0001336691-12-000004.txt : 20120105 0001336691-12-000004.hdr.sgml : 20120105 20120105160336 ACCESSION NUMBER: 0001336691-12-000004 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20111231 ITEM INFORMATION: Termination of a Material Definitive Agreement FILED AS OF DATE: 20120105 DATE AS OF CHANGE: 20120105 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MOTRICITY INC CENTRAL INDEX KEY: 0001336691 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389] IRS NUMBER: 201059798 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-34781 FILM NUMBER: 12511122 BUSINESS ADDRESS: STREET 1: 601 108TH AVE NE STREET 2: SUITE 900 CITY: BELLEVUE STATE: WA ZIP: 98004 BUSINESS PHONE: 425-957-6200 MAIL ADDRESS: STREET 1: 601 108TH AVE NE STREET 2: SUITE 900 CITY: BELLEVUE STATE: WA ZIP: 98004 8-K 1 motr2012138k.htm FORM 8-K MOTR 2012.1.3 8K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
 
 
 

FORM 8-K
 
 
 
 
 


CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): December 31, 2011
 
 
 
 
 
 

Motricity, Inc.
(Exact name of registrant as specified in its charter)
 
 
 
 
 
 

Delaware
 
001-34781
 
20-1059798
(State or Other Jurisdiction of
Incorporation or Organization)
 
(Commission
File Number)
 
(IRS Employer
Identification No.)
601 108th Avenue Northeast
Suite 800
Bellevue, WA 98004
(Address of Principal Executive Offices, including Zip Code)
(425) 957-6200
(Registrant's Telephone Number, including Area Code)
Not Applicable
(Former Name or Former Address, if Changed Since Last Report.)
 
 
 
 
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 
 
 
 
 

Item 1.02
Termination of a Material Definitive Agreement.
On December 31, 2011, Motricity, Inc. (the “Company”), through two of its subsidiaries, mCore International, Inc. (“mCore”) and PT Motricity Indonesia (“Motricity Indonesia”), agreed to terminate its relationship with PT XL Axiata Tbk (“XL,” and together with mCore and Motricity Indonesia, the “Parties”). The termination followed negotiations relating to the continued business relationship among the Parties and XL's indication that it wished to exit its relationship with the Company, as a result of among other things changes in XL's business and strategy and XL's re-evaluation of the economic viability of the contractual relationship. The Parties terminated several agreements pursuant to which the Company provided XL with mobile data and related services in Indonesia. The terminated agreements include (i) the Software License and Maintenance Agreement dated March 18, 2010, by and among mCore and XL (“License Agreement”), (ii) the System Supply Integration and Managed Services Agreement dated August 31, 2010 by and among XL and Motricity Indonesia (the “SSIA Agreement”), (iii) the Hosting Agreement dated June 1, 2011 by and among XL and Motricity Indonesia (the “Hosting Agreement”) and (iv) the Master Services Agreement dated June 1, 2011 by and among XL and Motricity Indonesia (the “E&C Agreement” and together with the License Agreement, the SSIA Agreement and the Hosting Agreement, the “XL Agreements”). The License Agreement and the SSIA Agreement were terminated effective December 31, 2011 and the Hosting Agreement and the E&C Agreement are being terminated effective February 29, 2012. Following the termination, the Company is reviewing its agreements with other carrier customers in Asia and re-evaluating its operations in the region.
In 2010 and the first nine months of 2011, XL accounted for 13% and 11%, respectively, of the revenue to the Company.
The Company and XL agreed that the Company is entitled to receive its contractual revenue share through December 31, 2012. In addition the Company will receive a cash payment from XL to compensate the Company for software license fees that would otherwise have been due under the XL Agreements. All other payments that would otherwise have been due under the XL Agreements have been waived by both Parties resulting in a net benefit for the Company.
No material relationship exists between the Company or its affiliates and XL except in connection with the XL Agreements.



SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
 
 
 
 
 
MOTRICITY, INC.
(Registrant)
 
 
 
 
 
January 5, 2012
 
By:
 
 /s/ James R. Smith, Jr. 
(Date)
 
 
 
  James R. Smith, Jr.
  Interim Chief Executive Officer