Document:

ex10-2.htm

Exhibit 10.2

FIRST AMENDMENT TO

AMENDED AND RESTATED

PROMOTIONAL AGREEMENT BETWEEN

MARRIOTT REWARDS, INC. AND

SKYMALL VENTURES, INC.

EFFECTIVE JANUARY 1, 2007

 

This Amendment is entered into as of this 3 day of April 2008 by and between MARRIOTT REWARDS, LLC ("Marriott Rewards") and SKYMALL VENTURES, INC. ("SkyMall").

 

Recitals

 

1. Marriott Rewards and SkyMall entered into that certain Amended and Restated Promotional Agreement (the "Promotional Agreement") effective as of January 1, 2007; and

 

2. Marriott Rewards and SkyMall desire to amend the terms of the Promotional Agreement to provide for the establishment of the "Customize Your Rewards Program”, as defined below.

 

Agreement

 

Marriott Rewards and SkyMall hereby agree as follows:

 

1. Definitions. Unless otherwise defined herein, all capitalized terms in this Amendment will have the meaning given to them in the Promotional Agreement.

 

2. Amendments to Promotional Agreement. The Promotional Agreement is hereby amended as set forth below:

 

(a) Delete the second Recital, and insert the following two new recitals in lieu thereof:

 

"WHEREAS, SkyMall produces catalogs and a web site that allow customers to shop from "best-of-the-best" merchandise (together with the merchandise and tickets in the next premise clause called, "Merchandise") from a variety of vendors throughout the world that create a highly personalized "one-to-one" shopping experience; and

 

"WHEREAS, SkyMall has agreed to manage a new "Customize Your Rewards Program" offering Merchandise, including, without limitation, tickets for events, customized for Marriott Rewards Members' preferences and tastes, as more fully set forth in Schedule A, as amended."

 

(b) In Section 5.D., immediately after the phrase "merchandise program", insert the phrase "and Customize Your Rewards Program".

 

(c) Insert immediately after Section 6, a new Section 6A:

 

"6A. INSURANCE.

 

	
A.

	
SkyMall shall carry and maintain at its own cost and expense the following:

 

	
i.  

	
Workers' Compensation Insurance that complies with the applicable workers' compensation laws governing SkyMall and all employees, subcontractors, and agents working for SkyMall and employers liability insurance for not less than five hundred thousand ($500,000) per accident.

 

	
ii.  

	
Commercial General Liability Insurance with a combined single limit of not less than five million dollars ($5,000,000) each occurrence, including personal and bodily injury liability, broad form property damage liability, blanket contractual liability and worldwide jurisdiction coverages. Such insurance shall name Marriott International, Inc. and Marriott Rewards as additional insureds.

  

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iii.  

	
Automobile Liability Insurance including all owned, non-owned, and hired vehicles used in conjunction with the Services provided by SkyMall hereunder for bodily injury or property damage with combined single limit of not less than one million dollars ($1,000,000) each occurrence. Such insurance shall name Marriott International, Inc. and Marriott Rewards as additional insureds.

 

	
B.

	
All policies shall be specifically endorsed to provide that the coverages obtained by virtue of this Agreement will be primary and that any insurance carried by Marriott Rewards shall be excess and non­contributory and shall contain a waiver of recovery and subrogation in favor of said entities. All policies shall be specifically endorsed to provide that such coverage shall not be canceled or materially changed without at least thirty (30) days' prior written notice to Marriott Rewards, SkyMall shall deliver certificates of insurance (and, if requested by Marriott Rewards, original copies of the above policies) which evidence the required coverages, and any renewals thereof prior to the policy expiration to Marriott Rewards. No later than ten (10) days after the execution of the First Amendment to this Agreement, a certificate of insurance in form and substance acceptable to Marriott Rewards evidencing the required insurance and additional insured endorsement shall be delivered to Marriott Rewards."

(d)           Insert immediately after Section K of Exhibit A the following Section K-A:

 

"K-A. Additional Services commencing in 2008.

