Document:

exv4w11

 

EXHIBIT 4.11

[Translation]

Outsourcing Agreement

Crayfish Co., Ltd. (“the Company”) and CalltoWeb Inc. (“CTW”) (each a “party”
and collectively the “parties”) hereby agree that the Company shall outsource
to CTW its hosting related operations described in Article 2 of this
outsourcing agreement (“the Agreement”) as follows.

Section 1

General Statement

Section 1 (Definition)

Terms used hereto shall be defined as follows:

	1.	 	The “Service” shall mean DESKWING service provided by the Company.
	 
	2.	 	“The Basic Service” shall mean hosting services wherein: (i) the Company
or a third party designated by the Company administers computer equipment
connected to the internet (“Servers”); (ii) the Company lends electronic
storage spaces that enable customers to store data of customers for the
purpose of using services such as email; (iii) the Company or a third
party designated by the Company maintains and administers server settings
and connections; (iv) the Company gives customers the right to use the
Servers.
	 
	3.	 	“New Service” shall mean an optional fee-based or free service other than
the Basic Service hosted on DESKWING servers.
	 
	4.	 	“SSE” shall mean the operating system and support application for
DESKWING.
	 
	5.	 	“Customers” shall mean any individual or corporation who applies for the
use of the Basic Service.

Article 2 (Outsourcing)

The Company shall outsource to CTW the following operations (“the Operations”)
and CTW shall undertake to carry out the Operations (“Undertaking”). CTW shall
act pursuant to the Company’s oral or written instructions in connection with
the Undertaking.

Operations of call center

	 	 	a)    Responding to inquiries regarding status of contracts

	 
	 	 	b)    Responding to inquiries regarding technical matters

	 
	 	 	c)    Telemarketing

	 
	 	 	d)    Collecting data (e.g. number of incoming calls, status of
documents, etc.)

	2.	 	Operations connected with those above.
	 
	3.	 	Other operations as designated by the Company.

Article 3 (Responsibility for the Undertaking)

	1.	 	In order to provide the Service continually and steadily, CTW
acknowledges the “DESKWING Service Agreement” between the Company and
Customers.
	 
	2.	 	If a dispute arises with third parties and CTW in connection with the
Operations or Undertaking, CTW shall

 

 

	 	 	undertake to manage such dispute
without assistance from the Company, including using its own expenses. The
Company shall use its own expenses and responsibilities to manage a
dispute based on the Service, in which case CTW shall cooperate with the
Company to defend the Company if the Company has requested CTW to do so.

Section 2

Information sharing and call center capacity

Article 4 (Sharing information related to the operation of the call center)

	1.	 	The Company and CTW shall promptly exchange information required for the
Undertaking.
	 
	2.	 	If a Customer asserts a claim relating to the failure of CTW to promptly
exchange information as provided above, CTW shall report the reason for
such delay to the Company and respond to the Customer by giving accurate
information, etc.
	 
	3.	 	If the Company, a Customer or third party incurs damages due to the delay
of such notification by CTW, CTW shall indemnify the party incurring such
damages.

Article 5 (Limitation on call center capacity)

	1.	 	If the number of calls from Customers to CTW increases during a billing
period or when the Service has experienced problems, then CTW shall report
to the Company the number of Customer calls, accordingly discuss the same
with the Company, and research the structure of its call center and
increase the number of its employees if necessary.

Section 3

Others

Article 6 (Outsourcing fees)

	1.	 	The Company shall pay outsourcing fees to CTW as consideration for the
Undertaking.
	 
	2.	 	The amount of outsourcing fees, payment schedule and method shall be
defined in a separate agreement between the Company and CTW.

Article 7 (Damages for delay)

In the case that payments by the Company or CTW pursuant to the Agreement are
late, such past due amounts shall accrue interest at an annual rate of 14.5%
per annum from the first past due date until the date such funds have been paid
in full.

Article 8 (Compensation)

If CTW damages the Company or a third party by breaching any provision of the
Agreement, CTW shall compensate the Company or third party in the amount of
such damages.

