Confidential

Mutual Non-Disclosure Agreement

Between Monmac Labs and Ace Industrial Supply

This Mutual Non-Disclosure Agreement (the “Agreement”) is entered into as of the date of the last signature below (the “Effective Date”) by and between:

Monmac Labs, a brand of Monmac LLC, a California limited liability company (“Monmac”), and

Ace Industrial Supply, a organized under the laws of (“Ace”).

Monmac and Ace are each a “Party” and together the “Parties.”

1. Purpose and Permitted Purpose

The Parties wish to exchange Confidential Information to evaluate, scope, design, perform, and potentially implement and support a Discovery & Enterprise Solution Blueprint and related enterprise calling-platform engagement, including:

These activities are collectively the “Permitted Purpose.”

Nothing in this Agreement obligates either Party to disclose any information, purchase or provide services, enter into a statement of work, or proceed with any transaction.

2. Confidential Information

2.1 Definition

“Confidential Information” means any non-public technical, business, financial, legal, operational, security, customer, employee, strategic, or proprietary information disclosed or made available by one Party (the “Disclosing Party”) to the other Party (the “Receiving Party”) in connection with the Permitted Purpose.

Confidential Information may be disclosed orally, visually, electronically, in writing, through demonstrations, screen sharing, repository or system access, credentials, documents, recordings, data exports, or any other means. Information is Confidential Information whether or not marked confidential if its nature or the circumstances of disclosure would cause a reasonable person to understand that it is confidential.

2.2 Ace Confidential Information

Ace Confidential Information includes, without limitation:

2.3 Monmac Confidential Information

Monmac Confidential Information includes, without limitation:

2.4 Blueprint and Proposal Materials

Non-public proposal materials, Blueprint work papers, draft findings, architecture diagrams, implementation options, cost models, ROI-calculator inputs and outputs, and other engagement materials are Confidential Information of the Party that owns or supplied the underlying information, subject to the ownership and retention terms of any later written agreement.

3. Exclusions

Confidential Information does not include information that the Receiving Party can demonstrate through contemporaneous written records:

  1. Is or becomes publicly available through no breach of this Agreement;
  2. Was lawfully known to the Receiving Party without restriction before disclosure by the Disclosing Party;
  3. Is lawfully received from a third party without breach of a confidentiality obligation;
  4. Is independently developed without use of or reference to the Disclosing Party’s Confidential Information; or
  5. Is approved for release in writing by the Disclosing Party.

A combination of information is not excluded merely because individual elements are publicly available unless the combination itself and its operating principles are publicly available.

4. Confidentiality and Non-Use Obligations

The Receiving Party shall:

  1. Use Confidential Information solely for the Permitted Purpose;
  2. Protect Confidential Information with at least the same degree of care it uses for its own information of similar sensitivity, and in no event less than reasonable care;
  3. Limit access to persons who have a legitimate need to know for the Permitted Purpose;
  4. Not disclose, publish, sell, license, transfer, or otherwise make Confidential Information available except as expressly permitted by this Agreement;
  5. Not copy, reproduce, download, export, or retain Confidential Information except as reasonably necessary for the Permitted Purpose;
  6. Maintain reasonable administrative, technical, and physical safeguards appropriate to the sensitivity of the information;
  7. Promptly notify the Disclosing Party after confirming any unauthorized access, use, loss, or disclosure; and
  8. Reasonably cooperate in containing, investigating, and remediating any unauthorized access, use, or disclosure caused by the Receiving Party or its Representatives.

The Receiving Party is responsible for breaches of this Agreement by its Representatives to the same extent as if the Receiving Party committed the breach itself.

5. Permitted Representatives and Service Providers

The Receiving Party may disclose Confidential Information to its officers, employees, contractors, technical specialists, attorneys, accountants, insurers, financing sources, and professional advisers (collectively, “Representatives”) who:

The Receiving Party may also use cloud, hosting, telecommunications, security, software-development, and enterprise AI service providers reasonably necessary for the Permitted Purpose, provided that the Receiving Party uses commercially reasonable care in selecting and configuring those providers and remains responsible for compliance with this Agreement.

