Document:

f10k2011ex10vi_masshysteria.htm

Exhibit 10.6

 

 

TECHNOLOGY LICENSE AGREEMENT

 

THIS TECHNOLOGY LICENSE AGREEMENT is made as of this February 6, 2012 ("Effective Date") by and between Three Point Capital, LLC. ("LICENSOR"), and Mass Hysteria Entertainment ("LICENSEE") (collectively, the "PARTIES").

 

RECITALS

 

A.   In exchange for $65,000 and the issuance of five (5) Class B Units of the LICENSOR's subsidiary, FanCloucl, LLC, LICENSEE has conveyed all right, title and interest in and to certain Technology (as defined below) to LICENSOR.

 

B.   As part of the conveyance described above, LICENSEE demanded, and LICENSOR agreed to provide, a "license-back" of rights (on an as-is basis) to ensure that LICENSEE can practice the Technology within the field of cinema (the "Field of Use) pursuant to the terms of this Agreement.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the promises and agreements set forth herein, the parties, each intending to be legally bound hereby, do promise and agree as follows.

 

I.              ADDITIONAL DEFINITIONS.

 

A.             "Intellectual Property" means (i) all inventions, works of authorship, technology, information, know-how, materials and tools arising out of or relating to the Technology currently in existence and (ii) all copyrights, patent rights, trade secret rights, trademark rights, mask works rights, database rights and other intellectual property rights and goodwill in, incorporated or embodied in, used to develop or produce or use, or related to the Technology in its current form.

 

B.             "Technology" shall mean the subject matter referred to in Schedule A in the form currently in existence.

 

2.             GRANT OF RIGHTS. LICENSOR hereby grants, and LICENSEE hereby accepts, subject to the terms and conditions of this Agreement (including the agreed upon restriction), solely within the Field of Use, an exclusive, perpetual, irrevocable, sub-licensable, worldwide license to use, copy and modify the Technology and Intellectual Property in any manner whatsoever; provided, however, any rights LICENSEE grants to any third party (e.g., sublicenses, transfer of rights, etc.) shall be restricted to being within the Field of Use only. The parties expressly intend for all rights granted hereunder to LICENSEE to survive any bankruptcy of LICENSOR under Section 365(n) of the United States Bankruptcy Code and in accordance with the express intent stated herein. LICENSEE has no obligation to update any of the Technology or Intellectual Property.

 

  

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3.              CONSIDERATION. LICENSOR hereby acknowledges receipt of sufficient consideration for the rights granted herein to LICENSEE.

 

4.              DISCLAIMERS; OWNERSHIP; RESTRICTIONS.

 

A.            LICENSOR EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES CONCERNING THE TECHNOLOGY AND INTELLECTUAL PROPERTY, INCLUDING ANY WARRANTIES OF MERCHANTABILITY AND/OR FITNESS FOR ANY PARTICULAR PURPOSE, AND WARRANTIES OF PERFORMANCE, AND ANY WARRANTY THAT MIGHT OTHERWISE ARISE FROM COURSE OF DEALING OR USAGE OF TRADE. NO WARRANTY IS EITHER EXPRESS OR IMPLIED WITH RESPECT TO THE USE OF THE SOFTWARE. UNDER NO CIRCUMSTANCES SHALL LICENSOR BE LIABLE FOR INCIDENTAL, SPECIAL, INDIRECT, DIRECT OR CONSEQUENTIAL DAMAGES OR LOSS OF PROFITS, INTERRUPTION OF BUSINESS, OR RELATED EXPENSES WHICH MAY ARISE FROM USE OF SOFTWARE, INCLUDING BUT NOT LIMITED TO THOSE RESULTING FROM DEFECTS IN SOFTWARE, OR LOSS OR INACCURACY OF DATA OF ANY KIND. TO THE FULLEST EXTENT PERMITTED BY LAW, THE TECHNOLOGY AND INTELLECTUAL PROPERTY IS BEING LICENSED HEREUNDER BY LICENSE TO LICENSEE ON AN "AS IS" AND "WITH ALL FAULTS" BASIS.

