LICENSE AGREEMENT
LICENSE AGREEMENT, dated as of September 10, 2008 (the "Commencement
Date"), by and between J-NET GLOBAL INDEXES, LLC ("J-NET"), a New York limited
liability company, having an office at 000 Xxxxx Xxxxxx, 0xx Xxxxx, Xxx Xxxx,
Xxx Xxxx 00000, and XXX XXXXXX FUNDS INC. ("Licensee"), a Delaware corporation,
having an office at 000 Xxxxx Xxxxxx, Xxx Xxxx, Xxx Xxxx 00000.
WHEREAS, J-NET compiles, calculates, maintains and owns rights in and
to a number of index(es) of the prices of various securities of companies,
listed hereto in Exhibit A, and to the proprietary data therein contained (such
rights being hereinafter individually and collectively referred to as the "J-NET
Index(es)"); and
WHEREAS, J-NET uses in commerce and owns trade name and service xxxx
rights to the designations "J-NET Global Indexes, LLCSM", "Xxxxxx Water
IndexSM", "Xxxxxx Water Tech IndexSM", "Xxxxxx Water Works IndexSM", in
connection with the J-NET Index(es) (such rights being hereinafter individually
and collectively referred to as the "J-NET Marks"); and
WHEREAS, Licensee and any Affiliate companies of Licensee (as provided
in Subsection 12(a) hereof) wish to use the J-NET Index(es) as a component of
the product or products described in Exhibit B attached hereto and made a part
hereof (individually and collectively referred to as the "Product(s)"); and
WHEREAS, Licensee wishes to use the J-NET Marks in connection with the
issuance, marketing and/or promotion of the Product(s) and in connection with
making disclosure about the Product(s) under applicable law, rules and
regulations in order to indicate that J-NET is the source of the J-NET
Index(es); and
WHEREAS, Licensee wishes to obtain J-NET's authorization to use the
J-NET Index(es) and the J-NET Marks in connection with the Product(s) pursuant
to the terms and conditions hereinafter set forth.
NOW, THEREFORE, the parties hereto agree as follows:
1. Grant of License.
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(a) Subject to the terms and conditions of this Agreement, J-NET hereby grants
to Licensee a non-transferable, non-exclusive license in the U.S. (i) to use the
J-NET Index(es) as a component of the Product(s) to be marketed and/or promoted
by Licensee and (ii) to use and refer to the J-NET Marks in connection with the
distribution, marketing and promotion of the Product(s) (including in the name
of the Product(s)) and in connection with making such disclosure about the
Product(s) as Licensee deems necessary or desirable under any applicable law,
rules, regulations or provisions of this Agreement, but, in each case, only to
the extent necessary to indicate the source of the J-NET Index(es). Each of the
J-NET Marks shall be used in its entirety. It is expressly agreed and understood
by Licensee that no rights to use the J-NET Index(es) and the J-NET Marks are
granted hereunder other than those specifically described and expressly granted
herein.
(b) J-NET agrees that no person or entity (other than Licensee) shall need to
obtain a license from J-NET with respect to the Product(s). The license herein
granted shall not transfer to Licensee any legal or beneficial property rights
whatsoever to the J-NET Marks or the goodwill now associated or which will
become associated therewith.
(c) Except as provided in Section 12 of this Agreement, no sublicensing of
Licensee's rights hereunder, even partial, shall occur, without the prior
written consent of J-NET, which consent may be granted or withheld in J-NET's
sole and absolute discretion.
(d) If in the future Licensee wishes to use the J-NET Index(es) and/or J-NET
Marks as the basis for an investment fund or other product or vehicle that is
different than the Product(s), any such use shall be subject to a separate
license from J-NET that is reflected in a written amendment or addendum to this
Agreement, or in a separate written agreement between the parties on terms
mutually agreed on by the parties.
2. Term.
----
Unless terminated earlier pursuant to Section 4 hereof, the term of
this Agreement shall commence on the Commencement Date and shall continue in
effect thereafter for a period of two (2) years from the date hereof.
Thereafter, it shall automatically renew for successive renewal terms of one (1)
year each, unless Licensee provides to J-NET at least sixty (60) days prior
written notice of its intention not to renew this Agreement effective upon
expiration of the then-current term or renewal term.
