Document:

ex10-27

 

EXHIBIT 10.27

UNITED STATES INTERNET CONTENT (WORLD WIDE WEB SITE)

DISTRIBUTION AGREEMENT

     THIS AGREEMENT, dated as of December ___, 2001 (the “Effective Date”), is
made by and between InfoSpace Sales LLC, a Delaware limited liability company
(“InfoSpace”), with offices at 601 108th Avenue NE, Suite 1200, Bellevue, WA
98004 and uDate.com, Inc., a Delaware corporation (“Company”), with offices at
New Enterprise House, St. Helens St., Derby DE1 3GY, UK.

RECITALS

     This Agreement is entered into with reference to the following facts:

     A.      Company maintains on certain locations of the Company Web Sites (as
defined below) and makes available to Internet users certain content,
resources, archives, indices, software, catalogs and collections of information
(collectively, such materials are identified on Exhibit A and referred to
herein as the “Content”).

     B.      Company wishes to grant certain rights and licenses to InfoSpace with
respect to access to the Content and certain other matters, and InfoSpace
wishes to grant certain rights and licenses to Company with respect to the
Excite Web Site (as defined below) and certain other matters, as set forth in
this Agreement.

AGREEMENT

     The parties agree as follows:

              Section 1.      Definitions

              As used herein, the following terms have the following defined meanings:

              “Advertising Revenue” is defined on Exhibit C.

              “Banner Advertisement” means a rotating banner advertisement of
approximately 468 x 60 pixels located at the top and or bottom of a Web Page.

              “Click” means each instance a user accesses a Company Web Site by clicking
on a Promotional Placement.

              “Co-branded Pages” means, collectively, Query Pages and Results Pages.

              “Company Marks” means those Trademarks of Company set forth on Exhibit B
hereto and such other Trademarks (if any) as Company may from time to time
notify InfoSpace in writing to be “Company Marks” within the meaning of this
Agreement.

 

 

              “Company Web Sites” means the Kiss.com Web Site (“Kiss”) maintained by or
on behalf of Company and its affiliates.

              “Excite Web Site” means the InfoSpace Web Site located at the following
URL: http://www.excite.com.

              “Graphical User Interface” means a graphical user interface, to be
designed by Company and InfoSpace and implemented by Company pursuant to the
terms of this Agreement, that contains or implements branding, graphics,
navigation, content or other characteristics or features such that a user
reasonably would conclude that such interface is part of the Excite Web Site.

              “InfoSpace Marks” means those Trademarks of InfoSpace set forth on Exhibit
B hereto and such other Trademarks (if any) as InfoSpace may from time to time
notify Company in writing to be “InfoSpace Marks” within the meaning of this
Agreement.

              “InfoSpace Web Sites” means, collective: (a) the Web Sites, the primary
home page of which is located at http://www.infospace.com; and (b) other Web
Sites maintained by InfoSpace and its affiliates.

              “Intellectual Property Rights” means any patent, copyright, rights in
Trademarks, trade secret rights, moral rights and other intellectual property
or proprietary rights arising under the laws of any jurisdiction.

              “Paid Subscribers” means visitors to www.excite.com who join the Kiss
service, through an Excite link, by completing the Kiss registration form,
submitting it and then paying to join the Kiss service with a credit card in a
transaction which is accepted.

              “Person” means any natural person, corporation, partnership, Limited
Liability Company or other entity.

              “Promotional Placement” means any banner advertisement, button or other
Website-based promotional placement specified on Exhibit C.

              “Query Page” means any page hosted on the Company Web Sites which
incorporates the Graphical User Interface and on which users clicking directly
from the Excite Web Site may input queries and searches relating to the Content
or may include download of or access to Content.

              “Results Page” means any page hosted on the Company Web Sites which
incorporates the Graphical User Interface and displays Content in response to
queries and searches made on a Query Page.

              “Trademarks” means any trademarks, service marks, trade dress, trade
names, corporate names, proprietary logos or indicia and other sources or
business identifiers.

              “Web Site” means any point of presence maintained on the Internet or on
any other public data network. With respect to any Website maintained on the
World Wide Web, such Website includes all HTML pages (or similar unit of
information presented in any relevant data protocol) that either (a) are
identified by the same second-

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 level domain (such as infospace.com) or by same equivalent level
identifier in any relevant address scheme, or (b) contain branding, graphics,
navigation or other characteristics such that a user reasonably would conclude
that the pages are part of an integrated information or service offering.

              2.      Certain Rights Granted.

              2.1      Company
Grant. Subject to the terms and conditions of this Agreement,
Company hereby grants to InfoSpace the following rights:

                       (a)      the right to include on the Excite Web Site hypertext link(s) (whether
in graphical, text or other format) which enable “point and click” access to
locations of the Company Web Sites that contain relevant Content, as specified
by Company (and subject to change by Company from time to time); and

                       (b)      the right to permit users to link to Results Pages via Query Pages
hosted on the Company Web Sites.

              2.2      InfoSpace Grant. Subject to the terms and conditions of this
Agreement, InfoSpace hereby grants Company the following rights:

                       (a)      the right to include on the Co-branded Pages hypertext links (whether
in graphical, text or other format) which enable “point and click” access to
locations of the Excite Web Site specified by InfoSpace (and subject to change
by InfoSpace from time to time).

              2.3      Limitations. This Agreement shall not cause InfoSpace to be in
violation of any law of any jurisdiction or third party agreement, and
InfoSpace may at any time modify its grant of rights to the extent necessary to
ensure compliance. InfoSpace may from time to time issue additional guidelines
with respect to use or display of any of the Content on the Excite Web Site,
and Company will implement such requirements. Company shall post a link to its
privacy policy on the Co-branded pages so as to be readily accessible to users.
Such policy shall fully and clearly disclose Company’s data collection, use,
disclosure, dissemination and security practices, including a full and clear
discussion of user personal data in relation to any services provided by
Company to InfoSpace under this Agreement. Company shall receive the informed
consent of users for such practices where user information is concerned.
InfoSpace may include from time to time within such privacy policy such pass
through terms as InfoSpace may determine in its sole discretion.

              2.4      Content. Company shall ensure that the Content shall be and remain
fully compatible with the Excite Web Site; provided, however, upon request from
Company, and at Company’s sole expense, InfoSpace shall make commercially
reasonable efforts to assist Company in resolving any Content related
compatibility problem. Without limiting the generality of the foregoing, all
Content shall be provided to InfoSpace by Company within such time period
sufficient to allow the Content maintained on the Excite Web Site to mirror to
a reasonable degree the Content maintained on Company Web Sites and any other
third party web site to whom Company may provide all or any portion of such
Content.

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              2.5      Company Marks License. Subject to Section 3.7, Company hereby grants
InfoSpace the right to use, reproduce, publish, perform and display the Company
Mark(s): (a) on the Excite Web Site in connection with the posting of
hyperlinks to the Company Web Sites; and (b) in and in connection with the
development, use, reproduction, modification, adaptation, publication, display
and performance of the Graphical User Interface, and Results Pages.

              2.6      InfoSpace Marks License. Subject to Section 2.7, InfoSpace hereby
grants Company the right to use, reproduce, publish, perform and display the
InfoSpace Marks on the Company Web Sites in connection with the posting of
hyperlinks to the Excite Web Site.