 

B.             Ownership. LICENSEE further acknowledges that the Technology and Intellectual Property are the sole property of LICENSOR and LICENSEE shall not have any right, title, or interest in or to any of the foregoing except as provided in this Agreement.

 

C. Sublicenses. LICENSEE agrees not to sublicense any of its rights granted hereunder in contravention of any of the terms and conditions contained herein.

 

5.              LIMITATION OF LIABILITY

 

LICENSEE ACKNOWLEDGES AND AGREES THAT THE CONSIDERATION WHICH LICENSOR IS CHARGING HEREUNDER DOES NOT INCLUDE ANY CONSIDERATION FOR ASSUMPTION BY LICENSOR OF THE RISK OF LICENSEE'S CONSEQUENTIAL OR INCIDENTAL DAMAGES WHICH MAY ARISE IN CONNECTION WITH LICENSEE'S USE OF THE SOFTWARE. ACCORDINGLY, LICENSEE AGREES THAT LICENSOR SHALL NOT BE RESPONSIBLE TO LICENSEE FOR ANY LOSS-OF-PROFIT, INDIRECT, INCIDENTAL, SPECIAL, OR CONSEQUENTIAL DAMAGES ARISING OUT OF THE LICENSING OR USE OF THE SOFTWARE. Any provision herein to the contrary notwithstanding, the maximum liability of LICENSOR to any person, firm or corporation whatsoever arising out of or in the connection with any license, use or other employment of any Software delivered to LICENSEE hereunder, whether such liability arises from any claim based on breach or repudiation of contract, warranty, tort or otherwise, shall in no case exceed $1,000.00. The parties acknowledge that the limitations set forth in this Section are integral to the amount of consideration levied in connection with the license of the Software and that, were LICENSOR to assume any further liability other than as set forth herein, such consideration would of necessity be set substantially higher.

  

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6.             TERM AND TERMINATION. This Agreement shall commence on the Effective Date and continue in perpetuity; provided, however, either party may terminate this Agreement on thirty (30) days written notice to the other party in the event of a material breach of any provision of this Agreement by the other party, provided that, during the thirty (30) days period, the breaching party fails to cure such breach.

 

7.             POST TERMINATION RIGHTS. Upon the expiration or termination of this Agreement, all rights granted to LICENSEE under this Agreement shall forthwith terminate and immediately revert to LICENSOR.

 

8.             JURISDICTION AND DISPUTES. This Agreement shall be governed by the laws of California. All disputes hereunder shall be resolved in the applicable state or federal courts of California. The parties consent to the jurisdiction of such courts, agree to accept service of process by mail, and waive any jurisdictional or venue defenses otherwise available.

 

9.         AGREEMENT BINDING ON SUCCESSORS. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto, their heirs, administrators, successors and assigns.

 

10.           WAIVER. No waiver by either party of any default shall be deemed as a waiver of any prior or subsequent default of the same or other provisions of this Agreement.

 

11.           SEVERABILITY. If any provision hereof is held invalid or unenforceable by a court of competent jurisdiction, such invalidity shall not affect the validity or operation of any other provision and such invalid provision shall be deemed to be severed from the Agreement.

 

12.           INTEGRATION. This Agreement constitutes the entire understanding of the parties, and revokes and supersedes all prior agreements between the parties and is intended as a final expression of their Agreement. It shall not be modified or amended except in writing signed by the parties hereto and specifically referring to this Agreement. This Agreement shall take precedence over any other documents that may be in conflict therewith.

 

13.           TERMINATION OF PRIOR AGREEMENTS. That certain letter agreement dated August 3, 2011 executed by the parties is hereby terminated in its entirety. That certain confidentiality agreement signed by Britt Fletcher (but never countersigned by LICENSEE) is hereby revoked and terminated in its entirety. All provisions of, rights granted and covenants made in the aforementioned agreements are hereby waived, released and superseded in their entirety and shall have no further force or effect.

 

14.           COOPERATION REGARDING REVOLVE. The parties agree to cooperate fully to ensure that Resolve Market Research ("Resolve") is willing, at a minimum, to serve as a reference related to the commercial viability of the Technology and the Intellectual Property. Specifically, LICENSEE will avoid taking any steps that has a reasonable chance of alienating Resolve in any manner.

