Document:

Ex-10.7(b) Amendment No.1 to Software License Agre

 

Exhibit 10.7(b)

Amendment #1 to

SOFTWARE LICENSE AGREEMENT

April 19, 2005

Between Radvision, Inc and Licensee

This Amendment to the SOFTWARE LICENSE AGREEMENT (“Agreement”) effective April 19, 2005, by
and between Radvision Inc. (“Licensor” or “Radvision”), with its offices at 17-17 State Highway 208
North, Fair Lawn, NJ 07410, and            Espre Solutions (“Licensee”) with its offices at 5700 W Plano
Pkwy, Suite 2600, Plano, TX 75093 is made as of October 14, 2005 (“Effective Date”).

WHEREAS, the parties desire to amend the Agreement to include the Radvision H.323 Protocol
Stack in Linux Redhat Enterprise 3.0 source code form pursuant to terms and conditions of the
Agreement, and any additional terms and conditions set forth below.

NOW THEREFORE, in consideration of the mutual promises and obligations contained in the Agreement
and herein, the sufficiency of which is hereby acknowledged, the parties agree as follows:

	1.	 	Exhibit A of the Agreement is amended by the addition of Addendum A-1, attached hereto.

	 
	2.	 	Exhibit B of the Agreement is amended by the addition of Addendum B-1, attached hereto.

IN WITNESS WHEREOF, the parties have executed this Amendment as of the Amendment Effective Date.

	 	 	 	 	 	 	 
	Radvision INC.:	 	Espre Solutions:
	Communications:	 	 	 	 
	 
	 	 	 	 	 	 
	Name:

	 	 	 	Name:	 	 
	 

	 	 
	 	 	 	 
	 

	 	(Signature)
	 	 	 	(Signature)
	 
	 	 	 	 	 	 
	Name:

	 	 	 	Name:	 	 
	 

	 	 
	 	 	 	 
	 

	 	(Print)
	 	 	 	(Print)
	 
	 	 	 	 	 	 
	Title:

	 	 	 	Title:	 	 
	 

	 	 
	 	 	 	 
	 
	 	 	 	 	 	 
	Date:

	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 

 

 

Addendum Exhibit A-1

Licensed Software and Licensee Products

	1.	 	Licensee Products:
	 
	 	 	Licensee licenses Radvision’s H.323 Protocol Stack in source code format for Redhat Linux
Enterpise 3.0 for the Licensee product as defined in the Software License Agreement.
	 
	2.	 	Licensed Software:
	 
	 	 	The Protocol Stack Source Code will be provided for Redhat Linux Enterpise 3.0
	 
	3.	 	Delivery:
	 
	 	 	The Licensed Software will be delivered to Authorized Division within five (5) business days
following the receipt of a signed copy of this Amendment by Radvision. The Licensed Software
shall be delivered to the following technical contact:

	 	 	Name: Bob Nimon
Phone: 214-254-3714
E-mail: bnimon@espresolutions.com

	 	 	 	 	 
	Signature for Licensee:	 	 
	 
	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 

(Signature)
	 	 
	 
	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 

(Print)
	 	 
	 
	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Date:
	 	 	 	 
	 

	 	 

	 	 

 

 

Addendum Exhibit B-1

License, Royalties and Support Fees

	1.	 	License Fees:

Licensee will pay Radvision a total one-time license fee of $40,000 for the H.323
SOURCE package consisting of: H.323 Source Code Protocol Stack for Redhat Linux
Enterprise 3.0.

Licensee may not provide the stack source code, API or API documentation to its
sublicensees or end-users.

Payment Mechanism —

Licensee will pay Radvision 100% of the total $40,000 license fee upon signing of this
Agreement (Terms: 50% NET 30 days, 50% NET 60 days).

If Licensee uses the Licensed Software to develop Embedded Software additional products
not covered under the Software license agreement Licensee will negotiate additional
payments for the right to distribute the Licensed Software in Object Code format as part
of Embedded Software for these new Licensee Products.

Royalties —

As per the Software license agreement. Royalties for H.323 Windows based and Redhat
Linux Enterprise 3.0 will be cross-contributory to the royalty schedule as stated in the
Software License Agreement dated April 19, 2005.

	2.	 	Maintenance and Support Fees

Licensee will pay Radvision an annual maintenance support fee covering the Redhat Linux
Enterprise 3.0 of $10,000. This annual maintenance fee is subject to the same
acceptance and refund terms as described in the original Software License Agreement dated
April 19, 2005.

The maintenance and technical support services that Radvision will provide to Licensee
will include:

	 	•	 	Maintenance software releases: Bug Fixes and Updates
	 
	 	•	 	Telephone, fax and e-mail support from Radvision software engineers.

The initial annual support fee shall be due and payable within thirty (30) days after
Authorized Division’s receipt of the Licensed Software and Documentation and subject to
the same payment terms as defined in the original Software License Agreement dated April
19, 2005. The annual support fee for any subsequent yearly periods during the term of the
Agreement, shall be due and payable within thirty (30) days after the anniversary of the
effective date as invoiced by Radvision.

	 	 	 	 	 
	Signature for Licensee:	 	 
	 
	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 

(Signature)
	 	 
	 
	 	 	 	 
	Name:
	 	 	 	 
	 

	 	 

(Print)
	 	 
	 
	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Date:Ex-10.7(C) Software and Royalty License Agreement

 

Exhibit 10.7(c)

SOFTWARE AND ROYALTY LICENSE AGREEMENT

THIS AGREEMENT between ESPRE SOLUTIONS, INC. (“Licensor”) with its principal place of business at 5700 W. Plano Parkway, Suite 2600, Plano, TX
75093 and VIZEO SOLUTIONS LTD, a Company incorporated under the laws of England, and its affiliates
with offices at 7 Wandon Road, London England SW6 2JF, (“Licensee”), is for the software and
royalty license of Technology in accordance with the terms and conditions stated in this Agreement
and any attachments to this Agreement.

     WHEREAS, Licensor has the right to license the intellectual
property and the Technology and,

     WHEREAS, Licensor desires to license and have Licensee market and
distribute said Technology; and

     NOW, THEREFORE, in consideration of the foregoing recitals and the
covenants set forth in this Agreement, the parties agree as follows:

1. DEFINITIONS.

The following definitions set forth below apply to this Agreement:

“Agreement” means this Software and Royalty License Agreement.

“Affiliate” of a party shall mean an entity directly or indirectly controlling,
controlled by or under common control with that party where control means the ownership or
control, directly or indirectly, of more than fifty percent (50%) of all of the voting
power of the shares (or other securities or rights) entitled to vote for the election of
directors or other governing authority; provided that such entity shall be considered an
Affiliate only for the time during which such control exists.

“Documentation” means the data sheet, specifications, test procedure and methodology, and
instructions for the Technology.

“Entity” shall mean any general partnership, limited partnership, limited liability
company, corporation, joint venture, trust, business trust, cooperative or association, or
any foreign trust or foreign business organization.

“Equipment” shall mean data processing and similar equipment, including options,
accessories and attachments for more basic equipment. Equipment includes, as a component
thereof, any media fixed or embedded therein that is not normally replaced except for
maintenance and repair. Equipment may include in its meaning, depending upon context, a
system or systems consisting of tangible Equipment and intangible Software.

