==================================================
AOL ADVERTISING INSERTION ORDER
==================================================
Contract #: ________________
AOL Salesperson: ___________
Credit Approval Received
Sales Coordinator: _________
Date: ______________________
<TABLE>
<CAPTION>
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Advertiser Advertising Agency
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Contact Person Doug Walner
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Company Name Stamps.com, Inc.
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Address - Line 1 2900 31st St., Suite 150
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Address - Line 2 Santa Monica, CA 90405
------------------------------------------------------------------------------------------
Phone # 310-450-1444
------------------------------------------------------------------------------------------
Fax #
------------------------------------------------------------------------------------------
Email Dwalner@stamps.com
------------------------------------------------------------------------------------------
SIC Code
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Advertiser IAB Category
------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
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Billing Information
-----------------------------------------------------------------------------------------
Send Invoices to (choose one): Advertiser [_] Agency
-----------------------------------------------------------------------------------------
Advertiser or Agency Billing Same as above
Contact Person
-----------------------------------------------------------------------------------------
Company Name
-----------------------------------------------------------------------------------------
Billing Address - Line 1
-----------------------------------------------------------------------------------------
Billing Address - Line 2
-----------------------------------------------------------------------------------------
Billing Phone #
-----------------------------------------------------------------------------------------
Billing Fax #
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Billing Email Address
-----------------------------------------------------------------------------------------
P.O. #, if applicable
-----------------------------------------------------------------------------------------
</TABLE>
1. Guaranteed Payments. Advertiser shall make the following payments to AOL:
a. [***]* upon execution of this Insertion Order Agreement,
b. [***]* on each of (i) January 1,1999 and (ii) February 1, 1999;
c. [***]* on March 1, 1999; and
d. Subject to the provisions of Section 2 of Exhibit A, [***]* on each of
(i) May 1, 1999, (ii) August 1, 1999, (iii) November 1, 1999, and (iv)
February 1, 2000; provided however, should the Phase II Promotions
commence prior to or after May 1, 1999, Advertiser shall pay AOL [***]*
on the commencement date of the Phase II Promotions (the "Phase II
Promotion Launch Date"), and [***]* on each of the four (4) month, seven
(7) month, and ten (10) month anniversaries of the Phase II Promotion
Launch Date.
2. Additional Payments. See Sections 3 and 8 of Exhibit A, and Section 9 of
Exhibit E attached hereto.
3. Late Payments; Wired Payments. All amounts owed hereunder not paid when due
-----------------------------
and payable will bear interest from the date such amounts are due and
payable at the prime rate in effect at such time. All payments required
hereunder will be paid in immediately available, non-refundable U.S. funds
wired to the "America Online" account, Account Number 323070752 at The
Chase Manhattan Bank, 1 Chase Manhattan Plaza, New York, NY 10081 (ABA:
021000021). In the event of nonpayment on any of the dates specified above,
Advertiser shall have an additional five (5) business days within which to
make such payment and if Advertiser does not make the required payment in
such additional five (5) business days, AOL reserves the right to
immediately terminate this Insertion Order Agreement with written notice to
Advertiser.
--------------------------------------------------------------------------------
* [***] Confidential treatment has been requested for the bracketed portions.
The confidential redacted portion has been omitted and filed separately with the
Securities and Exchange Commission.
<TABLE>
------------------------------------------------------------------------------------------------------------
Inventory Type(choose one): [_] AOL Service only [_] AOL Affiliate only (e.g AOL.com)
[_] Aol Service & AOL Affiliate
------------------------------------------------------------------------------------------------------------
</TABLE>
1
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
AOL Service
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
AOL Inventory/Demographic* Display Display # of Ad Slots Total Gross Total
Purchased Start Date Stop Ad Type Purchased Price Impressions
Date
----------------------------------------------------------------------------------------------------------------------------------
<C>
<C>
<C>
PHASE I PROMOTIONS
----------------------------------------------------------------------------------------------------------------------------------
Run of E-mail: Zip Code Area 1 [***]* [***]* Banner [***]* [***]*
Rotation
----------------------------------------------------------------------------------------------------------------------------------
Run of E-mail: Zip Code Area 2 [***]* [***]* Banner [***]* [***]*
Rotation
----------------------------------------------------------------------------------------------------------------------------------
Run of E-mail: Zip Code Area 3 [***]* [***]* Banner [***]* [***]*
Rotation
----------------------------------------------------------------------------------------------------------------------------------
Run of Service: Zip Code Area 1 [***]* [***]* Banner [***]* [***]*
Rotation
----------------------------------------------------------------------------------------------------------------------------------
Run of Service: Zip Code Area 2 [***]* [***]* Banner [***]* [***]*
Rotation
----------------------------------------------------------------------------------------------------------------------------------
Run of Service: Zip Code Area 3 [***]* [***]* Banner [***]* [***]*
Rotation
----------------------------------------------------------------------------------------------------------------------------------
Computing Download Software: Zip [***]* [***]* Banner [***]* [***]*
Code Targeted Rotation
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
PHASE II PROMOTIONS [***]* [***]*
See Exhibit B attached hereto
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
* Attach completed AOL Demographic PHASE I $193,000 [***]*
Profile Worksheet PROMOTIONS TOTAL:
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
All necessary artwork and active URL's must be provided by advertiser 3 business days prior to start date.
Artwork required from Advertiser/Agency:
----------------------------------------
[_] 234x60 IAB Standard /10k Max [_] 145x30 Old Standard /10k Max [_] 120x60 Shopping/10k Max
[_] 175x45 Chat/Mail in-box/10k Max [_] 197x40 PF Area/10k Max [_] Special_____
* Static banners only, no animation*
Linking URL: The HTTP/URL address to be connected to the Advertisement shall be: http://www.stamps.com, or any other HTTP/URL
agreed upon by Advertiser and AOL (the "Affiliated Advertiser Site"). Advertiser shall be responsible for any hosting or
communication costs associated with the Affiliated Advertiser Site.
Please send artwork and URL to (choose one):
[_] AOLARTWEST@aol.com [_] AOLARTEAST@aol.com
------------------ ------------------
AOL reserves the right to immediately cancel any advertising flight in the event of a material change to the nature or content of
the site linked to the Advertisement.
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* [***] Confidential treatment has been requested for the bracketed portions.
The confidential redacted portion has been omitted and filed separately with the
Securities and Exchange Commission.
2
<PAGE>
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
AOL Affiliate (e.g., AOL.com)
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
AOL Affiliate Display Display # of Ad Slots Total Gross Total
Inventory/Demographic* Start Stop Ad Type Purchased Price Impressions
Purchased Date Date
----------------------------------------------------------------------------------------------------------------------------------
PHASE I PROMOTIONS
----------------------------------------------------------------------------------------------------------------------------------
Digital City - Market Selection [***]* [***]* Banner [***]* [***]*
Rotation
----------------------------------------------------------------------------------------------------------------------------------
PHASE II PROMOTIONS [***]* [***]*
See Exhibit B attached hereto
----------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------
* See attached package description for PHASE I $7,000 [***]*
any AOL.com package purchases PROMOTIONS
TOTAL :
----------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------------------------
All necessary artwork and active URL's must be provided by advertiser 3 business days prior to start date.
Artwork required from Advertiser/Agency :
-----------------------------------------
[_] 468x60 NF Reviews, Search Terms, My News & Hometown/10k Max/animation OK
[_] 100x70 AOL.com Home Page/3k Max/No animation [_] 120x60 NF Home Page/2k Max/No animation
[_] 120x60 Shopping/4k Max/No animation [_] 234x60 NF Kids Only & Hometown/5k Max/animation OK
[_] 120x60 Instant Messenger/7.5k Max/animation OK
Linking URL: The HTTP/URL address to be connected to the Advertisement shall be the same address as that of the Advertiser Site.
Please send artwork and URL to (choose one):
[_] AOLWEBWEST@aol.com [_] AOLWEBEAST@aol.com
------------------ ------------------
AOL reserves the right to immediately cancel any advertising flight in the event of a material change to the nature or content of
the site linked to the Advertisement.
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
Advertising Purchase Summary
--------------------------------------------------------------------------------
Total Price Total Impressions CPM
--------------------------------------------------------------------------------
AOL Networks [***]* [***]*
--------------------------------------------------------------------------------
AOL Affiliate [***]* [***]*
--------------------------------------------------------------------------------
Total Purchase Price [***]* [***]* [***]*
--------------------------------------------------------------------------------
(Less Agency Discount) N/A N/A
--------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
---------------------------------------------------------
Net Purchase Price Total Impressions
---------------------------------------------------------
<S>
<C>
$1,900,350 [***]*
---------------------------------------------------------
</TABLE>
The products and/or services to be offered or promoted by Advertiser in the
Advertisements are as follows: online postal services (i.e., services associated
with the online sale of postage stamps and ancillary products and services
related thereto) (the "Advertiser Products").