 

  

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15.            COUNTERPART SIGNATURES. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument. This Agreement may be executed and delivered electronically or by facsimile without requirement that wet ink oriainal signatures be exchanged by the parties hereto.

 

                 IN WITNESS WHEREOF, the parties hereto have executed this Technology License Agreement as of the date first written above.

 

	LICENSOR	 	LICENSEE
	 	 	 	 	 
	THREE POINT CAPITAL, LLC	 	MASS HYSTERIA ENTERTAINMENT
	 	 	 	 	 
	By:	/s/ David Gendron	 	By:	/s/ Dan Grodnick
	Its: 	Managing Director	 	Its: 	CEO
	
Print Name:

	David Gendron	 	
Print Name:

	Dan Grodnick
	 	 	 	 	 
	By:	/s/  MIchael Hanson	 	 	 
	Its: 	Managing Director	 	 	 
	Print Name:	Michael Hanson	 	 	 

 

  

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SCHEDULE A

 

All rights, title and interests in and to all intellectual property arising out of or related to the mobile application(s) (inclusive, without limitation, of all software code related thereto) and the business plan related to a "stealth mobile application" arising out of or related to any or all of the following: (a) that certain PowerPoint presentation prepared on behalf of MHE by Resolve Market Research (having file name Mass_Hysteria_Resarch_Report_-__Stealth_App_v2.pptx), (b) that certain PowerPoint presentation having file name MHTechBudget2011.ppt, (c) that certain demonstration video available at _, and (d) that certain Microsoft Word file having the file name MHblueprintcreative2011rev5.doex, which, in all cases, includes, without limitation, all ideas, designs, techniques, processes, formulas, trade secrets, inventions, discoveries, improvements, research or development and test results, specifications, data, know-how, business methods, marketing plans, other business plans, strategies, forecasts, unpublished financial information, budgets, projections, business prospects, copyrights and trademarks (inclusive of all goodwill related thereto) related thereto.

 

 

 

 

SCHEDULE A to Technology License  Agreement

 

5f10k2011ex10vii_masshysteria.htm

Exhibit 10.7

 

 

TECHNOLOGY TRANSFER AND STOCK ISSUANCE AGREEMENT

 

This Technology Transfer and Stock Subscription Agreement is effective as of February 6, 2012 between Mass Hysteria Entertainment (the "MHE"), Three Point Capital, LLC, a Delaware limited liability company (the "Company") and David Gendron, Britt Fletcher, and Mike Hansen with respect to Articles II and III only (each a "Share Recipient" and, collectively, the "Share Recipients).

 

Technology Transfer

 

1.            Assignment

 

MHE hereby assigns to the Company exclusively throughout the world all rights, title and interest (whether or not now existing) MHE has in the (i) subject matter referred to in Schedule A (the "Technology"), (ii) all precursors, portions and work in progress with respect thereto and all inventions, works of authorship, mask works, technology, information, know-how, materials and tools arising out of or relating to the Technology or to the development, production, use, support or maintenance thereof and (iii) all copyrights, patent rights, trade secret rights, trademark rights, mask works rights, sui generis database rights and other intellectual property rights and all business, contract rights and goodwill in, incorporated or embodied in, used to develop or produce or use, or related to the Technology in any manner (collectively "Intellectual Property").

 

2.            Consideration

 

This Agreement is made in exchange for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, including a Class B membership interest in the Company's subsidiary, FanCloud, LLC (the "Sub") pursuant to the Sub's Operating Agreement dated February 6, 2012 and a cash payment in the amount of $65,000 delivered by the Company to MHE as of the effective date of this Agreement.

 

3.            Further Assurances

 

MHE agrees to provide commercially reasonable assistance to the Company in every proper way to evidence, record and perfect the assignment described in Section I of this Agreement and to apply for and obtain recordation of and from time to time secure, enforce, maintain and defend the assigned rights. If the Company is unable for any reason whatsoever to secure MHE's signature to any document requested by the Company under this Section 3, MHE hereby irrevocably designates and appoints the Company and its duly authorized officers and agents as MHE's agents and attorneys-in-fact, coupled with an interest and with full power of substitution, to act for and on MHE's behalf and instead of MHE, to execute and file any such document or documents and to do all other lawfully permitted acts to further the purposes of the foregoing with the same legal force and effect as if executed by MHE.

