Exhibit 10.16
EXECUTION VERSION
THE REGISTRANT HAS OMITTED FROM THIS EXHIBIT 10.16 PORTIONS OF THE AGREEMENT FOR
WHICH THE REGISTRANT HAS REQUESTED CONFIDENTIAL TREATMENT FROM THE SECURITIES
AND EXCHANGE COMMISSION. THE PORTIONS OF THE AGREEMENT FOR WHICH CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND
EXCHANGE COMMISSION. SUCH OMITTED PORTIONS HAVE BEEN MARKED WITH THREE PLUS
SIGNS ("+++").
AOL ADVERTISING INSERTION ORDER
CONTRACT #:
AOL SALESPERSON:___________ Credit approval received ____ SALES COORDINATOR:
DATE: 05/4/99
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ADVERTISER ADVERTISING AGENCY
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Contact Person XXXX XXXXXXXX
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Company Name iTurf Inc.
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Address - Line 1 000 Xxxxxx Xxxxxx, 0xx Floor
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Xxxxxxx - Xxxx 0 Xxx Xxxx, XX 00000-0000
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Phone # 000-000-0000
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Fax # 000-000-0000
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Email XXXX@XXXXX.XXX
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SIC Code 5961
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Advertiser IAB Category
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Description of Advertiser's Teen Interests Site
Product/Service
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BILLING INFORMATION
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Send Invoices to (choose one): ADVERTISER AGENCY
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Advertiser or Agency Billing Contact ALL SAME AS ABOVE
Person
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Company Name
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Billing Address - Line 1
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Billing Address - Line 2
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Billing Phone #
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Billing Fax #
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Billing Email Address
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P.O. #, if applicable
EXECUTION VERSION
This Agreement, dated as of May 4, 1999 (the "Effective Date"), is made and
entered into by and between America Online, Inc. ("AOL"), a Delaware
corporation, with its principal offices at 00000 XXX Xxx, Xxxxxx, Xxxxxxxx 00000
and iTurf Inc. ("Advertiser"), a Delaware corporation with its principal offices
at 000 Xxxxxx Xxxxxx, 0xx Xxxxx, Xxx Xxxx, XX 00000-0000 (each a "Party" and
collectively the "Parties").
BILLING SCHEDULE/GUARANTEED PAYMENT. Advertiser will pay AOL a non-refundable
guaranteed payment of eight million eighty-six thousand seven hundred and ninety
six dollars (US $8,086,796) as follows:
A. Upon execution of this Agreement, Advertiser shall pay AOL two
million dollars (US $2,000,000);
B. On August 3, 1999, Advertiser shall pay AOL one million dollars (US
$1,000,000);
C. On November 3, 1999, Advertiser shall pay AOL one million dollars
(US $1,000,000);
D. On February 3, 2000 Advertiser shall pay AOL one million dollars (US
$1,000,000);
E. On May 3, 2000, Advertiser shall pay AOL one million dollars (US
$1,000,000);
F. On August 3, 2000, Advertiser shall pay AOL one million dollars (US
$1,000,000);
G. On November 3, 2000, Advertiser shall pay AOL one million eighty six
thousand seven hundred ninety six dollars (US $1,086,796).
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, 0 Xxxxx
Xxxxxxxxx Xxxxx, Xxx Xxxx, XX 00000 (ABA: 000000000). In the event of
nonpayment, AOL reserves the right to terminate this Insertion Order Agreement
with written notice to Advertiser if nonpayment is not cured after five (5)
business days.
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AOL NETWORK
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INVENTORY
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DISPLAY DISPLAY # OF AD
AOL INVENTORY/DEMOGRAPHIC* PURCHASED START STOP AD TYPE SLOTS TOTAL GROSS PRICE TOTAL
DATE DATE PURCHASED IMPRESSIONS
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SEE EXHIBIT A ATTACHED
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* Attach completed AOL Demographic TOTALS:
Profile Worksheet
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ART
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All necessary artwork and active URL's must be provided by advertiser
3 business days prior to start date.
ARTWORK REQUIRED FROM ADVERTISER/AGENCY:
EXECUTION VERSION
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 468x60 IAB Standard/10k Max
* STATIC BANNERS ONLY, NO ANIMATION *
Linking URL: The HTTP/URL address to be connected to the Advertisement shall be: xxxx://xxx.xXxxx.xxx,
xxx.xxxxxx.xxx www. Xxxxx.xxx, xxx.xxxxxxxxxx.xxx, xxx.xxxxxxxxxxxxxxxxxx.xxx, xxx.xxxxxxxxx.xxx,
xxx.xxxxxxxxxxxxxx.xxx, xxx.xxxx.xxx (each, an "Affiliated Advertiser Site" and collectively, together with the Licensed
Content (as defined in Section 12 of Exhibit C hereto, the "Affiliated Advertiser Sites")
PLEASE SEND ARTWORK AND URL TO:
XXXXXXXXxx@xxx.xxx
PLEASE COPY ALL ARTWORK TO: XxxXX@xxx.xxx
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.
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ADVERTISING PURCHASE SUMMARY
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TOTAL PRICE TOTAL IMPRESSIONS CPM
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AOL Networks $8,086,796.00 +++
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Total Purchase Price $8,086,796.00 +++
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< Less Agency Discount >
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$8,086,796.00 +++
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NET PURCHASE PRICE TOTAL GUARANTEED IMPRESSIONS
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ADVERTISER PRODUCTS. The categories of Products to be offered or promoted by
Advertiser in the Advertisements are solely as follows: apparel (e.g., shoes,
shirts, shorts, etc.), accessories (e.g., bracelets, bags, belts, etc.), home
furnishings (e.g., bedsets, shelves, etc.), soccer-related sporting goods (e.g.,
cleats, training shoes, shinguards, shorts, etc.), and interactive content for
teen girls (e.g., "shoutout" boards, editorials, polls, news, etc.)
(collectively, the "Advertiser Products"); PROVIDED, HOWEVER in no event will
Advertiser promote, or be entitled to promote, any fragrance, cosmetic or school
uniform item through any AOL-controlled screens. Notwithstanding anything to the
contrary contained herein, Advertiser may offer cosmetics products on the
Affiliated Advertiser Sites, PROVIDED that (i) such products are not promoted in
the content of any advertisement or promotion situated on the AOL Network which
links to the Advertiser Affiliated Sites, and (ii) the promotions or
advertisements for, or offers of, such cosmetics products on any Affiliated
Advertiser Site (other than in any "pull down" menus contained thereon) shall be
at least two (2) clicks away from the main screen of any such Affiliated
Advertiser Site.
