Document:

exv10w26

Exhibit 10.26

DIRECT RESELLER ADDENDUM

TO THE MICROSOFT DIGITAL DISTRIBUTION AGREEMENT

Certain confidential information contained in this document, marked by asterisks, has been omitted

and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the

Securities Exchange Act of 1934, as amended.

ADDENDUM SUMMARY AND SIGNATURE PAGE

This Direct Reseller Addendum (“Addendum”) to the Microsoft Digital Distribution Agreement is entered into between:

Microsoft Corporation

     A corporation organized under the laws of the State of Washington, U.S.A. (“Microsoft”)

AND

Digital River, Inc.

     A company organized under the laws of the State of Delaware, U.S.A. (“Company”)

	 	 	 
	Addendum Effective and Expiration Dates:

	 	This Addendum commences on September 1, 2006 (the “Addendum Effective Date”) and,
unless terminated earlier, expires on August 31, 2009 (the “Addendum Expiration
Date”).
	 
	 	 
	Purpose and Scope:

	 	This Addendum supplements and, to the extent applicable amends, the Microsoft
Operations Digital Distribution Agreement between Microsoft and Company,
(“Agreement”) signed as of September 1, 2006 respect to all statements of work
expressly referencing the Agreement and the Addendum. This Addendum supersedes and
replaces the previous Direct Reseller Addendum that was signed concurrently with the
Agreement.
	 
	 	 
	 

	 	The Addendum establishes the terms and conditions under which Microsoft grants
Company a non-exclusive license to resell and distribute certain Microsoft Products
to End-Users. It establishes the legal structure for the parties to create a
business relationship under which Company will resell and distribute, as a seller of
record, certain Microsoft Products to end-users.
	 
	 	 
	 

	 	This Addendum applies only to statements of work expressly referencing the Agreement
and the Addendum. In the event of a conflict between the Agreement and this
Addendum, this Addendum controls with respect to statements of work expressly
referencing this Addendum.

This Addendum consists of the following:

	 	•	 	This Addendum Summary and Signature Page
	 
	 	•	 	The Addendum Contact and Notices Information Page
	 
	 	•	 	The Addendum Terms and Conditions
	 
	 	•	 	Any statements of work (“SOW”) entered into under the Agreement and expressly referencing this Addendum, including the
following statements of work:

	 	•	 	Statement of Work: Office 2007 Digital Distribution (Expiration Date: September 1, 2006)

Microsoft and Company enter into this Addendum by signing below.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MICROSOFT CORPORATION	 	 	 	DIGITAL RIVER, INC.	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Signature:

	 	 	 	 	 	 	 	Signature:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Print Name:
	 	 	 	 	 	 	 	Print Name:	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Title:
	 	 	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Date:
	 	 	 	 	 	 	 	Date:	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 	 	 

 

			
	*	 	Confidential treatment has been requested for portions of this agreement. The copy
filed herewith omits the information subject to the confidentiality request. Omissions are
designated as *. A complete version of this agreement has been filed separately with the Securities
and Exchange Commission.

1

 

DIRECT RESELLER ADDENDUM

TO THE MICROSOFT DIGITAL DISTRIBUTION AGREEMENT

ADDENDUM CONTACT AND NOTICES INFORMATION PAGE

Address for Notices. In addition to the notices required under the Agreement, the parties
must send any other communication required by this Addendum to the applicable business contact
indicated in the Business Contact Information table below, in accordance with the Contact and
Notices Information Page of the Agreement.

Business Contact Information

	 	 	 
	Microsoft	 	Company
	 
	 	 
	[*]
	 	[*]
	 
	 	 
	Responsible for: Office 2007
	 	Responsible for: Office 2007

 

			
	*	 	Confidential treatment has been requested for portions of this agreement. The copy
filed herewith omits the information subject to the confidentiality request. Omissions are
designated as *. A complete version of this agreement has been filed separately with the Securities
and Exchange Commission.

2

 

ADDENDUM TERMS AND CONDITIONS

     1. Additional Definitions. Capitalized terms used in and not otherwise defined in
this Addendum shall have the meaning given to them in the Agreement. The terms below shall have
the following meanings:

          (a) “End-User” means the user and ultimate consumer of a Product or, in the event of an
Upgrade, the validly licensed user of a Product and the ultimate consumer of an Upgrade.

          (b) “Price List” means the price list provided to Company by Microsoft from time to time
during the term of this Addendum and any applicable SOW for applicable Products and Upgrades. [*]

          (c) “Purchase” or “sale,” as used herein, includes the authorized transfer of a Microsoft
license in the ordinary course of Product distribution. Use of such terminology shall not be
deemed to waive, impair or otherwise affect the Intellectual Property rights of Microsoft.

          (d) “Upgrade” means the upgraded Product set forth on the Price List that an End-User obtains
through installation of certain encrypted upgrade software code in object code format provided by
Microsoft and/or the purchase and application of license keys and key controls.

          (e) “Website” means Company’s digital distribution program website(s) through which End Users
may purchase copies of Products or Upgrades.

     2. License Grant and Restrictions.

          (a) License Grant. For the duration of this Addendum, Microsoft grants to Company a
non-exclusive, limited, non-transferable, non-assignable license to resell copies of those Products
and Upgrades identified in the applicable SOW and to perform order transactions, digital downloads
and fulfillment functionalities in the manner described in the Agreement, this Addendum and the
applicable SOW.

          (b) Restrictions on the License and the Scope of E-Commerce Activities.

               (i) Company shall perform the E-Commerce Activities and apply its license rights under this
Addendum only through websites identified in each applicable SOW (“Approved Websites”), and shall
not move, delete or consolidate Approved Websites in a manner that has any material, adverse impact
on the sales of Microsoft Products or Upgrades without Microsoft’s written permission.

               (ii) Company shall sell and distribute to End-Users physically located in the geographical
territories designated in an applicable SOW.

     3. Development and Maintenance of Approved Websites. Company shall develop and
maintain the Approved Websites in accordance with the website guidelines and requirements detailed
in the applicable SOW. Microsoft must approve the content, branding, functionalities and form of
Approved Websites, such approval not to be unreasonably withheld or delayed. Company shall ensure
that the Approved Websites remain in compliance with all applicable laws and shall provide all
notices to End-Users as required by Microsoft from time to time. For the purposes of ensuring that
the Approved Websites remain in compliance with all applicable laws and regulations, Company may
alter or change the approved site upon notice to Microsoft. The parties may agree on marketing
materials and/or advertising materials related to the Products and Upgrades and other related
programs for inclusion on the Approved Websites. Company shall remove Products and Upgrades
(including any related materials and advertising) from an Approved Website immediately upon the
receipt of a written notice from Microsoft, if for any reason Microsoft decides to discontinue such
Product or Upgrade, or the use of the Company or Approved Website to resell such Products or
Upgrades. If a Product or Upgrade sold through the Approved Website is discontinued because of (i)
a change in applicable law or (ii) order of any court and/or legal action by a third party, Company
shall remove the Product or Upgrade (including any related materials and advertising) as soon as
possible but in any event no later than five (5) calendar days after receipt of notice from
Microsoft.

