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Traffic.com, Inc. – IPO: ‘S-1/A’ on 9/21/05 – EX-10.19

On:  Wednesday, 9/21/05, at 3:15pm ET   ·   Accession #:  1047469-5-23213   ·   File #:  333-127973

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  As Of                Filer                Filing    For·On·As Docs:Size              Issuer               Agent

 9/21/05  Traffic.com, Inc.                 S-1/A                  2:141K                                   Merrill Corp/New/FA

Initial Public Offering (IPO):  Pre-Effective Amendment to Registration Statement (General Form)   —   Form S-1
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: S-1/A       Pre-Effective Amendment to Registration Statement   HTML     62K 
                          (General Form)                                         
 2: EX-10.19    Material Contract                                   HTML     86K 


EX-10.19   —   Material Contract
Exhibit Table of Contents

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11st Page   -   Filing Submission
"Data Acquisition Agreement
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Exhibit 10.19

NT AND LICENSOR CONFIDENTIAL

DATA ACQUISITION AGREEMENT

Between

Navigation Technologies North America, LLC, its corporate affiliates and subsidiaries ("NT")

and

Mobility Technologies, Inc., its corporate affiliates and subsidiaries ("LICENSOR")

        This Data Acquisition Agreement ("Agreement") is made and entered into between NT and LICENSOR as of the Effective Date:

1)            
   
   

 

 

a)

 

Effective Date:

 

 

 

 

b)

 

NT Place of Organization:

 

Delaware

 

 

c)

 

LICENSOR Place of Incorporation:

 

Delaware

 

 

d)

 

NT Address:

 

Navigation Technologies North America, LLC
222 Merchandise Mart Plaza, Suite 900
Chicago, Illinois 60654
Attn: General Counsel
Phone: +1-312-894-7000
Fax: +1-312-894-7228

 

 

e)

 

LICENSOR Address:

 

Mobility Technologies, Inc.
851 Duportail Road, Suite 220
Wayne, PA 19087
Attn: Controller
Phone: +1-610-407-7400
Fax:
2)
Definitions.

a)
"Coverage Area(s)" or "Market(s)" shall refer to the geographic Metro areas

b)
"Derivative Works" shall mean all analogue, digital or other works that are created from and/or based in any way on the Licensor Data.

c)
"End-User(s)" shall mean any entity or person who receives or uses the Licensor Data or information contained therein or derived therefrom for personal use with no right to sublicense or transfer Licensor Data to another entity or person.

d)


e)
"Intellectual Property Rights" shall mean patent rights, copyrights, database rights, trademarks, service marks, and any and all other statutory and legal rights and protections available under applicable laws for the protection of intellectual property.

f)
"Licensor Data" shall mean Licensor's data, as defined in Exhibit A hereto.

g)
"NT Database" shall mean any geographic database made by or for, and generally released by NT.

h)

3)
Services/Delivery. (a) During the Term (as hereinafter defined), Licensor shall provide NT with the Services (as defined in Exhibit A hereof) and subject to the terms of the Service Level Agreement set forth in Exhibit C hereof and other requirements set forth in Exhibit A. The initial Coverage Area of the Licensor Data included as part of the Services as of the Effective Date is set forth on Exhibit B hereto (the "Initial Coverage Area").

(b)


(c)
In addition, in the event Licensor provides or agrees to provide

(d)
Notwithstanding the foregoing,

4)
Grant of License.

a)
License. Licensor hereby grants NT a non-transferable, worldwide, non-exclusive license to:

i)
use the Licensor Data and/or the Services

ii)


iii)



Without limiting the foregoing, NT shall protect Licensor Data with methods and license restrictions which are generally similar to and no less protective than the methods and license restrictions used to protect NT's geographic database, and in no event less than a reasonable standard of care.

b)
Subcontractors. NT and Sublicensees shall have the right to use the services of third parties from time to time in the exercise of their respective license rights under Section 4(a), subject to the same restrictions and limitations placed on the license provided to NT hereunder.

c)


d)


e)
Restrictions. Notwithstanding the foregoing, NT may not broadcast or disseminate the Licensor Data, or license third parties to broadcast or disseminate the Licensor Data via any radio or television systems audio or visual presentation, whether by broadcast, satellite or cable, or via any Internet or World Wide Web site without the prior written permission of Licensor, which Licensor may grant or refuse in its sole discretion.

5)
Maintenance/Quality. Licensor shall provide the Services in accordance with the service level agreement attached hereto as Exhibit C and the other requirements set forth in Exhibit A. Licensor shall use commercially reasonable efforts to continue to improve the quality of the Licensor Data in the aggregate during the Term where it is commercially practical to do so.

