EXHIBIT
10.1
WEBSITE
HOSTING AND LICENSE AGREEMENT
This
WEBSITE HOSTING AND LICENSE AGREEMENT (the “ Agreement
”) is made and entered into this 20th day of May, 2008 (the
“ Effective Date ”), by and between ZZPartners,
Inc., a Nevada corporation (“ Licensee ”), and
ZenZuu, Inc., a Nevada corporation (“ Licensor
”). Licensee and Licensor may be referred to
herein individually as a “ Party ” and,
collectively, as “ Parties .”
RECITALS
WHEREAS
,
Licensor has developed and is the sole and exclusive owner of a
global social network database (the “ Database
”) and an advertising revenue-sharing model (the “
Revenue-Sharing Model ”), which it promotes and
markets on Licensor’s Internet website located at
www.zenzuu.com (the “ Site ,” together
with the Database and the Revenue-Sharing Model, the “
Products ”);
WHEREAS
,
Licensor developed and is the sole and exclusive owner of all
know-how and information relating to the Products, together with
all trade secrets, knowledge, technology, software, means, methods,
processes, practices, formulas, instructions, skills, techniques,
procedures, experiences, ideas, designs, drawings, assembly
procedures, computer programs, apparatuses, specifications, data,
results and other material, including manufacturing procedures and
test procedures and techniques, (whether or not confidential,
proprietary, patented or patentable), that Licensor utilizes or
later acquires in connection with the operation of Licensor’s
business (“ Licensor Technology ”), which
Licensor Technology, together with and all improvements, whether to
the foregoing or otherwise, and other discoveries, developments,
inventions, and other intellectual property (whether or not
confidential, proprietary, patented or patentable), industrial
rights and other intellectual property rights related to the
Products, including, without limitation, all (i) patents, reissues
of and reexamined patents, and patent applications, whenever filed
and wherever issued, including, without limitation, continuations,
continuations-in-part, substitutes and divisions of such
applications and all priority rights resulting from such
applications, (ii) rights associated with works of authorship,
including, without limitation, copyrights, moral rights, copyright
applications and copyright registrations; (iii) rights associated
with trademarks , service marks, trade names, logos, trade dress,
goodwill and the applications for registration and registrations
thereof; (iv) rights relating to the protection of trade secrets
and confidential information; (v) rights analogous to those set
forth in this Recital and any and all other proprietary rights
relating to intangible property, and (vi) divisions, continuations,
renewals, reissues and extensions of the foregoing now existing,
hereafter filed, issued or acquired, shall constitute the “
Intellectual Property Rights ” for all purposes of
this Agreement; and
WHEREAS
, for
the mutual benefit of the Parties, Licensor desires to (i) provide
to Licensee certain website hosting and related services in
connection with the operation of the Site, as described in Article
1 below (collectively, the “ Site Services
”); and (ii) grant to Licensee certain exclusive license
rights to further develop and Exploit (as defined below in Section
2.1) the Intellectual Property Rights and/or the Products, pursuant
to the terms and conditions of this Agreement.
AGREEMENT
NOW,
THEREFORE , for
good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the Parties mutually agree as
follows:
ARTICLE
1
SITE
SERVICES
1.1
Description of Services . During the term of this
Agreement, Licensor agrees to provide to Licensee the Site
Services, pursuant to the terms and conditions as set forth in this
Agreement, including, without limitation, the Service Level
Agreement attached hereto as Exhibit A (the “
SLA ”). Except as otherwise expressly set
forth herein, Licensor solely shall be responsible for all methods,
means, techniques, sequences and procedures and for coordinating
all portions of the Site Services. Any change in the
scope of the Site Services shall be made only in writing executed
by authorized representatives of both Parties. The
applicable terms and conditions of this Agreement will apply to any
and all additional services agreed to by the
Parties. The Site Services will include the
following:
(a)
Licensor will be solely responsible for housing, maintaining,
supporting and operating the Site for all functions pertaining to
this Agreement.
(b)
Licensor will be solely responsible for maintaining, supporting and
developing software necessary to operate the Site and perform the
Site Services hereunder.
