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STANDARD PRODUCTION, MARKETING AND LICENSE AGREEMENT FOR CHINA WORLDSPACE PC CARD AND CHINA WORLDSPACE RECEIVER
This Standard Production, Marketing and License Agreement for China WorldSpace PC Card and China WorldSpace Receiver (this Agreement) is made by and between:
WorldSpace International Network Inc., a corporation organized under the laws of the British Virgin Islands, having its principal office at Craigmuir Chambers, P.O. Box 71, Road Town, Tortola, British Virgin Islands (WORLDSPACE); and
Xian Tongshi Technology Limited, a corporation organized under the laws of the Peoples Republic of China, having its principal office at No.89 XingQing Road, Xian, Shanxi Province, P. R. China, (TONGSHI) (each, a Party and collectively, the Parties).
WHEREAS, WORLDSPACE is a digital broadcaster of audio and multimedia programs directly from satellites and the decoding of the WORLDSPACE satellite digital signals requires specially designed satellite receivers and specially designed PC cards, which function as satellite receivers when used in conjunction with antennas, both of which are referred to by WORLDSPACE using its trademark WORLDSPACE (WORLDSPACE Receivers and WORLDSPACE PC Cards) and both of which incorporate specially designed chipsets that WORLDSPACE refers to using its trademark STARMAN (STARMAN Chipsets); and
WHEREAS, TONGSHI is a TongShi and seller of PC cards and certain consumer electronics products; and
WHEREAS, WORLDSPACE has selected TONGSHI to produce, market and sell its China WORLDSPACE PC Cards and China WORLDSPACE Receivers pursuant to a license under certain intellectual property rights owned by WORLDSPACE and pursuant to a sublicense under certain intellectual property rights owned by Fraunhofer Gesellschaft zur Förderung der Angewandten Forschung e.V. (FhG) and granted to WORLDSPACE either directly or pursuant to an agreement between Thomson Consumer Electronics Sales GmbH (TCE) and WORLDSPACE; and
WHEREAS, TONGSHI is interested in producing, marketing and selling China WORLDSPACE PC Cards and China WORLDSPACE Receivers and desires to obtain, and WORLDSPACE is willing to grant, a non-exclusive license and sublicense that will allow TONGSHI to manufacture consumer grade PC cards and satellite receivers utilizing WORLDSPACEs intellectual property and to market the same under TONGSHIs brand names and WORLDSPACEs trademarks and logo.
NOW, THEREFORE, the Parties have agreed as follows:
1. DEFINITIONS
For purposes of this Agreement, the following capitalized terms will have the following meanings.
1.1 WORLDSPACE System means a satellite-based digital audio, visual imaging and/or data broadcasting system using time division multiplex (TDM) downlink and PSK modulation, comprising 3 satellites with 3 beams per satellite, 2 TDM carriers with opposite circular polarization per beam, 96 primary rate channels with 16 Kbps per carrier, equivalent to a maximum of 1728 broadcast channels, which uses ISO MPEG 1/2 Audio Layer 3 (IS 11172-3, IS 13818-3) and MPEG 2.5 Layer 3 as the source coding scheme and as specified in the WORLDSPACE Format.
1.2 WORLDSPACE Format means the TDM bitstream structure as defined in WORLDSPACE DAVB Digital Format Requirements document WST-PMO-DDS-002-000000 Edition 08 Revision B dated March 26, 1998.
1.3 China WORLDSPACE Receiver means a satellite receiver designed to contain a STARMAN Chipset and designed to receive certain broadcasts from AsiaStar in accordance with the WORLDSPACE Format and
which meets or exceeds the Technical Specifications attached as Appendix 2 and which functions in accordance with the Chinese Broadcast Format attached as Appendix 9.
1.4 International WORLDSPACE Receiver means a satellite receiver designed to contain a STARMAN Chipset and designed to receive all broadcasts from AfriStar, AsiaStar and/or AmeriStar in accordance with the WORLDSPACE Format and which meets or exceeds the Technical Specifications attached as Appendix 2.
1.5 China WORLDSPACE PC Card means a card designed to contain a STARMAN Chipset and designed for use with a personal computer, which, when used in conjunction with an antenna, functions as a China WORLDSPACE Receiver.
1.6 International WORLDSPACE PC Card means a card designed to contain a STARMAN Chipset and designed for use with a personal computer, which, when used in conjunction with an antenna, functions as an International WORLDSPACE Receiver.
1.7 STARMAN Chipset means a chipset, manufactured under license from WORLDSPACE and having the characteristics set forth in Appendix 3, that can process data according to the WORLDSPACE Format. A list of TongShis qualified and licensed to manufacture STARMAN Chipsets as of the effective date of this Agreement is set forth in Appendix 4, as periodically updated.
1.8 FhG Patent Rights means the patents and patent applications anywhere in the world, and all continuations, continuations-in-part, divisions, reissues, reexaminations, substitutions, additions and extensions thereof, and all supplementary protection certificates, relating to ISO MPEG 1/2 Audio Layer 3 and MPEG 2.5 Layer 3 technology used in the WORLDSPACE Format that FhG owns or will own during the Term. FhG Patent Rights as of the effective date of this Agreement are set forth in Appendix 5, as periodically updated.
1.9 WORLDSPACE Patent Rights means the patents and patent applications anywhere in the world, and all continuations, continuations-in-part, divisions, reissues, reexaminations, substitutions, additions and extensions thereof, and all supplementary protection certificates, relating to the WORLDSPACE System and to the International WORLDSPACE Receiver, the China WORLDSPACE Receiver, the International WORLDSPACE PC Card and the China WORLDSPACE PC Card technology that WORLDSPACE owns or will own during the Term. WORLDSPACE Patent Rights as of the effective date of this Agreement are set forth in Appendix 6, as periodically updated.
1.10 WORLDSPACE Information means all information and knowledge relating to the WORLDSPACE System, the WORLDSPACE Format, the International WORLDSPACE Receiver, the China WORLDSPACE Receiver, the International WORLDSPACE PC Card, the China WORLDSPACE PC Card, the International WORLDSPACE PC Card and the China WORLDSPACE PC Card the STARMAN Chipset, the WORLDSPACE Patent Rights and the FhG Patent Rights that is not generally known, including, and whether or not patentable, all trade secrets, know-how, data, designs, specifications, material lists, drawings, algorithms, formulas, patterns, compilations, programs, samples, devices, protocols, methods, techniques, processes, procedures and results of experimentation and testing, including the information contained in the documents set forth in Appendix 10.
1.11 Development Patent Rights means the patents and patent applications anywhere in the world, and all continuations, continuations-in-part, divisions, reissues, reexaminations, substitutions, additions and extensions thereof, and all supplementary protection certificates, relating to the design and development by TONGSHI of the China WORLDSPACE PC Card and the China WORLDSPACE Receiver under Article 2.1.1, excluding FhG Patent Rights, WORLDSPACE Patent Rights, and any patents, patent applications or similar rights possessed or obtained by TONGSHI prior to the execution of this Agreement.
1.12 Development Information means all information and knowledge relating to the design and development by TONGSHI of the China WORLDSPACE PC Card and the China WORLDSPACE Receiver under Article 2.1.1 that is not generally known, including, and whether or not patentable, all trade secrets, know-how, data, designs, specifications, material lists, drawings, algorithms, formulas, patterns, compilations, programs, samples, devices, protocols, methods, techniques, processes, procedures and results of experimentation and testing, excluding the WORLDSPACE Information and any similar information and knowledge possessed or obtained by TONGSHI prior to the execution of this Agreement.
1.13 WORLDSPACE Marks means WORLDSPACEs logo and trademarks as shown in Appendix 7.
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1.14 AfriStar means the WORLDSPACE satellite launched on October 28, 1998 that provides service to the geographic regions within the WORLDSPACE Service Area where reception of the signal from AfriStar may be achieved using an International WORLDSPACE Receiver. A contour map indicating generally the geographic reach of the AfriStar broadcast beams is attached to Appendix 1.
1.15 AsiaStar means the WORLDSPACE satellite launched on March 21, 2000 that provides service to the geographic regions within the WORLDSPACE Service Area where reception of the signal from AsiaStar may be achieved using an International WORLDSPACE Receiver. A contour map indicating generally the geographic reach of the AsiaStar broadcast beams is attached to Appendix 1.
1.16 AmeriStar means the WORLDSPACE satellite currently scheduled for launch in 2001 that will provide service to the geographic regions within the WORLDSPACE Service Area where reception of the signal from AmeriStar may be achieved using an International WORLDSPACE Receiver. A contour map indicating generally the geographic reach of the AmeriStar broadcast beams is attached to Appendix 1.
1.17 WORLDSPACE Service Area means the geographic regions where reception of the signal from AfriStar, AsiaStar and/or AmeriStar may be achieved using an International WORLDSPACE Receiver.
1.18 Affiliate means a corporation, partnership or other entity controlled by, controlling or under common ownership or control with a Party.
1.19 Term means the term of this Agreement as set forth in Article 8.1.
2. CHINA WORLDSPACE PC CARD AND CHINA WORLDSPACE RECEIVER PRODUCTION
2.1 Production of China WORLDSPACE PC Cards and China WORLDSPACE Receivers.
2.1.1 Mass Production. TONGSHI shall mass-produce China WORLDSPACE PC Cards and China WORLDSPACE Receivers in quantities sufficient to meet consumer demand. TONGSHI shall use its best efforts to produce China WORLDSPACE PC Cards and China WORLDSPACE Receivers that are of high quality and fulfill the customers needs. TONGSHI shall use its best efforts to mass-produce China WORLDSPACE Receivers at an ex factory price for the WORLDSPACE functionality not to exceed Fifty U.S. Dollars (US$50). Except as otherwise provided herein, TONGSHI shall supply all personnel, materials, facilities and other resources necessary to produce China WORLDSPACE PC Cards and China WORLDSPACE Receivers.
