Document:

exv10w1

 

Exhibit 10.1

LIVEWORLD, INC.

INDEMNIFICATION AGREEMENT

     THIS AGREEMENT is entered into, effective as of
                    , 2007 by and between LiveWorld,
Inc., a Delaware corporation (the “Company”), and                      (“Indemnitee”).

     WHEREAS, it is essential to the Company to retain and attract as directors and officers the
most capable persons available;

     WHEREAS, Indemnitee is a director and/or officer of the Company;

     WHEREAS, both the Company and Indemnitee recognize the increased risk of litigation and other
claims currently being asserted against directors and officers of corporations;

     WHEREAS, the Certificate of Incorporation and Bylaws of the Company require the Company to
indemnify and advance expenses to its directors and officers to the fullest extent permitted under
Delaware law, and the Indemnitee has been serving and continues to serve as a director and/or
officer of the Company in part in reliance on the Company’s Certificate of Incorporation and
Bylaws; and

     WHEREAS, in recognition of Indemnitee’s need for (i) substantial protection against personal
liability based on Indemnitee’s reliance on the aforesaid Certificate of Incorporation and Bylaws,
(ii) specific contractual assurance that the protection promised by the Certificate of
Incorporation and Bylaws will be available to Indemnitee (regardless of, among other things, any
amendment to or revocation of the Certificate of Incorporation and Bylaws or any change in the
composition of the Company’s Board of Directors or acquisition transaction relating to the Company)
and (iii) an inducement to provide effective services to the Company as a director and/or officer,
the Company wishes to provide in this Agreement for the indemnification of and the advancing of
expenses to Indemnitee to the fullest extent (whether partial or complete) permitted under Delaware
law and as set forth in this Agreement, and, to the extent insurance is maintained, to provide for
the continued coverage of Indemnitee under the Company’s directors’ and officers’ liability
insurance policies.

     NOW, THEREFORE, in consideration of the above premises and of Indemnitee continuing to serve
the Company directly or, at its request, with another enterprise, and intending to be legally bound
hereby, the parties agree as follows:

          1. Certain Definitions:

               (a) “Board” shall mean the Board of Directors of the Company.

               (b) “Affiliate” shall mean any corporation or other person or entity that
directly, or
indirectly through one or more intermediaries, controls or is controlled by or is under common
control with, the person specified, including, without limitation, with respect to the Company, any
direct or indirect subsidiary of the Company.

 

               (c) A “Change in Control” shall be deemed to have occurred if (i) any
“person” (as
such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”)) (other than a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or a corporation owned directly or indirectly by the
stockholders of the Company in substantially the same proportions as their ownership of stock of
the Company, and other than any person holding shares of the Company on the date that the Company
first registers under the Act or any transferee of such individual if such transferee is a spouse
or lineal descendant of the transferee or a trust for the benefit of the individual, his or her
spouse or lineal descendants), is or becomes the “beneficial owner” (as defined in Rule 13d-3 under
the Exchange Act), directly or indirectly, of securities of the Company representing 30% or more of
the total voting power represented by the Company’s then outstanding Voting Securities, (ii) during
any period of two consecutive years, individuals who at the beginning of such period constitute the
Board and any new director whose election by the Board or nomination for election by the Company’s
stockholders was approved by a vote of at least two-thirds (2/3) of the directors then still in
office who either were directors at the beginning of the period or whose election or nomination for
election was previously so approved, cease for any reason to constitute a majority of the Board,
(iii) the stockholders of the Company approve a merger or consolidation of the Company with any
other entity, other than a merger or consolidation that would result in the Voting Securities of
the Company outstanding immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into Voting Securities of the surviving entity) at least 80% of
the total voting power represented by the Voting Securities of the Company or such surviving entity
outstanding immediately after such merger or consolidation or (iv) the stockholders of the Company
approve a plan of complete liquidation of the Company or an agreement for the sale or disposition
by the Company (in one transaction or a series of transactions) of all or substantially all of the
Company’s assets.

               (d) “Expenses” shall mean any expense, liability or loss, including
attorneys’ fees,
judgments, fines, ERISA excise taxes and penalties, amounts paid or to be paid in settlement, any
interest, assessments or other charges imposed thereon, any federal, state, local or foreign taxes
imposed as a result of the actual or deemed receipt of any payments under this Agreement and all
other costs and obligations, paid or incurred in connection with investigating, defending, being a
witness in, participating in (including on appeal) or preparing for any of the foregoing in, any
Proceeding relating to any Indemnifiable Event.

               (e) “Indemnifiable Event” shall mean any event or occurrence that takes place
either
prior to or after the execution of this Agreement, related to the fact that Indemnitee is or was a
director or officer of the Company or an Affiliate of the Company, or while a director or officer
is or was serving at the request of the Company or an Affiliate of the Company as a director,
officer, employee, trustee, agent or fiduciary of another foreign or domestic corporation,
partnership, joint venture, employee benefit plan, trust or other enterprise or was a director,
officer, employee or agent of a foreign or domestic corporation that was a predecessor corporation
of the Company or of another enterprise at the request of such predecessor corporation, or related
to anything done or not done by Indemnitee in any such capacity, whether or not the basis of the
Proceeding is alleged action in an official capacity as a director, officer, employee or agent or
in any other capacity while serving as a director, officer, employee or agent of the Company or an
Affiliate of the Company, as described above.

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               (f) “Independent Counsel” shall mean the person or body appointed in
connection with
Section 3.

               (g) “Proceeding” shall mean any threatened, pending or completed action, suit
or
proceeding or any alternative dispute resolution mechanism (including an action by or in the right
of the Company or an Affiliate of the Company) or any inquiry, hearing or investigation, whether
conducted by the Company or an Affiliate of the Company or any other party, that Indemnitee in good
faith believes might lead to the institution of any such action, suit or proceeding, whether civil,
criminal, administrative, investigative or other.

               (h) “Reviewing Party” shall mean the person or body appointed in accordance
with
Section 3.

               (i) “Voting Securities” shall mean any securities of the Company that vote
generally
in the election of directors.

          2. Agreement to Indemnify.

               (a) General Agreement. In the event Indemnitee was, is or becomes a party to or
witness or other participant in, or is threatened to be made a party to or witness or other
participant in, a Proceeding by reason of (or arising in part out of) an Indemnifiable Event, the
Company shall indemnify Indemnitee from and against any and all Expenses to the fullest extent
permitted by law, as the same exists or may hereafter be amended or interpreted (but in the case of
any such amendment or interpretation, only to the extent that such amendment or interpretation
permits the Company to provide broader indemnification rights than were permitted prior thereto).
The parties hereto intend that this Agreement shall provide for indemnification in excess of that
expressly permitted by statute, including, without limitation, any indemnification provided by the
Company’s Certificate of Incorporation, its Bylaws, vote of its stockholders or disinterested
directors or applicable law.

               (b) Initiation of Proceeding. Notwithstanding anything in this Agreement to the
contrary, Indemnitee shall not be entitled to indemnification pursuant to this Agreement in
connection with any Proceeding initiated by Indemnitee against the Company or any director or
officer of the Company unless (i) the Company has joined in or the Board has consented to the
initiation of such Proceeding, (ii) the Proceeding is one to enforce indemnification rights under
Section 5 or (iii) the Proceeding is instituted after a Change in Control (other than a Change in
Control approved by a majority of the directors on the Board who were directors immediately prior
to such Change in Control) and Independent Counsel has approved its initiation.

               (c) Expense Advances. If so requested by Indemnitee, the Company shall advance
(within thirty (30) days of such request) any and all Expenses to Indemnitee (an “Expense
Advance”). The Indemnitee shall qualify for such Expense Advances upon the execution and delivery
to the Company of this Agreement which shall constitute an undertaking providing that the
Indemnitee undertakes to repay such Expense Advances if and to the extent that it is ultimately
determined by a court of competent jurisdiction in a final judgment, not subject to appeal, that
Indemnitee is not entitled to be indemnified by the Company. Indemnitee’s obligation to reimburse

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the Company for Expense Advances shall be unsecured and no interest shall be charged thereon.
This Section 2(c) shall not apply to any claim made by Indemnitee for which indemnity is excluded
pursuant to Section 2(b) or 2(f).

               (d) Mandatory Indemnification. Notwithstanding any other provision of this Agreement,
to the extent that Indemnitee has been successful on the merits or otherwise in defense of any
Proceeding relating in whole or in part to an Indemnifiable Event or in defense of any issue or
matter therein, Indemnitee shall be indemnified against all Expenses incurred in connection
therewith.

               (e) Partial Indemnification. If Indemnitee is entitled under any provision of this
Agreement to indemnification by the Company for some or a portion of Expenses, but not, however,
for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion
thereof to which Indemnitee is entitled.

