EXHIBIT
10.1
License and
Distribution Agreement between Homeland Security Network, Inc. and
Advantra International NV
HOMELAND SECURITY NETWORK,
INC./ADVANTRA INTERNATIONAL NV.
License and Exclusive
Distribution Agreement
This License
and Exclusive Distribution Agreement (“Agreement”) is
entered into as of the effective date set forth below as per the
signatures of the parties hereto (“Effective Date”), by
and between Homeland Security Network Inc., a Nevada corporation
having its principal office at 2500 Legacy Drive, Frisco, Texas
75034 (“Homeland” or “Licensee”) and
Advantra International NV, a Belgium corporation having its
principal office at Bootweg 4, B 8940 Wervik, Belgium
(“Advantra” or “Licensor”). For the
purposes of this agreement, Licensee and Licensor are described
collectively as “The Parties”, or individually as a
“Party”.
WHEREAS, Licensor has developed and owns the
designs for selected Hardware and Firmware
as more fully set forth in “ Schedule C
” (“ Kepler”) ;
WHEREAS, Licensee wishes to license from
Licensor during the Term (defined in Section 1 hereof), Kepler and
other Derivative GPS and Tracking Products for the purpose of
Exclusive Distribution in the Exclusive Territory (defined in
Section 1 hereof);
WHEREAS, Licensee wishes to distribute Kepler
and other Derivative GPS and Tracking Products and new firmware
functions developed by Licensee for the purpose of Exclusive
Distribution to third parties in the Exclusive Territory;
and
WHEREAS,
Licensee agrees not to produce directly or indirectly, nor to
participate in, nor to promote the copying, partially copying or
the reverse engineering of Kepler or the Kepler Derivative
Products, and whereas, Licensee agrees to buy the Kepler and
Derivative Products only and in all cases from Licensor. The Kepler
and Kepler Derivative Products Source Code will not be used,
directly or indirectly, nor partially, for other products than for
the Licensor Products.
WHEREAS,
Parties agree that Licensor will have a right of first refusal for
the manufacturing and distribution of new products for Licensee.
Licensor has a period of 30 days to come with a determination
whether Licensor is interested in manufacturing, and a further 45
days to present a cost effective plan.
WHEREAS, concurrently with the execution of this
Agreement, the Parties are executing a Kepler Purchase Agreement
(the “Kepler Purchase Agreement”) pursuant to which the
Licensee will purchase Kepler Products from Licensor.
NOW THEREFORE, in consideration of and subject
to the premises and covenants contained in the General Terms and
Conditions and any Schedules and Amendments to this Agreement, all
attached hereto, which are made an integral part of this Agreement,
and intending to be legally bound, Licensee and Licensor have
caused this Agreement to be executed by their duly authorized
representatives on the Effective Date set forth below.
Homeland
Security Network, Inc.
Advantra
International NV
Effective Date:
April 14, 2005
________________
Certain
information on this page has been omitted and filed separately with
the Securities and Exchange Commission. Confidential treatment has
been requested with respect to the omitted portions.
LICENSE AND EXCLUSIVE
DISTRIBUTION AGREEMENT
BY AND
AMONGST
ADVANTRA INTERNATIONAL
NV
And
HOMELAND SECURITY NETWORK,
INC.
1.
Definitions . The following defined terms
are used in this Agreement.
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1.1
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“Agreement” is defined in the
preamble to this Agreement.
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1.2 “Confidential Information” means
any information of a party, which is reduced to or embodied in a
tangible form and which is either marked as confidential or
designated in writing at the time of disclosure or within ten (10)
Business Days thereafter as being Confidential Information.
Confidential Information does not include information which: (i)
was in the receiving party’s possession without restrictions
of confidentiality prior to receipt by the other party; (ii) is or
becomes public knowledge because of events other than an act or
failure to act by the receiving party or anyone under the receiving
party’s direct or indirect control; or (iii) is or has been
independently developed by the receiving party, provided that such
development was accomplished by the receiving party or on its
behalf without the use of, or any reference to, Confidential
Information.
