Document:

Telematics Services Agreement

 EXHIBIT 10.3 
  
 CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS OF 
 THIS DOCUMENT HAVE BEEN REDACTED AND HAVE BEEN SEPARATELY 
 FILED WITH THE
COMMISSION.*** 
  

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 TELEMATICS SERVICES AGREEMENT 
  
 This Telematics Services Agreement (hereinafter the “Agreement”) is made as of this 31st day of March, 2003 (hereinafter “Effective Date”) by and between ATX Technologies, Inc. (hereinafter
“ATX”) and Mercedes-Benz USA, LLC (hereinafter MBUSA) each of whom may be hereafter referred to individually as “party” or collectively as the “parties.” 
  
 WHEREAS, MBUSA is in the business of, among other things, distributing, marketing and selling Mercedes-Benz passenger cars
and light trucks and Maybach passenger cars equipped with “Tele Aid” devices capable of communicating with one or more ATX service centers (hereinafter collectively “Vehicle(s)”); and 
  
 WHEREAS, ATX is in the business of, among other things, providing
location-based emergency, navigation, and information services; location data; and connectivity, infrastructure, and support services for the integration of third parties’ service offerings (collectively, the “Telematics Services”);
and 
  
 WHEREAS, the parties desire to enter an agreement pursuant
to which ATX will continue to be the exclusive provider of Telematics Services for certain Vehicles sold or leased by MBUSA under the terms and conditions of this Agreement; 
  
 NOW, THEREFORE, for and in consideration of the foregoing, the mutual promises and covenants contained herein, and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 
  
 TERMS AND CONDITIONS 
  
 1. THE TELEMATICS SERVICES. The Telematics Services (hereafter “Services”) shall be provided via telephone or other electronic means and shall consist of
a variety of packages, all as more fully described in Exhibit A attached hereto and hereby made a part of this Agreement. The features making up Services may be amended from time to time during the term of this Agreement, which such amendment
will be reflected in a revised Exhibit A, signed by both parties. Upon the execution of such a revised Exhibit A, the amended exhibit shall become the effective exhibit and shall replace the previous exhibit in its entirety without the
need for further amendment of this Agreement. 
  
 ATX will be the
exclusive provider of the Services during the term of the agreement to those owners/lessees of Vehicles, which are equipped with Tele Aid devices and for which the Vehicle owner/lessee maintains an account, which is registered and active
(hereinafter “Customer”). The foregoing notwithstanding, the parties hereto agree than an account will be registered and active for those Services identified as “Basic Package” on Exhibit A for a period of one year from
initial retail sale during which period the Basic Package Services will be provided *** as long as ***. The Services shall be further provided in accordance with the terms and conditions outlined in the “ATX Policies and Procedures” (as

  
 ***Confidential material redacted and filed
separately with the Commission 
  

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amended from time to time by agreement of the parties,) an outline of which is attached hereto as Exhibit B, and hereby made part of this Agreement.
ATX shall, throughout the term of this Agreement maintain necessary “800” number lines, as mutually agreed to by MBUSA and ATX, to provide services hereunder. Said numbers shall be dedicated to MBUSA related services only and upon
termination of this Agreement, the “800” numbers shall be assigned to ATX and ATX shall assume payment obligations therefore. MBUSA agrees to pay the costs associated with said 800 numbers for both monthly and per minute charges during the
Term of this Agreement. The current 800 numbers dedicated to MBUSA are identified on Exhibit C attached hereto. 
  
 Tele Aid devices shall be standard equipment across all model lines identified on Exhibit A “Consumer Price and Fee Arrangement”. For
model lines identified on Exhibit D, for which Tele Aid is provided as optional equipment, the per Vehicle fee for Tele Aid Services shall, in addition to the standard fee identified on Exhibit A, include the supplemental fee
identified on Exhibit D. The foregoing sentence notwithstanding, MBUSA may choose to make Tele Aid optional on model lines listed on Exhibit A; however, such action will result in a renegotiation of the pricing for the Services. The
parties further agree that pricing for Services shall not be affected by the introduction by MBUSA of classes of vehicles, other than those classes and models listed on Exhibit A with Tele Aid as optional equipment; except that pricing
for such newly introduced vehicles shall be as set forth on Exhibit A along with the supplemental pricing formula set forth on Exhibit D. 
  
 2. ATX DUTIES AND RESPONSIBILITIES. 
  
 A. Service Level Requirements. 
  

	 	(1)	Upon reviewing an alarm call and determining the type of assistance needed, ATX will request dispatch of assistance, if warranted by such call. 

  

	 	(2)	Airbag and emergency button alarms will be answered on a monthly average in *** seconds or less. All other calls shall be answered, on a monthly average in *** seconds or
less. The parties agree, however, that failure to meet such answer speeds shall not constitute a material breach, but rather will trigger a review of the program by the parties, at which ATX will define for MBUSA the source and scope of any problems
associated with failure to meet the answer speed and provide MBUSA with a written plan of action to address such failure and to meet the above stated standard. Should ATX continue to fail to meet said standard after sixty (60) days beyond the
development of the written plan of action noted above, such failure, shall constitute a material breach hereunder. 

  

	 	(3)	ATX will measure its response time to all alarms and service calls on the ATX automation system Response Time reports. “Response Time” shall mean the time from data
transmission completion until the time when a call handler acknowledges the alarm call. “Data transmission completion,” means the point in time in which an alarm signal has been received, processed and made available in the operator’s
alarm queue, ready for acknowledgment. ATX will measure the 

  
 ***Confidential material redacted and filed separately with the Commission 
  

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time elapsed between receipt of the call and dispatch of assistance on a dispatch report. ATX will provide MBUSA with copies of the ATX Response Time reports
within seven (7) business days of the end of each month. In addition, ATX will compile Service Level Reports summarizing response time, time to dispatch request, average speed of answer and disposition of alarm and service calls and will provide
such reports to MBUSA within seven (7) business days of the end of each calendar month. 

  

	 	(4)	Semi-annual “Service Level Review/Quality Control Meetings” will be scheduled at either ATX or MBUSA to review service levels and related issues for the Services. In
addition, MBUSA shall have the right to review tapes of calls received by ATX, upon seven (7) days prior notice. 

  

	 	(5)	ATX will maintain a quality control program to monitor and evaluate individual call handler performance to assure adherence to program parameters and standards.

  

	 	(6)	ATX will notify MBUSA on an ongoing basis of general customer issues, including but not limited to, service level concerns, customer complaints, customer mailings or other
correspondence. The parties agree to work together to mutually resolve any such issues that create concern for either MBUSA or ATX. 

  
 B. Termination of Customer Accounts. The parties hereto agree that all Services including cellular service will be available and activated only
upon the Vehicle owner’s or Lessee’s execution of a retail agreement for same, in a form mutually agreed to by MBUSA and ATX and upon the Vehicle owner’s payment of the fee for same as established by ATX. The above notwithstanding,
the parties hereto agree that ATX’s Services (excluding airtime charges) for the first year after the retail sale of a Mercedes-Benz vehicle shall be provided at no charge to the customer or MBUSA as long as Tele Aid becomes standard equipment
on all vehicles of a given model class which Tele Aid is offered. A copy of the terms and conditions of the retail agreement which the parties shall employ is attached hereto as Exhibit E. ATX reserves the right, upon notice to MBUSA, and
upon MBUSA’s approval, which shall not be unreasonably withheld, to make changes to such retail agreement, consistent with changes or developments in the law, the Services or industry standards. ATX’s request for approval of such changes
must be responded to within thirty (30) days. After thirty (30) days said request shall be deemed approved by MBUSA. Such changes shall not be retroactively effective to customers unless specifically authorized or required by law. Unless otherwise
agreed by the parties in writing, fees for the Services provided throughout the term of this Agreement shall be charged for periods of no less than one year. Customer accounts will only be terminated upon the expiration of the retail agreement term
if there has been no renewal made by the Vehicle owner or material failure to comply with the terms and conditions of the retail agreement including cellular service. Prior to deactivation of Services for non-payment or non-renewal, ATX will send a
letter to Customer at the address on record, notifying of the intention to deactivate. 
  

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 C. Records Retention. ATX will provide, at its facility, the necessary equipment to record and
store all relevant data electronically or via magnetic media in accordance with the schedule attached hereto as Exhibit F. Records are to be maintained and destroyed in a manner consistent with a legally compliant, commercially reasonable
record retention and destruction policy. ATX will make the records available for inspection by MBUSA or its designated representative, at times reasonably requested by MBUSA, and will cooperate with MBUSA in such inspection. 
  
 D. Reports and Presentations. ATX and MBUSA shall make Telematics
Customer information available as mutually agreed by ATX and MBUSA, and as specified in Exhibit N. ATX shall provide to MBUSA, in such manner and at such time as same is reasonably available, a sales tax report to allow MBUSA to remit sales
tax collected from MBUSA Customers. MBUSA shall, in addition, have authority to determine the content, form and submission or presentation schedule of any other reports, presentations and milestones required under this Agreement, subject to the
reasonable security or business needs of ATX. 
  
