Exhibit
10.1
PREMIUM NETWORK LICENSE AND
RESELLER AGREEMENT
with
DEVELOPMENT TERMS
THIS AGREEMENT
(the “Agreement”) is made and entered into as of June
10, 2009, by and between en2go International, Inc.
(“en2go”), a corporation organized and existing under
the laws of the State of Nevada, United States of America, with a
place of business at 2921 West Olive Ave., Burbank, California
91505, and Digital Stream, Inc., a company organized and existing
under the laws of the State of Nevada, United States of America,
and with a place of business at 4439 South Slauson Ave., Culver
City, California 90230 (“DSI”).
Defined terms
used in this Agreement shall have the meanings set forth
below:
1.1.
“Application” means the software and related
documentation specified in Appendix B , which are developed
and marketed by DSI in combination with the Customized
Product.
1.2. “Basic
Maintenance” means en2go’s maintenance program pursuant
to which en2go shall provide to DSI receipt of all improvements,
error corrections, enhancements, modifications, updates, new
versions, and new releases of the Products (other than those
designated as new products by en2go), and support for the
Product(s) and for all deliverables developed by en2go, for the
fees described in Appendix D , payable in
advance. en2go reserves the right, in its sole
discretion, to make non-material changes to the form and content of
its Basic Maintenance from time to time and will provide DSI with a
sixty (60) day advance notice of any such non-material
change(s). As used in this Agreement, a
“non-material” change shall consist of change of an
administrative or otherwise non-substantive nature, not having an
adverse effect upon an Application previously effected, or upon the
value, performance or functionality of the maintenance, support or
Product being provided, as the case may be. No consent
by DSI shall be required for changes to the maintenance services
provided by en2go to customers of en2go other than DSI.
1.3.
“Channel” means a flow of media objects which can be
accessed and delivered directly to a user's rendering device,
including but not limited to, a user’s desktop, by the
Product platform.
1.4.
“Confidential Information” of a party means such
party’s technical, business, marketing, financial or customer
information, drawings, specifications, designs, records,
correspondence or other information disclosed by such party in
relation to this Agreement. The Product, Customized
Product and any intellectual and/or proprietary rights therein,
including, without limitation, any patent, copyright, trademark,
service mark, logo, and trade secrets therein shall be Confidential
Information of en2go, subject to the remainder of this
paragraph. The Applications and any intellectual and/or
proprietary rights therein, including, without limitation, any
patent, copyright, trademark, service mark, logo, and trade secrets
therein shall be Confidential Information of DSI, subject to the
remainder of this paragraph. A party’s
“Confidential Information” does not include information
(i) already in the public domain prior to the execution of this
Agreement, or which enters the public domain, other than by
unauthorized acts of the party receiving such information (the
“Recipient”), (ii) in the rightful possession of the
Recipient prior to the execution of this Agreement, or (iii) which
is independently developed by the Recipient without use of the
disclosing party’s Confidential Information or in violation
of the terms of this Agreement.
1.5. “Customized
Product” means the Product as customized and developed
pursuant to Section 2.
1.6. “Effective
Date” means the date first written above.
1.7. “End
User” means a customer of DSI who is authorized by an end
user license agreement to use the Application, Customized Product
or Product for End User’s internal purposes.
1.8.
“Export Laws” means all export laws,
administrative regulations, and executive orders of any applicable
jurisdiction relating to the control of imports and exports of
commodities and technical data, including, without limitation, the
U.S. Department of Commerce.
1.9.
“Intellectual Property Rights” means patent rights
(including but not limited to rights in patent applications or
disclosures and rights of priority), copyright (including but not
limited to rights in audiovisual works and moral rights), trade
secret rights, and any other intellectual property rights
recognized by the law of each applicable jurisdiction.
