VIDEO DISTRIBUTION AGREEMENTDistribution Agreement |
|
|
|
You are currently viewing: This Distribution Agreement involves
Northern Response International Limited | uKarma Corporation. RealDealDocs™ contains millions of easily searchable legal documents and clauses from top law firms. Search for free - click here. |
|
|
|
Search Distribution Agreement by:
VIDEO
DISTRIBUTION AGREEMENT
BUSINESS
TERMS SCHEDULES
|
1.
|
AGREEMENT
DATED AS OF:
|
September
25, 2007
|
|||
|
2.
|
PARTIES:
|
||||
|
uKarma:
|
uKarma
Corporation (a California corporation)
520
Broadway, Suite 350
Santa
Monica, CA 90401
|
||||
|
|
Northern
Response:
|
Northern
Response International Limited
18
Skagway Avenue
Toronto,
Ontario, M1M 3V1, Canada
|
|||
|
3.
|
TRADEMARKS:
|
uKarma,
Xflowsion, Triple Training, Calm Down Dog, Amazing Abs, Body Blast,
Dreams
Realized, Look Great Outside, Feel Great Inside, Mind Blowing Fitness
for
Every Body, The most fun you’ll ever have working out, ultimate cross
training for mind, body, and spirit.
|
|||
|
4.
|
THE
PROGRAMS:
|
||||
|
PROGRAMS:
|
Xflowsion
(Yoga/fitness video series), including the following “workouts:” Live in
Hollywood; Amazing Abs; Body Blast; Calm Down Dog; Dreams Realized
(audio
CD); and Anytime Anywhere (Audio CD). Programs may also include certain
printed content including the following: Real Meals Guidebook; and
Moves
and Grooves Fitness Guide.
|
||||
|
INFOMERCIALS:
30-minute (and shorter) audio-visual programming produced by uKarma
to
advertise, market, promote and sell the Programs by direct response
television advertising.
|
|
5.
|
TYPE
OF LICENSE:
i) exclusive right and license for Northern Response to broadcast
the
Infomercial and non-exclusive right to use the uKarma Marks and to
market,
distribute and sub-license the Licensed Works; ii) Exclusive right
and
license for Northern Response to market, distribute, sub-license
the
Programs, in any Home Video Formats through all channels of distribution
except as otherwise provided for herein; provided that uKarma can
accept
and fulfill orders worldwide through its owned and/or operated websites
(collectively, “uKarma’s Websites”) including but not limited to
www.xflowsion.com
and www.uKarma.com.
For purposes of this Agreement, “Home Video Formats” means all physical
home video formats whether now known or hereinafter devised, including
but
not limited to VHS, Digital VHS, HDTV-VHS, DVD, Blu-Ray, HD-DVD,
DVD-ROM,
CD-ROM, UMD and all other forms of physical home video programming,
but
excluding all forms of distribution via the Internet (including,
without
limitation, streaming, electronic sell-through and all other forms
of
digital distribution).
|
|||
i
INITIALS:
uKarma
_______
Northern
Response_______
|
6.
|
THE
USE OF THE UKARMA MARKS:
|
Non-exclusive
right and license to use the uKarma Marks in the Distribution and
Sale of
the Programs in the Territory, including but not limited to the use
of the
uKarama Marks in the Infomercial.
|
|||
|
|
|
|
|
|
|
|
7.
|
|
THE
TERRITORY:
|
|
The
world, excluding the United States, its territories, commonwealths
and
possessions.
|
|
|
|
|
|
|
|
|
|
8.
|
|
DEADLINE
DATES:
|
|
|
|
|
|
|
THE
TERM:
|
THE
COMMENCEMENT DATE: October 15, 2007
|
||
|
|
|
|
THE
EXPIRATION DATE: February 14, 2008
|
||
|
|
|
RENEWAL
TERMS:
The Term of this Agreement shall automatically renew for additional
four
(4) month periods unless uKarma provides Northern Response thirty
days
prior written notice of its desire to terminate the
Agreement.
|
||
|
|
|
|
||
|
9.
