EXHIBIT 10.2
Placement Agreement
between
7-Eleven, Inc.
and
Cardtronics, LP
July 20, 2007
Table of Contents
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1.
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Background |
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2.
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Definitions |
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3.
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Installation of Financial Services
Kiosks in Stores |
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4.
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Equipment |
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5.
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Maintenance of Financial Services
Kiosks |
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6.
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Personnel |
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7.
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Cardtronics Services |
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8.
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Payments and Consideration |
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9.
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Intellectual Property and
Software |
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10.
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Confidentiality and Information
Security |
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11.
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Advertising and Marketing |
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12.
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POS Non-Exclusivity and
Non-Solicitation |
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13.
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Contract and Project Management |
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14.
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Regulatory Compliance |
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15.
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Title; Risk of Loss; Taxes |
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16.
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Insurance and Indemnity |
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17.
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Reporting and Audit Rights |
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34 |
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18.
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Term and Termination |
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34 |
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19.
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General |
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Schedules
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Schedule A
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Financial Services |
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Schedule B
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Financial Services Kiosks Deployed at
Effective Date |
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Schedule C
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Financial Services Kiosk Physical
Requirements |
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Schedule D
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Service Levels and Liquidated
Damages |
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Schedule E
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Payment and Consideration for
Financial Services |
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Schedule F
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Periodic Reports |
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Schedule G
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Quarterly Meetings |
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Schedule H
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Obligations Related to Financial
Network Contracts |
Placement Agreement
This PLACEMENT AGREEMENT is executed
on this 1st day of June, 2007 (the “Effective Date”),
by and between 7-Eleven, Inc., a Texas corporation
(“7-Eleven”), with principal offices at 1722 Routh
Street, Suite 1000, Dallas, TX 75201, and Cardtronics, LP, a
Delaware limited partnership (“Cardtronics”) with
principal offices at 3110 Hayes Road, #300, Houston, Texas
77082.
7-Eleven, Inc. and Cardtronics, in consideration of the mutual
promises set forth herein, and other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties agree as follows:
1.
Background.
1.1
Background and Objectives of the Parties .
(a) The Parties have entered into the Purchase Agreement as of
the Effective Date. The Parties are entering into this Agreement
contemporaneously with the Purchase Agreement.
(b) Cardtronics desires to maintain existing and install new
Financial Services Kiosks in the Stores and offer the Financial
Services via the Financial Services Kiosks, and receive the
revenues therefrom, all in accordance with the terms and conditions
of this Agreement.
(c) 7-Eleven desires to receive compensation for allowing the
Financial Services Kiosks to be placed in the Stores in accordance
with the terms and conditions of this Agreement.
1.2
Construction . The provisions of this Section 1
are intended to be a general introduction to this Agreement and are
not intended to be binding on the Parties.
2.
Definitions.
For
purposes of this Agreement, the following capitalized terms shall
have the meanings ascribed thereto. Other capitalized terms used in
this Agreement are defined in the context in which they are used
and shall have the meanings therein indicated.
2.1
“Accessway” shall mean the area immediately adjacent to
a Financial Services Kiosk reasonably necessary for a customer to
access and use the Financial Services Kiosk.
2.2
“Advanced Financial Services Functionality” shall mean
advanced financial and other kiosk based service offerings
excluding ATM Functionality which as of the Effective Date consist
of: check cashing, money transfer, bill payment, deposit taking
capabilities, and coupon or other promotional activities via
receipt printing or usage of screens, financial institution guest
member verification, financial institution balance and history
print, financial institution account transfers (including share to
share, share to loan, loan to loan, loan to share), financial
institution cash advances (cash only), and financial institution
loan payment (cash only and check where available).
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2.3
“Advanced Financial Services Minimums” shall mean that
there are installed and Cardtronics is operating Financial Services
Kiosks with Advanced Financial Services Functionality in no fewer
than: 75% of Stores by the fourth anniversary of the Effective
Date.
2.4
“Affiliate” shall mean, with respect to any person, any
other person controlling, controlled by or under common control
with such person. The term “Affiliate” shall not
include franchisees or area licensees of 7-Eleven.
2.5
“Agreement” shall mean this Placement Agreement,
together with all schedules, exhibits and attachments hereto, and
any modification or amendment thereto made in accordance with the
terms hereof.
2.6
“ATM Functionality” means traditional automated teller
machine functions including cash withdrawals, balance inquiries,
account transfers, credit and/or debit card cash advances,
transaction denials, or any other functions agreed to in writing by
both Parties.
2.7
“Branding Partners” means those parties in contractual
arrangements with 7-Eleven as of the Effective Date which permit
such party to use a 7-Eleven mark in association with a Financial
Services Kiosk, including but not limited to FSCC, Coop, Citi and
TCF. 7-Eleven may agree to designate additional Branding
Partners.
2.8
“Can Sign” shall have the meaning set forth in
Section 11.1 .
2.9
“Cardtronics Facilities” shall mean all locations where
Financial Services Kiosks are installed other than Stores.
2.10
“Cardtronics Marks” shall have the meaning set forth in
Section 9.3(a) .
2.11
“Cardtronics Services” shall mean the Financial
Services and other services provided by Cardtronics in accordance
with this Agreement.
2.12
“Cardtronics Software” shall mean and include the
software that is both (i) owned by or licensed to Cardtronics
or its Affiliates, or their respective subcontractors or third
party vendors, as of the Effective Date, or subsequently developed
by Cardtronics or its Affiliates (or by third party vendors for
Cardtronics or its Affiliates), or their respective subcontractors
or third party vendors, and any new software subsequently purchased
or licensed by Cardtronics or its Affiliates, or their respective
subcontractors, from third parties, including (to the extent such
right to the software was given to Cardtronics or its Affiliates or
their respective subcontractors as part of the purchase or
license), source code, object code and documentation relating to
such software and any modifications, enhancements, revisions or
supplements to such owned, developed, purchased or licensed
software from time to time, and (ii) used to provide the
Financial Services. As between the Parties and their Affiliates,
Cardtronics shall own all right, title and interest in and to the
Cardtronics Software.
2.13
“Claims” shall have the meaning set forth in
Section 16.4 .
2.14
“Competitor” shall mean any entity that sells grocery
and/or prepared food products or other basic products and services,
including gasoline, emphasizing convenience, in a manner
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substantially similar to 7-Eleven, including but limited to
convenience store operations, retail gasoline/convenience
facilities operated by either major oil companies or retail
companies, either forecourt or off premises, and drugstores. By way
of example, while not intended to be an exhaustive list, the
following are examples of companies classified as Competitors of
7-Eleven; (i) any location selling gasoline that also offers
convenience products; (ii) drugstores such as
Walgreen’s, CVS, and Rite Aid; and (iii) any convenience
store.
2.15
“Confidential Information” shall have the meaning set
forth in Section 10.1 .
2.16
“Customer Data” shall mean and include all Transaction
or membership data and personally identifying or other customer
information (such as names, addresses, social security numbers,
dates of birth, home or work telephone numbers and employers)
obtained as a direct result of a person’s registration for,
purchase, attempted purchase and/or utilization of, the Financial
Services on or via the Financial Services Kiosks . As
between the parties, any Customer Data obtained as a result of the
Cardtronics Services shall be owned by Cardtronics.
2.17
“Disclosing Party” shall have the meaning set forth in
Section 10.1 .
2.18
“Effective Date” is the date defined as such in the
first paragraph of this Agreement.
2.19
“Exclusive Rights” shall have the meaning set forth in
Section 3.1 .
