7/9/2015

ECommerceAgreementGSICommerceSolutionsInc.andPalmInc.SampleContractsandBusinessForms

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GSICOMMERCESOLUTIONS,INC.

ECOMMERCEAGREEMENT
BETWEEN
GSICOMMERCESOLUTIONS,INC.
AND
PALM,INC.
<PAGE>
ECOMMERCEAGREEMENT
ThisECommerceAgreement,datedasofJune14,2002,ismadeand
enteredintobyandbetweenGSICommerceSolutions,Inc.,aPennsylvania
corporation("GSI"),andPalm,Inc.,aDelawarecorporation(the"Company").
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Recitals
WHEREAS,GSIisinthebusinessof,amongotherthings,developingand
operatingecommercebusinessesforretailersandmanufacturersandproviding
forthosecompaniesGSI'sproprietarytechnology,WebSitedesignand
developmentcapabilities,orderprocessingcapabilities,customerservice
capabilities,fulfillmentcapabilitiesandcentralizedinventorymanagementto
enablethosecompaniestoofferecommercetotheircustomers;
WHEREAS,theCompanyisinthebusinessofdeveloping,manufacturing
andsellingPalmProducts(asdefinedbelow)andistheowneroftheCompany
Site(asdefinedbelow);
WHEREAS,theCompanydesirestohaveGSIcreatetheCompanyStores(as
definedbelow)thatwillofferMerchandise(asdefinedbelow)forsaleandthat
canbeaccesseddirectlythroughtheDesignatedURLs(asdefinedbelow)or
throughfixedlinksthatwillappearonpagesoftheCompanySite,includingthe
HomePage(asdefinedbelow)oftheCompanySite;
WHEREAS,theCompanyhasmadeasubstantialinvestmenttoestablishits
tradenamesamongconsumersanddistributorssoastocreatearetailimage
connotingaspecificmannerinwhichmerchandiseispresentedandsoldbythe
Company;
WHEREAS,boththeCompanyandGSIrecognizethattheoverallsuccessof
theCompanyStoresdependsonconsumersperceivingtheCompanyStorestobean
extensionoftheCompanySite;
WHEREAS,theCompanyandGSIdesiretohaveGSIprovidetotheCompany
acompletesolutionbywhichtheCompanyand/oritsAffiliateswillsell
MerchandisethroughtheInternetduringtheTerm(asdefinedbelow)ofthis
Agreement;and
WHEREAS,theCompanydesirestoobtainecommercecapabilityfromGSI
inamannerthatallowstheCompanytoprotectitsTrademarksandthatwill
complementtheCompanySite.
NOW,THEREFORE,inrelianceupontheaboverecitals(whicharemadea
partoftheAgreementbelow)andinconsiderationofthemutualpromisesand
covenantscontainedinthisAgreement,theCompanyandGSI(eacha"Party"and
collectively,the"Parties"),intendingtobelegallybound,agreeasfollows:
Section1.Definitions.
WheneverusedinthisAgreement,thefollowingcapitalizedtermsshallhavethe
followingspecifiedmeanings:
1.1"Affiliate"means,astoanyPerson,anyotherPersonthat,
directlyorindirectly,iscontrolledby,isundercommoncontrolwithor
controlssuchPerson,butonlyaslongassuchcontrolexists.Forthispurpose,
controlmeansownershiporvotingrightsoveratleast50%of
1
<PAGE>
theoutstandingvotingorequitysecuritiesofthePersoninquestionorthe
powertodirectorcausethedirectionofmanagementorpoliciesofsuchPerson,
whetherthroughvotingsecurities,bycontractorotherwise.
1.2"AggregateInformation"meansanyinformationordataderivedfrom
CustomerInformationwhichisnotspecifictoaPerson,doesnotrefertoor
identifyanyspecificPerson,andcannotbeused,aloneorinconjunctionwith
anyotherinformation,toidentifyanyspecificPerson.
1.3"CompanyContent"meansthefollowingcontentorinformationowned
orcontrolled(e.g.,bylicenseorotherwise)bytheCompanyoritsAffiliates
andfurnishedbytheCompanyoritsAffiliatestoGSIinaccordancewiththe
termsofthisAgreement:text,graphics,photographs,video,audioand/orother
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dataorinformationandemailaddressesfurnishedbytheCompanyforusein
connectionwiththeCompanyStoresandSpecializedStores.
1.4"CompanySite"meansthatWebSite,theprimaryHomePageforwhich
isidentifiedbytheURL,www.palm.com(andanysuccessororreplacementWeb
Site).
1.5"CompanyStores"meanstheWebSites,asoperatedbyGSIpursuant
tothisAgreement,theprimaryHomePagesforwhichareidentifiedbythe
DesignatedURLs(andanysuccessororreplacementWebSites).
1.6"CompanyStoresFunctionality"means,collectively:(a)
functionalityandfeaturesavailableontheCompanyStoresand/orSpecialized
StoresthatGSImaymakeavailablefromtimetotime,and(b)anyfuture
equivalents,improvementsandenhancementsofanyoftheforegoing.
1.7"CompanyStoresLinks"meanslinkstotheCompanyStoreswhichare
tobecreatedontheCompanySitepursuanttothisAgreement,andwhich,ineach
case,shallbeasdescribedinSchedule"A".
1.8"ConfidentialInformation"meansallnonpublicinformationrelating
toaPartyoritsAffiliatesthatisdesignatedasconfidentialorthat,given
thenatureoftheinformationorthecircumstancessurroundingitsdisclosure,
reasonablyshouldbeconsideredasconfidential.ConfidentialInformation
includes,withoutlimitation,(a)allnonpublicinformationrelatingtoa
Party'soritsAffiliates'technology,customers,businessplans,promotional
andmarketingactivities,financesandotherbusinessaffairs,and(b)allthird
partyinformationthataPartyoritsAffiliatesisobligatedtokeep
confidential.ConfidentialInformationmaybecontainedintangiblematerials,
suchasdrawings,data,specifications,reportsandcomputerprograms,ormaybe
inthenatureofunwrittenknowledge.NeitherPartyshallhaveanyobligationto
maintaintheconfidentialityofConfidentialInformationthat(i)hasbecome
publiclyavailablewithoutbreachofthisAgreement,(ii)canbeshownby
documentationtohavebeenknowntothereceivingPartyatthetimeofits
receiptfromthedisclosingPartyoritsAffiliates,(iii)isreceivedfroma
thirdpartywhodidnotacquireordisclosesuchinformationbyawrongfulor
tortiousact,or(iv)canbeshownbydocumentationtohavebeenindependently
developedbythereceivingPartywithoutreferencetoanyConfidential
Information.
1.9"Customer"meansaPersonwhoaccessesanyoftheCompanyStoresor
SpecializedStoresinanymanner,whetherornotapurchaseismade.
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<PAGE>
1.10"CustomerInformation"meansthename,mailingaddress,telephone
number,emailaddress,OrderandOrderprocessinginformationandanyother
identifyinginformationprovidedbyorobtainedfromCustomersthroughthe
CompanyStoresortheSpecializedStores;provided,however,Customer
Informationdoesnotinclude(i)anyinformationthateitherGSIortheCompany
ownsortowhichGSIortheCompanyhastherightsandwhichisobtainedfrom
CustomersotherthanthroughtransactionscontemplatedunderthisAgreement,
(ii)AggregateInformation,or(iii)FinancialInformation.
1.11"DesignatedURLs"meanswww.store.palm.comoranysuccessoror
replacementURLandwww.store.palm.com/outletoranysuccessororreplacement
URL.
1.12"ExtendedWarranty"meansawarrantyforPalmProductsofferedfor
salethroughtheCompanyStoresorSpecializedStoreswhichisadministered
solelybytheCompanyorathirdpartyonitsbehalfandtheobligationsunder
whichareperformedsolelybytheCompanyorathirdpartyonitsbehalf.
1.13"FinancialInformation"meansallinformationrelatingtothe
financialperformanceand/oroperationsoftheCompanyStoresandSpecialized
StoreswhichisnotspecifictoaPerson,doesnotrefertooridentifyany
specificPerson,andcannotbeused,aloneorinconjunctionwithother
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information,toidentifyanyspecificPerson.
1.14"GSIContent"meansanyandallcontentorinformationownedor
controlled(e.g.,bylicenseorotherwise)byGSIoritsAffiliates,including
text,graphics,photographs,videoandaudio,andfurnishedbyGSIorAffiliates
inconnectionwiththeCompanyStoresortheSpecializedStoresorotherwisein
connectionwiththeperformanceofitsobligationsunderthisAgreement.
1.15"HomePage"means,withrespecttoaWebSite,theWebpage
designatedbytheoperatoroftheWebSiteastheinitialandprimaryenduser
interfacefortheWebSite.
1.16"IntellectualPropertyRights"meansanyandallnowknownor
hereafterknowntangibleandintangible(a)rightsassociatedwithworksof
authorshipthroughouttheuniverse,includingbutnotlimitedtocopyrights,
moralrights,andmaskworks,(b)trademark,tradedressandtradenamerights
andsimilarrights,(c)tradesecretrights,(d)patents,designs,algorithms
andotherindustrialpropertyrights,(e)allotherintellectualandindustrial
propertyrightsofeverykindandnaturethroughouttheuniverseandhowever
designated(includingdomainnames,logos,"rental"rightsandrightsto
remuneration),whetherarisingbyoperationoflaw,contract,license,or
otherwise,and(f)allregistrations,initialapplications,renewals,
extensions,continuations,divisionsorreissueshereofnoworhereafterin
force(includinganyrightsinanyoftheforegoing).
1.17"Internet"meansthesystemofcomputernetworksinterconnected
withrouters,worldwideinscope,thatfacilitatesdatacommunicationservices
suchasremotelogin,filetransfer,electronicmail,andtheWeb,andany
successortosuchsystem.
1.18"LaunchDate"means,withrespecttoeachoftheCompanyStores
andSpecializedStores,thedateonwhichsuchCompanyStoreorSpecialized
Store,asoperatedbyGSIhereunder,isfirstmadeavailabletothepublicon
theWeb.
1.19"LookandFeel"meanstheappearance,coloring,graphics,fonts,
logosandotherlookandfeelcharacteristicsofaWebSitewhichareuniqueto
theWebSiteandare
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<PAGE>
consistentfrompagetopageandwhichindicateacommonidentityofthevarious
pagesandidentifysuchpagesasformingapartofasingleWebSite.
1.20"Merchandise"meansPalmProducts,NonPalmProducts,Extended
WarrantiesandServiceContractswhichareofferedforsalethroughtheCompany
Storesand/orSpecializedStoresfromtimetotime.
1.21"MerchandiseCostofSales"means,withrespectto(i)Palm
Products,theamountpayablebyGSItotheCompanyforsuchPalmProducts
pursuanttoSection3.6(i)hereof,and(ii)NonPalmProducts,GSI'sactualout
ofpocketcostofsuchproducts,includingapplicabletransportationfeesto
GSI'swarehousebutexcludinganyandallotherfixedorvariablecosts.
1.22"MerchandiseRevenue"means[*]
1.23"NonPalmProducts"meansproductswhichareofferedforsale
throughtheCompanyStoresand/orSpecializedStores,otherthanPalmProducts.
1.24"OnLineGiftCertificates"meansgiftcertificates,
preprogrammedcards,andotherformsofcreditinfixeddenominations
redeemableonlythroughtheCompanyStoresorSpecializedStores.
1.25"OpenBoxReturn"meansaPalmProductreturnedbyaCustomerand
notsalableas"new"butsalableifproperlymarkedas"OpenBox",asdetermined
byGSIafterusinggoodfaitheffortstocomplywiththeTestingSpecifications
(asdefinedbelow).
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1.26"Order"meansanorderforMerchandisemadebyaCustomer.
1.27"PalmProducts"meansproductswhicharemanufacturedbyoron
behalfoftheCompanyand/oritsAffiliatesandwhichuseorbeartheCompany's
oritsAffiliates'Trademarks,includingRefurbishedProductsandSoftware
Products.
1.28"Person"means,whetherornotcapitalized,anyindividual,
corporation(includinganynonprofitcorporation),generalorlimited
partnership,limitedliabilitycompany,jointventure,estate,trust,
association,organization,laborunion,orotherentityorgovernmentalbody.
1.29"RefurbishedProduct"meansaPalmProductnotsalableas"new"
butreconditionedtobesalableifproperlymarkedas"used",asdeterminedby
theCompany.
1.30"SecondaryURLs"meansuniformresourcelocatorsotherthanthe
DesignatedURLsthatincludeoneormoreofthetradenames,trademarks,or
servicemarksusedbytheCompanyoritsAffiliates,oranyvariantofsuch
tradenames,trademarks,orservicemarksorotherreferencestotheCompanyor
theCompany'sbusiness.
1.31"ServiceContract"meansaservicecontractfortechnicalsupport
relatedtoPalmProductsofferedforsalethroughtheCompanyStoresor
SpecializedStoreswhichisadministeredsolelybytheCompanyorathirdparty
onitsbehalf,andtheobligationsunderwhichareperformedsolelybythe
Companyorathirdpartyonitsbehalf.
1.32"ServicesRevenue"means[*]
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<PAGE>
1.33"ShippingRevenue"means[*]
1.34"SoftwareProduct"meansacompactdisc,multimediacard,secure
digitalexpansioncardcontainingsoftwaretobeusedinconnectionwithother
PalmProducts.
1.35"SpecializedStores"meansWebSitesfocusedonparticular
customergroupssuchastheEducationStore,theEmployeeStore,theCanadian
Store(eachasdefinedbelow)andothermutuallyagreeduponWebSites.
1.36"Technology"meansanydesign,specification,content(which
includesproductfiles,catalogs,imagesandeditorialcontent),data,database,
software,code,template,userinterface,technique,algorithm,method,process,
device,procedure,functionalityorothertechnologyoritem.
1.37"Term"isdefinedinSection13.1ofthisAgreement.
1.38"Trademark"meansanytrademark,servicemark,tradename,URL,
domainname,tradedress,proprietarylogoorinsigniaorothersourceor
businessidentifier.
1.39"URL"meanstheuniformresourcelocatorofaWebSite.
1.40"Web"meanstheInternetclientserverhypertextdistributed
informationretrievalsystemknownastheWorldWideWeb.
1.41"WebSite"meansanypointofpresencemaintainedontheInternet
oronanyotherpublicdatanetwork.WithrespecttoanyWebSitemaintainedon
theWorldWideWeboranysuccessorpublicdatanetwork,suchWebSiteincludes
allHTMLpages(orsimilarunitofinformationpresentedinanyrelevantdata
protocol)thateither(a)areidentifiedbythesamesecondleveldomain(such
ashttp://www.palm.com)orbythesameequivalentlevelidentifierinany
relevantaddressscheme,or(b)containbranding,graphics,navigationorother
characteristicssuchthatauserreasonablywouldconcludethatthepagesare
partofanintegratedinformationorserviceoffering.
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Section2.CreationandOperationoftheCompanyStores.
2.1DesignandDevelopment;Launch.GSIwilldesignanddevelopthe
CompanyStoresinaccordancewiththisAgreement.TheCompanyStoreswillbe
generallycomparableinquality,easeofuseandperformanceasthencurrent
industrystandardsforecommerceWebSitesthatsellproductsandservices
similartothosethenofferedthroughtheCompanyStores.TheCompanyStores
willcontainataminimumthefunctionalityandfeaturessetforthonSchedule
"B"attachedtothisAgreementandsuchotherfunctionalityandfeaturesasmay
beagreeduponbytheParties.ThePartieswillworktogetheringoodfaithand
usecommerciallyreasonableeffortstocausetheLaunchDatesforeachCompany
StoretobeassoonaspracticableaftertheEffectiveDate.
2.2DesignTemplates;LookandFeel;ApprovalRights.TheCompany
Storeswillbecomprisedofaseriesoftemplates("DesignTemplates")developed
byGSIandPalmthatwilldefinetheformatandlayoutofapageontheCompany
Storesandestablishtheplacementandsizeofcontenttypeblocks(e.g.text,
