GENERAL MAGIC INC
10-Q, EX-10.1, 2000-11-14
PREPACKAGED SOFTWARE
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<PAGE>   1
                                                                    EXHIBIT 10.1


              FIRST AMENDMENT TO QWEST COMMUNICATIONS CORPORATION
                               SERVICES AGREEMENT

This First Amendment (this "First Amendment") to the Qwest Communications
Corporation Services Agreement is by and between Qwest Communications
Corporation ("Qwest") and General Magic ("Customer"). This First Amendment will
be effective upon Customer's signature date below (the "First Amendment
Effective Date").

WHEREAS, Qwest and Customer entered into a Qwest Communications Corporation
Services Agreement signed by Customer on April 30, 1998 (the "Agreement"), and

WHEREAS, during Qwest's provision of Services pursuant to this Agreement the
Customer experienced Service outages, and

WHEREAS, to provide a remedy for such Service outages, Qwest agrees to adjust
Customer's Usage Minimum, and

WHEREAS, as consideration for such adjustment, Customer agrees not to commence
litigation against Qwest for such Service outages experienced before the
Effective Date of this First Amendment;

WHEREAS, the Parties do not intend to alter Customer's termination rights
pursuant to the Agreement regarding Qwest's provision of Services;

WHEREAS, the parties desire to amend the Agreement.

NOW, THEREFORE, in consideration thereof, the parties agree as follows:

1.  The second and third unnumbered paragraphs on Page 1 of the Agreement are
    deleted and replaced with the following:

    Qwest will provide to Customer international, interstate and intrastate
    telecommunications service(s) (the "Services") pursuant to this Agreement
    and the Qwest FCC Tariffs No. 2 and No. 3 and any applicable intrastate
    tariff of Qwest and/or its affiliates (individually, a "Tariff" and
    collectively, the "Tariffs"), to the extent permitted by law. Capitalized
    terms not otherwise defined herein shall have the meaning given them in the
    applicable Tariff. This Agreement incorporates by reference the terms of
    the Tariffs, which Qwest may modify from time to time in accordance with
    law. Federal law prohibits Qwest from providing interLATA long distance
    services in Arizona, Colorado, Idaho, Iowa, Minnesota, Montana, Nebraska,
    New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington, and
    Wyoming (i.e., voice and data services that originate in such states,
    private line with one end point in those states, or toll free service that
    terminates in such states) until Qwest has obtained authorization to
    provide such services in those states. Customer represents that it has
    received from a competitor of Qwest an offer comparable to the offer set
    forth in this Agreement.

    If prior to the expiration of the Initial Term or Renewal Term of this
    Agreement, Qwest is required to cancel any Tariff, or portion thereof, on
    file with the Federal Communications Commission ("FCC") or is prohibited
    from filing a specific tariff option reflecting the terms of this
    Agreement, as a result of a government or judicial action, then effective
    on such cancellation or prohibition ("Cancellation Date"), as applicable,
    and for the remainder of the Initial Term or Renewal Term:

    (a) The specific provisions contained in this Agreement that expressly apply
        in lieu of, or that apply in addition to, provisions contained in the
        Tariffs and/or in Qwest's Rate and Service Schedules ("Rate Schedules")
        shall be controlling; and

    (b) Provisions contained in the Rate Schedules shall be subordinate to the
        specific provisions in this Agreement as described in (a).

<PAGE>   2


    (c) Notwithstanding the above, for services for which a Tariff is required
        to be filed or is permitted after the Cancellation Date to be filed, the
        Qwest Tariff provisions that remain in effect, as Qwest may amend from
        time to time in accordance with law, shall be controlling over the terms
        contained in this Agreement or the Rate Schedule.

    Any references to a Tariff under this Agreement pertaining to the services
    contained in the Rate Schedules shall be deemed to refer to the Rate
    Schedules. Qwest may amend the Rate Schedules from time to time. The Rate
    Schedules shall incorporate or be deemed to incorporate the applicable
    provisions of the Tariff in effect immediately prior to the cancellation of
    the Tariff provisions.

2.  Section 3.1 of Attachment A is amended by revising the Revenue Level
    Commitment for Year 3 by deleting the figure "$8,000,000" and replacing it
    with One Hundred Twenty Five Thousand Dollars ("$125,000") so the table
    reads as follows:

<TABLE>
<S>             <C>
    Year 1      $1,000,000
    Year 2      $4,000,000
    Year 3      $  125,000
</TABLE>

3.  Except as expressly modified by this First Amendment, the Agreement shall
    continue in full force and effect in accordance with its terms and
    constitutes the legal and binding obligations of Customer and Qwest. In the
    event the terms of this First Amendment conflict with the terms of the
    Agreement, the terms of this First Amendment shall control.

4.  This First Amendment and the Agreement constitute the complete agreement of
    the parties concerning the subject matter hereof, and supersedes any prior
    written or verbal statements, representations, and agreements concerning
    the subject matter hereof.

This First Amendment is of no force or effect unless Customer executes and
delivers it to Qwest Communications Corporation on or before September 29, 2000.

GENERAL MAGIC                           QWEST COMMUNICATIONS CORPORATION

By: /s/ Mary E. Doyle                   By: /s/ John Stuart
   -----------------------------           -----------------------------

Name: Mary E. Doyle                     Name: John Stuart
     ---------------------------             ---------------------------

Title: Senior Vice President            Title: Regional Vice President
      --------------------------

Date: September 29, 2000                Date: 9/28/00
     ---------------------------             ---------------------------

                                        Approved as to business content;
                                        Qwest Communications Corporation

                                        By: /s/ Tom R. Schmuke
                                           -----------------------------

                                        Name: Tom R. Schmuke
                                             ---------------------------

                                        Title: Director of Finance
                                              --------------------------

                                        Date: 10-14-00
                                             ---------------------------


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