Document:

SECOND AMENDED AND RESTATED LICENSE AGREEMENT

 

EXHIBIT 10.29

AOL Confidential

Confidential

SECOND AMENDED AND RESTATED LICENSE AND SERVICES AGREEMENT

     This Second Amended and Restated License and Services Agreement (this
“Agreement”) dated as of September 30, 2002 (the “Effective Date”) is between
America Online, Inc., a Delaware corporation, with offices at 22000 AOL Way,
Dulles, Virginia 20166 (“AOL”), and Viewpoint Corporation, a Delaware
corporation and successor in interest to MetaStream Corporation, with offices
at 498 Seventh Avenue, New York, N.Y. 10018 (“Viewpoint”). AOL and Viewpoint
may be referred to individually as a “Party” and collectively as the “Parties.”

INTRODUCTION

     The Parties entered into a License and Services Agreement, dated as of
March 28, 2000, and Amendment Number One to the License and Services Agreement
between America Online, Inc. and Viewpoint on June 21, 2001, under which, among
other things, Viewpoint provided to AOL certain software for AOL’s use,
distribution, and sublicensing in connection with the AOL Network. In
addition, the Parties entered into an Amended and Restated License and Services
Agreement on July 19, 2001, as amended on March 27, 2002. The Parties now wish
to amend and restate the agreement and broaden their relationship. The
relationship is further described below and is subject to the terms and
conditions set forth in this Agreement.

     The Parties have also entered into an Agreement for Consulting Services,
dated as of September 30, 2002 (the “Consulting Services Agreement”), under
which, among other things, Viewpoint will provide certain technology (the “UI
Technology”) and will provide digital content (the “UI Content”) for use by AOL
in the user interface for the client software used to access the AOL Service,
as well as updates and internationalized versions thereof. The Parties
anticipate that Viewpoint, AOL, or a third party (or parties) will create
additional UI Content for use by AOL in the user interface for the AOL Client
software. Any such UI Content created by Viewpoint will be so created under an
additional schedule(s) incorporated into the Consulting Services Agreement and
shall be deemed licensed under this Agreement.

     Defined terms used but not defined in the body of the Agreement shall have
the meanings ascribed to such terms in Exhibit A hereto.

1.     DELIVERY AND LICENSE OF THE LICENSED SOFTWARE

Viewpoint shall deliver the Licensed Software to AOL in accordance with this
Agreement.

2.     GRANT OF RIGHTS

2.1     Licenses.

(a)  Broadcast Licenses.

	 	(i)	 	General Broadcast License. Viewpoint hereby grants to AOL and its
Affiliates, for the Term (subject to Section 8.6), a worldwide,
irrevocable (except as set forth in Section 8.3), non-exclusive and
nontransferable (except as set forth in Section 13.9) license (the
“Broadcast License”) to use, reproduce, perform, display and transmit
(in any medium now known or hereafter devised) Viewpoint Content (and,
as necessary to enable this Broadcast License, the Viewpoint
Technology) from AOL Servers to any current or future Media Player
Software (or Component thereof). The Broadcast License will be enabled
by Broadcast Keys issued by Viewpoint that will reside on AOL Servers.
Viewpoint represents and warrants that it will
provide AOL with Broadcast Keys upon execution of this Agreement that
will not expire or “time out” (e.g. no watermarking or degradation) at
any time during the Term.

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	 	(ii)	 	Perpetual UI License. Viewpoint hereby grants to AOL and its
Affiliates a worldwide, perpetual, irrevocable (except as set forth in
Section 8.3), exclusive license (the “UI License”) to use, reproduce,
perform, display and transmit (in any medium now known or hereafter
devised) UI Content (and, as necessary to enable this UI License, the
Viewpoint Technology) created during the Term from AOL Servers to any
current or future Media Player Software (or component thereof).
	 
	 	(iii)	 	Viewpoint hereby grants to AOL and its Affiliates a worldwide,
non-exclusive and non-transferable license to use Broadcast Keys solely
for purposes of using, reproducing, performing, displaying, and
transmitting Viewpoint Content in accordance with either the (i)
General Broadcast License or (ii) Perpetual UI License, as the case may
be. Viewpoint represents and warrants that it will provide AOL with
Broadcast Keys upon execution of this Agreement that will not expire or
“time out” (e.g. no watermarking or degradation) at any time, even
after conclusion of the Term, pursuant to Section 2.1(a)(ii) above.
Viewpoint also represents that (A) it has developed a software
application (the “Key Generation Application”) that generates Broadcast
Keys, (B) that the attached Exhibit C sets forth an explanation of the
structure, operation, and functionality of the Broadcast Keys, (C) that
the Key Generation Application can be used, without modification or
other development work, to generate Broadcast Keys that will allow AOL
Servers to broadcast and enjoy the full rights of the Perpetual UI
License described above and that at all times the Broadcast Keys will
meet all of the requirements of this section (e.g., no “time out,”
watermarking or degradation in any manner), and (D) that the Key
Generation Application will be deposited in escrow within fifteen (15)
days of the Effective Date pursuant to AOL’s Preferred Beneficiary
Agreement with DSI, as amended and agreed by Viewpoint and AOL on
September 30, 2002, and any Updates to the Key Generation Application
will be promptly deposited pursuant to Section 2.3 below. Viewpoint
represents and warrants that the Desktop Themes functionality described
in Exhibit A, Schedule 1 to the Master Consulting Agreement (dated
September 30, 2002) between AOL and Viewpoint shall not use or require
the use of Broadcast Keys.

(b)  Authoring Tools. Viewpoint hereby agrees to provide AOL and its
Affiliates, for the Term of this Agreement, with a royalty-free, worldwide,
non-exclusive license to use the Authoring Tools and to reproduce the Authoring
Tools as necessary for use by AOL and its Affiliates. Viewpoint hereby also
agrees to provide AOL and its Affiliates, the right to sublicense, for the Term
of this Agreement, the Authoring Tools to entities that create and/or
distribute content and advertising through the AOL Network.

(c)  Media Player. Viewpoint hereby grants to AOL and its Affiliates a
worldwide, perpetual, irrevocable (except as set forth in Section 8.3),
non-exclusive, royalty-free, paid-up license to use, reproduce, distribute
(subject to Section 2.1(d)), display, perform, transmit, sublicense (e.g.,
grant AOL End-Users the right to use), and adapt the Media Player Software, as
AOL deems necessary in light of its business requirements (collectively, the
“Media Player Software License”). Without limiting the generality of the
foregoing, Viewpoint agrees that in connection with the foregoing Media Player
Software License, AOL shall have the right to distribute the Media Player
Software through any manner or means whatsoever, in AOL’s sole discretion,
including, without limitation, physical distribution with CD-ROMs containing
AOL client software or as a standalone electronic download from the AOL
Network, subject to the restrictions in Section 2.1(d) and this Agreement.
AOL shall be licensed for an unlimited quantity of licenses of the Media Player
Software as necessary to provide the Media Player Software to all AOL End Users
extant at the onset and during the Term of this Agreement, as well as for any
other usage of the Media Player Software deemed necessary by AOL. No fee shall
be due Viewpoint from AOL for the Media Player Software, regardless of the
quantity of Media Player Software used or deployed by AOL.

(d)  End User License. Viewpoint grants AOL the right to distribute and
sublicense the Media Player Software to AOL End-Users under terms and
conditions materially consistent with the terms and conditions contained in
AOL’s then current terms of service agreement, or materially consistent with
the terms and conditions that apply to such other AOL software that AOL may be licensing an
AOL End User contemporaneously with AOL’s sublicense of the Media Player
Software, at AOL’s discretion. For the avoidance of doubt, the Parties agree
that any rights granted by AOL to AOL End Users shall be perpetual,

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and shall
survive the expiration or earlier termination of this Agreement.
Alternatively, AOL may, at AOL’s option, sublicense the Media Player Software
subject to Viewpoint’s standard end user license agreement, which is available
from Viewpoint on request.

(e)  Ownership. Viewpoint retains ownership of all right, title and interest in
and to the Licensed Software, and reserves all rights not expressly granted.
Viewpoint retains no right, title, and interest in any Viewpoint Content
created by Viewpoint for AOL, including but not limited to the UI Content.

(f)  Subcontracting. AOL may use subcontractors to exercise any or all of its
rights granted to AOL under this Agreement in its sole discretion; provided,
however, that: (a) AOL shall ensure that any subcontractors comply with the
provisions of this Agreement and (b) AOL shall be liable for any action by such
subcontractors which, if done by AOL, would be a breach of this Agreement.

2.2     Software License Restrictions. The Licensed Software shall be provided to
AOL in object code version. Except as permitted pursuant to Section 2.3, AOL
shall not reverse engineer, decompile, or disassemble the Licensed Software,
except (1) to the extent that the foregoing restriction is void or not
enforceable under applicable law despite this restriction, or (2) as permitted
by Viewpoint.

2.3     Source Code Escrow. Viewpoint shall deposit a copy of the source code for
the Licensed Software with a commercial third party escrowee pursuant to the
terms of an escrow agreement among Viewpoint, AOL and the Escrowee in the form
of Exhibit E hereto. The escrow agreement shall provide that AOL shall be
entitled to receive a copy of the source code for the Licensed Software upon
the occurrence of any of the following release conditions: (a) a material
breach of this Agreement (including any breach of the support obligations set
forth in Exhibit B by Viewpoint) by Viewpoint which has not been timely cured,
(b) any bankruptcy filing by Viewpoint, (c) Viewpoint ceases its business
operations or (d) a Change of Control of Viewpoint. In any such event, the
Escrowee shall deliver the source code for the Licensed Software to AOL or its
designee. During the Term, Viewpoint shall deposit the latest version of the
source code for the Licensed Software with Escrowee promptly after every
material change in such software, including, without limitation, any and all
Updates. If the source code for the Media Player Software is released
pursuant to this Section 2.3, then the following license to AOL becomes
effective immediately upon such release: In addition to the rights granted
under Section 2.1 and Section 2.3, AOL and its Affiliates may use the source
code version of the Licensed Software and Broadcast-Related Software to provide
the support for AOL and AOL End Users of the Media Player Software, as AOL
reasonably deems necessary, as well as for such further development as AOL
chooses; the license to the source code for the purposes of support as
described in the foregoing shall be perpetual. The foregoing license is
subject to all of the other restrictions in this Agreement regarding the
Licensed Software.