graphics,promotions,advertising,navigationbarandimages).TheLookandFeel
characteristicsoftheCompanyStoreswillbe
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<PAGE>
consistentwiththatoftheCompanySite,orasotherwiseagreeduponbythe
Parties.TheCompanywillprovideGSIwiththeCompanyContentnecessaryforthe
operationoftheCompanyStoresinsuchformatasmaybeagreeduponbythe
Parties.TheCompanyshallhavetherighttoapprovetheoverallDesign
TemplatesandLookandFeeloftheCompanyStorespriortotheirrespective
LaunchDates,withsuchapprovalnottobeunreasonablywithheldordelayed.
AftertheLaunchDateforeachCompanyStore,nomaterialchangestotheDesign
TemplatesorLookandFeelofsuchCompanyStorewillbemadewithoutthe
approvaloftheParties.
2.3Hosting,MaintenanceandOperationsofCompanyStores.GSIwill
host,maintainandoperatetheCompanyStoresinaccordancewiththisAgreement.
TheequipmentandsoftwareusedbyGSItohostandoperatetheCompanyStores
andthesecurityprovidedbyGSIwithrespecttotheCompanyStores,willbeat
leastgenerallycomparabletothencurrentprevailingindustrystandardsfor
ecommerceWebSitesthatsellproductsandservicessimilartothosethen
offeredthroughtheCompanyStores.GSIagreesthatduringtheTermitwill
complywith[*].TheCompanyStoreswillbeoperatedattheDesignatedURLsand
atsuchotherURLsasmaybeagreeduponbytheParties.TheCompanyagreesthat
GSIwillbeenabled,throughouttheentireTerm,toprovidealldomainname
serverservicesfortheDesignatedURLsandallSecondaryURLsfortheCompany
Stores.Withoutlimitingthegeneralityoftheprecedingsentence,throughout
theentireTerm,theCompanywillensurethat(i)theDesignatedURLsandall
SecondaryURLsareregisteredwithNetworkSolutionsInc.(oranotherreputable
registrarapprovedbyGSI)insuchawaythattheDesignatedURLsandall
SecondaryURLspointtodomainnameserversdesignatedandcontrolledbyGSI,
(ii)itcomplieswiththerequirementsof,andprovidesGSIwiththeinformation
setforthon,Schedule"D"attachedtothisAgreementwithrespecttosecurity
forandregistrationofallURLsfortheCompanyStores,and(iii)GSIis
appointedastechnicalcontactwithNetworkSolutions,Inc.(orsuchother
approvedregistrar)fortheDesignatedURLsandallSecondaryURLs.Ifthe
CompanynotifiesGSIthatitreasonablybelievesthatGSI'suseoftheCompany's
TrademarksontheCompanyStoresorSpecializedStoresisnotconsistentwith
thequalityorgoodwillofsuchTrademarks,thenGSIwillusecommercially
reasonableeffortstoaltersuchusesothatitisconsistentwithsuchquality
orgoodwill.
2.4OrderProcessingandFulfillment.GSIwillberesponsibleforall
aspectsoforderprocessingandfulfillmentfortheCompanyStores,including
thosefunctionssetforthonSchedule"E"attachedtothisAgreement.Theorder
processingandfulfillmentservicesprovidedbyGSIwithrespecttotheCompany
Storeswillbegenerallycomparableinqualityasthencurrentprevailing
industrystandardsforecommerceWebSitesthatsellproductsandservices
similartothosethenofferedthroughtheCompanyStores.TheOrderreceipt,
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processingandfulfillmentservicesprovidedbyGSIwithrespecttotheCompany
Siteswillataminimumcomplywith[*].GSIwillonlyacceptOrdersfor
shipmentstoaddressesintheUnitedStatesandAPO/FPOaddressesandto
addressesinsuchotherlocationsasaremutuallyagreeduponbytheParties;
provided,however,thatGSIshallalsoacceptOrdersforshipmentstoaddresses
in[*]beginning[*]andcontinuingthroughouttheTerm.
2.5Returns.
(a)ExceptwithrespecttoSoftwareProductsandRefurbished
Products,GSIwillacceptthereturnofMerchandisesoldthroughtheCompany
Storesonlyif(i)areturnmerchandiseauthorizationnumberisissuedtothe
Customer,and(ii)(A)suchMerchandiseisdefectiveorsuchMerchandiseis
damagedduringshipmentasdeterminedbyGSIafterusinggoodfaitheffortsto
complywiththetestingspecificationssetforthinSchedule"F"(the"Testing
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Specifications"),or(B)authorizationtoreturnsuchMerchandiseisrequested
within[*]daysaftertheMerchandiseisreceivedbytheCustomer(orsuchother
mutuallyagreedupontime)andsuchMerchandiseisinaconditionsuitablefor
resaleasnewgoodsorasOpenBoxReturns.
(b)GSIwillacceptthereturnofaSoftwareProductsold
throughtheCompanyStoresonlyif(i)areturnmerchandiseauthorizationnumber
isissuedtotheCustomer,(ii)suchSoftwareProductisdefectiveordamaged
duringshipment(i.e.doesnotoperateproperlywiththedevice),and(iii)
authorizationtoreturnsuchSoftwareProductisrequestedwithin[*]daysafter
theSoftwareProductisreceivedbytheCustomer(orsuchothermutuallyagreed
upontime).GSIshallshipareplacementSoftwareProducttosuchCustomer.GSI
shallnotissuearefundinconnectionwiththereturnofanySoftwareProduct.
(c)GSIwillacceptthereturnofaRefurbishedProductsold
throughtheCompanyStoresonlyif(i)areturnmerchandiseauthorizationnumber
isissuedtotheCustomer,(ii)suchRefurbishedProductisdefectiveordamaged
duringshipmentasdeterminedbyGSIafterusinggoodfaitheffortstocomply
withtheTestingSpecifications,and(iii)authorizationtoreturnsuch
RefurbishedProductisrequestedwithin[*]daysaftertheRefurbishedProduct
isreceivedbytheCustomer(orsuchothermutuallyagreedupontime).GSIshall
refundtotheCustomerreturningaRefurbishedProductanamountequaltothe
amountpaidbysuchCustomerfortheRefurbishedProduct.
NotwithstandinganyotherprovisionofthisAgreement,PalmwillacceptfromGSI
thereturnofdefectiveordamagedPalmProductsasidentifiedthroughthe
TestingSpecificationswhichGSIacceptsfromCustomersinaccordancewiththis
Section2.5.
2.6CustomerService.GSIwillberesponsibleforprovidingcustomer
servicetousersoftheCompanyStores.Thecustomerserviceprovidedtousers
oftheCompanyStoreswillbeprovidedinthenameoftheapplicableCompany
Store(unlessotherwiserequiredbylaworprivacypolicyornottobe
misleading)andwillcomplywith[*].GSIwillprovidecustomerserviceina
courteousandprofessionalmanner.
2.7WebSiteTransitionPlan.Withinareasonableperiodoftimeprior
totheLaunchDateofeachCompanyStore,thePartiesshallmutuallyagreeupon
atransitionplantoaddress(i)thetransferofaccountinformationfromusers
oftheCompany'spriorecommerceWebSitetoGSIforuseinconnectionwiththe
CompanyStores,(ii)proceduresforthereturnofproductspurchasedbyusers
priortotheLaunchDateofeachCompanyStorewhodesiretoreturnsuch
productsaftersuchLaunchDate,(iii)theredemptionofgiftcards,gift
certificates,couponanddiscountcodesissuedpriortotheLaunchDateofeach
CompanyStore,(iv)customerservicerequestsreceivedaftertheLaunchDateof
eachCompanyStorewhichrelatetoeventsoccurringpriortosuchLaunchDate,
and(v)suchothertransitionmattersasmaybenecessarytotransitionthe
operationofthepriorCompanyecommercebusinesstoGSIascontemplated
hereunder.
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2.8SeamlessOperations.ThePartiesagreetoworkingoodfaithand
usecommerciallyreasonableeffortstoperformtheirrespectiveobligations
hereunderasseamlesslyaspracticableundertheCompany'sbrand.Asaresultof
PersonsperceivingtheCompanyStoresasanextensionoftheCompany,the
CompanyagreestoprovideGSIwithreasonablepriornoticeofintendedactions
bytheCompanywhichmayhaveamaterialimpactoneitheroftheCompanyStores,
theabilityofGSItoperformitsobligationshereunder,and/orthevolumeof
CustomersorcallersaccessingtheCompanyStoresorcustomerservicetelephone
support
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fortheCompanyStores.
2.9Reporting.TheCompanywillhaveaccesstoasetofstandard
reportsthatGSIgenerallymakesavailabletoitsotherecommercepartners.
ReportswillbeexportableinformatsmutuallyagreeduponbytheParties.The
reportswillincludeaccesstodataconcerningsales(includingdailyandweekly
dataforsalesbydollar,salesbyunitandreturns),usertraffic,performance
oftheCompanyStores(including[*]reportssettingforth[*]),andother
relevantinformationfortheCompanyStores.Companytooutlinespecificreports
anddatarequiredforfinancialstatementreporting.
Section3.Merchandising;CostofMerchandise
3.1Assortment.SubjecttothetermsofthisAgreement,GSIwilloffer,
merchandiseandsellontheCompanyStores(i)[*]and(ii)[*].GSIandthe
Companywillworktogethertodevelopmerchandisingprogramsandtodetermine
attractivebundlesandpromotionsfortheCompanyStores.ForallPalmProducts
thatthePartiesagreetoofferforsalethroughtheCompanyStores,theCompany
willselltoGSIsuchquantities,stylesandsizesofsuchproductsasmaybe
reasonablyrequestedbyGSI.WithrespecttosuchPalmProducts,theCompany
willprovidetoGSI,withinareasonabletimepriortotheprojectedinclusion
ofsuchPalmProductsontheCompanyStores,areport,inreasonabledetail,
whichincludes(i)UPC/Model#sforeachproduct;(ii)suggestedretailprices
foreachproductthattheCompanygenerallyprovidestootherretailersofsuch
products("SRP");(iii)availablecolorsandstyles;(iv)anysalesorinventory
restrictionsorlimitations;(v)packagingdimensionsandweightbyproduct;and
(vi)suchotherreasonablyrequestedinformation.
3.2ConceptShops.TheCompanyStorelocatedattheURL
www.store.palm.comwillincludeconceptshopswhichoffercertainPalmProducts
andNonPalmProductsforsaletoindividualswhoareaffiliatedwithindustries
designatedbytheCompany(the"ConceptShops").GSIwillusecommercially
reasonableeffortstoincludeone(1)"Healthcare"ConceptShopinsuchCompany
StorebytheLaunchDateforsuchCompanyStore.Thereafter,thePartieswill
mutuallyagreeuponadditionalConceptShops.TheConceptShopswillbe
accessibletoindividualswhoprovidetheirname,title,emailaddressand
phonenumberandthenameoftheindustrywithwhichtheyareaffiliated.The
productsofferedforsalethroughtheConceptShopswillincludeanassortment
ofPalmProductsandNonPalmProductsdesignedtoappealtoindividuals
affiliatedwiththeindustriesdesignatedbytheCompany.
3.3Restrictions.Notwithstandinganythingcontainedhereintothe
contrary,GSIwillnotberequiredtooffer,sell,advertiseorpromoteon
eitheroftheCompanyStores,ordisplayanylinkstoWebSitesthatoffer,
sell,advertiseorpromote,eitherdirectlyorindirectly,anyofthefollowing:
(i)anyMerchandisewhichGSIknowsorisinformedbytheCompanyis
counterfeit,ortheofferorsaleofwhichGSIknowsorisinformedbythe
CompanyinfringesthevalidIntellectualPropertyRightsofthirdparties;(ii)
anyproductorservicethatisunethical,immoral,obsceneoroffensivetogood
taste;or(iii)anyproductthatGSIisprohibitedfromofferingforsaleonthe
CompanyStoresbyanythirdpartymanufacturer,licensororlicenseeofsuch
product.
3.4GiftCertificates.GSIwillhavetherighttosellOnLineGift
CertificatesthroughtheCompanyStoresandSpecializedStores.GSIwillpayto
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theCompanyarevenuesharepursuanttoSection7upontheredemptionofOnLine
GiftCertificatesandnotupontheinitialsaleofsuchOnLineGift
Certificates.
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3.5ProductDescriptions.TheCompanywillprovideGSIwithproduct
descriptioninformation(includingUPCcodes)foreachPalmProductinformats
reasonablyrequestedbyGSIfromtimetotime.TheCompanywillprovideGSIwith
suchadditionalproductdescriptioninformationconcerningPalmProductsasmay
bereasonablyrequestedbyGSI,includinginformationrequiredtocomplywith
applicablelegaldisclosurerequirements.GSIwilldeveloporobtainother
productdescriptioninformationforNonPalmProducts.Allproductdescriptions
foruseontheCompanyStoresmustbereviewedbyPalmpriortotheLaunchDates
fortheCompanyStores.
3.6PurchaseandSaleofPalmProducts.ForallPalmProductspurchased
byGSIhereunder(i)GSIwillpaytotheCompany[*]foreachPalmProduct
purchasedbyGSI,lessreturnsfordamagedordefectiveproductsandcreditsfor
shortage;(ii)theCompanywilldeliversuchPalmProductstoGSI,atthe
Company'sexpense,F.O.B.theCompany'swarehouse,toafacilityorfacilities
designatedbyGSIandbaseduponamutuallyagreedupondeliveryschedule;(iii)
theCompanywillusegoodfaitheffortstodeliversuchPalmProductstoGSIin
amannerwhichminimizesGSI'sreceivingcostbaseduponspecificationsprovided
byGSI;(iv)GSIwillconfirmreceiptofproductwithin[*]businessdaysof
arrivalatGSIfacilityandwillhave[*]businessdaystomakeaclaimof
shortageordamagedshipment;(v)GSIwillhavetherighttoreturntothe
Company(atGSI'sfreightcost)[*]ofthePalmProductspurchasedbyGSIfrom
theCompanyduringtheTermforarefundequaltotheaggregateamountpaidby
GSIforsuchreturnedPalmProducts;provided,however,thatGSImustusegood
faitheffortstosellthroughitsremaininginventoryofPalmProductspriorto
returningtoCompany.TheCompanywillassistGSIasreasonablyrequestedin
filinganynecessaryclaimswithcommoncarriers.Termsofsaleare[*]days
frominvoice.CompanywillinvoiceGSIonlastdayofGSI'sfiscalmonthforthe
aggregatesalepriceofPalmProductsshippedtoGSIduringsuchmonth.Payment
isnotconditioneduponthePalmProductsmeetinganyacceptancetesting
proceduresGSImayhave.Ifthereisanydisputeastoapartofashipment,GSI
willpayfortheundisputedpartofthatshipment.GSImaynotdeductanydebit
memosfrompayment(s)madetotheCompanyonoutstandinginvoice(s),without
priorwrittenapprovalfromtheCompany.Paymentsshouldbesubmittedtothe
appropriateaddressasstatedontheinvoice.
Section4.AdditionalWebStores.
4.1EducationStore.GSIwilldesignanddevelopaWebSitewhichwill
offercertainPalmProductsandNonPalmProductsforsaletoeducational
institutionsasdefinedbyPalminconductingitseducationbusinessandtothe
facultyandstudentsofsuchinstitutions(the"EducationStore").GSIwilluse
commerciallyreasonableeffortstocausetheLaunchDatefortheEducationStore
tocoincidewiththelateroftheLaunchDatesfortheCompanyStores.Following
theLaunchDatefortheEducationStore,GSIwill(i)host,maintainandoperate
theEducationStore,and(ii)processordersandprovidefulfillmentand
customerservicesfortheEducationStore.TheEducationStorewillbe
accessibletorepresentativesofeducationalinstitutionsandtothefacultyand
studentsofsuchinstitutionswhoprovidetheirname,title,emailaddressand
phonenumberandthenameoftheeducationalinstitutionwithwhichtheyare
associated.TheproductsofferedforsalethroughtheEducationStorewill
includeanassortmentofPalmProductsandNonPalmProductsdesignedtoappeal
tovarioussectorsoftheeducationmarket.GSIwillacceptpurchaseorders,
creditcards,bankchecksandmoneyordersforpurchasesthroughtheEducation
Store.
4.2EmployeeStore.GSIwilldesignanddevelopaWebSitewhichwill
offercertainPalmProductsforsaletoemployeesoftheCompany(the"Employee
Store").GSIwillusecommerciallyreasonableeffortstocausetheLaunchDate
fortheEmployeeStoretobeas

