Exhibit 10.40

 

AMENDMENT NUMBER SEVEN

TO THE LICENSE & UPDATE AGREEMENT

BETWEEN LOOKSMART, LTD. AND MICROSOFT CORPORATION

 

This Amendment Number Seven (“Amendment Seven”) to the License & Update
Agreement (as amended to date, the “Agreement”) is made and entered into
effective as of February 1, 2004 (“Amendment Effective Date”) by and between
Microsoft Corporation, a Washington corporation (“Microsoft”) and LookSmart,
Ltd., a Delaware corporation (“LookSmart”).

 

Recitals

 

WHEREAS, the Agreement expired on its own terms on January 15, 2004;

 

WHEREAS, the parties wish to amend the Agreement solely to extend certain
portions of the Agreement to provide for LookSmart’s provision of paid listings
for the [***] markets, and any other markets as mutually agreed by the parties
in writing, (collectively, the “Markets”) on the terms set forth herein;

 

NOW, THEREFORE, in consideration of the mutual covenants contained herein, and
for such other good and valuable consideration, the sufficiency of which is
hereby acknowledged by the parties, the parties hereby amend the Agreement as
follows:

 

Amendment

The Agreement shall be amended to provide:

 

1. With regard to LookSmart’s Paid Listings for the Markets, except as otherwise
set forth herein, the Agreement shall continue in full force and effect starting
on the Amendment Effective Date. Either party has the right to terminate the
agreement at any time for convenience by providing at least (30) calendar days’
prior written notice to the other party.

 

2. For the avoidance of doubt, this Amendment Seven shall not revive (1) any of
the URL delivery requirements pursuant to the licensing portion of the
Agreement, (2) any database or update delivery obligations for any geographic
regions, and (3) any Submit a Site link obligations by Microsoft. LookSmart has
no obligation to generate paid listings and shall only make available, on a
daily basis, such paid listings for the Markets as it has available at the time.
Microsoft has no obligation to use any of the paid listings provided by
LookSmart and has no obligations regarding placement of such listings on MSN
search results pages. However if Microsoft, in its sole discretion, does display
LookSmart’s paid listings, Microsoft shall use reasonable efforts to update its
use and display of LookSmart’s paid listings, including the titles,
descriptions, URLs, and tracking codes, no less frequently than once every seven
calendar days to ensure that LookSmart can accurately track and bill its
advertisers for clicks.

 

3. LookSmart shall pay Microsoft [***] during each [***], less an [***] (as such
terms are defined in Amendment Number Four). All reporting, payment, audit, and
publicity shall otherwise be on the terms set forth in Amendment Number Four.

 

4. All capitalized terms not defined herein shall have the meanings ascribed to
them in the Agreement. All provisions of the Agreement not specifically modified
herein shall remain in full force and effect. Any conflict between the prior
portions of the Agreement and Amendment Seven shall be resolved in favor of
Amendment Seven. Amendment Seven may be executed in

 

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counterparts, each of which may be an original or faxed copy, and both of which
together shall form one instrument.

 

IN WITNESS WHEREOF, the parties have executed this Amendment Seven as of the
date set forth above.

 

MICROSOFT CORPORATION

      LOOKSMART, LTD. By:  

/s/ Yosha Ulrich-Sturmat

      By:  

/s/ Anthony Mamone

   

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Title:  

General Manager, MSN Bus. Dev.

      Title:  

SVP, Sales

   

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Date:  

3/2/04

      Date:  

2/27/04

   

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