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LIMITED LIABILITY COMPANY AGREEMENT

OF

BIR/BVF-II NoMa JV, L.L.C.

 

By THIS LIMITED LIABILITY COMPANY AGREEMENT (the “Agreement”) made and entered into as of the 2nd day of March, 2011, by and among the persons listed on the attached Schedule A hereto as Members, of BIR/BVF-II NoMa JV, L.L.C., a Delaware limited liability company (the “Company”), the Members of the Company agree that:

 

R E C I T A L S

 

WHEREAS, the Company was formed by an authorized person as a limited liability company under the laws of the State of Delaware pursuant to a Certificate of Formation filed with the Secretary of State of the State of Delaware (the “Secretary”) on February 28, 2011 (the “Certificate of Formation”).

 

NOW, THEREFORE, in consideration of the promises and the mutual covenants herein contained, the parties hereto do hereby mutually covenant and agree as follows:

 

ARTICLE I                      

 

DEFINED TERMS

 

Capitalized terms used in this Agreement have the meanings specified below:

 

“Accountants” means such firm of certified public accountants as may be engaged by the Managing Member from time to time.

 

“Act” means the Delaware Limited Liability Company Act as amended and in effect from time to time, and shall include any corresponding provisions of succeeding law.

 

“Affiliate” means, with respect to a specified Person, a Person that:  (i) is a partner, member, director, or officer of such specified Person or of any Person specified in clause (iii) hereof, (ii) is a member of the Immediate Family of such specified Person, or (iii) directly or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with such specified Person.  For purposes of this definition, the term, “control” (and any derivative thereof) means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through the ownership of voting stock, by contract or otherwise.

 

“Agreement” means this Limited Liability Company Agreement as it may be amended and in effect from time to time.

 

“Capital Account” means, in relation to any Member at the relevant time, the sum of (i) such Member’s Capital Contribution theretofore made by such Member, (ii) such Member’s share of profits and income, and (iii) the amount of any Company liabilities that are assumed by such Member or that are secured by any Company property distributed to such Member, minus the sum of (i) the amount of any losses theretofore charged to such Member, (ii) any distributions theretofore made to such Member, and (iii) the amount of any liabilities of such Member that are assumed by the Company or that are secured by any property contributed by such Member to the Company.  Any reference in this Agreement to the Capital Account of a then Member shall include the Capital Account in relation to any prior Member in respect of the Company interest of such then Member.

 

“Capital Contribution” means, in relation to any Member, the total amount of cash and agreed-upon value of property contributed or agreed to be contributed to the Company by such Member.  Any reference in this Agreement to the Capital Contribution of a then Member shall include any Capital Contribution previously made by any prior Member in respect of the Company interest of such then Member.

 

“Capital Transaction” means (a) any sale, exchange or other disposition of all or substantially all of the assets of the Fee Owner or of the Company, (b) any refinancing of the Fee Owner debt or Company debt secured by all or substantially all of the assets of the Fee Owner or the Company, as applicable or (c) any other extraordinary event, including the sale of all or substantially all of the Company’s interest in any other Entity.

 

“Certificate” means the Certificate of Formation of the Company, as amended and in effect from time to time.

 

“Code” means the Internal Revenue Code of 1986, as amended, or corresponding provisions of subsequent laws.

 

“Company” means the limited liability company governed by the terms of this Agreement as such limited liability company may from time to time be constituted and amended.

 

“Entity” means any general partnership, limited partnership, corporation, limited liability company, joint venture, trust, business trust, cooperative or association.

 

“Fee Owner” means NoMa West Residential I LLC, a Delaware limited liability company.

 

“Immediate Family” means, in relation to any natural Person, the spouse, natural or adopted lineal descendants or heirs, or the spouses of such lineal descendants or heirs and any trust for the benefit of any of the foregoing.

 

“Managing Member” means Berkshire Multifamily Value Fund-II OP, L.P., a Delaware limited partnership.

 

“Members” means those Persons listed on Schedule A from time to time and their successors and assigns, in such Persons’ capacities as Members of the Company, and “Member” means any one of the Members.

 

“Member Nonrecourse Debt” means a Nonrecourse Debt in which the obligee is a Member.

 

“Minimum Gain” means the amount of taxable gain (whether taxable as ordinary income or capital gains) which would be recognized by the Company if the Nonrecourse Debt of the Company were foreclosed upon and the Company’s property securing such debt were transferred to the creditor(s) holding such debt obligations in satisfaction thereof.

 

“Net Capital Transaction Proceeds” as defined in Section 8.3.

 

“Net Operating Cash Flow” as defined in Section 8.2(a) hereof.

 

“Nonrecourse Debt” means debt of the Company as to which no Member bears the economic risk of loss within the meaning of Section 752 of the Code, as amended.

 

“Outstanding Capital Contribution” means, as to any Member at any time and from time to time, the amount of that Member’s Capital Contribution to the Company reduced (but not below zero) by all distributions previously made to that Member pursuant to Section 8.2(b) Second and Section 8.3(b) Second.

 

“Percentage Interest” means the percentage ownership interest of a Member in the Company set forth on Schedule A hereto at any particular time, but excluding any claims that such Member may have against the Company as a creditor.

 

“Person” means any individual or Entity, and, where the context so admits, the legal representatives, successors in interest (including heirs) and assigns of such Person.

 

“Prime Rate” means the rate of interest appearing from time to time in the Wall Street Journal under the caption “prime rate”.

 

“Recourse Debt” means all Company indebtedness as to which one or more of the Members bears the economic risk of loss within the meaning of Section 752 of the Code.

 

“Schedule A” means Schedule A attached hereto, as amended and in effect from time to time.