* [***] Confidential treatment has been requested for the bracketed portions.
The confidential redacted portion has been omitted and filed separately with the
Securities and Exchange Commission.
3
<PAGE>
4. Impressions Commitment. Any guarantees are to impressions (as measured by
----------------------
AOL in accordance with its standard methodologies and protocols), not
"click-throughs." In the event there is (or will be in AOL's reasonable
judgment) a shortfall in impressions as of the end of a display period (a
"Shortfall"), such Shortfall shall not be considered a breach of the
Agreement by AOL; instead, AOL will provide Advertiser, as its sole remedy,
with "makegood" impressions through advertisement placements on the AOL
Service. In connection with the foregoing, AOL shall use reasonable efforts
to ensure that any makegood impressions shall be provided to Advertiser
through promotions that are comparable in nature to the appropriate type of
promotions through which the impressions should have been delivered (e.g.,
if there is a Shortfall that should have been delivered through Level A
Promotions, AOL shall use reasonable efforts to make up such impressions
with other Level A Promotions). In the event that AOL is unable to provide
makegood impressions through the appropriate comparable promotions, AOL
shall provide such impressions through other types of promotions as
follows: (i) for each Level A impression that was not delivered, AOL shall
deliver either (a) three (3) Level B impressions or (b) ten (10) Level C
impressions; (ii) for each Level B impression that was not delivered, AOL
shall deliver either (a) 1/3 of a Level A impression or (b) three (3) Level
C impressions; and (iii) for each Level C impression that was not
delivered, AOL shall deliver one Level C impression. To the extent
impressions commitments are identified without regard to specific
placements, such placements will be as mutually agreed upon by AOL and
Advertiser during the course of the display period. AOL reserves the right
to alter Advertiser flight dates to accommodate trafficking needs or other
operational needs. In such cases, AOL will make available to Advertiser
reasonably equivalent flight(s).
5. Navigation. Advertiser shall provide continuous navigational ability for
----------
AOL users to return to an agreed-upon point on the AOL Service (for which
AOL shall supply the proper address) from the Affiliated Advertiser Site
(e.g., the point on the AOL Service from which the Affiliated Advertiser
Site is linked).
6. Term. Unless otherwise terminated as provided herein, the term hereof
----
shall begin on the first Display Start Date and shall expire on the last
Display Stop Date.
AUTHORIZED SIGNATURES
In order to bind the parties to this Insertion Order Agreement, their duly
authorized representatives have signed their names below on the dates indicated.
This Agreement (including Exhibits A, B, C, D and E attached hereto and
incorporated by reference) shall be binding on both parties when signed on
behalf of each party and delivered to the other party (which delivery may be
accomplished by facsimile transmission of the signature pages hereto).
AOL ADVERTISER
By: /s/ David M. Colburn By: /s/ John M. Payne
---------------------------- ----------------------------
(signature) (signature)
Print Name: David M. Colburn Print Name: John M. Payne
--------------------- --------------------
Title: SVP Business Affairs Title: Pres/CEO
------------------------ -------------------------
(Print or Type) (Print or Type)
Date: 12/16/98 Date: 12/15/98
4
<PAGE>
EXHIBIT A
---------
1. Authorization to Conduct Business. Advertiser hereby represents and
---------------------------------
warrants that it has obtained all necessary permits, licenses or other
authorizations from the United States Postal Service (the "USPS") which
permits Advertiser to conduct a beta test of the Advertiser Products by
advertising and offering for sale the Advertiser Products on the AOL
Service during the Phase I Promotions.
2. Phased Roll-Out of Promotions. The Advertisements provided hereunder
----------------------------
shall be provided by AOL in accordance with the Insertion Order provided
above, subject to the following:
a. At least three (3) days prior to the Phase I Promotions Display Stop
Date, Advertiser shall provide AOL with a written notice which shall
contain the following :
i. a representation by Advertiser that Advertiser has obtained all
necessary permits, licenses or other authorizations from the
USPS which permits Advertiser to engage in a full scale rollout
and sale of the Advertiser Product through the AOL Service (the
"USPS Authorization"), and
ii. an election by Advertiser to receive the Phase II Promotions.
Provided, however, that if prior to the end of the Phase I
Promotions Advertiser shall receive USPS Authorization to
promote and sell the Advertiser Products on a full scale basis
through the AOL Service, Advertiser shall provide AOL with a
written notice (provided at least two (2) days prior to the date
on which Advertiser wishes to begin receiving the Phase II
Promotions) (the "Acceleration Notice"), containing (A) the
representation required pursuant to Section 2(a)(i) of this
Exhibit A, and (B) an election by Advertiser to receive the
Phase II Promotions. In such event, the parties hereto shall
create a new insertion order which will indicate the new Display
Start Date of the Phase II Promotions, which insertion order
shall be attached hereto as an Exhibit. Notwithstanding the
foregoing, (1) upon receipt of an Acceleration Notice, AOL shall
only be obligated to place Advertisements for which Advertiser
has already provided the necessary creative art work and related
materials to AOL, and which requires less than two (2) days of
advance notice to place on the AOL Service; to the extent that
any Advertisement required to be placed during the Phase II
Promotions shall require more than two (2) days of advance
notice to be placed on the AOL Service, AOL shall provide such
Advertisements within thirty (30) days after receipt of the
Acceleration Notice; (2) AOL shall not be obligated to provide
the Phase II Promotions unless and until Advertiser makes the
representation required pursuant to Section 2(a)(i) of this
Exhibit A; and (3) if Advertiser does not receive the USPS
Authorization prior to June 30, 1999, notwithstanding anything
otherwise contained herein, either party shall have the right to
immediately terminate this Insertion Order Agreement without any
further obligation or liability of any kind (other than any
liability incurred by either party prior to such date) to the
other party on account of such termination. In the event of such
termination, Advertiser shall have no further payment
obligations under this Insertion Order Agreement other than
payment obligations due and payable at the time of termination.
3. Additional Promotions.
---------------------
a. Phase I. During the Phase I Promotions, from time to time, Advertiser
-------
shall have the right to purchase up to [***]* worth of additional
---
from AOL subject to the following restrictions:
i Advertiser shall purchase such additional impressions in minimum
increments of [***]* at a CPM value that is equivalent to the
----
CPM value of comparable types of provided hereunder, pursuant to
an AOL Insertion Order Agreement entered into by Advertiser and
AOL (an "Insertion Order") which will be attached hereto as an
exhibit,
ii. Advertiser shall submit the relevant Insertion Order to AOL at
least five (5) days prior to the date on which Advertiser wishes
to begin receiving impressions; and
iii. AOL's obligation to deliver any additional impressions pursuant
to this Section 3 shall be subject to the availability of
advertising inventory on the AOL Service from which AOL can
deliver such additional impressions.
b. Phase II. During the Phase II Promotions, from time to time,
--------
Advertiser shall have the right to purchase up to [***]* worth of
---
additional impressions from AOL subject to the restrictions contained
in Section 3(a)(i), (ii) and (iii). Notwithstanding the foregoing, in
the event that the transaction between AOL and Advertiser which is
contemplated under Section 9 hereof is not consummated, or if
Advertiser expends less than the amounts earmarked for such
transactions, Advertiser will use the funds earmarked for such
transaction (or any remaining portion thereof) to purchase up to
[***]* of additional impressions from AOL subject to the provisions
---
Section 3(a)(i), (ii) and (iii).
*[***]Confidential treatment has been requested for the bracketed
portions. The confidential redacted portion has been omitted and
filed separately with the Securities and Exchange Commission.
5
<PAGE>
4. Product Parity. Advertiser will ensure that the prices, terms and
--------------
conditions for the Advertiser Products in the Affiliated Advertiser Site
are no less favorable than the prices, terms and conditions on which the
Advertiser Products or substantially similar products are offered by or on
behalf of Advertiser through any other distribution channels.
