Document:

EX 10.27 VMware Non-Qualified Deferred Compensation Plan

Exhibit 10.27
ADOPTION AGREEMENT

1.01    PREAMBLE 

By the execution of this Adoption Agreement the Plan Sponsor 
hereby [complete (a) or (b)]

		
	(a)
	x    adopts a new plan as of January 1, 2014 [month, day, year]

		
	(b)
	 ̈    amends and restates its existing plan as of                      [month, day, year] which is the Amendment Restatement Date.  Except as otherwise provided in Appendix A, all amounts deferred under the Plan prior to the Amendment Restatement Date shall be governed by the terms of the Plan as in effect on the day before the Amendment Restatement Date. 

Original Effective Date:                      [month, day, year]

Pre-409A Grandfathering:      ̈Yes      ̈No 

		
	1.02
	PLAN

Plan Name: VMware, Inc. Non-Qualified Deferred Compensation Plan 

Plan Year:  Year ending December 31

		
	1.03
	PLAN SPONSOR

	
		
	Name:
	VMware, Inc.

	Mailing Address:
	3401 Hillview Avenue, Palo Alto, CA 94304

	Physical Address:
	900 Arastradero Road, Building C, Palo Alto, CA  94304

	Phone # :
	650-427-4361

	EIN:
	94-3292913

	Fiscal Yr:
	Year ending December 31

Is stock of the Plan Sponsor, any Employer or any Related Employer publicly traded on an established securities market?

	
		
	x Yes
	 ̈ No

- 1 -

		
	1.04
	EMPLOYER

The following entities, in addition to the Plan Sponsor, have been authorized by the Plan Sponsor to participate in and have adopted the Plan (insert “Not Applicable” if none have been authorized):

Entity                        Publicly Traded on Est. Securities Market

	
					
	 
	 
	Yes
	 
	No

	Nicira, Inc. 
	 
	 ̈
	 
	x

	 
	 
	 ̈
	 
	 ̈

	 
	 
	 ̈
	 
	 ̈

	 
	 
	 ̈
	 
	 ̈

	 
	 
	 ̈
	 
	 ̈

	 
	 
	 ̈
	 
	 ̈

		
	1.05
	ADMINISTRATOR

The Plan Sponsor has designated the following party or parties to be responsible for the administration of the Plan:

	
		
	Name:
	Persons delegated authority by the Compensation & Corporate Governance Committee

	Address:
	     

		
	Note:
	The Administrator is the person or persons designated by the Plan Sponsor to be responsible for the administration of the Plan.  Neither Fidelity Employer Services Company nor any other Fidelity affiliate can be the Administrator.

		
	1.06
	KEY EMPLOYEE DETERMINATION DATES

The Employer has designated December 31 as the Identification Date for purposes of determining Key Employees.

In the absence of a designation, the Identification Date is December 31.

The Employer has designated April 1 as the effective date for purposes of applying the six month delay in distributions to Key Employees.

In the absence of a designation, the effective date is the first day of the fourth month following the Identification Date.

- 2 -

		
	2.01
	PARTICIPATION

(a)    x    Employees [complete (i), (ii) or (iii)] 

(i)    x    Eligible Employees are selected by the Employer.

(ii)     ̈    Eligible Employees are those employees of the Employer who satisfy the following criteria:

	
	
	     

	     

	     

	     

	     

(iii)     ̈    Employees are not eligible to participate.

(b)    x    Directors [complete (i), (ii) or (iii)]

(i)     ̈    All Directors are eligible to participate.

(ii)     ̈    Only Directors selected by the Employer are eligible to participate.

(iii)    x    Directors are not eligible to participate.

- 3 -

		
	3.01
	COMPENSATION

For purposes of determining Participant contributions under Article 4 and Employer contributions under Article 5, Compensation shall be defined in the following manner [complete (a) or (b) and select (c) and/or (d), if applicable]:

	
			
	(a)
	x
	Compensation is defined as:

	 
	 
	Base Salary, Semi-Annual Bonus and Commissions

	 
	 
	     

	 
	 
	     

	 
	 
	     

	 
	 
	     

	 
	 
	     

	 
	 
	 

	(b)
	 ̈
	Compensation as defined in       [insert name of qualified plan] without regard to the limitation in Section 401(a)(17) of the Code for such Plan Year.

	 
	 
	 

	(c)
	 ̈
	Director Compensation is defined as:

	 
	 
	     

	 
	 
	     

	 
	 
	     

	 
	 
	 

	(d)
	 ̈
	Compensation shall, for all Plan purposes, be limited to $     .

	 
	 
	 

	(e)
	 ̈
	Not Applicable.

		
	3.02
	BONUSES

Compensation, as defined in Section 3.01 of the Adoption Agreement, includes the following type of bonuses that will be the subject of a separate deferral election:

	
						
	Type
	Will be treated as Performance
Based Compensation

	 
	 

	 
	 
	Yes
	 
	No
	 

	Semi-Annual Bonus
	 
	 ̈
	 
	x
	 

	     
	 
	 ̈
	 
	 ̈
	 

	     
	 
	 ̈
	 
	 ̈
	 

	     
	 
	 ̈
	 
	 ̈
	 

	     
	 
	 ̈
	 
	 ̈
	 

	
		
	 ̈
	Not Applicable.

- 4 -

		
	4.01
	PARTICIPANT CONTRIBUTIONS

If Participant contributions are permitted, complete (a), (b), and (c).  Otherwise 
complete (d).

		
	(a)
	Amount of Deferrals

A Participant may elect within the period specified in Section 4.01(b) of the Adoption Agreement to defer the following amounts of remuneration.  For each type of remuneration listed, complete “dollar amount” and / or “percentage amount”.

		
	(i)
	Compensation Other than Bonuses [do not complete if you complete (iii)]

        
	
						
	Type of Remuneration
	Dollar Amount
	% Amount
	Increment

	Min
	Max
	Min
	Max

	(a)    Base Salary
	 
	 
	5%
	75%
	1%

	(b)    Commissions
	 
	 
	5%
	100%
	1%

	(c)    
	 
	 
	 
	 
	 

Note:  The increment is required to determine the permissible deferral amounts.  For example, a minimum of 0% and maximum of 20% with a 5% increment would allow an individual to defer 0%, 5%, 10%, 15% or 20%.

		
	(ii)
	Bonuses [do not complete if you complete (iii)]

	
						
	Type of Bonus
	Dollar Amount
	% Amount
	Increment

	Min
	Max
	Min
	Max

	(a)   Semi-Annual Bonus
	 
	 
	5%
	100%
	1%

	(b)   
	 
	 
	 
	 
	 

	(c)   
	 
	 
	 
	 
	 

		
	(iii)
	Compensation [do not complete if you completed (i) and (ii)]

	
					
	Dollar Amount
	% Amount
	Increment

	Min
	Max
	Min
	Max

	 
	 
	 
	 
	 

		
	(iv)
	Director Compensation

	
						
	Type of Compensation
	Dollar Amount
	% Amount
	Increment

	Min
	Max
	Min
	Max

	Annual Retainer
	 
	 
	 
	 
	 

	Meeting Fees
	 
	 
	 
	 
	 

	Other:
	 
	 
	 
	 
	 

	Other:
	 
	 
	 
	 
	 

- 5 -

		
	(b)
	Election Period

		
	(i)
	Performance Based Compensation

A special election period 

	
					
	 ̈
	Does
	 
	x
	Does Not

apply to each eligible type of performance based compensation referenced in Section 3.02 of the Adoption Agreement.

The special election period, if applicable, will be determined by the Employer.