6)
License Fee.

a)
Initial Advance Payment. NT shall provide Licensor a prepayment in the amount of Nine Million Eight Hundred Seventy Thousand Dollars ($9,870,000) (the "Initial Advance Payment", together with all Additional Advance Payments (as hereinafter defined), the "Advance Payment") which shall be payable as follows via wire transfer to an account designated by Licensor:

(i)
One Million Five Hundred Thousand Dollars ($1,500,000) shall be paid

(ii)
One Million Five Hundred Thousand Dollars ($1,500,000) shall be paid

(iii)
One Hundred Seventy Thousand Dollars ($170,000) shall be paid

2


3


7)


8)
Traffic Codes.

9)
Representations and Warranties/Rights Reserved/Other Covenants.

a)
Licensor represents and warrants that it has all rights necessary to grant the licenses herein, and that the Licensor Data and the Services do not in any way infringe the Intellectual Property Rights of any third party. Nothing stated herein shall be deemed to grant, transfer, assign or set over unto NT any right, title, interest or ownership of any or all Licensor Data and Services, including all Intellectual Property Rights thereto (except as expressly set forth herein), all of which are hereby expressly reserved by Licensor. WITH THE EXCEPTION OF THE EXPRESS WARRANTIES SET FORTH IN THIS AGREEMENT, LICENSOR EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES OF MERCHANTABILITY, ACCURACY, TITLE OR FITNESS FOR A PARTICULAR PURPOSE RELATING TO ANY PERFORMANCE OF ANY OF ITS OBLIGATIONS HEREUNDER OR ALL OR ANY PORTION THEREOF.

b)
Subject to clause 9(a), NT owns all right, title and interest, including all Intellectual Property Rights, in and to the NT Database and any Derivative Works, except that such rights, titles and interest, including all Intellectual Property Rights, shall not include Licensor Data and Services. Licensor acknowledges and agrees that it shall not acquire or assert any right, title or interest in or to the NT Database or Derivative Works, or any Intellectual Property Rights thereto, based on any use or incorporation of Licensor Data as permitted under this Agreement or otherwise.

c)
Each party agrees that all rights, title and interest, including any Intellectual Property Rights, in any work created or developed by a party in connection with this Agreement shall remain with that party. Rights to any work jointly developed by the parties will be mutually agreed upon in writing prior to the work starting.

d)


e)


f)
NT agrees that to the extent it enters into agreements with third parties to license the Licensor Data and/or Services that includes limitations of liability, NT will include Licensor in such limitation (e.g. if the provision states that NT shall not be responsible for consequential damages, NT could satisfy this requirement by modifying the provision to state that "neither NT nor its licensors shall be responsible for consequential damages").

10)
Limitation of Liability & Indemnity.

a)
Under no circumstances will either party be liable under any provision of this Agreement, contract, law, statute or other legal or equitable theory for any consequential, indirect, special, punitive or incidental damages, or lost profits.

4


11)
Successors and Assigns. The rights and obligations of each party under this Agreement may not be transferred or assigned directly or indirectly without the prior written consent of the other party, which consent will not be unreasonably withheld, except that either party may assign this Agreement to a parent, subsidiary, or any entity that acquires substantially all of its stock, assets or business. Except as otherwise expressly provided herein, the provisions hereof shall inure to the benefit of, and be binding upon, the successors, assigns, heirs, executors and administrators of the parties hereto.

12)
Legal Relationship. This Agreement does not constitute a partnership or agency between the parties and each party shall not assume or create any obligation or liability on behalf of the other party to this Agreement in any manner whatsoever.

13)
Force Majeure. In the event of any delay in performance by either party due to any cause arising from or attributable to acts, events, non-happenings, omissions, accidents or acts of God beyond the reasonable control of such party, the party affected thereby shall be under no liability for loss or injury suffered by the other party as a result thereof and the performance of such obligation by the party affected thereby shall be suspended during such delay and upon cessation of the cause of such delay, this Agreement shall again become fully operative and such affected party shall immediately rectify such delay in performance, provided that, if such delay pertains to a material

5


14)
Confidentiality.

a)
Each party agrees that this Agreement and the contents thereof are confidential and shall not be disclosed to any third party without the prior written permission of the other party; provided that either party may disclose this Agreement to its actual and potential security holders (debt and/or equity) so long as such parties are subject to restrictions on disclosure no less restrictive than the restrictions set forth herein.

