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EXHIBIT 10.7
ONESOFT CORPORATION ALLOY DESIGNS, INC.
ALLOY ONLINE, INC. HAS OMITTED FROM THIS EXHIBIT 10.7 PORTIONS OF THE AGREEMENT
FOR WHICH ALLOY ONLINE, INC. HAS REQUESTED CONFIDENTIAL TREATMENT FROM THE
SECURITIES AND EXCHANGE COMMISSION. THE PORTIONS OF THE AGREEMENT FOR WHICH
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED HAVE BEEN FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION. SUCH OMITTED PORTIONS HAVE BEEN MARKED WITH
AN ASTERISK.
SERVICES AGREEMENT CONTRACT NUMBER 2001-801
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THIS AGREEMENT, is entered into on February 9, 1999 between ONESOFT CORPORATION
(hereinafter "OneSoft" having an office at 0000 Xxxxxx Xxxxx Xxxxxxxx, Xxxxx
000, Xxxxxxxxx, XX 00000, and ALLOY DESIGNS, INC. (hereinafter "Alloy"), with
its principal office at 000 Xxxx 00xx Xxxxxx, Xxxxx 000, Xxx Xxxx, XX 00000.
WHEREAS, OneSoft is a service provider; and
WHEREAS, OneSoft thereby offers managed information and communication services
and facilities for its customers under the definitions, terms and conditions set
forth in this Agreement, and as in Scope(s) of Work that may from time to time
be attached, incorporated and/or amended hereto; and
WHEREAS, Alloy will utilize OneSoft's services and its facilities, and will
compensate OneSoft for said services as provided for and defined under this
Agreement and as in Scope(s) of Work that may from time to time be attached,
incorporated and/or amended hereto.
NOW THEREFORE, in consideration of the terms, mutual promises and agreements
contained herein, the parties do hereby agree as follows:
COMMERCE
1. OneSoft will work to integrate the XxxxxXxxxxx.xxx, or its successor,
order and inventory data transactions with the Xxxxxxxx Fulfillment Center
(hereinafter HFS) systems by providing and accepting files to and from HFS at a
frequency specified by Alloy. OneSoft understands that Alloy is committed to
this initiative and will have the influence to make available the HFS management
and staff necessary to complete this initiative in an efficient manner.
2. OneSoft Commerce Server(TM) product business application objects support
flexible product display, shopping cart processing, and order processing.
OneSoft will work with Alloy to provide direction and additional alternatives or
modifications to these objects so that Alloy has the flexibility needed to
present product offerings effectively to its consumers.
3. OneSoft will provide additional order notification to Xxxxxxxxxxx.xxx
customers via email and on-line. Once an order is placed, customers will be
notified via email that their order is being processed. In order for customers
to check their order online they will need to create an account and log into
that account. OneSoft will set up such accounts at the direction of Alloy.
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ONESOFT CORPORATION ALLOY DESIGNS, INC.
CHAT
1. OneSoft's Java-based chat application currently provides administrative
monitoring and other features that are enabled when users and administrators are
logged into the system. OneSoft will provide more instruction and documentation
regarding the current features and functionality as requested by Alloy.
2. The Chat interface can be customized as necessary to meet the requirements
of the XxxxxXxxxxx.xxx users. OneSoft will work with Alloy to provide the
interface and features to this application that best meet the goals of Alloy,
subject to reasonable commercial limitations.
3. Celebrity Chat has been mocked-up per Alloy's requirements. This
functionality will be available for Alloy to use for its Celebrity chat events.
Additional monitoring functionality will be added to the Java Chat application
in the coming weeks and months.
COMMUNITY FUNCTIONALITY / PERSONALIZATION
1. OneSoft will work with Alloy to determine the way in which users will
register and log into their XxxxxXxxxxx.xxx accounts. Once Alloy is comfortable
with the user account creation and log in procedures, account registration and
authentication features of OneSoft's software will be activated.
2. OneSoft will work with Alloy to determine the type of user and content
profile data required to support personalized product offerings and
advertisements on the XxxxxXxxxxx.xxx system. Once users and content have been
profiled, OneSoft will activate personalization features of OneSoft's product to
serve targeted ads and product offerings.
3. OneSoft will work with Alloy to identify the business rules around
personalization functionality. OneSoft will also collaborate with third party
vendors to support additional personalization processing. Once the requirements
are defined, it will be implemented through attached Scopes of Work to this
Agreement. [
]*. Alloy will benefit directly from this.