“Intellectual Property Right” and “Intellectual Property Rights” shall mean all worldwide
right, title and interest of a Person in, to and under any and all: (a) United States or
foreign patents and pending patent applications therefore, including the right to file new
and additional patent applications based thereon, including provisionals, divisionals,
continuations, continuations-in-part, reissues and reexaminations; (b) copyrights; and (c)
trade secrets, know-how, processes, methods, engineering data and technical information.

					
	 	 	 	 	 
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“Information” shall mean any idea, program, technical, business or other intangible
information, however conveyed.

“Know-How” shall mean experience, skills and expertise in non-tangible form, relating to
Technology and consulting and advisory services relating to such experience, skills and
expertise.

“Licensor” means ESPRE Solutions Inc. and it’s subsidiaries.

“Licensor Intellectual Property Rights” shall mean one or more Intellectual Property Rights
owned by Licensor or licensed to Licensor by a Third Party with the right to sublicense at
no cost. Licensor is not under an obligation to seek such Third Party licenses.

“Media” or “Medium” means any document, print, tape, disc, tool, semiconductor chip or
other tangible information-conveying article

“Market” means the field of trade or business of the Licensee.

“Technology” shall mean Software with one or more programs owned or licensed by Licensor,
including, collectively, each of the source or object code for certain software, the
designs, specifications, data, libraries, algorithms, rule base and technical information,

“Net Receipts” shall mean the gross amount recognized as income on Licensee’s books
(pursuant to generally accepted accounting principles consistently applied) in connection
with the sale of a Product, less deductions for payment of sales, value added or any
similar taxes, and shipping and insurance charges, as well as less deductions for returned
products, with respect to such Product.

“Product” shall mean any integration work utilizing the Technology.

“Person or Party” shall mean any individual or Entity, and the heirs, executors,
administrators, legal representatives, successors and assigns of the “Person or Party” when
the context so permits.

“Software” shall mean intangible information in object code form constituting one or more
computer or apparatus programs and the informational content of such programs, together
with any documentation supplied in conjunction with and supplementing such programs.

“Specifications” shall mean the specifications for Software as set forth in this
Agreement, or if not so set forth, shall mean Licensor’s current published specifications,
user documentation and other information for the Software as of the date of order and any
additional specifications furnished by Licensee.

“Technology” shall mean the eViewMediaEngine which is owned by Licensor and protected by
USA Patent numbers 7003168, 6711299 and 6904175 and which is further described in Schedule
A of this agreement.

“Territory” shall mean the United Kingdom, the European Union and the Middle Eastern
countries.

“Term” shall mean the term of this Agreement as provided in Article 22.

“Third party” shall mean, with respect to a party, any Person that is not an Affiliate of
such party.

“Use” shall mean operate, reproduce, distribute, transmit (by electronic means or
otherwise), make available, perform and display.

					
	 	 	 	 	 
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2. SOFTWARE LICENSE GRANT.

     2.1 Grant of License. Subject to the terms of this Agreement, Licensor hereby grants
to Licensee under all Intellectual Property Rights of Licensor, now owned, or, to the extent it is
not prohibited from licensing such right, a license to use, sell and sublicense the Technology
within the Territory as is or as a derivative work imbedded in the Licensee’s products. The grant
of each license hereunder includes the right to convey to any customer of Licensee, with respect to
any Product or Derivative thereof which is sold or licensed by Licensee to such customer, rights to
use and resell such Product or Derivative as sold or licensed by Licensee to such customer (whether
or not as part of a larger combination).

     2.2 Description of the Territory: The Territory of the Licensee are the countries that
make up the political boundaries known as the United Kingdom, the European Union and the Middle
East.

     2.3 Exclusivity:

     2.3.1 The license granted under Section 2.1 above can be changed to an exclusive
arrangement in that the Licensor will not provide the Technology as explicitly defined in
the Section 1 “Definitions” to any other Licensee in the territory by A) developing enough
sales of the licensed technology such that the net receipts in the first twenty two months
following the effective date of this agreement are in excess of five million US dollars or,
B) prepaying Royalty fees within twenty two months of the effective date of this agreement
in the amount of one million dollars (US1,000,000). In any case Licensor must receive
Royalty payments of at least one million dollars within twenty two months of the effective
date of this agreement in order for the Licensee to qualify for an exclusive arrangement.

     2.3.2 Licensee acknowledges that Licensor has the right at any time to appoint new
licensees within the territory until Licensee meets the criteria for an exclusive
arrangement articulated in Section 2.3.1 above. Licensor agrees to offer first right of
refusal prior to signing a license agreement with another party. Within the context of
Section 2.3 “Exclusivity”, first right of refusal shall mean that Licensee pays in full the
balance of any royalty payments such that the total paid to Licensor equals at least one
million dollars. Such payment will be made within ten business days of Licensee exercising
its rights under this Section 2.3.2.

     2.4 Compliance with Specifications.

     2.4.1 If Licensor makes any Updates to any of the Technology in order to bring the
Technology into compliance with the Specifications, Licensor shall promptly thereafter (so
long as the License is in effect) provide to Licensee such information, in reasonable
detail, with respect to such Updates as is reasonably necessary to permit Licensee to
incorporate such Updates in the Technology.

     2.4.2 Upon approval by Licensor, any updates, revisions and modifications
(enhancements) integrated by the Licensee for the betterment of the product, elevates the
value of the product, therefore an exclusive joint-administration for the particular
revisions may exists and be added as an Addendum to this Agreement.

     2.5 Restriction on Licensing. The License of the Technology granted hereby may not be
transferred or assigned by Licensee without written permission from the Licensor. Licensor agrees
that such grant of assignment or transfer shall not be unreasonably withheld. The restricted
license rights shall extend to any subsidiaries and divisions or 3rd party contractors
or Affiliates of Licensee (collectively, “Affiliates”). Licensee shall be responsible for the
compliance by each such Affiliate with the terms and provisions of this Agreement.

     2.6 No Reverse Engineering. Licensee shall not reverse engineer, reverse compile or
disassemble the Technology, or otherwise attempt to derive the source code to any Software licensed
under

					
	 	 	 	 	 
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this Agreement. The foregoing shall not apply to such activities conducted in the ordinary course
of technical support of Licensee Products such as may occur through the use of debugging tools.

     2.7 Audits and Inspection Rights. 

     2.7.1 Licensor shall have the right, upon reasonable advance notice, to inspect
Licensee’s records and facilities, and the records and facilities of Affiliates of
Licensee, with respect to the manufacture of Licensee Products hereunder.

     2.7.2 If the payment of Royalties is required as provided in Section 4, during the term of this
Agreement and for a period of one (1) year thereafter, Licensor shall have the right, at
its expense, and upon reasonable notice to Licensee, to have examined by an independent
auditor with a national reputation, reasonably acceptable to Licensee, Licensee’s books and
records in order to determine or verify the Net Receipts and sales of the Products.
Licensor shall not make any such examination more than twice in any calendar year. If an
error in the reported Net Receipts or the reported number of Products sold by Licensee is
discovered as a result of such an examination and the reported Net Receipts or the reported
number of Products sold by Licensee during the period(s) examined were in excess of 5% less
than the actual Net Receipts or number of Products sold by Licensee, as the case may be,
during such period(s), Licensee shall pay for cost of said auditor.