               (f) Prohibited Indemnification. No indemnification pursuant to this Agreement shall
be paid by the Company on account of any Proceeding in which a final judgment is rendered against
Indemnitee or Indemnitee enters into a settlement, in each case (i) for an accounting of profits
made from the purchase or sale by Indemnitee of securities of the Company pursuant to the
provisions of Section 16(b) of the Exchange Act or similar provisions of any federal, state or
local laws; (ii) for which payment has actually been made to or on behalf of Indemnitee under any
insurance policy or other indemnity provision, except with respect to any excess beyond the amount
paid under any insurance policy or other indemnity provision; or (iii) for which payment is
prohibited by law. Notwithstanding anything to the contrary stated or implied in this Section
2(f), indemnification pursuant to this Agreement relating to any Proceeding against Indemnitee for
an accounting of profits made from the purchase or sale by Indemnitee of securities of the Company
pursuant to the provisions of Section 16(b) of the Exchange Act or similar provisions of any
federal, state or local laws shall not be prohibited if Indemnitee ultimately establishes in any
Proceeding that no recovery of such profits from Indemnitee is permitted under Section 16(b) of the
Exchange Act or similar provisions of any federal, state or local laws.

          3. Reviewing Party. Prior to any Change in Control, the Reviewing Party shall be any
appropriate person or body consisting of a member or members of the Board or any other person or
body appointed by the Board who is not a party to the particular Proceeding with respect to which
Indemnitee is seeking indemnification; provided that if all members of the Board are parties to the
particular Proceeding with respect to which Indemnitee is seeking indemnification, the Independent
Counsel referred to below shall become the Reviewing Party; after a Change in Control, the
Independent Counsel referred to below shall become the Reviewing Party. With respect to all
matters arising before a Change in Control for which Independent Counsel shall be the Reviewing
Party and all matters arising after a Change in Control, in each case concerning the rights of
Indemnitee to indemnity payments and Expense Advances under this Agreement or any other agreement
or under applicable law or the Company’s Certificate of Incorporation or Bylaws now or hereafter in
effect relating to indemnification for Indemnifiable Events, the Company shall seek legal advice
only from Independent Counsel selected by Indemnitee and approved by the Company (which approval
shall not be unreasonably withheld or delayed), and who has not otherwise performed services for
the Company or the Indemnitee (other than in connection with

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indemnification matters) within the last five years. The Independent Counsel shall not include
any person who, under the applicable standards of professional conduct then prevailing, would have
a conflict of interest in representing either the Company or Indemnitee in an action to determine
Indemnitee’s rights under this Agreement. Such counsel, among other things, shall render its
written opinion to the Company and Indemnitee as to whether and to what extent the Indemnitee
should be permitted to be indemnified under applicable law. The Company agrees to pay the
reasonable fees of the Independent Counsel and to indemnify fully such counsel against any and all
expenses (including attorneys’ fees), claims, liabilities, loss and damages arising out of or
relating to this Agreement or the engagement of Independent Counsel pursuant hereto.

          4. Indemnification Process and Appeal.

               (a) Indemnification Payment. Indemnitee shall be entitled to indemnification of
Expenses, and shall receive payment thereof, from the Company in accordance with this Agreement as
soon as practicable after Indemnitee has made written demand on the Company for indemnification,
but in no event later than thirty (30) business days after demand, unless the Reviewing Party has
given a written opinion to the Company that Indemnitee is not entitled to indemnification under
applicable law. Indemnitee shall cooperate with the Reviewing Party making a determination with
respect to Indemnitee’s entitlement to indemnification, including providing to the Reviewing Party
upon reasonable advance request any documentation or information which is not privileged or
otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably
necessary to such determination.

               (b) Suit to Enforce Rights. Regardless of any action by the Reviewing Party, if
Indemnitee has not received full indemnification within thirty (30) days after making a demand in
accordance with Section 4(a), Indemnitee shall have the right to enforce its indemnification rights
under this Agreement by commencing litigation in any court in the State of California or the State
of Delaware having subject matter jurisdiction thereof seeking an initial determination by the
court or challenging any determination by the Reviewing Party or any aspect thereof. The Company
hereby consents to service of process and to appear in any such proceeding. Any determination by
the Reviewing Party not challenged by the Indemnitee shall be binding on the Company and
Indemnitee. The Company shall be precluded from asserting in any such proceeding that the
procedures and presumptions of this Agreement are not valid, binding and enforceable and shall
stipulate in any such court that the Company is bound by all the provisions of this Agreement. The
remedy provided for in this Section 4 shall be in addition to any other remedies available to
Indemnitee at law or in equity.

               (c) Defense to Indemnification, Burden of Proof, and Presumptions. It shall be a
defense to any action brought by Indemnitee against the Company to enforce this Agreement (other
than an action brought to enforce a claim for Expenses incurred in defending a Proceeding in
advance of its final disposition) that it is not permissible under applicable law for the Company
to indemnify Indemnitee for the amount claimed. In connection with any such action or any
determination by the Reviewing Party or otherwise as to whether Indemnitee is entitled to be
indemnified hereunder, the burden of proving such a defense or determination shall be on the
Company. Neither the failure of the Reviewing Party or the Company (including its Board,
independent legal counsel or its stockholders) to have made a determination prior to the

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commencement of such action by Indemnitee that indemnification of the claimant is proper under
the circumstances because Indemnitee has met the standard of conduct set forth in applicable law,
nor an actual determination by the Reviewing Party or Company (including its Board, independent
legal counsel or its stockholders) that the Indemnitee had not met such applicable standard of
conduct, shall be a defense to the action or create a presumption that the Indemnitee has not met
the applicable standard of conduct. For purposes of this Agreement, the termination of any claim,
action, suit or proceeding, by judgment, order, settlement (whether with or without court
approval), conviction or upon a plea of nolo contendere or its equivalent, shall not create a
presumption that Indemnitee did not meet any particular standard of conduct or have any particular
belief or that a court has determined that indemnification is not permitted by applicable law. For
purposes of any determination of good faith under any applicable standard of conduct, Indemnitee
shall be deemed to have acted in good faith if Indemnitee’s action is based on the records or books
of account of the Company, including financial statements, or on information supplied to Indemnitee
by the officers of the Company in the course of their duties, or on the advice of legal counsel for
the Company or the Board or counsel selected by any committee of the Board or on information or
records given or reports made to the Company by an independent certified public accountant or by an
appraiser, investment banker or other expert selected with reasonable care by the Company or the
Board or any committee of the Board. The provisions of the preceding sentence shall not be deemed
to be exclusive or to limit in any way the other circumstances in which the Indemnitee may be
deemed to have met the applicable standard of conduct. The knowledge and/or actions, or failure to
act, or any director, officer, agent or employee of the Company shall not be imputed to Indemnitee
for purposes of determining the right to indemnification under this Agreement.

          5. Indemnification for Expenses Incurred in Enforcing Rights. The Company shall
indemnify Indemnitee against any and all Expenses that are incurred by Indemnitee in connection
with any action brought by Indemnitee for

                    (i) indemnification or advance payment of Expenses by the Company
under this Agreement or any
other agreement or under applicable law or the Company’s Certificate of Incorporation or Bylaws now
or hereafter in effect relating to indemnification for Indemnifiable Events, and/or

                    (ii) recovery under directors’ and officers’ liability
insurance policies maintained by the
Company; but only in the event that Indemnitee ultimately is determined to be entitled to such
indemnification or insurance recovery, as the case may be. In addition, the Company shall, if so
requested by Indemnitee, advance the foregoing Expenses to Indemnitee, subject to and in accordance
with Section 2(c).

          6. Notification and Defense of Proceeding.

               (a) Notice. Promptly after receipt by Indemnitee of notice of the commencement of any
Proceeding, Indemnitee shall, if a claim in respect thereof is to be made against the Company under
this Agreement, notify the Company of the commencement thereof; but the omission so to notify the
Company will not relieve the Company from any liability that it may have to Indemnitee, except as
provided in Section 6(c).