2.1.2 Subcontracts. TONGSHI and its Affiliates may subcontract the performance of all or part of the production of China WORLDSPACE PC Cards and China WORLDSPACE Receivers. Any failure by a subcontractor to meet its obligations shall not relieve TONGSHI of any of its obligations hereunder.
2.1.3 Access to Production. WORLDSPACE shall have reasonable access to the facilities of TONGSHI used for the production of China WORLDSPACE PC Cards and China WORLDSPACE Receivers. TONGSHI shall, at WORLDSPACEs request, deliver by confidential means to WORLDSPACE copies of designs and data generated in the course of producing China WORLDSPACE PC Cards and China WORLDSPACE Receivers. The Parties will schedule meetings from time to time to review the progress of the production.
2.2 Transfer of WORLDSPACE Information and Technical Assistance.
2.2.1 WORLDSPACE Information Transfer. Upon receipt by WORLDSPACE of the license fee paid by TONGSHI pursuant to Article 4.1.3 hereinafter, WORLDSPACE shall furnish TONGSHI, at TONGSHIs request, with such WORLDSPACE Information as is reasonably necessary for the production and marketing of China WORLDSPACE PC Cards and China WORLDSPACE Receivers by TONGSHI.
2.2.2 Technical Assistance. WORLDSPACE shall provide TONGSHI with such technical assistance as TONGSHI may reasonably request regarding the development and production of China WORLDSPACE PC Cards and China WORLDSPACE Receivers, including the dispatch of engineers and other support staff. TONGSHI shall pay WORLDSPACE for all such technical assistance and for any design
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and engineering services at standard commercial rates and shall pay WORLDSPACE for all of its out of pocket costs associated with providing such technical assistance. All technical assistance will be conducted at such times and at such locations as may be mutually convenient to WORLDSPACE and TONGSHI.
2.3 Approval of China WORLDSPACE PC Cards and China WORLDSPACE Receivers.
2.3.1 Type Approval. Prior to commencing commercial mass production of any China WORLDSPACE PC Cards and China WORLDSPACE Receivers, TONGSHI will submit to WORLDSPACE for its inspection: (i) a prototype of each PC card or receiver that TONGSHI proposes to manufacture, so that WORLDSPACE may confirm that such prototype PC card or receiver performs in accordance with the WORLDSPACE Format and the Technical Specifications; and (ii) the preliminary design specifications for such PC cards or receivers, including all circuit diagrams, blueprints (or equivalents thereof), component specifications (if WORLDSPACE requests) and overall specifications of such prototype PC card or receiver. If such prototype PC card or receiver successfully passes WORLDSPACEs test, it will be deemed an approved China WORLDSPACE PC Card or China WORLDSPACE Receiver, as the case may be, under this Agreement. After a PC card or receiver has been qualified as a China WORLDSPACE PC Card or China WORLDSPACE Receiver, as the case may be, no changes may be made to the China WORLDSPACE PC Card or China WORLDSPACE Receiver except for those which are cosmetic in nature or which do not materially affect the function or quality of the China WORLDSPACE PC Card or China WORLDSPACE Receiver unless the PC card or receiver is resubmitted to WORLDSPACE for testing and WORLDSPACE confirms that this modified PC card or receiver continues to qualify as a China WORLDSPACE PC Card or China WORLDSPACE Receiver. All testing will be performed at WORLDSPACEs then current testing rates. As of the Effective date of this Agreement, WORLDSPACEs standard rates are as set forth in Appendix 8, but WORLDSPACE reserves the right to make reasonable changes to its rates with prior notification to TONGSHI. The testing fees for the first prototype PC card and the first prototype receiver to be tested are included in the license fee paid by TONGSHI to WORLDSPACE pursuant to Article 4.1.3 hereinafter.
2.3.2 Requests for Testing. All requests for testing will be accompanied by payment in full of WORLDSPACEs testing fee, a prototype of the applicable PC card or receiver and all test data and schematics pertaining thereto. WORLDSPACE will endeavor in good faith to test, or have its authorized agent test, all prototype PC cards or receivers submitted for testing within thirty (30) days from the date WORLDSPACE or such authorized agent has received such prototype and all test data and schematics pertaining thereto. Delays in testing will not entitle TONGSHI to cancel a testing order or to claim damages, provided that WORLDSPACE immediately notifies TONGSHI of such delays and presents a plan to complete such testing as soon as possible.
3. PC CARD AND RECEIVER MARKETING
3.1 Marketing the China WORLDSPACE PC Cards and China WORLDSPACE Receivers.
3.1.1 Marketing. TONGSHI agrees to use its best efforts to market and sell China WORLDSPACE PC Cards and China WORLDSPACE Receivers only within China in quantities sufficient to meet the consumer demand for China WORLDSPACE PC Cards and China WORLDSPACE Receivers produced by TONGSHI.
3.1.2 Marketing Strategy. TONGSHI shall market, advertise and promote the China WORLDSPACE PC Cards and China WORLDSPACE Receivers and the WORLDSPACE Marks throughout China in order to effectively create consumer demand for its China WORLDSPACE PC Cards and China WORLDSPACE Receivers.
4. INTELLECTUAL PROPERTY LICENSES
4.1 WORLDSPACE Information License, FhG Patent Rights Sublicense, WORLDSPACE Patent Rights License, Development Rights and WORLDSPACE Marks License.
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4.1.1 License and Sublicense Grant. WORLDSPACE hereby grants to TONGSHI and its Affiliates a non-exclusive, non-transferable, revocable, indivisible license under the WORLDSPACE Information, the WORLDSPACE Patent Rights and the WORLDSPACE Marks and a non-exclusive, non-transferable, revocable, indivisible sublicense under the FhG Patent Rights, to produce, market and sell, and/or have produced, marketed and sold, China WORLDSPACE PC Cards and China WORLDSPACE Receivers. TONGSHI shall have no right to sublicense to any third party without WORLDSPACEs prior written approval.
4.1.2 Licensed and Sublicensed Territory. Pursuant to Article 4.1.1, TONGSHI and its Affiliates may produce, and/or have produced, China WORLDSPACE PC Cards and China WORLDSPACE Receivers anywhere in the world for sale only in China; provided that TONGSHI will not use or authorize any public use, direct or indirect, of the WORLDSPACE Marks outside the WORLDSPACE Service Area and will not knowingly sell any products covered by this Agreement to persons who intend or are likely to resell them outside the WORLDSPACE Service Area. TONGSHI shall not sell any International WORLDSPACE PC Card or any International WORLDSPACE Receiver within China at any time.
4.1.3 Testing Fee and License Fee. TONGSHI shall pay to WORLDSPACE within ten (10) business days of executing this Agreement a testing fee for China WorldSpace PC Card and China WorldSpace receiver of Twenty Thousand U.S. Dollars (U.S.$20,000.00) net of any applicable withholding taxes and bank charges. In consideration of the licenses and sublicense granted by WORLDSPACE under Article 4.1.1, TONGSHI shall pay license fee to WORLDSPACE according to the Cooperation Agreement between both Parties.
4.1.4 Development Rights. WORLDSPACE and TONGSHI will share equally in the ownership and the benefits of all Development Information and Development Patent Rights. To that end, all right, title and interest in and to such Development Information and Development Patent Rights will be obtained in the names of and on behalf of both WORLDSPACE and TONGSHI. Each Party will have the right to use Development Information and Development Patent Rights for its own benefit; however, any license of such Development Information and Development Patent Rights to third parties will be subject to the prior written approval of the other Party, which approval will not be unreasonably withheld. Any such license to a third party will be granted on the basis of reasonable compensation therefor and pursuant to other reasonable terms and conditions; provided, however, that the Parties may agree to impose restrictions or prohibitions regarding the granting of such rights to specific third parties. Any royalties, revenue or other consideration received as compensation from such third party will be shared equally by WORLDSPACE and TONGSHI. If either Party sells or otherwise disposes of products or services that use or incorporate the Development Information and Development Patent Rights, then such Party will compensate the other Party in an amount to be mutually agreed upon. The Parties will cooperate in and equally share the costs of securing, maintaining and enforcing the Development Patent Rights.
4.2 Use of the WORLDSPACE Marks.
4.2.1 Proper Use. TONGSHI will mark all China WORLDSPACE PC Cards and all China WORLDSPACE Receivers with the WORLDSPACE Marks and will use the WORLDSPACE Marks in all packaging, instruction manuals, catalogs and printed advertising concerning the China WORLDSPACE PC Cards and China WORLDSPACE Receivers. The WORLDSPACE Marks will be affixed to the China WORLDSPACE PC Cards and China WORLDSPACE Receivers, and will be used in any packaging, instruction manuals, catalogs, advertising and promotional material, and may be used in such other media as the Parties agree upon, in such a manner as to allow a person with normal vision to recognize the WORLDSPACE Marks, and as a general guideline will be at least as prominent in location and size as any other logo or mark of similarly licensed technology in similar products or similar advertising. TONGSHI will cause notice of WORLDSPACEs ownership of the WORLDSPACE Marks to be used on each China WORLDSPACE PC Card and on each China WORLDSPACE Receiver and used in any instruction manuals, catalogs, advertising and promotional material, and such other media as the Parties agree upon, and as a general guideline such use will be in such a manner and at least as frequently as TONGSHI uses said proprietary notice or equivalent with respect to any other logo or mark of similarly licensed technology in similar products or similar advertising. The following notice (or such other notice as WORLDSPACE may hereafter reasonably require) is an example of an appropriate notice:
WORLDSPACE is a trademark of WorldSpace Corporation.
