AMENDMENT TO MOBILE GATEWAY AGREEMENT FOR ADVANCE PAYMENTS
AMENDMENT
TO MOBILE GATEWAY AGREEMENT
FOR
ADVANCE PAYMENTS
THIS
AMENDMENT (the "Amendment") to the Mobile Gateway Agreement (defined below)
is
entered into as of the 1st day of July, 2005 (the "Amendment Effective Date")
by
and between Mobile Messenger Australia Pty Ltd. ("Mobile Messenger") and New
Motion ("Customer").
WHEREAS,
Mobile Messenger and Customer are parties to a Mobile Gateway Agreement dated
19th April 2005 (the "Mobile Gateway Agreement") pursuant to which Mobile
Messenger provides certain services to Customer; and
WHEREAS,
pursuant to the terms of the Mobile Gateway Agreement Mobile Messenger
currently pays to Customer a portion of the revenue Mobile Messenger
receives
from the applicable carrier for the sale of Customer content ("Customer Revenue
Share");
WHEREAS,
pursuant to the terms of the Mobile Gateway Agreement Mobile Messenger is only
obligated to pay Customer the Customer Revenue Share subsequent to when
(and
if) Mobile Messenger actually receives payment from the applicable carrier
for
the
sale of such Customer content;
WHEREAS,
Mobile Messenger and Customer desire to modify the payment terms
of
the Mobile Gateway Agreement effective as of the Amendment Effective Date
whereby
Mobile Messenger shall advance to Customer a portion of the Customer
Revenue
Share prior to Mobile Messenger's receipt of the revenue from the applicable
carrier
for the sale of Customer content as more particularly described
herein.
NOW,
THEREFORE, in consideration of the mutual covenants made herein, the Mobile
Gateway Agreement is amended as set forth below.
1. Defined
Terms. All
terms
used in this Amendment and not otherwise defined
herein, shall have the meanings ascribed to such terms in the Mobile Gateway
Agreement.
2. Advance.
Effective
on the Amendment Effective Date Mobile Messenger shall
advance to Customer a portion of the monthly fees which Mobile Messenger
anticipates
collecting from the applicable carriers related to the sale of Customer content
under the Mobile Gateway Agreement as follows:
(a)
For
each calendar month during the Term, subject to the provisions of this
Amendment, Mobile Messenger shall advance to Customer seventy percent (70%)
of
the fees Mobile Messenger would have owed to such Customer under the Mobile
Gateway Agreement
had Mobile Messenger received from the applicable carrier the fees attributable
to the sale of the Customer content for such month (the "Monthly Advance"),
net
of
the Mobile Messenger Fee, as defined below (the "Net Advance"). Such Net
Advance
shall be paid within the number of days of the end of such applicable month
as
specified (and selected by Customer) on Exhibit
A attached
hereto.
(b)
Customer acknowledges and agrees that the Monthly Advance is an advance
of the amounts Mobile Messenger may owe to Customer under the Mobile
Gateway
Agreement. Customer acknowledges and agrees that the Mobile Messenger Fee be
deducted from the Monthly Advance as consideration for the advance payment.
Accordingly, Mobile Messenger shall offset amounts owed to Customer under the
Mobile Gateway Agreement in an amount equal to the Monthly Advance Amount,
and
Mobile Messenger shall be entitled to retain all amounts owed to Customer under
the Mobile Gateway Agreement until such time as it has received actual payment
from carriers for Customer's content for the applicable month in an amount
equal
to the Monthly Advance. The
remaining balance payable to Customer under the Mobile Gateway Agreement will
be
paid
in accordance with its terms subject to the additional terms set forth
below.
3. Mobile
Messenger Fee. In
consideration for providing the advance as set forth
herein, Mobile Messenger shall retain, as a fee, the percentage of the aggregate
Monthly
Advance as specified on Exhibit
A attached
hereto and such fee shall be retained by Mobile Messenger and deducted from
the
Monthly Advance to be made by Mobile Messenger in connection with Section 2
hereof (the "Mobile Messenger Fee").
4. Advance
Election.
(a) Mobile
Messenger's Election. Notwithstanding
the foregoing, Mobile Messenger
may in its sole discretion at any time upon prior written notice to Customer
elect
to
revert back to (and therefore pay customer in accordance with) the payment
schedule
originally specified in the Mobile Gateway Agreement (instead of the advance
schedule specified in Section 2 of this Amendment) for any and all future
payments under the
Mobile Gateway Agreement. Upon termination of the Mobile Gateway Agreement,
the
payment schedule shall immediately revert back to the payment schedule
originally specified in the Mobile Gateway Agreement (instead of the advance
schedule specified in Section
2
of this Amendment) for all future payments due to Customer after the
termination
date of the Mobile Gateway Agreement.
(b)
Customer's
Election. For
each
calendar year, Customer may elect to have Monthly Advances made and if so
elected shall select the number of days after the end of the
month
in which such Monthly Advances shall be made as specified on Exhibit
A provided
that such election is made in a signed writing received by Mobile Messenger
at
least 10 days prior to the commencement of such year. The election made for
a
calendar year
shall automatically be renewed for and applied to each subsequent year unless
a
signed
writing rescinding such election is received by Mobile Messenger prior to the
commencement of the year in accordance with the foregoing. Any election by
Customer hereunder
shall apply to each Program in effect during the applicable year(s). Customer
may
not
change its election for the current calendar quarter during such calendar
quarter.