 3. MBUSA DUTIES AND
RESPONSIBILITIES. 
  
 A. Activation. 
  
 (1) MBUSA agrees that the Tele Aid system is designed so that the Tele Aid
activation light will remain lighted unless the service is activated. The foregoing sentence notwithstanding, MBUSA shall have the right to permit disconnection of the activation light for Customers who request, in a writing satisfactory to MBUSA
and ATX, that the feature be disabled. 
  
 (2) MBUSA agrees to
include an activation sticker on the Tele Aid system, which indicates to customers that some action is required on their part to activate the system. This sticker will be clearly visible in the glove box of the vehicle at the time the vehicle is
delivered to its original owner/lessee or any subsequent owner/lessee who takes delivery of the vehicle from a MBUSA affiliate. 
  
 B. Owner’s Manual & POS Information. MBUSA will support the Tele Aid product through its marketing programs and include product
information in vehicle literature packages, specifically including a phone number for customer service. 
  
 C. Maintenance Schedule: MBUSA will add a test of the Tele Aid system into the maintenance schedule of a vehicle to test both the hardware and the
Services of the system at each maintenance interval as called for in the vehicle’s Flexible Service System. 
  
 D. Subscriber Agreement: MBUSA agrees to add the presentation of a subscriber agreement as a requirement to the vehicle sales process for MBUSA
dealerships, including completion of the subscriber agreement indicating acceptance or declination of service. 
  

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 E. Renewal Marketing and Retention Bonus. ATX and MBUSA shall mutually develop a marketing plan,
including expenditures to be made therefor, beginning within forty-five (45) days of signature of this Agreement. Provided that MBUSA provides funding of such plan, then the retention bonus described in Section 4.H. below shall become
effective and payable at the end of the first month following the acceptance of the marketing plan. If MBUSA does not provide funding for the marketing plan for any given year, then the retention bonus shall not apply for that year. See Exhibit
L attached hereto for a description of minimum marketing commitments. 
  
 F. Time for Responses. Except as indicated otherwise herein, MBUSA shall respond to all ATX requests for approval on pricing proposals, and policy and procedure changes within thirty (30) days of submission
thereof. 
  
 4. PRICING AND PAYMENTS. 
  
 A. Fees. The cellular service fees to be charged to the Customer
throughout the Term of this Agreement shall be in accordance with the fee structure outlined in Exhibit G (as amended from time to time by written agreement of the parties) entitled, “Cellular Pricing and Procedure
Schedule,” attached hereto and hereby made a part of this Agreement. Charges for the Services packages are set forth in Exhibit A and payments to ATX for the optional model class are set forth on Exhibit D. The above
identified fees to Customer as contained in Exhibits A and G exclude all applicable taxes. ATX shall bill the Customers for all applicable taxes, as identified in Exhibit G. 
  
 B. Payments. Payments for the Services fees shall be made directly by
the customer in accordance with the terms of the ATX retail agreement. Neither MBUSA nor any of its affiliates, parent or subsidiary entities or dealers shall be obligated to pay, guarantee payment of, or make any effort to collect any Services
fees. Payments for cellular service fees shall be made directly by MBUSA to the cellular service provider and ATX shall remit to MBUSA, carrier-charged cellular service fees and taxes with respect thereto collected from the customer in accordance
with Exhibit G. Neither ATX nor any of its affiliates, parent or subsidiary entities, or dealers shall be obligated to pay, or guarantee payment of cellular service fees. 
  
 C. Collection Schedule. The collection schedule for ineffective credit cards is listed in Exhibit H.

  

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 D. Additional Service Costs. MBUSA shall pay to ATX the amount of any initial set up fee (or
similar fee) and ongoing service fees and other charges payable by ATX to third party providers of concierge services to MBUSA Customers. Payments of such fees shall be deducted from the quarterly settlement statements by ATX. ATX will use
commercially reasonable efforts to obtain 2%, 10, net 30 terms with all third party vendors providing services on behalf of MBUSA and ATX in support of Tele Aid services. 
  
 E. Travel Expenses. MBUSA may be asked to reimburse travel expenses (in accordance with MBUSA travel policy attached
to this Agreement as Exhibit M) incurred by ATX, for trips that are not related to the daily business of ATX in providing the Services under this Agreement. Examples of such trips include, but are not limited to, COMDEX or other trade shows,
auto shows, dealer training events, media/press events, “Ride and Drive”. ATX shall not be reimbursed for routine travel to MBUSA’s offices that are incident to overall program management. 
  
 F. Fee Arrangement. The fees payable to ATX for its services to MBUSA
under this Agreement are set forth in this Section 4 and on Exhibits A, D and G hereto. Unless otherwise provided herein, such fees shall be deducted by ATX from amounts actually collected on behalf of MBUSA from Customers for
Services. Within 60 days after the end of each calendar quarter (ending March 31, June 30, September 30 or December 31, as the case may be), ATX shall remit to MBUSA the amounts actually collected from Customers for Services less (1) the amounts
payable to ATX as set forth on Exhibits A, D and G; and (2) any amounts resulting from refunds made to Customers under the mutually agreed refund policy and retroactive Customer refunds outside the refund policy processed at the request of
MBUSA, to the extent such refunds are applicable to periods during which ATX provided Services to such Customers, provided however, that ATX shall not deduct any refunds resulting from ATX’s failure to meet its obligations under this Agreement;
and (3) amounts due to ATX under Sections 4.A., (including Exhibit G), 4.D., and 4.E. MBUSA further agrees that to the extent any amounts payable to ATX under this Section 4.F. exceed amounts collected from Customers for
Services, MBUSA shall pay ATX for such shortages within 30 days of receipt of an invoice therefore. ATX’s payment or invoice, as the case may be, will be accompanied by a settlement statement in a form to be mutually agreed upon. 
  
 G. Payment of Development Costs. MBUSA shall have the option to pay
ATX in advance for anticipated development costs and expenses for new or enhanced Telematics Services and in turn recoup such amounts through a reduction in the fees otherwise payable to ATX for certain of its services under this Agreement. In
addition, the parties may wish to engage in special projects that may be related to products or services that are not core to Telematics Services (e.g., website hosting and support). Should the parties decide to pursue such development efforts or
special projects, then they shall negotiate in good faith to determine the reasonably anticipated amount of such costs and expenses associated with the project and agree upon a fee arrangement or pricing schedule, all of which shall 

  

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be documented in separate statements of work (SOW) that set forth the respective duties and obligations of the parties with regard to the project, the
estimated costs and expenses, and any pricing arrangements. Each such SOW shall be in writing and shall be an addendum to this Agreement. 
  
 With respect to any services developed by ATX specifically for MBUSA Customers for which substantially all of the development costs were borne by MBUSA
pursuant to this Section 4.G. and which are not generally available from another company in the telematics industry, ATX shall not offer such services to anyone other than MBUSA Customers for a period of *** months after such services are
first offered to MBUSA Customers. 
  
 H. Retention Bonus.
The following provisions of this Section 4.H. are subject to the restrictions of Section 3.E. of this Agreement. 
  
 (1) Beginning on the first full calendar month following the first anniversary of this Agreement, ATX shall pay to MBUSA or MBUSA shall pay to ATX, as the
case may be, an amount based on the number of paying subscribers of Services that elect to purchase their second year of Services, as a percentage of the total number of Vehicles with active subscriptions sold or leased during the same month of the
previous year (the “Retention Rate”), as more fully described in this Section 4.H. 
  
 (2) Within 60 days after the end of each month during the Term of this Agreement, beginning on the first full calendar month following the first
anniversary of this Agreement, ATX and MBUSA shall cooperate in good faith to determine the Retention Rate. 
  
 (3) Within 90 days after the end of each such month, ATX shall pay to MBUSA or MBUSA shall pay to ATX, as the case may be, an amount based on the extent
to which the Retention Rate is greater than or less than the threshold percentages set forth on Exhibit I attached hereto, at the rates set forth therein. 
  
 5. WARRANTIES AND REPRESENTATIONS. 
  
 A. Standards. ATX warrants and represents that it satisfies the requirements that would typically result in Underwriters Laboratories, Inc. listing
if such listing were available for telematics businesses. ATX further represents that should such listing become available, it will obtain said listing. ATX further represents that it will continue to have a dedicated quality function responsible
for guiding the company in its efforts to meet applicable standards and certifications for service businesses. 
  
 B. Backup Procedures. ATX warrants and represents that it maintains and shall throughout the term of this Agreement maintain an updated written
disaster recovery plan which incorporates and requires testing of hot site processing on at least an annual basis with a maximum recovery time objective of twenty four (24) hours. Such plan shall 
  
 ***Confidential material redacted and filed separately with
the Commission 
  

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provide for, (i) high availability design of its systems which minimizes single point failures through the use of dual redundant network paths, (ii) Two
fully redundant sites with each having the capacity of providing real time operations at any time, and (iii) a procedure by which systems at both sites are tested daily through both automated and manual procedures managed by the computer operators
on duty and by a continuous automated test program to conduct continuous component monitoring and testing. Further, ATX warrants and represents that said plan contains provisions for offsite storage of daily backup copies of electronic media and any
other vital records. MBUSA reserves the right to annually audit the offsite recovery test results to satisfy itself of ATX’ alternate processing capabilities. 
  