|
|
FEES:
Northern Response shall pay 50% (of the total amount due uKarma in
each
instance) in advance and 50% prior to pickup in US Dollars to uKarma,
via
wire transfer, the Wholesale Price for each Unit ordered as follows:
for
distribution in Canada, $16.50 and for distribution in the Territory
but
outside of Canada, $14.50. All Distribution Costs (or an estimate
thereof)
shall also be paid in advance with each Program Unit
order.
|
||
DISTRIBUTION
COSTS: All Distribution Costs shall be borne by Northern Response, or its
Affiliates, sub-distributors or sub-licensees. “Distribution
Costs”
shall
mean all costs incurred in connection with delivery of the Programs (and any
Units thereof); all costs incurred in connection with duplication of the
Programs for Northern Response (including without limitation, addition of the
alternative language audio tracks into the non-English language versions of
the
Programs); all costs of prints, costs of packing, transportation and insurance
from the country of origin to the country of distribution; custom duties,
alteration fees, sales, use, excise and franchise taxes, import taxes; all
costs
of subtitling or dubbing; promotional and publicity expenses including paid
advertising; and expenses in recovering debts from defaulting distributors.
“Units”
mean
units of the Programs manufactured in any Home Video Format. “Affiliates”
mean
any other company that directly, or indirectly through one or more
intermediaries, controls, is controlled by, or is under common control with
the
applicable Party hereunder.
| 10. |
BANK
INFORMATION FOR WIRE PAYMENT:
|
|
Account
Name:
Account
No.:
Bank
Address:
ACH/
Wire Routing Number:
|
ii
INITIALS:
uKarma
_______
Northern
Response_______
| 11. |
ADDRESS
FOR NOTICE:
|
| To uKarma: | uKarma Corporation | |
|
|
||
|
520
Broadway, Suite 350
Santa
Monica, CA 90401
Attn:
Bill Glaser
Ph:
310-998-8909
Fax:
310-861-0542
With
a copy to (which copy shall not constitute notice):
Mary
Innis
Loeb
& Loeb LLP
321
North Clark Street, Suite 2300
Chicago,
IL 60610
Ph:
312-464-3133
Fax:
312-803-2120
|
||
| To Northern Response: | Northern Response International Limited | |
|
18
Skagway Avenue
Toronto,
Ontario, M1M 3V1, Canada
Attn:
David Baldassi
Ph:
416-261-6699 (ext. 307)
Fax:
416-261-4159
e-mail:
david@nresponse.com
|
| 12. |
LAW
AND JURSIDCTION:
|
|||||
| GOVERNING LAW: | The laws of the State of California, USA. | |||||
| EXCLUSIVE JURISDICTION: | Arbitration before a retired judge on the Entertainment Panel of JAMS in Santa Monica, California. | |||||
iii
INITIALS:
uKarma
_______
Northern
Response_______
UKARMA
CORPORATION
(uKarma)
| By: | |||
| Its: | |||
| Date: | |||
|
NORTHERN RESPONSE INTERNATIONAL LIMITED
(Northern Response)
|
|||
| By: | |||
| Its: | |||
| Date: | |||
iv
INITIALS:
uKarma
_______
Northern
Response_______
VIDEO
DISTRIBUTION AGREEMENT
STANDARD
TERMS AND CONDITIONS
This
Video Distribution Agreement, by and between the parties described in Schedule
2
of the Business Terms attached hereto (“uKarma” and “Northern Response”), the
Standard Terms and Conditions, the Appendices and Exhibits and the Business
Terms (collectively, the “Agreement”), is made as of the date set forth in
Schedule 1 of the Business Terms (the “Effective Date”).
WHEREAS,
uKarma has certain rights in and to the trademarks set forth in Schedule 3
(collectively, the “uKarma Marks”);
WHEREAS,
uKarma and/or its Affiliates, also has certain rights, including copyright,
to
the Programs and certain other audio-visual programming and photographic and
digitized images provided to Northern Response pursuant to this Agreement
(collectively with the Infomercials and uKarma Marks, the “Licensed
Works”);
WHEREAS,
Northern Response recognizes that the uKarma Marks and the Licensed Works have
been used:
| a. |
in
the Programs produced, owned and distributed by
uKarma;
|
| b. |
in
advertising, publicity and home video productions and allied fields
by
uKarma; and
|
| c. |
in
promotional and advertising materials in diverse businesses by
uKarma.
|
WHEREAS,
Northern Response recognizes and acknowledges that the uKarma Marks are
well-known and recognized by members of the general public and the trade, and
are associated in the public mind exclusively with uKarma, and are designations
in which uKarma has acquired considerable and valuable goodwill.