 

  

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4.            MHE Warranty: Acknowledgement

 

MHE represents and warrants to the Company that MHE (i) has not assigned, transferred, licensed, pledged or otherwise encumbered any Intellectual Property or the Technology or agreed to do so to any other party, (ii) has no knowledge of any infringement (or any claims thereof) of any third party's intellectual property rights by the Intellectual Property or the Technology, (iii) has no knowledge that any of MHE's other intellectual property rights infringe the Intellectual Property or the Technology, and (iv) has full power and authority to enter into this Agreement.

 

Stock Issuance.

 

1.            Issuance; Delivery of Certiifcates. As partial consideration services rendered by each of the Share Recipients, MHE hereby issues to each of the Share Recipients and TPC an aggregate of 3,983,115 shares of MHE's common stock (the "Shares") as follows:

 

	
Name of Shareholder

	  	
Number of Shares

	  	  
	
Three Point Capital, LLC

	  	
1,991,556

	
Brett Fletcher

	  	
663,853

	
Mike Hansen

	  	
663,853

	
David Gendron

	  	
663,853

	  	
Total:

	
3,983,115

 

All Shares issued to the Share Recipients shall be Form 5-8 Shares as such term is defined in Section 2(b) of this Article II. The Shares issued to TPC shall be Rule 144 restricted securities under the Securities Act of 1933, as amended. MHE immediately shall deliver, or cause its transfer agent to deliver, to each Share Recipient and to TPC a certificate representing the Shares issued hereunder to each of them.

 

2.            Capitalization and Registration Reps. MHE hereby represents and warrants to the

 

Company that, as of the Effective Date:

 

(a)          (i)the authorized capital of the Company consists of (1) 900,000,000 shares of the common stock of the Company, 145,331,472 shares of which are issued and currently outstanding and (2) 10,000 shares of the preferred stock of the Company, all of which are issued and currently outstanding. All of the outstanding shares of Common Stock are duly authorized, validly issued, fully paid and nonassessable and were issued in material compliance with all applicable federal and state securities laws.

 

                              (ii) 20,000,000 shares of Common Stock are subject to issuance to officers, directors, employees and consultants of the Company pursuant to the Company's equity incentive plan(s) duly adopted by the Board of Directors of the Company and approved by the Company stockholders. Of such shares of Common Stock reserved under the aforementioned equity incentive plans(s), options to purchase up to 8,000,000 shares have been granted and are currently outstanding, and 12,000,000 shares of Common Stock remain available for issuance to officers, directors, employees and consultants pursuant to the equity incentive plans.

 

  

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(b) The Shares, when issued, sold and delivered in accordance with the terms set forth in this Agreement, will be duly authorized, validly issued, fully paid and nonassessable and free of restrictions on transfer other than restrictions on transfer expressly stated in this Agreement, applicable state and federal securities laws and liens or encumbrances created by or imposed by the recipients of the Shares. The offer, sale and issuance of the Shares to be issued pursuant to and in conformity with the terms of this Agreement will be issued in compliance with all applicable federal and state securities laws and 2,119,762 of the Shares have been registered under the Securities Act of 1933 pursuant to a properly filed Form 5-8 registration statement which has been accepted and approved by the United States Securities & Exchange Commission (the "Form S-8 Shares").

 

(c) All corporate action has been taken, or will be taken prior to the Effective Date of this Agreement, on the part of the Board (and stockholders, as applicable) that is necessary for the authorization, execution and delivery of the this Agreement by MHE and the performance by MHE of the obligations to be performed by MI-IE as of the Effective Date. This Agreement, when executed and delivered by MHE, shall constitute valid and legally binding obligations of MHE, enforceable against MHE in accordance with their respective terms except (a) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, or other laws of general application relating to or affecting the enforcement of creditors' rights generally, or (b) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

 

Article HI Miscellaneous.

 

1.            Assignments. This Agreement is not assignable or transferable by either party without the prior written consent of the other party and any attempt to do so shall be void; provided  however that this Agreement may be assigned or transferred without the prior written consent of MHE by Company to any successor to all or substantially all of the Company's business or assets.