 

1. Commencing on March 31, 2008, SkyMall agrees to provide the following services to Marriott Rewards in connection with a customized benefit program for Elite level members of Marriott Rewards, whereby SkyMall will offer Marriott Rewards members Merchandise, including, without limitation tickets for various sports and entertainment events (the "Customize Your Rewards Program").

 

	
a.  

	
Manage all services related to the Customize Your Rewards Program.

 

	
b.  

	
Provide a dedicated toll-free number for the Customize Your Rewards Program that automatically routes callers to SkyMall's agents, who will each be trained to provide prompt, friendly and professional support for the Customize Your Rewards Program.

 

	
c.  

	
Provide a customized website with the ability for Marriott Reward members to electronically redeem Marriott Rewards points for the Customize Your Rewards Program Merchandise.

 

	
d.  

	
Provide market and other research and analysis to Marriott Rewards to assist in determining the best sources and the most probable and relevant types of Merchandise requested for the Customize Your Rewards Program.

 

	
e.  

	
Provide to Marriott Rewards members wishing to consider or redeem Marriott Rewards points under the Customize Your Rewards Program, the cost of the Merchandise, including sports and entertainment tickets offered in Marriott Rewards points calculated based on a conversion chart provided by Marriott Rewards.

 

	
f.  

	
Develop a marketing plan with Marriott Rewards to launch the Customize Your Rewards Program.

 

	
g.  

	
Provide "best in class" pricing for all Customize Your Rewards Program Merchandise, including tickets for sports and entertainment events, offered to or redeemed by Marriott Rewards members.

 

	
h.  

	
Provide monthly reporting of redemption history, pricing and operations of the Customize Your Rewards Program in detail and organized as reasonably required by Marriott Rewards.

  

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i.  

	
[**]

 

2. SkyMall agrees that the Customize Your Rewards Program, all terms and conditions, all merchandise promotion and know-how related to the Customize Your Rewards and all trademarks, tradenames and trade dress used in connection therewith are and will remain the property of Marriott Rewards and that SkyMall will do nothing in derogation of Marriott Rewards' property rights therein.

 

3. Commencing on March 31, 2008 Marriott Rewards agrees to pay SkyMall [**] for each [**] has conducted investigation or research to find for the Marriott Rewards Member a novel or unique Merchandise, not previously researched by SkyMall [**]."

 

3. Full Force and Effect. Except as expressly amended by this Amendment, the Promotional Agreement will remain in full force and effect, and, as amended by this Amendment, is hereby acknowledged, confirmed and ratified in all respects by the Parties.

 

4. Miscellaneous. Except as specifically provided in this Agreement, all other terms and conditions of the Promotional Agreement will by unaffected by this Amendment and will remain in full force and effect.

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year set forth above.

 

	
SKYMALL VENTURES, INC.

 

By:  /s/ Marie Foster

Name:  Marie Foster

Title:  General Manager

	
MARRIOTT REWARDS, LLC

 

By:  /s/ E.R. French

Name:  E.R. French

Title:  SVP, Marriott Rewards

  

[**]Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.ex10-3.htm

Exhibit 10.3

SECOND AMENDMENT TO

AMENDED AND RESTATED

PROMOTIONAL AGREEMENT BETWEEN

MARRIOTT REWARDS, INC. AND

SKYMALL VENTURES, INC.

EFFECTIVE JANUARY 1, 2007

 

This Amendment is entered into as of this ______ day of December, 2010 by and between MARRIOTT REWARDS, LLC ("Marriott Rewards") and SKYMALL VENTURES, INC. ("SkyMall").

 

Recitals

 

1. Marriott Rewards and SkyMall have entered into that certain Amended and Restated Promotional Agreement effective as of January 1, 2007 as amended by that certain First Amendment, dated as of April 3, 2008 (the Amended and Restated Promotional Agreement as amended by the First Amendment are called herein the "Promotional Agreement"), and

 

2. Marriott Rewards and SkyMall desire to amend the terms of the Promotional Agreement to provide for the establishment and delivery of SkyMall merchandise to Rewards Members as part of the Marriott Rewards Program in China and throughout the Western Hemisphere.

