Exhibit 10.2
Trademark License Of The Test Drive Franchise
November 8, 2007
The
following terms and conditions establish the agreement (the
“License”) between Infogrames Entertainment S.A.
(“Licensee”) and Atari, Inc. (“Licensor”)
with respect to the Franchise (as defined below) until such time as
superseded by the long-form agreement with respect to the subject
matter hereof that is contemplated by the parties.
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1.
Franchise:
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“Franchise” collectively
shall mean the series of interactive computer and video games known
as “ Test Drive ” and “Test Drive
Unlimited” (including, but not limited to, all written
expressions of the Licensor-published retail and other versions of
such games, expansion packs, add-on products, and manuals,
including, without limitation, as the foregoing are set forth on
Exhibit A hereto (the Catalogue Titles”), subject
to any license limitations or restrictions thereon (which shall be
handled in accordance with Section 7 of this License), and all
intellectual property and proprietary rights owned or controlled by
Licensor therein, including, without limitation, all
programmers’ notes and development tools used to develop any
such games, source code and object code of such games, copyrights,
moral rights, inventions, patents, patent applications, trade
secrets, design rights, domain names, logos, trademarks, service
marks, and trade names owned or controlled by Licensor, and
specifically including, but not limited to, those rights and
elements (trademark registrations and applications, copyright
registrations and applications, and domain names,) which are listed
on Exhibit A1 hereto. Exhibit A includes
Exhibit A1 and Exhibit A2 . Exhibit A1
includes all of the elements of the Franchise that are owned or
controlled by Licensor. All of the elements of the Franchise not
owned or controlled by Licensor are listed in
Exhibit A2 . |
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2. Licensed
Products:
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The products set forth in
Exhibit B hereto |
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3.
Territory:
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Worldwide |
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4. Effective
Date:
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November 8, 2007 |
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5.
Term:
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“Term” shall mean the
seven (7) year period commencing on the Effective Date.
Licensee’s rights are exclusive during the Term. Upon the
expiration or earlier termination of the Term, Licensee shall have
a non-exclusive, six (6) month sell-off period.
Notwithstanding the fact that Licensee’s rights are exclusive
during the Term, commencing on the sixth (6 th ) anniversary
of the Effective Date, Licensor may meet with third parties that
desire to exploit Licensed Products incorporating, based on, or
otherwise derived from any element(s) of the Franchise and grant
such third parties licenses therein; provided that Licensor shall
not grant any such third parties a right or license to publish,
promote, market, advertise, |
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distribute, and otherwise exploit
(other than the right to develop or manufacture) Licensed Products
incorporating, based on, or otherwise derived from any element(s)
of the Franchise prior to the expiration or earlier termination of
the Term. Notwithstanding the foregoing, commencing on the sixth (6
th )
anniversary of the Effective Date, Licensor may take all other
actions necessary to be in a position to publish, promote, market,
advertise, distribute, and otherwise exploit the Franchise upon the
expiration or earlier termination of the Term provided that all
such actions must be conducted on a confidential, non-public basis
and kept out of the public domain. |
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6. Nature of
license:
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Exclusive |
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7.
License
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Subject to receipt by Licensor of the
Royalty Advance described below, and subject to the exceptions and
restrictions expressly set forth in this License, Licensor hereby
grants to Licensee the exclusive (even as to Licensor) right and
license, under Licensor’s trademark rights, to create,
develop, produce, publish, promote, market, advertise, manufacture,
distribute, and otherwise exploit, during the Term, Licensed
Products incorporating, based on, or otherwise derived from any
element(s) of the Franchise. With respect to any third-party
properties included in games or otherwise that are part of the
Franchise (including, by way of illustration but not limited to,
vehicle names and likenesses, music, actor name and likenesses, and
third party software tools) that are listed on
Exhibit A2 , Licensee acknowledges that such properties
are not part of the license grant hereunder. Licensor shall
transfer or sublicense all licenses executed with such third
parties which are transferable or sublicensable provided that any
such transfer or sublicense does not impair Licensor’s
ability to publish any of the Catalog Titles. However, Licensor
shall not object to or prevent Licensee from licensing such
materials from any such third parties (including, but not limited
to, the waiving of exclusivity rights, if any) and shall, at
Licensee’s request, offer reasonable assistance in
facilitating any such third party licensing (including, but not
limited to, offering introductions, contacts, and copies of third
party contracts where not prohibited by confidentiality
provisions). Additionally, Licensor shall provide a copy of any
other documentation, including, but not limited to, relevant
correspondences and file memorandums, bills, notices of breaches,
disputes, that are material to the License in order to inform
Licensee of the status of such contractual relationships between
Licensor and such third parties. |
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No later than five (5) days
after the Effective Date, Licensor shall deliver or otherwise make
available to Licensee all of the items set forth on