4.2.2 Benefit of Use. TONGSHIs use of the WORLDSPACE Marks will inure to the benefit of WORLDSPACE and TONGSHI will not at any time acquire any rights in such WORLDSPACE Marks or any trademarks or trade dress similar thereto by virtue of any use it may make of any such WORLDSPACE Marks.
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4.2.3 Good Will. All of the good will now or to be associated with the WORLDSPACE Marks belongs exclusively to WORLDSPACE and all good will associated with the WORLDSPACE Marks pursuant to TONGSHIs use thereof will inure exclusively to WORLDSPACEs benefit.
4.2.4 Non-Use of Similar Trademarks. Neither TONGSHI nor any of its Affiliates or related companies, agents, employees or business associates shall have any right to the WORLDSPACE name (whether or not in combination with any WORLDSPACE logo) and any translations, adaptations, modifications, similar names or transliterations of the WORLDSPACE name into any language (the WORLDSPACE Name), and including without limitation any trade names using the WORLDSPACE Name, as well as any domain names, internet addresses, applications for trademarks in other classifications, etc., in any Chinese language (including minority languages), in any form of alphabet or ideographic writing system, in any jurisdiction in the world, except as may be explicitly agreed in writing by a responsible official of WORLDSPACE.
4.2.5 Quality of China WORLDSPACE PC Cards and China WORLDSPACE Receivers.
4.2.5.1 Quality Control. TONGSHI agrees that the overall quality of the China WORLDSPACE PC Cards and China WORLDSPACE Receivers is essential to TONGSHIs performance hereunder. WORLDSPACE will have the right to exercise reasonable quality control procedures and to approve the quality of the China WORLDSPACE PC Cards and China WORLDSPACE Receivers that TONGSHI markets under the WORLDSPACE Marks to ensure the protection of the WORLDSPACE Marks and the good will pertaining thereto. Such quality approvals will be based on WORLDSPACEs confirmation that the China WORLDSPACE PC Cards and China WORLDSPACE Receivers produced by TONGSHI are in conformity with the WORLDSPACE Format and Technical Specifications and with the appearance and design specifications determined under this Article.
4.2.5.2 Design Review. TONGSHI agrees prior to finalization of the overall design for each China WORLDSPACE PC Card and each China WORLDSPACE Receiver model that it shall furnish to WORLDSPACE, free of cost, for WORLDSPACEs prior written approval and comment as to quality and appearance for purposes of Article 4.2.5.1, with the following: (i) TONGSHIs testing procedures to be undertaken for the China WORLDSPACE PC Card or China WORLDSPACE Receiver and all applicable performance standards and quality review procedures to be applied and (ii) sketches, drawings, mock-ups, photographs, or equivalents thereof of the exterior of the China WORLDSPACE PC Card or China WORLDSPACE Receiver showing detail including but not limited to the placement of all WORLDSPACE Marks and other trademarks, text, notices, symbols, designs and markings.
4.2.5.3 Evaluation Sample Review. Prior to production, TONGSHI will furnish WORLDSPACE, free of cost, for its comment as to quality and appearance for purposes of Article 4.2.5.1, an evaluation sample of the final production prototype of each China WORLDSPACE PC Card and each China WORLDSPACE Receiver model and the final performance and test results with respect thereto, and no China WORLDSPACE PC Card or China WORLDSPACE Receiver will be sold by TONGSHI without WORLDSPACEs prior written approval.
4.2.5.4 Review of Materials. Prior to TONGSHIs distribution, shipment or publication, whichever is applicable, of any packaging, instruction manuals, catalogs or printed advertising that TONGSHI intends to use in connection with the China WORLDSPACE PC Cards or China WORLDSPACE Receivers or the WORLDSPACE Marks, the Parties will meet to establish mutually acceptable guidelines for proper use of the WORLDSPACE Marks on such materials. Such guidelines will include the right of WORLDSPACE to receive from TONGSHI, upon reasonable request and free of cost, samples of such materials for examination and comment as to quality and appearance.
4.2.5.5 Initial Production Samples. After drawings, plans, diagrams, sketches, components, methods of testing or assembly, specifications and samples have been approved pursuant to Articles 4.2.5.1 and 4.2.5.2 of this Agreement, TONGSHI will not depart therefrom in any material respect without WORLDSPACEs prior written consent. TONGSHI will also furnish to WORLDSPACE, free of cost, two (2) samples of each China WORLDSPACE PC Card and of each China WORLDSPACE Receiver from the initial production run.
4.2.5.6 Representative Production Samples. After TONGSHI has commenced shipment, distribution or sale of the China WORLDSPACE PC Cards and China WORLDSPACE Receivers, upon
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WORLDSPACEs written request, TONGSHI will provide annually to WORLDSPACE, free of cost, one (1) additional representative random production sample of each China WORLDSPACE PC Card and of each China WORLDSPACE Receiver then available and being offered for sale or distribution by TONGSHI, together with all packaging material and literature used in connection therewith.
4.2.5.7 No Use Upon Termination. Upon the termination or expiration of this Agreement for any reason, TONGSHI will discontinue, except as otherwise provided in Article 9 below, the use of the WORLDSPACE Marks, and will not use or register any mark or logo confusingly similar to the WORLDSPACE Marks.
5. CONFIDENTIALITY AND NONDISCLOSURE OF PROPRIETARY INFORMATION
5.1 Non-Disclosure and Non-Use. During the performance of this Agreement, one Party (the Disclosing Party) may exchange information which may be of a proprietary or confidential nature to the other Party (the Receiving Party), such as information concerning inventions, techniques, processes, devices, discoveries and improvements, or regarding administrative, marketing, financial or manufacturing activities, and in the case of WORLDSPACE, such as WORLDSPACE Information (collectively, Information). All such Information, in any form, including without limitation, oral, written graphic, demonstrative, machine recognizable or sample form, will be considered proprietary and confidential Information of the Disclosing Party, will be retained in confidence and will not be disclosed or caused or permitted to be disclosed directly or indirectly to any third party without the prior written approval of the Disclosing Party, and will not be used by the Receiving Party for any reason other than the performance of its duties under this Agreement. The Receiving Party further agrees that any material or data generated by the Receiving Party, based in whole or in part on Information disclosed by the Disclosing Party, will also be retained in confidence. TONGSHI agrees to undertake such actions before administrative agencies or courts which are or may be necessary to assure the fullest protection of the confidentiality of the Information, to enforce this Article, or to enforce any agreement relating to confidentiality between TONGSHI and any other person required by this Article. The confidentiality obligations of this Article 5 shall survive the termination of this Agreement (including any extension of this Agreement) for any reason.
5.2 Exceptions. The obligation of the Receiving Party to retain Information in confidence will not apply to:
(i) Information which is now in or hereafter enters the public domain beyond the control of the Receiving Party and without its violation of this Agreement;
(ii) Information rightfully known to the Receiving Party prior to the time of disclosure by the Disclosing Party, or independently developed by the Receiving Party personnel without access to Information disclosed by the Disclosing Party;
(iii) Information disclosed in good faith to the Receiving Party by a third party legally entitled to disclose the same; or
(iv) Information which the Receiving Party discloses under operation of law, rule or legal process;
provided, however, that the burden will be on the Receiving Party to prove the applicability of one or more of the foregoing exceptions by documentary evidence should the Disclosing Party question the applicability of such exceptions; as to exception (iv), the Receiving Party will provide the Disclosing Party with prompt written notice of any request or legal proceeding through which the Receiving Party may be required to disclose such Information under operation of law, rule or legal process.
5.3 Labeling of Information. Information in tangible form is now and will at all times be labeled by the Disclosing Party as Confidential or Proprietary. If Information is disclosed orally or by demonstration, it must be specifically designated by the Disclosing Party as confidential information at the time of such initial disclosure and contained in an itemized written listing to be sent to the Receiving Party by the Disclosing Party within thirty (30) days following such initial disclosure. If information is generally understood to be confidential in accordance with customary practices, the failure to designate such information in writing as confidential following such disclosure shall not defeat its being considered as confidential.
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5.4 Disclosure on Need to Know Basis. The Receiving Party agrees to transmit the Information, and/or material or data generated by the Receiving Party based in whole or in part on such Information, only to those directors, officers, employees, agents or other representatives who need access to the Information and/or material or data generated by the Receiving Party based in whole or in part on such Information, for the purpose of performing their duties pursuant to this Agreement, and who are informed by the Receiving Party of the confidential nature of the Information and/or material or data generated by the Receiving Party based in whole or in part on such Information, and who agree to be bound by the terms of this Agreement. The Receiving Party further agrees to be responsible for any breach of this Agreement by the Receiving Party or any director, officer, employee or other representative of the Receiving Party.
5.5 Property of Disclosing Party. The Receiving Party agrees that all Information disclosed to the Receiving Party hereunder will be and remains the property of the Disclosing Party. Any tangible form of Information including, but not limited to, documents, papers, computer diskettes and electronically transmitted Information will be destroyed by the Receiving Party or returned, together with all copies thereof, to the Disclosing Party promptly upon the Disclosing Partys request. If such tangible form of Information is destroyed, a certification of such destruction executed by a duly authorized officer of the Receiving Party will be delivered to the Disclosing Party.
