Linktone Ltd. Contracts
Sample Business Contracts
Ring Back Tone License Agreement - Sony Music (Asia) Inc. and Linktone Consulting Ltd.
Consulting Forms
RING BACK TONE LICENSE AGREEMENT ("LICENSE")
Agreement made as of the 6th day of May, 2003
BETWEEN:
SONY MUSIC (ASIA) INC. of Suites 2801-13, 28th Floor, CITIC Tower, No.1 Tim Mei
Avenue, Admiralty, Hong Kong (hereinafter "Licensor")
AND
LINKTONE CONSULTING LTD. of Harbour Ring Plaza, 6th Floor, 18 Xi Zang Zhong
Road, Shanghai, 200001, People's Republic of China (hereinafter "Licensee").
IT IS AGREED AS FOLLOWS:-
1. GRANT OF RIGHTS
1.1. Solely with respect to Licensor's ownership interest in each Recording
(as specified on Schedule A hereto), Licensor grants to Licensee the
exclusive right, privilege and license, during the Term (as specified
on Schedule A hereto) and throughout the Territory (as specified on
Schedule A hereto) as follows:-
(a) to reproduce the Recordings onto Licensee's computer server(s)
solely for its internal business purposes and for subsequent
distribution to Approved Sublicensee(s) listed on Schedule A
for use in their respective ring back tone services offered to
their respective subscribers ("Subscribers") in the Territory
to personalize the connecting tone to be heard by the calling
parties over a regional wireless transmission network (e.g.,
IVR or WAP), provided (i) Licensor shall be the exclusive
supplier of music content to each Approved Sublicensee's ring
back tone service during the first month such service is
launched; and (ii) Licensor shall be the dominant supplier
supplying more than 50% of music content to each Approved
Sublicensee's ring back tone service during month two to month
four (both months inclusive) such service is launched; and
(b) to reproduce the Recordings for Subscribers to pre-listen the
ring back tone over the Internet provided (i) the Recordings
shall not exceed fifteen (15) seconds and (ii) the Recordings
are protected from permanent download and further copying.
1.2. This License does not include any right or authority to make any use of
the Recordings not expressly authorised herein. This license is subject
to the express
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condition that the Licensee has or will obtain all other licenses and
consents that are required in connection with the reproduction and the
public performance of the Recordings. This shall include, but not
limited to, any valid licenses being obtained from the music publishers
who control any musical works contained in the Recordings and any
applicable music publishing organizations.
1.3. This license is subject to the express condition that the retail price
for each Recording to be used in the ring back tone service(s) offered
in the Territory shall, unless otherwise approved by Licensor in
writing, be at least 3 Reminbi and for the avoidance of doubt, this
price shall exclude any promotional discounts which Approved
Sublicensee(s) may offer to Subscribers. Licensee shall give at least
ten days advance notice to Licensor in case there are any price
adjustments based on discounts/promotions offered by Approved
Sublicensee(s) to Subscribers and any discounts/promotions offered in
connection with the Recordings can only be offered to Subscribers with
Licensor's prior written approval.
1.4. No right is granted to Licensee hereunder to use the Recordings in
connection with any advertisement or commercial, including but limited
to isolating or positioning a Recording in a way that could be
construed as advertising or promoting any product or service, including
any promotion of Licensee's or Approved Sublicensee(s)' products or
services.
1.5. No use of any Recording as permitted herein shall exceed forty (00:40)
seconds, except as otherwise approved in writing by Licensor. The
Recordings shall not be edited, modified or otherwise altered, except
with the prior written approval from Licensor.
1.6. All rights not specifically granted herein are reserved by Licensor.
2. LICENSEE OBLIGATIONS
(a) Licensee agrees to comply with any and all restrictions communicated to
Licensee by Licensor relating to Territory, name and likeness,
trademark, use restrictions and any other restrictions to which
Licensor may be contractually bound. In particular, Licensee shall not
use Licensor's name or its labels, or the name, likeness or
biographical materials of any artist performing the Recordings,
including without limitation, in advertising or press releases without
Licensor's prior written approval.
