EXHIBIT 10.12
CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR CERTAIN REDACTED PROVISIONS OF THIS AGREEMENT. THE REDACTED PROVISIONS ARE IDENTIFIED BY THREE ASTERISKS ENCLOSED BY BRACKETS AND UNDERLINED. THE CONFIDENTIAL PORTION HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
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AOL ADVERTISING INSERTION ORDER
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by and between
AMERICA ONLINE, INC.
STAMPS.COM INC.
December 16, 1998
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AOL ADVERTISING INSERTION ORDER [LOGO OF AMERICA ONLINE] ==============================================
Contract #:_______________________ AOL Salesperson:__________________ Sales Coordinator:________________ Credit Approval Received Date:_____________________________
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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
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Phone # 310-450-1444
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Fax #
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Email Dwalner@stamps.com
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SIC Code
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Advertiser IAB Category
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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 Same as above
Contact 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
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1. Guaranteed Payments. Advertiser shall make the following payments to AOL:
a. [***];
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b. [***];
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c. [***]; and
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d. Subject to the provisions of Section 2 of Exhibit A, [***].
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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
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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
- -------------------------------------------------------------------------------- [***] 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. - ----------------------------------------------------------------------------------------------------------
Inventory Type (choose one): [_] AOL Service only [_] AOL Affiliate only (e.g. AOL.com)
[_] AOL Service & AOL Affiliate
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AOL Service
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Inventory
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AOL Inventory/Demographic* Display Display # of Ad Slots Total Total
Purchased Start Date Stop Ad Type Purchased Gross Impressions
Date Price
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PHASE I PROMOTIONS
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Run of E-mail: Zip Code Area 1 [***] [***] Banner Rotation [***] [***]
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Run of E-mail: Zip Code Area 2 [***] [***] Banner Rotation [***] [***]
--- --- --- ---
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Run of E-mail: Zip Code Area 3 [***] [***] Banner Rotation [***] [***]
--- --- --- ---
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Run of Service: Zip Code Area 1 [***] [***] Banner Rotation [***] [***]
--- --- --- ---
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Run of Service: Zip Code Area 2 [***] [***] Banner Rotation [***] [***]
--- --- --- ---
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Run of Service: Zip Code Area 3 [***] [***] Banner Rotation [***] [***]
--- --- --- ---
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Computing Download Software: [***] [***] Banner Rotation [***] [***]
Zip Code Targeted --- --- --- ---
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PHASE II PROMOTIONS [***] [***]
See Exhibit B attached hereto --- ---
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* Attach completed AOL Demographic Phase I $193,000 [***]
Profile Worksheet Promotions ---
Total:
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Art - -------------------------------------------------------------------------------
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
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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
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[***] 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.
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AOL Affiliate (e.g., AOL.com)
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Inventory
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AOL Affiliate Display Display # of Ad Slots Total Total
Inventory/Demographic* Start Stop Ad Type Purchased Gross Impressions
Purchased Date Date Price
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PHASE I PROMOTIONS
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Digital City - Market Selection [***] [***] Banner [***] [***]
--- --- Rotation --- ---
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PHASE II PROMOTIONS [***] [***]
See Exhibit B attached hereto --- ---
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* See attached package description for PHASE I $7,000 [***]
any AOL.com package purchases PROMOTIONS ---
TOTAL:
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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:
--------------------------------------- [_] 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):
[_] AOLARTWEST@aol.com [_] AOLARTEAST@aol.com
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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
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Advertising Purchase Summary
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Total Price Total Impessions CPM
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AOL Networks [***] [***]
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AOL Affiliate [***] [***]
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Total Purchase Price [***] [***] [***]
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(Less Agency Discount) N/A N/A
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Net Purchase Price Total Impressions
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$1,900,350 [***]
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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.
4. Impressions Commitment. Any guarantees are to impressions (as measured by
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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:
[***] AOL reserves the right to alter Advertiser flight dates to accommodate
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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
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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
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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
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Title: SVP Business Affairs Title: Pres/CEO
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Date: 12/16/98 Date: 12/15/98
[***] 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.
EXHIBIT A
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1. Authorization to Conduct Business. Advertiser hereby represents and
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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
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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, no ...
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