3. License Fees.
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(a) Licensee shall pay to J-NET the license fees ("License Fees") specified and
provide the data called for in Exhibit C, attached hereto and made a part
hereof.
(b) During the term of this Agreement and for a period of one (1) year after its
termination, J-NET shall have the right once per year, during normal business
hours and upon reasonable notice to Licensee, to examine or audit on a
confidential basis the relevant books, records and all other documents and
materials in the possession or under the control of Licensee with respect to the
subject matter and terms of this Agreement, pertaining to the prior year, and
shall have free and full access thereto and permission to make copies and/or
extracts therefrom in order to determine whether License Fees have been
accurately calculated. The costs of such audit shall be borne by J-NET.
4. Termination.
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(a) At any time during the term of this Agreement, either party may give the
other party thirty (30) days prior written notice of termination if the
terminating party believes in good faith that material damage or harm is
occurring to the reputation or goodwill of that party by reason of its continued
performance hereunder, and such notice shall be effective on the date of such
termination, unless the other party shall correct the condition causing such
damage or harm within the notice period.
(b) In the case of breach of any of the material terms or conditions of this
Agreement by either party, the other party may terminate this Agreement by
giving thirty (30) days prior written notice of its intent to terminate, and
such notice shall be effective on the date specified therein for such
termination unless the breaching party shall correct such breach within the
notice period.
(c) Termination of this Agreement and the license herein granted shall be
without prejudice to any rights or remedies which J-NET may otherwise have
against Licensee. The exercise or failure to exercise the aforementioned right
of termination shall in no way be considered a waiver by J-NET of any of its
legal rights and remedies.
(d) (i) J-NET shall have the right, in its sole discretion, to cease compilation
and publication of the J-NET Index(es) and, in such event, to terminate this
Agreement if J-NET does not offer a replacement or substitute J-NET Index. In
the event that J-NET intends to discontinue the J-NET Index(es), J-NET shall use
commercially reasonable efforts to give Licensee at least sixty (60) days
written notice prior to such discontinuance, which notice shall specify whether
a replacement or substitute J-NET Index will be made available.
(ii) Licensee shall have the option hereunder within sixty (60) days after
receiving such written notice from J-NET to notify J-NET in writing of its
intent to use the replacement or substitute J-NET Index, if any, under the terms
of this Agreement. In the event that Licensee does not exercise such option or
no substitute or replacement J-NET Index is made available, this Agreement shall
be terminated as of the date specified in the J-NET notice and the License Fees
to the date of such termination shall be computed as provided in Subsection
4(g).
(e) Licensee may terminate this Agreement upon sixty (60) days (or upon such
lesser period of time if required pursuant to a court order) prior written
notice to J-NET if (i) Licensee is informed of the final adoption of any
legislation or regulation or the issuance of any interpretation that in
Licensee's reasonable judgment materially impairs Licensee's ability to market
and/or promote the Product(s); (ii) any material litigation or proceeding of any
kind regarding the Product(s) is threatened or commenced; or (iii) Licensee
elects to terminate the public offering or other distribution of the Product(s),
as may be applicable. In such event the License Fees to the date of such
termination shall be computed as provided in Subsection 4(g).
(f) J-NET may terminate this Agreement upon sixty (60) days (or upon such lesser
period of time if required pursuant to a court order) prior written notice to
Licensee if (i) J-NET is informed of the final adoption of any legislation or
regulation or the issuance of any interpretation that in J-NET's reasonable
judgment materially impairs J-NET's ability to license and provide the J-NET
Index(es) and J-NET Marks under this Agreement in connection with such
Product(s); or (ii) any litigation or proceeding is threatened or commenced and
J-NET reasonably believes that such litigation or proceeding would have a
material and adverse effect upon the J-NET Marks and/or the J-NET Index(es) or
upon the ability of J-NET to perform under this Agreement. In such event the
License Fees to the date of such termination shall be computed as provided in
Subsection 4(g).
(g) In the event of termination of this Agreement, the License Fees to the date
of such termination shall be computed by prorating the amount of the applicable
License Fees shown in Exhibit C on the basis of the number of elapsed days in
the current term.