		
	(ii)
	Newly Eligible Participants

An employee who is classified or designated as an Eligible Employee during a Plan Year 

	
					
	x
	May
	 
	 ̈
	May Not

elect to defer Compensation earned during the remainder of the Plan Year by completing a deferral agreement within the 30 day period beginning on the date he is eligible to participate in the Plan.

		
	(c)
	Revocation of Deferral Agreement

A Participant’s deferral agreement

	
		
	x
	Will

	 ̈
	Will Not

be cancelled for the remainder of any Plan Year during which he receives a hardship distribution of elective deferrals from a qualified cash or deferred arrangement maintained by the Employer to the extent necessary to satisfy the requirements of Reg. Sec. 1.401(k)-1(d)(3).  If cancellation occurs, the Participant may resume participation in accordance with Article 4 of the Plan.

		
	(d)
	No Participant Contributions

 ̈    Participant contributions are not permitted under the Plan.

- 6 -

		
	5.01
	EMPLOYER CONTRIBUTIONS

If Employer contributions are permitted, complete (a) and/or (b).  Otherwise 
complete (c).

		
	(a)
	Matching Contributions

		
	(i)
	Amount

For each Plan Year, the Employer shall make a Matching Contribution on behalf of each Participant who defers Compensation for the Plan Year and satisfies the requirements of Section 5.01(a)(ii) of the Adoption Agreement equal to [complete the ones that are applicable]:

		
	(A)
	 ̈          [insert percentage] of the Compensation the Participant has elected to defer for the Plan Year

		
	(B)
	x    An amount determined by the Employer in its sole discretion 

		
	(C)
	 ̈    Matching Contributions for each Participant shall be limited to $      and/or      % of Compensation.

		
	(D)
	 ̈    Other:    

                         
                         

		
	(E)
	 ̈    Not Applicable [Proceed to Section 5.01(b)] 

		
	(ii)
	Eligibility for Matching Contribution

A Participant who defers Compensation for the Plan Year shall receive an allocation of Matching Contributions determined in accordance with Section 5.01(a)(i) provided he satisfies the following requirements [complete the ones that are applicable]:

	
			
	(A)     ̈
	Describe requirements:
	 

	 
	                    
	 

	 
	                    
	 

	 
	 
	 

	(B)    x
	Is selected by the Employer in its sole discretion to receive an allocation of Matching Contributions
	 

	 
	 
	 

	(C)     ̈
	No requirements
	 

- 7 -

		
	(iii)
	 Time of Allocation

Matching Contributions, if made, shall be treated as allocated [select one]:

	
		
	(A)     ̈
	As of the last day of the Plan Year

	 
	 

	(B)    x
	At such times as the Employer shall determine in it sole discretion

	 
	 

	(C)     ̈
	At the time the Compensation on account of which the Matching Contribution is being made would otherwise have been paid to the Participant

	 
	 

	(D)     ̈

	Other:
                    

	 
	                    

		
	(b)
	Other Contributions

    
		
	(i)
	Amount

The Employer shall make a contribution on behalf of each Participant who satisfies the requirements of Section 5.01(b)(ii) equal to [complete the ones that are applicable]:

	
		
	(A)     ̈
	An amount equal to       [insert number] % of the Participant’s Compensation

	 
	 

	(B)    x
	An amount determined by the Employer in its sole discretion

	 
	 

	(C)     ̈
	Contributions for each Participant shall be limited to $           

	 
	 

	(D)     ̈
	Other:
                    

	 
	                    

	 
	                    

	 
	 

	(E)     ̈
	Not Applicable [Proceed to Section 6.01]

	 
	 

- 8 -

		
	(ii)
	 Eligibility for Other Contributions

A Participant shall receive an allocation of other Employer contributions determined in accordance with Section 5.01(b)(i) for the Plan Year if he satisfies the following requirements [complete the one that is applicable]:

	
		
	(A)     ̈
	Describe requirements:

	 
	                    

	 
	                    

	 
	 

	(B)    x
	Is selected by the Employer in its sole discretion to receive an allocation of other Employer contributions

	 
	 

	(C)     ̈
	No requirements

		
	(iii)
	Time of Allocation

Employer contributions, if made, shall be treated as allocated [select one]:

	
		
	(A)     ̈
	As of the last day of the Plan Year

	 
	 

	(B)    x
	At such time or times as the Employer shall determine in its sole discretion

	 
	 

	(C)     ̈

	Other:
                    

	 
	                    

	 
	                    

		
	(c)
	No Employer Contributions

 ̈    Employer contributions are not permitted under the Plan.

- 9 -

		
	6.01
	DISTRIBUTIONS

The timing and form of payment of distributions made from the Participant’s vested Account shall be made in accordance with the elections made in this Section 6.01 of the Adoption Agreement except when Section 9.6 of the Plan requires a six month delay for certain distributions to Key Employees of publicly traded companies.  

		
	(a)
	Timing of Distributions

	
			
	(i)
	All distributions shall commence in accordance with the following [choose one]:

	 
	(A)    ̈
	As soon as administratively feasible following the distribution event but in no event later than the time prescribed by Treas. Reg. Sec. 1.409A-3(d).

	 
	(B)    ̈
	Monthly on specified day       [insert day]

	 
	(C)    ̈
	Semi-Annually on specified month and day (January 1 or July 1) [insert month and day]

	 
	(D)   x
	Calendar quarter on specified month and day [1st month of quarter (insert 1,2 or 3);  1st business_ day (insert day)]

	
			
	(ii)
	The timing of distributions as determined in Section 6.01(a)(i) shall be modified by the adoption of:

	 
	(A)   x
	Event Delay – Distribution events other than those based on Specified Date or Specified Age will be treated as not having occurred for six (6) months [insert number of months].

	 
	(B)    ̈
	Hold Until Next Year – Distribution events other than those based on Specified Date or Specified Age will be treated as not having occurred for twelve months from the date of the event if payment pursuant to Section 6.01(a)(i) will thereby occur in the next calendar year or on the first payment date in the next calendar year in all other cases.

	 
	(C)    ̈
	Immediate Processing – The timing method selected by the Plan Sponsor under Section 6.01(a)(i) shall be overridden for the following distribution events [insert events]:

	 
	                 

	 
	                 

	 
	 
	 

	 
	(D)    ̈
	Not applicable.

- 10 -

		
	(b)
	Distribution Events

Participants may elect the following payment events and the associated form or forms of payment. If multiple events are selected, the earliest to occur will trigger payment. For installments, insert the range of available periods (e.g., 5-15) or insert the periods available (e.g., 5,7,9).

	
					
	

	 
	Lump Sum
	Installments

	 
	 
	 
	 

	(i)    x
	Specified Date
	x
	5, 11 or 15 years

	 
	 

	(ii)     ̈
	Specified Age
	     
	      years

	 
	 

	(iii)    x
	Separation from Service
	x
	5, 11 or 15 years

	 
	 

	(iv)     ̈
	Separation from Service plus 6 months
	     
	      years

	 
	 

	(v)     ̈
	Separation from Service plus       months [not to exceed       months]
	     
	      years

	 
	 

	(vi)     ̈
	Retirement
	     
	      years

	 
	 

	(vii)     ̈
	Retirement plus 6 months
	     
	      years

	 
	 

	(viii)     ̈
	Retirement plus       months [not to exceed       months]
	     
	      years

	 
	 

	 
	 

	(ix)  ̈
	Disability
	     
	      years

	 
	 

	(x)  ̈
	Death
	     
	      years

	 
	 

	(xi)  ̈
	Change in Control
	     
	      years

The minimum deferral period for Specified Date or Specified Age event shall be three (3) years. 
 
