Document:

EX-10.17.8

 

EXHIBIT
10.17.8

CONFIDENTIAL
TREATMENT REQUESTED

EXECUTION COPY

CONTENT ATTACHMENT NO. 2 TO

CONTENT DISTRIBUTION ADDENDUM TO

SYNACOR MASTER SERVICES AGREEMENT

NETPAK

     This Attachment No. 2 dated as of June 6, 2005 (this “Attachment No. 2”) to the Content
Distribution Addendum to the Synacor Master Services Agreement dated July 13, 2004 (the
“Agreement”) is entered into between Synacor, Inc. (“Synacor”) and ACC Operations, Inc. (“Client”),
and forms a part of, and is subject to, the Agreement. Capitalized terms used but not defined in
this Attachment No. 2 shall have the meanings ascribed to them in the Agreement.

WITNESSETH:

     WHEREAS, Synacor and Client entered into the Agreement to establish the terms and conditions
under which Synacor provides to Client certain web hosting services, including, without limitation,
making certain content available on the Client Branded Portal; and

     WHEREAS, the Agreement contemplates Synacor and Client completing separate attachments to the
Content Distribution Addendum detailing specific content offerings and additional fees associated
with such offerings in the event that Client desires to include premium content on Client’s HSI
customer home page, currently located at http://www.adelphia.net (“Client’s Web-site”); and

     WHEREAS, the Parties desire by way of this Content Attachment No. 2 to set forth the specific
content offering and pricing with respect to certain content to be known as “Adelphia NetPak.”

     NOW, THEREFORE, in consideration of the premises and of the mutual agreements set forth below,
and other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Parties agree as follows:

     1. Service Description and General Overview

     NetPak is a bundle of family-oriented on-line services, comprised of the content set forth
below. Client may brand the NetPak service as “Adelphia NetPak.” Client shall have the right, but
not the obligation, to offer Adelphia NetPak throughout the Attachment No. 2 Term (as defined
herein) to its high speed Internet customers on a subscription basis. Throughout the Attachment No.
2 Term, Synacor shall make Adelphia NetPak available to Client for distribution to Client’s
subscribers for the monthly fees described below.

     Unless modified at Client’s request as set forth below, Adelphia NetPak shall, throughout the
Attachment No. 2 Term, include the following services:

	 	•	 	Encyclopaedia Britannica — unlimited access to the updated 32-volume
Encyclopaedia Britannica, plus Britannica’s Student & Concise encyclopedias, and
thousands of exclusive video and audio clips.

 

	 	•	 	Shockwave Gameblast — 100 popular premium on-line and downloadable games.
	 
	 	•	 	American Greetings.com  — “Print and Send Greeting Cards,” and access to
member’s only on-line greeting cards.
	 
	 	•	 	Clever Island.com — focuses on the educational skills that are most important
to a child’s development, including language, numbers, spatial reasoning, logic,
and critical thinking. Activities are designed by leading experts in education and
child development to be engaging, powerful, and fun.
	 
	 	•	 	CNN QuickCast & NewsPass — up to 30 video news updates per day. Along with 12,
2 minute breaking news stories per day*. (*Subject to approval by CNN).
	 
	 	•	 	Weather.com — local, regional and national video weather reports and special
feature categories*. (*Subject to approval by Weather.com)
	 
	 	•	 	MLB.com — access to game-day audio (listen to every game played that day);
condensed video games; post-game highlights; MLB custom cuts, and MLB radio.

     From time-to-time, Client shall have the right to request alternative services that Synacor
may be able to provide to replace one or more of the above-listed services in the event that, in
Client’s discretion, a service(s) has a low performance rating in terms of Adelphia NetPak
Subscriber usage of such service(s), or in order to make the overall bundle more robust and
appealing to subscribers.