5. Special Offers/Member Benefits. Advertiser will generally promote through
------------------------------
the Affiliated Advertiser Site any special or promotional offers made
available by or on behalf of Advertiser through any other distribution
channels directed primarily at a consumer audience (i.e., non-corporate
customers). Advertiser shall not be required to comply with the foregoing
provision if compliance therewith would result in a breach by Advertiser of
any contractual arrangements with third parties, and it is understood by
the parties that the foregoing shall not prevent Advertiser from providing
one time special offers which may not be appropriate for AOL users. In
addition, Advertiser shall promote (a) at least four (4) special offers on
the Affiliated Advertiser Site that are exclusively available to AOL users
(the "AOL Special Offers") and (b) at least one special offer in connection
with the Stamp Days Promotions described in Section 10 hereof (the "Stamp
Days Promotion Special Offer"). AOL Special Offers made available by
Advertiser shall provide a substantial benefit to AOL users as reasonably
determined by Advertiser, either by virtue of a meaningful price discount,
product enhancement, unique service benefit or other special feature.
Advertiser shall have the right to promote special or promotional offers to
AOL users which in addition to the promotion of Advertiser, may promote
other third parties; provided that, (i) such third parties cannot be
entities that are reasonably construed to be competitive with AOL, (ii) AOL
shall have the right to review and approve such third parties prior to the
placement of such special or promotional offers, and (iii) such special or
promotional offers shall link only to the Affiliated Advertiser Site
(unless otherwise agreed upon by the parties) and shall represent no more
than ten percent (10%) of the special or promotional offers offered
hereunder. Advertiser will provide AOL with reasonable prior notice of the
AOL Special Offers and the Stamp Days Promotion Special Offer so that AOL
can market the availability of such special offers in the manner AOL deems
appropriate in its editorial discretion.
6. Advertiser Promotion of AOL. Subject to Advertiser's existing contractual
---------------------------
arrangements, within Advertiser's web sites on the World Wide Web portion
of the Internet that are not co-branded with a third party (each an
"Advertiser Web Site"), at AOL's option, Advertiser shall include one of
the following (each an "AOL Promo"): (i) a prominent promotional banner or
button having a size, prominence and placement location as mutually agreed
upon by the parties (but in no event shall such button have a size,
prominence or placement location that is less favorable, in any respect,
than the size, prominence or placement location provided to any other third
party) to promote such AOL products or services as AOL may designate (for
example, the America Online brand service, the CompuServe brand service,
the AOL.com site, any of the Digital City services or the AOL Instant
Messenger service); or (ii) a prominent "Try AOL" feature having a size,
prominence and placement location as mutually agreed upon by the parties
(but in no event shall such button have a size, prominence or placement
location that is less favorable, in any respect, than the size, prominence
or placement location provided to any other third party) through which
users can obtain promotional information about AOL products or services
designated by AOL and, at AOL's option, download or order the then-current
version of client software for such AOL products or services. AOL will
provide the creative content to be used in the AOL Promo (including
designation of links from such content to other content pages). To the
extent Advertiser notifies AOL of reasonable complaints or concerns
regarding the AOL Promo or any other content or materials linked thereto or
associated therewith ("Objectionable AOL Content"), AOL will, to the extent
such Objectionable AOL Content is within AOL's control, use commercially
reasonable efforts to respond in good faith to such complaints or concerns.
Advertiser shall use reasonable efforts to post (or update, as the case may
be) the creative content supplied by AOL within the spaces for the AOL
Promos within five days of its receipt of such content from AOL. In the
event that AOL elects to serve the AOL Promos to the Advertiser Web Site
from an ad server controlled by AOL or its agent, Advertiser shall take all
reasonable operational steps necessary to facilitate such ad serving
arrangement including, without limitation, inserting HTML code designated
by AOL on the pages of the Advertiser Web Site on which the AOL Promos will
appear. In addition, in Advertiser's television, radio, print and "out of
home" (e.g., buses and billboards) advertisements and in any publications,
programs, features or other forms of media over which Advertiser exercises
at least partial editorial control, Advertiser will include specific
references or mentions (verbally where possible) of the availability of the
Affiliated Advertiser Site through the AOL Service, which are at least as
prominent as any references that Advertiser makes to any Advertiser Web
Site (by way of site name, related company name, URL or otherwise). Without
limiting the generality of the foregoing, (i) Advertiser's listing of the
"URL" for any Advertiser Web Site will be accompanied by an equally
prominent listing of the "keyword" term on AOL for the Affiliated
Advertiser Site (if any) and (ii), Advertiser shall use commercially
reasonable efforts to promote any special offers offered on the AOL Service
through its offline promotional efforts (e.g., cable and or television
advertising buys). In connection with the foregoing, AOL will pay
Advertiser AOL's then current standard bounty fee for any new subscribers
to the AOL Service who subscribe to the AOL Service through the AOL Promo.
7. Functionality of Advertiser Product. In the event that any Advertiser
------------------------------------
Products (or any software associated therewith) that are promoted and sold
through the Advertisements result in a poor user experience for a
significant number of AOL users (e.g., poor user interface, incompatible
software, unusable software, software which contain bugs or viruses which
substantially reduces the usability of the Advertiser Product, or software
which does not perform the functions for which it is advertised), and
provided that Advertiser does not remedy such poor user experience within
fifteen (15) days (or thirty (30) days in the event that such poor user
experience is directly attributable to the USPS) after written notice from
AOL (during which fifteen (15) day or thirty (30) day period AOL shall have
the right to decrease or cease the placement of the Advertisements, and in
such event, AOL will be relieved of the proportionate amount of any
Advertisement placement commitments made to Advertiser by AOL hereunder
corresponding to such decrease in placements), AOL shall have the right to
terminate this Insertion Order Agreement upon thirty (30) days written
notice to Advertiser. In the event of such termination, Advertiser shall
have no further payment obligations under this Insertion Order Agreement
other than payment obligations due and payable at the time of termination.
6
<PAGE>
8. Distribution of Advertiser Software with AOL Store Fulfillment Packages.
-----------------------------------------------------------------------
AOL will facilitate the distribution of the software developed by
Advertiser which is necessary for the operation of Advertiser's electronic
stamp product and enables end-users to purchase postal services
electronically through Advertiser's network (the "Advertiser Software")
through a third party package fulfillment distributor (the "Distributor")
in accordance with the terms and conditions of the agreement attached
hereto as Exhibit D. Advertiser will pay the Distributor up to a maximum
amount of [***]* (the "Set-Aside Payment") in consideration for the
---
distribution of the Advertiser Software. In the event that Advertiser shall
not have used the entire Set-Aside Payment in connection with the
distribution of the Advertiser Product by December 1, 1999, Advertiser will
use the remaining portion of the Set-Aside Payment to purchase additional
impressions on the AOL Service, subject to the restrictions provided in
Section 3(a)(i), (ii) and (iii) hereof.
9. Distribution of Advertiser Software with AOL 4.0 CD-ROMS. AOL will
--------------------------------------------------------
distribute the Advertiser Software of Advertiser in accordance with the
provisions of Exhibit E attached hereto.
10. Stamp Days Promotion/Rainman Production. With respect to the Special
---------------------------------------
Campaign Promotion: Stamp/Postage Days listed on Exhibit B (each a "Stamp
Day Promotion" and collectively "Stamp Day Promotions"), AOL will work with
Advertiser to create various editorial and programming content related to
the Advertiser Products. AOL shall be responsible for the creation of a
rainman area (the "Stamp Rainman Area") on the AOL Service to promote Stamp
Days. Advertiser shall be responsible for providing AOL with content and
promotions to be promoted by AOL during Stamp Days. At Advertiser's option,
the Stamp Days promotion may occur over a period of three (3) contiguous
days or three (3) separate and unrelated days and Advertiser shall provide
AOL with no less than forty five (45) days notice prior to the time that
Advertiser wishes to receive the Stamp Days promotion or a Stamp Day
promotion. In addition to the Stamp Rainman Area, AOL will program and
create at least one other rainman area for Advertiser which will contain
such content and promotions as mutually agreed upon by the parties hereto
(the "Additional Rainman Area" and together with the Stamp Rainman Area the
"Rainman Areas"). AOL will incur the expense of creating the Rainman Areas
up to a maximum expenditure of [***]*. If the costs associated with the
---
Rainman Areas exceed [***]*, Advertiser shall be responsible for such
---
excess amounts.
11. Keyword: Stamps. AOL will create a "referee" screen in the appropriate
---------------
areas of the AOL Service to which Keyword Stamp or Stamps will link. Such
"referee" screen will contain programming created by AOL in its sole
discretion, provided that, AOL shall provide Advertiser with a button or
link on such screen which will link to the Advertiser Site or any other
area agreed upon by the parties and Advertiser shall be the only provider
of online postal services (except for specialty or collectible non-
electronically issued postage stamp providers) to be provided with a button
or link on such "referee" screen. In addition to the foregoing, subject to
the provisions hereof, Advertiser shall have the right to use the AOL
Keyword Term Stamps.com and one additional AOL Keyword Term as mutually
agreed upon by the parties.