Installments may be paid [select each that applies] 

	
		
	 ̈
	Monthly

	 ̈
	Quarterly

	x
	Annually

		
	(c)
	Specified Date and Specified Age elections may not extend beyond age Not Applicable [insert age or “Not Applicable” if no maximum age applies]. 

- 11 -

		
	(d)
	Payment Election Override 
 
Payment of the remaining vested balance of the Participant’s Account will automatically occur at the time specified in Section 6.01(a) of the Adoption Agreement in the form indicated upon the earliest to occur of the following events [check each event that applies and for each event include only a single form of payment]:  

	
						
	 
	EVENTS
	FORM OF PAYMENT

	 ̈
	Separation from Service
	 
	Lump sum
	 
	Installments

	 ̈
	Separation from 
Service before Retirement
	 
	Lump sum
	 
	Installments

	x
	Death
	x
	Lump sum
	 
	Installments

	x
	Disability
	x
	Lump sum
	 
	Installments

	 ̈
	Not Applicable
	 
	 
	 
	 

		
	(e)
	Involuntary Cashouts 

	
		
	x
	If the Participant’s vested Account at the time of his Separation from Service does not exceed $50,000 distribution of the vested Account shall automatically be made in the form of a single lump sum in accordance with Section 9.5 of the Plan.

	 ̈
	There are no involuntary cashouts.

		
	(f)
	Retirement 

	
		
	 ̈
	Retirement shall be defined as a Separation from Service that occurs on or after the Participant [insert description of requirements]:

	 
	        

	 
	        

	x
	No special definition of Retirement applies.

- 12 -

		
	(g)
	Distribution Election Change 
 
A Participant

	
		
	x
	Shall

	 ̈
	Shall Not

be permitted to modify a scheduled distribution date and/or payment option in accordance with Section 9.2 of the Plan.

A Participant shall generally be permitted to elect such modification two (2) number of times.

Administratively, allowable distribution events will be modified to reflect all options necessary to fulfill the distribution change election provision.

		
	(h)
	Frequency of Elections

The Plan Sponsor

	
		
	x
	Has

	 ̈
	Has Not

Elected to permit annual elections of a time and form of payment for amounts deferred under the Plan.  If a single election of a time and/or form of payment is required, the Participant will make such election at the time he first completes a deferral agreement which, in all cases, will be no later than the time required by Reg. Sec. 1.409A-2.

- 13 -

		
	7.01
	VESTING

		
	(a)
	Matching Contributions 
 
The Participant’s vested interest in the amount credited to his Account attributable to Matching Contributions shall be based on the following schedule:

	
								
	 ̈
	Years of Service
	Vesting %
	 
	 

	 
	0
	     
	(insert ‘100’ if there is immediate vesting)
	 

	 
	1
	     
	 
	 

	 
	2
	     
	 
	 

	 
	3
	     
	 
	 

	 
	4
	     
	 
	 

	 
	5
	     
	 
	 

	 
	6
	     
	 
	 

	 
	7
	     
	 
	 

	 
	8
	     
	 
	 

	 
	9
	     
	 
	 

	 
	 
	 
	 
	 

	x
	Other:
As determined by the Administrator
	 
	 

	 
	                 
	 
	 

	 
	 
	 
	 

	 ̈
	Class year vesting applies.
            
	 
	 
	 

	 
	 
	 
	 
	 

	 ̈
	Not applicable.
	 
	 
	 

		
	(b)
	Other Employer Contributions 
 
The Participant’s vested interest in the amount credited to his Account attributable to Employer contributions other than Matching Contributions shall be based on the following schedule:

- 14 -

	
						
	 ̈
	Years of Service
	Vesting %
	 

	 
	0
	     
	(insert ‘100’ if there is immediate vesting)

	 
	1
	     
	 

	 
	2
	     
	 

	 
	3
	     
	 

	 
	4
	     
	 

	 
	5
	     
	 

	 
	6
	     
	 

	 
	7
	     
	 

	 
	8
	     
	 

	 
	9
	     
	 

	 
	 
	 
	 

	x
	Other:
As determined by the Administrator
	 

	 
	                 
	 

	 
	 
	 

	 ̈
	Class year vesting applies.
            
	 

	 
	 
	 
	 

	 ̈
	Not applicable.
	 
	 

- 15 -

		
	(c)
	Acceleration of Vesting 

A Participant’s vested interest in his Account will automatically be 100% upon the occurrence of the following events: [select the ones that are applicable]:

	
		
	(i)     ̈
	Death

	 
	 

	(ii)     ̈
	Disability

	 
	 

	(iii)     ̈
	Change in Control

	 
	 

	(iv)     ̈
	Eligibility for Retirement

	 
	 

	(v)    x
	Other:   As determined by the Administrator   

	 
	                       

	 
	 

	(vi)     ̈
	Not applicable.

		
	(d)
	Years of Service 

		
	(i)
	A Participant’s Years of Service shall include all service performed for the Employer and 

	
		
	 ̈
	Shall

	x
	Shall Not

include service performed for the Related Employer. 

		
	(ii)
	Years of Service shall also include service performed for the following entities:

	
	
	     

	     

	     

	     

	     

		
	(iii)
	Years of Service shall be determined in accordance with (select one)

	
		
	(A)     ̈
	The elapsed time method in Treas. Reg. Sec.  1.410(a)-7

	 
	 

	(B)     ̈
	The general method in DOL Reg. Sec.  2530.200b-1 through b-4

	 
	 

	(C)     ̈
	The Participant’s Years of Service credited under [insert name of plan]                 
                     

	 
	 

	(D)    x
	Other:  As determined by the Administrator

	 
	                          

	 
	                          

- 16 -

		
	(iv)
	 ̈ Not applicable.

- 17 -

		
	8.01
	UNFORESEEABLE EMERGENCY

(a)    A withdrawal due to an Unforeseeable Emergency as defined in Section 2.24:

	
		
	x
	Will

	 ̈
	Will Not [if Unforeseeable Emergency withdrawals are not permitted, proceed to Section 9.01]

be allowed.

		
	(b)
	Upon a withdrawal due to an Unforeseeable Emergency, a Participant’s deferral election for the remainder of the Plan Year:

	
		
	x
	Will

	 ̈
	Will Not

be cancelled.  If cancellation occurs, the Participant may resume participation in accordance with Article 4 of the Plan.

- 18 -

		
	9.01
	INVESTMENT DECISIONS

Investment decisions regarding the hypothetical amounts credited to a Participant’s Account shall be made by [select one]:

	
		
	(a)   x

	The Participant or his Beneficiary

	(b)    ̈
	The Employer

- 19 -

		
	10.01
	TRUST 

The Employer [select one]:

	
		
	x
	Does

	 ̈
	Does Not

intend to establish a rabbi trust as provided in Article 11 of the Plan.

- 20 -

		
	11.01
	TERMINATION UPON CHANGE IN CONTROL

The Plan Sponsor

	
		
	x
	Reserves

	 ̈
	Does Not Reserve

the right to terminate the Plan and distribute all vested amounts credited to Participant Accounts upon a Change in Control as described in Section 9.7.

		
	11.02
	AUTOMATIC  DISTRIBUTION UPON CHANGE IN CONTROL

Distribution of the remaining vested balance of each Participant’s Account

	
		
	 ̈
	Shall

	x
	Shall Not

automatically be paid as a lump sum payment upon the occurrence of a Change in     Control as provided in Section 9.7.