     4. No Modifications of Products or Materials. For the duration of the Agreement and this
Addendum, Company shall not decompile, disassemble or reverse engineer any Materials, Products or
Upgrades (except and only to the extent

 

			
	*	 	Confidential treatment has been requested for portions of this agreement. The
copy filed herewith omits the information subject to the confidentiality request. Omissions are
designated as *. A complete version of this agreement has been filed separately with the Securities
and Exchange Commission.

3

 

applicable law expressly permits, despite this limitation). Additionally, Company shall
not modify, alter, tamper with or reduce the content of any Materials, Products, Upgrades or
accompanying documentation in any way.

     5. End-User License Agreement. Company shall provide End-Users Microsoft End-User
License Agreement for the Products or Upgrades (in the form specified by Microsoft in writing and
updated by Microsoft from time to time at its sole discretion) to be provided with the applicable
Products or Upgrades which govern the End-User’s use and license of the Products or Upgrades.
Company shall not enter into any agreement with an End-User that contains terms that conflict with,
vary or modify the terms and conditions of the End-User License Agreement.

     6. Additional Privacy and Personal Information Requirements.

          (a) Collection and Use of Personal Information. Company shall comply with Section 7
of the Agreement with respect to the collection and use of all Personal Information collected by
Company through the Approved Websites. [*]

          (b) Privacy Notices. All Approved Websites must contain clear and conspicuous privacy
notices relating to the collection and use of Personal Information and must, unless otherwise
specified in an applicable SOW, comply, at a minimum, with all relevant guidelines contained at
http://members.microsoft.com/vendorguide or otherwise provided by Microsoft (as specified in
Section 7 of the Agreement). The privacy notices shall clearly specify that all Personal
Information collected through the Approved Websites and related to the Agreement, this Addendum and
any applicable SOW will be shared with Microsoft except as set forth in the following section.

          (c) Personal Information and Data Ownership Rights and Disclosure. [*]However,
Company, as the seller and merchant of record, shall solely own any payment information provided by
Customers, including credit card information. Company shall provide Microsoft, to the extent
necessary, access by Microsoft agents, Microsoft vendors, or other Microsoft-designated party to
such payment information in order to enable Microsoft or its vendors or agents to provide
additional support and service to Customers. [*] Microsoft acknowledges that it will handle such
Personal Information in compliance with any applicable laws. Except as expressly amended in this
Section, Company’s obligations under the Agreement with respect to Personal Information shall
remain unaffected.

          (d) Solicitation of Personal Information. Company may post language on the checkout
page of the Approved Websites, providing each End-User with an opportunity to elect to receive
solicitations from Microsoft or from Company only if Company’s solicitation is on Microsoft’s
behalf.

     7. Warranties to End-Users. Microsoft warrants the Products and Upgrades to End-Users
pursuant to the written limited warranty document or End-Users License Agreement Terms accompanying
the Products or Upgrades. Microsoft shall provide all End-Users technical support related to the
use of the Products or Upgrades.

     8. Customer Service for End-Users. Company will provide customer service to End-Users
relating to the Products or Upgrades purchase process and delivery transaction as set forth in the
applicable SOW.

     9. End-User Recovery Process. Company will (1) accept recovery requests from
End-Users via the Approved Websites, (2) collect the required recovery information and (3) process
the recovery of the Products or Upgrades or any digital component associated with them as specified
in the applicable SOW.

     10. Electronic Proof of Purchase. Company will provide an End-User with an electronic
proof-of-purchase confirmation for each completed purchase transaction on an Approved Website.

     11. Physical and Digital Fulfillment. When requested to do so in an applicable SOW,
Company shall provide End-Users with the necessary physical media and component provided for in the
applicable SOW. Additionally, Company shall provide End-Users electronically digital components
(e.g., digital license keys, control numbers, etc.) associated with the Products in accordance with
the requirements set forth in the applicable SOW.

     12. Inventory Management. Except as expressly stated in this Section 12, the
management and ownership right of Inventory obtained, created or developed under this Addendum and
an applicable SOW, while in the Company’s possession and under its control, shall be governed by
the Inventory Management and Terms and Conditions set forth in the Agreement. Notwithstanding any
terms to the contrary in the Inventory Management Terms and Conditions, rights, title

 

			
	*	 	Confidential treatment has been requested for portions of this agreement. The
copy filed herewith omits the information subject to the confidentiality request. Omissions are
designated as *. A complete version of this agreement has been filed separately with the Securities
and Exchange Commission.

4

 

and interest
in each copy of the Products or Upgrades sold to End-Users transfer to Company immediately upon
Company’s processing of the final payment by End-User and before the applicable copy or Upgrade and
any related components and media is delivered to the End-User. As between Company and the
End-User, and with respect to physical media and components shipped to End-Users located outside of
the United States from locations within the United States, title shall transfer from Company to
End-User upon delivery to the End-User. With respect to physical media and components shipped to
End-Users located within the United States, title shall transfer from Company to End-Users upon
delivery to the logistics carrier.

     13. Pricing to End-Users. For copies of the Products and Upgrades sold, licensed and
delivered pursuant to this Addendum and the applicable SOW, Company is the reseller of such copies
or Upgrades and, therefore, Company shall determine the price for selling each copy of the Products
or Upgrades to End Users in its sole discretion. Estimated Retail Prices provided in an applicable
SOW are for guidance only, and are not binding on Company. For each physical component request
from an End-User who has lost or misplaced the original physical component, Company may charge the
End-User the shipping and handling costs related to the physical delivery in amounts to be agreed
upon between Microsoft and Company. All Company’s prices to End-Users shall be in the currencies
specified by Microsoft in the applicable SOW. Company may not otherwise charge any End-User for
the physical delivery, except with Microsoft’s prior written consent.

     14. Collection from End-Users. Company shall be solely responsible for the collection
of any amounts due from End-Users for the resale, licensing and delivery of each copy of the
Product or Upgrade. [*]

     15. Reporting; Invoicing by Microsoft.

          (a) Invoicing by Microsoft. Microsoft, or one of its Affiliates or agents, will
invoice Company for the sale of Products and Upgrades and for the amounts due to Microsoft at the
frequency and in the manner specified in the SOW.

