Document:

EXHIBIT 10.30

 

November 17, 2014

CONSULTING AND CO-DEVELOPMENT AGREEMENT

THIS AGREEMENT made as of the 17th day of November, 2014, (the “Effective Date”) AMONG:

 

Gogii Games Corp., a corporation incorporated under the laws of the Province of New Brunswick (Canada) and having its registered office at 713 Main Street, 3rd Floor, Moncton, NB, Canada E1C 1E3 (hereinafter “Gogii”)

 

-and-

 

Freeze Tag, Inc., a corporation incorporated under the laws of the State of Delaware (USA) and having its registered office at 18062 Irvine Blvd., Suite 103, Tustin, CA, USA 92780 (hereinafter “Freeze Tag”)

 

WHEREAS Gogii and Freeze Tag are both engaged in the business of developing and distributing computer software games for consumer end users;

 

AND WHEREAS Gogii has extensive experience in such game development and has developed a game engine and framework entitled the ‘Kingdoms Engine’ (the “Engine”) that can be utilized to accelerate the development of software games;

 

AND WHEREAS Freeze Tag desires to license Gogii’s Engine and also desires to engage the services of Gogii to co-develop and integrate a certain computer software game for certain platforms (the “Software”) using the Engine, and Gogii is willing to license its Engine and provide such services to Freeze Tag.

 

NOW THEREFORE in consideration of the mutual covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows:

 

1. CO-DEVELOPMENT AND INTEGRATION  

 

	 	
1.1

	
Freeze Tag hereby engages Gogii to (a) co-develop and/or integrate the Software using the Engine, and (b) create, where necessary, visual characteristics, screen images, “look and feel,” and any other necessary distinctive art and design features and characteristics required for the Software (collectively, the “Design and Art”) of the game or games set out in Schedule "A" attached hereto (collectively all of the foregoing is hereinafter the "Product"). To the extent necessary and commercially reasonable, Gogii shall make modifications to the Engine to allow the Product to function in substantial conformity with the Product Specifications, as hereinafter defined.

  

	 
	
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1.2

	
The Product shall be co-developed and/or integrated by Gogii for use on a platform or platforms, as set out in Schedule “A” attached hereto. Gogii and Freeze Tag shall consult and co-operate with each other on a regular basis with respect to progress being made in the co-development and/or integration of the Product, with Freeze Tag having the final approval for the Product.

	 	
 

	 
	 	
1.3

	
Freeze Tag shall provide Gogii with the necessary assets to allow for the co-development and/or integration of the Product, as set out in Schedule “C” attached hereto (the “Assets”), in accordance with the schedule outlined in Schedule “B”, also attached hereto. Each post-Asset Delivery Milestone, as hereinafter defined, must be approved or disapproved in accordance with Section 5 below.

  

2. OWNERSHIP

 

	 	
2.1

	
Freeze Tag shall be the exclusive owner of all right, title, and interest in and to the Product, expressly excepting and excluding the Engine or any modifications to the Engine or derivatives thereof, but including (without limiting the foregoing) the Software, Design and Art, Assets and all other intellectual property of any nature or kind and all rights associated therewith, including without limitation, all rights of copyright, patent, trade secret, trade-mark, service mark, trade dress, artistic and moral rights, mask rights, character rights, publicity rights, and any and all other proprietary rights of any kind whatsoever relating to the Product or derivative works of any of the foregoing (collectively, the “Product Rights”) together with any and all applications, registrations, renewal and extension rights, and rights to sue for any past, present, or future infringement. To the extent that Gogii has or obtains any right, title or interest in the Product Rights, it hereby transfers, sells, and assigns to Freeze Tag all of its worldwide right, title, and interest in and to the Product Rights and hereby expressly waives in favour of Freeze Tag (or any assignee, license or sub-licensee thereof) any and all moral or similar non-assignable rights relating to the Product Rights provided that nothing herein shall transfer any right, title or interest in and to the Engine or any modifications made using the Engine to the Product.

	 	
 

	 
	 	
2.2

	
Gogii shall be the exclusive owner of all right, title, and interest in and to the Engine or any modifications to the Engine or any derivatives of the Engine (whether created by Gogii or Freeze Tag), including (without limiting the foregoing) all intellectual property of any nature or kind and all rights associated therewith, including without limitation, all rights of copyright, patent, trade secret, trade-mark, service mark, trade dress, artistic and moral rights, mask rights, character rights, publicity rights, and any and all other proprietary rights of any kind whatsoever relating to the Engine or derivative works of any of the foregoing (collectively, the “Engine Rights”) together with any and all applications, registrations, renewal and extension rights, and rights to sue for any past, present, or future infringement. To the extent that Freeze Tag has or obtains any right, title or interest in the Engine Rights, it hereby transfers, sells, and assigns to Gogii all of its worldwide right, title, and interest in and to the Engine Rights and hereby expressly waives in favour of Gogii (or any assignee, license or sub-licensee thereof) any and all moral or similar non-assignable rights relating to the Engine Rights.

   

	 
	
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3. LICENSE

 

	 	
3.1

	
Gogii hereby grants to Freeze Tag and Freeze Tag hereby accepts a non-exclusive, worldwide and perpetual license to use the Engine solely to the extent the Engine is incorporated in or necessary to use the Product in conformity with the Product Specifications. As part of this license, Freeze Tag shall have such source code access and right to make modifications to the Engine (such modifications subject to Sub-section 2.2) solely as reasonably necessary to allow the Product to function in substantial conformity with the Product Specifications. Freeze Tag shall have no other rights to the Engine, except as herein provided.