NOW,
THEREFORE, in consideration of the mutual premises herein contained, and
intending to be bound by this Agreement, the parties agree as
follows:
| 1. |
GRANT
OF LICENSE.
|
| a. |
Grant.
Upon and subject to the terms and conditions hereinafter set forth,
uKarma
hereby grants to Northern Response, and Northern Response hereby accepts,
the right, license and privilege specified in Schedule
5
(with the right to sublicense as permitted hereunder) in the geographic
areas specified in Schedule
7
(the “Territory”).
Such right, license and privilege is hereinafter called the “License.”
The Programs shall be selected from time to time by mutual agreement
of
uKarma and Northern Response, but uKarma shall have the sole discretion
to
approve or disapprove each requested selection. Northern Response shall
bear uKarma’s cost of duplication and delivery of all Programs to Northern
Response or its Affiliates, sub-distributors or sub-licensees. In
addition, Northern Response shall produce and provide to uKarma (or
its
designee) dubbed and/or subtitled language tracks of all Programs not
in
the English language to be distributed hereunder. uKarma (or its designee)
shall be responsible for manufacturing and duplicating all such
alternative language Programs.
|
1
INITIALS:
uKarma
_______
Northern
Response_______
| b. |
In
connection with the License, uKarma hereby also grants to Northern
Response the following rights:
|
| i. |
To
publicize, advertise and exploit the rights granted to Northern Response
hereunder and to cause or permit others to do so, subject to the
provisions of this Agreement. In that regard, uKarma hereby grants
to
Northern Response solely for the purpose of advertising, publicizing
and
promoting the rights herein granted to Northern Response in the Programs,
subject to any restrictions or conditions by which uKarma is bound,
the
right: to publish or cause to be published synopses, summaries and
resumes
of the Programs in all advertising media; to use the Infomercials to
advertise and promote the sale of the Programs, provided that Northern
Response or its Affiliates, sub-distributors or sub-licensees shall
be
responsible for any language dubbing, alterations to conform to local
law
and payment of all fees for the Infomercials to run on local television;
to use the name, approved likeness and approved biography of any performer
rendering services in connection with such Programs and/or Infomercials;
to use the title of such Programs and/or Infomercials, music recorded
in
such Programs and artwork and design used in connection with such Programs
and/or Infomercials; provided, however, no use shall constitute a direct
or implied endorsement of any product or
service.
|
| ii. |
To
distribute the Programs including dubbed and subtitled versions of
the
Programs and Infomercials at Northern Response’s or its Affiliates’,
sub-distributors’ or sub-licensees’ sole cost and expense. uKarma shall
provide Northern Response with DVDs of the Programs for preparation
of the
dubbed and subtitled versions of the Programs. Northern Response shall
provide the dubbed and/or subtitled language tracks to uKarma. uKarma
shall approve or disapprove each dubbed or subtitled version within
a
reasonable period of time following uKarma’s receipt thereof, and
thereafter arrange for the manufacture and duplication of the required
Home Video Formats and deliver same to Northern Response. uKarma shall
provide masters of the Infomercials to Northern Response for preparation
of dubbed and subtitled versions and any other alterations required
for
distribution in the Territory. Northern Response shall provide the
dubbed
and/or subtitled versions of the Infomercials to uKarma for approval
within a reasonable period of time following uKarma’s receipt thereof.
|
2
INITIALS:
uKarma
_______
Northern
Response_______
| iii. |
The
right to associate appropriately the uKarma Marks with the Programs
and/or
Infomercials, but only for the following limited purposes: (A) to increase
sales of the Programs pursuant to this Agreement; (B) to identify uKarma
as exclusive owner of the Programs; (C) to enhance consumer awareness
of
the uKarma Marks and uKarma’s publications, videos, images, other content,
and talent; and (D) to increase uKarma’s goodwill and the value of the
uKarma Marks.
