Document:

fs12010ex10iv_appsgenius.htm

Exhibit 10.4

 

 

By Your clicking to agree to this Schedule 2, which is hereby offered to You by Apple, You agree with Apple to amend that certain iPhone Developer Program License Agreement currently in effect between You and Apple (the “Agreement”) to add this Schedule 2 thereto (supplanting any existing Schedule 2).  Except as otherwise provided herein, all capitalized terms shall have the meanings set forth in the Agreement.

Schedule 2

 

1. Appointment of Agent and Commissionaire

 

1.1 You hereby appoint Apple and Apple Subsidiaries (collectively “Apple”) as: (i) Your agent for the marketing and delivery of the Licensed Applications to end-users located in those countries listed on Exhibit A, Section 1 to this Schedule 2; and (ii) Your commissionaire for the marketing and delivery of the Licensed Applications to end-users located in those countries listed on Exhibit A, Section 2 to this Schedule 2, during the Delivery Period. You hereby acknowledge that Apple will market and make the Licensed Applications available for download by end users through one or more App Stores, but for, and on Your behalf. For purposes of this Schedule 2, the term "Licensed Application" includes any additional functionality, content or services sold by You from within a Licensed Application using the In App Purchase API, and "end-user" includes actual end-users of Licensed Applications as well as authorized institutional customers, such as educational institutions approved by Apple, which may acquire the Licensed Applications for the end-users.

 

1.2 In furtherance of Apple’s appointment under Section 1.1 of this Schedule 2, You hereby authorize and instruct Apple to:

(a) market, solicit and obtain orders on Your behalf for Licensed Applications from end-users located in the countries listed on Exhibit A;

(b) provide hosting services to You, in order to allow for the storage of, and end-user access to, the Licensed Applications;

(c) make copies of, format, and otherwise prepare Licensed Applications for acquisition and download by end-users, including adding the Security Solution;

(d) allow end-users to access copies of the Licensed Applications, so that end-users may acquire from You and electronically download those Licensed Applications, Licensed Application Information, and associated metadata to end-users through one or more App Stores;

(e) issue invoices for the purchase price payable by end-users for the Licensed Applications;

(f) use (i) screen shots and/or up to 30 second excerpts of the Licensed Applications; (ii) trademarks and logos associated with the Licensed Applications; and (iii) Licensed Application Information, for promotional purposes in marketing materials and gift cards, excluding those portions of the Licensed Applications, trademarks or logos, or Licensed Application Information which You do not have the right to use for promotional purposes, and which You identify in writing at the time that the Licensed Applications are delivered by You to Apple under Section 2.1 of this Schedule 2, and use images and other materials that You may provide to Apple, at Apple’s reasonable request, for promotional purposes in marketing materials and gift cards; and

(g) otherwise use Licensed Applications, Licensed Application Information and associated metadata as may be reasonably necessary in the marketing and delivery of the Licensed Applications in accordance with this Schedule 2. You agree that no royalty or other compensation is payable for the rights described above in Section 1.2 of this Schedule 2.

1.3 The parties acknowledge and agree that their relationship under this Schedule 2 is, and shall be, that of principal and agent, or principal and commissionaire, as the case may be, as described in Exhibit A, Section 1 and Exhibit A, Section 2, respectively, and that You, as principal, are, and shall be, solely responsible for any and all claims and liabilities involving or relating to, the Licensed Applications, as provided in this Schedule 2. The parties acknowledge and agree that Your appointment of Apple as Your agent or commissionaire, as the case may be, under this Schedule 2 is non-exclusive.

1.4 For purposes of this Schedule 2, the “Delivery Period” shall mean the period beginning on the Effective Date of the Agreement, and expiring on the last day of the Agreement or any renewal thereof; provided, however, that Apple’s appointment as Your agent and commissionaire shall survive expiration of the Agreement for a reasonable phase-out period not to exceed thirty (30) days.

 

 

  

  

  

 

 

2. Delivery of the Licensed Applications to Apple

2.1 You will deliver to Apple, at Your sole expense, using the iTunes Connect site, the Licensed Applications, Licensed Application Information and associated metadata, in a format and manner prescribed by Apple, as required for the delivery of the Licensed Applications to end-users in accordance with this Schedule 2. Metadata You deliver to Apple under this Schedule 2 will include: (i) the title and version number of each of the Licensed Applications; (ii) the countries You designate, in which You wish Apple to allow end-users to download those Licensed Applications; (iii) any copyright or other intellectual property rights notices; and (iv) Your end-user license agreement (“EULA”), if any, in accordance with Section 4.2 of this Schedule 2.

 

2.2 All Licensed Applications will be delivered by You to Apple using software tools, a secure FTP site address and/or such other delivery methods as prescribed by Apple.

 

2.3 You hereby certify that all of the Licensed Applications You deliver to Apple under this Schedule 2 are authorized for export from the United States to each of the countries listed on Exhibit A hereto, in accordance with the requirements of the United States Export Administration Regulations, 15 C.F.R. Parts 730-774. Without limiting the generality of this Section 2.3, You certify that (i) none of the Licensed Applications contains, uses or supports any data encryption or cryptographic functions; or (ii) in the event that any Licensed Application contains, uses or supports any such data encryption or cryptographic functionality, You have qualified that Licensed Application for export as a “mass market encryption item” in accordance with section 742.15(b)(2) of the Export Administration Regulations, and You will provide Apple with a PDF copy of the mass market export classification ruling (CCATS) issued by the United States Commerce Department, Bureau of Industry and Security for that Licensed Application. For purposes of determining the proper export classification and export control status of each Licensed Application, You should consult the export compliance decision tree in the iTunes Connect tool. You acknowledge that Apple is relying upon Your certification in this Section 2.3 in allowing end-users to access and download the Licensed Applications under this Schedule 2. Except as provided in this Section 2.3, Apple will be responsible for compliance with the requirements of the Export Administration Regulations in allowing end-users to access and download the Licensed Applications under this Schedule 2.

 

3. Delivery of the Licensed Applications to End-Users

 

3.1 You acknowledge and agree that Apple, in the course of acting as agent and/or commissionaire for You, is hosting the Licensed Applications, and is allowing the download of those Licensed Applications by end-users, on Your behalf. However, You are responsible for hosting and delivering content or services sold by You using the In App Purchase API, except for content that is included within the Licensed Application itself (i.e., the In App Purchase simply unlocks the content). All of the Licensed Applications shall be marketed by Apple, on Your behalf, to end-users at prices established by You, in Your sole discretion, based on the pricing schedule attached to this Schedule 2 as Exhibit C or, at your election via iTunes Connect, at a discount of 50% of Your established price for authorized institutional customers. You may change the price for any Licensed Application at any time, at Your discretion, in accordance with the pricing schedule set forth on that Exhibit C, using tools provided on the iTunes Connect site. As Your agent and/or commissionaire, Apple shall be solely responsible for the collection of all prices payable by end-users for Licensed Applications acquired by those end-users under this Schedule 2.

 

3.2 In the event that the sale or delivery of any of the Licensed Applications to any end-user is subject to any sales, use, goods and services, value added, or other similar tax, under applicable law, responsibility for the collection and remittance of that tax for sales of the Licensed Applications to end-users will be determined in accordance with Exhibit B to this Schedule 2. You shall indemnify and hold Apple harmless against any and all claims by any tax authority for any underpayment of any sales, use, goods and services, value added or other tax or levy, and any penalties and/or interest thereon.

 

3.3 In furtherance of the parties’ respective tax compliance obligations, Apple requires that You comply with the requirements listed on Exhibit D to this Schedule 2 or on iTunes Connect depending upon, among other things, (i) Your country of residence and (ii) the countries designated by You in which You wish Apple to allow access to the Licensed Applications. In the event that Apple collects any amounts corresponding to the purchase price for any of Your Licensed Applications before You have provided Apple with any tax documentation required under Exhibit D to this Schedule 2, Apple will not remit those amounts to You, but will hold those amounts in trust for You, until such time as You have provided Apple with the required tax documentation. Upon receipt of all required tax documents from You, Apple will remit to You any amounts held in trust by Apple for You, without interest, under this Section 3.3, in accordance with the provisions of this Schedule 2.

 

3.4 Apple shall be entitled to the following commissions in consideration for its services as Your agent and/or commissionaire under this Schedule 2:

(a) For sales of Licensed Applications to end-users located in those countries listed in Exhibit B, Section 1 of this Schedule 2, Apple shall be entitled to a commission equal to thirty percent (30%) of all prices payable by each end-user. For purposes of determining the commissions to which Apple is entitled under this Section 3.4(a), the prices payable by end-users shall be net of any and all taxes collected, as provided in Section 3.2 of this Schedule 2.

(b) For sales of Licensed Applications to end-users located in those countries listed in Exhibit B, Section 2 of this Schedule 2, Apple shall be entitled to a commission equal to thirty percent (30%) of all prices payable by each end-user.

Except as otherwise provided in Section 3.2 of this Schedule 2, Apple shall be entitled to the commissions specified in Sections 3.4(a) and 3.4(b) hereof without reduction for any taxes or other government levies, including any and all taxes or other, similar obligations of You, Apple or any end-user relating to the delivery or use of the Licensed Applications.

 

 

  

  

  

 

3.5 Upon collection of any amounts from any end-user as the price for any Licensed Application delivered to that end-user hereunder, Apple shall deduct the full amount of its commission with respect to that Licensed Application, and any taxes collected by Apple under Section 3.2 hereof, and shall remit to You, or issue a credit in Your favor, as the case may be, the remainder of those prices in accordance with Apple standard business practices, including the following: remittance payments (i) are made by means of wire transfer only; (ii) are subject to minimum monthly remittance amount thresholds; (iii) require You to provide certain remittance-related information on the iTunes Connect site; and (iv) subject to the foregoing requirements, will be made no later than forty-five (45) days following the close of the monthly period in which the corresponding amount was received by Apple from the end-user. No later than forty-five (45) days following the end of each monthly period, Apple will make available to You on the iTunes Connect site a sales report in sufficient detail to permit You to identify the Licensed Applications sold in that monthly period and the total amount to be remitted to You by Apple.  You hereby acknowledge and agree that Apple shall be entitled to a commission, in accordance with this Section 3.5 on the delivery of any Licensed Application to any end-user, even if Apple is unable to collect the price for that Licensed Application from that end-user. In the event that the purchase price received by Apple from any end-user for any Licensed Application is in a currency other than the remittance currency agreed between Apple and You, the purchase price for that Licensed Application shall be converted to the remittance currency, and the amount to be remitted by Apple to You shall be determined, in accordance with an exchange rate fixed for the Delivery Period, as reflected in Exhibit C attached hereto.  Apple may provide a means on iTunes Connect to enable You to designate a primary currency for the bank account designated by You for receiving remittances (“Designated Currency”).  Apple may cause Apple's bank to convert all remittances in any remittance currency other than the Designated Currency into the Designated Currency prior to remittance to You. You agree that any resulting currency exchange differentials or fees charged by Apple's bank may be deducted from such remittances. You remain responsible for any fees (e.g., wire transfer fees) charged by Your bank or any intermediary banks between Your bank and Apple’s bank.

 

3.6 In the event that any price payable by any end-user for any of the Licensed Applications is subject to (i) any withholding or similar tax; or (ii) any sales, use, goods and services, value added, or other tax or levy not collected by Apple under Section 3.2 hereof; or (iii) any other tax or other government levy of whatever nature, the full amount of that tax or levy shall be solely for Your account, and shall not reduce the commission to which Apple is entitled under this Schedule 2.

