INTERACTIVE MARKETING AGREEMENT
This Interactive Marketing Agreement (the "Agreement"), is made and entered into as of March 1, 1998 (the "Eff
ective Date"), by and between America Online, Inc. ("AOL"), a Delaware corporation, with offices at 22000 AOL Way, Dulles, Virginia 20166 and CyberSource Corporation, a/k/a "software.net" (the "Marketing Partner" or "MP"), a California corporation, with o
ffices at 3031 Tisch Way, Suite 900, San Jose, CA 95128 (each a "Party" and collectively the "Parties").
AOL and MP each desires to enter into an interactive marketing relationship whereby AOL will promote MP, the MP Products and the digital deliv
ery of the MP Products through the interactive site referred to (and further defined) herein as the Affiliated MP Site. This relationship is further described below and is subject to the terms and conditions set forth in this Agreement. Defined terms used
herein but not defined in the body of the Agreement shall be as defined in Exhibit B attached hereto.
1. PROMOTION, DISTRIBUTION AND MARKETING.
1.1 AOL PROMOTION OF MP PRODUCTS AND AFFILIATED MP SITE. AOL will
provide MP with the promotions for MP, the MP Products and the
Affiliated MP Site described in Exhibit A attached hereto (the
"Promotions"). Subject to MP's reasonable approval, AOL will
have the right to fulfill its promotional commitments with
respect to any of the foregoing by providing MP with comparable
promotional placements in appropriate alternative areas of the
AOL Network. In addition, if AOL is unable to deliver any
particular Promotion described herein, subject to MP's
reasonable approval, AOL will provide MP, as its sole remedy,
with a comparable promotional placement. AOL reserves the right
to redesign or modify the organization, structure, "look and
feel," navigation and other elements of the AOL services at any
time. In the event such modifications materially and adversely
affect any specific Promotion described herein, subject to MP's
reasonable approval, AOL will provide MP, as its sole remedy,
with a comparable promotional placement.
1.2 IMPRESSIONS. During the Term, AOL will deliver the
following Impressions commitments through the Promotions (or any
comparable promotions as provided in Section 1.1 hereof) during
the following monthly periods (each a "Period"): [*] by the end
of the [*] month of the Term, [*] Impressions from the [*] month
to the end of [*] of the Term, and [*] month to the end of the
[*] month of the Term (which Impressions, together with the
Impressions delivered to MP pursuant to Section 1.3 hereof, as
adjusted from time to time in accordance with Section 1.3, are
hereinafter referred to as the "Impressions Commitment"). With
respect to the Impressions Commitment, AOL will not be obligated
to provide more than such target amounts, individually or in the
aggregate, in any given Period. Any shortfall in Impressions at
the end of a Period will not be deemed a breach of this
Agreement by AOL; instead, such shortfall will be added to the
Impressions target for the subsequent Period. In the event that
as of the Mutual Review Date, AOL shall not have provided a
minimum of [*] through the Promotions and the Additional
Promotions (the "Impressions Minimum"), AOL shall have a
reasonable time, not to exceed [*] within which to deliver the
Impressions Minimum. If AOL shall not have delivered the
Impressions Minimum within such [*] MP shall have the right for
fifteen (15) days to terminate this Agreement upon no less than
fifteen (15) days written notice to AOL, and within thirty (30)
days after such termination, [*] required pursuant to Section
4.1 hereof (the "Guaranteed Payments") [*]
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SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. [*]. If there is a shortfall in Impressions as of the end of the
Initial Term (a "Final Shortfall"), AOL shall have the option to
(i) extend the initial Term (the "Extension Period") until the
earlier of (a) such time as AOL shall have delivered the number
of Impressions which comprise the Final Shortfall (the "Makegood
Impressions") or (b) six (6) months from the end of the Initial
Term; provided that, in the event that AOL shall not have
delivered the Makegood Impressions by the end of the Extension
Period, [*]. During the Extension Period, AOL shall maintain the
exclusivity provisions of Section 3.1 hereof.
