AGREEMENT

 

THIS AGREEMENT is made the 24th day of January 2005

 

BETWEEN:

 

(1)   The Poker Channel Ltd., a company  incorporated  under the laws of England

      and Wales (registered number  _____________) whose registered office is at

      located at ________________ ("TPC"); and

 

(2)   ZONE4PLAY  Inc.  a  company  incorporated  under  the laws of the State of

      Delaware,  USA, having its registered offices at 103 Faulk Road Suite 202,

      Wilmington, Delaware ("Zone4Play");

 

(Each, a "Party" and together, the "Parties").

 

WHEREAS,  TPC is the  owner  and  operator  of a  television  channel  providing

interactive  games and other content  (including  without  limitation  poker and

gambling programming, teleshopping and content for the interactive games service

known as 'The  Poker  Channel '  (hereinafter:  "TPC")  provided  in the  United

Kingdom,

 

WHEREAS,  Zone4Play is the owner of all rights,  title,  and interests in and to

one or more client and/or client-server  software  applications  compatible with

mobile  wireless  platforms  , Internet  platforms  and  interactive  digital TV

platforms;

 

WHEREAS,  Zone4Play  through  third  parties  can  provide  the  service  with a

bookmakers' permit and other services required to provide online and interactive

fixed odds betting opportunities in connection with such interactive games;

 

WHEREAS,  TPC and its subsidiaries or associates will provide or procure,  inter

alia, a range of infrastructure  and technical  facilities for use in connection

with the provision of broadcast fixed odds games and interactive services;

 

WHEREAS,  TPC desires to license  Applications from Zone4play on a non-exclusive

basis and  receive an  exclusive  customised  version of the front end [look and

feel]  for  distribution  by  Operator  using  one or more of the  platforms  to

Customers (as herein defined); and

 

WHEREAS,  Zone4Play  desires to grant such a non exclusive license to TPC and to

design Customization Work for TPC; and

 

NOW THEREFORE, in consideration of the foregoing premises, and mutual covenants,

promises  and  agreements  herein  contained,  and for other  good and  valuable

consideration,  the receipt and  sufficiency  of which are hereby  acknowledged,

with the intention to be legally bound hereby, the Parties agree as follows:

 

1.    Definitions.

 

      In this Agreement:

 

 

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1.1   "Application" shall mean, subject to Clause 2.1, software applications and

      any related  Intellectual  Property Rights that enable  Customers to play,

      Multiplayer  Poker  and SMS  Fixed  Odds  games  (as  further  defined  in

      Appendixes A and B respectively)  that are owned by Zone4Play or for which

      Zone4Play  otherwise  holds  sufficient  rights to grant the  licenses set

      forth herein

 

1.1   "Customers"  shall  mean  the  customer  of  TPC  as  further  defined  in

      Appendixes A & B;

 

1.2   "Effective  Date" shall mean the date on which this Agreement is signed by

      all of the Parties;

 

1.3   "Intellectual  Property Rights" shall means all patents,  database rights,

      inventions,  rights in designs,  copyright,  trade marks,  service  marks,

      trade names, domain names, and all other intellectual  property rights and

      other rights and forms of protection  of a similar  nature or effect which

      may  subsist,  anywhere  in the world for the full term of such rights and

      any extensions or renewals  thereof  subsisting  prior to, at or after the

      Effective  Date  (whether or not any of these rights are  registered,  and

      including applications and the right to apply for registration of any such

      rights as registered rights, anywhere in the world);

 

1.4   "Services"  shall mean customer support and Customer  Relation  Management

      ("CRM"),  infrastructure,  provision of a merchant  account and  e-wallet,

      reporting,  design, provision of the games engine and back office services

      to be provided  and/or  procured by Z4P from any third party in connection

      with  the use  which  is made by the  Customers  of the  Applications  and

      further detailed in Appendixes A and B respectively;

 

1.5   TPC Trademarks"  shall mean any trademarks,  service marks,  design marks,

      symbols,  logos and/or other indicia of source owned or used under license

      by TPC, and all goodwill associated therewith.