5.6 Non-Competition. The Receiving Party agrees not to use the Information provided by the Disclosing Party to engage, represent in any way or be connected with, as officer, director, partner, employee, sales representative, proprietor, stockholder or otherwise of any business or activity that would compete with the business of the Disclosing Party.
5.7 Survival Upon Termination. The Receiving Partys obligations under this Agreement will survive the termination of its business relationship, if any, with the Disclosing Party regardless of the manner of such termination, and will be binding upon its successors and assigns. The obligation of the Receiving Party under this Agreement will terminate three (3) years from the date of termination of this Agreement unless such obligation is sooner terminated by written notice given by the Disclosing Party to the Receiving Party.
5.8 Remedies for Breach. The Receiving Party acknowledges that the Information provided and all documentation relating thereto are commercially valuable, and reflect the effort of skilled development experts and the investment of considerable time and money. The Receiving Party accordingly agrees to protect the confidence of the Information and prevent its unauthorized dissemination and use, using the same degree of care that the Receiving Party uses to protect its own like information. The Receiving Party agrees that money damages would not be sufficient remedy for any breach of this Agreement by the Receiving Party or any director, officer, employee, agent or other representative of the Receiving Party, and that in addition to any other rights or remedies which it may have, the Disclosing Party will be entitled to equitable relief, in personam relief or similar relief as may be available in non-common law countries, and administrative relief from the appropriate division of the State Administration for Industry of Commerce, State Intellectual Property Office or other appropriate organization, as a remedy for such breach.
5.9 Copies. Either Party will be entitled to make copies of any documents containing Information under the terms and conditions set forth in this Article 5.
5.10 Confidentiality of Agreement. Neither Party will disclose the contents of this Agreement without the prior written consent of the other Party.
6. REPRESENTATIONS AND WARRANTIES
6.1 Authority. Each Party represents and warrants that it has the necessary corporate authority, and has taken the necessary steps, to enter into and fulfill its obligations under this Agreement.
6.2 WORLDSPACE Rights. WORLDSPACE represents and warrants that it owns and will own all right, title and interest in and to WORLDSPACE Information, WORLDSPACE Patent Rights and WORLDSPACE Marks, and has a license to the FhG Patent Rights; it has the right to grant the rights granted under this Agreement; the granting of such rights does not require the consent of any third party; and there are and will be no agreements inconsistent with the provisions of this Agreement.
6.3 Nonreliance. TONGSHI will not rely solely upon technical information provided by WORLDSPACE, but will independently test, analyze and evaluate China WORLDSPACE PC Cards and China WORLDSPACE Receivers before manufacturing and marketing them.
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6.4 Limitations.
6.4.1 Except as expressly provided for herein, WORLDSPACE makes no representations, extends no warranties or indemnifications of any kind, expressed or implied, nor assumes any responsibilities whatsoever with respect to the manufacture, use, sale or other disposition by TONGSHI of products incorporating or made by the use of intellectual property licensed under this Agreement.
6.4.2 This is an agreement between merchants only and for the benefit of merchants only.
7. INDEMNIFICATION
TONGSHI will defend, indemnify and hold harmless WORLDSPACE, TCE and/or FhG from and against any and all suits, actions, claims, judgments, debts, obligations or rights of action of any nature or description arising from product liability laws with respect to China WORLDSPACE PC Cards and China WORLDSPACE Receivers produced by TONGSHI, and all reasonable costs, including attorneys fees, incurred by WORLDSPACE with respect thereto. This indemnity provision will impose no obligation upon TONGSHI to the extent that the risk indemnified against hereunder arises solely from the negligent acts or omissions of WORLDSPACE or is otherwise attributable to WORLDSPACE under product liability laws, in which event WORLDSPACE will defend, indemnify and hold harmless TONGSHI from and against any and all suits, actions, claims, judgments, debts, obligations or rights of action of any nature or description arising from product liability laws with respect to China WORLDSPACE PC Cards and China WORLDSPACE Receivers produced by TONGSHI, and all reasonable costs incurred by TONGSHI with respect thereto.
8. TERM AND TERMINATION
8.1 Term. This Agreement will be effective as of the Effective date of this Agreement and, unless terminated sooner pursuant to this Article 9, will continue in effect for an initial term of five (5) years, and will automatically be renewed for successive one-year terms unless ninety (90) days prior written notice is given by either Party to the other Party; provided, however, that in any event this Agreement will terminate earlier upon the date that the last of the AfriStar, AsiaStar or AmeriStar satellites ceases commercial operations (the Term).
8.2 Termination for Cause. If a Party substantially fails to comply with any of its obligations under this Agreement, and does not remedy the failure of performance within sixty (60) days after it has been notified thereof, the other Party may terminate this Agreement at the end of such period, without prejudice to any damages or additional remedies that may be available at law or in equity.
8.3 Bankruptcy. Should either Party become bankrupt or be subjected to bankruptcy or winding up proceedings, the other Party may terminate this Agreement immediately by notifying the other.
8.4 Revocation or Nullity Action. If TONGSHI files any action against any of the FhG Patent Rights or against any of the WORLDSPACE Patent Rights, or any action challenging the validity of the WORLDSPACE Information, or otherwise disputes the validity of any of the foregoing, including the filing of a revocation or nullity action, WORLDSPACE may terminate this Agreement.
8.5 Termination of Sublicense. The sublicense granted hereunder will expire upon termination of the Patent License Agreement between TCE and WORLDSPACE. In such case, WORLDSPACE will immediately notify TONGSHI, and WORLDSPACE will use its best efforts to negotiate a sublicense agreement for TONGSHI.
8.6 Assignment. Either Party may terminate this Agreement if the other attempts to assign it in violation of Article 10.
8.7 Force Majeure. Either Party may terminate this Agreement for Force Majeure in accordance with Article 12.7.
9. POST-TERMINATION
9.1 Cessation of Use. Following any expiration or termination of this Agreement, TONGSHI will (i)
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stop using the WORLDSPACE Marks, (ii) stop using any of the WORLDSPACE Information, and (iii) immediately provide WORLDSPACE with all documents (including copies) in TONGSHIs possession containing any WORLDSPACE Information; provided that TONGSHI may continue to exercise its rights hereunder to the extent reasonably necessary to fulfill any binding commitments existing as of the date of expiration or termination, or to otherwise liquidate TONGSHIs inventory of China WORLDSPACE PC Cards and China WORLDSPACE Receivers on hand as of the date of expiration or termination.
9.2 Accrued Liability. Following any expiration or termination of this Agreement, neither Party will have any further rights or obligations hereunder except that: (i) such expiration or termination will not relieve either Party of any liability accrued prior to such expiration or termination; and (ii) such expiration or termination will not affect the continued operation or enforcement of any provision of this Agreement which by its express terms or by reasonable implication is to survive any expiration or termination.
10. ASSIGNMENT
Neither Party will assign this Agreement without the other Partys prior consent, which will not be unreasonably withheld, except that either Party may freely assign this Agreement to any of its Affiliates.
11. SETTLEMENT OF DISPUTES
11.1 Amicable Resolution. The Parties will endeavor to resolve amicably any dispute arising out of this Agreement within thirty (30) days of receipt of notice of such dispute. If the Parties are unable to resolve such dispute within thirty (30) days, then they may refer the dispute to an independent third party who will, within a further thirty (30) days, review the dispute and recommend a resolution thereto. If the Parties cannot agree on such third party, or either Party disagrees with such third partys recommendation, then Article 11.2 will apply.
11.2 Formal Arbitration.
11.2.1 All disputes arising in connection with this Agreement not resolved pursuant to Article 11.1 will be finally settled under the Rules of Conciliation and Arbitration of the International Chamber of Commerce (ICC) by one or more arbitrators appointed in accordance with such Rules. If there is any conflict between the ICC Rules and this Agreement, the provisions of this Agreement will govern.
11.2.2 The arbitration proceedings will take place in Singapore and will be governed by the laws of New York.
11.2.3 Nothing in this Article 11 will preclude either Party from seeking equitable relief from a court for the other Partys breach of its obligations set forth in Article 5.
11.2.4 Pending a decision by the arbitrators as referred to in this Article 11, each Party will, unless the other otherwise directs, fulfill all of its obligations hereunder.
12. GENERAL PROVISIONS
12.1 Required Permits and Licenses. TONGSHI will obtain and pay for any permits and the like relating to the production, marketing and sale of China WORLDSPACE PC Cards and China WORLDSPACE Receivers; provided that WORLDSPACE will cooperate as necessary in such efforts. The Parties will comply with all applicable export compliance laws.
12.2 Notices. All communications hereunder will be given in English by letter, facsimile or E-mail directed,
in respect of WORLDSPACE to:
WorldSpace International Network Inc. 2400 N Street, N.W. Washington, D.C. 20037 United States of America
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and in respect of TONGSHI to:
Xian Tongshi Technology Limited
or such other addresses as either Party may have previously specified in the manner set forth above.
12.3 Amendment. Except as otherwise specifically provided herein, this Agreement may be modified only by the Parties duly authorized representatives in a writing stating that the modification is an Amendment to the Standard Production, Marketing and License Agreement for China PC Card and China WorldSpace Receiver.
12.4 Non-Waiver. If at any time a Party elects not to assert its rights under any provision of this Agreement, it will not be construed as a waiver of any of its rights hereunder.
