Aol Advertising Insertion Order

Exhibit 10.16


EXECUTION VERSION


THE REGISTRANT HAS OMITTED FROM THIS EXHIBIT 10.16 PORTIONS OF THE AGREEMENT FOR WHICH THE REGISTRANT HAS REQUESTED CONFIDENTIAL TREATMENT FROM THE SECURITIES AND EXCHANGE COMMISSION. THE PORTIONS OF THE AGREEMENT FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION. SUCH OMITTED PORTIONS HAVE BEEN MARKED WITH THREE PLUS SIGNS ("+++").


AOL ADVERTISING INSERTION ORDER


CONTRACT #: AOL SALESPERSON:___________ Credit approval received ____ SALES COORDINATOR: DATE: 05/4/99


=================================================================================================================================
ADVERTISER ADVERTISING AGENCY ---------------------------------------------------------------------------------------------------------------------------------
Contact Person PAUL MLADINEO ---------------------------------------------------------------------------------------------------------------------------------
Company Name iTurf Inc. ---------------------------------------------------------------------------------------------------------------------------------
Address - Line 1 435 Hudson Street, 3rd Floor ---------------------------------------------------------------------------------------------------------------------------------
Address - Line 2 New York, NY 10014-3941 ---------------------------------------------------------------------------------------------------------------------------------
Phone # 212-547-7977 ---------------------------------------------------------------------------------------------------------------------------------
Fax # 212-807-9069 ---------------------------------------------------------------------------------------------------------------------------------
Email MLAD@ITURF.COM ---------------------------------------------------------------------------------------------------------------------------------
SIC Code 5961 ---------------------------------------------------------------------------------------------------------------------------------
Advertiser IAB Category -----------------------------------------------------------------------------------------
Description of Advertiser's Teen Interests Site
Product/Service =================================================================================================================================


=================================================================================================================================
BILLING INFORMATION ---------------------------------------------------------------------------------------------------------------------------------
Send Invoices to (choose one): ADVERTISER AGENCY --------------------------------------------------------------------------------------------------------------------------------- Advertiser or Agency Billing Contact ALL SAME AS ABOVE
Person ---------------------------------------------------------------------------------------------------------------------------------
Company Name ---------------------------------------------------------------------------------------------------------------------------------
Billing Address - Line 1 ---------------------------------------------------------------------------------------------------------------------------------
Billing Address - Line 2 ---------------------------------------------------------------------------------------------------------------------------------
Billing Phone # ---------------------------------------------------------------------------------------------------------------------------------
Billing Fax # ---------------------------------------------------------------------------------------------------------------------------------
Billing Email Address ---------------------------------------------------------------------------------------------------------------------------------
P.O. #, if applicable


EXECUTION VERSION


This Agreement, dated as of May 4, 1999 (the "Effective Date"), is made and entered into by and between America Online, Inc. ("AOL"), a Delaware corporation, with its principal offices at 22000 AOL Way, Dulles, Virginia 20166 and iTurf Inc. ("Advertiser"), a Delaware corporation with its principal offices at 435 Hudson Street, 3rd Floor, New York, NY 10014-3941 (each a "Party" and collectively the "Parties").


BILLING SCHEDULE/GUARANTEED PAYMENT. Advertiser will pay AOL a non-refundable guaranteed payment of eight million eighty-six thousand seven hundred and ninety six dollars (US $8,086,796) as follows:


A. Upon execution of this Agreement, Advertiser shall pay AOL two
million dollars (US $2,000,000);
B. On August 3, 1999, Advertiser shall pay AOL one million dollars (US
$1,000,000);
C. On November 3, 1999, Advertiser shall pay AOL one million dollars
(US $1,000,000);
D. On February 3, 2000 Advertiser shall pay AOL one million dollars (US
$1,000,000);
E. On May 3, 2000, Advertiser shall pay AOL one million dollars (US
$1,000,000);
F. On August 3, 2000, Advertiser shall pay AOL one million dollars (US
$1,000,000);
G. On November 3, 2000, Advertiser shall pay AOL one million eighty six
thousand seven hundred ninety six dollars (US $1,086,796).