          (b) Sales Reports. Company shall submit to Microsoft on the schedule set forth in the
applicable SOW [*] a report detailing the sales, distributions and deliveries made by Company of
applicable Products and Upgrades during the preceding month (“Sales Report”) in a form and in the
manner described in each applicable SOW.

          (c) Payment Terms by Company and Remittance. Except for Disputed Invoices (as defined
below), Company shall pay all invoices to Microsoft within forty-five (45) calendar days from the
date of the invoice. Company shall remit all amounts due to Microsoft in accordance with the
remittance instructions provided by Microsoft in the applicable SOW or in writing by Microsoft.

          (d) Determining Applicable Price. For the purpose of any sales made under any
applicable SOW created under this Addendum, Company shall purchase the Product at the applicable
amount at the moment the sale is made, pursuant to the applicable SOW for such sale.

          (e) Currency. Payment by Company to Microsoft shall be in the currency(ies) specified
in the applicable SOW or the then-current Price List. Payments by Microsoft to Company shall be in
the currency(ies) specified in the applicable SOW.

          (f) Invoice Disputes. Company may dispute an invoice, in good faith, within thirty
(30) calendar days from the date of the invoice (“Disputed Invoices”). Microsoft and Company will
work together in good faith to resolve any disputes as soon as reasonably possible. Upon
resolution of the dispute, Company shall remit the amount owed within ten (10) calendar days from
date of the resolution of the dispute, if the Company is deemed to owe the disputed amount to
Microsoft.

     16. Payments by Company to Microsoft. Microsoft shall invoice and collect from
Company the amount set forth on the then-current Price List for each copy of a Product or Upgrade
purchased by an End-User via the Approved Website.

     17. [*]

 

			
	*	 	Confidential treatment has been requested for portions of this agreement. The
copy filed herewith omits the information subject to the confidentiality request. Omissions are
designated as *. A complete version of this agreement has been filed separately with the Securities
and Exchange Commission.

5

 

     18. Records and Audit. In accordance with and subject to Section 6 of the Agreement,
Company shall maintain proper books and records with respect to the sales, distribution and
delivery of copies of Products and Upgrades and Microsoft shall have the right to audit such books
and records.

     19. Taxes. With regard to Company’s obligation to collect transaction taxes from
End-Users, Company is ultimately responsible for the collection and remittance of all taxes from
End-Users and all taxes on those amounts which are its obligation by the operation of law. Company
shall pay all applicable value-added, sales and use taxes and other taxes levied on Company by a
duly constituted and authorized taxing authority on the software and services provided under this
Addendum and any applicable SOW with respect to the resale of Products and Upgrades to End-Users,
or any transaction related thereto in each country in which the services and/or property are being
provided or in which the transactions contemplated hereunder are otherwise subject to tax,
regardless of the method of delivery. Nothing in this Section alters or amends, the tax
obligations and rights of either Microsoft or Company set forth in the Agreement. However, in no
event shall Company be responsible for any transaction tax imposed on any sale made by the Company
where the incidence of the tax is on Microsoft.

     20. Effect of Termination. Upon termination or expiration of the Agreement or this
Addendum, and in addition to the rights and obligations set forth in the Agreement with respect to
termination and expiration, all rights granted to Company under this Addendum shall immediately
cease. Additionally, Company shall immediately cease all activity relating to this Addendum and
any applicable SOW. Company shall either (a) remove the Approved Website and any related links
from the Internet, or (b) post a notice to all Approved Website visitors stating that Company is no
longer authorized to resell the applicable Products. Microsoft may also redirect End-Users to an
alternative website. If Company receives any End-User customer support requests after the date of
termination or expiration, Company shall forward the requests to the Microsoft or a third party
designated by Microsoft. Company must pay any amounts due to Microsoft within sixty (60) calendar
days of termination or expiration.

     21. Entire Agreement. Upon execution by both parties, this Addendum (including
Exhibits and SOWs referenced on the Addendum Summary and Signature Page, attached to this Addendum,
or signed by the parties and expressly made a part of this Addendum) and the Agreement (including
all terms and conditions, policies and procedures, Exhibits and SOWs referenced on the Agreement
Summary and Signature Page, attached to the Agreement, or signed by the parties and expressly made
a part of the Agreement) supersedes all prior and contemporaneous communications, whether written
or oral, regarding the matters agreed to herein. This Addendum does not replace any separate
written license agreement between Microsoft and the Company or the Digital Distribution Services
Agreement dated January 1, 2006 between the parties. Except as otherwise expressly provided, in
the event of an irreconcilable conflict between this Addendum and the Agreement, this Addendum
controls with respect to any SOW expressly referencing this Addendum. In the event of a conflict
between this Addendum and any SOW created hereunder, the provisions of the SOW with respect to such
conflicting provision shall control over this Addendum, provided, however, that such conflicting
provisions expressly reference the specific Section in the Addendum that the parties intend to
amend or supersede AND the SOW is first approved in writing by Microsoft Legal & Corporate
Affairs (“LCA”), such approval to be manifested by the affixation of LCA’s stamp approving the
version of the SOW actually signed by Microsoft. In the event such LCA approval is not secured and
the conflicting provision does not reference this Addendum, the provisions of this Addendum shall
control and the provisions contained in the SOW shall be voidable at Microsoft’s election.

     22. No Further Amendment. Except as expressly modified by this Addendum, the
Agreement shall remain unmodified and in full force and effect.

END OF ADDENDUM TERMS AND CONDITIONS

 

			
	*	 	Confidential treatment has been requested for portions of this agreement. The
copy filed herewith omits the information subject to the confidentiality request. Omissions are
designated as *. A complete version of this agreement has been filed separately with the Securities
and Exchange Commission.

6exv10w27

Exhibit 10.27

OMNIBUS AMENDMENT TO MICROSOFT DIGITAL DISTRIBUTION AGREEMENT

Certain confidential information contained in this document, marked by asterisks, has been omitted

and filed separately with the Securities and Exchange Commission pursuant to Rule 24b-2 of the

Securities Exchange Act of 1934, as amended.

AMENDMENT SUMMARY AND SIGNATURE PAGES

This Omnibus Amendment (“Amendment”) to the Microsoft Operations Digital Distribution Agreement is
entered into between:

Microsoft Corporation

     A corporation organized under the laws of the State of Washington, U.S.A. (“Microsoft”)

AND

Digital River, Inc.

     A company organized under the laws of the State of Delaware, U.S.A. (“Company”)

	 	 	 
	Amendment Effective Date
	 	This Amendment shall become effective on the
latest of the three signature dates set forth
below and, unless terminated earlier or
otherwise specified in the applicable
attachment, expires on August 31, 2009 (the
“Amendment Expiration Date”).