Article 9 (Enumerated breaches)

If any of the following events has occurred in connection with either party
(the “Breaching Party”), the Breaching Party shall forfeit any profits, under
the Agreement or any other agreement between the parties, that it may have
earned during the remainder of its term to fulfill its obligations, and
immediately carry out the remainder of its obligations, under the Agreement or
any other agreement between the parties, immediately upon the request by the
other:

 

 

	 	 	a)     provisional seizure, seizure, provisional injunction, execution,
coercive collection, and other legal enforcements;
	 
	 	 	b)     arrangement, reorganization, special liquidation, bankruptcy, civil
reorganization or other
procedure;
	 
	 	 	c)     if any bill or check drawn, guaranteed, accepted and delivered is
dishonored;
	 
	 	 	d)     payment suspension or stop of payment, and a state of economic
turmoil;
	 
	 	 	e)     dissolution or if dissolution is imminent.

Article 10 (Termination)

	1.	 	The Company or CTW may terminate the Agreement and other related annexed
agreements (“Related Agreements”) without notice upon: a) the occurrence
of any of the events described in Article 9; b) breach of the Agreement
(including the Related Agreements) by either the Company or CTW and
failure to cure such breach within 10 days following a request to cure
such breach; and c) the breach of the Agreement (including the Related
Agreements) by CTW or the Company and a resulting inability to recover
damages due to such breach.
	 
	2.	 	The Company may terminate the Agreement by giving written notice one
month prior to termination without payment of damages.

Article 11 (Offset)

Any party shall be entitled to offset costs or losses incurred in connection
with any agreement between
the Company and CTW against any owned amounts by the other party without
limitation those costs or losses incurred pursuant to the Agreement,
irrespective of whether such costs or losses were inferred before or after the
due date for payment.

Article 12 (Term of the Agreement)

The Agreement shall be effective for five (5) years from the date of its
agreement. The Agreement shall be extended on the same terms and conditions for
one (1) year beginning on the day following the expiry of the Agreement unless
the Company or CTW gives written notice to terminate the Agreement one month
prior to the expiry of the Agreement. The same shall apply to subsequent
extensions.

Article 13 (Confidentiality)

Each of the Company and CTW shall not disclose to any third party the
information of the other party regarding its operations and technology acquired
in relation to the execution of the Operations except for the purpose of the
Agreement.

Article 14 (Protection of customer information)

	1.	 	CTW acknowledges that customer information acquired in relation to the
execution of the Operations is the property of the Company and shall not
disclose such information to any third party for any purpose other than
for the Undertaking.
	 
	2.	 	CTW shall maintain the confidentiality of matters in connection with the
Agreement, the bill of Protection of Individual Information, the Law
concerning Prevention of Unfair Competition and the Telecommunication
Business Law.
	 
	3.	 	CTW shall appoint a manager in the department where its employees execute
Operations with a server, owned by

 

 

	 	 	the Company, administrating customer
information, and CTW shall notify the Company of the manager’s identity.
	 
	4.	 	CTW shall form an agreement with the manager described above wherein the
manager shall be obligated to protect the confidentiality of customer
information pursuant to Articles 13 and 14 of the Agreement.

Article 15 (Trademark)

CTW may use the Service trademark free of charge if necessary for the
Undertaking upon obtaining the Company’s prior consent.

Article 16 (Intellectual property)

Intellectual property rights including but not limited to copyrights, industry
property rights and know-how in relation to the Service are as follows:

	a)	 	If intellectual property is invented by one of the parties, the
underlying intellectual property rights shall belong to the party who
invents it, and the other shall use such property as long as necessary for
the Undertaking.
	 
	b)	 	If the invention does not fall into a) above, the intellectual property
right shall be determined upon discussion between the Company and CTW,
provided however that the Company may use such intellectual property free
of charge to provide the Service even if such intellectual property is
determined to be the property of CTW.

Article 17 (Assignment)

Each of the Company and CTW shall not transfer, succeed, charge and pledge all
or part of its rights or obligations pursuant to the Agreement to a third party
without prior notice.

Article 18 (Expenses for the Agreement)

Stamps and other expenses occurring in relation to forming the Agreement shall
be borne equally by the Company and CTW.

Article 19 (Jurisdiction)

In case a dispute arises in relation to the Agreement, Tokyo District Court
shall be an agreed court of competent jurisdiction for first trial.

Article 20 (Governing law)

Matters in relations to the Agreement shall be governed by Japanese Law.

IN WITNESS WHEREOF, each of the parties shall execute the Agreement and
the Company shall keep the original while CTW shall keep the copy of it.

The date of the Agreement: August 1, 2002

Crayfish Co., Ltd.