CO-LOCATION
1. OneSoft will allocate up to [ ]* MB of Internet connectivity bandwidth for
the XxxxxXxxxxx.xxx system. At current and forecasted usage levels, this amount
of connectivity will provide fast access and distribution of XxxxxXxxxxx.xxx
system data. Should XxxxxXxxxxx.xxx require additional connectivity due to
increasing system requests, OneSoft will notify Alloy and, subject to Alloy's
consent, adjust the amount of required connectivity and associated service
pricing accordingly through attached Scopes of Work to this Agreement.
2. OneSoft will provide monthly XxxxxXxxxxx.xxx system traffic statistic
reports by page and section to Alloy's reasonable specifications.
3. OneSoft will provide tape management and backup services to Alloy's
reasonable specifications for the XxxxxXxxxxx.xxx system.
4. OneSoft will provide 24/7 monitoring of the XxxxxXxxxxx.xxx systems.
SERVICE/COST AGREEMENT
1. Alloy will pay $[ ] per month as a fixed fee.
2. This Services Agreement will be for a period of one (1) year from the date
of its execution.
3. OneSoft will provide maintenance to ensure that the above functionality is
working correctly and to acceptable commercial standards.
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ONESOFT CORPORATION ALLOY DESIGNS, INC.
4. In the event of non-renewal of this Service Agreement, OneSoft will use
reasonable best efforts to ensure the non-disruptive, safe and secure
transfer of user data.
5. OneSoft will provide Alloy 25 hours of "special project" time per month.
6. Alloy will retain sole, exclusive and continuing rights to all data within
its site(s) which shall include, but not be limited to, User name, User
address, and other User demographic information.
7. OneSoft will retain rights to all software object and source code that it
provides and creates (all third-party software provided by Alloy will of
course remain as Alloy Designs property).
ADDITIONAL SERVICES
OneSoft shall remain available to perform modifications and updates to the
System on a time and material basis. Such additional services will be available
as follows:
* Alloy shall inform OneSoft of a desired change or modification and OneSoft
will complete a project change request form with an estimate as to the
level of effort and fee.
* Alloy will sign the form to approve OneSoft to perform the work.
For example and illustration purposes only:
* As Alloy's site traffic increases and OneSoft's attention to analyze
system bottlenecks and to recommend system scalability.
* Alloy informs OneSoft and requests the changes.
* OneSoft reviews the system issues and calculates the level of effort to
scale the system then provides Alloy with the written project change
request form.
* Alloy decides to proceed by executing the form and returning it to OneSoft.
* OneSoft performs the services.
CONFIDENTIAL INFORMATION
1. ACKNOWLEDGMENT OF CONFIDENTIALITY. EACH PARTY HEREBY ACKNOWLEDGES THAT IT
MAY BE EXPOSED TO CONFIDENTIAL INFORMATION BELONGING TO OR SUPPLIED BY THE
OTHER PARTY OR RELATING TO ITS AFFAIRS INCLUDING, WITHOUT LIMITATION,
SOFTWARE, BUSINESS PLANS AND PROCEDURES, THE TERMS OF THIS AGREEMENT, THE
CLIENT GUIDE, AND OTHER CONFIDENTIAL INFORMATION (HEREINAFTER REFERRED TO
AS "CONFIDENTIAL INFORMATION"). CONFIDENTIAL INFORMATION DOES NOT INCLUDE
(a) INFORMATION ALREADY KNOWN OR INDEPENDENTLY DEVELOPED BY THE RECIPIENT
OUTSIDE THE SCOPE OF THIS PROJECT; (b) INFORMATION IN THE PUBLIC DOMAIN
THROUGH NO WRONGFUL ACT OF THE RECIPIENT, OR (c) INFORMATION RECEIVED BY
THE RECIPIENT FROM A THIRD PARTY WHO WAS FREE TO DISCLOSE IT.
2. COVENANT NOT TO DISCLOSE. WITH RESPECT TO THE OTHER PARTY'S
CONFIDENTIAL INFORMATION, AND EXCEPT AS EXPRESSLY AUTHORIZED HEREIN OR AS
REQUIRED BY A COURT OF COMPETENT JURISDICTION, THE RECIPIENT HEREBY AGREES
THAT DURING THE TERM HEREOF, AND AT ALL TIMES THEREAFTER, IT SHALL
COMMERCIALIZE OR DISCLOSE SUCH CONFIDENTIAL INFORMATION TO ANY PERSON OR
ENTITY, EXCEPT TO EMPLOYEES HAVING A "NEED TO KNOW" (AND WHO ARE THEMSELVES
BOUND BY SIMILAR NONDISCLOSURE RESTRICTIONS), AND TO SUCH OTHER RECIPIENTS
AS THE OTHER PARTY MAY APPROVE IN WRITING. IN NO EVENT SHALL EITHER PARTY
ATTEMPT TO DECOMPILE, DISASSEMBLE OR REVERSE ENGINEER THE OTHER PARTY'S
CONFIDENTIAL OR PROPRIETARY INFORMATION AND ANY INFORMATION DISCOVERED IN
VIOLATION OF THIS PROVISION SHALL BE TREATED AS CONFIDENTIAL INFORMATION
BELONGING EXCLUSIVELY TO THE OTHER PARTY. EACH PARTY SHALL USE AT LEAST THE
SAME DEGREE OF CARE IN SAFEGUARDING THE OTHER PARTY'S CONFIDENTIAL
INFORMATION AS IT USES IN SAFEGUARDING ITS OWN CONFIDENTIAL INFORMATION,
BUT IN NO EVENT SHALL LESS THAN DUE DILIGENCE AND CARE BE EXERCISED.
