AOL ADVERTISING INSERTION ORDER
Contract#: 19054
------------------------------ AOL Salesperson: Brandon Bergmark
------------------------ Sales Coordinator: Alex Thiesen [_] Credit approval received
---------------------- Date: August 20, 1999
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Advertiser Advertising Agency
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Contact Person Christopher Kolb, PhD
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Company Name ePills
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Address - Line 1 5900 Hollis Street, Suit O
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Address - Line 2 Emeryville, CA 94608
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Phone # 510-594-8197
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Fax # 510-547-6689
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Email Ckolb@epills.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 Christopher Kolb, PhD
Contact Person
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Company Name ePills
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Billing Address - Line 1 5900 Hollis Street, Suit O
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Billing Address - Line 2 Emeryville, CA 94608
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Billing Phone # 510-594-8197
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Billing Fax # 510-547-6689
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Billing Email Ckolb@epills.com
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P.O. #, if applicable
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Inventory Type (choose one): [_] AOL Service only [_]AOL Affiliate only (e.g., AOL.com)
[_] AOL Service & AOL Affiliate
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AOL Service - --------------------------------------------------------------------------------
CERTAIN INFORMATION ON THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.
AOL Service
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Inventory
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AOL Inventory/Demographic* Purchased Display Display Ad Type # of Ad Slots Total Gross Price Total Impressions
Start Date Stop Date Purchased
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See Exhibit D
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Total
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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:
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[ ] 234x60 IAB Standard/7k Max [ ] 120X60 Shopping/5k Max [ ] 175x45 Chat/Mail in-box/5k Max
[ ] Special
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*Animation is only available on selected screens. Please contact your AOL Salesperson for additional information.
Linking URL: The HTTP/URL address to be connected to the Advertisement shall be: http://www.epills.com (must be filled in)
Please send artwork and URL to (choose one):
[ ] AOLARTWEST@aol.com [ ] AOLARTEAST@aol.com [ ] CENTRALADS@aol.com
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AOL reserves the right to immediately cancel any advertising flight in the event of a materiel change to the nature or content of
the site linked to the Advertisement.
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AOL Affiliate (e.g. AOL.com)
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Inventory
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AOL Inventory/Demographic* Purchased Display Display Ad Type # of Ad Slots Total Gross Price Total Impressions
Start Date Stop Date Purchased
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See Exhibit D
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Total
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*See attached package description for Totals:
any AOL.com package purchases
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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:
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[ ] 458x80 NF Reviews, Search Terms, My News and Hometown/12k Max/animation OK
[ ] 100x70 AOL.com Home Page/3k Max/No animation [ ] 120x60 NF Home Page/2k 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: http://www.epills.com (must be filled in)
Please send artwork and URL to (choose one):
[ ] AOLWEBWEST@aol.com [ ] AOLWEBEAST@aol.com [ ] CENTRALADS@aol.com
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AOL reserves the right to immediately cancel any advertising flight in the event of a materiel 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 See Exhibit D
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AOL Affiliate See Exhibit D
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Total Purchase Price
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(Less Agency Discount)
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Net Purchase Price Total Impressions
[*] [*]
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The products and/or services to be offered or promoted by Advertiser in the Advertisements are as follows: Prescription and Non-prescription drugs, health and health-related products and services, medications, home beauty products, personal care products and related information and services (the "Products" or "Advertiser Products").
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 at such earlier time. Any guarantees are to impressions (as measured by AOL in accordance with its standard methodologies and protocols), not "click-throughs." In the event there is (or will be in AOL's reasonable judgment) a shortfall in impressions as of the end of a display period (a "Shortfall"), such Shortfall shall not be considered a breach of the Agreement by AOL: instead, AOL will provide Advertiser, as its sole remedy, with "makegood" impressions through "run of service" advertisement placements on the AOL Network which have a total value, based on AOL's then-current advertising rate card, equal to the value of the Shortfall. To the extent impressions commitments are identified without regard to specific placements, such placements will be as mutually agreed upon by AOL and Advertiser during the course of the display period. AOL reserves the right to alter Advertiser flight dates to accommodate trafficking needs or other operational needs. In such cases, AOL will make available to Advertiser reasonably equivalent flight(s).
Navigation. Advertiser shall provide continuous navigational ability for AOL or - ---------- users to return to an agreed-upon point on the AOL Network (for which AOL shall supply the proper address) from the Affiliated Advertiser Site (e.g. the point on the AOL Network from which the Affiliated Advertiser Site is linked), which, at AOL's option, may be satisfied through the use of a hybrid browser format. Advertiser will ensure that navigation back to the AOL Network, whether through a particular pointer or link, the "back" button on an Internet browser, the closing of an active window, or any other return mechanism, shall not be interrupted by Advertiser through the use of any intermediate screen or other device not specifically requested by the user, including without limitation through the use of any html popup window or any other similar device. Additionally, in cases where an AOL user performs a search for Advertiser or any Advertiser product 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 promotions or navigational tools), AOL shall have the right to direct such AOL user to the Affiliated Advertiser Site.