b)
Each party agrees that all patents, code, designs, formulations, inventions, algorithms, know-how and ideas and all other business, technical and financial information they obtain from the other are the confidential property of the disclosing party ("Confidential Information" of the disclosing party). Except as expressly and unambiguously allowed herein, the receiving party will hold in confidence and not use or disclose any Confidential Information of the disclosing party and shall similarly bind its employees. Upon termination of this Agreement or upon request of the disclosing party, the receiving party will return to the disclosing party all Confidential Information of such disclosing party, all documents and media containing such Confidential Information and any and all copies or extracts thereof. The provisions of this clause shall not apply to the whole or any part of the confidential information to the extent that it: (1) is or has become readily publicly available without restriction through no fault of the receiving party or its employees or agents; or (2) is received without restriction from a third party lawfully in possession of such information and lawfully empowered to disclose such information; or (3) was rightfully in the possession of the receiving party without restriction prior to its disclosure by the other party; or (4) was independently developed by employees or consultants of the receiving party without access to such Confidential Information. It shall not be a violation of this Agreement if a receiving party discloses particular Confidential Information of a disclosing party when required to disclose such Confidential Information by law or by order of a court of competent jurisdiction; provided that the receiving party uses its commercially reasonable efforts to promptly notify the disclosing party of such law or order, and reasonably cooperates in any attempt by the disclosing party to quash such requirement or minimize the required disclosure.

c)
The parties agree that Licensor Data, as used by NT in accordance with this Agreement, shall not constitute Confidential Information.

15)
Term/Termination.

a)
Term. The term of this Agreement shall be for a period of five (5) years beginning on the Effective Date (the "Initial Term", together with any extensions, the "Term").

b)
Termination for Breach. Either party may terminate this Agreement by written notice if the other party fails to cure any material breach within 30 days of receipt of written notice of such breach.

c)
Termination for Force Majeure. This Agreement may be terminated as provided in Section 13 (Force Majeure).

d)
Termination for Bankruptcy. Either party may terminate this Agreement immediately if any of the following events occur affecting the other party: (a) voluntary bankruptcy or application for bankruptcy; (b) involuntary bankruptcy or application for bankruptcy not discharged within 60 days; (c) appointment of receiver or trustee in bankruptcy for all or a portion of the other party's assets; or (d) an assignment for the benefit of creditors.

e)

6


16)
Post-Termination/Expiration Obligations and Rights.

a)
Upon expiration or termination of this Agreement, Licensor shall repay NT, within ninety (90) days after such expiration or termination, an amount equal to the unapplied Advance Payment less the Aggregate Unapplied Minimum (as hereinafter defined). The "Aggregate Unapplied Minimum" shall mean the sum of the Unapplied Minimums (as hereinafter defined) for each annual period of this Agreement. The "Unapplied Minimums" shall mean, for each annual period of this Agreement, the amount by which the license fees due hereunder is less than the minimum license fees for such annual period set forth below, if any:

 
  Minimum
License Fees

Year 1   $ 400,000
Year 2   $ 400,000
Year 3   $ 400,000
Year 4   $ 800,000
Year 5   $ 1,000,000
17)
Dispute Resolution.

a)
Any dispute arising out of or in connection with this Agreement shall in the first instance be referred for consideration and possible resolution to the duly authorized representative of NT and Licensor.

b)
Alternative Dispute Resolution. In case of any controversy or claim arising out of or related to this Agreement, the parties agree to meet to resolve such dispute in good faith. Should such a resolution not be reached within thirty (30) calendar days, or any longer period mutually agreed to by the parties, the parties agree to submit disputes between them relating to this Agreement, and its formation, breach, performance, interpretation, and application to arbitration as set forth in this Section 17. Arbitration will be conducted pursuant to the Commercial Rules of the American Arbitration Association, as modified herein. Unless the parties can agree upon a mutually acceptable single arbitrator within fifteen (15) days after the date specified in the written notice of the party requesting arbitration, each party will appoint a single arbitrator within an additional fifteen (15) days thereafter. The two arbitrators so chosen will appoint a third arbitrator who must have knowledge of the subject matter contemplated in this Agreement within an additional fifteen (15) days thereafter, or if an arbitrator with such knowledge cannot be reasonably appointed in such time, then an arbitrator that the initial two arbitrators determine would be most suitable for the matter. The arbitration hearing will be commenced within sixty (60) days after the mutual appointment of one arbitrator or the appointment of all three arbitrators and the hearing will be completed and an award rendered in writing within thirty (30) days after the commencement of the hearing, unless the arbitrators determine that exceptional circumstances justify delay. The

7


18)
Notices. All notices required or permitted under this Agreement must be in writing and delivered by hand, fax or nationally recognized overnight courier addressed if to NT and if to Licensor at the NT Address and Licensor Address, respectively, set forth on the cover page of this Agreement, or at such other address as either party shall have furnished to the other in writing. All such notices and other written communications shall be effective (1) if sent by overnight courier, two business days after mailing and (2) if sent otherwise, upon delivery.

