Channeling Agreement A Party: WEBZEN Inc. B Party: NHN Co., Ltd. Mar. 1, 2009
Exhibit
4.1
Channeling
Agreement
A
Party:
B
Party:
NHN
Co., Ltd.
Mar. 1,
2009
1
Sun Online
Channeling Agreement
WEBZEN Inc.
(hereinafter referred to as “A Party”) and NHN Co., Ltd.
(hereinafter referred to as “B Party”) have agreed as follows
concerning provision of game contents of an online game “Sun Online” (hereinafter referred to as
“this Game”) published by A Party
within Han Game Service (“Han Game”), an online game portal
operated by B Party. (hereinafter referred to as “this Agreement”)
Article 1 (Purpose
of Agreement)
“This Agreement’ is
executed to clarify rights and obligations of A Party and B Party required for
providing the users of B Party with this Game within Han Game operated by B
Party.
Article 2
(Definition of Terms)
Terms to be used in
this Agreement are defined as below and other terms that are not defined shall
be interpreted in accordance with general commercial practices.
1.
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“This Game”
refers to “Sun Online” that is an online game being served and
commercialized, of which publishing right has been legally acquired by A
Party.
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2.
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“Channeling
Service” refers to a service where subscription of and access to the game
directly served and operated by A Party can be made only through “Han
Game” of B Party.
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3.
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“Members”
refer to the subscribers of “Han Game” who use the game free of charge or
with charge through “Han Game”.
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4
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“Charged
Service” refers to profit type service where A Party imposes charge for
use of “this Game” on the members of B Party or sells items, etc. required
for the game through Channeling
Service.
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5.
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“Han Coin”
refers to a cash equivalent online merchandise coupon that the member of B
Party can use to purchase payment method of “this Game” (hereinafter
referred to as “Cash”) in order to use Charged Service of “this
Game”.
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6.
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“Exhaustion
Amount of Han Coin” refers to the total amount of Han Coin (including VAT)
used by the members of B Party to purchase “Cash” in order to use “this
Game” of A Party.
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7.
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“Han Coin
Handling Charge” refers to all expenses generated when B Party settles
“Exhaustion Amount of Han Coin” with A Party, of which rate shall be
determined in accordance with the standard established by B each year
reflecting actual costs.
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8.
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“Total Amount
of Exchange” refers to total amount of “Han Coin” exchanged for
“Cash”.
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9.
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“Han Coin
Exchange Revenue” refers to the amount the members of B Party have spent
to purchase items used for “this Game” or use other Charged Services using
the amount exchanged from “Han Coin” into
“Cash”.
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10.
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“CPA
Advertisement” refers to a reactive advertisement charged per action of
the user, which aims to provide the user with cash or item, etc. for
specified action of the user.
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11.
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“CPA
Advertisement Revenue” refers to sales generated from “CPA
Advertisement”.
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2
Article 3 (Scope of
Agreement)
Scope of “Channeling Service” of “this Game” provided by A Party to B
Party under this Agreement shall be as follows:
1. Service
Territory: Republic of Korea (for overseas, separate agreement will be
signed.)
2. Service URL:
xxx.xxxxxxx.xxx
(may be changed or added for services of the same management body)
Article 4
(Term)
“This Agreement”
shall be effective from the date of execution and valid for three years after
start of the Charged Service in the service territory.
Article 5
(Obligations of A Party)
1.
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A Party shall
properly provide B Party with required materials and contents to offer
“Channeling Service” of “this
Game”.
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2.
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A Party shall
optimize the service in accordance with technical policies of Han Game of
B Party (web launcher, operation, security tool, etc.) to offer
“Channeling Service” of “this Game”. Especially, A Party shall use
security tool recommended by B Party at its expenses in accordance with
security policies of B Party, and if not, A Party shall be responsible for
the security.
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3.
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In the course
of implementing works specified in Clause 2 of this Article, if A Party
requests B Party to do so, B Party may carry out selection and purchase of
hacking protection program on behalf of A Party or use its existing
program at its own discretion. In this case, required expenses shall be
borne by A Party.
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4.