1.3 “Derivative Product” means a
Product that is developed, producted and/or based upon the Kepler,
iTrax or other pre-existing Product(s) of the Parties set forth in
Schedule C .
1.4 “Designated Licensee Contacts”
mean the employees, authorized consultants, and other appropriately
authorized designees of Licensee authorized to receive Support
Services. The initial Designated Contacts are identified on the
Licensee Information Schedule attached hereto as
Schedule D(1).
1.5 “Designated Licensor Contacts”
mean the employees, authorized consultants, and other appropriately
authorized designees of Licensor authorized to provide Support
Services. The initial Designated Contacts are identified on the
Licensor Information Schedule attached hereto as
Schedule D(2).
1.6 “Distribute” means to market,
promote, sell, distribute, appoint sub-distributors to any Person,
including a Subsidiary of the licensee. A Distribution shall be
deemed to have occurred at the earliest time that the item
Distributed is shipped or otherwise leaves the possession of the
Licensee.
1.7 “Effective Date” is defined in
the preamble to this Agreement.
1.8 “Exclusive Territory” means the
United States of America and Canada.
________________
Certain
information on this page has been omitted and filed separately with
the Securities and Exchange Commission. Confidential treatment has
been requested with respect to the omitted portions.
1.9 “Firmware” means the executable
code, source code and Object files embedded in the KEPLER and
Derivative Products.
1.10 “Intellectual Property Rights”
means all forms of intellectual property rights and protections
that may be obtained and may include, without limitation all right,
title and interest in and to: (i) all letters patent and all filed,
pending or potential applications for letters patent, including any
reissue, reexamination, division, continuation or
continuation-in-part applications throughout the world now or
hereafter filed; any intellectual property unknown to either party
prior to disclosure by the disclosing party (iii) trade secrets,
and all trade secret rights and equivalent rights arising under the
common law, state law, federal law and laws of foreign countries;
(iv) mask works, copyrights, whether or not protected by copyright
or as a mask work, under common law, state law, federal law and
laws of foreign countries; and (v) Marks.
1.11 “KEPLER” and
‘iTrax” are defined in the preamble to this Agreement
and means the items listed in Schedule C
.
1.12 “Licensor” is defined in the
preamble to this Agreement.
1.13 “Licensee” is defined in the
preamble to this Agreement.
1.14 “Licensee Products” means those
products described as iTrax, and/or products which contain
Licensee’s exclusive intellectual property, firmware provided
by Licensee to Licensor and other enhancements to the firmware
exclusively by Licensee defined within this agreement, or
subsequently identified Products in subsequent agreements as
Exclusive Products of the Licensee.
1.15 “Licensor Products” means those
products described as Kepler, and/or products which contain
Licensor’s exclusive intellectual property, provided firmware
and other enhancements to the Licensor’s hardware or firmware
defined within this agreement, and subsequently identified Products
in subsequent agreements as Exclusive Products of the Licensor,
except OEM Products.
1.16 “Marks” mean the proprietary
indicia, trademarks, trade names, symbols, logos and/or brand names
under common law, state law, federal law and laws of foreign
countries owned or controlled by a party that are commercially
identified or associated with such party and/or one or more of the
party’s products, which are listed on the Marks Schedule
attached hereto as Schedule E and which may
be added to such Schedule by the parties from time to time during
the Term.
1.17 “Modification Error” means any
problem introduced through modifications to KEPLER or Derivative
Product made by a party other than Licensor, unless the
modification was made at Licensor’s specific written
direction.
1.18 “Person” means any individual,
sole proprietorship, partnership, joint venture, trust,
unincorporated organization, association, corporation, institution,
public benefit corporation, entity or government, including,
without limitation, any Subsidiary, instrumentality, division,
agency, body or department thereof.