Standard Terms and Conditions. This Insertion Order incorporates by reference - ----------------------------- AOL's standard advertising terms and conditions (the "Standard Terms"), including terms related to advertising material, payment modifications, cancellation rights, usage data, limitations of liability, disclaimers, indemnifications, use of AOL member information and miscellaneous legal terms. Among other things, the Standard Terms provide AOL the right to cancel this Insertion Order 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 Terms4" on the U.S.-based America Online brand service and at "http://mediaspace.aol.com/adterms4.html." 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.
[*] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.
AUTHORIZED SIGNATURES
In order to bind the parties to this Insertion Order, their duly authorized representatives have signed their names below on the dates indicated. This Agreement (including (i) the Standard Terms, (ii) the additional terms and conditions on Exhibit A attached hereto, (iii) the definitions on Exhibit B attached hereto, the operational provisions on Exhibit C attached hereto and the Carriage Plan on Exhibit D attached hereto, each incorporated herein by reference and made a part hereof) 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)).
AMERICA ONLINE, INC. ADVERTISER
By: /s/ Erik L. Kadlow By: /s/ F. Christopher Kolb
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Print Name: Erik L. Kadlow Print Name: F. CHRISTOPHER KOLB
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Title: Vice President, Business Affairs Title: PRESIDENT, EPILLS, INC.
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Date: 8-20-99 Date: 08-20-99
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EXHIBIT A
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Additional Terms
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1. Payments; Late Payments; Wired Payments. Subject to the terms of this
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Agreement, Advertiser shall pay AOL a non-refundable guaranteed payment of
[*], payable as follows:
(a) upon the execution of this Agreement (not later than the Effective
Date), [*];
(b) on August 31, 1999, [*];
(c) on September 30, 1999, [*];
(d) exactly three (3) months after the Effective Date, [*];
(e) exactly six (6) months after the Effective Date, [*];
(f) exactly nine (9) months after the Effective Date, [*];
(g) exactly twelve (12) months after the Effective Date, [*];
(h) exactly fifteen (15) months after the Effective Date, [*];
(i) exactly eighteen (18) months after the Effective Date, [*];
(j) exactly twenty-one (21) months after the Effective Date, [*];
All amounts owed under this Agreement 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 [*] at The Chase Manhattan Bank, 1 Chase
Manhattan Plaza, New York, NY 10081 (ABA: 021000021). In the event of
nonpayment, AOL reserves the right to immediately terminate this Agreement
with written notice to Advertiser.
2. Content of Affiliated Site. The Advertisements will only promote the
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Advertiser's Products and, except for prescription and non-prescription
drugs and related products, which AOL acknowledges may be promoted on the
AOL Network in accordance with Exhibit D hereof, the promotion of products
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on the AOL Network. Additionally, the Affiliated Advertiser Site will only
offer the Advertiser's Products and content related thereto (except to the
extent otherwise mutually agreed upon by the parties). Advertiser will
ensure that the prices, terms and conditions for the Products in the
Affiliated Advertiser Site are no less favorable, taken as a whole, than
the prices, terms and conditions on which the Products or substantially
similar products are offered by or on behalf of Advertiser through any
other distribution channels. All sales of Advertiser's Products through the
Affiliated Advertiser Site will be conducted through a direct sales format:
Advertiser will not promote, sell, offer or otherwise distribute any
products through any format other than a direct sales format (e.g. through
auctions or clubs) without the prior written consent of AOL.
3. Third Party Advertisements Within the Affiliated Site. As soon as
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reasonably practical following the Effective Date, the parties will
mutually agree upon a written advertising program (the "Ad Program")
whereby both AOL and Advertiser will in coordination with each other,
establish advertising inventory space within and sell promotions,
advertisements, links, pointers or similar services or rights through the
Affiliated Advertiser Site to Advertiser's vendors ("Advertisements"). All
sales of Advertisements by Advertiser will be subject to AOL's then-
applicable advertising policies, AOL's third party relationships and
exclusives. All revenues from any Advertisements will be shared evenly
between the parties. No Interactive Service (other than AOL or its
affiliates) will be promoted in the Affiliated Advertiser Site.
4. Special Offers/Member Benefits. Advertiser will generally promote through
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the Affiliated Advertiser Site 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 Site on a
[*] = CERTAIN INFORMATION ON THIS PAGE HAS BEEN OMITTED AND FILED SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.
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 meaningful benefit to AOL users, either by
virtue of a meaningful price discount, product enhancement, unique service
benefit or other special feature. Advertisers 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. Notwithstanding the foregoing, in the event
that AOL fails to promote such AOL Special Offers, Advertiser shall be
relieved from its obligations under this Section 4.
5. AOL Quick Checkout. Advertiser will take all reasonable steps necessary to
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conform its promotion and sale of products through the Advertiser Site 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 on
a royalty free basis the tools for the Advertiser to enable the Advertiser
Site 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 the Advertiser Site includes
AOL's Quick Checkout, Advertiser will ensure that the AOL Quick Checkout is
of equal placement and promotion prominence to other available payment
6. Merchant Certification Program. Advertiser will participate in any
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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, AOL.com 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
7. BizRate Survey. Advertiser agrees to (i) participate in the BizRate(R)
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Program, a service offered by Binary Compass Enterprises, Inc. (BCE), which
provides opt-in satisfaction surveys to Users who purchase products through
such Advertiser Site 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 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.
8. Specific Customer Service Requirements. Advertiser will receive all emails
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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 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 the Advertiser Site 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
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