SERVICES AGREEMENT
EXHIBIT
10.12
This
Services Agreement (“Agreement”)
is
made as of December 18, 2005 (the “Effective
Date”)
by and
between MOTRICITY
INC.,
a
Delaware corporation, with offices at 0000 Xxxxxxxx Xxxxxxx, Xxxxx 000, Xxxxxx,
XX 00000 (“MOTRICITY”),
and
SINGLE TOUCH INTERACTIVE INC., a Nevada corporation, with offices at 0000
Xxxxxxxxx Xxxx., Xxxxx 000, Xxxxxxxxx, XX 00000 (“STI”).
WHEREAS,
concurrently with the execution of this Agreement, STI and MOTRICITY are
entering into an Option Agreement pursuant to which MOTRICITY acquires a call
option to purchase STI (the “Option Agreement”);
WHEREAS,
MOTRICITY owns and operates
wireless content storefronts, wireless application protocol portals and Internet
portals for itself and on behalf of its subsidiaries and customers;
WHEREAS,
STI
offers a mobile phone service which will allow callers to download content
,and/or download mobile coupons by dialing an assigned number; and
WHEREAS,
MOTRICITY and STI wish to offer exclusive assigned number(s) for users of
Motricity’s services, including without limitation Motricity’s customers and the
end users the services MOTRICITY provides to its customers, to download content,
and/or download mobile coupons on their mobile devices;
NOW,
THEREFORE,
for
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, MOTRICITY and STI hereby agree as follows:
1. Services.
STI
will provide those services described in Exhibit
A
hereto
(“STI Services”),
for
the compensation set forth in Exhibit
B,
in the
United States, its territories, commonwealths, and possessions and new
territories as they become available (collectively, the “Territory”)
subject to the terms and conditions of this Agreement. All STI Services will
be
provided in accordance with the service level standards in Exhibit
A.
The
parties may update the exhibits from time to time to incorporate additional
services and relevant pricing and standards, and any additional terms pertaining
to services as mutually agreed upon by the parties.
2. Marketing.
MOTRICITY and/or its customer partners will provide marketing and promotions
for
the STI Services to end-users with commercially reasonable effort, including
such advertising in multiple forms (.g. Television, Radio, Web and Print) and
subject to (a) Single Touch’s reasonable guidelines and (b) the mutual agreement
between Motricity and Single Touch.
3. User
Data.
All
data will be collected by STI in connection with the STI Services pertaining
to
rights granted within and in accordance with applicable laws, rules and
regulations, including without limitation those related to privacy, and all
applicable privacy policies, and will be solely owned by MOTRICITY and/ or
its
customers. To the extent STI obtains any rights in or to such data, STI will
share such rights to MOTRICITY. STI will aggregate and deliver such data on
a
monthly basis to MOTRICITY, will use such data in accordance with its privacy
policy.
4. Reporting.
Within
thirty (30) days after in writing notification by Motricity to STI of launching
the Motricity #—___ service, STI will provide MOTRICITY with access to
web-enabled real-time reports showing user traffic and other details in
connection with the Motricity #—___ Services and related MOTRICITY campaigns
where applicable..
5. Payment.
Each
Party Shall pay the other within thirty (30) days of the date of an invoice
or
the last day of the month, as applicable. STI will take all commercially
reasonable steps to ensure that its chosen carrier billing affiliate will pay
MOTRICITY the amounts set forth in Exhibit
B
in
accordance with the terms therein, including filing or otherwise pursuing a
claim against the billing affiliate to seek amounts owed Motricity. If STI
or
its billing affiliate is more than ten (30) days late in making any payments
and
MOTRICITY is otherwise in compliance with the Agreement. MOTRICITY may provide
STI with written notice of such non-payment. If MOTRICITY is not paid the
amounts due within thirty (30) days of such notice, MOTRICITY may terminate
the
Agreement and proceed, either in its name or in the name of STI, to collect
the
amount due directly against the affiliate, in which case STI will be responsible
for its proportion of all reasonable costs of said collection efforts, including
without limitation attorneys’ fees. MOTRICITY shall pay STI the amounts set
forth in EXHIBIT B in accordance with the terms therein. If MOTRICITY is more
than Thirty (30) days late in making payments and STI is otherwise in compliance
with the Agreement, STI may provide MOTRICITY with written notice of such
non-payment. If MOTRICITY does not pay the amounts due within thirty (30) days
of such notice, STI may terminate the Agreement and all rights granted to
MOTRICITY under the agreement shall revert back to STI.
