Document:

INTELLECTUAL PROPERTY RIGHTS PURCHASE AND TRANSFER AGREEMENT

 

EXHIBIT 10.1

INTELLECTUAL PROPERTY RIGHTS 

PURCHASE AND TRANSFER AGREEMENT

This Intellectual Property Rights Purchase and Transfer Agreement (this “Agreement”) is made as of this 2nd day of April 2020, between Wewards, Inc. A Nevada Corporation, (hereinafter referred to as “Wewards” or “WEWA” or “Buyer”), and United Power, Inc., a Nevada Corporation, hereinafter referred to as (“UPI” or “Seller” or “United Power”).

RECITALS:

A. United Power currently owns or has the right to certain Intellectual Property Rights identified on Exhibit A hereto (the “Assets”), including but not limited to Patents, Pending Patents, Trademarks and Continuation-in-Part, Applications, etc. listed thereon.

B.

Upon the Closing Date, United Power shall transfer to Buyer the Assets free of any and all encumbrances and Buyer accepts all rights to the Assets.

C.

Wewards wishes to purchase the Assets for the Purchase Price set forth in Section 2 below.

It is therefore agreed as follows:

Definitions.

As used herein, the following terms shall have the following meanings:

A.

Intellectual Property Rights. The term “Intellectual Property Rights” means all (i) patents, patent applications, patent disclosures and inventions, (ii) Internet Domain names, trademarks, service marks, trade dress, trade names, logos and corporate names and registrations and applications for registration thereof together with all of the goodwill associated therewith, (iii) copyrights (registered or unregistered) and copyrightable works and registrations and applications for registration thereof, (iv) mask works and registrations and applications thereof, (v) computer software, data, databases and documentation thereof, (vi) trade secrets and other confidential information (including ideas, formulas, compositions, inventions (whether patentable or unpatentable and whether or not reduced to practice), know-how, manufacturing and production processes and techniques, research and development information, drawings, specifications, designs, plans, proposals, technical data, and copyrightable works, financial and marketing plans and customer and supplier lists and information, and (vii) copies and tangible embodiments thereof (in whatever form or medium).

B.

Closing. The term “Closing” or “Closing Date” shall have the meaning ascribed to it in Section 3.

C.

Closing Date Payment. The term “Closing Date Payment” shall have the meaning ascribed to it in Section 3.

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D.

Material Adverse Effect. The term “Material Adverse Effect” shall mean events which have an adverse effect in the aggregate which, measured in dollars, exceeds the sum of $10,000.

E.

Material Contract. The term “Material Contract” shall have the meaning ascribed to it in Section 5.3.

F.

Proration Date. The term “Proration Date” shall mean the specific date set for Closing in Section 3 or any subsequent date set for Closing, provided that the actual date of Closing occurs within five (5) business days after said date set for Closing.

G.

Affiliate of Seller. The term “Affiliate of Seller” shall mean (i) any individual, partnership, corporation, or other entity or person which is owned or controlled directly or indirectly by United Power; (ii) any other individual, partnership, corporation, or other entity or person which controls or is controlled by or under common control with Seller; and (iii) any officer, director, partner, or owner of 10 percent or greater equity or voting interest in any such other corporation, partnership, or other entity or person.

H.

Code. The term “Code” shall mean the Internal Revenue Code of 1986, as amended.

I.

Agreement. The term “Agreement” shall mean this instrument and all Schedules and Exhibits attached hereto.

1.

Sale, Purchase and Transfer of Intellectual Property Rights.

1.1

Assets. 

Subject to the terms and conditions of this Agreement, at the Closing referred to herein, Seller agrees to sell, transfer and assign and Buyer agrees to purchase and accept on the terms stated herein, all of Seller's right, title and interest in and to the Assets, including, without limitation, all contracts, contract rights, licenses, licenses, notifications, approvals and authorizations to the extent assignable associated therewith (the “Contracts”).

1.2

Assignment of Contracts.

(a)

Contracts Assignable Without Consent. Seller agrees to assign or cause to be assigned to Buyer or a Designee, as of the Closing, all of the rights of Seller under the Contracts that are assignable without consent of any third party and Buyer shall assume, as of the Closing, 

(b)

Seller to Use Reasonable Efforts. Anything in this Agreement to the contrary notwithstanding, Seller shall be obligated to sell, assign, transfer or convey or cause to be assigned, transferred or conveyed to Buyer or a Designee, if applicable, any of its rights in and to any of the Assets and first obtaining all necessary approvals, consents or waivers. Seller shall use all reasonable efforts, and cooperate with the Buyer, to obtain all necessary approvals, consents or waivers, or to resolve any impracticalities of transfer necessary to 

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assign or convey to Buyer or a Designee, if applicable, the Asset as soon as practicable; provided, however, that neither Seller nor Buyer shall be obligated to pay any consideration therefor except for filing fees and other ordinary administrative charges which shall be paid by Seller to the third party from whom such approval, consent or waiver is requested. Such approvals, consents, and waivers shall be in favor of the Buyer and, if applicable, a Designee.