Exhibit D and Exhibit D1 hereto. |
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8. Reserved
Rights:
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Except for the Licensed Products
created by or on behalf of Licensee, Licensor hereby reserves the
sole and exclusive ownership of the Franchise. Subject to the
distribution agreement referenced |
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below in Section 16 and
notwithstanding the exclusive license grant described in
Section 7, Licensor reserves the exclusive right to continue
to distribute during the Term all of the Catalog Titles released
prior to the Effective Date. This license is also subject to the
existing licenses specified in Exhibit C hereto and to
existing licenses relating to the Franchise granted by Licensee or
its affiliates (other than Licensor and Licensor’s
subsidiaries). All rights not expressly granted in this License are
reserved by Licensor. As between Licensor and Licensee, Licensee
shall be sole and exclusive owner of the Licensed Products created
by or on behalf of Licensee excluding those elements or rights
contained therein that are (x) in a Catalog Title and owned by
Licensor or a third party or (y) set forth in
Exhibit A . Except for Licensee’s ownership of
the Licensed Products created by or on behalf of Licensee:
(a) nothing contained in this License shall be construed as an
assignment or grant to Licensee of any ownership right in or to the
Franchise, or any other right, title, or interest in or to the
Franchise, except as expressly set forth herein; (b) all uses
of the Franchise shall inure to the benefit of Licensor; and
(c) Licensee recognizes the value of the good will associated
with the Franchise and acknowledges that the Franchise, and all
rights therein and the good will pertaining thereto, belong
exclusively to Licensor. |
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9. Wireless
Platform
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Notwithstanding the license grant
described in Section 7 above, Licensee’s right with
respect to Licensed Products playable on wireless devices,
including, but not limited to, personal digital assistants and
mobile, cell and satellite phones (the “Wireless
Platform”) is limited, during the two (2) year period
following the Effective Date, to the right to sublicense such right
to an appropriate and qualified third party wireless game publisher
on reasonable market terms. Licensee shall enter into such
sublicense and cause the first Wireless Platform Licensed Product
to be released in all major markets (i.e., United States and the
major countries of the European Union) not later than six months
after release of TDU2 (as hereinafter defined). Failure by Licensee
to timely satisfy this commitment shall result in a reversion to
Licensor of all rights with respect to Licensed Products on the
Wireless Platform. |
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After the expiration of the two year
period commencing on the Effective Date, Licensee may, with respect
to Licensed Products playable on the Wireless Platform, either
sublicense its right to an appropriate and qualified third party
wireless game publisher on reasonable market terms and with no
obligation as to the markets of release, or publish itself, or
together with an appropriate and qualified third party partner,
such Licensed Products. |
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10. Advance
Royalty:
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Licensee shall pay to Licensor a
non-refundable fully recoupable advance against Royalties otherwise
payable hereunder in the amount of Four Million Dollars (USD)
($4,000,000.00) (the “Advance Royalty”). The Advance
Royalty shall be paid to Licensor within 5 (five) business
days after signature of this License. The |
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Advance Royalty shall accrue interest
at a yearly rate of fifteen percent (15%) throughout the Term (the
Advance Royalty, as increased by interest, compounded annually, the
“Cumulative Advance Amount”). The Cumulative Advance
Amount shall be fully recoupable by Licensee from Royalties earned
by and otherwise due to Licensor as per this License.
Notwithstanding anything to the contrary set forth herein, the
Licensor shall be required to repay any unrecouped portion of the
Cumulative Advance Payment as part of the Liquidated Damages (as
such term is defined in Section 21). |
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11.
Royalties:
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Licensee shall pay Licensor a base
royalty rate of 7.2% of Net Revenue actually received by Licensee
from the sale of the Licensed Products created by or on behalf of
Licensee. |
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Notwithstanding the foregoing,
Licensee shall pay to Licensor, in lieu of the foregoing royalties,
a royalty on Net Revenue actually received by Licensee from the
exploitation of Licensed Products on the Wireless Platform created
by or on behalf of its sublicensees in the amount of forty percent
(40%) of Net Revenue. |
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12. Net
Revenue :
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All revenue received in connection
with Licensed Products created by or on behalf of Licensee or its
sublicensees less: (a) Chargebacks (as defined below) incurred by
Licensee; (b) freight, taxes, insurance, duties, customs and
brokerage fees incurred by Licensee; and (c) in the case of
sublicenseing, agency fees, IP registration and protection and
enforcement costs. “Chargebacks” are defined as price
protections, returns, co-op, MDF and other customary deductions and
discounts, taken or granted by Licensee to its customers
specifically in connection with Licensed Products created by or on
behalf of Licensee or its sublicensees, plus, except with respect
to sublicensing revenue, an additional three percent (3%) of gross
receipts deducted in order to reflect retailer-level deductions
taken for early payment, volume discounts, and similar items, but
excluding marketing expenses. |
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13. Performance
Clause:
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(A) Release Commitment .
