CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR CERTAIN PORTIONS OF THIS EXHIBIT
PURSUANT TO RULE 406 UNDER THE SECURITIES ACT OF 1933, AS AMENDED
PROCUREMENT AND TRAFFICKING AGREEMENT
Company: DIGITAL EQUIPMENT CORPORATION TOGETHER WITH ITS WHOLLY-OWNED AND MAJORITY-OWNED SUBSIDIARIES AND AFFILIATES ("COMPANY")
Address: MSO 2-3 111 POWDERMILL RD. MAYNARD, MA 01754
Web Site URL: altavista.digital.com
This Agreement when executed by the above named company ("Company"), and DoubleClick Inc. ("DoubleClick"), will constitute a valid and binding agreement between Company and DoubleClick according to the specific terms an
d conditions set forth below and those terms and conditions set forth in (i) the Standard Terms and Conditions, (ii) Appendix 1, (iii) Appendix 2 and (iv) Appendix 3 attached hereto. All terms not otherwise defined below shall be as defined in the Standar
d Terms and Conditions.
I. DESCRIPTION OF SERVICES
A. DoubleClick hereby agrees to link Pages to the Service and through
such Service, DoubleClick shall deliver Advertisers' Banners to users
accessing Pages. The selection and the delivery of Banners through the
Service to users accessing Pages will be in accordance with the
Placement Algorithm set forth in Appendix 1 hereto, and schedules and
specifications which may be made a part of this Agreement by the
written consent of the parties hereto; provided, however that the
delivery of Banners (the "December Delivery Banners") by DoubleClick
for the period commencing on December 18, 1996 and continuing through
December 31, 1996 (the "December Delivery Period") shall be in
accordance with the terms and conditions of Section VI of this
Agreement and the Placement Algorithm set forth in Appendix 1 hereto
shall not apply to the delivery of the December Banners. DoubleClick
and Company shall mutually agree upon the number and type of Pages to
be linked to the Service.
B. During the first six (6) months of the Term (as defined below), the
Company shall not place, or permit the placement or delivery of, any
Banners or third party advertising on any pages of the Web Site
(including, without limitation, the Pages and those pages which are
not linked to the Service) except through DoubleClick which shall be
the Company's sole and exclusive representative for the placement and
delivery of all Banners and other advertising on the pages of the Web
Site. Thereafter, the Company shall not place, or permit the placement
or delivery of, any Banners or third party advertising on any Pages
except through DoubleClick which shall be the Company's sole and
exclusive representative for the placement and delivery of all Banners
and other advertising on the Pages; provided, however, that if Company
intends to engage a third party to sell or place banners on said
non-linked pages after the first six (6) months of the Term, Company
shall provide DoubleClick with sixty (60) days notice, notifying
DoubleClick of Company's intention to do place or deliver Banner to
the non-linked pages.
II. TERM
The term (the "Term") of this Agreement shall commence on December 16,
1996 and shall continue for two (2) years thereafter, except that
either party may earlier terminate this Agreement for any reason after
that date which is six (6) months following the effective date hereof
on not less than ninety (90) days prior written notice to the other
III. COMPENSATION/PAYMENT
A. In full consideration of the Company providing the use of the Spot,
DoubleClick shall pay Company, and Company agrees to accept, *
of the Net Revenues generated on Banners which are delivered
through the Service to Pages after the December Delivery
Period and DoubleClick shall retain * of said Net Revenues;
provided, however, if the Earned Revenues generated on Banners
which are delivered through the Service to Pages after the
December Delivery Period do not meet minimum calendar quarterly goals
which are mutually agreed upon by Company and DoubleClick (the
"Quarterly Goals"), then DoubleClick shall pay Company, and Company
agrees to accept, * of the Net Revenues generated on Banners
which are delivered through the Service to Pages for the
succeeding calendar quarter and DoubleClick shall retain *
of said Net Revenues for the succeeding calendar quarter.
