Document:

ex10-3

Exhibit 10.3

	 	 	 
	NORTH CAROLINA	 	
SETTLEMENT AGREEMENT
	
	
	
	

	 	 	
AND RELEASE
	
	
	
	

	WAKE COUNTY	 	 

     This Settlement
Agreement and Release (the "Agreement") is made and entered into this
the 7th day of August 2001 by and between Analysts International Corporation
(“Analysts”), a corporation organized under the laws of the State of Minnesota,
and High Speed Net Solutions, Inc. (“HSNS”), a corporation organized and existing under
the laws of the State of Florida.

     WHEREAS, on March 29, 2001 Analysts commenced a civil action in the
General Court of Justice, District Court Division, Wake County North Carolina
bearing docket number 01 CVD 003792 and styled Analysts International
Corporation v. High Speed Net Solutions, Inc. (the “Civil Action”); and

     WHEREAS, Analysts and HSNS desire to compromise and settle any and all
disputes arising out of or in any way connected with the Civil Action and the
underlying dispute;

     NOW, THEREFORE, IT IS RESOLVED that, in consideration of the payment to
Analysts by HSNS of the sum of $358,426.00 plus interest accruing at a rate of
8% per annum (the “Indebtedness”) from March 31, 2000, in payments as
described herein, and Analysts’ agreement to release HSNS from any and all
liability arising out of the dispute leading to the Civil Action and for other
good and sufficient consideration, the receipt and sufficiency of which is
acknowledged, the parties covenant and agree as follows:

     1.     HSNS will pay the Indebtedness to Analysts on the following schedule:

		
	 	     a) $20,000.00 upon execution of this Agreement;
	 
	 	     b) $5,000.00 per month for a period of six months,
commencing one month after the execution of this Agreement;

 

		
	 	c) $10,000 per month until the balance of the
Indebtedness has been satisfied.

     2.     Analysts will obtain an Order placing the Civil Action on inactive
status for a period of time sufficient for HSNS to satisfy the Indebtedness
pursuant to the terms of this Agreement. HSNS will execute a Consent Judgment
in favor of Analysts in the amount of the Indebtedness, minus any payments made
pursuant to this Agreement, in the form indicated on Exhibit A, which will be
held by Analysts and not filed, unless HSNS has defaulted on its obligations
pursuant to this Agreement and any applicable cure period has elapsed.

     3.     In the event of a default in payment of any installment due pursuant to
this Agreement, Analysts will give written notice to HSNS of the default and
HSNS will have three business days from the receipt of notice to cure the
default.

     4.     This Agreement does not limit Analysts’ ability to take appropriate
action to enforce this Agreement or HSNS’ obligations and/or to take
appropriate action to satisfy or collect hereunder upon any judgment filed in
Analysts’ favor.

     5.     Analysts, for itself, its successors, assigns, affiliates, agents,
employees and legal representatives, hereby releases HSNS, its predecessors
(including but not limited to Summus, Ltd.), successors, assigns, affiliates,
agents, employees and legal representatives, from any and all claims and
demands other than those arising from this Agreement, whether known or unknown,
which Analysts has or may have, arising out of or in any way related to the
Civil Action. Analysts covenants and agrees that it has not assigned,
transferred or conveyed in any manner all or any part of its legal claims or
legal rights against HSNS in connection with the Civil Action or the dispute
underlying the Civil Action.

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     6.     HSNS, for itself, its successors, assigns, affiliates, agents,
employees and legal representatives, hereby releases Analysts, its
predecessors, successors, assigns, affiliates, agents, employees and legal
representatives, from any and all claims and demands other than those arising
from this Agreement, whether known or unknown, which HSNS has or may have,
arising out of or in any way related to the Civil Action or to the provision of
services by Analysts to HSNS or its predecessors from which the
Indebtedness arose. HSNS covenants and agrees that it has not assigned,
transferred or conveyed in any manner all or any part of its legal claims or
legal rights against Analysts in connection with the Civil Action or the
dispute underlying the Civil Action.

     7.     No party admits or acknowledges any liability to any other party and
specifically denies the existence of such liability.

     8.     HSNS may pre-pay all or any part of the Indebtedness at any time
without penalty.

     9.     No promise or agreement other than those recited above has been made as
consideration for the releases and discharges effected by this Agreement and
Analysts has given this release for the sole consideration recited above.

     10.   This Agreement constitutes the entire agreement
of the parties. All prior understandings, representations and agreements are
merged in this Agreement and this Agreement shall not be
modified in any manner, except by written instrument signed by both parties.

     11.   The parties attest that this Agreement is voluntarily made after ample
opportunity to review the document with any individuals, advisors and counsel
so desired.

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     12.     This Agreement shall be governed and interpreted in accordance with
the laws of the State of North Carolina and any disputes arising from this
Agreement will be resolved in the General Courts of Justice, Wake County, North
Carolina.

     13.     Each party represents and covenants that the party executing the
document on its behalf below is duly authorized to bind the entity to this
Agreement.

