Agreement

 

                                                                    Exhibit 10.9

 

 

                                                            [LOGO OF STATS INC.]

 

October 7, 2002

 

VIA E-mail: clive@silverstarholdings.com

 

Clive Kabatznik

Silverstar Holdings

dba Fantasy Sports Enterprises

6100 Glades Road

Suite 305

Boca Raton, FL  33434

Tel: 561-479-0040

Fax: 561-479-0757

 

RE:  Agreement  between  SPORTS TEAM ANALYSIS AND TRACKING  SYSTEMS OF MISSOURI,

     INC. ("STATS") and FANTASY SPORTS ENTERPRISES ("FSE")

 

 

Dear Mr. Kabatznik:

 

This  letter  sets  forth the  Agreement  ("Agreement")  between  STATS and FSE,

whereby STATS shall host,  maintain,  manage,  and operate  sports fantasy games

(collectively,  the  "Games") in an online  version on FSE' World Wide Web site,

including     the    following     URL     addresses:     http://fantasycup.com;

http://fantasycup.org;    http://fantasycup.net;     http://fantasystockcar.com;

http://fantasynhra.com; and http://fantasynascar.com (collectively, the "Site").

The parties agree as follows:

 

1.   Performance by STATS.

 

     (a) STATS shall provide all necessary  technical services required to host,

operate, and administer the Games, including but not limited to,

administering all customer interfaces for registrations,  e-mail,  message board

and web reports. A description of the Games and the relevant launch dates is set

forth on  Exhibit A attached  hereto.  STATS  agrees to use its best  efforts to

provide service to FSE error free.  STATS shall correct any errors in accordance

with the Service Level Agreement ("SLA") attached hereto as Exhibit C.

 

     (b) STATS shall license to FSE, on a non-exclusive basis, the use of STATS'

proprietary sports information and data (the "Licensed Information") as required

for use in the Games.

 

     (c) STATS shall host FSE's company email.

 

     (d)  STATS  shall  provide  to  FSE  with  access  to  the  production  and

development software code for the Games and an administrative tool to access all

user  registration  information  including names,  addresses,  phone numbers and

e-mail  addresses.  FSE  shall be  responsible  for all  errors  and/or  damages

resulting from the acts of FSE personnel.

 

     (e) STATS shall provide  personnel to interface with FSE'S customer service

staff to address technical/user experience issues.

 

 

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2.   Performance by FSE:

 

     (a) FSE shall  timely  provide to STATS any  templates,  graphics and other

materials  required  in the  development  of the pages on which the Games  shall

reside.

 

     (b) FSE shall be responsible for all customer contact,  including,  without

limitation,  providing  telephone  and/or email  customer  service,  billing and

collection  matters,  and credit card  processing  and all  associated  fees and

charges.

 

     (c) FSE shall be responsible for the promotion,  marketing, and advertising

for the Games ("Marketing"),  including,  without limitation,  all expenses, and

costs associated with Marketing.

 

     (d) FSE shall acquire any and all necessary  permissions  and licenses from

players, coaches,  drivers,  leagues,  associations or their agents or any other

party  and  pay  any  associated  royalties  required  in  connection  with  the

operation,  marketing,  advertising,  sale, distribution,  or publication of the

Games ("Professional Licenses").

 

     (e) In the event any of the Games shall award  prizes,  FSE shall be solely

responsible  for: (i) obtaining  prizes and satisfying  any  applicable  bonding

requirements;   (ii)  satisfying  any  state,  federal,  or  other  governmental

regulations  regarding  registration of the Games; and (iii) distributing prizes

to the winners. The Site shall contain appropriate language regarding FSE'S sole

responsibility for paying prizes.

 

 

3.   Rights and Licenses.

 

     (a) Ownership by STATS.  FSE hereby  acknowledges  STATS' ownership of: (i)

the Licensed  Information and (ii) STATS'  trademarks,  trade names,  logos, etc

(collectively,   "STATS  Properties").   Nothing  in  this  Agreement  shall  be

interpreted  to  provide  for the  assignment  by STATS to FSE of any of  STATS'

Properties  or  any  of  STATS'  intellectual  property  rights  in  such  STATS

Properties.  Nothing  in  this  Agreement  shall  limit  STATS'  rights  to use,

reproduce,  enhance,  modify,  distribute  and  otherwise  exploit the  Licensed

Information.  Nothing in this  Agreement  shall  restrict  STATS'  rights to use

STATS' Properties.