	 	
 

	 
	 	
3.2

	
Freeze Tag shall be allowed to sub-license the license granted by this Section 3 to end users of the Product solely and to the limited extent necessary to allow them to use the Product and such sub-license shall not allow such users to access or view the source code, disassemble, decompile or otherwise reverse engineer the Engine or to make any derivatives thereof or modifications thereto.

	 	
 

	 
	 	
3.3

	
The license to Freeze Tag in this Section 3 shall be irrevocable, provided that Freeze Tag is not in default of any of its obligations (including payment obligations) under this Agreement and provided that this Agreement has not otherwise expired or been terminated.

  

4. PHASES OF CO-DEVELOPMENT AND INTEGRATION

 

	 	
4.1

	
The Product shall be co-developed and/or integrated in the phases and in substantial conformity with the schedule described in Schedule "B" attached hereto (each, a “Milestone”) and in accordance with any specifications set out in Schedule “A” attached hereto or other specifications as may be agreed to from time to time by the parties (the “Product Specifications”).

	 	
 

	 
	 	
4.2

	
Should Freeze Tag request any modifications to the Milestones and/or the Product Specifications, Gogii shall provide Freeze Tag with a change order proposal for such requests, detailing the cost and schedule impact of such requested changes, if any. Freeze Tag shall review the change order proposal within five (5) days of submission and shall either approve or disapprove the change order in writing. If the change order proposal is approved, it shall be an amendment to this Agreement. If the change order proposal is disapproved, Gogii is under no obligation to make the requested changes. In case Freeze Tag fails to notify Gogii in writing as to whether the change order proposal was approved or disapproved within the five (5) days, the change order shall be considered automatically disapproved at that time.

	 	
 

	 
	 	
4.3

	
The parties, by mutual written agreement, may make any other modifications to the Milestones and/or the Product Specifications.

   

	 
	
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5. REVIEW AND ACCEPTANCE

 

	 	
5.1

	
Upon completion of each of the post-Asset Delivery Milestones, Gogii shall provide a notice to this effect to Freeze Tag (the “Completion Notice”).

	 	
 

	 
	 	
5.2

	
After the receipt of each Completion Notice by Freeze Tag, Freeze Tag and Gogii shall consult and cooperate with each other to determine whether the work undertaken during such Milestone substantially conforms to the applicable Product Specifications and/or Milestone requirements. Each such Milestone must be approved by Freeze Tag within five (5) days of receipt of the applicable Completion Notice and if the Milestone is not approved, Freeze Tag shall notify Gogii in writing as to why the Milestone was not approved in accordance with this Section 5, by the issuance of a Defect Notice, as hereinafter defined. In case Freeze Tag fails to notify Gogii in writing as to whether the Milestone was approved or fails to issue a Defect Notice in writing within the five (5) days, the Milestone shall be considered automatically approved at that time and it shall be deemed that the work conforms to the applicable Product Specifications and/or Milestone requirements.

	 	
 

	 
	 	
5.3

	
In the event Freeze Tag determines, acting reasonably, that the work covered by a Completion Notice does not substantially conform to the applicable Product Specifications and/or Milestone requirements, Freeze Tag shall provide written notice to Gogii containing a detailed description of the failure to conform (the “Defect Notice”). Within five (5) days after its receipt of the Defect Notice, Gogii shall make such commercially reasonable corrections or modifications as may be necessary for the work to substantially conform with the applicable Product Specifications and/or Milestone requirements and issue a revised Completion Notice and thereafter the procedures of this this Section 5 shall apply with such modifications as necessitated by the context, provided, however that should Freeze Tag issue a second Defect Notice for the same Milestone, the parties shall consult and cooperate with each other to determine how to proceed, including considering reasonable modifications to the applicable Product Specifications and/or Milestone requirements.

  

6. COMPENSATION, ROYALTIES AND AUDITS

 

	 	
6.1

	
As compensation for its performance of co-development and integration services hereunder, Freeze Tag shall pay Gogii in accordance with the payments described in Schedule "B" (weekly payments referenced therein, notwithstanding the Effective Date, shall accrue effective as of the week starting November 3, 2014), unless otherwise modified by an approved change order proposal in accordance with Section 4, above. With the exception of the initial payment payable immediately upon the execution of this Agreement, Gogii shall invoice Freeze Tag on bi-weekly basis and Freeze Tag shall pay such invoice within five (5) days of receipt, in any manner as reasonably determined and requested by Gogii.

	 	
 

	 
	 	
6.2

	
As compensation for the license to the Engine described in Section 3, above, Freeze Tag shall pay Gogii the amounts payable for maintenance and technical support services, pursuant to Sub-section 10.2.

   

	 
	
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7. AUTHORIZATIONS

 

	

	
Except with respect to the Engine provided by Gogii, Freeze Tag shall be solely responsible for obtaining and shall obtain any and all consents, permits, licenses, releases, and any other authorizations required in connection with the use, sale of distribution of the Product, including with the use of any copyrighted materials, patents, trade secrets, trade-marks, service marks, trade dress, characters, or any other proprietary materials used as a part of or in connection with the Product.

  

8. REPRESENTATIONS AND WARRANTIES

 

	 	
8.1

	
Each party represents and warrants to the other party that:

  

	 	 	
8.1.1

	
It is authorized to enter into this Agreement and has the capacity to perform its obligations under this Agreement; and

	 	 	
 

	 
	 	 	
8.1.2

	
It is not a party to, subject to or bound by any agreement, contract, license, sub-license or any other commitment of any kind with any third party that would prevent, or that would be breached or violated by, the execution, performance and delivery of this Agreement.

  

	 	
8.2

	
Freeze Tag represents and warrants to Gogii that the use of the Assets, as provided for in this Agreement, do not infringe the intellectual property or other proprietary rights of any other party (including, without limitation, any privacy, publicity or moral rights).