     14.     Any notices relating to this Agreement shall be sent via Federal
Express
overnight mail to the parties and the following addresses:

     Analysts International Corporation

     c/o Colleen M. Davenport

     General Counsel

     Analysts International Corporation

     3601 West 76th Street

     Minneapolis, MN 55435

     High Speed Net Solutions, Inc.

     c/o Gary Ban

     Chief Operating Officer

     434 Fayetteville Street, Suite 600

     Raleigh, North Carolina 27601

     IN WITNESS WHEREOF, the parties have executed this Settlement Agreement
and Release as of the day and year written above, in duplicate.

	 
	ANALYSTS INTERNATIONAL

CORPORATION
	 
	By: /s/ Charles E. Jones

Charles E. Jones

Assistant Secretary and

Associate General Counsel
	 
	HIGH SPEED NET SOLUTIONS, INC
	 
	By: /s/ Gary Ban

Gary Ban

Chief Operating Officer

4ex10-4

Exhibit 10.4

MASTER PORTING AGREEMENT

     This Master Porting Agreement (this “Agreement”) is made effective as of July 27, 2001 (the “Effective Date”) by and between HIGH SPEED NET SOLUTIONS,
INC., d/b/a Summus, a Florida corporation located at 434 Fayetteville Street
Mall, Suite 600, Raleigh, NC 27601, U.S.A. (“HSNS”) and SAMSUNG ELECTRONICS
AMERICA, a corporation located at 105 Challenger Road, Ridgefield Park, NJ
07660, U.S.A. (“Samsung”).

     WHEREAS, HSNS has developed certain proprietary data compression
technology and solutions;

     WHEREAS, Samsung has developed and/or markets and sells certain products
that could utilize such data compression technology and solutions; and

     WHEREAS, Samsung desires to have, and HSNS agrees to make, certain of
HSNS’s technology available for certain of Samsung’s products.

NOW THEREFORE, in consideration of the foregoing, and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
HSNS and Samsung agree as follows:

	1.	 	DEFINITIONS
	 
	1.1	 	 “Confidential Information” means information that the disclosing party
designates as confidential or which, under the circumstances surrounding
disclosure, ought to be treated as confidential. Confidential Information
includes, without limitation: (i) trade secrets relating to the
disclosing party’s product plans, designs, costs, prices and names,
finances, marketing plans, business opportunities, personnel, research and
development, and know-how; (ii) the HSNS Technology; (iii) the Samsung
Technology; and (iv) the terms, conditions and existence of this
Agreement. “Confidential Information” shall not include information that
the receiving party can demonstrate through competent evidence: (a) is
or becomes generally available to the public other than as a result of
unauthorized disclosure by the receiving party; (b) is known and has
been reduced to tangible form by the receiving party at the time of
disclosure and is not subject to restriction; (c) that is independently
developed by the receiving party without the use of or reference to any
Confidential Information from the disclosing party; (d) is lawfully
obtained from a third party that has the right to make such disclosure; or
(e) is made generally available by the disclosing party without
restriction on disclosure. For the purpose of the foregoing exceptions,
disclosures which are specific as to engineering and design practices and
techniques, products, software, operating parameters and know-how shall
not be deemed to be within the foregoing exceptions merely because they
are embraced by general disclosures which are in the public domain or in
the possession of the receiving party.

 

	 		Page 1 of 16
 

	 	 	In addition, any combination of features shall not be deemed to be within
the foregoing exceptions merely because individual features thereof are in
the public domain or in the possession of the receiving party, but only if
the combination itself and its principle of operation are in the public
domain or in the possession of the receiving party. When Confidential
Information is disclosed in written or other tangible form, it shall be
clearly marked with a legend identifying it as confidential. Also, if
disclosed in oral or intangible form, Confidential Information shall be
identified as confidential in accordance with the terms of the applicable
Services Schedule.
	 
	1.2	 	 “Deliverables” means all various beta and final versions of a Ported
Object, supporting documentation, and work product resulting from the
Services, set forth in the applicable Services Schedule.
	 
	1.3	 	 “Derivative Technology” means: (i) for copyrightable or copyrighted
material, any translation (including translation into other computer
languages), portation, modification, correction, addition, extension,
upgrade, improvement, compilation, abridgment or other form in which an
existing work may be recast, transformed or adapted; (ii) for
patentable or patented material, any improvement thereon; and
(iii) for material which is protected by trade secret, any new
material derived from such existing trade secret material, including new
material which may be protected by copyright, patent and/or trade secret.
	 
	1.4	 	 “Error(s)” means defect(s) in a Deliverable which prevent it from
performing in accordance with the Specifications and/or a Severity Level
1, 2 or 3 error, as such errors are defined in Exhibit A.
	 
	1.5	 	 “HSNS Technology” means HSNS’s proprietary technology, which is to be
applied to a Port, the Specifications, and the Deliverables, and
associated development and testing tools, testing strategy, and
documentation and user guides as set forth on any Services Schedule.
	 