2.20
“Financial Services” shall mean the ATM Functionality
and Advanced Financial Services Functionality services and products
offered via the Financial Services Kiosks as set forth on
Schedule A , and any other services and products
offered via the Financial Services Kiosks in accordance with the
terms and conditions of this Agreement.
2.21
“Financial Services Change” shall have the meaning set
forth in Section 7.2 .
2.22
“Financial Services Kiosk” shall mean each kiosk
(including hardware and software) together with any and all other
equipment, fixtures, and signage (if affixed to the Financial
Services Kiosk or part of the surround) used to provide either ATM
Functionality or Advanced Financial Services Functionality.
2.23
“Financial Services Kiosk Area” shall mean that space
within a Store necessary for placement of the Financial Services
Kiosk, which shall be designated in accordance with
Section 3.8 .
2.24
“Financial Services Kiosk Project” shall mean the
development, installation, testing, operation and maintenance of
Financial Services Kiosks.
2.25
“Franchisee Amendment” shall have the meaning set forth
in Section 3.2 .
2.26
“Intellectual Property Rights” shall mean all
industrial, intellectual property or other rights of a person in,
to or arising out of (a) United States or foreign patents and
all corresponding rights throughout the world, or applications
therefor and all reissues, divisions, continuations, renewals,
extensions and continuations-in-part thereof, (b) inventions
(whether patentable or not in any country), ideas, conceptions
(including invention disclosures and
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whether
or not reduced to practice), industrial designs, improvements,
trade secrets, proprietary information, know-how, technology and
technical data, (c) copyrights, mask works, copyright
registrations, mask work registrations and applications therefor in
the United States or any foreign country, and all other rights
corresponding thereto throughout the world, (d) United States
or foreign registered or common law trademarks, service marks,
trade dress, trade names, logos, intent-to-use registrations or
notices, and applications to register or use any of the foregoing
anywhere in the world, (e) trade secrets and Confidential
Information, (f) any other proprietary rights in technology,
including software, all source and object code, algorithms,
architecture, structure, display screens, layouts, inventions,
development tools and all documentation and media constituting,
describing or relating to the above, including, without limitation,
manuals, memoranda, records, business information, or trade marks,
trade dress or names, anywhere in the world, and all rights
necessary for the worldwide development, manufacture, modification,
enhancement, creation of derivatives thereof, sale, licensing, use,
reproduction, publishing and display of such technology or other
asset and all modifications and enhancements thereto and
derivatives thereof and (g) all rights to sue or recover and
retain damages, costs and attorneys’ fees for present and
past infringement of any of the foregoing.
2.27
“Minimum Store Commitment” shall have the meaning set
forth in Section 3.7 .
2.28
“Party” shall mean either 7-Eleven or Cardtronics and
“Parties” means both 7-Eleven and Cardtronics.
2.29
“Person” shall mean an individual, corporation,
partnership, limited liability company, association, trust,
unincorporated organization or other entity.
2.30
“Purchase Agreement” shall mean the Asset Purchase
Agreement of even date herewith between the Parties for the sale by
7-Eleven and Vcom Financial Services, Inc. to Cardtronics of assets
relating to the Financial Services Kiosk Project and an assumption
of certain liabilities related to such assets.
2.31
“Receiving Party” shall have the meaning set forth in
Section 10.1 .
2.32
“Remodeling” shall mean removal, rearrangement and/or
addition of shelving or other merchandising equipment and
facilities, the installation of electrical, data communication, and
other service with appurtenant outlets and any other improvements
or alterations necessitated by installation, preparation or
construction of a Financial Services Kiosk Area, in an existing
Store. For the avoidance of doubt, build out of a new Store shall
not constitute Remodeling.
2.33
“Removal” shall mean the removal of a Financial
Services Kiosk upon expiration or termination of this Agreement
pursuant to Section 18.7 .
2.34
“Root Cause Analysis” means the formal process used by
Cardtronics to diagnose the underlying cause of problems at the
lowest reasonable level so that corrective action can be taken that
shall eliminate repeat failures.
2.35
“7-Eleven Marks” shall have the meaning set forth in
Section 9.3(b) .
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2.36
“Service Level Credits” means the liquidated damages to
which 7-Eleven is entitled (including any applicable multipliers)
when Service Level Defaults occur as set forth in
Schedule D .
2.37
“Service Level Default” means a failure to achieve the
Service Level or failure to avoid Increased Impact specified in
Schedule D .
2.38
“Service Levels” means the standards for performance,
availability, reliability, quality and responsiveness that
Cardtronics will be required to meet in Cardtronics’s
performance of the Cardtronics Services as set forth in
Schedule D .
2.39
“Stores” shall mean the 7-Eleven corporate operated
stores and 7-Eleven franchisee stores in the Territory (which
Stores are identified on Schedule B hereto), together
with all additional convenience stores or franchises in the
Territory acquired or controlled by 7-Eleven after the Effective
Date of this Agreement, whether or not such convenience stores or
franchises are branded as “7-Eleven” stores, but
excluding certain stores excluded pursuant to the terms of
Section 3.2 , as well as all stores consisting of less
than 500 square feet, except that any such stores of less than 500
square feet which by mutual written agreement are designated as
constituting Stores shall nevertheless qualify as
“Stores”.
2.40
“Taxes” shall mean taxes, assessments, fees and other
governmental charges imposed on or with respect to the ownership
and operation of the Financial Services Kiosks, including income,
profits, gross receipts, net proceeds, ad valorem, value added,
turnover, sales, use, property, personal property (tangible and
intangible), environmental, stamp, leasing, lease, user, excise,
duty, franchise, transfer, registration, license, withholding,
social security (or similar), unemployment, disability, payroll,
employment, excess profits, occupational, severance, estimated or
other charge of any kind whatsoever, including any interest penalty
or additions thereto, whether disputed or not ; provided,
however, that in no event shall Taxes include or be deemed to
include (i) property or ad valorem taxes related to any
tangible property or asset not sold and conveyed to Cardtronics in
accordance with the Purchase Agreement, or (ii) any income,
franchise, margin or other taxes of any kind assessed upon income
or revenues of 7-Eleven or its franchisees, including but not
limited to income or revenues received by 7-Eleven or its
franchisees in respect of the Financial Services Kiosks.
2.41
“Term” shall have the meaning set forth in
Section 18.1 .
2.42
“Territory” shall mean the United States of
America.
2.43
“Transaction” shall mean the execution of a transaction
by a customer on a Financial Services Kiosk, including by way of
example, and without limitation, a cash withdrawal, balance
inquiry, account transfer, cashing of a check, bill payment or
purchase of telecommunications products by a person at a Store
using a Kiosk.
2.44
“Transaction Fees” shall have the meaning set forth in
Section 8.1 .
2.45
“Vault Cash” shall mean cash contained in a Financial
Services Kiosk.