              2.7      Approval of Trademark Usage. InfoSpace shall not use or exploit in
any manner any of the Company Marks and Company shall not use or exploit in any
manner any of the InfoSpace Marks, except in such manner and media as the other
party may consent to in writing, which consent shall not be unreasonably
withheld or delayed. Either party may revoke or modify any such consent upon
written notice to the other party.

              2.8      Nonexclusivity. Each party acknowledges and agrees that the rights
granted to the other party in this Agreement are non-exclusive, and that,
without limiting the generality of the foregoing, nothing in this Agreement
shall be deemed or construed to prohibit either party from participating in
similar business arrangements as those described herein including soliciting
third party advertisements or other materials, serving advertisements or other
materials to third parties’ Web Sites, or hosting or permitting third parties
to place advertisements on such party’s Web Site, whether or not, in each such
case, such advertisements are competitive with the products, services or
advertisements of the other party.

              3.      Certain Obligations of the Parties

              3.1      Graphical User Interface and Co-branded Pages. To the extent provided
in this Agreement, Company and InfoSpace will cooperate to design the
user-perceptible elements of the Graphical User Interface, with the goals of:
(a) conforming the display output of the “look and feel” associated with the
Excite Web Site; and (b) maximizing the commercial effectiveness thereof.
Following agreement by the parties upon the design specifications thereof,
Company will develop the Graphical User Interface and implement the same on the
Co-branded Pages. In the event the parties are not able to agree upon the
design specifications of the Graphical User Interface, InfoSpace may terminate
this Agreement upon written notice to Company. InfoSpace may, at any time
during the Term, host the Co-branded Home Page upon ten (10) days prior notice
to Company. In the event InfoSpace hosts the Co-branded Pages, InfoSpace may
integrate content from third party content providers on the Co-branded Pages,
provided that such content is not competitive with Company’s Content.

     Each party agrees to post the other party’s copyright, trademark, and
patent notices, including those of third party content providers, on the
Co-branded Pages.

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              3.2      Links to Co-branded Pages. InfoSpace will integrate links to the
Co-branded Pages on the Excite Web Site, provided that the location,
prominence, and placement of such links will be determined by InfoSpace in its
sole discretion.

              3.3      Availability of Co-branded Pages. During the Term, Company shall
provide an overall monthly Availability Level of 99.9% for the Co-branded
Pages, measured over each calendar month. The Availability Level for
Co-branded Pages shall be calculated by the following formula:

		
	 	        Planned Availability of Co-branded Pages = Available time in month
– scheduled maintenance time
	 
	 	        Actual Availability of Co-branded Pages = Planned Availability of
Co-branded Pages – unscheduled downtime
	 
	 	        Availability Level (%) = Actual Availability of Co-branded
Pages/Planned Availability of Co-branded Pages.

In the event Company fails to meet an overall monthly Availability Level of
99.9%, InfoSpace may terminate this Agreement upon written notice to Company.

              3.4      Promotional Placement. Company, in consultation with InfoSpace, shall
design and deliver to InfoSpace the Promotional Placements called by Exhibit B.
InfoSpace shall be entitled to reject or require modification of any proposed
Promotional Placements if, in its sole discretion, it determines that such
Promotional Placements are unsuitable for posting on the InfoSpace Web Sites.
During the Term, InfoSpace will post and maintain approved Promotional
Placements on the InfoSpace Web Sites. Except as otherwise specified on
Exhibit C, the positioning and prominence of all Promotional Placements shall
be determined by InfoSpace in its sole discretion.

		
	 	Guarantees. In the event that InfoSpace fails to deliver any
monthly guarantee of minimum Clicks as set forth on Exhibit C,
InfoSpace shall use commercially reasonable efforts to “make good”
on any such deficiency in the subsequent month during the Term,
provided that Company’s sole and exclusive remedy for any failure
by InfoSpace to deliver such number of Clicks by the end of the
Term shall be to extend the Term, by written notice to InfoSpace,
until the earlier of: (a) delivery of the guaranteed number of
Clicks; and (b) six (6) months after the previously contemplated
end of the Term.

              3.6      Publicity. The parties may work together to issue publicity and
general marketing communications concerning their relationship and other
mutually agreed-upon matters, provided, however, that neither party shall have
any obligation to do so. In addition, neither party shall issue such publicity
and general marketing communications concerning their relationship without the
prior written consent of the other party. Neither party shall disclose the
terms of this Agreement to any third party other than its outside counsel,
auditors, and financial advisors, except as required by law.

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              4.         Advertising and Referral Fees.

              4.1         Placement of Advertisements. As between the parties, InfoSpace shall
have the exclusive right to sell and serve all available advertisements
(including without limitation, Banner Advertisements) for the Co-branded Pages.
InfoSpace shall be entitled to retain all sums received by InfoSpace for any
such advertisements and shall have no duty to account to Company regarding any
such sums. InfoSpace will not post Banner Advertisements for (a) tobacco,
alcohol, or products of an adult nature; and (b) any of Company’s competitors
set forth in Exhibit D (as may be updated by Company once every 12 months
during the Term), provided that Company’s sole remedy in the event InfoSpace
posts such Banner Advertisements on the Co-branded Pages, shall be removal of
such Banner Advertisement within two (2) business days. InfoSpace will only
serve 468 X 50 ads on the Co-branded Pages. These will be in the regular gif
format and animation is permitted. InfoServe must not use any code or feature
that will increase or alter the size of the advertisement. Any other ad format
or size will not be permitted on the Co-branded Pages.

              4.2      Remuneration; Collection. Company will pay InfoSpace the amounts as
set forth on Exhibit C. Any amounts not paid when due, or as invoiced, will be
subject to a finance charge equal to one and one-half percent (1.5%) per month
or the highest rate allowable by law, whichever is less, determined and
compounded daily from the date due until the date paid. Payment of such
finance charges will not excuse or cure any breach or default for late payment.
InfoSpace may accept any check or payment without prejudice to its rights to
recover the balance due or to pursue any other right or remedy. No endorsement
or statement on any check or payment or letter accompanying any check or
payment or elsewhere will be construed as an accord or satisfaction. Unless
explicitly stated on Exhibit C, all amounts payable under this Agreement are
denominated in United States dollars and each party will pay all amounts
payable under this Agreement in lawful money of the United States. Other than
as explicitly stated on Exhibit C, InfoSpace shall have no obligation to share
with, allow Company to sell, or account to Company regarding, any sums received
by InfoSpace or any of its affiliates from any advertisements or promotions on
any of the InfoSpace Web Sites, including without limitation, any Banner
Advertisements thereon.

              5.      Warranties, Indemnification and Limitation of Direct Liability.

              5.1      Warranties

              The parties to this Agreement represent and warrant as follows:

	 	 	 
	(a)	 	
Each party warrants it has the full
cooperate right, power and authority to enter into this
Agreement and to perform the acts required of it
hereunder.
	 
	(b)	 	
Each Party warrants its execution
of this Agreement by such party and performance of its
obligations hereunder, do not and will not violate any
agreement to which it is a party or by which it is
bound; and in performance under and

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related to this Agreement, the parties shall comply
with all applicable laws, rules and regulations
(including, without limitation, privacy, export
control and obscenity laws); and
	 
	(c)	 	
Each party warrants when executed
and delivered, this Agreement will constitute the
legal, valid and binding obligation of such party,
enforceable against it in accordance with its terms.
	 
