Magnolia Labs Publisher Agreement

1. INTRODUCTION AND ACCEPTANCE
1.1   Services.  Magnolia Labs, a California corporation,  (ÒMagnolia LabsÓ) owns and operates certain services (ÒServicesÓ) aimed to facilitate the delivery and insertion of advertisements (ÒAdsÓ) to publishers and software developers (ÒPartnerÓ), including without limitation through mobile sites, mobile applications and wireless device platforms (ÒMobile PropertiesÓ).  The Services may be comprised of certain software including the Magnolia Labs Software Development Kits (ÒSDKÓ) and other software enabling the display of advertisements in PartnerÕs application (ÒAd-Enabling Magnolia Labs TechnologyÓ) that Magnolia Labs, in its sole discretion, may make available to Partner from time to time. Magnolia Labs and you, (referred to herein as ÒPartnerÓ) enter into this Publisher Agreement (this ÒAgreementÓ) on the date of your first use of this service.


1.2 Partner Assent.  THIS PUBLISHER AGREEMENT (THIS ÒAGREEMENTÓ) IS A LEGAL AGREEMENT BETWEEN PARTNER AND MAGNOLIA LABS.  PLEASE READ THIS AGREEMENT CAREFULLY BEFORE USING THE SERVICES OR ANY PART THEREOF.  BY USING MAGNOLIA LABS' SERVICES, YOU AS THE PARTNER (1) REPRESENT THAT YOU ARE (A) AT LEAST 18 YEARS OF AGE (IN CASE OF AN INDIVIDUAL) OR (B) AUTHORIZED TO ENTER INTO THIS AGREEMENT (IN CASE OF AN ENTITY), AND (2) AGREE TO BE BOUND BY THE TERMS AND CONDITIONS OF THIS AGREEMENT.   IF YOU DO NOT AGREE TO ALL THE TERMS AND CONDITIONS OF THIS AGREEMENT, IMMEDIATELY DISCONTINUE YOUR USE THE SERVICES OFFERED BY MAGNOLIA LABS.

2. DELIVERY; GRANT OF RIGHTS; OWNERSHIP
2.1  Delivery.  In consideration for PartnerÕs assent to this Agreement in accordance with Section 1.2 above, and subject to the terms and conditions set forth in this Agreement, Magnolia Labs may deliver or make available to Partner certain Ad-Enabling Magnolia Labs Technology and/or the MagnoliaSDK.

2.2  License. Subject to the terms and conditions of this Agreement, Magnolia Labs hereby grants Partner, during the Term, a nonexclusive, non-transferable, non-sublicensable, limited, revocable license:
(a) to use the Services; and
(b) to copy and use the Ad-Enabling Magnolia Labs Technology provided by Magnolia Labs, to enable End-UsersÕ Mobile Property to operate with the Services to serve Ads to such End-UsersÕ wireless devices;
(c) if a ÒMagnoliaSDKÓ is being provided to a Partner hereunder, to copy and use such SDK solely to integrate it with the PartnerÕs mobile applications and to distribute such integrated mobile applications containing the SDK to End-Users.

2.3  License Limitations.  Partner shall not, reverse engineer, decompile, or disassemble the Ad-Enabling Magnolia Labs Technology or the MagnoliaSDK, except to the extent that such restrictions are expressly prohibited by applicable law.  Further, except as expressly permitted in this Agreement, Partner shall not (a) copy, modify or adapt the Ad-Enabling Magnolia Labs Technology or the MagnoliaSDK; or (b) rent, lease, sublicense, sell, assign, loan or otherwise transfer the Ad-Enabling Magnolia Labs Technology or the MagnoliaSDK.  Partner must comply with all applicable laws when using the Services and must not use the Services in a manner that threatens the integrity, performance, or availability of the Services.

2.4  Updates.  If Magnolia Labs, in its sole discretion, provides Partner a new version or an update to the Ad-Enabling Magnolia Labs Technology (ÒUpdateÓ), Partner shall promptly cease use of the prior version of such Ad-Enabling Magnolia Labs Technology, and instead, shall incorporate and use such Update in connection with the Service.