     2. Pricing and Payment

     The fee payable by Client to Synacor under this Content Attachment No. 2 in consideration of
the right to provide Adelphia NetPak to Client’s subscribers will [*] (each, a “NetPak Subscriber”), and payment terms
shall be as set forth in Section 3, of Schedule A of the Agreement. For purposes of the payment of
the monthly fee, the number of NetPak Subscribers shall be [*].

     Client may offer Adelphia NetPak to “first-time” NetPak Subscribers [*]. Notwithstanding anything
in this Attachment No. 2 or the Agreement to the contrary, Client shall not be obligated to [*].
Pursuant to Section 3, of Schedule A of the Agreement, [*]. In the event that additional
optional features or enhanced functionality (collectively, “Enhanced Features”) are developed for
NetPak which have the potential for generating additional revenue and Client desires to make such
Enhanced Features available to its subscribers, Synacor and Client shall negotiate in good faith
with respect to apportioning any such revenue between Synacor and Client.

     Without limiting Client’s rights under Paragraph 5 hereof to terminate this Content Attachment
No. 2 in the event of an uncured breach, if at any time during the Attachment No.

 

* CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED  AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

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2 Term the Service is interrupted or unavailable on an unscheduled basis for a period of more than
[*] (a “Service Interruption”) because of an outage or other network failure
at Synacor’s, or one of its suppliers’, facilities, Synacor shall reimburse Client for credits
Client provides to Service subscribers who have called Client complaining of such Service
Interruption (each, a “Refund Subscriber”), up to [*].

     3. Accessing Content

     Subscribers may access Adelphia NetPak through the Synacor-provided Client portal. To access
Adelphia NetPak, subscribers must first log-in to the Client portal with their ID and password, at
which point they can access Adelphia NetPak without any further log-in required.

     4. Customer Support

     Tier 1 subscriber support will be provided by Client, Tier 2 and Tier 3 technical support will
be provided by Synacor, as necessary. This means that initial subscriber queries will be fielded by
Client support personnel. If the Client support team is unable to answer the question, it will be
forwarded to Synacor. Synacor will address the question, in consultation with the relevant content
supplier, if necessary. Synacor will provide a response back to the Client Customer Support contact
for communication to the pertinent subscriber.

     5. Term; Termination

     Unless terminated earlier as provided herein, the “Attachment No. 2 Term” shall commence as of
the date hereof and continue until the expiration or earlier termination of the Agreement.
Notwithstanding anything in this Content Attachment No. 2 to the contrary, either Party may, upon
giving [*] days’ written notice identifying specifically the basis for such notice,
terminate this Content Attachment No. 2 for a breach of any material term or condition of this
Content Attachment No. 2 by the other Party, unless the Party receiving such notice cures such
breach within such [*]-day period.

     6. [*]

 

* CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED  AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

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[*]

     7. Counterparts

     This Content Attachment No. 2 may be executed in counterparts, all of which (once executed)
taken together shall constitute a single agreement, and facsimile signatures shall be effective as
if original.

     8. Effectiveness

     Except as specifically amended hereby, the Agreement shall continue in full force and effect
in accordance with the provisions thereof as in existence on the date hereof. After the date
hereof, any reference to the Agreement and each reference in the Agreement to “this Agreement,”
“hereunder,” “hereof,” “herein” or words of like import, shall mean and be in reference to the
Agreement, including this Attachment No. 2. If any provision of this Attachment No. 2 conflicts
with any provision of the Agreement, the provisions of this Attachment No. 2 shall control.