1.19 “Severe Error” means when
KEPLER or Derivative Product fails to function according to its
published documentation and Licensee is unable to proceed without a
fix to the problem or a workaround solution provided by Licensor.
Modification Errors are not Severe Errors.
1.20 “Source Code” means machine- or
human-readable program code expressed in a form suitable for
modification by humans.
________________
Certain
information on this page has been omitted and filed separately with
the Securities and Exchange Commission. Confidential treatment has
been requested with respect to the omitted portions.
1.21 “Subsidiary” means a Person in
which the specified party owns a majority of the outstanding
shares, securities, or other ownership interests representing the
right to vote for the election of directors or other managing
authority; provided, however, that in any country where the local
law does not permit foreign equity participation of at least 50%, a
“Subsidiary” shall include any Person organized under
the laws of such country in which the specified party owns the
maximum percentage of outstanding shares or other ownership
interests permitted by local law, so long as the specified party
exercises actual control over the Person’s operations. A
Person will be deemed to be a Subsidiary only so long as such
ownership exists.
1.22 “Support Services” means the
Support Services set forth in Schedule B attached
hereto.
1.23 “Term” means the initial term
and any renewal terms as set forth in Section 13.
1.24 “Third Party Agreements” means
agreements that The Parties may execute with a person that is not a
subsidiary or wholly owned entity of The Parties.
1.25 “OEM” or ‘Original
Equipment Manufacturer” means to develop and/or manufacture
Products, either on a standalone basis or as part of another
company’s product, where the product is branded under the
other company’s name.
1.26 “Agreements” means both this
Agreement and the Kepler Purchase Agreement, both to be signed and
become effective as of the same signature date.
1.27 “Back-end” means those services
that could include, but not limited to, software, communications,
or other technology required to operate the system, but excluding
the KEPLER device itself and the attached accessories.
1.28 “Change of Control” shall mean
a bona-fide change in the majority voting control of Licensor or
Licensee.
1.29 “iTrax” shall mean any Kepler
or Derivative Product sold by Licensee irrespective of the Mark or
brand name used.
2.0
License Grants, Source Code Escrow and Release and
Exclusivity .
2.1 Grant of License to
Licensee . Licensor grants a license, subject to the
terms and conditions of this Agreement and specifically subject to
the exceptions carved out in Art. 2.9 and 2.11, solely for the
purposes of enabling Licensee to develop Firmware enhancements to
Licensee’s Products and support and maintain such products as
described in Schedule B on the terms and conditions set forth
therein, Licensor hereby grants Licensee, during the Term and
subsequent renewal Terms, an exclusive, non-transferable (except as
set forth in Section 2.12 below) license in the Exclusive Territory
to:
(a) install, store, read, copy, modify, use and
create KEPLER or Kepler Derivative Products Software Source
Code;
(b) compile into executable form the Software
Source Code for the KEPLER or Kepler Derivative
Products;
(c) execute and use the executable or Object
Code resulting from such compilation; and
________________
Certain
information on this page has been omitted and filed separately with
the Securities and Exchange Commission. Confidential treatment has
been requested with respect to the omitted portions.
(d) install, store, read, modify, copy, use and
create any related technical and user documentation provided to
Licensor by Licensee, that Licensee may need to perform their
necessary commercial obligations under this agreement, subject to
the confidentiality provisions of this agreement.
2.2 Grant of License to
Licensor . Licensee grants a license, subject to the
terms and conditions of this Agreement and solely for the purposes
of enabling Licensor to utilize Firmware enhancements made by
Licensee to Licensor’s Firmware or Products and support and
maintain their obligations to provide the Hardware of such products
as described in Schedule C on the terms and conditions set forth
therein. Licensee hereby grants Licensor, during the Term and
subsequent renewal Terms, an exclusive, free, non-transferable
license, except in the Exclusive Territory and except as set forth
in Section 2.12 below, to:
(a) install, store, read, copy, modify, use and
create the Licensee’siTrax and Derivative Products Software
Source Code;
(b) Compile into executable form the
Licensee’s Software Source Code for the iTrax and Derivative
Products to execute their commercial obligations under this
agreement;
(c) Embed the executable or Object Code on
hardware produced for Licensee resulting from such compilation;
and
(d) install, store, read, modify, copy, use and
create any related technical and user documentation provided to
Licensor by Licensee, that Licensor may need to perform their
necessary commercial obligations under this agreement, subject to
the confidentiality provisions of this agreement.