(c)

If Waivers or Consents Cannot be Obtained. To the extent that any of the approvals, consents or waivers referred to in have not been obtained by Seller as of the Closing, or until the impracticalities of transfer are resolved, Seller shall, during the remaining term of such Contracts, use all reasonable efforts to (i) obtain the consent of any such third party with the filing fees and ordinary administrative charges payable to such third party shall be the sole responsibility of the Seller; (ii) cooperate with Buyer in any reasonable and lawful arrangements designed to provide the benefits of such Contracts to Buyer or a Designee, if applicable, so long as Buyer fully cooperates with Seller in such arrangements; and (iii) enforce, at the request of Buyer and at the expense of the Seller.

1.3

Transferring Assets and Licenses.

Seller will assign the Assets, transfer or convey, or cause to be assigned, transferred or conveyed to Buyer or a Designee, if applicable, at the Closing.

2.

Purchase Price.

The purchase price for the Assets (“Purchase Price”) shall be one hundred seventy-nine thousand and three hundred ($179,300) dollars of Buyer.  All securities are to be delivered to the Seller at the Closing.

3.

Closing.

Date of Closing. The Closing shall take place at the offices of Wewards, Inc., or at such other place as the parties may agree in writing, on April 2, 2020 or such later date as all conditions to Closing set forth in Section 7.7 below have been completed.

3.1

Documents to be Delivered by Seller.

At or prior to the Closing, Seller shall deliver, or cause to be delivered, the following:

(a)

documents of Assignment free of encumbrances and other instruments of transfer, dated the Closing Date, transferring to Buyer title to the Assets. 

(b)

documents evidencing the assignment and assumption of the Contracts to

Buyer or a Designee (together with any third-party consents required for such transfers).  

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(c)

provide a copy of the written consent of resolutions of the board of directors of United Power and copies of the resolutions of the shareholders of United Power authorizing the execution, delivery and performance of this Agreement by United Power.

3.2

Documents to be Delivered by Buyer.

At or prior to the Closing Date, Buyer shall deliver the following:

(a)

documents evidencing the issuance of a security instrument e.g. business check or cashier’s check in the amount of one hundred seventy-nine thousand and three hundred ($179,300) dollars pay to Seller. 

(b)

a copy of the resolutions of the board of directors of Buyer authorizing the execution, delivery and performance of this Agreement by Buyer, and a certificate of its secretary or assistant secretary, dated the Closing Date, that such resolutions were duly adopted and are in full force and effect.

3.3

Transfer Fees

Any recording fees or related Asset transfer fees shall be paid by Seller.

4.

Conduct of the Seller Pending Closing.

(a)

Between the date hereof and the Closing Date, Seller shall continue to operate the Business in the ordinary course and in a manner reasonably consistent with its present operating plan.

(b)

Seller will not take any action, (i) the result of which will be to create a Material Adverse Effect on the value of the Assets, or (ii) which is both not reasonably consistent with its normal operating plan and not in the ordinary course of business, except as otherwise set forth in this Section 4.

5.

Representations of Seller.

Seller represents to Buyer that:

5.1

Organization, Standing and Authority.

United Power is a corporation organized, under the laws of the State of Nevada.

5.2

Authorization of Agreement; Authority.  

The execution, delivery and performance of this Agreement by Seller has been duly authorized by all necessary corporate and partnership action of Seller, and this Agreement constitutes the valid and binding obligation of Seller, enforceable in accordance with its terms, 

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except to the extent enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors' rights in general and subject to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law). The execution, delivery and performance of this Agreement by Seller will not (a) violate or conflict with United Power corporate power and authority; (b) constitute a violation of any law, regulation, order, writ, judgment, injunction or decree applicable to Seller; or (c) subject to the receipt of appropriate consents as specified in this Agreement as of the Closing Date, conflict with, or result in the breach of the provisions of, or constitute a default under, any agreement, license, permit or other instrument to which Seller is a party or is bound or by which the Assets are bound. 

5.3

Material Contracts. 

All of the Material Contracts which are to be transferred to Buyer at Closing, if any, have not been further modified, or amended. A Material Contract shall mean a Contract which involves payments, performance of services or delivery of goods by or to Seller after the Closing Date in an amount with any value.

5.4

Litigation., Compliance with Laws. 

There are no judicial or administrative actions, proceedings or investigations pending or, to the best of Seller's knowledge, threatened, that question the validity of this Agreement or any action taken or to be taken by Seller in connection with this Agreement. There is no claim of infringement, litigation, proceeding or governmental investigation pending or, to the best of Seller's knowledge, threatened, or any order, injunction or decree outstanding which, if decided unfavorably, would have a Material Adverse Effect on Buyer.

5.5

The Assets.

Seller has, or will have on the Closing Date, good and marketable title (which includes leasehold title if applicable) to the Assets to be transferred to Buyer on the Closing Date. Please see Exhibit A in regards to Assets to be transferred.

6. Representations of Buyer. Buyer represents to Seller as follows:

6.1 

Buyer's Organization. 

Buyer is a Corporation organized, existing and in good standing under the laws of Nevada and has the full corporate power and authority to enter into and to perform this Agreement.

6.2

Authorization of Agreement. The execution, delivery and performance of this Agreement by Buyer have been duly authorized by all necessary corporate action of Buyer, and this Agreement constitutes the valid and binding obligation of Buyer enforceable against it in accordance with its terms, except to the extent enforceability may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors' rights in general and subject to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

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6.3

Consents of Third Parties. The execution, delivery and performance of this Agreement by Buyer will not (a) violate or conflict with the articles of organization or by-laws of Buyer; or (b) constitute a violation of any law, regulation, order, writ, judgment, injunction or decree applicable to Buyer.