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               (b) Defense. With respect to any Proceeding as to which Indemnitee notifies the
Company of the commencement thereof, the Company will be entitled to participate in the Proceeding
at its own expense and except as otherwise provided below, to the extent the Company so wishes, it
may assume the defense thereof with counsel reasonably satisfactory to Indemnitee. After notice
from the Company to Indemnitee of its election to assume the defense of any Proceeding, the Company
shall not be liable to Indemnitee under this Agreement or otherwise for any Expenses subsequently
incurred by Indemnitee in connection with the defense of such Proceeding other than reasonable
costs of investigation or as otherwise provided below. Indemnitee shall have the right to employ
legal counsel in such Proceeding, but all Expenses related thereto incurred after notice from the
Company of its assumption of the defense shall be at Indemnitee’s expense unless: (i) the
employment of legal counsel by Indemnitee has been authorized by the Company, (ii) Indemnitee has
reasonably determined that there may be a conflict of interest between Indemnitee and the Company
in the defense of the Proceeding, (iii) after a Change in Control, the employment of counsel by
Indemnitee has been approved by the Independent Counsel or (iv) the Company shall not in fact have
employed counsel to assume the defense of such Proceeding, in each of which cases all Expenses of
the Proceeding shall be borne by the Company. The Company shall not be entitled to assume the
defense of any Proceeding brought by or on behalf of the Company, or as to which Indemnitee shall
have made the determination provided for in (ii) above or under the circumstances provided for in
(iii) and (iv) above.

               (c) Settlement of Claims. The Company shall not be liable to indemnify Indemnitee
under this Agreement or otherwise for any amounts paid in settlement of any Proceeding effected
without the Company’s written consent, such consent not to be unreasonably withheld; provided,
however, that if a Change in Control has occurred, the Company shall be liable for indemnification
of Indemnitee for amounts paid in settlement if the Independent Counsel has approved the
settlement. The Company shall not settle any Proceeding in any manner that would impose any penalty
or limitation on Indemnitee without Indemnitee’s written consent. The Company shall not be liable
to indemnify the Indemnitee under this Agreement with regard to any judicial award if the Company
was not given a reasonable and timely opportunity as a result of Indemnitees’ failure to provide
notice, at its expense, to participate in the defense of such action, and the lack of such notice
materially prejudiced the Company’s ability to participate in defense of such action. The
Company’s liability hereunder shall not be excused if participation in the Proceeding by the
Company was barred by this Agreement.

          7. Establishment of Trust. In the event of a Change in Control, the Company shall,
upon written request by Indemnitee, create a Trust for the benefit of the Indemnitee and from time
to time upon written request of Indemnitee shall fund the Trust in an amount sufficient to satisfy
any and all Expenses reasonably anticipated at the time of each such request to be incurred in
connection with investigating, preparing for, participating in, and/or defending any Proceeding
relating to an Indemnifiable Event. The amount or amounts to be deposited in the Trust pursuant to
the foregoing funding obligation shall be determined by the Independent Counsel. The terms of the
Trust shall provide that (i) the Trust shall not be revoked or the principal thereof invaded
without the written consent of the Indemnitee, (ii) the Trustee shall advance, within thirty (30)
days of a request by the Indemnitee, any and all Expenses to the Indemnitee (and the Indemnitee
hereby agrees to reimburse the Trust under the same circumstances for which the Indemnitee would be
required to reimburse the Company under Section 2(c) of this Agreement), (iii) the Trust shall
continue to be

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funded by the Company in accordance with the funding obligation set forth above, (iv) the
Trustee shall promptly pay to the Indemnitee all amounts for which the Indemnitee shall be entitled
to indemnification pursuant to this Agreement or otherwise no later than thirty (30) days after
notice pursuant to Section 4(a) and (v) all unexpended funds in the Trust shall revert to the
Company upon a final determination by the Independent Counsel or a court of competent jurisdiction,
as the case may be, that the Indemnitee has been fully indemnified under the terms of this
Agreement. The Trustee shall be chosen by the Indemnitee. Nothing in this Section 7 shall relieve
the Company of any of its obligations under this Agreement. All income earned on the assets held
in the Trust shall be reported as income by the Company for federal, state, local and foreign tax
purposes. The Company shall pay all costs of establishing and maintaining the Trust and shall
indemnify the Trustee against any and all expenses (including attorneys’ fees), claims,
liabilities, loss and damages arising out of or relating to this Agreement or the establishment and
maintenance of the Trust.

          8. Non-Exclusivity. The rights of Indemnitee hereunder shall be in addition to any
other rights Indemnitee may have under the Company’s Certificate of Incorporation, Bylaws,
applicable law or otherwise; provided, however, that this Agreement shall supersede any prior
indemnification agreement between the Company and the Indemnitee. To the extent that a change in
applicable law (whether by statute or judicial decision) permits greater indemnification than would
be afforded currently under the Company’s Certificate of Incorporation, Bylaws, applicable law or
this Agreement, it is the intent of the parties that Indemnitee enjoy by this Agreement the greater
benefits so afforded by such change.

          9. Liability Insurance. To the extent the Company maintains an insurance policy or
policies providing general and/or directors’ and officers’ liability insurance, Indemnitee shall be
covered by such policy or policies, in accordance with its or their terms, to the maximum extent of
the coverage available for any Company director or officer.

          10. Period of Limitations. No legal action shall be brought and no cause of action
shall be asserted by or on behalf of the Company or any Affiliate of the Company against
Indemnitee, Indemnitee’s spouse, heirs, executors or personal or legal representatives after the
expiration of two (2) years from the date of accrual of such cause of action or such longer period
as may be required by state law under the circumstances. Any claim or cause of action of the
Company or its Affiliate shall be extinguished and deemed released unless asserted by the timely
filing and notice of a legal action within such period; provided, however, that if any shorter
period of limitations is otherwise applicable to any such cause of action, the shorter period shall
govern.

          11. Amendment of this Agreement. No supplement, modification or amendment of this
Agreement shall be binding unless executed in writing by both of the parties hereto. No waiver of
any of the provisions of this Agreement shall be binding unless in the form of a writing signed by
the party against whom enforcement of the waiver is sought, and no such waiver shall operate as a
waiver of any other provisions hereof (whether or not similar), nor shall such waiver constitute a
continuing waiver. Except as specifically provided herein, no failure to exercise or any delay in
exercising any right or remedy hereunder shall constitute a waiver thereof.

          12. Subrogation. In the event of payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who

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shall execute all papers required and shall do everything that may be necessary to secure such
rights, including the execution of such documents necessary to enable the Company effectively to
bring suit to enforce such rights.

          13. No Duplication of Payments. The Company shall not be liable under this Agreement
to make any payment in connection with any claim made against Indemnitee to the extent Indemnitee
has otherwise received payment (under any insurance policy, Bylaw or otherwise) of the amounts
otherwise indemnifiable hereunder.

          14. Duration of Agreement. This Agreement shall continue until and terminate upon the
later of (a) ten (10) years after the date that Indemnitee shall have ceased to serve as a director
or officer of the Company or (b) one (1) year after the final termination of any Proceeding,
including any appeal, then pending in respect of which Indemnitee is granted rights of
indemnification or advancement of Expenses hereunder and of any proceeding commenced by Indemnitee
pursuant to Section 4(b) of this Agreement relating thereto.

          15. Binding Effect. This Agreement shall be binding upon and inure to the benefit of
and be enforceable by the parties hereto and their respective successors (including any direct or
indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of
the business and/or assets of the Company), assigns, spouses, heirs and personal and legal
representatives. The Company shall require and cause any successor (whether direct or indirect by
purchase, merger, consolidation or otherwise) to all, substantially all or a substantial part, of
the business and/or assets of the Company, by written agreement in form and substance satisfactory
to Indemnitee, expressly to assume and agree to perform this Agreement in the same manner and to
the same extent that the Company would be required to perform if no such succession had taken
place. The indemnification provided under this Agreement shall continue as to Indemnitee for any
action taken or not taken while serving in an indemnified capacity pertaining to an Indemnifiable
Event even though Indemnitee may have ceased to serve in such capacity at the time of any
Proceeding.

          16. Severability. If any provision (or portion thereof) of this Agreement shall be
held by a court of competent jurisdiction to be invalid, void or otherwise unenforceable, (a) the
remaining provisions shall remain enforceable to the fullest extent permitted by law; (b) such
provision or provisions shall be deemed reformed to the extent necessary to conform to applicable
law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest
extent possible, the provisions of this Agreement (including, without limitation, each portion of
this Agreement containing any provision held to be invalid, void or otherwise unenforceable, that
is not itself invalid, void or unenforceable) shall be construed so as to give effect to the intent
manifested by the provision held invalid, void or unenforceable.

          17. Contribution. To the fullest extent permissible under applicable law, whether or
not the indemnification provided for in this Agreement is available to Indemnitee for any reason
whatsoever, the Company shall pay all or a portion of the amount that would otherwise be incurred
by Indemnitee for Expenses in connection with any claim relating to an Indemnifiable Event, as is
deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to
reflect (i) the relative benefits received by the Company and Indemnitee as a result of the
event(s) and/or transaction(s) giving cause to such Proceeding; and/or (ii) the relative fault of
the Company (and its

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directors, officers, employees and agents) and Indemnitee in connection with such event(s)
and/or transaction(s).