3.7 In the event that any remittance made by Apple to You is subject to any withholding or similar tax, the full amount of that withholding or similar tax shall be solely for Your account, and will not reduce the commission to which Apple is entitled on that transaction. If Apple reasonably believes that such tax is due, Apple will deduct the full amount of such withholding or similar tax from the gross amount owed to You, and will pay the full amount withheld over to the competent tax authorities.  Apple will apply a reduced rate of withholding tax, if any, provided for in any applicable income tax treaty only if You furnish Apple with such documentation required under that income tax treaty or otherwise satisfactory to Apple, sufficient to establish Your entitlement to the benefit of that reduced rate of withholding tax. Upon Your timely request to Apple in writing, using means reasonably designated by Apple, Apple will use commercially practical efforts to report to You the amount of Apple’s payment of withholding or similar taxes to the competent tax authorities on Your behalf.  You will indemnify and hold Apple harmless against any and all claims by any competent tax authority for any underpayment of any such withholding or similar taxes, and any penalties and/or interest thereon, including, but not limited to, underpayments attributable to any erroneous claim or representation by You as to Your entitlement to, or Your disqualification for, the benefit of a reduced rate of withholding tax.

4. Ownership and End-User Licensing

4.1 The parties acknowledge and agree that Apple shall not acquire any ownership interest in or to any of the Licensed Applications or Licensed Application Information, and title, risk of loss, responsibility for, and control over the Licensed Applications shall, at all times, remain with You.  Apple may not use any of the Licensed Applications or Licensed Application Information for any purpose, or in any manner, except as specifically authorized in this Schedule 2.

 

4.2 You may deliver to Apple Your own EULA for any Licensed Application at the time that You deliver that Licensed Application to Apple, in accordance with Section 2.1 of this Schedule 2; provided, however, that Your EULA must include and may not be inconsistent with the minimum terms and conditions specified on Exhibit E to this Schedule 2 and must comply with all applicable laws in all countries where You wish Apple to allow end-users to download that Licensed Application. Apple shall allow each end-user to which Apple allows access to any such Licensed Application to review Your EULA (if any) at the time that Apple delivers that Licensed Application to that end-user, and Apple shall notify each end-user that the end-user’s use of that Licensed Application is subject to the terms and conditions of Your EULA (if any). In the event that You do not furnish Your own EULA for any Licensed Application to Apple, You acknowledge and agree that each end-user’s use of that Licensed Application shall be subject to Apple’s standard EULA (which is part of the App Store Terms of Service).

 

4.3 You hereby acknowledge that the EULA for each of the Licensed Applications is solely between You and the end-user and conforms to applicable law, and Apple shall not be responsible for, and shall not have any liability whatsoever under, any EULA or any breach by You or any end-user of any of the terms and conditions of any EULA.

 

 

  

  

  

 

5. Content Restrictions and Software Rating

 

5.1 You represent and warrant that: (a) You have the right to enter into this Agreement, to reproduce and distribute each of the Licensed Applications, and to authorize Apple to permit end-users to download and use each of the Licensed Applications through one or more App Stores; (b) none of the Licensed Applications, or Apple’s or end-users’ permitted uses of those Licensed Applications, violate or infringe any patent, copyright, trademark, trade secret or other intellectual property or contractual rights of any other person, firm, corporation or other entity; (c) each of the Licensed Applications is authorized for distribution, sale and use in, export to, and import into each of the countries designated by You under Section 2.1 of this Schedule 2, in accordance with the laws and regulations of those countries and all applicable export/import regulations; (d) none of the Licensed Applications contains any obscene, offensive or other materials that are prohibited or restricted under the laws or regulations of any of the countries You designated under Section 2.1 of this Schedule 2; and (e) all information You provided using the iTunes Connect tool, including any information relating to the Licensed Applications, is accurate and that, if any such information ceases to be accurate, You will promptly update it to be accurate using the iTunes Connect tool.

 

5.2 You shall use the software rating tool set forth on iTunes Connect to supply information regarding each of the Licensed Applications delivered by You for marketing and fulfillment by Apple through the App Store under this Schedule 2 in order to assign a rating to each such Licensed Application. For purposes of assigning a rating to each of the Licensed Applications, You shall use Your best efforts to provide correct and complete information about the content of that Licensed Application with the software rating tool.  You acknowledge and agree that Apple is relying on:  (i) Your good faith and diligence in accurately and completely providing requested information for each Licensed Application; and (ii) Your representations and warranties in Section 5.1 hereof, in making that Licensed Application available for download by end-users in each of the countries You designated hereunder. Furthermore, You authorize Apple to correct the rating of any Licensed Application of Yours that has been assigned an incorrect rating; and You agree to any such corrected rating.

5.3 In the event that any country You designated hereunder requires the approval of, or rating of, any Licensed Application by any government or industry regulatory agency as a condition for the distribution, sale and/or use of that Licensed Application, You acknowledge and agree that Apple may elect not to make that Licensed Application available for download by end-users in that country from any App Store.

6. Responsibility and Liability

6.1 Apple shall have no responsibility for the installation and/or use of any of the Licensed Applications by any end-user. You shall be solely responsible for any and all product warranties, end-user assistance and product support with respect to each of the Licensed Applications.

 

6.2 You shall be solely responsible for, and Apple shall have no responsibility or liability whatsoever with respect to, any and all claims, suits, liabilities, losses, damages, costs and expenses arising from, or attributable to, the Licensed Applications and/or the use of those Licensed Applications by any end-user, including, but not limited to: (i) claims of breach of warranty, whether specified in the EULA or established under applicable law; (ii) product liability claims; and (iii) claims that any of the Licensed Applications and/or the end-user’s possession or use of those Licensed Applications infringes the copyright or other intellectual property rights of any third party.

 

6.3 In the event that Apple receives any notice or claim from any end-user that: (i) the end-user wishes to cancel its license to any of the Licensed Applications within ninety (90) days of the date of download of that Licensed Application by that end-user; or (ii) a Licensed Application fails to conform to Your specifications or Your product warranty or the requirements of any applicable law, Apple may refund to the end-user the full amount of the price paid by the end-user for that Licensed Application. In the event that Apple refunds any such price to an end-user, You shall reimburse, or grant Apple a credit for, an amount equal to the price for that Licensed Application. Apple will have the right to retain its commission on the sale of that Licensed Application, notwithstanding the refund of the price to the end-user.

 

 

  

  

  

 

7. Termination

 

7.1 This Schedule 2, and all of Apple’s obligations hereunder, shall terminate upon the expiration or termination of the Agreement.  Notwithstanding any such termination, Apple shall be entitled to: (i) all commissions on all copies of the Licensed Applications downloaded by end-users prior to the date of termination (including the phase-out period set forth in Section 1.4 hereof); and (ii) reimbursement from You of refunds paid by Apple to end-users, whether before or after the date of termination, in accordance with Section 6.3 of this Schedule 2.

 

7.2 In the event that You no longer have the legal right to distribute the Licensed Applications, or to authorize Apple to allow access to those Licensed Applications by end-users, in accordance with this Schedule 2, You shall promptly withdraw those Licensed Applications from the App Store using the tools provided on the iTunes Connect site; provided, however, that such withdrawal by You under this Section

 

7.2 shall not relieve You of any of Your obligations to Apple under this Schedule 2, or any liability to Apple and/or any end-user with respect to those Licensed Applications.

 

7.3 Apple reserves the right to cease marketing and allowing download by end-users of the Licensed Applications at any time, with or without cause, by providing notice of termination to You. Without limiting the generality of this Section 7.3, You acknowledge that Apple may cease the marketing and allowing download by end-users of some or all of the Licensed Applications if Apple reasonably believes that: (i) those Licensed Applications are not authorized for export to one or more of the countries listed on Exhibit A, in accordance with the Export Administration Regulations; (ii) those Licensed Applications and/or any end-user’s possession and/or use of those Licensed Applications, infringe patent, copyright, trademark, trade secret or other intellectual property rights of any third party; or (iii) the distribution, sale and/or use of those Licensed Applications violates any applicable law in any country You designated under Section 2.1 of this Schedule 2. An election by Apple to cease the marketing and allowing download of any Licensed Applications, pursuant to this Section 7.3, shall not relieve You of Your obligations under this Schedule 2.

7.4 You may withdraw any or all of the Licensed Applications from the App Store, at any time, and for any reason, by using the tools provided on the iTunes Connect site.

8. Legal Consequences

The relationship between You and Apple established by this Schedule 2 may have important legal and/or tax consequences for You.  You acknowledge and agree that it is Your responsibility to consult with Your own legal and tax advisors with respect to Your legal and tax obligations hereunder.

 

 

  

  

  

 

EXHIBIT A

 

1. Apple as Agent

 

You appoint Apple Canada, Inc. (“Apple Canada”) as Your agent for the marketing and end-user download of the Licensed Applications by end-users located in the following country:

 

Canada

 

You appoint Apple Pty Limited (“APL”) as Your agent for the marketing and end-user download of the Licensed Applications by end-users located in the following countries:

 

Australia

New Zealand

 

You appoint Apple Inc. as Your agent pursuant to California Civil Code §§ 2295 et seq. for the marketing and end-user download of the Licensed Applications by end-users located in the following countries:

 

	
Argentina

	
Dominican Republic

	
Jamaica

	
Peru

	
Brazil

	
Ecuador

	
Mexico

	
Uruguay

	
Chile

	
El Salvador

	
Nicaragua

	
Venezuela

	
Colombia

	
Guatemala

	
Panama

	
United States

	
Costa Rica

	
Honduras

	
Paraguay

	  

You appoint iTunes KK as Your agent pursuant to Article 643 of the Japanese Civil Code for the marketing and end-user download of the Licensed Applications by end-users located in the following country:

 

Japan

 

2. Apple as Commissionaire

 

You appoint iTunes Sarl as Your commissionaire pursuant to Article 91 of the Luxembourg Code de commerce for the marketing and end-user download of the Licensed Applications by end-users located in the following countries:

 

	
Austria

	
India

	
Mali

	
Senegal

	
Armenia

	
Indonesia

	
Malaysia

	
Slovakia

	
Belgium

	
Ireland

	
Malta, Republic of

	
Slovenia

	
Botswana

	
Israel

	
Mauritius

	
South Africa

	
Bulgaria

	
Italy

	
Moldova

	
Spain

	
China

	
Jordan

	
Niger

	
Sri Lanka

	
Croatia

	
Kazakhstan

	
Netherlands

	
Sweden

	
Czech Republic

	
Kenya

	
Norway

	
Switzerland

	
Denmark

	
Korea

	
Pakistan

	
Taiwan

	
Egypt

	
Kuwait

	
Philippines

	
Thailand

	
Estonia

	
Latvia

	
Poland

	
Tunisia

	
Finland

	
Lebanon

	
Portugal

	
Turkey

	
France

	
Lithuania

	
Qatar

	
UAE

	
Germany

	
Luxembourg

	
Romania

	
Uganda

	
Greece

	
Macau

	
Russia

	
United Kingdom

	
Hong Kong

	
Macedonia

	
Saudi Arabia

	
Vietnam

	
Hungary

	
Madagascar

	
Singapore

	  

 

 

  

  

  

 

EXHIBIT B

 

1. Apple shall collect and remit to the competent tax authorities the taxes described in Section 3.2 of this Schedule 2 for sales of the Licensed Applications to end-users located in the following countries:

 

	
Australia

	
Finland

	
Lithuania

	
Slovenia

	
Austria

	
France

	
Luxembourg

	
Spain

	
Belgium

	
Germany

	
Malta, Republic of

	
Sweden

	
Bulgaria

	
Greece

	
Netherlands

	
Switzerland

	
Canada

	
Hungary

	
Poland

	
United Kingdom

	
Czech Republic

	
Ireland

	
Portugal

	
United States

	
Denmark

	
Italy

	
Romania

	  
	
Estonia

	
Latvia

	
Slovakia

	  

 

2. Apple shall not collect and remit the taxes described in Section 3.2 of this Schedule 2 for sales of the Licensed Applications to end-users located in the countries listed below. You shall be solely responsible for the collection and remittance of such taxes as may be required by local law. 