(b) Licensee shall obtain all necessary licenses from relevant copyright
owners that are required in connection with the reproduction and public
performance of the Recordings so as to comply with copyright laws in
the Territory, including but not limited to any valid licenses being
obtained from the music publishers who control any musical works
contained in the Recordings and any applicable music publishing
organizations and shall make the payment of all fees, royalties or
other charges in connection therewith.
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(c) In the event that Licensor shall request for any reason that Licensee
cease exploiting any Recording pursuant to the rights granted hereunder
prior to the expiration of the Term, Licensee shall do so immediately
after receiving notice of such request.
(d) If so requested by Licensor, Licensee shall make available to Licensor
any aggregate, non-identifiable end-user data Licensee or Approved
Sublicensee(s) collect relating to Subscribers who have subscribed for
the Recordings licensed hereunder as ring back tones. Any such data
shall be made available to Licensor, on a regular basis during the Term
and for sixty (60) days after the Term, in all formats maintained by
Licensee.
(e) Licensee will use its best endeavours to procure that each Approved
Sublicensee will ensure that (i) all the ring back tones used in its
ring back tone service will be supplied by Licensor during the first
month it launches such service, (ii) at least 50% of the ring back
tones used in its ring back tone service will be supplied by Licensor
during month two to month four (both months inclusive) it launches such
service; (iii) the retail price for each Recording used in its ring
back tone service will be at least 3 Reminbi (which excludes any
promotional discounts which it may offer to Subscribers) during the
Term; (iv) it will give at least one month advance notice to
Licensee/Licensor in case there are any price adjustments based on
discounts/promotions which it may offer to Subscribers; and (v) it will
obtain Licensor's prior written approval before it offers any
discounts/promotions to Subscribers in connection with the Recordings.
(f) At Licensor's request, Licensee will provide Licensor with digital
copies of any digitized Recordings and other artistic and literary
materials or promotional content which Licensor had supplied to
Licensee pursuant to this License, and Licensor may freely exploit them
in its own discretion.
(g) Licensee will use its best endeavours to procure each Approved
Sublicensee be responsible and pay for all delivery, billing and
customer support in connection with the ring back tone service(s) which
it may offer to Subscribers, which delivery, billing and customer
support shall be performed in a professional and commercially
reasonable manner in accordance with the industry standards of the Hong
Kong mobile market. Licensee shall be responsible for billing each
Approved Sublicensee at its own costs.
3. ROYALTY AND ROYALTY ACCOUNTINGS
(a) In consideration for the rights granted herein, Licensee shall pay to
Licensor royalties at ********** (*) *************** for each Recording
used as a ring back tone ("Royalty").
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CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AND CONFIDENTIAL TERMS HAVE BEEN
OMITTED
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(b) Licensee shall render to Licensor true and detailed accounting
statements, in electronic or digital format, of all royalties payable
hereunder no less often than fifteen (15) days following its receipt of
the monthly payment from Approved Sublicensees, but in no event shall
such payments be made later than thirty (30) days after the end of each
calendar month. The statements shall report all royalty bearing
transactions on a Recording-by-Recording basis, including but not
limited to reporting on each Recording by title, performing artist,
total revenue received from Subscibers, the number of subscriptions of
such Recording, the amount of tax to be withheld and the resultant
Royalty payable hereunder. Each accounting statement shall be
accompanied by payment to Licensor of all royalties due.
(c) All payments to Licensor shall be computed in Reminbi and remitted to
Licensor in United States dollars to an account in Hong Kong designated
by Licensor. Each conversion from another currency for the purpose of
computing such payments shall be calculated at the rate of exchange in
effect on the date the statement concerned is rendered.
(d) Licensee shall maintain accurate and complete records and accounting
books with regard to the licensing and exploitation of the Recordings,
including but not limited to, all information needed to compute and
verify the amounts payable to Licensor hereunder. Licensor may audit
such records and books. Licensor may make such an examination for a
particular statement only once. Upon no less than thirty (30) days'
notice, Licensor may conduct such audit during Licensee's normal
business hours at the place where Licensee keeps such records and books
to be examined. Any audit shall be conducted at Licensor's sole
expense, except that if any audit reveals an error resulting in
underpayment to Licensor of five (5%) percent or more of the total
amount accounted to Licensor during the accounting periods audited,
Licensee shall pay to Licensor all reasonable audit costs, including
travel, hotel and per diems, together with the underpayment. Any
royalties owed and unpaid to Licensor shall accumulate interest at one
(1%) percent above The Hong Kong and Shanghai Banking Corporation's
prime lending rate.
