonably withheld) and an unconditional release of all indemnified claims by each plaintiff or claimant in favor of the Indemnified Party. In addition, the Indemnified Party may, at its own expense, retain its own counsel to participate in the defense and settlement of any Indemnification Claim tendered under this Section, provided that such counsel may act solely in an advisory role.




Section 11. Limitations of Liability.




11.2 Limitation of Liability. Each Party's aggregate liability under any theory (including contract, tort, indemnity, or otherwise) arising out of or in connection with this Agreement shall not exceed $50,000 provided, however that the limitations in Sections 11.1 and 11.2 shall not apply to Licensee's breach of Sections 2.1 or 2.2 (or other unauthorized use or misappropriation of the Licensed Technology), Section 2.6, or either Party's breach of Section 9.


Section 12. Confidentiality.


12.1 Restrictions. Each Party agrees that, with respect to any Confidential Information that is disclosed by one Party (the "Disclosing Party") to the other Party (the "Receiving Party"), except as expressly specified in this Agreement, the Receiving Party shall:


(a) maintain in confidence such Confidential Information, using the same degree of care as it uses to protect its own confidential information of like nature, but not less than a reasonable degree of care;


(b) except as permitted in Section 12.3 below, not disclose any such Confidential Information to any person outside that Party's business organization; and


(c) use such Confidential Information only for the purposes set forth in this Agreement and subject to the terms and conditions of this Agreement.


12.2 Licensee Obligations. Licensee shall limit the use of and access to the Licensed Technology, and all other Confidential Information provided by Licensor hereunder, to its employees and consultants whose use of or access to the Confidential Information is necessary for Licensee's exercise of its rights under this Agreement and who are bound by an obligation to maintain the confidentiality of such Confidential Information at least as stringent as that set forth in this Agreement. Licensee shall not remove any copyright, proprietary rights or confidentiality notices included in or affixed to any Confidential Information, and shall reproduce all such notices on any copies of Confidential Information made by Licensee. Licensee shall destroy the Confidential Information in the event of termination of this Agreement.




12.3 Exceptions. The Receiving Party may disclose Confidential Information to the minimum extent necessary, if such disclosure is: (i) required to be made pursuant to law or regulation, government authority, duly authorized subpoena or court order, whereupon the Receiving Party will provide prompt notice to the Disclosing Party and give such Party a reasonable opportunity to respond prior to such disclosure and seek a protective order or other appropriate remedy, or (ii) is approved by the express prior written consent of the Disclosing Party. If a protective order is not available, the Receiving Party shall only provide that information which is absolutely necessary and obtain whatever level of obligation the governmental agency is willing to assume for the protection of such Confidential Information. In addition, the subject matter of this Agreement may be disclosed to persons within the Parties' own management or those of their Affiliates or within governments having jurisdiction or to the Parties' legal counsel to the extent, and only to the extent, that the recipients of such information need it to perform properly their functions pertaining to the subject matter of this Agreement.


Section 13. Public Statements.


13.1 The Parties will jointly coordinate all press conferences, press releases, or public statements about their co-operation regarding the strategic business relationship contemplated by this Agreement and any press release or public statement shall be subject to the consent of the other Party, which shall not be unreasonably withheld, conditioned or delayed. Notwithstanding the foregoing, either Party may disclose the provisions of this Agreement on a confidential basis, to its financial and legal professionals and bankers, or to any of its Affiliates that is benefitting from the rights granted hereunder, or on a non- confidential basis in the context of a public offering or public company reporting obligations as required under applicable law.


13.2 The Parties intend to jointly announce the expanded strategic relationship promptly following their execution of the Agreement and may specify in the announcement that Licensee has exclusive license rights under the Licensed Technology in the Territory.


Section 14. Term and Termination.


14.1 Term. The Term of this agreement shall be ten (10) years from the Effective Date unless extended by mutual written agreement of the parties or unless terminated according to this Section 14 ("Term").


14.2 Termination for Cause: This Agreement and all rights and licenses granted hereunder may be terminated by written notice:


(a) By either Party if the other Party becomes bankrupt, or is the subject of proceedings for liquidation or dissolution, or ceases to carry on business;


(b) By either Party if any governmental authority having authority over either Party requires any provision of this Agreement to be revised in such a way as to cause significant adverse consequences to that Party, in the discretion of such Party;


(c) By either Party if the consequences of an Event of Force Majeure (as defined below) excuse performance hereunder for a period in excess of six months;


