Exhibit 10.15
ASIA PACIFIC VENTURES CO.
CONSULTANT & REPRESENTATIVE AGREEMENT WITH
NETGRAVITY, INC.
This Consultant and Representative Agreement, herein referred to as
("Agreement"), is made by and between NetGravity, Inc., a California
corporation located at ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇
▇▇▇▇▇, ▇▇▇, ("NETGRAVITY"), and Asia Pacific Ventures Co., a California
limited liability company, located at ▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇▇▇ ▇▇▇, ▇▇▇▇▇
▇▇▇▇, ▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇, ▇▇▇ ("APV"). This Agreement is effective as of June
1, 1998 (the "Effective Date").
1. BACKGROUND
NETGRAVITY develops, manufactures and/or sells Ad Management Software
(together with all upgrades, enhancements, derivatives, modifications,
amendments and new product releases developed during the term of this
Agreement, the "Technology"). NETGRAVITY hereby appoints APV as
NETGRAVITY'S independent advisor and exclusive representative to promote
and assist in the structuring and establishment of business
relationships, including introducing NETGRAVITY'S Technology to
potential partners, distributors, and/or purchasers in the Territory.
The "Territory" is the geographical region of Asia, including but not
limited to the countries of Japan, Korea, Taiwan, and Hong Kong as well
as any area mutually agreed upon for which APV will have agent
responsibility.
2. MAJOR RESPONSIBILITIES OF APV
APV will use reasonable commercial efforts, conditional on NETGRAVITY'S
fulfillment of its responsibilities under Section 3 below, to:
(A) Lay out the strategic plan for establishing business relationships with
key partners in the Territory.
(B) Position NETGRAVITY with leading software vendors in the Territory for
marketing, distribution, and possibly localization of NETGRAVITY'S
Technology.
(C) Maintain effective relationships with NETGRAVITY business partners in
the Territory.
(D) Assist NETGRAVITY with the collection of market and technology
information and other matters in developing NETGRAVITY'S strategy in the
Territory.
(E) Generate and stimulate interest in the Technology and furnish information
to NETGRAVITY in regard to market developments, trends, and prospective
partners and/or purchasers of the Technology within the markets of the
Territory.
(F) Participate in sales promotion activities to benefit sales of the
Technology and assist and advise NETGRAVITY in this regard within the
markets of the Territory.
(G) Maintain the confidentiality of any materials or information provided to
APV that is clearly identified as confidential, nonpublic information,
and promptly return such materials at the request of NETGRAVITY.
The detailed responsibilities of APV and their implementation are set forth
in Exhibit A attached hereto:
3. MAJOR RESPONSIBILITIES OF NETGRAVITY
NETGRAVITY will use reasonable commercial efforts to:
(A) Endeavor to fulfill orders according to any agreement negotiated by
NETGRAVITY and individual vendors in the Territory.
(B) Provide APV with appropriate corporate marketing, sales and technical
information and assistance regarding the Technology, and keep APV
informed of changes in the corporate strategy and/or Technology.
(C) Be directly responsible for all expenses of catalogues, samples,
advertisements, exhibitions and seminars created by APV for sales
promotion of NETGRAVITY or the Technology.
(D) Once APV has successfully established a business relationship with a key
partner in the Territory for NETGRAVITY, NETGRAVITY will provide
APV with a copy of the final signed NETGRAVITY/Partner agreement.
4. TERM OF AGREEMENT
This Agreement will become effective on the Effective Date and will
expire seven (7) months thereafter, unless (i) extended by mutual
agreement, (ii) terminated as provided elsewhere in this Agreement, or
(iii) terminated upon thirty (30) days written notice by either party to
the other, provided, however, that any right of APV to compensation
earned or accrued hereunder will survive any such expiration or
termination.
5. PAYMENT TERMS
(A) MONTHLY RETAINER FEE: NETGRAVITY agrees to pay APV a Monthly Retainer
Fee (with the first such fee due on the Effective Date) in advance for
the services outlined in this Agreement. The Monthly Retainer Fee is for
the following time period and amount:
June 1, 1998 - December 31, 1998 $10,000 per month
NETGRAVITY agrees to pay APV the above described monthly Retainer Fees
immediately upon receipt of invoice. NETGRAVITY agrees to pay APV an
additional fee of 5% of the total Monthly Retainer Fee if payment is
received by APV later than thirty (30) days from the invoice date. All
amounts payable to APV under this Agreement must be made in U.S.
currency in the form of a written check, or by wire transfer to:
Cupertino National Bank (ABA #▇▇▇▇▇▇▇▇▇) in the bank account of APV
numbered 003082458, or to such other account as APV shall designate.