 

“State” means the State of Delaware.

 

“Substituted Member” means any Person who is admitted to the Company as a Member under the provisions of Article VI.

 

“Transfer” as defined in Section 6.1(a).

 

“Unpermitted Deficit” as defined in Section 8.1(e).

 

ARTICLE II                                

 

CONTINUATION, NAME AND PURPOSE

 

Section 2.1 Organization.  Pursuant to the Act, the Company was formed as a Delaware limited liability company effective upon the filing of the Certificate of Formation of the Company with the Secretary of State of the State (the “Secretary”) on February 28, 2011.  The parties shall immediately, and from time to time hereafter, as may be required by law, execute all amendments of the Certificate of Formation, and do all filing, recording and other acts as may be appropriate to comply with the operation of the Company under the Act.

 

Section 2.2 Intent.  It is the intent of the Members that the Company shall always be operated in the manner consistent with its treatment as a “Partnership” for federal and state income tax purposes.  It also is the intent of the Members that the Company not be operated or treated as a “Partnership” for purposes of Section 303 of the federal Bankruptcy Code.  No Member shall take any action inconsistent with the express intent of the parties hereto.

 

Section 2.3 Name.  The name of the Company shall be BIR/BVF-II NoMa JV, L.L.C.

 

Section 2.4 Principal Place of Business.  The principal place of business of the Company shall be located at c/o The Berkshire Group, One Beacon Street, Boston, MA  02108, or at such other address as shall be determined from time to time by the Managing Member.

 

Section 2.5 Resident Agent.  The name and address of the resident agent for service of process of the Company required to be maintained by the Act shall be: Corporation Service Company, 2711 Centerville Road Suite 400, City of Wilmington, DE 19808.

 

Section 2.6 Purpose.  This Company has been formed to engage in any lawful acts, business, trade or activity for which limited liability companies may be organized pursuant to the Act, including but not limited to ownership of a membership interest in the Fee Owner, and of real and personal property, and interests in other entities which may own real and personal property.

 

Section 2.7 Term.  This Company commenced upon the filing of its Certificate of Formation and shall continue until such time as it shall be terminated under the provisions of Article IX hereof.

 

Section 2.8 Management.  The business and affairs of the Company shall be managed by the Managing Member.

 

Section 2.9 Members.  The name and address of each of the Members of this Company are as set forth on Schedule A hereto, as amended from time to time.

 

Section 2.10 Authorized Acts.  In furtherance of its purposes, but subject to all other provisions of this Agreement including, but not limited to, Article IV, the Company is hereby authorized, directly or indirectly through other entities:

 

(a) To acquire, construct, operate, maintain, finance and improve, and to own, sell, convey, assign, mortgage or lease, either directly, or as a partner or member of another Entity, any real or personal property necessary, convenient or incidental to the accomplishment of the purposes of the Company.

 

(b) To borrow funds and issue evidences of indebtedness in furtherance of any or all of the purposes of the Company, and to secure said indebtedness by mortgage, security interest, pledge or other lien on any property or assets of the Company.

 

(c) To decrease, increase or refinance any loan or any other indebtedness of the Company and sell, lease, exchange or otherwise transfer or convey all or substantially all of the assets of the Company.

 

(d) To employ or otherwise retain such Persons (including without limitation such managers, engineers, accountants, lawyers, and other experts) as may be necessary, convenient, or incidental to the accomplishment of the purposes of the Company.

 

(e) To enter into, perform and carry out contracts of any kind, necessary to, in connection with, or incidental to the accomplishment of the purposes of the Company.

 

(f) To enter into any kind of activity and to perform and carry out contracts of any kind necessary to, or in connection with, or incidental to, the accomplishment of the purposes of the Company, so long as such activities and contracts may be lawfully carried on or performed by a Company, to the extent applicable, under the laws of the State.

 

ARTICLE III                                

 

MEMBERS; CAPITAL

 

Section 3.1 Members.  The initial Capital Contributions of the Members are set forth on Schedule A hereto.  The Members shall make additional Capital Contributions as and when requested by written notice from the Managing Member, in proportion to their respective Percentage Interests.  The books and records of the Company shall be amended to reflect such additional Capital Contributions.

 

Section 3.2 Company Capital.  The capital of the Company shall be the aggregate amount of the cash and other property contributed and agreed to be contributed by the Members as Capital Contributions.  Except as provided in Articles V and VI, no additional Members may be admitted to the Company without the written consent of the Managing Member.

 

Section 3.3 Liability of Members.  No Member shall be liable for any debts, liabilities, contracts or obligations of the Company or be required to lend funds to the Company.  Except as otherwise provided by the law, a Member’s liability shall be limited to the amount of such Member’s Capital Contribution.

 

ARTICLE IV                                

 

POWERS, DUTIES, COMPENSATION, EXCULPATION AND

 

INDEMNIFICATION OF, AND RESTRICTIONS ON, THE MANAGING MEMBER

 

Section 4.1 Business Management.

 

(a) The business and affairs of the Company shall be managed exclusively by the Managing Member. The Managing Member shall, acting in its sole discretion, direct, manage, and control the business of the Company to the best of its ability and shall have full and complete authority, power and discretion to make any and all decisions and to do any and all things which it shall deem to be reasonably required to accomplish the business and objectives of the Company.

 

(b) No Member (except one who may also be the Managing Member) shall participate in or have any control over the Company business, except as required by law or as provided by this Agreement.

 

Section 4.2 Certain Powers of the Managing Member.