(d) By the non-breaching Party in the following circumstances: a Party is in material breach of the terms or conditions of this Agreement and such breach is not cured by such breaching Party within 30 days after receipt of written notice of such breach from a non-breaching Party (the "Cure Period"), then the non- breaching Party shall have the right to serve written notice to the breaching Party to terminate this Agreement; provided, however, that if the Party that received the aforesaid written notice of breach does not agree that it is in material breach of the terms or provisions of this Agreement as alleged in such notice, such Party shall have the right to submit such disagreement to arbitration pursuant to Section 18. In such event, the award rendered by the arbitration tribunal shall govern the issue of the termination of this Agreement under this Section 14.2(d). In addition to the right of the non-breaching Party, at its option, to terminate this Agreement, the non-breaching Party shall have the right to seek monetary damages as compensation for such breach. The monetary damages shall be measured from the date of the first breach, and not the date of receipt of the notice thereof. The monetary damages shall be the amount provided by law to fully compensate the non-breaching Party;




(e) By Licensor if there is unauthorized use of Licensor's Intellectual Property rights in the Territory or outside of the Territory that is attributable to Licensee's actions and that is not attributable to Licensor's actions; or


(f) By Licensee if Licensor undergoes a Change in Control and assigns this Agreement in violation of Section 19.


14.3 Sections 1, 2.7, 4, 7, 8, 9.3, 10, 11, 12, 13, 14, 15, 16, 18, 19, 20, 21, and any payment obligations that have accrued under Section 5 but have not been paid to Licensor as of the date of expiration or termination, shall survive the expiration or termination of this Agreement according to their terms.


14.4 Upon the termination of this Agreement pursuant to this Section 14, (a) all amounts then due and unpaid by either Party hereunder, as well as all other amounts accrued but not yet payable by Licensee at that time, shall become immediately due and payable to the other Party, and (b) except for early termination of this Agreement by Licensee under Section 14.2(d), Licensee shall return all the Licensed Technology and Licensor Improvements to Licensor, and Licensee shall not have the right to use any Licensed Technology or Licensor Improvements or to disclose Licensed Technology or Licensor Improvements in any form to any Third Party and Licensee shall stop selling Products not in inventory.


14.5 If Licensee terminates this Agreement pursuant to Section 14.2(d), Licensee may continue to use the Licensed Technology for programs in production at the time of termination for a period of six months following such termination, subject to payment of all applicable fees and royalties.


14.6 If Licensor terminates this Agreement pursuant to Section 14.2(g), Licensee shall have the right to continue to supply Product to customers for a period of six months under purchase orders that are outstanding as of the date of termination. The Parties will also negotiate in good faith the manner in which to address any related service requirements for Licensee's customers during such time period.


Section 15. Notices. Any notice or other communication required to be given by any Party under this Agreement shall be in writing in the English language and shall be given by (i) personal delivery, (ii) internationally recognized courier service, (iii) facsimile, or (iv) registered airmail, postage prepaid, to the address of the other Party set forth below or to such other address as may from time to time be designated by the other Party through notification to such Party. The dates on which notices shall be deemed to have been duly given shall be determined as follows:


(a) Notices given by personal delivery shall be deemed duly given on the date of signature of receipt by the person taking personal delivery; and


(b) Notices given in letter form shall be deemed duly given on the 10th day after the date mailed (as indicated by the postmark) by registered airmail, postage prepaid, or the 7th day after delivery to an internationally recognized courier service.




Section 16. Force Majeure.


16.1 When the obligations of a Party under this Agreement cannot be performed in full or in part according to the agreed terms as a direct result of an event that is unforeseeable and of which the occurrence and consequences cannot be prevented or avoided (an "Event of Force Majeure"), the Party that encounters such Event of Force Majeure (the "Hindered Party") shall not be deemed to be in breach of this Agreement if all of the following conditions are met:


(a) The Event of Force Majeure was the direct cause of the stoppage, impediment or delay encountered by the Hindered Party in performing its obligations under this Agreement;


(b) The Hindered Party used its commercially reasonable best efforts to perform its obligations under this Agreement and to reduce the losses to the other Party arising from the Event of Force Majeure; and


(c) At the time of the occurrence of the Event of Force Majeure, the Hindered Party immediately informed the other Party, providing written information and supporting documentation of such event within fifteen (15) days of its occurrence, including a statement of the reasons for the delay in implementing or partially implementing this Agreement.


16.2 Subject to Section 16.3, if an Event of Force Majeure shall occur, the time for performance of the Hindered Party's obligations shall be extended for a period corresponding to the period of the delay caused by the Event of Force Majeure.


16.3 If an Event of Force Majeure shall occur and its consequences continue for more than six months, the Parties shall decide whether to amend this Agreement in light of the impact of the event upon the implementation hereof.