12.5 Severability. Should any part of this Agreement be held unenforceable in any jurisdiction, the validity of the remaining parts will not be affected.
12.6 Entire Agreement. This Agreement embodies the Parties entire understanding related to the subject matter hereof and supersedes any prior agreements or understandings between the Parties relating hereto, except that information that has been disclosed pursuant to any confidentiality agreement that the Parties may previously have entered into will henceforth be treated as though disclosed under this Agreement.
12.7 Force Majeure.
12.7.1 Neither Party will be liable to the other for any failure of, or delay in, its performance hereunder due to causes beyond its reasonable control, including acts of God, catastrophic phenomena such as fire, flood, and earthquake.
12.7.2 For a Party to claim Force Majeure hereunder, it must notify the other Party within five (5) days of the commencement of the Force Majeure, detailing the cause of the Force Majeure, the date the Force Majeure began, and the anticipated length of the Force Majeure. If: (i) the notice provides that the Force Majeure will last for more than sixty (60) days; and (ii) the Force Majeure in fact lasts for more than sixty (60) days, the Party not claiming the Force Majeure may terminate this Agreement by written notice to the other Party.
12.8 Captions. The captions contained in this Agreement are inserted for convenience of reference only and will not in any way affect the interpretation of the provisions captioned.
12.9 Governing Language. The official languages of this Agreement are the English and Chinese languages and all notices, reports, orders, instructions, literature, records and other written materials pertaining to this Agreement will be maintained and delivered in the English and Chinese languages.
12.10 Execution. This Agreement may be executed in two signed counterparts, each of which will constitute an original.
12.11 Press Releases. Neither Party will issue a press release or make any statement to the press related to the subject matter hereof without the other Partys prior consent.
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12.12 Effective Date. The Effective Date of this Agreement shall be the date on which all necessary approvals have been obtained.
THE PARTIES, INTENDING TO BE LEGALLY BOUND, have executed this Agreement as of the date written below.
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Appendix 1
WorldSpace Coverage Area
[Map showing footprint of (i) each of the three beams of AfriStar, which beams are shown covering all of Africa and parts of Europe and Asia; (ii) each of the three beams of AmeriStar, which beams are shown covering all of South America and part of Central America; and (iii) each of the three beams of AsiaStar, which beams are shown covering all of Asia and small parts of Africa and Australia]
WorldSpace AfriStar Coverage Area [Map showing footprint of each of the three beams of AfriStar, which beams are shown covering all of Africa and parts of Europe and Asia]
WorldSpace AsiaStar Coverage Area [Map showing footprint of each of the three beams of AsiaStar, which beams are shown covering all of Asia and small parts of Africa and Australia]
WorldSpace AmeriStar Coverage Area
[Map showing footprint of each of the three beams of AmeriStar, which beams are shown covering all of South America and part of Central America]
Appendix 2
Technical Specifications
WorldSpace Radio Segment
Technical Specification for WorldSpace Receiver
WST-WSG-DDS-001-500000
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Table Of Contents
References
Revision History
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Technical Specification for WorldSpace Receiver
The overall block diagram of the receiver from the space interface of the antenna to the mixer interface to the IF is shown in Figure 1. In the figure are shown the cascade of LNAs and filters that comprise the antenna section and also those that comprise the RF tuner up to the IF mixer. Along the chain will be seen the gains of the amplifiers, the expected insertion losses of the filters and the loss of the cable that connects the antenna unit to the tuner unit input. Also shown are the IP3 levels expected of each LNA.
Figure 1 shows the antenna unit configuration for a dual polarized antenna. It has two arms, one for Left Hand and the other for Right Hand Polarization. A receiver activated signal quality switch selects that arm that yields the best-received quality. If a horizontal linear polarized antenna is used, only one arm is needed. It will have the components of one of the arms as shown in Figure 2.
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Notes:
This method compares the noise output of the active antenna system oriented towards the surface of the earth, which is assumed to have a temperature of about 300 K, with the noise output resulting when the antenna is oriented perpendicular to the sky with an assumed temperature of 20 K. Alternatively, an anechoic chamber can be used applying the minimum PFD to the antenna. Due to the 300 K of the chamber, the transmitted minimal PFD has to be increased accordingly (see antenna test procedure).
C/N = 4.5 dB at QPSK demodulator input for a real satellite signal with deterioration due to TWT non linearity effects source or a TDM test generator with appropriate added noise.
Measurement procedure:
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Appendix 1
A1 Explanation of modifications in the Technical Specifications
General remark: This document contains modifications intended to improve the performance of the WorldSpace Receivers in the presence of high-level in-band and out-of-band interferers. Technical parameters were changed to accomplish this.
All IP3 levels indicated in this document are Input IP3 levels!
Overview of the Receiver Antenna and Tuner Sections
A block diagram for the implementation of the RF sections of the receiver, from the dual polar antenna outputs to the Tuner section preceding the IF mixer, is shown in Figure 1. Low loss filters (pass-band loss of nominally 0.5 dB) having the characteristic given in Figure 3, first separately filter the left hand and right hand outputs of the dual polar Antenna Unit. Each is fed to an LNA having 20 dBm IP3 with 15 dB gain. A switch next selects that polarization yielding the best receiver performance quality as determined by receiver signal processing logic. This switch has an insertion loss of 1 dB. The selected antenna output is fed to a 2nd filter having the characteristic shown in Figure 4. This filter shall have an in-band insertion loss of nominally 3 dB. Because of the gain of the preceding LNA stage, this arrangement does not significantly deteriorate the receivers NF performance. The 2nd filter output feeds the last LNA stage of the Antenna Unit. It has a gain of 15 dB and an IP3 of 10 dBm. A cable having a loss of up to 5 dB connects the Antenna Unit to the Tuner input. This supplies input to a 3rd filter having the characteristic shown in Figure 4 and thence to the Tuner LNA stage. The output of the latter stage feeds to the IF mixer.
Figure 1 also shows the gains and losses and the expected signal levels at various points along the chain of components. The overall filter action of the cascade of the three filters as seen at the output of the Tuner LNA is shown in Figure 5. The 0 dB level on this graph corresponds to a level of 71.8 dBm.
Figure 2 revises the Antenna Unit to operate with a linear antenna rather than the dual polarized patch antenna.
Ancillary Information
The satellites radiated EIRP and the distance to the earth determine the range of the electromagnetic wave flux density falling on the earth. The radiated beam center EIRP of the satellite is 52.5 dBW. The shortest distance to the earth from geostationary orbit is 36,000 km and the longest is 41600 km. Assuming square law spreading, the resulting beam center flux density values are -109.6 and - 110.9 respectively. The latter value equates to at a PFD of 137 dBW/m2/4 kHz assuming TDM signal is contained in a bandwidth of 2 MHz, then the PFD from the satellite corresponds 109.6 dBW/m2/4kHz.
With reference to the 3 dB beam contour relative to beam center, a link margin of 6 dB for a 6dBi gain antenna is achieved. Correspondingly, the margin will be zero at a contour with 3 + 6 = 9 dB attenuation relative to the beam center, resulting in PFD of -120 dBW / m². With this minimum usable PFD, a minimum specified receiver level of -88 dBm has to be delivered to the receivers antenna socket input.
To compensate for a maximum cumulated antenna-to-receiver cable loss of 10 dB (5 dB cable fixed to antenna plus 5 dB cable inserted between antenna plug and tuner input socket) in case of detached antenna use, and the worst case tolerance of the antenna output signal of -3 dB, the minimum output level at the end of the inserted cable observed at the receiver socket is 96 dBm. This assumes an antenna gain of 6 dBi.
To 12) Signal behavior at receiver antenna input. The maximum level of the used signal (defining the required AGC range) is 30 dBm. An in-band CW interferer up to a level of 30 dBm has to be tolerated before it is reduced by the SAW filter.
The receivers noise figure limitation is changed to 10 dB, as the influence of this parameter after a previous LNA gain of 15 dB can be easily tolerated.
To 19) Demodulation performance: The carrier-to-noise value deserves additional clarification and reference to a test procedure. This parameter is primarily determined by the StarMan chipset. To avoid the requirement in the test equipment of including a TWT-simulator for the non linearity-effects, 2 limits are mentioned here. The value of 4.0 dB ignores the influence of satellite transponder non-linearity (intermodulation noise) and applies when a test signal is derived from a linear signal source. The value of 4.5 dB includes satellite non-linearity effects and applies for tests using the real satellite signals.
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ATTACHMENT 1
Example of one WorldSpace
Receiver Realization
WorldSpace Low Cost Receiver
Feature Description
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Table of Contents
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1. Overview
1.1. Introduction
This attachment describes feature requirements of a low cost WorldSpace Receiver.
1.2. Delivery Content
2. Physical Requirements
2.1. Size (Recommended)
Set: approx. 210 x 142 x 60 mm (length x height x depth) Antenna: approx. 270 x 122 x 12 mm (height x width x depth, open incl. foot)
2.2. Input Connectors
The unit provides one input F-Type connector for a WorldSpace antenna input. The antenna shall be either a dual circularly polarized LH and RH type or a horizontal mono polar linear type. For the dual circular polarized type, the antenna supply voltage switches to 2.3 volts for LH and 3.0 volts for RH. For the mono polar linear type, the antenna supply voltage is non-switched at 3.0 volts.
The unit provides a DC-input connector for an external power supply.
2.3. Output Connectors
It is recommended that the unit provide a 1/8 stereo headphone jack.
The unit provides a RJ6 (or RJ11) connector for BC output. Pins BCC, BCD, GND and Vcc of the BCI/O-Interface are used.