 

     (b) Ownership by FSE. STATS hereby acknowledges FSE'S ownership of: (i) the

Games (but excluding any STATS' Properties) and that STATS development work with

respect to the Games shall  constitute  "works made for hire" for FSE within the

meaning of the copyright  laws of the United  States and (ii) FSE'S  trademarks,

trade  names,  logos,  etc  (collectively,  "FSE  Properties").  Nothing in this

Agreement  shall be  interpreted  to provide for the assignment by FSE of any of

FSE'S  Properties  or any of  FSE'S  intellectual  property  rights  in such FSE

Properties.  Nothing in this  Agreement  shall  restrict FSE'S rights to use FSE

Properties.

 

     (c)  Non-Exclusive  License.  During the Term, STATS hereby grants to FSE a

non-exclusive,  worldwide  license to  reproduce,  market,  and  distribute  the

Licensed Information solely for use with the Games.

 

4.   Consideration: In consideration for the services performed by STATS for FSE

in connection with this  Agreement,  the parties agree to pay the sums set forth

on Exhibit B attached hereto.

 

 

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5.   Term.  The term of this  Agreement  shall  commence upon its execution (the

"Effective  Date") and shall terminate on October 31, 2003 (the "Term"),  unless

sooner   terminated  as  provided  in  this   Agreement.   The  Agreement  shall

automatically  renew  for a period  of one (1) year  upon  the  same  terms  and

conditions unless either party notifies the other party in writing of its desire

not to renew the Agreement no less than sixty (60) days prior to the  expiration

of the Term.

 

6.   Trademarks, Trade Names and Related Matters.

 

     (a) STATS Name and  Trademarks.  Subject to  approval of such use by STATS,

STATS hereby grants to FSE a non-exclusive license to use STATS' name, logo, and

any other applicable trademarks in connection with Marketing.

 

     (b) FSE's Name and Trademarks.  Subject to approval of such use by FSE, FSE

hereby grants to STATS a non-exclusive  license to use FSE's name, logo, and any

other applicable trademarks in connection with the Games on the Site.

 

     (c) STATS Logo.  The STATS logo shall be displayed on all pages of the Site

that introduce the Games and/or  Licensed  Information.  On pages that introduce

the  Games,  the  logo  shall  be  preceded  by  language  crediting  STATS  and

acknowledging that the Games are "Powered by STATS, Inc." The size and placement

of the STATS logo on the Site shall be  mutually  agreed upon by the parties but

in no event shall the size of the logo be less than 102 x 27 pixels.

 

     (d) STATS  Copyright.  The following  copyright  notice shall appear on all

pages of the Site that  display  the  Licensed  Information:  "Statistical  Data

Copyright  xxxx (where xxxx denotes the current year) by STATS,  Inc. All rights

reserved.  Any  commercial  use or  distribution  without  the  express  written

permission of STATS, Inc. is strictly prohibited."

 

7.   Confidential Information.  The parties agree that during and after the Term

they shall not, except for purposes of this Agreement, use for their own benefit

or for the benefit of any person, firm,  corporation or other entity, any secret

or  confidential   information,   solicitation  methods,   confidential  pricing

information or any other data pertaining to their respective businesses,  or any

affiliates thereof,  their respective financial affairs or any other information

obtained  hereunder  regarding  each  other not  generally  known  within  their

respective  trades,  or as a matter of public  knowledge  or patent,  trademark,

trade name, service mark, copyright or other intellectual  property of the other

except as authorized by this Agreement.

 

8.   Termination.  Notwithstanding  anything in this  Agreement to the contrary,

this Agreement shall immediately terminate (i) upon the insolvency or bankruptcy

of  either  party,  if either  party  makes an  assignment  for the  benefit  of

creditors  or a  receiver,  trustee  or  liquidator  is  appointed  for all or a

substantial  portion  of either  party's  properties  or (ii) upon the breach by

either party of any of their  obligations  under this Agreement  which breach is

not cured within thirty (30) days after written  notice thereof to the breaching

party.

 

 

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9.   Obligations Upon Termination.

 

     (a) Post-Termination  Payments. The termination of this Agreement shall not

relieve  either party of its  obligations to account for and pay sums due to the

other party  hereunder  relating to any period prior to the  termination of this

Agreement.  In addition, if this Agreement is terminated as a result of a breach

hereof by FSE,  the fees set  forth on  Exhibit B shall  accelerate  and  become

immediately due and payable in full to STATS.