	 	 	 

	Purpose and Scope:
	 	Company and Microsoft are parties to a Microsoft
Digital Distribution Agreement dated September
1, 2006 (as the same may have been amended,
supplemented or otherwise modified from time to
time, the “Agreement”), pursuant to which
Company has provided E-Commerce Activities to
Microsoft (defined below) in accordance with the
terms of the applicable SOWs.

	 	 	 

	 	 	In addition to the E-Commerce Activities
originally contemplated in the Agreement,
Company resells and distributes, as a seller of
record, certain Microsoft Products to End-Users
under the terms of a Direct Reseller Addendum to
the Agreement dated September 1, 2006 between
Company and Microsoft (as the same may have been
amended, supplemented or otherwise modified from
time to time, the “Direct Reseller Addendum”).

	 	 	 

	 	 	[*]

	 	 	 

	 	 	The parties have now agreed on (a) a new pricing
methodology to be applied to the E-Commerce
Activities performed by Company, (b) the
addition of certain optional services that may
be selected by Microsoft where Microsoft has
opted for “Tier 2” pricing (as defined in
Exhibit F attached hereto) in connection with
any E-Commerce Activities under the applicable
SOW, and (c) new service level standards that
will apply to the E-Commerce Activities where
“Tier 2” pricing is selected, and (d) certain
monetary penalties that will be assessed if
Microsoft terminates the Office 2007 Digital
Distribution Statement of Work to the Direct
Reseller Addendum (as the same may have been
amended, supplemented or otherwise modified from
time to time, the “Office SOW”) for convenience
prior to the SOW Expiration Date specified
therein.

	 	 	 

	 	 	Accordingly, this Amendment:

	 	 	 

	 	 	     (1) [*]

	 	 	 

	 	 	     (2) Adds a new marketForce Services Addendum to
the Agreement describing the terms and
conditions on which Company has agreed to
provide certain, additional E-Commerce
Activities where Microsoft selects “Tier 2”
pricing for E-Commerce Activities to be provided
by Company; and

	 	 	 

	 	 	     (3) [*]

This Amendment consists of the following:

 

			
	*	 	Confidential treatment has been requested for portions of this agreement. The copy
filed herewith omits the information subject to the confidentiality request. Omissions are
designated as *. A complete version of this agreement has been filed separately with the Securities
and Exchange Commission.

 

 

OMNIBUS AMENDMENT TO MICROSOFT DIGITAL DISTRIBUTION AGREEMENT

	•	 	This Amendment Summary and Signature Page
	 
	•	 	The Amendment Terms and Conditions
	 
	•	 	Attachment 1: [*]
	 
	•	 	Attachment 2: New marketForce Services Addendum to the Agreement
	 
	•	 	Attachment 3: [*]

Microsoft and Company enter into this Amendment by signing below.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MICROSOFT CORPORATION	 	 	 	DIGITAL RIVER, INC.	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Signature:

	 	 	 	 	 	 	 	Signature:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Print Name:
	 	 	 	 	 	 	 	Print Name:	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Title:
	 	 	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Date:
	 	 	 	 	 	 	 	Date:	 	 	 	 
	 

	 	 	 	 
	 	 	 	 	 	 	 	 	 	 

 

			
	*	 	Confidential treatment has been requested for portions of this agreement. The copy
filed herewith omits the information subject to the confidentiality request. Omissions are
designated as *. A complete version of this agreement has been filed separately with the Securities
and Exchange Commission.

 

 

AMENDMENT TERMS AND CONDITIONS

     1. [*]

     2. Addition of New marketForce Services Addendum to the Agreement. A new
marketForce Services Addendum in the form of Attachment 2 to this Amendment is hereby added
to the Agreement, effective as of the date hereof. The terms and conditions in the marketForce
Services Addendum shall apply only where Microsoft has selected “Tier 2” pricing (as defined in
Exhibit F to the Agreement) for E-Commerce Activities under the terms of the applicable SOW.

     3. Definitions. Capitalized terms used in and not otherwise defined in this Amendment
or the attachments shall have the meaning given to them in the Agreement or the Direct Reseller
Addendum, as applicable.

     4. No Further Amendment. Except as expressly modified by this Amendment, the
Agreement shall remain unmodified and in full force and effect.

     5. Counterparts. This Amendment may be executed in any number of counterparts, each
of which shall be deemed an original and as executed shall constitute one agreement, binding on
both parties even though both parties do not sign the same counterpart.

END OF AMENDMENT TERMS AND CONDITIONS

 

			
	*	 	Confidential treatment has been requested for portions of this agreement. The
copy filed herewith omits the information subject to the confidentiality request. Omissions are
designated as *. A complete version of this agreement has been filed separately with the Securities
and Exchange Commission.

 

 

ATTACHMENT 1

[*]

 

			
	*	 	Confidential treatment has been requested for portions of this agreement. The
copy filed herewith omits the information subject to the confidentiality request. Omissions are
designated as *. A complete version of this agreement has been filed separately with the Securities
and Exchange Commission.

 

 

ATTACHMENT 2

MARKETFORCE SERVICES ADDENDUM

TO

MICROSOFT OPERATIONS DIGITAL DISTRIBUTION AGREEMENT

     This Addendum supplements and, to the extent applicable amends, the Agreement and the
Direct Reseller Addendum with respect to all statements of work whereby Microsoft selected the
marketForces services as part of the E-Commerce Activities under an applicable SOW.

     1. General Terms Applicable to All marketForce Services.

          (a) Selection of marketForce Services. If Microsoft requests that “Tier 2” pricing apply
in connection with Company’s performance of E-Commerce Activities, Microsoft shall have the
right to request that Company provide one or more marketForce Services by so indicating in the
applicable SOW. Company agrees to provide such marketForce Services in accordance with the
terms and conditions of the Agreement, the applicable SOW and the applicable Marketing Plan (as
defined below), at no additional cost to Microsoft (other than agreed upon pass-through costs).

          (b) Marketing Plans. If Microsoft selects any marketForce Service in the manner described
in subsection (a), the specific activities to be carried out by Company as part of such
marketForce Service shall be set forth in one or more marketing plans, which may be included in
the applicable SOW or external to the SOW. Each marketing plan agreed upon by Microsoft and
Company in connection with a marketForce Service (a “Marketing Plan”) shall contain service
level agreements, metrics, and implementation timelines acceptable to Microsoft and such
additional terms and conditions as may be requested by Microsoft. Company shall strictly comply
with the terms of each Marketing Plan once agreed.