2.4. Audio out
It is recommended that the unit have a mono speaker with good sound performance.
2.5. Battery (Optional)
To be powered by 3 baby cells. Battery Type Code is R14. (External supply optional). Battery Voltage is displayed.
2.6. Display
LC-Display has a maximum of 10 digits (14 segments each) and icons for battery voltage, stereo, encryption, Service Components and receiving quality. First two
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digits are used to display the preset station number, following 8 digits are used to display TDM number, BC number, SC Number or Service Label. No backlight. Display size approx. 10 cm².
Display Example:
2.7. Buttons and Switches
1 Slide Switch for power on/off.
7 Buttons for BC up / down, SC up /down, Volume up / down, Station presets.
2.8. System Architecture
It is recommended that there be a single PCB-Design containing all interfaces for connectors, LCD, switches and buttons.
3. Environment and EMI Requirements
3.1. Operating Environment
Temperature: 0 to 55 ° C
Humidity: 20 % to 80% relative humidity, non-condensing
3.2. EMI Certification
It is recommended that the unit have CE-Approval.
4. Functional Requirements
4.1. WorldSpace Signal Reception
The unit is capable of receiving the WorldSpace-L-band signal.
4.2. Audio support
The unit is capable of performing MPEG decoding. Data other than Audio can only be accessed via the BC output connector. The decoded Audio Data is routed to the built in speaker and the 1/8 stereo headset output.
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4.3. User Interface
Referred to the following features are supported:
4.3.1. Learn Mode
Start Learn Mode by pressing both BC up and SC up for more than 2 sec.
4.3.2. BC Manual Scan Mode
Use buttons BC up and BC down. If the last BC of a TDM is selected and BC up is pressed, the first BC of the next TDM is tuned.
4.3.3. SC Manual Scan Mode
Use buttons SC up and SC down. If there is more than 1 SC available it is displayed to the user. When tuned to the last SC of a BC, pressing SC up will tune to the 1st SC of the same BC.
4.3.4. Station Keys
10 presets can be stored. Operation to be defined.
4.3.5. Audio Modes
The set supports stereo mode on the headset output.
4.3.6. Last Station Memory
If the stored station is no longer available, the first available audio SC will be tuned.
4.3.7. Service Label
Supported.
4.3.8. BCIO Interface
Supported.
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Appendix 3
STARMAN Chipset
STARMAN Chipset means a chipset comprising one or more integrated circuits that was manufactured under license from WORLDSPACE, is capable of processing information or dataaccording to the WORLDSPACE Format, and:
One single STARMAN Chipset is a complete set of integrated circuits or a single integrated circuit necessary for the implementation of the WORLDSPACE Format in a single WORLDSPACE Receiver.
Appendix 4
Licensed STARMAN Chipset Manufacturers
Appendix 5
FhG Patent Rights
Appendix 5 FhG Patent Rights 1 of 5
Appendix 5 FhG Patent Rights 2 of 5
Appendix 5 FhG Patent Rights 3 of 5
Appendix 5 FhG Patent Rights 4 of 5
Appendix 5 FhG Patent Rights 5 of 5
Appendix 6
WORLDSPACE Patent Rights
Appendix 6 WORLDSPACE Patent Rights
Appendix 7
Licensed WORLDSPACE Marks
III. CORPORATE IDENTITY
A. WorldSpace Corporate Colors
B. Pantone Matching System (PMS)
The Pantone Matching System® is a standard in the printing industry. There are no exact color matches for WorldSpace colors in any other printing ink system.
C. Four Color Process
D. Greyscale Usage
In rare instances, the WorldSpace logo will be printed in greyscale. Examples include newspapers, one-color programs and similar publications.
Never use the greyscale WorldSpace signature on a dark or black background. If it must set on a dark field, place within a white bounding box. WorldSpace Signature (Logo)
E. WorldSpace Signature (Logo)
General outline and description:
The WorldSpace Signature (Logo) consists of:
F. Alterations
There shall be NO alterations to any file to change color,. size or placement. Only the following versions have been officially approved. When scaling the logo for layout it must be done proportionally and the Icon must not be reduced to less than ONE INCH.
G. File Format
Please keep the logoart in the same file format it was created in. The WorldSpace logo is an Adobe Illustrator EPS file. There is no reason to convert this file into any other format for printing purposes (NO Photothop bitmap or tiff). Illustrator EPS files are vector based, meaning that they can be scaled to any size without losing their resolution. There is also no need for a clipping path - the. logo and type will be automatically silhouetted.
H. WorldSpace Icon
The immediately identifiable WorldSpace Icon:
I. Color
The center sphere, or hub, is always blue - the same blue as the blue arc. The colors of the arcs cannot be switched or altered.
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J. WorldSpace Logotype
The Logotype of our organization is WorldSpace. WorldSpace is always spelled with a capital W and a capital S. This word should always appear as Frutiger Bold Condensed.
The word WorldSpace as it appears in our logo is a Logotype that is set with specific letter spacing and baseline adjustments. DO NOT alter or recreate the WorldSpace Logotype.
The Logotype shall always print black or in reversed color white-on dark backgrounds.
Usage as a company name in copy
K. Position of Registration Mark
Size: The ® mark shall be one-half the size of the hub diameter. Placement: On lower right side of the Logotype. The top of the R should rest on the baseline of the text and be spaced one-half the hub diameter from the E in the Logotype. The WorldSpace registration mark shall always print black.
L. 2D vs. 3D. No 3D Usage Accepted in Part or in Whole.
The WorldSpace 3D logo shall NOT BE USED in any way shape or form. In the early development of WorldSpace, a 3D version of the logo had been developed. If you or someone you know has a copy, please remove it from you computer.
M. Area of Isolation
In order to maintain the integrity of the logo, WorldSpace requires that an area of isolation be maintained. Copy, other than the positioning line and division names, may fall no closer than 2 hubs from all points of the logo.
N. WorldSpace Typefaces
The Frutiger family
The Minion family
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O. Background Color Usage
The WorldSpace logo is most effective against a white, black, PMS 877 silver background or any of the colors in the complementary palette. Avoid high contrast ring backgrounds; they interfere with legibility. Avoid any solid color with a value too close to any of the three logo colors.
P. Reversed Color Usage
Rules for using the WorldSpace Signature on a dark background:
The word WorldSpace becomes white ONLY.
Q. Reversed Color Usage
Rules for using the WorldSpace Signature on a dark background:
The word WorldSpace becomes white ONLY.
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Appendix 8
Standard Testing Rates
1. Testing fee for first China Worldspace PC card or first China Worldspace Receiver of a particular type submitted by MANUFACTURER for type approval pursuant to Article 2.3.1 of this Agreement: $10,000
2. Testing fee for each additional China Worldspace PC Card or each additional China Worldspace Receiver of that same type resubmitted for type approval pursuant to Article 2.3.1 of this Agreement: $5,000
Appendix 9
Chinese Broadcast Format
Chinese Broadcast Format is the only broadcast format which can be received by Chinese Receiver. The Standard Receiver also can receive Chinese Broadcast Format.
Note:
Chinese Receiver may examine all the conditions set for Chinese Broadcast format. Only the program channels which conform to all the conditions can be selected. Chinese Receiver can hide or skip all other channels.
General set for receivers:
EM mark =1 PIWE=1000 (hex)
Chinese Broadcast Format examination and the functions of receivers
AMENDMENT TO THE STANDARD PRODUCTION, MARKETING AND LICENSE AGREEMENT FOR CHINA WORLDSPACE PC CARD AND CHINA WORLDSPACE RECEIVER
This Amendment to the Standard Production, Marketing and License Agreement for China WorldSpace PC Card and China WorldSpace Receiver (this Amendment) is made by and between:
WorldSpace International Network Inc., a corporation organized under the laws of the British Virgin Islands, having its principal office at Craigmuir Chambers, P.O. Box 71, Road Town, Tortola, British Virgin Islands (WORLDSPACE); and
Xian Tongshi Technology Limited, a corporation organized under the laws of the Peoples Republic of China, having its principal office at No.89 XingQing Road, Xian, Shanxi Province, P. R. China, (TONGSHI) (each, a Party and collectively, the Parties).
WHEREAS, TONGSHI would like WORLDSPACE to disclose to it the details of the WORLDSPACE encryption scheme so that TONGSHI can insure that each and every China WORLDSPACE PC Card and each and every China WORLDSPACE Receiver that it produces will have a unique identification and can be used to receive WORLDSPACE subscription audio and/or multimedia services in China; and
WHEREAS, WORLDSPACE wants to insure that TONGSHI maintains the proprietary and confidential nature of WORLDSPACEs encryption scheme and that TONGSHI produces each and every China WORLDSPACE PC Card and each and every China WORLDSPACE Receiver with a unique identification, with a STARMAN Chipset or with any hardware or software required to enable decryption of the encryption scheme used by WORLDSPACE for subscription audio and/or multimedia services in China.
