Document:

Exhibit 10.1

 

 Exhibit 10.1
 CONFIDENTIAL PATENT PURCHASE AGREEMENT
 

 

 

 This CONFIDENTIAL PATENT PURCHASE AGREEMENT (“Agreement”) is entered into on February 28, 2017 (“Effective Date”) by and between Onstream Media Corporation having its primary place of business at 1291 SW 29th Avenue, Pompano Beach, FL 33069 (“Onstream” or “Seller”), and Mr. Eriya Unten having an address of [REDACTED] Tokyo, Japan  (“Purchaser”). Onstream Media Corporation and Mr. Eriya Unten may be referred to herein individually as a “Party” and collectively as the “Parties.”
 

 

 RECITALS
 

 Seller owns, as the assignee, U.S. Patent Nos. 9,161,068 and 9,467,728 as well as U.S. Patent Application Nos. 14/843,457 and 15/255,416. Seller wishes to sell to Purchaser its entire right, title and interest in such patents and the rights, if any, to certain related patents (“Patents” and “Patent Applications” as defined below), the causes of action to sue for infringement thereof, and any other legal rights entitled by the original owner of the Patents and Patent Applications under the law.
 

 Purchaser wishes to purchase such Patents and Patent Applications.
 

 In consideration for the mutual covenants contained herein and other good and valuable consideration, the sufficiency of which is hereby acknowledged, the Parties agree as set forth herein.
 

 

 AGREEMENT
 

 1.         DEFINITIONS

1.1       “Closing Date” means the date on which Purchaser has satisfied all of its obligations under Section 3 and Section 5.

 1.2       “Control” means the possession (directly or through one or more controlled intermediaries) of the power to direct or cause the direction of the management and policies of a legally recognizable entity, whether through the ownership of more than fifty percent (50%) of the voting shares or other voting interests, by contract, or otherwise.
 

 1.3       “Patents” means U.S. Patent Nos. 9,161,068 and 9,467,728.
 

 1.4      “Patent Applications” means (a) U.S. Patent Application No. 14/843,457, filed September 2, 2015; (b) U.S. Patent Application No. 15/255,416, filed on September 2, 2016 and (c) all reissues, reexaminations, continuations, continuations-in-part, divisionals and extensions of the Patents identified in Section 1.3 and/or the patent applications identified in Section 1.4(a) and (b), and any resulting patents issuing from any or all of the foregoing. 

 
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 1.5       Subsidiary” means any entity Controlled by either Seller or Purchaser. An entity shall be deemed a Subsidiary only so long as such Control exists.
 

 1.6
 “Revenue”/“Revenues” means (1) where revenues are related to the making, use, sale or importation into the United States of a product or service covered by any of the Patents and/or Patent Applications, a gross revenue minus the following documented expenses: refunds, allowance or credits for recalls (other than recalls arising out of Purchaser negligence, misconduct or fraud), rejected or returned products; excise, use, value added, and sales tax (other than income taxes); tariffs, import/export duties, and customs duties; normal and customary quantity, trade, and cash discounts (other than cash discounts for early payment) and sales commissions; freight, shipping, and insurance charges specifically included in the billing amount; and rebates required by government rule or regulation; (2) where revenues are related to the licensing and/or the sale of any of the Patents and/or Patent Applications, the agreed upon licensing fees, sales price, and/or other payments specified in the license and/or sales agreement minus reasonable, out of pocket expenses for outside counsel legal fees that are directly related to the licensing and/or sale; (3) where revenues are related to an investment in lieu of litigation  and/or non-cash payment from the sale of any of the Patents and/or Patent Applications, the licensing of any of the Patents and/or Patent Applications, the making, use, or sale of a product or service covered by any of the Patents and/or Patent Applications within the United States, and/or the importation of a product or service covered by any of the Patents and/or Patent Applications into the United States; and/or (4) where revenues are related to patent litigation action involving the Patents and/or Patent Applications, a total damages awarded and/or total revenues related to a settlement agreement, including, but not limited to a monetary settlement and/or revenue generated via a license agreement included in the settlement, minus attorney’s fees should attorney’s fees not be awarded as part of the damages and/or considered as part of the settlement.
 

 2.         TRANSFER OF PATENTS
 

 2.1       Patent Assignment. Effective upon the Closing Date, Seller hereby sells, assigns, transfers and conveys to Purchaser all right, title and interest it has in and to the Patents and Patent Applications, including without limitation, any and all legal rights of Seller to sue for past, present and future infringement, to collect royalties under such Patents and Patent Applications, and to have Patents and Patent Applications issued in the name of Purchaser.
 

 2.2       Assignment of Causes of Action. Effective upon the Closing Date, Seller hereby sells, assigns, transfers and conveys to Purchaser all right, title and interest it has in and to all causes of action and enforcement rights it has, whether known, unknown, currently pending, filed, or otherwise, for the Patents and Patent Applications, including without limitation all its rights to pursue damages, injunctive relief and other remedies for past, current and future infringement of the Patents and Patent Applications. 
 

 3.         DELIVERY AND PAYMENT
 

 3.1       Delivery of Assignment. Seller shall execute an Assignment attached hereto as Exhibit A (“Assignment”) suitable for filing with the U.S. Patent and Trademark Office (“USPTO”) within 

 

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 ten (10) business days after the Closing Date, provided Purchaser has complied with all of the payment requirements set forth in Section 3 and Section 5. Seller shall send within forty-five (45) days after the Closing Date, via Federal Express or other reliable and trackable delivery service, to Purchaser the executed original of the Assignment along with the patent prosecution files and original documents related to the patent prosecution files that are owned or controlled by Seller or its agents or attorneys regarding the Patents and Patent Applications, including, without limitation, any Letters Patents, assignments for the Patents and Patent Applications, documents and materials evidencing dates of invention, prosecution history files, and an electronic copy of an updated docket current as of the Closing Date.
 

  
3.2       Continued Prosecution. Seller shall diligently continue to prosecute the Patents and Patent Applications until the Closing Date and shall pay any maintenance fees, annuities and the like for which the fee is payable (e.g., the fee payment window opens) on or prior to the Closing Date. After the Closing Date, Purchaser agrees to assume all financial responsibility for the prosecution of the Patents and Patent Applications, including any fees incurred by Seller’s patent counsel, Hunton & Williams LLP, until Purchaser notifies Seller’s patent counsel of any changes in the prosecution strategy of the Patent Applications and maintenance strategy of the Patents, including the transfer of the Patents and Patent Applications to a different law firm. Purchaser shall communicate the issuance of any patent that may issue from the prosecution of any Patent Application to the Seller within ten (10) business days of the issue date of any such patent. 
 

 3.3       Cooperation After Closing Date. Seller further covenants and agrees that after the Closing Date, it will upon request, execute and deliver to Purchaser any other reasonably requested documents and materials that Purchaser reasonably believes are necessary for Purchaser to perfect its title in the Patents and Patent Applications.
 

