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Partner Agreement
 
between
 
Vodafone D2 GmbH
Am Seestern 1
40547 Düsseldorf
 
(hereinafter referred to as “ VF D2 ”)
 
and
 
Twistbox Games Ltd & Co KG
Lohbachstr. 12
58239 Schwerte
Germany
 
(hereinafter referred to as “ ASP ”)
 
I.   Subject of Agreement
 
Provision of the Application by the ASP for use on the VF D2 portals such as, but not limited to the portal “Vodafone-live” in compliance with VF D2’s general terms and conditions for Partner Agreements as set out in the version of such terms and conditions dated 27.08.2007 (hereinafter referred to as (“AGB”) as Annex 1.
 
II.   Type of the Application
 
For all types of product mobile games and applications unless otherwise agreed.
 
III.   End user device compatibility
 
ASP is responsible for the best possible support of handsets which are stipulated in the Annex 2 of this Partner Agreement. Furthermore the ASP is also responsible for delivering reasonable application updates for supporting new handsets.
 
IV.   Rights of use
 
o   Only German Vodafone Portals   o   Others: _______________________________
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V.   Brands to be offered for use by VF D2
     ___________________________________________________________________________________________________
 
o Co-branding with the ASP’s brand agreed
 
VI.   Normal price
 
For the avoidance of doubt, VF D2 is free to set its own charges for subscriptions for end users in accordance with the AGB.
 
VII.   Subscription fee revenue share
 
If not otherwise agreed between the parties, the following revenue share shall apply:
 
[INFORMATION OMITTED AND FILED SEPARATELY WITH THE COMMISSION UNDER RULE 24B-2] ASP
[INFORMATION OMITTED AND FILED SEPARATELY WITH THE COMMISSION UNDER RULE 24B-2] VF D2
 
Calculation basis, pre-product deductions, free usages, calculation clauses for packs as well as all accounting and payment provisions are subject to the AGB.
 
VIII.   ASP’s minimum fee in the event of discounts or packs
 
[INFORMATION OMITTED AND FILED SEPARATELY WITH THE COMMISSION UNDER RULE 24B-2] EUR
 
IX.   ASP’s Bank
 
Dortmunder Volksbank eG
Credit to: Charismatix Ltd. & Co. KG
Account number: 633 030 1700
Iban#: DE78 44160014 6330 3017 00
Reference: BIC GENODEMIDOR
Bank Code: 441600 14
 
X.   Term
 
Initial term: [INFORMATION OMITTED AND FILED SEPARATELY WITH THE COMMISSION UNDER RULE 24B-2] beginning August 27th, 2007
 
Option to extend the term in favour of VF D2:
 
o yes    o no
 
Optional term:
 
Automatic unlimited extension of the Term if not terminated: o   yes o   no
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Any time after the initial term, either party may terminate this Partner Agreement upon at least [INFORMATION OMITTED AND FILED SEPARATELY WITH THE COMMISSION UNDER RULE 24B-2] prior written notice to the other party which such notice shall be delivered on or before the 15 th of June or the 15 th of December of any year after the expiration of the initial term.
 
XI.   ASP Contact persons
 
Business Development:
Name:
eMail:
Telephone:
Technical (Mo-Fri 8-18):
Name:
eMail:
Telephone:
Editorial:
Name:
eMail:
Telephone:
Customer Care:
Name:
eMail:
Telephone:
Mobile:
 
XII.   Preferred Aggregator;
 
1. Preferred Aggregator. ASP shall be the main (preferred) content aggregator for the Games and Application Service by VF D2 such that any new third party which desires to distribute Games and Applications under a local agreement must first enter into negotiations for a license agreement with ASP on commercially reasonable terms and conditions in order for such third party’s Games and Applications to be available via VF D2. [INFORMATION OMITTED AND FILED SEPARATELY WITH THE COMMISSION UNDER RULE 24B-2]
 
2. VF D2 guarantees to ASP [INFORMATION OMITTED AND FILED SEPARATELY WITH THE COMMISSION UNDER RULE 24B-2] launch slots per month for erotic games designated as 18+ in addition to any other agreed launch slots between parties. [INFORMATION OMITTED AND FILED SEPARATELY WITH THE COMMISSION UNDER RULE 24B-2]
 
XIII.   Special agreements and miscellaneous
 
1. RIGHT TO AUDIT
 
VF D2 will keep accurate and complete records, in accordance with generally accepted accounting principles, in order to determine the accuracy of VF D2’s reports and payments and retain such records for at least two (2) years following their generation. ASP, or its representative, will have the right, subject to ten (10) days prior written notice to VF D2, to examine, audit, and review all applicable records and accounts once each calendar year during VF D2’s normal business hours for so long as this contract is valid. VF D2 will pay to ASP all amounts discovered to be due ASP as a result of any audit within thirty (30) days of invoice. In addition, in the event any such audit by ASP reveals a discrepancy of five percent (10%) or more in ASP’s favor, VF D2 will pay all reasonable costs of ASP’s audit, and such costs shall be added to ASP’s invoice for amounts due.
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2.   NOTICES
 
Any written notice given under this Agreement shall be to the addresses set forth below. The notice shall be deemed duly given, if delivered by hand, on the same business day it was delivered, or on the next business day if delivered on a non-business day. The notice shall be deemed duly given, if delivered by facsimile, upon receipt of confirmation from an employee of the receiving party. The notice shall be deemed duly given, if sent by prepaid overnight, registered or certified mail, on the day of receipt. The failure to send a notice copy shall not affect the validity of any notice otherwise properly sent and actually received by a party.
 