* [***] Confidential treatment has been requested for the bracketed portions.
The confidential redacted portion has been omitted and filed separately with the
Securities and Exchange Commission.
7
<PAGE>
EXHIBIT B
---------
PHASE II PROMOTIONS
<TABLE>
<CAPTION>
---------------------------------------------------------------------------------------------------------------
Impressions Percent of Average CPM Total Cost
Carriage
---------------------------------------------------------------------------------------------------------------
<C>
<C>
<C>
<C>
Level A -- Highly Targeted [***]* [***]* [***]* [***]*
Level B - Targeted [***]* [***]* [***]* [***]*
Level C -- Relevant Broad Reach [***]* [***]* [***]* [***]*
Campaign Promotion: Stamp Days [***]* [***]* [***]* [***]*
---------------------------------------------------------------------------------------------------------------
Total Campaign [***]* [***]* [***]* $1,700,350
---------------------------------------------------------------------------------------------------------------
</TABLE>
Level A Promotions Type of
------------------ -------
Promotion
---------
AOL Network
Workplace Business Services: Permanent
Postage Category placement (top
listing in such area
for so long
as such area
retains its current
design)-
Workplace Professions: Sponsorship
Admin/Support treatment
Workplace Professions: Home Sponsorship
Business treatment
Workplace Professions: MultiLevel Sponsorship
Marketing treatment
Workplace Newsletter: Specials Feature link
Section integration
Computing Download Software Banner rotation
Computing Download Software: Sponsorship &
Business/Finance list box*
Shopping: Computer Software Tenant position
Shopping: Mother's Day Holiday Slideshow
Catalog integration
Shopping: Father's Day Holiday Slideshow
Catalog integration
Shopping: Gift Reminder Service Feature link
14 day** integration
Personal Finance: Tax Special Sponsorship
(banner only)
Personal Finance: Tax Area** Banner rotation
Mail Center Main Screen Banner rotation
Classifieds: Employment Banner rotation
AOL.com
AOL.com Search Terms***
CompuServe
----------
Mindset Package: Business Banner rotation
Professional/News
Mindset Package: Home & Family Banner rotation
* [***] Confidential treatment has been requested for the bracketed portions.
The confidential redacted portion has been omitted and filed separately with the
Securities and Exchange Commission.
8
<PAGE>
Level B Areas
-------------
AOL.com
AOL.COM or NetFind Home Page/s Banner rotation
slots
My News - Run of Top News Banner rotation
My News - Run of Business News Banner rotation
Digital City
Digital City: Market Selection Banner rotation
Level C Areas
-------------
AOL Network
Email Banner rotation
News Banner rotation
AOL Network Run of Service Banner rotation
AOL.com
AIM Banner rotation
Special Campaign Promotion:
---------------------------
Stamp/Postage Days (3-day
--------------------------
promotion)
----------
Email
News
AOL Network
Remnant and Promotional Support
Vehicles
-----------------------------------------------------------------------
*Subject to Advertiser's compliance with all technical and programming
requirements (including quality assurance testing) of AOL.
**Advertiser will only be provided with these Promotions if the Phase
II Promotions shall have begun prior to April 15, 1999.
*** List to include: mail, mailing, post, postal, postage, stamp, stamps
------------------------------------------------------------------------
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EXHIBIT C
---------
AOL Advertising Standard Terms and Conditions
---------------------------------------------
1. Advertising Material/Display. Advertiser acknowledges that the sole
----------------------------
obligation of America Online, Inc. ("AOL") is to display an advertisement
or icon (the "Advertisement") from Advertiser which conforms to the
specifications set forth in the applicable Insertion Order Agreement which
has been executed by AOL and Advertiser (the "Insertion Order," and,
collectively with these Standard Terms and Conditions, the "Insertion Order
Agreement") through the standard narrowband U.S.-based America Online brand
service (excluding any sub-products, sub-services or third party areas
which may be offered therein) or such other U.S.-based AOL property as may
be expressly described as the site for placement in the Insertion Order
(the "AOL Service"). Subject to Advertiser's reasonable approval, AOL will
have the right to fulfill its promotional commitments with respect to the
Advertisements by providing Advertiser with comparable placements of the
Advertisements in alternative areas of the AOL Service. AOL reserves the
right to redesign or modify the organization, structure, "look and feel"
and other elements of the AOL Service (including any redesign of the
Workplace Business Services: Postage Category) at its sole discretion at
any time without prior notice (a "Redesign"). In the event such
modifications will materially and adversely affect the placement of the
Advertisement, AOL will work with Advertiser to display the Advertisement
in a comparable location and manner that is reasonably satisfactory to
Advertiser. Except as expressly provided in the Insertion Order, the
specific nature and positioning of the Advertisement will be as determined
by AOL in its editorial discretion. Advertiser agrees that AOL has the
right to market, display, perform, transmit and promote the Advertisement
through the AOL Service and in connection therewith, subject to the terms
and conditions hereof, Advertiser hereby grants to AOL a non-exclusive,
non-sublicensable (except to an Affiliate of AOL) and non-transferable
license to use the names specified by Advertiser from time to time which
Advertiser shall have a legal right to use (the "Advertiser Marks") in the
Advertisements and in connection with the advertising, marketing and
promotion of the Advertiser Products on the AOL Service. Additionally, AOL
shall have the right to use the Advertiser Marks in connection with the
distribution of the Advertiser Software in accordance with Exhibit E. AOL
hereby acknowledges and agrees that (i) except as set forth herein, AOL has
no rights, title or interest in or to the Advertiser Marks, (ii) AOL shall
not challenge Advertiser's exclusive rights in and to the Advertiser Marks,
(iii) AOL shall not apply for registration of the Advertiser Marks anywhere
in the world, (iv) AOL shall not alter any of the Advertiser Marks in any
way and shall use the Advertiser Marks exactly as provided by Advertiser,
(v) the use by AOL of the Advertiser Marks shall inure to the benefit of
Advertiser with respect to Advertiser's rights and ownership in and to the
Advertiser Marks, and (vi) Advertiser reserves all rights not expressly
granted to AOL hereunder in connection with the Advertiser Marks. AOL shall
use reasonable efforts to notify Advertiser promptly of any infringement of
any copyrights, trademarks, or other intellectual property or proprietary
rights relating to the Advertiser Software of which AOL is aware.
Advertiser may, in its sole discretion, take or not take whatever action it
believes is appropriate in connection with any such infringement. In the
event that AOL intends to use an Advertiser Mark in a manner which was not
previously approved by Advertiser, AOL shall provide notice to Advertiser
of its intended use of such Advertiser Mark, Advertiser shall then have
three (3) business days to respond to AOL's proposed use of such Advertiser
Mark, and if Advertiser does not respond in such three (3) day period,
AOL's use of such Advertiser Mark shall be deemed approved. Additionally,
Advertiser agrees that users of the AOL Service have the right to access
and use the Advertisement together with any content or materials linked to
the Advertisement (the "Advertiser Content"). The Advertiser Content (a)
shall not offer or promote any other products and/or services other than
those expressly provided for in the relevant Insertion Order, (b) will link
only to the site specified on the Insertion Order and (c) shall not (1)
disparage AOL; (2) promote any product or service which is reasonably
competitive with one or more of the principal products or services offered
through AOL's products and services (other than the Advertiser Products)
("Competitive Products") on any page of the Affiliated Advertiser Site
which is directly linked to the AOL Service; (3) be in contravention of
AOL's generally applicable advertising standards and practices, as such may
be modified by AOL from time to time; or (d) violate any applicable law,
regulation or third party right (including, without limitation, any
copyright, trademark, patent or other proprietary right). Additionally,
Advertiser shall consistently update the Advertiser Content and will
review, delete, edit, create, update and otherwise manage such content in
accordance with the terms of this Insertion Order Agreement. In no event
shall the Advertisement or the linked area state or imply that (i) the
Advertisement was placed by AOL or (ii) that AOL endorses Advertiser's
products or services. To the extent AOL notifies Advertiser of reasonable
complaints or concerns (e.g., from an AOL member) regarding the Advertiser
Content or any other content or materials linked thereto or associated
therewith ("Objectionable Content"), Advertiser will, to the extent such
Objectionable Content is within Advertiser's control, use commercially
reasonable efforts to respond in good faith to such complaints or concerns.
