INTELLIGENT INFORMATION INCORPORATED SERVICE RESELLER AGREEMENT
THIS AGREEMENT is entered into by and between Intelligent Information
Incorporated, a Delaware corporation (hereinafter referred to as "III") and
Omnipoint Communications Inc., a Delaware Corporation (hereinafter referred to
as the "Reseller"). The effective date of this agreement is November 8, 1996.
WHEREAS, III owns computer software and has related procedures
(hereinafter referred to as "Systems") and by utilizing these Systems provides
"Products" in the form of "Services" and "Packages" that deliver "intelligent
information" based on data from various sources (hereinafter referred to as
"Information Providers") to text displaying wireless devices either at
prearranged times or as data conditions change by prearranged parameters; and
WHEREAS, Reseller is desirous of providing these Products to customers of
its PCS services and to customers of PCS networks owned or managed by entities
controlling, controlled by, or under common control with Reseller (which
customers are hereinafter referred to as "Subscriber(s)"); and
WHEREAS, the parties agree to enter into certain arrangements, as set
forth herein, for that purpose;
NOW, THEREFORE, for good and valuable consideration, the receipt and
adequacy of which is hereby confessed and acknowledged, it is agreed as follows;
1. The term of this agreement is three (3) years beginning on the effective date
of this agreement. This entire agreement shall automatically renew itself
annually for additional one (1) year terms unless either party sends notice of
termination to the other party sixty (60) days before the anniversary of the
effective date of this agreement, by certified mail.
2. Reseller shall provide and maintain computer access ports into its systems
for use by III in delivering messages containing information addressed to
Reseller's Subscribers and for sending customer profile updates to III. The
protocol used on these ports shall be mutually agreeable to Reseller and III.
Reseller shall reimburse III for the communications charges III actually and
reasonably incurs to deliver messages to Reseller's computer access port and to
receive customer activations and updates as contemplated by this Agreement.
3. Reseller shall deliver a subscriber agreement in a form mutually agreed to by
the parties to each Subscriber (hereinafter referred to as the "Subscriber
Agreement", hereto annexed as Appendix A) prior to activation of service along
with any description of the services delivered to the Subscribers. Reseller may
activate or support more than one wireless device with the same identification
number, but payment for the charges associated with each such device shall be in
accordance with Appendix B of this Agreement
RESELLER HEREBY AGREES TO INDEMNIFY AND HOLD, III AND/OR ANY INFORMATION
PROVIDERS HARMLESS FROM AND AGAINST ANY AND ALL DAMAGES, LOSSES, OR EXPENSES
SUFFERED OR PAID AS A RESULT OF ANY CLAIMS, DEMANDS, SUITS, CAUSES OF ACTION,
PROCEEDINGS, AWARDS, JUDGMENTS, AND LIABILITIES (INCLUDING REASONABLE ATTORNEY'S
FEES) INCURRED IN LITIGATION, ARBITRATION OR OTHERWISE, ASSESSED, INCURRED, OR
SUSTAINED BY OR AGAINST III AND/OR ANY INFORMATION PROVIDERS BY REASON OF
RESELLER'S FAILURE TO DELIVER THE SUBSCRIBER AGREEMENT TO ANY SUBSCRIBER.
RESELLER FURTHER AGREES TO REIMBURSE III FOR ALL LOSSES, COSTS, DAMAGES AND
EXPENSES INCURRED, INCLUDING, BUT NOT LIMITED TO, REASONABLE ATTORNEY'S FEES AND
COURT COSTS, IN OBTAINING INDEMNIFICATION FROM RESELLER. RESELLER FURTHER AGREES
TO DISTRIBUTE FROM TIME-TO-TIME MODIFIED OR SUPPLEMENTED SUBSCRIBER AGREEMENTS
AS REQUIRED BY THE INFORMATION PROVIDERS.