1.10. “Level 1
Support” means that the Customized Product or Product is
non-operational and no users can access the system, or the
functionality is significantly decreased, or back up or other
security of data can no longer be performed. Such events shall
require immediate resolution by en2go. en2go must start
the error correction not later than four hours following
notification by DSI or End User. For Level 1 Support only,
telephone support is available to report irregularities 24 hours
per day 7 days per week.
1.11. “Level 2
Support” means that the Customized Product or Product is
operational with functional limitations or restrictions but there
is minimal business impact. en2go must start the error correction
not later than 24 hours following notification by DSI or End User.
en2go shall work to correct errors during normal business hours
using commercially reasonable best efforts to promptly correct such
errors within 5 business days.
1.12. “Level 3
Support” means that the Customized Product or Product is
operational with functional limitations or restrictions that are
not critical to the overall system operation. en2go shall work to
correct such errors during normal business hours. en2go shall use
commercially reasonable efforts to correct such errors within 30
business days.
1.13. “Live
Streaming Service” means DSI’s live streaming service
as part of the Application.
1.14.
“Marks” means a party’s trademarks, trade names,
service marks, and/or service names.
1.15.
“Network” means a channel which includes its own
directory, divided by categories or genres.
1.16. “Premium
Custom Network” means a custom build of the Product Network
which enables multiple administrators to set up channels as well as
directories of its content.
1.17.
“Product” means the Flyxo™ application developed
by en2go as described on Appendix A and licensed hereunder
in accordance with this Agreement, including improvements, error
corrections, enhancements, updates, new versions and new releases,
provided to DSI by en2go.
1.18. “Source
Code” means software in human-readable form, including
programmers’ comments, data files and structures, header and
includes files, macros, object libraries, programming tools not
commercially available, technical specifications, flowcharts and
logic diagrams, schematics, annotations and documentation
reasonably required or necessary to enable an independent third
party programmer with reasonable programming skills to create,
operate, maintain, modify and improve the software without the help
of any other person.
1.19.
“Sub-Distributor” means a reseller or distributor DSI
engages or contracts with to market, sell, distribute and
sublicense the Application, specifically excluding all End
Users.
1.20.
“Territory” means anywhere in the world.
1.21. “User
Documentation” means the then current en2go user manual(s)
and other written materials on the proper installation and use of,
and which are normally distributed with, the
Products. en2go represents to DSI that it has provided
to DSI an up-to-date copy of the User Documentation.
2.
CUSTOMIZATION OF
PRODUCT
2.1.
en2go will develop interfaces,
translations, applications and intellectual property to customize
the Product to include DSI’s Live Streaming Service and
customize the Product functionality to DSI’s clip builder
software. en2go and DSI will mutually agree upon a
written statement of work and deployment schedule no later than
thirty (30) days from the Effective Date.
2.2.
DSI shall pay the development fees
to en2go as specified on Appendix D .
3.1. Subject to the
terms and conditions herein, en2go hereby grants and DSI hereby
accepts (i) a non-exclusive, nontransferable (except as otherwise
provided herein), perpetual right and license to use the Customized
Product in DSI’s Premium Custom Network; (ii) a
non-exclusive, nontransferable (except as otherwise provided
herein), perpetual, royalty-bearing right and license to
subdistribute, sublicense, display, sell and market the Customized
Product as part of the Application, Customized Product and Product,
and accompanying User Documentation in the Territory; (iii) the
right and license to sublicense to End Users the Customized Product
as part of the Application, Customized Product and Product, and
accompanying User Documentation for internal use in the Territory;
and (iv) a non-exclusive, nontransferable (except as provided
herein), perpetual, royalty-free right and license to use in
unaltered form en2go’s Marks solely to promote the
Application in the Territory, provided DSI obtains en2go’s
prior written approval for each new usage. en2go retains
all title to and, except as unambiguously licensed herein, all
rights, including all Intellectual Property Rights to the Product,
and all copies and derivative works thereof (by whomever
produced).