The parties expressly acknowledge and agree that the
Quarterly Goals for 1997 shall be * for the first quarter of
1997; * for the second quarter of 1997; * for the
third quarter of 1997; and * for the fourth quarter of
1997. Notwithstanding DoubleClick's failure to achieve the
Quarterly Goals, commencing with the third calendar quarter of 1997,
DoubleClick and Company shall reasonably determine whether Company is
among the top * Internet Search Engines in terms of gross
advertising revenue earned by such Internet Search Engines from the
placement of Banners on said Internet Search Engines for each calendar
quarter and if Company is among the top * Internet Search
Engines for said calendar quarter, then DoubleClick shall pay
Company, and Company agrees to accept, * of the Net Revenues
generated on Banners which are delivered through the Service to Pages
for the succeeding calendar quarter and DoubleClick shall retain
* of said Net Revenues for the succeeding calendar quarter.
DoubleClick anticipates that the majority of Net Revenues derived from
the delivery of Banners through the Service to Pages is
*Represents material which has been redacted pursuant to a request for confidential treatment pursuant to Rule 406 promulgated under the Securities Act of 1933, as amended.
generated from the delivery of Banners based on Keywords. Company
acknowledges that except as otherwise provided in this Agreement,
Company shall not be entitled to any additional compensation in
connection with the performance of its obligations hereunder.
B. DoubleClick shall pay Company on or about the third business day of
each month for all Net Revenues collected in the prior month from
Advertisers whose Banners are delivered to Pages.
C. Company shall be solely responsible for any costs or expenses it
incurs in connection with the Service or performance of its
obligations under this Agreement including, without limitation,
expenses associated with any HTML programming and linking Pages to the
D. Notwithstanding anything to the contrary contained herein, in the
event Company terminates this Agreement in accordance with Section II
above and DoubleClick, prior to said termination, has entered into
agreements with Advertisers ("Advertiser Contracts") for the delivery
of Banners to the Pages, the duration of which Advertiser Contracts
extend beyond the date on which this Agreement has been terminated by
Company, DoubleClick shall be entitled to * of the revenues
derived from the continued delivery of said Banners by Company or
any party other than DoubleClick.
E. If Company requests DoubleClick to deliver banners from advertisers
which were secured by Company or a third party to any Web Site pages
not linked to the Service, DoubleClick's compensation for such
delivery shall be negotiated in good faith by the parties hereto.
DoubleClick expressly agrees that it shall deliver Company Partner
Banners pursuant to this Section III.E. in accordance with the terms
set forth in Appendix 1 hereto.
IV. COMPANY OBLIGATIONS AND RIGHTS
A. Company agrees to effect all necessary HTML programming with respect
to the Web Site and Pages in accordance with the HTML Modifications
(the "HTML Modifications") to be designated by DoubleClick.
B. Spots must be within the first screen of a Page and otherwise conform
to the HTML Modifications unless otherwise agreed upon by Company and
C. Company agrees to place a link on the Web Site's home page to
DoubleClick's web site for potential advertisers to learn how they can
place advertising on the Web Site.
*Represents material which has been redacted pursuant to a request for confidential treatment pursuant to Rule 406 promulgated under the Securities Act of 1933, as amended.
D. Company agrees that DoubleClick has no responsibility to review the
contents of Pages or the Web Site.
E. Company shall have the right at any time to notify DoubleClick that it
disapproves of a Banner which is then currently being delivered by
DoubleClick to the Web Site and that such Banner should no longer be
delivered to the Web Site. Provided that such notification is given
by Company on a business day, DoubleClick shall remove said Banner
within three (3) hours of such notification. If the notification is
given on a non-business day, DoubleClick shall remove said Banner
within three (3) hours following the start of business on the next
business day following such notification.
V. DOUBLECLICK OBLIGATIONS AND RIGHTS
A. DoubleClick shall have the right to refuse to include in the Service,
or remove from the Service, any Pages (including its contents) that
DoubleClick determines do not meet the standards of the Service or
which do not comply with the HTML Modifications, as DoubleClick deems
reasonable and necessary in its sole good faith discretion, or in the
event of any material change in the nature of the Web Site or the Page
from that set forth in Company's application. DoubleClick shall give
Company notice of any such removal of Pages, except where DoubleClick
reasonably believes that the failure to remove such Pages will result
in harm or damage to DoubleClick or the Service.
B. Company acknowledges and agrees that promotion of the Service is
critical to enhance usage by Advertisers and in connection therewith
Company agrees that (i) DoubleClick shall have the right to use
Company's Alta Vista tradenames and logos ("Company Marks") in
accordance with Section V.K. and Pages in advertising and promoting
the Service in any media now or hereafter known and (ii) Company
shall, upon DoubleClick's reasonable request, supply DoubleClick with
a reasonable amount of Company's promotional materials so as to
facilitate DoubleClick's sales efforts to prospective Advertisers.