     2.7.3 Licensee shall keep adequate records to verify all reports and payments made to Licensor pursuant to this
Agreement for a period of two (2) years following the date of such reports and payments.

     2.8 No Other Licenses. The License granted under this Agreement is specifically set
forth herein, and Licensor grants no licenses to Licensee by implication or estoppel.

     2.9 Reservation of Rights. Licensor reserves all rights not specifically granted to
Licensee hereunder.

     2.10 Restrictions on Export. Licensee acknowledges and agrees that it shall not
import, export, or re-export the Technology or related Documentation to any country in violation of
the laws and regulations of any applicable jurisdiction. Licensee further agrees to defend,
indemnify, and hold Licensor harmless for any losses, costs, claims, or other liabilities arising
out of Licensee’s breach of this Section.

     2.11 Delivery. Unless otherwise provided for herein or agreed to by the parties,
following the Licensor’s receipt of the fee payment provided for in Section 3, Licensor will ship
the Technology to Licensee in DVD/CD-ROM format or provide other acceptable transference via FTP.

     2.12 Acceptance. The Technology will be deemed accepted by Licensee unless it gives
notice to Licensor of non-conformity within thirty (30) days of date of its receipt. The parties
agree that such acceptance shall not limit any of the remedies or rights otherwise provided to
Licensee hereunder.

3. COMPENSATION

     3.1 Licensee Fees. In consideration of the license granted by the Licensor of the Licensed
Software by the Licensor under Section 2 above, the Licensee grant and equity interest in the
business of the Licensee. Upon signing of this agreement Licensee hereby issues to Licensor a
twenty percent (20%) equity interest, subject to dilution, in VIZEO SOLUTIONS LTD (the
“Interest”). The Interest is subject to the following terms and conditions:

					
	 	 	 	 	 
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     3.1.1 Investment Representation; Certificate Legends. Upon demand by VIZEO
SOLUTIONS LTD (“VIZEO”), Licensor shall deliver to VIZEO (A) a written representation that
the Interest to be acquired is to be acquired for investment and not for resale or with a
view to the distribution thereof and/or (B) a subscription agreement in substantially the
same form as VIZEO’s then current form of subscription agreement. Upon such demand by
VIZEO, delivery of such representation and/or subscription agreement prior to the delivery
of any certificate representing the Interest issuable pursuant to this Agreement shall be a
condition precedent to the right of Licensor to receive any of the Interest. The
certificates evidencing any of the Interest shall bear a legend appropriately reflecting
their status as restricted securities and subject to limitations upon transfer pursuant to
VIZEO’s Certificate of Formation and Company Agreement, as may be amended from
time-to-time, and any other relevant legend. VIZEO will recognize Licesnor as a holder of
the Interest only upon issuance of the certificate.

     3.1.2 Termination. In the event that the License is terminated for any
reason, or for no reason whatsoever, then VIZEO may purchase from MDS the Interest within
one (1) year after the termination of the License for a purchase price of One United States
Dollar (US$1.00). Upon the payment of the purchase price by VIZEO to Licensor pursuant to
this section, all of Licensor’s right, title, and interest in and to the Interest hereunder
with respect thereto shall immediately terminate and become null and void. Licensor agrees
that Licensor shall execute and deliver or cause to be executed and delivered to VIZEO such
further instruments of sale, assignment, transfer, and delivery and take such other action
as VIZEO may reasonably request in order to more effectively sell, assign, transfer, and
deliver and reduce to the possession of VIZEO any and all of the Interest and consummate
the transactions contemplated in this Section 3.1.

     3.2 Royalties Fees. In consideration of the license granted under Section 2 above,
Licensee shall also pay to Licensor royalties (“Royalties”) in the amount of twenty percent (20%)
on its Net Receipts of Products sold or licensed by Licensee. It is understood by Licensor that
Licensee has a License agreement that includes payment of royalties with to an affiliate of
Licensor (namely “MDS”) and that only net receipts from Sales of the Technology that do not
conflict with the royalty payments made to MDS will be paid under this Section 3.2.

     3.3 Taxes and Assessments.

     3.2.1 In addition to any other payments due under this Agreement, Licensee agrees to
pay, indemnify and hold Licensor harmless from any sales, use, excise, import or export,
value-added or similar tax or duty, and any other tax not based upon Licensor’s net income,
including any penalties and interest, and all government permit or license fees and all
customs and similar fees, levied upon the use or distribution of the Products which
Licensor may incur in respect of this Agreement, and any costs associated with the
collection or withholding of any of the foregoing items (“Taxes”).

     3.2.2 If Licensee fails to pay any Taxes as of the original due date for such Taxes
and Licensor receives any assessment or other notice (collectively the “Assessment”) from
any governmental taxing authority providing that such Taxes are due from Licensor, Licensor
shall give Licensee written notice of the Assessment and Licensee shall pay to Licensor or
the taxing authority the amount set forth as due in the Assessment within thirty (30) days
of receipt of such written notice from Licensor.

     3.3 Payment Terms.

     3.3.1 Royalties, when applicable, shall be payable on the 30th day of the
2nd month for the prior months Net Receipts. A statement setting forth in
sufficient detail the basis upon which Royalties were calculated shall accompany each
Royalty payment. Payments and statements shall be sent to Licensor at the address set forth
on the front page of this Agreement or such other address as Licensor may designate in
writing.

					
	 	 	 	 	 
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     3.3.2 All payments to be made by the Licensee to Licensor shall be made in United
States Dollars.

     3.3.3 Payments which are not received by ESPRE on the due date shall bear interest at
the lesser of eighteen percent (18%) per annum or the maximum rate allowed under applicable
law. If the Licensee is in default of any payment required to be made hereunder, then all
sums due from the Licensee to Licensor under this Agreement shall become due and payable
immediately upon demand by Licensor and Licensor may suspend the grant of license rights
specified in Section 2.1 of this agreement until such payments are made and accepted by
Licensor.

     3.3.4 Royalty-Free Products. Licensee shall have the right to manufacture and
distribute a commercially reasonable number of Products, for the following purposes without
incurring a Royalty obligation to Licensor: units for testing, units with limited
functionality for reseller point of purchase and demonstration, units provided to Licensor,
units used internally by employees or contractors of Licensee, and units given to press and
analysts.

4. SUPPORT

     Licensor shall provide Licensee with support during the term of this Agreement as set forth
below:

     4.1 Initial Support: Licensor shall provide to Licensee a total of one hundred hours
of technical support for the Technology. Initial support must be utilized within the first six
months following the signing of this agreement. Additional support above the initial support will
be provided to the Licensee per the rate schedule specified in Section 4.2 below.

     4.2 Additional Support: Licensor will provide additional support to Licensee during
the term of this agreement at the rate of one hundred and fifty dollars ($150.00) per hour.
Licensee will be responsible to develop a Statement of Work outlining the support required and
Licensor will estimate the number of hours required to complete said work. Support required by the
Licensee that would be considered a derivative work shall be covered under the terms and conditions
defined in Schedule B of this agreement. Licensee further agrees that for a period of twenty two
months from the effective date of this agreement, that Licensee will only contract with Licensor
for development of derivative works. After the lapse of twenty two months from the effective date
of the agreement Licensee is free to develop derivative works using resources of the Licensee.

