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COURSEWARE AGREEMENT
JANUARY 6, 2003
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COURSEWARE AGREEMENT
THIS COURSEWARE AGREEMENT is dated the 6th day of January, 2003, by and
between Think Quick Solutions, Inc., a company organized and subsisting under the
laws of the State of Michigan (hereinafter called the “Company”), and Brad St. Pierre,
of the Town of Grande Pointe, in the Province of Ontario, operating under the business
name Virtual Abstract (the “Consultant”).
RECITALS
ARTICLE ONE
DEFINITIONS AND INTERPRETATION
o Definitions.
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(3) “Inventions” means without limitation trade secrets, inventions, mask works,
ideas, processes, formulas, source and object codes, data, programs, other works
of authorship, know-how, improvements, discoveries, developments, designs and
techniques;
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(6) “eLearning assets and eLearning business” means the Company assets and
business that may be reasonably allocated to its eLearning activity.
The recitals are true in substance and in fact and are expressly incorporated into and form
an integral basis and part of this Agreement.
Section 1.4 Schedules and Appendices. The following schedules and appendices
which are attached to this Agreement are incorporated into this Agreement by reference
and constitute an integral part hereof:
Schedule “A”.........................CoursewareFee and Terms
Schedule “B”..........................Courseware Specifications and Performance Estimates
Schedule “C”..........................Acceptance Testing“B” Acceptance Testing
Schedule “C”..........................Consultant Programs
Schedule “D”.........................Courseware Fee and Terms
Schedule “D”“E”...................Software Documentation
Schedule “E”“F”....................Training Schedule and Material Rates
Schedule “F”“G”....................Included Expenses
Schedule “G”.........................Consultant Programs
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ARTICLE 2
SCOPE OF SERVICES
Section 2.3 Limited Authority. Consultant acknowledges and agrees that this
Agreement in no way expresses or implies that Consultant shall have authority to bind the
Company in any manner. Consultant further acknowledges and agrees that no verbal or
written waiver to this Section 2.3, granting Consultant authority to bind the Company in
the future shall be deemed a continuing waiver of this Section 2.3 unless specifically
stated therein, and each such waiver shall operate only as to the specific term, condition
or instance were authority is granted and shall not constitute authority of such term,
condition or instance for the future or as to any act other than that specifically authorized,
whether of the same or a similar nature or otherwise.
ARTICLE 3
THE COURSEWARE FEE
Section 3.1 Courseware Fee. The Company will pay Consultant for the Courseware
a Fee equal to 15% of the Company’s Adjusted Operating Profit Before Income Tax that
is generated directly from the following:
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Revenue from items i. and ii. as described in this section are hereinafter referred to as the
“Courseware Revenue”.
The Courseware Fee, payment terms and other related details are more specifically
identified in Schedule “A”“D” which is attached to and made a part of this Agreement.
Section 3.2 Other Fees. The Company and Consultant hereby acknowledge that
separate agreements are being executed regarding Commission for sales of the
Courseware and Course Content, and Development of Coursecourse content, and
development of course content.
Section 3.3 Payment of Courseware Fees. The Courseware Fees shall be paid by
the Company to the Consultant on the fifteenth (15th) day of each calendar month, for all
sales which occurred in the preceding calendar months.
Section 3.43.5 Audit of Books and Records. During the duration of the Agreement
and for six (6) months thereafter, Company shall keep proper records and books of
accounts relating to the computation of the Courseware Fees applicable to this
Agreement. No more frequently than once every twelve (12) months, Consultant’s
designated auditing professional may inspect such records to verify Company’s Reports.
Any such inspection will be conducted in a manner designed to minimize interference
with Company’s regular business activities. The auditing professional shall enter into a
confidentiality agreement in the form specified by Company, which form shall not
prevent the auditor from disclosing the methodology and results of its audit to Consultant.
Company shall immediately make any overdue payments disclosed by the audit plus
interest at the rate of twenty-four (24%) per annum, from the date that the
ConsultingCourseware Fees should have been paid to the Consultant, until the date that
the ConsultingCourseware Fees are actually paid to the Consultant. Such inspection
shall be at Consultant’s expense; however, if the audit reveals overdue payments in
excess of twenty percent (20%)fifteen percent (15%) of the payments owed to date,
Company shall immediately pay the cost of such audit, and Consultant shall be entitled to
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undertake an additional audit of Company’s relevant books and records within the same
twelve (12) month period.
ARTICLE 4
INDEPENDENT CONTRACTOR
ARTICLE 5
WARRANTY AND LIMITATION OF LIABILITY
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ARTICLE 6
CONFIDENTIALITY
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(b) all equipment and tangible personal property belonging to the Company in the
Consultant’s possession.