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2.46
“Vault Cash Loss” means a single occurrence of the loss
of Vault Cash in excess of [CONFIDENTIAL MATERIAL OMITTED AND
FILED SEPERATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO A CONFIDENTIALITY TREATMENT REQUEST] from a single
Financial Services Kiosk. Vault Cash Losses include stolen, lost or
destroyed Vault Cash and negotiable instruments. Vault Cash Losses,
to the extent that they are not directly attributable to 7-Eleven
or its franchisees, or its or their employees or agents, as
provided in Section 15.2 , does not include any loss of
Vault Cash occurring outside the Financial Services Kiosk, such as
losses occurring to Vault Cash while in transit or in storage at a
vault or similar location away from a Store. The amount of a Vault
Cash Loss does not include the face value of stolen, lost or
destroyed negotiable instruments or other non-cash items of value,
or to the extent that they are not directly attributable to
7-Eleven or its franchisees, or its or their employees or agents,
as provided in Section 15.2 , any loss of any nature to
the extent such loss results from (a) equipment malfunction;
(b) mistakes in Financial Services Kiosk loading including,
without limitation, currency dispensed due to misloaded
denominations, misconfigured cassettes, or misloaded cassettes;
(c) currency dispensed due to mistake or fraudulent
instruction manually or electronically transmitted to the Financial
Services Kiosk; (d) discrepancies between network reports and
Financial Services Kiosk bill counter totals (in the event of such
discrepancies, bill counter totals will be deemed conclusive); (e)
Cardtronics’ mistakes in verification; (f) access by
third persons (i.e. persons other than 7-Eleven or its franchisees,
or its or their employees or agents), whether authorized or
unauthorized, unless such access was made possible by the
intentional act or omission of 7-Eleven or its franchisees, or its
or their employees or agents, described in Section 15.2
); (g) the use of magnetic debit and credit cards; (h) the
presence of excess currency (commonly called “side
cash”), or items of value not specifically intended to be
present at the Financial Services Kiosk location;
(i) burglary; or (j) damage from breakage and
vandalism.
2.47
“Vault Cash Loss Liability Limit” means the maximum
amount of 7-Eleven’s liability for a Vault Cash Loss and such
amount is [CONFIDENTIAL MATERIAL OMITTED AND FILED SEPERATELY
WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A
CONFIDENTIALITY TREATMENT REQUEST] per Vault Cash Loss.
2.48
“Viruses” shall mean viruses, contaminants or similar
items.
3. Installation of Financial Services Kiosks in
Stores.
3.1
Financial Services Kiosk Exclusivity .
(a) Subject to the other terms and conditions herein,
Cardtronics shall have the exclusive right to install and operate
Financial Services Kiosks offering Advanced Financial Services
Functionality and the exclusive right to install and operate
Financial Services Kiosks providing only ATM Functionality in each
Store (which shall be deemed to include the leasehold or property
which is part of the operation of the retail 7-Eleven Store) for a
period of ten (10) years. Cardtronics shall provide 7-Eleven
written notice if it intends to temporarily or permanently cease
providing Advanced Financial Services Functionality in whole or in
part. Notwithstanding anything to the contrary in this
Section 3.1(a) : (i) if at any time Cardtronics is
no longer operating any Financial Services Kiosks with Advanced
Financial Services Functionality, its
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exclusive rights as to Advanced Financial Services Functionality
shall terminate and 7-Eleven may thereafter install and operate
Financial Services Kiosks offering Advanced Financial Services
Functionality (but not ATM Functionality); (ii) if at any time
after the fourth anniversary of the Effective Date, Cardtronics is
no longer offering a product or service as part of Advanced
Financial Services Functionality in at least enough Stores to meet
the Advanced Financial Services Minimums, its exclusive rights as
to that product or service shall terminate and 7-Eleven may
thereafter install and operate Financial Services Kiosks offering
such product or service (but not ATM Functionality or other
products or services to which Cardtronics maintains exclusivity
rights); and (iii) if Cardtronics has not installed Financial
Services Kiosks with Advanced Financial Services Functionality in
all Stores after the fourth anniversary of the Effective Date, and
Cardtonics has failed to meet the Advanced Financial Services
Minimums, and Cardtronics has not obtained 7-Eleven’s
approval of Cardtronics’ plan to install Financial Services
Kiosks with Advanced Financial Services Functionality in the
remaining Stores, its exclusive rights as to such Stores where no
Financial Services Kiosks with Advanced Financial Services
Functionality have been installed shall terminate. With respect to
(ii) or (iii), if Cardtronics wants to retain the applicable
exclusivity, Cardtronics will present a plan prior to the end of
the four year period and obtain 7-Eleven’s approval of such
plan. 7-Eleven will not unreasonably withhold, condition, or delay
such approval.
(b) With respect to any acquisitions or franchise arrangements
wherein 7-Eleven acquires Stores after the Effective Date with
existing ATM obligations and/or 7-Eleven has not yet installed or
converted such locations to the 7-Eleven network infrastructure,
network and utility facilities, and taken any other necessary
actions required of 7-Eleven hereunder in order to enable
Cardtronics to install and operate Financial Services Kiosks in
such Stores, Cardtronics’ exclusive right to install and
operate Financial Services Kiosks in such Stores shall not apply
until (i) such existing ATM obligations have expired,
(ii) 7-Eleven has converted such Store to the 7-Eleven network
infrastructure or Cardtronics has agreed to arrange for alternative
communications infrastructure at its sole expense (such agreement
at Cardtronics sole and exclusive discretion); and
(iii) Cardtronics has installed and is operating a Financial
Services Kiosk in such newly acquired Store(s). 7-Eleven agrees to
provide Cardtronics notice as to all such locations when the
conditions of both (i) and (ii) have been satisfied.
7-Eleven agrees not to extend or otherwise renew any such existing
ATM obligations as described herein. For avoidance of doubt, after
Cardtronics has received the notice as contemplated herein that it
can install a Financial Services Kiosk in accordance with this
Section, 7-Eleven shall have no obligation to remove any existing
ATMs in Stores after pre-existing obligations have expired until
Cardtronics has installed and is operating a Financial Services
Kiosk at such location unless space limitations in the Store
require the removal of the existing ATM in order to install the
Financial Services Kiosk. If space limitations in the Store require
the removal of the existing ATM in order to install the Financial
Services Kiosk, Cardtronics shall notify 7-Eleven when it has a
Financial Services Kiosk ready to install, and the parties shall
reasonably cooperate to schedule and perform the removal of the
existing ATM by the ATM vendor and installation of the Financial
Services Kiosk by Cardtronics in a manner that results in minimum
ATM downtime and impact to ATM availability for 7-Eleven customers.
All Cardtronics’ rights in this Section 3.1 shall
be referred to as the “Exclusive Rights”.
(c) In the event that 7-Eleven exercises it right to terminate
either this Agreement or any Store location in accordance with this
Agreement or Schedule D , the Exclusive Rights granted
in
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this
Section 3.1 shall likewise terminate.
3.2
Financial Services Kiosk Installation . Subject to the other
terms and conditions herein, Cardtronics shall install, operate and
maintain one or more Financial Services Kiosks with ATM
Functionality in the Financial Services Kiosk Area in each Store,
except that either party may request approval of the other party
for the exclusion of any Store from these obligations if the
Financial Services Kiosk has repeatedly been subject to vandalism
or burglary (which approval shall not be unreasonably withheld,
conditioned or delayed), and upon such approval, such Stores shall
be deemed excluded from such obligations and from Cardtronics
Exclusive Rights and all other rights. For security reasons,
Cardtronics shall have the right to bolt Financial Services Kiosks
to the floors of Stores. However, in no event shall Cardtronics be
obligated to install any Financial Services Kiosks in any Stores
from and after such time when there shall remain three
(3) years or less in the Term, taking into account any renewal
of the Term pursuant to Section 18.2 ; and provided,
further, that Cardtronics’ Exclusive Rights and all other
rights and obligations under this Agreement shall terminate as to
that Store, and any new Stores opened thereafter, upon its election
not to install, operate or maintain a Financial Services Kiosk as
to such Store pursuant to and as provided in this sentence.