|
| c. |
Northern
Response may sublicense the rights granted under this Agreement only
to
third party distributors known to Northern Response as necessary to
exploit the rights granted under this Agreement; provided
that (i) each sublicensee must agree in writing to be bound by the
terms
of a separate Agreement to be mutually agreed to by both parties hereto
and the material terms of this Agreement must be incorporated into
each
agreement between Northern Response and its sublicensees) concerning
the
Licensed Works and name uKarma an express third party beneficiary thereof;
and (ii) a breach by such sublicensee of such agreement shall constitute
a
breach by Northern Response of this Agreement. Northern Response shall
be
responsible for all sublicenses granted pursuant to this Agreement
and
shall indemnify uKarma, consistent with Section
8
hereof, for all Losses caused by its sublicensees.
|
| d. |
uKarma
will at all times have unrestricted free access to all alternate language
tracks and dubbed versions of the Programs and Infomercials, advertising
and promotional materials, artwork and other materials created by Northern
Response pursuant to this Agreement. Northern Response will promptly
give
uKarma notice of each person who prepares any dubbed or subtitled tracks
for the Programs and Infomercials and of each laboratory or facility
where
the tracks are located. Promptly after completion of any dubbed or
subtitled version of the Programs and Infomercials, Northern Response
will
provide uKarma with immediate unrestricted free access to all dubbed
and
subtitled tracks. uKarma will immediately become the owner of the
copyright in all dubbed and subtitled tracks, subject to a non-exclusive
free license in favor of Northern Response to use such tracks during
the
Term solely for exploitation of the rights licensed hereunder. If such
ownership is not allowed under a law in the Territory, then Northern
Response will grant uKarma a non-exclusive free license to use such
dubbed
or subtitled tracks worldwide in perpetuity without
restriction.
|
| e. |
Subject
to Section
1.c.
hereof, in any permitted sublicense or other assignment of the rights
granted herein, Northern Response shall absorb all fees and costs of
its
sublicensees and/or assignee, such that there shall be no reduction
in the
sums otherwise payable to uKarma hereunder by reason of any sublicense
or
other assignment. Northern Response shall not enter into any arrangement
for the distribution or exploitation of the Programs outside of the
Territory.
|
3
INITIALS:
uKarma
_______
Northern
Response_______
| f. |
All
rights not specifically granted to Northern Response under this Agreement
are hereby reserved by uKarma for its use or disposition, and uKarma
may
exploit any such rights during the Term in the Territory. Northern
Response shall exploit the rights herein granted by uKarma diligently,
conscientiously and to the best of its ability to maximize revenues,
such
commitment being of the essence of this Agreement and a material
inducement to uKarma to enter into this
Agreement.
|
| g. |
Notwithstanding
Section
1.a.
above and the exclusive license specifically granted in this Agreement,
Northern Response agrees that uKarma may itself exploit some or all
of the
rights granted herein in the Territory but only to the extent that
English
language Home Video Formats are purchased directly by consumers in
the
Territory through uKarma’s Websites.
|
| h. |
Northern
Response hereby acknowledges the great value of the goodwill associated
with the uKarma Marks and the worldwide recognition of same and that
the
proprietary rights therein, and goodwill attached thereto, are solely
and
exclusively owned by uKarma and that the uKarma Marks and other words,
devices, designs and symbols have a secondary meaning that is firmly
associated in the minds of the general public exclusively with uKarma
and/or its Affiliates and related companies and their respective videos,
published material, products and other activities; and any additional
goodwill attached to the uKarma Marks, created through the use of such
Marks by Northern Response shall inure to the benefit of uKarma alone.
