3. License
On January 1, 2011, the Company entered into an agreement (the “License Agreement”) with Digital Programa Inc.
The basic terms of the License Agreement are as follows:
i. Digital Programa Inc. has granted exclusive license to the Company to market and sell certain software systems, as defined in the License Agreement, which consists of eDrive and iDrive (the “System”), exclusively in Canada and the United States;
ii. The Company issued 1,000,000 common shares of the Company, valued at $0.005 per share, to Digital Programa Inc. for initial, non-recurring, non-refundable license fee;
iii. The Company is required to pay Digital Programa Inc. a 4% royalty on gross revenues for each month from the sales of the System software; and
iv. The License Agreement shall remain in effect for a period of 10 years, commencing on January 1, 2011, and the Company has the option to renew the License Agreement for an additional 10 year term provided that the Company pay then current renewal fee, which shall be no greater than 10% of the then current license fee charged by Digital Programa Inc. for new licensees.