	 	
 

	 
	 	
8.3

	
Gogii represents and warrants to Freeze Tag that:

  

	 	 	
8.3.1

	
Gogii has the right and authority to grant Freeze Tag the license to use the Engine as set out in this Agreement;

	 	 	
 

	 
	 	 	
8.3.2

	
The use of the Engine, as provided for in this Agreement, does not infringe the intellectual property or other proprietary rights of any other party (including, without limitation, any privacy, publicity or moral rights); and

	 	 	
 

	 
	 	 	
8.3.3

	
The co-development and/or integration of the Product shall be performed using commercially reasonable practices applicable to computer software game development.

   

	 
	
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9. WARRANTY ON THE PRODUCT

 

	

	
Gogii warrants that the Product shall be free of material defects and shall operate substantially in accordance with any Product Specifications. In the event of a material defect in the Product that exists due to the negligence of Gogii, Gogii shall, at no expense to Freeze Tag or a consumer end user, make such repairs, corrections, adjustments, replacements, or changes in the Product as may be commercially reasonable in Gogii’s sole discretion under the circumstances. Gogii shall have no obligations under this Section in the event the Product or Engine is misused or damaged as a result of the actions of Freeze Tag or a consumer end user. Except as provided herein, there are no other warranties, express or implied, in respect of any services to be performed by Gogii or in respect of the Software or Product or the Engine.

  

10. OTHER SERVICES, MAINTENANCE AND TECHNICAL SUPPORT

 

	 	
10.1

	
At the request of Freeze Tag, Gogii may elect to provide such other services as may be requested by Freeze Tag in connection with the Product, including, the development of modifications and improvements, localization, facilitating delivery of the Product by downloading from the Internet, and facilitating compatibility with new and/or modified operating systems and/or computer hardware. Any and all such other services will be on terms and conditions (including compensation rates) as the parties agree to and Gogii shall be under no obligation to provide any such further services should an agreement not be reached.

	 	
 

	 
	 	
10.2

	
Gogii shall provide Freeze Tag with such maintenance and technical support in relation to the Engine and/or Product, after the Product has reached the Final Milestone as may be commercially reasonable and as requested by Freeze Tag. Freeze Tag hereby agrees that it shall pay for such maintenance and technical support at the then current Gogii rates for such services, provided, however, that Freeze Tag shall pay Gogii a minimum of AMOUNT HERE per month for at least six (6) months after the Product has reached the Final Milestone, irrespective of Freeze Tag’s use or non-use of such services, in consideration for having the right to access such services. Gogii shall invoice Freeze Tag for any such services (including any minimums prescribed) and such invoices shall be payable by Freeze Tag within five (5) days of receipt of such invoice, in any manner as reasonably determined and requested by Gogii.

  

11. CONFIDENTIAL INFORMATION

 

	 	
11.1

	
All of the trade secrets and other confidential information of Gogii and Freeze Tag, including without limitation, methods, processes, marketing plans, strategic plans, customer lists, computer software, and financial information shall be maintained in confidence, and neither Gogii nor Freeze Tag shall, during the term of this Agreement or subsequent to the expiry or termination of this Agreement, whether such termination is voluntary or involuntary, divulge to any person or organization, or use in any manner whatsoever, directly or indirectly, for any reason whatsoever, any of the trade secrets or confidential information of the other party without receiving the prior written consent of the other party, except as may be legally required. Gogii and Freeze Tag shall take such actions as may be reasonably necessary to ensure that their employees and agents are bound by the provisions of this Section, which actions shall, as may be reasonably requested by either party, include the execution of written agreements with the employees and agents of the other party.

	 	
 

	 
	 	
11.2

	
For the avoidance of doubt, the provisions of this Section shall not apply to information received by a party from the other party when that information: (a) was rightfully possessed by such party before it was received from the other party; (b) is independently developed by such party without reference to the other party’s information or data; (c) is subsequently furnished to such party by a third party not under any obligation of confidentiality with respect to such information or data, and without restrictions on use or disclosure; or (d) is or becomes public or available to the general public otherwise than through any act or default of such party.

   

	 
	
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12. INDEMNIFICATION

 

	

	
Each party (the “Indemnifying Party”) and its successors and assigns shall indemnify, defend, and hold harmless the other party (the “Indemnified Party”) and its successors and assigns from and against and in respect of any and all claims, demands, losses, costs, expenses, obligations, liabilities, damages, recoveries and deficiencies, including interest, penalties and reasonable attorneys’ fees, that the Indemnified Party may incur or suffer, which arise, result from or relate to any claims asserted against the Indemnified Party relating to the Indemnifying Party’s breach of any of its representations or warranties specified in this Agreement, or the Indemnifying Party’s failure to perform any of its obligations pursuant to the provisions of this Agreement.

  

13. TERM AND TERMINATION 

 

	 	
13.1

	
This Agreement shall continue indefinitely unless it is terminated in accordance with the provisions of this Agreement. All amounts accrued and owing to Gogii by Freeze Tag up until the time of such termination shall become immediately payable upon such termination and all rights granted by either party to the other party shall also immediately terminate, including any and all license rights that Freeze Tag may have to the Engine.

	 	
 

	 
	 	
13.2

	
Gogii and Freeze Tag may terminate this Agreement upon mutual consent, on such terms and conditions as they may agree to.

	 	
 

	 
	 	
13.3

	
Gogii or Freeze Tag, as applicable, may immediately terminate this Agreement upon the occurrence of any of the following:

  

	 	 	
13.3.1

	
By either party after providing at least sixty (60) days prior written notice of termination to the other party.

	 	 	
 

	 
	 	 	
13.3.2

	
By either party in the event of the other party’s failure to substantially perform any of its obligations under this Agreement after the expiration of thirty (30) days from receipt of a written notice from the other party communicating such failure, and such failure to perform is not cured within such thirty (30) day period.