		
	11.03
	CHANGE IN CONTROL

A Change in Control for Plan purposes includes the following [select each definition that applies]:

		
	(a)
	x    A change in the ownership of the Employer as described in Section 9.7(c) of the Plan.

		
	(b)
	x    A change in the effective control of the Employer as described in Section 9.7(d) of the Plan.

		
	(c)
	x    A change in the ownership of a substantial portion of the assets of the Employer as described in Section 9.7(e) of the Plan.

		
	(d)
	 ̈    Not Applicable.

- 21 -

		
	12.01
	GOVERNING STATE LAW

The laws of California shall apply in the administration of the Plan to the extent not preempted by ERISA.

- 22 -

EXECUTION PAGE

The Plan Sponsor has caused this Adoption Agreement to be executed this 1st day of October, 2013.

	
		
	PLAN SPONSOR:
	/s/ Denise Devlin

	By:
	Denise Devlin

	Title:
	VP Total Rewards

- 23 -

APPENDIX A 
SPECIAL EFFECTIVE DATES
Not Applicable

- 24 -singletouchexh10_191.htm

 Exhibit 10.19.1

 

 

JOINT MARKETING AGREEMENT

This joint marketing agreement (the "Agreement") is hereby entered into by and between Pharmacy Management Strategies, LLC (“PMS”), a [ENTER STATE OF ORGANIZATION] limited liability company, having an office located at [ENTER PMS’s OFFICE ADDRESS], and Single Touch Interactive Inc., a Nevada corporation having an office located at Newport Corporate Center, 100 Town Square, Jersey City, NJ, 07310 (the “STI”) (PMS and the STI are sometimes collectively referred to herein as the “Parties” or the “Party” individually), as of this 14th day of March,2012 (the “Effective Date”).

Whereas, PMS is expert at marketing and other persuasive communications relating to health care and health insurance, as well as certain other ad hoc industry segments (the “PMS Service”); and

Whereas, all of PMS’s members and others with any actual or potential direct or indirect pecuniary interests or other stakes include Anthony V. Milone and Gavin A. Scotti; and

Whereas, STI engages in the development, publishing, and distribution of wireless applications in the United States, and is a technology based mobile media solutions provider which has developed, inter alia, a multi-channel messaging gateway enabling marketers to reach consumers on all types of connected devices including cell phones across certain wireless providers and other mobile and digital means, as well as, where appropriate, traditional communications channels (the “STI Product” as defined hereinbelow); and

Whereas, the STI Product includes such software, methods, other utilities, and/or services which perform, inter alia, short messaging service text messages (“SMS Messages”), SMS Messages with embedded Uniform Resource Locator (“URL”) links  (such SMS Messages with embedded URL links “Rich Text Messages” or “RTM Messages”), Multimedia Messaging Service Messages (“MMS Messages”), and voice messages (“Voice Messages”) (the four such types of messages as may later be expanded collectively the “Messages” or “Messaging”).  In addition, and without limiting the foregoing, STI offers through its patented and other proprietary intellectual, tangible, and other property, inter alia, mobile-related services, including those to which reference can be made (without in any way limiting the scope of any aforementioned related property rights) as STI’s “Mobile Abbreviated Dial Code (MDC/ADC) Platform”, “Mobile Digital Coupon Solution”, “Mobile Machine – Content Delivery Platform”, “Campaign Management System” and any other such similar products that STI may develop from time to time which may be employed in connection with this Agreement (all Messaging, as explained in the first sentence hereof, and all related property and services, as explained in the second sentence hereof, hereinafter collectively referred to as the “STI’s Product”); and

Whereas, PMS and the STI plan to go to market together with joint efforts for the sale of either or both of the PMS Service and/or the STI Product and to memorialize with a Statement of Work (“SOW”) any later project the details which are not already provided herein but may be incorporated herein by reference; and

 

 

  

1

  

Whereas, PMS and STI desire to enter into a two-fold relationship where:

(1) PMS assists with the solicitation, contracting, revenue generation, and further penetration of new clients (“New Business Efforts”) for STI, and

(2) STI assists with New Business Efforts for PMS; and

Whereas, PMS is willing to provide New Business Efforts for STI for the companies listed in Exhibit A (the “Initial STI New Business Prospects”), as well as any other such prospective clients for STI which both STI and PMS agree to pursue; and

Whereas, STI is willing to provide New Business Efforts for PMS for any prospective clients for PMS which both STI and PMS agree to pursue; and

Whereas, the STI Product utilizes patents, copyrights, trade secrets, proprietary technology, confidential information and/or “know how” owned by or licensed to STI; and

Whereas, each Party recognizes and agrees that this Agreement cannot be an exclusive one (because, by way of example only, a given prospective client might wish to engage one Party but not the other Party) such that either Party can expend New Business Efforts with third parties under terms, conditions, and business practices (including, but not limited to, with due consideration of any confidentiality agreements between the Parties as provided hereinbelow and any other such agreements to which a Party may become found with a third party) not otherwise at variance with this Agreement.

Now therefore, in consideration of the mutual agreements and covenants contained herein, the Parties hereby agree as follows:

	
1.

	
The Parties’ Obligations Concerning New Business Efforts:

	
  

	
1.1.

	
Appropriate personnel of each Party will meet regularly and on an ad hoc basis in furtherance of the New Business Efforts of both.    Initially such regular meetings will be weekly with agreed agenda reflecting each related solicitation effort, the responsibilities of each individual, and the progress made since the last such meeting.   The Parties may agree to change such scheduling from time to time.

	
  

	
1.2.

	
The efforts of personnel of each Party, as well as of other persons deemed necessary, for the solicitation of each prospective client will be coordinated and agreed.   Only thereafter will any New Business Efforts relating to such prospective client be made.

	
  

	
1.3.

	
Neither Party shall be compelled to accept any client engagement arising out of the New Business Efforts of either or both Parties (or pay any associated Fees as provided hereinbelow), and the New Business Efforts, whether successful (in achieving Net Revenue as defined hereinbelow subject to Fees) or not, will create any presumption as to entitlement to Fees, property interests, or other rights except as expressly provided in this Agreement or any later Statement of Work (“SOW”) later appended to and incorporated into this Agreement.

 

 

  

2

  

 

	
  

	
1.4.

	
All Messages, other communications, and information and records will comply with all legal and quasi-legal requirements, including, but not limited to, the Health Insurance Portability and Accountability Act (“HIPAA”); the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 (“CAN-SPAM”); the Children’s Online Privacy Protection Act (“COPPA”); related federal, state, and local laws, regulations, and administrative pronouncements and guidelines; and the guidelines of the Mobile Marketing Association.

	
2.

	
The Parties’ Obligations concerning Fees:

	
  

	
2.1.

	
STI, will cause its parent company, Single Touch Systems, Inc. (“SITO”), a Delaware corporation, to issue a warrant (the “New Warrant”) in the form of that certain warrant called a Stock Option and dated June 28, 2011 (the “Old Warrant”.)   All terms and conditions of the New Warrant will be the same as those of the Old Warrant, except that that the Exercise Price (as defined in the Old Warrant and as shall be reiterated without change in the New Warrant) shall be $0.30 rather than $0.80 (as was provided in Section 2(b) of the Old Warrant.)  For the avoidance of doubt, the Termination Date of the New Warrant, with one million (1,000,000) Stock Option Shares (as defined in the recital of the Old Warrant and shall be reiterated without change in the New Warrant) shall continue to be June 28, 2014 (the third anniversary of the Old Warrant as provided in the recital of the Old Warrant and will remain unchanged in the New Warrant.)  Concurrently with PMS’s receipt of the New Warrant, PMS shall return to SITO the Old Warrant, and all rights, obligations, terms and conditions of the Old Warrant will be extinguished and supplanted entirely by those of the New Warrant.