19)
Press Releases. Neither party shall issue any press release or make any other written public disclosures regarding this Agreement or the terms thereof without the prior written consent of the other party, unless required by law or by order of a court of competent jurisdiction.

20)
General

a)
This Agreement constitutes the entire agreement between the parties with regard to the subject matter thereof and no other conditions, warranties, guarantees and representations shall be of any force or effect other than those that are included herein.

b)
No alteration or variation to, or consensual cancellation of this Agreement shall be of any force or effect unless it is recorded in writing and signed by all the parties to this Agreement.

c)
No failure by a party to enforce any provision of this Agreement shall constitute a waiver of such provision or affect in any way a party's right to require performance of any such provision at any time in the future, nor shall the waiver of any subsequent breach nullify the effectiveness of the provision itself.

d)
In the event that any of the terms of this Agreement are found to be invalid, unlawful or unenforceable, such terms will be severable. If any invalid term is capable of amendment to render it valid, the parties agree to negotiate an amendment to remove the invalidity.

e)
The parties shall each pay their own costs of negotiating, drafting, preparing and implementing this Agreement and the appendices to it.

f)
Execution of this Agreement by the parties hereto in counterparts hereof shall constitute valid execution.

g)
Each party warrants to the other party that it has power, authority and legal right to sign and perform this Agreement and that this Agreement has been duly authorized by all necessary

8


* * *

9


        IN WITNESS WHEREOF, the parties have caused their duly authorized representatives to execute this Agreement as of the Effective Date above first written.

MOBILITY TECHNOLOGIES, INC.   NAVIGATION TECHNOLOGIES NORTH AMERICA, LLC

By:

 

/s/  
CHRISTOPHER M. ROTHEY      

 

By:

 

/s/  
JOHN K. MACLEOD      
Name:   CHRISTOPHER M. ROTHEY
  Name:   JOHN K. MACLEOD
Title:   COO
  Title:   EVP
Date:   3/24/04
  Date:   3/26/04

10


Exhibit A—Definition of Licensor Data and Services

(a)
Licensor Data. During the Term, Licensor shall provide NT with the Licensor Data at the time and for the Coverage Areas set forth in the Agreement, and pursuant to the terms set forth in Exhibit C hereto.

(b)
Services. During the Term, Licensor shall provide NT with the Services for the Coverage Areas set forth in the Agreement in accordance with the Service Level Agreement attached hereto as Exhibit C.

(c)
System Availability and Support

i)
Telephone and Email Support. Licensor shall provide email and telephone support to NT in connection with the Services

ii)
Notice of Change. Licensor will provide NT a minimum of                        prior written notification of changes to the format or access method of the data feed as permitted in (a) and (b) above.

(d)
Coverage Area & Hours of Operation

a)
Coverage Area

Coverage Area   Geographic extent of incidents and flow within a metropolitan area

Coverage

  Description
  Value
Hours of Operation   Unscheduled Incidents    
    Scheduled Incidents    
    Flow Data    

11


Exhibit B—Initial Coverage Area

Rank*

  Market
1   New York, NY
2   Los Angeles, CA
3   Chicago, IL
4   San Francisco, CA
5   Dallas—Ft. Worth, TX
6   Philadelphia, PA
7   Houston-Galveston, TX
8   Washington, DC
10   Detroit, MI
15   Phoenix, AZ
19   Baltimore, MD
20   St. Louis, MO
23   Pittsburgh, PA
30   San Jose, CA

*
Rank is the Market Rank determined by radio market size as reported by BIA.

12


Exhibit C—Service Level Agreement

13


Exhibit D—Third Coverage Area

Rank*

  Market
18   Nassau—Suffolk, NY
21   Tampa—St. Petersburg—Clearwater, FL
27   Sacramento, CA
28   Riverside—San Bernardino, CA
34   Providence—Warwick—Pawtucket, RI
36   Middlesex—Somerset—Union, NJ
38   Orlando, FL
52   Monmouth—Ocean, NJ
60   Westchester, NY
76   Wilmington, DE
77   Sarasota—Bradenton, FL

*
Rank is the Market Rank determined by radio market size as reported by BIA.