Notwithstanding any requirement to the contrary, Cardtronics may
(but shall not be obligated to) install Financial Services Kiosks
with Advanced Financial Services Functionality in addition to ATM
Functionality, in each corporate-operated Store and, if the
franchisee has executed a Franchisee Amendment as contemplated in
Section 3.4 , in such franchisee-operated Store.
Notwithstanding the foregoing, but subject as hereinafter provided,
Cardtronics shall not have any right or option to install a
Financial Services Kiosk in a Store, and such right or option shall
not apply, for so long as 7-Eleven is subject to any conflicting
contractual or other legal restriction, or if such Store has
physical limitations, preventing or materially limiting the
operation of a Financial Services Kiosk in such Store; provided,
however, that the foregoing provisions of this sentence shall be
inapplicable with respect to any Store in which a Financial
Services Kiosk is located as of the date of this Agreement. For
Stores opened after the Effective Date, 7-Eleven shall give
Cardtronics sixty (60) days notice of the date on which a
Financial Services Kiosk is to be installed, and Cardtronics shall
install and operate a Financial Services Kiosk in the Financial
Services Kiosk Area of the Store within thirty (30) days if
such Store was included in the preceding quarterly forecast, and
within sixty (60) days if such Store was not included in the
preceding quarterly forecast (“Install Date”). In order
to insure that the Financial Services Kiosk is operating upon the
opening or conversions of a Store, 7-Eleven and Cardtronics will
use good faith efforts to mutually develop a rolling forecast on a
quarterly basis, estimating 7-Eleven’s required Financial
Services Kiosk needs, as well as the need for the installation of
Financial Services Kiosk by Cardtronics, based on 7-Eleven’s
anticipated number of new Stores and Store closures during the Term
of this Agreement. The mutual forecast provided herein will
represent the parties’ estimate of 7-Eleven’s
requirements; provided that, nothing herein shall obligate
Cardtronics to supply any such Financial Services Kiosks until
Notice as provided in Section 3.4 is actually provided
by 7-Eleven. 7-Eleven makes no warranty as to the accuracy or
completeness of the Forecasts. Cardtronics acknowledges and agrees
that the Forecasts are solely for informational purposes and that
the Forecasts will not obligate 7-Eleven in any manner. If either
(a) Cardtronics refuses or fails to timely install or operate
a Financial Services Kiosk in a Store when required to do so in
accordance with the terms of this Agreement, or
(b) Cardtronics fails to provide the maintenance services set
forth in Section 5 herein as to a Financial Services
Kiosk in a Store, then (i) subject to and in accordance with
Section 18.3 , 7-Eleven may terminate
Cardtronics’
8
Exclusive Rights and all other rights and obligations hereunder
with respect to such Store in the same manner and with the same
effect as if such date were the expiration date of this Agreement
as to such Store, and (ii) Cardtronics shall remove any
Financial Services Kiosk from such Store in accordance with
Section 18.7 herein.
3.3
Advanced Financial Services Functionality. In addition to
other elections which may be made by Cardtronics in its good faith
business judgment pursuant to this Agreement as provided above,
Cardtronics may in its good faith business judgment elect to
replace the existing Financial Services Kiosks providing Advanced
Financial Services Functionality in some or all of the Stores in
which same are located, with Financial Services Kiosks not offering
Advanced Financial Services Functionality, or to otherwise
discontinue the offering of Advanced Financial Services
Functionality, and to decline to install new Financial Services
Kiosks providing Advanced Financial Services Functionality in
future installations, and to instead install Financial Services
Kiosks not providing Advanced Financial Services
Functionality.
3.4
Lessor Consents and Franchisee Participation . Cardtronics
expressly acknowledges that certain of the Stores may be leased by
7-Eleven or its Affiliates or operated by 7-Eleven’s
franchisees, or both. Any such Store existing on the Effective Date
and not listed on Schedule B shall also be subject to the
Exclusive Rights and terms and conditions set forth in
Section 3.1 unless (i) in the case of a leased
Store, the lessor has not consented, if necessary under the terms
of the lease, to the installation and operation of a Financial
Services Kiosk, and (ii) in the case of a franchised Store,
the franchisee has not executed a franchisee amendment providing
for the installation and operation of a Financial Services Kiosk in
such Store, in a form reasonably acceptable to 7-Eleven (a
“Franchisee Amendment”). 7-Eleven shall request, and
shall use good faith efforts to obtain, such consents and
Franchisee Amendments, but 7-Eleven’s failure to obtain any
such consents or Franchisee Amendments despite such request and
efforts shall not constitute a default under this Agreement.
Nothing in this Section 3.4 shall require 7-Eleven to
expend any out of pocket amounts, or incur any additional
obligation or liability, for the purpose of securing a lessor
consent or a Franchisee Amendment. Other than the lessor or
franchisee consents, Cardtronics shall be responsible for obtaining
any consents, licenses, permits or approvals necessary to install
and operate Financial Services Kiosks and provide Financial
Services, but Cardtronics shall have no obligation to obtain any of
the consents, licenses, permits and approvals necessary to build,
alter, occupy, use or operate the Stores.
3.5
Transition of ATM Services to Cardtronics . The Parties
shall adhere to any procedures, schedules and requirements as may
be mutually agreed in a transition plan executed by both parties
describing the transition of the Financial Services to Cardtronics
(the “Transition Plan”).
3.6
Installation of Financial Services Kiosks . Cardtronics
shall minimize disturbances to Store operations during
Cardtronics’ installation of any Financial Services Kiosks.
Such installation shall not take place during any period of peak
operation of the Store as reasonably designated by 7-Eleven by
prior notice to Cardtronics. Cardtronics and 7-Eleven shall
mutually agree on the schedule for installation, removal, or
movement of any Financial Service Kiosk. Cardtronics and 7-Eleven
shall work together to allow 7-Eleven adequate time to address
communications, POP, advertising, etc. with respect to the
applicable Functionality that exists on the Financial Service Kiosk
in each location.
9
3.7
Store Commitment. 7-Eleven agrees that Cardtronics’
Exclusive Rights in this Agreement shall apply to at least
[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPERATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A CONFIDENTIALITY
TREATMENT REQUEST] Stores during the Term (“Minimum Store
Commitment”). In the event that due to any Store closing, or
any sale of a Store to a purchaser who or which does not assume
7-Eleven’s obligations under this Agreement as applicable to
such Store, there are not sufficient Stores available to
Cardtronics to meet the Minimum Store Commitment in accordance with
this Agreement during the period after the Effective Date and prior
to termination of Cardtronics’ rights as to such Store under
this Agreement, 7-Eleven shall pay Cardtronics the amount of
[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPERATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A CONFIDENTIALITY
TREATMENT REQUEST] per month for each Store below the Minimum
Store Commitment which was not available to Cardtronics, for each
full month from and after such reduction below the Minimum Store
Commitment until the date on which sufficient Stores are available
to meet the Minimum Store Commitment again, as liquidated damages
for 7-Eleven’s failure to meet the Minimum Store Commitment.
Further, the Southwest Convenience Store locations shall at all
times count towards the Minimum Store Commitment and in the event
that the Store count falls below [CONFIDENTIAL MATERIAL OMITTED
AND FILED SEPERATELY WITH THE SECURITIES AND EXCHANGE COMMISSION
PURSUANT TO A CONFIDENTIALITY TREATMENT REQUEST] after the
[CONFIDENTIAL MATERIAL OMITTED AND FILED SEPERATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A CONFIDENTIALITY
TREATMENT REQUEST] year of the Term, all locations once
Cardtronics has declined to install a Financial Services Kiosk
shall also count towards the Minimum Store Commitment. The Minimum
Store commitment shall be reduced by one for each Store at which
Cardtronic’s Exclusive Rights are terminated pursuant to this
Agreement. Further, the Minimum Store Commitment shall be
temporarily reduced for each Store subject to payments of
liquidated damages under Section 3.9(b) .