2.4     Trademark License. AOL, its Affiliates and its channels of
distribution may use but are not required to use Viewpoint trademarks and logos
applicable to the Licensed Software in connection with the activities
contemplated under this Agreement. In the event AOL uses Viewpoint trademarks
or logos, AOL shall use good faith efforts to adhere to Viewpoint’s reasonable
trademark usage guidelines, which shall be provided to AOL after execution of
this Agreement, and which shall be subject to AOL’s reasonable approval.
Notwithstanding anything in this Agreement or in such trademark usage
guidelines, AOL shall be permitted at its sole discretion to co-brand the
Licensed Software with AOL trademarks and/or logos in addition to Viewpoint’s
trademarks and logos applicable to the Licensed Software; provided that AOL
does not (1) remove any trademark or copyright notices from the Licensed
Software, (2) attribute ownership or authorship of the Licensed Software to any
party other than Viewpoint, or (3) indicate that any party other than Viewpoint
is the source of the Licensed Software.

2.5     Distribution. AOL and its Affiliates have included the Media Player
Software in version 7.0 of the client software used to access the AOL Service
(“AOL 7.0”), the immediately subsequent major release of
such client software (the “Subsequent Version”), and shall use good faith
efforts to include the Media Player Software in the related internationalized
versions of AOL 7.0 and the Subsequent Version; provided however, that AOL and
its Affiliates shall not be required to include the Media Player Software in
specified internationalized versions for which AOL and its Affiliates
reasonably determines that Viewpoint is unable to adequately provide (or has
not adequately provided), at Viewpoint’s expense, technical support and local

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training necessary for AOL and its Affiliates to integrate the Media Player
Software with such internationalized client software in accordance with AOL’s
performance requirements and development deadlines and without the expenditure
of substantial additional resources. Thereafter during the Term, AOL and its
Affiliates shall use reasonable efforts to promptly distribute Updates to AOL
End Users utilizing such versions. Notwithstanding the foregoing, AOL shall
have no obligation to distribute the Media Player Software or any Updates, if
(i) the Media Player Software or Update does not comply with any term of this
Agreement (including, without limitation, Exhibit B), (ii) distribution of the
Media Player Software or Update would interfere with, degrade or otherwise
negatively impact the experience of AOL End Users using the AOL Network, (iii)
any Update contains over 15% more bits than the prior version of the Media
Player Software, (iv) the Media Player Software or Update could not be
seamlessly integrated into AOL’s client access software without AOL applying
substantial development or network resources, (v) the Media Player Software is
not comparable in terms of content degradation, transmission speed, scalability
and cost, to other generally available, market-leading multimedia formats, or
(vi) AOL determines in its sole discretion that such distribution with respect
to the Subsequent Version is contrary to the commercial best interests of AOL.
In addition, in the event any Update contains any new feature, functionality or
content that is competitive with any feature, functionality or content
distributed by AOL, AOL shall so notify Viewpoint, and Viewpoint shall promptly
thereafter provide AOL with a version of the Update to distribute that excludes
such competitive feature, functionality and content. Except as otherwise
expressly provided herein, AOL shall decide in its sole discretion any and all
placement and means of distribution, if any, of the Licensed Software. AOL
shall have the right to remove or disable the Licensed Software or any portion
thereof from the AOL Network (including, without limitation, from AOL 7.0 and
the Subsequent Version and other client access software), in the event
Viewpoint is in breach of any representation, warranty or obligation hereunder
or if, in AOL’s view, the Licensed Software (or any portion thereof) adversely
impacts the access or use of any AOL Network product or service by AOL End
Users.

2.6     AOL Look and Feel. Viewpoint acknowledges and agrees that AOL shall own
all right, title and interest in and to the elements of graphics, design,
organization, presentation, layout, user interface, navigation and stylistic
convention (including the digital implementations thereof), and the total
appearance and impression substantially formed by the combination, coordination
and interaction of such elements with Viewpoint Content, which are generally
associated with online areas contained within the AOL Network. AOL reserves
the right to redesign or modify the organization, structure, “look and feel”
and other elements of the AOL Network at its sole discretion at any time
without prior notice.

2.7     Documentation License. Viewpoint grants AOL a license to use the
Documentation (including the right to copy) as necessary to support its license
of the Media Player Software hereunder.

2.8     Compatibility. Viewpoint represents and warrants that any Update or new
version of the Media Player Software will have the capability of playing back
content encoded in any previous versions of Viewpoint’s encoding or decoding
formats. Before March 31, 2003, Viewpoint will not distribute any Updates or
Components to the Media Player Software in addition to or other than the (i)
version 3.11 of the Media Player Software previously delivered to AOL for
distribution with AOL Client Version 8.0 (which Viewpoint intends to
distribute concurrently under the label of version 3.12 (minus the tags, User
Experience Shell and Draw Anywhere)) with AOL’s distribution of the AOL Client
software Version 8.0), (ii) any Updates to the Media Player Software that are
necessary to address any error in the Media Player Software that causes an
important component or function that is commonly used to be unusable, that
causes a crash for a commonly used feature or function, in which commonly used
features are completely non-functioning, or that results in data loss or corruption on a widespread basis,
provided that such Update does not add any new feature or functionality.
Viewpoint hereby grants to AOL the right to elect, on or before
December 15, 2002, to require Viewpoint to develop a customized, exclusive
version of the Media Player Software (“Custom Player”) as further described in
Exhibit D hereto. If AOL so elects, (a) AOL shall provide written notice to
Viewpoint of its election on or before December 15, 2002, (b) AOL shall pay to
Viewpoint $250,000 concurrently upon execution by AOL of a detailed SOW
describing the Custom Player to be incorporated into the Consulting Services
Agreement, (c) AOL shall pay an additional $250,000 upon acceptance (as defined
in such detailed SOW) by AOL of the Custom Player, and (d) Viewpoint will not
distribute any Updates to the Media Player Software until such Custom Player is
accepted by AOL.

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Viewpoint will ensure that all Updates to and new versions of
the Media Player Software are compatible, consistent, and fully interoperable
with the version of the Media Player Software that AOL distributes with Version
8.0. Before releasing any Updates to the Viewpoint Media Player during the
Term, Viewpoint will provide AOL any Updates to the Viewpoint Media Player
thirty (30) days prior to general release thereof in order for AOL to perform
compatibility testing. Viewpoint will delay any scheduled distribution of an
Update or new version of the Media Player Software if such Update or new
version raises significant compatibility problems with Version 8.0.

3     MAINTENANCE AND TECHNICAL SUPPORT. AOL, in its sole discretion, may require
Viewpoint to perform the maintenance and support obligations set forth in
Sections 3.1, 3.2, and 3.3 over the periods and in exchange for the payments
set forth in Section 8.8.

3.1     Support of AOL. Upon AOL’s election as described in the first sentence of
this Section 3, Viewpoint shall:

(a)  comply with the Technical Specification attached hereto as Exhibit B;

(b)  provide technical support and training to staff members of AOL and its
Affiliates in a level sufficient to assist AOL to perform its obligations and
exercise its rights under this Agreement (e.g., encoding and distribution of
Viewpoint Content, integration of the Media Player Software with the AOL client
access software, distribution of the Media Player Software over the AOL
Network, providing customer support to AOL End-Users pursuant to Section 3.2,
and (during the first year after the Effective Date) fixing bugs related to the
UI Content). Such training shall occur at Viewpoint’s or AOL’s headquarters as
mutually determined on a case-by-case basis by the Parties. Viewpoint hereby
agrees that it will negotiate in good faith the possibility of providing
training to Affiliates at locations other than the Viewpoint’s or AOL’s
headquarters, at which time the Parties will agree on an agreeable allocation
of reasonable travel, lodging and similar expenses associated with providing
training at other locations; and

(c)  provide to AOL all Updates to the Licensed Software at no cost whatsoever
to AOL, its Affiliates or AOL End-Users, prior to the time that the Updates are
commercially available pursuant to Section 2.8. Viewpoint will use good faith,
commercially reasonable effort to release a major Update to the Media Player
Software and Authoring Tools at least once every twelve months during the Term.

3.2     End User Support. AOL shall generally provide support to AOL End Users
with respect to the Media Player Software, provided that, upon AOL’s election
as described in the first sentence of this Section 3, Viewpoint shall provide
AOL with second level support as necessary for AOL to provide professional
level support to its End-Users. Upon AOL’s election as described in the first
sentence of this Section 3, AOL may, on a case by case basis, direct its AOL
End Users directly to Viewpoint, and Viewpoint shall provide professional level
support to such AOL End Users, provided that AOL is otherwise generally
providing first level support to AOL End Users with respect to the Licensed
Software.

3.3     Content Creation Services. If AOL makes the election described in the
first sentence of this Section 3 above, Viewpoint will grant to AOL the payment
credits set forth in Section 8.8 to be applied towards digital content creation
services designated by AOL.

3.4     Quality Assurance Testing. AOL may, at its option, perform quality
assurance testing on the Licensed Software.

4.     ADDITIONAL TECHNOLOGY

During the Term, in the event AOL elects to license additional Viewpoint
technology including, but not limited to, any additional Viewpoint technology
relating to the use of Viewpoint Content on any platform (such as AOL TV) not
otherwise made available by Viewpoint on a commercial basis (collectively, the
“Additional Technology”), the Parties shall mutually agree on the terms and
conditions pursuant to which Viewpoint shall provide such Additional Technology
to AOL; provided, however, that in the event that any fees are due for such
Additional Technology, then any such fees associated with such Additional

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Technology shall be no less favorable than the fees paid by any other Viewpoint
customer with respect to technology having a license scope and usage similar to
the Additional Technology. If the Additional Technology results in a
modification or enhancement to the Media Player Software, the Media Player
Software License granted to AOL in Section 2.1(c) shall include the Media
Player as so modified or enhanced. Notwithstanding anything to the contrary
set forth in this Agreement, if, during the Term, AOL engages Viewpoint to
develop and provide to AOL technology which represents an extension of the
Media Player Software for use on a PC platform, including but not limited to
such extensions comprised of Components to the Media Player Software created
solely for the benefit of AOL and not intended for general distribution,
license rights thereto shall be deemed to covered by payments made under this
Agreement.