16.4 An Event of Force Majeure shall not suspend any obligation of either Licensor or Licensee to make any payments due under this Agreement.


Section 17. Registration and Approvals.


17.1 Licensee shall, at its own expense, obtain any approvals and registrations, fulfill all other requirements and carry out all procedures related to this Agreement that are or may become required under any law or regulation now or hereafter existing in the United States, to enable the Parties to exercise, enforce and enjoy all of the rights and obligations contained in this Agreement, including any approvals and registrations required from U.S. or other such jurisdiction's examination and approval authority and/or the relevant U.S. or other such jurisdiction's economic and trade authority, and the necessary procedures relating to the payment and remittance of all amounts payable hereunder to Licensor. Licensor shall render reasonable assistance to Licensee in the required registration and approval procedures.


17.2 Licensor shall, at its own expense, obtain any approvals or authorizations that are or may become required by U.S. laws and regulations and competent authorities to enable the Parties to exercise, enforce and enjoy all of the rights and obligations contained in this Agreement, including any export licenses required to deliver or otherwise disclose Licensed Technology to Licensee. Licensee shall render reasonable assistance to Licensor in the required approval or authorization procedures.


17.3 Neither Party shall be entitled to exercise any rights or be bound to perform any obligations contained in this Agreement until receipt, upon request of a Party, from the non-requesting Party of evidence satisfactory to it of the granting of all approvals and/or registrations and the fulfillment of all other requirements referred to in Sections 17.1 and 17.2.




Section 18. Governing Law and Settlement of Disputes.


18.1 This Agreement and all disputes arising out of or related to this Agreement, or the performance, enforcement, breach or termination hereof, and any remedies relating thereto, shall be construed, governed, interpreted and applied in accordance with the laws of the State of Nevada, excluding conflict of laws principles that would apply the law of any other jurisdiction.


18.2 Initially, any dispute or claim arising out of or relating to this Agreement or the interpretation, breach, termination or validity hereof shall be resolved through good faith efforts in friendly consultation among the Parties. Such consultation shall begin immediately after one Party has delivered to the other Party a written request for such consultation.


18.3 If, within thirty (30) days following the date on which any such request is delivered, the dispute or claim cannot be resolved after consultation among the Parties, the same may be submitted to arbitration by any one of the Parties.


18.4 The arbitration shall be conducted in Las Vegas, Nevada in accordance with the rules of the American Arbitration Association ("AAA Rules") for the time being in force which rules are deemed to be incorporated by reference to this clause. However, if such Rules are in conflict with the provisions of this Section 18, including the provisions concerning the appointment of arbitrators, the provisions of this Section 18 shall prevail.


18.5 The arbitration tribunal shall consist of three (3) arbitrators. Licensor shall select one (1) arbitrator, and Licensee shall also select one (1) arbitrator, all in accordance with the AAA Rules. Within twenty (20) days after the appointment of the second such arbitrator, the two (2) appointed arbitrators shall select a third arbitrator to serve as chairman of the tribunal; provided, however, that in no event shall the presiding arbitrator be of the same nationality as Licensor or Licensee. If any arbitrator has not been appointed within the time limits specified herein the AAA shall make the appointment within ten (10) days of request therefrom by either Licensor or Licensee.


18.6 The language in which the arbitration shall be conducted will be English, and all writings, documents and evidentiary materials submitted by the Parties shall be submitted in English. The award of the arbitration tribunal shall be issued in writing in English


18.7 The award of the arbitration body shall be issued no later than sixty (60) days after the conclusion of the arbitration hearing or the final submission of evidence.


18.8 Notwithstanding anything contained in Section 18 to the contrary, each Party shall have the right to institute judicial proceedings in any court of competent jurisdiction against the other Party in order to enforce the instituting Party's Intellectual Property rights and other rights hereunder through specific performance, injunctions or similar equitable relief, or orders to preserve assets and evidence or other emergency relief.


18.9 During the period of any dispute and/or arbitration of such dispute, each Party may exercise all of its rights and shall perform all of its obligations hereunder in accordance with the terms of this Agreement, except for the sections which are the subject of the dispute.


18.10 The arbitrators may grant pre-award interest as part of any award. Amounts due under any arbitration award shall be paid as provided in the award, and interest on any unpaid amount shall accrue penalty interest calculated at a daily rate equal to the then-current interest rate published in the Wall Street Journal from the date on which such amount is due until the date on which such amount has been received by the payee.




18.11 Each Party irrevocably consents to the service of process, notices or other paper in connection with or in any way arising from the arbitration or the enforcement of any arbitral award, by use of any of the methods and to the addresses set forth for the giving of notices in Section 15. Nothing contained herein shall affect the right of any Party to serve such processes, notices or other papers in any other manner permitted by applicable law.