Notice to ASP to be provided as follows:
 
 
If by mail
Twistbox Entertainment, Inc.
 
or facsimile:
14242 Ventura Boulevard, Third Floor
Sherman Oaks, California 91423 USA
Attn: International Sales/Distribution
Attn: EVP/General Counsel
Fax: (818) 301-6239
Email: legal@twistbox.com
     
 
With a copy to:
Twistbox Games Ltd & Co KG
Lohbachstr. 12
58239 Schwerte - Germany
Attn: Eugen Barteska
Email: ebarteska@twistbox.com
 
3.   ASSIGNMENT
 
Either party may assign this Partner Agreement, without the consent of the other party, in the event of an assignment by either party: (i) to a successor entity resulting from a merger, combination or consolidation; (ii) to the transferee of all or substantially all of the assets of the assigning party or its parent(s); or (iii) to an entity under common control with, controlled by or in control of the assigning party. In the case of ASP, it shall not assign this Partner Agreement to a competitor of VF D2.
 
4.   INDEMNIFICATION
 
Each party (the “Indemnifying Party”) shall indemnify, defend and hold harmless the other party (including its parents, subsidiaries and affiliated companies), and its directors, officers, employees, successors, licensees, assignees, attorneys and agents (the “Indemnified Party(ies)”) from and against any and all claims, losses, deficiencies, damages liabilities, costs, and expenses (including but not limited to reasonable attorney fees and related costs and expenses) incurred by the Indemnified Party(ies) as a result of any claim, judgment, or adjudication against the Indemnifying Party arising from any breach or alleged breach of any of the Indemnifying Party’s covenants, obligations, representations or warranties under this Partner Agreement; provided that, the Indemnified Party(ies) promptly notify the Indemnifying Party in writing of any such claim and gives the Indemnifying Party the opportunity to defend or settle such claim at the Indemnifying Party’s expense and cooperates with the Indemnifying Party in defending or settling such a claim.
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5.   LIMITED LIABILITY
 
IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY SPECIAL, INCIDENTAL DAMAGES (German explanation: entfernter Mangelfolgeschaden) ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT OR ANY MATTER RELATED HERETO, INCLUDING WITHOUT LIMITATION, LOST BUSINESS OR LOST PROFITS, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. EXCEPT FOR THE PARTIES’ INDEMNIFICATION OBLIGATIONS, IN NO EVENT SHALL TWISTBOX’S LIABILITY ARISING UNDER THIS AGREEMENT EXCEED, IN THE AGGREGATE, THE TOTAL AMOUNT PAID BY VF D2 TO ASP AS OF THE DATE ASP BECOMES LIABLE FOR ANY SUCH DAMAGES HEREUNDER.
 
6.   SURVIVAL
 
All representations, warranties indemnifications and payment obligations contained in this Partner Agreement shall survive the termination and/or expiration of this Partner Agreement
 
7.   VF D2 REPRESENTATIONS AND WARRANTIES
 
7.1   VF D2 represents and warrants as follows: (VF legal: remove paragraph)
 
(a)
it has full authority and ability to enter into and perform its obligations under this Partner Agreement.
 
(b)
it has not and will not undertake any action which might impair the exercise of ASP’s full rights under this Agreement.
 
(c)
VF D2 will, on a continuing basis, use its best efforts to ensure the content is distributed only where receipt and viewing of such content is lawful and within the contemporary community standards.
 
(d)
VF D2 shall not make edits, modifications, changes or otherwise manipulate or rearrange the content without ASP’s prior written consent, which may be withheld in ASP’s sole discretion.
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This Partner Agreement is subject to VF D2’s general terms and conditions for Partner Agreements as set out in the version of such terms and conditions dated 15.03.2005 (Annex 1). Any conflicts between the terms of this Partner Agreement and the terms of VF D2’s general terms and conditions for Partner Agreements, the terms of this Partner Agreement shall govern the rights and obligations of the parties.
 
Düsseldorf, 27.08.2007
   
Schwerte, AUG. 27, 2007
       
       
/s/ Johannes Becher
   
/s/ Ian Aaron

for VF D2
   
for the ASP
       
/s/ Johannes Becher
     

for VF D2
     
 
Annex 1:   General Terms and Conditions for Partner Agreements
Annex 2:   Vodafone D2 Java Games & Applications Local Submission Specifications
 
*WE HAVE REQUESTED CONFIDENTIAL TREATMENT OF CERTAIN PROVISIONS CONTAINED IN THIS EXHIBIT. THE COPY FILED AS AN EXHIBIT OMITS THE INFORMATION SUBJECT TO THE CONFIDENTIALITY REQUEST.*
 
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GENERAL TERMS AND CONDITIONS
FOR PARTNER-CONTRACTS CONCERNING JAVA- APPLICATIONS
 
of
 
Vodafone D2 GmbH, Am Seestern 1, D-40547 Düsseldorf, Germany
(hereinafter “VF D2”)
 
1
Preamble
 
1.1
VF D2 is a company belonging to the Vodafone Group, which does business internationally.

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