5. MARKETING AND PUBLICITY

     5.1 Marketing. Except as provided in Section 5.2 below, the parties agree to work
together to identify areas where joint marketing efforts would benefit both parties, and upon
mutual agreement shall implement such efforts.

     5.2 Publicity. Neither party shall disclose the terms of this Agreement to any third
party, other than its financial or legal advisors and current or potential Non-Corporate Investors,
or make any announcements regarding the nature of the relationship between the parties without the
prior approval of the other party, except that a party may disclose the terms of this Agreement
where required by law, provided that such party uses reasonable effort to obtain confidential
treatment or similar protection to the fullest extent available to avoid public disclosure of the
terms of this Agreement. A party required by law to make disclosure of the terms of this Agreement
will promptly notify the other party and permit the other party to review and participate in the
application process seeking confidential treatment. “Non-Corporate Investors” shall mean venture
capital investors/funds and investment banking investors/funds.

     5.3 Branding. Licensee and its Affiliates may use the Licensor trademarks in
conjunction with the distribution of the Products and in their advertising, promotional and printed
materials for the Products and on the Products.

6. PROPRIETARY RIGHTS; NON-SOLICITATION.

					
	 	 	 	 	 
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     6.1 Title. Licensee acknowledges that the Technology represents the valuable trade
secrets of Licensor. Licensor shall be the sole and exclusive owner of the Technology. Subject
always to Licensor’s ownership of the Technology, Licensee shall be the sole and exclusive owner of
the Products. Applications for the Products shall belong solely and exclusively to the party
developing such applications.

     6.2 Proprietary Rights Notices. Licensee agrees that it will
not remove, alter or otherwise obscure any proprietary rights notices appearing in the Technology.

     6.3 U.S. Government Restricted Legend. All Licensor technical data and computer
software is commercial in nature and developed solely at private expense. Software is delivered as
Commercial Computer Software as defined in DFARS 252.227-7014 (June 1995) or as a commercial item
as defined in FAR 2.101(a) and as such is provided with only such rights as are provided in
Licensor’s standard commercial license for such software. Technical data is provided with limited
rights only as provided in DFARS 252.227-7015 (Nov. 1995) or FAR 52.227-14 (June 1987), whichever
is applicable.

     6.4 End-User Licensing. Licensee agrees that each copy of any Software
distributed by Licensee hereunder will be accompanied by a copy of Licensee’s standard end user
software license; provided, however, that the terms of such license will be drafted so as to apply
to the Technology and shall be at least as protective of Licensor’s Software as: (i) the terms and
conditions Licensee uses for its own software products; and (ii) the terms and conditions governing
this Agreement. Licensee agrees to enforce the terms and conditions applicable to the Software
contained in such license.

     6.5 Non-solicitation. Licensee agrees that during the Term of
this Agreement Licensee will not directly or indirectly, either for itself or any other person or
entity, solicit any individual who is engaged as an employee, agent or independent contractor, by
Licensor or Licensor’s subsidiary to terminate his or her employment or engagement with Licensor or
such subsidiary and/or to become an employee, agent or independent contractor of Licensee or such
other person or entity. During the term of this Agreement, and for a period of one (1) year
thereafter, Licensee agrees that it will not take any action either on behalf of itself or any
other person or entity which action is designed to disrupt Licensor’s business relationships with
Licensor’s strategic partners or to directly solicit, or allow any of its subsidiaries or
affiliates to solicit, any of Licensor’s strategic partners for the purpose of persuading them to
cease doing business with Licensor.

7.
REPRESENTATIONS AND WARRANTIES

     7.1 Licensor and Licensee each represents and warrants to the other that:

(i) it is organized, validly existing and in good standing under the laws of the
country or state in which it is incorporated;

(ii) its execution and delivery of this Agreement, and the performance of its obligations under this Agreement, have
been duly authorized by all necessary corporate action on its part, and it has full
corporate power, right and authority to enter into this Agreement, to grant the
license it has granted hereunder and to perform its obligations hereunder;

(iii) neither the execution and delivery of this Agreement by it, nor the performance by
it of any of its obligations under this Agreement, violates any applicable law or
regulation of any country, state or other governmental unit, or its Articles or
Certificates of Incorporation or Bylaws or other charter documents, or constitutes
a violation of, or a breach or default under, any agreement or instrument, or
judgment or order of any court or governmental authority, to which it is a party or
to which it is subject or to which any of the Technology is subject;

(iv) this Agreement is a valid and binding obligation of it, enforceable against it in

					
	 	 	 	 	 
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accordance with its terms, except as such enforceability may be limited by
equitable principles or by bankruptcy or other laws affecting creditors’ rights
generally;

(v) no consent, approval, order or authorization of any person, entity,
court or governmental authority is required on its part in connection with the
execution and delivery of this Agreement or the performance by it of its
obligations hereunder;

     7.2 Licensor represents and warrants to Licensee that it has title to, or a license with a
right to sublicense, the Technology, in the form in which it is delivered to Licensee.

     7.3 To the best of Licensor’s knowledge, the Technology contains no malicious code or computer viruses.
Licensor shall immediately notify Licensee if any such problem is suspected.

8. INDEMNIFICATION

     8.1 The Licensee shall indemnify and save harmless Licensor and its directors, officers and
employees from and against any and all liabilities, damages, costs or expenses awarded against or
incurred or suffered by Licensor arising out of any action or proceeding commenced or maintained by
any third party in respect of any acts or omissions of the Licensee in marketing or distributing
the Technology or any acts or omissions of End Users which result in Licensor incurring damages.
This section will not be construed to limit or exclude any other claims or remedies which Licensor
may assert under this Agreement or by law.

     8.2 Licensor will defend, indemnify and hold the Licensee harmless from and against any claims
of third parties arising from: (i) Licensor’s failure to comply with applicable laws or
regulations or breach of this Agreement; or (ii) death, injury, or damage to real or tangible
personal property arising from Licensor ‘s negligence or willful misconduct. Licensor’s
obligations of this paragraph do not extend to any claims to the extent they are the subject of the
Licensee’s indemnification obligations set forth in this Agreement, or due to the Licensee’s
negligence or willful misconduct, and are conditioned on Licensor’s receipt of prompt written
notice of any such claim.