	 	 	
 

	 
	 	 	
13.3.3

	
By either party in the event the other party shall initiate or have initiated against it, voluntarily or involuntarily, any act, process or proceeding under the provisions of any bankruptcy law, or under any other insolvency law or other statute or law providing for the modification or adjustment of the rights of creditors, which act, process, or proceeding is not dismissed within sixty (60) days after it has been initiated.

   

	 
	
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14. GENERAL PROVISIONS 

 

	 	
14.1

	
Nature of Relationship - The provisions of this Agreement shall not in any respect whatsoever be deemed to create a partnership, joint venture, or other business combination between Gogii and Freeze Tag. Gogii and Freeze Tag shall conspicuously identify themselves to all persons and organizations as independent contractors and shall not represent or imply to any other person or organization that this Agreement authorizes either Gogii or Freeze Tag to act as an agent for or on behalf of the other party, other than as provided for in this Agreement. Neither Gogii nor Freeze Tag shall be obligated by any agreement, representation or warranty made by the other, nor shall Gogii or Freeze Tag be obligated for damages to any person or organization for personal injuries or property damage directly or indirectly arising out of the conduct of the other party’s business or caused by the other party’s negligence, willful act, or failure to act. As independent contractors, Gogii and Freeze Tag shall be separately responsible for the payment of their income or other taxes. In addition, Gogii and Freeze Tag shall be separately responsible (if and where legally required) for carrying workers’ compensation insurance on themselves and their employees and agents.

	 	
 

	 
	 	
14.2

	
Further Assurances - Each party shall, from time to time, during or after the term of this Agreement, promptly execute and deliver all further documents without any further compensation, and take all further action necessary or appropriate to give effect to the provisions and intent of this Agreement.

	 	
 

	 
	 	
14.3

	
Force Majeure - Neither Gogii nor Freeze Tag shall be in breach of this Agreement in the event they are unable to perform their obligations under this Agreement as a result of natural disaster, war, emergency conditions, labor strife, the substantial inoperability of the Internet, the inability to obtain supplies, or other reasons or conditions beyond their reasonable control; provided, however, if such reasons or conditions remain in effect for a period of more than ninety (90) days, either Gogii or Freeze Tag may terminate this Agreement without further liability to the other party.

	 	
 

	 
	 	
14.4

	
Remedies - Injunctive or other equitable relief shall be a remedy available to either party in the event of a breach of any provision of this Agreement by the other party, but such remedy shall not be the exclusive remedy available to the parties.

	 	
 

	 
	 	
14.5

	
Notices - Any notices required or permitted to be given under this Agreement shall be sufficient if in writing and personally delivered or sent by certified mail, express courier, e-mail or facsimile to the other party at its address set forth in this Agreement, or at such other address or addresses as the parties shall designate in writing by personal delivery, certified mail, express courier, e-mail or facsimile.

   

	 
	
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Gogii’s e-mail:

	EMAIL HERE
	 	
 

	
Gogii’s Facsimile:

	[insert]
	 	
 

	
 

	 
	 	
 

	
Freeze Tag’s e-mail:

	EMAIL HERE
	 	
 

	
Freeze Tag’s Facsimile:

	
714-210-3851

  

	 	
14.6

	
Survival - The provisions of this Agreement which, by their terms, require performance after the termination of this Agreement, or have application to events that may occur after the termination of this Agreement, shall survive the termination of this Agreement.

	 	
 

	 
	 	
14.7

	
Assignment and Delegation - Neither party shall, without the prior written consent of the other party, which consent shall not be unreasonably withheld, assign their rights or delegate their duties under this Agreement; provided, however, after providing the other party with at least thirty (30) days prior written notice, either party may assign its rights and delegate its duties under this Agreement to a person or organization that has directly or indirectly acquired all or substantially all of the business of such party, whether by means of an asset sale, stock sale, merger, reorganization, consolidation, or otherwise.

	 	
 

	 
	 	
14.8

	
Successors in Interest - The provisions of this Agreement shall be binding upon and enure to the benefit of the parties and their permitted successors and assigns.

	 	
 

	 
	 	
14.9

	
Waiver - The waiver of any provision or the breach of any provision of this Agreement shall not be effective unless made in writing. Any waiver by either party of any provision or the breach of any provision of this Agreement shall not operate as or be construed to be a continuing waiver of the provision or the breach of the provision.

	 	
 

	 
	 	
14.10

	
Situs and Jurisdiction - This Agreement shall be governed by the laws of the Province of New Brunswick and the federal laws of Canada applicable therein. Each party irrevocably attorns to the non-exclusive jurisdiction of the courts of the Province of New Brunswick (Canada).

	 	
 

	 
	 	
14.11

	
Severability - In the event any portion of this Agreement shall be held to be invalid, the same shall not affect in any respect whatsoever the validity of the remainder of this Agreement.

	 	
 

	 
	 	
14.12

	
Entire Agreement - This Agreement sets forth the entire understanding between the parties with respect to the subject matter hereof, there being no terms, conditions, warranties, or representations other than those contained in this Agreement, and no amendments shall be valid unless made in writing and signed by the parties to this Agreement.

	 	
 

	 
	 	
14.13

	
Form and Counterparts - This Agreement and any amendment, supplement, restatement or termination of any provision of this Agreement may be executed in any number of counterparts, each of which when executed and delivered (including by facsimile copy or by scanned copy attached to an email) is an original, but all of which when taken together constitute a single instrument.

  

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November 17, 2014

 

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

 

 

	 	Gogii Games Corp. 	 
	 	 	 	 
		Per: 		 
	 	 	George Donovan, Director	 
		
 

	
		
 

	
	 	
Freeze Tag, Inc.