	(d)	 	
Company warrants that the
Co-branded Pages and the content contained therein will
not contain any material that is obscene, pornographic,
profane, fraudulent, libelous or defamatory, or
infringing of any Intellectual Property Rights privacy
rights or other rights of any third party.

              5.2      Indemnification. Each party (the “Indemnifying Party”) will defend,
indemnify and hold harmless the other party (the “Indemnified Party”), and the
respective directors, officers, employees and agent of the Indemnified Party,
from and against any and all claims, costs, losses, damages, judgments and
expenses (including reasonable attorneys’ fees) arising out of or in connection
with any third-party claim alleging any breach of such party’s representations
or warranties or covenants set forth in this Agreement. The Indemnified Party
agrees that the Indemnifying Party shall have sole and exclusive control over
the defense and settlement of any such third party claim. However, the
Indemnifying Party shall not acquiesce to any judgment or enter into any
settlement that adversely affects the Indemnified Party’s rights or interests
without prior written consent of the Indemnified Party. The Indemnified Party
shall promptly notify the Indemnifying Party of any such claim of which it
becomes aware and shall: (a) at the Indemnifying Party’s expense, provide
reasonable cooperation to the Indemnifying Party in connection with the defense
or settlement of any such claim; and (b) at the Indemnified Party’s expense, be
entitled to participate in the defense of any such claim.

              5.3      Limitation of Liability; Disclaimer

                       (c)      Liability. UNDER NO CIRCUMSTANCES SHALL EITHER PARTY BE LIABLE TO THE
OTHER PARTY FOR INDIRECT, INCIDENTAL, CONSEQUENTAL, SPECIAL OR EXEMPLARY
DAMAGES (EVEN IF THAT PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES), ARISING FROM ANY PROVISION OF THIS AGREEMENT, SUCH AS, BUT NOT
LIMITED TO, LOSS OF REVENUE OR ANTICIPATED PROFITS OR LOST BUSINESS.
INFOSPACE’S LIABILITY (WHETHER ARISING IN TORT, CONTRACT OR OTHERWISE AND
NOTWITHSTANDING ANY FAULT, NEGLIGENCE (WHETHER ACTIVE, PASSIVE OR IMPUTED),
PRODUCT LIABILITY OR STRICT LIABILITY OF INFOSPACE) UNDER THIS AGREEMENT OR
WITH REGARD TO ANY OF THE PRODUCTS, SOFTWARE OR SERVICES RENDERED BY INFOSPACE
UNDER THIS AGREEMENT (INCLUDING ANY SERVER OROTHER HARDWARE, SOFTWARE AND ANY
OTHER ITEMS USED OR PROVIDED BY INFOSPACE OR ANY THIRD PARTIES IN CONNECTION

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 WITH HOSTING THE CO-BRANDED PAGES), THE INFOSPACE WEB SITES AND ANY OTHER
ITEMS OR SERVICES FURNISHED UNDER THIS AGREEMENT IN NO EVENT WILL EXCEED THE
COMPENSATION PAID BY COMPANY TO INFOSPACE UNDER THIS AGREEMENT, PLUS ANY UNPAID
AMOUNTS DUE AND PAYABLE BY COMPANY AT THE TIME SUCH LIABILITY AROSE.

                       (d)      No Additional Warranties. EXCEPT AS SET FORTH IN THIS AGREEMENT,
NEITHER PARTY MAKES, AND EACH PARTY HEREBY SPECIFICALLY DISCLAIMS, ANY
REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED (INCLUDING ANY IMPLIED
WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE AND IMPLIED
WARRANTIES ARISING FROM COURSE OF DEALING OR COURSE OF PERFORMANCE), AND EACH
PARTY HEREBY SPECIFICALLY DISCLAIMS ANY CLAIM IN TORT (INCLUDING NEGLIGENCE) IN
EACH CASE, REGARDING THEIR WEB SITES, ANY PRODUCTS OR SERVICES DESCRIBED
THEREON, ANY BANNER ADVERTISEMENTS, OR ANY OTHER ITEMS, SOFTWARE OR SERVICES
PROVIDED UNDER THIS AGREEMENT. WITHOUT LIMITING THE GENERALITY OF THE
FOREGOING, COMPANY ACKNOWLEDGES THAT THE INFORSPACE WEB SITE AND THE CONTENT
CONTAINED THEREIN (INCLUDING ANY SERVERS OR OTHER HARDWARE, SOFTWARE AND ANY
OTHER ITEMS USED OR PROVIDED BY INFOSPACE OR ANY THIRD PARTIES IN CONNECTION
WITH HOSTING THE INFOSPACE WEB SITES OR THE PERFORMANCE OF ANY SERVICES
HEREUNDER) ARE PROVIDED “AS IS” WITHOUT ANY WARRANTIES OF ANY KIND. COMPANY
ACKNOWLEDGES THAT INFOSPACE MAKES NO WARRANTY THAT IT WILL CONTINUE TO OPERATE
ITS WEB SITES OR OFFER THE EXCITE WEB SITE IN ITS CURRENT FORM, THAT ITS WEB
SITES (INCLUDING THE EXCITE WEB SITE) WILL BE ACCESSIBLE WITHOUT INTERRUPTION,
THAT THE EXCITE WEB SITE WILL MEET THE REQUIREMENTS OR EXPECTATIONS OF THE
OTHER PARTY, OR THAT THE CONTENT, SOFTWARE OR ANY OTHER MATERIALS ON ITS WEB
SITES OR THE SERVERS AND SOFTWARE THAT MAKES ITS WEB SITES AVAILABLE ARE FREE
FROM ERRORS, DEFECTS, DESIGN FLAWS OR OMISSIONS.

              6.      Term and Termination

              6.1      Term. The term of this Agreement is as set forth on Exhibit C.

              6.2      Termination, Either party may: (1) terminate the Term upon not less
than thirty (30) days’ prior written notice to the other party of any material
breach hereof by such other party, provided that such other party has not cured
such material breach within such thirty (30) day period; or (2) terminate the
Term upon written notice to the other party on the following grounds: (a)
where either party goes into voluntary or involuntary liquidation; (b) where
either party is declared insolvent either in bankruptcy proceedings or other
legal proceedings; (c) where an agreement with creditors has been

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 reached by either party due to its failure or inability to pay its debts
as they fall due; or (d) where a receiver is appointed over the whole or part
of either party’s business.

              6.3      Effect of Termination. Upon termination or expiration of the Term for
any reason, all rights and obligations of the parties under this Agreement
shall be extinguished, except that: (a) all accrued payment obligations
hereunder shall survive such termination or expiration; and (b) the rights and
obligations of the parties under Sections 4.2, 4.3, 5, 6, 7 and 8 shall survive
such termination or expiration

              7.      Intellectual Property.

              7.1      Company. As between the parties, Company retains all right, title and
interest in and to the Content and the Company Web Sites (including, without
limitation, any and all content, data, URLs, domain names, technology,
software, code, user interfaces, “look and feel”, Trademarks and other items
posted thereon or used in connection or associated therewith; but excluding any
content or other items supplied by InfoSpace) and the Company Marks along with
all Intellectual Property Rights associated with any of the foregoing. All
goodwill arising out of InfoSpace’s use of any of the Company’s Marks shall
inure solely to the benefit of Company.