     8.2 Remedies. In the event Licensor reasonably believes that the use or distribution
of the Technology is likely to be enjoined, Licensor may, at its option, either: (i) substitute
functionally equivalent non-infringing Technology, as the case may be; (ii) modify the infringing
item so that it no longer infringes but remains functionally equivalent; (iii) obtain for Licensee,
at Licensor’s expense, the right to continue use of such item; or (iv) if none of the foregoing is
feasible, Licensor may take back such infringing item or items and terminate only that portion of
the license associated with respect to such item or items, subject to a mutually satisfactory
equitable reduction in the Royalty and fees payable under this Agreement. Should the use or
distribution of the Technology be enjoined, Licensor shall, at its option, either: (i) substitute
functionally equivalent non-infringing Technology, as the case may be; (ii) modify the infringing
item so that it no longer infringes but remains functionally equivalent; (iii) obtain for Licensee,
at Licensor’s expense, the right to continue use of such item; or (iv) if none of the foregoing is
feasible, Licensor may take back such infringing item or items and terminate only that portion of
the license associated with respect to such item or items, subject to a mutually satisfactory
equitable reduction in the Royalty and fees payable under this Agreement. SECTIONS 8.1 and 8.2
STATE LICENSEE’S SOLE AND EXCLUSIVE REMEDY WITH RESPECT TO CLAIMS OF INFRINGEMENT OF PROPRIETARY
RIGHTS OF ANY KIND, AND ALL WARRANTIES OF NON-INFRINGEMENT, EXPRESS OR IMPLIED, ARE SPECIFICALLY
DISCLAIMED AND EXCLUDED.

     8.3 Procedure for Indemnification.

     8.3.1 In the event that any legal proceedings are instituted, or any claim or demand
is asserted, by any third party which may give rise to any damage, liability, loss, or cost
or expense in respect of which either party has indemnified the other party under this
Section 8 above, the indemnified party shall give the indemnifying party written notice of
the institution of such

					
	 	 	 	 	 
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proceeding, or the assertion of such claim or demand, promptly after the indemnified
party first becomes aware thereof; provided, however, that any failure by the indemnified
party to give such notice on such prompt basis shall not affect any of its rights to
indemnification hereunder unless such failure materially and adversely affects the ability
of the indemnifying party to defend such proceeding.

     8.3.2 The indemnifying party shall have the right, at its option and at its own expense, to be represented by counsel of its
choice, subject to the approval of the indemnified party, which approval shall not be
unreasonably withheld or delayed, and to defend against, negotiate with respect to, settle
or otherwise deal with such proceeding, claim or demand; provided, however, that no
settlement of such proceeding, claim or demand shall be made without the prior written
consent of the indemnified party, which consent shall not be unreasonably withheld or
delayed, unless, pursuant to the terms and conditions of such settlement, the indemnified
party shall be released from any liability or other exposure with respect to such
proceeding, claim or demand; and provided, further, that the indemnified party may
participate in any such proceeding with counsel of its choice and at its own expense. In
the event, or to the extent, the indemnifying party elects not to, or fails to, defend such
proceeding, claim or demand and the indemnified party defends against, settles or otherwise
deals with any such proceeding, claim or demand, any settlement thereof may be made without
the consent of the indemnifying party if it is given written notice of the material terms
and conditions of such settlement at least ten (10) business days prior to a binding
agreement with respect to such settlement being reached. Each of the parties agrees to
cooperate fully with each other in connection with the defense, negotiation or settlement
of any such proceeding, claim or demand.

9.
INTELLECTUAL PROPERTY RIGHTS.

     Title to the Technology and to intellectual property rights therein shall remain in Licensor.

10.
EFFECTIVE DATE AND DURATION.

     This Agreement shall become effective upon the date of execution (the “Effective Date”) by the
parties. The term of the license of Technology shall be effective from the date of receipt of the
Technology by Licensee and shall remain in effect until Licensee discontinues use of the
Technology.

11. NOTICES.

     Notices shall be given in writing by confirmed facsimile, certified mail or registered mail
addressed to the parties as shown on the first page of this Agreement.

12. ASSIGNMENT

     Neither party may assign this Agreement, nor any rights or interests granted under this
Agreement without the prior written consent of the other party, which shall not be unreasonably
withheld.

13. OUTSOURCING. 

     In the event that Licensee elects to have the functions for which it uses the Technology
performed by a third party (referred to as the “Outsourcer”), and subject to the provisions of
Section 4.2 of this agreement, Licensee shall have the right to assign its rights hereunder to such
Outsourcer for the limited and specific purpose of enabling the third party to provide services to
Licensee using the Technology. Licensee will promptly notify Licensor as to the identity of the
Outsourcer. Licensee will ensure that such third party agrees to use the Technology only for such
purpose and to otherwise be bound by the provisions of this Agreement.

					
	 	 	 	 	 
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14. COMPLIANCE WITH LAWS.

     Both parties shall comply at their own expense with all applicable laws, ordinances,
regulations and codes in performance of this Agreement

15. CHOICE OF LAW. 

The laws of the State of Texas shall govern this Agreement and all transactions under it. 16.
MEDIATION. 

     If a dispute relates to this Agreement and the parties have not been successful in resolving
such dispute through negotiation, the parties agree to attempt to resolve the dispute through
mediation by submitting the dispute to a sole mediator selected by the parties or, at any time at
the option of a party, to mediation by the American Arbitration Association (“AAA”). Each party
shall bear its own expenses and an equal share of the expenses of the mediator and the fees of the
AAA. All defenses based on passage of time shall be suspended pending the termination of the
mediation. Nothing in this clause shall be construed to preclude any party from seeking injunctive
relief in order to protect its rights pending mediation.

17. LIMITATION OF LIABILITY.

     NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, LICENSOR SHALL NOT BE LIABLE FOR ANY
INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES, OR DAMAGES RESULTING FROM LOST DATA OR LOST
PROFITS, OR COSTS OF PROCURING SUBSTITUTE TECHNOLOGY HOWEVER ARISING, EVEN IF IT HAS BEEN ADVISED
OF THE POSSIBILITY OF SUCH DAMAGES. LICENSOR’S LIABILITY FOR DAMAGES ARISING OUT OF, RELATING TO OR
IN ANY WAY CONNECTED WITH THE RELATIONSHIP OF THE PARTIES, THIS AGREEMENT, ITS NEGOTIATION OR
TERMINATION, OR THE PROVISION OR NON-PROVISION OF THE TECHNOLOGY (WHETHER IN CONTRACT, TORT, OR
OTHERWISE) SHALL IN NO EVENT EXCEED THE AMOUNT PAID BY THE LICENSEE TO LICENSOR UNDER THIS
AGREEMENT DURING THE TWELVE (12) MONTH PERIOD IMMEDIATELY PRECEDING THE DATE ON WHICH SUCH DAMAGES
BECOME PAYABLE BY LICENSOR. THE PARTIES AGREE TO THE ALLOCATION OF LIABILITY SET FORTH IN THIS
SECTION ENTITLED “LIMITATION OF LIABILITY”. THE COMPANY ACKNOWLEDGES THAT WITHOUT ITS AGREEMENT TO
THE LIMITATIONS CONTAINED HEREIN, THE FEES CHARGED FOR THE TECHNOLOGY WOULD BE HIGHER.

18. FORCE MAJEURE. 

     Neither party shall be held responsible for any delay or failure in performance of any part of
this Agreement to the extent such delay or failure is caused by fire, flood, strike, civil,
governmental or military authority, act of God, or other similar causes beyond its control and
without the fault or negligence of the delayed or non-performing party or its subcontractors.

19. WAIVER. 

     The failure of either party at any time to enforce any right or remedy available to it under
this Agreement or otherwise with respect to any breach or failure by the other party shall not be
construed to be a waiver of that right or remedy with respect to any other breach or failure by the
other party.