LATE PAYMENTS; WIRED PAYMENTS. All amounts owed hereunder 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 323070752 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 terminate this Insertion Order Agreement with written notice to Advertiser if nonpayment is not cured after five (5) business days.


================================================================================


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AOL NETWORK ---------------------------------------------------------------------------------------------------------------------------------
INVENTORY ---------------------------------------------------------------------------------------------------------------------------------
DISPLAY DISPLAY # OF AD
AOL INVENTORY/DEMOGRAPHIC* PURCHASED START STOP AD TYPE SLOTS TOTAL GROSS PRICE TOTAL
DATE DATE PURCHASED IMPRESSIONS --------------------------------------------------------------------------------------------------------------------------------- SEE EXHIBIT A ATTACHED ---------------------------------------------------------------------------------------------------------------------------------
* Attach completed AOL Demographic TOTALS:
Profile Worksheet ---------------------------------------------------------------------------------------------------------------------------------
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:


EXECUTION VERSION


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 468x60 IAB Standard/10k Max


* STATIC BANNERS ONLY, NO ANIMATION *


Linking URL: The HTTP/URL address to be connected to the Advertisement shall be: http://www.iTurf.com,
www.delias.com www. Droog.com, www.dotdotdash.com, www.storybookheirlooms.com, www.tsisoccer.com,
www.contentsonline.com, www.gurl.com (each, an "Affiliated Advertiser Site" and collectively, together with the Licensed
Content (as defined in Section 12 of Exhibit C hereto, the "Affiliated Advertiser Sites")
PLEASE SEND ARTWORK AND URL TO:


CENTRALAds@aol.com


PLEASE COPY ALL ARTWORK TO: AmiVE@aol.com


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 Advertisement. =================================================================================================================================


=================================================================================================================================
ADVERTISING PURCHASE SUMMARY ---------------------------------------------------------------------------------------------------------------------------------
TOTAL PRICE TOTAL IMPRESSIONS CPM ---------------------------------------------------------------------------------------------------------------------------------
AOL Networks $8,086,796.00 +++ ---------------------------------------------------------------------------------------------------------------------------------


---------------------------------------------------------------------------------------------------------------------------------
Total Purchase Price $8,086,796.00 +++ ---------------------------------------------------------------------------------------------------------------------------------
=================================================================================================================================


============================================================================================
$8,086,796.00 +++
--------------------------------------------------------------------------------------------
NET PURCHASE PRICE TOTAL GUARANTEED IMPRESSIONS
============================================================================================


ADVERTISER PRODUCTS. The categories of Products to be offered or promoted by Advertiser in the Advertisements are solely as follows: apparel (e.g., shoes, shirts, shorts, etc.), accessories (e.g., bracelets, bags, belts, etc.), home furnishings (e.g., bedsets, shelves, etc.), soccer-related sporting goods (e.g., cleats, training shoes, shinguards, shorts, etc.), and interactive content for teen girls (e.g., "shoutout" boards, editorials, polls, news, etc.) (collectively, the "Advertiser Products"); PROVIDED, HOWEVER in no event will Advertiser promote, or be entitled to promote, any fragrance, cosmetic or school uniform item through any AOL-controlled screens. Notwithstanding anything to the contrary contained herein, Advertiser may offer cosmetics products on the Affiliated Advertiser Sites, PROVIDED that (i) such products are not promoted in the content of any advertisement or promotion situated on the AOL Network which links to the Advertiser Affiliated Sites, and (ii) the promotions or advertisements for, or offers of, such cosmetics products on any Affiliated Advertiser Site (other than in any "pull down" menus contained thereon) shall be at least two (2) clicks away from the main screen of any such Affiliated Advertiser Site.