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soonaspracticableaftertheEffectiveDate.FollowingtheLaunchDateforthe
EmployeeStore,GSIwill(i)host,maintainandoperatetheEmployeeStore,and
(ii)processordersandprovidefulfillmentandcustomerservicesforthe
EmployeeStore.TheEmployeeStorewillbeaccessibletoemployeesofthe
CompanythroughtheuniqueInternetprotocoladdressoftheCompany'sintranet
WebSite.TheCompanywillprovideGSIwithauniqueemployeeidentifiertobe
usedbyeachemployeeoftheCompany.AllPalmProductsofferedforsalethrough
theCompanyStoreswillbeofferedforsalethroughtheEmployeeStore,other
thanwarrantyplans,RefurbishedProducts,partsandbundles.Eachemployeeof
theCompany(asdeterminedbysuchemployee'suniqueemployeeidentifier)will
notbepermittedtopurchasemorethanten(10)ofeachhandheldcomputing
deviceofferedforsalethroughtheEmployeeStoreduringanycalendaryear.GSI
willacceptcreditcardsandbankchecksforpurchasesthroughtheEmployee
Store.
4.3CanadianStore.GSIwilldesignanddevelopaWebSitewhichwill
offercertainPalmProductsandNonPalmProductsforsaletoresidentsof
Canada(the"CanadianStore").GSIwillusecommerciallyreasonableeffortsto
causetheLaunchDatefortheCanadianStoretooccurbyMarch31,2003.
FollowingtheLaunchDatefortheCanadianStore,GSIwill(i)host,maintain
andoperatetheCanadianStore,and(ii)processordersandprovidefulfillment
andcustomerservicesfortheCanadianStore.Theproductstobeofferedfor
salethroughtheCanadianStorewillbemutuallyagreeduponbytheParties.The
CanadianStorewillbeavailableinEnglishandFrench,withusersselectingthe
languageinwhichitisdisplayed.CustomerservicefortheCanadianStorewill
beavailableinEnglishandFrench.Thesellingpricesforproductsandservices
offeredforsalethroughtheCanadianStorewillbeindisplayedinCanadian
currencyandGSIwillacceptsuchcurrencyaspaymentforsuchproductsand
services.TheexchangerateusedfortheCanadianStorewillbeupdatedona
dailybasistoreflectthethencurrentexchangerateforUnitedStatesand
CanadiancurrencyassetforthintheWallStreetJournal.
Section5.PromotionandAdvertising.
5.1CompanyActivities.AtalltimesduringtheTerm,theCompanyshall
operateandmaintaintheCompanySite.TheCompanywillcreateand,following
theLaunchDatefortheCompanyStores,maintainontheCompanySiteduringthe
TermtheCompanyStoresLinksinaccordancewiththerequirementssetforthon
Schedule"A".FollowingtheLaunchDateforeachCompanyStoreandcontinuing
duringtheTerm,theCompanywill(i)promotetheCompanyStores,theDesignated
URLsandMerchandiseinitspromotionalemailcampaigns,and(ii)provide
marketingoftheCompanyStores,theDesignatedURLsandMerchandiseintheform
ofacatalogorinsertplacedinsidetheboxesofselectPalmProducts.
5.2GSIActivitiesandObligations.UponrequestbytheCompanyfrom
timetotime,GSIwillprovidedatafeedstothirdpartieswithwhichthe
Companyhasenteredintopromotionaland/ormarketingagreements.Suchdata
feedsshallincludeinformationconcerningMerchandisethenavailableforsale
throughtheCompanyStores.Suchinformationmayincludeproductnames,product
descriptions,stockkeepingunitnumbers("SKU"),productprices,shipping
costs,availabilityand/orlinkstotheCompanyStores.
Section6.Implementation.
6.1AccountManagers.EachPartywillassignanaccountmanager(which
managerwillbesubjecttochangefromtimetotimebytheassigningPartyupon
writtennoticetotheotherParty)tooverseetheperformanceofsuchParty's
obligationsunderthisAgreement
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andtofacilitatecoordinationoftheParties'performanceoftheirrespective
obligations.Theaccountmanagerswillmeetwithsuchfrequencyasmaybe
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mutuallyagreeduponduringtheTermtoreviewtheimplementationofthis
Agreementandtoexploremethodsforimprovingperformance.
6.2Cooperation.DuringtheTerm,thePartieswillcooperateingood
faithandusecommerciallyreasonableeffortsto(a)provideapositivecustomer
experiencebetweentheCompanySiteandtheCompanyStores,and(b)maximize
customersandrevenuesfromorthroughtheCompanyStores.
6.3Personnel.EachPartywillprovideduringtheTermtheappropriate
resourcesandpersonneltoproduceandpromotetheCompanyStores.EachParty's
designatedemployeeswillbesubjecttochangefromtimetotimebysuchParty
initssolediscretionuponnoticetotheotherParty.
Section7.CompensationandExpenses.
7.1General.GSIwillbethesellerofallproductsandservicessold
throughtheCompanyStoresandtheSpecializedStores.Allrevenuesfromthe
saleofproductsand/orservicesthroughtheCompanyStoresandSpecialized
StoreswillbeGSIrevenues.TheCompanywillhavenorighttoanyrevenueshare
orotherfees,exceptassetforthinSection3.6(i)andthisSection7.Forall
productsand/orservicessoldthroughtheCompanyStoresandSpecializedStores,
GSIwillberesponsiblefor(i)establishingthesellingpriceforsuchproducts
andservices,(ii)determiningwhetheranysalesorusetaxispayabletoany
governmentalauthorityand,ifsopayable,theamountofanysalesorusetax
payable,and(iii)withholding,collectingandremittingtotheappropriate
governmentalauthorityanysalesorusetaxthatispayable.GSIagreesthatas
betweentheParties,GSIwillbesolelyandexclusivelyresponsibletocollect
andpaysuchsalesorusetaxeswheretheymaybedue.Exceptasexpressly
providedforelsewhereinthisAgreement,eachPartywillberesponsibleforall
costsandexpensesincurredbysuchPartyinperformingitsobligationsunder
thisAgreement.
7.2CollectionofSalesProceeds.Allproceedsfromthesaleof
MerchandiseandrelatedservicesthroughtheCompanyStoresandSpecialized
StoreswillbecollectedandprocessedbyGSI.Otherthantherevenueshare
paymentspayabletotheCompanypursuanttoSection7.3,GSIshallretainall
amountscollectedbyGSIfromtransactionsthroughtheCompanyStoresand
SpecializedStores.
7.3RevenueShare.TheCompanyshallbeentitledtoarevenueshare
equaltothefollowing:
(a)anamountequalto(i)[*]%ofMerchandiseRevenuederived
fromthesaleofPalmProductsshippedduringtheapplicableperiod,less(ii)
theMerchandiseCostofSalesforPalmProductsshippedduringsuchperiod,net
ofreturns;plus
(b)anamountequalto[*]%oftheamount,ifany,bywhich
MerchandiseRevenuederivedfromthesaleofNonPalmProductsshippedduring
theapplicableperiodexceedstheMerchandiseCostofSalesforNonPalm
Productsshippedduringsuchperiod,netofreturns;plus
(c)anamountequalto[*]%oftheamount,ifany,bywhich
ShippingRevenuederivedfromtheprovisionofshippingandhandlingservices
duringtheapplicable
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periodexceedsGSI'scarriercostsforprovidingshippingandhandlingservices
duringsuchperiod;plus
(d)anamountequalto[*]%oftheamount,ifany,bywhich
ServicesRevenuederivedfromtheprovisionofgiftwrappingandothervalue
addedservicesduringtheapplicableperiodexceedsGSI'sactualcostof
providingsuchservices(notincludingoverhead,butincludingdirectlaborand
thecostofmaterialsusedinconnectiontherewith)duringtheperiod;plus
(e)anamountequalto[*]%ofMerchandiseRevenuederived
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fromthesaleofExtendedWarrantiesandServiceContractsduringtheperiod.
7.4PaymentofRevenueShare.GSIwillaccounttotheCompanyforthe
revenuesharepaymentsdueunderSection7.3within[*]daysaftertheendof
each[*]throughareport,showinginreasonabledetail,thecalculationofsuch
payments.Followingitsreceiptofsuchreport,theCompanywillinvoiceGSIfor
theamountsetforthinsuchreport.Paymenttermsare[*]daysfromthedateof
invoice.Inaddition,GSIwillforwardtotheCompanyareporteach[*],onthe
lastdayoftheCompany'sfiscal[*]thatestimatesthe[*]revenueshare
paymenttotheCompanyforsuch[*],providedthattheCompanyhasprovidedGSI
withitsfiscalcalendar.Therevenuesharefigurewillbecalculatedat[*]end
baseduponamutuallyagreeduponmethodforprojectingreturns.
7.5RecordsandAuditRights.DuringtheTermofthisAgreement,and
foraperiodof[*]yearsthereafter,eachPartywillkeepcompleteandaccurate
booksandrecordssufficienttoverifytheamountspaidandpayablebyaParty
totheotherPartyunderthisAgreement.EachPartywill,uponatleast[*]
days'priorwrittenrequestbytheotherParty,allowsuchParty,ora
representativeofsuchParty(unlesstheauditedPartyreasonablybelievesthere
isaconflictbetweensuchrepresentativeandtheauditedParty)toauditsuch
booksandrecordsattheauditedParty'spremisestotheextentnecessaryto
verifytheamountsowedandchargedpursuanttothisAgreement;providedthat
(a)anysuchauditisconductedduringnormalbusinesshoursandinamanner
designedtonotunreasonablyinterferewiththeauditedParty'sordinary
businessoperations;(b)auditsmaynotoccurmorefrequentlythanonceevery
twelve(12)months;and(c)eachsuchauditmayonlycovertheperiodcommencing
aftertheperiodcoveredbythelastauditconductedpursuanttothisSection
7.5,ifany.Notwithstandingtheforegoing,ifadiscrepancyofmorethan[*]%
isrevealedduringanyaudit,thentheauditingPartyshallbeentitledto
conductanadditionalauditduringthetwelve(12)monthperiodinwhichthe
auditwhichrevealedsuchdiscrepancyoccurred.TheauditedPartywillcooperate
withtheauditingPartyanditsrepresentativesintheconductofsuchaudit.
7.6Interest.EitherPartyshallhavetherighttochargetheother
PartyinterestonanydelinquentbalancedueunderthisAgreementthatismore
than[*]dayspastdue.Thisinterestiscomputedonadailybasisforeachday
thatthepaymentisdelinquent,atthelesserof(i)[*]percent([*]%)per
annumor(ii)themaximumratepermittedbylaw.
Section8.CustomerInformationandPrivacyPolicy.
8.1CustomerInformation.
(a)TheCompanyshallexclusivelyownallCustomer
Information;providedthatduringtheTerm,GSIshallhavetherighttousesuch
Customerinformationasisreasonablynecessarytoperformitsobligations
hereunder.GSIwilltreatsuchCustomer
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InformationasConfidentialInformationoftheCompany,and,exceptaspermitted
hereunder,shallinnowayuse,sell,transferorotherwiseexploitthedatafor
anypurposewithoutexpresswrittenconsentoftheCompany.EachPartyagreesto
useallCustomerInformationinaccordancewiththeprivacypolicyforthe
applicableCompanyStoreorSpecializedStoreandallapplicablelaws,rulesand
regulations.
(b)GSIshalldeliveradatafeedtotheCompany'sfile
transferprotocolaccountonadailybasiscontainingthefollowingCustomer
InformationregardingeachOrderplacedthroughtheCompanyStoresand
SpecializedStores:theOrdernumber,theemailaddress,thebillingaddress,
thenameoftheCustomer,thenameoftheCustomer'scompany(ifprovided),the
Customer'sshippingaddress,theMerchandiseordered(includingquantity,SKU
andpurchaseprice),thedateofsuchOrderand,ifapplicable,thepromotionor
discountcodeusedinconnectionwithsuchOrder.
8.2PrivacyPolicy.PriortotheLaunchDateforeachapplicable
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CompanyStoreorSpecializedStore,thePartieswillmutuallyagreeuponthe
privacypolicyforandthatwillbepostedonsuchCompanyStoreorSpecialized
Store.EachPartywillabidebysuchprivacypolicy,asitmaybeamendedfrom
timetotime.Anyamendmentstosuchprivacypolicymustbeagreeduponbythe
Parties;provided,however,thatifanyamendmenttotheprivacypolicyis
requiredbyapplicablelawortobefactuallyaccurate,thenGSIwillamendthe
privacypolicytocomplywithsuchrequirements.
8.3AggregateInformationandFinancialInformation.EachPartywill
haveanequalandundividedownershipinterestintheAggregateInformationand
FinancialInformation.EachPartywilltreatsuchAggregateInformationand
FinancialInformationasConfidentialInformationoftheotherPartyhereunder;
providedthateachPartymayuseordiscloseAggregateInformationandFinancial
Informationinconnectionwithitsfinancialandstatisticalreports,solongas
(a)suchinformationisnotseparatelyidentifiedasinformationofanyofthe
CompanyStoresorSpecializedStores,and(b)suchinformationisusedor
disclosedinamannerwhichisnotspecifictoaCustomer,doesnotreferor
identifyanyspecificCustomer,andcannotbeused,aloneorinconjunctionwith
anyotherinformation,toidentifyaparticularCustomer.
Section9.ProprietaryRights.
9.1Ownership.
(a)TheCompany.AsbetweentheParties,theCompanyreserves
allright,titleandinterestinandtothe"CompanyFurnishedItems"(as
definedbelow),alongwithallIntellectualPropertyRightsassociatedwithany
oftheforegoing(the"CompanyIntellectualProperty"),andnotitletoor
ownershipoftheCompanyIntellectualPropertyistransferredor,exceptas
expresslysetforthinSection9.2,licensedtoGSIoranyotherPerson.GSI
herebyassignstotheCompanyallright,titleandinterestthatitmayhaveor
acquireinandtotheCompanyIntellectualProperty,andGSIwilltake,atthe
Company'sexpense,anyactions(includingexecutionanddeliveryofaffidavits
andotherdocuments)reasonablyrequestedbytheCompanytoeffect,perfector
confirmtheCompany'soritsdesignee'sright,titleandinteresttherein.As
usedherein,"CompanyFurnishedItem"meansanyCompanyContentoranyTrademark
orLookandFeeloftheCompanyoritsAffiliates,asthecasemaybe,that(a)
isownedorcontrolled(e.g.,bylicenseorotherwise)bytheCompanyorits
Affiliates,asthecasemaybe,and(b)isfurnishedbytheCompanyforusein
connectionwiththeactivitiescontemplatedbythisAgreement.Asusedherein,
"CompanyFurnishedItem"willalsoinclude,
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withoutlimitation,anyadaptation,modification,improvementorderivativework
ofanyCompanyFurnishedItemthatisdevelopedbyeitherPartyorjointlyby