 

     (b) Additional  Post-Termination  Obligations.  Following the expiration of

the Term of this  Agreement or the earlier  termination of the Agreement for any

reason,  each party shall  return to the other or shall  destroy all  documents,

material  and  information  with  respect  to any  confidential  or  proprietary

information of the other.  Immediately  upon  destruction of any confidential or

proprietary  information,  FSE/STATS  shall provide  STATS/FSE with an affidavit

signed  by an  officer  or  legal  representative  of  FSE  denoting  the  items

destroyed, the manner of destruction, and the date of the destruction. Upon such

expiration or termination, each party shall cease any and all use, reproduction,

marketing,  and  distribution  of the  trademarks,  trade names,  service marks,

patents or other  intellectual and personal  property of the other. In the event

of termination  of this agreement for any reason,  STATS shall download all game

code and user database  files and other data on the hosted site to a DAT Tape or

CD and deliver such  materials to FSE within 5 business  days.  STATS shall keep

the site  publicly  accessible  for a period  of 14 days  following  the date of

termination of this agreement.  If the transfer  requires a change in the domain

name,  immediately  upon the date that the  hosted  site is no  longer  publicly

accessible,  and for a period of one month thereafter  maintain the hosted sites

URL,  provide  one page that FSE may use to direct  its users to its new  hosted

site or some other URL of FSE's choosing; and if the transfer does not require a

change in the domain name,  cooperate  with FSE in assigning a new IP address to

the domain name as FSE may request and transferring all operations of the hosted

site to new  provider.  On FSE's written  demand within five days  following the

termination  of this  agreement,  STATS shall  maintain one complete  electronic

version  of FSE's  hosted  site and  shall  delete  all  other  versions.,  Upon

notification by FSE to STATS in writing that the transferred  files appear to be

complete,  STATS  shall  delete its final copy of FSE's  hosted site from STATS'

computers.

 

10.  Representations  and Warranties.  Each party represents and warrants to the

other  that it is  authorized  to enter  into this  Agreement  and  perform  its

obligations hereunder. FSE represents that it shall be responsible for obtaining

any and all  Professional  Licenses in connection with the operation of the Site

and FSE's use of the Games and Licensed Information.

 

11.  Disclaimer  of  Implied  Warranties.   EXCEPT  AS  PROVIDED  HEREIN,  STATS

DISCLAIMS  ALL  WARRANTIES  WITH  RESPECT  TO ITS  WORK  UNDER  THIS  AGREEMENT,

INCLUDING WITHOUT LIMITATION, THE WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A

PARTICULAR PURPOSE.

 

12.  Indemnification.  Notwithstanding  anything  contained in this Agreement to

the contrary, the parties hereby agree to defend,  indemnify and hold each other

harmless  from and  against  any and all  claims,  demands,  lawsuits,  damages,

injuries,   losses,   expenses  (including   reasonable  attorney's  fees),  and

liabilities to the extent  resulting from or related to any  third-party  claims

arising out of or relating to any breach by either party of any  representation,

warranty, duty or obligation contained herein.

 

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13.  Relationship  Created. The relationship of the parties created hereby shall

be that of independent contractors and not as partners or joint venturers.

 

14.  Limitation of Liability.  Notwithstanding  anything herein to the contrary,

under no circumstances  shall STATS be liable for any special,  consequential or

incidental damages in connection with its obligations under this Agreement,  and

in any event, the liability of STATS for any act of negligence or breach of this

Agreement  shall not exceed the amount paid by FSE to STATS in  connection  with

this  Agreement  during the twelve (12) month period  immediately  preceding the

date of any claim.

 

15.  Equitable Remedies. In the event of any breach of the provisions of Section

7 hereof, the parties hereto agree that remedies at law will not be adequate and

each shall be entitled,  in addition to damages,  to  preliminary  and permanent

injunctive  relief  (without the necessity of posting of bond) to prevent a then

occurring or an about to occur breach, as well as an equitable accounting of all

profits or benefits arising out of such breach,  which rights and remedies shall

be  cumulative  and in  addition  to any other  rights or  remedies to which the

parties may be entitled.

 

16.  Notices. All notices and other  communications  required hereunder shall be

in writing and deemed to have been given when  personally  delivered,  three (3)

days after being mailed by  certified  mail,  return  receipt  request,  postage

prepaid,  one (1) day after  being sent by Federal