 

1.6   "Operator" shall mean The Poker Channel in the United Kingdom

 

1.7   "Zone4Play  Trademarks" shall mean any trademarks,  service marks,  design

      marks,  symbols,  logos and/or other indicia of source owned or used under

      license by Zone4Play, and all goodwill associated therewith.

 

2.    The Parties' Obligations for Providing the Applications.

 

2.1   Zone4Play   shall  develop  the   Applications   in   accordance   with  a

      specification  and a timetable (the  "Timetable"),  each of which shall be

      agreed in good faith between the Parties. Zone4Play shall provide at least

      one fully functioning broadcast game Application of play for fun games for

      launch on March 7, 2005 and  Application of play for real games for launch

      on April 22nd , 2005.  Zone4Play  shall customize the look and feel of the

      Applications exclusively for TPC using such of the TPC Trademarks and such

      other materials  (together,  the "TPC  Materials") as shall be notified by

      TPC to Zone4Play from time to time (such  customization by Zone4Play being

      referred to in this Agreement as the "Customization Work"). TPC shall have

      a right of  approval  in its sole  discretion  over the final  form of the

      Applications   following   completion  of  the  Customization   Work.  The

      Customization  Work is co-owned by both Parties and neither  Party is able

      to use it without the consent of the other.

 

 

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2.2   Zone4Play shall use its best endeavors to integrate the  Applications  and

      the  Services  and the  technical  infrastructure  used by the Operator to

      provide  services to their Customers,  all with maximizing  profits out of

      the  engagement  with the  Operator and  Products  provided  either to TPC

      and/or to the Customer.

 

2.3   Zone4Play shall favorably  consider to offer TPC any new games it plans or

      it completes development.

 

2.4   Reports and Materials: Zone4Play will provide the reports and materials to

      TPC

 

2.5   Zone4Play and TPC shall discuss in good faith the frequency and content of

      reports Zone4Play will provide.

 

2.6   Z4P and TPC shall  jointly own the customer data relating to TPC Customers

      under this Agreement.

 

2.7   Z4P shall be responsible  for providing the Services and for procuring the

      availability of the necessary testing environment.

 

2.8   TPC  agrees  to  assess   feasibility   and  economics  of  launching  the

      Multiplayer Poker Application. Z4P will make this Application available to

      TPC throughout the Term of this Agreement and under the same terms of this

      Agreement.  TPC agrees that for the term of this Agreement the Multiplayer

      Poker  Application  provided  by Z4P shall be the sole  Poker  application

      launch on TPC,  further during such term TPC will assess the launch of the

      Application  within 12 months of its Launch.  Notwithstanding to the forth

      said it is  acknowledged  by TPC that for the  assessment of the launch of

      Multiplayer Poker  Application,  Z4P shall not provide TPC with respect to

      such application any Customization Work, the Multiplayer Poker Application

      and its look and feel  customize  version of the front end is solely owned

      by Z4P.

 

2.9   TPC  undertakes  to launch SMS Fixed Odds and  maintain  such on The Poker

      Channel  for an  average of 3 hours per day over a period of one year from

      Launch.  Thereafter  the Parties  shall  review and discuss in good faith.

      This  undertaking  is fundamental to this agreement and its breach will be

      considered as a material breach of this  Agreement.  TPC will discuss with

      Z4P the proposed  broadcast hours but it will ultimately have the right to

      decide broadcast hours and to change these when required.

 

2.10  TPC has the right to re-name the games and or the Z4P  broadcast  zone for

      the purpose of  differentiation,  ease of promotion to Customers and clear

      signposting in the schedule.