6. Publicity;
Confidentiality. Neither
party shall discuss this Agreement or make any public or other announcement
concerning this Agreement or the relationship with the other party, including
without limitation marketing and publicity activities, without the other party’s
written consent. STI may have access to, or may acquire confidential information
concerning the MOTRICITY Entities (as defined in Schedule
1)
and
agrees to keep said information confidential during and after this Agreement.
After providing the Services hereunder, STI shall surrender and deliver to
MOTRICITY, or destroy (and provide written certification of destruction) at
MOTRICITY’s request, all information conceived, developed, compiled and produced
by or for STI under this Agreement. It is agreed that money damages would not
be
a sufficient remedy for any breach by STI of this Section 6, and MOTRICITY
will
be entitled to injunctive relief, specific performance, and/or other appropriate
equitable remedy for any such breach. MOTRICITY’s election to pursue injunctive
relief shall not be a waiver of any of MOTRICITY’s other remedies available to
it under law, equitable principles or other legal theories.
7. Insurance.
STI
shall secure and maintain, at its expense, the insurance with the type of
coverage and limits
as
set forth below in Schedule
1.
8. Representations
and Warranties.
STI
hereby represents and warrants:
(a)
the
execution, delivery and performance of this Agreement is within its corporate
and/or other powers and has been duly authorized by all necessary corporate
and/or other action,
(b)
this
Agreement constitutes a valid and binding agreement, enforceable against it
in
accordance with its terms, and does not conflict with any other agreements
by
which it may be bound,
(c)
the
content it provides in connection with STI Services, and the STI Services
itself,
is
truthful and accurate, and does not and shall not violate any foreign, federal,
state or local law or regulation,
(d)
the
content it provides in connection with STI Services, and the STI Services
itself, does not and shall not infringe or misappropriate any patents,
trademarks, copyrights, trade secrets, publicity or privacy rights, of any
person or third party in any jurisdiction,
2
(e)
the
content it provides in connection with STI Services, and the STI Services
itself, does not and shall not contain any material that is unlawful, harmful,
abusive, hateful, obscene, threatening or defamatory,
(f)
it
shall
comply with and adhere to applicable laws and regulations in the performance
of
its responsibilities hereunder, and
(g)
it
holds all permits, licenses, orders and approvals of all federal, state and
local governmental or regulatory authorities, agencies or bodies required for
the conduct and operation of its business as currently conducted, and all such
permits, licenses, orders and approvals are in full force and effect and no
suspension, termination or revocation of any of the foregoing is threatened
and
there is no action, suit, proceeding or investigation pending or threatened
that
could restrict it, directly or indirectly, in performing its obligations
hereunder or that could have a material adverse effect on its business,
operations, earnings, prospects or condition.
9. Indemnification.
The
Parties mutually will defend, indemnify and hold and its officers, directors,
employees, agents, representatives, successors, assigns, parents and affiliates
harmless from and against any and all third party claims, demands, suits,
actions or causes of action (whether or not groundless), liabilities, losses,
damages, and expenses (including, without limitation, reasonable attorneys’ fees
and court costs) arising out of or in connection with any of the services
offered or rendered by either party hereunder, including without limitation
with
respect to the infringement or misappropriation of any patents, trademarks,
copyrights, trade secrets, publicity or privacy rights of any person or third
party in any jurisdiction or any violation of applicable privacy laws, rules
or
regulations, breach of any representation or warranty hereunder, or any act
or
omission pursuant to or in breach of this Agreement by either party, its
employees, agents or representatives. The parties mutually agree to defend,
indemnify and hold and its officers, directors, employees, agents,
representatives, successors, assigns, parents and affiliates harmless from
and
against any and all claims or actions by employees or persons performing on
behalf of either party based upon or arising out of the requirements of labor,
employment insurance, social security and income tax laws applicable to either
party and any claims related to death, injury, loss or damage to STI’ employees
or agents.
10. Term
and Termination.
The
term of this Agreement will commence on December 16th, 2005 and will continue
in
full effect for three
(3)
years.