2
(c)
Days/Fee
Adjustments. The
days
after the end of the month in which such advances shall be made and the fee
charged by Mobile Messenger for Monthly Advances (as
specified on Exhibit
A attached
hereto) may be modified at any time by Mobile Messenger
provided that Mobile Messenger notifies Customer in writing of such change
at
least
30 days prior to the beginning of a new year.
5. Right
to Offset. The
parties agree that in the event that any of the applicable
carrier holds back any fees or levies a charge back or an adjustment to Mobile
Messenger
related to such content (collectively, the "Adjustment") and Mobile Messenger
has paid Customer the Monthly Advance or the Customer Revenue Share for such
month, then Mobile Messenger may offset against any amounts owed by Mobile
Messenger to Customer under the Mobile Gateway Agreement by the amount of any
such Adjustment.
6. Refund
of Advanced Monthly Payments. In
addition, the parties acknowledge
that if Mobile Messenger has made a payment hereunder and Mobile Messenger
is subsequently charged an Adjustment by a carrier related to such payment
and
the
amount of such Adjustment is greater than the amounts owed by Mobile
Messenger
to Customer under the Mobile Gateway Agreement, then Mobile Messenger may in
its
sole discretion elect to require Customer to refund the portion on such payment
which can not be fully offset under Section 5 hereof. Customer shall make such
refund payment within 30 days of such request.
7. Payment
to Customer of Refunded Amount. If
Mobile
Messenger has offset
any amounts (the "Offset Amount") in accordance with Section 5 hereof or
Customer
has refunded any payments in accordance with Section 6 hereof (the "Refunded
Amount") and Mobile Messenger subsequently receives the corresponding
payment
pertaining to such Offset Amount or Refunded Amount from the applicable
Carrier,
Mobile Messenger shall within 15 days of its receipt of such payment from the
applicable Carrier pay to Customer the Offset Amount or Refunded Amount, as
the
case may be.
8. Customer
Service Fee. For
each
customer service call, email, or other communication
received by Mobile Messenger from Customer pertaining to a Program and
not
solely related to the Platform (collectively, "Communication(s)"), Customer
shall pay
to
Mobile Messenger the fee set forth under the heading "Customer Service Fee"
below
(the "Customer Service Fee"). Mobile Messenger shall send Customer an invoice
at
the
end of each calendar month for the Customer Service Fee incurred by Customer
in
such calendar month and such invoice shall be due and payable by the Customer
within thirty (30) days following the end of such calendar month.
Customer Service Fee: | $7 per each Communication |
Such
fee
waived for the first fifty (50) Communications in each calendar
month.
3
9. Minimum
Monthly Guarantees. Customer
guarantees that the total list
price of all content billed successfully in a calendar month by the applicable
Carriers (the
"Monthly Retail Revenue") billed hereunder by such Carriers shall be at least
$1,000,000
per calendar month (the "Minimum Monthly Billing"). If the Monthly Retail
Revenue in any calendar month is less than the Minimum Monthly Billing, then
Mobile Messenger may, in its sole discretion, discontinue Customer's further
participation in the advanced payment program as specified in Section 2 of
this
Amendment.
10. Survival;
Counterparts; Full Authority. Sections
2, 3, 4 5, 6, 7 and 8 of this
Amendment shall survive termination or expiration of the Mobile Gateway
Agreement.
This Amendment may be executed in counterparts, each of which shall be an
original, but, when taken together, constitute but one and the same Amendment.
The signatories
represent and warrant that they have full authority to enter into this
Amendment
on behalf of the entity for which they have signed. Except as specifically
amended
hereby, the terms of the Mobile Gateway Agreement shall remain in full force
and
effect.
IN
WITNESS WHEREOF, the parties have executed this Amendment effective as
of
the
Amendment Effective Date.
MOBILE MESSENGER, AUSTRALIA PTY LTD. | CUSTOMER |
By: | By: /s/ Xxxxx Xxxxxx |
Name: | Name: Xxxxx Xxxxxx |
Title: | Title: CEO |
4
EXHIBIT
A
MONTHLY
ADVANCE
CHECK AND INITIAL
THE SELECTION
|
Days
after
Calendar
Month in
which payment
is due
|
Monthly
Gross
Retail
Revenue
|
Mobile
Messenger
Fee
as a percentage
of
Monthly
Advance
|
X Initials |
|
|
|
|
15
|
<
$1,000,000,
|
5.00%
|
>=
$1,000,000 & <
|
|
||
$2,000,000
|
4.20%
|
||
>=
2,000,000
|
3.35%
|
For
illustrative purposes only, if:
· |
Customer
elects, as specified on Exhibit
A, to
have the Monthly Advance paid within 15 days of the end of the month;
and
|
· |
The
estimated Customer Revenue Share is equal to $10,000 in such month,
|
then:
· |
Mobile
Messenger shall remit to Customer $6,650, the Net Advance (70% of
Customer's estimated Customer Revenue Share, or $7,000 Monthly
Advance,
minus Mobile Messenger's Fee or $350) within 15 days of the end
of the month;
|
· |
Mobile
Messenger shall retain $350 as its fee (5.00% [the fee which pertains
to a advance within 15 days of the end of the month as specified
on
Exhibit
A] of
$7,000 (which amount represents the Monthly Advance));
and
|
· |
Mobile
Messenger shall pay to Customer $3,000 ($10,000 Customer Revenue
Share, to the extent collected, less the $7,000 Monthly Advance) within
30
days of collection.
|