 

3.    Grant of License for Distributing Applications.

 

 

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3.1   Zone4Play  hereby grants to TPC,  during the Term, a nonexclusive  license

      and the right to distribute where applicable.  For the avoidance of doubt,

      TPC shall (pursuant to Clause 11) own all rights in Customisation Work and

      Zone4Play  shall not have or be  entitled  to grant to any third party any

      rights in the Customisation Work (and Zone4Play is shall entitled to grant

      rights to third parties in respect of the Applications as they stood prior

      to the Customisation Work having been carried out).

 

3.2   TPC hereby grants to Zone4Play, during the Term, a limited, non-exclusive,

      non-transferable  license  to use the TPC  Materials  solely to the extent

      necessary for Zone4Play to perform its  undertakings  under this Agreement

      including the Customisation Work pursuant to Clause 2.1.

 

4.    Trademark License.

 

4.1   Zone4Play  grants to TPC,  during  the Term,  a  worldwide,  nonexclusive,

      royalty-free  license to use the Zone4Play  Trademarks in online, print or

      other advertising for the purposes of promoting,  selling,  licensing, and

      distributing the Applications and the Products to Operators and Customers.

 

4.2   TPC  acknowledges  that  all  right,  title  and  interest  in  and to the

      Zone4Play  Trademarks,  including all goodwill  related  thereto,  are and

      shall remain owned solely and  exclusively by Zone4Play and that all usage

      of the  Zone4Play  Trademarks  by or on behalf  of TPC shall  inure to the

      benefit of Zone4Play.

 

4.3   TPC  agrees  to  comply  with any and all  usage  guidelines  provided  by

      Zone4Play  to TPC with  respect  to the  Zone4Play  Trademarks,  and shall

      supply,  upon Zone4Play's  written request,  specimens of all advertising,

      marketing  and/or  promotional  materials  in which a Zone4Play  Trademark

      appears to Zone4Play for inspection and approval, which approval shall not

      be unreasonably withheld.

 

4.4   If Zone4Play has not indicated its approval or rejection of such specimens

      within  three (3)  business  days after  receiving  such  specimens,  such

      specimens  shall be deemed  approved  by  Zone4Play.  Zone4Play  agrees to

      provide TPC a copy of its current trademark usage guidelines promptly upon

      execution of this Agreement.

 

4.5   Zone4Play  acknowledges  that all right,  title and interest in and to the

      TPC Materials (including without limitation the TPC Trademarks), including

      all  goodwill  related  thereto,  are and shall  remain  owned  solely and

      exclusively  by TPC and that  all  usage  of the TPC  Trademarks  by or on

      behalf of Zone4Play shall inure to the benefit of TPC. Zone4Play agrees to

      comply with any and all usage guidelines provided by TPC to Zone4Play with

      respect  to  its  use of  the  TPC  Trademarks  in  the  provision  of the

      Customisation Work.

 

5.    Royalty/Revenue-Sharing  Payments.  Revenues arising from the provision of

      the Applications shall be shared in accordance with the terms specified in

      Appendixes A and B respectively.

 

5.1   Within 30 working days of the end of each month,  Zone4Play shall send TPC

      a report detailing the Net Revenues received from the Applications  during

      the previous  calendar  month,  any relevant third party Revenue  Share(s)

      and, the split  between TPC and Zone4Play of the remaining Net Revenues in

      accordance  with revenue  sharing ratio decided by the Parties and defined

      in Appendixes A and B respectively.

 

 

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5.2   Zone4Play  shall  deliver TPC's share of the remaining Net Revenues to TPC

      upon receipt of an appropriate invoice within 15 days of its receipt.

 

6     Promotion, Publicity and Press Releases.

 

TPC may,  refer,  in TPC's online,  print or other  advertising  and promotional

materials, to the fact that Zone4Play's  applications are accessible through TPC

using  Zone4Play  Trademarks as permitted in Clause 4 above without  disparaging

Zone4Play,  its products,  services,  or  affiliates,  but always subject to any

regulatory restrictions.

