SETTLEMENT AGREEMENT THIS SETTLEMENT AGREEMENT is made and effective upon signature of both parties herein by and between the Boykin Spaniel Society (hereinafter “BSS”), an South Carolina corporation and THE BOYKIN SPANIEL CLUB AND BREEDERS ASSOCIATION OF AMERICA, INC. (“BSCBAA”) a South Carolina corporation. WHEREAS, BSS alleges that it has applied for federal registration of and claims other proprietary rights in THE BOYKIN SPANIEL SOCIETY (federal trademark application serial no. 76/596,937 and 76/596,932); BOYKIN SPANIEL FOUNDATION (federal trademark application serial no. 76/596,932) and BOYKIN SPANIEL REGISTRY (federal trademark application serial no. 76/596,774) (collectively the Marks); WHEREAS, BSS is the owner of U.S. Copyright Registration TXu6-097-682; WHEREAS, a dispute between the parties exists concerning trademark and service mark infringement concerning the following two marks: (from www.boykinspaniel.org website) (from www.boykinspanielclub.org newsletter) copyright infringement concerning the 1993 breed standards of the BSS, ownership and acknowledgement of the ownership and creation of all BSS breed standards and related claims as relating to Civil Action No.: 3:04-2497-22 pending the District of South Carolina (“pending action”); WHEREAS, the parties wish to resolve the pending action in an amicable fashion and to their mutual satisfaction; COLUMBIA 825155v1 WHEREAS neither party admits to any liability; and, NOW THEREFORE, the parties agree as follows: 1. Agreements and Representations: 1.1. BSCBAA disputes the validity of the copyright of BSS in the 1993 Breed Standard and BSS’s rights in the Marks and does not by entering into this agreement waive any defenses it may have to any assertion of copyright or trademark or services marks that BSS now or hereafter claims. Notwithstanding the foregoing, BSCBAA agrees not to copy, display (including posting on websites and distribution through paper copies) the 1993 Breed Standard, or prepare derivative works, or otherwise infringe that which is protected by the copyright in the 1993 Breed Standard. The parties acknowledge the existence of the Fair Use doctrine and agree that BSCBAA may create Breed Standards for the Boykin Spaniel and use such standards so long as such creation does not infringe the rights of the BSS. 1.2. BSCBAA will not hold itself out as the owner, creator, or otherwise as the originator of any breed standard created by BSS, including the 1976, 1986 and the 1993 Breed Standard, it being acknowledged and understood that BSS acknowledges that the 1976 and 1986 Breed Standards are in the public domain and BSS claims no copyright in those standards. BSCBAA does not and will not in the future represent that it controls, maintains, edits, or otherwise has any ownership or other affiliation with the 1993 Breed Standard. BSCBAA has not, does not and will not in the future hold itself out as affiliated with, associated with, or otherwise related to the BSS and BSS has not, COLUMBIA 825155v1 does not and will not in the future hold itself out as affiliated with, associated with, or otherwise related to BSCBAA. 1.3. When using its name in marketing, advertising, publications, websites, or other such uses, BSCBAA agrees to display its entire name. BSCBAA also agrees to use its best efforts to display its full name in print and font of the same type and of equal size where possible, and in any event, will not display any portion of its name as the dominant mark and will not display any portion of its name in size less than 60% of the remainder of its name. The parties further agree to cooperate in avoiding any confusion that may arise as to the relationship of the organizations by clarifying to any person or organization that inquires of the distinction between the organizations. 1.4. BSCBAA agrees not to use any mark, name, phrase, slogan or other source indicator that is confusingly similar to or likely to cause confusion in the public with the Marks of the BSS and the BSS agrees not to use any mark, name, phrase, slogan or other source indicator that is confusingly similar to or likely to cause confusion in the public with the name or marks of Boykin Spaniel Club and Breeders Association of America. 2. The parties agree that BCSBAA may continue to use the domain name boykinspanielclub.org. 3. No Admission Of Liability. Nothing in this Agreement, or in its execution, shall be construed as any admission of liability on the part of either party; COLUMBIA 825155v1 4. Dismissal. The parties agree to take the necessary steps to dismiss any and all claims and actions, regardless of the forum or jurisdiction in which they have been asserted, with prejudice and terminate the pending actions with prejudice. 5. Jurisdiction and Enforcement. The parties agree that the United States District Court for the District of South Carolina, Columbia Division shall retain jurisdiction of this matter solely for purposes of enforcement of this Settlement Agreement. 6. Mutual Releases. 