18.12 The award rendered in any arbitration commenced hereunder shall be final and binding upon the Parties and judgment thereon may be enforced in any court of competent jurisdiction. The award may be used as a basis for a writ of execution, judgment or other decree for execution and may be enforced in China or elsewhere in any court or other governing body having jurisdiction. The losing Party shall pay all legal fees and costs incurred by the other Party in the arbitration.


Section 19. Assignability.


19.1 This Agreement may not be assigned, subcontracted or transferred by either Party without the other Party's prior written consent, which shall not be unreasonably withheld, conditioned or delayed; provided however, that Licensor may assign this Agreement without consent in connection with a Change in Control, provided that (i) the assignee agrees in writing to be bound by the same obligations under this contract applicable to Licensor, and (ii) Licensor or the assignee provides written notice of the assignment to Licensee.


19.2 Notwithstanding Section 19.1, Licensee's consent to assignment shall be required if Licensor assigns this Agreement in connection with a Change in Control pursuant to which the divisions within Licensor that are responsible for the Licensed Technology would not be under the assignee's common ownership and control immediately after such Change in Control.


Section 20. Severability. If any provision of this Agreement cannot be implemented by reason of its being deemed to be illegal, in contravention of public policy or for any other similar reason, such provision shall be removed from the Agreement so that all other provisions of the Agreement will be in accordance with law, effective and enforceable. The Parties shall agree on a new provision to replace the removed provision that, to the extent allowed by law, to the greatest extent provides for the same economic and commercial intent as the original provision.


Section 21. Miscellaneous Provisions.


21.1 The singular shall include the plural and vice versa where required. Titles of Sections are for convenience only, and neither limit nor amplify the provisions of this Agreement. The word "including" and its variants shall mean "including without limitation" when used in this Agreement.


21.2 Failure of a Party to enforce one or more of the provisions of this Agreement, or to exercise any option or other rights hereunder, or to require at any time performance of any of the obligations hereof shall not be construed to be a waiver of such provisions by such Party or to, in any way, affect the validity of this Agreement or such Party's right to enforce each and every provision of this Agreement, or to preclude such Party from taking any other action at any time which it would legally be entitled to take.




22.3 The Appendices and Schedules to this Agreement are an integral part of this Agreement and have the same force as this Agreement. This Agreement and its Appendices and Schedules constitute the entire agreement among the Parties with respect to the subject matter of this Agreement and supersede all previous oral and written proposals, negotiations, term sheets, letters of intent, memoranda of understanding and other agreements and documents among the Parties regarding the subject matter hereof. If there is a conflict between this Agreement and its Appendices and Schedules, the terms and provisions of this Agreement (excluding the Appendices and Schedules) shall govern.


21.4 Amendments to this Agreement and its Appendices and Schedules must be made by a written agreement signed by each Party in English text.


21.5 This Agreement may be executed in one or more counterparts, each of which shall be an original, but all of which when taken together shall constitute one and the same instrument.


21.6 At the time of signature of this Agreement, each Party will provide the other with documentation establishing the power of the signatories hereto to represent and bind the Parties.


21.7 Licensee shall use the " " registered trademark, or whatever is agreed upon by the Parties, in connection with all advertising, promotion and sale of Products, including in related written materials and other materials. All uses of the " " mark by Licensee shall be subject to Licensor's prior review and written approval.


21.8 Licensee shall not use, export or re-export or allow the use, export or re-export of the Licensed Technology or any components thereof except in compliance with all applicable, relevant laws and regulations.


[Signature Page Follows]




IN WITNESS WHEREOF, the Parties hereto, intending to be legally bound hereby, have executed this Technology License Agreement.



Authentic Heroes, Inc.










Name: Chris Giordano



Title: CEO







Paul Serbiak














"Licensed Technology" shall mean a license to use the Patent Rights.


"Patent Rights" shall mean the United States Letters Patent No. US 10,781,539 B2 entitled “AUTHENTICATABLE ARTICLES, FABRIC AND METHOD OF MANUFACTURE” and of the invention therein described.








Licensor shall pay to Licensee One (1%) of the Revenue generated from the sale of the Exclusive Products amounting to at least $3,000,000 in Revenue at year three (3) of this Agreement.


Licensor shall pay to Licensee One (1%) of the Revenue generated from the sale of the Exclusive Products amounting to at least $10,000,000 in Revenue at year five (5) of this Agreement.


If Licensee fails to achieve at least $3,000,000 in Revenue at year three (3) or $10,000,000 in Revenue at year five (5) from this date of this Agreement, then the exclusive license shall be a non-exclusive license.