	
Argentina

	
Hong Kong

	
Malaysia

	
Russia

	
Armenia

	
India

	
Mali

	
Saudi Arabia

	
Botswana

	
Indonesia

	
Mauritius

	
Senegal

	
Brazil

	
Israel

	
Mexico

	
Singapore

	
Chile

	
Jamaica

	
Moldova

	
South Africa

	
China

	
Japan

	
New Zealand

	
Sri Lanka

	
Colombia

	
Jordan

	
Nicaragua

	
Taiwan

	
Costa Rica

	
Kazakhstan

	
Niger

	
Thailand

	
Croatia

	
Kenya

	
Norway

	
Tunisia

	
Dominican Republic

	
Korea

	
Pakistan

	
Turkey

	
Ecuador

	
Kuwait

	
Panama

	
UAE

	
El Salvador

	
Lebanon

	
Paraguay

	
Uganda

	
Egypt

	
Macau

	
Peru

	
Uruguay

	
Guatemala

	
Macedonia

	
Philippines

	
Venezuela

	
Honduras

	
Madagascar

	
Qatar

	
Vietnam

 

 

  

  

  

 

EXHIBIT C

 

 

	
Tier

	
Customer Price USD

	
Customer Price MXP

	
Proceeds, Net of Commission USD

	
Customer Price CAD

	
Proceeds, Net of Commission CAD

	
Customer Price AUD

	
Customer Price NZD

	
Proceeds, Net of Commission AUD

	
Customer Price JPY

	
Proceeds, Net of Commission JPY

	
0

	
0.00

	
0

	
0.00

	
0.00

	
0.00

	
0.00

	
0.00

	
0.00

	
0

	
0

	
1

	
0.99

	
10

	
0.70

	
0.99

	
0.70

	
1.19

	
1.29

	
0.76

	
115

	
81

	
2

	
1.99

	
20

	
1.40

	
1.99

	
1.40

	
2.49

	
2.59

	
1.58

	
230

	
161

	
3

	
2.99

	
30

	
2.10

	
2.99

	
2.10

	
3.99

	
4.19

	
2.54

	
350

	
245

	
4

	
3.99

	
40

	
2.80

	
3.99

	
2.80

	
4.99

	
5.29

	
3.18

	
450

	
315

	
5

	
4.99

	
50

	
3.50

	
4.99

	
3.50

	
5.99

	
6.49

	
3.81

	
600

	
420

	
6

	
5.99

	
60

	
4.20

	
5.99

	
4.20

	
7.99

	
8.29

	
5.08

	
700

	
490

	
7

	
6.99

	
70

	
4.90

	
6.99

	
4.90

	
8.99

	
9.99

	
5.72

	
800

	
560

	
8

	
7.99

	
80

	
5.60

	
7.99

	
5.60

	
9.99

	
10.99

	
6.36

	
900

	
630

	
9

	
8.99

	
90

	
6.30

	
8.99

	
6.30

	
11.99

	
12.99

	
7.63

	
1000

	
700

	
10

	
9.99

	
100

	
7.00

	
9.99

	
7.00

	
12.99

	
13.99

	
8.27

	
1200

	
840

	
11

	
10.99

	
120

	
7.70

	
10.99

	
7.70

	
13.99

	
14.99

	
8.90

	
1300

	
910

	
12

	
11.99

	
130

	
8.40

	
11.99

	
8.40

	
14.99

	
15.99

	
9.54

	
1400

	
980

	
13

	
12.99

	
140

	
9.10

	
12.99

	
9.10

	
15.99

	
16.99

	
10.18

	
1500

	
1050

	
14

	
13.99

	
150

	
9.80

	
13.99

	
9.80

	
16.99

	
17.99

	
10.81

	
1600

	
1120

	
15

	
14.99

	
160

	
10.50

	
14.99

	
10.50

	
17.99

	
18.99

	
11.45

	
1700

	
1190

	
16

	
15.99

	
170

	
11.20

	
15.99

	
11.20

	
18.99

	
19.99

	
12.08

	
1800

	
1260

	
17

	
16.99

	
180

	
11.90

	
16.99

	
11.90

	
19.99

	
20.99

	
12.72

	
2000

	
1400

	
18

	
17.99

	
190

	
12.60

	
17.99

	
12.60

	
21.99

	
22.99

	
13.99

	
2100

	
1470

	
19

	
18.99

	
200

	
13.30

	
18.99

	
13.30

	
22.99

	
23.99

	
14.63

	
2200

	
1540

	
20

	
19.99

	
210

	
14.00

	
19.99

	
14.00

	
23.99

	
24.99

	
15.27

	
2300

	
1610

	
21

	
20.99

	
220

	
14.70

	
20.99

	
14.70

	
24.99

	
25.99

	
15.90

	
2400

	
1680

	
22

	
21.99

	
230

	
15.40

	
21.99

	
15.40

	
26.99

	
27.99

	
17.18

	
2500

	
1750

	
23

	
22.99

	
240

	
16.10

	
22.99

	
16.10

	
27.99

	
28.99

	
17.81

	
2600

	
1820

	
24

	
23.99

	
250

	
16.80

	
23.99

	
16.80

	
28.99

	
29.99

	
18.45

	
2800

	
1960

	
25

	
24.99

	
260

	
17.50

	
24.99

	
17.50

	
29.99

	
30.99

	
19.08

	
2900

	
2030

	
26

	
25.99

	
270

	
18.20

	
25.99

	
18.20

	
31.99

	
32.99

	
20.36

	
3000

	
2100

	
27

	
26.99

	
280

	
18.90

	
26.99

	
18.90

	
32.99

	
34.99

	
20.99

	
3100

	
2170

	
28

	
27.99

	
290

	
19.60

	
27.99

	
19.60

	
33.99

	
35.99

	
21.63

	
3200

	
2240

	
29

	
28.99

	
300

	
20.30

	
28.99

	
20.30

	
34.99

	
36.99

	
22.27

	
3300

	
2310

	
30

	
29.99

	
320

	
21.00

	
29.99

	
21.00

	
36.99

	
38.99

	
23.54

	
3500

	
2450

	
31

	
30.99

	
330

	
21.70

	
30.99

	
21.70

	
37.99

	
39.99

	
24.18

	
3600

	
2520

	
32

	
31.99

	
340

	
22.40

	
31.99

	
22.40

	
38.99

	
40.99

	
24.81

	
3700

	
2590

	
33

	
32.99

	
350

	
23.10

	
32.99

	
23.10

	
39.99

	
41.99

	
25.45

	
3800

	
2660

	
34

	
33.99

	
360

	
23.80

	
33.99

	
23.80

	
41.99

	
43.99

	
26.72

	
3900

	
2730

	
35

	
34.99

	
370

	
24.50

	
34.99

	
24.50

	
42.99

	
44.99

	
27.36

	
4000

	
2800

	
36

	
35.99

	
380

	
25.20

	
35.99

	
25.20

	
43.99

	
45.99

	
27.99

	
4100

	
2870

	
37

	
36.99

	
390

	
25.90

	
36.99

	
25.90

	
44.99

	
46.99

	
28.63

	
4300

	
3010

	
38

	
37.99

	
400

	
26.60

	
37.99

	
26.60

	
45.99

	
47.99

	
29.27

	
4400

	
3080

	
39

	
38.99

	
410

	
27.30

	
38.99

	
27.30

	
46.99

	
48.99

	
29.90

	
4500

	
3150

 

 

  

  

  

 

continued...

 