     18. Governing Law. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Delaware applicable to contracts made and to be performed
in such State without giving effect to its principles of conflicts of laws. The Company and
Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding arising
out of or in connection with this Agreement may be brought in the Delaware Court of Chancery, (ii)
consent to submit to the jurisdiction of the Delaware Court of Chancery for purposes of any action
or proceeding arising out of or in connection with this Agreement, (iii) waive any objection to the
laying of venue of any such action or proceeding in the Delaware Court of Chancery, and (iv) waive,
and agree not to plead or to make, any claim that any such action or proceeding brought in the
Delaware Court of Chancery has been brought in an improper or inconvenient forum.

     19. Notices. All notices, demands and other communications required or permitted
hereunder shall be made in writing and shall be deemed to have been duly given if delivered by
hand, against receipt or mailed, postage prepaid, certified or registered mail, return receipt
requested and addressed to the Company at:

LiveWorld, Inc.

4340 Stevens Creek Blvd., Suite 101

San Jose, CA 95129

Attention: Chief Executive Officer

and to Indemnitee at the address set forth below Indemnitee’s signature hereto. Notice of change
of address shall be effective only when given in accordance with this Section. All notices
complying with this Section shall be deemed to have been received on the date of hand delivery or
on the third business day after mailing.

     20. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument.

* * * * *

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     IN WITNESS WHEREOF, the parties hereto have duly executed and delivered this Agreement
as of the day specified above.

	 	 	 	 	 	 	 	 	 
	 	 	LIVEWORLD, INC.	 	 
	 	 	a Delaware corporation	 	 
	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	Print Name:	 	 
	 

	 	Title:
	 	 	 	 

	 	 
	 	 	 	 	 	 	 
	 
	 	 	INDEMNITEE	 	 
	 	 	an individual	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Indemnitee	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	(Address)exv10w6

 

Exhibit 10.6

	 	 	 
	 

	 	PORTIONS DENOTED WITH [***] HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

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CONFIDENTIAL

AGREEMENT FOR CONSULTING SERVICES

     THIS AGREEMENT FOR CONSULTING SERVICES is made and entered into as of May 12, 2003 (the
“Effective Date”), by and between America Online, Inc., a Delaware corporation, with offices at
22000 AOL Way, Dulles, Virginia 20166 (hereinafter referred to as “AOL”), and LiveWorld, Inc., a
Delaware corporation, with principal offices at 170 Knowles Drive, Suite 211, Los Gatos, California
95070, (hereinafter referred to as “Consultant”) (each a “Party” and collectively the “Parties”).

     AOL operates the America Online® brand service, an interactive computer communications,
information and transactions service. Consultant is familiar with the America Online® brand
service. AOL desires to engage the services of Consultant and Consultant desires to accept such
engagement upon the terms and conditions set forth herein.

     NOW, THEREFORE, in consideration of the mutual promises set forth herein, AOL and Consultant
hereby agree as follows:

     1. Services and Scope of Work

          1.1 Services. Consultant agrees to provide to AOL consulting services (“Consulting
Services”) as they are described on Schedule 1 attached hereto as Exhibit A and on such schedules
as are executed from time to time by both Parties to this Agreement (the “Schedules”). Each
Schedule shall be consecutively numbered and annexed hereto. Consulting Services shall be provided
in accordance with the provisions of this Agreement and the applicable Schedule.

          1.2 Scope of Work. Each Schedule shall contain a description of the tasks to be
performed by Consultant, the deliverables and documentation, if any, to be produced by Consultant
(collectively, “Deliverables”), acceptance criteria for each Deliverable (for technical services or
if otherwise applicable), a schedule of performance, a schedule of payments and a statement of
Consultant’s then-current rates, if applicable.

          1.3 Performance of Services. Unless otherwise specified by AOL, Consultant has the
right to (i) control and direct the means, manner and method by which the Consulting Services are
performed, and (ii) perform the Consulting Services at any place or location and at such time as
Consultant may reasonably determine. Unless otherwise agreed to by the Parties in writing or on a

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	 	PORTIONS DENOTED WITH [***] HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

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Schedule, Consultant shall (i) observe the working hours, working rules and polices of AOL
while working on AOL’s premises, and (ii) furnish all equipment and materials used to perform the
Consulting Services, including but not limited to telephone lines, personal computers and modems.

          1.4 Other Work. Consultant has the right to perform services for others during the
term of this Agreement as long as such other engagement or performance does not interfere in any
way with the timely performance of the Consulting Services to be performed hereunder.

          1.5 Compliance with Applicable Law. Consultant shall ensure that Consultant complies
with all applicable local, state and federal law and AOL’s then-current Terms of Service in
performing the Consulting Services.

     2. Consultant Personnel

          2.1 Consultant Project Manager. Consultant will appoint for each Schedule a qualified
member of its staff to act as project manager (the “Consultant Project Manager”), whose duties
shall be to act as liaison between AOL and Consultant.

          2.2 Independent Contractor; No Agency. Consultant is an independent contractor.
Consultant shall not be deemed for any purpose to be an employee of AOL. AOL shall not be
responsible to Consultant or any governing body for any payroll-related taxes related to the
performance of the services, including but not limited to, withholding or other taxes related to
federal or state income tax, social security benefits or unemployment compensation. Consultant
further represents and warrants that Consultant qualifies as an independent contractor under the
provisions of the Internal Revenue Code and its common law rules and, as such, Consultant is filing
all required forms and necessary payments appropriate to the Consultant’s tax status. Neither
party is an agent, representative or partner of the other Party. Neither Party shall have any
right, power or authority to enter into any agreement for or on behalf of, or incur any obligation
or liability on behalf of, or to otherwise bind, the other Party. This Agreement shall not be
interpreted or construed to create an employment relationship, an association, agency, joint
venture or partnership between the Parties or to impose any liability attributable to such a
relationship upon either Party.

          2.3 Consultant’s Employees and Assistants. From time to time, Consultant may, subject
to the terms and conditions set forth in this Agreement, engage employees, independent contractors,
consultants, volunteer assistants or other persons or entities (collectively, “Assistants”) to aid
Consultant in performing Consultant’s duties under this Agreement. AOL has no relationship with or
to such Assistants and such Assistants are not employees, agents, consultants, representatives,
assistants or independent contractors of AOL. Consultant shall be fully and solely

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responsible for the supervision and payment of such Assistants and for all work performed by
such Assistants and any third party subcontractors approved by AOL as provided in this Agreement.

     3. Project Management

          3.1 AOL Project Manager. AOL shall designate a project manager for each Schedule (the
“AOL Project Manager”) who shall act as a liaison between AOL and Consultant.

          3.2 Progress Reports and Meetings. If requested by AOL, Consultant shall submit a
detailed progress report (“Progress Report”) to the AOL Project Manager every month (or more
frequently if requested by AOL) during the term of each Schedule. Progress Reports shall detail
work performed to date and estimated time and cost to complete. If AOL so requests, Consultant
shall hold status meetings with the AOL Project Manager in order to review the status of Consultant
activities.

          3.3 Accounts. If deemed necessary by AOL, Consultant may be given an account(s) for
the America Online® brand service for the exclusive purpose of enabling it and its agents to
perform Consultant’s duties under this Agreement. The account(s) shall be of the type determined
by AOL to be necessary for Consultant to perform its duties hereunder. Consultant shall be
responsible for any premium charges, transaction charges, communication surcharges or other charges
incurred by any such account(s), other than AOL’s standard monthly subscription charge. Consultant
shall be responsible for the actions taken under or through its account(s), which actions shall be
subject to AOL’s then-applicable Terms of Service. Upon termination of this Agreement, the
account(s), and any associated usage credits and related screen names or similar rights, shall
automatically terminate. AOL shall have no liability for loss of data or content related to
termination of any account.

          3.4 Software Tools. AOL shall determine in its sole discretion, which of its
proprietary software tools (each a “Tool”) shall be made available to Consultant in order for
Consultant to perform its duties hereunder. Consultant shall be granted a nonexclusive license to
use any such Tool, which license shall be subject to: (i) Consultant’s compliance with all rules
and regulations relating to use of the Tools, as published from time to time by AOL, (ii) AOL’s
right to withdraw or modify such license at any time, and (iii) Consultant’s express recognition
that AOL provides all Tools on an “as is” basis, without warranties of any kind.

     4. Fees, Expenses, Records, and Taxes

          4.1 Fees. Each Schedule shall set forth the fee due for the Consulting Services to be
provided pursuant to the Schedule and Consultant agrees to invoice AOL as set forth in the

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Schedule. All Consulting Services to be performed on a time and materials basis shall be
invoiced in arrears.