The parties acknowledge and agree that DoubleClick shall not be
required to obtain Company's permission prior to the use of Company's
Marks in advertising and promoting the Service; provided, however,
that DoubleClick shall at all times comply with the guidelines set
forth by Company pertaining to the use of Company's name, trademarks
or logos, which guidelines are set forth in Appendix 3 hereto. If
DoubleClick fails to comply with said guidelines, Company shall so
notify DoubleClick and DoubleClick shall within a reasonable period of
time thereafter prospectively conform such use to Company's standards.
If DoubleClick fails to conform such use, Company shall have the right
to suspend DoubleClick's non-conforming use of the Company Marks.
C. DoubleClick agrees to actively promote the Web Site to the advertising
community. Seminars, sales materials, trade materials, print and
online advertising, conferences, and sales presentation materials are
among the means by which DoubleClick shall promote the Web Site.
DoubleClick further agrees to promote Company both as part of the
network of web sites linked to the Service and as a premium web site
using collateral materials and a rate card customized to Company and
the Web Site.
D. DoubleClick shall have the right to use for DoubleClick's own internal
use in connection with the Service or for use in connection with
potential Advertisers on the Service, information concerning Pages,
Impressions and users accessing Pages obtained through the Service,
provided DoubleClick does not reproduce any Pages without Company's
prior consent and DoubleClick shall not disclose to any third party
any such information specifically pertaining to such users. Except as
expressly provided herein, DoubleClick shall not disclose any other
statistical data regarding Company or the Web Site to any third party
without the written permission of Company. Except as expressly
provided above, all of the foregoing information shall be maintained
in confidence by DoubleClick in accordance with Section 5 of the
Standard Terms and Conditions attached hereto.
E. DoubleClick will make site reports available to Company through
DoubleClick's web site (www.doubleclick.net) listing the number of
Impressions and click-over rates by Page.
F. DoubleClick and Company shall mutually determine the rate card charged
to Advertisers for delivery of Banners to be delivered solely to
Page(s) of the Web Site (except with respect to the December Banners)
and any general discounting strategies relating thereto. DoubleClick
shall not enter into an Advertiser Contract with an Advertiser for the
delivery of Banners to (i) the Page(s) of the Web Site and (ii) the
Page(s) of at least one other web site which is linked to the Service
without Company's permission and if Company so consents, DoubleClick
shall determine the rate card (and any applicable discount) charged to
said Advertiser for delivery of said Banners. It is understood that
the rate charged for specific buys made by an Advertiser will not be
reviewed with Company. Notwithstanding anything to the contrary
contained herein, DoubleClick shall have the right, in its sole
discretion, to provide Advertisers with bonus and/or make-good
Impressions free of charge.
G. DoubleClick shall procure Banners for delivery to the Web Site.
H. DoubleClick agrees that the Service shall perform in accordance with
the Technical Specifications set forth in Appendix 2, attached hereto
and that Company shall have the right to perform the Technical
Specifications Test in Appendix 2.
I. DoubleClick, for its own internal purposes, shall have a financial
audit of (i) its books and records and (ii) its "Ad Management System"
undertaken by KPMG or another "Big Six" accounting firm on an annual
basis during the Term hereof.
J. DoubleClick shall keep accurate records and accounts in accordance
with standard business practices in the on-line industry and generally
accepted accounting principles. Such records shall include, but are
not limited to, the information relevant to the payment, and the
calculations for such payments, to be made in accordance with Section
III of this Agreement. DoubleClick agrees that an independent
certified public accountant shall, no more than three times per year,
until the expiration of one year after final payment under this
Agreement, have access to and the right, upon prior reasonable notice,
to examine at DoubleClick's principal place of business during regular
working hours any books, documents, papers, records or accounts of
DoubleClick relating to the delivery of Banners pursuant to this
Agreement and to the determination and calculation of the payments to
be made to Company. Company agrees to maintain all information
obtained during such examinations in confidence and to cause its duly
authorized representatives to do so as well. Audits shall be at the
expense of Company, unless an underpayment exceeding five percent (5%)
of the amount paid for the period covered by the inspection is
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