2.3 Grant of Source License to
Licensor . Subject to the terms and conditions of this
Agreement and solely for the purposes of enabling Licensor to embed
modified firmware supplied by Licensee in the KEPLER or Derivative
Products in Object Code form in Licensee’s Products and to
support and maintain such products, Licensee grants to Licensor,
during the Term and subsequent Terms thereafter an exclusive, free,
non-transferable (except as otherwise set forth herein) worldwide
license to:
(a) install, store, read, copy, modify, use and
create versions of the Licensee’s iTrax and Derivative
Product Source Code;
(b) compile into executable or Object Code form
the Licensee’s iTrax and Derivative Products Source Code
thereof;
(c) use the executable or Object Code resulting
from such compilation; and
(d) install, store, read, modify, copy, use and
create any related technical and user documentation provided by
Licensee to Licensor.
2.4 Licenses to Licensee
. In the event Licensor desires to market, distribute and/or sell
the Kepler or other Derivative products that contain, utilize or
otherwise would commercially benefit from Licensee’s
intellectual property, Firmware, Marks, or other as yet defined,
but exclusive intellectual or commercial property of the Licensee,
the Licensor agrees to pay the Licensee a royalty for each Kepler
or Derivative Product that utilizes Licensee’s intellectual
property, Firmware, Marks, or other as yet undefined, but exclusive
intellectual property of the Licensee. Such Royalty shall be
determined and agreed upon by the parties and set forth in a
separate agreement, at reasonable commercial terms. Derivative
products, modifications, corrections, and enhancements on Kepler or
the Kepler Derivative Products, as developed by licensee, but
excluding Licensee’s pre-existing intellectual property,
Firmware, Marks, or other as yet defined, but exclusive
intellectual or commercial property of the Licensee, will be the
co-ownership of Licensor and Licensee and and each will
have the right to use such modifications,
corrections and enhancements.
________________
Certain
information on this page has been omitted and filed separately with
the Securities and Exchange Commission. Confidential treatment has
been requested with respect to the omitted portions.
2.5 Grant of License to Use
Marks . Subject to the terms and conditions of this
Agreement, Licensor hereby grants to Licensee, during the Term and
continuing indefinitely thereafter, a license to use
Licensor’s Marks in accordance with Section 6 of this
Agreement.
2.6 Distribution
Conditions . The licenses granted under Sections 2.1
and 2.2 are conditioned upon and subject to the following
restrictions:
(a) Licensee, Licensee’s customers and
Licensee’s Distributors shall not publish in any manner the
knowledge developed in KEPLER and/or KEPLER and any Derivative Work
thereof for use with non-Licensee Products and/or on any
non-Licensee supplied client viewer.
(b) Licensee may distribute and may permit a
distributor to distribute Licensor’s Products under Section
2.2 only if such distribution is subject to a written license
agreement with the Licensee customer, or at Licensee’s
option, a “shrinkwrap” or Internet “click”
form of agreement. All such license agreements must contain
provisions that:
(i) provide that the Licensee customer may only
use the Licensee Product for its own internal business purposes and
prohibit the Licensee customer from sub-licensing, transferring or
otherwise disclosing the Licensee Product or any portion thereof to
any other Person;
(ii) require the Licensee customer to retain
and/or affix to any copies of the Licensee Product those Marks or
other proprietary notices that appear on or in the original or as
designated by Licensor;
(iii) contain the agreement of the Licensee
customer not to reverse engineer or reverse compile or disassemble
the Licensee Product to attempt to gain access to the underlying
Source Code; and
(iv) Each Distributor must enter into a written
agreement with its supplier of Licensee Products (i.e., Licensee or
another Distributor) before any such Licensee Product is furnished
to that Distributor. Such agreement must include provisions
consistent with this Section and containing the relevant substance
of this Section and which are not contradicted by or in conflict
with other provisions in such agreement or any other agreement
relating to the Licensee Products.