(B) COMMISSION FOR FUNDING ARRANGEMENTS: NETGRAVITY agrees that should any
investment (equity, debt or any combination thereof), acquisition, or
joint venture be consummated, or any manufacturing, production,
distribution or joint development agreements(s) or any other business
arrangements be entered into by NETGRAVITY as a result of introductions
arranged by, negotiations performed by, or other efforts of APV,
NETGRAVITY will pay to APV a commission on the total consideration
actually received or benefits actually derived from such transaction(s)
by NETGRAVITY at any time. The commission rate will be calculated, and
the other terms of payment will be determined in accordance with Exhibit
B hereto.
(C) REVENUE COMMISSION: PURCHASE ORDER AND DELIVERY: NETGRAVITY agrees to
pay APV a commission on actual sales, defined as contracted bookings,
in the Territory during the period covered under this agreement. The
commission rate will be calculated in accordance with Exhibit B.
APV is not authorized to accept any purchase orders on behalf of
NETGRAVITY or to otherwise finalize any business agreements and/or sales
of the Technology. NETGRAVITY will be solely responsible for order
acceptance, product assembly, packaging, shipping, delivery, export
compliance, warranty arrangements and all related responsibilities in
connection with the sale of Technology in the Territory.
(D) COMMISSION PAYMENTS, REPORTS: NETGRAVITY will directly invoice all
contracts, in U.S. dollars, to its customers in the Territory. All
commission payments payable with regard to any funds received by
NETGRAVITY will be due and payable to APV within thirty (30) days of
quarter end.
(E) REIMBURSEMENT OF EXPENSES: NETGRAVITY will reimburse APV for any
reasonable traveling and entertainment (T&E) expenses incurred by APV in
fulfilling its duties hereunder, subject to any exceptions expressly
stated in this Agreement or communicated in writing to APV prior to
incurring such expenses. APV will not make trips or incur other
significant expenses without receiving prior approval from NETGRAVITY.
T&E includes, but is not limited to, airfare, hotel, taxi, bus,
limousine, rental car, meals, telephone, and facsimile charges. Either
party may propose the translation of documents into one or more
languages of the Territory, to assist APV in fulfilling its duties, and
NETGRAVITY will pay APV for translation of any documents NETGRAVITY
authorizes to be so translated. APV will provide NETGRAVITY with
accurate and reasonably detailed invoices, including receipts for
expenses incurred, and NETGRAVITY will pay APV for any of the above
expenses in accordance with such invoices immediately upon their receipt.
6. RELATIONSHIP OF PARTIES
NETGRAVITY and APV agree that APV is an independent contractor.
Personnel employed by APV who perform duties related to the Agreement
will remain under the supervision, management, and control of APV. APV
will have no authority, without NETGRAVITY'S consent, to sign or
otherwise enter into any kind of contract, undertaking or agreement on
behalf of NETGRAVITY, or to make any promise, warranty or representation
with respect to NETGRAVITY Technology except strictly in accordance with
NETGRAVITY materials provided to APV, and NETGRAVITY will not be bound
thereby unless it expressly agrees otherwise. NETGRAVITY may deal
directly with customers in the Territory. If a customer, distributor or
other business partner introduced by APV chooses to deal directly with
NETGRAVITY, NETGRAVITY will notify and consult with APV.
To Permit APV to freely devote its skilled personnel to services
hereunder, NETGRAVITY agrees that for the term of this Agreement and one
(1) year thereafter, it will not solicit or induce (i) any employee or
independent contractor of APV or (ii) any former employee of APV who was
employed by APV not less than one (1) year prior to the date of
solicitation, to terminate or breach an employment, contractual or other
relationship with APV or to become an employee of NETGRAVITY. In
addition, NETGRAVITY will not retain or accept services from anyone that
it has reason to know is using technology, know-how or information that
is proprietary to APV.
7. ASSIGNMENT OF AGREEMENT
Neither this Agreement nor any rights or obligations of either party
hereunder may be assigned without prior written consent of the other
party. Subject to the provision regarding assignments, the Agreement
will be binding upon the successors and assigns of the respective
parties.