          4.2 Expenses. Consultant shall be entitled to reimbursement of the categories of
expenses set forth on the applicable Schedule. Consultant shall invoice AOL on a monthly basis for
expenses incurred as a result of performing Consulting Services in accordance with the Schedule.
Such expenses shall be limited to reasonable out-of-pocket expenses necessarily and actually
incurred by the Consultant in the performance of its services hereunder, provided that: (i) AOL has
given its prior written consent for any such expenses, including without limitation, travel
expenses; (ii) the expenses have been detailed on a form acceptable to AOL and submitted to the
appropriate AOL Project Manager for review and approval; and (iii) if requested by AOL, the
Consultant submits supporting documentation in addition to the approved expense form. Monthly
expenses shall not exceed the amount set forth in the relevant Schedule without the prior written
approval of the AOL Project Manager. Any travel expenses shall comply with AOL’s travel policy, a
copy of which has been provided to Consultant and AOL may, at AOL’s sole discretion, require
Consultant to make travel arrangements through an AOL-approved travel agency.

          4.3 Review of Fees and Expenses. Consultant will submit the charges and/or expenses
to be invoiced for services performed and the applicable time reports or documentation under any
Schedule and Acceptance Certificate in the form attached hereto as Exhibit C to the AOL Project
Manager for approval prior to actual invoicing. The charges and/or expenses invoiced in accordance
with this Section 4, except for any amounts disputed by AOL, shall be payable by AOL within [***]
days of AOL’s receipt of each invoice, accompanied by an Acceptance Certificate executed by the AOL
Project Manager.

          4.4 Maximum Dollar Amount. Notwithstanding anything to the contrary contained herein,
AOL shall not be liable for any charges and/or expenses under any Schedule for work in excess of
the Maximum Dollar Amount specified on such Schedule.

          4.5 Records. Consultant shall maintain complete and accurate accounting records, in a
form in accordance with generally accepted accounting principles, to substantiate Consultant’s
charges and expenses hereunder and Consultant shall retain such records for a period of [***] years
from the date of final payment under any Schedule.

          4.6 Taxes. Consultant shall be responsible for determining the applicability of any
sales, use, excise, or similar taxes which may be applicable to the performance of the Consulting
Services, if any. Consultant shall clearly and separately state any applicable taxes on
Consultant’s invoice to AOL for corresponding Consulting Services. AOL shall pay applicable taxes
on the invoice or, in lieu of the payment of any such taxes, AOL may provide Consultant with a
certificate

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acceptable to the taxing authorities exempting AOL from payment of these taxes. Consultant
shall pay all taxes collected from AOL to the appropriate taxing authority. Consultant, and not
AOL, shall be obligated to pay any applicable taxes not invoiced to AOL on the invoice for
corresponding Consulting Services, including without limitation, any and all interest, penalties
and attorneys’ fees. Consultant shall bear any and all costs, and shall indemnity AOL for any and
all costs, of or associated with any determination of applicable taxes, the collection of such
taxes and the payment of such taxes to the taxing authority (except to the extent AOL has
wrongfully failed to pay such taxes or provide a certificate(s) as provided above), including,
without imitation, penalties, interest and attorneys’ fees.

     5. Acceptance of Services

     All Consulting Services and Deliverables delivered by the Consultant pursuant to the Agreement
and the attached Schedules shall be subject to acceptance by AOL.

     6. Term and Termination

          6.1 Term. This Agreement shall commence on the Effective Date and shall continue in
full force and effect thereafter unless and until it is terminated or expires in accordance with
the provisions of this Agreement or any Schedule or, if it is not terminated and no expiration is
provided in any applicable Schedule, until satisfactory completion of the services provided for
herein and in all Schedules and acceptance thereof by AOL (“Project Completion”). Upon expiration
of the Term, if prior to Project Completion, AOL shall have the option, at its sole discretion, to
renew this Agreement for any period of time up to and including Project Completion by giving
written notice of such intent to renew to Consultant prior to the expiration of the Term.

          6.2 Termination For Breach. Either Party may terminate this Agreement at any time in
the event of a material breach by the other Party which remains uncured after [***] days written
notice thereof (or such shorter period as may be specified in this Agreement or in any applicable
Schedule).

          6.3 Termination Upon Notice. Notwithstanding anything to the contrary herein or in
any Schedule, AOL may terminate this Agreement or any Schedule hereunder for any reason by giving
the Consultant [***] prior written notice of its election to terminate said Agreement or Schedule.

          6.4 Termination for Bankruptcy/Insolvency. Either Party may terminate this Agreement
immediately following written notice to the other Party if the other Party (i) ceases to do
business in the normal course, (ii) becomes or is declared insolvent or bankrupt, (iii) is the
subject of

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any proceeding related to its liquidation or insolvency (whether voluntary or involuntary)
which is not dismissed within [***] calendar days or (iv) makes an assignment for the benefit of
creditors.

          6.5 AOL Rights and Payment Upon Termination. If either Party terminates the
Agreement, AOL agrees to pay Consultant for all expenses incurred by the Consultant with AOL’s
approval up to the effective date of termination. In the event AOL terminates this Agreement or
any Schedule under Section 6.3 prior to the completion of the services rendered under each
Schedule, (a) Consultant shall be compensated a pro-rata share of the fee due to Consultant under
this Agreement and the applicable Schedule, and (b) if applicable, AOL shall pay Consultant for all
Progress Milestones (as set forth in the applicable Schedule) completed and accepted by AOL and a
pro-rata share of the Progress Milestone Consultant is working to complete at the time the
applicable schedule is terminated. Termination under this Agreement shall not affect AOL’s rights
in and to all Deliverables, Materials (as defined in Exhibit B) and work product created by
Consultant pursuant to this Agreement prior to such termination.

     7. Terms and Conditions. The terms and conditions set forth on Exhibit B attached
hereto are hereby made a part of this Agreement.

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     IN WITNESS WHEREOF, the Parties hereto, each acting under due and proper authority, have
executed this Agreement as of the date first written above.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	AMERICA ONLINE, INC.	 	 	 	CONSULTANT	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Print Name:	 	 	 	 	 	Print Name:	 	 	 	 
	Title:

	 	 	 	 

	 	 	 	Title:
	 	 	 	 

	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	 	 	Date:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	EIN or SSN:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 

	 	 

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	 	PORTIONS DENOTED WITH [***] HAVE BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT.

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EXHIBIT A

SCHEDULE NO. 1 (“Schedule 1”) DATED MAY 12, 2003

AGREEMENT FOR CONSULTING SERVICES

BETWEEN

AMERICA ONLINE, INC. AND LIVEWORLD, INC.

DATED AS OF MAY 12, 2003 (the “Agreement”)

SCOPE OF WORK

	1.	 	Detailed description of services to be rendered by Consultant:

	 	•	 	Assess AOL’s current online support capabilities and strategies
with respect to AOL Members who contact AOL through AOL’s member services group
(“Member Services”). Consultant shall offer new ways for AOL Members to get
their questions answered by other AOL Members through the use of new tools, such
as an online answer board (the “Answer Board”), in order to offset calls that
come into Member Services.
	 
	 	•	 	Identity industry best practices relevant to AOL.
	 
	 	•	 	Recommend a strategy and implementation plan (the “Implementation
Plan”) for involving and encouraging AOL Members to support each other through
the use of Answer Boards.
	 
	 	•	 	The Implementation Plan will include:

	 	o	 	Answer Board user experience flow diagram that is consistent with the
AOL experience.
	 
	 	o	 	Answer Board screen shot mock-ups that are consistent with the AOL
experience.
	 
	 	o	 	Recommend AOL and/or third party online support applications for the
Answer Boards.
	 
	 	o	 	AOL organizational impacts.
	 
	 	o	 	Recommend AOL or outsourced technical infrastructure for the Answer
Boards.

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	 	•	 	The Implementation Plan will cover key support issues such as:

	 	o	 	Answer Board content organization and integration within AOL
environment.
	 
	 	o	 	Content seeding (i.e. posting of the first questions and answers),
moderation and other personnel consideration for the Answer Boards.
	 
	 	o	 	Knowledge sharing and management of the Answer Boards.
	 
	 	o	 	Quality control of the Answer Boards.
	 
	 	o	 	Escalation management of the Answer Boards.
	 
	 	o	 	Other features, specification, staged rollout plans of the Answer Boards.
	 
	 	o	 	Budgeted development, set-up and ongoing costs including variable,
volume dependent costs of the Answer Boards.

Project Teams

AOL Team

	 	•	 	Senior decision maker and budget authority: Michael Sherrod.
	 
	 	•	 	Others to be determined by AOL.

	 	o	 	Support solution project manager.
	 
	 	o	 	Ongoing online support program manager.
	 
	 	o	 	AOL technology contact.
	 
	 	o	 	AOL technical operations contact.