2.5 Ownership. The license granted in this Agreement does not constitute a transfer of ownership or sale of the Services, the Ad-Enabling Magnolia Labs Technology, the MagnoliaSDK (ÒMagnolia Labs PropertyÓ), or any other proprietary rights of Magnolia Labs, including the intellectual property rights in any of the foregoing.  Except for the license granted above, Magnolia Labs retains all right, title and interest in and to the Services, the Ad-Enabling Magnolia Labs Technology and the MagnoliaSDK.  Partner agrees not to remove, alter or obscure any proprietary notices (including copyright notices) on any portion of the Service.

3. ADVERTISEMENTS
3.1  Ad Delivery.  Partner acknowledges and agrees, and Partner shall require its End-User customers to acknowledge and agree that Magnolia Labs shall have the right, including the right to authorize third parties, to serve and deliver Ads to End-UsersÕ wireless devices as part of the Services and the right to access, index and cache requests made from PartnerÕs Mobile Property to the Services.  Partner shall indemnify and hold Magnolia Labs harmless from any losses and liabilities arising out of PartnerÕs failure to comply with this Section.

3.2  Non-Interference.  As between Magnolia Labs and Partner, Magnolia Labs shall have the sole right to negotiate and conclude agreements with advertisers and ad networks for the delivery of Ads to End-UsersÕ mobile devices in connection with the Services, and Partner shall not interfere with such Magnolia Labs business in anyway.

4. PRIVACY

4.1  Privacy Policy.  The Magnolia Labs Privacy Policy available at http://www.MagnoliaLabs.com/legal/privacy.htm (ÒPrivacy PolicyÓ) is incorporated by this reference and is made part of this Agreement, as such privacy policy is updated from time to time during the term of this Agreement.  By accepting this Agreement, Partner acknowledges that Partner has read the Privacy Policy and consent to Magnolia LabsÕ privacy practices.

4.2  Partner Indemnity.  Prior to activating the Service with an End User and/or providing any End User information to Magnolia Labs, Partner must make such End User aware of and ensure that the End User accepts privacy terms that are substantially similar to the Privacy Policy.  Without limiting the foregoing, if Partner provides any third party (including End User) information to Magnolia Labs, Partner warrants and represents that Partner has the right to provide such information including for the purposes outlined in the Privacy Policy and this Agreement.  Partner agrees to indemnify and hold Magnolia Labs harmless against all losses and liabilities arising out of its failure to comply with this Section.

4.3 Transfer of Information.  In the event that Magnolia Labs or a portion of Magnolia LabsÕ assets is acquired by another company, the information collected about Partner and End-Users through the Services may be one of the transferred assets. 

 

5. EXCLUSIVITY; NON-COMPETE

5.1  Exclusivity.  Partner does hereby appoint Magnolia Labs as its exclusive agent, for a period of five (5) calendar years, commencing on the date of this Agreement, for the following purposes:  a) Selection and placement of mobile advertising for Partner; b) Consultant to
Partner for application monetization purposes; and c) Generation of customer leads, including all such leads related to the sale of third party goods and services, virtual or physical (to the extent that such goods and services are paired with an advertisement, prepaid offer, opt-in offer, incentivized download or any other kind of third party offer), paid for with a credit card, SMS billing, PayPal, an in-application purchase or any other payment method.

5.2  Non-Competition.  Partner hereby agrees not to directly or indirectly compete with the online or mobile advertising business of Magnolia Labs and its successors and assigns during the period of this Agreement and for a period of one (1) year following termination of this Agreement.

 

6. NET REVENUE SHARE; PAYMENT

6.1 Net Revenue Share.  In consideration for the PartnerÕs use of the Services and subject to the terms and conditions of this Agreement, Magnolia Labs shall pay Partner an amount equal to fifty percent (50%) of the Net Revenue (ÒNet Revenue ShareÓ).  ÒNet RevenueÓ means the amount actually received by Magnolia Labs or Partner from third party advertisers or ad networks for Ads delivered to End-UsersÕ wireless devices through the Mobile Property that has been enabled by Ad-Enabling Magnolia Labs Technology or MagnoliaSDK provided in connection with the Services, calculated per impression (ÒCPMÓ), click (ÒCPCÓ) or action based on information and methodologies used by Magnolia Labs in the ordinary course of business or, from time to time, as reported by third parties, less any advertising agency fees, ad networksÕ payout, wire, banking or other operating costs.