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In the case
of Clause 3 of this Article, A Party shall pay B Party expenses in
accordance with the following
methods:
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(1)
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For expenses
generated from use of client hacking protection program before “Charged
Service” of “this Game”, B
Party shall request payment of relevant expenses to A Party each month and
A Party shall pay B Party the amount in cash until the 12th
day of the next month.
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(2)
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For expenses
generated from use of client hacking protection program after “Charged
Service” of “this Game”, B
Party shall deduct the amount from income share of A Party to be paid by B
Party to A Party in accordance with Article 13 of “this
Agreement”,
except as provided in Sub-clause 3 and
4.
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(3)
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In case the
income share of A Party to be paid by B Party to A Party in accordance
with Article 13 of“this
Agreement” is
less than expense from using hacking protection program, B Party shall
request payment of relevant expenses to A Party and A Party shall pay B
Party the amount in cash until the 12th
day of the next month.
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(4)
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In case B
Party cannot request the expense during the relevant month due to
accounting or other business problems, such expense may be accumulated and
billed in lump sum and B Party may decide the time to request through
discussion with A Party.
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(5)
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In the event
that “this Agreement” is terminated, A Party shall pay the expense to use
the hacking protection program before termination of the
agreement.
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3
(6)
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Settlement
amount of the expense and related process mentioned in this clause may be
changed in accordance with the terms and conditions of contract entered
into between B Party and the supplier of the hacking protection program
and policies of B Party. However, in the event of any change, B Party
shall notify A Party of it.
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5.
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AParty shall
actively cooperate with B Party in connection with QA (Quality Assurance),
etc. for security and certification of B Party for “Channeling Service”
and pass the criteria specified by B Party. If A Party fails to meet
conditions presented by B Party, B Party may decline to start “Channeling
Service” at its discretion or stop the “Channeling Service” even during
“Charged Service”.
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6.
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AParty shall
be responsible for service and operation of the game (including Channeling
Service) and retain required equipment and personnel for such service
(network/CDN, DB server, system engineers related to game and web server,
GM, web operator, etc.),
etc.
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7.
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Customer
services for the members (user inquiry handling, operation work, etc.)
shall be provided by A Party, and if private information of the members is
required for such services, A Party shall discuss with B Party to proceed
without raising any legal
problem.
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8.
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AParty shall
carry out customer services related to service of “this Game” on the site
of B Party, and detailed roles between both parties shall be determined in
accordance with guideline provided by A
Party.
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9.
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AParty shall
strive to provide the game stably for “Channeling Service” of B
Party except for natural disaster or other force majeure during
the term of agreement, and shall notify B Party of unavoidable suspension
due to regular inspection and technical need in
advance.
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10.
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AParty may
carry out upgrade and patch of the game at its
discretion.
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11.
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AParty shall
handle matters requiring registration, grade indication or approval and
license such as examination of the game at its expenses and
responsibilities, which are necessary for“Channeling Service” of
B Party, and ensure to acquire the grade of game discussed in
advance.
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12.
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AParty shall
perform its works without any discrimination between those games directly
operated by it and ”Channeling Service” games provided through Han Game of
B Party, and, in principle, carry out and manage upgrade, patch, in-game
event, etc. at the same time in both
cases.
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13.
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AParty shall
not provide direct competitors of “Han Game” of B Party in game business
(Net Marble, Pmang, Nexon, Xxxx, Yahoo, etc.) with “this Game” for the
similar purpose as the “Channeling Service” during the term of
Agreement.
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14.
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AParty shall
generally operate website establishment, design and operation works
for“this
Game” within B Party’s
site.
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15.
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AParty shall
be fully responsible for support and management of H/W such as DB server,
game server, web server, etc. and related S/W for operation of the
game.
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16.
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If private
information of the customers is provided to A Party by B Party, A Party
shall manage it with duty of care of good manager, and if there is any
problem occurred such as leak of private information due to breach of such
duty, A Party shall bear the subsequent responsibilities and indemnify the
damage generated from
it.
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17.
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In the event
that the third party infringes intellectual property right related to the
game, A Party shall handle the matter at its expenses promptly so as not
to make any obstacle to maintaining the
game.