IMPRESSIONS COMMITMENT. In the event AOL delivers the impression commitment
provided for hereunder prior to the Display Stop Date, AOL may, at its option,
discontinue display of Non-Permanent Advertisements at such earlier time;
PROVIDED, HOWEVER, that AOL shall not discontinue any Permanent Advertisements
prior to the Display Stop Date set forth herein for such Permanent
Advertisements. 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, as
Advertiser's sole remedy, either (i) provide Advertiser with "makegood"
impressions through comparable advertisement placements which have a total
value, based on AOL's then-current advertising rate card, equal to the value of
such Shortfall or (ii) extend the Advertiser's promotion in integrated areas
until such time as the impressions Shortfall has been delivered; PROVIDED,
HOWEVER, that in the event that AOL fails to deliver the entire Impressions
Shortfall to Advertiser within six (6) months following the expiration of the
NPA Initial Term or the PA Initial Term (as the case may be, and each as defined
below), Advertiser shall have the right to receive a refund equal to the portion
of the Shortfall undelivered as of such date. 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, upon consultation with
Advertiser, to alter Advertiser flight dates to accommodate trafficking needs or
other operational needs. In such cases, AOL will make available to Advertiser
reasonably equivalent flights. For the avoidance of doubt, any contextual or
editorial link to the Licensed Content (as defined below) that is not Advertiser
branded (i.e., that do not contain an Advertiser Xxxx (as defined in Section 12
of Exhibit C)) shall not constitute an impression for purposes of this
Agreement; PROVIDED, HOWEVER, that on any page
EXECUTION VERSION
containing (i) a Permanent Advertisement or Non-Permanent Advertisement and (ii)
an Advertiser-branded contextual or editorial link, AOL shall be credited with
no more than one (1) impression per user exposure to any such page.
TERM. Unless earlier terminated as set forth herein, the initial term of this
Agreement with respect to Non-Permanent Advertisements (the "NPA Initial Term")
shall begin on the earlier of (i) the first Display Date or (ii) July 1, 1999,
and shall end on the earlier of (x) the date on which AOL has completely
satisfied its Impressions commitment with respect to such Non-Permanent
Advertisements (as set forth on Exhibit A hereto) or (y) the twenty-four (24)
month anniversary of the first Display Date. The initial term of this Agreement
with respect to the Permanent Advertisements except for Home Furnishings (the
"PA1 Initial Term") shall begin July 1, 1999 (or the date of the "launch" of the
AOL Shopping Apparel Kids, Teens, and Athletics channels) and shall end on March
31, 2001. The initial term of this Agreement with respect to the Permanent
Advertisements for Home Furnishings (the "PA2 Initial Term") shall begin
September 1, 1999 (or the date of the "launch" of the AOL Shopping Home
Furnishings Channel) and shall end on May 31, 2001. Notwithstanding the
foregoing, in the event that due to a technical problem of AOL, AOL is unable to
launch any of the Permanent Advertisements (an "AOL Launch Technical Problem")
as of the relevant date established therefor in this Section, the PA1 Initial
Term or the PA2 Initial Term (as the case may be) shall be extended by one day
for each day of delay in launch (beyond any such target date(s)) due to an AOL
Launch Technical Problem.
REVENUE SHARING ARRANGEMENT. Advertiser shall pay AOL +++ percent (+++%) of all
Transaction Revenues generated during the Term after Advertiser has earned +++
Dollars (US$+++) in Transaction Revenues during the Term (including, without
limitation, during any Renewal Term).
RENEWAL TERM. Upon conclusion of the Initial Term, AOL will have the right to
renew the Agreement for successive one year renewal terms (each a "Renewal Term"
and together with the Initial Term, the "Term"). During any such Renewal Term:
(i) Advertiser will not be required to pay any guaranteed, fixed payment or
perform the cross-promotional obligations specified in this Agreement; (ii)
Advertiser will pay to AOL fifteen percent (15%) of Transaction Revenues
generated during the Renewal Term; and (iii) AOL will not be required to
undertake any specific fixed promotional/placement obligations or Impressions
commitments, PROVIDED that AOL will maintain at least one link to the Affiliated
Advertiser Sites at all times during the Renewal Term. A Renewal Term shall
automatically commence following the expiration of the Initial Term (or prior
Renewal Term, as the case may be), provided that AOL shall be entitled to
terminate any such Renewal Term with thirty (30) days prior written notice to
Advertiser.
STANDARD TERMS AND CONDITIONS. This Insertion Order incorporates by reference
AOL's standard advertising terms and conditions as they exist on the Effective
Date (the "Standard Terms"), including terms related to advertising material,
payment modifications, cancellation rights, usage data, limitations of
liability, disclaimers, indemnification, use of AOL member information and
miscellaneous legal terms. Among other things, the Standard Terms provide AOL
the right to cancel this Insertion Order Agreement on thirty days notice to
Advertiser (or upon such shorter notice as may be designated by AOL in the event
that AOL believes that further display of the Advertisement will expose AOL to
liability or other adverse consequences), in which case Advertiser shall only be
responsible for the pro-rata portion of payments attributable to the period
preceding such termination. The Standard Ad Terms appear at keyword "Standard Ad
Terms3" on the U.S.-based America Online brand service and at
"XXXX://XXXXXXXXXX.XXX.XXX/XXXXXXX0.XXXX." A hard copy of the Standard Ad Terms
will be provided to advertiser upon request. ADVERTISER ACKNOWLEDGES THAT IT HAS
BEEN PROVIDED AN OPPORTUNITY TO REVIEW THE STANDARD TERMS AND AGREES TO BE BOUND
BY THEM.
ADDITIONAL PROVISIONS. This Insertion Order Agreement incorporates by reference
the provisions of Exhibits A, B, C and D attached hereto, which contains
additional terms and conditions related to the display of the Advertisements.
Terms not defined herein are defined on Exhibit B attached hereto.
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 the Standard Terms incorporated by reference) shall be
binding on both parties when signed on behalf or each party and delivered to the
other party (which delivery may be accomplished by facsimile transmission of the
signature pages hereto).
AMERICA ONLINE, INC. ITURF INC.