Consultant’s Team

	 	•	 	Project and Technology Lead: Trev Griffiths.
	 
	 	•	 	Content Expert: Jay Friedman.
	 
	 	•	 	Executive Sponsors: Peter Friedman.
	 
	 	•	 	Other Consultant team members as appropriate.

	2.	 	Deliverables and documentation to be produced by Consultant:
	 
	 	 	The project plan for the consulting engagement shall include:

	 	a.	 	Assessment phase:

	 	•	 	Onsite meeting with key AOL support executives, management
and staff.
	 
	 	•	 	Review current AOL metrics.
	 
	 	•	 	Complete technical review.
	 
	 	•	 	Competitive review of two to three (2-3) key comparable
company support models.

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	 	b.	 	Strategy phase:

	 	•	 	Develop written strategy (including Return On Investment
model and other metrics).
	 
	 	•	 	Complete an Implementation Plan (to include Ul, flow, and
screen shots).
	 
	 	•	 	Updated budget for implementation including development,
set-up and ongoing program and operational management.

	 	c.	 	Report phase:

	 	•	 	Onsite meeting with the AOL support team to present the
recommended strategy and Implementation Plan.
	 
	 	•	 	Refine the strategy and Implementation Plans based upon
agreed upon changes.

	3.	 	Time for Performance/Delivery
	 
	 	 	2a: Assessment Phase — To be completed no later than [***]
	 
	 	 	2b: Strategy Phase — To be completed no later than [***]
	 
	 	 	2c: Report Phase — To be completed no later than [***]
	 
	4.	 	Acceptance testing criteria for each Deliverable:
	 
	 	 	Applicable as described below                               Not Applicable
X
	 
	5.	 	Payments:

	 	(a)	 	Consulting Project Fee:           Fixed Price: [***]
	 
	 	(b)	 	Expenses

                    Subject to the requirements set forth in Section 4 of this
Agreement, AOL shall reimburse
Consultant up to a maximum of [***]/month for the following categories of expenses: travel and
out-of-pocket expenses.

	 	(c)	 	Payment Schedule
	 
	 	 	 	All fees and expenses due shall be invoiced by Consultant in arrears as follows:

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	 	 	 	 	 	  X             Progress Payments as follows:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Progress Milestones
	 	Progress Payments
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	o	 	 	One third upon full execution of the Agreement
	 	[***]	 	 
	 

	 	 	o	 	 	One third as a progress payment on [***]
	 	[***]	 	 
	 

	 	 	o	 	 	One third on [***]
	 	[***]	 	 

	 	(d)	 	Maximum Dollar Amount

                         The maximum dollar amount payable to
Consultant for all fees and expenses under this Schedule:
[***]

	 	 	 	 	 	 	 	 	 
	 

	 	 	6.	 	 	Consultant Project Manager:
	 	Name: Peter Friedman
	 

	 	 	 	 	 	 	 	Fax #: 443-265-0365
	 
	 	 	 	 	 	 	 	 
	 

	 	 	7.	 	 	AOL Project Manager:
	 	Name: Michael Sherrod
	 

	 	 	 	 	 	 	 	Fax#: 703-265-9310
	 
	 	 	 	 	 	 	 	 
	 	 	 	8.	 	 	Term of this Schedule: From [***] through [***]
	 
	 	 	 	 	 	 	 	 
	 	 	 	9.	 	 	Additional Terms and Conditions: None.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	AMERICA ONLINE, INC.	 	 	 	CONSULTANT	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	 	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Print Name:	 	 	 	 	 	Print Name:	 	 	 	 
	Title:

	 	 	 	 

	 	 	 	Title:
	 	 	 	 

	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	 	 	Date:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

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EXHIBIT B

Terms and Conditions

I. NO RIGHTS IN AOL PROPERTY/TRADEMARKS

No Ownership or License. Nothing in this Agreement shall convey to Consultant any right,
license, title, interest in and to the Work (as defined below). The AOL “look and feel”, or any
other AOL property, property interest, license or right.

No Right to Post Content. Unless specifically directed to do so by AOL, Consultant shall
have no right to post or display content or other materials in any area in the AOL Network. As
used in this Agreement, AOL Network shall mean (i) the America Online® brand service, (ii) any
international versions of the America Online service, and (iii) any other product or service owned,
operated, distributed or authorized to be distributed by or through AOL or its affiliates worldwide
(which may include, without limitation, internet sales promoting AOL products and services and any
“offline” information browsing products of AOL or its Affiliates).

No Right to Use Trademarks. Consultant shall have no right to use any AOL trade name,
trademark or service mark.

II. CONFIDENTIALITY/PROPRIETARY RIGHTS/ SECURITY TRADING/NON-SOLICITATION

Confidentiality. Consultant acknowledges that (1) AOL, its subsidiaries and affiliated
companies, are the owners of valuable trade secrets, and other confidential information and license
same from others, (2) in the performance of the Consulting Services, Consultant shall receive or
become aware of such information as well other confidential and proprietary information concerning
AOL, its subsidiaries and affiliated companies’ business affairs, finances, properties, methods of
operation and other data including the terms of this agreement (hereinafter collectively referred
to as “Confidential Information”), and (3) unauthorized disclosure of any Confidential Information
would irreparably damage AOL, its subsidiaries and/or affiliated companies.

Consultant further acknowledges that the services which AOL, its subsidiaries and/or affiliated
companies performs for clients are confidential that to enable AOL, its subsidiaries and/or
affiliated companies to perform those services, its clients furnish confidential information
concerning their business affairs, finances, properties, methods of operation and other data; that
the good will of AOL, its subsidiaries and/or affiliated companies depends, among other things,
upon its keeping such services and information confidential and that unauthorized disclosure of the
same would irreparably damage AOL, its subsidiaries and/or affiliated companies; and that by reason
of its duties hereunder, Consultant may come into possession of information concerning such
services or information furnished by clients, even though Consultant does not himself take any
direct part in or furnish the services performed for those clients.

All such information owned by AOL, its subsidiaries and/or affiliated companies, licensed by AOL,
its subsidiaries and/or affiliated companies, or concerning clients of AOL, its subsidiaries and/or
affiliated companies and services rendered by AOL, its subsidiaries and/or affiliated companies to
such clients if hereinafter collectively referred to as “Confidential Information.”

For the purposes of this agreement, Confidential Information shall also mean any information
relating to or disclosed in the course of the Agreement, which is or should be reasonably
understood to be confidential of proprietary to AOL, including, but not limited to, the material
terms of this Agreement, information about AOL Members (e.g., AOL Member names, screennames,
addresses or other identifying information), technical processes and formulas, source codes,
product designs, sales, cost and other unpublished financial information, product and related
business plans, projections, and marketing data. The provisions of this paragraph shall not apply
to Confidential Information that has, through no fault of Consultant, become public knowledge. As
used herein, AOL Member shall mean authorized users of the AOL Network, including any sub-accounts
using the AOL Network under an authorized master account.

Non-Disclosure. Consultant agrees that, except as directed by AOL or as permitted in this
Paragraph, Consultant will not

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at any time during or after the term of this Agreement disclose any confidential Information to any
person, or permit any person to examine and/or make copies of any reports or any documents prepared
by consultant or that come into consultant’s possession or under consultant’s control by reason of
consultant’s services, and that upon termination of this Agreement, Consultant will turn over to
AOL all documents, papers, and other matter in Consultant’s possession or under Consultant’s
control that contain or relate to such Confidential Information. Notwithstanding the foregoing,
consultant may disclose confidential Information to its Assistants when reasonably necessary to
perform the Consulting Services; provided that (i) such Assistants agree in writing to be bound by
the terms of this Agreement, and (ii) no such Assistant shall be an Interactive Service or an
employee or independent contractor of an Interactive Service.

Without limiting the generality of the foregoing, Consultant shall not collect AOL Member
screennames from public or private areas of the AOL Network and shall comply with AOL’s bulk e–mail
policy.

Injunctive, Relief. Consultant acknowledges that disclosure of any Confidential
Information by Consultant will give rise to irreparable injury to AOL, its subsidiaries and/or
affiliated companies or the owner of such information, inadequately compensable in damages.
Accordingly, AOL or such other Party may seek and obtain injunctive relief against the breach or
threatened breach of the foregoing undertakings, In addition to any other legal remedies which may
be available. Consultant acknowledges and agrees that the covenants contained herein are necessary
for the protection of legitimate business interests of AOL, its subsidiaries and/or affiliated
companies and are reasonable in scope and content.