AOL may alter or shorten the flight dates set forth in the Insertion Order
if advertising materials required per the Insertion Order are not provided
in a timely manner, and Advertiser shall not be entitled to any refund or
proration for delays caused by Advertiser's failure to deliver such
materials.
2. Operations. Unless expressly provided for elsewhere in this Insertion
----------
Order Agreement, AOL will have no obligation to provide any creative,
design, technical or production services to Advertiser ("Services").
Delivery by AOL of any such Services shall be subject to (i) AOL's
availability to perform the requested work, (ii) execution by both parties
of a separate work order specifically outlining the Services to be provided
and the fees to be paid by Advertiser for such Services and (iii) payment
in advance by Advertiser of such fees. Advertiser will ensure that the
Advertiser Content and the site linked to the Advertiser Content are in
compliance with AOL's then-current, generally applicable technical
standards and will take all reasonable steps necessary to conform the
Advertiser Content to the then-existing technologies identified by AOL
which are optimized for the AOL Service (including, without limitation, any
"quick checkout" tool which AOL may implement to facilitate purchase of
products by AOL users). In the event that the Advertiser Content or the
site linked to the Advertiser Content fails to comply with AOL's generally
applicable technical standards, AOL shall have the right to cease or
decrease the placement of the Advertisements, and if Advertiser is unable
to cure such non-compliance within five business days after notice from
AOL, AOL shall have the right to terminate this Insertion Order Agreement.
Additionally, AOL will be entitled to discontinue links to Advertiser
Content to the extent such Advertiser Content will, in AOL's good faith
judgment, adversely affect the operations of the AOL Service. Advertiser
will bear full responsibility for all customer service, including without
limitation, order processing, billing, fulfillment, shipment, collection
and other customer support associated with any products or services
offered, sold or licensed through Advertiser's site, and AOL will have no
obligations whatsoever with respect thereto. Advertiser will take all steps
necessary to ensure that any contest, sweepstakes or similar promotion
conducted or promoted through the Advertiser Content complies with all
applicable federal, state and local laws and regulations.
3. Search Terms/Keywords. To the extent Advertiser is purchasing an
----------------------
Advertisement related to an Internet-based "search" term, Advertiser
represents and warrants that Advertiser has the legal rights necessary to
utilize such search term in connection with the Advertisement. Any
"keyword" terms for navigation from within the proprietary America Online
brand service ("AOL Keyword Terms") (as contrasted to Internet-based search
terms) which may be made available to Advertiser shall be (i) subject to
availability and (ii) limited to the combination of the keyword modifier
combined with a
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registered trademark of Advertiser. AOL reserves the right to revoke at any
time Advertiser's use of any AOL Keyword Terms which do not incorporate
registered trademarks of Advertiser. Advertiser acknowledges that its
utilization of any AOL Keyword Term will not create in it, nor will it
represent it has, any right, title or interest in or to such AOL Keyword
Term, other than the right, title and interest Advertiser holds in
Advertiser's registered trademark independent of the AOL Keyword Term.
4. Payment; Cancellation. Advertiser agrees to pay AOL for all advertising
---------------------
displayed in accordance with the agreed upon amounts and billing schedule
shown on the relevant Insertion Order. Advertising packages are
nonrefundable or proratable except to the extent otherwise expressly
contemplated hereunder. Should AOL fail to display the Advertisements in
accordance with the Insertion Order due to Advertiser's failure to comply
with any requirement of the Insertion Order or this Insertion Order
Agreement, Advertiser will remain liable for the full amount indicated on
the Insertion Order. In the event of a Redesign, if AOL and Advertiser
cannot reach agreement on a substitute placement, Advertiser shall have the
right to cancel the Advertisement upon thirty (30) days advance written
notice to AOL. In such case, Advertiser will only be responsible for the
pro-rata portion of payments attributable to the period from the
commencement of the Insertion Order Agreement through the effectiveness of
such cancellation (the "Pro Rata Payments"). AOL reserves the right to
cancel and remove at any time any Advertisement in the event that AOL
reasonably and in good faith believes that further display of the
Advertisement will expose AOL to liability or other adverse consequences.
In the event of such a cancellation, Advertiser will only be responsible
for the Pro-Rata Payments. Advertiser may not resell, trade, exchange,
barter or broker to any third-party any advertising space which is the
subject of this Insertion Order Agreement.
5. Usage Data. AOL will provide Advertiser with usage information related to
----------
the Advertisement in substance and form determined by AOL, consistent with
its then-standard reporting practices. Advertiser may not distribute or
disclose usage information to any third party without AOL's prior written
consent. Additionally, AOL will not disclose usage information to a third
party in a manner which connects Advertiser to such usage information.
6. Each party acknowledges that Confidential Information may be disclosed to
the other party during the course of this Insertion Order Agreement. Each
party agrees that it will take reasonable steps, at least substantially
equivalent to the steps it takes to protect its own proprietary
information, during the term of this Insertion Order Agreement, and for a
period of three years following expiration or termination of this Insertion
Order Agreement, to prevent the duplication or disclosure of Confidential
Information of the other party, other than by or to its employees or agents
who must have access to such Confidential Information to perform such
party's obligations hereunder, who will each agree to comply with this
Section 6. Notwithstanding the foregoing, either party may issue a press
release or other disclosure containing Confidential Information without the
consent of the other party, to the extent such press release or disclosure
is required by law, rule, regulation or government or court order. In such
event, the disclosing party will provide at least five (5) business days
prior written notice of such proposed disclosure to the other party.
Further, in the event such disclosure is required of either party under the
laws, rules or regulations of the Securities and Exchange Commission or any
other applicable governing body, such party will (i) redact mutually
agreed-upon portions of this Insertion Order Agreement to the fullest
extent permitted under applicable laws, rules and regulations and (ii)
submit a request to such governing body that such portions and other
provisions of this Insertion Order Agreement receive confidential treatment
under the laws, rules and regulations of the Securities and Exchange
Commission or otherwise be held in the strictest confidence to the fullest
extent permitted under the laws, rules or regulations of any other
applicable governing body. For the purposes hereof, "Confidential
Information" shall mean any information relating to or disclosed in the
course of the Insertion Order Agreement, which is or should be reasonably
understood to be confidential or proprietary to the disclosing party,
including, but not limited to, the material terms of this Insertion Order
Agreement, information about AOL users, technical processes and formulas,
source codes, product designs, sales, cost and other unpublished financial
information, product and business plans, projections, and marketing data.
"Confidential Information" will not include information (a) already
lawfully known to the receiving party and which the receiving party has a
reasonable basis to believe it may use or disclose without restriction, (b)
independently developed by the receiving party, (c) disclosed in published
materials except as disclosed by the receiving party in breach of this
Section 6, (d) generally known to the public except as disclosed by the
receiving party in breach of this Section 6, or (e) lawfully obtained from
any third party without restriction.
7. Limitation of Liability; Disclaimer; Indemnification.
----------------------------------------------------
(A) EXCEPT AS PROVIDED IN SECTION 7(C)(I)(A) AND SECTION 7(C)(II)(A)
BELOW, UNDER NO CIRCUMSTANCES SHALL EITHER PARTY BE LIABLE TO THE OTHER
PARTY FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR EXEMPLARY DAMAGES
(EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES),
ARISING FROM ANY ASPECT OF THE ADVERTISING RELATIONSHIP PROVIDED FOR
HEREIN. EXCEPT AS PROVIDED IN SECTION 7(C) LIABILITY ARISING UNDER THIS
INSERTION ORDER AGREEMENT WILL BE LIMITED TO DIRECT, OBJECTIVELY MEASURABLE
DAMAGES, AND THE MAXIMUM LIABILITY OF ONE PARTY TO THE OTHER PARTY FOR ANY
CLAIMS ARISING IN CONNECTION WITH THIS INSERTION ORDER AGREEMENT WILL NOT
EXCEED THE AGGREGATE AMOUNT TO BE PAID BY ADVERTISER DURING THE YEAR IN
WHICH THE LIABILITY ACCRUES.