6.4 

Litigation.

There are no judicial or administrative actions, proceedings or investigations pending or, to the best of Buyer's knowledge, threatened, that question the validity of this Agreement or any action taken or to be taken by Buyer in connection with this Agreement. There is no litigation, proceeding or governmental investigation pending or, to the best of Buyer's knowledge, threatened, or any order, injunction or decree outstanding, against the Buyer that, if adversely determined, would have a material effect upon Buyer's ability to perform its obligations under this Agreement.

7.

Further Agreements of the Parties.

7.1

Access to Information. 

Buyer and each Designee shall have access to information and other Assets for due diligence investigation purposes and to facilitate an orderly transition in the management of those Assets in anticipation of Closing. In addition, Seller will make available to Buyer and each Designee its financial statements and shall cooperate and instruct Seller's independent auditors to cooperate, at Buyer's expense, in preparing the financial statement and which Buyer will, or such Designee may, be required to file with the Securities Exchange Commission.

7.2

Notice of Changes and Events.

Each party shall promptly notify the other party in writing, and furnish to such party any information that such party may reasonably request, with respect to the occurrence of any event or the existence of any state of facts that would (i) result in the party's representations and warranties not being true if they were made at any time prior to or as of the Closing Date, or (ii) impair the party's ability to perform its obligations under this Agreement.

7.3

Expenses. Except as otherwise specifically provided in this Agreement, Buyer and Seller shall bear their own respective expenses incurred in connection with this Agreement and in connection with all obligations required to be performed by each of them under this Agreement.

7.4 

Publicity. Buyer shall have the right to issue a public announcement or press release concerning the transactions contemplated by this Agreement and, except as may be required by applicable law or regulation or rule of any stock exchange or organized securities market on which the securities of Buyer or Seller's securities listed or traded, will most likely make a public announcement or issue a press release.

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7.5

Preservation of Records.

Buyer agrees that neither Buyer nor any Designee shall destroy any records related to the Assets without first giving Seller sixty (60) days advance written notice and an opportunity to take custody of such records, at Seller's cost and expense, including reimbursement of Buyer's or any affected Designee's extraordinary costs, if any.

7.6

Buyer's Due Diligence.

Buyer may conduct due diligence examinations during a period commencing on the date hereof and ending at the close of business on the day prior to the Closing Date (the “Due Diligence Period”).

7.7

Conditions to Obligations of Seller. The respective obligations of each party to perform this Agreement and consummate the Closing are subject to the satisfaction of the following conditions, unless waived by the applicable party.

(a)

The shareholders of Seller shall have approved this Agreement, and the consummation of the transactions contemplated hereby, to the extent required by applicable law.

(b)

Buyer shall have executed a mutually agreeable and reasonable non-compete agreement with seller.

7.8

Registration Rights. Buyer and Seller shall negotiate and execute a mutually agreeable registration rights agreement covering the compliance requirement by the SEC including filing with SEC in connection with the transactions contemplated hereunder.

8.

Default; Remedies; Arbitration.

8.1 

Default; Remedies. Time is of the essence of this Agreement. If either party fails or refuses to carry out this Agreement according to its terms, the other party shall be entitled to the remedies set forth below.

8.2 

Arbitration. This Agreement shall not be subject to termination except as specifically provided in this Agreement. Any question, controversy or claim arising under or relating to this Agreement, including without limitation any such matter pertaining to an alleged event having a Material Adverse Effect or any adjustment of the Purchase Price, or for any breach hereof, shall be settled by arbitration in accordance with the rules of the American Arbitration Association and the provisions of the laws of Nevada relating to arbitration, as said rules and laws are in effect on the date of this Agreement. The arbitration shall be conducted in State of Nevada, by and before a single arbitrator, who is experienced in the problem or problems in dispute, to be agreed upon by the Seller and Buyer, or if they are unable to agree upon an arbitrator within ten (10) days after written demand by either party for arbitration, then, at the written request of either party, the arbitrator shall be appointed by the American Arbitration Association, Proceedings to obtain a judgment with respect to any 

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award rendered hereunder shall be undertaken in accordance with the laws of Nevada including the conflicts of laws provisions thereof.

Each party shall pay one-half of the arbitrator's fees and expenses. Upon application to the arbitrator, the parties shall be entitled to limited discovery, including only exchange of documents and only depositions on such terms as the arbitrator may allow for purposes of fairness and to reduce the overall time and expense of the arbitration.

9.

Indemnification and Related Matters.

9.1 

Indemnification.

Buyer agrees to save, defend, indemnify and hold Seller and its officers and directors, parents, subsidiaries, shareholders, affiliates, predecessors, successors and assigns (and their respective officers, directors, employees and agents) harmless from and against any loss, claims, liabilities, damages, costs and expenses, including attorneys' fees incurred with respect to third parties (“Damages”) resulting from, based upon, or arising out of:

(i)

any breaches, occurring before, at or after Closing, of Contracts, Long Term Leases, permits, licenses, and all other agreements and obligations transferred or assigned to Buyer;

(ii)

the operation, management or condition of the Assets or Business at or after the Closing;

(iii)

all matters assumed by the Buyer pursuant to any and all provisions of this Agreement or any related agreement; and

(iv)

all actions, claims, suits, proceedings, demands, assessments, judgments, costs and expenses, including attorneys' fees (incurred with respect to third parties), with respect to the foregoing.