 3.4       Payment. In consideration for the assignment of such rights, title and interest in the Patents and Patent Applications and the other obligations of Seller as set forth in this Agreement, Purchaser shall pay Seller the total sum of $40 million USD in accordance with the schedule below and in compliance with the escrow arrangement described in Section 5 and any royalties as described in Section 4. 
 

 Purchaser shall make such payments in immediately available funds by wire transfer following the written instructions  provided by Seller for such payment. Remittance detail for wire transfers must also be sent by email to Randy S. Selman at [REDACTED]. Purchaser may not sell, assign, nor encumber the Patents and Patent Applications (or any subset thereof) until Seller has received from Purchaser, pursuant to this Section 3.4 and the Escrow Agreement described in Section 5 hereto, the total sum of $40 million USD . For avoidance of doubt, Purchaser may enter into license agreements regarding any rights it may have regarding the Patents and Patent Applications only after the Seller’s receipt from Purchaser of the total sum of $40 million USD.
 

 3.5       Purchase Payment Schedule. The $40 million USD payment from Buyer to Seller includes a $1 million USD non-refundable deposit and a $39 million non-refundable USD balance deposit according to the following schedule:

 
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	 Payment to Seller
	 Date of Release

	 Non-refundable $200,000.00
	 February 1, 2017

	 Non-refundable $800,000.00
	 February 24, 2017

	 Non-refundable Remaining balance of $39,000,000.00
	 March 31, 2017

 

 3.6        Balance Deposit Payment. The $39 million non-refundable USD balance deposit to be paid on March 31, 2017 will be made to an escrow account as chosen by Seller and released per the escrow arrangement described in Section 5.
 

 4.         Royalties and Payments
 

 4.1       Royalties. Purchaser agrees to pay Seller the royalties specified in the Royalties Schedule described in Section 4.6 (“Royalties”). All payments will be in U.S. dollars via wire transfer of immediately available funds to an account designated by Seller within thirty (30) days of the end of each calendar quarter in which the Royalties are accrued (i.e., March 31, June 30, September 30, and December 31). 
 

 4.2        Royalty Statement. Purchaser agrees to provide Seller with a written statement each calendar quarter with each Royalty payment setting forth the Revenue or other form of payment received based on the direct and/or indirect use of the Patents and/or Patent Applications for the previous calendar quarter, including but not limited to, Revenue, revenue that may be received in the form of investment in lieu of litigation  and/or non-cash payment from the sale of any of the Patents and/or Patent Applications, the licensing of any of the Patents and/or Patent Applications, the making, use, or sale of a product or service covered by any of the Patents and/or Patent Applications within the United States, and/or the importation of a product or service covered by any of the Patents and/or Patent Applications into the United States. Other forms of payment may include, but is not limited to, non-cash forms of payment, such as stocks, bonds, property, and/or other dividends. Investments in lieu of litigation include funds that are invested in self owned or third party investments that benefit the Purchaser as a result of settlement on the patents purchased herein. Purchaser agrees that this written statement will include reasonable detail regarding the direct and/or indirect use of the Patents and/or Patent Applications to enable verification of the Royalty amount, including but not limited to the parties involved in any sale and or license, a copy of any agreement and/or license, an itemized receipt of any transaction including the price, quantity and description of all services and products covered by the Patents and/or Patent Applications that is made, used, sold, or imported as described above, and an identification of all expenses and corresponding amounts deducted in calculating the Revenue as defined in Section 1.6.
 

 4.3        Records. Purchaser agrees to keep true and accurate records containing all data necessary for the proper computation of the Royalties associated with the Royalties Schedule described in Section 4.6. Such records shall be available for inspection by Seller and/or Seller’s designated accountant at least once a calendar year, by Seller providing at least fourteen (14) days prior written notice to Purchaser, and shall remain available for a period of at least three (3) years after the calendar year in which the Royalties accrued. Any adjustments to the Royalty payments specified in the Royalties Schedule described in Section 4.6 to compensate for any errors or omissions relating to the amounts payable under the Royalties Schedule shall be made by 
 

 

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 Purchaser within thirty (30) days of notification of the adjustment. The costs of any such inspection, including, but not limited to, any costs incurred by Seller via Seller’s accountant(s) and/or attorney(s), shall be borne by the Purchaser in the event that errors or omissions are found and, in such case, adjustments shall not prejudice Seller’s rights to seek any appropriate remedies, including the right to terminate this Agreement in accordance with Section 6.
 

 4.4       Confidential Information. Information obtained from Purchaser regarding any Royalties shall be held in strict confidence by Seller and is not to be used for any other purpose except to verify the accuracy of the Royalties and fees paid to Seller according to the Royalties Schedule described in Section 4.6. In case of dispute relating to the amount of the Royalties owed or paid and of further litigation relating thereto, or in the case of a disclosure required by law or regulation, Seller shall be free to make use of the information collected regarding any royalties. Seller shall also be permitted to disclose such Royalty information to its Affiliates, accountants, legal advisors, agents, investors, and contractors; provided that such parties are bound by comparable confidentiality restrictions. 
 

 4.5       Late Payment. Any amounts payable to Seller that remain unpaid after the due date per Section 4.1 shall be subject to a late payment charge equal to 1.5 times the then current LIBOR rate for payment default, from the due date until such amount is paid.
 

 4.6       Royalties Schedule. Royalties may be calculated based on the Revenue and other forms of payment received based on the direct and/or indirect use of the Patents and/or Patent Applications as described herein. Other forms of payment may include non-cash forms of payment, such as stocks, bonds, property, and/or other dividends. 
 As used below “Revenues Received By Purchaser” is a running total of the Revenue and other forms of payment collected by Purchaser. Regardless of the form of payment received by Purchaser, Royalties shall be provided to Seller in in U.S. dollars via wire transfer according to the procedures of Section 4.1. Non-cash payments shall be valued by a third-party selected by Seller. Should any dispute arise regarding the value of a non-cash payment, such dispute shall be settled according to Section 9.1.
 

 Royalties shall be calculated according to the following:
 

 	 	
	 Revenues and Other Payments Received By Purchaser
	 Percentage of Revenue to Seller

	 $40,000,000.00 USD
	 0%

	 >$40,000,000.00 USD and <$200,000,000.00
	 25%

	 >$200,000,000.00 USD
	 0%

 

 

 5.         ESCROW
 

 5.1       Escrow Agent. On March 31, 2017, Purchaser agrees to deposit by wire transfer with an escrow agent selected by Seller and reasonably acceptable to Purchaser (the “Escrow Agent”) the $39 million USD payment due pursuant to Sections 3.5 and 3.6 (the “Escrow Package”). Before the Closing Date, Purchaser and Seller agree to execute an escrow agreement with the Escrow Agent that contains terms substantially in accordance with this Section 5 (the “Escrow Agreement”).
 