During and after the Term, Northern Response shall not itself and shall
not assist any person or entity to: (i) challenge the scope, validity,
or
enforceability of, or title to, any of the Licensed Works; (ii) do,
omit
to do or permit anything that is likely to diminish the rights of uKarma
in the Licensed Works or endanger the value or validity of the Licensed
Works or bring them into disrepute; (iii) register or seek to register
any
Licensed Works, whether as a trademark, legal entity name, Internet
domain
name, copyright or otherwise, or impair, threaten, block or cancel
any
application or registration therefor owned by uKarma or its designees;
(iv) edit, alter or otherwise use the uKarma Marks in any forms not
specifically approved in writing by uKarma, including without limitation
combining one or more uKarma Marks with other words or devices so as
to
create a unitary mark, combined mark, joint mark or co-branding scheme;
(v) do anything or fail to do anything that is likely to diminish the
rights of uKarma in the uKarma Marks or to impair any registration
of the
uKarma Marks or to endanger the value or validity of any of the uKarma
Marks or to bring any of the uKarma Marks to disrepute or to jeopardize
any regulatory or other relevant consents, permits or approvals relating
to any of the Programs; or (vi) use any of the uKarma Marks (or any
designation incorporating the uKarma Marks, or any designations similar
thereto or derived therefrom) in any form not approved in advance and
in
writing by uKarma. Northern Response shall execute and deliver registered
user trademark statements to uKarma as uKarma requests from time to
time.
Northern Response shall execute all papers and perform such other acts
as
uKarma reasonably requests to transfer to uKarma any ownership interest
in
and to any Licensed Works that Northern Response acquires notwithstanding
the provisions of this Agreement.
|
4
INITIALS:
uKarma
_______
Northern
Response_______
| i. |
Alteration
of Programs and/or Infomercials.
|
| i. |
Northern
Response shall distribute the Programs and use the Infomercials in
their
entirety as delivered, and Northern Response agrees not to itself,
nor
will it authorize or permit any third party to, cut, edit, change,
alter,
modify or add to prints of the Programs and Infomercials. Northern
Response or any of its permitted sublicensees shall however edit prints
of
the Programs and Infomercials solely to meet governmental requirements
(including, without limitation, advertising and other consumer protection
laws and regulations); but under no circumstances shall Northern Response
delete, edit, alter or reposition the main or end titles or any part
thereof or the copyright notice or the credits. In addition, Northern
Response can edit infomercials for pricing and offer changes. voice-over
in terms of language and script, local 800 numbers, and other related
edits for the purpose of finding the ideal marketing language for
particular markets within the Territory. In the event that any edits
shall
be required to be made as herein provided, Northern Response shall
give
uKarma reasonable prior notice thereof and all such alterations shall
require the prior approval of uKarma. It is expressly understood and
agreed that uKarma shall have no responsibility whatsoever for, and
shall
not be liable in any way to Northern Response (or any of its permitted
sublicensees) because of, any act of any regulatory board or other
governmental authority in the Territory save and except for a breach
of
uKarma’s representations and warranties in section 7.a. Any breach of the
terms of this paragraph (save and except for a breach caused by uKarma’s
breach of its representations and warranties) shall constitute a material
default entitling uKarma at its election and in addition to any other
rights or remedies available to uKarma and without releasing or
discharging Northern Response from any liability hereunder, to terminate
this Agreement in whole or in part.
|
| ii. |
Compliance
with all laws.
Northern Response or its sublicensees shall include all labels and
notices
required by applicable local laws and regulations on the Programs and/or
Infomercials. Northern Response shall at all times comply with all
laws,
rules, regulations and ordinances applicable to its performance of
and
actions taken in connection with this Agreement. Northern Response
will
not violate any applicable material federal, state or local law or
regulation of any country in which the distribution of the Programs
and
use of the Infomercials takes place. It is solely Northern Response’s (or
any of its permitted sublicensees’) responsibility to determine the law
and applicable standards and whether Northern Response’s distribution or
the Programs and use of the Infomercials in any country within the
Territory will violate the applicable laws and
standards.
|
5
INITIALS:
uKarma
_______
Northern
Response_______
| j. |
Publicity
and Promotional Materials; Videos and Packaging for
Videos.