	
Tier

	
Customer Price USD

	
Customer Price MXP

	
Proceeds, Net of Commission USD

	
Customer Price CAD

	
Proceeds, Net of Commission CAD

	
Customer Price AUD

	
Customer Price NZD

	
Proceeds, Net of Commission AUD

	
Customer Price JPY

	
Proceeds, Net of Commission JPY

	
40

	
39.99

	
420

	
28.00

	
39.99

	
28.00

	
47.99

	
49.99

	
30.54

	
4600

	
3220

	
41

	
40.99

	
430

	
28.70

	
40.99

	
28.70

	
48.99

	
50.99

	
31.18

	
4700

	
3290

	
42

	
41.99

	
440

	
29.40

	
41.99

	
29.40

	
49.99

	
51.99

	
31.81

	
4800

	
3360

	
43

	
42.99

	
450

	
30.10

	
42.99

	
30.10

	
51.99

	
53.99

	
33.08

	
4900

	
3430

	
44

	
43.99

	
460

	
30.80

	
43.99

	
30.80

	
52.99

	
54.99

	
33.72

	
5000

	
3500

	
45

	
44.99

	
470

	
31.50

	
44.99

	
31.50

	
53.99

	
55.99

	
34.36

	
5200

	
3640

	
46

	
45.99

	
480

	
32.20

	
45.99

	
32.20

	
54.99

	
56.99

	
34.99

	
5300

	
3710

	
47

	
46.99

	
490

	
32.90

	
46.99

	
32.90

	
56.99

	
58.99

	
36.27

	
5400

	
3780

	
48

	
47.99

	
500

	
33.60

	
47.99

	
33.60

	
57.99

	
59.99

	
36.90

	
5500

	
3850

	
49

	
48.99

	
520

	
34.30

	
48.99

	
34.30

	
58.99

	
60.99

	
37.54

	
5600

	
3920

	
50

	
49.99

	
530

	
35.00

	
49.99

	
35.00

	
59.99

	
64.99

	
38.18

	
5800

	
4060

	
51

	
54.99

	
580

	
38.50

	
54.99

	
38.50

	
69.99

	
74.99

	
44.54

	
6000

	
4200

	
52

	
59.99

	
630

	
42.00

	
59.99

	
42.00

	
74.99

	
79.99

	
47.72

	
7000

	
4900

	
53

	
64.99

	
680

	
45.50

	
64.99

	
45.50

	
79.99

	
84.99

	
50.90

	
7500

	
5250

	
54

	
69.99

	
740

	
49.00

	
69.99

	
49.00

	
89.99

	
94.99

	
57.27

	
8000

	
5600

	
55

	
74.99

	
790

	
52.50

	
74.99

	
52.50

	
94.99

	
99.99

	
60.45

	
8500

	
5950

	
56

	
79.99

	
840

	
56.00

	
79.99

	
56.00

	
99.99

	
104.99

	
63.63

	
9000

	
6300

	
57

	
84.99

	
900

	
59.50

	
84.99

	
59.50

	
104.99

	
109.99

	
66.81

	
10000

	
7000

	
58

	
89.99

	
950

	
63.00

	
89.99

	
63.00

	
109.99

	
114.99

	
69.99

	
10500

	
7350

	
59

	
94.99

	
1000

	
66.50

	
94.99

	
66.50

	
114.99

	
119.99

	
73.18

	
11000

	
7700

	
60

	
99.99

	
1050

	
70.00

	
99.99

	
70.00

	
119.99

	
124.99

	
76.36

	
11500

	
8050

	
61

	
109.99

	
1200

	
77.00

	
109.99

	
77.00

	
139.99

	
149.99

	
89.08

	
13000

	
9100

	
62

	
119.99

	
1300

	
84.00

	
119.99

	
84.00

	
149.99

	
159.99

	
95.45

	
14000

	
9800

	
63

	
129.99

	
1400

	
91.00

	
129.99

	
91.00

	
159.99

	
169.99

	
101.81

	
15000

	
10500

	
64

	
139.99

	
1500

	
98.00

	
139.99

	
98.00

	
169.99

	
179.99

	
108.18

	
16000

	
11200

	
65

	
149.99

	
1600

	
105.00

	
149.99

	
105.00

	
189.99

	
199.99

	
120.90

	
18000

	
12600

	
66

	
159.99

	
1700

	
112.00

	
159.99

	
112.00

	
199.99

	
209.99

	
127.27

	
19000

	
13300

	
67

	
169.99

	
1800

	
119.00

	
169.99

	
119.00

	
219.99

	
229.99

	
139.99

	
20000

	
14000

	
68

	
179.99

	
1900

	
126.00

	
179.99

	
126.00

	
229.99

	
239.99

	
146.36

	
21000

	
14700

	
69

	
189.99

	
2000

	
133.00

	
189.99

	
133.00

	
239.99

	
249.99

	
152.72

	
22000

	
15400

	
70

	
199.99

	
2100

	
140.00

	
199.99

	
140.00

	
249.99

	
259.99

	
159.08

	
23000

	
16100

	
71

	
209.99

	
2200

	
147.00

	
209.99

	
147.00

	
259.99

	
269.99

	
165.45

	
24000

	
16800

	
72

	
219.99

	
2300

	
154.00

	
219.99

	
154.00

	
269.99

	
279.99

	
171.81

	
25000

	
17500

	
73

	
229.99

	
2400

	
161.00

	
229.99

	
161.00

	
279.99

	
289.99

	
178.18

	
26000

	
18200

	
74

	
239.99

	
2500

	
168.00

	
239.99

	
168.00

	
289.99

	
299.99

	
184.54

	
27000

	
18900

	
75

	
249.99

	
2600

	
175.00

	
249.99

	
175.00

	
299.99

	
319.99

	
190.90

	
29000

	
20300

	
76

	
299.99

	
3200

	
210.00

	
299.99

	
210.00

	
349.99

	
399.99

	
222.72

	
35000

	
24500

	
77

	
349.99

	
3700

	
245.00

	
349.99

	
245.00

	
399.99

	
449.99

	
254.54

	
40000

	
28000

	
78

	
399.99

	
4200

	
280.00

	
399.99

	
280.00

	
449.99

	
499.99

	
286.36

	
45000

	
31500

	
79

	
449.99

	
4700

	
315.00

	
449.99

	
315.00

	
499.99

	
549.99

	
318.18

	
50000

	
35000

	
80

	
499.99

	
5300

	
350.00

	
499.99

	
350.00

	
599.99

	
649.99

	
381.81

	
58000

	
40600

	
81

	
599.99

	
6300

	
420.00

	
599.99

	
420.00

	
699.99

	
749.99

	
445.45

	
70000

	
49000

	
82

	
699.99

	
7400

	
490.00

	
699.99

	
490.00

	
799.99

	
849.99

	
509.08

	
80000

	
56000

	
83

	
799.99

	
8500

	
560.00

	
799.99

	
560.00

	
899.99

	
949.99

	
572.72

	
90000

	
63000

	
84

	
899.99

	
9500

	
630.00

	
899.99

	
630.00

	
999.99

	
1049.99

	
636.36

	
100000

	
70000

	
85

	
999.99

	
10500

	
700.00

	
999.99

	
700.00

	
1199.99

	
1249.99

	
763.63

	
115000

	
80500

 

 

  

  

  

 

	
Tier

	
Customer Price Euro

	
Customer Price DKK

	
Customer Price NOK

	
Customer Price SEK

	
Customer Price CHF

	
Proceeds, Net of Commission Euro

	
Customer Price GBP

	
Proceeds, Net of Commission GBP

	
0

	
0.00

	
0

	
0

	
0

	
0.00

	
0.00

	
0.00

	
0.00

	
1

	
0.79

	
6

	
6

	
7

	
1.10

	
0.48

	
0.59

	
0.36

	
2

	
1.59

	
12

	
11

	
15

	
2.20

	
0.97

	
1.19

	
0.72

	
3

	
2.39

	
18

	
17

	
22

	
3.30

	
1.45

	
1.79

	
1.09

	
4

	
2.99

	
24

	
21

	
28

	
4.40

	
1.82

	
2.39

	
1.45

	
5

	
3.99

	
30

	
29

	
38

	
5.50

	
2.43

	
2.99

	
1.82

	
6

	
4.99

	
36

	
35

	
45

	
6.60

	
3.04

	
3.49

	
2.12

	
7

	
5.49

	
42

	
39

	
49

	
7.70

	
3.34

	
3.99

	
2.43

	
8

	
5.99

	
48

	
45

	
55

	
8.80

	
3.65

	
4.99

	
3.04

	
9

	
6.99

	
54

	
49

	
65

	
9.90

	
4.25

	
5.49

	
3.34

	
10

	
7.99

	
59

	
55

	
75

	
11.00

	
4.86

	
5.99

	
3.65

	
11

	
8.99

	
69

	
59

	
85

	
12.50

	
5.47

	
6.49

	
3.95

	
12

	
9.99

	
75

	
65

	
95

	
14.00

	
6.08

	
6.99

	
4.25

	
13

	
10.49

	
79

	
69

	
99

	
15.00

	
6.39

	
7.49

	
4.56

	
14

	
10.99

	
85

	
75

	
105

	
16.00

	
6.69

	
7.99

	
4.86

	
15

	
11.99

	
89

	
85

	
109

	
17.00

	
7.30

	
8.99

	
5.47

	
16

	
12.99

	
99

	
89

	
119

	
18.00

	
7.91

	
9.49

	
5.78

	
17

	
13.99

	
105

	
95

	
129

	
19.00

	
8.52

	
9.99

	
6.08

	
18

	
14.49

	
109

	
99

	
135

	
20.00

	
8.82

	
10.99

	
6.69

	
19

	
14.99

	
115

	
105

	
139

	
21.00

	
9.12

	
11.49

	
6.99

	
20

	
15.99

	
119

	
109

	
149

	
22.00

	
9.73

	
11.99

	
7.30

	
21

	
16.99

	
125

	
119

	
159

	
24.00

	
10.34

	
12.49

	
7.60

	
22

	
17.99

	
129

	
125

	
169

	
25.00

	
10.95

	
12.99

	
7.91

	
23

	
18.49

	
135

	
129

	
175

	
26.00

	
11.25

	
13.99

	
8.52

	
24

	
18.99

	
139

	
135

	
179

	
27.00

	
11.56

	
14.49

	
8.82

	
25

	
19.99

	
149

	
139

	
189

	
28.00

	
12.17

	
14.99

	
9.12

	
26

	
20.99

	
155

	
145

	
195

	
29.00

	
12.78

	
15.49

	
9.43

	
27

	
21.49

	
159

	
149

	
199

	
30.00

	
13.08

	
15.99

	
9.73

	
28

	
21.99

	
165

	
155

	
209

	
31.00

	
13.39

	
16.99

	
10.34

	
29

	
22.99

	
169

	
159

	
219

	
32.00

	
13.99

	
17.49

	
10.65

	
30

	
23.99

	
179

	
165

	
229

	
33.00

	
14.60

	
17.99

	
10.95

	
31

	
24.99

	
185

	
169

	
235

	
34.00

	
15.21

	
18.49

	
11.25

	
32

	
25.49

	
189

	
175

	
239

	
35.00

	
15.52

	
18.99

	
11.56

	
33

	
25.99

	
195

	
179

	
245

	
36.00

	
15.82

	
19.99

	
12.17

	
34

	
26.99

	
199

	
189

	
249

	
37.00

	
16.43

	
20.49

	
12.47

	
35

	
27.99

	
209

	
195

	
265

	
38.00

	
17.04

	
20.99

	
12.78

	
36

	
28.99

	
215

	
199

	
269

	
39.00

	
17.65

	
21.49

	
13.08

	
37

	
29.49

	
219

	
205

	
275

	
40.00

	
17.95

	
21.99

	
13.39

	
38

	
29.99

	
225

	
209

	
285

	
41.00

	
18.25

	
22.99

	
13.99

	
39

	
30.99

	
229

	
215

	
289

	
43.00

	
18.86

	
23.49

	
14.30

 

 

  

  

  

 

continued...

 

	
Tier

	
Customer Price Euro

	
Customer Price DKK

	
Customer Price NOK

	
Customer Price SEK

	
Customer Price CHF

	
Proceeds, Net of Commission Euro

	
Customer Price GBP

	
Proceeds, Net of Commission GBP

	
40

	
31.99

	
239

	
219

	
299

	
44.00

	
19.47

	
23.99

	
14.60

	
41

	
32.99

	
245

	
225

	
309

	
45.00

	
20.08

	
24.49

	
14.91

	
42

	
33.49

	
249

	
229

	
315

	
46.00

	
20.39

	
24.99

	
15.21

	
43

	
33.99

	
255

	
235

	
319

	
47.00

	
20.69

	
25.99

	
15.82

	
44

	
34.99

	
259

	
239

	
329

	
48.00

	
21.30

	
26.49

	
16.12

	
45

	
35.99

	
269

	
249

	
339

	
49.00

	
21.91

	
26.99

	
16.43

	
46

	
36.99

	
275

	
255

	
345

	
51.00

	
22.52

	
27.49

	
16.73

	
47

	
37.49

	
279

	
259

	
349

	
52.00

	
22.82

	
27.99

	
17.04

	
48

	
37.99

	
285

	
265

	
359

	
53.00

	
23.12

	
28.99

	
17.65

	
49

	
38.99

	
289

	
269

	
369

	
54.00

	
23.73

	
29.49

	
17.95

	
50

	
39.99

	
299

	
279

	
379

	
55.00

	
24.34

	
29.99

	
18.25

	
51

	
42.99

	
319

	
299

	
399

	
59.00

	
26.17

	
32.99

	
20.08

	
52

	
44.99

	
339

	
319

	
419

	
62.00

	
27.39

	
34.99

	
21.30

	
53

	
49.99

	
369

	
349

	
469

	
69.00

	
30.43

	
37.99

	
23.12

	
54

	
54.99

	
399

	
379

	
519

	
76.00

	
33.47

	
39.99

	
24.34

	
55

	
59.99

	
439

	
419

	
569

	
79.00

	
36.52

	
42.99

	
26.17

	
56

	
62.99

	
469

	
439

	
599

	
85.00

	
38.34

	
44.99

	
27.39

	
57

	
64.99

	
499

	
459

	
619

	
89.00

	
39.56

	
49.99

	
30.43

	
58

	
69.99

	
529

	
489

	
659

	
99.00

	
42.60

	
52.99

	
32.25

	
59

	
74.99

	
559

	
519

	
699

	
105.00

	
45.65

	
54.99

	
33.47

	
60

	
79.99

	
599

	
549

	
749

	
109.00

	
48.69

	
59.99

	
36.52

	
61

	
84.99

	
629

	
599

	
799

	
119.00

	
51.73

	
64.99

	
39.56

	
62

	
89.99

	
669

	
619

	
849

	
129.00

	
54.78

	
69.99

	
42.60

	
63

	
94.99

	
699

	
659

	
899

	
139.00

	
57.82

	
74.99

	
45.65

	
64

	
99.99

	
749

	
699

	
949

	
149.00

	
60.86

	
79.99

	
48.69

	
65

	
109.99

	
819

	
769

	
999

	
159.00

	
66.95

	
84.99

	
51.73

	
66

	
119.99

	
899

	
839

	
1099

	
169.00

	
73.04

	
89.99

	
54.78

	
67

	
124.99

	
929

	
869

	
1179

	
179.00

	
76.08

	
94.99

	
57.82

	
68

	
129.99

	
969

	
899

	
1239

	
189.00

	
79.12

	
99.99

	
60.86

	
69

	
139.99

	
1039

	
999

	
1319

	
199.00

	
85.21

	
109.99

	
66.95

	
70

	
149.99

	
1119

	
1049

	
1399

	
209.00

	
91.30

	
114.99

	
69.99

	
71

	
159.99

	
1199

	
1099

	
1499

	
219.00

	
97.39

	
119.99

	
73.04

	
72

	
169.99

	
1269

	
1199

	
1599

	
229.00

	
103.47

	
124.99

	
76.08

	
73

	
179.99

	
1349

	
1249

	
1699

	
249.00

	
109.56

	
129.99

	
79.12

	
74

	
189.99

	
1399

	
1299

	
1799

	
259.00

	
115.65

	
139.99

	
85.21

	
75

	
199.99

	
1499

	
1399

	
1899

	
279.00

	
121.73

	
149.99

	
91.30

	
76

	
239.99

	
1799

	
1699

	
2299

	
329.00

	
146.08

	
179.99

	
109.56

	
77

	
279.99

	
1999

	
1999

	
2599

	
389.00

	
170.43

	
199.99

	
121.73

	
78

	
319.99

	
2399

	
2299

	
2999

	
449.00

	
194.78

	
239.99

	
146.08

	
79

	
359.99

	
2699

	
2499

	
3399

	
499.00

	
219.12

	
279.99

	
170.43

	
80

	
399.99

	
2999

	
2799

	
3799

	
549.00

	
243.47

	
299.99

	
182.60

	
81

	
479.99

	
3499

	
3299

	
4499

	
669.00

	
292.17

	
349.99

	
213.04

	
82

	
559.99

	
3999

	
3899

	
5299

	
779.00

	
340.86

	
399.99

	
243.47

	
83

	
639.99

	
4799

	
4399

	
5999

	
899.00

	
389.56

	
449.99

	
273.91

	
84

	
719.99

	
5499

	
4999

	
6799

	
999.00

	
438.25

	
499.99

	
304.34

	
85

	
799.99

	
5999

	
5499

	
7499

	
1099.00

	
486.95

	
599.99

	
365.21

 