 

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 5.2       Escrow Release. In order for the Escrow Package to be delivered by the Escrow Agent to Seller (“Escrow Release”), the Seller must provide to the Escrow Agent with a copy of the executed Assignment described in Section 3.1, an Office Filing Receipt (OFR) of the Assignment with the U.S. Patent and Trademark Office, and proof Seller has delivered notification of the filing to Purchaser. Proof of Purchaser notification may include United Parcel Service (UPS) confirmation of receipt or a delivery and/or read receipt e-mail indicating confirmation of receipt from Purchaser e-mail account. Following the Escrow Agent’s receipt of the aforementioned items, the Escrow Agent shall, as soon as practical, pay the Escrow Package to the Seller in accordance with the instructions set forth in the Escrow Agreement.

 5.3       Charges and Fees. Purchaser shall pay all fees and expenses of the Escrow Agent.
 

 6.         TERMINATION FOR FAILURE TO PAY
 

 6.1       In the event that Seller does not receive all payments under Sections 3, 4, and 5 within the timeframes set herein, Purchaser will, at its own expense, return all documents and materials provided by Seller within five (5) business days from the date of notice of termination and assign all of the Patents and Patent Applications back to Seller within seven (7) days of Seller’s written notice.  However, if purchaser fails to pay the Balance Deposit Payment by March 31, 2017, Seller agrees to grant Purchaser a 60 day extension but no later than May 31, 2017 to meet the purposes of obtaining and closing bank financing in connection with the transaction. Purchaser and Seller will agree to modify the payment schedule in an Updated Patent Purchase Agreement. The cure period identified in Section 6.2 shall not apply to this extension.  Upon any termination, extension and rescission, all payments or other consideration provided by Purchaser to Seller shall be non- refundable.
 

 6.2       Either Purchaser or Seller may terminate this Agreement only in the event that the other party materially breaches any provision of this Agreement and such breach has not been remedied within 30 days of written notice.
 

 6.3       In the event of a dispute between the Parties as to the termination and/or validity of this Agreement, Royalties shall accrue according to Section 4 herein. Upon notification by Seller to Purchaser regarding such a dispute, Seller shall place all Royalties accrued per Section 4 in an interest-bearing escrow account as chosen by Seller.
 

 7.         LICENSE BACK TO SELLER
 

 As of the Closing Date, Purchaser hereby grants to Seller and its current and future Subsidiaries, under the Patents and any patent issuing from the Patent Applications, and for the lives thereof, a worldwide, irrevocable, fully paid-up, royalty-free, perpetual, non-exclusive past release and future license to make, have made, use, purchase, provide, sell, offer for sale, lease, import, export, host, and otherwise distribute any past, present or future technology, software, products, equipment or services of Seller and such Subsidiaries (including without limitation any past, present or future combinations of the foregoing, collectively “Seller’s Covered Technology”), and to practice any method or process. This license extends to and includes third parties to which Seller or such Subsidiaries provide the Seller’s Covered Technology (including, 
 

 

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 without limitation, any customers, suppliers, licensees, distributors, and end-users of Seller or such Subsidiaries) in connection with their authorized manufacture, having manufactured (including software replication under license), purchase, provision, use, sale, offer for sale, lease, distribution, hosting, exportation, or importation of any of Seller’s Covered Technology. Without limiting the foregoing, the license granted hereunder includes Seller’s and such Subsidiaries’ right to supply Seller’s Covered Technology as components for use in their intended manner in combination with other products and services so long as for any given Patent or patent issuing from the Patent Applications such Seller’s Covered Technology constitutes a material part of the inventions patented under such Patent or patent issuing from the Patent Applications; provided, however, that no license, covenant or other patent rights are being provided to any third party for unlicensed third party components per se. For the life of the Patents and any patent issuing from the Patent Applications, Purchaser (on behalf of itself and any assignees) also covenants not to rely on any of Seller’s Covered Technology (in whole or in part) to meet any element of any infringement claim of the Patents or any patent issuing from the Patent Applications against Seller, its Subsidiaries or any third party. For the avoidance of doubt, the foregoing does not grant Seller any rights to sublicense the Patents or any patent issuing from the Patent Applications apart from Seller’s Covered Technology 
 

  
8.         REPRESENTATIONS, WARRANTIES AND INDEMNITIES
 

 8.1       Seller hereby represents and warrants to Purchaser (but only to the best of Seller’s knowledge with respect to the Patents and Patent Applications) that:
 

 (a)     Authority. Seller has the right and authority to enter into this Agreement and to carry out its obligations hereunder and requires no third party consent, approval, and/or other authorization to enter into this Agreement and to carry out its obligations hereunder, including, without limitation, the assignment of the Patents and Patent Applications to Purchaser.
 

 (b)     Title and Contest. Seller has good and marketable title to the Patents and Patent Applications, including without limitation all rights, title, and interest in the Patents and Patent Applications and the right to sue for past, present and future infringement thereof. Seller has obtained and properly recorded previously executed assignments for the Patents and Patent Applications as necessary to fully perfect Seller’s rights and title therein in accordance with governing law and regulations in each respective jurisdiction. The Patents and Patent Applications are free and clear of all liens, mortgages, security interests or other encumbrances (not including existing licenses) and restrictions on transfer. There are no actions, suits, investigations, communications, correspondence, claims or proceedings threatened, pending or in progress relating in any way to the Patents and Patent Applications. 
 

 (c)     Restrictions on Rights - Standards. Seller has not made any commitments to any standards organization regarding licensing or not asserting the Patents, and is not otherwise obligated to license or refrain from asserting the Patents in that regard.
 

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 (d)     Fees. All maintenance fees, annuities, and the like due on the Patents have been timely paid.
 

  
(e)     Validity and Enforceability. The Patents have never been found invalid or unenforceable for any reason in any administrative, arbitration, or judicial proceeding.
 

 8.2       Purchaser to the best of its knowledge hereby represents and warrants to Seller that:
 

 (a)     Purchaser has the right and authority to enter into this Agreement and to carry out its obligations hereunder, including, without limitation, making the payments under Section 3, Section 4, and Section 5.
 

 (b)     Purchaser understands and agrees that it has no authority or ability to grant any rights, licenses or covenants under the Patents or Patent Applications to anyone prior to the Closing Date and no rights, licenses or covenants will be granted (automatically or otherwise) to anyone, including licensees or investors of Purchaser or its Affiliates, prior to the Closing Date.
 

 

 9.         MISCELLANEOUS
 

 9.1       Applicable Law and Controlling Agreement. The validity, construction, and performance of this Agreement shall be governed by and construed first in accordance with the federal laws of the United States to the extent federal subject matter jurisdiction exists, and second in accordance with the laws of the State of New York, exclusive of its choice of law rules. With respect to all civil actions or other legal or equitable proceedings directly arising between the Parties or any of their Affiliates under this Agreement, the Parties consent to exclusive jurisdiction and venue in the United States District Court for the Southern District of New York (the “Forum”) unless no federal jurisdiction exists, in which case the Parties consent to exclusive jurisdiction and venue in the Supreme Court of New York located in New York County of New York (the “Alternate Forum”). All Parties irrevocably consent to personal jurisdiction and waives the defense of forum non conveniens in the Forum, or Alternate Forum, if applicable, with respect to itself and its Affiliates. Process may be served on all Parties in the manner authorized by applicable law or court rule. Should this Agreement, or any portion thereof, be translated, this Agreement as executed in English shall govern. 
 