	 
		 	 	
		Per:		
			
Craig Holland, CEO

	

  

	 
	
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November 17, 2014

 

Schedule "A"

Product and Specifications

 

The Products to be co-developed and/or integrated using the Engine are as follows:

 

	
Product

	
Platforms

	
Black Forest (working title)

	
iOS 7.0+

	 	
Ipad Only

 

Specifications:

 

Developed with Unity 4.5.5

 

	 
	
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Scheule B"Schedule "B"

 

Milestones

 

	
Milestone

	
Definition

	
Condition of Approval

	
Date

	
Payments by Freeze Tag

	
Signing

	
The parties execute this Agreement

	
Execution of Agreement

	
November 17 2014

	
PAYMENT TERMS HERE

	
Asset Delivery

	
Assets contemplated by Schedule “C” to be delivered by Freeze Tag to Gogii

	
Assets received in formats and manner acceptable to Gogii, reviewed, and approved for implementation into the Engine.

	
November 17 2014

	
Project Setup and Initialization

	
Gogii baseline Engine prep and customization for new game

	
Technical outline for game features received and development roadmap approved by both parties; Engine ready for art import.

	
November 17 2014

	
First Build

	
Available map and HO art assets implemented in-game

	
All art assets provided at the outset are implemented in the Engine to specification

	
November 28 2014

	
Second Build, First Playable

	
Apothecary and Greenhouse systems functional in-game

	
Functionality of the Apothecary and Greenhouse game features are available in-game and linked to the UI and world map.

	
December 12, 2014

	
Third Build

	
Mini-game logic design and art integration

	
Minigame features implemented as designed and logic functioning as expected.

	
December 29 2014

	
Beta

	
Functional game ready for playtesting of all features designed for soft-launch.

	
Freeze Tag confirms functionality with smoke testing. Gogii Games internal testing team signs off on functional build for wide-scale beta testing. Authority on bug waivers resides with Gogii for Beta.

	
January 12, 2014

	
GM Submission

	
Revised game has feedback and changes from Beta implemented and tested.

	
Gogii Games internal testing team approves game for GM submission for soft-launch, and submits the game to platform for release.

	
January 23, 2014

  

	 
	
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Schedule “C”

The Assets

 

Freeze Tag shall provide Gogii with the following assets, in a format and manner reasonably acceptable to Gogii, in order to allow Gogii to provide the services contemplated by this Agreement.

 

Swap-able Art Assets 

 

Hidden Object Scenes 

PSD Format - Items as well as background included.  

Resolution 1280x800 (Cut at 1024 vertically to fit on one atlas)

 

Regular Find Items 

All items that should appear on the find list need to be surrounded by quotes in the PSD's layer name. 

"Brick" 

"Lavender" 

etc...

 

Generic Layers 

Any layers not containing quotation marks are treated as prop layers and are not interactive. 

 

Multiple Items 

Each findable item in the game (whether it's a Regular Find Item or an Ingredient) should have multiple hiding places in an HO. Simply name multiple layers exactly the same, and when the scene is loaded, only one of the layers will appear; the rest will be switched off.

 

Ingredients 

All ingredients must have the suffix of reqN, where 'N' is the ingredient's corresponding building level.

 

Using the Mayor's Office as an example: 

Level 1: Phoenix Feather 

Level 2: Lavender

Level 3: Disappearing Ink 

etc...

 

... you should have layers in the psd that look like: 

"Phoenix Feather" req1 

"Lavender" req2 

"Disappearing Ink" req3 

etc...

 

* Since your buildings don't have levels, all visible ingredients that appear on the find list should be marked req1

 

	 
	
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Map 

2048x2048 One Atlas - Square layout (We did ocean behind ours, really it's up to you. Fill the whole atlas it's more desirable. 

Separate layers you want to remove during unlock events. 

 

Characters 

​Individuals PSDs for the following:

- Quest Bubble Heads (Side)

- Character Map Icons

- Dialogue Poses 

 

User Interface (Gogii to Provide)

Breakdown function of each UI component and include a demo image for each set (Map UI, HO UI, Mini-Game UI)

9 Sliced buttons, holders, boxes for assembly with NGUI (can provide examples if needed) 

All currency icons, items, potions. 

 

New Game Elements  

Apothecary Artwork / UI

Greenhouse Artwork / UI 

 

Please provide examples of layout as well. Icons for potion ingredients and potions should be included as well, so we can get a good head start on the systems needed. 

 

Mini-Game Artwork  

Individual artwork implemented in the mini-games delivered by Freeze Tag

 

 

14EXHIBIT 10.31

 

CONVERTIBLE PROMISSORY NOTE 

$500,000

 

FOR VALUE RECEIVED, Freeze Tag, Inc., a Delaware corporation, (the “Borrower”) with approximately 184,518,250 shares of common stock issued and outstanding, promises to pay to Accredited Investor, or its assignees (the “Lender”) the Principal Sum along with the Interest and any other fees according to the terms herein (this “Note”). This Note shall become effective on February 11, 2015 (the “Effective Date”).

 

The Principal Sum is Five Hundred Thousand Dollars ($500,000) plus accrued and unpaid interest. The Consideration is Five Hundred Thousand Dollars ($500,000) payable by wire. The Lender shall pay Thirty Thousand Dollars ($30,000) of the Consideration upon execution of this Note (the “Initial Consideration”). The Lender may pay additional Consideration to the Borrower in such amounts as the Lender may choose in its sole discretion (the “Additional Consideration”). The Principal Sum due to the Lender, and as referenced hereinafter, shall be the Initial Consideration plus any Additional Consideration actually paid by the Lender such that the Borrower is only required to repay the amount funded and the Borrower is not required to repay any unfunded portion of this Note, nor shall any interest or other rights or remedies granted herein extend to any unfunded portion of this Note. 