          (c) Liability to Third Parties. The performance of certain marketForce Services may
require Company to enter into (or utilize existing) agreements with one or more third parties
(including Customers). Company acknowledges that it will enter into such agreements in its own
name and not as agent for Microsoft. Microsoft shall have no liability to any third party under
or in connection with any such agreement, and Company agrees that Company’s role as an
independent contractor shall be made clear to each of its customers and counterparties. Company
shall not make any commitment on behalf of Microsoft in any such agreement. Company agrees to
defend Microsoft, its affiliates, and directors, officers, employees and agents, from and
against Third Party Claims to the extent arising out of or in connection with Company’s (i)
compliance or noncompliance with any such third-party agreement (including any Provider
Agreement or Affiliate Program Agreement), (ii) failure to comply with any applicable law, rule
or regulation, or (iii) any other act or omission of Company in connection with the marketForce
Services.

          (d) Term and Termination. The Term of any marketForce Service selected hereunder shall
commence on the effective date of the applicable SOW and shall continue until the earlier of (1)
the expiration or termination of such SOW, (2) termination of the Agreement, or (3) the date
that Microsoft gives written notice to Company that it desires Company to cease performing such
marketForce Service. Any termination of the marketForce Services provided hereunder shall not
affect the Parties’ rights and obligations (including without limitation any payment
obligations) with respect to the particular Service prior to such termination or the
effectiveness of the applicable SOW.

          (e) Effect of Termination. Upon termination or expiration of the Agreement or this
Addendum, and in addition to the rights and obligations set forth in the Agreement with respect
to termination and expiration, all rights granted to Company under this Addendum shall
immediately cease and Microsoft and Company shall work together in good faith to terminate or
transition the marketForce Services in a manner that is not disruptive to Microsoft or its
customers. If Microsoft notifies Company in writing, pursuant to Section 1(d)(3) above, that it
desires Company to cease performing all marketForce Services under a particular SOW, but the SOW
otherwise remains in effect, the parties agree that “Tier 1” pricing shall apply to any
E-Commerce Activities provided by Company under such SOW after the date of Microsoft’s notice.

     2. marketForce Services.

 

			
	*	 	Confidential treatment has been requested for portions of this agreement. The
copy filed herewith omits the information subject to the confidentiality request. Omissions are
designated as *. A complete version of this agreement has been filed separately with the Securities
and Exchange Commission.

 

 

     If Microsoft chooses to select any marketForce Service, the terms and conditions
applicable to such marketForce Service set forth below shall apply and supplement the terms and
conditions of the Agreement and the applicable SOW. The marketForce Services selected by
Microsoft shall be deemed E-Commerce Activities for all purposes of the Agreement.

o Deferred Payment Service.

I. Description of Deferred Payment Option. If Microsoft selects the Deferred Payment
Service in connection with any SOW, Company shall provide to qualifying consumer Customers of
the Company hosted Microsoft -branded Site described in the SOW (the “Selected Site”) the
ability to purchase Products with deferred billing by Company (the “Deferred Payment Option”).
The payment terms on which Company will offer the Deferred Payment Option to its consumer
Customers shall be agreed upon by Microsoft and Company prior to its being offered on the
Selected Site(s). Company will evaluate the creditworthiness of each applicant for the Deferred
Payment Option and will be solely responsible for making the decision to extend or deny the
Deferred Payment Option, in Company’s sole discretion. Company shall comply with all applicable
laws, rules and regulations in connection with the offering and implementation of the Deferred
Payment Option, and shall provide all applicable notices required in connection with any adverse
credit decision or other action. Microsoft acknowledges that Company requires that Customers
requesting the Deferred Payment Option present a valid credit card in good standing at the time
of the order. Microsoft further acknowledges that Company may initiate a credit card
authorization at the time of the order to verify that the Customer’s credit card is valid and in
good standing at the time of the order, so long as the Customer has consented thereto.

II. Costs and Credit Risk. Each approved deferred payment transaction shall be
considered an “Order” for purposes of the applicable SOW. Company alone shall bear the risk of
collection on any accounts on which Company elects to sell Products with the Deferred Payment
Option. [*]

o Paid Search Service

I. Definitions. The following definitions shall apply to this marketForce Service:

          (a) Advertisement-Sourced Purchase: The purchase of Products by consumer Customers directed
to a Selected Site through a Program-Placed Advertisement.

          (b) Comparison Search Listing: Any comparison search engine listing placed with a Provider
through a Program by Company.

          (c) CSE-Sourced Purchase: The purchase of Products by consumer Customers directed to the
Company Selected Site through a Comparison Search Listing.

          (d) Program: The marketing and promotional program of a Provider for the placement of
advertising and comparison shopping engine listings, contextual advertisements, and/or banner
advertisements targeted to potential Customers based on the key words included in the potential
Customers’ search of the Provider’s search engine as described in the Provider Agreement with
that Provider.

          (e) Program-Placed Advertisement: Any advertisement relating to Microsoft products that are
placed with a Provider through a Program by Company in accordance with the applicable SOW and/or
Marketing Plan.

          (f) Provider: A third party subject to a Provider Agreement with Company.

          (g) Provider Agreement: Those agreements between Company and Providers for the provision
of Internet text searching capabilities, comparison shopping capabilities, contextual
advertisements, or banner advertisements through Programs.

II. Placements. If Microsoft selects the Paid Search Service in connection with any
SOW, Company shall utilize its Provider Agreements with the Providers to place Program-Placed
Advertisements under the Providers’ respective Programs with the goal of maximizing
Advertisement-sourced Purchases and CSE-Sourced Purchases. The scope of the paid Search
Services to be performed by Company and the content of any advertisement or listing placed with
a Provider shall be subject to approval by Microsoft, in its sole discretion (including via the
applicable Marketing Plan).

 

			
	*	 	Confidential treatment has been requested for portions of this agreement. The
copy filed herewith omits the information subject to the confidentiality request. Omissions are
designated as *. A complete version of this agreement has been filed separately with the Securities
and Exchange Commission.

 

 

III. Confidentiality. Without limiting Section 7 or the Agreement or any Non-Disclosure
Agreement signed between the relevant parties (“NDA”), Microsoft acknowledges and agrees that
Providers are authorized to make use of any and all materials provided by Microsoft or Company
in connection with Programs, subject to the terms and conditions of each individual Provider
Agreement. To the extent Microsoft is provided with, or gains access to, any of Company’s
proprietary processes related to the Programs, such processes shall be considered the
confidential information of the Company for purposes of the NDA.

o Managed Email Service

I. Definitions.

     The following definitions shall apply to this Service:

          (a) Email-Sourced Purchase: The purchase of Products by consumer Customers directed to a
Selected Site through a Managed Email.