4. TERMINATION
(a) Licensor may terminate this License by giving Licensee notice in any of
the following circumstances:
(i) Licensee fails to perform any of its obligations under this
License for any reason (including impossibility of performance)
and such failure has not been remedied to Licensor's satisfaction
within thirty (30) days after Licensee's receipt of Licensor's
written notice thereof.
(ii) Licensee attempts to assign any of its rights under this License
without Licensor's prior written consent, or if any of those
rights succeeds to any other person or entity by operation of
law.
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(iii) If the control or ownership of Licensee or any of Licensee's
capital stock vests, directly or indirectly, in any person or
entity except the persons or entities who actually own Licensee's
outstanding capital stock as of the date of this License, without
Licensor's prior written consent.
(b) This License will terminate automatically, without notice, if any of
the following occurs:
(i) Licensee is dissolved or its assets are liquidated, or if
Licensee becomes insolvent.
(ii) A bankruptcy proceeding, for a reorganization or for other relief
from the claims of creditors, or any similar proceeding, takes
place with respect to Licensee or its assets.
(c) A termination of the License under this Clause 4 will not limit or
affect any of Licensor's other rights.
(d) Upon the expiration or termination of the Term, all of Licensee's
rights hereunder shall terminate. Licensee shall delete, or cause to be
deleted, the Recordings from any database or computer server which
might be used to transmit, deliver or otherwise distribute the
Recordings to any Approved Sublicensee(s) or Subscribers, and Licensee
shall (and shall procure all Approved Sublicensee(s)) make no further
use whatsoever of the Recordings. Licensee shall destroy all existing
copies of the Recordings and furnish to Licensor an affidavit of
destruction within fifteen (15) days after the end of the Term.
5. NOTICES: All notices under this License will be in writing and will be given
by registered or certified mail, return receipt requested, at the respective
addresses shown above or such other address as either party shall designate.
Notices shall be deemed given when mailed, except that a notice of change of
address shall be effective only from the date of its receipt.
6. MOST FAVORED NATIONS:
If at any time during the Term hereof, Licensee pays any royalty for the
same or equivalent rights as granted herein to any other major international
record companies, or to any agent of the same (including any music industry
rights society), that is greater or more beneficial than the Royalty
specified above, Licensee shall pay such royalty and offer such other
financial terms to Licensor retroactively to the accounting period during
which such higher royalty and other sum(s) are accounted to such other
record companies.
7. WARRANTIES, REPRESENTATIONS, AND INDEMNITIES
(a) With respect to its ownership interests in the Recordings described in
Schedule A,
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Licensor represents, warrants and agrees that it has the full right,
power and authority to enter into this License and to grant to Licensee
all the rights hereunder on the terms and conditions set forth herein.
(b) Licensee warrants, represents and agrees as follows:
(i) Licensee's principal place of business is located within the
People's Republic of China.
(ii) Licensee shall take all steps, if reasonably and commercially
available, to secure and maintain protection of the Recordings,
by way of encryption or otherwise, as permitted pursuant to
copyright and equivalent or similar laws throughout the
Territory.
(iii) Upon written instruction from Licensor, Licensee shall not
license or distribute any Recording to any third party that is
engaged in piracy, illegal activities or other unauthorized use
of the Recordings, or that has otherwise been designated by the
IFPI or other such body as an illegal producer or distributor.
(iv) Licensor owns all right, title and interest, including all the
intellectual property rights, in and to the Recordings. Except as
otherwise expressly stated herein, nothing in this License shall
be construed to grant Licensee any license or right, by
implication, estoppel or otherwise, to any intellectual property
of Licensor, including without limitation, trademarks,
copyrights, patents or trade secrets.
