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Exhibit 10.24
STUDENT ADVANTAGE, INC.--XXXXXXXXXXX.XXX PARTNER CONTRACT
PURPOSE
This proposal addresses the major components of a joint marketing/business
relationship between Student Advantage, Inc. and XxxxxxxXxxx.xxx. The terms and
conditions below are not binding in any way upon the parties. However, the
parties agree to negotiate in good faith to reach an agreement based upon the
terms and conditions below.
BACKGROUND
XxxxxxxXxxx.xxx is actively pursuing relationships with companies in industries
who target college bound students and their families. Currently proposals for
specific industries such as automotive, telephony and more are under
consideration with 2-3 more contemplated in other categories. The college hub
(Student Advantage) category has the potential of being much more comprehensive
because of the directly related business opportunities that are associated with
college bound students and their families as part of the admission, financial
aid and enrollment processes. It is within this category that we are proposing
the Student Advantage partnership.
THE MARKET
XxxxxxxXxxx.xxx is the pioneer and leading provider of electronic college
admission applications. By leveraging this position and through a comprehensive
website, XxxxxxxXxxx.xxx has become the most effective site for the online
application process for college-bound students and their parents. Via
partnerships and acquisitions, XxxxxxxXxxx.xxx is augmenting our electronic
admissions solution by introducing services such as financial aid application
processing, student recruiting services and additional options related to
student lending.
The college-bound student market size is approximately 6 million with 2 million
applying to college annually. When factoring in the families, this market
quickly grows to nearly 15 million. Given that XxxxxxxXxxx.xxx can maintain an
on-going relationship with the college-bound audience as they move into
college, our access expands both in number and in timeframe.
Colleges all agree that admission and financial aid applications will, in the
near future, go totally electronic. XxxxxxxXxxx.xxx will continue to dominate
this market due to the following competitive advantages.
XxxxxxxXxxx.xxx assets include:
- Endorsed relationships with over 1,000 colleges and universities
- XxxxxxxXxxx.xxx's partnership with The College Board
- The XxxxxxxXxxx.xxx method of only having to provide application
information once no matter the number of colleges to which the
student is applying
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- Delivery of the College's actual application. Not a 'common
application' that the admissions staff is not familiar with
- The XxxxxxxXxxx.xxx mark and website which are being heavily
marketed to our audience
THE OPPORTUNITY
The initial partnering opportunity between XxxxxxxXxxx.xxx and Student
Advantage would include the following:
- Applying students have the ability to "opt in" to a Student Advantage
discount on the XxxxxxxXxxx.xxx direct mail CD-ROMs--approximately
2 million mailings. The Student Advantage logo will appear on the
exterior of the CD-ROMs.
- To the best of XxxxxxxXxxx.xxx's ability, the applying student will
also be able to "opt in" for the Student Advantage discount on The
College Board Expan/XxxxxxxXxxx.xxx software of which will be distributed
to approximately 3500 high school guidance counselors. The Student
Advantage logo will appear on the exterior of the CD-ROMs.
- To the best of XxxxxxxXxxx.xxx's ability, the applying student will also
be able to "opt in" for the Student Advantage discount on XxxxxxxXxxx.xxx
web site and all syndicated web sites utilizing the XxxxxxxXxxx.xxx college
admissions application.
- XxxxxxxXxxx.xxx shall collect all Student Advantage application fees
generated through the opt-in function on their college admissions
applications. These fees shall be accounted for and paid to Student
Advantage every 30 days.
- Student Advantage will have exclusivity in the student discount membership
category for the duration of this agreement.
- In the event that Student Advantage reduces the membership fee from its
current $20 price point, the bounty paid to College Link shall be reduced
by an equal percentage.
- Student Advantage will pay, on advance, $25,000 to XxxxxxxXxxx.xxx 30 days
subsequent to the signing of a definitive agreement. The advance will be
applied to the $8 bounty per sign-off for every Student Advantage sign up
from the XxxxxxxXxxx.xxx applicant. If the bounty collected exceeds
$25,000, then Student Advantage will pay XxxxxxxXxxx.xxx the $8 per sign up
every 90 days.
- Student Advantage will include XxxxxxxXxxx.xxx promotional literature in
the fall 1999 edition of the "Cool Stuff Mailer." The fair market value
for insertion into the cool stuff mailer is $24,000 ($48/m at 500,000).
Xxxxxxxxxxx.xxx is solely responsible for all costs associated with
printing and delivering promotional to the identified mailing house.
TERM AND TERMINATION
This term of the marketing/business relationship will be in effect for a period
of one (1) year. The parties shall have the right, but not the obligation, to
renew this agreement for three (3) additional years. Both parties have the
right to terminate this agreement with thirty (30) days' notice.
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XxxxxxxXxxx.xxx MUTUAL CONFIDENTIALITY AND NON-DISCLOSURE
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The parties plan to sign a mutually agreeable confidentiality and
non-disclosure agreement.
Dated: Sept. 8 , 1999 Dated: Sept. 3rd , 1999
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XxxxxxxXxxx.xxx STUDENT ADVANTAGE
Accepted by: /s/ Xxxxxx Xxxxxxx Accepted By: /s/ Xxxx Xxxx
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Title: President Title: Vice President
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/s/ Xxxxxx Xxxxxxx /s/ Xxxx X. Xxxx
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Signature Signature