theParties;provided,however,thattheCompanyFurnishedItemsdonotinclude
anyGSIFurnishedItem(asdefinedbelow)oranyadaptation,modification,
improvementorderivativeworkoftheCompanyStoresFunctionalitythatis
developedbyeitherPartyorjointlybytheParties.Attheterminationofthe
Agreement,GSIwillreturnallCompanyFurnishedItemstotheCompany,andGSI
shallhavenofurtherrightsthereto.
(b)GSI.AsbetweentheParties,GSIreservesallright,
titleandinterestinandtothe"GSIFurnishedItems"(asdefinedbelow),the
"GSIOwnedDevelopments"(asdefinedbelow),andtheCompanyStoresand
SpecializedStores(otherthantheCompanyFurnishedItemsincludedinthe
CompanyStoresandSpecializedStores),alongwithallIntellectualProperty
Rightsassociatedwithanyoftheforegoing(the"GSIIntellectualProperty"),
andnotitletoorownershipoftheGSIIntellectualPropertyistransferredor
licensedtotheCompanyoranyotherPerson.TheCompanyherebyassignsand
agreestoassigntoGSIallright,titleandinteresttotheGSIIntellectual
Property,andtheCompanywilltake,atGSI'sexpense,anyactions(including
executionanddeliveryofaffidavitsandotherdocuments)reasonablyrequested
byGSItoeffect,perfectorconfirmGSI'soritsdesignee'sright,titleand
interesttherein.Asusedherein,"GSIFurnishedItem"meansanyGSIContentor
anyTechnologyorTrademarkofGSIthat(a)isownedorcontrolled(e.g.,by
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licenseorotherwise)byGSIoritsAffiliates,asthecasemaybe,and(b)is
furnishedbyGSIforuseinconnectionwiththeactivitiescontemplatedbythis
Agreement."GSIOwnedDevelopment"meansanyTechnology(includingany
adaptation,modification,improvementorderivativeworkofanyGSIFurnished
Item)thatisdevelopedsolelybyGSIorjointlybythePartiesforuseonany
oftheCompanyStoresorSpecializedStoresinconnectionwiththeactivities
contemplatedbythisAgreementorthatisdevelopedbyGSIforuseontheWeb
Sitesthatitoperates,whichmayincludetheCompanyStoresand/orSpecialized
Stores.Notwithstandingtheforegoing,neithertheGSIFurnishedItemsnorthe
GSIOwnedDevelopmentswillinclude(i)anyCompanyFurnishedItem,(ii)any
derivativesthereof,or(iii)anyJointDevelopments(asdefinedbelow).The
GSIOwnedDevelopmentswill,however,includealladaptations,modifications,
improvementsorderivativeworksoftheCompanyStoresFunctionalitythatare
developedbyGSIorjointlybytheParties.AttheterminationoftheAgreement,
theCompanyshallreturnallGSIFurnishedItemstoGSI,andtheCompanyshall
havenofurtherrightsthereto.ForpurposesofthisAgreement,"Joint
Development"meansanyTechnologythatisjointlydevelopedthroughthe
significanteffortsofeachPartyduringtheTermpursuanttomutuallyagreed
upontermsexpresslyagreeduponinwritingbytheParties.
9.2CompanyLicense.TheCompanyherebygrantstoGSI,duringtheTerm,
aworldwide,nontransferablelicensetousetheCompanyFurnishedItems
suppliedbytheCompanyasisreasonablynecessarytoperformitsobligations
underthisAgreementortosublicensetheCompanyFurnishedItemssuppliedby
theCompanytothirdpartiesinconnectionwithadvertisingandpromotion
agreementsandarrangementspermittedunderthisAgreement(sublicensetobe
approvedbyCompany);provided,however,thatGSIwillnotuseTrademarksofthe
CompanyoritsAffiliates,includinginanyadvertising,exceptinconformance
withthereasonableuseguidelinesoftheCompanysetforthonSchedule"G"
attachedtothisAgreement.Allgoodwillarisingoutofanyuseofanyofthe
Company'soritsAffiliate'sTrademarksby,throughorunderGSIwillinure
solelytothebenefitoftheCompanyorsuchAffiliate,asthecasemaybe.
9.3NonDisparagement.NeitherGSInoranyofitsAffiliateswilluse
theTrademarksoftheCompanyoritsAffiliatesinamannerthatdisparagesthe
Companyorits
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Affiliates,asthecasemaybe,oritsproductsorservices,orportraysthe
CompanyoritsAffiliates,asthecasemaybeoritsproductsorservicesina
false,competitivelyadverseorpoorlight.GSIanditsAffiliateswillavoid
knowinglytakinganyactionthatdiminishesthevalueofsuchmarks.
Section10.RepresentationsandIndemnification.
10.1Representations.EachPartyrepresentsandwarrantstotheother
that:(a)ithasthefullcorporateright,powerandauthoritytoenterinto
thisAgreementandperformitsobligationshereunder;(b)itsexecution,
deliveryandperformanceofthisAgreement,andtheotherParty'sexerciseof
suchotherParty'srightsunderthisAgreement,willnotconflictwithorresult
inabreachorviolationofanyofthetermsorprovisionsorconstitutea
defaultunderanymaterialagreementbywhichitisbound;and(c)whenexecuted
anddelivered,thisAgreementwillconstituteitslegal,validandbinding
obligationenforceableagainstitinaccordancewithitsterms.
10.2Indemnity.
(a)GSIwilldefend,indemnifyandholdharmlesstheCompany
anditsAffiliates(andtheirrespectiveemployees,officers,directorsand
representatives)fromandagainstanyandallclaims,costs,losses,damages,
judgmentsandexpenses(includingreasonableattorneys'fees)arisingoutofany
thirdpartyclaim,action,suitorproceeding(a"Claim"),totheextentitis
basedon(i)thecreation,operationorcontentoftheCompanyStoresand
SpecializedStores(otherthananyitemsormaterialssuppliedbytheCompany
foruseontheCompanyStores,ontheSpecializedStoresorotherwisepursuant
tothisAgreement,includingtheCompanyContent),(ii)anyactualoralleged
breachofGSI'srepresentations,warrantiesand/orobligationsassetforthin
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thisAgreement,(iii)anyactualorallegedinfringementofanyIntellectual
PropertyRightsbyanymaterialsprovidedbyGSIforuseontheCompanyStores,
ontheSpecializedStoresorprovidedbyGSItotheCompanyforitsuseunder
thisAgreement;(iv)theoffer,marketing(unlessdirectedbytheCompany)or
saleofanyproducts(exceptforproductliability,wrongfuldeathorsimilar
claimsrelatingtoproductsobtainedfromorthroughtheCompanyorits
Affiliates,includingPalmProducts)orservicesontheCompanyStoresorthe
SpecializedStores;and(v)forthepaymentofanysalestaxes(includingany
finesorpenaltiesassessedfornonpayment)resultingfromthesaleof
merchandisethroughtheCompanyStoresortheSpecializedStores.Subjectto
Section10.3,GSIwillpayanyawardagainsttheCompanyanditsAffiliates(and
theirrespectiveemployees,officers,directorsorrepresentatives)andany
costsandattorneys'feesreasonablyincurredbythemresultingfromanysuch
Claim.
(b)TheCompanywilldefend,indemnifyandholdharmlessGSI
anditsAffiliates(andtheirrespectiveemployees,officers,directorsand
representatives)fromandagainstanyandallclaims,costs,losses,damages,
judgmentsandexpenses(includingreasonableattorneys'fees)arisingoutofany
thirdpartyClaim,totheextentitisbasedon(i)thecreation,operationor
contentoftheCompanySite;(ii)anyactualorallegedbreachoftheCompany's
representations,warrantiesand/orobligationsassetforthinthisAgreement,
(iii)anyactualorallegedinfringementofanyIntellectualPropertyRightsby
anymaterialsprovidedbytheCompanytoGSIforitsuseontheCompanyStores,
ontheSpecializedStoresorotherwiseunderthisAgreement,or(iv)product
liability,wrongfuldeathorsimilarclaimsrelatingtoproductsobtainedfrom
orthroughtheCompanyoritsAffiliates,includingPalmProducts.Subjectto
Section10.3,theCompanywillpayanyawardagainstGSIanditsAffiliates(and
their
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respectiveemployees,officers,directorsorrepresentatives)andanycostsand
attorneys'feesreasonablyincurredbythemresultingfromanysuchClaim.
10.3Procedure.Incaseanyclaim,action,suitorproceedingisatany
timebroughtagainstaPartyoritsAffiliates(oranyoftheirrespective
employees,officers,directorsorrepresentatives)(an"IndemnifiedParty")and
suchIndemnifiedPartyisentitledtoindemnificationpursuanttoSection10.2,
thepartyobligatedtoprovidesuchindemnification(the"IndemnifyingParty")
willdefendsuchclaim,action,suitorproceeding,atthesoleexpenseofthe
IndemnifyingParty,usingcounselselectedbytheIndemnifyingPartybutsubject
totheIndemnifiedParty'sreasonableapproval.IftheIndemnifyingPartyfails
totaketimelyactiontodefendsuchaClaimorproceedingafterhavingreceived
writtennoticefromtheIndemnifiedPartyofsuchfailure,theIndemnifiedParty
maydefendsuchaClaimattheIndemnifyingParty'sexpense.TheIndemnifying
PartywillkeeptheIndemnifiedPartyfullyadvisedwithrespecttosuchClaims
andtheprogressofanysuits,andtheIndemnifiedPartyshallhavetherightto
participate,attheIndemnifiedParty'sexpense,inanysuitinstitutedagainst
itandtoselectattorneystodefendit,whichattorneyswillbeindependentof
anyattorneyschosenbytheIndemnifyingPartyrelatingtosuchclaimorrelated
claim.TheIndemnifyingPartywillnotsettle,compromiseorotherwiseenter
intoanyagreementregardingthedispositionofanyclaimagainstthe
IndemnifiedPartywithoutthepriorwrittenconsentandapprovalofthe
IndemnifiedParty,unlesssuchsettlement,compromiseordispositionprovides
foracompleteandunconditionalreleaseoftheIndemnifiedParty.The
obligationsoftheIndemnifyingPartypursuanttothisSection10shallsurvive
expirationorearlierterminationofthisAgreement.
Section11.DisclaimersandLimitations.
11.1DISCLAIMEROFWARRANTIES.EXCEPTASOTHERWISEPROVIDEDINTHIS
AGREEMENT,NEITHERPARTYMAKES,ANDEACHPARTYHEREBYWAIVESANDDISCLAIMS,ANY
REPRESENTATIONSORWARRANTIESREGARDINGTHISAGREEMENTORTHETRANSACTIONS
CONTEMPLATEDHEREBY,INCLUDINGANYIMPLIEDWARRANTIESOFMERCHANTABILITY,
FITNESSFORAPARTICULARPURPOSEORNONINFRINGEMENTORIMPLIEDWARRANTIES
ARISINGOUTOFCOURSEOFDEALING,COURSEOFPERFORMANCEORUSAGEOFTRADE.
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WITHOUTLIMITINGTHEGENERALITYOFTHEFOREGOING,EACHPARTYSPECIFICALLY
DISCLAIMSANYREPRESENTATIONORWARRANTYREGARDING(A)THEAMOUNTOFSALES
REVENUESTHATMAYOCCURDURINGTHETERM,AND(B)ANYECONOMICOROTHERBENEFIT
THATITMIGHTOBTAINTHROUGHITSPARTICIPATIONINTHISAGREEMENT(OTHERTHANTHE
SPECIFICSUMSTOBEPAIDPURSUANTTOTHISAGREEMENT).
11.2LIMITATIONOFDAMAGES.EXCEPTTOTHEEXTENTAWARDEDTOATHIRD
PARTYINAJUDGMENTAGAINSTWHICHAPARTYISENTITLEDTOINDEMNIFICATION
PURSUANTTOSECTION10,ORTOTHEEXTENTARISINGOUTOFANINTENTIONALBREACHOF
THISAGREEMENT,NEITHERPARTYWILLBELIABLE(WHETHERINCONTRACT,WARRANTY,
TORT(INCLUDING,BUTNOTLIMITEDTO,NEGLIGENCE),PRODUCTLIABILITYOROTHER
THEORY),TOTHEOTHERPARTYORANYOTHERPERSONORENTITYFORCOSTOFCOVEROR
FORANYINDIRECT,INCIDENTAL,SPECIAL,CONSEQUENTIAL,PUNITIVEOREXEMPLARY
DAMAGES(INCLUDINGDAMAGESFORLOSSOFPROFIT,BUSINESSORDATA)ARISINGOUTOF
THISAGREEMENT.
Section12.Exclusivity.Exceptasprovidedbelow,duringtheTerm,[*]For
purposesofthisSection12,"Affiliates"shallnotbedeemedtoincludePalm
Source,Inc.[.
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<PAGE>
Section13.TermandTermination.
13.1Term.TheTermofthisAgreementwillcommenceonthedatehereof
and,unlessextendedorearlierterminatedasprovidedelsewhereinthis
Agreement,willendautomaticallyuponthe[*]yearanniversaryofthelaterof
theLaunchDatesfortheCompanyStores.
13.2TerminationforBreach.Withoutlimitinganyotherrightsor
remedies(including,withoutlimitation,anyrighttoseekdamagesandother
monetaryreliefandtherightsunderSections13.3and13.4)thateitherParty
mayhaveinlaworotherwise,eitherPartymayterminatethisAgreementifthe
otherPartyfailstoperformanyofitsmaterialobligationshereunder;provided
that(a)thenonbreachingPartysendswrittennoticetothebreachingParty
describinginreasonabledetailthebreachandstatingitsintentionto
terminatethisAgreementunlesssuchbreachiscured,and(b)thebreaching
Partydoesnotcurethebreachwithin[*]daysfollowingitsreceiptofsuch
notice;provided,however,thatifthebreachingpartyhasdiligentlyattempted
tocurethebreachduringsuch[*]dayperiodbuthasnotcuredthebreachby
theendofsuch[*]dayperiod,thenonbreachingPartymaynotterminatethis
AgreementsolongasthebreachingPartycontinuestodiligentlyattempttocure
thebreach.Notwithstandingtheforegoing,GSIwillbedeemedtohavecureda
breachpremiseduponfailuretocomplywith[*]byfullycomplyingwithsuch
obligation[*]afternoticeofdefaultisreceived.
13.3CompanyTermination.TheCompanyshallbeentitledtoterminate
thisAgreementimmediatelyuponwrittennoticetoGSIifGSIinstitutesorhas
institutedagainstitanybankruptcy,reorganization,debtarrangement,
assignmentforthebenefitofcreditors,orotherproceedingunderany
bankruptcyorinsolvencylawordissolution,receivership,orliquidation
proceeding(and,ifsuchproceedingisinstitutedagainstit,suchproceedingis
notdismissedwithin[*]days).
13.4GSITermination.GSIshallbeentitledtoterminatethisAgreement
immediatelyuponwrittennoticetotheCompanyiftheCompanyinstitutesorhas
institutedagainstitanydissolutionorliquidationproceeding(and,ifsuch
proceedingisinstitutedagainstit,suchproceedingisnotdismissedwithin[*]
days).
13.5[*]
13.6EffectofTermination.UponterminationofthisAgreement,each
Partyinreceipt,possessionorcontroloftheotherParty'sintellectualor
proprietaryproperty,informationandmaterials(includinganyConfidential
Information)pursuanttothisAgreementmustreturntotheotherParty(orat
theotherParty'swrittenrequest,destroy)suchproperty,informationand
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materials.Sections3.5,7through11,13and14(togetherwithallother
provisionsthatreasonablymaybeinterpretedassurvivingterminationor
expirationofthisAgreement)willsurvivetheterminationorexpirationofthis