Customer Price is the price displayed to the end-user on the App Store. The agreed remittance currencies are USD, CAD, AUD, JPY, Euro and GBP, depending on the currency of the Customer Price, as indicated in this Exhibit C. Customers are charged the following currencies in the following countries:

USD:  Argentina, Armenia, Botswana, Brazil, Chile, China, Colombia, Costa Rica, Croatia, Dominican Republic, Ecuador, El Salvador, Egypt, Guatemala, Honduras, Hong Kong, India, Indonesia, Israel, Jamaica, Jordan, Kazakhstan, Kenya, Korea, Kuwait, Lebanon, Macau, Macedonia, Madagascar, Malaysia, Mali, Mauritius, Moldova, Nicaragua, Niger, Pakistan, Panama, Paraguay, Peru, Philippines, Qatar, Russia, Saudi Arabia, Senegal, Singapore, South Africa, Sri Lanka, Taiwan, Thailand, Tunisia, Turkey, UAE, Uganda, Uruguay, United States, Venezuela, Vietnam

MXP:  Mexico

CAD:  Canada

AUD:  Australia

NZD:  New Zealand

JPY:  Japan

Euro:  Austria, Belgium, Bulgaria, Czech Republic, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Malta (Republic of), Luxembourg, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain

DKK:  Denmark

NOK:  Norway

SEK:  Sweden

CHF:  Switzerland

GBP:  United Kingdom

 

 

  

  

  

 

EXHIBIT D

 

1. Delivery of Licensed Applications to end-users in Canada

 

Where You designate Apple Canada to allow access to the Licensed Applications to end-users in Canada:

 

1.1 General

 

You shall indemnify and hold Apple harmless against any and all claims by the Canada Revenue Agency (the “CRA”), Ministere du Revenu du Quebec (the “MRQ”) and the tax authorities of any province that has a provincial retail sales tax (“PST”) for any failure to pay, collect or remit any amount(s) of goods and services tax/harmonized sales tax (“GST/HST”) imposed under the Excise Tax Act (Canada) (The “ETA”), Quebec Sales Tax (“QST”) or PST and any penalties and/or interest thereon in connection with any supplies made by Apple Canada to end-users in Canada on Your behalf and any supplies made by Apple Canada to You.

 

1.2 GST/HST

(a) This Section 1.2 of Exhibit D applies with respect to supplies made by You, through Apple Canada, as agent to end-users in Canada. Terms defined in the ETA have the same meaning when used in this Section 1.2. Apple Canada is registered for GST/HST purposes, with GST/HST Registration No. R100236199.

(b) If You are a resident of Canada or are a non-resident of Canada that is required to register for GST/HST purposes pursuant to the ETA, it is a condition of this Schedule 2, that You are registered for GST/HST or have submitted an application to register for GST/HST to the CRA with an effective GST/HST registration date of no later than the date of this Schedule 2. You shall provide Apple Canada with satisfactory evidence of Your GST/HST registration (e.g., a copy of Your CRA confirmation letter or print-out from the GST/HST Registry on the CRA web site) at Apple Canada’s request. You warrant that You will notify Apple Canada if You cease to be registered for GST/HST.

(c) If You are registered for GST/HST purposes, You, by executing this Schedule 2, (i) agree to enter into the election pursuant to subsection 177(1.1) of the ETA to have Apple Canada collect, account for and remit GST/HST on sales of Licensed Applications made to end-users in Canada on Your behalf and have completed (including entering its valid GST/HST registration number), signed and returned to Apple Canada Form GST506 (accessible on the iTunes Connect site); and (ii) acknowledge that the commission payable by You to Apple Canada includes GST at a rate of 5% (or the GST rate as applicable from time to time).

(d) If You are not registered for GST/HST purposes, by executing this Schedule 2 and not completing, signing and returning Form GST506 to Apple Canada, You (i) certify that You are not registered for GST/HST purposes; (ii) certify that You are not resident in Canada and do not carry on business in Canada for purposes of the ETA; (iii) acknowledge that Apple Canada will charge, collect and remit GST/HST on sales of Licensed Applications to end-users in Canada made on Your behalf; (iii) acknowledge that the commission payable by You to Apple Canada is zero-rated for GST/HST purposes (i.e., GST/HST rate is 0%); and (iv) agree to indemnify Apple for any GST/HST, interest and penalty assessed against Apple Canada if it is determined that You should have been registered for GST/HST purposes such that the commission fees charged by Apple Canada were subject to GST.

 

 

  

  

  

1.3 Quebec Sales Tax

Terms defined in an Act respecting the Quebec Sales Tax (the “QSTA”) have the same meaning when used in this Section 1.3 of Exhibit D.

 

(a) If You are a resident of Quebec, it is a condition of this Schedule 2, that You are registered for QST or have submitted an application to register for QST to the MRQ with an effective QST registration date of no later than the date of this Schedule 2. You shall provide Apple Canada with satisfactory evidence of Your QST registration (e.g., a copy of Your MRQ confirmation letter or print-out from the QST Registry on the MRQ web site) at Apple Canada’s request. You warrant that You will notify Apple Canada if You cease to be registered for QST.

(b) If You are a resident of Quebec, You, by executing this Schedule 2, (i) certify that You are registered for QST; (ii) agree to enter into the election pursuant to section 41.0.1 of the QSTA to have Apple Canada collect, account for and remit QST on sales of Licensed Applications to end-users in Quebec made on Your behalf and have completed (including entering its valid QST registration number), signed and returned to Apple Canada Form FP2506-V; and (iii) acknowledge that Apple Canada will not charge, collect or remit QST on sales of Licensed Applications made on Your behalf to end-users located outside Quebec on the assumption that the end-users are not resident in Quebec and not registered for QST purposes such that the sales are zero-rated for QST purposes.

(c) If You are not resident in Quebec, by executing this Schedule 2 and not completing, signing and returning Form FP2506-V to Apple Canada, You (i) certify that You are not resident in Quebec; (ii) certify that You do not have a permanent establishment in Quebec; and (iii) acknowledge Apple will charge, collect and remit QST on sales of Licensed Applications to end-users in Quebec made on Your behalf.

1.4 PST

 

This Section 1.4 of Exhibit D applies to supplies of Licensed Applications made by You, through Apple Canada, as agent, to end-users in the provinces of British Columbia, Saskatchewan, Manitoba, Ontario, Prince Edward Island and any other province that has or that adopts a PST. You acknowledge and agree that Apple Canada will charge, collect and remit applicable PST on sales of Licensed Applications made to end-users in these provinces by Apple Canada on Your behalf.

 

2. Delivery of Licensed Applications to end-users in Australia

 

Where You designate APL to allow access to the Licensed Applications to end-users in Australia:

 

2.1 You shall indemnify and hold Apple harmless against any and all claims by the Commissioner of Taxation (“Commissioner”) for nonpayment or underpayment of GST under the A New Tax System (Goods and Services Tax) Act 1999 (“GST Act”) and for any penalties and/ or interest thereon.  In addition, You shall indemnify and hold Apple harmless against any penalties imposed by the Commissioner for failing to register for GST in Australia.

 

2.2 Goods and Services Tax (GST)

(a) General

(i) This Section 2.2 of Exhibit D applies to supplies made by You, through APL, as agent, that are connected with Australia.  Terms defined in the GST Act have the same meaning when used in this Section 2.2.

(ii) Unless expressly stated otherwise, any sum payable or amount used in the calculation of a sum payable under this Schedule 2 has been determined without regard to GST and must be increased on account of any GST payable under this Section 2.2.

(iii) If any GST is payable on any taxable supply made under this Schedule 2 by a supplier to a recipient, the recipient must pay the GST to the supplier at the same time and in the same manner as providing any monetary consideration. For the avoidance of doubt, this includes any monetary consideration that is deducted by APL as commission in accordance with Section 3.4 of this Schedule 2.

 

(iv) The amount recoverable on account of GST under this clause by APL will include any fines, penalties, interest and other charges.

(v) This Section 2 of Exhibit D survives the termination of the Agreement.

 

 

  

  

  

(b) Resident Developers or Non-resident GST-Registered Developers

(i) If You are a resident of Australia, it is a condition of this Schedule 2, that You have an Australian Business Number (“ABN”) and are registered for GST or have submitted an application to register for GST to the Commissioner with an effective GST registration date of no later than the date of this Schedule 2. You will provide Apple with satisfactory evidence of Your ABN and GST registration (by uploading to Apple, using the iTunes Connect site, a copy of Your GST registration or print-out from the Australian Business Register) within 30 days of this Schedule 2. You warrant that You will notify Apple if it ceases to hold a valid ABN or be registered for GST.

(ii) If You are a non-resident and are registered for GST, it is a condition of this Schedule 2 that You will provide Apple with satisfactory evidence of Your ABN and GST registration within 30 days of this Schedule 2.  You warrant that You will notify Apple if You cease to be registered for GST.

(iii) You and Apple agree to enter into an arrangement for the purposes of s.153-50 of the GST Act. You and Apple further agree that for taxable supplies made by You, through APL as agent, to any end-user:

(A) APL will be deemed as making supplies to any end-user;

(B) You will be deemed as making separate, corresponding supplies to APL;

 

(C) APL will issue to any end-user, in APL’s own name, all tax invoices and adjustment notes relating to supplies made under paragraph (iii)(a);

(D) You will not issue to any end-user any tax invoices or adjustment notes relating to taxable supplies made under paragraph (iii)(a);

(E) APL will issue a recipient created tax invoice to You in respect of any taxable supplies made by You to APL under this Schedule 2, including taxable supplies made under paragraph (iii)(b); and

(F) You will not issue a tax invoice to Apple in respect of any taxable supplies made by You to Apple under this Schedule 2, including taxable supplies made under paragraph (iii)(b).

(c) Non-resident, Non-GST-registered Developers

If You are a non-resident and are not registered for GST, then:

(i) APL will issue to any end-user, in APL’s own name, all tax invoices and adjustment notes relating to taxable supplies made by You through APL as agent; and

(ii) You will not issue to any end-user any tax invoices or adjustment notes relating to taxable supplies made by You through APL as agent.

3. Delivery of Licensed Applications to end-users in the United States

 

Where You designate Apple Inc. to allow access to the Licensed Applications to end-users in the United States:

 

3.1 If You are not a resident of the United States for U.S. federal income tax purposes, You will complete Internal Revenue Service Form W-8BEN and/or any other required tax forms and provide Apple with a copy of such completed form(s), and any other information necessary for compliance with applicable tax laws and regulations, as instructed on the iTunes Connect site.