 

(a) General.  Without limitation of any other rights and powers granted to it, the Managing Member shall have the right on behalf of the Company, upon such terms and conditions as it shall deem proper, to:

 

(i) borrow money on the general credit of the Company for use in the Company business and to secure such borrowings with any assets of the Company;

 

(ii) purchase any and all real and personal property necessary or appropriate, as determined by the Managing Member in its discretion, in connection with carrying out the purposes of the Company, and finance and refinance such purchase, in whole or in part, by giving the seller or any other person a security interest in the property so purchased;

 

(iii) make reasonable and necessary capital expenditures and improvements with respect to the real and personal property and other assets of the Company and take all action reasonably necessary in connection with the maintenance, operation and management thereof;

 

(iv) employ or otherwise retain such Persons (including without limitation such managers, engineers, accountants, lawyers, and other experts) as may be necessary, convenient, or incidental to the accomplishment of the purposes of the Company;

 

(v) enter into any contract or agreement between the Company and the Managing Member or any Affiliate;

 

(vi) to purchase liability and other insurance to protect the Company’s property and business;

 

(vii) to hold and own any Company real or personal properties in the name of the Company;

 

(viii) to invest any company funds temporarily (by way of example but not limitation) in time deposits, short-term governmental obligations, commercial paper or other investments;

 

(ix) to execute on behalf of the Company all instruments and documents, including, without limitation, drafts; notes and other negotiable instruments; mortgages or deeds of trusts; security agreements; financing statements; documents providing for the acquisition, mortgage or disposition of the Company’s property; assignments; bills of sale; leases; Company agreements; and any other instruments or documents necessary, in the opinion of the Managing Member, to the business of the Company;

 

(x) to act as the tax matters partner of the Company; and

 

(xi) to do and perform all other acts as may be necessary or appropriate to the conduct of the Company’s business.

 

(b) Officers.  The Managing Member may appoint, remove, and replace as the case may be, in its sole discretion, one or more individuals to act as officers of the Company (the “Officers”), and authorize such Officers to act in such capacity on behalf of the Managing Member and the Company.  The Officers shall have such power and authority as are customarily delegated to persons holding equivalent titles in a Delaware corporation except as such duties shall be limited or expanded by action of the Managing Member.  The individuals listed on the attached Schedule B have been appointed Officers of the Company by the Managing Member.

 

(c) Authority to Bind.  Unless authorized to do so by this Agreement, no Member of the Company (acting in the capacity of a Member) shall have any power or authority to bind the Company in any way, to pledge its credit or to render it liable for any purpose.  Only the Managing Member and the President shall have the power and authority to bind the Company.

 

(d) Authorized Signatories.  The Managing Member, President and any Vice President shall be authorized to execute and deliver all checks, agreements, certificates, instruments or other documents requisite to carrying out the intentions and purposes of this Agreement and of the Company in the name and on behalf of the Company and the Secretary shall have the authority to attest to all such actions.

 

(e) Reliance.  Every agreement, instrument, certificate or other document executed by the Managing Member or Officer on behalf of the Company shall be conclusive evidence in favor of every Person relying thereon or claiming thereunder that, at the time of delivery thereof:  (i) the Company was in existence; (ii) this Agreement had not been terminated or cancelled or amended in any manner so as to restrict such authority; and (iii) the execution and delivery of such agreement, instrument, certificate or other document were duly authorized under this Agreement.  Any Person dealing with the Company may rely conclusively on the power and authority of the Managing Member or Officer as set forth in this Agreement.

 

Section 4.3 Devotion of Time; Compensation.  The Managing Member shall devote to the affairs of the Company such time as it may deem necessary for the proper performance of its duties.  The Managing Member shall be entitled to charge the Company and to be reimbursed by the Company for all third party out-of-pocket costs or expenses reasonably incurred by the Managing Member in connection with Company business.

 

Section 4.4 Liability; Indemnification.  The Managing Member and its Affiliates shall have no liability to the Company or to any Member for any loss suffered by the Company which arises out of any action or inaction of the Managing Member or its Affiliates if the Managing Member or its Affiliates, in good faith, determined that such course of conduct was in the best interest of the Company and such course of conduct did not constitute gross negligence or willful misconduct of the Managing Member or its Affiliates.  The Company shall indemnify the Managing Member and its Affiliates (out of Company assets only) to the fullest extent permitted by Delaware law from any losses, expenses, judgments, liabilities and amounts paid in settlement of any claims sustained by them in connection with the Company, provided that the same were not the result of gross negligence or willful misconduct on the part of the Managing Member or its Affiliates.

 

ARTICLE V                                

 

RIGHTS AND OBLIGATIONS OF MEMBERS;

 

MEETINGS OF MEMBERS

 

Section 5.1 Limitation of Liability.  Each Member’s liability for the debts and obligations of the Company shall be limited as set forth in the Act and other applicable law.

 

Section 5.2 No Actions Requiring Consent of the Members.  The Members shall have no right to vote on or consent to any actions to be taken by the Company.

 

ARTICLE VI                                

 

TRANSFERABILITY OF INTERESTS

 

Section 6.1 Restriction on Transfer.

 

(a) Without the prior written approval of the Managing Member, which in each case may be granted or withheld in the Managing Member’s absolute discretion, no Member shall have the right to dispose of, sell, alienate, assign, pledge, hypothecate, or otherwise transfer (“Transfer”) all or any part of its interest in the Company to any Person or Persons unless such Person is a member of the transferring Member’s Immediate Family, or the estate of any of such persons.

 

(b) The Managing Member in its sole discretion shall have the power to admit, as Substituted Members, Persons who acquire the interest, or any part thereof, of a Member and to admit such parties as additional Members.  Except as otherwise provided in this Article VI, the failure or refusal of the Managing Member to admit an assignee as a Substituted Member shall not affect the right of such assignee to receive the share of distributions of the Company to which his predecessor in interest would have been entitled.  An assignee of a Member’s interest who does not become a Substituted Member as provided herein and who desires to make a further assignment of his interest shall be subject to all of the provisions of this Article VI to the same extent as any Member desiring to make an assignment.