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18.
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AParty shall
not infringe rights or obligations of the third party as a rightful person
concerning the game, and in the event that B Party is subject to any civil
or criminal lawsuit by the third party from breach of it, A Party shall
indemnify B Party at its expenses and
responsibilities.
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4
19.
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AParty shall
provide access right and all information required for security inspection
upon request of B Party for “Service” and in such case any damage
generated by B Party shall be compensated by B
Party.
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20.
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AParty shall
actively cooperate with B Party in connection with data collection for
general progression including operation and marketing for “this
Game”.
Detailed method shall be determined through mutual
discussion.
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21.
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AParty, as a
management body of “Service”, shall observe related laws and request of
the administrative authorities in connection with registration of
telemarketer, standard terms and conditions of user, handling of private
information, etc.
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Article 6
(Obligations of B Party)
1.
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B Party”
shall play a role as a channel provider so that ”Channeling
Service”can be properly
provided through “Han Game”.
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2.
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In order to
carry out obligation specified in the previous clause, B Party shall
perform QA (Quality Assurance) for security and certification before
providing “Channeling Service”. B Party may adjust schedule of the
Channeling Service in accordance with the results of QA
inspection.
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3.
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B Party shall
provide the members with “Channeling Service” stably during the term of
agreement except for unavoidable cases such as natural disaster, emergency
situations, etc. However, it is unavoidable to suspend the service due to
regular inspection and technical need, B Party shall notify A Party of it
in advance.
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4.
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A Party may
request access to information of members of B Party to provide proper
customer services and in such case B Party shall provide them promptly. In
this case, the information to be provided shall be limited to those
required to improve the games by reflecting the customers’ opinions and
provide more proper customer support in connection with use of “this
Game”.
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5.
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B Party shall
be responsible for customer support services concerning billing and cyber
money (Han Coin) of B Party.
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6.
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If the
Agreement is terminated, B Party shall strive for stable termination of
the service for a certain period of time considering convenience of the
members.
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Article 7
(Obligation to provide Information to each other)
1.
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B Party may
request A Party source and related materials of the game contents if it
determines that they are required to provide the
games.
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2.
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A Party may
read from B Party details of service provision resulting from services of
B Party.
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3.
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A Party and B
Party shall promptly notify the other party of address or contact point
change, and any damage generated from failure of such notice shall be
fully borne by the defaulting
party.
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Article 8
(Intellectual Property Right, etc.)
1.
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A Party shall
represent and warrant that it is the rightful entity having intellectual
property right in “this Game” and all of other rights to implement “this
Agreement”.
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2.
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B Party shall
represent and warrant that it is the rightful entity of the “Billing
System” provided by B Party.
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3.
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All DBs of
members’ information created from the “Channeling Service” shall be owned
by B Party. However, in the case of Paragraph 4 of Article 6, B Party may
provide A Party with required
information.
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5
4.
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If either
party is subject to civil or criminal lawsuit by the third party due to
breach of representations and warranties on this Article, the
defaulting part shall bear all of expenses and
responsibilities.
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Article 9
(Prohibition of Right Assignment)
A Party or B Party
shall not assign rights and obligations under “this Agreement” to the third
party without written consent of the other party.
Article 10 (Public
Relation, Marketing and Advertisement)
1.
|
B Party shall
conduct online public relation and marketing at its expenses after the
time of interoperation and stabilization of “this Game”. However, if A
Party does not provide B Party with data requested by B Party in
connection with user data collection activities for “this Game” specified
in Paragraph 20 of Article 5, B Party may decline to conduct marketing for
“this Game”.
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2.
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After signing
“this Agreement”, a channel that the customer may access to through
marketing activities of B Party and web search by “Naver” served by B
Party shall be “Han Game” of B
Party.
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3.
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If it is
required to access to the site operated by the other party for the purpose
of marketing, A Party and B Party shall decide by prior
discussion.
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4.
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A Party and B
Party may use BI, CI, and trademark, etc. of the other party for public
relation and marketing of “this Game” free of charge in accordance with
guideline of the other party after getting prior
consent.
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5.
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For media
promotion of “this Game”, A Party and B Party shall discuss in
advance.