Thereafter, the Agreement will automatically renew for one (1) year periods
unless either party gives the other party written notice of its intention not
to
renew the Agreement, such notice to be provided no later than thirty (30) days
before the expiration of the then-current term. Either party may terminate
this
Agreement if the other party is in default of its obligations, and fails to
cure
such default within thirty (30) days after written notice thereof. This
Agreement may be terminated by MOTRICITY for convenience upon ninety (90) days’
written notice to STI. Upon termination all data fees collected by STI on behalf
of Motricity shall immediately become due.
11. Exclusivity.
(a) |
During
the term of this Agreement, STI will not, directly or indirectly,
market,
promote, provide or sell the program to Black Entertainment Television
(BET) or any of BET’s subsidiary or affiliates without MOTRICITY’s prior
written consent.
|
(b) |
Within
the Territory and until the related Option Agreement expires, STI
may
market, offer, promote provide or sell the Program to Verisign, Qpass,
Infospace, m-Qube, Neustar, Openware or such entities subsidiaries
or
affiliates only with MOTRICITY’s prior consent, which consent may be
withheld by MOTRICITY in its sole discretion. Optional STI services
(such
as ListenLive service offered by STI) are not available as a conduit
for
the above listed entities to generate value added sales (for example,
from
ringtones) utilizing the Program. The restrictions of this subsection
(b)
will terminate in the event MOTRICITY does not acquire STI pursuant
to the
Option Agreement.
|
3
(c) |
For
the purposes of this section 11, (i) the term Territory Means the
United
States, it’s territories, commonwealths and possessions and new United
States territories as they become available, and (ii) the term Program
means, in whole or in part, the STI Services provided to Motricity
as
described in Exhibit A of this agreement as STI’s #1-4-7 program, which is
currently implemented, allows the user to download media content
(eg.,
ringtones, games or music) or e-commerce content (e.g., mobile coupons)
by
dialing a 3- digit number from his or her handheld device (eg., telephone,
ect.). at commercially reasonable rates and terms.
|
12.
Independent
Contractor.
Nothing
herein contained will be deemed to constitute an employment, partnership or
agency relationship, between, or a joint venture by, STI and MOTRICITY. It
is
expressly understood that STI is an independent contractor. STI is not, and
will
not hold itself out to be, an agent or representative of MOTRICITY, and will
have no authority whatsoever to enter into any binding agreements on behalf
of
MOTRICITY. STI will be solely and entirely responsible for its acts and
omissions and for the acts and omissions of its employees, agents and
representatives throughout the term of this Agreement.
13. Notices.
Any
communication hereunder must be given in writing and delivered in person,
transmitted electronically, or mailed to the address for each party set forth
above, with a copy to:
Motricity
Inc.
0000
Xxxxxxxx Xxxxxxx, Xxxxx 000
Xxxxxx,
XX 00000
Telefax:
[______________]
Attn:
[______________]
or
to
such other address or to such other person as either party shall have last
designated by such notice to the other party.
14. Governing
Law.
This
Agreement will be governed by and interpreted in accordance with the laws of
the
State of New York,
without
giving effect to any choice-of-law rules that may require the application of
the
laws of another jurisdiction.
15. Miscellaneous.
This
Agreement: (a) may not be amended except by a writing duly signed by both
parties; (b) represents the full understanding of the parties and supersedes
any
prior or contemporaneous agreements between the parties relating to the subject
matter hereof; (c) may not be assigned by STI without the consent of MOTRICITY
except in connection with a merger or acquisition of all or substantially all
of
STI’s assets, in which case this Agreement will be deemed automatically assigned
to the successor in interest. unless MOTRICITY provides written notice of its
non-consent objection to the assignment within ninety (90) days of the effective
date of the merger or acquisition; (d) shall be binding upon the heirs,
executors, administrators, successors and assigns of the parties. The provisions
of Sections 3, 6, 8, 9, 10 and 14 will survive any termination of this
Agreement. No consent or waiver hereunder shall be effective unless it is
explicit, in writing and executed by the waiving party. Furthermore, no consent
or waiver shall extend to or affect any obligations hereunder not expressly
waived, or impair any right consequent thereto. In the event of a conflict
between this Agreement and any exhibit or schedule hereto, the terms of this
Agreement will control.
4
IN
WITNESS WHEREOF,
the
parties have caused this Agreement to be executed by their respective authorized
representatives as of the Effective Date.