Wherever this Agreement provides for Buyer's indemnification the term “Seller” shall mean United Power, Inc.

Seller agrees to save, defend, indemnify and hold Buyer and its officers and directors, parents, subsidiaries, affiliates, predecessors, successors and assigns (and their respective officers, directors, employees and agents) harmless from and against any loss, claims, liabilities, damages, costs and expenses, including attorneys' fees incurred with respect to third parties (“Damages”) resulting from, based upon, or arising out of:

(i)

fringement claims brought against the Assets or any portion thereof, any breaches, occurring before the Closing, of Contracts, Long Term Leases, permits, licenses, and all other agreements and obligations transferred or assigned to Buyer;

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(ii)

the operation, management or condition of the Assets or Business or, whether arising before the Closing, excluding only those matters covered by Section 9 above; and

(iii)

all actions, claims, suits, proceedings, demands, assessments, judgments, costs and expenses, including attorneys' fees (incurred with respect to third parties), with respect to the foregoing.

9.2 

Defense of Claims by Third Parties. If any claim is made against a party that, if sustained, would give rise to a liability of the other under this Agreement, Buyer or Seller, as the case may be, shall promptly cause notice of the claim to be delivered to the other and shall notify the other party and its counsel of its obligation to defend such claim, at such other party’s sole expense. The obligation to defend indemnity claims shall be the responsibility of each party for a period of two (2) years, with counsel satisfactory to the party against which such claim is made.

10.

Miscellaneous.

10.1 

Entire Agreement. This Agreement contains, and is intended as, a complete statement of all of the terms of the arrangements between the parties with respect to the matters provided for, supersedes any previous agreements and understandings between the parties with respect to those matters, and cannot be changed or terminated orally.

10.2 

Governing Law. Seller and Buyer each hereby consent to personal jurisdiction in any action brought with respect to this Agreement and the transactions contemplated hereunder in State of Nevada and to the arbitration described in Section 8 of this Agreement shall be governed by and construed in accordance with the law of the State of Nevada.

10.3 

Notices. All notices and other communications under this Agreement shall be in writing and shall be deemed given when delivered personally or mailed by registered mail, return receipt requested, to the parties at the following addresses (or to such address as a party may have specified by notice given to the other party pursuant to this provision):

If to Buyer to:

Lei Pei, CEO

Wewards, Inc.

2960 W Sahara Ave

Las Vegas, NV, 89102

If to Seller, to:

Lei Pei, CEO

United Power, Inc.

130 E. Huntington Dr

Arcadia, CA 91006

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10.4 

Severability. The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement which shall remain in full force and effect.

10.5 

Further Assurances and Assistance. Buyer and Seller agree that each will execute and deliver to the other any and all documents, in addition to those expressly provided for herein, that may be necessary or appropriate to effectuate the provisions of this Agreement, whether before, at or after the Closing. Seller agrees that, at any time and from time to time after the Closing, it will execute and deliver to Buyer such further assignments or other written assurances as Buyer may reasonably request to perfect and protect Buyer's title to the Assets.

10.6 

Survival. The terms, covenants, agreements, representations and warranties contained in or made pursuant to this Agreement together with all indemnities and undertakings contained herein shall survive the Closing for two (2) years, and shall not be deemed to have been merged in any of the documents delivered at the Closing, irrespective of any investigation made by or on behalf of any party.

10.7 

Waiver. Any party may waive compliance by another with any of the provisions of this Agreement. No waiver of any provision shall be construed as a waiver of any other provision. Any waiver must be in writing and signed by the party waiving such provision.

10.8 

Binding Effect; Assignment. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns. Except as expressly set forth herein, nothing in this Agreement shall create or be deemed to create any third party beneficiary rights in any person or entity not a party to this Agreement, including any such person or entity asserting rights as a third party beneficiary with respect to environmental matters. No assignment of this Agreement or of any rights or obligation hereunder may be made by either party (by operation of law or otherwise) without the prior written consent of the other and any attempted assignment without the required consent shall be void; provided, however, that no such consent shall be required of Buyer to assign its rights under this Agreement to one or more Designees, but no such assignment by Buyer of its rights or obligations hereunder shall relieve Buyer of any of its obligations to Seller under this Agreement. Further, no such consent shall be required of Seller to assign its rights or obligations under this Agreement to one or more Affiliates of Seller, but no such assignment by seller of its rights or obligations hereunder shall relieve Seller of any of its obligations to Buyer hereunder.

10.9 

Counterparts. This Agreement may be executed in counterparts, each of which shall be an original, but which together shall constitute one and the same Agreement.

10.10 

No Recordation. Neither this Agreement nor a memorandum hereof shall be recorded in any jurisdiction or public record.

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10. 11 

No Presumptions. This Agreement is a result of negotiations between Seller and Buyer, both of whom are represented by counsel of their choosing. No presumption shall exist in favor of either party concerning the interpretation of the documents constituting this Agreement by reason of which party drafted the documents.

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

	
	UNITED POWER, INC.

	 

	 

	 

	 

	By: 

/s/ Lei Pei

 

	Lei Pei, CEO of United Power Inc.