Agreement.Notwithstandingtheforegoing,terminationofthisAgreementshall
notrelieveeitherPartyfromitsobligationtopayanymoniesduetotheother
Partyforanyperiodpriortotheeffectivedateoftermination.GSIwill
cooperatewithCompany'sreasonablerequeststotransitiontheservicesand
materialsdescribedhereineithertoanotherpartyortoCompany.
Section14.Miscellaneous.
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<PAGE>
14.1PressReleases.Allvoluntarypublicannouncementsconcerningthe
transactionscontemplatedbythisAgreementwillbemutuallyacceptabletoboth
theCompanyandGSI.Unlessrequiredbylaw,neithertheCompanynorGSIwill
makeanypublicannouncementorissueanypressreleaseconcerningthe
transactionscontemplatedbythisAgreementwithoutthepriorconsentofthe
otherParty.NotwithstandingtheprecedingsentencesinthisSection14.1,(a)
aftertheinitialpublicannouncementofaparticularmatterortransaction
contemplatedbythisAgreementhasbeenapprovedbytheParties,eitherParty's
subsequentreferencetothatparticularmatterortransactionwillnotrequire
anotherapprovalfromtheotherParty,and(b)eachPartymaymakeanypublic
announcementorissueanypressreleasethatitisrequiredbylawtoissue,
providedsuchPartygivesreasonablepriornoticeofsuchannouncementorpress
releasetotheotherParty.
14.2IndependentContractors.ThePartiesareenteringintothis
Agreementasindependentcontractors,andthisAgreementwillnotbeconstrued
tocreateapartnership,jointventureoremploymentrelationshipbetweenthem.
NeitherPartywillrepresentitselftobeanemployeeoragentoftheotheror
enterintoanyagreementorlegallybindingcommitmentorstatementonthe
other'sbehalfoforintheother'sname.
14.3Confidentiality.
(a)EachPartywillprotecttheConfidentialInformationof
theotherPartyfrommisappropriationandunauthorizeduseordisclosure,andat
aminimum,willtakeprecautionsatleastasgreatasthosetakentoprotectits
ownconfidentialinformationofasimilarnature.Withoutlimitingthe
foregoing,thereceivingPartywill:(i)usesuchConfidentialInformation
solelyforthepurposesforwhichithasbeendisclosed;and(ii)disclosesuch
ConfidentialInformationonlytothoseofitsemployees,agents,consultants,
andotherswhohaveaneedtoknowthesameforthepurposeofperformingthis
Agreementandwhoareinformedofandagreetoadutyofnondisclosure.The
receivingPartymayalsodiscloseConfidentialInformationofthedisclosing
Partytotheextentnecessarytocomplywithapplicablelaworlegalprocess,
providedthatthereceivingPartyusesreasonableeffortstogivethedisclosing
Partypromptadvancenoticethereof.UponrequestoftheotherParty,orinany
eventuponanyterminationorexpirationoftheTerm,eachPartywillreturnto
theotherallmaterials,inanymedium,whichcontain,embody,reflector
referencealloranypartofanyConfidentialInformationoftheotherParty.
(b)NeitherPartywilldisclosethisAgreementorthe
transactionscontemplatedherein,ormakeanyfilingofthisAgreementorother
agreementsrelatingtothetransactionscontemplatedherein,withouttheconsent
oftheother;provided,however,thatifaPartyisrequiredbyapplicablelaw
toprovidepublicdisclosureofthisAgreementorthetransactionscontemplated
herein,suchPartywilluseallreasonableeffortstocoordinatethedisclosure
withtheotherPartybeforemakingsuchdisclosure,includingthesubmissionto
theSecuritiesandExchangeCommission(andanyotherapplicableregulatoryor
judicialauthority)ofanapplicationforconfidentialtreatmentofcertain
terms(whichtermswillbeagreeduponbytheParties)ofthisAgreement.Each
Partywillprovidetotheotherforreviewacopyofanyproposeddisclosureof
thisAgreementoritstermsandanyapplicationforconfidentialtreatmentprior
tothetimeanysuchdisclosureorapplicationismadeandthepartiesshall
worktogethertomutuallyapprovesuchdisclosureorapplication.
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14.4ForceMajeure.IfeitherPartyisunabletoperformanyofits
obligationsunderthisAgreementduetoaneventbeyondthecontrolofthat
Party,includingnaturaldisaster,actsofGod,actionsordecreesof
governmentalbodies,actofwar,failureordiscontinuanceofthe
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<PAGE>
Internetorfailureofcommunicationslinesornetworks,thatPartywilluse
commerciallyreasonableeffortstoresumeperformanceofitsobligationsbut
willhavenoliabilitytotheotherPartyforfailuretoperformitsobligations
underthisAgreementforsolongasitisunabletodosoasaresultofsuch
event.However,duringanysuchperiodwhenGSIisunabletooperatetheCompany
StoresandfulfillOrders,theCompanyshallnotbeprohibitedfromdirectlyor
indirectlysellingMerchandisethroughtheInternet.
14.5CompliancewithLaws.InitsperformanceofthisAgreement,each
Partywillcomplyinallmaterialrespectswithallapplicablelaws,
regulations,ordersandotherrequirements,noworhereafterineffect,of
governmentalauthoritieshavingjurisdiction.
14.6Insurance.EachPartywillatitsownexpenseobtainandmaintain
suchpolicyorpoliciesofinsuranceasarerequiredbylaworasare
commerciallyreasonableforthetransactionsandbusinesscontemplatedbythis
Agreement.Inaddition,certificatesofinsuranceforinsurancepolicies
requiredbelowshallbefurnishedbyGSItotheCompanypriortheLaunchDate
andnotlaterthan[*]dayspriortoeachpolicyrenewal.Suchinsurance
certificatesshallbeinformreasonablyacceptabletotheCompany,butany
acceptanceofinsurancecertificatesbytheCompanyshallnotlimitorrelieve
GSIofthedutiesandresponsibilitieswithrespecttomaintaininginsurance
assumedbyitunderthisAgreement.GSIshall,atitsownexpense,atalltimes
duringthetermofthisAgreementprovideandmaintainineffectthoseinsurance
policiesandminimumlimitsofcoverageasdesignatedbelow,andanyother
insurancerequiredbyapplicablelaw.
(a)GSIshallmaintainworkers'compensationinsuranceas
requiredbyanyapplicablelaworregulationand,inaccordancewiththe
provisionsofallapplicablelaws.GSIshallmaintainemployer'sliability
insuranceinamountsnotlessthan$[*]perillnessorinjury.
(b)GSIshallmaintaincommercialgeneralliabilityinsurance
forbodilyinjury,propertydamage,personalinjury,blanketcontractual,
independentcontractors,severabilityofinterestandadvertisinginjury,as
thosetermsaredefinedbyitscommercialgeneralliabilityinsurancepolicies,
withlimitsofnotlessthan$[*]eachoccurrenceand$[*]intheaggregate.If
GSI'spolicyofcommercialgeneralliabilityinsurancerequiredunderthis
Agreementiswrittenonaclaimsmadebasis,GSIshallprovide"tailcoverage"
forclaimsmadeforaminimumofoneyearfollowingtheexpirationorearlier
terminationofthisAgreement(andsuchcoverageshallbeexpresslysetforthin
theapplicablecertificateofinsurance).GSIshallfurnishcertificatesof
insuranceannuallytotheCompanyasevidenceofthisrequiredinsurance.The
CompanyandanyotheradditionalinsuredsrequiredtobenamedinGSI's
insurancepoliciesunderthisAgreement,andtheirrespectiveofficers,
directors,employees,agentsandinvitees,shallbeincludedasadditional
insuredsforthecommercialgeneralliabilitycoveragerequiredtobemaintained
byGSIunderthisAgreement.
(c)GSIshallmaintainspecialpurpose(allrisk)property
insuranceprovidingcoverageforGSI'spropertyandbusinessinterruption/loss
ofincome/extraexpenseinsuranceinanamountnotlessthan$[*].
(d)GSIshallmaintainerrorsandomissionsinsurance
providingcoverageforGSI'swrongfulact(s)inGSI'sperformanceoftechnology
servicesorresultinthefailureofGSI'stechnologyproductstoperformthe
functionorservethepurposeintended.Sucherrorsandomissionsinsurance
shallbeprovidedinamountsnotlessthan$[*]perwrongfulact.
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<PAGE>
14.7Notices.Unlessotherwiseprovided,allnotices,consentsorother
communicationsrequiredorpermittedtobegivenunderthisAgreementmustbein
writingandshallbedeemedtohavebeendulygiven(a)whendelivered
personally,(b)threebusinessdaysafterbeingmailedbyfirstclassmail,
postageprepaid,or(c)onebusinessdayafterbeingsentbyareputable
overnightdeliveryservice,postageordeliverychargesprepaid,totheparties
attheirrespectiveaddressesstatedonthesignaturepageofthisAgreement.
Noticesmayalsobegivenbyelectronicmailorfacsimileandshallbeeffective
onthedatetransmittedifconfirmedwithin24hoursthereafterbyasigned
originalsentinthemannerprovidedintheprecedingsentence.NoticestoGSI
shallbesenttoitsaddressstatedonthesignaturepageofthisAgreementto
theattentionofitsGeneralCounsel,withacopysentsimultaneouslytothe
sameaddresstotheattentionofitsChiefFinancialOfficer.Noticestothe
Companyshallbesenttoitsaddressstatedonthesignaturepageofthis
AgreementtotheattentionofitsGeneralCounsel,withacopysent
simultaneouslytoitsChiefFinancialOfficer.Anypartymaychangeitsaddress
fornoticeandtheaddresstowhichcopiesmustbesentbygivingnoticeofthe
newaddressestotheotherpartiesinaccordancewiththisSection14.7,except
thatanysuchchangeofaddressnoticeshallnotbeeffectiveunlessanduntil
received.
14.8Assignment.NeitherPartymayassignthisAgreementoranyofits
rightsorobligationshereunder,whethervoluntarily,involuntarily,by
operationoflaworotherwise,withouttheotherParty'spriorwrittenconsent,
exceptto(a)awhollyownedsubsidiaryofsuchParty,;providedthatsuchParty
shallrequire,asaconditiontosuchassignment,anyassigneeorsuccessorto
allorsubstantiallyallofitsbusinessorassetstoassureandagreein
writingtoperformthisAgreementandtobeboundbyallthetermsand
conditionsofthisAgreementinthesamemannerandtothesameextentthatsuch
Partywouldberequiredtoperformorwouldbeboundifnoassignmentor
successionhadtakenplace.Subjecttotheforegoing,thisAgreementwillbe
bindingonandenforceablebythePartiesandtheirrespectivesuccessorsand
permittedassigns.
14.9Amendment.ThisAgreementmaybeamended,modifiedorsupplemented
bytheParties,providedthatanysuchamendment,modificationorsupplement
shallbeinwritingandsignedbytheParties.
14.10Waiver.NowaiverbyaPartywithrespecttothisAgreementwill
beeffectiveorenforceableagainstaPartyunlessinwritingandsignedbythat
Party.Exceptasotherwiseexpresslyprovidedherein,nofailuretoexercise,
delayinexercising,orsingleorpartialexerciseofanyright,powerorremedy
byaParty,andnocourseofdealingbetweenoramonganyoftheParties,will
constituteawaiverof,orshallprecludeanyotherorfurtherexerciseofthe
sameoranyotherright,powerorremedy.
14.11CounterpartsandTransmittedCopies.ThisAgreementmaybe
executedinanynumberofcounterparts,eachofwhichwhenexecutedand
deliveredwillbedeemedanoriginal,butallofwhichtakentogetherwill
constitutebutoneandthesameinstrument,anditwillnotbenecessaryin
makingproofofthisAgreementtoproduceoraccountformorethanoneoriginal
counterparthereof.ThePartiesacknowledgethatTransmittedCopiesofthis
Agreementwillbeequivalenttooriginaldocumentsuntilsuchtime(ifany)as
originaldocumentsarecompletelyexecutedanddelivered."TransmittedCopies"
meanscopieswhicharereproducedortransmittedviafacsimile,oranother
processofcompleteandaccuratereproductionandtransmission.
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<PAGE>
14.12CostofLitigation.TheprevailingPartyinanylegalactionor
proceedingarisingoutoforrelatingtothisAgreementshallbeentitledtoan
awardofitsreasonableattorneys'feesinconnectiontherewith.
14.13EntireAgreement.ThisAgreement,togetherwiththeschedulesto
thisAgreement,(a)representstheentireunderstandingbetweenthePartieswith
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respecttothesubjectmatterhereofandsupersedesallpreviousoralorwritten
communicationsoragreements,andallcontemporaneousoralcommunicationsand
agreements,betweenthePartiesandtheirrespectiveAffiliatesregardingsuch
subjectmatter,and(b)maybeamendedormodifiedonlybyawritteninstrument
signedbyadulyauthorizedagentofeachParty.NobreachofthisAgreementby
eitherPartywillaffecttherightsorobligationsofeitherPartyunderany
otheragreementbetweentheParties.
14.14Severability.IfanyprovisionofthisAgreementisconstruedto
beinvalid,illegalorunenforceable,thentheremainingprovisionshereofwill
notbeaffectedtherebyandwillbeenforceablewithoutregardthereto.
14.15CHOICEOFLAW.THISAGREEMENTWILLBEINTERPRETED,CONSTRUEDAND
ENFORCEDINACCORDANCEWITHTHELAWSOFTHESTATEOFNEWYORK,WITHOUTREFERENCE
TOITSCHOICEOFLAWRULES.
14.16Headings.Theheadingsofsectionsandsubsectionsofthis
Agreementareforconvenienceofreferenceonlyandarenotintendedto
restrict,affectorotherwiseinfluencetheinterpretationorconstructionof
anyprovisionofthisAgreement.
14.17References.AllwordsusedinthisAgreementshallbeconstrued
tobeofsuchnumberandgenderasthecontextrequiresorpermits.Unlessa
particularcontextclearlyprovidesotherwise(i)thewords"hereof"and
"hereunder"andsimilarreferencesrefertothisAgreementinitsentiretyand
nottoanyspecificsectionorsubsectionhereof,and(ii)theword"including"
shallmeanincludingbutnotlimitedto.
14.18Construction.ThePartiesagreethatanyruleofconstructionto
theeffectthatambiguitiesaretoberesolvedagainstthedraftingpartyshall
notbeappliedintheconstructionorinterpretationofthisAgreementorany
otheragreementsordocumentsdeliveredinconnectionwiththetransactions
contemplatedbythisAgreement.
*******************
(SIGNATURESAPPEARONFOLLOWINGPAGE)
21
<PAGE>
INWITNESSWHEREOF,intendingtobelegallybound,thePartieshereby
executethisAgreementonthedatefirstwrittenabove.
GSICOMMERCESOLUTIONS,INC.PALM,INC.
By:/s/MichaelRubinBy:/s/R.J.Bradley