MOTRICITY
INC.
|
SINGLE TOUCH INTERACTIVE INC. | |||
By:
|
/s/
Xxxx X. Xxxxxx
|
By:
|
/s/
Xxxxxxx Xxxxxxxx
|
|
Name:
|
Xxxx
X. Xxxxxx
|
Name:
|
Xxxxxxx
Xxxxxxxx
|
|
Title:
|
CEO
|
Title:
|
Founder
|
5
EXHIBIT
A
STI
SERVICES
STI
Services under this Agreement consist of STI’s #1-4-7 program (the “Program”),
which
as currently implemented, allows the user to download media content (e.g.,
music) or e-commerce content (e.g., mobile coupons) by dialing a 3-digit number
from his or her handheld device (e.g., telephone, PDA, etc.). Optional STI
Services available and not included under this Agreement consist of STI’s
ListenLive and SeeItLive services, which means a voice call that enables users
to dial in and hear or view a concert or a portion of a concert over their
phone
for a fee, charged to their cell phone xxxx, (e.g. $2.99 for 15 minutes of
the
Rolling Stones live from Madison Square Garden).
The
unique vanity number(s) for use by MOTRICITY under this Agreement shall be:
#BET
and any other number reasonably requested b MOTRICITY,
which
number(s) may be changed or added to by mutual agreement of the parties and
subject to carrier approval.
STI
will
work with telecom carriers in connection with delivering the STI Services to
users and will insure the Program is integrated into the carriers’ systems. As
of the Effective Date, Cingular and Xxxxxx Wireless carry the STI Services.
STI
will make commercially best efforts to sign up other telecom carriers to deliver
the STI Services.
SERVICE
LEVEL AGREEMENT
This
Service Level Agreement (“SLA”) defines the service level requirements between
Motricity and Single Touch Interactive, Inc. (STI) for STI’s #147 Program. This
document defines the requirements of STI for performance metrics, reporting,
incident management and change management. It lists the contact information
for
both companies.
1.
|
Definitions
|
Unless
defined herein, all capitalized terms shall have the meanings set forth in
the
Agreement
Term
|
Definition
|
|
Availability
|
The
percentage resulting from the following calculation: [1-(Down Time/(Total
Time - Scheduled Down Time))] x 100. Availability percentages shall
be
expressed to two decimal points with the second decimal place rounded
up
or down to the nearest one-hundredth of a percentage
point.
|
|
Business
Hours
|
Monday
through Friday, 8:00 am to 5:00 pm Pacific Time.
|
|
Down
Time
|
The
number of minutes the #147 Program under STI’s control is not Operational
during a calendar month.
|
|
Emergency
Maintenance
|
Maintenance
required outside the agreed-upon Scheduled Maintenance, or necessary
within Scheduled Maintenance but not scheduled in advance pursuant
to
Section 5.
|
6
Term
|
Definition
|
|
Hours
of Operation
|
24
hours a day, 7 days a week and 365 days a year.
|
|
Incident
|
Any
problem with the #147 Program for which Motricity requests support
in
conformance with this SLA.
|
|
Incident
Management Process
|
This
facilitates incident management through the notification and escalation
processes. This process alerts designated Motricity departments to
#147
Program-affecting incidents and provides a method by which succeeding
levels of technical expertise and related management are engaged
in
restoration activities.
|
|
Operational
|
The
#147
Program under STI’s control is (i) materially functional and available to
its intended end user in accordance with its documentation and applicable
specifications, and (ii) not experiencing any customer-impacting
errors,
defects or service-limiting issues.
|
|
Resolution
|
The
correction of the error, defect or condition giving rise to the Incident
at STI discretion.
|
|
Scheduled
Down Time
|
The
number of minutes of Down Time incurred during Scheduled Maintenance.
Scheduled Down Time does not count in the Availability
requirement.
|
|
Scheduled
Maintenance
|
The
number of minutes of maintenance that is scheduled in advance. Scheduled
Down Time shall occur within the Scheduled Maintenance
window.
|
|
Service
Impact Report (“SIR”)
|
The
severity level assigned to an Incident based on the Incident
classifications defined in section 4.5 below. SIR reflects the degree
of
customer impact resulting from an incident, with an SIR 1 having
the
greatest impact and a SIR 3 having the least.
|
|
Technical
Bridge
|
A
teleconference that brings together appropriate technical people
and their
immediate supervisors and managers to focus on isolating and resolving
an
Incident.
|
|
Technical
Control Bridge
|
A
teleconference used by higher-level managers or executives who need
to
understand what has occurred, the progress made toward Incident Resolution
and whether or not additional resources are needed to resolve the
Incident.
|
|
Total
Time
|
The
total number of minutes in a given calendar month.
|
|
Trouble
Ticket
|
A
numbered record that documents a significant event or Incident. The
tracking document for an Incident or Scheduled
Maintenance.
|
2.
|
Performance
Requirements
|
2.1.
|
Monthly
Availability Performance
Requirement
|
STI
will
ensure that the #147 Program maintains a monthly Availability of 99.9%.