By: /s/ Xxxxx Xxxxxxx By: /s/ Xxxxxx Xxxxxxxxx
(signature) (signature)
Xxxxx Xxxxxxx Print Name: Xxxxxx Xxxxxxxxx
EXECUTION VERSION
Senior Vice President, Business Affairs Title: Chief Financial Officer
(Print or Type)
Date: Date:
EXECUTION VERSION
EXHIBIT A
ITURF
----------------------------------- ------------------------------
FIRST YEAR SECOND YEAR
ECOMMERCE: SHOPPING
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AOL, XXX.XXX, CompuServe
(7/1/99 - (4/1/00 -
3/31/00)* 3/31/01)*
---------------------------------------------------------------------------
BOYS TEENS APPAREL DROOG Cost +++ +++ +++
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ANCHOR Impressions +++ +++ +++
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GIRLS TEENS APPAREL XXXXX*S Cost +++ +++ +++
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ANCHOR Impressions +++ +++ +++
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KIDS/ INFANTS APPAREL DOTDOTDASH Cost +++ +++ +++
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GOLD TENANT Impressions +++ +++ +++
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KIDS/ INFANTS APPAREL STORYBOOK Cost +++ +++ +++
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GOLD TENANT Impressions +++ +++ +++
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ATHLETIC SHOES AND APPAREL TSI SOCCER Cost +++ +++ +++
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ANCHOR Impressions +++ +++ +++
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---------------------------------------------
(9/1/99 - (6/1/00 -
5/31/00)* 5/31/01)*
---------------------------------------------
HOME FURNISHINGS XXXXXXXX.XXX Cost +++ +++ +++
---------------------------------------------
GOLD TENANT*** Impressions +++ +++ +++
---------------------------------------------
------------------
(7/1/99 - (7/1/00 -
6/30/00)* 6/30/01)*
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ANCHOR TENANT AOGIRL Cost +++ +++ +++
GURL
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Impressions +++ +++ +++
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------------------------------------ ---------------------------------------------------------------------------
ICQ** Cost +++ +++ +++
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Impressions +++ +++ +++
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TIER 1 INVENTORY
---------------------------------------------------------------------------
AOL KID'S ONLY CHANNEL
--------------
Celebrity Birthday Specials Cost +++ +++ +++
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Impressions +++ +++ +++
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---------------------------------------------------------------------------
Other Non-Kids Only Tier 1 Cost +++ +++ +++
Inventory
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Impressions +++ +++ +++
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TIER 2 INVENTORY
---------------------------------------------------------------------------
XXX.XXX BACK TO SCHOOL Cost +++ +++ +++
EXECUTION VERSION
------------------------------------ ---------------------------------------------------------------------------
3 months 1999 Impressions +++ +++ +++
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6 months 00
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---------------------------------------------------------------------------
AOL NETWORK CHANNELS Cost +++ +++ +++
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lifestyles, entertainment, kids, Impressions +++ +++ +++
sports, families
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TIER 3 INVENTORY
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AOL NETWORK ROS Cost +++ +++ +++
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Impressions +++ +++ +++
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BROAD REACH INVENTORY Cost +++ +++ +++
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Teen Chat, Email, AOL NetFind Impressions +++ +++ +++
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---------------------------------------------------------------------------
RUN OF XXX.XXX Cost +++ +++ +++
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Impressions +++ +++ +++
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Totals: +++ $8,086,796
EXECUTION VERSION
NOTES:
*Starting and ending dates subject to change, as set forth in the Section
entitled "Term" above.
**In the event that AOL is unable to deliver such Impressions, AOL shall have
the right to deliver comparable Impressions in other areas of the AOL Service,
XXX.xxx or CompuServe, which such Impressions shall count towards satisfaction
of the Impressions commitment hereunder.
***Home Furnishings Gold Tenant to begin September 1, 1999.
"AOL Shopping Anchor Tenant" shall include a permanent button and other
promotional opportunities which are substantially the same as other anchor
tenancies granted within the Apparel department of AOL Shopping during the
Initial Term.
"Run of Service Inventory" is a collection of inventory made up of all areas of
the AOL Service or other specified AOL property. If Advertiser has purchased Run
of Service Inventory, AOL will place Advertiser's creative in different
locations throughout the appropriate AOL property in accordance with AOL
internal policies. Run of Service Impressions will be delivered reasonably
evenly over the time period set forth in this Insertion Order. Advertiser may
not control placement within a Run of Service Inventory purchase and AOL does
not guarantee placement on any particular screen or group of screens.
EXECUTION VERSION
EXHIBIT B
DEFINITIONS
ADVERTISER INTERACTIVE SITE. Any Interactive Site (other than the Affiliated
Advertiser Sites) which is managed, maintained, owned or controlled by
Advertiser or its agents.
ANCHOR TENANCIES. The Droog, Delia's, TSI Soccer and gURL Anchor Tenancies
referenced in Exhibit A hereto.
XXX.XXX. AOL's primary Internet-based Interactive Site marketed under the
"XXX.XXX(TM)" brand, specifically excluding (a) the AOL Service, (b) any
international versions of such site, (c) "ICQ," "AOL NetFind(TM)," "AOL Instant
Messenger(TM)," "NetMail(TM)" or any similar independent product or service
offered by or through such site or any other AOL Interactive Site, (d) any
programming or Content area offered by or through such site over which AOL does
not exercise complete operational control (including, without limitation,
Content areas controlled by other parties and member-created Content areas), (e)
Netscape Netcenter(TM), and any additional Netcenter products and services, (f)
any programming or Content area offered by or through the U.S. version of the
America Online(R) brand service which was operated, maintained or controlled by
the former AOL Studios division (e.g., Electra), (g) any yellow pages, white
pages, classifieds or other search, directory or review services or Content
offered by or through such site or any other AOL Interactive Site, (h) any
property, feature, product or service which AOL or its affiliates may acquire
subsequent to the Effective Date and (i) any other version of an America Online
Interactive Site which is materially different from AOL's primary Internet-based
Interactive Site marketed under the "XXX.XXX(TM)" brand, by virtue of its
branding, distribution, functionality, Content and services, including, without
limitation, any co-branded versions and any version distributed through any
broadband distribution platform or through any platform or device other than a
desktop personal computer.
AOL MEMBER. Any authorized user of the AOL Service, including any sub-accounts
using the AOL Service under an authorized master account.
AOL NETWORK. (i) The AOL Service, (ii) XXX.xxx and (iii) any other product or
service owned, operated, distributed or authorized to be distributed by or
through AOL or its affiliates worldwide (and including those properties excluded
from the definitions of the AOL Service or XXX.xxx). It is understood and agreed
that the rights of Advertiser relate only to the AOL Service and XXX.xxx and not
generally to the AOL Network.
AOL PURCHASER. (i) any person or entity who enters any Affiliated Advertiser
Site from the AOL Network including, without limitation, from any third party
area therein (to the extent entry from such third party area is traceable
through both parties' commercially reasonable efforts), and generates
Transaction Revenues (regardless of whether such person or entity provides an
e-mail address during registration or entrance to any such Affiliated Advertiser
Site which includes a domain other than an "XXX.xxx" domain); and (ii) any other
person or entity who, when purchasing a product, good or service through an
Advertiser Interactive Site, provides an XXX.xxx domain name or a XxxxxXxxxx.xxx
domain name as part of such person or entity's e-mail address and provided that
any person or entity who has previously satisfied the definition of AOL
Purchaser will remain an AOL Purchaser, and any subsequent purchases by such
person or entity (e.g., as a result of e-mail solicitations or any off-line
means for receiving orders requiring purchasers to reference a specific
promotional identifier or tracking code) will also give rise to Transaction
Revenues hereunder (and will not be conditioned on the person or entity's
satisfaction of clauses (i) or (ii) above).