 6. TRADEMARKS AND USE OF NAME. 
  
 A. MBUSA and/or its affiliated companies may, in their sole discretion, from time to time grant to ATX the right to use trademarks, trade name, service
marks and logos owned by MBUSA or by its affiliates in connection with the documentation, presentation and marketing of the various Services to be provided by ATX, which uses will be subject to prior approval of MBUSA. ATX will have no interest in
or right to the use of such names, marks and/or logos, except the limited right of usage thereof as may be granted in connection with this Agreement during its term. ATX may not use any such MBUSA trademark, trade name, service mark or logo until
ATX has obtained the written approval of MBUSA and understands that MBUSA has adopted guidelines regarding the use of such trademark and logos, including guidelines governing color, size, typeface and style, and ATX agrees to comply with all such
guidelines of which it is made aware. 
  
 B.
Trademarks-ATX. ATX and/or its affiliated companies may, from time to time, grant to MBUSA the right to use trademarks, trade name, service marks and logos owned by it or by its affiliates in connection with the documentation, presentation
and marketing of the various services to be provided by MBUSA. MBUSA will have no interest in or right to the use of such names, marks and/or logos, except the limited right of usage thereof granted in connection with this Agreement during its term.
MBUSA may not use any such ATX trademark, trade name, service mark or logo until MBUSA has obtained the written approval of ATX and understands that ATX has adopted guidelines regarding the use of such trademark and logos, including guidelines
governing color, size, typeface and style, and MBUSA agrees to comply with all such guidelines of which it is made aware. 
  
 7. CONFIDENTIAL INFORMATION. The parties hereto acknowledge that they have entered into a Mutual Confidentiality Agreement attached hereto as Exhibit J, and
agree that the terms of said Mutual Confidentiality Agreement, and the obligations stated therein, are incorporated herein and shall apply throughout the Term of this Agreement and thereafter as long as the information remains confidential as that
term is defined in the Mutual Confidentiality Agreement. In addition, ATX hereby further agrees that the list of users, and information with respect to those users, it obtains from providing Services hereunder shall be maintained as confidential
information and shall not be used by ATX or sold or rented by ATX to any third party for any use whatsoever, other than for the provision of Services hereunder. Notwithstanding the foregoing, ATX may collect behavior or other data from Customers

  

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for its use in further developing and enhancing the Telematics Services business, provided no such data can be used to individually identify any Customers.

  
 8. TERM AND TERMINATION. 
  
 A. Term. Unless otherwise terminated as provided for in Sections
8.B. and 8.C., the term of this Agreement shall be for four (4) years from the effective date (the “Term”). Notwithstanding the foregoing sentence, except as provided for in Sections 8.B. or 8.C., this Agreement shall not
terminate unless either party has given at least two (2) years advanced written notice to the other of its desire to so terminate, such that the Term shall be extended until the day that is two years from the date such notice is given. Further,
MBUSA agrees that ATX shall have the right to continue to market on a non-exclusive basis the Services for the life of those Vehicles sold with the Tele Aid devices during the Term of this Agreement. Any renewal or extension of this Agreement beyond
the Term must be in writing and signed by both parties. 
  
 B.
Termination for Non-Performance. Either party may terminate this Agreement at any time for material non-performance by the other party. In the event that either party desires to so terminate this Agreement, that party must first provide to
the other party prior written notice of the non-performance and afford that party no less than ninety (90) business days within which to cure any problems, defaults or other material deficiencies in its performance. If no cure is successful in
eliminating the problems resulting in the material non-performance within the ninety (90) business day period following the delivery of the notice of non-performance, then the aggrieved party shall notify the other party of failure to cure and may
terminate the Agreement effective with such notice of failure to cure. 
  
 C. Termination due to Change in Control. If ATX issues capital stock, or grants an option or right to purchase capital stock, to an automobile manufacturer not affiliated with MBUSA, representing upon issuance more than 30% of the
outstanding capital stock of ATX on a fully diluted basis, then ATX shall deliver written notice of such event (“Change of Control Notice”), and MBUSA shall have the right to terminate this Agreement without liability upon thirty (30) days
prior written notice. If MBUSA fails to deliver to ATX its notice to terminate within sixty (60) days after receipt of the Change of Control Notice, then MBUSA shall be deemed to have waived its right to terminate this Agreement by reason of a
change of control involving the automobile manufacturer that is the subject of the Change of Control Notice. 
  
 D. Rights of the Parties in the Event of Non-Renewal Beyond Term of Agreement and/or Termination for Non-Performance. 
  
 (1) Each party shall return to the other all documents, materials, reports
or other information, or copies thereof, and any confidential information which were received from the other party for use in the course of this Agreement. 
  

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 (2) Each party shall cease to use any of the other’s marketing materials, trademarks, trade names or
logos. 
  
 (3) ATX shall assume payment responsibilities for the
800 numbers referred to in Section 1 of this Agreement. 
  
 (4)
For a period of one (1) year after termination or non-renewal, ATX will retain exclusive rights to market and provide the Services to each Tele Aid device equipped vehicle which is retailed during the one (1) year prior to termination or
non-renewal, unless such termination is a result of the reasons described in Sections 8.B. and 8.C. above. 
  
 9. INDEMNIFICATION. 
  
 A.
ATX Indemnification. ATX will indemnify, defend and hold MBUSA and any of its affiliated companies and the officers, directors, agents, employees and assigns of each, harmless from and against any and all actions, claims, demands, losses,
liabilities, costs and expenses, including attorneys’ fees, to the extent arising from the acts or omissions of ATX in performing its obligations hereunder, including but not limited to, any action, claim, demand, loss or liability based upon,
arising out of, or in any manner resulting from (i) ATX’s failure to answer calls or dispatch necessary assistance pursuant to this Agreement or other mistakes made in answering Customer calls or effectuating Customer requests provided,
however, that nothing contained herein shall be deemed to waive, alter or amend the disclaimers and limits of liability set forth in the retail agreement with customers so far as they affect the relationship between ATX and customer, (ii) any
allegation that any marketing materials, Customer statements or other similar documents created by ATX for the program contain any false or misleading statements, or (iii) any violation of law by ATX in connection with efforts to collect any fees
charged to Customers, or (iv) any claims for infringement of any United States Patents, trade secrets, copyrights or other lawful proprietary rights of a third party based upon the Services. 
  
 B. MBUSA Indemnification. MBUSA will indemnify, defend and hold ATX
and any of its affiliated companies and the officers, directors, agents, employees and assigns of each, harmless from and against any and all actions, claims, demands, losses, liabilities, costs and expenses, including attorneys’ fees, to the
extent arising from the acts or omissions of MBUSA in performing its obligations hereunder including, but not limited to, any action, claim, demand, loss or liability based upon, arising out of or in any manner resulting from, (i) an allegation of a
design or manufacturing defect in any Mercedes-Benz Vehicle for which Services are provided or the equipment required for the Services which were originally installed in the Vehicle by its manufacturer or MBUSA; or (ii) any allegation that any
marketing materials, Customer statements or other similar documents created by MBUSA for the programs contain any false or misleading statements, (iii) any claims for infringement of any United States Patents, trade secrets, copyrights or other
lawful proprietary rights of a third party based upon the Tele Aid equipment in the vehicles or MBUSA’s marketing literature with respect to Tele Aid. 
  

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 10. INSURANCE. ATX agrees to provide and maintain during the term of this Agreement and any extensions thereof,
insurance coverage with commercially acceptable companies rated no less than an A- by A.M. Best as follows: 
  
 A. Comprehensive General Liability Insurance covering bodily injury, property damage, personal and advertising injury, independent contractors and
contractual liability, host liquor liability, products and completed operations liability for $2,000,000 each occurrence. 
  
 B. Workers’ Compensation Insurance according to statutory limits, including Employers’ Liability Insurance for $1,000,000 each accident, each
disease, each employee. 
  
 C. Professional Liability (Errors and
Omissions, Multimedia Liability including Intellectual Property) Insurance on claims made or occurrence basis covering all services provided to MBUSA hereunder for $5,000,000 each occurrence. 
  
 ATX will add MBUSA as additional insured on the Comprehensive General
Liability policy stated herein with respect to the Services provided to MBUSA hereunder. Subject to the contractual indemnities and limitations of liability of this Agreement, ATX agrees and understands that this insurance will be primary over any
other insurance MBUSA maintains as respects this Agreement. 
  
 ATX will cause its insurance broker to furnish MBUSA certificates of insurance, within 30 days of execution of this Agreement, evidencing the required coverage stated herein. Such certificates of insurance will provide for thirty (30)
day’s advance written notice of cancellation, material change in coverage, or non-renewal of coverage. 
  