2.2.
|
Service
Level Reporting
|
If
requested, STI will provide Motricity with reporting for Availability on a
monthly basis. The reports will be due five (5) business days following the
end
of the applicable month. These reports will include:
Availability
Minutes
of Scheduled Maintenance and any resulting Down Time
Minutes
of Emergency Maintenance and any resulting Down Time
Total
Down Time
List
of
Incidents with date, start time, stop time and reason
7
3.
|
Non-Performance
and Chronic Failure
|
3.1.
|
Failure
|
If
the
Availability Performance Requirement is below 99.9% in any calendar month,
STI
shall
provide Customer a service credit equivalent to one (1) hour of service for
each
cumulative thirty (30) minutes of Down Time in excess of an aggregate of 44
minutes of Down Time in such month (the “Service Credit”). The Service Credit
will be determined by averaging the value of the services STI provided MOTRICITY
during the six months (or if it has been less than six months since the date
this Agreement was executed, by the number of months STI has provided services
to MOTRICITY) immediately prior to the month in which the Down Time occurs,
divided by 720 hours. STI shall calculate and issue any Service Credit that
may
be owed. Any Service Credit will be identified on the applicable monthly invoice
and will be applied against the fees and charges Motricity owes STI.
4.
|
Incident
Management
|
All
entities responsible for the #147 Program’s Service Availability will follow
this matrix for Incident communication and Incident Management.
4.1.
|
Monitoring
|
STI
will
monitor all functional components and all network connectivity points related
to
the #147 Program 24 hours per day, 7 days per week, and 365 days per
year.
4.2.
|
Trouble
Tickets and Updates
|
STI
will
provide Incident isolation, testing and repair work for all #147 Program errors,
defects or #147 Program problems, and third-party system errors, defects or
problems that are within STI’s span of control. STI will proactively inform
Motricity when an issue or condition arises that may cause potential system
anomalies and additional Trouble Tickets.
4.3.
|
Motricity
Notification to STI
|
Motricity
may communicate Incidents to STI by email or telephone. In each case, STI will
open a Trouble Ticket with enough information to identify, reproduce the
Incidence and assist in Incident Resolution. STI will generate a single response
by email for each Trouble Ticket regardless of Trouble Ticket receipt method.
The email response from STI will include the information supplied to
STI.
4.4.
|
STI
Notification to Motricity
|
In
the
event that STI identifies an Incident, STI is responsible for notifying
Motricity. Motricity may track Incidents via an STI Trouble Ticket number.
STI
shall provide a first response, first update and subsequent updates for each
Incident according to time periods described in the following
table:
Incident
|
End
User
Impact
|
First
Response
|
First
Update
|
Subsequent
Updates
|
|||||||||
SIR
1
|
75% –
100%
|
|
Within 1 hour
|
1
hour
|
Every
hour, or change in status
|
||||||||
SIR
2
|
25% –
74%
|
|
2
hours
|
2
hours
|
Every
2 hours, or change in status
|
||||||||
SIR
3
|
0% –
24%
|
|
4
hours
|
4
hours
|
Every
2 hours, or change in status
|
8
4.5.
|
Incident
Classifications
|
Once
an
Incident is reported STI will assign a SIR based on the table
below:
Service
Impact
Report
|
Description
|
|
SIR
1
|
This
incident level is attained when any of the following conditions are
met:
· A
complete #147 Program outage
· An
outage that affects 75% or more of subscribers
· A
recurring outage of the #147 Program
|
|
SIR
2
|
This
incident level is attained when any of the following conditions are
met:
· An
outage that affects 25% to 74% of the subscribers
|
|
SIR
3
|
This
incident level is attained when any of the following conditions are
met:
· A
corruption in the delivery of the #147 Program
· An
outage that affects 24% or less of the subscribers
· Results
that are materially different from those described in the product
definition for essential features
|
4.6.
|
Technical
Bridge and Technical Control
Bridge
|
Motricity
may establish a Technical Bridge or a Technical Control Bridge for any Incident.