AOL SERVICE. The standard narrow-band U.S. version of the America Online(R)
brand service, specifically excluding (a) XXX.xxx or any other AOL Interactive
Site, (b) the international versions of an America Online service (E.G., AOL
Japan), (c) the CompuServe(R) brand service and any other CompuServe products or
services (d) "Driveway," "ICQ(TM)," "AOL NetFind(TM)," "AOL Instant
Messenger(TM)," "Digital City," "NetMail(TM)," "Electra", "Thrive", "Real Fans",
"Love@AOL", "Entertainment Asylum," "Hometown AOL" or any similar independent
product, service or property which may be offered by, through or with the U.S.
version of the America Online(R) brand service, (e) Netscape Netcenter(TM) and
any additional Netscape products or services, (f) any programming or Content
area offered by or through the U.S. version of the America Online(R) brand
service over which AOL does not exercise complete operational control
(including, without limitation, Content areas controlled by other parties and
member-created Content areas), (g) any yellow pages, white pages, classifieds or
other search, directory or review services or Content offered by or through the
U.S. version of the America Online(R) brand service, (h) any property, feature,
product or service which AOL or its affiliates may acquire subsequent to the
Effective Date and (i) any other version of an America
EXECUTION VERSION
Online service which is materially different from the standard narrow-band U.S.
version of the America Online brand service, by virtue of its branding,
distribution, functionality, Content and services, including, without
limitation, any co-branded version of the service and any version distributed
through any broadband distribution platform or through any platform or device
other than a desktop personal computer.
AOL USER. Any user of the AOL Service, XXX.xxx or the AOL Network.
COMPUSERVE SERVICE. The standard, narrow-band U.S. version of the CompuServe(R)
brand service, specifically excluding (a) any international versions of such
service, (b) any web-based service including "xxxxxxxxxx.xxx" or any similar
product or service offered by or through the U.S. version of the CompuServe
brand service, (c) Content areas owned, maintained or controlled by CompuServe
affiliates or any similar "sub-service," (d) any programming or Content area
offered by or through the U.S. version of the CompuServe brand service over
which CompuServe does not exercise complete or substantially complete
operational control (e.g., third-party Content areas), (e) Netscape
Netcenter(TM) and any additional Netscape products or services, (f) any yellow
pages, white pages, classifieds or other search, directory or review services or
Content, (g) any co-branded or private label branded version of the U.S. version
of the CompuServe brand service, (h) any version of the U.S. version of the
CompuServe brand service which offers Content, distribution, services and/or
functionality materially different from the Content, distribution, services
and/or functionality associated with the standard, narrow-band U.S. version of
the CompuServe brand service, including, without limitation, any version of such
service distributed through any platform or device other than a desktop personal
computer and (i) any property, feature, product or service which CompuServe or
its affiliates may acquire, develop or launch subsequent to the Effective Date.
GOLD TENANCIES. The Dotdotdash, Storybook Heirlooms and Xxxxxxx.xxx Gold
Tenancies referenced in Exhibit A hereto.
ICQ SERVICE. The standard narrow-band English language version of the ICQ brand
communications and messaging service available in the U.S. (e.g., to U.S. based
ICQ Members), specifically excluding (a) XXX.xxx or any other ICQ Interactive
Site, (b) the international / non-English language versions of an ICQ service,
(c) "ICQ It!" or any other independent product, service or property which may be
offered by, through or with the English language version of the ICQ brand
service, (d) any programming or Content area offered by or through the English
language version of the ICQ brand service over which ICQ does not exercise
complete operational control (including, without limitation, Content areas
controlled by other parties and member-created Content areas), (e) Netscape
Netcenter(TM) and any additional Netscape products or services, (f) any yellow
pages, white pages, classifieds or other search, directory or review services or
Content offered by or through the English language version of the ICQ brand
service, (g) any property, feature, product or service which ICQ or its
affiliates may acquire subsequent to the Effective Date and (h) any other
version of an ICQ service which is materially different from the standard
narrow-band English language version of the ICQ brand service, by virtue of its
branding, distribution, functionality, Content or services, including, without
limitation, any co-branded version of the service or any version distributed
through any broadband distribution platform or through any platform or device
other than a desktop personal computer.
NETSCAPE NETCENTER. The standard narrow-band U.S. version of the Netscape
Communications Corporation's Netcenter(TM) brand service, specifically excluding
(a) the AOL Service (b) XXX.xxx or any other AOL Interactive Site, (c) the
international versions of an America Online service (E.G., AOL Japan), (d) the
CompuServe(R) brand service and any other CompuServe products or services (e)
"ICQ(TM)," "AOL NetFind(TM)," "AOL Instant Messenger(TM)," "Digital City,"
"NetMail(TM)," "Electra", "Thrive", "Real Fans", "Love@AOL", "Entertainment
Asylum," "Hometown AOL" or any similar independent product, service or property
which may be offered by, through or with the U.S. version of the America
Online(R) brand service, (f) any programming or Content area offered by or
through the U.S. version of the America Online(R) brand service over which AOL
does not exercise complete operational control (including, without limitation,
Content areas controlled by other parties and member-created Content areas), (g)
any yellow pages, white pages, classifieds or other search, directory or review
services or Content offered by or through the U.S. version of the America
Online(R) brand service, (h) any property, feature, product or service which AOL
or its affiliates may acquire subsequent to the Effective Date and (i) any other
version of an America Online service which is materially different from the
standard narrow-band U.S. version of the America Online brand service, by virtue
of its branding, distribution, functionality, Content and services, including,
without limitation, any co-branded version of the service and any version
distributed through any broadband distribution platform or through any platform
or device other than a desktop personal computer.
NON-PERMANENT ADVERTISEMENTS. The Tier 1 Inventory (including the ICQ inventory
but excluding both the Anchor Tenancies and Gold Tenancies), Tier 2 Inventory,
and Tier 3 Inventory set forth on
EXECUTION VERSION
Exhibit A hereto.
PERMANENT TENANCIES. The Anchor Tenancies and Gold Tenancies.
PRODUCT. Any product, good or service which Advertiser (or others acting on its
behalf or as distributors) offers, sells, provides, distributes or licenses to
AOL Users directly or indirectly through (i) any Affiliated Advertiser Site
(including through any Interactive Site linked thereto), (ii) any Advertiser
Interactive Site (including through any Interactive Site linked thereto, (iii)
any other electronic means directed at AOL Users (e.g., e-mail offers), or (iv)
an "offline" means (e.g., toll-free number) for receiving orders related to
specific offers within any Affiliated Advertiser Site or any Advertiser
Interactive Site requiring purchasers to reference a specific promotional
identifier or tracking code, including, without limitation, products sold
through surcharged downloads (to the extent expressly permitted hereunder).