6.1. As to BSS. BSS shall be deemed to have executed a release in favor of BSCBAA precluding any litigation by or between the parties to this Agreement for conduct that occurred prior to the date hereof arising out of or relating to the disputed issues as described herein and/or in the pending actions. BSS hereby remises, releases, acquits, satisfies, and forever discharges BSCBAA hereto, of and from any and all manner of action and actions, cause and causes of action, suits, debts, dues, sums of money, accounts, reckonings, bonds, bills, specialties, covenants, contracts, controversies, agreements, promises, variances, trespasses, damages, judgments, executions, claims and demands whatsoever, in law or in equity, which BSS ever had, now has, or which any personal representative, successor, heir or assign of BSS, hereafter can, shall, or may have, against BSCBAA for, upon, or by reason of any matter, cause, or thing whatsoever, from the beginning of the world to the day of these presents, except as specifically set forth in this Agreement including remedies provided to the contrary. BSS also releases any and all members of BSCBAA from any claims of copyright infringement for any display of the 1993 Standards prior to the execution of COLUMBIA 825155v1 this Agreement; provided, BSCBAA advises its members in its Newsletter and/or by other actual notice that they should not display the 1993 Standard without the prior written approval of BSS. 6.2. As to BSCBAA. BSCBAA shall be deemed to have executed a release in favor of BSS precluding any litigation by or between the parties to this Agreement for conduct that occurred prior to the date hereof arising out of or relating to the disputed issues as descried herein and/or in the pending actions. BSCBAA hereby remises, releases, acquits, satisfies, and forever discharges BSS hereto, of and from any and all manner of action and actions, cause and causes of action, suits, debts, dues, sums of money, accounts, reckonings, bonds, bills, specialties, covenants, contracts, controversies, agreements, promises, variances, trespasses, damages, judgments, executions, claims and demands whatsoever, in law or in equity, which BSCBAA ever had, now has, or which any personal representative, successor, heir or assign of BSCBAA, hereafter can, shall, or may have, against BSS for, upon, or by reason of any matter, cause, or thing whatsoever, from the beginning of the world to the day of these presents, except as specifically set forth in this Agreement including remedies provided to the contrary. 7. Attorney's Fees. All parties to this Agreement shall bear their own costs and attorney's fees incurred in the pending actions and their settlement. In the event that a party institutes any action to enforce this Agreement, the prevailing party shall be entitled to recover its reasonable attorney’s fees and costs from the non-prevailing party. COLUMBIA 825155v1 8. Integration / No Oral Modification. This Agreement contains the entire understanding between the parties. No modification, renewal, extension or waiver of this Agreement or any of its provisions shall be binding unless in writing and signed by both parties or authorized agents of both parties. 9. Governing Law. This Agreement is made and entered into in the State of South Carolina, and shall be interpreted and construed, and the legal relations created herein shall be determined, in accordance with the laws of the State of South Carolina, without reference to conflicts of laws provisions. 10. Severability. All parties hereto expressly agree that it is not the intention of the parties to violate any public policy, statutory or common law, and if any sentence, paragraph, clause, or combination of the same, is in violation of any state or federal law, such sentences, paragraphs, clauses, or combinations of the same, shall be inoperative for the remainder of this Agreement, and the Agreement shall remain binding upon the parties hereto, and it is the intention of all parties to make this Agreement binding to the extent that it may lawfully be done under the existing state and federal laws. 11. Representation. The parties acknowledge that they have been represented by counsel and have had a full opportunity to review and to have their respective counsels review this agreement prior to its execution. 12. Future Cooperation. All parties hereto agree to cooperate with each other in furtherance of the purposes, terms and provisions of this Agreement, and to enter into all such further agreements, execute documents, perform lawful acts, furnish truthful testimony and the like, in furtherance of these goals. COLUMBIA 825155v1 13. Counterparts. This Agreement may be executed in counterparts and each such counterpart shall be deemed to be a duplicate original, as if signed by all parties in each others presence. All parties shall be deemed to have ratified the Agreement when counterparts have been executed by all. 14. Headings. Section headings contained in this Agreement are inserted for the convenience of reference only, shall not be deemed to be a part of this Agreement for any purpose, and shall not, in any way, define or affect the meaning, construction, or scope of any of the provisions hereof. 15. Successors. This Agreement shall inure for the benefit of any successor entities, and the obligations of the parties herein shall survive any sale of business, merger or other change in the parties' corporate identities. The terms and conditions shall also be binding upon officers, directors, and shareholders of each of the parties hereto, and any corporations with which they are affiliates, directly or indirectly, for similar business purposes to those contemplated in this Agreement. IN WITNESS WHEREOF, the parties execute this agreement as follows: BSS BSCBAA ____________________________________ __________________________________ By: ________________________________ By: _____________________________ Date: ______________________________ Date: ___________________________ COLUMBIA 825155v1