(h) Upon termination of this Agreement, Licensee shall cease to use the J-NET
Index(es) and the J-NET Marks in connection with the Product(s); provided that
if the Agreement terminates pursuant to Section 2 or is terminated pursuant to
Section 4(d) above the license granted herein with respect to a particular
Product shall continue until the later to occur of the termination of this
Agreement or the scheduled mandatory termination date of such Product and
Licensee shall remain obligated to pay the applicable License Fees related to
such Product for the remaining term of such Product.
5. J-NET's Obligations.
-------------------
(a) J-NET shall not and is in no way obliged to engage in any marketing or
promotional activities in connection with the Product(s) or in making any
representation or statement to investors or prospective investors in connection
with the promotion by Licensee of the Product(s).
(b) J-NET agrees to provide reasonable support for Licensee's development and
educational efforts with respect to the Product(s) as follows: (i) J-NET shall
provide Licensee, upon request but subject to any agreements of confidentiality
with respect thereto, copies of the results of any marketing research conducted
by or on behalf of J-NET with respect to the J-NET Index(es); and (ii) J-NET
shall respond in a timely fashion to any reasonable requests for information by
Licensee regarding the J-NET Index(es).
(c) J-NET or its agent shall calculate and disseminate the J-NET Index(es) at
least once each day via the J-NET website in accordance with its current
procedures, which procedures may be modified by J-NET.
(d) J-NET shall promptly correct or instruct its agent to correct any
mathematical errors made in J-NET's computations of the J-NET Index(es) which
are brought to J-NET's attention by Licensee or others, provided that nothing in
this Section 5 shall give Licensee the right to exercise any judgment or require
any changes with respect to J-NET's method of composing, calculating or
determining the J-NET Index(es); and, provided further, that nothing herein
shall be deemed to modify the provisions of Section 9 of this Agreement.
6. Informational Materials Review.
------------------------------
Licensee shall use its best efforts to protect the goodwill and
reputation of J-NET and of the J-NET Marks in connection with its use of
such Marks under this Agreement. Licensee shall submit to J-NET for its review
and approval all informational materials pertaining to and to be used in
connection with the Product(s), including, where applicable, all prospectuses,
registration statements, web sites, investor letters, advertisements, brochures
and promotional and any other similar informational materials (including
documents required to be filed with governmental or regulatory agencies) that in
any way use or refer to J-NET, the J-NET Index(es), or the J-NET Marks (the
"Informational Materials"). Informational Materials shall be addressed to J-NET,
c/o Xxxxxx X. XxXxxxx, at the address specified in Subsection 12(d). J-NET's
approval shall be required with respect to the use of and description of J-NET,
J-NET Marks and the J-NET Index(es) and shall not be unreasonably withheld or
delayed by J-NET. Specifically, J-NET shall notify Licensee, by facsimile
transmission in accordance with Subsection 12(d) hereof, of its approval or
disapproval of any Informational Materials within ten (10) days (excluding
Saturday, Sunday and New York Stock Exchange Holidays) following receipt thereof
from Licensee. Any disapproval shall state J-NET's reasons therefore. Any
failure by J-NET to respond within such ten (10) day period shall be deemed to
constitute a waiver by J-NET of its right to review such Informational Materials
by J-NET. Once Informational Materials have been approved by J-NET, subsequent
Informational Materials which do not alter the use or description of J-NET,
J-NET Marks or the J-NET Index(es) need not be submitted for review and approval
by J-NET.
7. Protection of Value of License.
------------------------------
(a) During the term of this Agreement, J-NET shall use reasonable commercial
efforts to register in the U.S., and maintain in full force and effect any and
all federal service xxxx registrations for the J-NET Marks so long as the
subject J-NET Index(es) to which the J-NET Xxxx(s) refer are compiled and
published.
(b) J-NET shall at J-NET's own expense and sole discretion exercise Janet's
common law and statutory rights against infringement of the J-NET Marks,
copyrights and other proprietary rights.