TRANSACTION REVENUES. The aggregate amounts paid by AOL Purchasers in connection
with the sale, licensing, distribution or provision of any Products, including,
in each case, handling, shipping, service charges, and excluding, in each case,
(i) amounts collected for sales or use taxes or duties and (ii) credits and
chargebacks for returned or canceled goods or services, less cost of goods sold
or any similar cost.
EXECUTION VERSION
EXHIBIT C
ADDITIONAL TERMS
1. CONTENT OF AFFILIATED ADVERTISER SITES. The parties hereby expressly
acknowledge and agree that (i) Advertiser has purchased the Advertisement
for the express purpose of promoting the Advertiser Products and (ii) the
Advertisements will only promote the Advertiser Products. Additionally,
the Affiliated Advertiser Sites will only offer the categories of Products
(as described above) and content related thereto (except to the extent
otherwise mutually agreed upon by the Parties including as contemplated by
the "Advertiser Products" paragraph in the attached AOL Advertising
Insertion Order). Advertiser will ensure that the prices, terms and
conditions for the Products in the Affiliated Advertiser Sites 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.
2. CUSTOMIZED AFFILIATED ADVERTISER SITES. Advertiser shall customize the
Affiliated Advertiser Sites for AOL Users as follows:
(a) ensure that AOL Users linking to any Affiliated Advertiser Site do
not receive advertisements, promotions or links for any entity
reasonably construed to be in competition with AOL or otherwise in
violation of AOL's then-standard advertising policies or exclusivity
or premier commitments to third parties; and
(b) provide continuous navigational ability for AOL Members and Users to
return to an agreed-upon point on the AOL service or XXX.xxx (for
which AOL shall supply the proper address) from Affiliated any
Advertiser Site (e.g., the point on the AOL service or XXX.xxx from
which any such Affiliated Advertiser Site is linked), which, at
AOL's option, may be satisfied through the use of a hybrid browser
format (e.g., through a "back" icon or similar function that will
take such AOL Member back to the area of the AOL Network from which
such AOL Member has come to any such Affiliated Advertiser Site).
Advertiser shall allow appropriate AOL personnel to have access to the
Affiliated Advertiser Sites for the purpose of reviewing such site to
determine compliance with the provisions of this Section 2.
3. MANAGEMENT. Advertiser shall design, create, edit, manage, update, and
maintain the Affiliated Advertiser Sites. Except as specifically provided
for herein, AOL shall have no obligations of any kind with respect to the
Affiliated Advertiser Sites. Advertiser shall be responsible for any
hosting or communication costs associated with the Affiliated Advertiser
Sites (including, without limitation, the costs associated with (i) any
agreed-upon direct high-speed connections between the AOL Network and the
Affiliated Advertiser Sites that AOL deems necessary or (ii) a mirrored
version of any Affiliated Advertiser Site).
4. TAXES. Advertiser will collect and pay and indemnify and hold AOL harmless
from, any sales, use, excise, import or export value added or similar tax
or duty not based on AOL's income, including any penalties and interest,
as well as any costs associated with the collection or withholding
thereof, including reasonable attorneys' fees.
5. OPERATING STANDARDS. Advertiser will ensure that each of the Affiliated
Advertiser Sites complies at all times with the operating standards
attached hereto as Exhibit D. In the event Advertiser fails to comply with
AOL's operating standards, AOL will have the right (in addition to any
other remedies available to AOL hereunder) to decrease the placement of
the Advertisements it provides to Advertiser hereunder (and to decrease or
cease any other contractual obligation hereunder) until such time as
Advertiser corrects its non-compliance (and in such event, AOL will be
relieved of the proportionate amount of any Advertisement placement
commitment made to Advertiser by AOL hereunder corresponding to such
decrease in placements).
6. SHOPPING CHANNEL PROMOTIONS.
6.1 SALES AND IMPRESSION/CLICK THROUGH REPORTS. Advertiser will provide
AOL in an automated manner with a monthly report in an AOL-designated
format, detailing the following activity in such period on each Advertiser
Affiliated Site (and any other information mutually agreed upon by the
parties or reasonably required for measuring revenue activity by
Advertiser through the Affiliated Advertiser Sites): summary sales
information by day (date, number of products sold in the aggregate and by
category,
EXECUTION VERSION
number of orders, total Transaction Revenues). More generally, each
payment to be made by Advertiser pursuant to the revenue sharing
provisions hereof, will be accompanied by a report containing information
which supports the payment. In addition, AOL will provide Advertiser in an
automated manner with a monthly report in an AOL-designated format,
detailing the following activity in such period (and any other information
mutually agreed upon by the parties or reasonably required for measuring
impression and click through activity by AOL): summary impression and
other information provided to other AOL partners pursuant to advertising
insertion orders similar to this Agreement.
6.2 SPECIAL OFFERS/MEMBER BENEFITS. Advertiser will generally promote
through the Affiliated Advertiser Sites any special or promotional offers
made available by or on behalf of Advertiser through any other
distribution channels. In addition, Advertiser shall promote through the
Affiliated Advertiser Sites on a regular and consistent basis, special
offers exclusively available to AOL users (the "AOL Special Offers"). AOL
Special Offers made available by Advertiser shall provide a substantial
benefit to AOL users, either by virtue of a meaningful price discount,
product enhancement, unique service benefit or other special feature.
Advertiser will provide AOL with reasonable prior notice of AOL Special
Offers so that AOL can market the availability of such AOL Special Offers
in the manner AOL deems appropriate in its editorial discretion.
6.3 AOL QUICK CHECKOUT. Advertiser will take all reasonable steps
necessary to conform its promotion and sale of Products through the
Affiliated Advertiser Sites to the then-existing commerce technologies
made available to Advertiser by AOL, including without limitation AOL's
"quick checkout" tool which allows AOL Users to enter payment and shipping
information which is then passed from AOL's centralized server unit to
Advertiser for order fulfillment ("AOL Quick Checkout"). AOL will make all
reasonable efforts to provide the tools for the Advertiser to enable the
Affiliated Advertiser Sites with the AOL Quick Checkout technology and
functionality. Collection, storage and disclosure of information which
Advertiser provides to AOL, will be subject to AOL's privacy policy and
all confidentiality requirements hereunder. To the extent that any
Affiliated Advertiser Site includes AOL's Quick Checkout, Advertiser will
ensure that the AOL Quick Checkout on any such Site is of equal placement
and promotion prominence to other available payment options.