 

1. Maturity Date. The Maturity Date is nine (9) months from the Effective Date of each payment of Consideration (the “Maturity Date”) and is the date upon which the Principal Sum of this Note and unpaid interest and fees (the “Note Amount”) shall be due and payable.

 

2. Interest. This Note shall bear interest at the rate of Ten Percent (10%) per year.

 

3. Conversion. The Lender has the right, at any time after the Effective Date, at its election, to convert all or part of the Note Amount into shares of fully paid and non-assessable shares of common stock of the Borrower (the “Common Stock”). The conversion price (the “Conversion Price”) shall be the lesser of (a) $0.003 per share of Common Stock or (b) Fifty Percent (50%) of the average of the three (3) lowest trade prices on three (3) separate trading days of Common Stock recorded after the original Effective Date of this Note, February 11, 2015, or (c) the lowest effective price per share granted to any person or entity after the Effective Date to acquire Common Stock or adjust, whether by operation of purchase price adjustment, settlement agreements, exchange agreements, reset provision, floating conversion or otherwise, any outstanding warrant, option or other right to acquire Common Stock or outstanding Common Stock equivalents; however, this Section 3(c) shall exclude any lower price per share offered to officers and directors of the Borrower (the “Conversion Price”). The conversion formula shall be as follows: Number of shares receivable upon conversion equals the dollar conversion amount divided by the Conversion Price. A conversion notice (the “Conversion Notice”) may be delivered to Borrower by method of Lender’s choice (including but not limited to email, facsimile, mail, overnight courier, or personal delivery), and all conversions shall be cashless and not require further payment from the Lender. If no objection is delivered from the Borrower to the Lender, with respect to any variable or calculation reflected in the Conversion Notice within 24 hours of delivery of the Conversion Notice, the Borrower shall have been thereafter deemed to have irrevocably confirmed and irrevocably ratified such notice of conversion and waived any objection thereto. The Borrower shall deliver the shares of Common Stock from any conversion to the Lender within three (3) business days of Conversion Notice delivery. The Lender shall pay the transfer agent fees for the issuance of share certificates. If the Borrower is participating in the Depository Trust Company (“DTC”) Fast Automated Securities Transfer (“FAST”) program, then upon request of the Lender and provided that the shares to be issued are eligible for transfer under Rule 144 of the Securities Act of 1933, as amended (the “Securities Act”), or are effectively registered under the Securities Act, the Borrower shall cause its transfer agent to electronically issue the Common Stock issuable upon conversion to the Lender through the DTC Direct Registration System (“DRS”). If the Borrower is not participating in the DTC FAST program, then after receiving the Initial Consideration, the Borrower agrees to begin a good faith effort to apply and cause the approval for participation in the DTC FAST program. The Conversion Price shall be subject to equitable adjustments for stock splits, stock dividends or rights offerings by the Borrower relating to the Borrower’s securities or the securities of any subsidiary of the Borrower, combinations, recapitalization, reclassifications, extraordinary distributions and similar events.

 

	 
	
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4. Conversion Delays. If Borrower fails to deliver shares in accordance with the timeframe stated in Section 3, the Lender, at any time prior to selling all of those shares, may rescind any portion, in whole or in part, of that particular conversion attributable to the unsold shares and have the rescinded conversion amount returned to the Principal Sum with the rescinded conversion shares returned to the Borrower (under the Lender’s and the Borrower’s expectations that any returned conversion amounts shall tack back to the original date of this Note). In addition, for each conversion, in the event that shares are not delivered by the fourth business day (inclusive of the day of conversion), a penalty of $2,000 per day shall be assessed for each day after the third business day (inclusive of the day of the conversion) until share delivery is made; and such penalty shall be added to the Principal Sum of this Note (under the Lender’s and the Borrower’s expectations that any penalty amounts shall tack back to the original date of this Note consistent with applicable securities laws). If the Borrower is unable to deliver shares under this provision, due to an insufficient number of authorized and unissued shares available, the Lender agrees not to force the Borrower to issue the shares or trigger an Event of Default, provided that the Borrower takes immediate steps necessary to obtain the appropriate approval from shareholders and/or the board of directors, where applicable, to increase the number of authorized shares to satisfy the Conversion Notice.

 

5. Limitation of Conversions. In no event shall the Lender be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which the sum of (1) the number of shares of Common Stock beneficially owned by the Lender and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of this Note or the unexercised or unconverted portion of any other security of the Borrower subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this Note with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Lender and its affiliates of more than 4.99% of the outstanding shares of Common Stock. For purposes of the proviso of the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso, provided, further, however, that the limitations on conversion may be waived by the Lender upon, at the election of the Lender, not less than 61 days prior notice to the Borrower, and the provisions of the conversion limitation shall continue to apply until such 61st day (or such later date, as determined by the Lender, as may be specified in such notice of waiver).

   

6. Payment. The Borrower may not prepay this Note prior to the Maturity Date. Within six (6) days prior to the Maturity Date, Borrower shall provide Lender with a written notice to pay the Note Amount on the Maturity Date. Within three (3) days of receiving written notice, the Lender shall elect to either (a) accept payment of the Note Amount or (b) convert any part of the Note Amount into shares of Common Stock and the Borrower shall pay the remaining balance of the Note Amount by the Maturity Date, or (c) modify the Maturity Date to be up to eighteen (18) months from the Effective Date.

 

7. Piggyback Registration Rights. The Borrower shall include on the next registration statement the Borrower files with the SEC (or on the subsequent registration statement if such registration statement is withdrawn) excluding S-8 registration statements for employee stock grant and option plans, all shares of Common Stock issuable upon conversion of this Note unless such shares of Common Stock are eligible for resale under Rule 144. Failure to do so shall result in liquidated damages of Twenty Five Percent (25%) of the outstanding principal balance of this Note being immediately due and payable to the Lender at its election in the form of cash payment or addition to the balance of this Note.