 

No Party shall  publicize  the terms or the  existence of this  Agreement to any

third party  without  prior  written  consent from the other Parties after their

review and  approval of the form and content of any  publicity  release or other

press  announcement.  Zone4Play shall not imply or state to any person or entity

that it is sponsored by, funded by, or in any way associated with TPC other than

as authorized by TPC pursuant to this Agreement.  Similarly, TPC shall not imply

or state to any person or entity that it is sponsored  by,  funded by, or in any

way associated with Zone4Play other than as authorized by Zone4Play  pursuant to

this  Agreement.  This  section  shall not apply to  official  filing of reports

Zone4play is compelled to submit to the regulatory bodies as a public company.

 

7     Representations and Warranties.

 

8.1   By Zone4Play.

 

      Zone4Play hereby  represents,  warrants and  undertakes  to TPC that:  (i)

            Zone4Play  has the power and authority to enter into and perform its

            obligations according to the terms of this Agreement; (ii) Zone4Play

            has no  restrictions  that would  impair its  ability to perform its

            obligations  and grant all rights  contemplated  by this  Agreement;

            (iii)  Zone4Play has not and will not enter into any agreement  that

            is inconsistent  with its obligations  hereunder;  (iv) Zone4Play is

            the owner or has obtained and currently  holds valid and  sufficient

            rights,  including  rights  in  third  party  Intellectual  Property

            Rights, to license the rights granted and/or the services  committed

            to TPC  herein and that to the best of its  knowledge  TPC's use and

            exploitation  (and  any  Customer's  and/or  Operator's  use  and/or

            exploitation)  of the  Applications  in the manner agreed to by this

            Agreement  shall not infringe the  Intellectual  Property  Rights or

            other rights of a third party

 

8.2   By TPC.

 

      8.2.1 TPC hereby represents, warrants and undertakes to Zone4Play that it:

            (i) has the  power  and  authority  to enter  into and  perform  its

            obligations  according to the terms of this  Agreement;  (ii) has no

            restrictions   that  would   impair  its   ability  to  perform  its

            obligations  contemplated by this  Agreement;  and (iii) has not and

            will not enter  into any  agreement  that is  inconsistent  with its

            obligations hereunder

 

 

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8.3   Disclaimer.

 

      EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED IN THIS AGREEMENT, THE FOREGOING

      WARRANTIES  ARE THE ONLY  WARRANTIES  GIVEN BY EACH  PARTY  AND ALL  OTHER

      WARRANTIES  OR  CONDITIONS,  WHETHER  EXPRESS  OR  IMPLIED  BY  STATUTE OR

      OTHERWISE,  ARE SPECIFICALLY  EXCLUDED BY THE PARTIES,  INCLUDING  WITHOUT

      LIMITATION,  IMPLIED  WARRANTIES  OF  MERCHANTIBILITY  OR  FITNESS  FOR  A

      PARTICULAR PURPOSE.

 

9.    Confidentiality.

 

9.1   The  Parties  agree that  during the Term there may be a need to  exchange

      certain  confidential  or  proprietary  information.  In  this  Agreement,

      "Confidential Information" shall be defined as the terms of this Agreement

      and any  confidential,  trade  secret,  or other  proprietary  information

      disclosed  by any Party (the  "Disclosing  Party")  to another  Party (the

      "Receiving  Party") under this Agreement.  Confidential  Information shall

      not  include  information  that  (i) is  public  knowledge  at the time of

      disclosure, (ii) was known by the Receiving Party before disclosure by the

      Disclosing  Party,  or becomes public  knowledge or otherwise known to the

      Receiving  Party  after  such  disclosure,  other  than by  breach  of the

      confidentiality  obligations of this Agreement,  or (iii) is independently

      developed by the Receiving Party by persons without access to Confidential

      Information of the Disclosing Party.

 

9.2   The  Receiving