6. AI Systems and External Tools

Neither Party shall submit the other Party’s Confidential Information to a public or consumer AI service for public model training, unrestricted retention, or use outside the Permitted Purpose.

Approved enterprise AI, software-development, analytics, and automation services may be used for the Permitted Purpose only when reasonably appropriate safeguards are in place concerning:

Credentials, regulated data, raw customer records, call recordings, source code, and security-sensitive information shall not be submitted to an external AI service unless the Disclosing Party has approved the use or the service is expressly approved in a later security or data-processing agreement.

7. Legally Required Disclosure

The Receiving Party may disclose Confidential Information when required by applicable law, regulation, subpoena, court order, or governmental authority, provided that, to the extent legally permitted, the Receiving Party:

  1. Gives prompt written notice to the Disclosing Party;
  2. Reasonably cooperates with efforts to obtain confidential or protective treatment; and
  3. Discloses only the portion legally required.

8. Limited Blueprint Portability

If Ace purchases and accepts a Discovery & Enterprise Solution Blueprint under a separate written agreement, Ace may disclose the accepted Blueprint deliverables to an authorized replacement provider solely to evaluate, implement, maintain, or support the Ace project, provided that:

  1. The replacement provider is bound by written confidentiality and restricted-use obligations;
  2. The disclosure is limited to materials Ace is expressly entitled to retain and use;
  3. Monmac source code, trade secrets, internal work papers, reusable frameworks, non-delivered tools, and other Monmac Background IP are not disclosed except as expressly included or licensed in the accepted deliverables; and
  4. The replacement provider may not use Monmac Confidential Information to create or commercialize a competing product or service outside the Ace project.

This Section does not grant Ace any ownership or license beyond the rights expressly provided in a later written agreement.

9. Return, Destruction, and Retention

Upon the Disclosing Party’s written request, termination of discussions, or completion of the Permitted Purpose, the Receiving Party shall within thirty (30) days return or destroy the Disclosing Party’s Confidential Information and, upon request, certify completion in writing.

The Receiving Party may retain:

  1. Executed agreements and ordinary-course records of the business relationship;
  2. One archival copy maintained solely for legal, insurance, audit, or compliance purposes;
  3. Information contained in automated backups that cannot reasonably be deleted through ordinary operations, provided it is not restored or accessed except for disaster recovery or legal necessity; and
  4. Accepted Blueprint deliverables or other materials the Receiving Party is expressly entitled to retain under a separate written agreement.

All retained Confidential Information remains subject to this Agreement.

10. Intellectual Property and Background IP

10.1 Background IP

“Background IP” means all intellectual property, software, code, frameworks, libraries, components, systems, products, templates, methods, know-how, trade secrets, and other materials that:

Each Party retains all right, title, and interest in its Background IP.

10.2 No Implied License or Transfer

Except for the limited use rights necessary for the Permitted Purpose, no disclosure under this Agreement grants any license, ownership interest, assignment, or other right in Confidential Information or Background IP.

10.3 Future Project IP

Ownership, licensing, delivery, source access, modification rights, embedded-component rights, and other intellectual-property terms for any Blueprint or implementation work shall be governed only by a separately executed agreement, statement of work, or IP schedule.

No project ownership rights are created by this Agreement.

10.4 No Reverse Engineering

Except as expressly authorized in writing for the Permitted Purpose, neither Party shall reverse engineer, decompile, disassemble, derive source code from, benchmark for competitive use, or create derivative works from the other Party’s software, systems, prototypes, or technical materials.

11. General Skills and Experience

Nothing in this Agreement prevents either Party or its personnel from using general professional skills, experience, ideas, and know-how that do not disclose, incorporate, or depend upon the other Party’s Confidential Information.

This Section does not permit the use or disclosure of:

12. Term and Survival

This Agreement applies to Confidential Information disclosed during the two (2) years following the Effective Date.