5.     Reserved.

6.     Representations and Warranties.

6.1     Mutual. 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 of 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; and (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.

6.2     By Viewpoint. Viewpoint additionally represents and warrants that: (i) use
of the Licensed Software in accordance with this Agreement does not and will
not infringe on or violate any copyright, trademark, trade secret, patent,
rights of publicity, moral rights or any other third party rights; (ii) the
Licensed Software shall not violate any applicable law or regulation or include
any unlawful matter or material; (iii) Viewpoint has free, good and clear title
to all Licensed Software which may be supplied by Viewpoint under this
Agreement, which title shall be free and clear of any and all liens,
encumbrances, claims or litigation, whether pending or threatened; (iv)
Viewpoint has obtained all authorizations, approvals, consents, licenses,
permits, certificates and all other rights and permissions necessary for it to
perform under this Agreement and grant the licenses and rights hereunder to
AOL; (v) the Licensed Software will function, in all material respects, in
accordance with the Documentation; (vi) the Licensed Software shall not contain
any defects in material, including without limitation, any back door, time
bomb, drop dead device or other software routine designed to disable a computer
program (either automatically with the passage of time or under the control of
a person other than AOL), or any virus, Trojan horse, worm or other software
routine designed to permit unauthorized access or to erase or to otherwise harm
software, hardware or data; and (vii) the Licensed Software will perform in
accordance with the foregoing performance warranty prior to, during and (to the
extent permitted by the system clock(s) in the operating
system(s) on which the Licensed Software are being run) after the calendar year
2000 A.D., and the Licensed Software shall perform during each such period of
time without any material error specifically caused by date functionality in
general or date functionality as it relates to data which represents or
references different centuries or more than one century. The warranties in
subsection (v) and (vi) above apply for twelve (12) months after delivery of
the Licensed Software, and shall continue to apply to each delivered Update to
each product in the Licensed Software, from the date that such Update is
received by AOL. All other warranties specified in this subsection shall be
perpetual in nature.

6.3     Remedies. Viewpoint shall promptly repair or replace any nonconforming
Licensed Software, and shall bear the expenses associated with such repair or
replacement on the AOL Network. Without exclusivity, Viewpoint shall be
responsible for the shipping and delivery charges involved in returning
Licensed Software to Viewpoint, as well as for such charges in returning
repaired or replacement Licensed Software to AOL.

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GENERAL TERMS

7.     LIMITATION OF LIABILITY; DISCLAIMER

7.1     Liability. UNDER NO CIRCUMSTANCES SHALL EITHER PARTY BE LIABLE TO THE
OTHER PARTY FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR EXEMPLARY
DAMAGES (EVEN IF THAT PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES), ARISING FROM BREACH OF THIS AGREEMENT OR THE USE OF OR INABILITY TO
USE THE AOL NETWORK OR LICENSED SOFTWARE, SUCH AS, BUT NOT LIMITED TO, LOSS OF
REVENUE OR ANTICIPATED PROFITS OR LOST BUSINESS (COLLECTIVELY, “DISCLAIMED
DAMAGES”); PROVIDED THAT VIEWPOINT SHALL REMAIN LIABLE TO AOL TO THE EXTENT ANY
DISCLAIMED DAMAGES ARE AWARDED TO A THIRD PARTY OR INCLUDED IN A SETTLEMENT AND
ARE SUBJECT TO INDEMNIFICATION BELOW. AOL SHALL NOT BE LIABLE TO VIEWPOINT
WITH RESPECT TO THE LICENSED SOFTWARE FOR ANY AMOUNT IN EXCESS OF THE GREATER
OF (A) THE AGGREGATE AMOUNTS PAYABLE HEREUNDER IN THE YEAR IN WHICH THE EVENT
GIVING RISE TO SUCH LIABILITY OCCURRED OR (B) $100,000.

7.2     No Additional Warranties. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT,
NEITHER PARTY MAKES, AND EACH PARTY HEREBY SPECIFICALLY DISCLAIMS, ANY
REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, REGARDING THE AOL NETWORK OR
THE LICENSED SOFTWARE, INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR
FITNESS FOR A PARTICULAR PURPOSE AND IMPLIED WARRANTIES ARISING FROM COURSE OF
DEALING OR COURSE OF PERFORMANCE. WITHOUT LIMITING THE GENERALITY OF THE
FOREGOING, AOL SPECIFICALLY DISCLAIMS ANY WARRANTY REGARDING THE PROFITABILITY
OF AOL NETWORK, ANY BENEFIT VIEWPOINT MIGHT OBTAIN FROM INCLUDING THE LICENSED
SOFTWARE OR ANY PORTION THEREOF WITHIN THE AOL NETWORK AND (III) THE
FUNCTIONALITY, PERFORMANCE OR OPERATION OF THE AOL NETWORK.

8.     ERM, RENEWAL, TERMINATION, FEES

8.1     Term. Unless earlier terminated as set forth herein, the initial term of
this Agreement will begin on the Effective Date and continue through July 19,
2004 at 12 p.m. midnight, Eastern Standard Time (the “Initial Term”).

8.2     Renewal. Upon conclusion of the Initial Term of this Agreement, AOL will
have the right, in its sole discretion, to renew the Agreement for up to three
(3) successive one (1) year renewal terms (each a “Renewal Term” and together
with the Initial Term, the “Term”). A Renewal Term shall automatically
commence following the expiration of the Initial Term (or prior Renewal Term,
as the case may be) unless AOL gives at least thirty (30) days’ written notice
to Viewpoint prior to the end of the Initial Term or any Renewal Term, as the
case may be, that it has determined in its discretion not to renew the
Agreement.

8.3.     Termination for Breach. Except as expressly provided elsewhere in this
Agreement, either Party may terminate this Agreement at any time in the event
of a material breach of the Agreement by the other Party which remains uncured
after thirty (30) days written notice thereof to the other Party.
Notwithstanding the foregoing, only if AOL materially breaches and fails to
cure its obligations under Section 8.7 or 12 may Viewpoint terminate this
Agreement.

8.4.     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 any proceeding

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related
to its liquidation or insolvency (whether voluntary or involuntary) which is
not dismissed within ninety (90) calendar days or (iv) makes an assignment for
the benefit of creditors.

8.5     Change of Control. AOL may terminate this Agreement upon thirty (30) days
prior written notice to Viewpoint in the event of any Change of Control of
Viewpoint.

8.6     Effect of Expiration or Termination. For greater certainty between the
Parties, it is understood that the Media Player License and UI License granted
hereunder by Viewpoint are perpetual in nature but that the Broadcast License
granted hereunder by Viewpoint is only for the Term; provided, however, that if
the Agreement is terminated by AOL pursuant to Section 8.3 or 8.4 the Broadcast
License hereunder shall also be perpetual. It is also understood that the UI
License only extends to UI Content created during the Term. In addition,
sublicenses granted to AOL End Users hereunder shall survive cancellation or
termination of this Agreement.

8.7     License Fees.

	 	(a)	 	(i) The license fee for the period commencing on July 19, 2001 and
ending on July 19, 2004 is $8,325,000 (the “License Fee”). The parties
acknowledge and agree that AOL has previously paid $6,325,000 of the
License Fee. AOL shall pay the remaining $2,000,000 of the Initial
Term Fee as follows:

	 	a.	 	$500,000 on or before September 30, 2002;
	 
	 	b.	 	$500,000 on or before December 23, 2002; and
	 
	 	c.	 	$1,000,000 on or before June 23, 2003.
	 
	 	(ii)	 	For the license granted to AOL in Section 2.1 (a) for
the first one year Renewal Term (if any) commencing on July 20,
2004 and ending on July 19, 2005, AOL shall pay $2,000,000 to
Viewpoint on or before June 30, 2004.
	 
	 	(iii)	 	For the license granted to AOL in Section 2.1(a) for
the second one year Renewal Term (if any), AOL shall pay no more
than $4,500,000 to Viewpoint on or before June 30, 2005 (subject
to reduction pursuant to Section 8.7(b) below).
	 
	 	(iv)	 	For the license granted to AOL in Section 2.1(a) for
the third one year Renewal Term (if any), AOL shall pay no more
than $5,500,000 to Viewpoint or before June 30, 2006 (subject to
reduction pursuant to Section 8.7(b) below).

	 	(b)	 	MFN. The license fees payable by AOL during the second and third
Renewal Terms and, if AOL and Viewpoint determine to enter into an
extension of this Agreement beyond the third Renewal Term, the license
fees payable by AOL for a period of up to two years following the third
Renewal Term shall be no greater than the license fees paid to
Viewpoint by any third party with respect to a broadcast license having
a scope similar to the license granted hereunder and an expected usage
by such third party similar to the expected usage by AOL of the
Broadcast License.

8.8     Maintenance and Support Fees. The parties acknowledge and agree that AOL
has elected to require and has paid $625,000 to Viewpoint for performance of
the maintenance and support obligations set forth in Sections 3.1, 3.2, and 3.3
for the period from March 27, 2002 through June 30, 2003. If AOL elects to
require Viewpoint to perform the maintenance and support obligations set forth
in Section 3.1, 3.2, and 3.3 for any annual period commencing on or after June
30, 2003 and during which the Agreement is in effect (including Renewal Terms
(if any)), (x) AOL shall notify Viewpoint of its election to do so by June
20th of the relevant annual period, (y) AOL shall pay to Viewpoint a fee of
$500,000 on or before the first day of such annual period, and (z) Viewpoint
shall grant to AOL a payment credit of $100,000 for Production Services
performed over the relevant annual period.