	1.6	 	 “Independent Contractor” means any third party consultant, independent
contractor, or temporary employee, of a party hereto, under written
agreement with a party hereto to develop, complete, or assist with a Port
under this Agreement or any Services Schedule, where such written
agreement is consistent with the terms and conditions of this Agreement
including, but not limited to, Sections 4 and 6.
	 
	1.7	 	 “Port” means the modification and/or optimization of existing software to
run on a specific processor in a specific operating environment and meet
specific requirements.
	 
	1.8	 	 “Ported Object” means the object code or library resulting from a Port.
	 
	1.9	 	 “Porting Team” means the specific facility, development tools, and
personnel required to complete a Port. Personnel assigned to a Porting
Team may include solely HSNS personnel or both HSNS and Samsung personnel
as determined by the parties and set forth in the applicable Services
Schedule.

 
	 		Page 2 of 16
 

	1.10	 	 “Product” means a specific Samsung consumer product, family of products,
or a specific Samsung processor.
	 
	1.11	 	 “Requirements” means the requirements for the Services, as set forth in
any Services Schedule attached hereto.
	 
	1.12	 	 “Samsung Technology” means Samsung’s proprietary technology, including,
without limitation, any Product, which is the specific target of a Port as
set forth on any Services Schedule.
	 
	1.13	 	 “Services” means (i) the design, development and testing services
applicable to the Ported Object(s) and relevant documentation in
accordance with the Specifications and (ii) the delivery of the
Deliverables, as set forth in any Services Schedule.
	 
	1.14	 	 “Services Schedule” means each schedule that may be attached hereto from
time to time pursuant to Section 2.1, which sets forth the Services,
Requirements, and Specifications for a specific Port.
	 
	1.15	 	 “Specifications” means the flow down specification interpretations of the
Requirements as they apply to the specific modifications, optimizations,
parameterizations, and interfaces required in the Ported Object(s) to meet
the Requirements, as set forth in any Services Schedule. Specifications
are also the baselines against which testing will be performed.
	 
	2.	 	DEVELOPMENT
	 
	2.1.	 	 Services Schedule.  In the event that the parties hereto shall
reach agreement with respect to a particular Port, a Services Schedule for
said Port shall be attached to this Agreement and the two shall
collectively, independent from other Services Schedules, constitute the
entire agreement for the specific Port. No Services Schedule shall be
attached to this Agreement without first being executed by the parties
hereto. To the extent that any terms set forth in a Services Schedule
shall conflict with the terms set forth in this Agreement, the terms of
this Agreement shall control unless otherwise specifically set forth in
the Services Schedule.
	 
	2.2	 	 Services. HSNS hereby agrees to provide the Services for Samsung, as set
forth in each Services Schedule attached hereto.
	 
	2.3	 	 Porting Team. HSNS shall provide the facilities and assign personnel to
each Porting Team under a Services Schedule. Samsung shall provide the
development tools and, to the extent requested or required by HSNS,
personnel to the Porting Team under a Services Schedule.
	 
	2.4	 	 Acceptance.

		
	 	2.4.1 For software code Deliverables under any Services Schedule,
Samsung shall evaluate the beta and final version of each Deliverable
and shall submit a written acceptance or rejection to HSNS within
twenty (20) business days after Samsung’s receipt of the beta version
of the Deliverables and thirty (30) days after receipt of the final
version of the Deliverables. Acceptance shall 

 
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	 	be in writing, and Samsung shall not unreasonably withhold its acceptance.
If Samsung identifies Errors in any Deliverable prior to acceptance,
then the applicable Porting Team shall correct such Errors within
fourteen (14) days following receipt of notice thereof during
acceptance testing for the particular Deliverable and within the time
specified in Exhibit A with respect to Errors discovered after
acceptance testing for the Deliverables.
	 
	 	2.4.2 For documentation or report Deliverables under any Services
Schedule, Samsung shall evaluate each version of such Deliverable. In
the event that it requires corrections, Samsung shall specify the
corrections needed and the applicable Porting Team shall deliver an
amended version of such documentation within five (5) business days.
	 
	 	2.4.3 If the applicable Porting Team fails to deliver any Deliverable
within the dates specified in the applicable Services Schedule and if
any Errors discovered before acceptance cannot be eliminated in the
correction period specified in Sections 2.4.1 and 2.4.2 above, then
Samsung may, at its option: (i) extend the correction period or
(ii) suspend its performance and/or terminate such Services
Schedule for cause pursuant to Section 8.3, provided, however,
that Samsung need not provide HSNS the cure period specified in
Section 8.3.

	2.5	 	 Design Review and Specifications Changes.  HSNS understands that
there may be additions, deletions or other changes that may affect the
Requirements at any time during the term of this Agreement. In the event
that HSNS is requested by Samsung or required to perform services beyond
those, which are specifically set forth in a Services Schedule, any such
additional services and a compensation schedule therefor shall be mutually
agreed upon by the parties in writing prior to the provision of said
services. Said mutually agreed upon writing shall be an amendment to the
pertinent Services Schedule and appended thereto, and the services set
forth therein shall be deemed to be Services as the term is used in this
Agreement.
	 