 

(c) In addition to the foregoing requirements, the admission of an assignee as a Substituted Member shall be conditioned upon the assignee’s written acceptance of the terms and provisions of this Agreement and his written assumption of the obligations hereunder of his assignor.

 

(d) All costs incurred by the Company in connection with the admission to the Company of a Substituted Member pursuant to this Section 6.1 shall be borne by the transferor Member, including, without limitation, filing fees and reasonable attorneys’ fees.

 

Section 6.2 Obligations and Rights of Transferees.

 

(a) Whether or not a Person who acquired any membership interest in the Company has accepted in writing the terms and provisions of this Agreement and assumed in writing the obligations hereunder of his predecessor in interest, such Person shall be deemed, by the acquisition of such interest, to have agreed to be subject to and bound by all the obligations of this Agreement with the same effect as any predecessor in interest of such Person.

 

(b) A Person acquiring a membership interest in the Company shall have only such rights, and shall be subject to all the obligations, as provided in this Agreement.  Without limiting the foregoing, such person shall not have the right to have the value of his interest ascertained or receive the value of such interest, or, in lieu thereof, profits attributable to any right in the Company, except as set forth in this Agreement.

 

Section 6.3 Additional Restrictions.  Anything contained in the foregoing provisions of this Article VI expressed or implied to the contrary notwithstanding:

 

(a) In no event shall all or any part of a Member’s interest in the Company be assigned or transferred to a minor or incompetent.

 

(b) In no event shall all or any part of a Member’s interest in the Company be transferred if such transfer would cause the Company to terminate under Section 708 of the Internal Revenue Code of 1986 or any successor provision.

 

(c) The Managing Member may, in addition to any other requirement which the Managing Member may impose, require as a condition of any sale, transfer, assignment, exchange or other disposition of any interest in the Company that the transferor furnish to the Company an opinion of counsel satisfactory (both as to such opinion and as to such counsel) to counsel to the Company that such sale, transfer, assignment, exchange or other disposition complies with applicable securities laws.

 

(d) Any sale, exchange, transfer or other disposition in contravention of any of the provisions of this Article VI shall be void and ineffectual and shall not bind or be recognized by the Company.

 

ARTICLE VII                                

 

BORROWINGS AND LOANS

 

If any Member shall lend any monies to the Company, such loan shall be unsecured and the amount of any such loan by a Member shall not constitute an increase in the amount of such Member’s Capital Contribution nor affect in any way such Member’s share of the profits, losses and distributions of the Company.  Any loans by a Member or an Affiliate to the Company shall be obligations of the Company of equal rank with obligations to unsecured third-party creditors, and shall, except to the extent otherwise provided in the applicable loan documentation, be repayable from any available funds of the Company, including but not limited to Net Operating Cash Flow or the proceeds of a Capital Transaction, and any interest provided to be payable thereon shall be at a an annual rate of nine percent (9%).

 

ARTICLE VIII                                

 

PROFITS, LOSSES, AND CREDITS; DISTRIBUTIONS

 

Section 8.1 Profits, Losses and Credits.

 

(a) Profits.  All profits and credits of the Company and all items of Company profit, income, gain, or credit shall, subject to Section 8.1(c), be allocated as follows:

 

First, to the Members with negative Capital Account balances, an amount equal to (or in proportion to if less than) their negative balances;

 

Second, among the Members in proportion to their respective Percentage Interests.

 

(b) Losses.  Subject to Sections 8.1(c) and, 8.1(d) all losses of the Company, and all items of Company loss and deduction, shall be allocated to the Members in proportion to the respective then positive balances in their Capital Accounts (adjusted as though the Company’s fiscal year ended immediately prior to the event giving rise to such Losses) and thereafter to the Members in accordance with their respective Percentage Interests.

 

(c) Allocation of Noncash Items.  If, on liquidation and dissolution, some or all of the assets of the Company are distributed in kind, Company profits shall be increased by the profits that would have been realized had such assets been sold for their fair market value on the date of distribution.  Such increase shall be allocated to the Members in accordance with Section 8.1(a) hereof and shall increase their Capital Account balances accordingly prior to calculating any distributions under Section 8.3 hereof.  For purposes of this deemed profit allocation, the fair market value of such assets shall be determined by an appraiser selected by the Managing Member or, if none, the liquidator, in its absolute discretion, whose determination shall be binding on all concerned.

 

(d) Unpermitted Deficits.  Notwithstanding anything otherwise provided in Section 8.1 hereof, no Member will be allocated any losses not attributable to Nonrecourse Debt to the extent such allocation (without regard to any allocations based on Nonrecourse Debt) results in such Member’s Capital Account being reduced below the lesser of zero or a deficit in excess of the sum of such Member’s share of the Recourse Debt and Member Nonrecourse Debt of the Company with respect to which such Member is liable (an “Unpermitted Deficit”).  In the event any Member’s Capital Account is adjusted (by way of distribution, allocation or otherwise) to create an Unpermitted Deficit, such Member shall, as soon as possible thereafter, be allocated items of Company gross income to eliminate the Unpermitted Deficit.  In addition to the foregoing, if at the end of any fiscal year of the Company, after taking into account all distributions made and to be made in respect of such year (excluding distributions of Net Capital Transaction Proceeds) but prior to any allocation of profits and losses for such year except that provided in the two immediately preceding sentences, any of the Members shall have a negative Capital Account by reason (and to the extent) of allocations of items of loss or deduction attributable in whole or part to Nonrecourse Debt such Member shall be allocated (or if more than one Member has a negative Capital Account all such Members shall be allocated ratably among them in accordance with the respective proportions of such negative balances as are attributable to such deductions or losses) that portion of any items of gross income for such year as may be equal to the amount by which the negative balance of such Member’s negative Capital Account exceeds the sum of:  (i) such Member’s allocable share of the aggregate Minimum Gain with respect to all of the assets securing such Nonrecourse Debt plus (ii) such Member’s allocable share of aggregate debt which is Recourse Debt or Member Nonrecourse Debt, such allocable share to be determined in accordance with the provisions of Section 752 of the Code, plus (iii) such Member’s obligation to restore deficits on the dissolution of the Company.