 9.2      LIMITATION ON CONSEQUENTIAL DAMAGES. EXCEPT IN THE CASE OF FRAUD, NO PARTY SHALL BE LIABLE TO THE OTHER FOR ANY SPECIAL, CONSEQUENTIAL OR INCIDENTAL DAMAGES, HOWEVER CAUSED, KNOWN OR UNKNOWN, ANTICIPATED OR UNANTICIPATED, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGE. THE PARTIES ACKNOWLEDGE THAT THESE LIMITATIONS ON POTENTIAL DAMAGES WERE AN ESSENTIAL ELEMENT IN SETTING CONSIDERATION UNDER THIS AGREEMENT.
 

 9.3       LIMITATION OF LIABILITY. EXCEPT IN THE CASE OF FRAUD, WITHOUT WAIVING ANY OTHER RIGHTS OF THE PARTIES, INCLUDING ANY RIGHT TO SEEK 
 

 

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 SPECIFIC PERFORMANCE OR SEEK OTHER EQUITABLE RELIEF, NO PARTY’S TOTAL LIABILITY (INCLUDING PAYMENT OBLIGATIONS) UNDER THIS AGREEMENT SHALL EXCEED THE PAYMENT AMOUNTS REQUIRED PURSUANT TO SECTION 3.4. THE PARTIES ACKNOWLEDGE THAT THESE LIMITATIONS ON POTENTIAL LIABILITIES WERE AN ESSENTIAL ELEMENT IN SETTING CONSIDERATION UNDER THIS AGREEMENT.
 

 9.4       DISCLAIMER OF REPRESENTATIONS AND WARRANTIES. THE PARTIES TO THIS AGREEMENT DO NOT MAKE ANY REPRESENTATION OR WARRANTY EXCEPT FOR THEIR RESPECTIVE REPRESENTATIONS AND WARRANTIES SET FORTH IN SECTION 8, AND EACH PARTY DISCLAIMS ALL IMPLIED WARRANTIES, INCLUDING, WITHOUT LIMITATION, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE EXCEPT AS EXPRESSLY SET FORTH IN SECTION 8, THE PARTIES DO NOT GIVE THE OTHER PARTIES ANY ASSURANCES (A) REGARDING THE PATENTABILITY OF ANY CLAIMED INVENTION IN, OR THE VALIDITY OF, ANY PATENT OR PATENT APPLICATION OR (B) THAT MANUFACTURE, USE, SALE, OFFERING FOR SALE, IMPORTATION, EXPORTATION OR OTHER DISTRIBUTION OF ANY PRODUCT OR METHOD DISCLOSED OR CLAIMED IN ANY PATENT OR PATENT APPLICATION WILL NOT CONSTITUTE AN INFRINGEMENT OF THE INTELLECTUAL PROPERTY RIGHTS OF OTHER PERSONS. EXCEPT AS SPECIFICALLY PROVIDED IN SECTION 8 HEREOF, THE PATENTS AND PATENT APPLICATIONS ARE SOLD “AS IS” WITHOUT ANY FURTHER REPRESENTATION OR WARRANTY.
 

 9.5       Compliance with Laws. Purchaser represents and warrants that it has complied with all applicable laws, rules and regulations within the applicable countries associated with this Agreement. Purchaser agrees to notify Seller immediately of any regulatory action of which Purchaser has knowledge that is taken in relation to it by any federal, national, state, provincial, regional, county or municipal authority within any country or special administrative region that relates to or affects the manufacture, packaging, labeling, storage, advertising, marketing, sale, licensing, or distribution of products or services related to the Patents and/or Patent Applications. Notwithstanding anything contained in this Agreement to the contrary, the obligations of the Parties shall be subject to all laws, present and future, of any government having jurisdiction over the Parties and this transaction, and to orders, regulations, directions or requests of any such government.
 

 9.6      SALE. PURCHASER ACKNOWLEDGES THAT IT HAS HAD SUFFICIENT OPPORTUNITY TO PERFORM, AND HAS PERFORMED, APPROPRIATE DUE DILIGENCE REGARDING THE PATENTS AND PATENT APPLICATIONS TO THE SATISFACTION OF PURCHASER, AND ACCORDINGLY, ALL SALES ARE FINAL AFTER EXECUTION OF THIS AGREEMENT, PROVIDED THAT THE FOREGOING SHALL NOT LIMIT ANY LIABILITY RESULTING FROM A BREACH OF THIS AGREEMENT.
 

 9.7       Confidentiality of Terms. The mere existence of this Agreement (including, without limitation, the title of this Agreement, the identification of the Parties, and that the Patents and Patent Applications were assigned hereunder by Seller to Purchaser) is not confidential. Also, the 
 

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 Parties may disclose and file Exhibit A with the United States Patent and Trademark Office. However, , all other written documentation that is confidential in nature exchanged between the parties in connection with this Agreement, including, but not limited to, the specific terms of this Agreement (including, without limitation, the fees payable to Seller under this Agreement) are confidential and shall not be disclosed except: (a) as may be required by applicable law; (b) as may be required by judicial or governmental order (provided that the disclosing Party gives the other Party reasonable notice to enable it to seek a protective order, or obtains written assurance that the Agreement will receive the highest level of applicable protection); (c) by written consent of the other Party; or (d) to any third party proposing to enter into a business transaction with a Party, but only to the extent reasonably necessary for carrying out the proposed transaction and only under terms of a written confidentiality agreement that limits the disclosure of this Agreement to personnel necessary to carry out the proposed transaction. In the event of receipt by either Party of any pleading, petition, subpoena and/or other legal process, which may require disclosure of any confidential information hereunder, the receiving party shall provide notice to the other party within three (3) days of receipt of same in order to allow the other party to contest, quash, and/or otherwise take appropriate legal action to prevent disclosure of any Confidential Information 
 

  
9.8       Entire Agreement. The terms and conditions of this Agreement, including its exhibit, constitutes the entire agreement between the Parties with respect to the subject matter hereof, and merges and supersedes all prior and contemporaneous oral agreements, understandings, negotiations and discussions. None of the Parties shall be bound by any conditions, definitions, warranties, understandings, or representations with respect to the subject matter hereof other than as expressly provided herein. The section headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. No amendments or modifications shall be effective unless in writing signed by authorized representatives of all of the Parties. These terms and conditions will prevail notwithstanding any different, conflicting or additional terms and conditions which may appear on any purchase order, acknowledgment or other writing not expressly incorporated into this Agreement. This Agreement may be executed in two (2) or more counterparts, all of which, taken together, shall be regarded as one and the same instrument. This Agreement may be executed in electronic form with pdf copies of signed documents exchanged by email.
 