	3.	 	PAYMENT FOR SERVICES
	 
	3.1	 	 Payments. Except as otherwise expressly provided in a payment schedule
attached to an applicable Services Schedule, HSNS shall submit to Samsung
an invoice, on a monthly basis, describing the Services performed in
connection with each Port, individually, and, where applicable, costs
incurred, for each preceding month, and Samsung shall pay each such
invoice within thirty (30) days of receipt.
	 
	3.2	 	 Payment upon Termination. In the event any Services Schedule, or this
Agreement, is terminated by Samsung pursuant to Section 8 of this
Agreement, including a termination under Section 2.4.3 above, HSNS shall
be compensated for all fees and costs incurred for actual work performed
under each terminated Services Schedule(s) prior to the date HSNS receives
notice of such termination. Additionally, HSNS shall be reimbursed for
any and all non-cancelable third party obligations related to such
terminated Services Schedule(s) that are incurred prior to HSNS’s receipt
of notice of such termination, provided that HSNS shall

 
	 		Page 4 of 16
 

	 	 	use its best
efforts to mitigate same. Any funds paid by Samsung to HSNS, which shall be shown by Samsung to be
unearned at the date of termination, shall be returned to Samsung within
thirty (30) days of any Services Schedule termination. Certain Services of
HSNS may require greater utilization of resources at the outset such that
compensation based on a percentage of the Services completed prior to HSNS
completing the full Services set forth in a Services Schedule would work to
the detriment of HSNS. Accordingly, the parties agree that in the event of
early termination by Samsung, compensation for partially completed Services
shall be made on a time and materials basis.
	 
	4.	 	OWNERSHIP RIGHTS
	 
	4.1	 	 HSNS.

		
	 	4.1.1 HSNS shall own all right, title, and interest in and to all HSNS
Technology, HSNS Confidential Information, all Derivative Technology
created from, based on, or related to any of the foregoing, by whomever
made, and all intellectual property rights thereto. In the event that any
Samsung personnel make a contribution to the HSNS Technology, HSNS
Confidential Information, or any Derivative Technology created from, based
on, or related to any of the foregoing, including, without limitation, all
rights in and to any inventions and designs embodied in any of the
foregoing (collectively, a “Samsung Contribution”), Samsung shall assign,
and hereby does assign, its entire right, title, and interest in and to
each Samsung Contribution to HSNS.
	 
	 	4.1.2 Samsung agrees to assist HSNS, or HSNS’s designee, at HSNS’s
expense, to obtain and from time to time enforce and defend HSNS’s rights
in and to each Samsung Contribution, and any copyrights, patents or other
intellectual property rights relating thereto, in any and all countries,
and to execute all documents reasonably necessary for HSNS to do so.
	 
	 	4.1.3 Samsung agrees that if HSNS is
unable, because of Samsung’s
unavailability, dissolution, or for any other reason, to secure any
Samsung signature to apply for or to pursue any application for any
United States or foreign patents or copyright registrations covering any
Samsung Contribution, then Samsung hereby irrevocably designates and
appoints HSNS and HSNS’s duly authorized officers and agents as Samsung’s
agent and attorney-in-fact, to act for and in Samsung’s behalf and stead to
execute and file any such applications and to do all other lawfully
permitted acts to further the prosecution and issuance of patents and
copyright registrations thereon with the same legal force and effect as if
executed by Samsung.

	4.2	 	Samsung.

		
	 	4.2.1 Samsung shall own all right, title, and interest in and to all
Samsung Technology, Samsung Confidential Information, the Products, all
Derivative Technology created from, based on, or related to any of the
foregoing, by whomever made, and all intellectual property rights related
thereto. In the event that any HSNS personnel make a contribution to the
Samsung

 
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	 	Technology, Samsung Confidential Information, the Products, or any Derivative Technology created from, based
on, or related to any of the foregoing, including, without limitation, all
rights in and to any inventions and designs embodied in any of the
foregoing (collectively, an “HSNS Contribution”), HSNS shall assign, and
hereby does assign, its entire right, title, and interest in and to each
HSNS Contribution to Samsung.
	 
	 	4.2.2 HSNS agrees to assist Samsung, or Samsung’s designee, at Samsung’s
expense, to obtain and from time to time enforce and defend Samsung’s
rights in and to each HSNS Contribution, and any copyrights, patents or
other intellectual property rights relating thereto, in any and all
countries, and to execute all documents reasonably necessary for Samsung to
do so.
	 
	 	4.2.3 HSNS agrees that if Samsung is unable, because of HSNS’s
unavailability, dissolution, or for any other reason, to secure any HSNS
signature to apply for or to pursue any application for any United States
or foreign patents or copyright registrations covering any HSNS
Contribution, then HSNS hereby irrevocably designates and appoints Samsung
and Samsung’s duly authorized officers and agents as HSNS’s agent and
attorney-in-fact, to act for and in HSNS’s behalf and stead to execute and
file any such applications and to do all other lawfully permitted acts to
further the prosecution and issuance of patents and copyright registrations
thereon with the same legal force and effect as if executed by HSNS.