6.2  Payment. ÒPaymentÓ means an amount payable by Magnolia Labs to Partner in respect of accrued Partner revenue in respect of a particular month less: i) any taxes Magnolia Labs may be legally required to withhold; and ii) any bank charges in respect of payment if payment is other than by check from Magnolia Labs to Partner.

Payment Reporting
Within ninety (90) days after the end of each calendar month during the Term, Magnolia Labs will provide Partner a written or electronic report, or will enable Partner to access such reports online, showing the bases for calculating the Net Revenue Share for such month (ÒPayment ReportsÓ).

Payment Due
Within ninety (90) days after the end of each calendar month during the Term, Magnolia Labs shall remit the Net Revenue Share to Partner for such calendar month in the manner and form agreed between Magnolia Labs and Partner.


6.3 Currency.  Payment of the Net Revenue Share shall be made in U.S. Dollars.  If payments by advertisers or ad networks are made in currency other than the U.S. Dollars, or a non-U.S. currency is involved in the calculation or payment of the Net Revenue Share, then Magnolia Labs may, in its sole discretion, convert such payment to U.S. Dollars using the foreign exchange currency rates as published by www.oanda.com (or such other website or service which replaces it and which the pay-per-click industry recognizes as a standard) at the time the conversion is made by Magnolia Labs.

6.4 Costs; Taxes. Except as otherwise expressly provided hereunder, each party will be responsible for all costs and expenses incurred by such party in connection with the performance of its obligations under this Agreement.  Partner shall pay all applicable taxes or fees imposed by any government authority in connection with PartnerÕs user of the Services.

6.5  Conditions for Payments.  Any conversions of advertising actions to actual consumer purchase (ÒConversionsÓ) generated by PartnerÕs application are subject to approval by third-party advertisers.  Magnolia  Labs shall not be required to make any payments to Partner in the event that a third-party advertiser nullifies a Conversion. 

6.6 Magnolia Labs Approvals of SDK and Advertisements.  Partner may only receive payments provided Magnolia Labs has approved its integration of the MagnoliaSDK or other Ad-Enabling Magnolia Labs Technology.  Magnolia Labs shall provide any such integration free of charge to Partner.  Each placement of any promotional offer or advertisement within the interface of the PartnerÕs application shall be approved by Magnolia Labs.  After Magnolia LabsÕ approval of these placements, Partner shall not alter, replace, or modify such placement in anyway.  Any such alterations, replacements, or modifications without the prior written approval of Magnolia Labs will result in a suspension of payments to Partner.


6.6  No Fraudulent Conversions.  Partner shall not, and shall not authorize others, to generate fraudulent conversions or impressions on any Ads served as part of the Services, whether generated manually or by use of a device or other automated process.  Failure to comply with the foregoing shall be deemed a material breach of this Agreement.  In addition, no payment shall be made hereunder in connection with any such fraudulent conversions or impressions.

7. TERM AND TERMINATION
7.1 Access to Service.  PARTNER AGREES THAT MAGNOLIA LABS HAS NO OBLIGATION TO ALLOW PARTNER ACCESS TO THE SERVICES OR ANY PART THEREOF, AND MAY REFUSE TO ALLOW ACCESS TO THE SERVICES TO ANY PARTNER AT ANY TIME. Further, Magnolia Labs may modify, suspend or discontinue the Services (or PartnerÕs access to the Services), including the availability of Ads or other content, at any time and without notice or liability.

7.2 Term.  Without limiting anything set forth in Section 7.1, this Agreement shall become effective upon acceptance by Partner on the date written above and shall remain in full force and effect until terminated in accordance with the terms hereof.

7.3  Termination for Convenience.   Either party may terminate this Agreement at any time upon thirty (30) daysÕ prior written or electronic notice; provided that the effective date of such termination shall be the last day of the calendar month in which the 30th day of such notice falls.

7.4 Termination for Breach.  Either party may terminate this Agreement in the event of a material breach of this Agreement by the other party, which breach has not been cured within 30 days of the notice from the non-breaching party.