20. SEVERABILITY.

     If any of the provisions of this Agreement shall be invalid or unenforceable, the invalidity
or unenforceability shall not invalidate or render unenforceable the entire Agreement or Order, but
rather the

					
	 	 	 	 	 
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entire Agreement or Order shall be construed as if not containing the particular invalid or
unenforceable provision or provisions, and the rights and obligations of the parties shall be
construed and enforced accordingly.

21. SURVIVAL OF OBLIGATIONS. 

     The obligations of the parties under this Agreement, which by their nature would continue
beyond the termination, cancellation or expiration of this Agreement, shall survive termination,
cancellation or expiration of this Agreement.

22. TERM AND TERMINATION.

     22.1 Term. The Term of this Agreement shall begin on the Effective Date and shall
continue unless and until terminated pursuant to this Section 22.

     22.2 Termination Due to Bankruptcy. In the event a party: (i) becomes insolvent; (ii) voluntarily files or has filed
against it a petition under applicable bankruptcy or insolvency laws which such party fails to have
released within thirty (30) days after filing; (iii) proposes any dissolution, composition or
financial reorganization with creditors or if a receiver, trustee, custodian or similar agent is
appointed or takes possession with respect to all or substantially all property or business of such
party; or (iv) such party makes a general assignment for the benefit of creditors, the other party
may terminate this Agreement by giving a termination notice, which termination shall become
effective ten (10) days after mailing.

     22.3 Right to Terminate; Early Termination.

     22.3.1 Either party shall have the right to terminate this Agreement if the other
party is in material breach of any term or condition of this Agreement and fails to remedy
such breach within thirty (30) days after receipt of a written notice of such breach given
by the non-breaching party; or

     22.3.2 Licensee may terminate this Agreement upon thirty (30) days written notice to
Licensor:

     (i) if remedies provided in Section 8.1 are insufficient to provide Licensee
with the right to continue using any part of the Technology subject to a Claim of
patent infringement or alleged patent infringement, provided that Licensee shall
not have the right to terminate if to the extent that Licensor is able to avoid
infringement or alleged infringement of the patent rights of a Third party by
having Licensee use another version of a part of the Technology at Licensor’s
expense; and

     (ii) provided further that Licensee’s right to terminate pursuant to the
foregoing subsections (a) and/or (b) shall not limit Licensor’s rights and remedies
otherwise available in this Agreement or at law.

     22.3.3 Either party may terminate this Agreement if the other party:

(a) makes an assignment for the benefit of creditors;

(b) admits in writing its inability to pay its debts as they become due;

(c) distributes to its creditors any composition, extension or similar
kind of agreement which purpose is to reach an out of court settlement
with its creditors;

(d) causes or consents to the appointment of a receiver, trustee,
liquidator or similar officer for all or any material portion of its
property;

(e) shall be dissolved or fails to maintain its corporate existence;

					
	 	 	 	 	 
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(f) has its ability to conduct business suspended or terminated;

(g) becomes insolvent;

(h) makes or consents to a notice of intended bulk transfer of its assets;

(i) convenes a meeting of creditors to restructure its debts;

(j) takes any corporate or other action for the purpose of effectuating
any of the foregoing; or

(k) if any proceeding, a receiver, trustee, liquidator or similar officer
is appointed to administer and/or liquidate all or any portion of the
property of the other party and such appointment is not vacated or set
aside within 45 days after the appointment of such receiver, trustee,
liquidator or similar officer.

     22.4 Effect of Termination. In the event of any termination of this Agreement, each
party shall be entitled to the rights and remedies afforded pursuant to Section 365(n) of the
Bankruptcy Code, and to any and all other legal and equitable remedies to which such party may be
entitled under the law. Upon the termination or expiration of this Agreement, Licensee shall
terminate further use and distribution of the Technology and, return or destroy all copies of the
Technology.

24. ESCROW OF SOURCE CODE

     Licensor agrees to annually deposit the source code for the most recent version of Technology
in an escrow account giving Licensee the right to withdraw the source code upon the termination of
(i) failure of a trustee or Licensor in any bankruptcy case hereafter filed by or against Licensor
either to assume this Agreement within sixty (61) days after the filing of the initial bankruptcy
petition or to perform this Agreement within the meaning of Section 365(n), in entirety, at
Licensee’s election of Title 11 of the United States Code or (ii) the termination of substantially
all of Licensor’s (or its successors, if applicable) ongoing business operations relating to the
Software. The custodian for the escrow shall be Iron Mountain Intellectual Property Management,
Inc. whose address is 2100 Norcross Parkway, Suite 150 Norcross, GA 30071. Licensee agrees to pay
the annual fee for this service.

25. SIGNATURE.

     The parties shall be entitled to rely upon and enforce a facsimile of any authorized
signatures as if it were the original.

26. ENTIRE AGREEMENT.

     The provisions of this Agreement and orders issued under this Agreement supersede all prior
and current oral and written communications, agreements, and understandings of the parties with
respect to the subject matter of this Agreement. and shall constitute the entire agreement between
the parties. The Agreement shall not be modified or rescinded, except by a writing signed by both
parties. Provisions on the reverse side of Licensee’s orders and all provisions on Licensor’s forms
shall be deemed deleted. Estimates or forecasts furnished by Licensee shall not constitute
commitments.

					
	 	 	 	 	 
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In witness whereof, the parties hereto have caused this Agreement to be executed by their duly
empowered representatives.

	 	 	 	 	 
	AGREED TO BY:
	 	 	 	 
	 
	 	 	 	 
	ESPRE Solutions, Inc.

	 	Vizeo Solutions LTD
	 	 
	 
	 	 	 	 
	/s/ Pete Ianace

	 	/s/ Peter Leighton	 	 
	 

	 	 	 	 
	Signed

	 	Signed	 	 
	Pete Ianace 

Name

	 	Peter Leighton

Name	 	 
	President/CEO 

Title

	 	Director

Title	 	 
	11/15/06

Date

	 	11/15/2006

Date	 	 

					
	 	 	 	 	 
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Schedule A

Description of Licensed Software

eViewMediaEngine

Technology Description

Notices

	 	 	 
	Copyright

	 	© Copyright ESPRE Solutions, Inc., 2006. All rights are reserved.
	 
	 	 
	Notice

	 	The information contained in this document is confidential and
proprietary. It is for internal use by ESPRE Solutions, Inc,
only.
	 
	 	 
	 

	 	This document may only be distributed outside of ESPRE Solutions
with express written permission from ESPRE Solutions.
	 
	 	 
	 

	 	ESPRE Solutions, Inc. shall not be liable for incidental or
consequential damages in connection with, or arising out of the
furnishing, performance, or use of this document and the program
material which it describes.

					
	 	 	 	 	 
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1. Introduction

1.1 Purpose

This document defines the eViewMediaEngine technology (“technology”) referenced in the Software &
Royalty License Agreement [1].

This document also defines the intellectual property that will be owned by ESPRE and conveyed to
First Vision as part of the license agreement. The licensing plan for the ESPRE software and the
compensation for ESPRE services are provided in the Software & Royalty License Agreement and its
Schedules. [1].