The confidentiality and non-use obligations survive for three (3) years after each disclosure, except that obligations concerning the following survive for as long as the information remains non-public, confidential, or otherwise legally protectable:

13. No Warranty; No Obligation to Proceed

All Confidential Information is provided “as is.” Neither Party makes any representation or warranty regarding its accuracy, completeness, merchantability, fitness for a particular purpose, or non-infringement.

Neither Party is obligated to proceed with any transaction, engagement, or business relationship, and either Party may discontinue discussions at any time, subject to the continuing obligations of this Agreement.

14. Limitation of Liability

Except for:

neither Party shall be liable under this Agreement for consequential, incidental, indirect, special, exemplary, or punitive damages, including lost profits or lost business opportunity.

Nothing in this Agreement limits liability to the extent such limitation is prohibited by applicable law.

15. Equitable Relief

The Parties acknowledge that unauthorized disclosure or use of Confidential Information may cause irreparable harm for which monetary damages may be inadequate.

The affected Party may seek temporary, preliminary, or permanent injunctive relief and other equitable remedies from a court of competent jurisdiction, in addition to any other available remedies, without waiving the dispute-resolution requirements below.

16. Dispute Resolution

16.1 Executive Negotiation

Before initiating arbitration, the Parties shall attempt in good faith to resolve the dispute through negotiation between senior representatives. Either Party may initiate negotiation by written notice describing the dispute. The representatives shall meet or confer within ten (10) business days and attempt resolution for at least thirty (30) days.

16.2 Mediation

If the dispute remains unresolved, either Party may request non-binding mediation administered by JAMS or another mutually agreed mediator. The Parties shall share mediator fees equally.

16.3 Arbitration

If the dispute remains unresolved forty-five (45) days after a written mediation request, it shall be resolved by binding arbitration before one arbitrator under the JAMS Comprehensive Arbitration Rules and Procedures.

The arbitration shall take place in Alameda County, California, unless the Parties agree to remote proceedings or another location. Judgment on the award may be entered in any court with jurisdiction.

16.4 Emergency Relief

Either Party may seek temporary or emergency injunctive relief from a state or federal court located in Alameda County, California, to prevent unauthorized disclosure, system access, misuse, misappropriation, or other irreparable harm.

17. General Provisions

17.1 Governing Law

This Agreement is governed by the laws of the State of California, without regard to conflict-of-laws rules.

17.2 Notices

Notices under this Agreement must be in writing and delivered by personal delivery, nationally recognized overnight courier, certified mail, or email with confirmation of receipt to the contact information stated below or later designated in writing.

17.3 Assignment

Neither Party may assign this Agreement without the other Party’s prior written consent, except in connection with a merger, reorganization, acquisition, or sale of substantially all relevant assets, provided the successor agrees in writing to be bound by this Agreement.

17.4 Severability

If any provision is held unenforceable, it shall be modified to the minimum extent necessary to make it enforceable, and the remaining provisions shall remain in effect.

17.5 Waiver

A waiver is effective only if in writing and applies only to the specific instance stated. Failure to enforce a provision is not a waiver of future enforcement.

17.6 Entire Agreement; Amendments

This Agreement is the entire agreement concerning its subject matter and supersedes prior oral and written confidentiality discussions concerning the Permitted Purpose.

Any amendment or waiver must be in writing and signed by authorized representatives of both Parties.

17.7 Order of Precedence

If this Agreement conflicts with a later executed agreement concerning ownership, licensing, data processing, security, deliverable retention, or project performance, the later agreement controls for that specific subject.

17.8 Counterparts and Electronic Signatures

This Agreement may be executed in counterparts. Electronic signatures, scanned signatures, and signatures through electronic-signature platforms are binding and have the same legal effect as original signatures.

Signatures

By signing below, each Party agrees to be bound by this Agreement.

MONMAC LABS
Quan Zou
Name
CEO
Title
Email
Signature
Date
ACE INDUSTRIAL SUPPLY
Legal entity name
Name
Title
Email
Signature
Date