(B)(I)(A) AOL MAKES NO AND HEREBY SPECIFICALLY DISCLAIMS ANY
REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, REGARDING THE AOL
SERVICE OR ANY PORTION THEREOF, INCLUDING ANY IMPLIED WARRANTY OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE AND IMPLIED WARRANTIES
ARISING FROM COURSE OF DEALING OR COURSE OF PERFORMANCE; WITHOUT LIMITING
THE GENERALITY OF THE FOREGOING, AOL SPECIFICALLY DISCLAIMS ANY WARRANTY
REGARDING (1) THE NUMBER OF PERSONS WHO WILL ACCESS THE ADVERTISER CONTENT
OR "CLICK-THROUGH" THE ADVERTISEMENTS, (2) ANY BENEFIT ADVERTISER MIGHT
OBTAIN FROM INCLUDING THE ADVERTISEMENT WITHIN THE AOL SERVICE AND (3) THE
FUNCTIONALITY, PERFORMANCE OR OPERATION OF THE AOL SERVICE WITH RESPECT TO
THE ADVERTISEMENTS, AND (B) EXCEPT AS SPECIFICALLY PROVIDED IN CLAUSE II
BELOW, ADVERTISER MAKES NO AND HEREBY SPECIFICALLY DISCLAIMS ANY OTHER
WARRANTIES EXPRESS OR IMPLIED INCLUDING, WITHOUT LIMITATION, ANY IMPLIED
WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND
IMPLIED WARRANTIES ARISING FROM COURSE OF DEALING OR COURSE OF PERFORMANCE.
(II) Advertiser warrants to AOL that the Advertiser Software will, under
normal use, conform to the limited warranty contained in the Software
License Agreement (as defined in Exhibit E) applicable to the Advertiser
Software during the warranty period set forth in such Software License
Agreement (the "Warranty Period"). The foregoing warranty will apply only
to the version of the Advertiser Software distributed by AOL in accordance
with Exhibit E. If a Customer (as defined in Exhibit E) contacts Advertiser
during the Warranty Period claiming a breach of the warranty set forth in
the Software License Agreement provided with the Advertiser Software
distributed by AOL in accordance with Exhibit E, Advertiser will use
reasonable efforts to resolve the claim directly with such Customer by
correcting or replacing such Advertiser Software. If a Customer contacts
AOL during the Warranty Period claiming any such breach of warranty, AOL
will use reasonable efforts to promptly refer the matter to Advertiser.
(C) (i) Advertiser hereby agrees to indemnify, defend and hold harmless AOL
and the officers, directors, agents, affiliates,
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distributors, franchises and employees of AOL from and against all claims,
actions, liabilities, losses, expenses, damages and costs (including,
without limitation, reasonable attorneys' fees) that may at any time be
incurred by any of them by reason of any claims, suits or proceedings to
the extent such claims, suits or proceedings arise out of or are related
to: (a) third party claims (1) for libel, defamation, violation of right of
privacy or publicity, copyright infringement, trademark infringement or
other infringement of any third party right, fraud, false advertising,
misrepresentation, product liability or violation of any law, statute,
ordinance, rule or regulation throughout the world in connection with the
Advertisements or Advertiser Content provided by Advertiser to AOL
hereunder or in connection with the Advertiser Software distributed by AOL
hereunder (collectively referred to as the "Advertiser Rights Violations");
provided, however, that Advertiser shall have no such indemnification
obligation to the extent that any alleged Advertiser Rights Violation
arises from or in connection with any (x) modification or other alteration
of any Advertisement or Advertiser Content provided to AOL by Advertiser
hereunder, without Advertiser's prior approval, (y) (i) use of any
Advertisement or Advertising Content other than in a manner specified
hereunder or authorized by Advertiser (ii) claim based upon the combination
of the Advertisement, the Advertising Content, or the Advertiser Software
with other content, software technology or materials which Advertiser has
not approved, or (z) (i) any Advertiser Software that has been modified by
AOL without the prior consent of Advertiser, (ii) use of the Advertiser
Software by AOL in a manner which is beyond the scope of the license
granted to it by Advertiser pursuant to Exhibit E, (iii) AOL's use of the
Advertiser Software after notice from Advertiser of infringement or
misappropriation ((i) (ii) and (iii) collectively the "Advertiser Software
Exceptions"); (2) any material breach by Advertiser of any duty,
representation or warranty under this Insertion Order Agreement; or (3) any
contaminated file, virus, worm or Trojan horse originating solely from the
Advertisements or Advertiser Content, or (4) solely arising out of or in
connection with the ability of the Advertiser Software distributed by AOL
hereunder to process calendar date values, including but not limited to,
calendar date values from January 1, 1999 through or beyond January 1,
2000, and in processing such calendar values, to operate in accordance with
the procured system documentation or whether any or all data fields for
calendar date values and data are four digit fields capable of indicating
century and millennium or addressing leap years correctly, and (b) any
contaminated file, virus, worm or Trojan horse originating solely from the
Advertisements or Advertiser Content.
(ii) AOL hereby agrees to indemnify, defend and hold harmless Advertiser
and the officers, directors, agents, affiliates, distributors, franchises
and employees of Advertiser from and against all claims, actions,
liabilities, losses, expenses, damages and costs (including, without
limitation, reasonable attorneys' fees) that may at any time be incurred by
any of them by reason of any claims, suits or proceedings to the extent
such claims, suits or proceedings arise out of or are related to: (a) third
party claims: (1) for libel, defamation, violation of right of privacy or
publicity, copyright infringement, trademark infringement or other
infringement of any third party right, fraud, false advertising,
misrepresentation, product liability or violation of any law, statute,
ordinance, rule or regulation throughout the world in connection with the
AOL Promos or content provided by AOL to Advertiser hereunder (collectively
referred to as the "AOL Rights Violations"); provided, however, that AOL
shall have no such indemnification obligation to the extent that any
alleged AOL Rights Violation arises from any (x) modification or other
alteration of any AOL Promo or AOL Promo content provided to Advertiser by
AOL, without AOL's prior approval, or (y) (i) use of such AOL Promo or AOL
Promo content other than in a manner specified hereunder or authorized by
AOL, or (ii) claim based upon the combination of the AOL Promo or AOL Promo
content with other content, software technology or materials which AOL has
not approved; (2) any infringement of any patent or other intellectual
property right which results from the Advertiser Software Exceptions, (3)
AOL's grant of a warranty to any Customer which exceeds the limited
warranty provided by Advertiser above, and (4) any material breach by AOL
of any duty, representation or warranty under this Insertion Order
Agreement, and (b) AOL's failure to comply with all applicable laws,
regulations, authorizations and rules related to the export or re-export of
any technical data or online postal services.
(iii) Each party (the "Indemnitee") will promptly notify the other party
(the "Indemnitor") of any claim, action or demand (an "Action") for which
indemnity is claimed, permit the Indemnitor to have sole authority to
defend and/or negotiate a settlement of such Action, with counsel of the
Indemnitor's choice and reasonably acceptable to the Indemnitee, and
provide reasonable assistance and cooperation to the Indemnitor in the
investigation, defense and settlement of such Action at the Indemnitor's
expense. The Indemnitee shall be entitled to participate fully in the
defense of any Action at its own expense with counsel of its choice. The
Indemnitor shall have no obligation for any settlement that the Indemnitor
does not approve in writing; provided that the Indemnitor shall not,
without the Indemnitee's prior written consent, enter into any settlement
or compromise that would impose any obligation upon the Indemnitee, impair
the rights of the Indemnitee or require the Indemnitee to pay any amount.
This section will survive the completion, expiration, termination or
cancellation of this Insertion Order Agreement.
8. Solicitation.
------------
(a) Advertiser will not send unsolicited, commercial e-mail (i.e., "spam")
through or into AOL's products or services, absent a prior business
relationship, and will comply with any other standard AOL policies and
limitations relating to distribution of bulk e-mail solicitations or
communications through or into AOL's products or services (including,
without limitation, the requirement that Advertiser provide a prominent and
easy means for the recipient to "opt-out" of receiving any future
commercial e-mail communications from Advertiser. Advertiser will not use
the Advertisement or any other aspect of AOL's products or services to
promote or solicit on behalf of a Competitive Product.
(b) Advertiser shall ensure that its collection, use and disclosure of
information obtained from AOL members under this Insertion Order Agreement
("Member Information") complies with (i) all applicable laws and
regulations and (ii) AOL's standard privacy policies, available on the AOL
Service at the keyword term "Privacy" (or, in the case of Advertiser's
site, Advertiser's standard privacy policies so long as such policies are
prominently published on the site and provide adequate notice, disclosure
and choice to users regarding Advertiser's collection, use and disclosure
of user information).
(c) Advertiser shall ensure that each request of Member Information shall
clearly and conspicuously specify to the AOL members at issue the purpose
for which the Member Information collected by Advertiser shall be used (the
"Specified Purpose"). Advertiser shall limit use of the Member Information
to the Specified Purpose. In the case of AOL members who purchase products
or services from Advertiser, Advertiser will be entitled to incorporate
such members into Advertiser's aggregate lists of customers; provided that
Advertiser shall in no way: (i) disclose Member Information in a manner
that identifies AOL members as end-users of an AOL product or service (or
in any other manner that could reasonably be expected to facilitate use of
such information by or on behalf of a Competitive Product); or (ii)
otherwise use such Member Information in connection with marketing of a
Competitive Product. This section shall survive the completion, expiration,
termination or cancellation of this Insertion Order Agreement.