	
  

	
2.2.

	
In consideration of Referral Revenue (as defined hereinbelow) earned and collected by one Party, the Party that has collected such Referral Revenue will pay a fee equal to fifteen percent (15%) of such Referral Revenue (the “Ordinary Fee”.)  In addition, and without limiting the foregoing, following any calendar year, (i) within the Term (as defined hereinbelow) or (ii) including any portion of the post-termination period described by any of the situations enumerated within Section 9.6 (but not any post-termination period described by any of the situations enumerated within Section 9.7) an extraordinary fee equal to three percent (3%) of such Referral Revenue earned and collected in such preceding calendar year (the “Extraordinary Fee”) will be payable; provided, however, that any such Extraordinary Fee will be so due and payable if and only if such just-ended calendar year Referral Revenue is at least the Additional Fee Referral Revenue Threshold (as defined in this Section 2.2.)  The Additional Fee Referral Revenue Threshold shall be ten million dollars ($10,000,000); provided, however, that should the Term not include all calendar days of such just-completed calendar year then for such just-completed calendar year the Additional Fee Referral Revenue Threshold shall be ten million dollars ($10,000,000), multiplied by a fraction, the numerator of which shall be the number of calendar days of the Term included in such just-completed calendar year and the denominator of which shall be the number of 

 

 

  

3

  

 

 

	
  

	
 

	
calendar days included in such calendar year, viz, 365 for any non-leap year and 366 days for any leap year.  For the avoidance of doubt, all such just-ended calendar year Referral Revenue, not just that Referral Revenue for such just-ended calendar year that is in excess of such Additional Fee Referral Revenue Threshold, shall be subject to any such Extraordinary Fee.  For the purposes of this Agreement, “Fee” or “Fees” shall always include such Ordinary Fee(s) but will only also include such Extraordinary Fee(s) where explicitly provided above within this Section 2.2

 

	
  

	
2.3.

	
Referral Revenue shall mean Net Revenue (as defined hereinbelow) earned and collected by one Party that would not be so earned and collected but for the efforts of the other Party.    For these purposes Net Revenue shall be so deemed to be Referral Revenue with respect to any prospective client converted into an actual client of the Party so referred only if all three of the following conditions are met, viz: (i) a representative of the referring Party makes the initial introduction of the other Party to the prospective client; (ii) a senior representative of the referring Party personally participates in most of the New Business Efforts meetings, calls, emails, or other direct solicitations of the prospective client; and (iii) a senior representative of the referring Party personally participates in the proposal and contract negotiations with such prospective client.  For the avoidance of doubt, any prospective client, whether listed as one of the STI New Business Prospects on Schedule A or not, must meet all three such criteria in order for any related Net Revenue from such prospective client to be considered Referral Revenue.

	
  

	
2.4.

	
Net Revenue shall be defined as receipts for (i) commissions (including discounts and rebates not due to a client); (ii) fees (charges to a client not reflecting costs recharged, whether overtly or as part of and subsumed within such fees, all as provided in this Section 2.4) to clients; (iii) mark-up on production and materials purchase outside or produced in-house; (iv) hours billed to a client; and (v) charges for Messages.    Net Revenue shall not include (and shall be reduced if inclusive of, whether or not overtly noted on client invoices and/or in other correspondence): (i) interest and other financial source income; (ii) discounts gained from early payment of suppliers; (iii) rental income (other than rental of tangible personal property and licensure of intellectual property of STI, whether or not embedded in and/or subsumed in the related charges for STI tangible personal property integral to the STI Product); (iv) capital gains or losses on sales of assets; (v) foreign exchange gains or losses (except to the extent of any realized foreign exchange gains or losses relating to the difference in exchange rates at the time of billing Referral Revenue and collecting such Referral Revenue subject to the Fees); (vi) miscellaneous income (subject to the prior written agreement by STI and PMS); (vii) out-of-pocket expenses (including, but not limited to, travel costs, valid business meals, and external printing) recharged to a client; and (vii) costs of Messaging and other telephonic and similar carriers’ charges, interconnections fees, co-location fees, and other direct costs associated with and representing a diminution hereunder to Net Revenue.

 

 

  

4

  

 

	
  

	
2.5.

	
As provided in the final recital of this Agreement, the Parties recognize and acknowledge that their relationship is not an exclusive one.   In keeping with such non-exclusivity, each Party acknowledges and accepts that it is not entitled to any preference or other rights with respect to New Business Efforts or actual or expected future Net Revenue with respect to any client not subject to Fees under this Agreement.  For the avoidance of doubt, neither Party will be entitled to any Fees with respect to Net Revenues independently developed by the Party earning and collecting such Net Revenue.

	
  

	
2.6.

	
In keeping with Section 2.1 hereof, STI and PMS will plan and agree a budget for travel, entertainment, events, and similar components of the New Business Efforts.   Unless otherwise agreed by the Parties, which agreement can be varied during a month in light of ad hoc prospective client opportunities that may arise after any such monthly or other planning session, STI will pay for (after receipt of expense reports with receipts acceptable to STI) a monthly budget equal to the lesser of: (i) ten thousand dollars ($10,000) or (ii) that amount which is deemed necessary and prudent (including consideration of STI’s financial position) to incur by both Parties (the lesser of such two amounts paid by STI the “STI Marketing Spend”.)

	
  

	
2.7.

	
From the commencement of the Term (as provided hereinbelow) fifty percent (50%) of the STI Marketing Spend will be counted cumulatively from the Effective Date as a prepayment of any Fees due to PMS (any such amount for any month that month’s “STI Monthly Prepayment” and the cumulative amount of such STI Prepayment for all months since the Effective Date “Cumulative STI Prepayment”.)

	
  

	
2.8.

	
No later than the tenth (10th) day following any month each Party will submit, via email, to the other Party details, for the month just concluded, of: (i) billings of Referral Revenue, (ii) collections of the Referral Revenue, (iii) expenses incurred against the STI Marketing Spend (and the supporting documents for such STI Marketing Spend), (iv) within such STI Marketing Spend the STI Monthly Prepayment, and (v) the reconciliation of the Cumulative STI Prepayment (as provided hereinbelow.)

	
  

	
2.9.

	
Within seven (7) days of the reports as provided in Section 2.8, the Parties will agree the reconciliation of the amount payable, if any, by one Party to the other Party.    Any such amount payable will be a net payment, with the full exercise of the right of offset for any amount due from one Party to another to be offset against any amount due from the other Party to the first Party.

 

	
  

	
2.10.

	
 
The amount payable by one Party following the reconciliation will be calculated in accordance with the following priority and chronology.  Firstly, STI will be liable to repay PMS for any STI Marketing Spend for the month being reconciled.   Secondly, the STI Monthly Prepayment component of that month’s STI Marketing Spend will be offset (that is treated as prepayment) of any Fee due and otherwise payable from STI to PMS for that month’s Referral Revenue collected by STI and properly credited to PMS as provided hereinbefore.   Thirdly, the Fee due and otherwise payable by PMS to STI for that month’s Referral Revenue collected by PMS and properly credited to STI as provided hereinbefore will be reduced by all amounts properly charged against such amount as provided hereinbefore (including, for the avoidance of doubt, any Cumulative STI Prepayment not already recouped by STI by offset against or payment from PMS in prior months starting with the Effective Date.)

 

 

  

5

  

 

 

	
  

	
2.11.