6.4 MERCHANT CERTIFICATION PROGRAM. Advertiser will participate in any
generally applicable "Certified Merchant" program operated by AOL or its
authorized agents or contractors. Such program may require Advertiser
participants on the Shopping Channel on an ongoing basis to meet certain
reasonable standards relating to provision of electronic commerce through
the AOL Service, XXX.xxx and the CompuServe Service and may also require
the payment of certain reasonable certification fees to AOL or its
authorized agents or contractors operating the program.
6.5 BIZRATE SURVEY. Advertiser agrees to (i) participate in the BizRate(R)
Program, a service offered by Binary Compass Enterprises, Inc. (BCE),
which provides opt-in satisfaction surveys to Users who purchase Products
through such Affiliated Advertiser Sites or such other provider of such
services as AOL may designate or approve from time to time, and (ii)
provide a link to BizRate's then-current standard survey forms, or such
other survey forms offered by any other party that AOL may reasonably
designate or approve from time to time. Advertiser's participation shall
be based upon a separate written agreement which Advertiser will enter
into with BCE, or other such party reasonably designated or approved by
AOL. Advertiser hereby authorizes BCE to provide to AOL any and all
reports provided to Advertiser by BCE, or other third party providing such
services, and agrees to provide written notice of such authorization to
BCE, or such other third party.
6.6 CUSTOMER SERVICE. It is the sole responsibility of Advertiser to
provide customer service to persons or entities purchasing Products
through the AOL Service, XXX.xxx or the CompuServe Service ("Customers").
Advertiser will bear full responsibility for all customer service,
including without limitation, order processing, billing, fulfillment,
shipment, collection and other customer service associated with any
Products offered, sold or licensed through each Advertiser Site, and AOL
will have no obligations whatsoever with respect thereto. Advertiser will
receive all emails from Customers via a computer available to Advertiser's
customer service staff and generally respond to such emails within one
business day of receipt. Advertiser will receive all orders electronically
and generally process all orders within one business day of receipt,
provided Products ordered are not advance order items. Advertiser will
ensure that all
EXECUTION VERSION
orders of Products are received, processed, fulfilled and delivered on a
timely and professional basis. Advertiser will offer AOL Users who
purchase Products through such Affiliated Advertiser Sites a money-back
satisfaction guarantee. Advertiser will bear all responsibility for
compliance with federal, state and local laws in the event that Products
are out of stock or are no longer available at the time an order is
received. Advertiser will also comply with the requirements of any
federal, state or local consumer protection or disclosure law. Payment for
Products will be collected by Advertiser directly from customers.
Advertiser's order fulfillment operation will be subject to AOL's
reasonable review.
7. CROSS-PROMOTION.
A. Within each Affiliated Advertiser Site, Advertiser may include either
of the following (collectively, the "AOL Promos"): (i) a prominent
promotional banner or button (at least 90 x 30 pixels or 70 x 70 pixels in
size) appearing on the first or other screens (as mutually agreed upon by
Advertiser and AOL) of the Affiliated Advertiser Sites, to promote such
AOL products or services as AOL may designate (for example, the America
Online(R) brand service, the CompuServe(R) brand service, the XXX.xxx(R)
site, any of the Digital City services or the AOL Instant Messenger(TM)
service); or (ii) a prominent "Try AOL" feature (at least 90 x 30 pixels
or 70 x 70 pixels in size) 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 Promos (including designation of links from such content
to other content pages). Advertiser shall post (or update, as the case may
be) the creative content supplied by AOL within the spaces for the AOL
Promos within ten (10) days of its receipt of such content from AOL.
Without limiting any other reporting obligations of the Parties contained
herein, Advertiser shall provide AOL with monthly written reports
specifying the number of impressions to the pages containing the AOL
Promos during the prior month. In the event that AOL elects to serve the
AOL Promos to any Affiliated Advertiser 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 Affiliated Advertiser Sites on which the AOL Promos will appear. In
addition, within each Affiliated Advertiser Site, Advertiser shall provide
prominent promotion for the keywords granted to Advertiser hereunder. To
the extent that the foregoing programs result in subscribers (for three
(3) consecutive months, exclusive of any standard free trial periods
offered by AOL) to the America Online(R) brand service, AOL will pay
Advertisers a fee equal to AOL's standard bounty fees for marketing
relationships of this kind, taking into account all relevant costs.
B. 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
Sites through the AOL Service. Without limiting the generality of the
foregoing, 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 Sites (except in the event that the
Advertiser's "URL" is the most or second-most prominently displayed item
in a particular advertisement, in which case such restriction shall not
apply). Advertiser will not implement or authorize any promotion similar
in any respect (including, without limitation, in scope, purpose, amount,
prominence or regularity) to the promotion required or provided pursuant
to this Cross Promotion Section for any other entity reasonably construed
to be competitive to AOL. In addition, in the event that Advertiser
promotes any other interactive service in any of its advertisements
described in this paragraph B, Advertiser shall ensure that AOL shall
receive a promotion no less prominent than any such other interactive
service in such advertisement.
8. REDESIGN. In the event that, at any time during any relevant display
period, AOL redesigns, or modifies the organization, structure, "look and
feel," navigation and other elements of the Shopping Channel or other AOL
property on which Advertiser is to receive Permanent or Non-Permanent
Advertisements pursuant to Exhibit A hereof, AOL shall provide Advertiser
as its sole remedy, one comparable promotional placement for each such
Advertisement upon which any such redesign or modification has a material
adverse effect.
EXECUTION VERSION
9. SEARCH TERMS. To the extent that Advertiser has requested, or does in the
future request, that Advertiser's Advertisements be displayed in
connection with any particular search term(s) within an AOL product or
service, such request shall constitute a representation and warranty by
Advertiser that Advertiser has all consents, authorizations, approvals,
licenses, permits, or other rights necessary for Advertiser to use such
search term(s).
10. NAVIGATION. AOL will be entitled to establish navigational icons, links
and pointers connecting the Affiliated Advertiser Sites (or portions
thereof) with other content areas on or outside of the AOL Network.
Additionally, in cases where an AOL User performs a search for Advertiser
through any search or navigational tool or mechanism that is accessible or
available through the AOL Network (e.g., Promotions, Keyword Search Terms,
or any other similar promotions or navigational tools), AOL shall have the
right to direct such AOL User to any Affiliated Advertiser Site, or any
other Advertiser Interactive Site determined by AOL in its reasonable
discretion.