(c) J-NET shall have the exclusive right (but, subject to Section 7(a) and
Section 7(b), shall not be obligated) to take action with respect to any
infringement of the J-NET Marks, at J-NET's sole expense, including, without
limitation, the right, in its own name and that of Licensee, to commence and
prosecute any suit or other proceeding against any such infringer or join
Licensee as a party thereto. Any recovery obtained in such proceeding shall
belong to J-NET. Licensee shall cooperate with J-NET in any such proceeding, and
in connection therewith (and without limitation), Licensee shall provide such
evidence and give such testimony as may reasonably be requested by J-NET. J-NET
will reimburse Licensee for any reasonable out-of-pocket expenses that Licensee
incurs in connection with such cooperation. Any such cooperation by Licensee
shall not be a waiver of nor shall it require any violation or compromise of its
attorney/client privilege, work product privilege, any other privilege or right
to confidential treatment of any information or materials.
(d) Licensee shall cooperate with J-NET in the maintenance of such rights and
registrations and shall take such actions and execute such instruments as J-NET
may from time to time reasonably request, and shall use the following notice
when referring to the J-NET Index(es) or the J-NET Marks in any Informational
Material:
"J-NET Global Indexes, LLCSM", "Xxxxxx Water IndexSM", "Xxxxxx Water Tech
IndexSM", "Xxxxxx Water Works IndexSM", are service marks of J-NET Global
Indexes, LLC and have been licensed for use by [Licensee and/or Product(s)]. The
[Product(s)] is/are not sponsored, endorsed, sold or promoted by J-NET Global
Indexes, LLC and J-NET Global Indexes, LLC makes no representation regarding the
advisability of investing in the [Product(s)].
or such similar language as may be approved in advance by J-NET.
8. Proprietary Rights.
------------------
(a) Licensee acknowledges that the J-NET Index(es) is selected, coordinated,
arranged and prepared by J-NET through the application of methods and standards
of judgment used and developed through the expenditure of considerable work,
time and money by J-NET. Licensee also acknowledges that the J-NET Index(es) and
the J-NET Marks are the exclusive property of J-NET, that J-NET has and retains
all proprietary rights therein (including, but not limited to, trademarks,
service marks, patents and copyrights), that the J-NET Index(es) and its
compilation and composition and changes therein are in the control and
discretion of J-NET and that J-NET retains the right at any time upon reasonable
written notice, to modify the methodology used to calculate the J-NET Index(es).
(b) J-NET reserves all rights with respect to the J-NET Index(es) and the J-NET
Marks except those expressly licensed to Licensee hereunder.
(c) Licensee recognizes the great value of the goodwill associated with the
J-NET Marks and acknowledges that the J-NET Marks and any registrations
therefore are valid and subsisting and all rights therein and the goodwill
pertaining thereto belong exclusively to J-NET.
(d) J-NET reserves all rights with respect to the J-NET Index(es) and the J-NET
Marks except those expressly licensed to Licensee hereunder.
(e) Each party shall treat as confidential and shall not disclose or transmit to
any third party any documentation or other written materials that are marked as
"Confidential and Proprietary" by the providing party ("Confidential
Information"). Confidential Information shall not include (i) any information
that is available to the public or to the receiving party hereunder from sources
other than the providing party (provided that such source is not subject to a
confidentiality agreement with regard to such information) or (ii) any
information that is independently developed by the receiving party without use
of or reference to information from the providing party. Notwithstanding the
foregoing, either party may reveal Confidential Information to any regulatory
agency or court of competent jurisdiction if such information to be disclosed is
(a) approved in writing by the other party for disclosure or (b) required by
law, regulatory agency or court order to be disclosed by a party, provided, if
permitted by law, that prior written notice of such required disclosure is given
to the other party and provided further that the providing party shall cooperate
with the other party to limit the extent of such disclosure. The provisions of
this Subsection 8(e) shall survive any termination of this Agreement for a
period of five (5) years from disclosure by either party to the other of the
last item of such Confidential Information.
9. Warranties; Disclaimers.
-----------------------
(a) J-NET represents and warrants that J-NET has the right to grant the
rights granted to Licensee herein.
(b) J-NET further warrants and represents to Licensee that the J-NET Marks and
the J-NET Index(es) are the exclusive property of J-NET, that J-NET has and
retains all proprietary rights therein (including, but not limited to
trademarks, service marks, patents and copyrights), that the J-NET Index(es) and
its compilation and composition and changes therein are in the control and
discretion of J-NET, and that the J-NET Index(es) and J-NET Marks, and license
thereof, do not infringe the rights of any third party.