CHOICE OF LAW
THIS AGREEMENT SHALL BE INTERPRETED, GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE SUBSTANTIVE LAWS OF THE COMMONWEALTH OF VIRGINIA, EXCLUSIVE
OF ITS CHOICE OF LAW RULES. ANY PROCEEDING OR DISPUTE RELATING TO THIS AGREEMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY, SHALL BE INITIATED AND MAINTAINED IN
THE COURT SYSTEM OF SAID DESIGNATED STATE.
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ONESOFT CORPORATION ALLOY DESIGNS, INC.
WARRANTY DISCLAIMER
ONESOFT MAKES NO WARRANTY, EXPRESS OR IMPLIED, WITH RESPECT TO THE
SERVICES RENDERED OR THE RESULTS OBTAINED FROM ONESOFT'S WORK, INCLUDING WITHOUT
LIMITATION ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE. IN NO EVENT SHALL ONESOFT OR ITS SUPPLIERS BE LIABLE FOR: (1) ANY
DIRECT, INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, EVEN IF ADVISED
OF THE POSSIBILITY THEREOF, AND REGARDLESS OF WHETHER ANY CLAIM IS BASED UPON
ANY AGREEMENT, NEGLIGENCE, WARRANTY, STRICT LIABILITY OR OTHER LEGAL OR
EQUITABLE THEORY; OR (2) ANY AMOUNTS OF DIRECT DAMAGES IN EXCESS OF THE
AGGREGATE OF THE FEES RECEIVED BY ONESOFT FROM ALLOY HEREUNDER, NOTWITHSTANDING
ANY FAILURE OF ESSENTIAL PURPOSES OF ANY LIMITED REMEDY.
LIABILITIES
ONESOFT SHALL NOT BE LIABLE FOR ANY AMOUNT EXCEEDING THE AMOUNT PAID BY
ALLOY FOR SERVICES DURING THE THIRTY (30) DAYS PRIOR TO THE EVENT GIVING RISE TO
THE ALLEGED CLAIM. EXCEPT FOR INDEMNIFICATION CLAIMS OR DISCLOSURE OF
CONFIDENTIAL INFORMATION, NEITHER PARTY SHALL BE LIABLE, WHETHER IN CONTRACT OR
TORT LAW (INCLUDING NEGLIGENCE) OR OTHERWISE, FOR ANY INDIRECT, INCIDENTAL OR
CONSEQUENTIAL DAMAGES (INCLUDING LOST SAVINGS, PROFIT OR BUSINESS INTERRUPTION
EVEN IF NOTIFIED IN ADVANCE OF SUCH POSSIBILITY) ARISING OUT OF, OR PERTAINING
TO THE SUBJECT MATTER OF THIS AGREEMENT, AND/OR ANY SCOPE(S) OF WORK ATTACHED
HERETO.
MODIFICATION, WAIVER & MISCELLANEOUS
This document, as well as other Scope(s) of Work that may be legally
attached hereto in the future, which are hereby incorporated by reference in
their entirety, constitute the entire agreement between the parties with respect
to the subject matter hereof, and supersede all other communications, whether
written or oral. This Agreement, and/or any Scope(s) of Work attached hereto,
may be modified or amended only by a writing signed by both parties, which may
be in the form of a Scope of Work. Any provision hereof found by a tribunal of
competent jurisdiction to be illegal or unenforceable shall be automatically
conformed to the minimum requirements of law and all other provisions shall
remain in full force and effect. Waiver of any provision hereof in one instance
shall not preclude enforcement thereof on future occasions. Headings are for
reference purposes only and have no substantive effect.
IN WITNESS WHEREOF, for adequate consideration and intending to be legally
bound, the parties hereto have caused this Agreement to be executed by their
duly authorized representatives.
ONESOFT CORPORATION ALLOY DESIGNS, INC.
By: By:
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Name: Name:
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Title: Title:
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Date: Date:
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