11. KIDS ONLY AND TEENS PROMOTIONS. For every promotion, banner or button in
the (i) Kids Only area, Advertiser will ensure that that all Content
distributed on or through the Advertisements and any Advertiser Affiliated
Site which is targeted to children's age groups, including but not limited
to Content designated as such by AOL, complies with the AOL Kids Policy
and (ii) AOL Teens Channel, Advertiser will ensure that all Content
distributed on or through the Advertisements and any Affiliated Advertiser
Site which is targeted to such teen age groups, including but not limited
to Content designated as such by AOL, complies with the relevant AOL Young
Teens and Mature Teens Policies (the Kids Policies, together with the
Young Teens and Mature Teens Policies collectively referred to herein as
the "Kids Policies") including (in each case) any viewruling obligations.
Advertiser shall notify AOL in writing whenever it intends to distribute
Advertising content for these age groups on or through any such Advertiser
Affiliated Site to ensure proper age restriction categorization.
Advertiser acknowledges and agrees that (i) any such promotion in the Kids
Only area may require Advertiser to explicitly designate such promotion as
an advertisement, or promotion, or any other term as designated by AOL at
it sole discretion. Advertiser hereby acknowledges and agrees that all
Advertiser promotions made pursuant to this Section shall comply with (i)
AOL's Standard Ad Terms and Conditions appearing at keyword "Standard Ad
Terms3" on the U.S.-based America Online brand service and at
xxxx://xxxxxxxxxx.xxx.xxx/xxxxxxx0.xxxx, (ii) the Kids Policies and (iii)
all applicable laws, rules and regulations related to the sale of the
Advertiser Products (or the provision of related Content or services) to
children and teens (collectively, the "Applicable Children's Laws"), and
Advertiser hereby agrees to indemnify, defend and hold harmless AOL and
its officers, directors, agents, affiliates, distributors, franchises and
employees from and against any and all claims, actions, liabilities,
losses, expenses, damages and costs (including, without limitation,
reasonable attorneys' fees) that arise or are incurred in connection with
any violation of such Standard Ad Terms, Kids Policies or Children's Laws.
In the event that Advertiser violates any term of the Kids Policies or the
Standard Ad Terms, AOL shall have the right, upon notice to MP, to suspend
the display of the Non-Permanent and Permanent Advertisements, and to
decrease on a PRO RATA basis the Impressions commitment hereunder until
such time as Advertiser has corrected such non-compliance; PROVIDED,
HOWEVER, that in such event, AOL will be relieved of the proportionate
amount of any promotional and Impressions commitments made to MP by AOL
hereunder corresponding to such decrease in (or suspension of) such
promotion or Impressions during such period of non-compliance; PROVIDED,
FURTHER, that in the event that Advertiser has failed to cure such
non-compliance within thirty (30) days following notice by AOL, AOL shall
have the right to terminate this Agreement immediately without further
obligation or liability to Advertiser. In the event that Advertiser fails
to comply with any Applicable Children's Law, AOL shall have the right to
terminate this Agreement immediately.
12. CONTENT AND TRADEMARK LICENSE. Advertiser hereby grants AOL, during the
Term, a non-exclusive, royalty-free worldwide license to market, license,
distribute, reproduce, adapt, display, perform, transmit and promote,
solely for the purposes set forth in this Agreement, all content offered
through the Affiliated Advertiser Sites pursuant to this Agreement or
otherwise provided by Advertiser or its agents in connection herewith
(collectively, the "Licensed Content"), or any portion thereof, through
such areas or features of the AOL Network as AOL deems appropriate;
PROVIDED, HOWEVER, that (i) any such Licensed Content shall remain on, or
contain a
EXECUTION VERSION
link to the relevant Affiliated Advertiser Site; and (ii) any
disaggregation of such Licensed Content by AOL shall not exceed in length
that which is reasonably necessary to summarize the content (e.g, headline
and/or sentence or abstract) on the relevant Affiliated Advertiser Site to
which such disaggregated Licensed Content is linked. Any link to any
Affiliated Advertiser Site shall be in the form of, or will contain, an
Advertiser Xxxx (as defined below) or headline (or other portion of
Licensed Content as permitted by clause (ii) above. In addition, AOL Users
will have the right to access and use the Affiliated Advertiser Sites,
Advertiser also hereby grants AOL, during the Term, a non-exclusive,
royalty-free worldwide license to and right to use, solely for the
purposes set forth in this Agreement, the trade names, trademarks and
service marks of Advertiser (collectively, the "Marks") for which
Advertiser holds all rights necessary for use in connection with this
Agreement (including, without limitation, for the promotional purposes
contemplated herein). AOL hereby acknowledges that Advertiser is the owner
of the right to use the Marks and of other valuable property rights in the
Marks and of the goodwill and reputation symbolized thereby, and that
nothing contained herein shall constitute an assignment of the right to
use the Marks or grant AOL any right, title or interest therein, except to
use the Marks as set forth herein. AOL agrees that it will not contest
Advertiser's ownership of the right to use the Marks, nor take any action
in derogation of Advertiser's rights in the Marks or challenge the
validity of the Marks, and that all goodwill and improved reputation
generated by AOL's use of the Marks shall inure to the benefit of
Advertiser. AOL acknowledges that, in order to protect Advertiser's
valuable property rights in the Marks, Advertiser must control the quality
and nature of the use of the Marks by AOL. Accordingly, AOL agrees that
its use of the Marks shall be consistent with Advertiser's use of the
Marks as communicated in writing by Advertiser to AOL in advance.
Advertiser hereby agrees that AOL shall be entitled to use the Marks in
online and offline promotional materials approved by Advertiser; PROVIDED,
HOWEVER, that AOL's use of screen shots of the Affiliated Advertiser Sites
for promotional purposes shall not require the approval of Advertiser.
Advertiser warrants that the Products and other Licensed Content : (i)
shall not infringe on or violate any copyright, trademark, U.S. patent,
right of publicity or any other third party right, including without
limitation, any music performance or other music-related rights; (ii)
shall not violate AOL's then-applicable Terms of Service or any other
standard, written AOL policy; and (iii) shall not violate any applicable
law or regulation, including those relating to contests, sweepstakes or
similar promotions.
13. REPRESENTATIONS AND WARRANTIES. For purposes of the Advertiser
representations and warranties contained in Section 1 of the Standard
Terms, the Parties hereby acknowledge and agree that the definition of the
terms "Advertiser Content" contained therein (as such terms relate to such
representations and warranties) shall be construed to include (i) not only
any Advertisement (as defined therein) and any content or materials linked
to any such Advertisement, but also (ii) any other pages of the Affiliated
Advertiser Sites and all content, materials, advertisements and Products
thereon.