(c) Licensee agrees expressly to be bound itself by and furthermore to include
all of the following disclaimers and limitations in each prospectus, offering
memorandum or other such offering document relating to the Product(s):
"The Product(s) is not sponsored, endorsed, sold or promoted by J-NET
Global Indexes, LLC ("J-NET"). J-NET makes no representation or warranty,
express or implied, to the owners of the Product(s) or any member of the public
regarding the advisability of investing in securities generally or in the
Product(s) particularly or the ability of the J-NET Index(es) to track the
performance of the global water industry. J-NET's only relationship to the
Licensee is the licensing of certain service marks and trade names of J-NET and
of the J-NET Index(es) that is determined, composed and calculated by J-NET
without regard to the Licensee or the Product(s). J-NET has no obligation to
take the needs of the Licensee or the owners of the Product(s) into
consideration in determining, composing or calculating the J-NET Index(es).
J-NET is not responsible for and has not participated in the determination of
the timing of, prices at, or quantities of the Product(s) to be issued or in the
determination or calculation of the equation by which the Product(s) is to be
converted into cash. J-NET has no obligation or liability in connection with the
administration, marketing or trading of the Product(s).
"J-NET DOES NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE
J-NET INDEX(ES) OR ANY DATA INCLUDED THEREIN AND J-NET SHALL HAVE NO LIABILITY
FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN. J-NET MAKES NO WARRANTY,
EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY LICENSEE, OWNERS OF THE
PRODUCT(S), OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE J-NET INDEX(ES) OR
ANY DATA INCLUDED THEREIN. J-NET MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND
EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE OR USE WITH RESPECT TO THE J-NET INDEX(ES) OR ANY DATA
INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL J-NET
HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES
(INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES."
The [Product] is not sponsored, endorsed, sold or promoted by Standard & Poor's,
a division of The XxXxxx-Xxxx Companies, Inc. ("S&P") or its third party
licensors. Neither S&P nor its third party licensors make any representation or
warranty, express or implied, to the owners of the [Product] or any member of
the public regarding the advisability of investing in securities generally or in
the [Product] particularly or the ability of the [Index] to track general stock
market performance. S&P's and its third party licensors' only relationship to
J-NET Global Indexes, LLC is the licensing of certain trademarks, service marks
and trade names of S&P and/or its third party licensors and for the providing of
calculation and maintenance services related to the [Index]. Neither S&P nor its
third party licensors are responsible for or have participated in the
determination of the prices and amount of the [Product] or the timing of the
issuance or sale of the [Product] or in the determination or calculation of the
equation by which the [Product] is to be converted into cash. S&P has no
obligation or liability in connection with the administration, marketing or
trading of the [Product].
NEITHER S&P, ITS AFFILIATES NOR THEIR THIRD PARTY LICENSORS GUARANTEE THE
ADEQUACY, ACCURACY, TIMELINESS OR COMPLETENESS OF THE [INDEX] OR ANY DATA
INCLUDED THEREIN OR ANY COMMUNICATIONS, INCLUDING BUT NOT LIMITED TO, ORAL OR
WRITTEN COMMUNICATIONS (INCLUDING ELECTRONIC COMMUNICATIONS) WITH RESPECT
THERETO. S&P, ITS AFFILIATES AND THEIR THIRD PARTY LICENSORS SHALL NOT BE
SUBJECT TO ANY DAMAGES OR LIABILITY FOR ANY ERRORS, OMISSIONS OR DELAYS THEREIN.
S&P MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL
WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH
RESPECT TO ITS TRADEMARKS, THE INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT
LIMITING ANY OF THE FOREGOING, IN NO EVENT WHATSOEVER SHALL S&P, ITS AFFILIATES
OR THEIR THIRD PARTY LICENSORS BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL,
PUNITIVE OR CONSEQUENTIAL DAMAGES, INCLUDING BUT NOT LIMITED TO, LOSS OF
PROFITS, TRADING LOSSES, LOST TIME OR GOODWILL, EVEN IF THEY HAVE BEEN ADVISED
OF THE POSSIBILITY OF SUCH DAMAGES, WHETHER IN CONTRACT, TORT, STRICT LIABILITY
OR OTHERWISE.