(c)
Licensor will be solely responsible for providing, updating,
uploading and maintaining any and all files, pages, data, works,
information and/or materials on, within, displayed, linked or
transmitted to, from or through the Site, including, without
limitation, trade or service marks, images, photographs,
illustrations, graphics, audio clips, video clips, e-mail or other
messages, metatags, domain names, look and feel of the Site,
software and text (collectively, the “ Content
”). Licensor shall retain all right, title and
interest in and to the Content and all legally protectable
elements, derivative works, modifications and enhancements thereto,
whether or not developed by Licensor, Licensee or any contractor,
subcontractor or agent for either Party. To the extent
that ownership of the Content does not automatically vest in
Licensor by virtue of this Agreement or otherwise, Licensee agrees
to transfer and assign to Licensor all right, title and interest in
and to such Content. Notwithstanding the foregoing,
Licensor shall comply with requests of Licensee to immediately
remove Content that Licensee deems, in its reasonable discretion,
objectionable or offensive.
(d)
Each
of Licensor and Licensee will be solely responsible for designating
a system administrator and maintaining a dedicated database server
and related computer equipment necessary for providing and/or
accessing the Site Services, as applicable. In the event
that additional hardware, firm ware, server capacity, or equipment
becomes necessary (collectively, the “ Equipment
”) in providing and/or accessing the Site Services, as
applicable, each of Licensor and Licensee shall be solely
responsible for their individual respective costs in acquiring such
Equipment.
(e)
Licensor will upload and obtain all releases, consents and such
other arrangements as may be necessary in operating the Site and
providing the Site Services and the Content as set forth
herein.
(f)
Licensor will use its best efforts to ensure that the Site is
correctly tuned and utilized to provide optimal performance and
utilization to at least the minimum performance standards specified
in the SLA.
(g)
Licensor will consult with Licensee as necessary to facilitate the
performance of the Site Services as contemplated in this Article 1,
including, without limitation, evaluating the need on an annual
basis, or as otherwise agreed to by the Parties, to redesign the
Site to keep it looking fresh and to utilize the latest technology
to drive advertising revenue and increase the number of members
included in the Database.
(h)
Licensor will provide to Licensee prompt and responsive customer
support in connection with the Site Services and will designate a
support representative to Licensee for the term of this
Agreement. Licensee shall appoint a designated person as
the primary contact for all Site Services to be provided by
Licensor. Such assistance shall be provided by Licensor
to Licensee without charge.
(i)
Except as otherwise set forth herein, Licensor shall have the
exclusive right to manage all resources used in providing the Site
Services as Licensor deems appropriate, including, without
limitation, the right to relocate and substitute computer
equipment, personnel and other resources, and to change computer
configurations and procedures.
ARTICLE
2
LICENSE
GRANT
2.1
Exclusive License Grant . Subject to the terms
and conditions of this Agreement, Licensor hereby grants to
Licensee, and Licensee hereby accepts, as of the Effective Date, a
perpetual and exclusive right and license: (a) to develop and
Exploit the Intellectual Property Rights and/or the Products in the
United States (the “ Territory ”) to increase
Database membership within the Territory and generate advertising
revenue in furtherance of the Revenue-Sharing Model; and (b) to use
any other intellectual property rights now held or hereafter
acquired or controlled by Licensor that may be necessary or useful
to Licensee in connection with its Exploitation of the Intellectual
Property Rights and/or the Products within the
Territory. “ Exploit, ” and any form
of such word, shall mean the making, having made, importation, use
or development of the Intellectual Property Rights and/or the
Products.
ARTICLE
3
CONSIDERATION
3.1
Initial License Fee . In consideration of the
Services (as defined below in Section 4.1) to be provided to
Licensee and the rights and licenses granted to Licensee by
Licensor under this Agreement, Licensee shall pay to Licensor an
amount equal to One Million Dollars ($1,000,000) (the “
Initial License Fee ”) in the
aggregate. The Initial License Fee shall be payable as
follows: (a) Five Hundred Thousand Dollars ($500,000) on
May 23, 2008 via wire transfer of immediately available funds to an
account designated by Licensor; and (b) an aggregate of Five
Hundred Thousand Dollars ($500,000) in installments that each equal
twenty percent (20%) of Licensee’s existing cash balance
effective as of the last day of each calendar month, to be paid on
or before the tenth (10 th
) day
of each calendar month for the preceding calendar month, as
applicable, until such payment is made in full.