Toshima-ku, Ikebukuro 2-2-1 Tokyo

/s/ Kazuhiko Muraki sealed by stamp

Kazuhiko Muraki

 

 

President and Representative Director

CalltoWeb Inc.

Toshima-ku, North Ikebukuro 2-49-7 Tokyo

/s/ Takashi Tamamura sealed by stamp

Takeshi Tamamura

President and Representative Directorexv4w12

 

Exhibit 4.12

[Translation]

**       This exhibit contains confidential
material which has been omitted pursuant to a Confidential Treatment Request. The omitted information has
been filed separately with the Securities and Exchange Commission.

Outsourcing Fee Agreement

This agreement (“Agreement”) is made between Crayfish Co., Ltd. (“Crayfish”)
and CalltoWeb, Inc. (“CTW”) (the “Parties”) based on Article 6 of the
Outsourcing Agreement between the Parties (“Outsourcing Agreement”) wherein
Crayfish has outsourced a part of its hosting business to CTW.

Paragraph 1. Outsourcing fee

     Crayfish will pay the below outsourcing fee (“Fee”) to CTW every month and
the Fee is based upon the running cost necessary to operate call-center
(“Running Cost”) as defined below.

Fees**

NOTE: “Running Cost” shall be computed by Crayfish by estimating costs
necessary for CTW to carry out the call-center operations.

Paragraph 2. Payment date and method

	 	1.	 	CTW shall send an invoice to Crayfish by the 10th day of the month
following the month for which the Fee has been invoiced (“Invoice
Month”). Crayfish will pay to CTW the Fee pursuant to the invoice on the
30th day of the month following the month in which Crayfish has received
the invoice (Crayfish shall be responsible for costs incurred in
connection with rendering payment). If the invoice payment date coincides
with a financial holiday, rendering it impossible for Crayfish to affect
payment, Crayfish shall pay CTW on the following business day.

	 
	 	2.	 	Crayfish will notify CTW of any discrepancies in the invoice and the
Parties will work to resolve such discrepancies.
	 
	 	3.	 	With respect to “2” above, Crayfish shall pay the Fee on the 30th day
of the month following the month in which such discrepancies are
resolved.

Paragraph 3. Amendment of outsourcing fee

Crayfish and CTW shall review the adequacy of Fee for the three months
following November 2002. Moreover, in regard of the Fee after January 2003,
every three months, Crayfish and CTW will jointly review the Fee to check for material differences between Fees based on Running
Costs and those based on actual costs incurred to operate the call-center. If
discrepancies exist, the parties shall appropriately adjust the Fee.

Paragraph 4. Outsourcing costs

	1.	 	In order for CTW to carry out the call-center operation, Crayfish may
lend its assets or employees (“Assets”) to CTW, or may second its
employees to CTW. In order for CTW to maintain and protect the Assets, CTW
will make a good faith effort to assume an assignment of third party
contracts (“Third Party Contract”).
	 
	2.	 	Notwithstanding the above, if CTW is unable to assume an assignment of
such Third Party Contract, or if such assumption is delayed, then CTW
shall compensate Crayfish for all costs expended as a result of CTW’s
inability to

 

 

	 	 	assume the assignment of the Third Party Contract.
	 
	3.	 	If Crayfish has expended costs in connection with “2” above, Crayfish
shall invoice CTW for such expenses in the month in which they were
incurred, and CTW shall pay Crayfish pursuant to instructions per the
invoice.

	4.	 	Notwithstanding this Paragraph 5, if CTW and Crayfish enter into a
separate agreement regarding the Assets, the Parties shall follow such
separate agreement.

Paragraph 5. Other fees

CTW and Crayfish shall enter into a separate agreement regarding covering other
fees required to carry out the Undertaking (e.g. laying telephone lines).

Paragraph 7. Others

Matters not addressed in this Agreement shall be governed by the Outsourcing
Agreement.

IN WITNESS WHEREOF, each of party shall execute the Agreement in duplicate and
each of Crayfish and CTW shall retain one original copy.

The date of the Agreement: August 1, 2002

Crayfish Co.,Ltd.

Toshima-ku Ikebukuro 2-2-1 Tokyo

/s/ Kazuhiko Muraki sealed by stamp

Kazuhiko Muraki

President and Representative Director

CalltoWeb, Inc.

Toshima-ku, North Ikebukuro 2-49-7 Tokyo

/s/ Takeshi Tamamura sealed by stamp

Takeshi Tamamura

President and Representative Director

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