Standard & Poor's(R) and S&P(R) are registered trademarks of The XxXxxx-Xxxx
Companies, Inc.; "Calculated by S&P Custom Indices" and its related stylized
xxxx are service marks of The XxXxxx-Xxxx Companies, Inc. These marks have been
licensed for use by J-NET Global Indexes, LLC."
Any changes in the foregoing disclaimers and limitations must be
approved in advance in writing by an authorized officer of J-NET. Licensee will
also include such notices as are set forth in Exhibit A regarding the use of any
marks that J-NET has been licensed to use.
(d) Each party represents and warrants to the other that it has the authority to
enter into this Agreement according to its terms and that its performance does
not violate any laws, regulations or agreements applicable to it.
(e) Each party hereto represents that this Agreement has been duly executed by
an authorized signatory of such party and constitutes the valid and binding
obligation of such party enforceable against such party in accordance with its
terms; that at all times during the term of this Agreement, such party shall
have the power and authority to perform all of its obligations under this
Agreement; and that the execution, delivery and performance of this Agreement
will not violate any agreement or instrument to which such party is a party.
(f) Licensee represents and warrants to J-NET that the Product(s) shall at all
times comply with the descriptions in Exhibit B and shall not violate any of the
restrictions set forth therein.
(g) Licensee represents and warrants to J-NET that the Product(s) shall not
violate any applicable law, including but not limited to banking, commodities
and securities laws.
(h) Neither party shall have any liability for lost profits or indirect,
punitive, special, or consequential damages arising out of this Agreement, even
if notified of the possibility of such damages. Without diminishing the
disclaimers and limitations set forth in Subsection 9(b), in no event shall the
cumulative liability of J-NET to Licensee exceed the average annual License Fees
actually paid to J-NET hereunder.
(i) The provisions of this Section 9 shall survive any termination of this
Agreement.
10. Indemnification.
---------------
(a) Licensee shall indemnify and hold harmless J-NET, its Affiliates (as
hereinafter defined) and their officers, directors, employees and agents against
any and all judgments, damages, costs or losses of any kind (including
reasonable attorneys' and experts' fees) as a result of any claim, action, or
proceeding that arises out of or relates to (a) this Agreement, except insofar
as it relates to a breach by J-NET of its representations or warranties or
covenants hereunder, or (b) the Product(s); provided, however, that J-NET
notifies Licensee promptly of any such claim, action or proceeding. J-NET shall
have the right, at its own expense, to participate in the defense of any claim,
action or proceeding against which it is indemnified hereunder; provided,
however, it shall have no right to control the defense, consent to judgment, or
agree to settle any such claim, action or proceeding without the written consent
of Licensee without waiving the indemnity hereunder. Licensee, in the defense of
any such claim, action or proceeding, except with the written consent of J-NET,
shall not consent to entry of any judgment or enter into any settlement which
either (i) does not include, as an unconditional term, the grant by the claimant
to J-NET of a release of all liabilities in respect of such claims or (ii)
otherwise adversely affects the rights of J-NET. This provision shall survive
the termination or expiration of this Agreement.
(b) J-NET shall indemnify and hold harmless Licensee, its Affiliates (as
hereinafter defined) and their officers, directors, employees and agents against
any and all judgments, damages, costs or losses of any kind (including
reasonable attorneys' and experts' fees) as a result of any claim, action, or
proceeding that arises out of or relates to any breach by J-NET of its
representations or warranties or covenants under this Agreement; provided,
however, that (a) Licensee notifies J-NET promptly of any such claim, action or
proceeding; (b) Licensee grants J-NET control of its defense and/or settlement;
and (c) Licensee cooperates with J-NET in the defense thereof. Licensee shall
have the right, at its own expense, to participate in the defense of any claim,
action or proceeding against which it is indemnified hereunder; provided,
however, it shall have no right to control the defense, consent to judgment, or
agree to settle any such claim, action or proceeding without the written consent
of J-NET without waiving the indemnity hereunder. J-NET, in the defense of any
such claim, action or proceeding, except with the written consent of Licensee,
shall not consent to entry of any judgment or enter into any settlement which
either (i) does not include, as an unconditional term, the grant by the claimant
to Licensee of a release of all liabilities in respect of such claims or (ii)
otherwise adversely affects the rights of Licensee. This provision shall survive
the termination or expiration of this Agreement.