 

Agreement

 

Marriott Rewards and SkyMall hereby agree as follows:

 

1. Definitions. Unless otherwise defined herein, all capitalized terms in this Amendment will have the meaning given to them in the Promotional Agreement.

 

2. Amendments to Promotional Agreement. The Promotional Agreement is hereby amended as set forth below:

 

	
a.  

	
Section 6.A. SkyMall's Indemnification of Marriott Rewards will be amended

 

(i) by inserting the following immediately after the numerals "(ii)" in line 7;

 

" without limiting the generality of the immediately preceding clause (i), SkyMall's failure to properly calculate and make any required filings for import and other taxes and to properly pay such taxes to the proper authorities under Sections 10A hereof and to properly calculate other shipment and other costs due from the Rewards Members; or (iii)"

 

and

 

(ii) by deleting the numerals "(iii)" in line 8 and inserting "(iv)" in lieu thereof.

 

	
b.  

	
Immediately after Section 10, the following new Sections 10A and 10B will be inserted:

  

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10A. International Import, VAT, and Other Taxes. SkyMall agrees that it will calculate and pay any import or other applicable taxes for Purchased Merchandise delivered outside the United States in the Western Hemisphere or in China and will make any necessary filings with respect to such taxes with the proper authorities. SkyMall will include such import tax or other taxes in its invoices delivered under Exhibit A, Paragraph C (minus any penalties, fines or interest caused by SkyMall's miscalculations, failure to file or late filings or any underpayment or late payment of such import and other taxes).

 

SkyMall will handle all Purchased Merchandise exported or imported among any country DDP (delivered duty paid) as such Incoterm is commonly used. Without limiting the foregoing, SkyMall will be solely responsible at its own cost and expense to obtain all export/import licenses in its own name and to pay any VAT or other duties under its own name or to otherwise properly arrange through its supplier network for the appropriate payment of VAT or other duties; provided, however, that any such supplier network arrangements shall not relieve SkyMall of its responsibility to Marriott Rewards for ensuring proper licensing and payment of VAT and other duties.

 

Should any jurisdiction assert any liability for any unpaid or underpaid import or other tax or interest or penalty thereon, against either party, or any Rewards Member, the party first learning of such assertion shall promptly notify the other party. SkyMall will at its own cost and expense, handle the defense of such claim and/or pay such import or other tax, interest or penalty.

 

10B. Compliance with Credit Card Company Regulations. SkyMall shall comply with the Payment Card Industry Data Security Standard and any other credit card company specific security requirements (collectively, "Credit Card Company Regulations") in performing services pursuant to this Agreement ("Services"). SkyMall will use credit card information obtained in connection with this Agreement only to deliver the Services and shall use commercially reasonable efforts to remain informed of any changes to the Credit Card Company Regulations that the credit card companies may implement during the term of the Agreement.

 

	
  

	
a. Paragraph C of Exhibit A will be deleted in its entirety and the following be inserted in lieu thereof:

 

"C. Pricing and Invoicing. Marriott Rewards agrees to purchase from SkyMall all Merchandise selected by Rewards Members for redemption (such selected Merchandise called "Purchased Merchandise") to be delivered within the continental United States, and Marriott Rewards will pay the [**] presented by SkyMall and accepted by Marriott Rewards, which cost will include the actual [**],[**] and [**] incurred in establishing and producing the Rewards Program (such as customer [**],[**] and [**]) as reflected in the Agreement and SkyMall shall invoice.