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AOL Confidential

     8.8(a).     After July 30, 2003, upon annual election by AOL in its
discretion, Viewpoint will perform maintenance, integration support for future
versions of the client software distributed under the AOL brand, bug fixes,
and/or modifications (“Maintenance”) to the UI Content delivered to AOL by
Viewpoint for $300,000 each one-year period so elected by AOL, payable to
Viewpoint thirty (30) days after such election.

9.     INDEMNITY

Viewpoint hereby agrees to indemnify, defend and hold harmless AOL and the
officers, directors, agents, Affiliates, distributors, franchises and employees
of AOL from and against all claims, actions, losses, liabilities, expenses,
damages and costs (including, without limitation, reasonable attorneys’ fees)
that may at any time be assessed against or incurred by any of them by reason
of any third party claims, suits or proceedings: (a) for libel, defamation,
violation of right of privacy or publicity, patent infringement, copyright
infringement, trademark infringement or other infringement of any third party
right, fraud, false advertising, misrepresentation, product liability or
violation of any law, statute, ordinance, rule or regulation throughout the
world in connection with the Licensed Software; (b) arising out of any material
breach by Viewpoint of any duty, representation, or warranty under this
Agreement; or (c) relating to any contaminated file, virus, worm or Trojan
horse originating from the Licensed Software. AOL will notify Viewpoint of any
claim, action or demand (an “Action”) for which indemnity is claimed within ten
(10) days of receipt of written notice of such Action, and will give Viewpoint
control of the defense and settlement of the claim, action or allegation.
Viewpoint’s counsel defending such Action shall be subject to AOL’s prior
written approval. AOL reserves the right to participate fully in and assume
joint control of the defense of any Action, at its own cost and expense.
Settlement of any Action shall be subject to AOL’s prior written approval.

10.     SOLICITATION

During the Term of the Agreement, Viewpoint will not use the AOL Network
(including, without limitation, the e-mail networks contained therein) to
solicit AOL Members on behalf of another Interactive Service. More generally,
Viewpoint will not send unsolicited, commercial e-mail (i.e., “spam”) or other
online communications through or into AOL’s products or services, absent a
Prior Business Relationship. For purposes of this Agreement, a “Prior Business
Relationship” will mean that the AOL Member to whom commercial e-mail or other
online communication is being sent has voluntarily either (i) engaged in a
transaction with Viewpoint or (ii) provided information to Viewpoint through a
contest, registration, or other communication, which included clear notice to
the AOL Member that the information provided could result in commercial e-mail
or other online communication being sent to that AOL Member by Viewpoint or its
agents. Any commercial e-mail or other online communications to AOL Members
which are otherwise permitted hereunder, will (a) include a prominent and easy
means to “opt-out” of receiving any future commercial communications from
Viewpoint, and (b) shall also be subject to AOL’s then-standard restrictions on
distribution of bulk e-mail (e.g., related to the time and manner in which such
e-mail can be distributed through or into the AOL product or service in
question).

11.     PROMOTIONAL MATERIALS/PRESS RELEASES

Neither party shall publish or release any press releases, public announcement
or other promotional materials related to the transactions contemplated
hereunder and/or referencing this Agreement, the other Party and/or its trade
names, trademarks, or service marks without the prior written consent of the
other party. Notwithstanding the foregoing, (a) AOL may, in its sole
discretion, include Viewpoint in an initial press release and/or make other
public announcements or include Viewpoint in other activities concerning
the features and functionality of the AOL Network, and (b) Viewpoint may issue
a press release as reasonably required to comply with the laws, regulations,
and rules of the U.S. Securities and Exchange Commission, upon prior approval
by AOL, which shall not be unreasonably withheld or delayed.

9

 

AOL Confidential

12.     CONFIDENTIAL INFORMATION

Each Party acknowledges that Confidential Information may be disclosed to the
other Party during the course of this Agreement. Each Party agrees that it
will take reasonable steps, at least substantially equivalent to the steps it
takes to protect its own proprietary information, during the term of this
Agreement, and for a period of three years following expiration or termination
of this Agreement, to prevent the duplication or disclosure of Confidential
Information of the other Party, other than by or to its employees or agents who
must have access to such Confidential Information to perform such Party’s
obligations hereunder, who will each agree to comply with this Section.
Notwithstanding the foregoing, either Party may issue a press release or other
disclosure containing Confidential Information without the consent of the other
Party, to the extent such disclosure is required by law, rule, regulation or
government or court order. In such event, the disclosing Party will provide,
if reasonably possible, at least five (5) business days prior written notice of
such proposed disclosure to the other Party. Further, in the event such
disclosure is required of either Party under the laws, rules or regulations of
the Securities and Exchange Commission or any other applicable governing body,
such Party will (i) redact mutually agreed-upon portions of this Agreement to
the fullest extent permitted under applicable laws, rules and regulations and
(ii) submit a request to such governing body that such portions and other
provisions of this Agreement receive confidential treatment under the laws,
rules and regulations of the Securities and Exchange Commission or otherwise be
held in the strictest confidence to the fullest extent permitted under the
laws, rules or regulations of any other applicable governing body. For
purposes of this Agreement, “Confidential Information” shall mean: any
information relating to or disclosed in the course of the Agreement, which is
or should be reasonably understood to be confidential or proprietary to the
disclosing Party, including, but not limited to, the material terms of this
Agreement, information about AOL Members, AOL End-Users, AOL Broadband Service
registration information, technical processes and formulas, source codes,
product designs, sales, cost and other unpublished financial information,
product and business plans, projections, and marketing data. “Confidential
Information” will not include information (a) already lawfully known to or
independently developed by the receiving Party, (b) disclosed in published
materials, (c) generally known to the public, or (d) lawfully obtained from any
third party.

13.     PRIVACY. Viewpoint will not directly or indirectly gather, use, or deliver
any data from the AOL Network and/or AOL End Users during the Initial Term or
any Renewal Term of this Agreement. Viewpoint shall not deliver to AOL any
data in contravention of any applicable law or any applicable user privacy
policy, including but not limited to an AOL privacy policy.

14.     GENERAL

14.1     Excuse. Neither Party will 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.

14.2     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 date, whether or not
actually received, if sent by U.S. mail, return receipt requested, postage and
charges 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
Senior Vice President for Business Affairs (fax no. 703-265-1206) and the
Deputy General Counsel (fax no. 703-265-1105), each at the address of AOL set
forth in the first paragraph of this Agreement. In the case of Viewpoint, such
notice will be provided to both the Chief Executive Officer (fax no.
212-201-0846) and the General Counsel (fax no. 212-201-0801) each at the
address of Viewpoint set forth in the first paragraph of this Agreement.

14.3     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 will not be construed as a

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AOL Confidential

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 will be
and remain in full force and effect.

14.4     Return of Information. Upon the expiration or termination of this
Agreement, each Party will, upon the written request of the other Party, return
or destroy (at the option of the Party receiving the request) all Confidential
Information specified by the other Party.

14.5     Survival. Sections 2.1(a)(ii and iii), 2.1(c)-(e) (unless termination is
due to breach by AOL in accordance with Section 8.3), 2.2, 2.3, 6, 7, 8.6, 9,
10, 12, 13 and 14 of the Agreement will survive the completion, expiration,
termination or cancellation of this Agreement.

14.6     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 will be bound by, and each Party
specifically objects to, any term, condition or other provision which is
different from or in addition to the provisions of this Agreement (whether or
not it would materially alter this Agreement) and which is proffered by the
other Party in any correspondence or other document, unless the Party to be
bound thereby specifically agrees to such provision in writing.

14.7     Amendment. No change, amendment or modification of any provision of this
Agreement will be valid unless set forth in a written instrument signed by each
Party, by an executive or officer authorized to bind such Party.

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

14.9     Assignment. Viewpoint will not assign this Agreement or any right,
interest or benefit under this Agreement without the prior written consent of
AOL. Notwithstanding the foregoing, but subject to Section 8.5, this Agreement
may be assumed by any entity that succeeds Viewpoint as a result of a Change of
Control. Subject to the foregoing, this Agreement will be fully binding upon,
inure to the benefit of and be enforceable by the Parties hereto and their
respective successors and assigns.

14.10     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 will 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 will remain in full force and
effect.

14.11     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; provided that, in connection with any dispute hereunder,
Viewpoint will be not entitled to offset any amounts that it claims to be due
and payable from AOL against amounts otherwise payable by Viewpoint to AOL.

14.12     Governing Law. This Agreement will 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.

14.13     Export Controls. Viewpoint shall be solely responsible for obtaining any
and all necessary approvals, registrations, certifications and other necessary
documentation for the international sale and export/import of the Licensed
Software. Viewpoint shall keep AOL informed at all times during the term of
this Agreement as to the export/import status of the Licensed Software.

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

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AOL Confidential

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

14.16     Insolvency. All rights and licenses granted under or pursuant to this
Agreement by Viewpoint to AOL with respect to the Licensed Software and related
Documentation are, and shall otherwise be deemed to be, for purposes of §
365(n) of Title 11 of the United States Code (the “Bankruptcy Code”), licenses
of rights to “intellectual property” as defined under § 101 of the Bankruptcy
Code. The parties agree that if AOL does not terminate this Agreement pursuant
to Section 8 and its subparts (“Term, Renewal, Termination, Fees”), AOL, as a
licensee of such rights and licenses, shall retain and may fully exercise,
provided it abides by the terms of this Agreement, all of its rights and
elections under the Bankruptcy Code, including without limitation any and all
rights to Updates to the Licensed Software and whether such Updates arise prior
or subsequent to the commencement of a case under the Bankruptcy Code. The
parties further agree that, in the event that any proceeding shall be
instituted by or against Viewpoint seeking to adjudicate it bankrupt or
insolvent, or seeking liquidation, winding up, reorganization, arrangement,
adjustment, protection, relief or composition of it or its debts under any law
relating to bankruptcy, insolvency or reorganization or relief of debtors, or
seeking an entry of an order for relief or the appointment of a receiver,
trustee or other similar official for it or any substantial part of its
property, or Viewpoint shall take any action to authorize any of the foregoing
actions (each a “Proceeding”), AOL shall have the right, in the event it has
not terminated this Agreement pursuant hereto, to retain and enforce its rights
under this Agreement including, but not limited to, the following rights
(provided it abides by the terms of this Agreement): the right to continue to
use the Licensed Software and all Updates and all related Documentation and
other supporting material related thereto, where so provided and in accordance
with the terms and conditions of this Agreement.

     IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of
the date first above written.

	 	 	 	 	 
	AMERICA ONLINE, INC	 	
VIEWPOINT CORPORATION
	 
	By:	          /s/  Gio Hunt	 	By:	          /s/  Robert E. Rice
	 	
	 	 	

	 
	Print Name: Gio Hunt	 	
Print Name: Robert E. Rice
	 
	Title: SVP, Technology Business Development	 	
Title: President and CEO
	 
	Date: September 30, 2002	 	
Date: September 30, 2002

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AOL Confidential

	 	EXHIBIT A
	 
	 	Definitions

Affiliate. (a) Any agent, distributor or franchisee of AOL, (b) an entity that
directly or indirectly controls, is controlled by or is under common control
with AOL, including for the sake of clarity (but not limited to) any entity
under the direct or indirect control of AOL Time Warner Inc. (“Affiliate”), or
(c) an entity in which AOL owns directly or indirectly at least twenty percent
(20%) of the voting, equity or equivalent interest and in which AOL exercises
some other indicia of control. For purposes of this provision, “control” means
ownership directly or indirectly of more than fifty percent (50%) of the
voting, equity or equivalent interest in an entity; and “other indicia of
control” means that an entity (i) operates principally under a brand (trademark
or trade name) owned or controlled by AOL or a Affiliate or (ii) has obtained a
technology license from AOL or a Affiliate to provide a substantial portion of
the infrastructure or functionality of such entity’s services.

AOL Client. Any client software (in a client/server software model) owned,
distributed, or authorized to be distributed by AOL or its Affiliates worldwide
under the AOL, Netscape, or Compuserve brands (as set forth in Exhibit B,
Section 3.9) and any new versions, upgrades, or updates thereto.

AOL End User. Any user of any AOL Network product or service.

AOL Network. (i) The America Online branded US narrowband service (“AOL
Service”) and (ii) any other product or service owned, operated, distributed or
authorized to be distributed by AOL or its Affiliates worldwide in which
content, communications services and/or transactions are provided to members,
subscribers and/or registrants through the use of any protocols, standards,
platforms, media or other methodology now or hereafter existing (including the
Internet and similar protocols, standards and platforms) from host server
computers or otherwise, including, without limitation, via telephone, ISDN,
DSL, cable, fiber optics, satellite, wireless, television or other type of
public or private network or other device.

AOL Rainman Environment. AOL’s proprietary technology for publishing content
on and through the AOL Network, and any updates, upgrades, new versions, or
successor technology.

AOL Server. The servers or host complexes (or any portion thereof) owned or
operated by or on behalf of AOL or its Affiliates (or third parties serving
advertising or promotions for AOL on the AOL Network) in order to provide AOL
Network services to AOL End Users.

Authoring Tools. The Viewpoint software used to package, encode and/or create
Viewpoint and/or UI Content in a format that can be viewed using the Media
Player Software.

Broadcast Key. As defined more completely in Exhibit C hereto, a Viewpoint
broadcast key file for the platforms hereto which authenticates Viewpoint
Content in such manner that Viewpoint Content can be viewed by Media Player
Software without image degradation due to watermarking or other digital rights
management mechanism.

Broadcast-Related Software. All software, databases and documentation
necessary to ensure that the Broadcast Keys remain valid and enable AOL to
fully exercise its Broadcast License and UI License rights hereunder.

Change of Control. (a) The consummation of a merger or consolidation or sale
or other disposition of substantially all of the assets of a party or (b) the
acquisition through one or more related transactions by any individual, entity
or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
Exchange Act of 1933, as amended) of beneficial ownership (within the meaning
of Rule 13d-3 promulgated under such Act) of more than 50% of either (i) the
then outstanding shares of common stock

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AOL Confidential

of such party; or (ii) the combined
voting power of the then outstanding voting securities of such party entitled
to vote generally in the election of directors.

[*]

Documentation. Viewpoint’s manuals and other documentation for the Licensed
Software (or portion thereof) as provided by Viewpoint to AOL (e.g.,
administrative guides and data sheets), whether in print or electronic form.
References to the Licensed Software in the Agreement shall be deemed to
generally include the Documentation, as applicable.

[*]

GPF (General Protection Fault). The name of an event, or crash, due to hardware
error, software error, divide by zero error or invalid operation code, which
causes a third party application, AOL client, or operating system to abnormally
terminate or produce an error message indicating that the system is generally
unable to continue normal operation.

Interactive Service. An entity offering one or more of the following: (i)
online or Internet connectivity services (e.g., an Internet service provider);
(ii) an interactive site or service featuring a broad selection of aggregated
third party interactive content (or navigation thereto) (e.g., an online
service or search and directory service) and/or marketing a broad selection of
products and/or services across numerous interactive commerce categories (e.g.,
an online mall or other leading online commerce site); (iii) a persistent
desktop client; or (iv) communications software capable of serving as the
principal means through which a user creates, sends or receives electronic mail
or real time or “instant” online messages (whether by telephone, computer or
other means), including without limitation, greeting cards.

Licensed Software. The Media Player Software, Broadcast Keys,
Broadcast-Related Software and Authoring Tools. Licensed Software shall
include, without limitation, the Documentation for such software, and any and
all Updates thereto.

Media Player Software. The Viewpoint media player plug-in software that
interprets and interactively displays digital content in the Viewpoint format
for the platforms described in Section 3.9 of Exhibit B hereto, in object code
format that Viewpoint makes commercially available, in any version and
including all Updates thereto. The Media Player Software consists of the
Viewpoint Hub and several Components and all Updates thereto.

Narrowband Speech Codec. An Update to the Media Player Software that Viewpoint
intends to make commercially available and that enables the playback of spoken
voice and simple sound effects.

Updates. Any and all updates, bug fixes, error corrections, enhancements,
upgrades, modifications or new versions or releases of the Licensed Software
(or portions thereof) that are made available during the Term. “Updates”
excludes any Additional Technology (as defined in Section 4).

[*]

	*	 	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

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[*]

Term. The period of the Initial Term and any Renewal Term.

UI Content. Any Viewpoint Content that appears as part of the AOL Client or
AOL Client features existing now or hereafter created during the Term of the
Agreement or any extension thereof, excluding third-party advertising. For the
sake of clarity, all Broadcast Keys provided to AOL for UI Content will not
expire or “time out” (e.g. no watermarking or degradation) at any time, even
after conclusion of the Term.

Viewpoint Technology. Any technology in existence now (including technology
licensed under previous iterations of this Agreement) or created during the
Term of the Agreement or any extension thereof which is necessary for AOL to
enjoy the full benefit of the licenses granted in this Agreement.

Viewpoint Content. Any content that has been packaged and/or encoded in the
Viewpoint format so that, when displayed and transmitted from a server on which
a Broadcast Key has been installed, it can be viewed with the Media Player
Software without image degradation due to watermarking or other digital rights
management mechanism. For the sake of clarity, all Broadcast Keys provided to
AOL for UI Content will not expire or “time out” (e.g. no watermarking or
degradation) at any time.

Viewpoint Hub. The Viewpoint software that manages the authentication,
retrieval, installation and automatic update of other software, including the
Viewpoint Hub itself and Components, within a cross-platform, cross-browser
framework. When deployed, the Viewpoint Hub is configured with a list of
trusted servers and Broadcast Keys.

	*	 	Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested with respect to the omitted portions.

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EXHIBIT B

Technical Specification

	1.	 	Scope
	 
	 	 	This document provides detailed technical requirements for an AOL
client-hosted multimedia player that utilizes future versions of the SDK
and ActiveX control, and bug reporting and response requirements relating
to this Agreement.
	 
	2.	 	Applicable Documents
	 
	 	 	The following documents are applicable to the extent specified herein:
	 
	3.	 	Performance
	 
	3.1	 	Backward compatibility of SDK’s and ActiveX interfaces
	 
	 	 	With respect to operating systems supported by Media Player Software at
any point during the Term, all API’s and ActiveX interfaces shall be
maintained for backward compatibility with respect to any such Media
Player Software supported operating systems.
	 
	3.2	 	[*]
	 
	3.3	 	File size of the Installer
	 
	 	 	Viewpoint shall provide a basic installer package to AOL that maintains a
consistent feature set across versions. The initial Viewpoint installer
package shall be no larger than 2.25 MB. In the event that a new
installer package exceeds the size of the previous installer package by
5%, Viewpoint will notify AOL as to this fact as soon as Viewpoint
becomes reasonably aware of the increase in size, and shall discuss with
AOL the implications of such size increase and manner in which to address
any negative impacts associated with such size increase. Any installer
and contents produced by Viewpoint will include this basic installer
package and be backwards compatible.
	 
	3.4	 	[*]
	 
	3.5	 	Abnormal Disconnect Rate
	 
	 	 	An Update of the Media Player Software SDK/Client integrated with AOL
client shall not cause an increase in the abnormal disconnect rate.
	 
	3.6	 	[*]
	 
	3.7	 	Internationalization
	 
	 	 	Viewpoint shall provide an installer of their client software and SDK in
all languages supported by current and anticipated versions of AOL. The
Media Player Software software and SDK shall be designed and implemented
so as to be easily localized to any language and locale.

	* Certain information on this page has been omitted and filed separately with the Commission.
Confidential treatment has been requested with respect to the omitted portions.