|
| i. |
uKarma
shall have the right to approve all advertising and promotional materials
in any media whatsoever in connection with the exploitation of any
rights
granted hereunder and the distribution of the Programs, as well as
(without limiting the foregoing) the packaging used in connection with
videos of the Programs prepared by or under the authority of Northern
Response (collectively the “Promotional Materials”), including, without
limitation, the concept and design therefor and all copy, photographs,
stills and illustrations. Upon written request, Northern Response shall
furnish all such Promotional Materials to uKarma for inspection and
approval at various stages of preparation when reasonably possible,
but in
no event shall any such Promotional Materials be utilized or released
by
Northern Response unless and until uKarma shall have approved same.
uKarma
agrees to approve or disapprove each submission of Promotional Materials
within a reasonable period of time following uKarma’s receipt thereof;
provided, however, any submission not specifically approved by uKarma
shall be deemed disapproved. Without limitation of the foregoing, to
the
extent uKarma delivers to Northern Response advertising and promotional
materials, Northern Response shall not be required to submit same to
uKarma for approval in accordance with the foregoing, provided Northern
Response makes no changes thereto (other than changing the copy from
English to the native language of the applicable country in the
Territory).
|
| ii. |
Northern
Response shall have the right, subject to the provisions hereof,
including, without limitation, uKarma’s approval rights set forth in
subparagraph 1.j.i. above, to use film or video clips of no more than
sixty (60) seconds in duration from the Programs and uKarma’s name solely
to advertise and promote the distribution of the Programs by Northern
Response, provided no such use may constitute a direct or implied
endorsement of any product or service. Without limitation of the
foregoing, to the extent uKarma delivers to Northern Response one or
more
promotional videos, Northern Response shall not be required to submit
same
to uKarma for approval in accordance with subparagraph 1.j.i. above
provided Northern Response makes no changes
thereto.
|
6
INITIALS:
uKarma
_______
Northern
Response_______
| k. |
Delivery.
|
| i. |
uKarma
will make (Northern Response acknowledges receipt of certain Materials
prior to this Agreement) the Materials set forth on Exhibit
A
available to Northern Response on or before fifteen (15) days following
Commencement Date and receipt by uKarma of Northern Response’s written
request for the Delivery Materials. uKarma will deliver the Delivery
Materials to Northern Response or to a carrier designated by written
notice by Northern Response, which shall be deemed to be delivery
hereunder and uKarma shall not be liable for any default or action
taken
or default made in delivery by any other party. The cost of delivering
all
Delivery Materials shall be paid by Northern Response. All Delivery
Materials shall remain the property of uKarma, subject only to the
right
of Northern Response to make use thereof in accordance with the terms
hereof.
|
| ii. |
Northern
Response shall, within ten (10) days of receipt of the Delivery Materials,
provide notice to uKarma in writing if the Delivery Materials, or any
part
thereof, are defective, damaged or incomplete. Any failure by Northern
Response to deliver such written notification as aforesaid shall be
deemed
to be acceptance by Northern Response of such Delivery Materials. In
the
event the Delivery Materials, or any part thereof, are defective or
incomplete, uKarma shall replace such defective, damaged or incomplete
materials within twenty (20) days of uKarma’s receipt of the
aforementioned written notification, such twenty (20) day replacement
time
not to include the time it takes for
shipping.
|
| iii. |
Northern
Response hereby agrees, at uKarma’s expense, to return to uKarma at the
address set out in the Schedule
2,
or such other place as uKarma may designate by notice in writing as
provided herein, all Delivery Materials and all other material associated
with the Programs delivered to and/or created by Northern Response
within
ten (10) days after the earlier of the expiration or termination of
the
Term, in the same condition (reasonable wear and tear excepted) as
such
Delivery Materials and other materials were delivered to Northern
Response.
|
| iv. |
Northern
Response shall take all necessary precautions to safeguard and to prevent
any unauthorized duplication of the Delivery Materials and any and
all
copies, prints and versions thereof.
|
7
INITIALS:
uKarma
_______
Northern
Response_______
| 2. |
TERRITORY.
|
As
concerns geographic areas within the Territory that are not part of the European
Union [as constituted on of the Effective Date of this Agreement] (“EU”),
Section
2.a.
applies
and Sections
2.b. and 2.c.
do not
apply. As concerns geographic areas within the Territory that are part of the
EU, Section
2.a.
does not
apply and Sections
2.b. and 2.c.
do
apply. The remainder of Section
2