7.5 Effect of Termination.
(a) Except as otherwise provided in Section 7.5(b), all rights and obligations of the parties under this Agreement shall terminate upon the expiration or termination of this Agreement, including without limitation all licenses granted pursuant to this Agreement. Partner shall remove from its services, websites and marketing literature all references to Magnolia Labs or the Services. Partner shall also cease all use and shall destroy or return to Magnolia Labs all Ad-Enabling Magnolia Labs Technology and other Magnolia Labs materials in its possession.
(b) Notwithstanding the foregoing, the following shall survive termination or expiration of this Agreement for any reason: 2.3 (License Limitations), 4 (Content),  7.5 (Effect of Termination), Section (b) (Confidential Information), Section 9 (Partner Representations and Warranties), Section 10 (Warranty Disclaimer), Section 11 (Indemnification), Section 12 (Limitation of Liability), Section 13 (Miscellaneous), and any payment obligations of a party that accrue prior to the effective date of such termination or expiration.

 

8. CONFIDENTIAL INFORMATION
8.1 Confidential Information.  Partner will hold in strictest confidence the Ad-Enabling Magnolia Labs Technology, the MagnoliaSDK and any related materials or information provided by Magnolia Labs to You, either directly or indirectly in writing, electronically orally or by inspection of tangible objects (ÒConfidential InformationÓ). Except as otherwise expressly permitted under this Agreement, Partner will not disclose any Confidential Information to third parties. Partner will take reasonable measures to protect the secrecy of, and to avoid disclosure and unauthorized use of, the Confidential Information, including but not limited to limiting the disclosure of such Confidential Information to Your employees and independent contractors with a need to know to perform PartnerÕs obligations under this Agreement and who have been advised of the confidential nature thereof, and have agreed not to disclose or use such Confidential Information except as permitted by this Agreement. Partner will immediately notify Magnolia Labs in the event of any unauthorized or suspected use or disclosure of the Confidential Information.  Notwithstanding the foregoing, Partner shall have no obligations hereunder for any information which is already known to Partner prior to disclosure by Magnolia Labs; publicly available through no fault of PartnerÕs; lawfully and rightfully disclosed to Partner by a third party under no confidentiality obligation to Magnolia Labs; or is independently developed by Partner without reference to Confidential Information.

8.2 Data Ownership. Partner and Magnolia Labs understand that all data, including, but not limited to, information provided by End-Users in response to an Ad and/or any or all reports, results, and/or information created, compiled, analyzed and/or derived by a party with respect to an End-User from such data shall be owned as follows: Partner owns any data it collects and Magnolia Labs owns any data it collects.

9. PARTNER REPRESENTATIONS AND WARRANTIES


Partner covenants, warrants and represents that (i) Partner owns or is authorized to use the Mobile Property in connection with the Services; (ii) Partner is and shall comply with all applicable laws and regulations; (iii) Partner has not and will not infringe third party intellectual property rights and rights of privacy or publicity.

10. WARRANTY DISCLAIMER


THE SERVICES, THE SITE, AND ALL CONTENTS AVAILABLE OR ACCESSIBLE THROUGH THE SERVICES AND THE SITE ARE PROVIDED ON AN ÒAS ISÓ AND ÒAS AVAILABLEÓ BASES. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, MAGNOLIA LABS MAKES NO OTHER WARRANTY AND HEREBY EXPRESSLY DISCLAIMS ALL WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, WITH RESPECT TO THE SERVICES, THE SITE, AND ITS CONTENT, INCLUDING WITHOUT LIMITATION THE IMPLIED WARRANTIES OF MERCHANTABILITY, NON-INFRINGEMENT, TITLEAND FITNESS FOR A PARTICULAR PURPOSE, AND IMPLIED WARRANTIES ARISING FROM COURSE OF DEALING OR PERFORMANCE. MAGNOLIA LABS MAKES NO WARRANTY OF ANY KIND THAT THE MAGNOLIA LABS SERVICE AND/OR THE SITE WILL ALWAYS BE AVAILABLE, ACCESSIBLE, UNINTERRUPTED, TIMELY, AND SECURE OR OPERATE WITHOUT ERROR OR THAT ANY SOFTWARE PROVIDED HEREUNDER WILL OPERATE WITHOUT ERROR. ANY CONTENT, INCLUDING ADS, TRANSMITTED THROUGH THE USE OF THE SERVICES IS DONE AT PARTNERÕS OWN DISCRETION AND RISK AND PARTNER WILL BE SOLELY RESPONSIBLE THEREFOR. FURTHER, MAGNOLIA LABS MAKES NO REPRESENTATIONS REGARDING THE LEVEL OF CLICKS OR IMPRESSIONS ON ANY ADS THAT MAY BE DELIVERED THROUGH THE SERVICES. SOME STATES MAY PROHIBIT A DISCLAIMER OF WARRANTIES AND PARTNER MAY HAVE OTHER RIGHTS THAT VARY FROM STATE TO STATE.