STI shall join the Technical Bridge upon thirty (30) minutes notice from
Motricity during Business Hours. These Technical Bridges are used for
communication, troubleshooting, triage and escalation.
4.7.
|
Resolution
|
STI
will
provide Resolution to SIR Incidents according to the time periods described
in
the following table:
Incident
|
End User Impact
|
Resolution
|
|||||
SIR
1
|
75% –
100%
|
|
Within
24 hours of First Response
|
||||
SIR
2
|
25% –
74%
|
|
Within
48 hours of First Response
|
||||
SIR
3
|
0%
– 24%
|
|
Within
4 days of First Response
|
5.
|
Change
Management –
Maintenance
|
5.1.
|
Scheduled
Maintenance/Scheduled
Downtime
|
STI
will
notify Motricity by email no less than five (5) working days before a Scheduled
Maintenance event. Motricity accepts the STI Scheduled Maintenance request
unless Motricity responds within 36 hours before the Scheduled Maintenance.
STI
will notify Motricity via email prior to and after the Scheduled Maintenance
is
performed, or if Scheduled Maintenance is postponed or cancelled.
STI
will
notify Motricity of Scheduled Down Time and it will occur during the Scheduled
Maintenance window. Scheduled Down Time will not count against
Availability.
9
5.2.
|
Maintenance
Window
|
STI
will
perform Scheduled Maintenance and Scheduled Down Time from Monday to Sunday
between the hours of 10:00 pm and 3:00 am Pacific Time.
5.3.
|
Emergency
Maintenance
|
Should
STI require Emergency Maintenance, STI will contact Motricity Operations as
soon
as possible.
6.
|
Contacts
and Hours of Operation
|
The
following Contacts information may be updated and republished anytime by either
party upon written notice to the other. Changes will not be maintained within
this SLA document.
STI
|
Hours
of Operation
|
Role
|
Phone/Email
|
|||
STI
Support
Center
|
8:00
am – 5:00 pm PT
Monday –
Friday
VM
with notification
for
after hours
|
Receive
and report internal operational issues and maintenance
|
0-000-000-0000
xxxxxxx@xxxxxxxxxxx.xxx
|
|||
Xxxx
Xxxxxxx,
STI
Support
Center
Manager
|
24
x 7 x 365
|
Escalation –
Maintenance and ensure all operational issues are resolved
|
000-000-0000
wireless xxxx@xxxxxxxxxxx.xxx
|
|||
Xxx
Xxxxxxx,
VP –
Product
Management
|
24
x 7 x 365
|
Escalation –
Ensure all operational issues are resolved
|
|
000-000-0000
wireless xxxxxxxx@xxxxxxxxxxx.xxx
|
10
EXHIBIT
B
PRICING
STI
shall
provide Motricity its full suite of technology and services described in Exhibit
A at no cost (beyond pass through of out of pocket 3rd party costs paid by
STI
solely related to Motricity’s use of such technology and services
(“Cost-of-goods-sold”) for the period until the Option Agreement expires. An
example of a 3rd
party
Cost-of-good-sold would be content licensing costs or carrier fees.
After
the
Option Agreement has expired, if Motricity has not exercised its option to
acquire STI, then this Agreement will continue in force as a standalone
agreement under which Motricity will receive a
credit
in the amount of $2,000,000 (the “Credit) which Motricity shall be able to use
to acquire services from STI under this Agreement at a rate of $0.175 per
transaction on the delivery of any mobile content for a period of up to three
years thereafter in accordance with this Agreement. STI shall apply the Credit
against amounts owed by Motricity under this Agreement until the entire amount
of the Credit is expended. If Motricity’s usage of STI’s services under this
Agreement should exceed the amount of the Credit, then Motricity will be
obligated to pay STI at $0.175 per transaction on the delivery of any mobile
content for the remainder of the term of this Agreement, unless this Agreement
is terminated early in accordance with its terms.
Optional
Service
Listen
Live and See it Live will be made available to Motricity for use subject to
terms to be negotiated between the parties, nothing in this contract warrants
or
conveys any rights in the Listen Live or See It Live product. In addition,
Motricity understands that no monies which are the subject of this agreement
will be applied as advance, royalty security or credit is being applied towards
Listen Live or See it Live.