 

(e) Section 704(c) Allocations.  The Members agree that to the full extent possible with respect to the allocation of depreciation and gain for tax accounting purposes, Section 704(c) of the Code shall apply with respect to non-cash property contributed to the Company by any Member.  The Members further agree that to the full extent possible, in the event the value of any Company asset is adjusted to reflect a revaluation thereof on the books of the Company, subsequent allocations of depreciation and gain with respect to such asset shall take account of any variation between the adjusted basis of such asset for federal income tax purposes and its value as reflected on the books of the Company in the same manner as under Section 704(c) of the Code.  For purposes hereof, any allocation of income, loss, gain, or any item thereof to a Member pursuant to Section 704(c) of the Code or the immediately preceding sentence shall only affect his tax basis in his Company interest and shall not affect his Capital Account.

 

(f) Member Nonrecourse Debt Deductions.  Notwithstanding anything otherwise provided in this Section 8.1, any deductions attributable to Member Nonrecourse Debt for any fiscal year or other period shall be specially allocated to the Member who bears the risk of loss with respect to the Member Nonrecourse Debt to which the deductions are attributable in accordance with Section 1.704-1(b)(4)(iv)(g) of the Regulations.

 

Section 8.2 Net Operating Cash Flow of the Company.

 

(a) “Net Operating Cash Flow.” The term “Net Operating Cash Flow” of the Company for a particular fiscal year includes all profits or losses from the operation of the Company for such fiscal year excluding profits or losses for such fiscal year arising from a Capital Transaction, and shall be determined by adjusting such profits or losses (to the extent not otherwise adjusted) as follows:

 

(1)           Depreciation of buildings, improvements and personal property shall not be a deduction;

 

(2)           Amortization of any item for which there is not an associated cash payment shall not be a deduction;

 

(3)           Principal and interest payments on a mortgage or other loan shall be deductions;

 

(4)           Principal payments on all conditional sales contracts and other secured obligations shall be deductions;

 

(5)           If the Managing Member shall so determine, reasonable reserves shall be deducted to provide for replacements, improvements, capital improvements or any other contingency of the Company;

 

(6)           Any amounts paid by the Company for capital expenditures or replacements (and not withdrawn from a reserve fund established for such purpose) shall be deductions;

 

(7)           Capital Contributions to the Company and the proceeds of any Capital Transaction shall not be included in Net Operating Cash Flow of the Company and payments made from such sources of funds shall be excluded in determining Net Operating Cash Flow of the Company; and

 

(8)           Any other cash receipts from the operation of the Company not properly includable in profits or losses, and any amounts released from operating reserve accounts described in this section 8.2(a) and available for distribution, shall be included in Net Operating Cash Flow of the Company.

 

(b) Net Operating Cash Flow Distributions.  The Company’s Net Operating Cash Flow for such year (or such quarter) will be determined by the Accountants and distributed to the Members upon such a determination by the Managing Member.  Each distribution of Net Operating Cash Flow of the Company shall be made in the manner and amounts as follows:

 

First, to the Members, an amount equal to their Outstanding Capital Contributions; and

 

Second, any remaining Net Operating Cash Flow shall be distributed to the Members in proportion to their respective Percentage Interests.

 

Section 8.3 Proceeds of Capital Transactions.

 

(a) Net Capital Transaction Proceeds.  All cash which is available for distribution as a result of a Capital Transaction and any cash, other than Net Operating Cash Flow distributable pursuant to Section 8.2(b), shall first be applied to the payment of all debts, fees, costs and liabilities of the Company then due (or required by any lender or creditor to be repaid on account of the event referred to in this Section 8.3(a) which makes such cash available), and second, to the extent deemed reasonable by the Managing Member, to fund reserves for liabilities, working capital, capital acquisitions, or other business plans or contingencies of the Company; provided, that at the expiration of such period of time as the Managing Member shall reasonably deem advisable, the balance of such reserves remaining after payment (or other satisfaction) of such contingencies shall be distributed in the manner hereinafter set forth in this Section 8.3(a).  The remaining cash available for distribution (the “Net Capital Transaction Proceeds”), if any, shall then be distributed to the Members at such times as the Managing Member shall, in its reasonable discretion, determine in accordance with the priorities set forth in Section 8.3(b).

 

(b) In the event of a Capital Transaction, Net Capital Transaction Proceeds shall be distributed as follows:

 

First, to the Members in an amount equal to their Outstanding Capital Contributions; and

 

Second, any remaining Net Capital Transaction Proceeds shall be distributed to the Members in proportion to their respective Percentage Interests.

 

Section 8.4 General Rules for Allocations and Distributions.                                                                                       All profits and losses allocated to, and distributions of cash made to, the Members shall be credited or charged, as the case may be, to their Capital Accounts as of the date as of which such profits or losses are allocated and the date as of which distributions of cash are made.  All distributions made to the Members pursuant to Section 8.4 shall be treated as having been made and charged to their respective Capital Accounts after the allocation, if any, of profits or losses pursuant to Section 8.1 and after any distributions made to the Members under Section 8.2.