11. INDEMNIFICATION


11.1 By Partner. Partner shall fully indemnify and hold harmless Magnolia Labs from and against all claims, costs, damages and losses of any kind including reasonable attorneysÕ fees, including claims brought against Magnolia Labs by third parties (collectively ÒLossesÓ), arising out of or relating to the breach of, or non-compliance with, any provision of this Agreement by the Partner, including, without limitation, Losses (i) based upon a claim by a third party that PartnerÕs applications, PartnerÕs websites, PartnerÕs services or PartnerÕs content, including any modification or combination thereof with the Ad-Enabling Magnolia Labs Technology, the MagnoliaSDK or Magnolia Labs Services by any party other than Magnolia Labs infringes any intellectual property rights of a third party or results in other third party liability claim, or (ii) arising out of a breach by Partner of any covenants, representations or warranties made in this Agreement.

11.2 By Magnolia Labs. Magnolia Labs shall defend and/or settle any claim (an ÒInfringement ClaimÓ) brought against Partner alleging that, when used in accordance with the terms of this Agreement, the Ad-Enabling Magnolia Labs Technology or the MagnoliaSDK (ÒMagnolia Labs TechnologyÓ) infringes any U.S. copyright or trade secret; provided that (i) Partner promptly notifies Magnolia Labs in writing of such Infringement Claim, (ii) allows Magnolia Labs the sole control of the defense and/or any settlement of such Infringement Claim, and (iii) provides assistance, at Magnolia LabsÕ expense, as reasonably requested by Magnolia Labs. Notwithstanding the foregoing, Magnolia Labs shall have no obligation hereunder to the extent that any such Infringement Claim arises out of or relates to any third party materials, or the modification or combination of the Magnolia Labs Technology with any third partyÕs software, services or other items not provided by Magnolia Labs (ÒThird Party MaterialsÓ) to the extent that no allegation of infringement or infringement would have occurred but for such Third Party Materials.

12. LIMITATION OF LIABILITY
12.1 TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, IN NO EVENT WILL MAGNOLIA LABS BE LIABLE FOR ANY INDIRECT, INCIDENTAL, PUNITIVE, SPECIAL, RELIANCE OR CONSEQUENTIAL DAMAGES OF ANY KIND OR NATURE WHATSOEVER, HOWEVER CAUSED, AND WHETHER BASED ON BREACH OF CONTRACT, TORT (INCLUDING WITHOUT LIMITATION NEGLIGENCE), OR ANY THEORY OF LIABILITY, INCLUDING, WITHOUT LIMITATION, LOST PROFITS, BUSINESS INTERRUPTIONS OR OTHER ECONOMIC LOSS, LOSS OF DATA, OR OTHER SUCH PECUNIARY LOSS, ARISING OUT OF THE USE OR INABILITY TO USE THE SERVICE, EVEN IF MAGNOLIA LABS WAS ADVISED OF THE POSSIBILITY OF SUCH LOSS OR DAMAGES. PARTNER SPECIFICALLY AGREES THAT MAGNOLIA LABS IS NOT LIABLE TO PARTNER, END-USER OR ANYONE ELSE FOR ANY THREATENING, DEFAMATORY, OBSCENE, OR OTHERWISE OFFENSIVE CONTENT THAT MAY BE TRANSMITTED THROUGH THE SERVICES. PARTNER FURTHER AGREES THAT MAGNOLIA LABS WILL NOT BE LIABLE FOR ANY LOSSES ARISING FROM INTERRUPTION, SUSPENSION OR TERMINATION OF SERVICES, WHETHER INTENTIONAL OR NEGLIGENT.