II. HEREBY AGREES TO INDEMNIFY AND HOLD RESELLER HARMLESS FROM AND AGAINST
ANY AND ALL DAMAGES, LOSSES, OR EXPENSES SUFFERED OR PAID AS A RESULT OF ANY
CLAIMS, DEMANDS, SUITS, CAUSES OF ACTION, PROCEEDINGS, AWARDS, JUDGMENTS, AND
LIABILITIES (INCLUDING REASONABLE ATTORNEY'S FEES) INCURRED IN LITIGATION,
ARBITRATION OR. OTHERWISE, ASSESSED, INCURRED, OR SUSTAINED BY OR AGAINSTRESELLER
CONFIDENTIAL TREATMENT REQUESTED
Brackets have been used to identify information which has been omitted from this
exhibit pursuant to a request for confidential treatment and filed separately
with the Securities and Exchange Commission. 1
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BY ANY THIRD PARTY, INCLUDING INFORMATION PROVIDERS OR THEIR AGENTS, EXCEPT
THOSE INFORMATION PROVIDERS OR AGENTS DIRECTLY UNDER CONTRACT BY RESELLER,
ALLEGING THAT THE MARKETING, DISTRIBUTION, TRANSMISSION OR USE OF THE PRODUCTS
OR SERVICES CONTEMPLATED BY THIS AGREEMENT CONSTITUTES AN INFRINGEMENT OF
COPYRIGHT, TRADEMARK RIGHT OR OTHER INTELLECTUAL PROPERTY RIGHT; DEFAMATION;
INFRINGEMENT OF ANY RIGHT OF PRIVACY OR PUBLICITY; OR ANY SIMILAR RIGHT OR
PRIVILEGE, III FURTHER AGREES TO REIMBURSE RESELLER FOR ALL LOSSES, COSTS,
DAMAGES, AND EXPENSES INCURRED, INCLUDING, BUT NOT LIMITED TO, REASONABLE
ATTORNEY'S FEES AND COURT COSTS, IN OBTAINING INDEMNIFICATION FROM III.
EITHER PARTY'S OBLIGATION TO INDEMNIFY AGAINST ANY SUCH CLAIM IS
CONTINGENT UPON RECEIPT OF PROMPT WRITTEN NOTICE OF ANY EVENT GIVING RISE TO AN
OBLIGATION TO INDEMNIFY AND GRANT OF THE RIGHT TO DEFEND AND SETTLE ANY SUCH
CLAIM BY THE INDEMNIFIED PARTY.
4. Prior to the fifth (5th) day of each month this agreement is effective,
Reseller shall provide to III a count of all Subscribers not on Resellers Basic
or entry level service plan.
5. Prior to the last day of the month, based on the report described in
paragraph 4, Reseller shall remit in U.S. dollars, using a form or method
acceptable to III, payment for its Subscribers. The amount of the payment due is
the total number of Subscribers, without regard for usage, times the rate per
Subscriber for each Package and Service, plus the setup charge for each new
Subscriber, plus message charges. The Package and Service rates per Subscriber,
setup charges, message charges and associated conditions are as listed in
Appendix B. Any preexisting Reseller related Subscribers, e.g., executives,
demos, etc., are not be subject to the setup fee provisions of Appendix B,
however each one of these Subscribers will be assigned to a Package or Service,
subject to the appropriate charges, upon execution of this Agreement.
6. III shall have the right, at its sole discretion to sell or license the
Products to any other person or company for any purpose. Computer software
systems provided by III to Reseller shall remain the sole property of III. Such
software shall not be reproduced, except for backup purposes or use at multiple
Reseller locations, or distributed by Reseller. In the event of the termination
of this Agreement all software provided to Reseller by III shall be returned toIII.
7. Reseller shall take appropriate measures to insure that the following
copyright notice, and those defined for each Product or Service in Appendix B,
are made known to all Subscribers, including displaying such copyright notice in
all instructions for use of the Packages and Services.
"COPYRIGHT NOTICES: News Alert System, Sports Alert System, Weather Alert System
and Quote Alert System Copyright 199__ Intelligent Information Incorporated. All
rights reserved. Copyright 19__ Dow Jones & Company, Inc. All Rights Reserved.
Distributed by Intelligent Information Incorporated under license from Dow Jones
& Company, Inc. The headlines (Company News) contained in this Intelligent
Information Service are the sole and exclusive property of Dow Jones & Company,
Inc. and are protected by copyright. Such headlines may not be copied,
republished or redistributed without the prior written consent of Dow Jones &
Company, Inc."