 Should ATX elect to self-insure, the self-insurance program will respond as if ISO (Insurance Services Office) policy forms were in place as follows:

  

	 	•	Commercial General Liability Coverage Form CG 00 01. 

  
 ATX agrees to bear the full risk of loss, including but not limited to damage, destruction, and/or disappearance, to all property furnished to ATX by
MBUSA while such property is in ATX care, custody, and control. 
  
 ATX must report any loss to MBUSA vehicles to the MBUSA Risk Management Department at (201) 573-2572 within twenty-four (24) hours of management of ATX learning of the loss. ATX must complete and forward to MBUSA Risk Management the
Mercedes-Benz Automobile Accident/Loss Report (MBNA Form 297) within forty-eight (48) hours of the incident. It is further understood that ATX will cooperate and provide all information (written and/or oral) to MBUSA and MBUSA’s insurance
companies that is necessary as it relates to the loss of the vehicles. 
  

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 11. RIGHT TO AUDIT. ATX will maintain accurate and complete records of all Services performed pursuant to this
Agreement, all Customer calls received, billing records and all expenses incurred under the terms of this Agreement in such a manner that they may be readily inspected. MBUSA or its designated representatives shall have the right, at MBUSA’s
expense, from time to time, but no more frequently than twice annually upon reasonable notice and during regular business hours, to inspect and audit those books and records of ATX which relate directly to this Agreement and the Services performed
hereunder. ATX shall cooperate with MBUSA in the conduct of any such inspection and audit. In addition, ATX shall at MBUSA’s request and expense provide MBUSA with copies of any records relating to Customer service calls, billing records or the
Services performed by ATX hereunder. ATX shall maintain at ATX’ expense such records for the periods outlined in the Record Retention Policy in Exhibit F. All such records shall be available for inspection by MBUSA at ATX’s
principal place of business during the Term of this Agreement and for one (1) year after its termination or expiration. ATX agrees to maintain the confidentiality of all such records until they are either destroyed or turned over to MBUSA. ATX’
obligation to maintain records, permit audit, remit sums collected for cellular services shall survive the termination or expiration of this Agreement to the extent that ATX continues to provide Basic Package Services to Customers who purchased
Vehicles sold as equipped with Tele Aid during the Term of this Agreement. 
  
 In
addition, ATX shall have the right, at ATX’s expense, from time to time, but no more frequently than twice annually upon reasonable notice and during regular business hours, to inspect and audit those books and records of MBUSA which relate
directly to MBUSA’s obligations under this Agreement, including the obligations imposed upon MBUSA to ensure certain practices of its dealers hereunder. 
  
 12. HANDLING OF CAC CALLS. ATX will handle certain overflow calls on behalf of MBUSA Customer Assistance Center (“CAC”) at the rates and on the terms
indicated on Exhibit K, attached hereto. 
  
 13. GENERAL.

  
 A. No Partnership. The parties are independent
contractors. Nothing in this Agreement shall be construed to make the parties hereto partners, joint venturers, representatives or agents of each other, nor shall either party so hold itself out. All employees, agents, contractors and any other
persons employed by or retained by ATX or MBUSA in the performance of their obligations hereunder shall be solely those of the hiring party. No representation or act of either party or its employees, agents or contractors will be binding upon the
other. 
  
 B. Notices. In the event of the serving of any
notice, service shall be made personally or by Federal Express or other nationally recognized overnight courier, or registered or certified mail, return receipt requested, postage prepaid. Facsimile transmissions may be used as a method of notice,
but only in addition to one of the other methods and never as the sole method of notice. Notice shall be effective only upon receipt by the party being served with the notice. Notices shall be addressed to the parties as follows: 
  

 13 of 15 
 CONFIDENTIAL TREATMENT 

			
	 If to MBUSA:
	  	 Mercedes-Benz USA, LLC

	 	  	 One Mercedes Drive

	 	  	 Montvale, NJ 07645

	 	  	 Fax: 201-573-4391

	 	  	 Attention: Roger Caramanoff

		
	 Copies to:
	  	 General Counsel, at fax # 201-573-2595, at same address

		
	 If to ATX:
	  	 ATX North America

	 	  	 8550 Freeport Parkway

	 	  	 Irving, TX 75063

	 	  	 Fax: 972-753-6275

	 	  	 Attention: Steven Millstein, President

		
	 Copy to:
	  	 General Counsel, at same address

  
 Each party is
responsible for informing the other of any changes in its address by sending proper notice. 
  
 C. Governing Law/Venue. Any action to enforce the terms of this Agreement shall be brought in a court of competent jurisdiction and proper venue in the United States and the law that shall apply shall be that
U.S. State law deemed applicable by the court before which the matter is brought. 
  
 D. Entire Agreement/Amendment. This Agreement, together with its attached exhibits constitutes the entire agreement between the parties with respect to the subject matter hereof, and supersedes any and all
prior expressions, whether written or oral. Each party acknowledges that it is not entering into this Agreement on the basis of any representations which are not expressly stated herein. No amendments, alterations or modifications of this Agreement
may be made unless in writing signed by both parties. 
  
 E.
Severability. If any of the provisions of this Agreement are held by a court of competent jurisdiction to be unenforceable or invalid, then such provisions will be ineffective to the extent of the court’s ruling. All remaining portions
of the Agreement shall remain in full force and effect. 
  
 F.
Assignment. Neither party may assign this Agreement or delegate its duties hereunder without prior written consent of the other party except that either party may assign this Agreement to any entity controlling, controlled by or under’
common control with such assigning party. The provisions hereof will be binding upon and inure to the benefit of the parties, their successors and permitted assigns. 
  
 G. Paragraph Headings and Interpretation. The paragraph headings contained herein are for reference only and will not
be considered substantive parts of this Agreement. The use of the singular or plural shall include the other form. Similarly, when applicable, a reference to one gender shall include the other. 
  

 CONFIDENTIAL TREATMENT 
  
 14 of 15 

 H. No Waiver. Upon a party’s breach or default hereunder, the other party’s failure,
whether single or repeated, to exercise a right hereunder shall not be deemed to be a waiver of that right as to any future breach or default. 
  
 I. Survival. Any terms of the Agreement which by their nature extend beyond its termination, remain in effect until fulfilled and apply to
respective successors and assignees. 
  
 IN WITNESS WHEREOF,
the parties hereto have signed this Agreement as of the date first indicated above. 
  

									
	ATX TECHNOLOGIES, INC.	 	 	 	MERCEDES-BENZ USA, LLC.
					
	By:	 	 	 	 	 	By:	 	 
	 	 	
	 	 	 	 	 	

	 Name:
	 	 	 	 	 	 Name:
	 	 
	 	 	
	 	 	 	 	 	

	 Title:
	 	 	 	 	 	 Title:
	 	 
	 	 	
	 	 	 	 	 	

  

 15 of 15 
 CONFIDENTIAL TREATMENT 

 Exhibit A: Service Package Descriptions 
  
 BASIC PACKAGE 
  
 Features: 
  

	 	•	Automatic Collision Notification 

  

	 	•	Emergency Assistance 

  

	 	•	Direct connection to the CAC for Roadside Assistance calls 

  

	 	•	Direct connection to the CAC for Information calls 

  

	 	•	Remote Door Unlock 

  

	 	•	Stolen Vehicle Tracking 

  

	 	•	Concierge Service* 

  

	 	•	Basic Remote Diagnostics 

  

	 	•	Anti-Theft Alarm Notification 

  

	*	To cover certain costs to deliver concierge services, MBUSA shall pay to ATX a fee of *** per quarter, payable within 30 days of receipt of invoice from ATX. ATX will use
commercially reasonable efforts to obtain 2%, 10, net 30 terms with all third party vendors providing services on behalf of MBUSA and ATX in support of Tele Aid services. 

  
 Consumer Price and Fee Arrangement: 
  
 Tele Aid shall be provided as standard equipment to the S Class, E Class, M Class, SL Class, SLK Class, CL Class, CLK Class, SLR Class and
Maybach. The following fees will be remitted to ATX and the consumer amounts will be charged and pre-paid on credit card or automated bank draft, according to the applicable billing option for Tele Aid Services on Vehicles where Tele Aid is standard
equipment or on Vehicles where Tele Aid is an option as listed in Exhibit D. 
  
 ***Confidential material redacted and filed separately with the Commission 
  

 A-1 
 CONFIDENTIAL TREATMENT 

	 	•	For new vehicle subscriptions after effective date shown below (or such later date as ATX and MBUSA mutually agree): 

  

	 	•	The fee schedule below reflects a reduction in the original fee to ATX (as of 08/31/2001) of *** beginning as of 09/01/2004 and of *** beginning as of 09/01/2005.

  

	 	•	Should Tele Aid be made standard on all model lines listed in this Exhibit A and Exhibit D the below fees will be changed to reflect a further reduction in the
original fee to ATX (as of 08/31/2001) of *** beginning as of 09/01/2004 and of *** beginning as of 09/01/2005. Should such pricing become effective, the parties will create a new Exhibit A reflecting such pricing which will replace this
Exhibit A without the need for further amendment of this Agreement. 