	
 
The payment of such net amount due one Party to the other Party for such just-completed month will be calculated in accordance with the one relevant situation of the following all-inclusive list of all  mutually-exclusive sets of possible circumstances, viz, in the event that:  (i) there has been no activity for that month no payment will be made by any Party to the other Party; (ii) the only activity for that month has been the incurrence by PMS and acceptance of STI Marketing Spend by STI, then STI will reimburse PMS for that month’s STI Marketing Spend; (iii) the STI Marketing Spend to be reimbursed by STI to PMS for that month is in excess of all other components of net effect of all other amounts so reconciled (excluding, for the avoidance of doubt, such month’s STI Marketing Spend so reimbursable to PMS but including the taking into account of any Cumulative STI Prepayment not already recouped by STI via offset and/or payment from PMS to STI in the preceding months of the Term as such Term may be extended as provided hereinbelow), then STI will reimburse PMS for such excess; (iv) there is a net payment due from STI to PMS (taking into consideration all amounts so reconciled for that month and all Cumulative STI Prepayment not already recouped by STI via offset and/or payment from PMS to STI in the preceding months of the Term as such Term may be extended as provided hereinbelow), then STI will pay that net amount to PMS; or (v) there is a net payment due from PMS to STI (taking into consideration all amounts so reconciled for that month and all Cumulative STI Prepayment not already recouped by STI via offset and/or payment from PMS to STI in the preceding months of the Term (as such Term may be extended as provided hereinbelow), then PMS will pay such net amount to STI.

 

	
  

	
2.12.

	
 
Without in any way affecting the foregoing parts of this Section 2 or Section 3, either Party may consider, in its sole and absolute discretion, a grant of equity (whether in the form of options, warrants, shares, membership interests, or otherwise) of  such Party or its related companies and/or affiliates to the other Party for exemplary performance.  For the avoidance of doubt with respect to the preceding sentence, any such grant would be, in the case of STI, of a warrant over or shares of SITO, any such warrant or share grant to be made at the sole and absolute discretion of the SITO Board of Directors and, in the case of PMS, membership interests in PMS, any such membership interest grant to be made at the sole and absolute discretion of [ENTER ULTIMATE GOVERNING BODY] of PMS.  Even in the event of exemplary performance by either or both Parties, no obligation of a grant can be implied by the existence of this Section 2.12.  No reliance in any manner can be placed upon oral, written or other communications by the Parties or its employees or agents to infer any obligation of any grant.

	
3.

	
Payment, Audit:

	
  

	
3.1.

	
Payment. The net amount due one Party to the other Party, if any, as calculated in accordance with Section 2.11 will be made no later than the last day of the month following the month just reconciled.

 

 

  

6

  

 

 

	
  

	
3.2.

	
Audit.  Each Party shall maintain records of all activities subject to payments pursuant to this Agreement.  Each Party shall permit an independent certified public accountant designated by the other Party to have access, at a mutually agreed upon time during normal business hours, to the records and books of account which relate solely to this Agreement for the purpose of determining whether the appropriate amounts have been paid.  Such audits may not be required more often than once every year; provided, however, that either Party may audit the other within six (6) months of any audit in which a discrepancy of five percent (5%) or greater is discovered.  If a discrepancy is discovered, the Party in whose favor the error was made will promptly pay the amount of the error to the other Party. The Party requesting the audit will pay the cost of the audit; provided, however, that if a discrepancy is discovered of five percent (5%) or greater, then the audited Party will be required to pay the reasonable costs of the audit.

 

	
4.

	
Trademarks and Other Intellectual Property:

 

	
  

	
4.1.

	
Subject to the terms and conditions of this Agreement, each Party hereby grants to the other Party a limited license for the Term but not thereafter to use the licensor’s trademarks (the "Licensed Marks") on the licensee’s Website or other promotional material solely for purposes contemplated in this Agreement, but only after receipt of written approval for such prospective promotional use.

 

The Parties acknowledge and agree that (i) the licensor’s Licensed Marks are and shall remain the sole property of the licensor, and (ii) nothing in this Agreement shall convey to licensee any right of ownership in the licensor’s Licensed Marks.

 

	
  

	
4.2.

	
Nothing in this Agreement shall affect a Party's rights to its intellectual property existing at the effective date of this Agreement or developed independently of the activities under this Agreement that is under the control of either Party and that is reasonably necessary, relevant or otherwise useful for performing the activities under this Agreement.  For the purposes of this definition “control” means ownership and/or the right to grant access or licenses to third parties.  “Intellectual Property” shall mean all patents, trademarks, utility certificates and models, inventors’ certificates, copyrights, database rights, designs, domain names, trade secrets and any other proprietary rights, priority rights, prior user rights and all other rights of a like nature in each case whether registered or unregistered and in any jurisdiction.

	
5.

	
Limitation of liability:

	
  

	
5.1

	
In no event shall either Party be liable to the other for any indirect, special, incidental, punitive, or consequential damages, including, but not limited to, loss of profits, loss of data, loss of business or other loss arising out or resulting from this Agreement even if either Party has been advised of the possibility of such damages.  The foregoing shall apply regardless of the negligence or other fault of either Party and regardless of whether such liability sounds in contract, negligence, tort or any other theory of liability.

 

 

  

7

  

 

 

	
6.

	
Confidentiality

 

	
  

	
6.1.

	
Confidentially Obligations.  Either Party (the "Disclosing Party") may from time to time disclose Confidential Information to the other Party (the "Recipient").  "Confidential Information" is all nonpublic information concerning the business, technology, internal structure and strategies of the Disclosing Party which is conveyed to the Recipient orally or in tangible form and is either marked as "confidential" or which is identified as "confidential" prior to disclosure.  During the Term of this Agreement and for a period of four (4) years thereafter, Recipient will keep in confidence and trust and will not disclose or disseminate, or permit any employee, agent or other person working under Recipient's direction to disclose or disseminate, the existence, source, content or substance of any Confidential Information to any other person. Recipient will employ at least the same methods and degree of care, but no less than a reasonable degree of care, to prevent disclosure of the Confidential Information as Recipient employs with respect to its own confidential patent data, trade secrets and proprietary information.  Recipient's employees and independent contractors will be given access to the Confidential Information only on a need-to-know basis, and only if they have executed a form of non- disclosure agreement with Recipient which imposes a duty to maintain the confidentiality of information identified or described as confidential by Recipient and after Recipient has expressly informed them of the confidential nature of the Confidential Information.  Recipient will not copy or load any of the Confidential Information onto any computing device or store the Confidential Information electronically except in circumstances in which Recipient has taken all reasonable precautions to prevent access to the information stored on such device or electronic storage facility by anyone other than the persons entitled to receive the Confidential Information hereunder.

 

	
  

	
6.2.

	
Permitted Disclosures.  The commitments in this Section 6 will not impose any obligations on Recipient with respect to any portion of the received information which: (i) is now generally known or available or which, hereafter through no act or failure to act on the part of Recipient, becomes generally known or available; (ii) is rightfully known to Recipient at the time of receiving such information; (iii) is furnished to Recipient by a third party without restriction on disclosure and without Recipient having actual notice or reason to know that the third party lacks authority to so furnish the information;  (iv) is independently developed by Recipient; or (v) is required to be disclosed by operation of law or by an instrumentality of the government, including but not limited to any court, tribunal or administrative agency.

 

 

 

  

8

  

 

 

	
7.

	
Patient Data Confidentiality:

 

	
  

	
7.1.