 

2.            Notices. Any notice, report, approval or consent required or permitted hereunder shall be in writing and will be deemed to have been duly given if delivered personally or mailed by first-class, registered or certified U.S. mail, postage prepaid to the respective addresses of the parties as set forth below (or such other address as a party may designate by ten (10) days notice).

 

3.            No Waivers. No failure to exercise, and no delay in exercising, on the part of either party, any privilege, any power or any rights hereunder will operate as a waiver thereof, nor will any single or partial exercise of any right or power hereunder preclude further exercise of any other right hereunder.

 

4.            Separability. If any provision of this Agreement shall be adjudged by any court of  competent jurisdiction to be unenforceable or invalid, that provision shall be limited or eliminated to the minimum extent necessary so that this Agreement shall otherwise remain in full force and effect and enforceable.

 

  

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5.            Choice of Law: Attorneys Fees. This Agreement shall be deemed to have been made in, and shall be construed pursuant to the laws of the State of California and the United States without regard to conflicts of laws provisions thereof. The prevailing party in any action to enforce this Agreement, or seek an interpretation thereof, shall be entitled to recover costs and expenses including, without limitation, reasonable attorneys' fees.

 

6.            Amendments: Entire Agreement Any waivers or amendments shall be effective only if made in writing and signed by a representative of the respective parties authorized to bind the parties. Both parties agree that this Agreement is the complete and exclusive statement of the mutual understanding of the parties and supersedes and cancels all previous written and oral agreements and communications relating to the subject matter of this Agreement.

 

7.            Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one and the same instrument. This Agreement may be executed and delivered electronically or by facsimile without requirement that wet ink original signatures be exchanged by the parties hereto.

 

Remainder of Page Intentionally Left Blank.

 

  

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IN WITNESS WHEREOF. the parties have executed this Agreement on the day and year first indicated above.

 

	THREE POINT CAPITAL, LLC	 	MASS HYSTERIA, ENTERTAINMENT	 
	 	 	 	 	 	 
	By:	/s/ David Gendron	 	By:	/s/ Dan Grodnick	 
	Its: 	Managing Director	 	 	Dan Grodnick, CEO	 
	

Print Name:

	David Gendron	 	 	 	 
	 	 	 	 	 	 
	 	 	 	
Address :

	8899 Beverly Blvd	 
	 	 	 	 	Suite 710 	 
	By:	/s/ Michael  Hanson	 	 	Los Angelos, CA  90048 	 
	Its: 	Managing Director	 	 	 	 
	Print Name:	Michael Hanson	 	 	 	 
	 	 	 	 	 	 
	Address :	80 Broad St., 5th Floor	 	 	 	 
	 	NY, NY  10004	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 

 

	SHARE RECIPIENTS:	 	 	 
	 	 	 	 	 	 
	 	/s/ David Gendron	 	 	/s/ Britt Fletcher 	 
	 	David Gendron	 	 	Britt Fletcher 	 
	 	 	 	 	 	 
	 	/s/ Michael  Hanson	 	 	 	 
	 	Michael  Hanson	 	 	 	 

 

  

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SCHEDULE A

 

All rights, title and interests in and to all intellectual property arising out of or related to the mobile application(s) (inclusive, without limitation, of all software code related thereto) and the business plan related to a "stealth mobile application" arising out of or related to any or all of the following: (a) that certain PowerPoint presentation prepared on behalf of MHE by Resolve Market Research (having file name Mass_HysteriaResarch_Report_-_Stealth_App_v2.pptx), (b) that certain PowerPoint presentation having file name MHTechBudget2011.ppt, (c) that certain demonstration video available at , and (d) that certain Microsoft Word file having the file name MI-Iblueprintcreative2011rev5.docx, which, in all cases, includes, without limitation, all ideas, designs, techniques, processes, formulas, trade secrets, inventions, discoveries, improvements, research or development and test results, specifications, data, know-how, business methods, marketing plans, other business plans, strategies, forecasts, unpublished financial information, budgets, projections, business prospects, copyrights and trademarks (inclusive of all goodwill related thereto) related thereto.

 

 

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