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 of Non-Permanent Advertisements at such earlier time; PROVIDED, HOWEVER, that AOL shall not discontinue any Permanent Advertisements prior to the Display Stop Date set forth herein for such Permanent Advertisements. 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, as Advertiser's sole remedy, either (i) provide Advertiser with "makegood" impressions through comparable advertisement placements which have a total value, based on AOL's then-current advertising rate card, equal to the value of such Shortfall or (ii) extend the Advertiser's promotion in integrated areas until such time as the impressions Shortfall has been delivered; PROVIDED, HOWEVER, that in the event that AOL fails to deliver the entire Impressions Shortfall to Advertiser within six (6) months following the expiration of the NPA Initial Term or the PA Initial Term (as the case may be, and each as defined below), Advertiser shall have the right to receive a refund equal to the portion of the Shortfall undelivered as of such date. 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, upon consultation with Advertiser, to alter Advertiser flight dates to accommodate trafficking needs or other operational needs. In such cases, AOL will make available to Advertiser reasonably equivalent flights. For the avoidance of doubt, any contextual or editorial link to the Licensed Content (as defined below) that is not Advertiser branded (i.e., that do not contain an Advertiser Mark (as defined in Section 12 of Exhibit C)) shall not constitute an impression for purposes of this Agreement; PROVIDED, HOWEVER, that on any page


EXECUTION VERSION


containing (i) a Permanent Advertisement or Non-Permanent Advertisement and (ii) an Advertiser-branded contextual or editorial link, AOL shall be credited with no more than one (1) impression per user exposure to any such page.


TERM. Unless earlier terminated as set forth herein, the initial term of this Agreement with respect to Non-Permanent Advertisements (the "NPA Initial Term") shall begin on the earlier of (i) the first Display Date or (ii) July 1, 1999, and shall end on the earlier of (x) the date on which AOL has completely satisfied its Impressions commitment with respect to such Non-Permanent Advertisements (as set forth on Exhibit A hereto) or (y) the twenty-four (24) month anniversary of the first Display Date. The initial term of this Agreement with respect to the Permanent Advertisements except for Home Furnishings (the "PA1 Initial Term") shall begin July 1, 1999 (or the date of the "launch" of the AOL Shopping Apparel Kids, Teens, and Athletics channels) and shall end on March 31, 2001. The initial term of this Agreement with respect to the Permanent Advertisements for Home Furnishings (the "PA2 Initial Term") shall begin September 1, 1999 (or the date of the "launch" of the AOL Shopping Home Furnishings Channel) and shall end on May 31, 2001. Notwithstanding the foregoing, in the event that due to a technical problem of AOL, AOL is unable to launch any of the Permanent Advertisements (an "AOL Launch Technical Problem") as of the relevant date established therefor in this Section, the PA1 Initial Term or the PA2 Initial Term (as the case may be) shall be extended by one day for each day of delay in launch (beyond any such target date(s)) due to an AOL Launch Technical Problem.


REVENUE SHARING ARRANGEMENT. Advertiser shall pay AOL +++ percent (+++%) of all Transaction Revenues generated during the Term after Advertiser has earned +++ Dollars (US$+++) in Transaction Revenues during the Term (including, without limitation, during any Renewal Term).


RENEWAL TERM. Upon conclusion of the Initial Term, AOL will have the right to renew the Agreement for successive one year renewal terms (each a "Renewal Term" and together with the Initial Term, the "Term"). During any such Renewal Term: (i) Advertiser will not be required to pay any guaranteed, fixed payment or perform the cross-promotional obligations specified in this Agreement; (ii) Advertiser will pay to AOL fifteen percent (15%) of Transaction Revenues generated during the Renewal Term; and (iii) AOL will not be required to undertake any specific fixed promotional/placement obligations or Impressions commitments, PROVIDED that AOL will maintain at least one link to the Affiliated Advertiser Sites at all times during the Renewal Term. A Renewal Term shall automatically commence following the expiration of the Initial Term (or prior Renewal Term, as the case may be), provided that AOL shall be entitled to terminate any such Renewal Term with thirty (30) days prior written notice to Advertiser.