 9.9       Notices: All notices required or permitted to be given hereunder shall be in writing, shall make reference to this Agreement, and shall be delivered by hand, or dispatched by prepaid air courier or by registered or certified airmail, postage prepaid, addressed as follows:
 

 If to Purchaser 
 If to Seller
 

 
 Mr. Eriya Unten,
 Onstream Media Corporation
 

 [REDACTED]
 1291 SW 29th Avenue
 

 Pompano Beach, FL 33069
 

 Attn: Randy S. Selman
 

 Such notices shall be deemed served when received by addressee or, if delivery is not accomplished by reason of some fault of the addressee, when tendered for delivery. Either Party 
 

 

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 may give written notice of a change of address and, after notice of such change has been received, any notice or request shall thereafter be given to such Party at such changed address.
 

 9.10     Relationship of Parties. The Parties hereto are independent contractors. None of the Parties have any express or implied right or authority to assume or create any obligations on behalf of the others or to bind the other to any contract, agreement or undertaking with any third party. Notwithstanding the foregoing, the Parties hereby agree that: (1) Greg Ellis, Kunio Toma, Todd Brockman, and Auction Video, Inc. (collectively the “Inventors”) are intended third-party beneficiaries under this Agreement; and (2) a copy of all notices hereunder shall be delivered by the Seller to the Inventors via overnight mail to the following address, unless the Inventors subsequently provide notice of any change of address, with a copy to: Law Office of Robert Steckman, P.C., [REDACTED]. Nothing in this Agreement shall be construed to create a partnership, joint venture, employment or agency relationship between Seller and Purchaser.
 

 9.11     Severability. The terms and conditions stated herein are declared to be severable. If any paragraph, provision, or clause in this Agreement shall be found or be held to be invalid or unenforceable in any jurisdiction in which this Agreement is being performed, the remainder of this Agreement shall be valid and enforceable and the Parties shall use good faith to negotiate a substitute, valid and enforceable provision which most nearly effects the Parties’ intent in entering into this Agreement.
 

  
9.12     Waiver. Failure by any Party to enforce any term of this Agreement shall not be deemed a waiver of future enforcement of that or any other term in this Agreement.
 

 9.13     Assignment of Agreement. Purchaser shall not be permitted to assign this Agreement without prior written consent of Seller, which consent shall not be unreasonably withheld.  Purchaser agrees that it shall not be unreasonable to require demonstration of sufficient creditworthiness associated with any assignment of this Agreement. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon any successors, assigns and other legal representatives of the Parties.

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In witness whereof, the Parties have executed this Patent Purchase Agreement as of the
 Effective Date:
 

 

 

 

 

 

 

 
 	  	Onstream Media Corporation                     	          	Mr. Eriya Unten                                       
	 	 	 	
	 	/s/ Randy S. Selman	 	/s/ Eriya Unten
	 	Signature	 	Signature
	 	RANDY SELMAN	 	ERIYA UNTEN
	 	Printed Name	 	Printed Name
	 	CEO	 	                                                                
	 	Title	 	Title
	 	February 28, 2017	 	February 28, 2017
	 	Date	 	Date

 

  
  
 

 

 

  
  
  
 
  
  
 

 

 

 

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 Exhibit A
 

 ASSIGNMENT
 

 For good and valuable consideration, the receipt of which is hereby acknowledged, Onstream Media Corporation having its primary place of business at 1291 SW 29th Avenue, Pompano Beach, FL 33069 ("Assignor"), does hereby sell, assign, transfer and convey unto Mr. Eriya Unten having an address of [REDACTED] Tokyo, Japan ("Assignee"), all of Assignor's entire right, title and interest in and to (a) all patents and patent applications listed below; and (b) all reissues, reexaminations, continuations, continuations-in-part, divisionals and extensions (collectively “related cases”) of such patents and patent applications (collectively "Patent Rights"):
 

 	 	 	 	 	 	
	 

 Patent No.
	 

 Serial No.
	 

 Country
	 

 Filing
 Date
	 

 Issue Date
	 

 Title

	 

 9,161,068
	 

 10/808,894
	 

 US
	 

 03/24/2004
	 

 10/13/2015
	 

 REMOTELY ACCESSED VIRTUAL RECORDING ROOM 

	 

 9,467,728
	 

 12/110,691
	 

 US
	 

 04/28/2008
	 

 10/11/2016
	 

 REMOTELY ACCESSED VIRTUAL RECORDING ROOM

	 

 

	 

 14/843,457
	 

 US
	 

 09/02/2015
	 

 

	 REMOTELY ACCESSED VIRTUAL RECORDING ROOM

	 

 

	 

 15/255,416
	 

 US
	 

 09/02/2016
	 

 

	 REMOTELY ACCESSED VIRTUAL RECORDING ROOM

 

 

 

 

 

 
 

 In addition, Assignor agrees to and hereby does sell, assign, transfer and convey unto Assignee all rights (i) in and to causes of action and enforcement rights for the Patent Rights including all rights to pursue damages, injunctive relief and other remedies for past, present and future infringement of the Patent Rights, (ii) the right to apply (or continue prosecution) in any and all countries of the world for patents or other equivalent governmental grants for the Patent Rights, including without limitation under the Paris Convention for the Protection of Industrial Property, the International Patent Cooperation Treaty, and (iii) the rights, if any, to revive prosecution of any abandoned Patent Rights.
 

 Assignor also hereby authorizes the respective patent office or governmental agency in each jurisdiction to issue any and all patents or certificates of invention or equivalent which may be granted upon any of the Patent Rights in the name of Assignee, as the assignee to the entire interest therein.
 

 The terms and conditions of this Assignment shall inure to the benefit of and be binding upon Assignee, its successors, assigns and other legal representatives, and shall inure to the benefit of and be binding upon Assignor, its successor, assigns and other legal representatives.
 

 IN WITNESS WHEREOF this Assignment of Patent Rights is executed at
 	                                                                                                                                                                                                                          

 
 	on	 	                                                                                           	.	 	ASSIGNOR

 	By:	    	/s/	                                                                        	 	 	Name:	                                                                                                                    

  

 	Title:	 	                                                                                           

  

 
    (Signature MUST be notarized)Exhibit 10.2

 PRIVILEGED AND CONFIDENTIAL
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 Exhibit 10.2
 REVENUE DISTRIBUTION AGREEMENT
 

 This Revenue Distribution Agreement ("Agreement") is made and entered into as of February 24, 2017 (the “Signing Date”) by and between GREG ELLIS, KUNIO TOMA, and TODD BROCKMAN, collectively “GKT” and ONSTREAM MEDIA CORPORATION “COMPANY”. COMPANY and GKT may be referred to herein individually as a “Party” and collectively as the “Parties.”
 