11. Suspension of Performance.
-------------------------
Neither J-NET nor Licensee shall bear responsibility or liability for
any losses arising out of any delay in or interruptions of their respective
performance of their obligations under this Agreement due to any act of God, act
of governmental authority, act of terrorism, act of the public enemy or due to
war, the outbreak or escalation of hostilities, riot, fire, flood, civil
commotion, insurrection, labor difficulty (including, without limitation, any
strike, or other work stoppage or slow down), severe or adverse weather
conditions, communications line failure, or other similar cause beyond the
reasonable control of the party so affected.
12. Other Matters.
-------------
(a) This Agreement is solely and exclusively between the parties hereto and
shall not be assigned or transferred by either party, without the prior written
consent of the other party, and any attempt to so assign or transfer this
Agreement without such written consent shall be null and void; provided,
however, that any Affiliate (as defined in Subsection 12(g)) of Licensee may use
the J-NET Index(es) as a component of the Product(s) and use and refer to the
J-NET Marks in connection with the marketing and promotion of the Product(s),
provided that such Affiliate shall be subject to all terms and conditions of
this Agreement.
(b) This Agreement constitutes the entire agreement of the parties hereto with
respect to its subject matter and may be amended or modified only by a writing
signed by duly authorized officers of both parties. This Agreement supersedes
all previous Agreements between the parties with respect to the subject matter
of this Agreement. There are no oral or written collateral representations,
agreements, or understandings except as provided herein.
(c) No breach, default, or threatened breach of this Agreement by either party
shall relieve the other party of its obligations or liabilities under this
Agreement with respect to the protection of the property or proprietary nature
of any property which is the subject of this Agreement.
(d) Except as set forth in Section 6 hereof with respect to Informational
Materials, all notices and other communications under this Agreement shall be
(i) in writing, (ii) delivered by hand, by registered or certified mail, return
receipt requested, or by facsimile transmission, to the address or facsimile
number set forth below or such address or facsimile number as either party shall
specify by a written notice to the other and (iii) deemed given upon receipt.
Notice to Licensor: J-NET Global Indexes, LLC
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000 Xxxxx Xxxxxx, 0xx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attn: Xxxxxx X. XxXxxxx
Tel. #: (000) 000-0000
Fax #: (000) 000-0000
Notice to Licensee: 0 Xxxxxxxx Xxxxx
------------------
X.X. Xxx 0000
Xxxxxxxx Xxxxxxx, XX 00000-0000
Attn: Xxxxx Xxxxxxx
With copy to: Xxx Xxxxxx Investments Inc.
000 Xxxxx Xxxxxx
Xxx Xxxx, XX 00000
Attn: Office of the General Counsel
(e) This Agreement shall be interpreted, construed and enforced in accordance
with the laws of the State of New York without regard to the conflicts of law
provisions thereof. In the event that one or more provisions of this Agreement
shall at any time be found to be invalid or otherwise rendered unenforceable,
such provision or provisions shall be severable from this Agreement, so that the
validity or enforceability of the remaining provisions of this Agreement shall
not be affected thereby.
(f) Each party agrees that in connection with any legal action or proceeding
arising with respect to this Agreement, they will bring such action or
proceeding only in the United States District Court for the Southern District of
New York or in the Supreme Court of the State of New York in and for the First
Judicial Department and each party agrees to submit to the jurisdiction of such
court and venue in such court and to waive any claim that such court is an
inconvenient forum.