(v) If Licensee becomes aware of any unauthorized use of the
Recordings or other illegal activities concerning Licensor's
rights in the Recordings by any third party, Licensee shall
immediately notify Licensor thereof and shall cooperate with
Licensor (at Licensor's sole expense) in the event that Licensor
commences any action or proceeding against such third party.
(c) Each party hereunder will hold the other party, its successors,
assigns, agents and licensees, free and harmless from and against any
and all claims, demands, damages, expenses, losses or costs (including
reasonable attorney's fees and costs), or any sums paid in settlement,
arising out of or incurred as a direct result of any actual breach of
the representations, warranties, agreements and undertakings of or by
the party concerned.
8. MISCELLANEOUS
(a) No designation, approval, or consent provided for in this License will
be deemed given unless set forth in writing and signed by an authorized
officer or representative of the party concerned.
(b) This License contains the entire understanding of the parties and
cannot be changed, amended or terminated except by an instrument signed
by an officer of each party.
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A waiver of any provision of this License will not waive that provision
for the future or waive any subsequent breach of it. All remedies,
rights, and obligations in this License shall be cumulative and none of
them shall be in limitation of any other remedy, right, or obligation
of either party.
(c) This License shall only be construed in accordance with the substantive
and procedural laws of the Hong Kong Special Administrative Region.
(d) The relationship of the parties is that of independent contractors and
nothing in this License shall render either party an agent of the
other.
(e) This License will not become effective until executed and delivered by
Licensor and Licensee.
Signed: /s/ Richard Denekamp
-------------------------------
For and on behalf of SONY MUSIC (ASIA) INC. ("Licensor")
Name: Richard Denekamp
Position : President
Signed: /S/Raymond Lei Yang
-------------------------------
For and on behalf of LINKTONE CONSULTING LTD. ("Licensee")
Name: Raymond Lei Yang
Position: Chief Executive Officer
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SCHEDULE A
Recording(s): All recordings listed on attached Schedule B.
Licensor acknowledges that Licensee may intend
to use additional recordings from time to time
as ring back tones, and that Licensee will
supply Licensor from time to time with a list of
proposed recordings to be added to Schedule B,
subject to Licensor's written approval.
Term: From 12 May 2003 to 11 November 2003, renewable
for a six-month period starting from 12 November
2003 and ending on 11 April 2004 unless Licensor
gives not less than 1 month prior written notice
to Licensee before the expiry of the initial
term, in which case the term will end on 11
November 2003.
Territory: The People's Republic of China (excluding the
Hong Kong Special Administrative Region, the
Macau Special Administrative Region and the
Taiwan Province)
Approved Sublicensee(s): Shanghai Mobile Communications Corporation and
(Clause 1.1 (a) ) such other mobile operators as Licensor shall
approve in writing from time to time.
Copyright notice: "ALL RIGHT RESERVED - UNAUTHORISED COPYING,
REPRODUCTION, PUBLIC PERFORMANCE AND
BROADCASTING PROHIBITED."