	
In keeping with, and for further clarification of, the obligations of the Parties to comply with relevant laws, as provided in Section 1.4 (and without limiting in any way such covenants within Section 1.4), Each Party acknowledges and agrees that it will comply with all provisions applicable to it in connection with its use and disclosure of Protected Health Information (“PHI”) as that term is defined in HIPAA. Each Party agrees that it will not combine or compare or otherwise use any of the Measurement Data against or with data received by it from any other person or entity that includes data elements expressly listed as identifiable under HIPAA. Each Party shall retain, and make available to the other upon request, documentation of the methods and results of the analysis justifying such determination. Notwithstanding anything in the foregoing or this Agreement to the contrary, in the event there are changes in HIPAA that would materially impact the ability either of STI or PMS to comply with HIPAA or the terms thereof (including, but not limited to, as a result of increased costs to either Party relating to compliance with HIPAA), the parties shall have the option to terminate this Agreement without any further obligations to the other except as otherwise provided herein.

 

	
8.

	
Indemnification; Limitation

 

	
  

	
8.1.

	
STI shall indemnify defend, and hold PMS harmless from and against all claims, damages, liabilities, losses, judgments, costs or expenses, but not attorney’s fees, arising out of (i) the STI's breach of the terms of this Agreement, (ii) STI's non-compliance with any applicable federal, state and local law or other requirements relating to any of the transactions contemplated by this Agreement, or (iii) the STI's misuse of the intellectual property of PMS. STI shall have the sole control over the said defense and the resolution of such claims, provided, however, that PMS may, if it so chooses and at its own expense, participate in its own defense with counsel of its own choosing. Notwithstanding the foregoing, STI shall obtain the written consent of PMS prior to ceasing to defend, settling or otherwise disposing of any claims hereunder, if as a result thereof, PMS would become subject to injunctive or other equitable relief or the business of PMS would be adversely affected in any manner. This indemnification provision shall survive the termination or expiration of this Agreement.

	
  

	
8.2.

	
PMS shall indemnify defend and hold STI harmless from and against all claims, damages, liabilities, losses, judgments, costs or expenses, but not attorney’s fees, arising out of (i) PMS’s breach of the terms of this Agreement, (ii) PMS's non-compliance with any applicable federal, state and local law or other requirements relating to any of the transactions contemplated by this Agreement, or (iii) PMS's misuse of the intellectual property of STI.  PMS shall have the sole control over the said defense and the resolution of such claims, provided, however, that STI may, if it so chooses and at its own expense, participate in its own defense with counsel of its own choosing.  Notwithstanding the foregoing, PMS shall obtain the written consent of STI prior to ceasing to defend, settling or otherwise disposing of any claims hereunder, if as a result thereof, the STI would become subject to injunctive or other equitable relief or the business of the STI would be adversely affected in any manner. This indemnification provision shall survive the termination or expiration of this Agreement.

 

 

 

  

9

  

 

 

	
  

	
8.3.

	
Neither Party nor its affiliates, employees, agents, independent contractors, officers or directors will be liable for any incidental, special, consequential or punitive damages or amounts for loss of income, profits or savings arising out of or relating to its performance or failure to perform under this Agreement, regardless of the basis on which a Party is entitled to claim damages, whether in contract or tort (including breach of warranty, negligence and strict liability), even if such Party has been advised of the possibility of such damages in advance.

 

	
9.

	
Term And Termination

	
  

	
9.1.

	
The term of this Agreement shall commence upon the Effective Date and shall continue for three (3) years (the "Term"). Thereafter, the Term will automatically be renewed for successive terms of one (1) year unless either Party notifies the other Party of termination no later than ninety (90) days prior to the beginning of the forthcoming annual Term extension in writing.

	
  

	
9.2.

	
The Parties hereto may terminate this Agreement prior to the end of the Term (as such Term may be extended in accordance with Section 9.1): (i) with mutual written consent at any time, (ii) under the circumstances are provided in Section 7.1, (iii) under the circumstances provided in Section 9.3, (iv) under the circumstances provided in Section 9.4, or (v) under the circumstances provided in Section 9.5.

	
  

	
9.3.

	
If either Party is in default of any material provision of this Agreement and such default is not cured within thirty (30) days of receipt of written notice, the non-breaching Party shall have the right to terminate this Agreement.  The remedy set forth in this Section 9.3 shall be non-exclusive and the non-terminating Party shall have all other remedies available at law and in equity.

	
  

	
9.4.

	
Either Party shall have the right to terminate this Agreement in writing immediately if the other Party (i) voluntarily or involuntarily becomes the subject of a petition in bankruptcy or of any proceeding relating to insolvency, receivership, liquidation, or composition for the benefit of creditors; or (ii) admits in writing its inability to pay its debts as they become due.

	
  

	
9.5.

	
Either Party shall have the right to terminate this Agreement in writing immediately if such Party notifies the other Party of substantial and/or regular service quality complaints from clients serviced jointly or vendors employed mutually of a serious nature such that continuance of the relationship under this Agreement could substantially diminish the business and/or reputation of the complaining Party and such valid complaints are not cured within thirty (30) days of the receipt of written notice.

 

 

 

  

10

  

 

 

	
  

	
9.6.

	
In the event that this Agreement is terminated (i) pursuant to Section 7.1, (ii) via elective non-renewal (as provided in Section 9.1), or (iii) by mutual consent (as provided in accordance with Section 9.2), then the Parties will continue to make monthly reconciliations and make payments in accordance with Sections 2 and 3 for the remaining months (as of the date of termination) of the period of sixty-six (66) months for each client whose Net Revenue is Referral Revenue subject to Fees (such sixty-six-month period for any such client commencing with the first month for which Referral Revenue subject to Fees is earned from such client), including, for the avoidance of doubt, Referral Revenue subject to Fees earned and collected in such post-termination period for any such client and any Cumulative STI Prepayment not recouped by STI (via offset and/or payment from PMS to STI) as of the effective date of such termination.   If, at the end of last month when any such Fees may be payable, there remains any Cumulative STI Prepayment not recouped by STI, PMS will repay such amount to STI no later than the last day of the following month.  No more monthly reconciliations or payments will be required following the end of such final month following termination for the reasons listed in this Section 9.6.  For the avoidance of doubt and to amplify internal consistency of this Agreement, all reference to Fees in this Section 9.6 shall always include Ordinary Fees but will include Extraordinary Fees only in the event that the condition precedent for any obligation to pay any such Extraordinary Fee, as provided in Section 2.2, is met.

 

	
  

	
9.7.

	
In the event that this Agreement is terminated for any reasons not listed in Section 9.6, which, for the avoidance of doubt and without limiting the foregoing, could be only pursuant to Section 9.3 (relating to uncured breach), Section 9.4 (relating to bankruptcy, insolvency, or similar situations), or Section 9.5 (relating to uncured substantial service quality complaints),  then no Net Revenue (whether or not such Net Revenue would otherwise qualify as Referral Revenue) earned following such a termination will be subject to Fees, and for each of the following three (3) months following termination the Parties will continue to reconcile amounts and make payments in accordance with Sections 2 and 3 (except that such Net Revenue that would otherwise qualify as Referral Revenue and be subject to Fees will not so qualify, not so be subject, and not be included in any such reconciliations and payments, but such continuing reconciliations and payments will continue to take into consideration any Cumulative STI Prepayment not recouped by STI as of the date of termination.)   If, at the end of such three-month period, there remains any Cumulative STI Prepayment not recouped by STI, PMS will repay such amount to STI no later than the least day of the following month (i.e., the fourth month following termination.)  No more monthly reconciliations or payments will be required following the end of such fourth month following termination for the reasons listed in this Section 9.7.  For the avoidance of doubt and to amplify internal consistency of this Agreement, all reference to Fees in this Section 9.7 shall always include Ordinary Fees but will never include Extraordinary Fees.