 

Section 8.5 Allocations and Distributions Within Classes of Members.  Except as otherwise specifically required herein, all profits or losses and other allocations of the Company allocated to, and distributions of cash made to, a class of Members shall be allocated among the respective members of such class in proportion to their respective Capital Contributions.

 

Section 8.6 Return of Members’ Capital Contributions.  All Members shall look solely to the assets of the Company for the return of their respective Capital Contributions or any other distributions with respect to their Company interests.  If the assets remaining after payment or discharge, or provisions for payment or discharge, of its debts and liabilities are insufficient to return the Capital Contributions or to make any other distributions to the Members, no Member shall have any recourse against the personal assets of any other Member for that purpose.  No Member shall have any obligation to fund any deficit in his Company Capital Account.

 

ARTICLE IX                                

 

DISSOLUTION AND TERMINATION

 

Section 9.1 Dissolution.

 

(a) The Company shall be dissolved upon the occurrence of any of the following events:

 

(i) upon the entry of a decree of judicial dissolution under the Act; or

 

(ii) upon the withdrawal of the last remaining Member subject to the right of the personal representative of the last remaining Member to continue the Company; or

 

(iii) upon a determination made by the Managing Member with the written consent of all of the Members.

 

(b) The death, retirement, insanity, bankruptcy, or any other event which results in the withdrawal of a Member hereunder shall not dissolve the Company or cause its affairs to be wound up.

 

Section 9.2 Effect of Filing of Certificate of Cancellation.  Upon the dissolution of the Company, the Company shall cease to carry on its business, except insofar as may be necessary for the winding up of its business, but its separate existence shall continue until the Certificate of Cancellation is filed with the Secretary or until a decree dissolving the Company has been entered by a court of competent jurisdiction.

 

Section 9.3 Winding Up, Liquidation and Distribution of Assets.

 

(a) Upon dissolution, an accounting shall be made by the Company’s independent accountants of the accounts of the Company and of the Company’s assets, liabilities and operations, from the date of the last previous accounting until the date of dissolution.  The Managing Member shall immediately proceed to wind up the affairs of the Company.

 

(b) If the Company is dissolved and its affairs are to be wound up, the Managing Member shall, after receiving authorization, (1) sell or otherwise liquidate all of the Company’s assets as promptly as practicable (except to the extent the Managing Member may determine to distribute any assets to the Members in kind), (2) allocate any profit or loss resulting from such sales to the Members’ Capital Accounts in accordance with Article VIII hereof, (3) discharge all liabilities of the Members (other than liabilities to Members), including all costs relating to the dissolution, winding up, and liquidation and distribution of assets, (4) establish such reserves as may be reasonably necessary to provide for contingent liabilities of the Company (for purposes of determining the Capital Accounts of the Members, the amounts of such reserves shall be deemed to be an expense of the Company), (5) discharge any liabilities of the Company to the Members other than on account of their interests in Company capital or profits, and (6) distribute the remaining assets in the following order:

 

(i) If any assets of the Company are to be distributed in kind, the net fair market value of such assets as of the date of dissolution shall be determined by independent appraisal or by the Managing Member.  Such assets shall be deemed to have been sold as of the date of dissolution for their fair market value, and the Capital Accounts of the members shall be adjusted pursuant to the provisions of this Agreement to reflect such deemed sale.

 

(ii) The positive balance of each Member’s Capital Account as determined after taking into account all Capital Account adjustments for the Company’s taxable year during which the liquidation occurs, shall be distributed to the Members, either in cash or in kind, as determined by the Managing Member, with any assets distributed in kind being valued for this purpose at their fair market value.  Any such distributions to the Members in respect of their Capital Accounts shall be made in accordance with the time requirements set forth in Section 1.704-1(b) (2) (ii) (b) (2) of the Treasury Regulations.

 

(c) Notwithstanding anything to the contrary in this Agreement, upon a liquidation within the meaning of Section 1.704-1(b) (2) (ii) (g) of the Treasury Regulations, if any Member has a negative deficit Capital Account balance (after giving effect to all contributions, distributions, allocations and other Capital Account adjustments for all taxable years, including the year during which such liquidation occurs), such Member shall have no obligation to make any contribution to the capital of the Company, and the negative balance of such Member’s Capital Account shall not be considered a debt owed by such Member to the Company or to any other person for any purpose whatsoever.

 

(d) Upon completion of the winding up, liquidation and distribution of the assets, the Company shall be deemed terminated.

 

(e) The Managing Member shall comply with all requirements of applicable law pertaining to the winding up of the affairs of the Company and the final distribution of its assets.

 

Section 9.4 Certificate of Cancellation.  When all debts, liabilities and obligations have been paid and discharged or adequate provisions have been made therefor and all of the remaining property and assets have been distributed to the Members, a Certificate of Cancellation shall be executed and filed with the Secretary.

 

Section 9.5 Return of Contribution Non-recourse to Other Members.  Upon dissolution, each Member shall look solely to the assets of the Company for the return of its Capital Contribution.  If the Company property remaining after the payment or discharge of the debts and liabilities of the Company is insufficient to return the cash or other property contribution of one or more Members, such Member or Members shall have no recourse against any other Member.

 

ARTICLE X                                

 

BOOKS AND RECORDS, ACCOUNTING, TAX ELECTIONS, ETC.