NOW, THEREFORE, the Parties have agreed to amend the Standard Production, Marketing and License Agreement for China WorldSpace PC Card and China WorldSpace Receiver dated August 18, 2001 as follows:
2.1.1 Mass Production. TONGSHI shall mass-produce China WORLDSPACE PC Cards and China WORLDSPACE Receivers in quantities sufficient to meet consumer demand. TONGSHI shall use its best efforts to produce China WORLDSPACE PC Cards and China WORLDSPACE Receivers that are of high quality and fulfill the customers needs. TONGSHI shall use its best efforts to mass-produce China WORLDSPACE Receivers at an ex factory price for the WORLDSPACE functionality not to exceed Fifty U.S. Dollars (US$50). TONGSHI shall manufacture each and every China WORLDSPACE PC Card and each and every China WORLDSPACE Receiver with a unique identification, with a STARMAN Chipset and with any hardware and/or software required to enable decryption of the encryption scheme used by WORLDSPACE for subscription audio and/or multimedia services in China. Except as otherwise provided herein, TONGSHI shall supply all personnel, materials, facilities and other resources necessary to produce China WORLDSPACE PC Cards and China WORLDSPACE Receivers.
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8.2 Termination for Cause. If a Party substantially fails to comply with any of its obligations under this Agreement, and does not remedy the failure of performance within thirty (30) days after it has been notified thereof, the other Party may terminate this Agreement at the end of such period, without prejudice to any damages or additional remedies that may be available at law or in equity. Failure by TONGSHI to manufacture a China WORLDSPACE PC Card or a China WORLDSPACE Receiver in accordance with this Agreement shall constitute cause for termination.
8.3 Cause for Immediate Termination. Failure by TONGSHI to manufacture each and every China WORLDSPACE PC Card and each and every China WORLDSPACE Receiver with a unique identification, with a STARMAN Chipset or with any hardware or software required to enable decryption of the encryption scheme used by WORLDSPACE for subscription audio and/or multimedia services shall constitute cause for immediate termination of this Agreement without notice.
THE PARTIES, INTENDING TO BE LEGALLY BOUND, have executed this Amendment as of the date last written below.
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WorldSpace Corporation
&
Xian Tongshi Technology Limited
Cooperation Agreement
Date: December 12, 2001
Table of Contents
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ii
COOPERATION AGREEMENT
This Cooperation Agreement (hereinafter referred to as this Agreement) is entered into as of this 12th day of December 2001 by and between:
(WorldSpace and Tongshi, together with their permitted successors and assigns, are hereinafter referred to individually as a Party, and collectively as the Parties.)
WHEREAS, WorldSpace is a company providing digital audio and multimedia broadcasting through direct satellite transmissions, and Tongshi is a company engaging in the development, manufacture and sale of electronic products.
WHEREAS, WorldSpace wishes Tongshi to manufacture, develop and sell WorldSpace China Receivers and WorldSpace China PC Cards.
WHEREAS, Tongshi has the capability to adjust, improve and develop WorldSpaces multimedia direct transmission system and relevant software for their sinization to comply with the application environment in China. Meanwhile, Tongshi agrees to be responsible for gathering and editing multimedia information content and to cooperate with WorldSpace and/or its Affiliate established in China for the development of multimedia services with the multimedia financial information service as the core service. WorldSpace agrees to provide satellite capacity to cooperate with Tongshi for the commercial trial operation and commercial operation of the multimedia information services.
NOW THEREFORE, in consideration of basic principles of mutual development, by friendly consultations, the Parties have agreed to enter into this Agreement.
Article 1 DEFINITIONS
Unless the terms or contexts of this Agreement have provided otherwise, the following terms shall have the meaning set forth below when used herein:
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Article 2 COOPERATIVE PROJECT
On the basis that the following conditions precedent have been satisfied, WorldSpace (or its Affiliate) shall cooperate with Tongshi to launch the Multimedia Financial Information Service Channel (with the stock information service) as the core service and the Auxiliary Multimedia Information Service, and Tongshi shall manufacture and sell the WorldSpace China Receivers and WorldSpace China PC Cards (WorldSpace China Receiver and WorldSpace China PC Card in italics in this Agreement shall mean the WorldSpace China Receivers and WorldSpace China PC Cards manufactured (including those manufactured by Tongshi through subcontracts).).
The Parties will, in accordance with the relevant provisions of this Agreement, finish the Technology Development Plan (Exhibit I hereto) within twenty (20) days after the execution of this Agreement. The Technology Development Plan shall clearly stipulate the requirements for Tongshis development, adjustment and sinization of the WorldSpace multimedia direct transmission system and relevant software, and their respective timeframes in order to execute the Cooperative Project.
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The Parties will, in accordance with the relevant provisions of this Agreement, finish the Business Plan (Exhibit II hereto) within twenty (20) days after the execution of this Agreement. The Business Plan shall clearly stipulate the business objectives, market promotion and sales plans, cost calculations, and editing methods of the multimedia information content of the Cooperative Project for implementation of the Cooperative Project. Upon agreement through negotiation, the Parties may adjust the Business Plan and shall implement the Business Plan according to the Parties such agreement.
Article 3 OBLIGATIONS
Article 4 TECHNOLOGY DEVELOPMENT PLAN
Tongshi shall utilize its own capital and technical capabilities to complete the development of WorldSpace multimedia software (such as the WorldSpace multimedia
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direct transmission system software, users management software, broadcasting software and encrypted software) as agreed by both Parties to satisfy the technical standards as provided by WorldSpace. If Tongshis developments fail to comply with the technological standards or have technological problems during actual production, Tongshi must correct the relevant software so that it meets the technological standards stipulated by WorldSpace.
If Tongshi, upon WorldSpaces request, provides technical services outside China, WorldSpace shall pay Tongshi reasonable travel and transportation expenses with respect to the same and reasonable software modifying and testing costs as agreed by the Parties.
Tongshi shall, in an encrypted form, provide Worldspace with all technical documents and samples with regard to the WorldSpace multimedia software that is improved and adjusted by Tongshi for WorldSpaces confirmation of whether such samples and improvements can be normally used in China and satisfy such standards as compatibleness as provided by WorldSpace.
If the Multimedia Financial Information System (See the definition in Exhibit A Technology Development Plan) that developed by Tongshi on the basis of intellectual properties that owned by WorldSpace have passed relevant inspection and have been identified as qualified by WorldSpace, the Multimedia financial Information System shall be Co-owned by WorldSpace and Tongshi. Each Party will have the right to use the Multimedia Financial Information System on condition that the usage shall not infringe the rights of the other Party. Any license or transfer of the Multimedia Financial Information System and its development information shall be subject to the prior written approval of the other Party.
If Tongshis development and improvement of the WorldSpace multimedia software have passed relevant inspection and have been identified as qualified by WorldSpace, the developed and improved WorldSpace multimedia software shall be owned by WorldSpace, and WorldSpace shall have all exclusive rights in such software as the owner of the same.
Tongshi shall produce the WorldSpace China multimedia software in accordance with the unified standards as provided by WorldSpace to coordinate with the production and sales activities of WorldSpace China Receivers and WorldSpace China PC Cards.
WorldSpace shall have the right to license any third party to engage in the production of WorldSpace China multimedia software.
5
Article 5 BUSINESS PLAN
WorldSpace and Tongshi agree to cooperate to promote and sell the WorldSpace China Receivers and WorldSpace China PC Cards in China in accordance with the Business Plan, attached as Exhibit II hereto.
In order to cooperate to produce and sell the WorldSpace China Receivers and WorldSpace China PC Cards, the Parties have executed the WorldSpace China Receiver and WorldSpace China PC Card Manufacture, Marketing, Sale, and Technology Licensing Agreement, through which WorldSpace shall license Tongshi to use WorldSpaces patent right, information, trademark and FhG patent right for the improvement, production and sale of the WorldSpace China Receivers and WorldSpace China PC Cards.
Unless otherwise agreed by both Parties, Tongshi shall be responsible for the sale of the WorldSpace China Receivers and WorldSpace China PC Cards, and relevant accessories in China.
Tongshi hereby warrants that the minimum annual production capacity of the WorldSpace China Receivers shall reach 250,000 sets in 2002.
The Parties shall operate the Multimedia Financial Information Service Channel to mainly provide stock information (including instant prices, notices, analysis, etc.) nationwide in accordance with the Business Plan. The Parties shall reach agreement before February 1, 2002 regarding various issues such as the specifics concerning the operation of the Parties Multimedia Financial Information Service Channel, and shall execute a supplementary agreement (Supplementary Agreement) to this Agreement. Such Supplementary Agreement shall be a part of this Agreement.
6
The technology testing period for the Parties cooperative Multimedia Financial Information Service Channel shall commence from December 20, 2001. Tongshi shall complete all relevant technical improvements and developments before the commencement of the technology testing period in order to ensure the timely launch of the service.
The testing improving period shall commence from January 10, 2002 and last fifty (50) days. During this period, the Parties shall improve and perfect the content of the information service.
After completion of the testing improving period, the Parties cooperative Multimedia Financial Information Service Channel shall be a chargeable service. The Parties shall reasonably arrange the fee standards and marketing strategies in accordance with operating conditions during the testing improving period.
To promote the Multimedia Financial Information Service Channel cooperated by the Parties, Tongshi shall provide the Free Star, Weather Forcast and other information resources to cooperate with WorldSpace to launch versatile multimedia information services that meet with market demands.
7
In accordance with the Business Plan, WorldSpace shall supplement the 32 K capacity used for the Multimedia Financial Information Service Channel with 96K capacity to transmit the Auxiliary Multimedia Information Services. The Parties shall, according to market testing, market reflection and business operation conditions, timely adjust the content, nature, and market strategies of the multimedia information services and the capacity for use. If there are any discrepancies on the above adjustments between the Parties, WorldSpace shall make the final decision on the same, which shall have binding force on both Parties. If the adjustments that WorldSpace made to the Auxiliary Multimedia Information Services cause any customer dispute, WorldSpace shall be responsible for the relevant legal consequence.