	4.3	 	 Limited License.

		
	 	4.3.1 HSNS hereby grants Samsung a non-exclusive, non-transferable,
non-sublicensable, fully paid, royalty free license to use the Deliverables
solely for evaluation and acceptance testing purposes pursuant to the terms
of, and for the time periods specified in, Sections 2.4.1 and 2.4.2 herein
or at such time periods as set forth in an appropriate Services Schedule.
	 
	 	4.3.2 HSNS shall retain all right, title, and interest in and to any
Deliverable, in whatever form, and all intellectual property rights
thereto, all copies thereof by whomever made, and all related documentation
and materials.
	 
	 	4.3.3 Samsung agrees that it and its employees, consultants, agents and
representatives will not directly or indirectly (i) disassemble,
decompile or otherwise reverse engineer any Deliverable or otherwise
attempt to learn the source code, structure, algorithms, or ideas
underlying any Deliverable, (ii) rent, lease or otherwise provide
temporary access to any Deliverable, (iii) alter or modify any
Deliverable, or (iv) allow others to do any of the foregoing.
	 
	 	4.3.4 Samsung acknowledges and agrees that except as specifically provided
in this Agreement, Samsung shall have no other right, title, or interest in
any Deliverable, including the right to copy, distribute, sublicense, or
create derivative works, and shall use the Deliverables solely as permitted
under this Agreement. Any further grant of rights in any Deliverable shall
be the subject

 
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	 	of a separate license agreement(s) to be negotiated in good faith by the parties; provided, that, nothing herein
shall obligate either party to negotiate or enter into any such agreement.

	5.	 	NO OBLIGATION/INDEPENDENT DEVELOPMENT

Notwithstanding any other provision of this Agreement or any Services Schedule,
Samsung shall have no obligation to market, sell, sublicense, or otherwise
distribute the Deliverables, either alone or in any Product. Nothing in this
Agreement or any Services Schedule will be construed as restricting HSNS’s
ability to acquire, develop, import, manufacture, market, sell, license,
sublicense, or distribute for itself, or have others acquire, develop, import,
manufacture, market, sell, license, sublicense, or distribute for HSNS, the
Ported Object(s) and/or ported objects performing the same or similar functions
as the Ported Object(s) developed under this Agreement or any Services
Schedule.

	6.	 	CONFIDENTIALITY

		
	 	6.1 HSNS’s Confidential Information. Samsung shall protect HSNS’s
Confidential Information from unauthorized dissemination and use with the
same degree of care that Samsung uses to protect its own most confidential
information, but no less than commercially reasonable care. Samsung will
not use HSNS’s Confidential Information for purposes other than those
necessary to directly further the purposes of this Agreement. For a period
of five (5) years, Samsung will not disclose to third parties HSNS’s
Confidential Information without the prior express written consent of HSNS.
Except as expressly provided in this Agreement, no ownership or license
right is granted in any HSNS Confidential Information.

		
	 	6.2 Samsung’s Confidential Information. HSNS shall protect Samsung’s
Confidential Information from unauthorized dissemination and use with the
same degree of care that HSNS uses to protect its own most confidential
information, but no less than commercially reasonable care. HSNS will not
use Samsung’s Confidential Information for purposes other than those
necessary to directly further the purposes of this Agreement. For a period
of five (5) years, HSNS will not disclose to third parties Samsung’s
Confidential Information without the prior express written consent of
Samsung. Except as expressly provided in this Agreement, no ownership or
license right is granted in any Samsung Confidential Information.

		
	 	6.3 Additional Terms.

		
	 	     6.3.1 The obligations of confidentiality set forth in Sections 6.1
and 6.2 above may be amended or supplemented with respect to any Services
Schedule with additional confidentiality obligations and restrictions as
expressly set forth therein.

 
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	 	     6.3.2 In the event that it is or becomes necessary for any employee,
consultant, contractor, or agent of either party to perform Services under
any Services Schedule at the other party’s facilities, each such employee,
consultant, contractor, and agent shall sign a separate non-disclosure
agreement with such other party relating to disclosures of confidential
information resulting from the performance of such Services at such
location.

	7.	 	WARRANTIES; LIMITATION
	 
	7.1	 	 HSNS. HSNS represents and warrants that: (i) it has the full power
to enter into this Agreement and grant the license rights set forth herein;
(ii) the Services shall be original to HSNS; and (iii) the
Deliverables will be created by employees or Independent Contractors of
HSNS within the scope of their employment or their agreements,
respectively, and under an obligation to assign any inventions made
hereunder or under any Services Schedule to HSNS.
	 
	7.2	 	Samsung. Samsung represents and warrants that: (i) it has the full power
to enter into this Agreement and make the assignments set forth herein;
(ii) to the best of Samsung’s knowledge, the Products do not infringe any
patent, copyright, trade secret, or other proprietary right held by any
third party; and (iii) any Samsung personnel assigned to a Porting Team
shall be employees or Independent Contractors of Samsung within the scope
of their employment or agreements, respectively, and under an obligation
to assign any inventions made hereunder or under any Services Schedule to
Samsung.
	 