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AOL Confidential

	3.8	 	[*]
	 
	3.9	 	[*]
	 
	3.10	 	User Interface
	 
	 	 	Media Player Software client/SDK shall not preclude the use of an
AOL-supplied user interface.
	 
	3.11	 	[*]
	 
	3.12	 	[*]
	 
	3.13	 	[*]
	 
	4.0	 	Dedicated Support
	 
	 	 	Viewpoint will provide a dedicated account/product/project manager to
AOL. This person will be accountable for ensuring that all products and
bug fixes are delivered to AOL in accordance with AOL’s product
development schedule.
	 
	4.1	 	Bug Reporting Process
	 
	 	 	AOL and Viewpoint agree to utilize a standardized spreadsheet to notify,
update and close bugs. The companies will review this spreadsheet via
conference call on a weekly basis at minimum.
	 
	4.2	 	Resolution Process
	 
	 	 	Viewpoint will use commercial best
efforts with respect to Viewpoint
Technology to adhere to the resolution process provided in the table
below for any GPFs, bugs, problems, or any other errors inherent in or
caused by the Licensed Software as such Types of Error are reasonably
classified by AOL.

	 	 	 	 	 	 	 	 	 
	 	 	Viewpoint to assign	 	 	 	 	 	 
	 	 	engineer to	 	 	 	 	 	 
	 	 	investigate Error	 	Temporary	 	Software patch or	 	 
	Type of Error	 	within:	 	Work-around within:	 	bug fix within:	 	Upgrade within:
	
	 	
	 	
	 	
	 	

	GM stopper

(pre-release)High

Level Error

(post-release)	 	
Five (5) minutes
from having been
alerted
	 	Continuous effort
to minimize impact
of Error until
patch available
	 	Two (2) hours from
assignment of
technician
	 	30 days

	* Certain information on this page has been omitted and filed separately with the Commission.
Confidential treatment has been requested with respect to the omitted portions.

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	Beta stopper

(pre-release)

Medium Level Error

(post-release)	 	
Fifteen (15)

minutes from having

been alerted
	 	Continuous effort

during normal

business hours
	 	Five (5) hours from
assignment of
technician
	 	60 days
	 
	Alpha stopper

(pre-release)

Low-Level Error

(post-release)	 	
Fifteen (15)
minutes to
forty-five (45)
minutes from having
been alerted (or,
in the case of
technical personnel
requiring
assistance or
information,
Viewpoint to
provide such
assistance or
information within
eight (8) business
hours
	 	Consultative effort

during normal

business hours
	 	10 business days
from assignment of
technician
	 	the next scheduled

Upgrade

	 
	AOL acknowledges that the use of commercial best efforts with respect to Viewpoint Technology may not necessarily mean
that Viewpoint meets the specified timeframes in all cases, provided that it does mean that in all cases, and without
limitation, Viewpoint shall immediately, upon notification by AOL as to an Error, begin work to rectify such Error.
Furthermore, the intent of the specified timeframes is to establish that the Viewpoint responses (as outlined above) which
can be provided to AOL within the specified timeframes will be
provided within such timeframes.

	4.3	 	Reporting
	 
	 	 	Viewpoint will provide a report on a bimonthly basis that denotes
headcount and hours per department dedicated to developing software of
repairing bugs on behalf of AOL.
	 
	4.4	 	“GM Stopper” or “High-Level Error” means a catastrophic error in the
Licensed Software for which no work-around has been made available to AOL and
(i) that causes an important component or function that is commonly used to be
unusable, (ii) that causes a crash for a commonly used feature or function,
(iii) in which commonly used features are completely non-functioning, or (iv)
that results in data loss or corruption.
	 
	4.4	 	“Beta Stopper” or “Medium-Level Error” means a non-catastrophic error for
which no work-around has been made available to AOL and (i) for which a
commonly used or important feature or function is partially non-functioning or
malfunctioning, or (ii) that is otherwise neither a High-Level Error nor a
Low-Level Error.
	 
	4.5	 	“Alpha Stopper” or “Low-Level Error” means any Error (i) that has minimal
impact on the end user, (ii) that is rare in occurrence, regardless of
severity, (iii) that causes a malfunction of a non-essential feature or
function, or (iv) for which a work-around is available.

18

 

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EXHIBIT C

Structure, Operation, and Functionality of Broadcast Keys

The Broadcast Key controls the display of content served from a website and
played through the VMP. The broadcast key is used to validate that the content
is being served from an appropriate site, and within an appropriate timeframe,
as was designated by the content author through the generation of the key in
which such information is contained. By inspection of the key, the VMP will
determine if content is being broadcast by an inappropriate website, or over an
inappropriate timeframe, in which case the content will not be displayed.

The Viewpoint Media Player (“VMP”) is configured to search for two inputs: a
file(s) in the Viewpoint format (i.e., with the .mtx or .mtz extension) and a
Broadcast Key. If a Broadcast Key is not valid (or not present), the VMP will
display a watermark over the content.

The Key Generation Application is Windows-based. It generates a Broadcast Key
which is embodied in a text file with the “.mtx” extension. The Broadcast Key
is comprised of a string of characters which identify the broadcasting (or
publishing) location and the expiration date of the Broadcast Key. The string
of characters is the result of a sparse hash function performed on the URL of
the location from
which the content is intended to be published.

The Viewpoint Media Player will not display a watermark if the Broadcast Key
contains the correct hash value for the broadcasting location and the date has
not been exceeded.

19

 

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Exhibit D. Functions of the Custom Player

The Custom Player will have the same functionality as the then current Media
Player Software and will also support the operating system platforms identified
in Section 3.9 of Exhibit B to the Agreement. It will be installed on the
computers of AOL subscribers in such a way as to be unaffected by installations
of other versions of the Viewpoint Media Player that are made before or after
the installation of the custom version.

[*]

Within 30 days after Viewpoint releases modifications to its standard Viewpoint
Media Player, those modifications will also be made to the Custom Player after
being fully tested and accepted. This process will help to ensure that the
feature set in the standard player and the Custom Player remain equal during
the term of the Agreement. and that content published by AOL or other web
publishers will be supported by the Custom Player. In addition, the Custom
Player will have the capability of playing back content encoded in any previous
versions of Viewpoint’s encoding or decoding formats. [*]

The details of the technical approach, the deliverable milestones, and the
division of responsibilities will be established in good faith through
discussions between the Viewpoint and AOL engineering teams, (it being
understood that Viewpoint will have the primary role in modifying the
Viewpoint Media Player Software and developing the Custom Player). The parties
will document the approach in a a detailed statement of work to be performed
under the Consulting Services Agreement, dated September 30, 2002, between the
Parties. The parties expect that all coding, integration, and testing for the
custom Viewpoint Media Player will take no more than twelve weeks from the date
that the parties agree on the detailed statement of work.

	* Certain information on this page has been omitted and filed separately with the Commission.
Confidential treatment has been requested with respect to the omitted portions.

20

 

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Exhibit E

Escrow Acceptance

21AGREEMENT FOR CONSULTING SERVICES

 

EXHIBIT 10.30

AOL Confidential

CONFIDENTIAL

AGREEMENT FOR CONSULTING SERVICES

     THIS AGREEMENT FOR CONSULTING SERVICES is made and entered into as of
September 30, 2002 (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 Viewpoint Corporation, a Delaware
corporation, with principal offices at 498 7th Avenue, New, York, New York
10018 (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,
software engineering, and digital content production services
(collectively, “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. The Parties acknowledge and agree
that each Schedule is subject to specific timeframes and the Parties
shall use good faith efforts to execute each Schedule in a timely
manner; provided that each Schedule shall be reviewed by the
appropriate legal personnel of both Parties prior to execution by
either Party. Without limiting the foregoing, prior to the execution
of any Schedule or statement of work involving non-recurring
engineering services (“NRE Services”), Consultant and AOL shall work
together to prepare a detailed proposal for NRE Services, which
proposal shall include, without limitation, all major assumptions on
which the NRE Services are based (e.g., pricing, use and
applicability of NRE Services, etc.).
	 
	 	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 Schedule, Consultant shall (i)
observe the

 

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	 	 	 	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.

	 	(a)	 	Consultant has the right to perform services for others during
the term of this Agreement as long as Consultant performs the
Consulting Services with not less than the level of diligence with
which Consultant performs services for any other party. The Parties
understand and agree that in the course of performing the Consulting
Services, Consultant shall have access to AOL’s proprietary
information. In order to ensure compliance with the confidentiality
provisions of this Agreement and to adequately protect such
proprietary information, Consultant shall implement and enforce
appropriate “Chinese wall” procedures; such procedures are set forth
on Exhibit E attached hereto. Notwithstanding and without limiting
the foregoing, Consultant shall not perform services for an AOL
Competitor that are substantially similar to services Consultant is
then performing for AOL. “Substantially similar” means that (i) the
services involve the same Viewpoint technology (e.g., ZoomView); and
(ii) the services make use of the same promotional theme (e.g., a
board game theme). For the avoidance of doubt, however, Consultant’s
performance of services involving general product modeling with
animations, advertisements, and other general digital content
production services shall not constitute substantially similar
services to the Consulting Services hereunder. As used herein, “AOL
Competitor” shall mean any entity listed on Exhibit D hereto;
provided that AOL may update such list no more often than once per
quarter, upon written notice to Consultant. In the event that
Consultant violates any provision of this Section 1.4, AOL shall have
the right to terminate this Agreement immediately upon written notice
to Consultant, without regard to any cure period set forth in this
Agreement.
	 
	 	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

 

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	 	 	 	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 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 during the term of each Schedule as more fully
set forth in the individual 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, at which the AOL Project Manager and Consultant’s
designated representative shall review the status of the Consulting
Services. In the event that as a result of any such meeting, either
Party requires changes to any Deliverable that has already been
accepted by AOL, such changes shall be subject to a change order and
potentially additional fees as mutually agreed by the Parties. With
respect to Consulting Services performed on a time and materials
basis, AOL acknowledges that preparation of a Progress Report(s) may
result in increased fees.
	 