3.8
Financial Services Kiosk Area . 7-Eleven shall designate the
Financial Services Kiosk Area in each Store in its sole discretion,
except that such location must be in the merchandising area and
comply with the specifications as set forth on
Schedule C . 7-Eleven hereby grants Cardtronics a
limited license to use the Financial Services Kiosk Area solely to
install and operate the Financial Services Kiosks, and exercise and
perform its other rights and obligations under this Agreement,
during (and as and solely to the extent contemplated by this
Agreement, after) the Term and for no other purpose.
3.9
Remodeling Etc.
(a) If Remodeling is required (due to the type of kiosk, the
type of required surround or any other Cardtronics requirements)
for the installation of any Financial Services Kiosk in any
Financial Services Kiosk Area, Cardtronics shall so notify
7-Eleven, and 7-Eleven shall, in coordination with Cardtronics,
(a) prepare all necessary building and construction plans and
specifications, (b) obtain all necessary permits, licenses and/or
approvals and (c) complete the Remodeling. Cardtronics shall
promptly reimburse 7-Eleven for all necessary out of pocket costs
incurred by 7-Eleven in connection with Remodeling. 7-Eleven shall
reasonably cooperate with
10
Cardtronics in regards to any necessary removals, moves or
reinstallations of Financial Services Kiosks.
(b) If 7-Eleven or any of its franchisees remodels,
reconstructs, improves, alters or relocates (“Updates”)
any Financial Services Kiosk Area, or any Store location that will
impact any Financial Services Kiosk Area, 7-Eleven shall so notify
Cardtronics, and Cardtronics shall, in coordination with 7-Eleven,
coordinate any necessary removals, moves, and/or reinstallations.
In the event that 7-Eleven chooses to Update a substantial number
of stores (more than [CONFIDENTIAL MATERIAL OMITTED AND FILED
SEPERATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
A CONFIDENTIALITY TREATMENT REQUEST] of the Stores) at the same
time, and such remodeling is not due to circumstances beyond
7-Eleven’s reasonable control, and such Updates require the
Stores to be closed for [CONFIDENTIAL MATERIAL OMITTED AND FILED
SEPERATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
A CONFIDENTIALITY TREATMENT REQUEST] or more consecutive days,
then 7-Eleven, as Cardtronics sole and exclusive remedy, shall pay
Cardtronics liquidated damages in the sum of $ [CONFIDENTIAL
MATERIAL OMITTED AND FILED SEPERATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION PURSUANT TO A CONFIDENTIALITY TREATMENT
REQUEST] per Store per day.
(c) In all other events, the party either requesting or
causing the necessity for a removal, move, and/or reinstallation
shall bear the costs, including costs of removal, shipment and
storage.
3.10
Store Closings . In the event that (a) 7-Eleven, in its
sole discretion, permanently ceases retail operation of a Store,
(b) an applicable law or regulation prevents, prohibits or
materially restricts a Store from operating a Financial Services
Kiosk or (c) a Franchisee Amendment terminates, then in each
case 7-Eleven’s and Cardtronics’ obligations under this
Agreement with regard to such Store shall terminate as of the date
of such cessation of operation, date of effectiveness of the law or
termination, as applicable. 7-Eleven shall provide Cardtronics with
no fewer than ninety (90) days’ advance written notice
of such cessation and shall notify Cardtronics in writing of any
such termination within ten (10) days of its receipt of
written notice thereof. Removal of the Financial Services Kiosk
from the affected Store shall be made pursuant to
Section 18.7 . Cardtronics shall provide 7-Eleven at
least three (3) days written notice of the date it desires to
remove the Financial Services Kiosk, and Cardtronics shall not
commence removal without 7-Eleven’s prior written consent,
which consent shall not be unreasonably withheld, conditioned or
delayed. Any such Store closings shall not reduce the Minimum Store
Commitment as set forth in Section 3.7 .
3.11
Security and Access to Stores . Cardtronics shall at all
times substantially comply with 7-Eleven’s and
7-Eleven’s franchisees’ security and access policies as
such may be in effect and are identified or provided in writing to
Cardtronics from time to time at each Store, within a reasonable
period of time (but in no event less than 30 days) after
Cardtronics receives such written notice of such policies or change
thereto. Cardtronics shall abide by all 7-Eleven and franchisee
rules and regulations as such may be in effect from time to time
and are identified or provided in writing to Cardtronics while on
Store premises, including, but not limited to (a) safety, health
and hazardous material management rules, (b) rules prohibiting
misconduct on Store premises such as use of physical aggression
against persons or property, harassment,
11
security
and theft and (c) any other standards and procedures adhered
to by employees of 7-Eleven and its Affiliates and their respective
subcontractors. Each Party shall take all reasonable precautions to
ensure safe working procedures and conditions during and in
connection with such Party’s operations while on Store
premises. Any Cardtronics employees or subcontractors who access
Stores or other facilities of 7-Eleven or its vendors may be
required to sign a separate access agreement prior to admittance to
such facilities.
3.12
Content Requirements and Restrictions . Cardtronics shall at
all time comply with the provisions set forth in
Section 7.4 , and any additional requirements that may
be set forth in Schedule E .
3.13
Network Agreements . Cardtronics has assumed certain
interchange, financial network and similar agreements relating to
the operation of the Financial Services Kiosks which were entered
into by 7-Eleven prior to the date of this Agreement. All of the
foregoing agreements are hereinafter collectively called
“Network Agreements”. 7-Eleven agrees that it and its
franchisees will perform any obligations identified in
Schedule H which pertain solely to the operation or
ownership of the Stores in such Network Agreements.
3.14
Networks . Cardtronics shall throughout the Term maintain
participation in a broad enough range of national and/or regional
EFT networks such that cards are accepted by the Financial Services
Kiosk at a rate consistent with 7-Eleven’s historical
experience.
3.15
Quarterly Meetings . The Parties shall engage in quarterly
meetings as set forth in Schedule G .
4.
Equipment.
4.1
Financial Services Kiosk Specifications . Cardtronics
reserves the right to select the make and model of Financial
Services Kiosks for installation or to hereafter substitute other
makes and models Financial Service Kiosks installed in any
Financial Services Kiosk Area, so long as any such substitute
Financial Services Kiosk (a) has permitted functionality,
(b) meets the specifications set forth in
Schedule C , as may be amended from time to time to
conform to legal requirements, or by mutual agreement,
(c) does not place any additional burden on the Store’s
structural or utility systems, including without limitation
electrical and telephone systems, and (d) has a similar
appearance in color and design that is comparable to the existing
7-Eleven ATM base. 7-Eleven shall provide or cause to be provided
the Financial Services Kiosk Areas in the Stores in accordance with
this Agreement. Cardtronics shall inform 7-Eleven of the vendor and
model number (or other means of equipment identification) and space
requirements for normal operation, maintenance and service of the
Financial Services Kiosk, its immediate surrounds or fixtures, its
signage required to be provided pursuant hereto and related
equipment selected by Cardtronics prior to the commencement of
installation of any Financial Services Kiosk. Notwithstanding the
foregoing, or any other provision of this Agreement to the
contrary, however, the Financial Services Kiosks and equipment
purchased from 7-Eleven shall be deemed to comply with this
Agreement in all respects, and for all purposes under this
Agreement as of the Effective Date.