 WHEREAS the COMPANY has entered into a Confidential Patent Purchase Agreement (the “Patent Purchase Agreement”) with Mr. Eriya Unten dated February __, 2017 for the purchase of the Patents and Patent Applications identified in the Patent Purchase Agreement (the “Patents and Patent Applications”) from COMPANY; 
 

 WHEREAS the COMPANY and its subsidiary AV ACQUISITION, INC. entered into an Intellectual Property Assignment Agreement (“Assignment”) with AUCTION VIDEO INC. and GKT, as the shareholders of AUCTION VIDEO, INC,. dated February 28, 2007, by which GKT and AUCTION VIDEO, INC. assigned all right, title, and interest in and to the Patents to AV ACQUISITION, INC.; 
 

 WHEREAS AV ACQUISITION, INC. assigned all of its right, title and interest in the Patents to COMPANY in an Assignment (“Assignment II”) executed on March 12, 2008; and
 

 NOW, THEREFORE, in consideration of the promises, mutual covenants and
 agreements herein contained, the Parties and AUCTION VIDEO, INC. hereto covenant and agree as follows:
 

 1.          Definitions.
 

 1.1.         “Assigned Patent Rights” shall mean the  Patents and Patent Applications as described in the Assignment (ii) any and all patent rights which arise or results from said Patents and Patent Applications; (iii) any and all grants, licenses, extensions and/or other governmental actions with respect to the Patents that provide exclusive rights to the patent holder beyond the original patent expiration date; and (iv) any and all substitutions, confirmations, registrations, revalidations, re-examinations, reissues, continuations, or divisions of or to any of the foregoing Patents.
 

 1.2.         “Expenses” shall mean all reasonable and customary out-of-pocket expenses and professional fees, including legal fees, patent agent fees, Escrow Agent (as defined below) fees and fees paid to third party experts, incurred by COMPANY and/or GKT after February 28, 2007 in connection with: (i) the filing, prosecution, maintenance or enforcement of any patent application or patent included in the Assignment; (ii) the preparation, negotiation, execution and/or enforcement of any agreement relating to the sale, lease, license or assignment of rights under the Assignment and/or Assigned Patent Rights, including costs related to the valuation of the Assigned Patent Rights and the evaluation of potential alternative dispositions of the Assigned Patent Rights;  
 
 
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 (iii) the enforcement of rights in, to or under the Assigned Patent Rights, including rights under the Patent Purchase Agreement; or (iv) efforts to increase the variable portion of Receipts called for under the Patent Purchase Agreement, including the evaluation of the feasibility of such efforts. Invoices and proof of payment shall be required for all claimed expenses. Nothing herein shall entitle any Party to claim personal expenses of any nature, including, but not limited to travel, meals and/or entertainment. Furthermore, it is understood that any taxes, income, or otherwise, incurred by the Parties with respect to proceeds under this Agreement are not Expenses but are the responsibility of the Party to whom such tax is assessable.  All Expenses must be reviewed and agreed upon in good faith by all Parties before any Expenses may be refunded to any Party under this Agreement. Any GKT Expenses incurred after the Signing Date are subject to previous written approval by of COMPANY, whose consent shall not be unreasonable withheld. 
 

 1.3.         “Receipts” shall mean all consideration or compensation of whatever nature (including cash, Equity Securities, and any other non-monetary consideration) actually received by or on behalf of COMPANY from the commercialization of the Assigned Patent Rights (including without limitation through the sale, lease, grant of licenses or other rights under or with respect to, or the assignment of rights in or to, the Assigned Patent Rights, in whole or in part, or with respect to the grant of an option with respect to any of the foregoing) or from enforcing rights in and to the Assigned Patent Rights; provided that in the case of transactions not at arm’s length, Receipts shall be calculated based on the fair market value of such consideration or transaction, assuming an arm’s length transaction. 
 

 2.          Revenue Sharing
 

 2.1           Receipts received by COMPANY, in connection with the licensing, sale and/or other use of the Patents by COMPANY and/or by any third-party licensee, from the Patent Purchase Agreement, shall be allocated among the Parties as follows:
 

 2.1.1        The February 1, 2017 Payment of $200,000 USD has already been received and paid out via COMPANY account(s) as follows:
 

 1.   For the purpose of covering Expenses, $15,000 was paid to GKT via GPS Cash LLC(a company owned by Greg Ellis); and
 2.   For the purpose of covering Expenses, $185,000 was paid to COMPANY
 

 2.1.2        The February 24, 2017 Payment of $800,000 USD shall be paid to COMPANY and then paid out via COMPANY account(s) as follows:
 

 1.   For the purpose of covering all remaining Expenses incurred by both parties on or prior to February 15, 2017, $15,000 US shall be paid to GPS Cash LLC and $27,184 USD shall be paid to COMPANY
 2.   Fifty Percent (50%) of the remaining $757,816 shall be paid to COMPANY; and
 3.   Fifty Percent (50%) of the remaining $757,816 shall be paid to GKT as follows: 
 a.      Thirty-Three and one-third percent (33.33%) shall be paid to Greg Ellis
 b.      Thirty-Three and one-third percent (33.33%) shall be paid to Kunio Toma
 c.      Thirty-Three and one-third percent (33.33%) shall be paid to Todd Brockman
  
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 2.1.3        The March 31, 2017 Payment of $39,000,000 USD shall be paid out via an Escrow Account as follows:
  
 1.  All Expenses not deducted from the February 1, 2017 and February 24, 2017 Payments, including banking, currency exchange and/or wire fees incurred per the Escrow Agreement, shall be deducted from the March 31, 2017 Payment to calculate a Total March Payment
 2.  Fifty Percent (50%) of the Total March Payment plus COMPANY Expenses deducted in calculating the Total March Payment shall be paid to COMPANY
 3.  Fifty Percent (50%) of the Total March Payment plus GKT Expenses deducted in calculating the Total March Payment shall be paid to GKT as follows: 
 a.      Thirty-Three and one-third percent (33.33%) shall be paid to Greg Ellis
 b.      Thirty-Three and one-third percent (33.33%) shall be paid to Kunio Toma
 c.      Thirty-Three and one-third percent (33.33%) shall be paid to Todd Brockman
 

 2.1.4 
 The Royalty Payments associated with Section 4 of the Patent Purchase Agreement shall be paid out via an COMPANY account(s) as follows:
 

 1.   Fifty Percent (50%) of each Royalty Payment shall be paid to COMPANY
 2.   Fifty Percent (50%) of each Royalty Payment shall be paid to GKT as follows: 
 a.      Thirty-Three and one-third percent (33.33%) shall be paid to Greg Ellis
 b.      Thirty-Three and one-third percent (33.33%) shall be paid to Kunio Toma
 c.      Thirty-Three and one-third percent (33.33%) shall be paid to Todd Brockman

 2.2           The Parties agree that a separate escrow agreement (the “Escrow Agreement”) between the Parties hereto and _____, as escrow agent (the “Escrow Agent”) shall govern the receipt and distribution of Receipts commencing with the March 31, 2017 Payment. In the event of any conflict between the terms of this Agreement and the Escrow Agreement, the terms of this Agreement shall govern.
 

 2.3          All payments shall be made to the Parties by check or wire transfer, according to the instructions provided by the Parties to the Escrow Agent (or from GKT to COMPANY), no later than five (5) business days after COMPANY and/or Escrow Agent’s receipt of any funds in connection with the Patents. The Parties shall provide wire instructions to Escrow Agent (or from GKT to COMPANY) for each Party hereto upon receipt of any request for same. All banking, currency exchange and/or wire fees incurred will be considered an Expense hereunder.
 