  

											
	 Payment Method

	  	Price to
Subscriber

	 	 	 Fee to ATX
 As of 08/31/2001

	 	As of
09/01/2004

	 	As of
09/01/2005

	 Annual billing option
	  	$	240.00	**	 	***	 	***	 	***
	 Year 2 prepaid
	  	$	230.00	 	 	***	 	***	 	***
	 Years 2 and 3 prepaid
	  	$	435.00	 	 	***	 	***	 	***
	 Years 2, 3 and 4 prepaid
	  	$	635.00	 	 	***	 	***	 	***
	 Years 2, 3, 4 and 5 prepaid
	  	$	820.00	 	 	***	 	***	 	***
	 Years 2, 3, 4, 5 and 6 prepaid
	  	$	995.00	 	 	***	 	***	 	***
	 39 Month prepaid
	  	$	490.00	 	 	***	 	***	 	***

  

 ***Confidential material redacted and filed separately with the Commission

  

 A-2 
 CONFIDENTIAL TREATMENT 

	 	•	For Maybach vehicle subscriptions after August 31, 2001 (or such later date as ATX and MBUSA mutually agree): 

  

								
	 Payment Method

	  	Price to
Subscriber

	  	Fee to ATX

	 	Fee to MBUSA

	 4 year pre-paid
	  	$	1,260.00	  	***	 	***

  
 Should MBUSA decide to offer Maybach
Services for terms less than four years, the parties will amend this Exhibit A to reflect agreed upon pricing for such terms. 
  

	 	•	For pre-owned vehicle subscriptions after August 31, 2001 (or such later date as ATX and MBUSA mutually agree): 

  

											
	 Payment Method

	  	Price to
Subscriber

	 	 	 Fee to ATX
 As of 08/31/2001

	 	As of
09/01/2004

	 	As of
09/01/2005

	 Annual billing option
	  	$	240.00	**	 	***	 	***	 	***
	 Years 1, 2 prepaid
	  	$	465.00	 	 	***	 	***	 	***
	 Years 1, 2, 3 prepaid
	  	$	670.00	 	 	***	 	***	 	***
	 Years 1, 2, 3, 4 prepaid
	  	$	855.00	 	 	***	 	***	 	***
	 Years 1, 2, 3, 4,5 prepaid
	  	$	1005.00	 	 	***	 	***	 	***
	 Years 1, 2, 3, 4, 5, 6 prepaid
	  	$	1170.00	 	 	***	 	***	 	***

  

	 	•	Effective September 2003 for all vehicles using TeleDiagnostics Viewer (TDV) capability an annual fee of *** per vehicle with TDV active will be charged to MBUSA on activation of
the TDV system and on each subsequent anniversary date thereof, which shall be shown as an adjustment to the following quarterly settlement statement. This fee covers, in addition to infrastructure expense, decoding, extraction and transmission
expense incurred by ATX in supporting this pass through technology. 

  

 ***Confidential material redacted and filed separately with the Commission

  

 A-3 
 CONFIDENTIAL TREATMENT 

 OPTIONAL PACKAGES 
  
 Features: 
  

	 	•	Route Assistance 

  
 Consumer Price and Fee Arrangement: 
  
 The following amounts will be charged on credit card or automated bank draft, according to the applicable billing option. 
  
 $2.95 per use (***% to ATX) for Route Assistance 

 
 Additional Features: 
  

	 	•	Info Services (Text Based) – offered on a renewal basis to legacy Info Services customers. 

  

	 	•	Tele Trek (Voice Traffic and Route Assistance) 

  
 Consumer Price and Fee Arrangement: 
  
 The following amounts will be charged and pre-paid on credit card or automated bank draft, according to the applicable billing option. 
  

	 	•	Info Services Pricing for renewing existing vehicle subscriptions: 

  

						
	 Payment Method

	  	Price to
Subscriber

	  	Fee to ATX

	 Annual billing option
	  	$	125.00	  	***
	 Years 1 and 2 prepaid
	  	$	240.00	  	***
	 Years 1, 2 and 3 prepaid
	  	$	345.00	  	***
	 Years 1, 2, 3 and 4 prepaid
	  	$	425.00	  	***
	 Years 1,2,3,4 and 5 prepaid
	  	$	530.00	  	***
	 Years 1,2,3,4,5 and 6 prepaid
	  	$	610.00	  	***

  

	 	•	Tele Trek Pricing for new and pre-owned vehicle subscriptions: 

  

						
	 Payment Method

	  	Price to
Subscriber

	  	Fee to ATX

	 Annual billing option
	  	$	75.00	  	***
	 Years 1 and 2 prepaid
	  	$	145.00	  	***
	 Years 1, 2 and 3 prepaid
	  	$	205.00	  	***
	 Years 1, 2, 3 and 4 prepaid
	  	$	265.00	  	***
	 Years 1, 2, 3, 4 and 5 prepaid
	  	$	315.00	  	***
	 Years 1, 2, 3, 4, 5 and 6 prepaid
	  	$	360.00	  	***
	 39 month prepaid
	  	$	225.00	  	***

  

 ***Confidential material redacted and filed separately with the Commission

  

 A-4 
 CONFIDENTIAL TREATMENT 

 Exhibit D: Optional, Non-Standard Tele Aid Program 
  
 Pricing and Payment 
  
 Pricing for all models of Vehicles for which Tele Aid is an option rather than a standard
feature shall be: 
  

					
	For those Vehicle owners/lessees who
select Tele Aid as an option and subscribe
to Tele Aid Services.	 	This fee is per vehicle for the first year of
Basic Services, in addition to the fees
indicated in Exhibit A to this Agreement,
for all other Services.	 	Number of vehicles built with Tele Aid on
model lines where Tele Aid is Optional
shown as a percentage of total cars built of
the optional model line.
			
	 	 	 Fee to ATX
 ***
	 	 % Penetration
 ***

			
	 	 	***	 	***
			
	 	 	***	 	***
			
	 	 	***	 	***
			
	 	 	***	 	***

  
 All fees shall be deducted from
amounts collected from Customers as indicated in Section 4.F. of this Agreement. 
  
 Should MBUSA desire to designate any model or class as standard rather than optional, fees shall be modified as of the date such model class is no longer optional to be as indicated in Exhibit A to this Agreement and shall be
deducted from amounts collected from Customers as indicated in Section 4.F. of this Agreement. 
  
 Applicable Vehicles/Notice Required 
  
 Tele Aid shall be provided as optional equipment to the C Class 
  
 Should MBUSA desire to expand the optional program to any additional model or class, it shall provide ATX with advanced written notice, at least six (6) months prior to the model year retail release, of its intent to do so and optional
pricing as indicated will apply to all such vehicles and the parties will in good faith renegotiate pricing for the Services.  
  
 ***Confidential material redacted and filed separately with the Commission 
  

 D-1 
 CONFIDENTIAL TREATMENT 

 Exhibit G: Cellular Pricing, Procedure and Reporting 
  
 Cellular prices to Tele Aid customers (adjusted to include applicable credit card and
automated bank draft fees as well as ATX fees to administer the billing, remittance, collections, and customer service functions for the Tele Aid cellular service): 
  
 Fees to ATX for Cellular Services* 
  
 *** per month service fee (This fee is part of the “Fee to ATX” noted on Exhibit A.) 
  
 *** a minute 
  
 Billing Procedures: 
  

	 	•	Upon the expiration of the first year of Basic Services, the customer will be billed $4.50 each month for the cellular service fee. 

  

	 	•	Upon expiration of 30 free minutes of airtime, the customer will be billed the appropriate per minute amount ($.40 or $.75) for all actual airtime used each month. The 30 minutes of
free airtime expire 365 days from initial Services activation date for each customer. 

  

	*	Prices are subject to change upon selection of different cellular carrier or cellular carrier price change. 

  
 Billing Options: 
  

	 	•	Credit Card 

  

	 	•	Automated Bank Draft 

  
 Reporting: 
  

	 	•	ATX has the obligation to calculate, collect, and remit sales, telecommunications and other like taxes to MBUSA on cellular charges pursuant to Section 4.B. of this
Agreement. ATX shall utilize the Vertex Telecommunications Taxing Module for the calculation of applicable telecommunications taxes. Notwithstanding the foregoing, MBUSA acknowledges that the Vertex Telecommunications Taxing Module is not
implemented as of the Effective Date of this Agreement and that ATX’s ability to calculate telecommunications taxes using Vertex cannot occur until it is implemented. Accordingly, the parties agree to negotiate a mutually satisfactory
resolution of the financial responsibility for telecommunications taxes incurred by MBUSA but not invoiced to customers during the time period between the Effective Date and the implementation of Vertex. ATX shall calculate taxes on cellular charges
based upon studies performed and communicated by MBUSA’s tax department. 

  

	 	•	Notwithstanding anything to the contrary contained in this Agreement, neither of the parties has waived any of its rights, obligations or claims regarding the tax obligations of the
parties that arose prior to the Term of this Agreement. 