	 	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

 

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	 	 	 	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 Schedule. All
Consulting Services to be performed on a time and materials basis
shall be invoiced in arrears. Any fees to be paid by AOL hereunder
for digital content production services may be reduced pursuant to
Section 8.7(b)(ii) of the License Agreement (as defined in Section 9
of this Agreement), so long as AOL makes the appropriate elections
under the License Agreement. The Parties shall designate on each
Schedule the amount (if any) by which the fees for such Schedule are
reduced. Consultant’s hourly rates for digital content production
services performed for the first twelve (12) month period during the
Term (the “First Agreement Year”) will be as set forth on Exhibit F
attached hereto. Following the First Agreement Year, Consultant
shall provide AOL with a discount of fifteen percent (15%) from its
standard rates for digital content production services performed
during the Term; provided that in no event shall the rates charged by
Consultant to AOL for digital content production services increase by
more than five percent (5%) per successive 12-month period during the
Term.
	 
	 	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 thirty (30) days of AOL’s receipt of each invoice, accompanied
by an Acceptance Certificate executed by the AOL Project Manager.

 

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	 	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 four (4) 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 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 indemnify 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 limitation, 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. Acceptance criteria shall be fully set forth in the
applicable Schedule. AOL shall provide Consultant with the information,
data, drawings, designs, or other materials and resources listed and
described in the Scope of Work that are reasonably necessary for
Consultant to perform the Services (the “Reference Materials”). If
Consultant is delayed in completing the Deliverables set forth in any
Schedule primarily due to a failure by AOL to perform its obligations
under such Schedule, including delivery of any Reference Materials, and
Consultant notifies AOL in writing of such failure and the resulting
delay, then the time for performance/delivery dates referenced in the
Schedule shall each be extended by the amount of time of Consultant’s
delay directly attributable to such failure 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”). The Parties
understand and agree that certain rights and

 

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	 	 	 	obligations hereunder are dependent upon the continuation in force
of the License Agreement (as defined in Section 9) and that in the
event that the License Agreement expires or terminates prior to the
expiration or termination of this Agreement, the Parties will
promptly review the status of any Schedules hereunder.
	 
	 	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 thirty (30) 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 two
weeks’ 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 any proceeding related to its liquidation or
insolvency (whether voluntary or involuntary) which is not dismissed
within ninety (90) 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.
	 
	8.	 	Prior Agreements. This Agreement supercedes the Consulting Services
Agreement between the Parties dated March 21, 2002 and the services
performed thereunder including, but not limited to, services performed
in accordance with the following:

	 	        •	 	Viewpoint Ad Format Sales CD Statement of Work dated January 29,
2002;
	 
	 	        •	 	Channel Content Statement of Work dated March 12,
2002 (NASCAR Project) and Change Order dated April 9, 2002;
	 
	 	        •	 	Scope of Work dated March 21, 2002 (Scooby Doo Project);
	 
	 	        •	 	Scope of Work dated May 9, 2002 (Shop@AOL Project);
	 
	 	        •	 	Scope of Work dated June 19, 2002 (NBC project);
	 
	 	        •	 	Scope of Work dated June 28, 2002 (AIM 8-Legged Freaks project);
	 
	 	        •	 	Scope of Work dated July 29, 2002 (Old Navy Project);

 

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	 	        •	 	Scope of Work dated August 12, 2002 (Teens/CDC project); and
	 
	 	        •	 	Scope of Work dated August 14, 2002 (Gateway desktop project).

		
	 	     The Production Services Agreement dated January 25, 2002 and the Statement
of Work dated February 4, 2002 (entitled “3D Navigation User Interface
Design and Implementation”) shall continue in force.

	9.	 	Affiliates. To the extent any of AOL’s Affiliates wish to engage
Consultant to perform Consulting Services upon the terms set forth hereunder,
such Affiliate shall execute a Schedule hereunder (an “Affiliate Schedule”).
Such action shall have the same effect as if such AOL Affiliate entered into
this Agreement separately with Consultant and all references to AOL therein
were to such AOL Affiliate. Such Affiliate Schedule shall be subject to all
terms and conditions of this Agreement and the Affiliate executing such
Schedule shall be solely responsible for any payment or other obligations
incurred under such Schedule. Similarly, all obligations of Consultant under
any Affiliate Schedule shall be solely to the Affiliate executing such Schedule
and not to AOL. As used herein, “Affiliate” shall have the meaning set forth
in the Amended and Restated License and Services Agreement by and between AOL
and Consultant, dated as of July 19, 2001, as amended (the “License
Agreement”).

     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:        /s/  Geo
Hunt

Print Name: Geo Hunt	 	
By:        /s/  Robert E. Rice

Print Name: Robert E. Rice
	Title: SVP, Technology Business Development	 	
Title: President and CEO
	Date: September 30, 2002	 	
Date: September 30, 2002

 

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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 of 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 sites 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 without AOL’s prior written consent or as
specifically set forth in a Schedule.

	II.	 	CONFIDENTIALITY/PROPRIETARY RIGHTS/ /NON-SOLICITATION

Confidentiality. Each Party acknowledges that Confidential Information may be
disclosed to the other Party during the course of this Agreement. Each Party
agrees that it will take reasonable steps, at least substantially equivalent to
the steps it takes to protect its own proprietary information, during the term
of this Agreement, and for a period of three years following expiration or
termination of this Agreement, to prevent the duplication or disclosure of
Confidential Information of the other Party, other than by or to its employees
or agents who must have access to such Confidential Information to perform such
Party’s obligations hereunder, who will each agree to comply with this Section.
Notwithstanding the foregoing, either Party may issue a press release or other
disclosure containing Confidential Information without the consent of the other
Party, to the extent such disclosure is required by law, rule, regulation or
government or court order. In such event, the disclosing Party will provide,
if reasonably possible, at least five (5) business days prior written notice of
such proposed disclosure to the other Party. Further, in the event such
disclosure is required of either Party under the laws, rules or regulations of
the Securities and Exchange Commission or any other applicable governing body,
such Party will (i) redact mutually agreed-upon portions of this Agreement to
the fullest extent permitted under applicable laws, rules and regulations and
(ii) submit a request to such governing body that such portions and other
provisions of this Agreement receive confidential treatment under the laws,
rules and regulations of the Securities and Exchange Commission or otherwise be
held in the strictest confidence to the fullest extent permitted under the
laws, rules or regulations of any other applicable governing body. For
purposes of this Agreement, “Confidential Information” shall mean any
information relating to or disclosed in the course of the Agreement, which is
or should be reasonably understood to be confidential or proprietary to the
disclosing Party, including, but not limited to, the material terms of this
Agreement, information about AOL Members, AOL end-users, AOL broadband service
registration information, technical processes and formulas, source codes,
product designs, sales, cost and other unpublished financial information,
product and business plans, projections, and marketing data. “Confidential
Information” will not include information (a) already lawfully known to or
independently developed by the receiving Party, (b) disclosed in published
materials, (c) generally known to the public, or (d) lawfully obtained from any
third party.

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. The Parties acknowledge that disclosure of either Party’s
Confidential Information by the other Party will give rise to irreparable
injury to the disclosing Party, its subsidiaries and/or affiliated companies or
the owner of such information, inadequately compensable in damages.
Accordingly, the disclosing 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.

Proprietary Rights. Upon acceptance of the Deliverables in accordance with
this Agreement, Consultant shall be deemed to have assigned to AOL and AOL
shall acquire (i) all of Consultant’s copyrights to the digital images
comprising each Deliverable, (ii) all of Consultant’s right, title, and
interest in the object code version of any files included as part of any
Deliverable, and (iii) any and all other IP rights in and versions of all
Deliverables (except as specifically set forth herein with respect to the
Non-AOL Content Elements) (the “Content Elements,” “Work” or “Materials”) that
are created by Consultant for the specific purpose of composing the
Deliverables (“AOL Elements”). To the extent that Content Elements that are
not created by Consultant for the specific purpose of composing the
Deliverables (“Non-AOL Elements”) are included in the Deliverables, Consultant
hereby grants to AOL a non-exclusive, worldwide, perpetual right and license to
use, display, reproduce, distribute, perform or modify the Non-AOL Elements.
However, such Deliverable shall not be considered a derivative work (as defined
by U.S. copyright law) and AOL shall own any customized enhancement(s) or
addition(s) to the Non-AOL Elements so incorporated, including the intellectual
property rights therein. The Parties hereby acknowledge and agree that all
Non-AOL Elements and all of Consultant’s proprietary methodologies for delivery
of its services (“Consultant Tools”), including but not limited to Consultant’s
proprietary software tools and design concepts, process guidelines and
methodologies, which are used by Consultant in performing the Services, are and
shall remain the exclusive property of Consultant.

Consultant grants to AOL at no additional cost a perpetual, worldwide,
non-exclusive, non-transferable license to use the Consultant Tools. AOL
acknowledges that as part of Consultant’s performance of Services, Consultant
may develop or modify software tools, programming aids,

 

 

AOL Confidential

algorithms, code libraries, translators, diagnostic aids, and other software
(“Consultant Modifications”). Such Consultant Modifications and all
intellectual property related thereto shall remain the sole and exclusive
property of Consultant, except as set forth below regarding AOL Customization.
To the extent AOL requires a Broadcast License in connection with any
Deliverable(s), the Parties agree and acknowledge that Consultant has granted
such Broadcast License under the License Agreement (as defined in Section 9 of
this Agreement). Notwithstanding the foregoing, in the event that providing the
Deliverables hereunder, including without limitation Consultant’s ZoomView
technology, requires the development, modification, enhancement, customization
or creation of material based upon AOL Confidential Information (the “AOL
Customization”), any and all AOL Customization is 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. “AOL Customization” shall not be deemed to include any
Consultant Confidential Information. To the extent that title to any such AOL
Customization 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 rights, title and interest in and to such AOL Customization. All AOL
Customization 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, provided that such protections do not conflict
with copyrights, registrations, patents, or such legal protection in such
non-customized materials as may already be owned by Consultant. Consultant
agrees to give AOL and any person designated by AOL such reasonable assistance,
at AOL’s expense, as is required to perfect, secure, and protect AOL’s
intellectual property and other rights set forth in this Paragraph.