	7.3	 	 EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT OR ANY SERVICES SCHEDULE,
ALL WARRANTIES OR CONDITIONS, EITHER EXPRESS OR IMPLIED, INCLUDING WITHOUT
LIMITATION ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE, ANY WARRANTY OF NON-INFRINGEMENT OF THIRD PARTY
RIGHTS, OR THOSE ARISING FROM A COURSE OF DEALING OR USAGE OF TRADE, ARE
DISCLAIMED, EXCEPT TO THE EXTENT SUCH DISCLAIMERS ARE HELD TO BE LEGALLY
INVALID.
	 
	8.	 	TERMINATION
	 
	8.1	 	 Term.  The term of this Agreement shall commence as of the date
hereof and end on the day three (3) years from such date unless extended
by mutual written agreement of the parties or earlier terminated as
provided herein. Services Schedules shall commence upon the date of
complete execution by the parties and shall terminate upon the completion
of Services described therein, unless earlier terminated as provided
herein or therein.
	 
	8.2	 	 Termination by Samsung.  Samsung may terminate this Agreement or
any Services Schedule for any reason upon thirty (30) days prior written
notice. Upon receipt of such notice, HSNS will discontinue all Services
set forth in the applicable Service 

 
	 		Page 8 of 16
 

	 	 	terminated Services Schedule(s) up until the date of receipt of the
termination notice pursuant to the terms of Section 3.2 herein.
	 
	8.3	 	 Termination By Either Party For Cause.  Either party may suspend
performance and/or terminate this Agreement or any Services Schedule
immediately upon written notice at any time if the other party is in
material breach of any material warranty, term, condition or covenant of
this Agreement, in the case of termination of this Agreement, or any
Services Schedule, in the case of termination of any Services Schedule,
and fails to cure such breach within thirty (30) days after receipt of
written notice thereof.
	 
	8.4	 	 Effect of Termination. Upon expiration or any termination of this
Agreement by either party (i) all rights and licenses granted by one party
to the other party under this Agreement shall terminate; (ii) Samsung
shall return all HSNS Technology, HSNS Confidential Information, and any
Derivative Technology created therefrom, or certify the destruction of the
same to HSNS within ten (10) days; (iii) HSNS shall return all Samsung
Technology, Samsung Confidential Information, and any Derivative
Technology created therefrom, or certify the destruction of the same to
Samsung within ten (10) days; and (iv) all other obligations and rights
under this Agreement shall terminate, except Sections 1, 3, 4, 6,
7, 9, 10, and 11 shall survive termination. Neither party shall be
liable to the other for damages of any sort resulting solely from the
termination of this Agreement in accordance with its terms.
	 
	9.	 	LIMITATION OF LIABILITY

EXCEPT FOR BREACHES OF SECTIONS 4, 6, 7.1, AND 7.2 HEREUNDER, NEITHER PARTY
SHALL BE LIABLE UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY OR OTHER
THEORY FOR ANY INDIRECT, INCIDENTAL, PUNITIVE, SPECIAL, OR CONSEQUENTIAL
DAMAGES, INCLUDING, WITHOUT LIMITATION, LOSS OF BUSINESS, REVENUE, PROFITS,
USE, DATA, OR OTHER ECONOMIC ADVANTAGE, WITH RESPECT TO ANY SUBJECT MATTER OF
THIS AGREEMENT, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

10.     ARBITRATION

		
	 	10.1 Procedure. The parties shall make diligent and reasonable efforts to
amicably settle all disputes, controversies, or differences, which may arise
between the parties hereto, out of or in relation to or in connection with
this Agreement. Upon the occurrence of a dispute between the parties,
including, without limitation, any breach of this Agreement or any obligation
relating thereto, the matter shall be referred first to the managers of HSNS
and Samsung having responsibility for the subject matter of the dispute, or
their designees. The managers, or their designees, as the case may be, shall
negotiate in good faith to resolve such dispute in a mutually satisfactory
manner for thirty days. If such efforts do not result in mutually
satisfactory resolution of the dispute, the matter shall be referred to the
chief executive officer of each party, or their respective designees. The
chief executive officers, or their designees, as the case may be, shall
negotiate in good

 
	 		Page 9 of 16
 

		
	 	Schedule(s). Samsung will pay for all
Services performed by HSNS under any faith to resolve such dispute in a mutually satisfactory manner for thirty
days, or such longer period of time to which the chief executive officers may
agree. If such efforts do not result in a mutually satisfactory resolution,
the dispute shall be finally settled by arbitration in New York, New York in
accordance with the then-current Commercial Rules of Arbitration of the
American Arbitration Association, and the award of the arbitration shall be
final and binding on both parties. The parties shall use their best efforts
to mutually agree upon one arbitrator provided, however, that if the parties
have not done so within ten days after initiation of arbitration hereunder,
or such longer period of time as the parties have agreed to in writing, then
there shall be three arbitrators, including one nominee of HSNS, one nominee
of Samsung, and a third person selected by said nominees. Judgment upon the
award rendered may be entered in the highest court or forum, state or
federal, having jurisdiction; provided, however, that the provisions of this
Section 10 shall not apply to any dispute or controversy as to which any
treaty or law prohibits such arbitration. The prevailing party shall be
entitled to reasonable attorneys’ fees and costs to be fixed by the
arbitrators. At least one arbitrator shall be an attorney with expertise in
intellectual property law and practice and the software arts.