1.3 ADDITIONAL IMPRESSIONS. In addition to the Promotions provided
to MP above, AOL shall provide promotions to MP (the "Additional
Promotions") in various categories of (i) the shareware area and
(ii) the web publishing section of the "On the Net" area of the
AOL Service Computing Channel as specified in Exhibit A-1
attached hereto. Additionally, should AOL create a channel or
other area relating to, or focused on, the [*], AOL shall use
commercially reasonable efforts to provide promotion to MP in
such channel or area. The Additional Promotions will deliver
approximately [*] Impressions to MP during the Term of the
Agreement as follows: [*] Impressions by the end of the [*]
month of the Term, [*] Impressions from the [*] month to the [*]
month of the Term, and [*] month to the end of the forty second
(42nd) month of the Term. In the event that MP shall desire to
exchange some of the Additional Promotions for other promotions
on the AOL Service, AOL will work with MP, in good faith, to
provide promotions to MP that are comparable to those provided
on Exhibit A-1.
1.4 CONTENT OF PROMOTIONS. The specific Content to be contained
within the Promotions (including, without limitation,
advertising banners, links, types of products advertised,
graphics, contextual promotions, and editorial Content) (the
"Promo Content") will be determined by MP, subject to (i) AOL's
technical limitations, (ii) the terms of this Agreement and
(iii) AOL's then standard and generally applicable policies
relating to advertising and promotions. AOL will furnish a copy
of the categories of such advertising policies to MP. Further,
AOL will notify MP of a change in such policies and upon the
request of MP, AOL shall furnish the text of any category of
advertising policies requested by MP to MP. MP will
consistently review and modify the Promo Content no less than
two times per week. The Parties will jointly consult with each
other regarding the Promo Content to ensure that it is designed
to maximize performance. Except to the extent expressly
described herein, the specific form, placement, duration and
nature of the Promotions will be determined by AOL in its
reasonable editorial discretion (consistent with the editorial
composition of the applicable screens).
1.5 USE OF PROMOTIONS. MP may sell the promotional spaces provided
herein to third parties in a manner consistent with its ongoing
business practices, provided that any promotional spaces sold to
a third party (i) may only promote the sale of MP Products
(excluding Ancillary Products), and (ii) must promote the sale
of such MP Products (excluding Ancillary Products), through the
Affiliated MP Site. Except to the extent expressly provided in
the preceding sentence, MP may not, nor shall it permit any
third party to, sell or offer to sell any of the promotional
spaces provided herein.
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1.6 MP PROMOTION OF AOL. MP will promote the availability of the
Affiliated MP Site through the AOL Network and will promote AOL as
more fully set forth in Exhibit C attached hereto.
2 AFFILIATED MP SITE.
2.1 CUSTOMIZED SITE. The Affiliated MOP Site shall be an optimized and
"mirrored" version of MP's main web site containing the specific
Content described in Section 2.2 below for distribution hereunder
according to AOL specifications and guidelines to ensure that (i) the
functionally and features within the Affiliated MP Site are optimized
for the client software then in use by a majority of AOL Members (as
determined by AOL and communicated to MP) and (ii) the forms used in
the Affiliated MP Site are designed and populated in a manner
intended to minimize delays when AOL Users attempt to access such
forms. The Affiliated MP Site may include up to four (4) Rainman
screens as mutually determined by AOL and MP. In the event that the
Parties shall create any Rainman screens, AOL shall determine, in its
sole discretion, which of its proprietary publishing tools (each a
"Tool") shall be made available to MP in order to develop and
implement the Rainman screens. Additionally, AOL shall provide MP
with an appropriate level of training with respect to the use of such
Tools, as determined by AOL in its sole discretion. MP shall be
granted a nonexclusive license to use any such Tool, which license
shall be subject to: (a) MP's compliance with all rules and
regulations relating to use of the Tools, as published from time to
time by AOL, (b) AOL's right to withdraw or modify such license at
any time, and (c) MP's express recognition that AOL provides all
Tools on an "as is" basis, without warranties of any kind.
2.1.1 SPECIFIC REQUIREMENTS.
(i) MP shall design the Affiliated MP Site to conform, in
all respects, with the provisions of Exhibit E attached
hereto, and
(ii) AOL reserves the right to review the Affiliated MP
Site to ensure that such site is compatible with AOL's
then-available client and host software and the AOL Network.
MP will take all necessary steps to conform its promotion
and sale of the MP Products through the Affiliated MP Site
to the then-existing technologies identified by AOL which
are optimized for the AOL Network. In consultation with MP,
AOL will be entitled to require reasonable changes to the
Content (including, without limitation, the features or
functionality) within the Affiliated MP Site to the extent
such Content will, in AOL's good faith judgment, adversely
affect any operational aspect of the AOL Network or the
online experience of any AOL User.