 

	 
	
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8. Lender’s Representations. The Lender hereby represents and warrants to the Borrower that (i) it is an “accredited investor” as such term is defined in Rule 501(a) of Regulation D promulgated under the Securities Act, (ii) it understands that this Note and the shares of Common Stock underlying this Note (collectively, the “Securities”) have not been registered under the Securities Act by reason of a claimed exemption under the provisions of the Securities Act that depends, in part, upon the Lender’s investment intention; in this connection, the Lender hereby represents that it is purchasing the Securities for the Lender’s own account for investment and not with a view toward the resale or distribution to others; provided, that Lender may syndicate participations in the Securities among a limited number of participants who all meet the suitability standards of an “accredited investor” as defined in Rule 501(a) of Regulation D of the Securities Act and will share among themselves and the Lender an economic interest in the Securities on a pari passu, pass through basis with investment intent, such that the availability of the private placement exemption for the issuance of the Note under Rule 506 of Regulation D of the Securities Act is preserved, (iii) the Lender, if an entity, further represents that it was not formed for the purpose of purchasing the Securities, (iv) the Lender acknowledges that the issuance of this Note has not been reviewed by the United States Securities and Exchange Commission (the “SEC”) nor any state regulatory authority since the issuance of this Note is intended to be exempt from the registration requirements of Section 4(a)(2) of the Securities Act and Rule 506 of Regulation D, and (v) the Lender acknowledges receipt and careful review of this Note, the Borrower’s filings with the SEC (including without limitation, any risk factors included in the Borrower’s most recent Annual Report on Form 10-K), and any documents which may have been made available upon request as reflected therein, and hereby represents that it has been furnished by the Borrower with all information regarding the Borrower, the terms and conditions of the purchase and any additional information that the Lender has requested or desired to know, and has been afforded the opportunity to ask questions of and receive answers from duly authorized officers or other representatives of the Borrower concerning the Borrower and the terms and conditions of the purchase.

 

9. Borrower’s Representations. The Borrower hereby represents and warrants to the Lender that (i) the Borrower is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization with full power and authority to own, lease, license and use its properties and assets and to carry out the business in which it proposes to engage, and (ii) the Borrower has the requisite corporate power and authority to execute, deliver and perform its obligations under this Note and to issue and sell this Note, and (iii) all necessary proceedings of the Borrower have been duly taken to authorize the execution, delivery, and performance of this Note, and when this Note is executed and delivered by the Borrower, it will constitute the legal, valid and binding obligation of the Borrower enforceable against the Borrower in accordance with their terms, except as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors' rights and remedies.

 

10. Default. The following are events of default under this Note: (i) the Borrower shall fail to pay any principal under this Note when due and payable (or payable by conversion) thereunder; or (ii) the Borrower shall fail to pay any interest or any other amount under this Note when due and payable (or payable by conversion) thereunder; or (iii) a receiver, trustee or other similar official shall be appointed over the Borrower or a material part of its assets and such appointment shall remain uncontested for twenty (20) days or shall not be dismissed or discharged within sixty (60) days; or (iv) the Borrower shall become insolvent or generally fails to pay, or admits in writing its inability to pay, its debts as they become due, subject to applicable grace periods, if any; or (v) the Borrower shall make a general assignment for the benefit of creditors; or (vi) the Borrower shall file a petition for relief under any bankruptcy, insolvency or similar law (domestic or foreign); or (vii) an involuntary proceeding shall be commenced or filed against the Borrower; or (viii) the Borrower shall lose its status as “DTC Eligible” or the Borrower’s shareholders shall lose the ability to deposit (either electronically or by physical certificates, or otherwise) shares into the DTC System; or (ix) the Borrower shall become delinquent in its filing requirements as a fully-reporting issuer registered with the SEC; or (x) the Borrower shall commit a material breach of any of its covenants, representations or warranties in this Note.

 

	 
	
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11. Remedies. In the event of any default, the funded portion of the Note Amount shall become immediately due and payable at the Mandatory Default Amount. The Mandatory Default Amount shall be 150% of the funded portion of the Note Amount. Commencing five (5) days after the occurrence of any event of default that results in the eventual acceleration of this Note, the interest rate on the Mandatory Default Amount shall accrue at a default interest rate equal to the lesser of ten percent (10%) per annum or the maximum rate permitted under applicable law. In connection with such acceleration described herein, the Lender need not provide, and the Borrower hereby waives, any presentment, demand, protest or other notice of any kind, and the Lender may immediately and without expiration of any grace period enforce any and all of its rights and remedies hereunder and all other remedies available to it under applicable law. While the Mandatory Default Amount is outstanding and default interest is accruing, the Lender shall have all rights as a holder of this Note until such time as the Lender receives full payment pursuant to this paragraph, or has converted all the remaining Mandatory Default Amount and any other outstanding fees and interest into Common Stock under the terms of this Note. In the event of any default and at the request of the Lender, the Borrower shall file a registration statement with the SEC to register all shares of Common Stock issuable upon conversion of this Note that are otherwise eligible to have their restrictive transfer legend removed under Rule 144 of the Securities Act. Nothing herein shall limit Lender’s right to pursue any other remedies available to it at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with respect to the Borrower’s failure to timely deliver certificates representing shares of Common Stock upon conversion of this Note as required pursuant to the terms hereof.