              7.2      InfoSpace. As between the parties, InfoSpace retains all right, title
and interest in and to the InfoSpace Web Sites (including, without limitation,
any and all content, data, URLs, domain names, technology, software, code, user
interfaces, “look and feel”, Trademarks and other items posted thereon or used
in connection or associated therewith; but excluding any content or other items
supplied by Company) user data gathered from or through any InfoSpace tools or
applications, and the InfoSpace Marks along with all Intellectual Property
Rights associated with any of the foregoing. All goodwill arising out of
Company’s use of any of the InfoSpace’s Marks shall inure solely to the benefit
of InfoSpace.

              7.3      Copyright Notices. All Co-branded Pages will include the Excite logo.
InfoSpace and Company acknowledge that the Co-branded Pages may also contain
copyright and patent notices of copyrighted or copyrightable works, including
those of InfoSpace content providers.

              7.4      Other Trademarks. InfoSpace shall not register or attempt to register
any of the Company Marks or any Trademarks which Company reasonably deems to be
confusingly similar to any of the Company Marks. Company shall not register or
attempt to register any of the InfoSpace Marks or any Trademarks which
InfoSpace reasonably deems to be confusingly similar to any of the InfoSpace
Marks.

              7.5      Further Assurances. Each party shall take, at the other party’s
expense, such action (including without limitation, execution of affidavits or
other documents) as the other party may reasonably request to effect, perfect
or confirm such other party’s ownership interests and other rights as set forth
above in this Section 7.

              8.      General Provisions.

              8.1      Confidentiality. Each party (the “Receiving Party”) undertakes to
retain in confidence the terms of this Agreement and all other non-public
information and know-how of the other party disclosed or acquired by the
Receiving Party pursuant to or

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 in connection with this Agreement which is either designated as
proprietary and/or confidential or by the nature of the circumstances
surrounding disclosure, ought in good faith be treated as proprietary and/or
confidential (“Confidential Information); provided that each party may disclose
the terms and conditions of this Agreement to its immediate legal and financial
consultants in the ordinary course of its business. Each party agrees to use
commercially reasonable efforts to protect Confidential Information of the
other party, and in any event, to take precautions at least as great as those
taken to protect its own confidential information of a similar nature. Company
acknowledges that the terms of this Agreement and user information are
Confidential Information of InfoSpace. The foregoing restrictions shall not
apply to any information that: (a) was known by the Receiving Party prior to
disclosure thereof by the other party; (b) was in or entered the public domain
through no fault of the Receiving Party; (c) is disclosed to the Receiving
Party by a third party legally entitled to make such disclosure without
violation of any obligation of confidentiality; (d) is required to be disclosed
by applicable laws or regulations (but in such event, only to the extent
required to be disclosed; or (e) is independently developed by the Receiving
Party without reference to any Confidential Information of the other party.
Upon request of the other party, or in any event upon any termination or
expiration of the Term, each party shall return to the other all materials, in
any medium, which contain, embody, reflect or reference all or any part of any
Confidential Information of the other party. Each party acknowledges that
breach of this provision by it would result in irreparable harm to the other
party, for which money damages would be an insufficient remedy, and therefore
that the other party shall be entitled to seek injunctive relief to enforce the
provisions of this Section 8.1.

              8.2      Independent Contractors. Company and InfoSpace are independent
contractors under this Agreement, and nothing herein shall be construed to
create a partnership, joint venture, franchise or agency relationship between
Company and InfoSpace. Neither party has any authority to enter into
agreements of any kind on behalf of the other party.

              8.3      Assignment. Company may not assign this Agreement or any rights
hereunder without the prior written consent of InfoSpace, except that
InfoSpace’s prior written consent will not be required for an assignment as a
result of any Company merger, consolidation, reorganization or similar
transaction involving all or substantially all of the assets of Company. In
any such event, the assignee must assume and agree in writing to perform all of
the assigning party’s executory obligations and the assigning party must
guarantee performance by the assignee throughout the Term. Subject to the
foregoing, this Agreement will be binding upon, enforceable by and inure to the
benefit of the parties and their respective successors and assigns.

              8.4      Choice of Law; Forum Selection. This Agreement shall be governed by,
and construed in accordance with, the laws of the State of Washington without
reference to its choice of law rules. Company hereby irrevocably consents to
exclusive personal jurisdiction and venue in the state and federal courts
located in King County, Washington with respect to any actions, claims or
proceedings arising out of or in connection with this Agreement, and agrees not
to commence or prosecute any such action, claim or proceeding other than in the
aforementioned courts.

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              8.5      Nonwaiver. No waiver of any breach of any provision of this Agreement
shall constitute a waiver of any prior, concurrent or subsequent breach of the
same or any other provisions hereof, and no waiver shall be effective unless
made in writing and signed by an authorized representative of the waiving
party.

              8.6      Force Majeure. Neither party shall be deemed to be in default of or
to have breached any provision of this Agreement as a result of any delay,
failure in performance or interruption of service resulting directly or
indirectly from acts of God, acts of civil or military authorities civil
disturbances, wars, strikes or other labor disputes, fires, transportation
contingencies, interruptions in telecommunications or Internet services or
network provider services, failure of equipment and/or software, other
catastrophes or any other occurrences which are beyond such party’s reasonable
control

              8.7      Notices. Any notice or other communication required or permitted to
be given hereunder shall be given in writing and delivered in person, mailed
via confirmed facsimile or e-mail or delivered by recognized courier service,
properly addressed and stamped with the required postage, to the individual
signing this Agreement on behalf of the applicable party at its address
specified in the opening paragraph of the Agreement and shall be deemed
effective upon receipt. Either party may from time to time change the
individual to receive notices or its address by giving the other party notice
of the change in accordance with this section. In addition, a copy of any
notice sent to InfoSpace shall also be sent to the following address:

	 	InfoSpace Sales LLC

601 108th Avenue NE, Suite 1200

Bellevue, WA 98004

Fax: (425) 201-6167

Attention: General Counsel

              8.8      Savings, In the event any provision of this Agreement shall for any
reason be held to be invalid, illegal or unenforceable in any respect, the
remaining provisions shall remain in full force and effect. If any provision
of this Agreement shall, for any reason, be determined by a court of competent
jurisdiction to be excessively broad or unreasonable as to scope or subject,
such provision shall be enforced to the extent necessary to be reasonable under
the circumstances and consistent with applicable law while reflecting as
closely as possible the intent of the parties as expressed herein.

              8.9      Integration. This Agreement contains the entire understanding of the
parties hereto with respect to the transactions and matters contemplated
hereby, supersedes all previous agreements or negotiations between InfoSpace
and Company concerning the subject matter hereof, and cannot be amended except
by writing signed by both parties. This Agreement does not constitute an offer
by InfoSpace and shall not be effective until signed by both parties.

              8.10      Counterparts; Electronic Signature. This Agreement may be executed
in counterparts, each of which will be deemed an original, and all of which
together constitute one and the same instrument. To expedite the process of
entering into this Agreement, the parties acknowledge that Transmitted Copies
of the Agreement will be equivalent to original documents until such time as
original documents are completely

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 executed and delivered. “Transmitted Copies” will mean copies that are
reproduced or transmitted via photocopy, facsimile or other process of complete
and accurate reproduction and transmission.