2.1.2 CUSTOMIZATION. MP shall customize the Affiliated MP Site
AOL Users as follows:
(i) create a customized home page "welcome mat" for the AOL
audience for each area on the Affiliated MP Site linked to
from the AOL Network on a continuous basis (each a "Welcome
Mat");
(ii) other than with respect to pre-packaged or pre-bundled
software, the packaging of which MP does not control, or
have the ability to control, ensure that AOL Users linking
to the Affiliated MP Site do not receive advertisements,
promotions or links for the products, services or content of
any other Interactive Service or any entity reasonably
construed to be in competition with AOL (such as, but not
limited to, MSN, Netscape, Yahoo); and
(iii) with the exception of advertising links sold and
implemented pursuant to this Agreement, provide continuous
navigational ability for AOL Users to
return to an agreed-upon point on the AOL Network (for which AOL
shall supply the proper address) from the Affiliated MP Site
(e.g., the point on the AOL Network from which the Affiliated MP
Site is linked), which, at AOL's option, may be satisfied through
the use of a hybrid browser format.
2.2 CONTENT. MP will provide a comprehensive offering of the categories of MP
Products and other Content described in Exhibit D attached hereto, through
the Affiliated MP Site. The Parties acknowledge that Exhibit D shall be
modified from time to time by MP, provided that AOL shall have the right to
review such modifications, and to the extent that such modifications are
inconsistent with the sale of Software Products as provided herein, or
otherwise inconsistent with the provisions of this Agreement, AOL shall
have the right in its reasonable discretion, to reject such modifications.
MP will review, delete, edit, create, update and otherwise manage all
Content available on or through the Affiliated MP Site in accordance with
the terms of this Agreement or any amendments hereto. Except as otherwise
mutually agreed upon by the Parties hereto, the Affiliated MP Site shall
not contain Content (including without limitation, third party content)
relating to anything other than the categories of MP Products listed on
Exhibit D attached hereto.
2.3 PRODUCTION WORK. Except as agreed to in writing by the Parties pursuant to
the "Production Work" section of the Standard Online Commerce Terms &
Conditions attached hereto as Exhibit F, MP will be responsible for all
production work associated with the Affiliated MP Site, including all
related costs and expenses.
2.4 HOSTING; COMMUNICATIONS. MP will be responsible for all communications,
hosting and connectivity costs and expenses associated with the Affiliated
MP Site. In addition, MP will provide all computer, telephone and other
equipment or resources necessary for MP to access the AOL Network. MP and
AOL shall mutually agree upon, and reasonably cooperate in implementing,
the most appropriate means by which MP will connect the MP data center to
AOL's designated data center; provided, however, that in the event the
Parties determine that MP shall utilize a dedicated high speed connection
from the MP data center to AOL's designated data center, then MP shall be
responsible for all costs associated with such high speed connection.
2.5 PRODUCT OFFERING. MP will ensure that the Affiliated MP Site generally
includes all of the MP Products or Content (including, without limitation,
any features, offers, contests, functionality or technology) that are then
made available by or on behalf of MP through any Additional MP Channel and
which are not inconsistent with MP's other contractual obligations;
provided, however, that (i) such inclusion will not be required where it is
commercially or technically impractical to either Party (i.e., inclusion
would cause either Party to incur substantial incremental costs), and (ii)
specific material changes in scope, nature and/or offerings required by
such inclusion will be subject to AOL's review and approval and the terms
of this Agreement.
2.6 [*]
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2.7 [*]
2.8 OPERATING STANDARDS. MP will ensure that the Affiliated MP Site and
the delivery of the MP Products comply at all times with the standards
set forth in Exhibit E. To the extent site standards are not
established in Exhibit E with respect to any aspect or portion of the
Affiliated MP Site (or the MP Products or other Content contained
therein), MP will provide such aspect or portion at a level of
accuracy, quality, completeness, and timeliness which meets or exceeds
prevailing standards in the computer software industry. If at any time
during the Term MP fails to satisfy any requirement [*] of Exhibit
E AOL shall have the right (in addition to any other remedies
available to AOL hereunder) to reduce or cease placement of the
Promotions until such time as MP corrects its non-compliance (the
"Non-Compliance Period"), and if as a direct result of such
non-compliance AOL is unable to provide the Impressions required
hereunder during the Non-Compliance Period, AOL shall have the right
to reduce the Impressions Commitment, on a pro-rata basis, during the
Non-Compliance Period (e.g., if the Non-Compliance Period extends for
a period of two months, then AOL shall reduce the Impressions
Commitment by an amount equal to the product of two (2) times the
Impressions Commitment divided by forty two(42)).