  

	 	•	ATX will provide to MBUSA each month, two exception reports for the carrier. These reports will detail all calls under 1 minute that were not billed and all calls where the MIN does
not match our files and thus could not be billed. 

  

 ***Confidential material redacted and filed separately with the Commission

  

 CONFIDENTIAL TREATMENT 

	 	•	ATX will provide to MBUSA a monthly report detailing cellular charges billed and collected by ATX, sorted by MIN and VIN, and sorted by MBUSA and MB Canada subscribers.

  
 Process Flow: 
  
 [GRAPHIC] 
  

 CONFIDENTIAL TREATMENT 

 Exhibit I: Retention Bonus 
  

			
	 Retention

	  	 Amount Due

		
	 ***
	  	MBUSA pays ATX $50 for each Vehicle by which Retention Rate is less than ***
		
	 ***
	  	No payment due
		
	 ***
	  	ATX pays MBUSA $50 for each Vehicle by which Retention Rate is greater than ***
		
	 ***
	  	ATX pays MBUSA $50 for each Vehicle by which Retention Rate is greater than ***, but less than or equal to ***; and ATX pays MBUSA $100 for each Vehicle by which Retention Rate is greater
than ***

  
 Example One 
  
 Assumptions: (a) MBUSA sells and leases 10,000 Mercedes-Benz Vehicles on a retail basis in
the United States during October 2002 and (b) by October 31, 2003, Customers pay for second year of service for ***. of the 10,000 vehicles sold and leased in October 2002. Based on the above assumptions, the Retention Rate for October 2003 is ***.
Accordingly, ATX pays MBUSA $50 for each vehicle that is greater than ***, up to *** ($50 X ***), and ATX pays $100 for each vehicle that is greater than *** ($100 X ***). In total, ATX pays MBUSA a retention bonus of ***, shown as an adjustment to
the following quarterly settlement statement. 
  
 Example Two 

 
 Assumptions: (a) MBUSA sells and leases 10,000 Mercedes-Benz Vehicles on a retail basis
in the United States during October 2002 and (b) by October 31, 2003, Customers pay for second year of service for *** of the 10,000 vehicles sold and leased in October 2002. Based on the above assumptions, the Retention Rate for October 2003 is
***. Accordingly, MBUSA pays ATX $50 for each vehicle that is less than *** ($50 X ***). In total, MBUSA pays ATX the amount of ***, shown as an adjustment to the following quarterly settlement statement. 
  

 ***Confidential material redacted and filed separately with the Commission

  

 CONFIDENTIAL TREATMENT 

 Exhibit K: Customer Assistance Center “CAC” Overflow Call Handling 
  
 ATX will handle certain overflow calls on behalf of the MBUSA Customer
Assistance Center (“CAC”). ATX will use commercially reasonable efforts to answer in no less than 120 seconds. If MBUSA should desire ATX to take a larger portion of calls or to have calls answered in less than 120 seconds, ATX and MBUSA
will re-negotiate this Exhibit to include the newly established answer times and fee per minute. The parties hereby agree that as of the effective date of this Agreement, ATX will handle CAC call minutes on behalf of MBUSA *** for the first 200 call
minutes. ATX will handle CAC call minutes on behalf of MBUSA on a fee per minute basis for every call minute beyond the *** threshold. This fee schedule is noted below: 
  
 *** per call minute 
  

 ***Confidential material redacted and filed separately with the Commission

  

 CONFIDENTIAL TREATMENTExecutive Employment Agreement

  
 EXHIBIT 10.4

  
 EXECUTIVE EMPLOYMENT AGREEMENT 
  
 This Executive Employment Agreement (“Agreement”) is entered into
as of January 15, 2004, between ATX TECHNOLOGIES, INC., a Texas corporation (the “Company”), and Steven A. Millstein (“Executive”). 
  
 RECITALS 
  
 WHEREAS, Executive and the Company desire to enter into this Agreement setting forth the terms of Executive’s employment with the Company;

  
 NOW, THEREFORE, in consideration of the mutual promises of the
parties and for other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties agree as follows: 
  
 1. Employment. Subject to the conditions of this Agreement, the Company agrees to employ Executive and Executive accepts such employment, on the
terms described herein, for the period beginning on January 15, 2004 (the “Start Date”) and ending on January 14, 2007 (the “Term”). During the Term, Executive shall be employed as the Chief Executive Officer and President, at
the Company’s Irving, Texas headquarters location. Executive shall devote his best efforts and substantially all of his business time and attention (except as otherwise specifically permitted herein and except for vacation periods and
reasonable periods of illness or other incapacity) to the business of the Company and its Affiliates and shall faithfully and diligently carry out such duties and have such responsibilities as are customary among persons employed in substantially
similar capacities for similar companies. Executive shall report to the Board of Directors (“Board”) of the Company and Executive shall faithfully and diligently comply with all of the Board’s reasonable and lawful directives. For
purposes of this Agreement, the term “Affiliate” means any corporation, limited partnership, limited liability company or other entity which is controlled by or under common control with the Company. 
  
 2. Compensation. 
  
 (a) Base Salary. During the Term, the Company will
pay Executive a base salary at the rate of $325,000.00 per year, or such higher amount as the Board of Directors) may in its sole discretion establish from time to time (“Base Salary”). The Base Salary will be payable in accordance with
the Company’s regular payroll practices. 
  
 (b) Bonus Programs. During the Term, Executive shall be eligible to participate in an annual incentive bonus program, as may be adopted by the Board from time to time and made available to senior executives of the Company. The
performance goals and other terms and conditions of such program shall be determined by the Board in its sole discretion, provided that at all times during the Term the program shall provide a reasonable opportunity for the Executive to earn up to
100 percent of Base Salary as an incentive bonus. 
  
 (c) Stock Options. Executive shall be entitled to participate in any Company stock plans on terms and conditions determined by the Board of Directors from time to time. The terms and conditions of the Stock Options and any subsequent
option grants 

  

 
that may be awarded to Executive shall be set forth in the Company’s customary form of stock option agreement and shall be subject to the terms and
conditions of the stock option plan pursuant to which the Stock Options are granted. The Executive agrees that the investigation of the tax consequences of such a grant of stock or options and the implementation of a plan to provide for such
consequences are solely the responsibility of the Executive. The Company shall have no responsibility, legal, financial or otherwise, with regards to any tax consequences of any stock options granted by the Company to the Executive. 
  
 3. Benefits. In addition to the compensation described in Section 2
above, Executive will be entitled during the Term to the following benefits: 
  
 (a) opportunity to participate in all Executive health and welfare benefit programs as may be from time to time in effect for executives or salaried employees of the Company generally (subject to any contribution
therefor generally required by such executives and except to the extent such programs are in a category of benefit otherwise provided to the Executive). The current list of executive health and welfare benefit programs is as follows: medical and
dental health care plans available to all executive level employees, including ExecUCare supplemental insurance; 401(k) plan, subject to limitations imposed on highly compensated employees pursuant to the Internal Revenue Code and other applicable
laws; 160 hours vacation time, annually, as accrued (carryover of unused balance at a rate of 150% (240 hours) of annual balance allowed, with suspended accrual until balance drops below maximum annual accrual level); 80 hours sick time annually, as
accrued (no carryover of unused balance allowed). Nothing in this Section 3(a) or elsewhere in this Agreement shall be construed to require the Company to establish any such benefits and/or benefit plans or to prevent the Company from modifying or
terminating any benefits and/or benefit plans as they apply to executives or salaried employees generally. 
  
 (b) an annual financial planning reimbursement amount of up to $2,500.00 per calendar year, which sum shall be reimbursed to executive
upon submission of properly completed expense reports with receipts attached. 
  
 (c) a Company provided cellular telephone, subject to the Company’s policies regarding cellular telephones. 
  
 (d) reimbursement of business expenses incurred in accordance with standard Company policy. 
  
 4. Termination. Executive’s employment with the Company will
continue under this Agreement until the expiration of the Term, unless earlier terminated as provided below. 
  
 (a) Death. In the event of Executive’s death during the Term, the Executive’s employment hereunder shall immediately and
automatically terminate. Except as expressly provided herein, or in any applicable stock option plan or agreement, all obligations of the Company under this Agreement shall terminate as of the date of death, 

  

 -2- 

 
except that salary and benefits accrued through the date of death shall be paid to Executive’s estate. 
  
 (b) Disability. The Company may terminate
Executive’s employment hereunder, immediately upon notice to Executive, in the event that Executive becomes disabled during the Term through any illness, injury, accident or condition of either a physical or psychological nature and, as a
result, is unable to perform substantially all of Executive’s duties hereunder for 180 days during any consecutive 365 days under the Term. Except as expressly provided herein or in any applicable stock option plan or agreement, in the event of
such termination, all obligations of the Company under this Agreement will terminate as of the date of such termination, except that Executive shall be entitled to receive salary and benefits accrued through the date of termination and to receive
such other compensation as may be payable under applicable disability insurance (if any) provided by the Company to Executive. 
  