          (b) Managed Email Activities: The activities performed by Company (either directly or
through BlueHornet Networks, Inc., an Affiliate of Company, as Company’s permitted
subcontractor) with respect to certain email campaigns designed to promote sales of Microsoft’s
Products available through the Selected Site(s), which may consist of the following: (i) name
capture consulting; (ii) strategy consulting regarding contact frequency, contact timing, email
content/positioning, and scheduled/triggered programs; (iii) creative development for the
format, positioning, and copy of the email content and subject line; (iv) creation of landing
strategies and page optimization; (v) optimization services related to contact frequency,
contact timing, email content, messaging, subject lines, and offers; (vi) email personalization
where appropriate; (vii) tracking; (viii) quality assurance testing; (ix) email campaign
execution (list loading, suppressions, application of predefined filters, and sending of Managed
Emails); (x) delivery management; and (xi) Managed Email reporting and analysis.

          (c) Managed Email: An email message sent by Company or its permitted subcontractor in
connection with the Managed Email Activities.

II. Default Language. U.S. English, unless otherwise specified in the applicable
Marketing Plan.

III. Managed Email Activities. If Microsoft selects the Managed Email Service in
connection with any SOW, Company (either directly or through BlueHornet Networks, Inc., an
Affiliate of Company, as Company’s permitted subcontractor) shall provide the Managed Email
Activities to Microsoft in order to facilitate sales of products through the Selected Site(s).
The specific Managed Email Activities shall be agreed upon by Microsoft and Company in writing
(including any Marketing Plan). Microsoft shall provided templates for all email campaigns to
be implemented by Company, and Company shall use the Microsoft -sponsored templates without
modification unless expressly permitted by Microsoft. Company will assist Microsoft in
optimizing such email templates based on Company and its subcontractor’s expertise and will
provide the ability for light personalization of such emails (e.g., first name, last name) if
requested by Microsoft. Microsoft will approve the form of Managed Emails prior to deployment
but shall have no responsibility for ensuring that the transmission of any Managed Email
complies with applicable law.

     Upon execution of this SOW, Microsoft shall provide to Company (a) a customer email list
for use in connection with the Managed Email Activities (the “Customer List”); and (b) any
necessary suppression lists (including without limitation unsubscribe lists, opt out lists
undeliverable lists, and invalid address lists). Microsoft represents and warrants that, as of
the date a Customer List is first provided to Company, that Customer List contains contact
information only for those individuals who have expressly consented to Microsoft to receive
email communications from Microsoft, which consent is in accordance with all applicable laws,
rules and regulations. Company shall be solely responsible for applying all suppression lists to
the Customer Data and ensuring that no Managed Emails are sent to individuals on any suppression
list provided to Company by Microsoft.

 

			
	*	 	Confidential treatment has been requested for portions of this agreement. The
copy filed herewith omits the information subject to the confidentiality request. Omissions are
designated as *. A complete version of this agreement has been filed separately with the Securities
and Exchange Commission.

 

 

o Managed Affiliate Service

I. Definitions. The following definitions shall apply to this marketForce Service:

          (d) Affiliate: Those entities that have entered into an agreement with an Affiliate
Network Provider that allows such entities to direct consumers to product vendors.

          (e) Affiliate Network Provider: A third party that provides the ability for Company to
enter into agreements with Affiliates to refer consumers of Microsoft’s Products to Selected
Sites.

          (f) Affiliate Program: A program facilitated by an Affiliate Network Provider in which
Affiliates direct potential purchasers of Microsoft’s Products to Selected Sites.

          (g) Affiliate Program Agreement: The written agreement between Company and an Affiliate
Network Provider.

          (h) Affiliate-Referred Purchases: The purchase of Products by consumer Customers directed
to Microsoft’s Store by an Affiliate through an Affiliate Program.

          (i) Managed Affiliate Program or the Program: Company’s management of the Affiliate
Programs.

II. Advisory Services. If Microsoft select the Managed Affiliate Service in connection
with any SOW, Company shall enter into Affiliate Program Agreements and implement the Affiliate
Programs in the manner agreed upon by Company and Microsoft in the applicable Marketing Plan.
Microsoft shall have the right and opportunity to review and approve the content of any
advertisement or link to be used by an Affiliate in connection with its Affiliate Program prior
to such use. Company shall strictly comply with Microsoft’s instructions regarding any aspects
of the Managed Affiliate Service without limiting Section 7 of the Agreement or the NDA.
Microsoft acknowledges and agrees that each Affiliate Network Provider is authorized to make use
of any and all materials provided by Microsoft or Company in connection with an Affiliate
Program.

III. Confidential Information. To the extent Microsoft is provided with, or gains
access to, any of Company’s proprietary processes related to Company’s management of Affiliate
Programs, such processes shall be considered confidential information of the Company pursuant to
the NDA.

o Site Optimization Service

I. Definitions. The following definitions shall apply to the Site Optimization Service:

          (j) Challenger Page: A web page (or group of web pages, which shall be construed as a
single web page for the purposes of this Addendum) corresponding to the Control Page that has
been redesigned in connection with the Company Optimization Service, and which is Tested against
the Control Page.

          (k) Company Optimization Service: The testing and web page optimization services performed
by Company pursuant to this Addendum, the applicable SOW, or the Marketing Plan.

          (l) Control Page: The individual web page (or series of web pages as agreed upon by
Company and Microsoft, which shall be construed as a single web page for the purposes of this
Addendum) on the Selected Site(s) as it exists at the time Testing for that page is commenced.
Microsoft shall give notice to Company of any change in a Control Page during a Test Period and,
to the extent practicable, prior to such change.

          (m) Optimization Software: The then-current version of (a) the proprietary mbox.js and
adbox software, and (b) the proprietary optimization application software, provided or used by
Company pursuant to this Addendum, which shall be solely owned by Company and/or its
subcontractor.

          (n) Test or Testing: The process for determining the Test Lift for individual Challenger
Pages, which shall run until the earlier of (a) the date on which Test data for any Challenger
Page part of such Test becomes statistically significant at a Ninety Percent (90%) confidence
level, or (b) the date on which it becomes apparent that Test Lift for all

 

			
	*	 	Confidential treatment has been requested for portions of this agreement. The
copy filed herewith omits the information subject to the confidentiality request. Omissions are
designated as *. A complete version of this agreement has been filed separately with the Securities
and Exchange Commission.

 

 

Challenger Pages subject to the Test has not, and will most likely not, produce a
statistically significant winner (such period for each Test, the “Test Period”).

          (o) Testing and Optimization Applications: The following web-based applications:

               (i) The Company provided web-based application that allows a party to manage the Visitor
pool to divide website traffic into groups for Testing, manage such groups, and track success of
a given campaign.

               (ii) The Company provided web-based application that allows a party to establish settings
for delivery of default content.

               (iii) The Company provided web-based application that allows Testing for an unlimited
number of web pages (or series of web pages) on Selected Sites.

               (iv) The Company provided web-based application that, when the pages of a Selected Site(s)
are displayed on the Visitor’s browser, the pages communicate with Company’s campaign servers
via the Optimization Software.