 

Marriott Rewards agrees to purchase from SkyMall all Purchased Merchandise to be delivered in Hawaii or Alaska, and Marriott Rewards will pay the [**] presented by SkyMall and accepted by Marriott Rewards, which cost shall be adjusted to exclude the [**] and [**] that would otherwise be included for shipment of the Purchased Merchandise within the continental United States. Where the Rewards Member elects to pay [**], SkyMall will separately invoice, and Marriott will separately pay the [**] the Purchased Merchandise to the destination in Hawaii or Alaska. Where the Rewards Member elects to pay [**], SkyMall shall charge the Rewards Member for the [**] the Purchased Merchandise and shall not separately invoice Marriott Rewards for such [**].

 

For all Purchased Merchandise delivered within the United States (including Alaska and Hawaii), Marriott Rewards shall pay sales, use or other transaction taxes consistent with the provisions of Section 10.

  

[**]Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

 

  

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For all Merchandise selected by Rewards Members for redemption ("Purchased Merchandise") to be delivered within China, Marriott Rewards will pay the [**] of the Purchased Merchandise presented by SkyMall and accepted by Marriott Rewards, which cost will include [**] to China and costs incurred—in establishing and producing the Rewards Program (such as [**],[**] and [**] ) as reflected in the Agreement, and for Purchased Merchandise delivered in China, the standard Import and Other Taxes set forth in Section 10A (minus any fees, penalties or interest for late payment).

 

For all Purchased Merchandise to be delivered outside the United States in the Western Hemisphere, Marriott Rewards agrees to pay the [**] presented by SkyMall and accepted by Marriott Rewards, which cost shall be adjusted to exclude the [**] and other [**] that would otherwise be included for [**] within the continental United States), but such cost will be increased to reflect any import or other taxes set forth in Section 10A (minus any fees, penalties or interest for late payment). SkyMall will handle actual payment of any such import and Other Taxes payable as provided in Section 10A.Where the Rewards Member elects to pay the [**], SkyMall will separately invoice, and Marriott will separately pay the [**] to the [**]. Where the Rewards Member elects to pay the [**], SkyMall shall charge the Rewards Member for the [**] and shall not separately invoice Marriott Rewards for such shipping cost.

 

SkyMall will invoice Marriott Rewards on a weekly basis after the Purchased Merchandise is shipped to the Rewards Member. Marriott Rewards will remit payment to SkyMall on a [**]. Invoicing shall be directed to:

 

Accounting Department

Marriott Guest Services

310 Bearcat Drive

Salt Lake City, UT 84115

 

All invoices will clearly set forth:

 

	
·

	
the Purchased Merchandise shipped,

 

	
·

	
the Marriott Rewards certificate number,

 

	
·

	
the [**] of the Purchased Merchandise,

 

	
·

	
the cost of [**] including any taxes paid by SkyMall,

 

	
·

	
For Purchased Merchandise shipping within the continental United States, China and Europe, include the generic Award Codes assigned to such Purchased Merchandise (which includes the [**] and [**]) and

 

	
·

	
For Purchased Merchandise shipping to locations outside the continental United States, China and Europe, within the Western Hemisphere (and in future updates to other redemption websites), include generic Award Codes assigned to such Purchased Merchandise, the [**] of such Purchased Merchandise, generic Award Codes assigned for shipping and the [**].

 

In all cases, invoices must be accompanied by shipping confirmations."

 

3. Full Force and Effect. Except as expressly amended by this Amendment, the Promotional Agreement will remain in full force and effect, and, as amended by this Amendment, is hereby acknowledged, confirmed and ratified in all respects by the Parties.

 

4. Miscellaneous. Except as specifically provided in this Agreement, all other terms Jand conditions of the Promotional Agreement will by unaffected by this Amendment and will remain in full force and effect.

  

[**]Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

  

-3-

  

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year set forth above.

 

	
SKYMALL VENTURES, INC.

 

By:  /s/ Marie Foster

Name:  Marie Foster

Title:  General Manager

	
MARRIOTT REWARDS, LLC

 

By:  /s/ E.R. French

Name:  E.R. French

Title:  SVP, Marriott Rewards

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