[Received signed from seller April 2, 2020]

	
	WEWARDS, INC.

	 

	 

	 

	 

	 

	By: 

/s/ Lei Pei

 

	Lei Pei, CEO of Wewards, Inc.

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Exhibit: A

United Power, Inc. Assets

UPI currently owns IP rights to A MMORPG (Massively Multiplayer Online Role-playing Game) game called Megopoly. It is the first MMOEPG 3-D board game in the world, where players may earn Bitcoins through buying, selling, and managing real estate properties in the forms of tokens, pawns and props in different virtual cities. Each token or pawn or prop is given certain value or “Megopoly Coins” that is equivalent to certain quantity of Satoshi, then equivalent to certain quantity of value of Bitcoin in real-time marketplace.   

The game allows thousands of players from different corners of the world interact with each other in real-time. Players travel (move) through different parts of a city, earning profit by investing in properties, charging rent, acquiring rare bonus assets, and selling off their investments to other players. When a player earns enough credits and passes the level-change threshold, the game will propel the player into higher levels of cities where the player will experience more sophisticated, surprising, shocking and unexpected audio-visual effects with more rewards – all in real-time. 

The goal of Megopoly is to earn Megopoly Coins by investing in properties and collecting rent from other players. Players can keep playing the game using their Megopoly Coins for the opportunity to earn more coins, or they can exchange those coins for Bitcoins based on real-time market exchange rates. 

The Game can be played 24/7 through a web browser on a PC, laptop, tablet or cellphone. It is supported by both English and Chinese languages. It is a free-to-play game for fun and entertainment. The Game’s features and mechanisms are designed for players of both entry-level and pro-level. Entry-level players can immediately enjoy the game, while pros can earn considerable rewards and exchange those rewards for Bitcoins. One of the concepts that UPI designers incorporated into the Game is, “The Sky’s The Limit”, which means a player may earn Bitcoins to an unpredictable level.  

An independent valuation from Scalar that was used as a basis for the purchase price is hereby attached. 

12LICENSE AGREEMENT

EXHIBIT 10.2

LICENSE AGREEMENT  

 

This License Agreement (this “Agreement”), effective as of April 20, 2020 (the “Effective Date”), is by and between 

Wewards Inc. with offices located at 2960 Sahara Ave, Las Vegas, NV 

Hereinafter also referred to as: “Licensor” 

And 

Sandbx Corp. with offices located at 77 Water St., New York, NY 10004

Hereinafter also referred to as: “Licensee” 

 

WHEREAS, Licensor owns all rights, title, and interest, including all intellectual property rights, in and to the underlying technology platform as described in Section Definitions of this agreement, in “Documentations and Software” and in all Exhibits to this Agreement, which is attached hereto and made a part hereof; and 

WHEREAS, Licensee desires to obtain a non-exclusive license in the “Territory” (as defined below) to use the underlying technology platform, subject to the terms and conditions of this Agreement. 

NOW, THEREFORE, in consideration of the mutual covenants, terms, and conditions set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 

1.

Definitions.   

“Documentation and Software” means Licensor’s user manuals, instructions, technical literature and other materials either electronically or in hard copy form and related to the platform, and comprises the game platform (as described in Exhibit B) and its full functionality. 

“Territory” means North America and Europe 

“Updates” means any updates, bug fixes, patches, or other error corrections to the software, and which Licensor generally makes available free of charge to licensees, as described in “Documentation and Software”. 

“Consumers” means individuals who use the game platform to play a game. 

“USD” means the lawful currency of the United States of America. 

2.

License. 

(a)

License Grant.  Subject to and conditioned on Licensee’s compliance with all of the terms and conditions of this Agreement, Licensor hereby grants Licensee a nonexclusive and non-transferable license during the Term and solely in the Territory, to  

 

(i) install, run, use and display the game platform as described in “Documentation and Software” for the benefit of Consumers;  

 

(iii) use and make a reasonable number of copies of Documentation and Software solely for Licensee’s internal business purposes in connection with Licensee’s license hereunder. 

 

Anything in this Agreement to the contrary notwithstanding, Licensor has the right to monitor Licensee’s business and activities during the Term of this Agreement, and to terminate this Agreement if Licensor determines, in its sole discretion, that Licensee’s activities are in violation of this Agreement. 

(b)

Use Restrictions.  Licensee shall not use the Platform or Documentation and Software for any purposes beyond the scope of the license granted in this Agreement.  Without limiting the foregoing and except as otherwise expressly set forth in this Agreement, Licensee shall not at any time, directly or indirectly:  

(i)

copy, modify, or create derivative works of the Platform or Documentation and Software, in whole or in part;  

(ii)

rent, lease, lend, sell, sublicense, assign, distribute, publish, transfer, or otherwise make available the Platform or Documentation and Software without prior written consent of the Licensor;  

(iii)

remove any proprietary notices from the Platform or Documentation and Software; or  

(iv)

use the Platform or Documentation and Software in any manner or for any purpose that infringes, misappropriates, or otherwise violates any intellectual property right or other right of any person, or that violates any applicable law; or  

(c)

Reservation of Rights.  Licensor reserves all rights not expressly granted to Licensee in this Agreement.  Except for the limited rights and licenses expressly granted under this Agreement, nothing in this Agreement grants, by implication, waiver, estoppel, or otherwise, to Licensee or any third party any intellectual property rights or other right, title, or interest in or to the Platform or Documentation and Software. 