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SCHEDULE B
List of Recordings
<TABLE>
<CAPTION>
No. Titles Artists
------------------------------------------------------------------------------------------
<S> <C> <C>
1 Single Room Double Bed Karen Mok
------------------------------------------------------------------------------------------
2 Love Karen Mok
------------------------------------------------------------------------------------------
3 How much time you give me Karen Mok
------------------------------------------------------------------------------------------
4 If you were Li Bai Karen Mok
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5 Not Definite Karen Mok
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6 Meteor Shower F4
------------------------------------------------------------------------------------------
7 At Once F4
------------------------------------------------------------------------------------------
8 I Really Really Love You F4
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9 Can't Loose You F4
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10 Season of Fireworks F4
------------------------------------------------------------------------------------------
11 Love Zone F4
------------------------------------------------------------------------------------------
12 Te Amo I Love You F4
------------------------------------------------------------------------------------------
13 Me only F4
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14 Ask For More F4
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15 Make a Wish Vic Chou
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16 Love you because I love you Vic Chou
------------------------------------------------------------------------------------------
17 Lonely Winter Vic Chou
------------------------------------------------------------------------------------------
18 How come it is you Vic Chou
------------------------------------------------------------------------------------------
</TABLE>
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<TABLE>
<S> <C> <C>
19 The special existence Vic Chou
-----------------------------------------------------------------------------------------------
20 Rigid for you Vic Chou
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21 SOS Hotline Vic Chou
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22 My Friend Vanessa Wu
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23 Physiological Test Vanessa Wu
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24 Who makes you cry Vanessa Wu
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25 Who do you love if not me Vanessa Wu
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26 Searching of Juliet Vanessa Wu
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27 Body can sing Vanessa Wu
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28 Lonely Plaza Vanessa Wu
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29 See you as friend Ken Chu/ Vanessa Wu
-----------------------------------------------------------------------------------------------
30 Sunny Day Ken Chu
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31 Here We Are Ken Chu
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32 Love will not always wait for you Ken Chu
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33 I Really Really Love You Jerry
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34 Must have you Jerry
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35 Bias Linda
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36 Closet Concert Linda
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37 Want to escape Linda
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38 Julia Leehom Wang
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39 Take Your Time Leehom Wang
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40 Couldn't have missed you Leehom Wang
-----------------------------------------------------------------------------------------------
</TABLE>
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<TABLE>
<S> <C> <C>
41 Revolution and Rotation Leehom Wang
-----------------------------------------------------------------------------------------------
42 Forever First Day Leehom Wang
-----------------------------------------------------------------------------------------------
43 Crying Palm Leehom Wang
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44 Only One Leehom Wang
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45 Love you = Love myself Leehom Wang
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46 You are the one I love Leehom Wang
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47 Heir of dragons Leehom Wang
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48 W-H-Y Leehom Wang
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49 Two people are not us Leehom Wang
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50 Don't be afraid Leehom Wang
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51 Loving you with my life Leehom Wang & Mindy
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52 Pet Boy Coco Lee
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53 Aegean Sea Coco Lee
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54 Sorry Baby Coco Lee
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55 Before I Fall In Love Coco Lee
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56 Di Da Di Coco Lee
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57 So Crazy Coco Lee
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58 Sunny Day Coco Lee
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59 Chinese Opera Actress Coco Lee
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60 Today till forever Coco Lee
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61 Good Mood Coco Lee
-----------------------------------------------------------------------------------------------
</TABLE>
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<TABLE>
<S> <C> <C>
62 You are my Superman Coco Lee
------------------------------------------------------------------------------------------------
63 Every time thinking of you Coco Lee
------------------------------------------------------------------------------------------------
64 Yesterday Love Coco Lee
------------------------------------------------------------------------------------------------
65 Shinny Promise Coco Lee
------------------------------------------------------------------------------------------------
66 Beautiful Foolish Woman Coco Lee
------------------------------------------------------------------------------------------------
67 Real Lover Coco Lee
------------------------------------------------------------------------------------------------
68 Really want to see you Coco Lee
------------------------------------------------------------------------------------------------
69 Awaiting Love to Land Coco Lee
------------------------------------------------------------------------------------------------
70 Answer Coco Lee
------------------------------------------------------------------------------------------------
71 Loving you is my freedom Coco Lee
------------------------------------------------------------------------------------------------
72 Can love you Coco Lee
------------------------------------------------------------------------------------------------
73 Love me longer Coco Lee
------------------------------------------------------------------------------------------------
74 Indication Coco Lee
------------------------------------------------------------------------------------------------
75 Bumping see love Coco Lee
------------------------------------------------------------------------------------------------
76 After Winter Coco Lee
------------------------------------------------------------------------------------------------
77 Love you silently Coco Lee
------------------------------------------------------------------------------------------------
78 Color Coco Lee
------------------------------------------------------------------------------------------------
79 Magic Mirror Coco Lee
------------------------------------------------------------------------------------------------
80 She cries before sleep Coco Lee / Mindy Quah
------------------------------------------------------------------------------------------------
81 Waking up in Autumn Mindy Quah