     IN WITNESS WHEREOF, the parties have duly executed and delivered this
Agreement as of the Effective Date.

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	_______________________________________		
InfoSpace Sales LLC

______________________________
	 
	udate.com Inc. (“the company”)

_______________________________________		
(“InfoSpace”)

______________________________
	 
	By: (signature)  /s/ Martin R. Clifford

_______________________________________		
By (signature)  /s/ York Baess

______________________________
	 
	Name  Martin R. Clifford

_______________________________________		
Name  York Baess

______________________________
	 
	Title  Chief Operating Officer

_______________________________________		
Title  EVP, Wire/Inc

______________________________
	 
	Date  20-12-2001

_______________________________________		
Date  1/14/2002

______________________________ex10-28

 

EXHIBIT 10.28

MERCHANT SERVICES AGREEMENT

FACILITATED BY MONERIS SOLUTIONS, INC.

This Merchant Agreement (“Agreement”) is entered into between Harris Trust and
Savings Bank (“Bank,” “us,” “we,” or “our”) and the undersigned Merchant
(“Merchant, “you,” or “your”) in consideration of mutual promises. Bank and
Merchant are independent parties contracting for services and neither is an
agent, partner or joint venturer of the other. The services of Bank (other
than funds settlement and transfer) are provided through MONERIS SOLUTIONS,
INC., a Delaware corporation and member service provider to the Bank.

INTRODUCTION

Merchant is engaged in the business of providing goods and/or services to
customers and desires to accept credit and/or debit cards (“Cards”) bearing the
name and logo of the Visa® or MasterCard® credit card associations or the
issuer of any other Card of any association or network (collectively, the “Card
Associations”) that Bank authorizes Merchant to accept as a means of payment
for those goods and/or services. Bank is engaged in the business of providing
for a fee electronic debit and credit card authorization, processing, data
capture, deposit, clearing and settlement services.

Merchant agrees to honor all valid Cards without discrimination and submit at
the close of each business day all valid sales and credit slips (“Items”) for
Card transactions for its business exclusively to Bank, according to the
following terms and conditions, to which Bank and Merchant agree.

1.      OPERATING MANUAL

Merchant has received and reviewed an Operating Manual and other Attachments
from Bank. These Attachments are a part of this Agreement. Bank and Merchant
agree to the terms and conditions in the Operating Manual. For example, the
Operating Manual contains a description of items subject to chargeback, certain
promises and responsibilities of Merchant and other terms and conditions
related to the processing of Card transactions, such as Merchant examining all
Cards, obtaining authorization (for example, by “swiping” each Card) and
obtaining authorization numbers for all Card transactions, and handling special
situations (such as cardholder identification, sales without Cards, recovery of
Cards upon request, returns and credits and recurring transactions).
Transactions for any non-face-to-face transaction (e.g., Internet, mail,
telephone and pre-authorized orders) are subject to special requirements
specified in the Operating Manual. Merchant may not impose minimum or maximum
amounts or surcharges for any Card transaction which are not imposed generally
to its customer, for non-Card transactions.

2.      PROCESSING, SETTLEMENT AND OTHER SERVICES

Unless agreed by Bank in writing, Card transactions will be processed through
Card Association networks via electronic authorization and data capture
methods. Unless otherwise agreed by Bank, Merchant will balance and settle
each terminal every business day. Transactions as one

 

 

location may not be processed through a terminal at another location. Merchant
must be equipped with properly installed and programmed terminals or other
equipment capable of transmitting, receiving and communicating Card transaction
data. If Merchant provides software or equipment or utilizes third party
system vendors, Merchant is solely responsible for all aspects of
compatibility, installation, operation and systems integrations that will
comply with the Operating Regulations and Bank’s processing requirements. If
required, Merchant has directly entered into a separate agreement with any Card
Association(s) which allows Merchant to accept and process Card transactions.
For all Card transactions (including debit cards, travel vouchers or lodging
reservation service), the terms and conditions of all rules and regulations of
Card Associations (the “Operating Regulations”) and the Operating Manual apply.
Merchant agrees to those terms.

3.      ADVERTISING AND PROMOTION

Unless waived by a Card Association or Bank, you agree to adequately display
the most current Card emblems, decals and other materials to inform the public
that a Card(s) will be honored as required by the Operating Regulations. You
shall only indicate that Cards are accepted and shall not indicate that any
Card Association endorses your merchandise or services. While this Agreement
is in effect, you shall make no other use of the emblems or marks of any Card
Association or the Bank without our prior written consent. Any use of these
emblems or marks will be in compliance with the Operating Regulations and
specifications of the Card Associations and/or Bank. You will immediately
discontinue use thereof upon direction of the Bank, or any Card Association and
upon termination of this Agreement.

4.      ACCOUNTS

Settlement Account. You agree to designate and maintain an account (the
“Settlement Account”) which accepts automated clearing house (“ACH”) transfers
(which does not have to be a separate account, but may be commingled) with a
balance of available funds sufficient to accommodate your obligations under
this Agreement, either with us, or at an institution acceptable to us. If
there are not sufficient available funds in the Settlement Account to cover
your obligations, we may make deductions from payments due you from
transactions. You agree to promptly pay us on demand for all amounts owed
under this Agreement.

Reserve Account. At any time and for any reason (including termination of this
Agreement, unauthorized transactions, cessation of business, insolvency,
excessive chargebacks, suspected or actual fraud, or competing claims), without
giving prior notice, we reserve the right to require, and you agree to deposit
and maintain such non-interest bearing accounts, additional funds or other
security as we may require with us (which we may commingle with other funds),
or at our sole discretion at a financial institution designated by us, in a
reserve account (the “Reserve Account”) to be funded as specified by Bank, but
within three (3) days, in amounts and upon such terms as determined by us in
our sole discretion. In instances of unauthorized transactions, suspected or
actual fraud or termination for cause, such Reserve Account funding may be
immediate. We may also fund the Reserve Account with deductions from payments
due you from transactions or by a charge against the Settlement Account or any
other account. We will hold or be entitled to the funds in the Reserve Account
until such time as we are satisfied that

2

 

you have no further obligations under this Agreement. Your failure to fund the
Reserve Account will result in immediate termination of this Agreement.

5.      PROVISIONS APPLICABLE TO ALL ACCOUNTS

This Agreement and you authorize us to initiate and make deposits and
withdrawals from any account which may be electronically transmitted or through
an ACH or to delay or place holds on any amounts in such accounts in order to
protect any of our rights and to obtain payment of any amount due us under this
Agreement, including fees, charges and discounts without any further notice or
demand. You will confirm to any institution holding any account the existence
of this authorization and direct them to comply with our directions and you
will not change any such confirmation or direction without our prior written
consent. Any such confirmation, direction or authorization will remain in
effect for at least 180 days after termination of this Agreement, or in our
discretion, longer. We may, without notice, delay or stop making payments to
you, set off, retain or otherwise hold (or direct your financial institution to
place a hold) on any funds to protect ourselves against losses. Chargebacks,
any amounts due or to become due under this Agreement, or based on your
financial condition or in the event you submit transactions which are not
authorized, do not conform to this Agreement, the Operating Manual, the
Operating Regulations or applicable law including transactions subject to
verification by any Card Association or cardholder. You agree that Bank will
not be liable for any losses either direct or indirect due to holding of funds,
suspension of processing, termination of this Agreement or any dishonor or any
item as a result of these actions. You agree to promptly notify us of any
discrepancy within 10 days of receipt of any statement regarding your accounts.
Any account is subject to review, verification, acceptance and audit by Bank.
Bank may return items to you for correction.

