EXHIBIT 10.1.2
AGREEMENT WITH DATA POWER, INC.
LICENSE AGREEMENT WORLD WIDE VIDEO, INC. DATAPOWER INC.
LICENSE AGREEMENT
This AGREEMENT is made this 31st day of August, 1998 between World Wide
Video, Inc. (WWV) a Colorado Corporation, (the "Company") having a place of
business at 000X Xxxxx Xxxx Xxxxxx, Xxxxxxxx, XX 00000 and DataPower
("DataPower") Power"), a Colorado Corporation, (the "Promisor") of 101-1425 Xxxx
Xxxxxx Xxxxxx, Xxxxxxxxx, X. X. Xxxxxx X0X0X0.
WITNESSETH:
WHEREAS, WWV designs and manufactures leading edge technology and products
for the Video Telephony market as described in WWV Confidential Business Plan
dated June 5, 1997. (the "technology"); and
WHEREAS, DataPower desires to acquire the exclusive license to manufacture,
use, market and distribute the technology from WWV in accordance with the terms
and conditions of this Agreement;
NOW THEREFORE, in consideration of the premises, and the mutual covenants
and agreements set forth herein, and for good and valuable consideration, the
receipt, adequacy and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:
1. Grant of License.
(a) Subject to the terms and conditions set forth in this Agreement, WWV
hereby grants to DataPower the exclusive license, right and privilege to
manufacture, use, market and distribute the technology during the term hereof in
the Country of Canada. Furthermore, WWV grants to DataPower the rights of first
refusal for the exclusive license to manufacture, use, market and distribute the
technology for the regions of South Africa and Australia / New Zealand.
(b) WWV shall furnish to DataPower the technology's, copies of all patents,
registered designs, schematics, manufacturing information and drawings, and
marketing information including any previous sales information and current sales
information. All of the above shall be kept confidential by DataPower. Any
Breach of this clause shall be a reason to terminate this agreement.
(c) WWV shall cooperate fully with DataPower in its endeavors to
manufacture, use and market the technology in its exclusive territories.
DataPower agrees to reimburse all reasonable costs connected with WWV support,
which will be agreed to in writing by DataPower in conjunction with WWV [in a
separate document].
2. Term. Unless earlier terminated in accordance with the terms hereof, this
Agreement shall continue for the period commencing the date hereof and ending
March 15, 2008 and extend the term by mutual consent thereafter.
3. Consideration.
(a) Convertible Debenture. DataPower to date advanced $50,000 by way of
bridge finance to WWV. Upon delivery of 2 working prototypes DataPower, the
Debenture will be converted into 250,000 free trading shares of WWV.
Furthermore, WWV confirms that the company is in the process of filing for
approval to trade on the OTC-BB.
(b) Option to Purchase Additional Shares. WWV agrees to provide DataPower
an option to purchase an additional 500,000 free trading shares for payment
of $150,000 if such payment is made by September 23, 1998 or 15 business
days after delivery of working prototypes, whichever shall be the later.
Upon the signing of this License Agreement DataPower agrees that this payment is
in addition and not a part of the Royalty payments described in number four (4)
below. Further, WWV agrees to return, in full, without interest, the $50,000
loan to secure the rights if WWV cannot deliver working a United State's version
of a commercial product to DataPower within three months (3) of the signing of
this agreement.
4. Royalties. Said payment shall be made quarterly within sixty days of the end
of each quarter. The royalty payments of 5% on wholesale sales of WWV's
products. Attached to the payment shall be the proper accounting, which may be
audited by WWV.
5. USA Marketing Rights. In consideration of the 250,000 of 144 shares in
DataPower, WWV grants DataPower the non- exclusive rights to market to the US
Government Military Bases.
6. First right to acquire the exclusive rights for South Africa. WWV agrees to
provide DataPower with the first rights to acquire the exclusive rights for
manufacturing, use, marketing and distribution of WWV products and technology
for payment of $25,000 on or before December 30, 1998 and royalty payments of 5%
on wholesale sales of WWV's products.
7. First right to acquire the exclusive rights for Australia and New Zealand.
WWV agrees to provide DataPower with the first rights to acquire the exclusive
rights for manufacturing, use, marketing and distribution of WWV products and
technology for payment of $50,000 on or before January 30, 1999, and royalty
payments of 5% on wholesale sales revenues of WWV's products.
8. Termination.
(a) This Agreement shall terminate upon written notice at the discretion of
either party hereto in the event the other party shall voluntarily or
involuntarily enter bankruptcy, reorganization, arrangement, receivership
or any similar proceedings or declare itself to be insolvent or bankrupt.
If either party is involved in any of the foregoing events, such party
shall immediately notify the other in writing of the occurrence of such
event.
(b) Upon expiration or termination of this Agreement for any reason,
DataPower shall cease and terminate the use of the technology.
(c) Termination of this Agreement for any reason shall not release either
party of any liability accrued through the date of such termination, nor
effect in any way the survival of any claim arising from any breach of any
right, duty or obligation of any party hereto accrued hereunder as of the
date of such termination.
9. Indemnification. WWV agrees, for WWV's products produced by WWV, to
indemnify, defend and hold harmless DataPower from and against any and all
claims, losses, suits, damages, costs and liabilities relating to or arising
from its manufacture, distribution, use or sale of products using the technology
or the breach by WWV of any of its warranties or representations contained
herein. WWV will not be responsible for any changes made by DataPower to the
provided U.S. based product manufacturing information to meet jurisdictional,
territorial and other requirements.
10. Miscellaneous.
(a) This Agreement shall be governed by and construed in accordance with
the laws of the State of Colorado as applied to residents of the State of
Colorado without regard to conflict of law principles.
(b) WWV represents and warrants to DataPower that (i) WWV is the owner of
the technology, (ii) WWV has the right and authority to grant to DataPower
the license to use the technology in the manner provided for herein (iii)
the grant by WWV of the license provided for herein-does not violate or
conflict with any agreement, instrument or commitment, or any law, rule,
regulation, court order or proceeding, to which WWV is a party or is bound.
11. Prior Agreements. This Agreement supersedes all prior Agreements.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the
date set forth above.
LICENSOR:
WORLD WIDE VIDEO, Inc.
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Xxxx X. Xxxxx, President
LICENSEE:
DataPower, Inc.
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Xxxxx Xxxxxx, President