Name:MichaelRubinName:R.J.Bradley
Title:President&CEOTitle:President&COO
Address:1075FirstAvenueAddress:
KingofPrussia,PA19406
Telephone:(610)2653229Telephone:
Facsimile:(610)2652866Facsimile:
22
<PAGE>
Schedule"A"
CompanyStoresLinks
AtalltimesduringtheTerm,theCompanywillincludeCompanyStoresLinkson
theCompanySiteassetforthbelow:
oProminentlinkstotheHomePageoftheCompanyStore,orsuch
otherpagesasthePartiesmayagreeuponfromtimetotime,
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locatedabovethefoldontheHomePageoftheCompanySite.Such
linksshallbeatleastasprominentasanyandallotherlinks
tothirdpartyWebSiteswhichsellPalmProducts.
oProminentlinkstoeachCompanyStoreontheCompanySite's
globalnavigationfunctionality.TheCompanyshallnothavelinks
onitsglobalnavigationfunctionalitywhichlinktothirdparty
WebSiteswhichsellPalmProducts;provided,however,thatthe
CompanyshallbepermittedtoincludealinktothePalmSource,
IncWebSiteonitsglobalnavigationfunctionality.
oAtleastonepromotionallinktothemainCompanyStores,located
abovethefoldontheHomePageoftheCompanySite.
oAdditionalpromotionallinksforproduct(s)offeredonthe
CompanyStoresintegratedthroughoutrelevantsectionsofthe
CompanySite.
23
<PAGE>
Schedule"B"
FunctionalityandFeatures
oSearchandBrowse
oShoppingCart
oOnlineCheckoutwithSecureOrdering
oEmailNotificationofOrders
oOrderTracking
oUserLogin/Registration
oAffiliateProgramManagement
oFrequentlyAskedQuestions
o"ContactUs"viaPhoneandeMail
o[*]
oSupportmultiplelinkstoandfromPalm.comwebsite
oDeliverapersonalizedshoppingexperienceforusersbasedon
userprofiles.
o[*]
oEnableacustomertofindandidentifyproducts,softwareor
servicesbaseduponkeywordsearches,productimages,
descriptions,sku#'s,andpricing.
24
<PAGE>
Schedule"C"
[*]
[*]
25
<PAGE>
Schedule"D"
HostingofSiteandRegistrationofURLRequirements
SSLCertificates
Thesecertificatesareusedforsecureecommercetransactions.Thecertificates
certifythatthecustomerisgivingtheirpersonalinformationtoasitethat
indeedisanauthorizedrepresentativeofthestorewheretheyareshopping.
Verisignisthecertificationbodyandwillneedtocontactanofficerwithin
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thecompanyregardingourrequestfortheseSSLcertificatesasathirdparty.
MainstoreURL(domain):____________________________
Internicregistrantcompanyname
forthisdomain:____________________________
Companyaddress:
(Corporatecontactmustbeanofficerinthecompanynamedabovewhohas
sufficientauthoritytoapprovethevalidityofGSI'srequesttorepresentthe
saidcompanyinecommercetransactions)
Corporatecontact:____________________________
Title:____________________________
Phone:____________________________
Fax:____________________________
DunandBradstreetnumberfor
abovecompany:____________________________