YOU GRANT BANK A LIEN AND SECURITY INTEREST IN THE SETTLEMENT ACCOUNT, THE
RESERVE ACCOUNT, ALL ITEMS (INCLUDING FUTURE ITEMS), ANY RIGHTS TO RECEIVE
CREDITS OR PAYMENTS UNDER THIS AGREEMENT AND ALL DEPOSITS AND OTHER PROPERTY OF
YOURS THAT BANK OR ITS AFFILIATES MAINTAIN (INCLUDING THE PROCEEDS THEREOF),
AND YOU WILL EXECUTE, DELIVER ANY PAY THE FEES FOR ANY DOCUMENTS WE REQUEST TO
CREATE, PERFECT, MAINTAIN AND ENFORCE THIS SECURITY INTEREST. TO THE EXTENT
PERMITTED BY LAW, YOU IRREVOCABLY AUTHORIZE BANK TO EXECUTE ANY FINANCING
STATEMENTS OR OTHER DOCUMENTS NECESSARY RELATED TO THIS SECURITY INTEREST.
Merchant represents and warrants that no other person or entity has a security
interest therein and that this security interest secures your obligations to us
under this Agreement. Bank shall have all rights of a secured party and
Merchant must obtain the prior written consent of Bank before granting any
subsequent security interest. Merchant agrees that these accounts and secured
property shall not be subject to any preference, claim, or stay by reason of
any bankruptcy or insolvency law.

6.      CHARGEBACKS

We shall have the right, at any time and without notice, to charge back to you,
and deduct, withdraw or set-off from payments due you from transactions or from
the Settlement Account, the Reserve Account, any other account or from amounts
due you, for the full amount of any

3

 

item designated by Bank or a Card Association or Card issuing bank which fails
to meet the requirements of this Agreement, the Operating Manual, the Operating
Regulations or applicable law (“Chargeback”). You agree to pay the amount of
any Chargeback and the costs and expenses of the Bank (including
investigations, retrieval and legal fees and costs) related to any item subject
to (i) legal process (including reproduction of records), (ii) a bankruptcy or
insolvency proceeding or (iii) Chargeback. If Bank or any Card Association
determines or suspects any item to be questionable, it is subject to
Chargeback. Bank shall retain any discount or fee related to a Chargeback
transaction. Disputes relating to Chargebacks shall be governed by the
Operating Regulations, including your obligation to provide required
documentation.

Merchant agrees to obtain authorization for all Card transactions. Merchant
acknowledges and agrees that authorization for a Card transaction (i) indicates
only the availability of credit at the time of the authorization, (ii) does not
warrant that the person presenting the Card is the rightful cardholder, and
(iii) is not an unconditional guaranty by Bank that any Card transaction will
not be subject to Chargeback.

7.      MERCHANT INDEMNITY

In addition to any other indemnities in this Agreement (including the Operating
Manual) or in the Operating Regulations, you agree to indemnify, defend and
hold us and our affiliates (including officers, directors, employees,
attorneys, shareholders, representatives and agents) harmless from and against
any and all liabilities, judgments, arbitration awards, actions, suits, claims,
demands, losses, damages, costs, expenses and attorneys’ fees, or fees in
bankruptcy proceedings, incurred in connection with: (a) an item that does not
conform to the requirements of this Agreement, the Operating Manual, the
Operating Regulations or applicable laws; (b) arising out of any Card
transaction or any act or omission in connection with a cardholder; (c) a
breach or an alleged breach of any item, covenant, condition, representation,
warranty or agreement by you with any cardholder, any Card Association or to
us, including your application to us, this Agreement, the Operating Manual and
other Attachments, under the Operating Regulations or any violation of
applicable laws; (d) the rescission, cancellation or avoidance of Card
transaction or item, by operation of law, adjudication or otherwise; (e) any
claim, counterclaim, complaint, dispute or defense, whether or not well-founded
with respect to a Card transaction; or (f) damages, including death or injury
caused by the good or service purchased with the Card.

8.      MERCHANT REPRESENTATIONS, WARRANTIES AND COVENANTS

As a condition to transmitting any item to us, you hereby continuously warrant,
covenant and represent compliance with all of the representations, warranties
and covenants contained in this Agreement, the Operating Manual, the Operating
Regulations, and applicable law. Bank may block the transactions or close
terminals of Merchant without prior notice for breaches or suspected breaches
of this Section, for other reasonable cause and in the event of termination of
this Agreement. Merchant agrees that obtaining authorization for any Card
transaction does not constitute a guarantee of payment to Merchant and does not
relieve Merchant of liability for Chargebacks. Merchant will not submit any
item which is (i) not a bona fide, direct sales transaction between the
Merchant and the cardholder in the Merchant’s ordinary course of business (not
including any transactions with an agent or representative of Merchant unless

4

 

approved in advance by Bank) or (ii) a transaction between a cardholder and an
entity or source other than Merchant or (iii) is a fraudulent transaction.
Merchant is responsible for the actions of its employees and agents. Bank may
charge back any item at any time where a breach of any representation, warranty
or covenant exists with respect to such item. Merchant will comply with
applicable law. Merchant will provide business and financial information upon
Bank’s request and will notify Bank of any material change in name, location,
ownership, nature of business, sale of products and/or services not related to
its current business or any change in information furnished on any application
or other information submitted to Bank.

Merchant understands and agrees that any independent sales organization or
member service provider (ISO/MSP) is an independent contractor and is not an
agent of Bank. Any ISO/MSP must comply with Operating Regulations. No ISO/MSP
has any authority to execute this Agreement or alter its terms.

9.      GENERAL PROVISIONS

	(a)	 	Notices. All notices shall be given in writing, addressed to the party
to receive the notice at its address listed on the signature page of this
Agreement, or to such other place as either party shall hereafter
designate, by personal delivery, first class mail (postage prepaid) or by
overnight courier or facsimile. Notices shall be deemed given when either
mailed, delivered or receipt confirmed respectively.
	 
	(b)	 	Amendment. This Agreement, the Operating Manual and other Attachments,
and the Operating Regulations may be amended by us at any time by giving
written notice to you effective on the future date stated in the notice.
Submission of any items to Bank on or after any effective date constitutes
acceptance of any amendment.
	 
	(c)	 	Effective Date. This Agreement shall not be effective until accepted in
writing by us by dating and signing this Agreement.
	 