 (c) Termination by the Company without Cause. The Company may at any time terminate Executive’s employment without Cause (as
defined below) by giving Executive notice on or before the effective date of termination. In the event of such termination during the Term, the Company shall have the continuing obligation to make payments of Base Salary in accordance with
Section 2(a) at the rate in effect on the effective date of such termination for a period of twenty-four (24) months following the date of such termination; provided, however, that in the event that Executive breaches any of the
representations, warranties and covenants set forth in Section 6 or 7 of this Agreement, the Company shall have no further obligation to make payments of the Base Salary and may pursue all other available remedies. Such payments shall
be conditional upon Executive executing a mutually acceptable release of any and all claims against the Company. Except as expressly provided herein or in any applicable stock option plan or agreement, in the event of such termination by the Company
without Cause, all obligations of the Company under this Agreement will terminate as of the date of such termination. 
  
 Failure of the Company to offer Executive continued employment after the expiration of the Term, with duties, compensation and benefits no
less favorable to Executive than those set forth herein shall constitute Termination Without Cause for purposes of this Section 4(c), entitling Executive to the payments and other rights and obligations referenced herein. 
  
 (d) Termination by Executive for Good Reason.
Executive shall have the right to terminate Executive’s employment at any time during the Term for any of the following events (each of which is referred to herein as “Good Reason”) by giving the Company thirty (30) days advanced
written notice of an event constituting Good Reason: 
  
 (i) a change in the duties or responsibilities (including reporting responsibilities) of Executive that is inconsistent in any material and adverse respect with Executive’s position(s), duties, responsibilities or status with the
Company (including any adverse diminution of such duties or responsibilities), provided however that re-organization of the Company which results in a 

  

 -3- 

 
reduction in the number of employees for which Executive is responsible, shall not by itself, constitute Good Reason; 
  
 (ii) the failure during the Term to reappoint or re-elect
Executive to any position held by Executive without Executive’s consent; 
  
 (iii) a material breach of Company’s obligations under this Agreement; or 
  
 (iv) any requirement of the Company that Executive be required to relocate more than fifty (50) miles from Executive’s permanent
place of employment referenced in Section 1 above, provided however that temporary assignments to another location shall not be deemed a relocation; 
  
 For purposes of this Agreement, any good faith determination of Good Reason by Executive shall be conclusive, provided however, that an
isolated, insubstantial and largely inadvertent action taken in good faith and which is remedied by the Company within ten (10) days after receipt of written notice thereof given by Executive shall not constitute Good Reason. Executive’s right
to terminate employment for Good Reason shall not be affected by Executive’s incapacities due to mental or physical illness and Executive’s continued employment shall not constitute consent to, or a waiver of rights with respect to, any
event or condition constituting Good Reason; provided, however, that Executive must provide notice of termination of employment within one hundred and eighty (180) days following Executive’s knowledge of an event constituting Good Reason or
such event shall not constitute Good Reason under this Agreement. 
  
 In the event of such termination during the Term, the Company shall have the continuing obligation to: (A) make payments of Base Salary in accordance with Section 2(a) at the rate in effect on the effective
date of such termination for a period of twenty-four (24) months following the date of such termination, and (B) make payment to Executive on the same date payment is made to other executives, of the pro-rated portion of any bonus amount pursuant to
Section 2(b) that Executive would have earned up through the date of termination; provided, however, that in the event that Executive breaches any of the representations, warranties and covenants set forth in Section 6 or 7, the
Company shall have no further obligation to make payments of the Base Salary or bonus and may pursue all other available remedies. Such payments shall be conditional upon Executive executing a mutually acceptable release of any and all claims
against the Company. Except as expressly provided herein or in any applicable stock option plan or agreement, in the event of such termination by the Executive for Good Reason, all obligations of the Company under this Agreement will terminate as of
the date of such termination. 
  
 (e)
Termination by the Company for Cause. The Company shall have the right to terminate Executive’s employment at any time for any of the following reasons (each of which is referred to herein as “Cause”) by giving Executive
written notice on or before the effective date of termination: 
  
 (i) the material breach by Executive of any representation, warranty or covenant of Executive set forth in Section 6 or 7 of this Agreement; 
  

 -4- 

 (ii) repeated failure of Executive to satisfy reasonable written performance objectives
or to follow reasonable and lawful directives of the Board, which in each case are consistent with the Executive’s position with the Company; provided that any such failure is reasonably determined by the Board to be materially injurious to the
business or interests of the Company and provided that the Company has given Executive written notice of such failure which sets forth a reasonable cure period; 
  
 (iii) willful misconduct by Executive that causes, or Executive knowingly fails to take reasonable and
appropriate action to prevent, any material injury to the financial condition or business reputation of the Company or any Affiliate; 
  
 (iv) any act of fraud, theft, misappropriation or embezzlement or other similar conduct with respect to any aspect of the business or
assets of the Company or any Affiliate; 
  
 (v)
drug use or alcohol use that materially interferes with the performance by Executive of his duties hereunder, provided that Executive has been given 30 days’ prior written notice by the Company of its intention to terminate Executive because of
such abuse and Executive has not demonstrated cessation of such abuse; or 
  
 (vi) conviction of a felony, crime involving fraud or misrepresentation, or conviction of any other crime the effect of which is likely to have a material adverse effect on the business or reputation of the Company.

  
 If the Company terminates Executive’s
employment for Cause, the Company shall have no further obligations hereunder from and after the date of such termination and the Company shall have all other rights and remedies available under this or any other agreement and at law or in equity.
The Company may terminate Executive’s employment hereunder for Cause at any time within 180 days after the Board of Directors has become aware of the occurrence or continuance of any of the foregoing. 
  
 (f) Voluntary Termination by Executive. In the event
that Executive’s employment with the Company is terminated voluntarily by Executive other than for Good Reason as indicated above, such termination shall be a breach of this Agreement and the Company shall have no further obligations hereunder
from and after the date of such termination. 
  
 5. Inventions
and Patents. All inventions, designs, concepts, innovations or improvements relating to the Company’s business, products, services or method of conducting business (including new contributions, improvements, ideas and discoveries, whether
patentable or not) conceived or made by Executive during his employment with the Company belong and are hereby assigned to the Company, that result from any aid, support or assistance by the 

  

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Company, or that are created during Executive’s work time with the Company (collectively, the “Inventions”). Executive will promptly and fully
disclose such Inventions to the Chief Operating Officer and perform all actions reasonably requested by the Chief Operating Officer or the Board to establish and confirm such ownership (including execution of written assignments). Without limiting
the generality of the foregoing, Executive will promptly execute a specific assignment of any title, shop-right or license to the Company, and if requested to do so, will cooperate fully with the Company to secure a patent, shop-right, or license
therefor in the United States and/or foreign countries. Executive further agrees that any and all work product created or performed by Executive while Executive is working with or on behalf of the Company, is a “work for hire” under the
terms of the United States Copyright Act, and shall be and remain the exclusive property of the Company, as the case may be. Executive hereby assigns any and all rights, title, and ownership interests that Executive may now have or hereafter acquire
in or to such work product to the Company and only to the Company. 
  
 6. Confidentiality. Executive acknowledges that during the course of Executive’s performance of services for the Company, Executive will acquire, and the Company agrees to provide, confidential information pertaining to the
Company and its Affiliates, including investment plans or strategies, trade secrets, customer lists, vendor and customer contracts and the details thereof, pricing policies, operational methodology, marketing and merchandising plans or strategies,
business acquisition plans, personnel acquisition plans, and other information pertaining to the business of the Company or any Affiliate that is not publicly available (collectively, the “Confidential Information”); provided, however,
that the term “Confidential Information” shall not include (a) any information which is or becomes publicly available otherwise than through breach of any agreement of confidentiality with the Company, (b) any information which is or
becomes known or available to Executive on a nonconfidential basis and not in contravention of applicable law from a source which is entitled to disclose such information to Executive or (c) any information, techniques, know-how or strategy which
Executive can reasonably demonstrate was known to Executive prior to his commencing work at the Company. Executive shall not, during his employment with the Company, directly or indirectly disclose to any person, except to the Company or its
officers and agents or as reasonably required in connection with Executive’s duties on behalf of the Company, or use, except on behalf of the Company, any Confidential Information acquired by Executive during the term of Executive’s
employment. Executive shall not, at any time after Executive’s employment with the Company has ended, directly or indirectly disclose to any person any Confidential Information nor use the Confidential Information for any purpose whatsoever.
Upon termination of Executive’s employment with the Company for any reason or at any time during employment upon the Company’s request, Executive shall return to the Company all documents, materials and property (in any media, including
software) that are in Executive’s possession, custody or control. Executive acknowledges that all such documents, materials and property are and shall remain the sole property of the Company. 
  