EXECUTION VERSION
Exhibit D
OPERATING STANDARDS
1. GENERAL. The Affiliated Advertiser Sites (including the Products and other
Content contained therein) will be in the top six (6) in the online teen
and children's apparel industry, as determined by each of the following
methods: (a) based on a cross-section of third-party reviewers who are
recognized authorities in such industry and (b) with respect to all
material quality averages or standards in such industry, including each of
the following: (i) pricing and terms of Products, (ii) scope and selection
of Products, (iii) quality of Products, (iv) customer service and
fulfillment associated with the marketing and sale of Products and (v)
ease of use and user interface of Affiliated Advertiser Sites. In
addition, the Affiliated Advertiser Sites will, with respect to each of
the measures listed above, be competitive in all respects with that which
is offered by any Advertiser competitor.
2. AFFILIATED ADVERTISER SITES INFRASTRUCTURE. Advertiser will be responsible
for all communications, hosting and connectivity costs and expenses
associated with the Affiliated Advertiser Sites. Advertiser will provide
all hardware, software, telecommunications lines and other infrastructure
necessary to meet traffic demands on the Affiliated Advertiser Sites from
the AOL Network. Advertiser will design and implement the network between
the AOL Service and Affiliated Advertiser Sites such that (i) no single
component failure will have a materially adverse impact on AOL Members
seeking to reach the Affiliated Advertiser Sites from the AOL Network and
(ii) no single line will run at more than 70% average utilization for a
5-minute peak in a daily period. In this regard, Advertiser will provide
AOL, upon request, with a detailed network diagram regarding the network
infrastructure supporting the Affiliated Advertiser Sites. In the event
that Advertiser elects to create a custom version of the Affiliated
Advertiser Sites in order to comply with the terms of this Agreement,
Advertiser will bear responsibility for all aspects of the implementation,
management and cost of such customized site.
3. OPTIMIZATION; SPEED. Advertiser will use commercially reasonable efforts
to ensure that: (a) the functionality and features within the Affiliated
Advertiser Sites are optimized for the client software then in use by AOL
Members; and (b) the Affiliated Advertiser Sites is designed and populated
in a manner that minimizes delays when AOL Members attempt to access such
site. At a minimum, Advertiser will ensure that the Affiliated Advertiser
Sites' data transfers initiate within fewer than fifteen (15) seconds on
average. Prior to commercial launch of any material promotions described
herein, Advertiser will permit AOL to conduct performance and load testing
of the Affiliated Advertiser Sites (in person or through remote
communications), with such commercial launch not to commence until such
time as AOL is reasonably satisfied with the results of any such testing.
4. USER INTERFACE. Advertiser will maintain a graphical user interface within
the Affiliated Advertiser Sites that is competitive in all material
respects with interfaces of other similar sites based on similar form
technology. AOL reserves the right to review and approve the user
interface and site design prior to launch of the Promotions and to conduct
focus group testing to assess compliance with respect to such consultation
and with respect to Advertiser's compliance with the preceding sentence.
5. TECHNICAL PROBLEMS. Advertiser agrees to use commercially reasonable
efforts to address material technical problems (over which Advertiser
exercises control) affecting use by AOL Members of the Affiliated
Advertiser Sites (a "Advertiser Technical Problem") promptly following
notice thereof. In the event that Advertiser is unable to promptly resolve
a Advertiser Technical Problem following notice thereof from AOL
(including, without limitation, infrastructure deficiencies producing user
delays), AOL will have the right to regulate the promotions it provides to
Advertiser hereunder until such time as Advertiser corrects the Advertiser
Technical Problem at issue.
6. MONITORING. Advertiser will ensure that the performance and availability
of the Affiliated Advertiser Sites is monitored on a continuous basis.
Advertiser will provide AOL with contact information (including e-mail,
phone, pager and fax information, as applicable, for both during and after
business hours) for Advertiser's principal business and technical
representatives, for use in cases when issues or problems arise with
respect to the Affiliated Advertiser Sites.
7. TELECOMMUNICATIONS. The Parties agree to explore encryption methodology to
secure data communications between the Parties' data centers. The network
between the Parties will be configured such that no single
EXECUTION VERSION
component failure will significantly impact AOL users. The network will be
sized such that no single line runs at more than 70% average utilization
for a 5-minute peak in a daily period.
8. SECURITY. Advertiser will utilize Internet standard encryption
technologies (e.g., Secure Socket Layer - SSL) to provide a secure
environment for conducting transactions and/or transferring private member
information (e.g. credit card numbers, banking/financial information, and
member address information) to and from the Affiliated Advertiser Sites.
Advertiser will facilitate periodic reviews of the Affiliated Advertiser
Sites by AOL in order to evaluate the security risks of such site.
Advertiser will promptly remedy any security risks or breaches of security
as may be identified by AOL's Operations Security team.
9. TECHNICAL PERFORMANCE.
i. Advertiser will design the Affiliated Advertiser Sites to support
the AOL-client embedded versions of the Microsoft Internet Explorer
3.0 and 4.0 browsers (Windows and Macintosh), the Macintosh version
of the Microsoft Internet Explorer 3.0, and make commercially
reasonable efforts to support all other AOL browsers listed at:
"xxxx://xxxxxxxxx.xxxx.xxx.xxx/XxxxXxxxx.xxxx."
ii. To the extent Advertiser creates customized pages on the Affiliated
Advertiser Sites for AOL Members, Advertiser will configure the
server from which it serves the site to examine the HTTP User-Agent
field in order to identify the "AOL Member-Agents" listed at:
"xxxx://xxxxxxxxx. xxxx.xxx.xxx/Xxxx0Xxxx.xxxx."
iii. Advertiser will periodically review the technical information made
available by AOL at xxxx://xxxxxxxxx.xxxx.xxx.xxx.
iv. Advertiser will design its site to support HTTP 1.0 or later
protocol as defined in RFC 1945 and to adhere to AOL's parameters
for refreshing cached information listed at
xxxx://xxxxxxxxx.xxxx.xxx.xxx.
v. Prior to releasing material, new functionality or features through
the Affiliated Advertiser Sites ("New Functionality"), Advertiser
will use commercially reasonable efforts to either (i) test the New
Functionality to confirm its compatibility with AOL Service client
software or (ii) provide AOL with written notice of the New
Functionality so that AOL can perform tests of the New Functionality
to confirm its compatibility with the AOL Service client software.
AOL INTERNET SERVICES ADVERTISER SUPPORT. AOL will provide Advertiser with
access to the standard online resources, standards and guidelines documentation,
technical phone support, monitoring and after-hours assistance that AOL makes
generally available to similarly situated web-based partners. AOL support will
not, in any case, be involved with content creation on behalf of Advertiser or
support for any technologies, databases, software or other applications which
are not supported by AOL or are related to any Advertiser area other than the
Affiliated Advertiser Sites. Support to be provided by AOL is contingent on
Advertiser providing to AOL demo account information (where applicable), a
detailed description of the Affiliated Advertiser Sites' software, hardware and
network architecture and access to the Affiliated Advertiser Sites for purposes
of such performance and load testing as AOL elects to conduct.