12
4.2
Periodic Replacement . Cardtronics shall replace Financial
Services Kiosks as mutually determined necessary in the quarterly
meeting with 7-Eleven described in Schedule G .
4.3
Standards; Warranties . Cardtronics represents and warrants
that it shall perform all its obligations hereunder with promptness
and diligence, and in a good and workmanlike manner and in
accordance with industry standards for well managed financial
services operations.
4.4
Removal of Money Order Functionality . 7-Eleven shall have
caused to be executed a Task Order with NCR to remove all money
order printers and other money order functionality equipment or
software, and take such other steps as are needed to terminate
money order functionality, from the Financial Services Kiosks
offering such functionality as soon as reasonably possible, but in
any event within one (1) year after the Effective Date. The
costs associated with respect to the Task Order shall be the
responsibility of 7-Eleven. 7-Eleven shall have no further
responsibility with respect to the money order printers or the
Financial Services Kiosks associated with the removal of money
order functionality, and NCR shall be responsible for performing
the Task Order. Any Down Time (as defined in Schedule D) of a
Financial Services Kiosk caused by NCR in connection with the Task
Order shall be excluded in calculating the
“Availability” of said Financial Services Kiosk.
5.
Maintenance of Financial Services Kiosks.
5.1
Cardtronics to Provide Maintenance . Cardtronics shall
provide, or cause to be provided, at its own expense, maintenance
of each Financial Services Kiosk. Cardtronics shall not unduly
hinder the operations of the Stores while performing its
maintenance duties. Cardtronics shall supply 7-Eleven with the
name, address and telephone number of its subcontractors
responsible for maintenance for purposes of identification.
Cardtronics or its designated service agents or subcontractors
shall have the right to enter a Store during such Store’s
normal business hours to perform the maintenance required
hereby.
5.2
Definition of Maintenance .
(a)
Cardtronics . For purposes of this Agreement, the terms
“maintain” and “maintenance” of Financial
Services Kiosks shall include cleaning, repair (whether or not
defects are covered by manufacturer’s warranties), parts
installation, parts replacement and replenishment of the supply of
Vault Cash (as that term is defined in Section 15.2 ),
as well as all labor in connection with each of the foregoing.
Cardtronics shall maintain adequate amounts of Vault Cash in each
Financial Services Kiosk at all times. “Adequate amounts of
Vault Cash” means that amount of cash required for each
Financial Services Kiosk to satisfy customer withdrawals made
between replenishments of cash by Cardtronics in conformance with
the service levels set forth in Schedule D .
Cardtronics shall be responsible for required data communications
lines from the Financial Services Kiosk to the Store router or
switch, and all telephone hook-up, data line and/or communications
network charges.
(b)
7-Eleven . 7-Eleven shall maintain the Store space
surrounding the Financial Services Kiosk Area in a reasonably neat
and orderly condition and free of obstructions. 7-Eleven, at its
sole expense, shall cause to be installed, maintained, and
available for Cardtronics’ use from and after the Install
Date, on a plug in basis, required data communication lines
installed to the Store
13
router
or switch, and electric lines necessary or appropriate for or in
connection with the operation of the Financial Services Kiosks. The
cost of all utilities shall be borne by 7-Eleven.
5.3
Failure to Maintain Financial Services Kiosks . Cardtronics
agrees to be bound by the service level provisions set forth in
Schedule D.
6. Personnel.
6.1
Qualifications of Cardtronics Employees and Subcontractors .
Cardtronics agrees that the employees and subcontractors it assigns
to perform any services relating to the Financial Services Kiosks
in Stores (which may at Cardtronics’ option be Affiliates of
Cardtronics) shall be personnel reasonably qualified for the
services they are to perform.
6.2
Replacement of Cardtronics Employees and Subcontractor
Employees . 7-Eleven shall give written notice to Cardtronics
if 7-Eleven (i) reasonably determines that any of
Cardtronics’ employee’s or subcontractor’s
employee’s performance is materially deficient, or
(ii) discovers that there have been material
misrepresentations by or concerning the employee or subcontractor
employee. Cardtronics shall then promptly investigate the situation
and develop a plan to resolve any issues. If the issues are not
resolved within a reasonable period (taking into account the harm
or potential harm to 7-Eleven), then Cardtronics will replace the
employee or subcontractor employee with a person satisfying the
criteria set forth in Section 6.1 . Nothing in this
provision shall be deemed to give 7-Eleven the right to require
Cardtronics to terminate the employment of any of
Cardtronics’ employees or subcontractor’s employees;
rather, it is intended to give 7-Eleven only the right to require
that Cardtronics or such subcontractor discontinue using an
employee in the performance of the services relating to the
Financial Services Kiosk Project.
7. Cardtronics Services.
7.1
Provision of Cardtronics Financial Services . Cardtronics
shall provide the Financial Services at the Stores, subject to the
terms and conditions contained in this Agreement (including without
limitation the terms and conditions of Section 3.1 of
this Agreement) and any applicable Schedules. Cardtronics shall
provide and/or obtain all facilities, personnel and other resources
as are necessary to provide the Cardtronics Services, the costs of
which shall be borne by Cardtronics, except as otherwise expressly
provided in this Agreement.
14
7.2
Financial Services Changes . After the Effective Date, the
parties will meet quarterly to discuss potential new product and/or
service opportunities as Advanced Financial Services Functionality.
Cardtronics shall have no right to add new products or services to
the Financial Services Kiosks without 7-Eleven’s prior
written consent, which may be withheld in 7-Eleven’s sole
discretion. However, Cardtronics shall have the right to
(i) discontinue or materially reduce any Financial Services on
the Financial Services Kiosks deployed in the Stores, or
(ii) materially modify or enhance any Financial Services on
the Financial Services Kiosks deployed in the Stores (collectively
“Financial Services Changes”), all in its good faith
business judgment, and in each case without the prior written
consent of 7-Eleven. 7-Eleven shall have no obligation to share in
any development or implementation costs relating to any Financial
Services Change proposed by Cardtronics. Cardtronics may not
implement any changes involving any Alternative Revenue Streams (or
“ARS”) as described in Schedule E without
7-Eleven’s prior written approval which approval shall be in
7-Eleven’s sole discretion, except as may be otherwise
provided in Schedule E with respect to adding BINs on
existing agreements.
7.3
Use of Subcontractors . Subject to Section 6 and
all other terms of this Agreement, Cardtronics may delegate or
subcontract any of its obligations under this Agreement without the
prior consent of 7-Eleven; provided however, that Cardtronics may
not delegate or subcontract any of its obligations hereunder to a
Competitor of 7-Eleven without 7-Eleven’s prior written
consent. With respect to any obligations of Cardtronics under this
Agreement performed by subcontractors, Cardtronics will remain
responsible for such obligations to the same extent Cardtronics
would be responsible for Cardtronics’ employees. Cardtronics
will not disclose to any subcontractor any 7-Eleven Confidential
Information unless and until such subcontractor has agreed in
writing to protect the confidentiality of such information in a
manner that is equivalent to that required of Cardtronics
hereunder.