 

Section 10.1 Books and Records.  The Managing Member shall keep or cause to be kept complete and accurate books and records of the Company (at Company expense) which shall be maintained and be available at the principal office of the Company for examination and copying by any Members, or such Member’s duly authorized representatives, at any and all reasonable times, provided that (a) such inspection shall occur during normal business hours and only after reasonable advance notice to the Managing Member, and (b) the inspecting Member shall be responsible for any out-of-pocket costs or expenses incurred by the Company in making such books and records available for inspection.  The Company may maintain such books and records and may provide such financial or other statements as the Managing Member deems advisable.

 

Section 10.2 Bank Accounts.  The bank accounts of the Company shall be maintained in such banking institutions as the Managing Member shall determine, and withdrawals shall be made therefrom on such signature or signatures as the Managing Member shall determine.

 

Section 10.3 Accountants.  The Accountants for the Company shall be such firm of certified public accountants as shall be engaged by the Managing Member on behalf of the Company from time to time.  The Accountants shall review and sign all tax returns of the Company.

 

Section 10.4 Reports to the Members.  The Managing Member shall cause to be prepared and sent to each Member each year financial statements, including the following:  (a) within 90 days after the close of each fiscal year, annual reports of the Company, including a balance sheet and the related statement of changes in financial position, and (b) annual statements indicating the share of each Member of the net income, net loss, depreciation, gain, loss and other relevant items of the Company for each calendar year for income tax reporting purposes, prepared by the Accountants within 90 days after the close of such calendar year.  The Managing Member shall not incur any liability as a result of a failure to furnish timely any such report if it has acted in good faith with respect to attempting to provide such reports.

 

Section 10.5 Reporting Year and Accounting Method; Tax Year.  The reporting and fiscal year of the Company shall be the twelve-month period ending December 31.  The books of the Company shall be kept on such basis as the Managing Member determines appropriate.  The tax year of the Company shall be the calendar year.

 

ARTICLE XI                                

 

GENERAL PROVISIONS

 

Section 11.1 Notices.  Any and all notices contemplated by this Agreement shall be deemed adequately given only if in writing and delivered or sent by first class mail, postage prepaid, to the party or parties for whom such notices are intended.  All such notices in order to be effective shall be addressed to the last address of record on the Company books when given by the Managing Member and intended for the Members and to the address of the Company when given by any of the Members and intended for the Managing Member.

 

Section 11.2 Amendment.  This Agreement may be amended by the Managing Member in any manner in the sole discretion of the Managing Member, without the consent of any Member.

 

Section 11.3 Word Meanings.  The words such as “herein,” “hereinafter,” “hereof” and “hereunder” refer to this Agreement as a whole and not merely to a subdivision in which such word appears unless the context otherwise requires.  The singular shall include the plural and the masculine gender shall include the feminine and neuter, and vice versa, unless the context otherwise requires.

 

Section 11.4 Titles.  Captions contained in this Agreement are inserted only as a matter of convenience and in no way define, limit, extend or describe the scope of this Agreement or the intent of any provision hereof.

 

Section 11.5 Binding Provisions.  The covenants and agreements contained herein shall be binding upon, and inure to the benefit of, the parties and their respective legal representatives, successors in interest and permitted assigns.

 

Section 11.6 Applicable Law.  This Agreement shall be governed by and construed and enforced in accordance with the internal substantive laws of the State.

 

Section 11.7 Counterparts.  This Agreement may be executed in several counterparts and all such executed counterparts shall constitute one agreement binding on all parties hereto, notwithstanding that all parties have not signed the original or the same counterpart, except that no counterpart shall be binding unless signed by the Managing Member.

 

Section 11.8 Separability of Provisions.  Each provision of this Agreement shall be considered separable.  If for any reason any provision of this Agreement is determined to be unenforceable, invalid or contrary to any existing or future law, such invalidity and unenforceability or illegality shall not impair the operation of or affect those portions of this Agreement which are valid, enforceable and legal.

 

Section 11.9 Integration.  This Agreement, along with the Schedules hereto, reflects the entire understanding of the parties hereto with respect to the subject matter hereof.

 

Section 11.10 Execution of Additional Instruments.  Each Member hereby agrees to execute such other and further statements of interest and holdings, designations, powers of attorney and other instruments necessary to comply with any laws, rules or regulations, or this Agreement.

 

Section 11.11 Waivers.  The failure of any party to seek redress for violation of or to insist upon the strict performance of any covenant or condition of this Agreement shall not prevent a subsequent act, which would have originally constituted a violation, from having the effect of an original violation.

 

Section 11.12 Rights and Remedies Cumulative.  The rights and remedies provided by this Agreement are cumulative and the use of any one right or remedy by any party shall not preclude or waive the right to use any or all other remedies. Said rights and remedies are given in addition to any other rights the parties may have by law, statute, ordinance or otherwise.

 

Section 11.13 Heirs, Successors and Assigns.  Each and all of the covenants, terms, provisions and agreements herein contained shall be binding upon and inure to the benefit of the parties hereto and, to the extent permitted by this Agreement, their respective heirs, legal representatives, successors and assigns.

 

Section 11.14 Creditors.  None of the provisions of this Agreement shall be for the benefit of or enforceable by any creditors of the Company.

 

A/74005776.3

  

1

  

-  -

IN WITNESS WHEREOF this Agreement has been executed under seal as of the date first set forth above.

 

MEMBERS:

 

BERKSHIRE MULTIFAMILY VALUE

FUND-II OP, L.P.,

a Delaware limited partnership

 

By:           Berkshire Multifamily REIT II GP, L.L.C.,

a Delaware limited liability company

its general partner

 

By: /s/ David E. Doherty                                                                

Name: David E. Doherty                                                                

Title: Senior Vice President                                                                

 

BERKSHIRE INCOME REALTY-OP, L.P.

a Delaware limited partnership

 

By:           BIR GP, L.L.C.,

a Delaware limited liability company

its general partner

 

By: /s/ Christopher M. Nichols                                                                

Name: Christopher M. Nichols                                                                

Title:  Senior Vice President                                                                

 

A/74005776.3

  

2

  

Schedule A

 

Schedule of Capital Contributions

 

	
Members

	
Capital Contribution

	
Percentage Interest

	  	  	  
	  	  	  
	
Berkshire Multifamily Value Fund-II OP, L.P.