Licensee shall develop (and/or have developed) and commercially
release (and/or have commercially released) in all major markets
(i.e., United States and the major countries of the European
Union): (i) one (1) interactive software game based on the
Franchise (“TDU2”) for at least one Major Platform (as
defined below) and the PC Platform within twenty (20) months
of the Effective Date; and (ii) at least one additional
interactive software game based on the Franchise
(“TDU3”) for at least one Major Platform and the PC
Platform within 60 months of the Effective Date. A
“Major Platform” shall mean Xbox 360, PS3, Wii, or the
successors to any of the foregoing. Each of the two
(2) above-mentioned interactive software games satisfying the
minimum commitment must be a new stand-alone game and not a port,
expansion pack or episodic content. |
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(B) Distribution
Commitment. Licensee shall make and maintain commercially
reasonable arrangements for the manufacture, distribution, sale and
timely delivery of sufficient quantities of each Licensed Product
to distributors and retailers in all major markets (i.e., United
States and the major countries of the European Union) to meet the
demands of the marketplace, and its obligations to distributors and
retailers consistent with commercially sound business
practices. |
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14.
Premiums
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No license is granted for the
manufacture, sale or distribution of Licensed Products whose
purpose is to be used exclusively as promotional items, in
“advergaming,” or as “Premiums,” meaning
any Licensed Products used exclusively for the purposes of
increasing the sale of another item; promoting or publicizing any
product or service; fundraising or as giveaways to motivate a sales
force, merchant, consumer or any other person to perform a specific
act; or acting as a tie-in. " |
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15. Product
Information/Quality
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Licensee shall provide to Licensor,
on an informational basis only, the game design and the final
version of each Licensed Products created by or on behalf of
Licensee or its sublicensees, as well as the contemplated marketing
plans of said Licensed Products. Licensor shall inform Licensee in
writing, with detailed comments and explanations of such comments
within ten (10) business days of receipt of the submission by
Licensee. Licensee will consider such comments and explanations
that are timely submitted to it in writing. Licensor and Licensee
representatives shall engage in one or more pre-production meetings
for each Licensed Product. |
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The Licensed Products published by
Licensee shall be of high quality and at least equivalent quality
to the Catalog Title entitled “Test Drive Unlimited”
after accounting for disparities in quality that exist due to
inherent limitations in certain Platforms (e.g., the small screen
size of mobile devices). All such Licensed Products shall include a
proper trademark and/or copyright notices indicating
Licensor’s ownership in the elements and rights licensed to
Licensee under this License and contained in any Licensed Products
published by Licensee in a form to be provided by Licensor,
provided that the failure to include any such notice shall not be
deemed to be a material breach of this License by Licensee where
Licensee’s endeavors to promptly and prospectively correct
such error. |
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16. Distribution
of Catalog Titles:
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For the duration of the present
License, Licensor hereby grants to Licensee the exclusive right to
distribute throughout the Territory (excluding the US, Canada,
Mexico and their possessions) all the Catalog Titles. The terms and
conditions of such distribution by Licensee will be the same as the
existing ones in the distribution agreement dated December 16,
1999 between Licensee and Licensor (the “ Distribution
Agreement ”). Nothing in this License shall |
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affect the rights and obligations of
Licensor and Licensee under the Distribution Agreement, the terms
of which shall remain in full force and effect. |
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17.
Warranties:
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Licensor warrants and represents
that: |
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- it has power and authority to enter
into this License and that it has not entered and shall not enter
into any other agreement that restricts or impairs, or could
restrict or impair its ability to carry out in whole or in part the
provisions of this License and the rights granted herein; |
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- it is the sole and unconditional
owner of all right, title and interest in and to those elements and
rights of the Franchise listed on Exhibit A1; |
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- except as otherwise expressly set
forth on Exhibit A2, it was granted all the exploitation
rights necessary to use those elements and rights of the Franchise
in the manner in which the Franchise was exploited (other than by
Licensee or Eden Studios) immediately prior to the Effective Date
and has the authority to make the grant specified in Section 7
hereof; |
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- except as otherwise expressly set
forth on Exhibit A2, it has obtained all the necessary
consents to make the grant of rights covered by this License
including, without limitation, from any persons performing services
or granting rights in connection with the Franchise and that
Licensee shall not be responsible for any report, charge, fee,
royalty or any other payment to any person or entity in connection
with the exploitation of the rights granted hereunder; |
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- the granting of the rights granted
hereunder does not and will not violate or otherwise constitute a
material breach of the terms and conditions of any other agreement
entered into by Licensor that has not otherwise been waived; |
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- to Licensor’s Knowledge (as
hereinafter defined), other than as set forth on Exhibit A1,
there are no current or threatened claims, lawsuits, proceedings
and/or other judicial or government actions anywhere in the world
concerning the scope, validity, enforceability, ownership,
infringement, misappropriation, use or misuse of any of the rights
and/or licenses granted to Licensee under this License. “
Licensor’s Knowledge ” means the actual
knowledge of Licensor after reasonable inquiry of the employees of
Licensor at the level of vice president or higher, including,
without limitation, Licensor’s officers; |
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- the exercise by Licensee or any of
its affiliates, subsidiaries, directors, representatives, employees
and agents of the rights granted hereunder does not and shall not
infringe, misappropriate or otherwise violate any third
party’s intellectual property or proprietary rights; |
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- it shall not act, nor cause any
third party to act, in such manner as to disturb or interrup |
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