 

3.2 If Apple, in its reasonable belief, determines that any state or local sales, use or similar transaction tax may be due from Apple or You in connection with the sale or delivery of any of the Licensed Applications, Apple will collect and remit those taxes to the competent tax authorities. To the extent that the incidence of any such tax, or responsibility for collecting that tax, falls upon You, You authorize Apple to act on Your behalf in collecting and remitting that tax, but to the extent that Apple has not collected any such tax, or has not received reimbursement for that tax, from end-users, You shall remain primarily liable for the tax, and You will reimburse Apple for any tax payments that Apple is required to make, but is not otherwise able to recover.

3.3 In the event that You incur liability for income tax, franchise tax, business and occupation tax, or any similar taxes based on Your income, You shall be solely responsible for that tax.

 

 

  

  

  

4. Delivery of Licensed Applications to end-users in Japan

Where You designate iTunes KK to allow access to the Licensed Applications to end-users in Japan:

 

4.1 You acknowledge and agree that You have the sole responsibility for: (i) consumption tax output liability, if any, with respect to delivery on Your behalf of Your Licensed Applications to end users by iTunes KK; (ii) filing of consumption tax returns and payment of consumption tax to the Japanese government, if applicable; and (iii) determining independently, in consultation with Your own tax advisor, Your taxpayer status and tax payment obligations for consumption tax purposes.

 

4.2 Commissions charged by iTunes KK to Japan resident developers will include consumption tax.

4.3 If You are not a resident of Japan, You may complete the withholding tax forms for Your country of residence to claim treaty benefits with Japan. Notwithstanding section 3.3 of Schedule 2, iTunes KK will remit such funds as are due to You prior to receipt of such tax documentation, but in such case in its discretion iTunes KK may withhold and remit to the competent tax authorities Japanese withholding tax unreduced by any tax treaty. iTunes KK will apply any reduced rate of withholding tax provided for in any income tax treaty between Your country of residence and Japan only to remittances made to You after iTunes KK receives and has filed the required tax documentation. iTunes KK will not refund any withholding tax withheld on remittances made prior to that date.

5. Delivery of Licensed Applications to end-users in countries listed in Exhibit A, Section 2

Where You designate iTunes Sarl to allow access to the Licensed Applications to end-users in Exhibit A, Section 2:

You acknowledge that in the event iTunes Sarl is subject to any sales, use, goods and services, value added, or other tax or levy with respect to any remittance to You, the full amount of such tax or levy shall be solely for Your account. For the avoidance of doubt, any invoice issued by You to iTunes Sarl will be limited to amounts actually due to You, which amounts shall be inclusive of any value added or other tax or levy as set forth above. You will indemnify and hold Apple harmless against any and all claims by any competent tax authorities for any underpayment of any such sales, use, goods and services, value added, or other tax or levy, and any penalties and/or interest thereon.

 

 

  

  

  

 

EXHIBIT E

 

Instructions for Minimum Terms of Developer’s End-User License Agreement

1. Acknowledgement: You and the end-user must acknowledge that the EULA is concluded between You and the end-user only, and not with Apple, and You, not Apple, are solely responsible for the Licensed Application and the content thereof. The EULA may not provide for usage rules for Licensed Applications that are less restrictive than the Usage Rules set forth for Licensed Applications in, or otherwise be in conflict with, the App Store Terms of Service as of the Effective Date (which You acknowledge You have had the opportunity to review).

 

2. Scope of License: The license granted to the end-user for the Licensed Application must be limited to a non-transferable license to use the Licensed Application on an iPhone OS Product that the end-user owns or controls and as permitted by the Usage Rules set forth in the App Store Terms of Service.

 

3. Maintenance and Support: You must be solely responsible for providing any maintenance and support services with respect to the Licensed Application, as specified in the EULA, or as required under applicable law. You and the end-user must acknowledge that Apple has no obligation whatsoever to furnish any maintenance and support services with respect to the Licensed Application.

 

4. Warranty: You must be solely responsible for any product warranties, whether express or implied by law, to the extent not effectively disclaimed. The EULA must provide that, in the event of any failure of the Licensed Application to conform to any applicable warranty, the end-user may notify Apple, and Apple will refund the purchase price for the Licensed Application to that end-user; and that, to the maximum extent permitted by applicable law, Apple will have no other warranty obligation whatsoever with respect to the Licensed Application, and any other claims, losses, liabilities, damages, costs or expenses attributable to any failure to conform to any warranty will be Your sole responsibility.

 

5. Product Claims: You and the end-user must acknowledge that You, not Apple, are responsible for addressing any claims of the end-user or any third party relating to the Licensed Application or the end­user’s possession and/or use of that Licensed Application, including, but not limited to: (i) product liability claims; (ii) any claim that the Licensed Application fails to conform to any applicable legal or regulatory requirement; and (iii) claims arising under consumer protection or similar legislation. The EULA may not limit Your liability to the end-user beyond what is permitted by applicable law.

 

6. Intellectual Property Rights: You and the end-user must acknowledge that, in the event of any third party claim that the Licensed Application or the end-user’s possession and use of that Licensed Application infringes that third party’s intellectual property rights, You, not Apple, will be solely responsible for the investigation, defense, settlement and discharge of any such intellectual property infringement claim.

 

7. Legal Compliance: The end-user must represent and warrant that (i) he/she is not located in a country that is subject to a U.S. Government embargo, or that has been designated by the U.S. Government as a “terrorist supporting” country; and (ii) he/she is not listed on any U.S. Government list of prohibited or restricted parties.

 

8. Developer Name and Address: You must state in the EULA Your name and address, and the contact information (telephone number; E-mail address) to which any end-user questions, complaints or claims with respect to the Licensed Application should be directed.

 

9. Third Party Terms of Agreement:  You must state in the EULA that the end-user must comply with applicable third party terms of agreement when using Your Application, e.g., if You have a VoIP application, then the end-user must not be in violation of their wireless data service agreement when using Your Application.

 

10. Third Party Beneficiary: You and the end-user must acknowledge and agree that Apple, and Apple’s subsidiaries, are third party beneficiaries of the EULA, and that, upon the end-user’s acceptance of the terms and conditions of the EULA, Apple will have the right (and will be deemed to have accepted the right) to enforce the EULA against the end-user as a third party beneficiary thereof.fs12010ex10v_appsgenius.htm

Exhibit 10.5

 

APPS GENIUS CORP

EQUITY INCENTIVE PLAN

 

	
1.  

	
PURPOSE.

 

The purpose of this Apps Genius Corp Equity Incentive Plan (the “Plan”) is to advance the interests of Apps Genius Corp (the “Company”) and its subsidiaries by enhancing the ability of the Company to (i) attract and retain employees and other persons or entities who are in a position to make significant contributions to the success of the Company and its subsidiaries; (ii) reward such persons for such contributions; and (iii) encourage such persons or entities to take into account the long-term interest of the Company through ownership of shares of the Company’s common stock, par value $.0001 per share (the “Common Stock”).

 

The Plan is intended to accomplish these objectives by enabling the Company to grant awards (“Awards”) in the form of incentive stock options (“ISOs”), nonqualified stock options (“Nonqualified Options”) (ISOs and Nonqualified Options shall be collectively referred to herein as “Options”), stock appreciation rights (“SARs”), restricted stock (“Restricted Stock”), deferred stock (“Deferred Stock”), or other stock based awards (“Other Stock Based Awards”), all as more fully described below.

 

	
2.  

	
ADMINISTRATION.

 

	
(a)  

	
The Plan will be administered by the Board of Directors of the Company (the “Board”) or, upon its delegation, by the Compensation Committee (the “Committee”) of the Board of Directors (such party administering the Plan to be referred to herein as the “Administrator”).  The Administrator may be constituted to permit the Plan to comply with the “outside director” requirement of Section 162(m)(4)(c)(i) of the Internal Revenue Code of 1986, as amended (the “Code”), and the regulations promulgated thereunder, or any successor rules.  The Administrator will determine the recipients of Awards, the times at which Awards will be made, the size and type or types of Awards to be made to each recipient, and will set forth in each such Award the terms, conditions and limitations applicable to the Award granted.  Awards may be made singly, in combination or in tandem.  The Administrator will have full and exclusive power to interpret the Plan, to adopt rules, regulations and guidelines relating to the Plan, to grant waivers of Plan restrictions and to make all of the determinations necessary for its administration.  Such determinations and actions of the Administrator, and all other determinations and actions of the Administrator made or taken under authority granted by any provision of the Plan, will be conclusive and binding on all parties.  Except to the extent otherwise required under Code Section 409A, related regulations, or other guidance, the Administrator shall have the authority, in its sole discretion, to accelerate the date that any Award which was not otherwise exercisable, vested or earned shall become exercisable, vested or earned in whole or in part without any obligation to accelerate such date with respect to any other Award granted to any recipient. In addition, the Administrator shall have the authority and discretion to establish terms and conditions of Awards as the Administrator determines to be necessary or appropriate to conform to the applicable requirements or practices of jurisdictions outside of the United States. In addition to action by meeting in accordance with applicable laws, any action of the Administrator with respect to the Plan may be taken by a written instrument signed by all of the members of the Administrator, and any such action so taken by written consent shall be as fully effective as if it had been taken by a majority of the members at a meeting duly held and called.

 

  

1

  

 

	
3.  

	
EFFECTIVE DATE AND TERM OF PLAN.

 

The Plan will become effective on September 23, 2010.

 

The Plan will terminate on September 23, 2020, subject to earlier termination of the Plan by the Board pursuant to Section 18 herein.  No Award may be granted under the Plan after the termination date of the Plan, but Awards previously granted may extend beyond that date pursuant to the terms of such Awards.

 

	
4.  

	
SHARES SUBJECT TO THE PLAN.

 

Subject to adjustment as provided in Section 16 herein, the aggregate number of shares of Common Stock reserved for issuance pursuant to Awards granted under the Plan shall be five million (5,000,000) shares; provided, however, that within sixty (60) days of the end of each fiscal year following the adoption of the Plan, the Board, in its discretion, may increase the aggregate number of shares of Common Stock available for issuance under the Plan by an amount not greater than the difference between (i) the number of shares of Common Stock available for issuance under the Plan on the last day of the immediately preceding fiscal year, and (ii) the number of shares of Common Stock equal to 15% of the shares of Common Stock outstanding on the last day of the immediately preceding fiscal year.

 

The shares of Common Stock delivered under the Plan may be either authorized but unissued shares of Common Stock or shares of the Company’s Common Stock held by the Company as treasury shares, including shares of Common Stock acquired by the Company in open market and private transactions.  No fractional shares of Common Stock will be delivered pursuant to Awards granted under the Plan and the Administrator shall determine the manner in which fractional share value will be treated.

 

If any Award requiring exercise by a Participant for delivery of shares of Common Stock is cancelled or terminates without having been exercised in full, or if any Award payable in shares of Common Stock or cash is satisfied in cash rather than Common Stock, the number of shares of Common Stock as to which such Award was not exercised or for which cash was substituted will be available for future Awards of Common Stock; provided, however, that Common Stock subject to an Option cancelled upon the exercise of a SAR shall not again be available for Awards under the Plan unless, and to the extent that, the SAR is settled in cash.  Shares of Restricted Stock and Deferred Stock forfeited to the Company in accordance with the Plan and the terms of the particular Award shall be available again for Awards under the Plan unless the Administrator determines otherwise.

 

	
5.  

	
ELIGIBILITY AND PARTICIPATION.

 

Those eligible to receive Awards under the Plan (each, a “Participant” and collectively, the “Participants”) will be persons in the employ of the Company or any of its subsidiaries designated by the Administrator (“Employees”) and other persons or entities who, in the opinion of the Administrator, are in a position to make a significant contribution to the success of the Company or its subsidiaries, including, without limitation, consultants and agents of the Company or any subsidiary.  A “subsidiary” for purposes of the Plan will be a present or future corporation or other entity of which the Company owns or controls, or will own or control, more than 50% of the total combined voting power of all classes of stock or other equity interests.