1.2 Document Scope

This document defines the high level features and capabilities of the technology.

This document contains the following primary topics:

	 	•	 	Video capture
	 
	 	•	 	Video encode
	 
	 	•	 	Video archive
	 
	 	•	 	Video distribution
	 
	 	•	 	Video chat

The document also summarizes Intellectual Property considerations and deliverables associated with
the licensed technology.

1.3 Intended Audience

This document is intended for First Vision to use as description of the licensed technology
referenced in the Software & Royalty License Agreement.

1.4 References

1. Software and Royalty License Agreement between ESPRE and First Vision

2. Technology Description

The technology licensed under this agreement is a toolkit (or “system developer’s kit” SDK) that
provides application programming interfaces (API’s) to control a media engine (ME) that has support
for the following main functions:

					
	 	 	 	 	 
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2.1 Video Capture

The technology provides services to enable users to attach components of the ME to a camera and
capture video into a local disk file. The Video Capture API supports control of camera selection
and exposes camera and capture configuration options (i.e., frame rate, resolution size, etc.).

The technology also supports camera association and control as part of the live chat component
technology discussed later.

2.2 Video Encode

The technology provides components that support encoding video and formatting the resultant media
into an ME format. The encoding API supports selecting from a myriad of options including:

	 	•	 	Resolution (width, from 160 to 1024, and height, from 128 to 768)
	 
	 	•	 	Frame rate (1-30 frames/second)
	 
	 	•	 	Encoding quality (essentially on a scale from 1-31)
	 
	 	•	 	Rate control bandwidth (>40 bps)
	 
	 	•	 	Rate control mode (none, TMN5, TMN8)
	 
	 	•	 	Input source (typically a local file in an AVI file format — several input codecs
in this format supported as an input source)
	 
	 	•	 	Input source span (allows specification of a scene to encode by specifying a
starting and ending AVI frame number
	 
	 	•	 	Quantization levels (allows restriction on range of qualities used during rate
control functions)
	 
	 	•	 	Output destination (typically a local file set in the ME format that includes
audio, video, index, and production metadata)

The technology as extended by this agreement will support controlling the encoding process across a
large span of AVI files to encompass the requirements of entire movie length material (at least
support for two hours). The encoding process allows the media engineer to view the movie as one,
seamless object even if many local disk files are required to hold it. The encoding tool contains a
viewing process that allows the media engineer to index the movie. This primarily refers to
selecting a frame and giving it a name or mnemonic. These indices may be used by the engineer to
demark scenes and/or other control points within the encoding (viewing) process.

The technology supports specifying different encoding parameters for each scene, allowing a movie
to be formatted at various combinations of quality and frame rate settings. Even resolution may be
changed when encoding from one scene to the next. Indices may also be used to force key frame
insertion and synchronization points for other data. The encoding process automatically
synchronizes audio and video that are contained in the same input source, but also supports
synchronizing other forms of data. It is acknowledged in this agreement that the technology will
support encoding synchronization of script oriented text data for purposes of synchronized display
and extensive video search.

					
	 	 	 	 	 
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2.3 Video Archive

The technology provides APIs to control the processes of uploading the ME format media into an
archive that supports media distribution and rendering. The underlying engine components reside in
both the execution time client and server(s). The archive structure supports maintaining more than
one copy of an object for both redundancy and for load sharing considerations. Each archive object
in the ME format has, as a minimum:

	 	•	 	Video index file(s)
	 
	 	•	 	Video data file(s)
	 
	 	•	 	Audio index file(s)
	 
	 	•	 	Audio data file(s)

Within the scope of this agreement, it is understood that the ME format will be extended to
include:

	 	•	 	Script index file(s)
	 
	 	•	 	Script data file(s)

The archive will also be extended to support the Asier encryption model.

2.4 Video Distribution

The technology provides APIs to control access to objects in the video archive, supporting object
rendering in a web distribution model. There is an underlying Java based player that supports
rendering multiple videos simultaneously on an HTML web page with programmable coordination among
the videos. The player and its supporting Javascript environment have all of the elements required
to:

	 	•	 	Access the index and data files from an archive
	 
	 	•	 	Buffer the video object such that the video starts to play quickly (typically
within 3 seconds), but can sustain interruptions in the flow of data from the server.
	 
	 	•	 	Manage the overall processor and bandwidth constraints. The player supports
bandwidth coordination among the videos that are playing simultaneously. Each video
can be designated as “primary” or “secondary”. When initial buffering occurs,
primaries are able to get to the initial fast start state (3 seconds worth of render
time) before a secondary may start. At any time while playing/buffering, the
secondary(s) will back off if a primary is about to stall for lack of data. Any video
may have its buffering bandwidth effect controlled to a percentage of its computed
average bandwidth requirement (i.e., a video may be loaded at 110% of its average bit
rate rather than loading as fast as it can — ME supports both paradigms).
	 
	 	•	 	Start a video on any designated frame. The player supports an API that includes a
request to play from frame(x) to frame(y) and/or start playing to end at frame(x).
This is used to effect slider drag operations that allow the subscriber to advance or
backup to any position within a movie with no dependence on prior buffering.

					
	 	 	 	 	 
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	 	•	 	Render the video from an internal memory cache. The video is buffered from a stream
and is not stored on the local disk. Thus, a two hour movie is never completely
contained within the client machine.
	 
	 	•	 	Support a coordinated actor/director rendering paradigm. Each video rendered on the
web page is represented by a Java actor. The page also contains, in this paradigm, a
Java director that controls everything visualized by the actor(s) on the page. The
director contains a context for each video being managed by it. At any instant in
time, an actor is associated (receiving rendering data) with one context within the
director. The director may have more contexts than actors in order to buffer video
data before it is needed. The contexts may be programmed to trigger events when they
get to certain states (i.e., when playing a particular frame, when there is enough
data buffered to safely play, when the user clicks on an actor associated with the
context, etc.). Each context also supports a complete API control mechanism. The
combination of the event architecture and the API allows the context events to trigger
control actions in other contexts. This supports a high degree of coordination between
videos on the page. As a video plays to certain frames (arrives at certain scenes),
another video (or image) on the page may be triggered to take an action.
	 
	 	•	 	Automatically recover from server disconnects. When connected to a web server to
pull the video data, the player will encounter frequent disconnects during the course
of a two hour period. The technology supports automatically detecting that this has
occurred and to reconnect before the object buffer is drained.
	 
	 	•	 	Automatically select from multiple object formats. Any ME archive object may be
represented in more than one format (resolution, frame rate, etc.). The player
environment is capable of analyzing the processor speed and available bandwidth and
selecting an appropriate format. The player may also be directed to select or change
formats while playing and not be required to start over.
	 
	 	•	 	Restrict access to the video. The Java player is restricted to operation within a
specific web domain. If a different web page tries to activate a player not authorized
for it, the player will fail to run. It is understood that under this agreement, this
security model will be extended to support the Asier encryption model.
	 
	 	•	 	Support complex ME formats. The complex ME object format is structurally the same,
but supports dynamic frame rate and resolution settings. The video may use a different
frame rate for each included scene.