(c) Licensee shall use its best efforts to
enforce all such license agreements with Distributors and Licensee
customers to the extent Licensee does so with its own products, but
at a minimum, Licensee shall use no less than commercially
reasonable efforts in enforcing such license agreements.
(d) Licensor, when distributing Licensees
Products, as defined under this Agreement, shall also abide by and
comply with the terms and conditions set forth in this
Section.
(e) Licensee shall send a copy of each
sub-distribution contract entered into by Licensee pursuant to this
license to Licensor within 3 (three) business days of execution of
such agreement.
________________
Certain
information on this page has been omitted and filed separately with
the Securities and Exchange Commission. Confidential treatment has
been requested with respect to the omitted portions.
2.7 Source Code Escrow and Release to
End-Users .
(a) Source Code Escrow with a Third Party Escrow
Agent, only when required as a condition of a large commercial
and/or governmental contract and only after written approval from
Licensor.
(i) To satisfy potential escrow requirements of
Licensee’s major customers, Licensee may escrow a copy of the
KEPLER Source Code with a single third party escrow agent located
in the United States that is mutually acceptable to Licensor and
Licensee. The terms of the escrow with the escrow agent shall be
mutually acceptable to Licensor, Licensee and the escrow
agent.
(ii) Licensee shall promptly notify Licensor of
the identity of any Licensee customers for which it wants to escrow
a Source Code copy of the Licensee Products,
(b) Release of Source Code to
End-Users.
(i) If Licensee becomes insolvent, or Licensor
becomes insolvent, is unwilling or unable, itself or through a
designated third party, to provide support services to Licensee
customers, then those Licensee customers who (1) currently have a
fully-paid support agreement with Licensee for Licensee Products,
and (2) upon licensing the Licensee Products, required Licensee to
escrow the Source Code of Licensee Products, may request that the
escrow agent release a copy of the Source Code of the Licensee
Products, including KEPLER and/or Derivative Products (as the case
may be), to such Licensee customer.
(ii) Upon receipt of such request, the escrow
agent will promptly notify Licensor of such request. Licensor will
have twenty (20) Business Days from the receipt of such request to,
in good faith, contest the release of the Source Code of the
Licensee Products, including KEPLER and/or Derivative products (as
the case may be), to the Licensee Customer. If Licensor contests
such release, then the Source Code of the Licensee Products,
including KEPLER and/or KEPLER (as the case may be), shall not be
released to the Licensee Customer until such dispute is
resolved.
(iii) If
Licensor does not contest such release within twenty (20) Business
Days of the receipt of the request to release the Source Code of
the Licensee Products, including KEPLER and/or Derivative products
(as the case may be), then the Source Code of the Licensee
Products, including KEPLER and/or Derivative products (as the case
may be), shall be released to the Licensee customer, and, upon such
release, the Licensee customer is hereby granted a limited,
non-exclusive, non-transferable perpetual license to use the Source
Code of the Licensee Products, including KEPLER and/or Derivative
products (as the case may be), solely for the maintenance and
support of its use of the Licensee Products as specified in its
license agreement with Licensee. The Licensee customer may not
distribute to any third party in any manner the Source Code of the
Licensee Products, including KEPLER and/or Derivative products (as
the case may be), or any portion thereof.
2.8 No Restrictions on Future
Development . Neither party shall be restricted from
developing products or functions for KEPLER or Derivative
products.
________________
Certain
information on this page has been omitted and filed separately with
the Securities and Exchange Commission. Confidential treatment has
been requested with respect to the omitted portions.