8. TERMINATION
This Agreement may be terminated by either party upon written notice to
the other if any of the following occur: material default of this
Agreement (unless cured within thirty (30) days), receivership,
insolvency or assignment for the benefit of creditors of the other party.
9. REPRESENTATIONS OF NETGRAVITY
NETGRAVITY represents that it has the power and authority to enter into
this Agreement, and that this Agreement does not violate the terms of
any other agreement or understanding of which it is a party. NETGRAVITY
further represents that (i) it has all legal right and authority to
offer the Technology for sale in the Territory, (ii) the sale and use of
the Technology are in the manner contemplated by NETGRAVITY'S published
specifications, and NETGRAVITY and Technology literature and
representations, will not violate any third party rights, and (iii) such
literature and representations of NETGRAVITY may be relied upon by APV
in performing its duties hereunder. It is understood that APV will rely
on representations of NETGRAVITY in its dealings with third parties
concerning NETGRAVITY. NETGRAVITY hereby indemnifies and holds harmless
APV from any cost, expense, liability or loss incurred by APV as a
result of any violation of the representations and warranties.
10. LIMITATION OF LIABILITY
In no event will APV be liable for any special, indirect, incidental or
consequential damages, or any damages resulting from loss of profits
arising out of or in connection with this Agreement or the services
performed hereunder, whether in an action based on contract or tort
including any action for negligence. APV will not be liable for any
damages other than for the gross negligence or intentional misconduct of
its agents. In no event will APV'S total liability for any damages in any
action arising out of or in connection with this Agreement exceed the
total amount paid to APV by NETGRAVITY under this Agreement with regard
to the particular transaction that caused the damages or that is the
subject matter of the cause of action.
11. NOTICES
Any notice, request, demand, or other communication required or
permitted under this Agreement will be deemed to be properly given three
(3) days after dispatch through the U.S. Postal Service, postage
prepaid, or one (1) day after dispatch with charges prepaid through an
established and reputable national courier, or when made by confirmed
facsimile, addressed to the respective party at the address stated above
in this Agreement, or at such other address as that party may designate
in writing in the future.
12. GOVERNING LAW
This Agreement will be construed according to, and the rights of the
parties will be governed by, the laws of the State of California as
applied to agreements entered into and performed wholly within
California by its residents.
13. DISPUTE RESOLUTION: ARBITRATION
At the written request of a party, each party shall appoint a
knowledgeable, responsible representative to meet and negotiate in good
faith to resolve any dispute arising under this Agreement. The parties
intend that these negotiations be conducted by non-lawyer, business
representatives. The discussions shall be left to the discretion of the
representatives. The representatives may agree to use any alternative
dispute resolution procedures such as mediation to assist in the
negotiations. Discussions and correspondence among the representatives
for purposes of these negotiations shall be treated as confidential
information developed for purposes of settlement, shall be exempt from
discovery and production, and shall not be admissible in the arbitration
described below or in any lawsuit without the concurrence of all
parties. Documents not prepared for purposes of the negotiations are not
so exempted and may, if otherwise admissible, be admitted in evidence in
the arbitration or lawsuit.
If the negotiations do not resolve the dispute within sixty (60) days of
the initial written request, the dispute will be submitted to binding
arbitration under the Commercial Arbitration Rules of the American
Arbitration Association presided over by a single arbitrator selected
pursuant to those rules. A party may demand such arbitration, in
accordance with the procedures set out in those rules, at the office of
the American Arbitration Association closest to the other party.
Discovery shall be limited to no more than two (2) depositions, and a
combined total of not more than twenty-five (25) individual
interrogatories, requests for admission and demands for document
production, unless otherwise agreed. Each party shall bear its own cost
of these procedures (except document reproduction, which will be
reimbursed by the other party), and share equally in the expense of the
arbitrator.
14. ENTIRE AGREEMENT
This Agreement sets forth the entire Agreement between the parties with
regard to the subject matter thereof. This Agreement replaces any
representations or statements, oral or written, made about the subject
matter of this Agreement. This Agreement may be amended only by a
written agreement signed by both parties. If any of the provisions of
this Agreement are found or deemed by a court of competent jurisdiction
to be invalid or unenforceable, the parties intend that they be severed
from the remainder of this Agreement, and not cause its invalidity or
unenforceability. A party's waiver of any breach of a provision of this
Agreement will not constitute a waiver or any other provision, or of any
other breach of the same provision.