 

	
  

	
9.8.

	
The rights and obligations under Sections 5 through 8, Section 9.6, and Section 9.7 shall survive after the expiration or earlier termination of this Agreement.

 

 

  

11

  

 

 

	
10.

	
Regulatory Approval

 

	
  

	
10.1

	
Each Party hereby represents to the other that it is not aware of the need for it to procure any state or federal regulatory approvals for the PMS Service nor the STI Product. The Parties agree to immediately notify each other if one becomes aware of any such approval requirement at any time during the effective period of this Agreement.

 

	
11.

	
Assignment

 

	
  

	
11.1.

	
Neither Party may sell, assign, transfer or otherwise convey any of its rights or delegate any of its duties under this Agreement without the prior written consent of the other Party, except that a Party's rights hereunder may be transferred to a successor of all or substantially all of the business and assets of the Party (no matter how the transaction or series of related transactions is structured).

 

	
  

	
11.2.

	
Whenever the members or others with stakes in PMS may change from the list on the first (1st) page hereof (as such list may be updated from time to time), PMS will promptly notify STI of such change.

 

	
12.

	
Entire Agreement

 

	
  

	
 
12.1.

	
 
This Agreement constitutes the entire understanding and agreement between the parties, and supersedes all previous agreements (whether written or oral) concerning the subject matter hereof.  This Agreement may not be amended or supplemented except by a written document executed by the Parties to this Agreement, which amendment and supplementation can be effectuated, without limitation, via an SOW incorporated herein (with any such amendment or supplementation applicable only to the subject matter of such SOW unless expressly noted as applicable to the entirety of this Agreement in such SOW.)  For the avoidance of doubt, this Agreement, in particular Section 2.1 hereof, represents complete and final resolution of any amounts that might be claimed under that certain May 13, 2011 agreement (the “May Agreement”.)    Furthermore, the Parties acknowledge and agree that the Old Warrant, when issued, represented complete and adequate consideration in full satisfaction of all rights and obligations under that May Agreement and that the Old Warrant was given and received in consideration of a complete and irrevocable release of both Parties from any further rights, obligations, or liabilities from the May Agreement.  Finally, the Parties acknowledge and agree that the New Warrant does not in any way limit the foregoing and represents complete and adequate consideration in satisfaction of the Old Warrant, which Old Warrant becomes void and unenforceable in any way with the issuance of the New Warrant in place of the Old Warrant.

 

 

  

12

  

 

 

	
13.

	
Dispute Resolution; Governing Law and Venue

 

	
  

	
13.1

	
This Agreement and all disputes arising out of or related to this Agreement, or the performance, enforcement, breach or termination hereof, and any remedies relating thereto, shall be governed by and construed and interpreted in accordance with the laws of the State of New York without regard to choice or conflict of laws rules.   Any and all disputes shall be resolved with binding arbitration before a single arbitrator of the American Arbitration Association (“AAA”) in the City, County, and State of New York.  Each Party will bear the costs of its legal and other advisors, but each Party will share equally in the costs of arbitration, which costs shall include only fees and costs charged by the AAA and/or by such arbitrator.   Notwithstanding such agreement for binding arbitration, in the event of an action properly brought for equitable relief for which arbitration cannot be required such action will be brought in a state or federal court sitting in the City, County and State of New York, and each Party hereby consents to the jurisdiction of said courts.

 

	
14.

	
Notices

 

	
  

	
14.1

	
All notices provided hereunder (with the exception of invoices and payments) shall be in writing and shall be delivered by a national overnight courier service (with proof of delivery) or mailed by certified mail, return receipt requested. Notices shall be deemed effective on the earlier of when deposited with a recognized national overnight courier service or when received by certified mail.  STI’s and PMS's respective addresses for notice purposes shall be as set forth on the first page of this Agreement, unless either Party notifies the other as provided herein that notices to such Party should be sent to a different address.

 

	
15.

	
Force Majeure

 

	
  

	
15.1

	
Neither Party hereto shall be in default hereunder by reason of its delay in the performance or failure to perform any of its obligations hereunder for any event, circumstance, or cause beyond its control such as, but not limited to, acts of God, civil disobedience acts or occupations, strikes, lock-outs, general governmental orders or restrictions, war, threat of war, hostilities, revolution, riots, epidemics, power shortages, fire, earthquake, or flood. The Party affected by any such event shall notify the other Party within a maximum period of fifteen (15) days from its occurrence. The performance of this Agreement shall then be suspended for as long as any such event shall prevent the affected Party from performing its obligations under this Agreement.

 

	
16.

	
Severability

 

	
  

	
16.1

	
The provisions of this Agreement are severable, and  in the event any provision hereof is determined to be invalid or unenforceable, such invalidity or unenforceability shall not in any way affect the validity or enforceability of the remaining provisions hereof.

 

 

  

13

  

 

 

	
17.

	
Waiver

 

	
  

	
17.1

	
 
17.1  The waiver of a default hereunder by one Party may be accomplished only by a written acknowledgment signed by the other Party and shall not constitute a waiver of any other default.  The failure of either Party to enforce any right or remedy for any one default shall be deemed a waiver of said right or remedy if the Party persists in such default or commits any other default, but no such actual or deemed waiver will in any way affect the validity of this Agreement or any part hereof or amend any other part of this Agreement.

 

	
18.

	
Independent Parties; No Third-Party Beneficiary

 

	
  

	
18.1

	
Nothing in this Agreement shall be deemed to constitute, create, give effect to or otherwise recognize an employment relationship, agency, partnership, joint venture or formal business entity of any kind or create a fiduciary or similar relationship between the Parties; and the rights and obligations of the Parties shall be limited to those expressly set forth herein.  The parties do not intend, and nothing in this Agreement shall be deemed, to give any person or entity other than the Parties hereto any right or interest based on this Agreement.

 

	
19.

	
Counterparts

 

	
  

	
19.1

	
This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, but all of which together shall constitute the same agreement. Any signature page of any such counterpart may be attached or appended to any other counterpart to complete a fully executed counterpart of this Agreement.

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the Effective Date.

 

	PHARMACY MANAGEMENT SOLUTIONS, LLC	 	 	SINGLE TOUCH INTERACTIVE, INC.	 
	 	 	 	 	 
	 	 	 	 	 
	
By:   /s/ Anthony Malone                                          

	 	 	
By:   /s/ John Quinn                                                     

	 
	
 

	 	 	
 

	 
	
Title:   Director                                                            

	 	 	
Title:   Chief Financial Officer                                      

	 

 

 

 

 

  

14

  

 

 

Schedule A

 

 

Walgreens (Deerfield, IL)

 

CVS Caremark (Woonsocket, RI)

 

Rite-Aid (Camp Hill, PA)

 

Health Mart (San Francisco, CA)

 

Kerr [ENTER CITY & STATE]

 

Kroger (Cincinnati, OH)

 

Katz Group (Edmonton, Alberta, Canada)

 

Safeway (Pleasonton, CA)

 

Shoppers Drug Mart (North York, Ontario, Canada)

 

Sears Holdings/Kmart (Hoffman Estates, IL)

 

Medicine Shoppe International (Dublin, OH)

 

Supervale (Minneapolis, MN)

 

Publix Super Markets (Lakeland, FL)

 

Ahold USA (Braintree, MA)

 

Albertsons (Boise, ID)

 

Winn-Dixie Stores (Jacksonville, FL)

 

 

[ADD INSURERS AND ANY OTHER LIKELY NEW BUSINESS PROSPECTS]

 

 

 

 

15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00223-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00223-of-00352.parquet"}]]