ARTICLE 7
OWNERSHIP
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ARTICLE 8
TERMINATION
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· Any material acts or events which inhibit Consultant from fully performing his
responsibilities to the Company in good faith, such as (i) a felony criminal
conviction; (ii) any other criminal conviction involving Consultant’s lack of
honesty or moral turpitude; (iii) drug or alcohol abuse; or (iv) material acts of
dishonesty, gross carelessness or gross misconduct;
· the Consultant shall file any petition or action for relief under any bankruptcy,
reorganization, insolvency or moratorium law or any other law for the relief of, or
relating to, debtors; or
· an involuntary petition or action shall be filed against the Consultant under any
bankruptcy, reorganization, insolvency or moratorium law or any other similar
law or laws, or a custodian, receiver, trustee, assignee for the benefit of creditors
or other similar official shall be appointed to take possession, custody or control
of the properties of Consultant.
The Termination Date for a termination of this Agreement pursuant to this Section 8.4
shall be the date specified by the Company in a written notice. Upon any termination of
this Agreement pursuant to this Section 8.4, the Consultant shall be entitled to the
compensation specified in Section 8.9 hereof.
Section 8.5 This Agreement shall automatically terminate on the last day of the
month in which the Consultant dies or becomes permanently incapacitated. “Permanent
Incapacity” as used herein shall mean mental or physical incapacity, or both, reasonably
determined and certified by the Consultant’s regularly attending physician or a physician
duly licensed in the Province of Ontario and selected by the mutual agreement of the
Company and the Consultant (the “Physician”), rendering Consultant unable to perform
substantially all of his duties hereunder and which appears reasonably certain to continue
for at least three consecutive months without substantial improvement. Within ten (10)
days of the Physician making a determination as to the health of the Consultant, the
Physician shall notify both the Consultant and the Company in writing as to whether or
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not, in the Physician’s reasonable opinion, the Consultant suffers from Permanent
Incapacity (the “Health Notice”). In the event that the Physician determines that the
Consultant suffers from a Permanent Incapacity, the Consultant shall be deemed to have
become “permanently incapacitated” on the date the Company provides the Consultant
with a copy of the Health Notice, and notifies the Consultant in writing that the Company
is exercising its option to terminate this Agreement pursuant to Section 8.5 hereof (the
“Termination Notice”). The Termination Date for a termination of this Agreement
pursuant to this Section 8.5 shall be the date that the Consultant receives or is deemed to
have received the Termination Notice from the Company. Upon any termination of this
Agreement pursuant to this Section 8.5, the Consultant shall be entitled to the
compensation specified in Section 8.9 hereof.
Section 8.6 Disability. The Company may terminate this Agreement upon the
Disability (as defined below) of the Consultant. For the purposes of this Agreement,
“Disability” shall mean the absence of the Consultant from the Consultant’s duties with
the Company for a period of 60 days whether or not consecutive in any 12-month period
as a result of incapacity due to mental or physical illness. The Termination Date for a
termination of this Agreement pursuant to this Section 8.6 shall be the date specified by
the Company in a written notice. Upon any termination of this Agreement pursuant to
this Section 8.6, the Consultant shall be entitled to the compensation specified in Section
8.9 hereof.
Section 8.7 Death. This Agreement shall terminate automatically upon the death
of the Consultant, without any requirement of notice by the Company to the Consultant’s
estate. The date of the Consultant’s death shall be the Termination Date for a termination
of this Agreement pursuant to this Section 8.7. Upon any termination of this Agreement
pursuant to this Section 8.7, the Consultant shall be entitled to the compensation specified
in Section 8.9 hereof.
Section 8.8 Termination By Company without Cause. This Agreement may be
terminated by the Company without cause, upon thirty (30) days written notice to the
Consultant, for any reason, or no reason at all. In the event this Agreement is terminated
by the Company pursuant to this Section 8.8, the Consultant shall be entitled and the
Company shall pay the Consultant damages equal to (i) the ConsultingCourseware Fees
payable to the Consultant to the date of termination; and (ii) unreimbursed expenses
accrued to the date of termination. Such payment shall be treated as liquidated damages
and not as a penalty. The termination of this Agreement and the payment of damages to
the Consultant shall be in addition to any and all other legal rights that the Consultant
may have against the Company, and all remedies shall be cumulative. Upon any
termination of this Agreement pursuant to this Section 8.8, the Consultant shall be
entitled to the compensation specified in Section 8.9 hereof.
Section 8.9 Damages on Termination.
In the event this Agreement is terminated pursuant to sections 8.1, 8.2, 8.3, 8.4, 8.5, 8.6,
8.7 and 8.8 hereof, the Consultant shall be entitled and the Company shall pay the
Consultant damages equal to (i) any earned but unpaid ConsultingCourseware Fees
accrued to date of termination and (ii) unreimbursed expenses accrued to the date of
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termination. After any such termination, the Company shall not be obligated to
compensate Consultant, his or her estate or representatives except for the foregoing
compensation then due and owing.
ARTICLE 9
MISCELLANEOUS PROVISIONS
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Notice of a change in address of one of the parties shall be given in writing to the other
party as provided above, but shall be effective only upon actual receipt.
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IN WITNESS WHEREOF the Company has duly executed this Agreement by its
proper officers, duly authorized on its behalf, and the Consultant has duly signed this
Agreement.