12.2 IF PARTNER ARE DISSATISFIED WITH THE SERVICES, THE CONTENT AVAILABLE ON OR THROUGH THE SERVICES, OR WITH ANY OF THE TERMS OF SERVICES, YOUR SOLE AND EXCLUSIVE REMEDY IS TO DISCONTINUE USING THE SERVICES.

12.3 IN NO EVENT SHALL MAGNOLIA LABSÕS LIABILITY UNDER OR ARISING OUT OF THIS AGREEMENT EXCEED THE LESSER OF (A) THE TOTAL PAYMENTS MADE BY THE PARTNER, OR (B) ONE THOUSAND (US$1,000) U.S. DOLLARS.

12.4 THE LIMITATIONS OF LIABILITY SET FORTH IN THIS SECTION 12 WILL SURVIVE ANY TERMINATION OR EXPIRATION OF THIS AGREEMENT AND WILL APPLY EVEN IF ANY LIMITED REMEDY SPECIFIED IN THIS AGREEMENT IS FOUND TO HAVE FAILED OF ITS ESSENTIAL PURPOSE.

12.5 The warranty disclaimer, exclusive remedies, and limitations of liability and damages set forth above are fundamental elements of the basis of the agreement between Partner and Magnolia Labs. Partner acknowledges that Magnolia Labs would not be able to provide the Services on an economically reasonable basis without these limitations.

13. MISCELLANEOUS
13.1 Notices. Any notice or other communication required or permitted to be given to Magnolia Labs or Partner hereunder shall be given in writing, delivered in person, sent via facsimile or delivered by recognized overnight courier service to Magnolia Labs at its address specified below. Notice shall be deemed effective upon receipt when hand delivered, within five (5) business days of mailing and on the business day following the day of facsimile transmission. Either party may from time to time change the individual designated to receive notices or its address.

Magnolia Labs
350 Brannan St, Third Floor                                                                                                                                 San Francisco, CA 94107


13.2 Governing Law. This Agreement shall be governed by the laws of the State of California, without regard to any conflict or choice of law principles.

13.3 Dispute Resolution. The parties agree to submit to the exclusive jurisdiction of the state and federal courts in Santa Clara County, California with respect to any disputes arising out of this Agreement, waiving all defenses related to jurisdiction, forum and venue.

13.4 General. This Agreement shall inure to the benefit of and be binding upon the parties and their respective successors and permitted assigns. Partner shall have no right, by operation of law or otherwise, to assume, assign or otherwise transfer this Agreement or any of its rights or obligations hereunder, to any third party, without the prior written consent of Magnolia Labs, including in the event of a merger or a sale of all or substantially all of PartnerÕs stock or assets. Magnolia LabsÕ failure to strictly enforce any term or condition of this Agreement or to exercise any right, power, or privilege arising hereunder shall not constitute a waiver of Magnolia LabsÕ right to strictly enforce such terms or conditions or exercise such right, power, or privilege thereafter. All rights and remedies under this Agreement are cumulative and are in addition to any other rights and remedies Magnolia Labs may have at law or in equity. Any waiver by Magnolia Labs of a default by Partner hereunder shall not operate as a waiver of any other default or of the same default thereafter. If any provision of this Agreement shall be held invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions, rights, powers, and privileges shall not be affected or impaired thereby.  The prevailing party in any legal action hereunder shall be entitled to reimbursement of its expenses including without limitation reasonable attorneysÕ fees.  The paragraph headings herein are for convenience only and form no part of the Agreement and shall not affect the interpretation of the Agreement. This Agreement constitutes the entire agreement between the parties relating to the subject matter hereof, and supersedes all prior agreements pertaining hereto.  Any modification to this Agreement shall be made in writing (electronically or otherwise) and must be agreed by Partner in writing (electronically or otherwise) or by using the Services following Magnolia LabsÕ notice of such modification.