3.2
Monthly Royalty Payments From Net Local Advertising Revenue
.
(a)
In
addition to the Initial License Fee, Licensee agrees to pay to
Licensor twenty-five percent (25%) of Licensee’s Net Local
Advertising Revenue (“ Licensee Royalty Payments
”). Licensee shall determine its Net Local
Advertising Revenue on a monthly basis, with all Licensee Royalty
Payments to be made by Licensee to Licensor on or before the tenth
(10 th
) day
of each calendar month for the preceding calendar
month. “ Net Local Advertising Revenue
” shall mean Licensee’s gross advertising revenues
derived from its Exploitation of the Intellectual Property Rights
and/or the Products on a local scale, less commissions equal to
fifteen percent (15%) of such gross advertising revenues payable to
members in the Territory that assisted Licensee in generating such
revenues.
(b)
Licensor, or its duly authorized representative, shall be entitled,
at its own expense and during normal business hours, to conduct an
audit of Licensee’s books and records related to
Licensee’s Net Local Advertising Revenue to verify the amount
due to Licensor for each such month. Any such audit
shall be commenced within thirty (30) days following
Licensor’s receipt of the Licensee Royalty Payment for the
applicable calendar month, or such audit right shall be deemed
waived.
3.3
Monthly Royalty Payments From Gross National Advertising
Revenue .
(a)
In
consideration for Licensee’s efforts in Exploiting the
Intellectual Property Rights and/or the Products, Licensor agrees
to pay to Licensee twenty-five percent (25%) of Licensor’s
Gross National Advertising Revenue (“ Licensor Royalty
Payments ”). Licensor shall determine its
Gross National Advertising Revenue on a monthly basis, with all
Licensor Royalty Payments to be made by Licensor to Licensee on or
before the tenth (10 th
) day
of each calendar month for the preceding calendar
month. “ Gross National Advertising Revenue
” shall mean any and all gross advertising
revenues derived from Licensor’s global business operations
and/or Licensee’s Exploitation of the Intellectual Property
Rights and/or Products on a national scale within the Territory,
which amounts shall be received directly and determined by
Licensor.
(b)
Licensee, or its duly authorized representative, shall be
entitled, at its own expense and during normal business hours, to
conduct an audit of Licensor’s books and records related to
Licensor’s Gross National Advertising Revenue to verify the
amount due to Licensee for each such month. Any such
audit shall be commenced within thirty (30) days following
Licensee’s receipt of the Licensor Royalty Payment for the
applicable calendar month, or such audit right shall be deemed
waived.
3.4
Taxes . Licensee shall be responsible for the
payment of any federal, state, local or withholding taxes, which
may apply to the transactions contemplated by this Agreement;
provided, however, Licensor shall be responsible for the payment of
any such taxes in connection with Licensor Royalty
Payments. Under no circumstances will Licensee be
responsible for any franchise-related taxes or taxes based on
Licensor’s gross or net income.
ARTICLE
4
SUPPORT
SERVICES
4.1
Support Services . Promptly following the
Effective Date and throughout the term of this Agreement, in
addition to the Site Services, Licensor agrees to provide to
Licensee certain support services necessary and/or useful for
Licensee’s Exploitation of the Intellectual Property Rights
and/or the Products and the maximization of its Net Local
Advertising Revenue (collectively, the “ Support
Services ,” together with the Site Services, the “
Services ”). Except as otherwise expressly
set forth herein, Licensor solely shall be responsible for all
methods, means, techniques, sequences and procedures and for
coordinating all portions of the Support Services. Any
change in the scope of the Support Services shall be made only in
writing executed by authorized representatives of both
Parties. The applicable terms and conditions of this
Agreement will apply to any and all additional support services
agreed to by the Parties. The Support Services will
include the following:
(a)
Licensor will be solely responsible for creating and maintaining
applicable terms and conditions and other features that enable
potential advertisers to efficiently register and purchase
advertising (the “ Advertising Procedures
”).