 2.4           The Parties agree that the above schedule of payments is based on the current schedule of Receipts under the Patent Purchase Agreement and further agree that any difference between the above schedule of payments and actual Receipts under the Patent Purchase Agreement, whether in timing or in amount or otherwise, will be addressed by an addendum to be executed between the Parties to this Agreement that in good faith is consistent with the methodology for allocation between the Parties as outlined above in Sections 2.1.1 through 2.1.4. 
  
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 2.5           GKT understands that if COMPANY finds it necessary to agree to modification(s) of the Patent Purchase Agreement, GKT agrees that COMPANY may do so at COMPANY’S sole discretion and judgement. In the instance of a modification to the Patent Purchase Agreement, the Parties agree that the above schedule of payments outlined in Sections 2.1.1 through 2.1.4 may change and GKT agrees that (i) payments to GKT hereunder are completely subject to Receipts from the Patent Purchase Agreement, (ii) COMPANY does not guarantee that such Receipts will occur, and (iii) COMPANY is not obligated to pursue such Receipts from the Patent Purchase Agreement.
  
 2.6           Should any additional COMPANY or GKT Expenses be incurred that were not included in the March 31, 2017 Payment, these Expenses shall be deducted from the Party’s Royalty Payment following the date in which the Expenses were incurred such that COMPANY and GKT may recoup Expenses contemplated under this Agreement.
 

  2.7          Should COMPANY agree to any non-cash form of payment for a Royalty Payment, including, but not limited to stocks, bonds, and/or property, GKT agrees to accept its portion of the non-cash payment according to the division laid out in Section 2.1.4.
 

 3.          Expenses, Reporting and Reimbursement.
 

 3.1          The Parties shall present on, or before, the date of the Total March Payment, a detailed report of all claimed Expenses incurred through the date of the Total March Payment. 
 

 3.2          With respect to the Total March Payment, Escrow Agent may withhold a reserve equal to 100% of all Expenses which have not been approved by both parties shall disburse all other Receipts to the parties in accordance with the Escrow Agreement within five (5) business days. Unless COMPANY or GKT presents a bona-fide objection to the other Party’s detailed report of Expenses to the Escrow Agent within ten (10) business days of such Party’s receipt of the other Party’s expense report, then such reserves shall be released by Escrow Agent without further notice and in accordance with the terms set forth in this Agreement. In the event that COMPANY or GKT presents a bona-fide objection to the other Party’s detailed report of Expenses to the Escrow Agent within the specified time period, and the Parties are unable to resolve such objection within another five (5) business days after such objection is raised, then the Parties agree to resolve such objection in accordance with Section 9 of this Agreement, with each Party being responsible for its own related legal expenses (until such matter is resolved, at which time the legal expenses of the prevailing party will be reimbursed by the non-prevailing party) and such legal expenses are not allowable as an Expense under this Agreement. Once such objection has been resolve, such reserve shall be released by Escrow Agent in accordance with the terms set forth in this Agreement and such resolution, including the legal fee reimbursement to the prevailing party, to the extent such funds are available from those due to the non-prevailing party.
  
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 3.3          Following the Total March Payment, the Parties shall be allowed to present detailed reports of any claimed Expenses incurred after March 31, 2017. The reimbursement of such expenses to the parties shall be managed by the COMPANY and/or Escrow Agent on a basis consistent with Section 3.2 above.  
 

 3.4          The Parties agree to execute a separate agreement with the Escrow Agent setting for additional terms related to this Agreement which is hereby incorporated by reference. 
 

 4.          Indemnification.
  
4.1          The Parties hereby agree to defend, indemnify and hold harmless the other Party (each, an “Indemnified Party”) against any and all claims, demands, causes of action, damages, costs, expenses, penalties, losses and liabilities (whether under a theory of negligence, strict liability, contract or otherwise) incurred or to be incurred by an Indemnified Party (including reasonable attorney fees) arising out of, resulting from or related to a material breach under this Agreement.
  
4.2          Liability for any claim or cause of action whether based in contract, tort or otherwise which arises under or is related to this Agreement shall be limited to the out-of-pocket damages, actually incurred, which under no circumstances shall exceed the amount paid to Company under this Agreement.
  
4.3          In no event shall any Party be liable to any other Party for special or punitive , incidental or consequential damages of any kind whether or not the Party has been advised of the possibility of such damages.
  
5.          Term. Notwithstanding the disbursements detailed in Sections 2.1.1 and 2.1.2, this Agreement will become in effect upon execution of the Patent Purchase Agreement (the “Effective Date”) and will remain in effect until the earlier of: (1) all title and similar rights relating to the Patents have been sold to a third party and all Receipts thereunder have been received and disbursed as appropriate to the Parties; or (2) the Patents and all potential related rights shall expire pursuant to applicable law. 
  
6.          Confidentiality.
 6.1          “Confidential Information” shall mean any confidential technical data, trade secret, know-how or other confidential information disclosed by any Party hereunder in writing, orally, or by drawing or other form and which shall be marked by the disclosing Party as “Confidential” or ”Proprietary.” If such information is disclosed orally, or through demonstration, in order to be deemed Confidential Information, it must be specifically designated as being of a confidential nature at the time of disclosure and reduced in writing and delivered to the receiving Party within five (5) business days of such disclosure. 
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 6.2          Notwithstanding the foregoing, Confidential Information shall not include information which: (i) is known to the receiving Party at the time of disclosure or becomes known to the receiving Party without breach of this Agreement; (ii) is or become publicly known through no wrongful act of the receiving Party or any subsidiary of the receiving Party; (iii) is rightfully received from a third party without restriction on disclosure; (iv) is independently developed by the receiving Party or any of its subsidiary; (v) is furnished to any third party by the disclosing Party without restriction on its disclosure; (vi) is approved for release upon a prior written consent of the disclosing Party; (vii) is disclosed pursuant to judicial order, requirement of a governmental agency or by operation of law. 
 6.3          The receiving Party agrees that it will not disclose any Confidential Information to any third party and will not use Confidential Information of the disclosing Party for any purpose other than for the performance of the rights and obligations hereunder during the Term of this Agreement and for a period of three (3) years thereafter, without the prior written consent of the disclosing Party. The receiving Party further agrees that Confidential Information shall remain the sole property of the disclosing Party and that it will take all reasonable precautions to prevent any unauthorized disclosure of Confidential Information by its employees. No license shall be granted by the disclosing Party to the receiving party with respect to Confidential Information disclosed hereunder unless otherwise expressly provided herein. Notwithstanding the foregoing, any Party may disclose Confidential Information as required by the rules, orders, regulations, subpoenas or directives of a court, party to any litigation, government or governmental agency, after giving ten (10) business days prior notice to the other Party. 
 6.4          If a Party breaches any of its obligations with respect to confidentiality and unauthorized use of Confidential information hereunder, the non-breaching Party shall be entitled to equitable relief to protect its interest therein, including but not limited to injunctive relief, as well as money damages and attorney’s fees, notwithstanding anything to the contrary contained herein. 
  