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)
_________________________________ ) ________________________________________
Witness as to the signature of ) BRAD ST. PIERRE
Brad St. Pierre )
)
)
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SCHEDULE “A”
1. The Courseware Fee shall be equal to 15% of the Adjusted Operating Profit
Before Income Taxes;
2. Adjusted Operating Profit Before Income Taxes shall mean the following:
iii. any extraordinary gains or losses (including, but not limited to, gains or losses
on disposition of assets);
iv. any refund or deficiency of federal and state income taxes paid in a prior year;
and
v. any provision for federal or state income taxes made in prior years which is
subsequently determined to be unnecessary.
B. Draws shall be refundable to TQSi if they exceed the cumulative Adjusted Earnings
Before Income Taxes as of March 31, 2003.
During the course of this agreement, 3D Abstract may invoice for draws no more
frequently than monthly during the term of the agreement, regardless of the actual
completion dates of the project milestones listed hereunder. The Draws shall be
payable at the sole discretion of TQSi.
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C. Once TQSi has begun to generate revenue from the courseware, draws will no longer
be calculated and the Consulting Fee, as defined in Section 3 of this agreement, will
be paid in accordance with normal payment terms as offered to TQSi’s other
suppliers.
SCHEDULE “B”
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5) Administration Manager
a) Ability to view the following statistics of students.
i) Time spent online.
ii) Courses and exercises completed
iii) Student Scores.
6) Student Manager
a) Ability to view the student statistics.
i) Time spent online.
ii) Time spent for each exercises.
iii) Score of courses completed.
7) Courseware Editor (ILA editor)
a) System to modify courseware elements listed as follows
i) Lecture Content
ii) Interactive Content
iii) Quiz Content
iv) Course Descriptions
(1) Exercise descriptions
(2) Lesson descriptions
(3) Pricing descriptions
v) Course Pricing
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SCHEDULE “C”“B”
Acceptance Testing
Acceptance testing will be based on written approval of the consultant and the company,
based on the criteria below.
Software components, excluding courseware must load in less then 1 minute
based on a 56k connection rate.
Logically tested software components.
The following operating systems, based on the browser and Flash5 plug-in
availability.
o Windows 95/98/ME/NT/2000/XP
Netscape
Internet Explorer
o Sun Solaris (Sparc version only)
Netscape
o HP-UX
Netscape
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SCHEDULE “C”
Consultant Programs
The component list below lists the software developed by the consultant prior to
engagement of the Company.
Major Components
A. Website Engine template
The website engine consists of many components, ex) controls navigation, loading transitions for
external flash modules.
BELOW IS THE MAJOR COMPONENT LIST FOR REFERENCE
1. Internal functions/scripts and movie clips enabling dynamic website
creation
2. Content Management system for C. Content connection template
3. Transitional effects and sliding navigation system for dynamic content
4. Navigation tracking controls (tracking analytics)
5. Speed Detection for different internet connection speeds, dynamically
changing content based on low and high speeds
6. Bandwidth Scoping, for speed detection.
Minor Components
A. Animations
B. Graphics
C. Buttons
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SCHEDULE “D”
1. The Courseware Fee shall be equal to 15% of the Adjusted Operating Profit
Before Income Taxes;
2. Adjusted Operating Profit Before Income Taxes shall mean the following:
viii. any extraordinary gains or losses (including, but not limited to, gains or losses
on disposition of assets);
ix. any refund or deficiency of federal and state income taxes paid in a prior year;
and
x. any provision for federal or state income taxes made in prior years which is
subsequently determined to be unnecessary.
B. Draws shall be refundable to TQSi if they exceed the cumulative Adjusted Earnings
Before Income Taxes as of March 31, 2003.
During the course of this agreement, 3D Abstract may invoice for draws no more
frequently than monthly during the term of the agreement, regardless of the actual
completion dates of the project milestones listed hereunder. The Draws shall be
payable at the sole discretion of TQSi.
C. Once TQSi has begun to generate revenue from the courseware, draws will no longer
be calculated and the Consulting Fee, as defined in Section 3 of this agreement, will
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SCHEDULE “E”
Software Documentation
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SCHEDULE “E”“F”
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SCHEDULE “F”“G”
Included Expenses
The following list of Included Expenses shall be paid solely by Consultant and are
included in his ConsultingCourseware Fee:
(a) any and all costs associated with the employment or other engagement of
competent personnel as may be required by the Consultant to properly perform the
Services and the Consultant’s duties hereunder.
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SCHEDULE “G”
Consultant Programs
The component list below lists the software developed by the consultant prior to
engagement of the Company.
Major Components
D. Website Engine template
The website engine consists of many components, ex) controls navigation, loading transitions for
external flash modules.
BELOW IS THE MAJOR COMPONENT LIST FOR REFERENCE
1. Internal functions/scripts and movie clips enabling dynamic website
creation
2. Content Management system for C. Content connection template
3. Transitional effects and sliding navigation system for dynamic content
4. Navigation tracking controls (tracking analytics)
5. Speed Detection for different internet connection speeds, dynamically
changing content based on low and high speeds
6. Bandwidth Scoping, for speed detection.
Minor Components
4. Animations
E. Graphics
F. Buttons
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