The timeframe shall be the same as that of the Multimedia Financial Information Service Channel as specified in 5.2.1 (B) hereof.
In the event that a lower rate of WorldSpace capacity can satisfy the same transmission quality as that of the agreed rate provided hereunder can, which is a result of WorldSpaces technical improvement on the capacity, WorldSpace shall have the right to use such lower rate capacity.
WorldSpace and Tongshi agree to utilize their multimedia information service to develop an advertising business when relevant Chinese law permits the same.
Article 6 DISTRIBUTION CHANNEL
8
shall be separately agreed by the Parties. But the advertisement or other related income that earned by Beijing Guoxin or Beijing Tianyi from the advertisement of Free Star, Weather Forecast and other information resources will not be included.
Article 7 INCOME DISTRIBUTION OF THE COOPERATIVE PROJECT
The Parties shall cooperate to (i) produce and sell WorldSpace China Receivers and WorldSpace China PC Cards; and (ii) provide the Multimedia Financial Information Service to users. The Parties shall share the income arising from the Cooperative Project in accordance with this Article. In order to specify the income distribution methods of the Parties, the following terms used in this Agreement shall have the meanings set forth below:
9
expenses agreed to by the Parties from the Cooperative Income B. Costs and expenses that have been agreed to by the Parties to be deducted from the Cooperative Income B shall includes: (1) the capacity agency fee payable to ChinaSat (10% of the standard capacity fee for the capacity utilized for the Parties cooperative Multimedia Services) and the uplink service fee; (2) part of the capacity cost to WorldSpace as agreed by the Parties, i.e., five hundred thousand United States dollars (USD 500,000) for each year; (3) promotional expenses agreed to by the Parties; (4) other expenses agreed to by the Parties.
Tongshi is the First Payee for the sale of the WorldSpace China Receivers and WorldSpace China PC Cards. The provision for the Parties cooperative multimedia information services First Payee shall be referred to in the Supplementary Agreement executed by the Parties. The First Payee shall submit to the other Party sales reports in written form within 30 days after each of the following dates: March 31, June 30, September 30 and December 31 of each year, and ensure the correctness of such reports.
10
Article 8 ACCOUNTING RULES
11
method and ancillary materials evidencing the amount paid. The First Payee shall preserve the above original certificates for five (5) years following the termination of this Agreement, and shall provide such certificates to the other Party when requested.
The First Payee shall cooperate with the other Party for such other Partys audit for three (3) years following the completion of each sales quarter involved in the sales report and accounting record of the Cooperative Project. An independent accountant (selected by the other Party and agreed to by the First Payee) may audit the sales reports submitted by the First Payee. If the outcome of the audit done by the independent accountant is materially different (greater than 3%) from a sales report, or unfair competition or serious dereliction of duty occurs, the First Payee shall bear the auditing expenses.
If the First Payee fails to make all payments due to the other Party to the bank account designated by such other Party (or to make payments in other alternatives as agreed upon by both Parties), the First Payee shall pay a penalty of 0.05% of the unpaid amount for each day of delay to the other Party.
Any due payment under this Agreement shall apply the provisions of the above Article 8.3.1.
Article 9 TAXES
Each Party shall be responsible for its own tax obligations of any nature imposed, levied, collected or assessed by any tax or governmental authority. Where a Party is required by law to withhold any tax on behalf of the other Party, the withholding Party shall pay the tax on behalf of the other Party to the relevant tax or governmental authority. The withholding Party undertakes to deliver promptly to the other Party all receipts, certificates or other proof evidencing each amount withheld and paid by the withholding Party on account of taxes.
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Article 10 LIABILITIES FOR BREACH OF AGREEMENT AND INDEMNIFICATION
WorldSpace and Tongshi undertake that the breaching Party shall be responsible for all direct damages incurred to the non-breaching Party arising from the breaching Partys breach of this Agreement.
Article 11 REPRESENTATIONS AND WARRANTIES
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Article 12 INTELLECTUAL PROPERTY
WorldSpace and Tongshi hereby confirm that:
Article 13 TRADEMARK AND PROMOTION
Article 14 CONFIDENTIALITY
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their respective technology or businesses, whether written or unwritten, in any format or media, which has been prior to or after the date hereof, delivered or furnished to the other Party or its Affiliates, which relates in any manner to the business or operations of the Protected Party, or any of the Protected Partys Affiliates.
Article 15 TERM
This Agreement shall be effective from the date of execution and shall expire, unless terminated earlier, on August 8, 2005. Either Party may propose an extension of the term of this Agreement according to the business operation, which extension shall become effective upon both Parties written agreement to the same.
Article 16 EARLY TERMINATION
Upon the occurrence of any of the following events, either Party shall have the right to terminate this Agreement by giving written notice of termination to the other Party:
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Within one (1) month following any notice to terminate this Agreement pursuant to this Article, the Parties shall engage in consultations to seek a mutually beneficial solution for either terminating this Agreement or continuing with the Cooperative Project. If no agreement is reached during such one (1) month period, this Agreement shall terminate.
Article 17 EFFECT OF EXPIRATION OR TERMINATION
The Parties shall not have any obligations to one another once this Agreement expires or is terminated, except for any of the following obligations: any payment owed before the expiration or termination of this Agreement, and duties specially provided under this Agreement, such as with respect to confidentiality.
Article 18 NOTICE
All notices, demands, and other communications required or permitted under this Agreement shall be in writing and personally delivered or transmitted by a reputable overnight/international courier service, registered mail (postage prepaid), or facsimile to the following addresses. Any such notice shall be deemed to have been given when:
16
WorldSpace
WorldSpace Corporation Representative Office Attn: Ma Yuhong 18/F, Nan Yin Plaza No.2 Dong San Huan Road West Chao Yang District Bejing 100027, China
Telephone: (86-10) 64107028 Facsimile: (86-10) 64107020
With copies to (in case of any important documents regarding the Cooperative Project):
WorldSpace Corporation
Tongshi
Xian Tongshi Technology Limited
Article 19 FORCE MAJEURE
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default by the prevented Party or give rise to any claim for damages, losses or penalties. Under such circumstances, both Parties shall still be obligated to take reasonable measures to perform this Agreement, so far as is practical. If performance is delayed or prevented for sixty (60) consecutive days or more for reasons of Force Majeure, either Party may terminate this Agreement pursuant to Article 16.
Article 20 DISPUTE SETTLEMENT
Any and all disputes, controversies or claims arising out of or relating to the effectiveness, interpretation, implementation or termination of this Agreement shall be settled through friendly consultations. If the dispute is not resolved through friendly consultations within sixty (60) days from the date a Party gives the other Party written notice of a dispute, then it shall be resolved exclusively by arbitration under the auspices of and in accordance with the. Arbitration Rules of the Singapore International Arbitration Centre then in effect, and shall be submitted to, and be heard at, the Singapore International Arbitration Centre in Singapore.
Any arbitration shall be heard before three (3) arbitrators, one (1) of whom shall be appointed by Tongshi, one (1) of whom shall be appointed by WorldSpace, and the remaining one (1) arbitrator (chairman of the arbitration tribunal) shall be appointed by the Director of the Singapore International Arbitration Centre. Any arbitration shall be conducted in both the English and Chinese language. The arbitration award shall be final and binding on both Parties, and shall not be subject to any appeal, and the Parties agree to be bound thereby and to act accordingly. Judgment on the award of the arbitrators may be entered by any court having jurisdiction to do so. The losing Party, as determined by the arbitrators, shall pay all out-of-pocket expenses incurred by the prevailing Party (including legal fees), as determined by the arbitrators in connection with any such dispute.
In the course of arbitration, the parties shall continue to execute this Agreement as reasonably as possible and to the extent practical, with the exception of those parts of this Agreement which are under arbitration.
Article 21 APPLICABLE LAW AND CHANGES IN LAW
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each other and use their best endeavors to implement any adjustment necessary to maintain each Partys economic benefits derived from this Agreement. If no agreements can be reached on such an adjustment within sixty (60) days, either Party may terminate their Agreement pursuant to Article 16.
Article 22 ASSIGNMENT
Article 23 MISCELLANEOUS
This Agreement is written in both Chinese and English. Both language versions shall have equal validity and effect. In the event of a discrepancy between the Chinese and English versions, the English version shall prevail.
If at any time any one or more of the provisions of this Agreement is or becomes illegal, invalid or unenforceable in any respect under the law of any jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect as if the illegal, invalid or unenforceable provisions were omitted herefrom.
Nothing in this Agreement shall be construed as creating a partnership or joint venture between the Parties or as constituting one Party as the agent of the other Party. Neither Party shall have the right to create any contractual relationships with other parties in the name of the other Party and such contractual obligations will not bind the other Party.
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This Agreement constitutes the entire agreement between Tongshi and WorldSpace relating to the subject matter hereof superseding all prior agreements or undertakings oral or written and it is expressly declared that no variations hereof shall be effective unless made in writing.
Any amendment to this Agreement must be agreed by both Parties in writing.
IN WITNESS WHEREOF, the authorized representative of each Party has signed this Agreement on the date first set forth above.
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Exhibit I
[Never prepared by mutual agreement]
Exhibit II
[Never prepared by mutual agreement]
AGREEMENT
Xian Tongshi Technology Limited (Tongshi), a corporation registered under the laws of the Peoples Republic of China, and WorldSpace, Inc. (WorldSpace), a successor of WorldSpace Corporation and a corporation registered under the laws of the state of Deleware in the United States, have had friendly discussions and reached the following agreement on July 20, 2005:
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