(d)

Delivery.  Licensor shall enable Licensee to have access to the Platform on or shortly after the Effective Date of this Agreement.   

3.  Initial Setup Fee, Royalty, Payment Method and Auditing

(a)

Initial Setup Fee. Licensee shall pay a setup fee in the amount of $50,000 USD to Licensor as a consideration to access to source code and setup assistance. The setup fee shall be paid in 5 equal monthly installments starting from May 1, 2020.  

(b)

Following the launch of the game platform by Licensee, Licensor will be entitled to a royalty of 10% of net revenue (not including business expenses such as salaries etc.) from the sales of in-game assets by the Licensee or $5,000 USD (whichever is greater) each month starting from the completion of initial SETUP, but no later than January 31, 2021. 

(c)

Royalty Payment Frequency and Period. Royalty Payments shall be made on a monthly basis to reflect the Licensee’s sales revenue generated by gaming customers in the preceding month.  

(d)

Payment Method. All such payments shall be made by ACH, Wire, or any other method agreed upon by the parties.  

(e)

Auditing.  Licensee agrees to accept periodic and random sales audit and inspection by Licensor or Licensor’s designated representative(s). Additionally, Licensee agrees to maintain complete and accurate records during the Term and for a period of one (1) year after the termination or expiration of this Agreement with respect to matters necessary for accurately determining amounts due hereunder.     

4.  Confidential Information.   

From time to time during the Term, either party may disclose or make available to the other party information about its business affairs, products, confidential intellectual property, trade secrets, third-party confidential information, and other sensitive or proprietary information, whether orally or in written, electronic, or other form or media, and whether or not marked, designated or otherwise identified as “confidential” (collectively, “Confidential Information”). Confidential Information does not include information that, at the time of disclosure is:  

(a)

in the public domain;  

(b)

known to the receiving party at the time of disclosure;  

(c)

rightfully obtained by the receiving party on a non-confidential basis from a third party; or

(d)

independently developed by the receiving party.

The receiving party shall not disclose the disclosing party’s Confidential Information to any person or entity, except to the receiving Party’s employees who have a need to know the Confidential Information for the receiving Party to exercise its rights or perform its obligations hereunder. Notwithstanding the foregoing, each Party may disclose Confidential Information to the limited extent required  

(i)

in order to comply with the order of a court or other governmental body, or as otherwise necessary to comply with applicable law, provided that the party making the disclosure pursuant to the order shall first have given written notice to the other party and made a reasonable effort to obtain a protective order; or  

(ii)

to establish a party’s rights under this Agreement, including to make required court filings. On the expiration or termination of the Agreement, the receiving party shall promptly return to the disclosing party all copies, whether in written, electronic, or other form or media, of the disclosing party’s Confidential Information, or destroy all such copies and certify in writing to the disclosing 

party that such Confidential Information has been destroyed. Each party’s obligations of nondisclosure with regard to Confidential Information are effective as of the Effective Date and will expire only at such time as such information ceases to be Confidential Information.  

5.

Intellectual Property Ownership. Licensee acknowledges that, as between Licensee and Licensor, 

Licensor owns all right, title, and interest, including all intellectual property rights, in and to use of the Documentation and Software and any other information, data and technology connected to the game platform. 

6.

Modifications. 

(a)

Exclusive Right. Licensor expressly retains its exclusive rights to make and to carry out any changes, modifications, additions, deletions or improvements to the Platform, provided that any such changes, modifications, additions, deletions or improvements shall not render the Platform unfit to be used in connection with the Platform and/or function or perform at least at the same level as before. 

(b)

Improvements.  If Licensor develops any new feature, modification or improvement relating to the technology of the Platform during the Term of this Agreement, Licensor shall own such new feature, modification or improvement and shall inform Licensee of the details thereof, and, if requested by Licensee, include such feature, modification or improvement as part of the license as contemplated under Section 2.  

7.

Support.  

Licensor shall provide technical advice and assistance by telephone, facsimile transmission or (electronic) mail relating to Licensee's use of the Platform, Documentation and Software and any other information, data and technology as shall be necessary to resolve Licensee’s difficulties and queries in using the Platform during the Term of this Agreement, and without charge.  

8.

Representations and Warranties. 

(a)

Mutual Representations and Warranties.  Licensor and Licensee hereby represent and warrant that: 

(i)

they each have full power and authority to enter into and all the rights necessary to perform their obligations under this Agreement; and 

(ii)

no consent, approval or authorization is required for either of them to enter into and perform their respective obligations under this Agreement. 

(b)

Licensor Warranties.  Licensor hereby warrants that: 

(i)

Licensor is the owner of all intellectual property rights of whatever nature of Platforms, Documentation and Software and any other information, data and technology connected, and it’s free and clear from any third party rights or interests; and 

(ii)

the Platform will perform materially as described in Documentation and Software for the Term of this Agreement, and at time of delivery the Platform does not contain any virus or other malicious code that would cause the Platform to become inoperable or incapable of being used in accordance with Documentation and Software. 

(c)

Exclusions.  The warranties set forth in Section 8(b) do not apply and become null and void if Licensee breaches any provision of this Agreement.  