3.2. Subject to the
terms and conditions herein, DSI hereby grants and en2go hereby
accepts (i) a non-exclusive, nontransferable (except as otherwise
provided herein), perpetual, royalty-bearing right and license to
subdistribute, sublicense, display, sell and market the Live
Streaming Service for use solely in conjunction with the Product in
the Territory; (ii) the right and license to sublicense to end
users the Live Streaming Service for internal use in conjunction
with the Product in the Territory; and (iii) a non-exclusive,
nontransferable (except as provided herein), perpetual,
royalty-free right and license to use in unaltered form DSI’s
Marks solely to promote the Live Streaming Service in the
Territory, provided en2go obtains DSI’s prior written
approval for each new usage. DSI retains all title to
and, except as unambiguously licensed herein, all rights, including
all Intellectual Property Rights to the Live Streaming
Service.
3.3. Any use by either
party of the other party’s Marks must reference the Marks as
being owned by such party. Nothing in this Agreement
grants either party ownership or any rights in or to use the other
party’s Marks, except in accordance with these licenses, and
a party’s use of the Marks will inure to the benefit of the
other party. The rights granted to either party in this
license will terminate upon any termination or expiration of this
Agreement. Upon such termination or expiration, neither
party will make any further use of any Marks. en2go will
have the exclusive right to own, use, hold, apply for registration
for, and register its Marks during the term of, and after the
expiration or termination of, this Agreement; DSI will neither take
nor authorize any activity inconsistent with such exclusive
right. DSI will have the exclusive right to own, use,
hold, apply for registration for, and register its Marks during the
term of, and after the expiration or termination of, this
Agreement; en2go will neither take nor authorize any activity
inconsistent with such exclusive right.
3.4. DSI shall ensure
that an End User agreement in electronic or hard copy form
accompanies each Customized Product or Product or copy distributed
by DSI subject to provisions no less protective for the Product and
en2go, than those set forth substantially in the form attached
hereto as Appendix C , and previously approved in writing by
en2go. In addition, DSI shall perform any other actions
reasonably requested by en2go to assure adequate protection of
en2go’s interests in its Intellectual Property Rights
contained in the Customized Product and Product. DSI
shall not distribute or sublicense a Customized Product or Product
pursuant to mass-market or “shrink-wrap” licenses in
those jurisdictions with respect to which DSI has been advised by
legal counsel to DSI that such licenses are not
enforceable. The provisions of the preceding sentence
shall not impair the rights of DSI or End Users in respect of a
Customized Product or Product distributed or licensed prior to the
receipt of such advice by legal counsel.
3.5. DSI shall comply
with en2go’s use policies attached hereto as Appendix
E , and shall use best efforts to cause its End Users and
Sub-Distributors to comply with such policies.
4.
EN2GO LICENSE
RESTRICTIONS
4.1. DSI will not
disassemble, modify, decompile, reverse engineer or attempt to
derive the Source Code for the Customized Product. In
addition, DSI will not use the Customized Product in any manner to
encumber, provide service bureau, time sharing, rent or lease the
rights granted by this Agreement. DSI’s rights in
the Customized Product and Product will be limited to those
expressly granted in this Agreement.
4.2. DSI shall not (i)
use any en2go Marks in a way that implies DSI is an agency or
branch of en2go, or (ii) modify or alter the Source Code of the
Customized Product in any way.
4.3. DSI agrees not to
resell, distribute or sublicense the Customized Product or Product
to third parties other than Sub-Distributors and End Users, except
where such third parties are approved in writing in advance by
en2go, such approval not to be unreasonably withheld.
4.4. The Customized
Product and Product and all related documentation are protected
under copyright and trade secret laws and contain proprietary
information of en2go and its licensors. DSI shall abide
by the terms of any proprietary notices or markings, and shall use
the documentation and the Customized Product and Product only for
the purposes contemplated by this Agreement, and shall not disclose
to others or reproduce the Customized Product or Product (except as
specifically permitted under this Agreement), unless specifically
authorized by en2go or required by law, or relevant in any legal
proceeding between the parties, and shall be liable for all loss or
damage to en2go from any failure to so abide or from any
unauthorized disclosure in violation of this Section 4 , of
the Customized Product, Product or related documentation by DSI or
its agents.