------------------------------------------------------------------------------------------------
82 Stream Mindy Quah
</TABLE>
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<TABLE>
<S> <C> <C>
83 Love me Mindy Quah
----------------------------------------------------------------------------------------------
84 Ears of the neighbors Mindy Quah
----------------------------------------------------------------------------------------------
85 Broken String Mindy Quah
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86 Note Book Zhou Chuanxiong
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87 Shinny Days Meng Tingwei
----------------------------------------------------------------------------------------------
88 Second Rainbow Meng Tingwei
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89 Single Love Song Terry Lin
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90 Dismiss Terry Lin
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91 Give you some, not give you some Terry Lin
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92 Tears of Mona Liza Terry Lin
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93 When there's no moon Alice Hong
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94 I love summer Tolaku
----------------------------------------------------------------------------------------------
95 LA LA LA Tolaku & Candy Lo
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96 Closer Chris Yu
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97 Xia Sha Chris Yu
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98 May Snow Chris Yu
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99 Subways Chris Yu
----------------------------------------------------------------------------------------------
100 Soup of Granny Meng Chris Yu
----------------------------------------------------------------------------------------------
101 Roaming Dog Chris Yu
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102 Love to the end Chris Yu
----------------------------------------------------------------------------------------------
103 In love with another woman Chris Yu
----------------------------------------------------------------------------------------------
104 The woman downstairs Chris Yu
----------------------------------------------------------------------------------------------
</TABLE>
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<TABLE>
<S> <C> <C>
105 Colour Butterfly Chris Yu
-----------------------------------------------------------------------------------------------
106 Caring person, loving person Joi Tsai & Chris Yu
-----------------------------------------------------------------------------------------------
107 Love like Tides Joi Tsai
-----------------------------------------------------------------------------------------------
108 Express Love Stella Huang
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109 The 7th day after break up Stella Huang
-----------------------------------------------------------------------------------------------
110 Graduation Trip Stella Huang
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111 Meat Patty Kiki Lan
-----------------------------------------------------------------------------------------------
112 Dashes Kiki Lan
-----------------------------------------------------------------------------------------------
113 Love is gone Kiki Lan
-----------------------------------------------------------------------------------------------
114 Tropical Fish Kiki Lan
-----------------------------------------------------------------------------------------------
115 Wale Kiki Lan
-----------------------------------------------------------------------------------------------
116 Candy Kiki Lan
-----------------------------------------------------------------------------------------------
117 Your call Kiki Lan & Tolaku
-----------------------------------------------------------------------------------------------
118 Spirit of the Knights Jolin Tsai
-----------------------------------------------------------------------------------------------
119 See my 72 changes Jolin Tsai
-----------------------------------------------------------------------------------------------
120 Confession of a fake face Jolin Tsai
-----------------------------------------------------------------------------------------------
121 Bragg Square Jolin Tsai
-----------------------------------------------------------------------------------------------
122 Say Love You Jolin Tsai
-----------------------------------------------------------------------------------------------
123 Hey!Hah! Comic Boyz
-----------------------------------------------------------------------------------------------
124 Love perusal reproduction Comic Boyz
-----------------------------------------------------------------------------------------------
125 Superman Heart Comic Boyz
-----------------------------------------------------------------------------------------------
126 I'm still loving you with my heart Pan Mei-chen
-----------------------------------------------------------------------------------------------
</TABLE>
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<TABLE>
<S> <C> <C>
127 I can scarify for you Pan Mei-chen
---------------------------------------------------------------------------------------------
128 Extraordinary Lu Yi
---------------------------------------------------------------------------------------------
129 Confession Lu Yi
---------------------------------------------------------------------------------------------
130 At lease leaving earlier than you do Lu Yi /Candy Lo
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131 I need you Man Wenjun
---------------------------------------------------------------------------------------------
132 Story Man Wenjun
---------------------------------------------------------------------------------------------
133 Beautiful you Man Wenjun
---------------------------------------------------------------------------------------------
134 Loved, Dismissed Da Di
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135 Fire in Heart Da Di
---------------------------------------------------------------------------------------------
136 Close Lover Wang Ziming
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137 Unfamiliar Yang Yun
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138 Remember Han Xue
---------------------------------------------------------------------------------------------
139 Boom Anastacia
---------------------------------------------------------------------------------------------
140 One Heart Celine Dion
---------------------------------------------------------------------------------------------
141 Have You Ever Been In Love Celine Dion
---------------------------------------------------------------------------------------------
142 A New Day Has Come (Radio Remix) Celine Dion
---------------------------------------------------------------------------------------------
143 I'm Alive Celine Dion
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144 Goodbye's (The Saddest Word) Celine Dion
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145 Insatiable Darren Hayes
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146 All I Have Jennifer Lopez
---------------------------------------------------------------------------------------------
147 Jenny From The Block Jennifer Lopez
---------------------------------------------------------------------------------------------
148 Alive Jennifer Lopez
---------------------------------------------------------------------------------------------
</TABLE>
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<TABLE>
<S> <C> <C>
149 Let's Get Aloud Jennifer Lopez
---------------------------------------------------------------------------------------------
150 The Ketchup Song (Asereje) Las Ketchup
---------------------------------------------------------------------------------------------
151 I Need To Know Marc Anthony
---------------------------------------------------------------------------------------------
152 You Rock My World Michael Jackon
---------------------------------------------------------------------------------------------
153 Whenever, Wherever Shakira
---------------------------------------------------------------------------------------------
</TABLE>
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SONY MUSIC (ASIA) INC.