               (v) The Company provided web-based conversion optimization application that allows a party
to specify content for Testing.

          (p) Test Lift: The Revenue Per Visitor for a Challenger Page compared to that of the
Control Page, arrived at by taking the Revenue Per Visitor for a Challenger Page during a Test
Period, divided by the Revenue Per Visitor for the Control Page during the same Test Period,
minus 1, expressed as an integer carried out to two decimal places rounded to the nearest
hundredth.

          (q) Visitor: An individual, business entity or other legally recognized entity that visits
a website and who may enter into a transaction in the manner described more specifically in the
Agreement.

II. In General. Company offers the Company Optimization Service, through which tests
may be run of various web site layouts in order to obtain objective data regarding which
combinations of content, offers, and positioning are likely to improve web site performance. If
Microsoft selects the Site Optimization Service in any applicable SOW, Company shall implement
and provide the Company Optimization Service for Selected Sites. Immediately prior to Testing
of each page or series of pages, Company and Microsoft shall mutually agree upon the web pages
(or series of pages) on the Selected Sites to be optimized through the Company Optimization
Service. For each Control Page, Company, with input from Microsoft, shall develop one or more
sets of Challenger Pages for Testing by Company (e.g., page layout changes, page flows, new
navigation, etc.). Company shall obtain Microsoft’s approval in writing or by email of the
Challenger Pages and the test plan prior to the commencement of Testing of those Challenger
Pages. Company shall comply with any requirements of Microsoft in implementing the Company
Optimization Services and shall immediately cease from providing any Company Optimization
Service at Microsoft’s request. Microsoft shall be deemed to own the results of any Testing
performed by Company and all data collected by Company in connection therewith.

III. Microsoft Deliverables; Compliance With Intellectual Property Provisions. When
requested by Company, Microsoft shall (a) provide such data as is agreed upon by the parties in
the applicable Marketing Plan to facilitate the implementation of the Site Optimization
Services; (b) review and accept or reject creative assets; and (c) provide Testing execution
assistance and feedback on reporting analysis as reasonably requested by Company. In addition,
Microsoft shall place Optimization Software on Microsoft-hosted pages which are subject to
Testing in order to allow for Company to perform Testing of such pages and generate Test results
once mutually acceptable license terms for such Optimization Software have been established in
writing. Company shall in all events comply with Section 5 of the Agreement in connection with
its performance of any Company Optimization Services.

o Free Trial Optimization

I. Free Trial Activities. If Microsoft selects the Free Trial Activities in connection
with any SOW, Company shall make available to Customers of the Selected Sites a program through
which Customers may obtain and use certain of Microsoft’s Products mutually agreed upon by
Company and Microsoft (each such Product, a “Trialed Product”) for a fixed period of time (such
fixed period of time, the “Free Trial Period”), where Company will automatically complete the

 

			
	*	 	Confidential treatment has been requested for portions of this agreement. The
copy filed herewith omits the information subject to the confidentiality request. Omissions are
designated as *. A complete version of this agreement has been filed separately with the Securities
and Exchange Commission.

 

 

purchase transaction for any Customer who has not canceled his/her trial of Trialed Products
prior to the end of the Free Trial Period. The terms on which Company shall provide the Free
Trial Activities shall be set forth in the applicable Marketing Plan, and Company agrees to
strictly comply therewith. Microsoft acknowledges that Company requires that Customers
requesting Trialed Products for trial through the Program present a valid credit card in good
standing at the time of the request. Microsoft further acknowledges that Company may initiate a
credit card authorization at the time of the request to verify that the Customer’s credit card
is valid and in good standing at the time of the request, so long as the Customer has consented
thereto. Company shall place all required notices and disclaimers on the Selected Sites to
inform Customers of the terms and conditions of the Program.

     Microsoft agrees and acknowledges that a live executable file (not trial version) will be
delivered to a Customer for trial at the commencement of the Free Trial Period as part of the
Program, in each case in accordance with the Marketing Plan and Microsoft’s instructions.
Company shall not modify, orally or in writing, the terms of any end user license agreement
included with the Trialed Products by or on behalf of Microsoft.

     Company shall provide Customers with the ability to cancel their trial of Trialed Products
prior to the end of the Free Trial Period, in which case Customers shall not be billed for the
Trialed Products. As of the end of the Free Trial Period, in the event that an Customer has not
canceled his/her trial of any of the Trialed Products, Company shall complete the Customer’s
purchase transaction for such Trialed Products by settling the total price of all such Trialed
Products on the credit card of that Customer and in accordance with any disclosures made to the
Customer and applicable law.

     Unless otherwise provided in the applicable Marketing Plan, Microsoft agrees and
acknowledges that returns and refund requests will be granted to Customers up to thirty (30)
calendar days after the date of the Customer’s purchase of the Trialed ProductsCustomers who
wish to cancel their trial through the Program will be required to execute an Electronic Letter
of Destruction in form and content acceptable to Microsoft similar to Company’s current practice
for returns and refunds.

o Fireclick Web Analytics — Bundled Services

I. General Obligations. If requested by Microsoft in connection with any SOW, Company
shall provide such Analytics Services to Microsoft as are specified in the applicable SOW and/or
Marketing Plan. To the extent necessary, Microsoft will enable the Selected Site(s) to use the
agreed upon Analytics Services by adding the appropriate software code provided by Fireclick to
the Selected Site(s). At Microsoft’s request, the license of the Fireclick software and any
other Company or third-party Intellectual Property provided by Company to Microsoft in
connection with the performance of the Analytics Services shall be documented in a separate
license agreement in form and content acceptable to Microsoft, and such software and
Intellectual Property shall, in any event, comply with the terms of Sections 5(c)(v) and 5(d) of
the Agreement. Absent any such request, the respective rights and obligations of the parties in
respect of any Intellectual Property utilized in connection with the performance of the
Analytics Services shall be governed by Section 5 of the Agreement.

Analytics Services shall be provided for the number of Selected Sites agreed upon by Microsoft
and Company in the applicable Marketing Plan. Company will provide reasonable “train the
trainer” training to Microsoft personnel, at times and at locations mutually agreed upon by
Company and Microsoft (including in the applicable Marketing Plan). Company will provide
support to Microsoft regarding the Analytics Services during regular business hours, Central
Standard Time. Microsoft will cooperate as reasonably requested by Company for purposes of
allowing Company to render such support and otherwise perform the Analytics Services as
specified in the applicable Marketing Plan.

o SoftwarePassport 

I. General Obligations. If requested by Microsoft in connection with any SOW, Company
shall promptly deliver SoftwarePassport to Microsoft and shall apply any applicable
SoftwarePassport Components and any other functionalities agreed upon by the parties to the
Products identified by Microsoft, in each case in accordance with applicable SOW and/or
Marketing Plan. At Microsoft’s request, the license of SoftwarePassport and any other Company or
third-party Intellectual Property provided by Company to Microsoft in connection with the
performance of the related services shall be documented in a separate license agreement in form
and content acceptable to Microsoft, and such software and Intellectual Property shall, in any
event, comply with the terms of Sections 5(c)(v) and 5(d) of the Agreement. Absent any such
request, the respective rights and obligations of the parties in respect of any Intellectual
Property provided by Company to Microsoft or utilized in connection with the performance of the
E-Commerce Activities related to SoftwarePassport shall be governed by

 

			
	*	 	Confidential treatment has been requested for portions of this agreement. The
copy filed herewith omits the information subject to the confidentiality request. Omissions are
designated as *. A complete version of this agreement has been filed separately with the Securities
and Exchange Commission.