DNS
DNSistheInternetaddresssystemwhichallowsacustomertoreachthenew
storeviathedesiredURLsuchaswww.store.com.Thisneedstobechangedat
leastoneweekpriortotheexpectedstorelaunchsothatthechangeshavebeen
propagatedtoallDNSserversontheInternet.Ourpolicyistosupportyour
existingstoreipaddressonourservers,sothatevenaftertheDNShasbeen
updatedtopointtoourservers,yourexistingsitewillstillbereachable
untilwehavelaunchedthenewstore.
DNSTechnicalcontactformain
URLlistedabove:____________________________
Contactphone:____________________________
Contactemailaddress:____________________________

SecondaryURLsthatwillbesupportedbyGSI:
1.___________________Technicalcontact:_______________________
26
<PAGE>
2.___________________Technicalcontact:_______________________
3.___________________Technicalcontact:_______________________

Listanyadditionalonback.
EmailAliases
Thesearetheemailaliaseswhichcustomerswilluseassociatedwiththe
ecommercestoresuchascustomerssupport@domain.com.Ifyourcompanyusesthis
domainformail,youneedtoaddforwardingforthelistedemailaliasesbelow
thatwillpointtothecorrespondingmailboxonourservers.
Emailaliaseswhichneedtobecreatedonyourmailserver:
YourmailserverpointstoOurmailserver
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contactus@store.comstorecustomersupport@gsicommerce.com