Reseller agrees to submit to III for its approval, all advertising or other
promotional materials that reference any of the Products or any understanding or
relationship contemplated under this Agreement no fewer than 5 days before
proposed use. III's approval will not be unreasonably withheld, and shall be
deemed granted unless III within such 5 day period notifies Reseller of the
reasons for rejection and proposes reasonable changes which, if adopted, would
render the request acceptable.
8. Resell acknowledges that III is required to provide certain information
relating to the usage of the Products to the Information Providers. Such
information may include:
(a) the number of Subscribers registered in III Systems at midnight of
each day;
(b) the number and types of messages sent by III Systems;
CONFIDENTIAL TREATMENT REQUESTED
Brackets have been used to identify information which has been omitted from this
exhibit pursuant to a request for confidential treatment and filed separately
with the Securities and Exchange Commission. 2
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(c) the number and types of Subscriber requests registered in III
Systems; and
(d) any additional information as required by the Information Providers,
from time-to-time. III warrants to Reseller that any such data pertaining to
Subscriber identification will remain proprietary and confidential with the
exception of satisfying III's reporting requirements to the Information
Providers or their agents.
(e) Reseller shall grant access to III, acting on its behalf or on behalf
of the Information Providers, or their agents, to Reseller's business records
related to III's Services, during regular business hours and upon three (3) days
written notice to Reseller, for the purpose of verifying the extent of
distribution of Products to Subscribers. Any such data shall remain the sole and
exclusive property of Reseller and shall be used by III solely for the purpose
of confirming Reseller's distribution of III's Services to determine the payment
due by Reseller. Reseller agrees to maintain such records for not less than
three (3) years.
Without limiting III's other obligations under this Agreement, all
information obtained by III in the course of inspecting Reseller's records shall
be deemed Reseller's Confidential Information. III shall only provide each
Information Provider and its agents with data sufficient to confirm the extent
to which Reseller has supplied the Products of such Information Provider to
Subscribers of Reseller, and shall not otherwise provide the same with any
proprietary or confidential information of Reseller without Reseller's express
written consent.
9. Reseller shall designate a customer representative to coordinate and review
III's process of updating changes to Subscriber information, however, III will
be responsible for receiving and effecting any additions, changes or deletions
in Subscriber information within twenty four (24) hours of receipt of written
requests from the Reseller. III will maintain a facsimile machine for receipt of
such requests.
10. III AND THE INFORMATION PROVIDERS SHALL HAVE NO LIABILITY TO RESELLER FOR
INDIRECT, CONSEQUENTIAL, EXEMPLARY, SPECIAL, INCIDENTAL OR PUNITIVE DAMAGES EVEN
IF THEY HAVE BEEN ADVISED OF THE POSSIBILITIES OF SUCH DAMAGES WITH RESPECT TO
THEIR OBLIGATIONS UNDER THIS AGREEMENT. IN ANY EVENT, THE LIABILITY OF III AND
THE INFORMATION PROVIDERS TO RESELLER FOR ANY REASON AND UPON ANY CAUSE OF
ACTION SHALL BE LIMITED TO GENERAL MONEY DAMAGES IN AN AMOUNT NOT TO EXCEED THE
AMOUNT OF THREE MONTH'S PAYMENTS FOR SUBSCRIBERS RECEIVED BY III. THIS
LIMITATION APPLIED TO ALL CAUSES OF ACTION IN THE AGGREGATE, INCLUDING, WITHOUT
LIMITATION, BREACH OF CONTRACT, BREACH OF WARRANTY, NEGLIGENCE, STRICT
LIABILITY, MISREPRESENTATION AND OTHER TORTS.
11. Reseller shall not assign this Agreement without III's prior written
consent. Notwithstanding the foregoing, Reseller shall be entitled without III's
consent to assign or transfer its rights under this Agreement, to any person or
business entity which is a parent, or subsidiary of Reseller, controls or is
controlled by or under common control with Reseller, is merged or consolidated
with Reseller or purchases more than fifty (50%) interest in the ownership or
assets of Reseller to which this Agreement relates.