9. Miscellaneous. The parties to this Insertion Order Agreement are
-------------
independent contractors. Neither party is an agent, representative or
partner of the other party. Neither party shall have any right, power or
authority to enter into any agreement for or on behalf of, or incur any
obligation or liability of, or to otherwise bind, the other party. The
failure of either party to insist upon or enforce strict performance by the
other party of any provision of this Insertion Order Agreement or to
exercise any right under this Insertion Order Agreement shall not be
construed as a waiver or relinquishment to any extent of such party's right
to assert or rely upon any such provision or right in that or any other
instance. Except where otherwise specified herein or in the Insertion
Order, the rights and remedies granted to a party under this Insertion
Order Agreement are cumulative and in addition to, and not in lieu of, any
other rights
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or remedies which the party may possess at law or in equity. Advertiser
shall not (i) issue any press releases or public statements concerning the
existence or terms of this Insertion Order Agreement or (ii) use, display
or modify AOL's trademarks in any manner absent AOL's express prior written
approval. Either party may terminate this Insertion Order Agreement (a) at
any time with written notice to the other party in the event of a material
breach of this Insertion Order Agreement by the other party, which remains
uncured after thirty days written notice thereof; (b) immediately following
written notice to the other party if the other party (1) ceases to do
business in the normal course, (2) becomes or is declared insolvent or
bankrupt, (3) is the subject of any proceeding related to its liquidation
or insolvency (whether voluntary or involuntary) which is not dismissed
within ninety (90) calendar days, or (4) makes an assignment for the
benefit of creditors. Additionally, in the event of a change of control of
Advertiser which results in control of more than 50% of the equity
securities of Advertiser or the power to vote for the election of directors
or other governing authority of Advertiser by an AOL Competitor , AOL may
terminate this Insertion Order Agreement by providing forty five (45) days
prior written notice of such intent to terminate. For the purposes hereof,
an "AOL Competitor" shall be any entity listed on Exhibit F attached
hereto; provided, however, that from time to time AOL shall have the right
to add to such list as reasonably determined by AOL, provided that AOL may
add to such list no more than once every three months. Notwithstanding the
foregoing, to the extent that Advertiser can demonstrate to AOL's
reasonable satisfaction that Advertiser is engaged in negotiations with any
third party that is not listed on Exhibit F, which negotiations would
result in a change of control of Advertiser as provided herein, AOL shall
not have the right to add such third party to the list after Advertiser has
so reasonably demonstrated to AOL that Advertiser is in negotiations with
such third party. This Insertion Order Agreement sets forth the entire
agreement between Advertiser and AOL, and supersedes any and all prior
agreements of AOL or Advertiser with respect to the transactions set forth
herein. No change, amendment or modification of any provision of this
Insertion Order Agreement shall be valid unless set forth in a written
instrument signed by the party subject to enforcement of such amendment.
Advertiser shall not assign this Insertion Order Agreement or any right,
interest or benefit under this Insertion Order Agreement without the prior
written consent of AOL. Assumption of the Insertion Order Agreement by any
successor to Advertiser (including, without limitation, by way of merger or
consolidation) shall be subject to AOL's prior written approval. Subject to
the foregoing, this Insertion Order Agreement shall be fully binding upon,
inure to the benefit of and be enforceable by the parties hereto and their
respective successors and assigns. In the event that any provision of this
Insertion Order Agreement is held invalid by a court with jurisdiction over
the Parties to this Insertion Order Agreement, (i) such provision shall be
deemed to be restated to reflect as nearly as possible the original
intentions of the Parties in accordance with applicable law and (ii) the
remaining terms, provisions, covenants and restrictions of this Insertion
Order Agreement shall remain in full force and effect. Both parties shall
adhere to all applicable laws, regulations and rules relating to the export
of technical data and shall not export or re-export any technical data, any
products received from the other party or the direct product of such
technical data to any proscribed country listed in such applicable laws,
regulations and rules unless properly authorized. This Insertion Order
Agreement may be executed in counterparts, each of which shall be deemed an
original and all of which together shall constitute one and the same
document. Except with respect to any claims brought by Advertiser in
connection with Exhibit E or with respect to the AOL Promos, this Insertion
Order Agreement shall be interpreted, construed and enforced in all
respects in accordance with the laws of the Commonwealth of Virginia,
except for its conflicts of laws principles. Except as otherwise provided
herein, Advertiser hereby irrevocably consents to the exclusive
jurisdiction of the courts of the Commonwealth of Virginia and the federal
courts situated in the Commonwealth of Virginia in connection with any
action arising under this Insertion Order Agreement. With respect to any
claims brought by Advertiser in connection with Exhibit E or with respect
to the AOL Promos, such claims will be interpreted and enforced in
accordance with the laws of the State of California and AOL hereby consents
to the exclusive jurisdiction of the courts of the State of California and
the federal courts situated in the State of California in connection with
any claim brought by Advertiser in connection with Exhibit E or with
respect to the AOL Promos.
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EXHIBIT D
---------
AOL TO PROVIDE
--------------
14
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EXHIBIT E
---------
ADVERTISER SOFTWARE DISTRIBUTION TERMS AND CONDITIONS
-----------------------------------------------------
1. Terms and Conditions. The following terms and conditions shall govern the
--------------------
distribution by AOL of the advertiser software.
2. Definitions. As used in this Exhibit E, the following terms shall have the
-----------
following meanings:
"Affiliate" shall mean an entity in which AOL holds at least a nineteen
---------
percent (19%) equity interest.
"AOL Client" shall mean the object code form of the client software for
----------
Win16, Win32 and Mac developed and distributed by AOL that enables end-
users to subscribe to, access and use the AOL Service, and upgrades
thereto.
"Authorized Testing Service" shall mean any third-party person or entity
--------------------------
designated in writing by AOL, in its sole discretion, to offer support and
quality assurance services relating to interoperability of third party
products with the AOL Client and the AOL Service.
"Commerce Customer" shall mean any Customer of Advertiser acquired through
-----------------
the distribution of the Advertiser Software by AOL as provided hereunder
and who purchases the Advertiser Product at least two times.
"Customer" shall mean end-user customers of the Advertiser Software.
--------
"Documentation" shall mean the documentation provided to AOL by Advertiser
-------------
for use with the Advertiser Software. "Software "License Agreement" shall
---------------------------
mean Advertiser's standard software license agreement between Advertiser
and Customers, as provided by Advertiser to AOL for inclusion with the
Advertiser Software.
3. License Grant. Subject to all the terms and conditions of this Insertion
-------------
Order Agreement, Advertiser hereby grants to AOL and its Affiliates a
worldwide, non-exclusive, non-transferable, royalty-free license to use,
reproduce, market, promote and distribute to end users through its usual
and customary channels of distribution, solely to the limited extent and
for the express purposes stated herein, the Advertiser Software in object
code form, through CD-ROMs any other physical media containing the AOL
client.
4. Copying/Reverse Engineering. AOL agrees not to (i) disassemble, decompile
---------------------------
or otherwise reverse engineer the Advertiser Software or otherwise attempt
to learn the source code, structure, algorithms or ideas underlying the
Advertiser Software, (ii) take any action contrary to Advertiser's Software
License Agreement, except as expressly and unambiguously agreed upon by
Advertiser, (iii) alter or modify the Advertiser Software except as agreed
upon by Advertiser, (iv) attempt to disable any security devices or codes
incorporated in the Advertiser Software, or (v) allow or assist others to
do any of the foregoing.
5. Advertiser's Obligations.
------------------------
(i) Certification Requirements. AOL shall provide to Advertiser a written
--------------------------
copy of, and Advertiser shall comply with, all quality assurance and
testing requirements for the Advertiser Software to be distributed by
AOL hereunder, as may be reasonably amended by AOL from time to time,
and together with any other reasonable quality assurance and testing
requirements delivered by AOL in writing (including amendments) to
Advertiser, the ("Certification Requirements").
