Exhibit 10.19
JOINT MARKETING AGREEMENT
THIS JOINT MARKETING AGREEMENT, dated as of January 1, 1997 is between ALLIN COMMUNICATIONS CORPORATION ("Allin"), a Delaware corporation with its principal offices at 300 Greentree Commons, 381 Mansfield Avenue, Pittsburgh, Pennsylvania 15220, and ELECTRONIC DATA SYSTEMS CORPORATION ("EDS"), a Delaware corporation with offices at 5400 Legacy Drive, Plano, Texas 75024.
WHEREAS, EDS is in the business of providing a full range of information technology services, including consulting, systems development, systems integration, systems installation and implementation and systems management ("EDS Services") for a variety of industries; and
WHEREAS, Allin is in the business of providing interactive television, information technology, infrastructure, video entertainment systems, digital imaging systems and other services (the " Allin Services") for a variety of industries, including the travel and leisure industry, sports industry, and commercial and event photography industry; and
WHEREAS, EDS and Allin desire to establish an arrangement whereby each party will cooperate with the other to enhance their respective abilities to market their respective businesses by jointly marketing the Allin Services and EDS Services and promoting transactions all in the manner and on the terms and provisions herein provided.
NOW, THEREFORE, Allin and EDS hereby agree as follows:
1. Intent of Parties. EDS' Global Travel Services Industry Strategic Business
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Unit ("GTSI-Business Unit") and Allin desire to establish an arrangement
whereby each party will cooperate with the other to enhance their respective
abilities to market their respective businesses by jointly marketing the
Allin Media and Information Platform (the "Allin Platform"), which platform
is a client/server environment and resides upon the Windows NT operating
system and utilizes the Microsoft SQL server database engine and Allin's
interactive television and digital imaging applications are designed as
direct extensions of the Microsoft BackOffice suite. In connection with the
joint marketing of Allin Services and EDS Services described above, the
parties intend to promote transactions in which EDS and Allin will work
jointly in evolving new application extensions, and integrating existing
third party applications for the Allin Platform to integrate additional
services for the markets served by the GTSI Business Unit. Allin's suite of
extensions include: ITV, ticketing, imaging, video server, and Internet
access. Future services that EDS and Allin may look to integrate, include,
financial systems, purchasing/payables, marketing systems, reservations,
property management, point of sale, automated check-in/boarding, data
warehousing/on-line analytical processing, and travel agent/consumer product
preview and purchasing.
2. Agreement. During the term of this Agreement, EDS and Allin will have the
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respective rights and obligations set out in this Agreement.
3. Term. The term of this Agreement will commence on the date of this Agreement
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(the "Effective Date"), and will end on the ten year anniversary of the
Effective Date, unless earlier terminated in accordance with the provisions
of this Agreement.
4. Marketing Activities. The GTSI Business Unit intends to market the Allin
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Platform during the term of this Agreement as its preferred technology
platform for interactive television prospects and corporate and consumer
digital photography prospects in the travel services industries and agrees to
propose the Allin Platform to all such prospects for whom the GTSI Business
Unit believes that the Allin Platform is appropriate. In connection with any
sales of the Allin Platform by Allin or in connection with this
Agreement, Allin hereby affords EDS an exclusive right of first offer to
provide the installation services for all such transactions. EDS and Allin
agree to negotiate in good faith relating to the terms and conditions for
such installation services. If EDS notifies Allin in writing that EDS is not
interested in pursuing such opportunity for installation services then Allin
will not be subject to any further restrictions under this Section 4 and will
be free to offer such opportunity to a third-party. In addition, the GTSI
Business Unit will actively promote and educate other EDS strategic business
units, strategic service units, and other divisions with respect to the
functionality and uses of the Allin Platform for interactive television
prospects and corporate and consumer digital photography prospects.
Notwithstanding the foregoing, Allin recognizes that EDS is in the business
of providing information technology services to its customers and the parties
agree and acknowledge that the requirements of certain third-party customers
may necessitate use of a media and information platform other than the Allin
Platform. In such cases, the GTSI Business Unit will notify Allin of the
opportunity with any such third party, subject to confidentiality
restrictions applicable to EDS and Allin, and shall advise Allin of the basis
for the GTSI Business Unit not proposing the Allin Platform for such
interactive television prospect or corporate and consumer digital photography
prospect as the technology Platform for such third party. Except as set forth
in the immediately preceding sentence, EDS will have no duty or obligation
under this Agreement to Allin with respect to such transactions including,
without limitation, any duty or obligation to compensate Allin in connection
with such transactions.
5. Revenue Targets/Incentive Payments. The parties anticipate that, during each
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consecutive 12-month period (each an "Allin Target Period") during the term
of this Agreement commencing with the date hereof, directly as a result of
the marketing relationship established hereunder, Allin will enter into one
or more binding agreements providing for an aggregate of not less than
$80,000,000 in payments to Allin by third parties during the term of such
agreement or agreements (for each Allin Target Period, the "Allin Target").
In addition, EDS and Allin anticipate that during the term of this Agreement
commencing with the date hereof, as a result of marketing efforts by Allin
and/or marketing efforts by Allin and other third parties, Allin will enter
into one or more binding agreements providing for payments to Allin by such
third-party customers in the global travel services industry during the term
of such agreement or agreements and any such revenues will be counted towards
EDS' satisfaction of the applicable Allin Target. In connection with the
activities described above resulting in payments to Allin or its affiliates
by third parties, Allin will pay EDS the following incentive payments
(collectively, the "Incentive Payments"): (i) for those activities resulting
in binding agreements with an aggregate contract value of greater than
$60,000,000 but less than $80,000,000, Allin will pay EDS an amount equal to
1% of the aggregate value of those agreements in excess of $60,000,000, up to
$80,000,000 and (ii) for those activities resulting in binding agreements
with an aggregate contract value of greater than $80,000,000, Allin will pay
to EDS an amount equal to 1.15% of the aggregate value of those agreements in
excess of $80,000,000. The attainment or non-attainment of an Allin Target
and the corresponding value attributed to such agreement will be subject to
the reasonable determination of Allin based upon the nature of each third-
party agreement, the number of units and/or services which are the subject of
such agreement or agreements and reasonable projections based upon Allin's
prior experience with similar projects. The Incentive Payments will be
remitted to EDS within sixty days of Allin's execution of the third party
agreements resulting in the satisfaction of the Incentive Payment thresholds
described above. Subject to the provisions of Section 7 of this Agreement,
Allin will provide to EDS reasonable detail regarding its calculation of
amounts in respect of each Allin Target and copies of the subject third-party
agreements. In addition, Allin agrees to provide EDS and its auditors
reasonable access to the books and records of Allin and its affiliates to
enable them to conduct audits of Allin in connection with Allin's obligations
under this Agreement, including verifying the accuracy of (i) the value Allin
attributes to each third party agreement and (ii) the amount of the Incentive
Payments. Within ninety (90) days of the Effective Date and annually
thereafter, the parties will attempt, in good faith, to formulate a marketing
and sales strategy for the EDS Services and Allin Services.
6. Marketing Support.
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| Agreement#: |
AG-8540 |
| Pages: |
8 pages |
| Format: |
MS Word Compatible |
| Price: |
$35.00 |
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