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, developed pursuant to such Schedule.

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. During the term of this Agreement, AOL shall not hire or
attempt to hire any Restricted Employee (as defined below) to join the Product
Content group within the Product Marketing department or the Client Engineering
Group within the AOL Technology department. Notwithstanding the foregoing, AOL
may employ any person who (a) initially contacts AOL without solicitation,
directly or indirectly, by AOL or (b) responds to any general media
solicitation of employment or engagement by AOL or to any solicitation or
inquiry from a recruiter retained by AOL provided that such person is not
specifically identified or targeted by AOL for such solicitation or inquiry.
The following individuals shall be deemed Restricted Employees: Sree Kotay,
Executive Vice President and Chief Technology Officer; Ales Holecek, Senior
Vice President, Technology; Javier Roca, Senior Design Manager; and Jeffrey
Jouppi, Technical Designer.

	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 or 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) provided AOL has free,
good and clear title to the information provided to Consultant in connection
with the performance of this Agreement (“AOL Originals”), 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, which title shall be free and clear
of any and all liens, encumbrances, claims or litigation, whether pending or
threatened, (d) provided the AOL Originals do not infringe or violate (i) any
copyright, trademark, patent, (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) any AOL current or then-current
standards and guidelines made available to Consultant by AOL, no Work,
Deliverable or other materials delivered by Consultant to AOL hereunder,
including without limitation Materials, 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 or any AOL service guidelines or
standards made available to Consultant by AOL, and (e) provided the AOL
Originals do not contain any scandalous, libelous or unlawful matter or
material, no Work, Deliverable or other materials delivered by Consultant to
AOL hereunder, including without limitation, Materials, 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 of 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, indemnify and hold harmless AOL, its
officers, directors, agents, Affiliates (as defined in the License Agreement),
distributors, franchisees and employees from any and all loss and third party
claims, demands, liabilities, costs or expenses, including without limitation
reasonable attorneys’ fees and expenses (“Liabilities”) resulting from (a)
claims of libel, defamation, violation of right of copyright infringement
trademark infringement or other infringement or any third party right, fraud,
false advertising, misrepresentation, product liability or violation of any
law,

 

 

AOL Confidential

statute, ordinance, rule or regulation throughout the world 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 or Materials, or the use thereof by AOL, and (b)
Consultant’s material breach of any obligation, duty, representation or
warranty contained in this Agreement or in any Schedule attached hereto. AOL
will notify Consultant of any claim, demand or action (an “Action”) for which
indemnity is claimed within ten (10) days of receipt of written notice of such
Action, and will give Consultant control of the defense and of the claim,
action or allegation. Consultant’s counsel defending such Action shall be
subject to AOL’s prior written approval. AOL reserves the right to participate
fully in and assume joint control of the defense of any Action, at its cost and
expense. Settlement of any Action shall be subject to AOL’s prior written
approval.

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, distributors, franchisees and employees from any and all
Liabilities solely resulting from Consultant’s authorized use of any materials
provided by AOL to Consultant to perform Consultant’s obligations hereunder.

	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 date, whether or not
actually received, if sent by U.S. mail, return receipt requested, postage and
charges 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 Manger and the Deputy General Counsel (fax no. 703-265-1105), each 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 provision which is
different from or in addition to the provisions of this Agreement (whether or
not it would materially alter this Agreement) and which is proffered 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, or as set forth in any Schedule.

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. This Agreement shall be interpreted, construed and enforced in
all respects in accordance with the laws of the State of New York except for
its conflicts of laws principles. Each Party irrevocably consents to

 

 

AOL Confidential

the exclusive jurisdiction of the state courts and federal courts situated in
New York City 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.
Notwithstanding the foregoing, any judgments entered into in an action under
this Agreement may be enforced in any court of competent jurisdiction.

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 proscribed country 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, and Deliverables, 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 ANY OTHER PARTY HAS BEEN WARNED OF THE POSSIBILITY OF ANY
SUCH LOSS OR DAMAGE IN ADVANCE; PROVIDED THAT CONSULTANT SHALL REMAIN LIABLE TO
AOL AND/OR ITS AFFILIATES TO THE EXTENT ANY DISCLAIMED DAMAGES ARE AWARDED TO A
THIRD PARTY OR INCLUDED IN A SETTLEMENT AND ARE SUBJECT TO INDEMNIFICATION AS
SET FORTH ABOVE.

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.

 

 

AOL Confidential

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	 	 	 
		
		
	
	 	

	 	 	 
	         Item 2A:	 	 
	 	 	

	         Item 2B:	 	 
	 	 	

	         Item 2C:	 	 
	 	 	

	         Item 2D:	 	 
	 	 	

	4.       Payments approved by AOL:	 	
AOL Approval

	 	 	 	 	 	 	 
	 	 	
Monthly
	 	 	 	

	 	
	 	 	 	 	 
	 	 	
Upon Completion	 	 	 	 
	 	 	 	 	 	 	

	 	
	 	 	 	 	 
	 	 	
Other (describe:
	)	 	 	 
	 	 	

	 	 	 	

	 	
	 	 	 	 	 
	 	 	
Progress Payments as follows:	 	 	 	 
	 	
	 	 	 	 	 

 

 

AOL Confidential

	 	 	 	 	 	 	 
	 	 	Progress Payments	 	Progress Milestones	 	AOL Approval
	 	 	
	 	
	 	

	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 the amount set forth above for the Progress Milestone
Consultant is working to complete at the time the Agreement or Schedule is
terminated.

 

 

AOL Confidential

EXHIBIT D

List of AOL Competitors

Yahoo!

Microsoft Networks and brands (e.g., Hotmail; MSN; MSN Messenger, etc.)

Earthlink

United Online (Net Zero and Juno)

Amazon

Ebay

USA Interactive

Comcast

Lycos

AT&T Broadband

Cox Communications

Charter Communications

Cablevision

 

 

AOL Confidential

EXHIBIT E

Chinese Wall Protection of AOL Confidential and Proprietary Information

In order to protect the vital confidential and proprietary interests of AOL,
Consultant shall be responsible for implementing the following security
measures with respect to Consultant’s employees and Assistants, as well as to
any aspect relating to Consultant’s performance of the Consulting Services.
Consultant is committed to protecting the confidentiality of all AOL
confidential and proprietary information. Consultant shall also implement any
other security measures reasonably requested by AOL.

1) Notification. Consultant shall notify and distribute copies of this Exhibit
E to all people working on this matter including, without limitation, the
employees listed herein, clerks, and administrative and other staff and
instruct such people to follow the procedures required to adhere to the
requirements and procedures set forth in this Exhibit E.

2) Assignment of project code name. Consultant shall assign a project “code
name” to the Consulting Services. All references to the Consulting Services
shall be under this project code name and only those employees and Assistants
working on the project shall know that the project is for AOL. All Code Names
shall mirror the name of the project as reflected on the applicable Schedule.

3) Consultant Team Members. Consultant shall provide to AOL in writing a list
of employees that are assigned to provide Consulting Services (the “Consulting
Services Team”) and shall update such list in writing within three (3) business
days of any change in the Consulting Services Team. In addition to the
restrictions set forth in Section 1.4 of the Agreement, during the term of any
Schedule and for two (2) months (the “Buffer Period”) after the earliest of (i)
AOL’s deployment of deliverables set forth in any such Schedule; (ii) AOL’s
final acceptance of all deliverables set forth in any such Schedule; or (iii)
the expiration or termination of such Schedule, no member of the Consulting
Services Team shall perform services for any AOL Competitor which are
substantially similar to services Consultant is then performing for AOL.
Notwithstanding anything to the contrary in this Agreement or any Exhibit
hereto, the expiration of the Buffer Period does not relieve Consultant or its
employees or agents of any confidentiality obligations under the Agreement.

4) No internal references to the AOL project. Consultant employees assigned
to perform Consulting Services, including those who have worked or will work on
any aspect relating to the Consulting Services shall not discuss, exchange
documents, or communicate (including, without limitation, email, intranet, and
all other means of communications) with any other non AOL team member or
Consultant’s other employees in any manner regarding the Consulting Services.

5) Confidentiality Agreements executed by all Consultant team members.
Consultant shall require that the members of the Consulting Services Team shall
execute Consultant’s standard confidentiality agreement, a copy of which has
been provided by AOL.

6) Restricted Access to Paper Files: The files and documents relating to the
Consulting Services shall be kept in a secure place and will not be part of any
central filing system; instead, they will be maintained in separate file
cabinets which will bear the following legend:

RESTRICTED ACCESS

THESE FILES ARE SUBJECT TO AN ETHICAL WALL PURSUANT TO AN AGREEMENT DATED
     , 2002. IMPORTANT: DO NOT DISCUSS THIS MATTER OR PROVIDE ACCESS TO
THIS FILE OR ANY DOCUMENTS RELATING TO THIS MATTER.

A copy of this Exhibit E shall be prominently placed in each of the paper files
relating to the Consulting Services.

 

 

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EXHIBIT F

CONSULTANT HOURLY RATES

Digital Content Production Services

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Category	 	Type	 	Viewpoint Rate Card	 	AOL Rate Card
	
	 	
	 	
	 	

	Models
	 	Models	 	$	167	 	 	$	142	 
	Digitizing
	 	Digitizing	 	$	123	 	 	$	105	 
	Animations
	 	Camera & Object Animations	 	$	208	 	 	$	177	 
	 
	 	Animated Textures	 	$	187	 	 	$	159	 
	 
	 	Text Annotations	 	$	170	 	 	$	145	 
	 
	 	Bit-Map Annotations	 	$	332	 	 	$	282	 
	Photo Studio
	 	Photographic Time	 	$	221	 	 	$	188	 
	Web Integration
	 	Web Integration	 	$	217	 	 	$	185	 
	Web Design
	 	Web Design	 	$	234	 	 	$	199

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