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* CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED  AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

 

     IN WITNESS WHEREOF, the parties have executed this Attachment No. 2 to be effective as of the
day first above written.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SYNACOR, INC.	 	 	 	ACC OPERATIONS, INC.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ George Chamoun
	 	 	 	By:
	 	/s/ Nancy A McGee	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name: George Chamoun
	 	 	 	 	 	Name: NANCY A MCGEE	 	 	 	 	 	 
	 

	 	Title:   Senior Vice President
	 	 	 	 	 	Title:   SVP Marketing & Sales	 	 	 	 	 	 
	DATE:

	 	6/2/2005	 	 	 	 	 	 	 	 	 	 	 	 

5EX-10.17.9

 

EXHIBIT 10.17.9

CONFIDENTIAL
TREATMENT REQUESTED

EXECUTION COPY

SEARCH REVENUE SHARING ADDENDUM

TO

SYNACOR MASTER SERVICES AGREEMENT

This Search Revenue Sharing Addendum (this “Addendum”) dated this 18th day of November,
2004 supplements the Master Services Agreement dated July 13, 2004 by and between Synacor, Inc.
(“Synacor”) and ACC Operations, Inc. (“Client”), including any schedules, attachments, exhibits,
addenda, amendments or riders attached thereto (collectively, the “Agreement”) by establishing the
terms and conditions by which the Parties will work together to facilitate the delivery of Internet
search related services to Client’s Users. Except to the extent expressly modified herein, all of
the terms and conditions of the Agreement shall apply to this Addendum. If any provision of this
Addendum conflicts with a provision of the Agreement, the provisions of this Addendum shall
control. Capitalized terms used but not defined in this Addendum shall have the meanings ascribed
to them in the Agreement. Notwithstanding anything in the Agreement or this Addendum to the
contrary, for purposes of determining Synacor’s obligations and liabilities in connection with the
Search Services (as defined herein) provided pursuant to this Addendum, such Search Services shall
be deemed a “Synacor Sourced Service.”

1. Definition of Search Services and Selection of Search Services Provider. Synacor shall provide
services that enable Users to receive descriptions and links associated with Internet search
results (the “Results Sites”) generated from search boxes (“Search Services”) placed within the
customer home page currently known as “Adelphia.net” (the “Home Page”) through its agreement with a
Search Services provider (“Search Services Provider”). [*]

     a. Operation of Search Services. Each time a User enters a search request in a search box on
the Home Page (a “Search Query”), Synacor shall return to such User a set of up to ten (10) Results
Sites per page displayed on the Home Page (each such page of a set of Results Sites appearing on
the Home Page shall be referred to herein as a “Search Results Set”), and additional paid or
sponsored links (“AFS Ads”). The format and placement of such AFS Ads on the Home Page shall be
agreed to by the Parties.

     b. Hosting and Control. At all times during the Services Term (as defined below), Synacor
shall: (i) host and maintain any and all pages that comprise the Results Sites; (ii) maintain
complete technical and editorial control of the Results Sites; and (iii) act as the intermediary
for all transmissions between Search Services Provider and the Results Sites (i.e., any editing of,
or additions to, the Results Sites that Adelphia desires to implement must be provided to, and
agreed upon by, Synacor).

     c. Context Sensitive Advertising. The Parties may agree to provide context sensitive
advertising (“Adsense for Content Ads” or “AFC Ads”) from Search Services Provider within the Home
Page.

2. Disclaimers. Client understands and agrees that Search Services Provider shall not be liable for
any damages, whether direct, indirect, incidental or consequential, arising from the content
displayed on, or accessed via, any Results Site and/or any User’s access to, or use of, the Search
Services provided pursuant to this Addendum.

3. No Warranties. Client understands and agrees that Search Services Provider makes no warranties,
express or implied, with respect to the Search Services, including, without limitation, warranties
of merchantability, fitness for a particular purpose, and non-infringement.

4. Client Not Third Party Beneficiary. Client expressly acknowledges and agrees that Client is not
a third party beneficiary under any agreement between Synacor and Search Services Provider.