5.
DSI LICENSE
RESTRICTIONS
5.1. en2go will not
disassemble, modify, decompile, reverse engineer or attempt to
derive the Source Code for the Live Streaming
Service. In addition, en2go will not use the Live
Streaming Service in any manner to encumber, provide service
bureau, time sharing, rent or lease the rights granted by this
Agreement. en2go’s rights in the Live Streaming
Service will be limited to those expressly granted in this
Agreement.
5.2. en2go shall not
(i) use any DSI Marks in a way that implies en2go is an agency or
branch of DSI, or (ii) modify or alter any of the Source Code used
in the Live Streaming Service in any way.
5.3. The Live Streaming
Service and all related documentation are protected under copyright
and trade secret laws and contain proprietary information of DSI
and its licensors. en2go shall abide by the terms of any
proprietary notices or markings, and shall use the documentation
and the Live Streaming Service only for the purposes contemplated
by this Agreement, and shall not disclose to others or reproduce
the Live Streaming Service (except as specifically permitted under
this Agreement), unless specifically authorized by DSI or required
by law, or relevant in any legal proceeding between the parties,
and shall be liable for all loss or damage to en2go from any
failure to so abide or from any unauthorized disclosure in
violation of this Section 5 , of the Live Streaming Service
or related documentation by en2go or its agents.
6.
APPOINTMENT OF RESELLER;
RELATIONSHIP OF THE PARTIES
6.1. en2go hereby
appoints DSI as an authorized, non-exclusive Value-Added Reseller
and reseller within the Territory. DSI agrees not to
market and resell any other broadcast and media delivery platform
except for the Product. A “Value-Added Reseller” or
“VAR” develops, owns and licenses, to one or more
Sub-Distributors and/or End Users, one or more value-added
Applications in conjunction with the Customized
Product. A VAR licenses its Application with each
Customized Product it distributes and a reseller has the right to
distribute or license the Customized Product or Product on a
stand-alone basis. The relationship between the parties shall be
that of VAR and reseller licensing products and purchasing services
as an independent contractor from en2go and reselling and
sublicensing to Sub-Distributors and End Users. DSI and
its employees are not agents or representatives of en2go for any
purpose and have no power or authority to represent, act for, bind
or commit en2go. Except as stipulated in this Agreement,
neither party shall have any rights, power, or authority to act or
to create any obligation, express or implied, on behalf of the
other. Any place or places of business maintained by DSI
in connection with the performance of this Agreement shall be
maintained at DSI’s own name.
6.2. DSI hereby
appoints en2go as an authorized, non-exclusive reseller within the
Territory. en2go agrees not to market and resell any other Live
Streaming Service except for DSI’s Live Streaming
Service. A reseller has the right to distribute or
license the Live Streaming Service on a stand-alone basis or in
conjunction with the Product. The relationship between the parties
shall be that of reseller licensing products and purchasing
services as an independent contractor from DSI and reselling and
sublicensing to end users. en2go and its employees are
not agents or representatives of DSI for any purpose and have no
power or authority to represent, act for, bind or commit
DSI. Any place or places of business maintained by en2go
in connection with the performance of this Agreement shall be
maintained at en2go’s own name.
6.3. Upon payment of
the license fees specified on Appendix D and upon completion
of the development of the Customized Product, en2go will deliver in
object-code form, one copy of the Customized Product to
DSI. DSI shall sell the Customized Product and Product
according to the list base prices set forth on en2go’s
standard price list to be provided to DSI, as may be amended from
time to time by en2go at its sole discretion.
6.4. Upon the Effective
Date, DSI will deliver in object-code form, a downloadable version
of th
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