IN WITNESS WHEREOF, the parties have caused this Consultant & Representative
Agreement to be executed by their duly authorized representatives as of the
Effective Date:
/s/ ▇▇▇▇▇▇▇ Tall /s/ ▇▇▇▇▇ ▇▇▇▇▇
------------------------------------- ---------------------------------
▇▇▇▇▇▇▇ Tall ▇▇▇▇▇ ▇▇▇▇▇
Partner Chief Financial Officer
ASIA PACIFIC VENTURES CO. NETGRAVITY, INC.
DATE: May 13, 1998 DATE: May 13, 1998
-------------------------------- ----------------------------
EXHIBIT A
IMPLEMENTATION OF TERRITORY PLAN
June 1, 1998 ~ December 31, 1998
--) Do final evaluation of potential partners
- clarify objectives with partners
- narrow the list of potential partners and consider other potential
partners
- follow up with potential partners to ensure continued interest
--) Visit the Territory to negotiate distribution and licensing agreements
with strategic partners
- solicit proposals from strategic partners
- negotiate deal terms
--) Facilitate start-up of partnership and dialogue between NETGRAVITY and
partners
- help coordinate press announcements
- monitor initial progress of distributors
- assist NETGRAVITY in follow-up with primary distributors
- manage processes and relationship between NETGRAVITY and partners
--) Establish appropriate pricing plan for Territory
- work with NETGRAVITY to understand costs
- work with NETGRAVITY to finalize pricing for Territory
- announce pricing in Territory
--) Facilitate sales goals
- work with NETGRAVITY to set CY98 sales goals
- define key accounts to generate business over the next three (3)
quarters
- help get into accounts at high levels
- assist in closing
--) Facilitate revenue goals
- work with NETGRAVITY to set revenue goals
- work with NETGRAVITY to implement revenue goals
--) Facilitate establishment of NETGRAVITY operations in the Territory
- work with NETGRAVITY to set staffing goals
- work with NETGRAVITY to hire key staffs
- work with NETGRAVITY to establish an office in the Territory
- work with NETGRAVITY to finalize establishing Japan operations
EXHIBIT B
(A) COMMISSIONS FOR EQUITY FUNDING/FINANCING (U.S. & TERRITORY): In the
event that NETGRAVITY chooses to raise funds from potential strategic
partners in the Territory by selling equity in the parent organization,
NETGRAVITY requests that APV assist in this effort, and NETGRAVITY (with
assistance from APV) structures, negotiates, and closes a financing
agreement, NETGRAVITY will pay APV a commission for any financing agreed
to and signed between NETGRAVITY and a corporation in the Territory.
This fee will be based on the following schedule and will commence upon
the signing of a financing agreement between NETGRAVITY and a third
party in the Territory:
Amount Received by NETGRAVITY APV Commission
---------------------------- --------------
First $5,000,000 3.0%
Above $5,000,000 2.0%
In the event that APV helps NETGRAVITY raise capital by selling equity
in NETGRAVITY's joint venture or subsidiary in the Territory (as
distinguished from equity in NETGRAVITY's parent organization), this fee
will be based on the following schedule and will commence upon the
signing of a financing agreement between NETGRAVITY and a third party in
Territory:
Amount Received by NETGRAVITY APV Commission
---------------------------- --------------
First $5,000,000 6.0%
Above $5,000,000 4.0%
(B) COMMISSIONS FOR JOINT TECHNOLOGY DEVELOPMENT OR NON-RECURRING
ENGINEERING (NRE): In the event that NETGRAVITY enters into a contract
for the joint development of technology as a result of introduction and
efforts by APV, NETGRAVITY shall pay to APV a commission on any payments
made to NETGRAVITY in connection with such contract based on the
following schedule:
Amount Received by NETGRAVITY APV Commission
---------------------------- --------------
First $5,000,000 3.0%
Above $5,000,000 2.0%
These schedules will remain in place for a period of three (3) years
form the first receipt of funds to NETGRAVITY as a result of the signing
of any funding agreement.
(C) REVENUE COMMISSION: For the term of the agreement, NETGRAVITY will pay
APV a 5% commission on all contracted bookings as a result of APV's
assistance in the establishment of strategic partnering relationships in
the Territory.