	(d)	 	Term and Termination. The term of this Agreement shall be for three (3)
years from the Effective Date. THIS AGREEMENT SHALL BE AUTOMATICALLY
RENEWED THEREAFTER FOR SUCCESSIVE THREE YEAR PERIODS UNLESS MERCHANT GIVES
WRITTEN NOTICE OF TERMINATION AT LEAST SIXTY (60) DAYS PRIOR TO THE
EXPIRATION OF THE THEN EXISTING TERM. Any violation of this provision by
Merchant entitles Bank to impose, collect and receive from Merchant,
Bank’s current termination or deconversion fee. We may terminate this
Agreement for any reason without prior notice at any time effective
immediately. At our discretion, termination of the ISO/MSP agreement or
relationship of Bank with your ISO/MSP will terminate this Agreement. You
may terminate this Agreement if we fail to perform our obligations
hereunder after the giving of a written notice to us outlining the
nonperformance and giving us the opportunity to remedy such nonperformance
for a period of sixty (60) days, upon the giving of another written notice
after the expiration of such period, if the performance has not been
remedied. This Agreement shall remain in full force and effect until
termination. Your rights to make Card transactions and any other rights
in this Agreement shall cease upon termination, and you shall return any
of our property, equipment or forms. All obligations of Merchant under
this Agreement for

5

 

	 	 	transactions prior to termination (including document retention,
retrieval and all Chargebacks) shall be binding on Merchant and Bank and
shall survive termination. Neither party will be liable to the other for
damages (including prospective sales or profits) due to termination. IT
IS THE EXRESS AGREEMENT OF BANK AND MERCHANT THAT THE ACQUISITION OF
ITEMS HEREUNDER IS A FINANCIAL ACCOMMODATION AND IN THE EVENT MERCHANT
BECOMES A DEBTOR IN ANY BANKRUPTCY OR SIMILAR PROCEEDING, THIS AGREEMENT
CANNOT BE ASSUMED OR ENFORCED BY ANY OTHER PERSON AND BANK SHALL BE
EXCUSED FROM PERFORMANCE HEREUNDER.
	 
	(e)	 	Assignment. This Agreement shall be binding upon you and us and our
respective heirs, successors and assigns. This Agreement shall not be
assigned by you without our express prior written consent and any
purported assignment without such consent shall be void. Bank may assign
this Agreement to any affiliate or successor that is conducting a merchant
acquiring business upon the giving of notice to Merchant.
	 
	(f)	 	Entire Agreement. This Agreement (including the Operating Manual and any
Attachments) and the Operating Regulations and your application to us,
sets forth our entire understanding and supersedes any prior oral or
written communications. This Agreement may not be modified or waived
except as provided in §9(b) above or in a writing signed by Merchant and
Bank.
	 
	(g)	 	Validity. If any provision of this Agreement is void or unenforceable,
such determination shall not affect the validity or enforceability of any
other provision of this Agreement.
	 
	(h)	 	Waiver. No failure or delay by us in exercising any power, right or
remedy under this Agreement shall operate as a waiver. All waivers by us
must be in writing and signed by us.
	 
	(i)	 	Governing Law. This Agreement is a contract made under and shall be
governed and construed in accordance with Illinois law.
	 
	(j)	 	Financial Statements. Without limiting the generality of § 15(g) of the
Operating Manual, Merchant shall provide financial statements and other
information concerning Merchant’s business and Merchant’s compliance with
the terms and provisions of this Agreement as Bank may reasonably request.
Merchant authorizes Bank to obtain from third parties financial and
credit information relating to Merchant in connection with this Agreement
and Bank’s continuing evaluation of Merchant. Upon request, Merchant
shall provide to Bank or their representatives reasonable access to
Merchant’s facilities and records for the purpose of performing any
inspection and/or copying of Merchant’s books and/or records deemed
appropriate by Bank.
	 
	(k)	 	Remedies Cumulative. All of Bank’s rights and remedies under this
Agreement shall be cumulative to any other rights and remedies afforded to
Bank by law or equity, and Bank’s rights and remedies may be exercised
concurrently, independently, or successively under the Agreement.

6

 

	(l)	 	Facsimile and Electronic Transmissions. Bank and Merchant agree that
facsimile transmissions are acceptable for purposes of this Agreement and
that facsimile signatures shall be deemed as originals and have the full
force and effect thereof. If the parties agree, electronic signatures and
transmissions may be utilized and shall be deemed as originals.

10.    FEES AND RATES; SETTLEMENT

For the services provided by us, you agree to pay us the nonrefundable fees,
charges and discounts specified on the Schedule of Fees and Rates to us and any
applicable Exhibit or Attachment, including amendments, or which we otherwise
mutually agree in writing. You agree to reimburse us for the amount of any
credit items, any items subject to chargeback and for any applicable fees,
penalties, assessments, charges or fines specified in this Agreement, in the
Operating Manual, the Operating Regulations or imposed by any Card Association
(including for foreign transactions or excess Chargeback fees). Bank shall
have the right to pass through to Merchant any increases in fees or costs due
to changes in the Operating Regulations, by any Card Association or in
anticipation of any Card Association liability. If any fee including the
discount rate or interchange rates charges by Card Associations is based on a
qualification and you fail to meet the requirements for reduced fees, you agree
that the fee may be adjusted to the proper amount and you agree to pay the
increased amount including any additional surcharge. Fees are subject to
change pursuant to Section 9(b) hereof. Merchant agrees to pay all taxes and
other charges imposed by any governmental authority on the services provided
under this Agreement. You agree to reimburse us for all interchange or
discount costs and expenses related to the enforcement of this Agreement,
including investigation costs, reasonable attorneys’ fees, and costs,
settlements, arbitration awards, Card Association fees or fines and court
costs. Clearing and settlement services and availability of funds are subject
to the procedures of Bank and any respective financial institution. Bank does
not guarantee the timeliness of settlement including by your depository
institution. Bank is not responsible for third party processors, networks,
systems, Card Associations, settlement switches, telecommunications or other
forces beyond its reasonable control. Subject to payment hereunder, Merchant
assigns to Bank all right, title and interest in and to the items acquired by
Bank with the right to endorse items. All funds advanced by Bank to you for
items acquired are provisionally credited subject to Bank’s right of payment
hereunder and contingent claims for Chargebacks, adjustments, and final
settlement. Bank has the right to receive payment on all items acquired
(unless and until Chargeback) and you will not attempt to collect any items if
you receive any payment, you will hold it in trust for, and promptly deliver
it, to Bank. Bank will process all items and credit the Settlement Account for
(i) the aggregate face amount of items acquired less (ii) the aggregate face
amount of credit items, Chargebacks, refunds, disputes, billing errors,
adjustments, fines, processing fees and other amounts due Bank. At the times
designated by Bank, Bank may deduct as a credit to the Settlement Account or as
a deduction from any amounts owed Merchant, any amounts owed to Bank by
Merchant for processing fees, Chargebacks and Card Association interchange and
assessments for all items acquired during the applicable preceding period.
Where Bank charges a fee on a per item(whether sales or credit) basis, the fee
will be based on the applicable fee multiplied by the number of transactions.
Where Bank charges a fee based on a discount rate, the face amount of
transactions is multiplied by the discount rate to determine the applicable
fee. Fees shall become due and accrue at the time the item is submitted to
Bank by Merchant. For any fees or discounts based upon qualifications
(including interchange charged by Card

7

 

Associations) or anticipated volume (or other conditions) if such
qualifications, volume (or condition) is not met, you will be charged the
applicable rate for the actual qualification (including interchange charged by
Card Associations) volume (or condition). Bank may delay payment as provided
in Section 5 of this Agreement.