webmaster@store.comstorewebmaster@gsicommerce.com

info@store.comstorecustomersupport@gsicommerce.com

customerservice@store.comstorecustomersupport@gsicommerce.com

help@store.comstorecustomersupport@gsicommerce.com

customersupport@store.comstorecustomersupport@gsicommerce.com

specialoffers@store.comstorespecialoffers@gsicommerce.com

grandopening@store.comstoregrandopening@gsicommerce.com

newsletter@store.comstorenewsletter@gsicommerce.com

jobs@store.comcorporateemailaddressforjobsat
yourcompany
Forexample,ifthemaindomainispalm.com,thenthefirstemailaliasmapping
wouldbe:
contactus@palm.comforwardstopalmcustomersupport@gsicommerce.com
Whotocontactforupdatingcompany
emailserverwithnewaliases:__________________________
Phone:__________________________
Email:__________________________
_____________________________________________________________________
YournameTitleDate
27
<PAGE>
Schedule"E"
OrderProcessingandFulfillment
oOrderreceipt,confirmationandprocessing(includinghigh
quantityOrdersplacedviapurchaseordersfromeducational
institutions,governmentagenciesandcorporations)
oEstablishmentoftermsandconditionsofsaleofMerchandise
oFraudscreeningandcreditchecks(including,ifappropriate,
obtainingD&Breports)
oCreditcardauthorizationandprocessingandcollectionof
proceeds
oInvoicingforOrdersplacedviapurchaseordersacceptedbyGSI
oInventoryreceipt,controlandmanagement
oPick,packandshipOrders
oShippingmanagementandtracking
oReturnsprocessing
oTestingReturnsusinggoodfaitheffortstocomplywiththe
attachedTestingSpecifications
28
<PAGE>
Schedule"F"
TestingSpecifications
1.Introduction
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ThisdocumentationdescribesthemanualfunctionaltestprocedureforthePalm
viewers.ThistestisperformedAFTERtheunithasbeenassembled.
2.Requirements
[*]
3.TestProcedure
[*]
29
<PAGE>
AppendixABeaming
[*]
30
<PAGE>
Schedule"G"
CompanyTrademarkUseGuidelines
GSIshallnot,withrespecttotheTrademarksoftheCompany:
oaltertheoveralldesign,colororshapeofanysuchTrademarks
ocommingleorcombineanysuchTrademarkswithanyothermark
ouseanyothermarkthatisconfusinglysimilartosuchTrademarks
osubstitutedesignsorobjectsforlettersinanyTrademark
ouseinconjunctionwithanyillegal,immoral,obsceneorpornographic
activities
31

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