 

 

Section 5 of the Agreement. Microsoft acknowledges that any DRM Component Engine other than the
SoftwarePassport DRM Component Engine is licensed by Company from third parties and sublicensed
to Microsoft hereunder, and that Company (rather than such third party) is responsible for the
provision of support relating to the installation and use of such software.

Company will provide Microsoft with any technical assistance (including without limitation
providing all necessary .dll or other files for Microsoft to incorporate into the Products)
necessary to enable and implement those Components and functionalities identified in the
applicable SOW and/or Marketing Plan into the applicable Products.

II. Components. SoftwarePassport is comprised of the following components (each, a
“Component,” and in any combination, “Components,”) which will be provided to Microsoft for use
in Wrapped Products if specified above:

	 	•	 	The “DRM Component,” if embedded in a Product, imposes technological restrictions on
the use of that Wrapped Product, including the ability to specify a maximum useable
period for that Wrapped Product and to disable certain functionality within that Wrapped
Product. The functionality which may be utilized to create Wrapped Products through the
DRM Component may differ depending on the DRM Component Engine specified and is
specified in the documentation for the selected DRM Component Engine.
	 
	 	•	 	The “User Metrics & Communications Component,” if packaged with a Wrapped Product,
permits Company (or its authorized designee) to collect, analyze and provide reports to
Microsoft of data regarding End Users’ uses of that Wrapped Product (the “Usage Data”),
and facilitates contacts with, and transmission of information to, End Users from within
that Wrapped Product. Company represents and warrants that Usage Data shall not contain
Personal Information of End Users or any End User credit card information. The use,
maintenance, storage and onward disclosure of transaction data regarding the sale or
licensing of Products to End Users, including any Personal Information of End Users
contained therein, shall remain subject to the terms of the Agreement and applicable
laws and regulations. Unless otherwise specified in the applicable SOW or Marketing
Plan, all Usage Data collected through the User Metrics & Communications Component shall
be deemed to be owned by Microsoft and the confidential information of Microsoft for
purposes of the NDA. Notwithstanding the foregoing, but subject to the terms of the
Agreement and any limitations contained in the applicable SOW and/or Marketing Plan,
Microsoft consents to the collection, possession and use of such Usage Data by Company
(or its authorized designee) solely in connection with the performance of the E-Commerce
Activities. The parties agree to work together in good faith to develop any notices,
disclaimers, consents and waivers on the applicable Site or in the Wrapped Product which
are required by applicable law or deemed necessary by Microsoft, (i) sufficient to
notify End Users about the collection of Usage Data, (ii) sufficient to obtain the
unambiguous consent of an End User to receive contacts and/or information from Microsoft
(and, if Microsoft so consents, Company) from within the Wrapped Product, and (iii)
sufficient to permit the transfer of information concerning a customer or End User,
including without limitation Usage Data, to Company (or its authorized designee) in
order to permit Company to perform the relevant E-Commerce Activities.

III. Optional Programs.

	 	•	 	If Trial Optimization Services are selected by Microsoft in connection with any SOW,
Company shall provide Trial Optimization Services for the Wrapped Products specified by
Microsoft in the applicable Marketing Plan.
	 
	 	•	 	If Country-Based Licensing is selected by Microsoft in connection with any SOW,
Company shall provide Country-Based Licensing for the Wrapped Products specified by
Microsoft in the applicable Marketing Plan.

IV. Definitions. The following definitions shall apply to this marketForce Service:

          (a) Activation: The receipt of a license key from Company’s activation server, which
enables use of the Wrapped Product without limitations imposed by SoftwarePassport functionality
in accordance with the EULA for that Wrapped Product.

          (b) Conversion: The purchase by an End User of the right to use a Wrapped Product without
limitations imposed by SoftwarePassport functionality, in accordance with the terms of the EULA
for that Wrapped Product. The Conversion of a Wrapped Product which is processed by Company
shall be considered the sale of that Product to an End User by Company.

          (c) Country-Based Licensing: Functionality which, if provided by Company, enables
Microsoft to control Activation of a Wrapped Product on a country-by-country basis, in
accordance with Microsoft’s EULA for that Wrapped Product and with country-specific Product
pricing.

 

			
	*	 	Confidential treatment has been requested for portions of this agreement. The
copy filed herewith omits the information subject to the confidentiality request. Omissions are
designated as *. A complete version of this agreement has been filed separately with the Securities
and Exchange Commission.

 

 

          (d) Optional Program(s): Trial Optimization Services, Country-Based Licensing, or both.

          (e) Trial Optimization Services: A service which, if provided by Company, enables Company
to monitor the use and Conversion of Wrapped Products in order to provide Microsoft with an
assessment of Conversion rates.

          (f) SoftwarePassport: The Company-provided functionality which enables Microsoft to impose
technical restrictions on the use of a Wrapped Product and/or to provide certain data related to
the usage of a Wrapped Product.

          (g) Wrap: Each instance of the conversion of a Product into a Wrapped Product using
SoftwarePassport. (For the avoidance of doubt, re-Wrapping due to (a) a new or updated version
of the Product, (b) changes to the Product attributes or details in a Wrapped Product, or (c) a
new or updated version of SoftwarePassport, shall be considered a separate Wrapping of that
Product.)

          (h) Wrapped Product: A Product into which certain Components and functionality of
SoftwarePassport have been embedded, and/or with which certain Components and functionality of
SoftwarePassport have been packaged.

 

			
	*	 	Confidential treatment has been requested for portions of this agreement. The
copy filed herewith omits the information subject to the confidentiality request. Omissions are
designated as *. A complete version of this agreement has been filed separately with the Securities
and Exchange Commission.

 

 

ATTACHMENT 3

[*]

 

			
	*	 	Confidential treatment has been requested for portions of this agreement. The
copy filed herewith omits the information subject to the confidentiality request. Omissions are
designated as *. A complete version of this agreement has been filed separately with the Securities
and Exchange Commission.

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