(d)

Limitations. EXCEPT FOR THE LIMITED WARRANTY SET FORTH IN SECTION 8(B), THE PLATFORM AND DOCUMENTATION AND SOFTWARE ARE PROVIDED “AS IS” AND LICENSOR HEREBY DISCLAIMS ALL WARRANTIES, WHETHER EXPRESS, IMPLIED, STATUTORY, OR OTHERWISE. LICENSOR SPECIFICALLY DISCLAIMS ALL IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE, AND NON-INFRINGEMENT, AND ALL WARRANTIES ARISING FROM COURSE OF DEALING, USAGE, OR TRADE PRACTICE. EXCEPT FOR THE LIMITED WARRANTY SET FORTH IN SECTION 8(B), LICENSOR MAKES NO WARRANTY OF ANY KIND THAT THE PLATFORM AND DOCUMENTATION AND SOFTWARE, OR ANY PRODUCTS OR RESULTS OF THE USE THEREOF, WILL MEET LICENSEE’S OR ANY OTHER PERSON’S REQUIREMENTS, OPERATE WITHOUT INTERRUPTION, ACHIEVE ANY INTENDED RESULT, BE COMPATIBLE OR WORK WITH ANY SOFTWARE, SYSTEM OR OTHER SERVICES, OR BE SECURE, ACCURATE, COMPLETE, FREE OF HARMFUL CODE, OR ERROR FREE.

9. Indemnification.  

(a) Licensor Indemnification.  

(i)

Licensor shall indemnify, defend, and hold harmless Licensee from and against any and all losses, damages, liabilities, costs (including reasonable attorneys’ fees) (“Losses”) incurred by Licensee resulting from any third-party claim, suit, action, or proceeding (“Third-Party Claim”) that the Platform or Documentation and Software, or any use thereof in accordance with this Agreement, infringes or misappropriates such third party’s intellectual property rights, provided that Licensee promptly notifies Licensor in writing of the claim, cooperates with Licensor, and allows Licensor sole authority to control the defense and settlement of such claim.  

(ii)

If such a claim is made or appears possible, Licensee agrees to permit Licensor, at Licensor’s sole discretion, to (A) modify or replace the Platform or Documentation and Software, or component or part thereof, to make it non-infringing, or (B) obtain the right for Licensee to continue use. If Licensor determines that none of these alternatives is reasonably available, Licensor may terminate this Agreement, in its entirety or with respect to the affected component or part, effective immediately on written notice to Licensee.

(iii)

This Section 9(a) will not apply to the extent that the alleged infringement arises from use of the Platform or Documentation and Software in combination with data, software, hardware, equipment, or technology not provided by Licensor or authorized by Licensor in writing.

(b)

Licensee Indemnification. Licensee shall indemnify, hold harmless, and, at Licensor’s option, defend Licensor from and against any Losses resulting from any Third-Party Claim based on Licensee’s or Users: (i) negligence or willful misconduct; (ii) use of the Platform or Documentation and Software in a manner not authorized or contemplated by this Agreement; provided that Licensee may not settle any Third-Party Claim against Licensor unless such settlement completely and forever releases Licensor from all liability with respect to such Third-Party Claim or unless Licensor consents to such settlement, and provided further that Licensor will have the right, at its option, to defend itself against any such Third-Party Claim or to participate in the defense thereof by counsel of its own choice.

(c)

Sole Remedy. THIS SECTION 9 SETS FORTH LICENSEE’S SOLE REMEDIES AND LICENSOR’S SOLE 

LIABILITY AND OBLIGATION FOR ANY ACTUAL, THREATENED, OR ALLEGED CLAIMS THAT THE PLATFORM OR DOCUMENTATION AND SOFTWARE INFRINGES, MISAPPROPRIATES, OR OTHERWISE VIOLATES ANY INTELLECTUAL PROPERTY RIGHTS OF ANY THIRD PARTY.

10. Limitations of Liability.

IN NO EVENT WILL LICENSOR BE LIABLE UNDER OR IN CONNECTION WITH THIS AGREEMENT UNDER ANY LEGAL OR EQUITABLE THEORY, INCLUDING BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, AND OTHERWISE, FOR ANY: (a) CONSEQUENTIAL, INCIDENTAL, INDIRECT, EXEMPLARY, SPECIAL, ENHANCED, OR PUNITIVE DAMAGES; (b) INCREASED COSTS, DIMINUTION IN VALUE OR LOST BUSINESS, PRODUCTION, REVENUES, OR PROFITS; (c) LOSS OF GOODWILL OR REPUTATION; (d) USE, INABILITY TO USE, LOSS, INTERRUPTION, DELAY OR RECOVERY OF ANY DATA, OR BREACH OF DATA OR SYSTEM SECURITY; OR (e) COST OF REPLACEMENT GOODS OR SERVICES, IN EACH CASE REGARDLESS OF WHETHER LICENSOR WAS ADVISED OF THE POSSIBILITY OF SUCH LOSSES OR DAMAGES OR SUCH LOSSES OR DAMAGES WERE OTHERWISE FORESEEABLE. IN NO EVENT WILL LICENSOR’S AGGREGATE LIABILITY ARISING OUT OF OR RELATED TO THIS AGREEMENT UNDER ANY LEGAL OR EQUITABLE THEORY, INCLUDING BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT LIABILITY, AND OTHERWISE EXCEED THE TOTAL AMOUNTS PAID TO LICENSOR UNDER THIS AGREEMENT IN THE SIX MONTH PERIOD PRECEDING THE EVENT GIVING RISE TO THE CLAIM.