		
	 	10.2 Injunctive Relief. Notwithstanding the above, pending the outcome of
any arbitration proceedings, in the event that either party is in breach of,
or threatens to breach, any obligation of confidentiality hereunder, the
non-breaching party shall be entitled to apply to any court having
jurisdiction over the breaching party seeking injunctive relief (interim,
interlocutory, and/or final) to prevent the breaching party from breaching or
continuing to breach any such obligation.

	11.	 	GENERAL

		
	 	11.1 Notices.  All notices and requests in connection with this
Agreement shall be deemed given as of the day they are received either by
telefacsimile, messenger, delivery service, or United States Postal
Service, postage prepaid, certified or registered, return receipt
requested, and addressed as follows:

	 		Page 10 of 16

 

	 	 	 
	To Samsung:	 	To HSNS:
		 	
	Samsung Electronics America	 	
High Speed Net Solutions, Inc.
	
	
	
	

	105 Challenger Road	 	
434 Fayetteville Street Mall, Suite
	
	
	
	

	Ridgefield Park, NJ 07660	 	
600
	
	
	
	

	Attention: Michael Malcy, VP	 	
Raleigh, NC 27601
	
	
	
	

	 	 	
Attention: Gary Ban, COO
	
	
	
	

	Phone: (201) 229-4241	 	
Phone: (919) 807-5600
	
	
	
	

	Fax: (201) 229-4240	 	
Fax: (919) 807-5601
	
	
	
	

	Email: michaelm@sea.samsung.com	 	
Email: gary.ban@summus.com
	
	
	
	

	Copy to:	 	
Copy to:
	
	
	
	

	 	 	
Pennie & Edmonds, LLP
	
	
	
	

	 	 	
1155 Avenue of the Americas
	
	
	
	

	 	 	
New York, NY 10036
	
	
	
	

	 	 	
Attention: Rory J. Radding
	
	
	
	

	Fax:	 	
Fax: (212) 869-8864

		
	 	     or to such other address as a party may designate pursuant to this notice
provision.

		
	 	11.2 Independent Contractors.  Samsung and HSNS are
independent contractors as to each other, and at no time shall either
be deemed to be or hold itself out as the agent, partner or
representative of the other. Nothing in this Agreement shall be
construed to form a joint venture or partnership between the parties.

		
	 	11.3 Press Releases.  The parties will cooperate with each other on
press releases and similar communications regarding the non-confidential
subject matter of this Agreement. The content, timing and necessity of any
and all press releases or similar communications will be agreed upon in
writing by both parties prior to any such release or communication.

		
	 	11.4 Taxes.  In the event taxes are required to be withheld on
payments made under this Agreement by any U.S. (state or federal) or
foreign government, Samsung may deduct such taxes from the amount owed
HSNS and pay them to the appropriate taxing authority. Samsung shall
in turn promptly secure and deliver to HSNS an official receipt for
any taxes withheld. Samsung will use reasonable efforts to minimize
such taxes to the extent permitted under applicable law.
Additionally, Samsung shall promptly provide HSNS with copies of tax
certificates showing that such tax payments have been made by Samsung.
Under the Convention for the Avoidance of Double Taxation between the
Republic of Korea and the U.S. and the Convention and Agreement of Tax
Exemption and Reduction between the Republic of Korea and U.S.,
engineering support, including, without limitation, the provision of
engineering support services, is not taxable.

	 		Page 11 of 16

 

		
	 	11.5 Governing Law.  This Agreement shall be governed and
interpreted in all respects under the laws of the State of New York,
without regard to any conflicts of law provisions thereof.

		
	 	11.6 Assignment.  This Agreement shall be binding upon and
inure to the benefit of each party’s respective successors and lawful
assigns; provided, however, that Samsung may not assign this
Agreement, in whole or in part, without the prior written approval of
HSNS. An “assignment” shall be deemed to include, without limitation,
a merger of one party with a third party, whether or not the party is
the surviving entity, any transaction or series of transactions
whereby a third party acquires direct or indirect power to control the
management and policies of the party, whether through the acquisition
of voting securities, by contract, or otherwise, or the sale of more
than fifty (50%) percent of the party’s assets (whether in a single
transaction or series of transactions). Any attempted assignment in
violation of this Section 11.6 shall be void and of no effect.

		
	 	11.7 Force Majeure. Each party to this Agreement shall be excused
from any performance required of such party hereunder if, and only to
the extent, such performance is rendered impossible or unfeasible due
to any catastrophe or other major event beyond such party’s reasonable
control and not due to the fault or negligence of such party,
including, without limitation, war, riot, and insurrection; laws,
proclamations, edicts, ordinances or regulations; strikes, lockouts or
serious labor disputes; floods, fires, explosions, or other natural
disasters. In the event of the occurrence of such a force majeure
event, the party unable to perform shall promptly notify the other
party, shall suspend performance only for such period of time as is
necessary as a result of the force majeure event, and shall use its
commercially reasonable best efforts to resume performance as quickly
as possible.