(b)
Licensor will create and maintain a secure, online payment account
to directly receive Gross National Advertising Revenue from
advertisers that register for and purchase national
advertising. Licensor will pay to Licensee the Licensor
Royalty Payments from such account, pursuant to Section
3.3(a).
(c)
Licensor will be solely responsible for tracking registered
advertisers and all advertising revenue that corresponds to each
advertiser. Licensor further shall collect any and all
sales tax attributed to Gross National Advertising
Revenue.
(d)
Licensor shall determine members’ advertising revenue share
and make any and all distributions of such advertising revenue to
members, pursuant to its Revenue-Sharing Model.
(e)
Licensor shall be solely responsible for issuing any and all 1099
tax forms to members within the Territory that received
distributions from Licensor pursuant to the Revenue-Sharing
Model
(f)
Licensor will consult with Licensee and will consider
Licensee’s input on an ongoing basis (i) regarding the
Support Services described in Subsections (a) through (e); and (ii)
to further create, develop and/or improve, as applicable, the
Database, the Revenue-Sharing Model and the future business
enterprises model.
4.2
Licensee’s Obligations . During the term of
this Agreement, Licensee’s obligations in connection with the
Database, the Revenue-Sharing Model and related matters will
include the following:
(a)
Licensee shall be solely responsible for collecting any and all
sales tax attributed to Gross Local Advertising Revenue.
(b)
Licensee shall be solely responsible for issuing any and all 1099
tax forms to members within the Territory that received commissions
from Licensee pursuant to the member commission program.
(c)
Licensee will create and maintain a secure, online payment account
to directly receive Gross Local Advertising Revenue from
advertisers that register for and purchase local
advertising. Licensee will pay to Licensor the Licensee
Royalty Payments from such account, pursuant to Section
3.2(a).
(d)
Licensee will consult with Licensor and will consider
Licensor’s input on an ongoing basis (i) regarding
Licensee’s obligations described in Subsections (a) through
(c); and (ii) to further create, develop and/or improve, as
applicable, the Database, the Revenue-Sharing Model and the future
business enterprises model.
ARTICLE
5
COMPLIANCE
WITH LAWS
(a)
Licensor will perform the Services in conformance with applicable
federal, state and local laws, regulations and rules.
(b)
Licensee will Exploit the Intellectual Property Rights and/or the
Products in conformance with (i) applicable federal, state and
local laws, regulations and rules; and (b) standard operating
guidelines established by Licensor and conveyed to and agreed upon
by Licensee.
5.2
No
False or Misleading Statements . Without limiting
the generality of the other provisions of this Article 5, each
Party agrees not to make any false or misleading statements to or
concerning the other Party, including, but not limited to, the
other Party’s performance and commitments, or engage in any
illegal, deceptive, unethical or improper acts in connection with
performing its obligations hereunder.
ARTICLE
6
CONFIDENTIAL
INFORMATION; NON-DISCLOSURE
6.1
Confidential Information . Each Party may provide
to the other certain of its confidential, proprietary and trade
secret business or technical information in connection with this
Agreement (collectively, " Confidential Information
"). Confidential Information includes, but is not
limited to, technical data, know-how, information relating to
research, products, software, services, development, inventions,
processes, engineering, marketing, techniques, clients and their
customers, pricing, internal procedures, business and marketing
plans or strategies, finances, employees and business opportunities
disclosed by a Party to the receiving Party, either directly or
indirectly, in any form whatsoever (including, but not limited to,
in writing, in machine readable or other tangible form, orally or
visually): (a) that is a trade secret under applicable law; (b)
that has been marked as "confidential" or "proprietary" or similar
legend; (c) whose confidential nature has been made known by the
disclosing Party, orally or in writing, to the receiving Party; (d)
that due to its character and nature, a reasonable person under
like circumstances would treat as confidential; or (e) discussions
relating to such information whether these discussions occur prior
to, concurrent with, or following disclosure of such
information. The receiving Party will preserve the
confidentiality of all Confidential Information that is provided by
the disclosing Party or obtained by the receiving Party in
connection with the Agre
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