7.          Audit.
  
7.1          COMPANY and GKT shall maintain (in its respective principal place of business) during the Term and for at least three (3) years following termination or expiration of the Term or any renewals thereof, complete and accurate records and accounts relating to this Agreement compiled in accordance with generally accepted accounting principles.
  
7.2          Either Party shall be entitled to appoint an auditor (hereinafter, “Auditor”) who during normal business hours upon reasonable written notice up to once a year may inspect all books and records of the other Party relating to this Agreement during the Term and for a period of one (1) year after termination or expiration of the Agreement. Either Party may only request one (1) audit be performed during any twelve (12) month period.
  
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7.3          Both Parties shall ensure that Auditor will hold such information in strict confidence in accordance with the provisions of Section 6 of this Agreement, except as necessary to adequately report to the Parties, if required by the Parties. 
  
7.4         Should the audit reveal incorrect figures which resulted in underpayments by of Ten Thousand ($10,000.00) Dollars or more, then the paying Party shall, within five (5) business days of the issuance of the audit, pay the underpaid Party the total sum due plus all reasonable expenses related to the audit and the paying Party also shall pay all reasonable sums due to the Auditor which relate to the audit. If the audit determines that a Party is due less than Ten Thousand ($10,000.00) Dollars from a paying Party then the paying Party shall pay all sums due to the underpaid Party within five (5) business days.
  
8.         Notices.  All notices required or permitted by this Agreement shall be in writing and may be delivered personally, or may be sent by reputable overnight mail courier to the addresses set forth above, unless the Parties subsequently provide notice  of any change of address, with a copy to: 
 If to COMPANY:
 Onstream Media Corporation
 1291 SW 29th Avenue
 Pompano Beach, FL 33069
 Attn: Randy S. Selman 
 

 If to GKT:
 Law Office of Robert Steckman, P.C.
 [REDACTED]
 

 Any notice shall be deemed to have been received one business day after receipt by the Party.
 

 9.         Governing Law and Jurisdiction.  This Agreement shall be governed by and construed in accordance with the laws of New York, without regard to the application of principles of conflicts of law.  The Parties hereby consent to personal jurisdiction in New York and agree that the New York, New York shall have sole jurisdiction over any and all matters arising from this Agreement. 
 10.       Binding Effect.  This Agreement shall be binding upon and inure to the benefit of the Parties and their respective legal representatives, successors and permitted assigns.
  
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 11.       Amendment; Waiver; Entire Agreement.  This Agreement may be amended, modified, superseded or canceled, and any of the terms may be waived, only by a written instrument executed by each Party or, in the case of waiver, by the Party waiving compliance.  The delay or failure of any Party at any time or times to require performance of any provisions hereof shall in no manner affect the rights at a later time to enforce the same.  No waiver by either Party of any condition or of the breach of any term contained in this Agreement, whether by conduct, or otherwise, in any one or more instances, shall be deemed to be, or considered as, a further or continuing waiver of any such condition or of the breach of such term or any other term of this Agreement. This Agreement is the sole agreement with respect to the subject matter hereof and except as expressly set forth herein, supersedes all other agreements and understandings between the Parties with respect to same. No modification, amendment, or waiver of any provision of this Agreement shall be effective unless in writing and signed by the Party against whom the modification, amendment, or waiver is to be asserted. 
  
 12.        Severability.  If any provision of this Agreement is or becomes invalid or is ruled invalid by any court of competent jurisdiction or is deemed unenforceable, it is the intention of the Parties that the remainder of this Agreement shall not be affected.
  
 13.       Relationship of Parties. The Parties are independent contractors and this Agreement shall not establish any relationship of partnership, joint venture, employment, franchise, or agency between them. No Party shall have the power to bind the other or incur obligations on the other’s behalf without the other’s prior written consent.
 

 14.        Assignment. No Party may assign this Agreement in whole or in part without the prior written consent of all other Parties. This Agreement will bind and inure to the benefit of the respective heirs, successors and permitted assigns of the Parties.
 

 15.        Third Party Beneficiaries. The provisions of this Agreement are for the benefit of the Parties and not for any other person. Should any third party institute proceedings, this Agreement shall not provide any such person with any remedy, claim, liability, reimbursement, cause of action, or other right.
 

 16.       Further Assurances; Recordation.  The Parties covenant and agree that they will, upon the reasonable request, execute and deliver, or cause to be executed or delivered, any and all documents and take any all actions that may be necessary or desirable to perfect the assignment, conveyance and transfer of the Patents.  The parties agree that their obligations hereunder are dependent on the final execution of the Patent Purchase Agreement contemplated herein. In the event the Patent Purchase Agreement is not executed, cancelled and/or found to be null and/or void for any reason, then this entire Agreement shall be considered null and void without further notice.
 

 17.       No Representation. Nothing herein shall constitute any representation and/or warranty made by and/or between any Party, the Escrow Agent and/or third-party beneficiary under this Agreement. 
 

 18.       Counterparts. This Agreement may be executed in any number of counterparts, electronic copies of which, taken together, shall constitute an original for all intents and purposes. 
 

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 19.       Changes to Prior Agreement. The Parties and AUCTION VIDEO, INC. agree to amend the Assignment as follows: 
 

 19.1.1    Section 3 of the Assignment. The Parties and AUCTION VIDEO, INC. hereby agree that the following statement is removed and canceled from Section 3 of the Assignment: “except that in the event of any patent infringement action, Assignor shall be entitled to a royalty of 50% (“the Royalty”) of any award or amount collected by the Assignee.”
 

 19.1.2.    Section 7 of the Assignment. The Parties and AUCTION VIDEO, INC. hereby agree that, as of the Closing Date of the Patent Purchase Agreement, Section 7 is removed and canceled from the Assignment.
 

 20.       Other Commissions or Fees. The Parties agree that no commissions, fees or other compensation, other than that as explicitly provided for by this Agreement, with respect to the Receipts from the Patent Purchase Agreement or the Assigned Patent Rights is due to any of the Parties to this Agreement. The parties agree to indemnify each other, pursuant to section 4, in the event of any third-party claim for any such commissions, fees or other compensation.
  
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 IN WITNESS WHEREOF, the Parties and AUCTION VIDEO, INC. have caused this Agreement to be executed by their duly authorized representatives as of the date first written above.
 

 

 	
	 ONSTREAM MEDIA CORPORATION
 

 By: /s/ Randy S. Selman
 
Name: RANDY S. SELMAN
 
Title: CEO
 

 Date: February 24, 2017

 

 /s/ Greg Ellis
 GREG ELLIS
 Date: February 24, 2017
 
/s/ Kunio Toma
 KUNIO TOMA
Date: February 24, 2017
 

 /s/ Todd Brockman
 TODD BROCKMAN
 Date: February 24, 2017
 	
	 

 AUCTION VIDEO, INC.
 

 By: /s/ Greg Ellis
 
Name: GREG ELLIS
 
Title: Principal

   Date: February 24, 2017
 

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