 

12. No Shorting. Lender agrees that so long as this Note from Borrower to Lender remains outstanding, the Lender shall not, Lender’s affiliates shall not, and Lender will not direct any third parties to, enter into or effect “short sales” of the Common Stock or hedging transaction which establishes a short position with respect to the Common Stock of the Borrower. The Borrower acknowledges and agrees that upon delivery of a Conversion Notice by the Lender, the Lender immediately owns the shares of Common Stock described in the Conversion Notice and any sale of those shares issuable under such Conversion Notice would not be considered short sales.

 

13. Assignability. The Borrower may not assign this Note. This Note shall be binding upon the Borrower and its successors and shall inure to the benefit of the Lender and its successors and assigns and may be assigned by the Lender, in whole or in part, to anyone of its choosing without Borrower’s approval subject to applicable securities laws. Lender covenants not to engage in any unregistered public distribution of the Note when making any assignments.

 

14. Governing Law. This Note shall be governed by, and construed and enforced in accordance with, the laws of the STATE HERE, without regard to the conflict of laws principles thereof. Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall be brought only in the state courts of STATE HERE or in the federal courts located in COUNTY HERE, in the State of STATE HERE. Both parties and the individuals signing this Agreement agree to submit to the jurisdiction of such courts.

 

15. Delivery of Process by the Lender to the Borrower. In the event of any action or proceeding by the Lender against the Borrower, and only by the Lender against the Borrower, service of copies of summons and/or complaint and/or any other process which may be served in any such action or proceeding may be made by the Lender via U.S. Mail, overnight delivery service such as FedEx or UPS, email, fax, or process server, or by mailing or otherwise delivering a copy of such process to the Borrower at its last known attorney as set forth in its most recent SEC filing.

 

	 
	
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16. Attorney Fees. In the event any attorney is employed by either party to this Note with regard to any legal or equitable action, arbitration or other proceeding brought by such party for the enforcement of this Note or because of an alleged dispute, breach, default or misrepresentation in connection with any of the provisions of this Note, the prevailing party in such proceeding shall be entitled to recover from the other party reasonable attorneys' fees and other costs and expenses incurred, including but not limited to post judgment costs, in addition to any other relief to which the prevailing party may be entitled.

 

17. Transfer Agent Instructions. In the event that an opinion of counsel, such as but not limited to a Rule 144 opinion, is needed for any matter related to this Note or the Common Stock the Lender has the right to have any such opinion provided by its counsel. If the Lender chooses to have its counsel provide such opinion, then the Lender shall provide the Borrower with written notice. Within three (3) business days of receiving written notice, the Borrower shall instruct its transfer agent to rely upon valid legal opinions from the Lender’s counsel. A penalty of $2,000 per day shall be assessed for each day after the third business day (inclusive of the day of request) until the reliance instruction is delivered to the transfer agent. If the Lender requests that the Borrower’s counsel issue an opinion, then the Borrower shall cause the issuance of the requested opinion within three (3) business days. A penalty of $1,500 per day shall be assessed for each day after the third business day (inclusive of the day of request) until the requested opinion is delivered. The Lender and the Borrower agree that all penalty amounts shall be added to the Principal Sum of this Note and shall tack back to the Effective Date of this Note, with respect to the holding period under Rule 144, so long as such treatment is not inconsistent with Rule 144’s applicable tacking provisions. The Borrower warrants that it will not direct its transfer agent not to transfer or delay, impair, and/or hinder its transfer agent in transferring (or issuing)(electronically or in certificated form) any certificate for the Securities to be issued to the Lender and it will not fail to remove (or direct its transfer agent not to remove or impair, delay, and/or hinder its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for the Securities when required by this Note. The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Lender by vitiating the intent and purpose of the transactions contemplated hereby. Accordingly, the Borrower acknowledges that the remedy at law for a breach of its obligations under this Note may be inadequate and agrees, in the event of a breach or threatened breach by the Borrower of these provisions, that the Lender shall be entitled, in addition to all other available remedies, to an injunction restraining any breach and requiring immediate transfer, without the necessity of showing economic loss and without any bond or other security being required.

 

18. Reservation of Shares. At all times during which this Note is convertible, the Borrower shall reserve from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance of Common Stock upon the full conversion of this Note.

 

19. Disclosure of Material Non-Public Information. The Borrower agrees not to disclose any material non-public information to the Lender after the Effective Date. If the Borrower inadvertently discloses any material non-public information to the Lender, then the Borrower shall promptly publicly disclose that information by filing a Form 8-K with the SEC and by any other means necessary to make that information known to the public.

 

20. Public Disclosure. The Lender and the Borrower agree not to issue any public statement with respect to the Lender’s investment or proposed investment in the Borrower or the terms of any agreement or covenant without the other party’s prior written consent, except such disclosures as may be required under applicable law or under any applicable order, rule or regulation. The Borrower agrees to reference Lender only as “an accredited investor” and attach only a form copy this Note in any of the Borrower’s filings with the Securities and Exchange Commission or any other public filings, except such full disclosures as may be required under applicable law or under any applicable order, rule or regulation.

 

21. Notices. Any notice required or permitted hereunder (including Conversion Notices) must be in writing and either personally served, sent by facsimile or email transmission, or sent by overnight courier. Notices shall be deemed effectively delivered at the time of transmission if by facsimile or email, and if by overnight courier the business day after such notice is deposited with the courier service for delivery.

 

	 
	
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IN WITNESS WHEREOF, the authorized agents of the Borrower and the Lender have caused this Note to be duly executed as of the Effective Date.

 

 

	Freeze Tag, Inc. (the “Borrower”)	 
	 	 	 
	By:		 
	 	Craig Holland 	 
	 	Chief Executive Officer	 
	 	 	 
	
Accredited Investor (the “Lender”)

	
	 	 	
	By:		
		
Accredited Investor Name

	
		
Accredited Investor Title

	

 

 

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