14


Exhibit E

Rank

  Market
1   New York, NY
2   Los Angeles, CA
3   Chicago, IL
4   San Francisco, CA
5   Dallas—Ft. Worth, TX
6   Philadelphia, PA
7   Houston-Galveston, TX
8   Washington, DC
9   Boston, MA
10   Detroit, MI
11   Atlanta, GA
12   Miami—Ft. Lauderdale—Hollywood, FL
14   Seattle—Tacoma, WA
15   Phoenix, AZ
16   Minneapolis—St. Paul, MN
17   San Diego, CA
18   Nassau-Suffolk, NY
19   Baltimore, MD
20   St. Louis, MO
21   Tampa—St. Petersburg—Clearwater, FL
22   Denver—Boulder, CO
23   Pittsburgh, PA
24   Portland, OR
25   Cleveland, OH
26   Cincinnati, OH
27   Sacramento, CA
28   Riverside—San Bernardino, CA
29   Kansas City, MO-KS
30   San Jose, CA
31   San Antonio, TX
32   Salt Lake City—Ogden, UT
33   Milwaukee—Racine, WI
34   Providence—Warwick—Pawtucket, RI
35   Columbus, OH
36   Middlesex—Somerset—Union, NJ
37   Charlotte—Gastonia—Rock Hill, NC
38   Orlando, FL
39   Las Vegas, NV
40   Norfolk—Virginia Beach—Newport News, VA
41   Indianapolis, IN

15


Exhibit F

Rank

  Market
1   New York, NY
2   Los Angeles, CA
3   Chicago, IL
4   San Francisco, CA
5   Dallas—Ft. Worth, TX
6   Philadelphia, PA
7   Houston—Galveston, TX
8   Washington, DC
9   Boston, MA
10   Detroit, MI
11   Atlanta, GA
12   Miami—Ft. Lauderdale—Hollywood, FL
14   Seattle—Tacoma, WA
15   Phoenix, AZ
16   Minneapolis—St. Paul, MN
17   San Diego, CA
18   Nassau—Suffolk, NY
19   Baltimore, MD
20   St. Louis, MO
21   Tampa—St. Petersburg—Clearwater, FL
22   Denver—Boulder, CO
24   Portland, OR
25   Cleveland, OH
26   Cincinnati, OH
29   Kansas City, MO-KS
31   San Antonio, TX
32   Salt Lake City—Ogden, UT
33   Milwaukee—Racine, WI
35   Columbus, OH
37   Charlotte—Gastonia—Rock Hill, NC
39   Las Vegas, NV
40   Norfolk—Virginia Beach—Newport News, VA
41   Indianapolis, IN
42   Austin, TX
43   Greensboro—Winston Salem—High Point, NC
44   New Orleans, LA
45   Nashville, TN
46   Raleigh—Durham, NC
47   West Palm Beach—Boca Raton, FL
48   Memphis, TN
49   Hartford—New Britain—Middletown, CT
50   Jacksonville, FL
51   Buffalo—Niagara Falls, NY
53   Oklahoma City, OK
54   Rochester, NY
55   Louisville, KY
56   Richmond, VA
57   Birmingham, AL
     

16


58   Dayton, OH
59   Greenville—Spartanburg, SC
61   Honolulu, HI
62   Tucson, AZ
63   McAllen—Brownsville—Harlingen, TX
64   Albany—Schenectady—Troy, NY
65   Tulsa, OK
66   Grand Rapids, MI
67   Ft. Myers—Naples—Marco Island, FL
68   Fresno, CA
69   Wilkes Barre—Scranton, PA
70   Allentown—Bethlehem, PA
71   Albuquerque, NM
72   Knoxville, TN
73   Akron, OH
74   Omaha—Council Bluffs, NE-IA
75   Monterey—Salinas—Santa Cruz, CA
78   El Paso, TX
79   Harrisburg—Lebanon—Carlisle, PA
80   Syracuse, NY
81   Springfield, MA
82   Toledo, OH
83   Baton Rouge, LA
84   Greenville—New Bern—Jacksonville, NC
85   Little Rock, AR
86   Gainesville—Ocala, FL
87   Bakersfield, CA
88   Stockton, CA
89   Charleston, SC
90   Columbia, SC
91   Des Moines, IA
92   Spokane, WA

17


Exhibit G—Documented Bugs and Errors December 2003

#

  TYPE
  ISSUE
  PRIORITY
  DATE
NOTIFIED

  STATUS
  COMMENTS
                         
                         
                         
                         

18


Exhibit H

19




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