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SCHEDULE
1
INSURANCE
REQUIREMENTS
STI
will
secure and maintain, at its expense, the following insurance types which are
marked with “x”:
£ Workers’
Compensation Insurance,
including without limitation occupational diseases Coverage A statutory,
including without limitation broad form all states endorsement Employer’s
Liability Coverage B - $1,000,000 limit. STI, at its expense, shall cause its
Workers’ Compensation carrier to waive insurer’s right of subrogation with
respect to MOTRICITY Entities1
and
their directors, officers, employees and agents (collectively with the MOTRICITY
Entities, the “MOTRICITY
Insureds”)
to the
extent described herein. If STI is exempt from the Statutory Requirement to
provide Workers’ Compensation Insurance, it must provide a copy of the state
exemption certificate or a representation letter from a company officer stating
it is exempt and will take full responsibility for any work-related injuries
of
its employees.
£ Comprehensive
General Liability Insurance
written
on 11/98 ISO occurrence form or broader with no additional exclusions and
including without limitation products liability, completed operations, blanket
contractual liability, bodily injury, personal injury, broad form property
damage, third party property damage, that shall be primary, not contributing
coverage, and contain a cross-liability endorsement naming
the MOTRICITY Insureds as additional insureds,
with
the following limits of liability: each occurrence $1,000,000 CSL, aggregate
$2,000,000 CSL. The additional insured status must be primary with respect
to
the STI’s activities and the MOTRICITY Insured’s policies will be
non-contributing.
£ Media/Professional
Liability Insurance (E&O)
with
standard coverage, including but not limited to, coverage
with respect to claims for damages for infringements of copyrights or
other literary property rights including without limitation title and music,
libel or slander or any other forms of defamation, infringement of privacy
and
publicity rights, authorized use of names, plagiarism, and similar matters.
Such
insurance shall be for an amount deemed adequate by Licensor, but shall at
least
be for $1,000,000 per each occurrence and $3,000,000 in the aggregate. STI
will
comply with the requirements of such insurance regarding the giving of notices
and cooperating with the carrier in the defense of claims under the
policy. STI will cause its carrier to add the MOTRICITY Insureds as
Additional Insureds and they will waive their right of subrogation in favor
of
the Additional Insureds.
£ If
an
automobile is used in connection with the performance of STI’s obligations under
this Agreement,
Comprehensive Automobile Liability Insurance
insuring
the ownership, maintenance, or use of any owned, non-owned, or hired automobile
used in the performance of STI’s obligations under this Agreement, naming the
MOTRICITY Insureds as additional insureds, with the following limits of
liability: Bodily
Injury and Property Damage Liability, each
occurrence $1,000,000 CSL.
£ If
property or equipment is to be used by STI in connection with the performance
of
STI’s obligations under this Agreement, evidence of an
“All
Risk” Property Policy
covering
such property and equipment, whether owned, leased, rented or borrowed.
£ If
STI is
producing a product for the MOTRICITY Entity that is the party to this
Agreement, STI must add the MOTRICITY Entities as Loss Payees on STI’s
Property
and Time Element
coverage
with respect to the manufacturing and distribution of that product and provide
the MOTRICITY Entity with evidence thereof.
£ If
STI is
providing construction services, Umbrella
Liability Insurance
written
on a “following form” basis with a $10,000,000 limit per occurrence and in the
aggregate.
The
insurance required above does not limit STI’s liability to the MOTRICITY
Entities with respect to this Agreement and the obligations of STI
hereunder.
Certificate
Holder: MOTRICITY Insureds, [______________________].
Original
certificates of insurance and certified copies of endorsements naming the
MOTRICITY Entities as additional insureds and loss payees and evidence of
insurance as required above must be delivered at least ten (10) days before
the
commencement of the Services to the person specified on the signature page
above, together with a copy to [_________________________].
Each
such certificate shall be signed by an authorized agent of the insurance company
or insurance broker and shall provide that at least thirty (30) days notice
shall be given to the MOTRICITY Entity that is a party to this Agreement prior
to any cancellation, non-renewal or modification. Such MOTRICITY Entity is
under
no obligation to request the delivery of such certificates or endorsements.
If
STI fails to deliver said insurance certificate(s) or endorsement, the MOTRICITY
Entity’s failure to demand delivery shall not be construed as a waiver of the
STI’s obligation to provide the insurance coverage specified
herein.
_________________________________
12