 

	 	 	 
	*	 	CERTAIN INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED
SEPARATELY WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

5. Fees and Payment Terms.

     a. Search Services. As a fee for the foregoing services, Synacor shall bill Client monthly at
the rate of [*].

     b. AdSense for Search. Subject to the terms and conditions of this Agreement, for each month
during the Services Term, Client shall receive the Applicable Percentage (as defined below) of Net
AFS Revenues attributable to such month.

     c. AdSense for Content. Subject to the terms and conditions of this Agreement, for each month
during the Services Term, Client shall receive the Applicable Percentage of Net AFC Revenues
attributable to such month.

     d. Ad Revenues; Applicable Percentage; Applicable Deduction.

          i. “Net AFS Revenues” means (i) Ad Revenues derived from clicks on AFS Ads (excluding
Non-Qualifying Ads as defined below), minus (ii) the Applicable AFS Deduction.

          ii. “Net AFC Revenues” means (i) Ad Revenues derived from clicks on AFC Ads (excluding
Non-Qualifying Ads as defined below), minus (ii) the Applicable AFC Deduction.

          iii. “Ad Revenues” means gross revenues received by Search Services Provider from
sponsored links for the inclusion of such sponsored links on select websites, including,
without limitation, the Home Page, whether calculated as a flat fee, on the basis of the
number of “click-throughs,” or otherwise, minus agency fees, referral fees, costs related to
third party advertising service providers, and discounts.

          iv. “Applicable Percentage” with respect to any calendar month during the Services Term
shall be [*].

          v. “Applicable AFS Deduction” in any calendar month during the Initial Term (as defined
herein) means [*] of Net AFS Revenues in such month derived from any and all
Results Sites. Notwithstanding anything herein to the contrary, Synacor reserves the right to
increase the Applicable AFS Deduction [*] from Search Services Provider in connection with AFS Revenues by
providing: (i) advance written notice to Client, and (ii) documentary evidence of such
increased cost.

          vi. “Applicable AFC Deduction” in any calendar month during the Initial Term means
[*] of Net AFC Revenues in such month derived from any and all Results
Sites.

          vii. Notwithstanding any of the foregoing under this Section to the contrary, Synacor
shall not be liable for payment in connection with: (i) any amounts which result from invalid
queries, or invalid impressions of (or clicks on) ads, generated by any person, bot, automated
program or similar device, including, without limitation, through any fraudulent act, as
reasonably determined by Synacor; and (ii) ads that advertise Search Services Provider
products or services (collectively, “Non-Qualifying Ads”). The number of queries, and
impressions of and clicks on ads, as reported by Search Services Provider, shall be the number
used in calculating payments hereunder.

     e. Payment Terms. All undisputed payments due Adelphia by Synacor hereunder shall accrue on a
monthly basis and be made by Synacor within [*] days after the end of each month in
which the pertinent AFC Ads, AFS Ads, or Search Results Sets were displayed. All undisputed
payments due Synacor by Adelphia hereunder shall be made by Adephia within [*] days
after

 

* CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED  AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

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the end of the month for which the pertinent payment is due. All payments shall be made in full in
United States Dollars.

6. Term. This Addendum will become effective on November 15, 2004 and expire on June 30, 2006 (the
“Initial Term”), or earlier, upon sixty (60) days’ written notice from either Party to the other
Party, with or without cause, and may be renewed by the Parties only upon a definitive written
agreement signed by both of the Parties (the term of any such renewal being referred to as the
“Renewal Term”). For purposes of the Agreement, the Initial Term, together with any Renewal Term,
if any, may also be referred to as the “Services Term.”

The foregoing is hereby agreed and accepted by:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	SYNACOR, INC.	 	 	 	ACC OPERATIONS, INC. (CLIENT):
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Ronald Frankel
	 	 	 	By:
	 	/s/ Karl Ossentjuk	 	 	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name: RONALD FRANKEL

Title:   PRESIDENT & CEO
	 	 	 	 	 	Name: KARL OSSENTJUK

Title:   VP Internet Services Product Mgmt	 	 	 	 	 	 
	Date:

	 	11-21-04
	 	 	 	Date:
	 	11-18-04	 	 	 	 	 	 

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