STANDARD TERMS AND CONDITIONS. This Insertion Order incorporates by reference AOL's standard advertising terms and conditions as they exist on the Effective Date (the "Standard Terms"), including terms related to advertising material, payment modifications, cancellation rights, usage data, limitations of liability, disclaimers, indemnification, use of AOL member information and miscellaneous legal terms. Among other things, the Standard Terms provide AOL the right to cancel this Insertion Order Agreement 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 Terms3" on the U.S.-based America Online brand service and at "HTTP://MEDIASPACE.AOL.COM/ADTERMS3.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.


ADDITIONAL PROVISIONS. This Insertion Order Agreement incorporates by reference the provisions of Exhibits A, B, C and D attached hereto, which contains additional terms and conditions related to the display of the Advertisements. Terms not defined herein are defined on Exhibit B attached hereto.


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 the Standard Terms incorporated by reference) shall be binding on both parties when signed on behalf or each party and delivered to the other party (which delivery may be accomplished by facsimile transmission of the signature pages hereto).


AMERICA ONLINE, INC. ITURF INC.


By: /s/ David Colburn By: /s/ Dennis Goldstein (signature) (signature)


David Colburn Print Name: Dennis Goldstein


EXECUTION VERSION


Senior Vice President, Business Affairs Title: Chief Financial Officer
(Print or Type)


Date: Date:


EXECUTION VERSION


EXHIBIT A


ITURF
----------------------------------- ------------------------------
FIRST YEAR SECOND YEAR


ECOMMERCE: SHOPPING
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AOL, AOL.COM, CompuServe
(7/1/99 - (4/1/00 -
3/31/00)* 3/31/01)*
---------------------------------------------------------------------------
BOYS TEENS APPAREL DROOG Cost +++ +++ +++ ---------------------------------------------------------------------------------------------------------------------------------
ANCHOR Impressions +++ +++ +++ ---------------------------------------------------------------------------------------------------------------------------------
GIRLS TEENS APPAREL DELIA*S Cost +++ +++ +++ ---------------------------------------------------------------------------------------------------------------------------------
ANCHOR Impressions +++ +++ +++ ---------------------------------------------------------------------------------------------------------------------------------
KIDS/ INFANTS APPAREL DOTDOTDASH Cost +++ +++ +++ ---------------------------------------------------------------------------------------------------------------------------------
GOLD TENANT Impressions +++ +++ +++ ---------------------------------------------------------------------------------------------------------------------------------
KIDS/ INFANTS APPAREL STORYBOOK Cost +++ +++ +++ ---------------------------------------------------------------------------------------------------------------------------------
GOLD TENANT Impressions +++ +++ +++ ---------------------------------------------------------------------------------------------------------------------------------
ATHLETIC SHOES AND APPAREL TSI SOCCER Cost +++ +++ +++ ---------------------------------------------------------------------------------------------------------------------------------
ANCHOR Impressions +++ +++ +++ ---------------------------------------------------------------------------------------------------------------------------------


---------------------------------------------
(9/1/99 - (6/1/00 -
5/31/00)* 5/31/01)*
---------------------------------------------
HOME FURNISHINGS CONTENTS.COM Cost +++ +++ +++
---------------------------------------------
GOLD TENANT*** Impressions +++ +++ +++
---------------------------------------------


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(7/1/99 - (7/1/00 -
6/30/00)* 6/30/01)* ---------------------------------------------------------------------------------------------------------------------------------
ANCHOR TENANT AOGIRL Cost +++ +++ +++
GURL ---------------------------------------------------------------------------------------------------------------------------------
Impressions +++ +++ +++ ---------------------------------------------------------------------------------------------------------------------------------


------------------------------------ ---------------------------------------------------------------------------
ICQ** Cost +++ +++ +++ ---------------------------------------------------------------------------------------------------------------------------------
Impressions +++ +++ +++ ---------------------------------------------------------------------------------------------------------------------------------


TIER 1 INVENTORY
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AOL KID'S ONLY CHANNEL
--------------
Celebrity Birthday Specials Cost +++ +++ +++ ---------------------------------------------------------------------------------------------------------------------------------
Impressions +++ +++ +++ ---------------------------------------------------------------------------------------------------------------------------------


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Other Non-Kids Only Tier 1 Cost +++ +++ ...