11.    ASSOCIATION REGULATIONS

You agree to be bound by the requirements and terms of the Operating Manual and
Operating Regulations of all applicable Card Associations, as amended from time
to time. Copies may be reviewed at the Bank’s offices. Bank is authorized to
inform any Card Association or other relevant party if this Agreement is
terminated for cause. Merchant understands that the Card Associations publish
a list of names (including principals) of merchants terminated for cause.
Merchant agrees to indemnify Bank (pursuant to the provisions hereof) and any
Card Association from any and all claims which Merchant or any other person may
have as a result of being placed on any such list. Merchant warrants that it
has not been placed on any such list previously. You agree to retain and
retrieve records as required by the Operating Manual and Operating Regulations
and allow us to examine them. If the Bank sponsors you into any debit Card
program, such sponsorship shall extend only as long as the term of this
Agreement.

12.    CONFIDENTIALITY.

You agree to keep confidential (and store in a secured area with limited
access) and will not copy, publish, sell, exchange, disclose or provide to
others or use any information, documents or data, provided or disclosed to you,
or any account information (including account numbers) related to Cards or
cardholders for any purpose other than performing your obligations under this
Agreement. Merchant shall not retain or store magnetic stripe data after a
transaction has been authorized. If Merchant stores any electronically
captured signature of a cardholder, Merchant may not reproduce such signature
except upon specific request of Bank. In addition, Merchant shall not disclose
to any third party and shall retain in strictest confidence all information and
data belonging to or relating to the business of Bank (including without
limitation, the terms of this Agreement), and shall safeguard such information
and data by using the same degree of care that Merchant uses to protect its own
confidential information. You shall not use our name or marks without our
prior written consent and if consent to, you shall obtain no right in our names
or marks. You authorize us and we may obtain from and share with others all
financial, credit, sales, experience and other information about you with our
affiliates and as otherwise allowed by applicable law.

13.    BANK LIABILITY.

BANK SHALL NOT BE RESPONSIBLE OR LIABLE FOR ANY ACTION TAKEN BY BANK (OR THE
RESULTS THEREOF) WHICH IS AUTHORIZED BY THIS AGREEMENT. BANK MAKES NO
GUARANTIES EXPRESS, IMPLIED OR STATUTORY IN CONNECTION WITH THIS AGREEMENT AND
WITHOUT LIMITING THE FOREGOING, BANK DISCLAIMS ALL WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. BANK MAY UTILIZE SYSTEMS
OF OTHERS, INCLUDING CARD ASSOCIATIONS. BANK SHALL NOT BE RESPONSIBLE OR
LIABLE FOR ANY INFORMATION PROVIDED BY OTHERS OR FOR THE USE OF ANY SYSTEM OR

8

 

EQUIPMENT OF BANK OR OTHERS OR FOR ANY CIRCUMSTANCES BEYOND ITS CONTROL. BANK
SHALL NOT BE LIABLE FOR LOST PROFITS, CONSEQUENTIAL, SPECIAL, PUNITIVE,
EXEMPLARY OR INCIDENTAL DAMAGES EVEN IF BANK HAS BEEN ADVISED OF THE
POSSIBILITY OF SUCH DAMAGES. THE SOLE AND EXCLUSIVE LIABILITY OF BANK AND
REMEDY OF MERCHANT HEREUNDER SHALL BE GENERAL MONEY DAMAGES FOR WILLFUL
MISCONDUCT NOT TO EXCEED THE AMOUNT OF THE ITEM SUBJECT TO CLAIM OR DISPUTE,
REGARDLESS OF THE CHARACTERIZATION OF SUCH ACTION.

14.    SYSTEM TERMS

You agree to use terminals and related software systems or equipment acceptable
to us. You may, but are not obligated to obtain equipment from us. If you do,
you agree to pay the fees specified in the Schedule of Fees for such equipment
and accept the terms stated in the Operating Manual with respect to the
equipment. You authorize us to make payment for any equipment utilized by you
to us, any other seller or lessor through ACH deduction from the Settlement
Account.

15.    EXCLUSIVITY

During the term of this Agreement, you will not engage or use any other Visa or
MasterCard Card processor or servicer in the United States, except Bank, and
Bank shall be the sole provider of the types of services provided hereunder for
all locations of Merchant.

16.    WAIVER OF JURY TRIAL/JURISDICTION

BANK AND MERCHANT HEREBY WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION
CONCERNING ANY RIGHTS UNDER THIS AGREEMENT. BANK AND MERCHANT HEREBY AGREE
THAT AND CONSENT TO THE EXCLUSIVE JURISDICTION AND VENUE FOR ANY DISPUTES
HEREUNDER SHALL BE AN APPROPRIATE FEDERAL OR STATE COURT LOCATED IN CHICAGO,
ILLINOIS.

17.    FORCE MAJEURE

The parties to this Agreement shall be released from liability hereunder for
failure to perform any of the obligations herein where such failure to perform
occurs by reason of any act of God, fire, flood, storm, earthquake, tidal wave,
communication failure, sabotage, war, military operation, national emergency,
mechanical or electronic breakdown, civil commotion, or the order requisition,
request or recommendation of any government agency or acting governmental
authority or either party’s compliance therewith, or governmental regulation or
priority or any other cause beyond either party’s reasonable control whether
similar or dissimilar to such causes.

18.    WAIVER OF PERSONAL SERVICE AND ACCEPTANCE OF SERVICE BY MAIL

The Merchant hereby waives personal service of any and all process and agrees
and consents that all such service of process may be made by certified mail,
return receipt requested directed to the undersigned officer or owner of
Merchant, as the case may be, or to Merchant’s registered agent

9

 

and agrees that service of process so made shall be complete upon mailing by
Bank or Bank’s attorney.

19.    ATTACHMENTS

The following Attachments are expressly made a part of this Agreement as if fully set forth:

	 	 	 
	x	 	
Operating Manual
	
	 	 
	 	 	
Debit Card Processing – Interlink/Maestro
	
	 	 
	 	 	
Debit Card Processing – Cash Station or Explore
	
	 	 
	 	 	
Gratuity and Hotel/Motel Procedures
	
	 	 
	x	 	
Other: Schedule of Rates & Fees
	
	 	 

Any unilateral alteration or modification to the pre-printed form of this
Agreement has no effect and at the Bank’s discretion, may render this Agreement
invalid. The authorized officials of Merchant and Bank have read this
Agreement and agree to all its terms, including the Operating Manual.

MERCHANT:

	 	 	 
	BY   /s/Melvyn Morris

	 	
TELEPHONE:   +44 (0) 1332 268700

	 
	Name   MELVYN MORRIS

	 	
Facsimile:   +44 (0) 2076917438

	 
	Title:   CEO

	 	 

	 	 	 
	Address:	 	
c/o UDATE.COM, NEW ENTERPRISE HOUSE,

ST. HELENS ST., DERBY, DE1 3GY, ENGLAND

Accepted at Buffalo Grove, Illinois this ____ day of ________________ (the “Effective Date”).

HARRIS TRUST AND SAVINGS BANK:

	 	 	 
		 	 
	 
	By  
	 	
Telephone:  

	 
	Its Authorized Representative	 	
Facsimile:  

10

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