(g) In the event that (i) a controlling interest in Licensee is acquired
directly or indirectly by a party that is not an Affiliate (as hereinafter
defined) of such Licensee prior to such transaction, (ii) Licensee merges into,
consolidates with, or otherwise is acquired by, directly or indirectly, a party
that is not an Affiliate of it; or (iii) Licensee is sold or substantially all
of its assets are sold directly or indirectly to a party that is not an
Affiliate of it (each, a "Change in Control"), Licensee shall so inform J-NET
setting forth the details of such Change in Control promptly upon such Change in
Control. J-NET may at its option, after receipt of such notice, terminate this
Agreement upon written notice to Licensee, at any time within thirty (30) days
of receipt of the above notice. For the purposes of this Subsection 12(g), the
term "control" (including the terms "controlling," "controlled by," and "under
common control with"), means the possession, direct or indirect, of the power to
direct or cause the direction of the management and policies of a party, whether
through the ownership of voting securities, by contract, or otherwise, and the
term "Affiliate" is an entity that directly or indirectly through one or more
intermediaries, controls, or is controlled by, or is under common control with
such party.
(h) Nothing contained in this Agreement shall create or be deemed to create any
agency, fiduciary, partnership or joint venture relation between or among the
Licensee or J-NET. No party hereto shall have the power to obligate or bind the
other party in any manner whatsoever.
(i) The failure of a party hereto to enforce, or the delay by a party hereto to
enforce, any of its rights under this Agreement shall not be deemed a continuing
waiver or a modification by such party of any of its rights under this Agreement
and any party may, within the time provided by the applicable law, commence
appropriate proceedings to enforce any or all of its rights under this Agreement
and any prior failure to enforce or delay in enforcement shall not constitute a
defense.
(j) J-NET may not refer to any Product, Licensee or any Licensee Affiliate in
any kind of communications, whether oral, written or electronic, or otherwise,
and whether in a piece published by J-NET or in response to questions of the
media or others, without Licensee's prior written consent, except that J-NET may
state that J-NET licenses the J-NET Index(es) and J-NET Marks to Licensee.
(k) This Agreement may be executed in counterparts, each of which shall be
deemed an original but all of which together shall constitute one and the same
instrument.
IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed as of the date first set forth above.
XXX XXXXXX FUNDS INC. J-NET GLOBAL INDEXES, LLC
By: By:
----------------------------------- ----------------------------------
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(Print Name) (Print Name)
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(Print Title) (Print Title)
EXHIBIT A
LIST OF J-NET INDEX(ES)
Xxxxxx Water Index(es)SM Ticker
------------------------ ------
Xxxxxx Water IndexSM JWI
Xxxxxx Water Tech IndexSM JWT
Xxxxxx Water WorksSM JWW
EXHIBIT B
PRODUCT(S) DESCRIPTION
The term "Product" shall mean an individual unit investment trust (i.e., each
trust series) created or sold by Licensee or an Affiliate of Licensee that
initially invests all or a portion of its assets in securities (i.e.,
multi-strategy Products) which replicate the components of one or more J-NET
Index(es), are selected from the components of one or more of the J-NET
Index(es) and/or otherwise will make use of the J-NET Index(es) or the J-NET
Marks.
EXHIBIT C
LICENSE FEES
Licensee shall pay J-NET License Fees computed as follows:
The quarterly License Fees for each Product shall be equal to three basis points
(0.03%) of the average daily net asset value of each Product during each
calendar quarter during such Product's term (the "License Fee"). The average
daily net asset value of all multi-strategy Products will be multiplied by the
Index Ratio prior to inclusion in the License Fee calculation. The term "Index
Ratio" means the portion of the initial portfolio securities in a Product
selected with reference to one or more of the J-NET Index(es) as a percentage of
all assets in such Product at the time of the creation of such Product. If the
total License Fee paid to Licensor under this Agreement with respect to all
Products in any calendar year does not equal at least $25,000 (the "Minimum
Annual Fee"), any shortfall shall be paid to J-NET by Licensee within a
reasonable time following the end of such calendar year, provided, however, (a)
no Minimum Annual Fee shall be paid in any calendar year in which no Products
were in existence during such year and (b) the Minimum Annual Fee shall be
prorated in the year of the Commencement Date and in the year that this
Agreement terminates to reflect the actual number of days in which this
Agreement was in effect during each such year.
License Fees shall be paid to J-NET within thirty (30) days after the close of
each calendar quarter in which they are incurred; each such payment shall be
accompanied by a statement setting forth the basis for its calculation.
The parties agree that the terms upon which License Fees are calculated pursuant
to this Exhibit C shall be considered "Confidential Information" for purposes of
Subsection 8(e) of this Agreement.