11. Term and Termination. 

(a)

Term.  The initial term of this Agreement begins on the Effective Date and, unless terminated earlier pursuant to any of the Agreement’s express provisions, will continue in effect until one (1) year from such date (the “Initial Term”).  This Agreement will automatically renew for additional successive monthly terms unless earlier terminated pursuant to this Agreement’s express provisions or either party gives the other party written notice of non-renewal at least sixty (60) days prior to the expiration of the then-current term (each a “Renewal Term” and together with the Initial Term, the “Term”). 

(b)

Termination. Each party may terminate this agreement with or without reason upon providing a written sixty (60) days notice.

12.  Miscellaneous.

(a)

Entire Agreement. This Agreement, together with any other documents incorporated herein by reference and all related Exhibits, constitutes the sole and entire agreement of the parties with respect to the subject matter of this Agreement and supersedes all prior and contemporaneous understandings, agreements, and representations and warranties. 

(b)

Notices. Any notice or other document required to be given under this Agreement or any communication between the parties with respect to any of the provisions of this Agreement shall be in writing in English and be deemed duly given if signed by or on behalf of a duly authorized officer of the party giving the notice and if left at or sent by facsimile transmission or mail (including electronic mail) to the following addresses: 

 

To the Licensor 

 

Address :  

  2960 W Sahara Ave. Las Vegas, NV 89102

For the attention of 

:  

Lester Pei 

Email 

 

 

: 

 

 

To the Licensee 

 

Address : 

77 Water St., New York, NY 10004 

For the attention of 

:  

U. Soroka 

Email 

 

 

: 

finance@sandbx.co  

 

(c)

Force Majeure. In no event shall either party be liable to the other party, or be deemed to have breached this Agreement, for any failure or delay in performing its obligations under this Agreement, (except for any obligations to make payments), if and to the extent such failure or delay is caused by any circumstances beyond such party’s reasonable control, including but not limited to acts of God, flood, fire, earthquake, explosion, war, terrorism, invasion, riot or other civil unrest, strikes, labor stoppages or slowdowns or other industrial disturbances, or passage of law or any action taken by a governmental or public authority, including imposing an embargo. 

 

(d)

Amendment and Modification; Waiver. No amendment to or modification of this Agreement is effective unless it is in writing and signed by an authorized representative of each party. No waiver by any party of any of the provisions hereof will be effective unless explicitly set forth in writing and signed by the party so waiving. Except as otherwise set forth in this Agreement, no failure to exercise, or delay in exercising, any rights, remedy, power or privilege arising from this Agreement will operate or be construed as a waiver thereof; nor will any single or partial exercise of any right, remedy, power, or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power, or privilege. 

 

(e)

Severability. If any provision of this Agreement is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or unenforceability will not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal, or unenforceable, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible. 

 

(f)

Counterparts. This Agreement may be executed in counterparts, each of which is deemed an original, but all of which together are deemed to be one and the same agreement. 

 

(g)

Assignment. Licensee may not assign or transfer any of its rights or delegate any of its obligations hereunder, in each case whether voluntarily, involuntarily, by operation of law or otherwise, without the prior written consent of Licensor. Any purported assignment, transfer, or delegation in violation of this Section is null and void. No assignment, transfer, or delegation will relieve the assigning or delegating 

party of any of its obligations hereunder. This Agreement is binding upon and inures to the benefit of the parties hereto and their respective permitted successors and assigns. 

(h)

Governing Law; Submission to Jurisdiction. This Agreement is governed by and construed in accordance with the laws of Nevada.  

(i)

No Partnership.  This Agreement shall not be deemed to constitute a partnership or joint venture or contract of employment between the parties. 

(j)

No restriction.  Nothing in this Agreement shall impair Licensor’s right to acquire, license, develop for itself, or have others develop for it, similar technology performing the same or similar functions as the technology contemplated by this Agreement, or to market and distribute such similar technology in addition to, or in lieu of, the Platform, anywhere in the world. 

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

 

Wewards, Inc.

 

By: _____Lei Pei_________________ [Name]

/s/ Lei Pei

 

___________________________ [Signature]  

 

  

____CEO______________________ [Title]

 

Sandbx Corp.  

By: U. Soroka

/s/ Uri Soroka

 

___________________________ [Signature]

 

CEO

  

___________________________ [Title]

Exhibit B is attached   

Exhibit B 

This is the attachment to LICENSE AGREEMENT under section 1. Definitions.

The item(s) to be licensed is an MMO (Massively Multiplayer Online) game, namely MEGOPOLY, consisting of all technology and related rights associated with the game including source codes, user manuals, instructions, technical literature and other materials either electronically or in hard copy form and related to the game and the game platform, as well as its full functionality. 

Megopoly is an MMO 3-D board game, where players will be able to earn fractions of Bitcoins (satoshi) through buying, selling, and managing virtual real estate properties using in-game currency (Megopoly Coins).

Players travel (move) through different parts of a city, earning in-game currency by “investing” in properties, “charging” rent, “acquiring” bonus assets, and selling their properties to other players for in-game currency. A player will be able to progress to higher levels of “cities”. 

Megopoly is playable through a web browser on a desktop computer, tablet or smart phone.

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