		
	 	11.8 Construction.  If any one or more provisions of this
Agreement shall be found to be illegal or unenforceable by a court of
competent jurisdiction in any respect, the validity, legality and
enforceability of the remaining provisions shall not in any way be
affected or impaired thereby, provided the surviving agreement
materially comports with the parties’ original intent, and the
remainder of this Agreement will continue in full force and effect.
Failure by either party to enforce any provision of this Agreement
will not be deemed a waiver of future enforcement of that or any other
provision. This Agreement has been negotiated by the parties and
their respective counsel and will be interpreted fairly in accordance
with its terms and without any strict construction in favor of or
against either party.

		
	 	11.9. Entire Agreement.  This Agreement constitutes the entire
agreement between the parties with respect to the Services and all
other subject matter hereof and merges all prior and contemporaneous
communications. It shall not be modified except by a written
agreement dated subsequent to the date of this Agreement and signed on
behalf of Samsung and HSNS by their respective duly authorized
representatives.

	 		Page 12 of 16

 

     IN WITNESS WHEREOF, the parties have entered into this Agreement as of the
Effective Date written above.

	 	 	 
	HIGH SPEED NET SOLUTIONS, INC.	 	SAMSUNG ELECTRONICS AMERICA
	
	 	

	By: Bjorn Jawerth	 	
By: Michael Malcy
	
	
	
	

	Name (print):Bjorn Jawerth	 	
Name (print): Michael Malcy
	
	
	
	

	Title: Co-CEO	 	
Title: Vice President
	
	
	
	

	Date: 8/1/01	 	
Date: 7/27/01

	 		Page 13 of 16

 

EXHIBIT A

MAINTENANCE PROBLEM SEVERITY AND RESOLUTIONS

	1.	 	Error Reporting. Samsung’s designated technical contact shall promptly
report via e-mail to HSNS all Errors in the Deliverables of which it
becomes aware. Each Error will be classified by the mutual agreement of
the Parties as one of the following:

		
	 	1) “Critical” Problem, which prevents or seriously impairs the
performance in accordance with the Specifications of substantially all
major functions.

		
	 	2) “Severe Impact” Problem which prevents or seriously impairs the
performance in accordance with the Specifications of a major function.

		
	 	3) “Degraded Operation” Problem, which disables or impairs the
performance in accordance with the Specifications of a minor function.

	2.	 	Error Correction. During the Initial Support Term and the Extended
Support Term, if applicable, HSNS shall use reasonable efforts to respond
to and resolve (to the extent reasonably possible) Errors reported in
accordance with 1 above as set forth below (for the purposes of this
Section, a day refers to a business day as opposed to calendar day):

	 	 	 	 	 	 	 	 	 
	 	 	First Level	 	Final Level
	Critical
	 	4 Days	 	4 Days
	
	
	
	

	Severe Impact
	 	4 Days	 	5 Days
	
	
	
	

	Degraded Operation
	 	1 Week	 	2 Weeks

		
	 	     “First Level” means providing a patch or work-around which is used as a
temporary fix.

		
	 	     “Final Level” means providing a patch or work-around, which is a
permanent fix.

	 		Page 14 of 16

 

SERVICES SCHEDULE 1

REQUIREMENTS

1.0 Requirements for Video Codec.

		
	 	     [INSERT]

2.0 Requirements for Still Image Codec.

		
	 	     [INSERT]

PRODUCT.

The Product(s) for which the Ported Object under this Services Schedule 1 is
targeted is (are):

LICENSE FOR TESTING

DELIVERABLES.

1.0 Milestone Deliverables

2.0 Supporting Deliverables

3.0 Document Deliverables

		
	 	     [INSERT]

SCHEDULE. The Deliverables will be completed and delivered according to the
following schedule.

		
	 	     [INSERT]

TECHNOLOGY

1.0 HSNS Technology

		
	 	     [INSERT]

2.0 Samsung Technology

		
	 	     [INSERT]

PORTING TEAM.

1.0 Porting Location.

2.0 Personnel.

List Of Authorized Company Employees:

		
	 	     [INSERT]

List Of Authorized Company Independent Contractors (If Any):

		
	 	     [INSERT]

3.0 Development Tools.

	 		Page 15 of 16

 

THE FOREGOING SERVICES SCHEDULE 1 IS AGREED TO AND ACCEPTED BY THE PARTIES:

	 	 	 
	HIGH SPEED NET SOLUTIONS, INC.	 	SAMSUNG ELECTRONICS AMERICA
	
	 	

	By:	 	
By:
	
	
	
	

	Name (print):	 	
Name (print):
	
	
	
	

	Title:	 	
Title:
	
	
	
	

	Date:	 	
Date:

	 		Page 16 of 16

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