7.4
Cardtronics Service Warranty . Cardtronics represents and
warrants to 7-Eleven that Cardtronics’ respective Marks,
Financial Services Kiosk screens and all marketing materials shall
not (a) contain or permit to appear any defamatory or libelous
material or material that discloses private or personal matters
concerning any person, without such person’s consent,
(b) contain or permit to appear any messages, data, images or
programs that are illegal (including Internet gambling), contain
nudity or sexually explicit content or are obscene or pornographic
(c) contain or permit to appear any messages, data, images or
programs that would violate the intellectual property rights of
others, including, but not limited to, unauthorized copyrighted
text, images or programs, trade secrets or other confidential
proprietary information, or trademarks or service marks used in an
infringing fashion. In the event Cardtronics breaches any of its
warranties hereunder, 7-Eleven may require Cardtronics to
immediately remove any or all noncompliant Cardtronics screens from
the Financial Services Kiosk, at 7-Eleven’s sole discretion,
until Cardtronics adequately demonstrates to 7-Eleven that
Cardtronics is in full compliance with the warranties set forth
herein. Notwithstanding the foregoing, in any event,
Cardtronics’ failure to remedy the breach after notice as
provided in this Agreement shall be deemed a material breach of
this Agreement. Cardtronics acknowledges and agrees that, as
between Cardtronics and 7-Eleven, Cardtronics will be solely
responsible for any claims or other losses associated with or
resulting from the Financial Services, including, without
limitation, any warranty, return or support obligations related to
the Financial Services or any regulatory, statutory, or legal
compliance or non-compliance issues related to the Financial
Services. Cardtronics shall provide 7-Eleven with the name and
contact information of an individual who
15
will act
as a point of contact between 7-Eleven and Cardtronics on all
customer service issues, and Cardtronics will update such
information from time to time as necessary.
7.5
Cardtronics Renegotiations . Cardtronics may renegotiate the
terms of any Cardtronics third party service provider agreement to
change maintenance services provided by such third party in
connection with the Financial Services Kiosk Project as of the
Effective Date, without the requirement of prior written consent of
7-Eleven, provided that Cardtronics remains in compliance with the
standards set forth in this Agreement.
8. Payments and Consideration.
8.1
Cardtronics Transaction Fees . In consideration for the
rights granted to it under the Agreement, Cardtronics shall pay
7-Eleven the transaction fees (the “Transaction Fees”)
in accordance with Schedule E and the Alternate Revenue
Stream payments in accordance with Schedule E-1 .
9. Intellectual Property and Software.
9.1
General Knowledge of Parties . Subject to the
confidentiality obligations contained herein, nothing contained in
this Agreement shall prevent or preclude a Party from utilizing the
general knowledge, skill or experience acquired by the Party in the
course of performing its obligations under this Agreement.
9.2
Third Party Notices . If a Party receives a notice of
infringement, request for disclosure, subpoena or other inquiry
with respect to the other Party’s Intellectual Property
Rights or Confidential Information, it shall, as soon as practical,
notify the other Party in writing. The Party receiving the third
party notice shall not respond to such notices, requests, subpoenas
or inquiry without first so notifying the other Party in
writing.
9.3
Trademark Licenses .
(a) Cardtronics hereby grants to 7-Eleven a non-exclusive,
non-transferable (except as set forth in Section 19.3
), royalty-free license, during the Term, to use, display,
distribute, perform and publish any trademarks, trade names,
service marks and logos that may be delivered by Cardtronics to
7-Eleven or otherwise authorized by Cardtronics for use by 7-Eleven
(the “Cardtronics Marks”) for purposes related to this
Agreement. Any use of the Cardtronics Marks by 7-Eleven must be
approved in advance in writing by Cardtronics and must also comply
with this Agreement and the then-most recent written usage
guidelines, if any, that are delivered to 7-Eleven by Cardtronics.
Whenever 7-Eleven makes use of any Cardtronics Marks, 7-Eleven
shall apply an appropriate legend (where reasonable) acknowledging
that such Cardtronics Marks are the property of Cardtronics.
(b) 7-Eleven hereby grants to Cardtronics a non-exclusive,
non-transferable, royalty-free license (with sublicensing rights to
Branding Partners as provided for in Section 11.2 ),
during the Term, to use, display, distribute, perform and publish
any trademarks, trade names, service marks and logos that may be
delivered by 7-Eleven to Cardtronics or otherwise authorized by
7-Eleven for use by Cardtronics (the “7-Eleven Marks”)
but only at the Stores and only for purposes related to this
Agreement. Any use of 7-Eleven Marks by Cardtronics must be
16
approved
in advance in writing by 7-Eleven and must also comply with this
Agreement and the then-most recent written usage guidelines, if
any, that are delivered to Cardtronics by 7-Eleven. Whenever
Cardtronics makes use of any 7-Eleven Marks, Cardtronics shall
apply an appropriate legend (where reasonable) acknowledging that
such 7-Eleven Marks are the property of 7-Eleven.
(c) Each of 7-Eleven and Cardtronics represent and warrant to
the other that its respective Marks, internet sites and marketing
materials relating to the Financial Services Kiosk Project shall
not contain or permit to appear (a) any defamatory or libelous
material or material that discloses private or personal matters
concerning any person, without such person’s consent,
(b) any messages, data, images or programs that are illegal
(including internet gambling), contain nudity or sexually explicit
content or content that is obscene or pornographic or (c) any
messages, data, images or programs that would violate the
Intellectual Property Rights of others, including, but not limited
to, unauthorized copyrighted text, images or programs, trade
secrets or other confidential proprietary information, or
trademarks or service marks used in an infringing fashion.
(d) Cardtronics acknowledges that the 7-Eleven Marks are a
symbol of 7-Eleven’s goodwill. Cardtronics agrees that it
shall not use, register or attempt to register in the Territory, or
any other location world wide, any trademark, trade name, service
mark, domain name or company name that contains the word or letters
“7-Eleven,” “Seven Eleven,” or
“7-11” or that would cause a likelihood of confusion
with the 7-Eleven Marks.
(e) 7-Eleven acknowledges that the Cardtronics Marks are a
symbol of Cardtronics’ goodwill. 7-Eleven agrees that it
shall not use, register or attempt to register in the Territory, or
any other location world wide, trademark, trade name, service mark,
domain name or company name that contains the word or letters (e.g.
“Cardtronics”) or that would cause a likelihood of
confusion with the Cardtronics Marks.
(f) The Financial Services Kiosks may be primarily branded
with a trade name subject to 7-Eleven written approval. Cardtronics
may (i) brand the Financial Services Kiosks located outside
the Stores using a different mark in its discretion;
(ii) place other service providers’ brands, logos and
marks on the Financial Services Kiosks located inside or outside
the Stores; and (iii) place the brands, logos or marks of
other significant Financial Services Kiosk Project suppliers on
Financial Services Kiosk monitors or other physical parts of the
Financial Services Kiosks located inside or outside the Stores;
provided, for each of the foregoing, the placement of additional
brands or logos on the Financial Services Kiosks shall be selected
and approved jointly by the Parties. Notwithstanding the foregoing,
in no event shall any brands or logos of Competitors of 7-Eleven
appear on the Financial Services Kiosks whether on the exterior
surrounds, screens, or receipts or coupons.
(g) Nothing contained in this Agreement shall give either
Party any right, title or interest in or to any Intellectual
Property Rights of the other Party, except for the limited rights
expressly granted hereunder.
17
10. Confidentiality and Information
Security.
10.1
Confidential Information . Each Party (the “Receiving
Party”) acknowledges the claim of the other Party (the
“Disclosing Party”) that the Receiving Party possesses
and shall continue to possess information that has been developed
or received by the Disclosing Party, has commercial value in the
Disclosing Party’s business or that of its customers and is
not in the public domain. “Confidential Information” of
Cardtronics shall mean (a) all materials of Cardtronics or its
Affiliates, or their respective subcontractors, clearly marked as
“Confidential,” and (b) Customer Data with respect
to Cardtronics Services. “Confidential Information” of
7-Eleven shall mean all materials of 7-Eleven or its Affiliates or
franchisees, or their respective subcontractors, clearly marked
“Confidential” and/or all other information of 7-Eleven
or its Affiliates or franchisees or their respective agents and
subcontractors, including information regarding the operations,
facilities and consumer markets of such parties, all as provided to
or obtained by Cardtronics from such parties, including all media
containing any such information (whether on paper, diskette,
CD/ROM, or otherwise) subject to the exceptions in
Section10.3 .