Proprietary Rights. Except for Consultant’s Pre-existing Materials, all work, services and
materials performed or created under any Schedule (“Work”), including, but not limited to, (i)
names, characters, protectable organizational structures, “look and feel”, other “brand”
components, (ii) all materials, specifications, designs, writings, code, products, or other
deliverables developed or prepared for AOL by consultant under such Schedule (whether or not such
Schedule is completed) or provided or delivered to AOL by consultants, Assistants or their agents
pursuant to this Agreement (collectively, “Materials”) and (iii) any and all new or improved idea,
design, concept or other invention made or developed by consultant during the course of rendering
the Consulting Services or developing or preparing the Materials (collectively, “Invention”), are
the property of AOL and all title and interest therein shall vest in AOL and shall be deemed to be
a work made for hire and made in the course of consulting Services rendered hereunder. Consultant
shall promptly and completely disclose to AOL in writing any and all Inventions.

To the extent that title to any Works may not, by operation of law, vest in AOL or such Works may
not be considered works made for hire, Consultant hereby irrevocably assigns to AOL all right,
title and interest in and to any Work, including but not limited to any and all Materials and
Inventions. All Works, including but not limited to Materials and Inventions, shall belong
exclusively to AOL and AOL shall have the right to obtain and to hold in its own name, copyrights,
registrations, patents, or such other protection as may be appropriate to the subject matter, and
any extensions and renewals thereof. Consultant agrees to give AOL and any person designated by
AOL such reasonable assistance, at AOL’s request and expense, as is required to perfect, secure and
protect AOL’s intellectual property and other rights set forth in this Section, including but not
limited to executing all documents necessary to perfect, secure and protect such rights.

Unless otherwise requested by AOL, upon the completion of the services to be performed under each
Schedule or upon the earlier termination of such Schedule, Consultant shall immediately turn over
to AOL all Work, including without limitation, any and all Materials and Inventions, developed
pursuant to such Schedule.

For purposes of this Agreement, “Consultant’s Pre-existing Materials” means any concepts,
materials, code, methodology, process, technique or intellectual property right developed, evolved
during the course of the Consulting Services, licensed or otherwise acquired by Consultant
independent of the Agreement and services to be rendered hereunder and which are not based upon and
do not incorporate any AOL Confidential Information or other intellectual property rights of AOL.
Consultant hereby grants an irrevocable, fully paid–up, worldwide, non–exclusive, assignable,
sublicensable license to use, reproduce, display,

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perform, distribute and make derivative works of any of Consultant’s Pre–existing Materials that
are incorporated into the Deliverables.

Securities Trading Policy. Consultant agrees, for the term of this Agreement and for as
long thereafter as Consultant has access to material, non–public information of AOL to comply with
terms of AOL’s securities trading policy (the “Securities Policy”), a copy of which has been
provided to Consultant as revised from time to time, to the same extent as employees of AOL are
obligated to comply with the Securities Policy.

Non–Solicitation. Unless otherwise mutually agreed to by the Parties in writing,
Consultant agrees not to hire or to solicit the employment of any personnel of AOL during the term
of this Agreement and for a period of one (1) year thereafter.

Statements to Third Parties. During the term of the Agreement, Consultant shall not make,
publish or otherwise communicate, or cause to be made, published or otherwise communicated, any
deleterious remarks whatsoever to any third parties concerning AOL or its affiliates, directors,
officers, employees or agents, including without limitation, AOL’s business projects, business
capabilities, performance of duties and services or financial position.

III. REPRESENTATIONS AND WARRANTIES.

Representations and Warranties. Consultant represents and warrants that: (a) Consultant is
or will promptly and prior to the Effective Date become familiar with AOL’s current of then–current
Terms of Service Agreement; (b) Consultant has or shall have the proper skill, training, and
background so as to be able to perform in a competent and professional manner and that all work
will be performed in accordance with applicable standards; (c) AOL shall receive free, good and
clear title to all Work which may be developed by Consultant under this Agreement or which is
provided or delivered to AOL by Consultant or Consultant’s Assistants, agents or representatives
pursuant to this Agreement including without limitation the Materials and Inventions, which title
shall be free and clear of any and all liens, encumbrances, claims or litigation, whether pending
or threatened, (d) no Work, Deliverable or other materials delivered by Consultant to AOL
hereunder, including without limitation Materials and Inventions, shall infringe on or violate (i)
any copyright, trademark, patent, any music performance or other music related right, (ii) any
other proprietary or other right of any third party, including but not limited to any third party
right to privacy, (iii) any applicable law or regulation, or (iv) AOL’s Terms of Service to any AOL
service guidelines or standards made available to Consultant by AOL, and (e) no Work, Deliverable
or other materials delivered by Consultant to AOL hereunder, including without limitation,
Materials and Inventions, shall contain any scandalous, libelous or unlawful matter or material.

Each Party represents and warrants to the other Party that: (i) such Party has the full corporate
right, power and authority to enter into this Agreement, to grant the licenses granted hereunder
and to perform the acts required of it hereunder; (ii) the execution of this Agreement by such
Party, and the performance by such Party if its obligations and duties hereunder, do not and will
not violate any agreement to which such Party is a party or by which it is otherwise bound; (iii)
when executed and delivered by such Party, this Agreement will constitute the legal, valid and
binding obligation of such Party, enforceable against such Party in accordance with its terms; and
(iv) such Party acknowledges that the other Party makes no representations, warranties or
agreements related to the subject matter hereof which are not expressly provided for in this
Agreement.

IV. INDEMNITY.

Indemnity. Consultant shall defend, indemnity and hold harmless AOL, its officers,
directors, agents, affiliates, distributors, franchisees and employees from any and all loss and
third party claims, demands, liabilities, costs or expenses, including without limitation
reasonable outside and in–house attorney’s fees and expenses (“Liabilities”) resulting from (a)
actual or alleged infringement of any patent, copyright, or other property rights (including, but
not limited to, misappropriation of trade secrets) based on any software, program, service and or
other materials furnished to AOL by Consultant pursuant to the terms of this Agreement, including
without limitation, the Work, Materials or Inventions, or the use thereof by AOL, (b) the payment
of compensation or salary asserted by an employee or Assistant of Consultant, as well as any claim
that AOL stands in any relationship

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including, but not limited to employment, co–employment and joint employment, with AOL, (c) any
governmental determination that Consultant is not an independent contractor or litigation
determining a change of Consultant’s independent contractor status, including liability for taxes
and other penalties assessed upon AOL because of Consultant’s change or lack of independent
contractor status, (d) Consultant’s material breach of any obligation, duty, representation or
warranty contained in this Agreement or in any Schedule attached hereto, and (e) the fault or
negligence of Consultant and/or its Assistants.

In the event that Consultant is a professional corporation, each of the members of said corporation
hereby agrees to be held jointly and severally liable for any liability of Consultant set forth
herein or arising hereunder. AOL reserves the right to assume the exclusive defense and control of
any matter otherwise subject to indemnification by Consultant hereunder. Consultant agrees, should
AOL’s use of any service, program, and/or other material furnished to AOL by Consultant be enjoined
by any court, to promptly obtain, at no expense to AOL, the right to continue to use the items so
enjoined or, at no expense to AOL, provide AOL promptly with substitute items that are functionally
equivalent to the enjoined products. If Consultant can not secure AOL’s right to continue using
such items or substitute such items as provided herein, Consultant agrees to refund all sums earned
under this Agreement relating to the provision of such items.

AOL shall defend, indemnify and hold harmless Consultant, its officers, directors, agents,
affiliates, distributors, franchisees and employees from any and all Liabilities resulting from
actual or alleged infringement of any patent, copyright or other property right (including, but not
limited to, misappropriation of trade secrets) based on any proprietary materials with respect to
which AOL has a copyright, patent or trademark right furnished by AOL to Consultant specifically
for inclusion in the Works or Materials (excluding any claim for infringement arising out of the
combination of such proprietary AOL materials with Consultant’s materials, software, programs or
services or otherwise not relating exclusively to such AOL provided proprietary materials).

V. GENERAL.

Excuse. Neither Party shall be liable for, or be considered in breach of or default under
this Agreement on account of, any delay or failure to perform as required by this Agreement as a
result of any causes or conditions which are beyond such Party’s reasonable control and which such
Party is unable to overcome by the exercise of reasonable diligence.

Notice. Any notice, approval, request, authorization, direction or other communication
under this Agreement will be given in writing and will be deemed to have been delivered and given
for all purposes (i) on the delivery date if delivered by confirmed facsimile; (ii) on the
delivery date if delivered personally to the Party to whom the same is directed; (iii) one business
day after deposit with a commercial overnight carrier with written verification of receipt; or (iv)
five business days after the mailing data, whether or not actually received, if sent by U.S. mail,
return receipt requested, postage and changes prepaid, or any other means of rapid mail delivery
for which a receipt is available. In the case of AOL, such notice will be provided to both the AOL
Project Manager and the Deputy General Counsel (fax no. 703-265-1105), such at the address of AOL
set forth in the first paragraph of this Agreement. In the case of Consultant, except as otherwise
specified herein, the notice address shall be the address for Consultant set forth in the first
paragraph of this Agreement, with the other relevant notice information, including the recipient
for notice and, as applicable, such recipient’s fax number to be as reasonably identified by AOL.