SUITES 2801-13, 28TH FLOOR, CITIC TOWER, NO. 1 TIM MEI AVENUE, ADMIRALTY,
HONG KONG
TEL: 2864-6200 Fax: 2864-6222
Dated as of 11th November, 2003
Shanghai Linktonc Consulting Co:, Ltd.
Harbour Ring Plaza
6th Floor, 18 Xi Zang Zhong Road
Shanghai 200001
People's Republic of China
Attn: Mr. Raymond Yang. CEO
Dear Sirs,
RING BACK TONE LICENSE AGREEMENT DATED AS OF 6TH MAY, 2003
We refer to the ring back tone license agreement dated as of 6th May, 2003
between ourselves as licensor and yourselves as licensee, as it may be amended
in writing from time to time (the "License Agreement"). Terms defined in the
License Agreement shall have the same meaning when used herein.
We are writing to confirm that we agree to renew the Term of the Agreement for 6
months (ie., until 11th May, 2004, hereafter the "Renewed Term"), subject to the
following conditions:
1. You will pay us quarterly advances (each an "Advance") effective from
1st January, 2004. The amount of each Advance shall be equal to the
Royalty payable by you to us in the preceding calendar quarter and the
Advance shall be paid when you account Royalty to us for March, June,
September or December (as the case may be) pursuant to clause 3 of the
License Agreement and the first Advance shall be due in January 2004.
Each Advance paid is not refundable, but is recoupable from all the
Royalty payable by you to us under clause 3 of the License Agreement
during the relevant calendar quarter. For instance, when you account
Royalty to us for December 2003 in January 2004 pursuant to clause 3 of
the License Agreement, you have to pay us at the same time an Advance
equal to all the Royalty paid or payable by you to us for the period
from 1st October to 31st December, 2003 and that such Advance is only
recoupable from the Royalty payable by you to us during the period 1st
January to 31st March, 2004. The
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amount of Advance will be pro-rated for the remainder of the Term which
is shorter than a calendar quarter.
2. We have the right to terminate the exclusivity of this Agreement by
giving you 7 days of prior written notice if the ring back tone service
is also available directly through any content providers (rather than
through mobile operators atone).
3. The automatic renewal option provided for under the heading "Term" in
schedule A of the License Agreement is not applicable in the Renewed
Term.
4. You will continue to comply with your obligations under the License
Agreement and that you will also procure the Sub-licensees to comply
with the terms of the License Agreement to the extent that such terms
are applicable to them during the Renewed Term.
Save as amended hereunder, the License Agreement shall remain in full force and
effect. Please confirm your agreement to the above by signing and returning the
duplicate copy of this letter to us.
Yours faithfully,
For and on behalf of
Sony Music (Asia) Inc.
/s/ Richard Denekamp
----------------------------
President
Agreed and accepted.
For and on behalf of
Shanghai Linktone Consulting
Co., Ltd.
/s/ Raymond Yang
---------------------------
CEO
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