 

	
6.  

	
OPTIONS.

 

	
(a)  

	
Nature of Options.  An Option is an Award entitling the Participant to purchase a specified number of shares of Common Stock at a specified exercise price.  Both ISOs, as defined in Section 422 of the Code, and Nonqualified Options may be granted under the Plan; provided, however, that ISOs may be awarded only to Employees.

 

  

2

  

 

	
(b)  

	
Exercise Price.  The exercise price of each Option shall be equal to the “Fair Market Value” (as defined below) of the Common Stock on the date the Award is granted to the Participant; provided, however, that (i) in the Administrator’s discretion, the exercise price of a Nonqualified Option may be less than the Fair Market Value of the Common Stock on the date of grant; (ii) with respect to a Participant who owns more than ten percent (10%) of the total combined voting power of all classes of stock of the Company, the option price of an ISO granted to such Participant shall not be less than one hundred and ten percent (110%) of the Fair Market Value of the Common Stock on the date the Award is granted; and (iii) with respect to any Option repriced by the Administrator, the exercise price shall be equal to the Fair Market Value of the Common Stock on the date such Option is repriced unless otherwise determined by the Administrator.  For purposes of this Plan, Fair Market Value shall mean the closing price of the Common Stock as reported on the principal securities exchange on which the Common Stock is listed, or if not so listed, the last sale price (or the average of the high asked and low bid prices of the Common Stock if sales price information is not reported) of the Common Stock as reported by the Nasdaq Stock Market or, if not reported on the Nasdaq Stock Market, by the NASD OTC Bulletin Board, “Pink Sheets” or similar quotation service.  If the Common Stock is not publicly traded, Fair Market Value shall be determined in good faith by the Board.

 

	
(c)  

	
Duration of Options.  The term of each Option granted to a Participant pursuant to an Award shall be determined by the Administrator; provided, however, that in no case shall an Option be exercisable more than ten (10) years (five (5) years in the case of an ISO granted to a ten percent (10%) stockholder as defined in (b) above) from the date of the Award.

 

	
(d)  

	
Exercise of Options and Conditions.  Except as otherwise provided in Sections 18 and 19 herein, and except as otherwise provided below with respect to ISOs, Options granted pursuant to an Award will become exercisable at such time or times, and subject to such conditions, as the Administrator may specify at the time of the Award.  The Options may be subject to such restrictions, conditions and forfeiture provisions as the Administrator may determine, including, but not limited to, restrictions on transfer, continuous service with the Company or any of its subsidiaries, achievement of business objectives, and individual, division and Company performance.  To the extent exercisable, an Option may be exercised either in whole at any time or in part from time to time.  With respect to an ISO granted to a Participant, the Fair Market Value of the shares of Common Stock on the date of grant which are exercisable for the first time by a Participant during any calendar year shall not exceed $100,000.

 

	
(e)  

	
Payment for and Delivery of Stock. Full payment for shares of Common Stock purchased will be made at the time of the exercise of the Option, in whole or in part.  Payment of the purchase price will be made in cash or in such other form as the Administrator may permit, including, without limitation, delivery of shares of Common Stock.

 

	
7.  

	
STOCK APPRECIATION RIGHTS.

 

	
(a)  

	
Nature of Stock Appreciation Rights.  A SAR is an Award entitling the recipient to receive payment, in cash and/or shares of Common Stock, determined in whole or in part by reference to appreciation in the value of a share of Common Stock.  A SAR entitles the recipient to receive in cash and/or shares of Common Stock, with respect to each SAR exercised, the excess of the Fair Market Value of a share of Common Stock on the date of exercise over the Fair Market Value of a share of Common Stock on the date the SAR was granted.

 

  

3

  

 

	
(b)  

	
Grant of SARs.  SARs may be subject to Awards in tandem with, or independently of, Options granted under the Plan.  A SAR granted in tandem with an Option which is not an ISO may be granted either at or after the time the Option is granted.  A SAR granted in tandem with an ISO may be granted only at the time the ISO is granted and may expire no later than the expiration of the underlying ISO.

 

	
 (c)  

	
Exercise of SARs.  A SAR not granted in tandem with an Option will become exercisable at such time or times, and on such conditions, as the Administrator may specify.  A SAR granted in tandem with an Option will be exercisable only at such times, and to the extent, that the related Option is exercisable.  A SAR granted in tandem with an ISO may be exercised only when the market price of the shares of Common Stock subject to the ISO exceeds the exercise price of the ISO, and the SAR may be for no more than one hundred percent (100%) of the difference between the exercise price of the underlying ISO and the Fair Market Value of the Common Stock subject to the underlying ISO at the time the SAR is exercised.  At the option of the Administrator, upon exercise, a SAR may be settled in cash, Common Stock or a combination of both.

 

	
8.  

	
RESTRICTED STOCK.

 

A Restricted Stock Award entitles the recipient to acquire shares of Common Stock, subject to certain restrictions or conditions, for no cash consideration, if permitted by applicable law, or for such other consideration as may be determined by the Administrator.  The Award may be subject to such restrictions, conditions and forfeiture provisions as the Administrator may determine, including, but not limited to, restrictions on transfer, continuous service with the Company or any of its subsidiaries, achievement of business objectives, and individual, division and Company performance.  Subject to such restrictions, conditions and forfeiture provisions as may be established by the Administrator, any Participant receiving an Award of Restricted Stock will have all the rights of a stockholder of the Company with respect to the shares of Restricted Stock, including the right to vote the shares and the right to receive any dividends thereon.

 

	
9.  

	
DEFERRED STOCK.

 

A Deferred Stock Award entitles the recipient to receive shares of Common Stock to be delivered in the future.  Delivery of the shares of Common Stock will take place at such time or times, and on such conditions, as the Administrator may specify.  At the time any Deferred Stock Award is granted, the Administrator may provide that the Participant will receive an instrument evidencing the Participant’s right to future delivery of Deferred Stock.

 

	
10.  

	
OTHER STOCK BASED AWARDS.

 

The Administrator shall have the right to grant Other Stock Based Awards under the Plan to Employees which may include, without limitation, the grant of shares of Common Stock as bonus compensation and the issuance of shares of Common Stock in lieu of an Employee’s cash compensation.

 

	
11.  

	
AWARD AGREEMENTS.

 

The grant of any Award under the Plan may be evidenced by an agreement which shall describe the specific Award granted and the terms and conditions of the Award.  Any Award shall be subject to the terms and conditions of any such agreement required by the Administrator.

 

  

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12.  

	
TRANSFERS.

 

No Award (other than an outright Award in the form of Common Stock without any restrictions) may be assigned, pledged or transferred other than by will or by the laws of descent and distribution and, during a Participant’s lifetime, will be exercisable only by the Participant or, in the event of a Participant’s incapacity, by the Participant’s guardian or legal representative.

 

	
13.  

	
RIGHTS OF A STOCKHOLDER.

 

Except as specifically provided by the Plan, the receipt of an Award will not give a Participant rights as a stockholder of the Company.  The Participant will obtain such rights, subject to any limitations imposed by the Plan, or the instrument evidencing the Award, upon actual receipt of shares of Common Stock.

 

	
14.  

	
CONDITIONS ON DELIVERY OF STOCK.

 

The Company will not be obligated to deliver any shares of Common Stock pursuant to the Plan or to remove any restrictions or legends from shares of Common Stock previously delivered under the Plan until, (a) in the opinion of the Company’s counsel, all applicable federal and state laws and regulations have been complied with, (b) until the shares of Common Stock to be delivered have been listed or authorized to be listed on the exchange or quotation system on which shares of Common Stock may be then listed or quoted, and (c) until all other legal matters in connection with the issuance and delivery of such shares of Common Stock have been approved by the Company’s counsel.  If the sale of shares of Common Stock has not been registered under the Securities Act of 1933, as amended (the “Act”), and qualified under the appropriate “blue sky” laws, the Company may require, as a condition to exercise of the Award, such representations and agreements as counsel for the Company may consider appropriate to avoid violation of such Act and laws and may require that the certificates evidencing such shares of Common Stock bear an appropriate legend restricting transfer.

 

If an Award is exercised by a Participant’s legal representative, the Company will be under no obligation to deliver shares of Common Stock pursuant to such exercise until the Company is satisfied as to the authority of such representative.

 

	
15.  

	
TAX WITHHOLDING.

 

The Company will have the right to deduct from any cash payment under the Plan or otherwise payable to the Participant taxes that are required to be withheld and to condition the obligation to deliver or vest shares of Common Stock under this Plan upon the Participant’s paying the Company such amount as the Company may request to satisfy any liability for applicable withholding taxes.  The obligations of the Company under this Plan shall be conditioned upon such payment or the making of arrangements satisfactory to the Company regarding such payments, and the Company, or any of its subsidiaries, shall, to the extent permitted by law, have the right to deduct any such taxes from any payment otherwise due to the Participant.  The Administrator may in its discretion permit Participants to satisfy all or part of their withholding liability either by delivery of shares of Common Stock held by the Participant or by withholding shares of Common Stock to be delivered to a Participant upon the grant or exercise of an Award.

 

	
16.  

	
ADJUSTMENT OF AWARD.

 

  

5

  

 

	
(a)  

	
The Administrator may make or provide for such adjustments in the numbers of shares of Common Stock covered by outstanding Awards granted hereunder, and any applicable exercise price provided in outstanding Awards and in the kind of shares covered thereby, as the Administrator, in its sole discretion, may determine is equitably required to prevent dilution or enlargement of the rights of Participants that otherwise would result from (i) any stock dividend, stock split, combination of shares, recapitalization or other change in the capital structure of the Company, or (ii) any merger, consolidation, spin-off, split-off, spin-out, split-up, reorganization, partial or complete liquidation or other distribution of assets or, issuance of rights or warrants to purchase securities, or (iii) any other corporate transaction or event having an effect similar to any of the foregoing.  Moreover, in the event of any such transaction or event, the Administrator, in its discretion, may provide in substitution for any or all outstanding awards under this Plan such alternative consideration (including cash), if any, as it may determine to be equitable in the circumstances and may require in connection therewith the surrender of all Awards so replaced.  The Administrator may also make or provide for such adjustments in the numbers of shares specified in Section 4 of this Plan as the Administrator in its sole discretion may determine is appropriate to reflect any transaction or event described in this Section 16(a); provided, however, that any such adjustment to the number specified in Section 4 will be made only if and to the extent that such adjustment would not cause any Option intended to qualify as an ISO to fail to so qualify.

 

	
(b)  

	
In the event of (i) a proposal, which is approved by the Board, of any merger or consolidation involving the Company where the Company is not the surviving entity or pursuant to which any shares of Common Stock would be converted into cash, securities or other property of another corporation or business entity (other than a merger or consolidation in which the holders of Common Stock immediately prior to the merger or consolidation continue to own at least 50% of the Common Stock after the merger or consolidation, or if the Company is not the surviving corporation, at least 50% of the common stock, or other voting securities, of the surviving corporation or other business entity immediately after the merger, consolidation or share exchange), or any sale of substantially all of the Company’s assets or (ii) any other transaction or series of related transactions as a result of which a single person or several persons acting in concert own a majority of the Company’s then outstanding Common Stock (such merger, consolidation, sale of assets or other transaction being hereinafter referred to as a “Transaction”), unless otherwise provided in a resolution adopted by the Board prior to the effectiveness of the Transaction, all outstanding Options and SARs shall become exercisable immediately before or contemporaneously with the consummation of such Transaction and each outstanding share of Restricted Stock and each outstanding Deferred Stock Award shall immediately become free of all restrictions and conditions upon consummation of such Transaction.  Unless otherwise approved in a resolution adopted by the Board prior to the effectiveness of such Transaction, immediately following the consummation of the Transaction, all outstanding Options and SARs shall terminate and cease to be exercisable.