No Waiver. The failure of either Party to insist upon or enforce strict performance by the
other Party of any provision of this Agreement or to exercise any right under this Agreement shall
not be construed as a waiver or relinquishment to any extent of such Party’s right to assert or
rely upon any such provision or right in that or any other instance; rather the same shall be and
remain in full force and effect.

Entire Agreement. This Agreement sets forth the entire agreement and supersedes any and
all prior agreements of the Parties with respect to the transactions set forth herein. Neither
Party shall be bound by, and each Party specifically objects to, any term, condition or other
provisions which is different from or in addition to the provisions of this Agreement (whether or
not it would materially alter this

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Agreement) and which is provided by the other Party in any correspondence or other document, unless
the Party to be bound thereby specifically agrees to such provision in writing.

Amendment. No change, amendment or modification of any provision of this Agreement shall
be valid unless set forth in a written instrument signed by the Party subject to enforcement of
such amendment.

Further Assurances. Consultant shall take such action (including, but not limited to, the
execution, acknowledgment and delivery of documents) as may reasonably be requested by AOL for the
implementation or continuing performance of this Agreement.

Assignment. Consultant shall not assign this Agreement or any right interest or benefit
under this Agreement without the prior written consent of AOL. Assumption of the Agreement by any
successor to Consultant (including, without limitation, by way of merger, consolidation or sale of
all or substantially all of Consultant’s stock or assets) shall be subject to AOL’s prior written
approval. Subject to the foregoing, this Agreement shall be fully binding upon, inure to the
benefit of and be enforceable by the Parties hereto and their respective successors and assigns.

Subcontract. No work or services to be performed by Consultant hereunder shall be
subcontracted to or performed on behalf of Consultant by any third party, except upon written
permission by AOL.

Construction; Severability. In the event that any provision of this Agreement conflicts
with the law under which this Agreement is to be construed or if any such provision is held invalid
by a court with jurisdiction over the Parties to this Agreement, (i) such provision shall be deemed
to be restated to reflect as nearly as possible the original intentions of the Parties in
accordance with applicable law, and (ii) the remaining terms, provisions, covenants and
restrictions of this Agreement shall remain in full force and effect.

Remedies. Except where otherwise specified, the rights and remedies granted to a Party
under this Agreement are cumulative and in addition to, and not in lieu of, any other rights or
remedies which the Party may possess at law or in equity.

Applicable Law; Jurisdiction. This Agreement shall be interpreted, construed and enforced
in all respects in accordance with the laws of the Commonwealth of Virginia except for its
conflicts of laws principles. Each Party irrevocably consents to the exclusive jurisdiction of the
courts of the Commonwealth of Virginia and the federal courts situated in the Commonwealth of
Virginia, in connection with any action to enforce the provisions of this Agreement, to recover
damages or other relief for breach or default under this Agreement, or otherwise arising under or
by reason of this Agreement.

Export Controls. Both Parties shall adhere to all applicable laws, regulations and rules
relating to the export of technical data and shall not export or re–export any technical data, any
products received from the other Party or the direct product of such technical data to any
prescribed county listed in such applicable laws, regulations and rules unless properly authorized.

Publicity. Consultant agrees that it will not, without prior written consent of AOL, use
in advertising, publicity, or otherwise the name of AOL, or refer to the existence of this
Agreement in press releases, advertising, or materials distributed to prospective customers.

Duty to Inform. Consultant shall promptly inform AOL of any information related to the
Consulting Services, including without limitation the Work, Materials, Deliverables and Inventions,
which could reasonably lead to a claim, demand or liability of or against AOL and/or its Affiliates
by any third party.

Limitations. NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR ANY INCIDENTAL,
CONSEQUENTIAL SPECIAL OR PUNITIVE DAMAGE OF ANY KIND OR NATURE, WHETHER SUCH LIABILITY IS ASSERTED
ON THE BASIS OF CONTRACT (INCLUDING, WITHOUT LIMITATION, THE BREACH OF THIS AGREEMENT OR ANY
TERMINATION OF THIS AGREEMENT), TORT (INCLUDING WITHOUT LIMITATION NEGLIGENCE OR STRICT LIABILITY)
OR OTHERWISE, EVEN IF

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ANY OTHER PARTY HAS BEEN WARNED OF THE POSSIBILITY OF ANY SUCH LOSS OR DAMAGE IN ADVANCE.

Workers’ Compensation Insurance. No workers’ compensation insurance shall be obtained by
AOL concerning Consultant. Consultant shall comply with the applicable workers’ compensation law
concerning Consultant and shall provide to AOL a certificate of workers’ compensation insurance
upon request.

Comprehensive General Liability Insurance. Consultant further agrees to secure and
maintain, at Consultant’s sole cost and expense, Comprehensive General Liability Insurance for
damage claims due to bodily injury (including death), or property damage caused by or arising from
acts or omissions of Consultant. The minimum limits of such insurance will be one million dollars
($1,000,000.00). Maintenance of the foregoing insurance will in no way be interpreted as relieving
Consultant of any responsibility whatsoever.

Headings. The captions and headings used in this Agreement are inserted for convenience
only and shall not affect the meaning or interpretation of this Agreement.

Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed
an original and all of which together shall constitute one and the same document.

Surviving Sections. The following sections shall survive the termination of this Agreement
2.2 (“Independent Contractor”); 2.3 (“Consultant’s Employees and Assistants); 4.6 (“Taxes”) of this
Agreement and this Exhibit B.

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EXHIBIT C

ACCEPTANCE CERTIFICATE

SCHEDULE NO. ___DATED ___[insert Schedule date]
                    TO

AGREEMENT FOR CONSULTING SERVICES

BETWEEN

AMERICA ONLINE. INC. AND                     

DATED AS OF ___[Insert main agreement date] ___(the “Agreement”)

	 	 	 	 	 
	1.

	 	Deliverables and documentation to be produced by Consultant:
	 	AOL
	 

	 	 	 	 
	 

	 	Approval	 	 
	 

	 	 	 	 
	 

	 	2A:	 	 
	 

	 	 	 	 
	 

	 	2B:	 	 
	 

	 	 	 	 
	 

	 	2C:	 	 
	 

	 	 	 	 
	 

	 	2D:	 	 
	 

	 	 	 	 
	2.

	 	Time for Performance/Delivery
	 	AOL Approval
	 

	 	 	 	 
	 

	 	2A:	 	 
	 

	 	 	 	 
	 

	 	2B:	 	 
	 

	 	 	 	 
	 

	 	2C:	 	 
	 

	 	 	 	 
	 

	 	2D:	 	 
	 

	 	 	 	 
	3.

	 	Acceptance testing criteria for each Deliverable:
	 	AOL Approval
	 

	 	 	 	 
	 

	 	Applicable as described below ___           Not Applicable ___	 	 
	 

	 	2A:	 	 
	 

	 	 	 	 
	 

	 	2B:	 	 
	 

	 	 	 	 
	 

	 	2C:	 	 
	 

	 	 	 	 
	 

	 	2D:	 	 
	 

	 	 	 	 
	4.

	 	Payments approved by AOL:
	 	AOL
	 

	 	 	 	 
	 

	 	Approval	 	 
	 

	 	                     Monthly	 	 
	 

	 	                     Upon Completion	 	 
	 

	 	 	 	 
	 

	 	                     Other (describe:
                                        
                    )	 	 
	 

	 	 	 	 
	 

	 	                     Progress Payments as follows:	 	 
	 

	 	 	 	 

	 	 	 	 	 	 	 	 	 
	Approval	 	Progress Payments	 	Progress Milestone	 	AOL
	Item 2A:

	 	$	 	 	 	 	 	 
	 

	 	 	 	 	 
	 	 
	Item 2B:

	 	$	 	 	 	 	 	 
	 

	 	 	 	 	 
	 	 
	Item 2C:

	 	$	 	 	 	 	 	 
	 

	 	 	 	 	 
	 	 
	Item 2D:

	 	$	 	 	 	 	 	 
	 

	 	 	 	 	 
	 	 

Payment for Partial Performance.

If AOL terminates this Agreement or any Schedule under Section 6.3 of the Agreement, AOL shall pay
Consultant through the Progress Milestone accepted and approved above; and a pro-rata share of the
next Progress Milestone Consultant is working to complete at the time the Agreement or Schedule is terminated (as set forth
in Section 6.5 of the Agreement).

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