(ii) Support and Quality Assurance by the Authorized Testing Service. The
---------------------------------------------------------------
Authorized Testing Service shall provide support and quality
assurance testing with respect to the Advertiser Software and
interoperability of such products with the AOL Client and the AOL
Service. Support and quality assurance testing shall be provided on
terms and conditions to be worked out between Advertiser and the
Authorized Testing Service and at Advertiser's expense. In connection
with the foregoing, Advertiser shall deliver a master copy of the
Advertiser Software in object code form, along with any required
Documentation to the Authorized Testing Service and AOL no later than
May 15, 1999. The Authorized Testing Service shall perform quality
assurance testing on the Advertiser Products in accordance with the
Certification Requirements. If and when the Authorized Testing
Service determines that any such product meets the relevant
Certification Requirements, the Authorized Testing Service shall then
certify in writing that such product is a "Complying Product". AOL
shall use commercially reasonable efforts, if and to the extent
within its control and consistent with the purposes hereof, to help
expedite such testing processes by the Authorized Testing Service.
(iii) AOL Release Approval. AOL shall have the right to inspect the
--------------------
Complying Product prior to commercial production or public release by
AOL under this Agreement. AOL shall, in its discretion (but based
upon commercially reasonable factors (including without limitation a
change of control of Advertiser, or technical or operational problems
or incompatibilities), provide notice of approval or rejection within
fifteen (15) business days of receiving certification from the
Authorized Testing Service that such product is a Complying Product
together with a copy of the Complying Product. AOL shall have no
obligation to distribute any copy of the Advertiser Software that has
not first obtained release approval from AOL. The parties may
negotiate in good faith to cure any circumstance or issue causing AOL
to so reject, provided that if AOL does not approve release pursuant
to this Section 5(iii), then AOL shall refund to Advertiser any
payments made by Advertiser to AOL pursuant to Section 9(i) of this
Exhibit E.
15
<PAGE>
(iv) Re-certification Requirements. Revisions of copies of the Advertiser
-----------------------------
Software that have previously been certified by the Authorized
Testing Service must be re-certified. For purposes of this provision,
a "revision" is defined as any version of a Complying Product that
contains programming code that differs materially from the Complying
Product. Without limiting the foregoing, revisions include
maintenance updates, patches, fixes, and new releases of a Complying
Product. Revisions to a Complying Product shall be re-certified
according to the Certification Requirements, unless AOL or the
Authorized Testing Service first provides to Advertiser in writing a
list of "Re-Certification Requirements," if any, in which case such
Re-Certification Requirements shall apply.
6. AOL's Distribution Obligations. Subject to the provisions of Section 5
------------------------------
of this Exhibit E, and provided that Advertiser is otherwise in compliance
with the provisions of this Insertion Order Agreement, AOL shall distribute
the Advertiser Software with a minimum number of [***]* AOL 4.0 CD-ROMs
---
containing the AOL Client which is sent by AOL in direct marketing programs
to prospective AOL customers during the period commencing on May 15, 1999
and ending on September 1, 2000 (the "Distribution Period"); provided
however, that (i) AOL shall have the right to continue distribution of the
Advertiser Software after the Distribution Period has ended subject to the
terms and conditions hereof and (ii) if Advertiser shall not have delivered
a master copy of the Advertiser Software to the authorized testing service
and AOL by May 15, 1999, then AOL shall no longer be obligated to
distribute the Advertiser Software with a minimum number of [***]* AOL 4.0
---
CD-ROMs, and in such event, AOL `s sole obligation will be to distribute
the Advertiser Software during the period commencing on the date on which
the Advertiser Software becomes a complying product and ending at the end
of the Distribution Period. When the end-user installs the AOL Client on
the end-user's system, the Advertiser Software installation program will be
automatically copied onto the end-user's hard drive, and the end-user will
be presented with the opportunity to install the Advertiser Software. AOL
will distribute the Advertiser Software together with, and subject to, the
terms of the Software License Agreement furnished by Advertiser.
Notwithstanding the foregoing, (i) once AOL begins distribution of the
advertiser software, AOL shall not be obligated to distribute any updates
or upgrades to the Advertiser Software, and (ii) AOL reserves the right, in
the event of technical problems or incompatibilities (e.g., new "bugs"),
excessive usage, or other situations which may adversely affect the user
experience or AOL's costs (collectively, an "Adverse User Situation"), not
to include any Advertiser Software on such CD-ROMs (a "Pull"); provided
however that, in the event of a Pull, AOL shall deliver written notice
thereof to Advertiser within five (5) business days of such Pull. A Pull
will remain in effect as long as any Adverse User Situation remains, in
AOL's reasonable discretion. If such Adverse User Situation is not cured to
AOL's reasonable satisfaction within thirty (30) days from such notice,
then AOL's obligations hereunder shall terminate, and Advertiser shall not
be obligated to make any further payments under section 9(i) hereof.
7. Distribution Requirements. End-users who install the Advertiser Software
-------------------------
distributed pursuant to this will be prompted to send an electronic
registration to Advertiser the first time they attempt to use the
Advertiser Software via the end-user system on which the Advertiser
Software is installed. During such electronic registration, Advertiser
shall create a process by which such end-user will be identified as a user
obtained through the 4.0 CD-ROMs distributed by AOL hereunder. AOL agrees
not to interfere with, obfuscate, remove or alter any of the automatic
installation mechanisms, electronic registration mechanisms, or patent,
copyright or other proprietary rights notices included in the Advertiser
Software provided by Advertiser to AOL. AOL's obligations under this
Section 7 shall be contingent upon Advertiser's delivery of Advertiser
Software that has been quality assurance tested in accordance with Section
5 hereof.
8. Installation and Support. Advertiser shall be solely responsible for
------------------------
providing Customers with installation, maintenance and technical
integration support with respect to the Advertiser Software. AOL shall
notify Advertiser as soon as possible of AOL's receipt of any customer
requests for support or assistance with respect to the Advertiser Software.
9. Payments. In connection with AOL's obligations hereunder, Advertiser shall
--------
pay to AOL the following:
(i) Cash Payments. Advertiser shall pay to AOL a cash amount equal to
$400,000 as follows: (a) [***]* on May 15, 1999, (b) [***]* on August
--- ---
1, 1999, (c) [***]* on November 1, 1999, and (d) [***]* on February 1,
--- ---
2000.
(ii) Bounty Payments. Advertiser shall pay to AOL a bounty payment of
[***]*, for each Commerce Customer acquired by Advertiser during the
---
Term and for a period of three years thereafter. This provision shall
survive the termination or expiration of this Insertion Order
Agreement.
* [***] Confidential treatment has been requested for the bracketed
portions. The confidential redacted portion has been omitted and
filed separately with the Securities and Exchange Commission.
16
<PAGE>
10. Auditing Rights. Advertiser will maintain complete, clear and accurate
records of all expenses, revenues and fees in connection with the
performance of this Insertion Order Agreement, including reports which
indicate the number of customers acquired as a result of the distribution of
the Advertiser Software by AOL, and the number of such customers which
become Commerce Customers . For the sole purpose of ensuring compliance with
Section 9(ii) of this Insertion Order Agreement, AOL (or its representative)
will have the right to conduct a reasonable and necessary inspection of
portions of the books and records of Advertiser which are relevant to
Advertiser's performance pursuant to this Insertion Order Agreement. Any
such audit may be conducted after twenty (20) business days prior written
notice to Advertiser. AOL shall bear the expense of any audit conducted
pursuant to this Section 9 unless such audit shows an error in AOL's favor
amounting to a deficiency to AOL in excess of five percent (5%) of the
actual amounts paid and/or payable to AOL hereunder, in which event
Advertiser shall bear the reasonable expenses of the audit. Advertiser shall
pay AOL the amount of any deficiency discovered by AOL within thirty (30)
days after receipt of notice thereof from AOL. This provision shall survive
the termination or expiration of this Insertion Order Agreement for an
additional three year period.
17
<PAGE>
EXHIBIT F
---------
Yahoo!
Excite
Snap!/CNET
Infoseek
Lycos
Geocities
Tripod
Hot Bot
Amazon.com
AT&T Worldnet
Mindspring
Earthlink
MCI Internet Services
Prodigy
Road Runner Group
@ Home
Hotmail
Juno
WhoWhere
IChat
TalkCity
Concentric
Juno
Erol's
WorldCom
MediaOne, Inc. (US West Media Group Subsidiary)
Microsoft Network
Microsoft Corporation
Netcom
All Interactive Divisions of RBOCs and CLECs
Web TV
Alta Vista
MS Verticals (Expedia, Carpoint, MSNBC)
Pointcast
Walt Disney Interactive Services
AT&T Interactive Services
GTE Interactive Services
Sprint Interactive Services
MSNBC
NBC Interactive Services
Jfax
18
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