 

 In lieu of the foregoing, if the Company will not be the surviving corporation or entity, the Administrator may arrange to have such acquiring or surviving corporation or entity, or an “Affiliate” (as defined below) thereof, grant replacement Awards which shall be immediately exercisable to Participants holding outstanding Awards.

 

The term “Affiliate,” with respect to any Person, shall mean any other Person who is, or would be deemed to be an “affiliate” or an “associate” of such Person within the respective meanings ascribed to such terms in Rule 12b-2 of the General Rules and Regulations under the Securities Exchange Act of 1934, as amended.  The term “Person” shall mean a corporation, association, partnership, joint venture, limited liability company, trust, organization, business, individual or government or any governmental agency or political subdivision thereof.

 

  

6

  

 

	
(c)  

	
In the event of the dissolution or liquidation of the Company (except a dissolution or liquidation relating to a sale of assets or other reorganization of the Company referred to in the preceding sections), the outstanding options and SARs shall terminate as of a date fixed by the Administrator; provided, however, that not less than thirty (30) days written notice of the date so fixed shall be given to each Participant who shall have the right during such period to exercise the Participant’s Options or SARs as to all or any part of the shares of Common Stock covered thereby.  Further, in the event of the dissolution or liquidation of the Company, each outstanding share of Restricted Stock and each outstanding Deferred Stock Award shall immediately become free of all restrictions and conditions.

 

	
17.  

	
TERMINATION OF SERVICE.

 

Upon a Participant’s termination of service with the Company or a subsidiary (if an employee only of a subsidiary), any outstanding Award shall be subject to the terms and conditions set forth below, unless otherwise determined by the Administrator:

 

	
(a)  

	
In the event a Participant leaves the employ or service of the Company or a subsidiary of the Company whether voluntarily or otherwise but other than by reason of the Participant’s death or “disability” (as such term is defined in Section 22(e)(3) of the Code), each Option and SAR granted to the Participant shall terminate upon the earlier to occur of (i) the expiration of the period three (3) months after the date of such termination and (ii) the date specified in the Option or SAR; provided, that, prior to the termination of such Option or SAR, the Participant shall be able to exercise any part of the Option or SAR which is exercisable as of the date of termination.  Further, each outstanding share of Restricted Stock and each outstanding Deferred Stock Award which remains subject to any restrictions or conditions of the Award shall be forfeited to the Company upon such date of termination.

 

	
 (b)  

	
In the event a Participant’s employment with or service to the Company or its subsidiaries terminates by reason of the Participant’s death or “disability” (as such term is defined in Section 22(e)(3) of the Code), each Option and SAR granted to the Participant shall become immediately exercisable in full and shall terminate upon the earlier to occur of (i) the expiration of the period six (6) months after the date of such termination and (ii) the date specified in the option or SAR.  Further, each outstanding share of Restricted Stock and each outstanding Deferred Stock Award shall immediately become free of all restrictions and conditions upon the date of such termination.

 

	
18.  

	
AMENDMENTS AND TERMINATION.

 

	
(a)  

	
The Plan may be amended, altered and/or terminated at any time by the Board; provided, that (i) approval of an amendment to the Plan by the stockholders of the Company shall be required to the extent, if any, that stockholder approval of such amendment is required by applicable law, rule or regulation; and (ii) except for adjustments made pursuant to Section 5(c), the exercise price for any outstanding Option or base price of any outstanding SAR may not be decreased after the date of grant, nor may any outstanding Option or SAR be surrendered to the Company as consideration for the grant of a new Option or SAR with a lower exercise price or base price than the original Option or SAR, as the case may be, without stockholder approval of any such action. No action to amend or terminate the Plan shall permit the acceleration of the time or schedule of any payment of amounts deemed to involve the deferral of compensation under Code Section 409A, except as may be otherwise permitted under Code Section 409A, related regulations, or other guidance.

 

	
(b)  

	
The Administrator may amend, alter or terminate any Award granted under the Plan, prospectively or retroactively, but such amendment, alteration or termination of an Award shall not, without the consent of the recipient of an outstanding Award, materially adversely affect the rights of the recipient with respect to the Award.

 

  

7

  

 

	
(c)  

	
Notwithstanding Section 18(a) and Section 18(b) herein, the following provisions shall apply:

 

	
(i)  

	
The Administrator shall have unilateral authority to amend the Plan and any Award (without Participant consent and without stockholder approval, unless such stockholder approval is required by applicable laws, rules or regulations) to the extent necessary to comply with applicable laws, rules or regulations or changes to applicable laws, rules or regulations (including, but not limited to, Code Section 409A and Code Section 422 or related regulations or other guidance and federal securities laws).

 

	
 (ii)  

	
The Administrator shall have unilateral authority to make adjustments to the terms and conditions of Awards in recognition of unusual or nonrecurring events affecting the Company or any Affiliate, or the financial statements of the Company or any Affiliate, or of changes in accounting principles, if the Administrator determines that such adjustments are appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan or necessary or appropriate to comply with applicable accounting principles.

 

	
(d)  

	
Notwithstanding any provision of the Plan, an Award or an Award Agreement to the contrary, the Administrator may (subject to any requirements imposed under Code Section 409A, related regulations, or other guidance) cause any Award (or portion thereof) granted under the Plan to be canceled in consideration of an alternative Award or cash payment of an equivalent cash value, as determined by the Administrator in its sole discretion, made to the holder of such canceled Award.

 

	
19.  

	
COMPLIANCE WITH CODE SECTION 409A

 

	
(a)  

	
Notwithstanding any other provision in the Plan or an Award to the contrary, if and to the extent that Code Section 409A is deemed to apply to the Plan or any Award granted under the Plan, it is the general intention of the Company that the Plan and all such Awards shall comply with Code Section 409A, related regulations, or other guidance, and the Plan and any such Award shall, to the extent practicable, be construed in accordance therewith.  Deferrals of shares issuable pursuant to an Option, a SAR settled in shares of Common Stock, a Restricted Award or any other Award otherwise exempt from Code Section 409A, in a manner that would cause Code Section 409A to apply, shall not be permitted.  Without in any way limiting the effect of the foregoing, in the event that Code Section 409A, related regulations or other guidance require that any special terms, provisions or conditions be included in the Plan or any Award, then such terms, provisions and conditions shall, to the extent practicable, be deemed to be made a part of the Plan or Award, as applicable. Further, in the event that the Plan or any Award shall be deemed not to comply with Code Section 409A or any related regulations or other guidance, then neither the Company, the Administrator nor their designees or agents shall be liable to any Participant or other person for actions, decisions or determinations made in good faith.

 

	
(b)  

	
Without limiting the effect of Section 19(a), above, and notwithstanding any other provision in the Plan to the contrary, the following provisions shall, to the extent required under Code Section 409A, related regulations, or other guidance, apply with respect to Awards deemed to involve the deferral of compensation under Code Section 409A:

 

  

8

  

 

	
(i)  

	
Distributions may be made with respect to Awards subject to Code Section 409A not earlier than upon the occurrence of one or more of the following events: (A) separation of service; (B) disability; (C) death; (D) a specified time or pursuant to a fixed schedule; (E) a change in the ownership or effective control of the Corporation, or in the ownership of a substantial portion of the assets of the Corporation; or (F) the occurrence of an unforeseeable emergency. Each of the preceding distribution events shall be defined and interpreted in accordance with Code Section 409A and related regulations or other guidance.

 

	
(ii)  

	
With respect to Participants who are “key employees” (as defined in Code Section 409A, related regulations, or other guidance), a distribution due to separation of service may not be made before the date that is six months after the date of separation of service (or, if earlier, the date of death of the Participant), except as may be otherwise permitted pursuant to Code Section 409A, related regulations, or other guidance. To the extent that a Participant is subject to this section and a distribution is to be paid in installments, through an annuity, or in some other manner where payment will be periodic, the Participant shall be paid, during the seventh month following separation from service, the aggregate amount of payments he or she would have received but for the application of this section; all remaining payments shall be made in their ordinary course.  The previous sentence shall be applicable only if and to the extent that it complies with Code Section 409A, related regulations, and other applicable guidance.

 

	
(iii)  

	
Unless permissible under Code Section 409A, related regulations, or other guidance, acceleration of the time or schedule of any payment under the Plan is prohibited, except that, to the extent permitted by the Administrator and to the extent such exceptions do not violate Code Section 409A, the following accelerations may be permitted in an Award:

 

	
(A)  

	
As necessary to fulfill a domestic relations order (as defined in Code Section 414(p)(1)(B));

 

	
(B)  

	
As necessary to comply with a certificate of divestiture (as defined in Code Section 1043(b)(2)); and

 

	
(C)  

	
To pay the Federal Insurance Contributions Act tax imposed under Code Sections 3101 and 3121(v)(2) on amounts deferred under the Plan (the “FICA Amount”), including the income tax at source on wages imposed under Code Section 3401 on the FICA Amount, and to pay the additional income tax at source of wages attributable to additional Code Section 3401 wages and taxes.

 

	
(iv)  

	
Except to the extent otherwise required or permitted under Code Section 409A, related regulations or other guidance, the Administrator shall (unless an individual Award Agreement provides otherwise) provide that distributions pursuant to Awards must be made no later than the later of (A) the date that is 2-1/2 months from the end of the Participant’s first taxable year in which the amount is no longer subject to a substantial risk of forfeiture; or (B) the date that is 2-1/2 months from the end of the Corporation’s first taxable year in which the amount is no longer subject to a substantial risk of forfeiture.

 

  

9

  

 

 

	
(v)  

	
Deferral Elections:

 

	
(A)  

	
In the sole discretion of the Administrator, a Participant may be permitted to make an election as to the time and form of any distribution from an Award, provided that, except as specified in (B) and (C) below, such election is made not later than the close of the taxable year preceding the taxable year in which the services for which the Award is granted are to be performed, or at such other time or times as may be permitted under Code Section 409A, related regulations, or other guidance.

 

	
(B)  

	
In the case of the first year in which the Participant becomes eligible to participant in the Plan, the election described in (A) may be made with respect to services to be performed subsequent to the election within thirty (30) days after the date the Participant becomes eligible to participate in the Plan.

 

	
(C)  

	
In the case of any performance-based compensation (as that term is defined in Code Section 409A, related regulations, or other guidance), where such compensation is based on services performed over a period of at least twelve months, the election described in (A) may be made no later than six months before the end of the period.

 

	
(vi)  

	
To the extent that the Administrator, in its sole discretion, permits a subsequent election to delay a payment or change the form of payment that has been specified under (A), (B) or (C) above, the following provisions shall apply:

 

	
(A)  

	
Such election may not take effect until twelve months after the date on which the election is made;

 

	
(B)  

	
Where the payment is to be made for reasons other than death, disability or unforeseen hardship, as those terms are defined in Section 18(b)(i), above, the first payment with respect to which such election is made must be deferred for a period of not less than five years from the date such payment would otherwise have been made; and

 

	
(C)  

	
Any election related to a payment based upon separation from service, as that term is defined in Section 18(b)(i), above, may not be made less than twelve months prior to the date of the first scheduled payment hereunder.

 

	
 20.  

	
SUCCESSORS AND ASSIGNS.

 

The provisions of this Plan shall be binding upon all successors and assigns of any such Participant including, without limitation, the estate of any such Participant and the executors, administrators, or trustees of such estate, and any receiver, trustee in bankruptcy or representative of the creditors of any such Participant.

 

	
21.  

	
MISCELLANEOUS.

 

	
(a)  

	
This Plan shall be governed by and construed in accordance with the laws of the State of Nevada.

 

	
(b)  

	
Any and all funds received by the Company under the Plan may be used for any corporate purpose.

 

	
(c)  

	
Nothing contained in the Plan or any Award granted under the Plan shall confer upon a Participant any right to be continued in the employment of the Company or any subsidiary, or interfere in any way with the right of the Company, or its subsidiaries, to terminate the employment relationship at any time.

 

 

10

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