10.2
7-Eleven agrees that operating data (including without limitation
transaction volumes, pricing, and historical trends) related to the
Financial Services Kiosks at 7-Eleven locations (“7-Eleven
Operating Data”) may be used by Cardtronics solely as set
forth in this paragraph. Cardtronics may aggregate (with other
operating data) and de-identify 7-Eleven Operating Data so that it
cannot be related to or otherwise identified with 7-Eleven
(“De-identified Data”) and may use such De-identified
Data for its business purposes. More specifically, Cardtronics will
ensure that the De-identified Data does not include any individual
Store identifiers, addresses, zip codes, DMA information, IP
addresses, and any other information that can be used to identify a
Store or 7-Eleven. Except as otherwise set forth in this Section,
Client will not permit any 7-Eleven Operating Data, in whole or in
part, or a copy thereof to pass into the possession of any
Competitor. Provided, however, for the purposes of raising funds or
communications and or presentations with respect to potential
investors or the investment community, Cardtronics shall be able to
identify 7-Eleven as the source of De-identified Data so long as
such data does not include any individual Store identifiers,
addresses, zip codes, DMA information, IP addresses, and any other
information that can be used to identify a particular Store or DMA.
Cardtronics agrees that it shall not permit any Competitor to
attempt, directly or indirectly, to re-identify the De-identified
Data.
10.3
Exceptions . The confidentiality obligations of the Parties
regarding the Confidential Information of the other set forth below
shall not apply to any material or information that (a) is or
becomes a part of the public domain through no act or omission by
the Receiving Party, (b) is independently developed by the
Receiving Party without use or reference to the Confidential
Information of the Disclosing Party, (c) is disclosed to the
Receiving Party by a third party that, to the Receiving
Party’s knowledge, was not bound by a confidentiality
obligation to the Disclosing Party, (d) is required by law
(including disclosure necessary or appropriate in filings with the
U.S. Securities Exchange Commission) or generally accepted
accounting principles, or (e) is demanded by a valid order by
a court or other governmental body, as required by law; provided,
however, that except to the extent such order results in such
Confidential Information becoming part of the public domain, the
confidentiality obligations of the Parties shall continue to apply
to such Confidential Information. Each Receiving Party agrees to
notify the Disclosing Party promptly of the receipt of any such
order and to promptly provide the Disclosing Party
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with a
copy of such order. If a Receiving Party is required to disclose
Confidential Information in response to a valid order by a court or
other governmental body, as required by law, the Receiving Party
may disclose such Confidential Information only to the extent
legally compelled. The Receiving Party shall give the Disclosing
Party an opportunity to oppose any such order and to seek a
protective order that protects the Confidential Information at
issue before the Receiving Party complies with any such court or
governmental order.
10.4
Obligations . Subject to Section 10.7 , each
Receiving Party shall keep confidential the Disclosing
Party’s Confidential Information; provided, however, that a
Receiving Party may disclose such information of the Disclosing
Party to persons performing services relating to the Financial
Services Kiosk Project where (a) such disclosure is necessary
to perform the Receiving Party’s obligations hereunder or
otherwise authorized by this Agreement and (b) such persons
agree in writing to assume the confidentiality obligations
contained herein or are otherwise obligated to maintain the
confidentiality of such information on terms substantially similar
to the terms of this Section 10 . Furthermore, no
Receiving Party may (a) make any use or copies of the
Disclosing Party’s Confidential Information except in
performing under this Agreement, (b) acquire any right in or
assert any lien against the Disclosing Party’s Confidential
Information, or (c) refuse for any reason (including a default
or breach of this Agreement by the Disclosing Party) to promptly
provide the other’s Confidential Information (including
copies thereof) to the other if requested to do so.
10.5
Disclosure . In the event of any Party becoming aware of any
unauthorized disclosure or loss of, or inability to account for,
any of the other’s Confidential Information, such Party shall
notify the other Party as soon as reasonably practicable under the
circumstances.
10.6
Return .
(a) 7-Eleven shall transfer possession of all Confidential
Information of Cardtronics (including all existing copies thereof)
to Cardtronics upon the termination of this Agreement, whether or
not due to a breach by Cardtronics, or, if 7-Eleven so elects in
writing, such materials shall be erased or destroyed from files
maintained by 7-Eleven and 7-Eleven shall certify in writing to
Cardtronics that the same has been erased or destroyed.
(b) Cardtronics shall transfer possession of all Confidential
Information of 7-Eleven (including all existing copies thereof) to
7-Eleven upon the termination of this Agreement whether or not due
to a breach by 7-Eleven, or, if Cardtronics so elects in writing,
such materials shall be erased or destroyed from files maintained
by Cardtronics and Cardtronics shall certify in writing to 7-Eleven
that the same has been erased or destroyed.
10.7
Information and System Security . Cardtronics hereby assumes
responsibility for maintaining the security and integrity of the
Financial Services Kiosks, but shall not have responsibility for
maintaining the security and integrity of the Stores, or the
merchandise or other assets or employees of 7-Eleven or its
franchisees. Subject as aforesaid, Cardtronics shall develop and
implement a comprehensive security program for the Financial
Services Kiosks in order to comply with Cardtronics’ security
and privacy obligations hereunder. As a part of such security
program, to the extent commercially reasonable, Cardtronics shall
conduct the regular application of Cardtronics Software upgrades as
necessary to reduce or limit vulnerabilities to
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Viruses
and the implementation of vendor recommended security features
available on each Cardtronics Service. In the event that
Cardtronics is utilizing any aspect of a 7-Eleven network or
telecommunications lines, Cardtronics shall comply with any
security obligations in respect of Cardtronics’ use of such
lines set forth in any Network Agreement that may exist between
7-Eleven and Cardtronics.
10.8
No Other Rights . Nothing contained in this
Section 10 shall be construed as granting to or
conferring on a Party, expressly or implicitly, any rights or
license to the Confidential Information of the other Party.
10.9
Injunctive Relief . The Parties acknowledge and agree that a
breach of Sections 10 or 11 will give rise to
irreparable injury that is not adequately compensable in damages.
Accordingly, either Party may seek injunctive relief against the
breach or threatened breach of Sections 9 or 10 in
addition to any such legal and equitable remedies available.
10.10
Business Continuity . Cardtronics shall be responsible for
implementing and keeping current disaster recovery and business
continuity plans that reasonably anticipate events or disasters of
varying types affecting the delivery of the Cardtronics or 7-Eleven
Services. Such plans shall be subject to 7-Eleven’s approval.
Cardtronics will provide 7-Eleven written notice as to any material
change in Cardtronics’ disaster recovery and business
continuity plan. Any amendments or updates thereto are also subject
to 7-Eleven’s approval under this Agreement. 7-Eleven shall
further have the right to audit Cardtronics’ disaster
recovery and business continuity plans and operations in accordance
with Section 17 , at 7-Eleven’s sole cost and
expense. Cardtronics shall provide for secure back-up of all data
provided by 7-Eleven and for all processed data hereunder in
accordance with commercially reasonable standards. 7-Eleven’s
approvals under this Sectio
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