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Article 11
(Contents Adjustment and Service Change)
If it is required
for proper progress of the Charged Service of B Party, A Party shall adjust
balancing and game contents within “this Game” and B Party may request
it.
Article 12 (Making
Charged Service, Billing, etc.)
1.
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“This Game”
of A Party finally aims to provide the members of B Party with “Charged
Service”.
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2.
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Charging
type, time and amount of “this Game” shall be decided through agreement
between A Party and B Party considering market level, etc. of charge for
each game.
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3.
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Use charge of
games under this Article shall be equivalently applied to the sites of A
Party and “Han Game” of B
Party.
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4.
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In order to
properly provide the members of B Party with the “Channeling Service”, B
Party may make organic interoperation with other contents within “Han
Game” of B Party, and such integration shall be decided through prior
agreement between A Party and B
Party.
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5.
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In order for
the members of B Party to use the Charged Services within “this Game”, B
Party shall establish a system to exchange “Han Coin” into “Cash” to be
used for “this Game”. A Party shall actively support all matters required
for establishment of B Party’s
system.
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6.
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A Party shall
allow the members of B Party to use “Cash” exchanged in accordance with
the previous clause in order to purchase items or use other charged
services on “this Game”.
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6
Article 13 (Objects
of Profit Sharing and Profit Sharing)
1.
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For the
“Channeling Service” provided by B Party under this Agreement, A Party
shall pay B Party 20 % of the Profit Sharing Amount (including VAT) from
the first month of charged service. Profit Sharing Amount shall be the sum
of “Total Amount of Exchange” and “CPA Advertisement Revenue” minus “Han
Coin Handling Charge” as expressed in equation
below.
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[Profit Sharing
Amount = Total Amount of Exchange + CPA Advertisement Revenue - Han Coin
Handling Charge]
2.
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In addition
to Clause 1 of this Article, A Party shall pay B Party “Han Coin Handling
Charge” for “Total Amount of Exchange” from the first month of charged
service.
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Article 14
(Criteria of Settlement)
1.
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A Party and B
Party shall not unduly delete, modify or add LOG information possessed by
each party.
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2.
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B Party shall
collect service results of contents of A Party by each service hour and
allow A Party to read them, and A Party may request B Party perusal of
detailed data of contents
provision.
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Article 15 (Method
of Payment)
1.
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A Party shall
notify B Party of base of calculation of sales revenue to be criteria of
profit sharing in connection with the amount specified in Article 13 in
writing or electronic document every month within two business days of the
next month after starting the “Charged Service” and request
settlement.
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2.
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If B Party
has no objection on details specified in Clause 1 above, B Party shall
send to A Party tax invoice for the amount to be paid to B Party through
profit sharing pursuant to Paragraph 1 of Article 13 and the one
corresponding to “Han Coin Handling Charge” pursuant to Paragraph 2 of
Article 13 after receiving notice of A Party and pay A Party balance
deducting the amount on the tax invoice from the “Total Amount of
Exchange” by the end of the next month after sending the tax
invoice.
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3.
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If B Party
has any objection on the details specified in Clause 1 above, settlement
amount shall be agreed by and between both parties. In case there is no
agreement until five business days after receiving notice by B Party, it
shall be processed on the basis of the amount specified in Clause 1 above
by applying the previous clause and the difference shall be reflected on
the settlement of the next
month.
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4.
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In case the
payment date mentioned in Clause 2, 3 or 4 of this Article is a holiday,
the payment date shall be the first business day immediately after the
date, respectively.
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5.
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Even though
“this Agreement” has been terminated, cancelled or has expired, settlement
obligation for the generated revenue shall be sincerely observed by both
parties. If the agreement has been cancelled in the middle of the month or
otherwise it is necessary, the settlement amount shall be calculated based
on the number of days.
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Article 16 (Right of
Termination)
1.
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If any
provision of this Agreement has been violated due to default of either
party, the other party may notice the defaulting party of the violation in
writing and terminate the agreement in writing when there is no correction
within forty five days.
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7
2.