 7. Nonsolicitation/Noninterference/Noncompetition/Conflicts.

  
 (a) During Executive’s employment with
the Company, Executive shall not directly or indirectly interfere with the relationship between the Company or any Affiliate and any employee of the Company or an Affiliate (except in furtherance of Executive’s duties hereunder). For a period
of two years after termination of Executive’s 

  

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employment with the Company, Executive shall not, on behalf of himself or any other person, directly or indirectly solicit employment from, offer employment
to or employ any person who (i) is then currently an employee of the Company or any Affiliate or (ii) during the then-preceding 180 days terminated his or her employment with the Company or any Affiliate without the Company’s or such
Affiliate’s consent, and Executive shall not otherwise interfere, directly or indirectly, with the relationship between the Company or any Affiliate and any employee. 
  
 (b) During Executive’s employment with the Company, and for a period of two years thereafter, Executive
shall not (except in furtherance of his duties hereunder), directly or indirectly interfere with the relationship between the Company or any Affiliate and any customer, distributor, vendor, supplier, contractor or subcontractor of the Company or any
Affiliate. 
  
 (c) During Executive’s
employment with the Company, and for a period of two years thereafter, Executive shall not (except in furtherance of Executive’s duties hereunder), directly or indirectly own, control, manage, operate, be employed by, participate, invest or
engage in, lend money, property or support to, or otherwise have an interest in, any business or enterprise (regardless of form) which provides Telematics Services (as defined below): (i) to consumers on behalf of automotive manufacturers, (ii)
directly to automotive manufacturers, or (iii) to consumers directly or through a third party in direct or indirect competition with Company or any of its Affiliates in North America or Europe. “Telematics Services” means two-way
communication of voice and data between automobiles or portable devices and a telematics service provider. 
  
 (d) Executive agrees that during his employment with the Company, he will not undertake any outside activity, whether or not competitive
with the business of the Company or its Affiliates that could give rise to a conflict of interest or otherwise interfere with his duties and obligations to the Company or any of its Affiliates. 
  
 (e) The respective periods of time during which Executive is
prohibited from engaging in such business practices pursuant to this Section 7 shall be extended by any length of time during which Executive is in breach of any of such covenants. 
  
 (f) Nothing contained in this Agreement shall be deemed to
prevent or limit the right of Executive to own capital stock or other securities of any corporation or other entity which are publicly owned or regularly traded on any securities exchange or automated quotation system or in the over-the-counter
market; provided, however, such investment does not exceed, directly or indirectly, 2% of the issuer’s outstanding securities of that class. 
  

(g) Prior to accepting employment or an association with any person which is engaged in a business competitive in any respect to the
business conducted by Company or which, because of the nature of Executive’s proposed or potential position with such person, may require Executive to use or disclose Confidential Information, Executive agrees to notify such person in writing
that Executive is bound by the terms of this Agreement. Executive also agrees that the Company may, at any time while any of the 

  

 -7- 

 
nondisclosure or other restrictive covenants contained in this Agreement are in force, provide written notice of the existence of this Agreement to any
person with whom or which Executive proposes to negotiate or is negotiating concerning employment or an association or to accept employment or association, or with whom or which Executive has accepted employment or an association, without any
liability to the Company for any such notice. 
  
 8. General
Provisions. 
  
 (a) Notices. Any
notice provided for in this Agreement must be in writing and must be personally delivered, or sent by certified mail (postage prepaid and return receipt requested) or by reputable overnight courier service. Such notice shall be delivered, in the
case of the Company, to its principal place of business, to the attention of the General Counsel and Secretary, and in the case of Executive, to Executive’s last known address as listed with the Company, or such other address or to the
attention of such other person as the receiving party shall have specified by prior written notice to the sending party. Any notice under this Agreement will be deemed to have been given, in case of personal delivery, when delivered, in the case of
overnight courier service, the next business day, and in the case of certified mail, five days after mailing. 
  
 (b) Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and
valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect
any other provision in such jurisdiction or any other jurisdiction, or the legality or enforceability of such provision in any other jurisdiction, but this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provision had never been contained herein except that any court having jurisdiction shall have the power to reduce the duration, area or scope of such invalid, illegal or unenforceable provision and, in its reduced form, it
shall be enforceable. 
  
 (c) Complete
Agreement. Except as noted in the next sentence, this Agreement embodies the complete agreement and understanding between the parties and supersedes any prior understandings, agreements or representations by or between the parties, written or
oral, which may have related to the subject matter hereof. 
  
 (d) Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of and be enforceable by Executive and the Company, except that Executive may not assign any of his rights or
obligations under this Agreement. In the event of a sale of substantially all of the stock of the Company, or consolidation, merger or other business confirmation of the Company into or with another corporation or entity, or the sale of a
substantial portion of the operating assets of the Company to another corporation, entity or individual, the Company shall assign its rights and obligations under this Agreement to its successor-in-interest, in which event such successor-in-interest
shall be deemed to have acquired all rights and assumed all obligations of the Company hereunder. 
  

 -8- 

 (e) Compliance. Executive agrees to comply at all times with all applicable
federal, state and local laws, rules and ordinances and all rules, policies and guidelines of the Company and its Affiliates. 
  
 (f) Enforcement of Covenants. Executive acknowledges that Executive has carefully read and considered all the terms and conditions
of this Agreement, including the nonsolicitation, interference, noncompetition, conflicts and confidentiality covenants of Executive pursuant to Sections 6 and 7 and has been offered a reasonable opportunity to review the Agreement
with Executive’s advisors. Executive acknowledges that the enforcement by the Company of the covenants contained herein will cause no undue hardship on Executive, that the scope, duration and area of the covenants are appropriate and reasonable
in all respects in light of the nature of the business of the Company and the legitimate need of the Company to protect its customer base and business, and that the covenants are ancillary to otherwise enforceable agreements and are supported by
independent, valuable consideration. Executive understands that, but for the agreement of Executive to comply with such covenants, the Company would not have entered into this Agreement, agreed to provide Confidential Information to Executive or
agreed to the compensation arrangements described in this Agreement. Executive agrees that the covenants contained in Section 6 and/or 7 will be considered as independent of any of the provisions of this Agreement, and the existence of
any claim or cause of action by the Executive against the Company will not constitute a defense to the enforcement by the Company of such covenants. Executive acknowledges that, were Executive to breach any of the covenants contained in Section
6 or 7 hereof, the damage to the Company would be irreparable, which cannot be accurately calculated in monetary damages. Executive therefore agrees that the Company, in addition to any other remedies available to it, shall be entitled to
preliminary and permanent injunctive relief against any breach or threatened breach by the Executive of any of said covenants, without having to post bond. The parties further agree that, in the event that any provision of Section 6 or
7 shall be determined by any court of competent jurisdiction to be unenforceable by reason of its being extended over too great a time, too large a geographic area or too great a range of activities, such provision shall be deemed to be
modified to permit its enforcement to the maximum extent permitted by law. 
  
 (g) Non-Binding Mediation. Except as provided in Section 8(f), the Company and Executive agree that all disputes, controversies or claims that may arise between them, including, without limitation, any
dispute, controversy or claims as to the interpretation or enforcement of any of the provisions of this Agreement, shall first be submitted to non-binding mediation in Dallas, Texas. If complete agreement cannot be reached within 30 days of
submission to mediation, any remaining issues may be determined by a court of competent jurisdiction in Dallas, Texas. 
  
 (h) Amendments and Waivers. Any provision of this Agreement may be amended or waived only with the prior written consent of
Executive and the Chief Executive Officer of the Company. 
  

 -9- 

 (i) Absence of Conflicting Agreements. Executive hereby warrants and covenants
that Executive’s employment by the Company does not result in a breach of the terms, conditions or provisions of any agreement to which Executive is subject. 
  
 (j) Survival. No termination of Executive’s employment by either or both parties shall reduce or
terminate the covenants and agreements herein which are expressly intended to survive termination of employment. 
  
 (k) Interpretation; Use of term “Person”; pronouns. Captions and headings used herein are for convenience only, do not
constitute a part of this Agreement, and shall not be considered in construing this Agreement. Unless the context otherwise requires, all article, section or subsection cross-references are to articles, sections or subsections within this Agreement.
As used herein, the term “person” shall include an individual, corporation, partnership, venture, proprietorship, trust, benefit plan or other entity or enterprise. Use of any masculine pronoun shall also refer to the feminine form of such
pronoun and vice versa. 
  
 (l)
Counterparts. This Agreement may be executed in counterparts, each of which individually shall be deemed an original, but all of which collectively shall constitute the same instrument. 
  
 (m) Choice of Law; Venue. All questions concerning
the construction, validity and interpretation of this Agreement will be governed by the internal law, and not the law of conflicts, of the State of Texas. Venue for all civil actions under this Agreement shall lie solely in Dallas, Texas.

  
 IN WITNESS WHEREOF, the parties have caused this Agreement to
be duly executed and delivered on the day and year first above written. 
  

							
	ATX TECHNOLOGIES, INC.	 	 	 	EXECUTIVE:
				
	By:	 	 	 	 	 	 
	 	 	
	 	 	 	

	 	 	 Jimmy Mansour
 Chairman of the Compensation
 Committee of the Board of Directors
	 	 	 	 Steven A. Millstein

  

 -10-

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