2.9 NETWORK RESTRICTION. The Parties hereby agree that AOL shall have the
right, in its sole discretion, to reduce or cease placement of the
Promotions, or restrict access from the AOL Network to the Affiliated
MP Site (or any combination of the foregoing) (the "Network
Restriction Right") in the event that, as a result of the sale of the
MP Products in the manner contemplated hereby, and through no fault of
MP, the functional integrity of the AOL Network is compromised or the
ability of the AOL Network to adequately serve AOL Users is adversely
affected. If at any time during the Term AOL shall exercise the
Network Restriction Right for an aggregate of one hundred and twenty
(120) hours in any thirty (30) day period, then MP shall have the
right to request that AOL and MP monitor the Promotions and sales of
the MP Products through the Affiliated MP Site for a period of time
not to exceed forty five (45) days. If within such forty five (45) day
period, AOL and MP reasonably determine that the exercise of the
Network Restriction Right had a Material Adverse Effect on the sale of
the MP Products, the Parties shall renegotiate, in good faith, the
applicable terms of this Agreement for fifteen (15) days. If the
Parties cannot renegotiate the terms of the Agreement within such time
period, MP shall have the right for a period of fifteen (15) days to
terminate the Agreement as provided in Section 6.3 hereof, and within
thirty (30) days after such termination, MP or AOL, as the case may
be, [*]
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2.10 ADVERTISING SALES. Subject to the terms hereof, MP shall have the
right to sell promotions, advertisements, links, pointers or
similar services or rights through the Affiliated MP Site
("Advertisements"). The specific advertising inventory within the
Affiliated MP Site shall be determined by MP. [*]
3. AOL EXCLUSIVITY OBLIGATIONS.
3.1 EXCLUSIVE PRODUCTS. Provided that MP is in compliance with all
material terms of this Agreement, during the Initial Term, MP
shall be the exclusive, third party, re-seller of Software
Products delivered to an end user of such Software Products via
an electronic, digital download format (the "Exclusive Software
Products"), promoted by AOL in the specific manner and on the
specific screens of the AOL Service and AOL.com as provided in
Exhibit A attached hereto. Additionally, MP shall be a
non-exclusive, third party, re-seller of Software Products
delivered to an end user of such Software Products in a
pre-packaged box or other physical container (the "Semi-Exclusive
Software Products") as promoted by AOL in the specific manner and
on the specific screens of the AOL Service and AOL.com provided
for in Exhibit A. With respect to Exhibit A, on screens
designated as "Comprehensive Exclusive," MP shall be the
exclusive, third party, reseller of the Exclusive and
Semi-Exclusive Software Products, and on screens designated as
"Semi-Exclusive", MP shall be the exclusive, third party,
reseller of the Exclusive Software Products and a non-exclusive,
third party, reseller of the Semi-Exclusive Software Products;
provided that no more than one (1) other retailer of the
Semi-Exclusive Products shall appear on such screens (the
"Excluded Retailer"). During the Initial Term, except for the
Excluded Retailer on the Semi-Exclusive screens, AOL shall not
(i) promote any third party Software Products on the screens of
the AOL Service or AOL.com on which MP has an exclusivity as
provided herein, or (ii) provide any promotions on such screens
which link to the first screen (which shall include any flash
screen or temporary screen/display presented to an AOL User upon
clicking on a Promotion) of any third party web site on which any
Software Product titles are promoted or sold, or on which
Software Products are predominantly promoted. With respect to any
third party, to the extent (i) the tradename or trademark of such
third party shall contain the words "download", "downloadable",
"download software" or "downloadable software", or (ii) the
marketing materials of such third party shall encourage the
purchase of the
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SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. Exclusive or Semi-Exclusive Software Products, AOL shall not promote or
advertise such name or marketing material of such third party on any
screens of the AOL Service or AOL.com on which MP has an exclusivity as
provided herein. Notwithstanding the foregoing, to the extent that AOL
shall have the right to promote the Excluded Retailer, the foregoing
restrictions shall not apply to the promotion of Semi-Exclusive Software
Products by the Excluded Retailer.
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3.3 AOL STORE RESTRICTIONS. Subject to the provisions of this Agreement,
during the Initial Term and any Re ...
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