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In the event
either party has any of the following causes, the other party may promptly
terminate this Agreement by giving the defaulting party written notice
without further notification.
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(1)
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When trade
suspension by the financial institution, dissolution, composition,
corporate reorganization, bankruptcy, etc. has been started or a similar
event has occurred for either
party;
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(2)
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When either
party has incurred crucial situation that blocks providing the service due
to material violation of law or social
trouble;
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(3)
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When it is
considered that this Agreement cannot be implemented or it is very
difficult to implement this Agreement due to provisional attachment,
provisional disposition, attachment, public sale, start of auction for the
property of either party that is required for this
Agreement;
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(4)
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When either
party has received order to cancel or suspend business from court or
supervising authority;
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(5)
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When A Party
fails to pass the criteria specified in Paragraph 5 of Article 5 or B
Party cannot provide “Channeling Service” due to stability
problem.
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3.
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In the event
that it is difficult to perform the agreement due to the natural disaster,
force majeure, etc., both parties may terminate this
Agreement.
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Article 17 (Effects
of Termination)
1.
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When either
party terminates this agreement, this agreement will not apply to
subsequent event.
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2.
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Termination
or cancellation of the agreement shall not have effect on the indemnity
claim.
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3.
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In the event
of termination or cancellation of this Agreement, B Party is allowed to
not return to A Party all of information including user information, which
is owned by B, except for intellectual properties such as copyright, etc.
that are owned by A Party.
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Article 18
(Indemnity)
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1. In the
event of termination pursuant to Paragraph 1 and 2 of Article 16, the
party making damage to the other party due to violation of agreement shall
indemnify the other party for the damage. Scope of indemnity shall be in
accordance with the commercial code and civil
code.
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2. In the
event of termination pursuant to Paragraph 3 of Article 16, the party
exercising termination right shall not demand implement of agreement and
indemnity against the other party.
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3. In
addition to the previous two clauses, in the event that any damage has
occurred on either party due to violation of this Agreement, the
defaulting party shall indemnify the other party for all of
damages.
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Article 19
(Obligation of Confidentiality)
1.
|
Either party
shall use the materials and information to be interchanged in connection
with this Agreement in order to accomplish only the purposes of this
Agreement and shall not provide or disclose them to the third party
without written consent of the other
party.
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2.
|
In the event
any damage has occurred on the other party due to violation of this
Article, the defaulting party shall indemnify the other party for all of
the damages.
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8
3.
|
This Article
shall be effective during the term of agreement and for one year after
termination of the agreement.
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Article 20
(Amendment of Agreement)
If it is required
to amend or complement part of this Agreement, it may be amended by the
agreement signed by A Party and B Party.
Article 21
(Principle of Good Faith)
A Party and B Party
shall recognize that all of services to be progressed by this Agreement are
joint business and cooperate with each other for application of this Agreement
and other matters with good faith.
Article 22
(Jurisdiction)
The Seoul Central
District Court shall have exclusive jurisdiction at the district court level
over all of disputes occurred between both parties in connection with this
Agreement.
Article 23
(Miscellaneous)
1.
|
In the event
that any dispute has occurred between A Party and B Party in connection
with this Agreement, it shall be, in principle, solved by mutual
discussion.
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2.
|
In the event
that parts of conditions or provisions of this Agreement lose effect,
become invalid or cannot be enforced, other provisions shall not be
influenced by them. However, such conditions and provisions shall be valid
and enforceable to the maximum extent permitted by the
laws.
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In Witness Whereof, both parties hereto
have prepared and signed two original copies of this Agreement to be executed,
of which each one copy shall be kept by each party,
respectively.
Mar. 1,
2009
A
Party
9th Fl. of
Daelim Acrotel, 000-0, Xxxxx-xxxx, Xxxxxxx-xx, Xxxxx
Xxx, Chang-geun/
Representative Director (Seal)
B
Party
NHN Co.,
Ltd.
9th Fl. of
Xxxxxxx Xxxxxxx Xxxx, #00-0, Xxxxxxx-xxxx, Xxxxxxx-xx, Seongnam-si,
Gyeonggi-do
Xxxx, Xxx-xxxxx/
Representative
Director (Seal)
9