2.5 Video Chat

The technology provides a comprehensive solution for live video chat. The chat architecture
includes a client API that supports:

	 	•	 	Connecting the client to a VXN server. This operation results in an internal
endpoint or IP address that is used to route data from one chat client to another.
	 
	 	•	 	Enabling local camera capture. The video from the camera is automatically made
available to the internal chat architecture for both local display and transmission to
the server for use in the chat conference.

					
	 	 	 	 	 
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	 	•	 	Making a call. The API allows the local client to make a call through the VXN
connection to anyone connected to the VXN by referencing the destination’s endpoint
address. After the appropriate handshake, this will cause the local client’s audio and
video to be transmitted to the destination.
	 
	 	•	 	Making multiparty calls. The technology supports up to an 8 party call, depending
on available bandwidth.
	 
	 	•	 	Controlling call parameters. The API supports controlling parameters that affect
the destination’s user experience and the bandwidth usage for both parties. These
include resolution, frame rate, and quality settings. Most parameters can be changed
mid-call.
	 
	 	•	 	Making audio only calls.
	 
	 	•	 	Interoperation with H.323 devices.

3. Deliverables

The technology consists of a combination of source and object (executable) code and associated
documentation:

	 	•	 	ME encoder Windows dynamic link library executables
	 
	 	•	 	ME encoder controller Java applet executable
	 
	 	•	 	ME player Java applet executable
	 
	 	•	 	ME upload applet executable
	 
	 	•	 	ME installer applet executable
	 
	 	•	 	ME chat installer executable
	 
	 	•	 	ME chat engine Java applet executable
	 
	 	•	 	ME chat engine Windows dynamic link library executables
	 
	 	•	 	ME media service controller JavaScript source code
	 
	 	•	 	ME media engine hosting service PHP executable (obfuscated source code)

4. Intellectual Property

All eViewMediaEngine software and other Intellectual Property associated with the technology
described here remains the sole property of ESPRE. The Software & Royalty License Agreement
conveys to First Vision the Intellectual Property protection associated with all patents (pending
and issued) owned by ESPRE for the technology, including all those listed in Addendum D.

					
	 	 	 	 	 
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Schedule B

ESPRE Consulting Services

Revision 0

21-Jan-2008

Notices

	 	 	 
	Copyright

	 	© Copyright ESPRE Solutions, Inc., 2006. All rights are reserved.
	 
	 	 
	Notice

	 	The information contained in this document is confidential and
proprietary. It is for internal use by ESPRE Solutions, Inc,
only.
	 
	 	 
	 

	 	This document may only be distributed outside of ESPRE Solutions
with express written permission from ESPRE Solutions.
	 
	 	 
	 

	 	ESPRE Solutions, Inc. shall not be liable for incidental or
consequential damages in connection with, or arising out of the
furnishing, performance, or use of this document and the program
material which it describes.

Revision History

	 	 	 	 	 
	Date	 	Reason For Changes	 	Revision
	April 2006
	 	Initial draft	 	0

					
	 	 	 	 	 
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5. Introduction

5.1 Purpose

This document describes the Engineering consulting services provided by ESPRE Solutions, Inc.

5.2 Intended Audience

This document is intended for use by partners of ESPRE Solutions who would like to use the
engineering skills, knowledge and technology of ESPRE Engineering to develop video application
solutions.

5.3 Acronyms and Terminology

The term Video Applications  is used within this document to mean the ability to record
audible and visual information, encode it for efficient and protected transmission, present it to
end users via web access and email and to manage the entire end to end process.

					
	 	 	 	 	 
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6. Consulting Services

6.1 Engineering services

	 	1.	 	Solution Architecture and System Design
	 
	 	 	 	Designs the end to end solution and the inter-working of all components of the solution to
achieve the stated business and technology goals. Sets direction for technology evolution.
	 
	 	2.	 	System Requirements Analysis
	 
	 	 	 	Defines of product and project requirements to achieve functional goals, defines phases and
milestones for best fit to cost and schedule goals. Gets concurrence among all vested
parties on requirements definition and allocation.
	 
	 	3.	 	Software Development Senior Engineer
	 
	 	 	 	Leads team of development engineers, provides direction for difficult and complex
technology implementation. Designs database, structure and data flow. Develops design
specifications.
	 
	 	4.	 	Software Development Programmer
	 
	 	 	 	Implements design, writes code and documents. Performs code review, unit testing, module
testing and integration testing.
	 
	 	5.	 	System Test Senior Enginee
	 
	 	 	 	Designs test requirements, test strategy, test environment, test procedures, and test
methodology to achieve thorough coverage of the system requirements.
	 
	 	6.	 	System Test Engineer
	 
	 	 	 	Executes Test Plans, Analyzes test failures, Performs debugging.
	 
	 	7.	 	System Testing Equipment
	 
	 	 	 	Hardware and Software needed for testing products developed with ESPRE Engineering services
will be covered in the project plan.
	 
	 	8.	 	System Integration with 3rd Party Products or Systems
	 
	 	 	 	Tests multiple products within the solution and testing interaction with products other
than those developed with ESPRE Engineering services.

					
	 	 	 	 	 
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	 	9.	 	Project Management
	 
	 	 	 	Performs Project planning, tracking and reporting. Establishes project Phases &
Milestones, Defines Workflows and Deliverables. Controls phase transitions. Coordinates
Project execution. Sets quality standards. Establishes Guidelines, process Checklists,
Roles and Responsibilities. Coordinates Project documentation, Training, and Support.

6.2 Other ESPRE Consulting Roles

	 	1.	 	Systems Modeling
	 
	 	 	 	Performs analysis of solution, system or product level operation, data flow, resource usage
and performance according to system design, performance criteria and empirical data.
Develops models to identify bottlenecks, weaknesses and improvement opportunities.
	 
	 	2.	 	Patent Development
	 
	 	 	 	Develops patent applications for proprietary and confidential intellectual property to
protect business interests.

					
	 	 	 	 	 
	ESPRE/VIZEO
	 	Software and Royalty License Agreement
	 	23

 

 

7. Consulting Services Charging Rates

	 	 	 
	ESPRE Development Engineering Consulting	 	Charging Rate
	 
	 	 
	System Architecture and Design

	 	$150 per hour
	 
	 	 
	System Requirements Analysis

	 	$120 per hour
	 
	 	 
	Software Development Senior Engineer

	 	$100 per hour
	 
	 	 
	Software Development Programmer

	 	$85 per hour
	 
	 	 
	System Testing Design

	 	$100 per hour
	 
	 	 
	System Test Engineer

	 	$85 per hour
	 
	 	 
	System Testing Equipment

	 	10% over Equipment and Supplies Cost
	 
	 	 
	System Integration with 3rd Party
Products or Systems

	 	$100 per hour
	 
	 	 
	Project Management

	 	15% of selected Development Engineering
Estimate
	 
	 	 
	 

	 	Rates at 35 hours per week
	 
	 	 
	Other ESPRE Consulting Roles	 	 
	 
	 	 
	Systems Modeling

	 	$120 per hour
	 
	 	 
	Patent Development

	 	$250 per hour
	 
	 	 
	 

	 	Rates quoted at 35 hours per week

					
	 	 	 	 	 
	ESPRE/VIZEO
	 	Software and Royalty License Agreement
	 	24

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