SEARCH REVENUE SHARING ADDENDUM TO SYNACOR MASTER SERVICES AGREEMENT
EXHIBIT 10.17.9
CONFIDENTIAL
TREATMENT REQUESTED
EXECUTION COPY
This Search Revenue Sharing Addendum (this “Addendum”) dated this 18th day of November,
2004 supplements the Master Services Agreement dated July 13, 2004 by and between Synacor, Inc.
(“Synacor”) and ACC Operations, Inc. (“Client”), including any schedules, attachments, exhibits,
addenda, amendments or riders attached thereto (collectively, the “Agreement”) by establishing the
terms and conditions by which the Parties will work together to facilitate the delivery of Internet
search related services to Client’s Users. Except to the extent expressly modified herein, all of
the terms and conditions of the Agreement shall apply to this Addendum. If any provision of this
Addendum conflicts with a provision of the Agreement, the provisions of this Addendum shall
control. Capitalized terms used but not defined in this Addendum shall have the meanings ascribed
to them in the Agreement. Notwithstanding anything in the Agreement or this Addendum to the
contrary, for purposes of determining Synacor’s obligations and liabilities in connection with the
Search Services (as defined herein) provided pursuant to this Addendum, such Search Services shall
be deemed a “Synacor Sourced Service.”
1. Definition of Search Services and Selection of Search Services Provider. Synacor shall provide
services that enable Users to receive descriptions and links associated with Internet search
results (the “Results Sites”) generated from search boxes (“Search Services”) placed within the
customer home page currently known as “Xxxxxxxx.xxx” (the “Home Page”) through its agreement with a
Search Services provider (“Search Services Provider”). [*]
a. Operation of Search Services. Each time a User enters a search request in a search box on
the Home Page (a “Search Query”), Synacor shall return to such User a set of up to ten (10) Results
Sites per page displayed on the Home Page (each such page of a set of Results Sites appearing on
the Home Page shall be referred to herein as a “Search Results Set”), and additional paid or
sponsored links (“AFS Ads”). The format and placement of such AFS Ads on the Home Page shall be
agreed to by the Parties.
b. Hosting and Control. At all times during the Services Term (as defined below), Synacor
shall: (i) host and maintain any and all pages that comprise the Results Sites; (ii) maintain
complete technical and editorial control of the Results Sites; and (iii) act as the intermediary
for all transmissions between Search Services Provider and the Results Sites (i.e., any editing of,
or additions to, the Results Sites that Adelphia desires to implement must be provided to, and
agreed upon by, Synacor).
c. Context Sensitive Advertising. The Parties may agree to provide context sensitive
advertising (“Adsense for Content Ads” or “AFC Ads”) from Search Services Provider within the Home
Page.
2. Disclaimers. Client understands and agrees that Search Services Provider shall not be liable for
any damages, whether direct, indirect, incidental or consequential, arising from the content
displayed on, or accessed via, any Results Site and/or any User’s access to, or use of, the Search
Services provided pursuant to this Addendum.
3. No Warranties. Client understands and agrees that Search Services Provider makes no warranties,
express or implied, with respect to the Search Services, including, without limitation, warranties
of merchantability, fitness for a particular purpose, and non-infringement.
4. Client Not Third Party Beneficiary. Client expressly acknowledges and agrees that Client is not
a third party beneficiary under any agreement between Synacor and Search Services Provider.
| * | CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS. |
5. Fees and Payment Terms.
a. Search Services. As a fee for the foregoing services, Synacor shall xxxx Client monthly at
the rate of [*].
b. AdSense for Search. Subject to the terms and conditions of this Agreement, for each month
during the Services Term, Client shall receive the Applicable Percentage (as defined below) of Net
AFS Revenues attributable to such month.
c. AdSense for Content. Subject to the terms and conditions of this Agreement, for each month
during the Services Term, Client shall receive the Applicable Percentage of Net AFC Revenues
attributable to such month.
d. Ad Revenues; Applicable Percentage; Applicable Deduction.
i. “Net AFS Revenues” means (i) Ad Revenues derived from clicks on AFS Ads (excluding
Non-Qualifying Ads as defined below), minus (ii) the Applicable AFS Deduction.
ii. “Net AFC Revenues” means (i) Ad Revenues derived from clicks on AFC Ads (excluding
Non-Qualifying Ads as defined below), minus (ii) the Applicable AFC Deduction.
iii. “Ad Revenues” means gross revenues received by Search Services Provider from
sponsored links for the inclusion of such sponsored links on select websites, including,
without limitation, the Home Page, whether calculated as a flat fee, on the basis of the
number of “click-throughs,” or otherwise, minus agency fees, referral fees, costs related to
third party advertising service providers, and discounts.
iv. “Applicable Percentage” with respect to any calendar month during the Services Term
shall be [*].
v. “Applicable AFS Deduction” in any calendar month during the Initial Term (as defined
herein) means [*] of Net AFS Revenues in such month derived from any and all
Results Sites. Notwithstanding anything herein to the contrary, Synacor reserves the right to
increase the Applicable AFS Deduction [*] from Search Services Provider in connection with AFS Revenues by
providing: (i) advance written notice to Client, and (ii) documentary evidence of such
increased cost.
vi. “Applicable AFC Deduction” in any calendar month during the Initial Term means
[*] of Net AFC Revenues in such month derived from any and all Results
Sites.
vii. Notwithstanding any of the foregoing under this Section to the contrary, Synacor
shall not be liable for payment in connection with: (i) any amounts which result from invalid
queries, or invalid impressions of (or clicks on) ads, generated by any person, bot, automated
program or similar device, including, without limitation, through any fraudulent act, as
reasonably determined by Synacor; and (ii) ads that advertise Search Services Provider
products or services (collectively, “Non-Qualifying Ads”). The number of queries, and
impressions of and clicks on ads, as reported by Search Services Provider, shall be the number
used in calculating payments hereunder.
e. Payment Terms. All undisputed payments due Adelphia by Synacor hereunder shall accrue on a
monthly basis and be made by Synacor within [*] days after the end of each month in
which the pertinent AFC Ads, AFS Ads, or Search Results Sets were displayed. All undisputed
payments due Synacor by Adelphia hereunder shall be made by Adephia within [*] days
after
* CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.
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the end of the month for which the pertinent payment is due. All payments shall be made in full in
United States Dollars.
6. Term. This Addendum will become effective on November 15, 2004 and expire on June 30, 2006 (the
“Initial Term”), or earlier, upon sixty (60) days’ written notice from either Party to the other
Party, with or without cause, and may be renewed by the Parties only upon a definitive written
agreement signed by both of the Parties (the term of any such renewal being referred to as the
“Renewal Term”). For purposes of the Agreement, the Initial Term, together with any Renewal Term,
if any, may also be referred to as the “Services Term.”
The foregoing is hereby agreed and accepted by:
| SYNACOR, INC. | ACC OPERATIONS, INC. (CLIENT): | |||||||||||||
By:
|
/s/ Xxxxxx Xxxxxxx | By: | /s/ Xxxx Xxxxxxxxx | |||||||||||
| Name: XXXXXX XXXXXXX Title: PRESIDENT & CEO |
Name: XXXX XXXXXXXXX Title: VP Internet Services Product Mgmt |
|||||||||||||
Date:
|
11-21-04 | Date: | 11-18-04 | |||||||||||
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