12. Either party may terminate this Agreement upon not less than thirty (30)
days prior written notice to the other parties, i.:
(A) The other party makes an assignment for the benefit of its creditors;or
(B) Any petition shall be filed by or against such other party under any
Section or Chapter of the Federal Bankruptcy Act as amended or as may be amended
or any similar law or statute of the United States or any state thereof, which
is not dismissed within thirty five (35) days after filing; or
(C) Reseller shall have the right to terminate this Agreement by written
notice to take effect immediately if III's Systems fail to perform or become
defective, and such defect(s) or failure(s) cannot be remedied by III within ten
(10) working days.
13. III shall have the right to terminate this Agreement by written notice to
take effect immediately if Reseller fails to make any payment when due and does
not cure such failure within ten (10) days of III's notice thereof and,
effective upon such termination, III shall have no further obligation to perform
under this Agreement.
CONFIDENTIAL TREATMENT REQUESTED
Brackets have been used to identify information which has been omitted from this
exhibit pursuant to a request for confidential treatment and filed separately
with the Securities and Exchange Commission. 3
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14. The mailing address of III is One Dock Street, Suite 500, Stamford, CT
06902. The mailing address of Reseller is specified below. All notices of
default or failure of obligation hereunder shall be mailed to the other party
first class, certified mail, return receipt requested to the address of III and
Reseller set forth in this Agreement. Either Party may change the address for
receipt of notice by providing written notice to the other party.
15. This Agreement shall be governed and construed in accordance with the laws
of the State of New York.
16. III warrants with respect to each of the Services and Products it supplies
pursuant to this Agreement that (i) such Service or Product shall be available
to Reseller 99.99 percent of each day during the term of this Agreement
(excluding scheduled downtime for maintenance); (ii) the content of such Service
or Product shall be delivered to Reseller's computer data port as contemplated
by Section 2 of this Agreement with 99.9 percent accuracy within two minutes of
III's receipt of the content of the same from the applicable information
Provider, provided any failure to do so is not caused by reseller's failure.
III warrants that neither Services and Products, nor Reseller's marketing,
distribution, transmission and use of the same as contemplated by this
Agreement, will infringe any copyright, trademark or other intellectual property
right; in fringe any right of privacy or publicity; or give rise to any claim of
defamation or similar claims of any third party, including any Information
Providers or their agents.
17. III represents that the terms set forth in this Agreement (including
pricing) are as favorable to Reseller as the terms previously granted to any
other provider of wireless telecommunications services operating in whole or
part in the same service area with respect to which Reseller receives the
Services or Products pursuant to this Agreement and shall be so for as long as
the Services and Products and their bundling in Reseller's packages remains
materially unchanged. III covenants and agrees that, in the event III extends
any more favorable terms or conditions to any such other provider, III shall
promptly notify Reseller of the same and, at Reseller's option, shall grant
those same terms and conditions to Reseller effective as of the date such terms
were extended to the other provider.
18. III agrees that any confidential or proprietary information disclosed by
Reseller to III, including, without limitation, any information or data
regarding the Subscribers such as their names, information regarding their
parameters or their preferences, shall remain the sole and exclusive property of
Reseller. III shall not disclose any such information, to any third party,
including the Information Providers and their agents, except as otherwise
provided in this Agreement, unless (i) Reseller consents to such disclosure in
writing, and (ii) III has entered into an agreement with that party that
requires them to keep such information confidential.
IN WITNESS WHEREOF, the parties have hereto hereby execute this Agreement.
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Authorized Reseller Signature Authorized Signature
/s/ Harry Plonskier /s/ Stephen G. Maloney
- ------------------------------------- ------------------------------------- Name Name
HARRY PLONSKIER STEPHEN G. MALONEY
- ------------------------------------- ------------------------------------- Title Title
VICE PRESIDENT PRESIDENT
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Date Date 11/8/96 11/8/96
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Reseller's Mailing Address
49 Old Bloomfield Road
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Mountain Lakes, NJ 07046
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