	
As set forth on the Books and Records of the Company from time to time

	
66.66667%

	  	  	  
	
Berkshire Income Realty-OP, L.P.

 

	
As set forth on the Books and Records of the Company from time to time

 

	
33.33333%

A/74005776.3

  

3

  

Schedule B

 

Officers of the Company

 

	
Name:

 

	
Title:

	
Frank Apeseche

	
President

	
David C. Quade

	
Executive Vice president

	
David Olney

	
Senior Vice President

	
David Olney

	
Chief Investment Officer

	
David Doherty

	
Senior Vice President

	
Christopher Nichols

	
Senior Vice President

	
Stephen Parthum

	
Vice President

	
Paul Sevieri

	
Vice President

	
David C. Quade

	
Treasurer

	
Claire Umanzio

	
Assistant Treasurer

	
Mary Beth Bloom

	
Secretary

	
David Doherty

	
Assistant Secretary

A/74005776.3

  

4exhibit_4-4.htm

Exhibit 4.4

 

PORTIONS OF THIS AGREEMENT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934; [***] DENOTES OMISSIONS.

 

GOOGLE SEARCH AND ADVERTISING SERVICES AGREEMENT

 

This Google Search and Advertising Services Agreement (“GSA”) is entered into by Google Ireland Limited, whose principal place of business is at Gordon House, Barrow Street, Dublin 4 (“Google”) and Incredimail Ltd whose principal place of business is at 4 Hanechoshet st., Tel Aviv, Israel ("Company") and is effective from 1 January 2011 (“GSA Effective Date”).

 

INTRODUCTION

 

	
(A)

	
Google and Company have agreed that Google will provide certain of its search and advertising related services to Company, as listed in one or more Order Forms.

 

	
(B)

	
Each Order Form will form a separate (and separately terminable) agreement between Company and Google on the terms contained in the Order Form and in this GSA.

 

AGREED TERMS

 

	
1.

	
Definitions

 

	
1.1

	
In this GSA and any Order Form(s):

 

“Ad” means an advertisement forming part of an Ad Set;

 

“Ad Revenues” means the AdSense Revenues and ADX Revenues;

 

“Ad Set” means a set of one or more advertisements provided through the applicable Advertising Services;

 

“Advertising Services” means the AdSense Services and/or the ADX Services (if ordered);

 

“AdSense Revenues” means, for each of the AdSense Services, for any period during the Term, revenues that are recognised by Google and attributed to Ads displayed to End Users in that period in accordance with the applicable Agreement;

 

“AdSense Services” means the AdSense services listed on the front pages of the applicable Order Form, as updated by Google from time to time;

 

“AdSense Site” means, for the AdSense Services, the web site(s) located at the URL(s) listed on the front pages of the applicable Order Form in the AdSense Services section, together with any additional URL(s) approved by Google from time to time in accordance with clause 6.3(a) of this GSA;

 

“ADX” means Google Doubleclick Ad Exchange;

 

“ADX Guidelines” means the guidelines applicable to the ADX Services, as provided by Google to Company from time to time;

 

“ADX Revenues” means, for the ADX Services, for any period during the Term, revenues that are recognised by Google and attributed to Ads displayed to End Users in that period in accordance with the applicable Agreement;

 

“ADX Services” means the ADX services listed on the front pages of the applicable Order Form, as updated by Google from time to time;

 

“ADX Site” means the website(s) located at the URL(s) submitted by Company in writing to Google or through the ADX user interface, together with additional URL(s) submitted to Google from time to time under clause 6.3(a) of this GSA;

 

  

  

  

 

“AFC” means the provision of content and/or placement targeted hyperlinked advertisements via Google’s AdSense for Content Service under the applicable Agreement;

 

“AFS” means the provision of keyword targeted hyperlinked advertisements via Google’s AdSense for Search Service under the applicable Agreement;

 

“Agreement” means an agreement between Company and Google on the terms contained in the applicable Order Form and this GSA;

 

“Approved Client Application” means, for each of the Services, any application, plug-in, helper, component or other executable code that runs on a user’s computer and is approved for the purpose of accessing those Services, as stated in the applicable Order Form or as otherwise agreed between the parties from time to time in writing;

 

“Confidential Information” means information disclosed by (or on behalf of) one party to the other party under this GSA or any Agreement that is marked as confidential or, from its nature, content or the circumstances in which it is disclosed, might reasonably be supposed to be confidential. It does not include information that the recipient already knew, that becomes public through no fault of the recipient, that was independently developed by the recipient or that was lawfully given to the recipient by a third party;

 

“Client ID” means an alphanumeric code as provided by Google to Company from time to time to be used to identify each Request;

 

“Company Content” means any content served to End Users that is not provided by Google;

 

“Company Partner” means, in respect of the ADX Site(s): (i) the owner (if not Company) of those Sites (if Company is not the owner of the ADX Site(s)); (ii) the third party with which Company is co-branding the ADX Site(s); or (iii) the third party for which Company is providing the Site on a white label basis;

 

“End Users” means individual human end users of a Site, Approved Client Application or Feed;

 

“Equivalent Ads” means any advertisements that are the same as or substantially similar in nature to the AFS Ads provided by Google under any Agreement.

 

“Feed” means any RSS, or variant, feed containing content from a Site as made available by the Company from time to time;

 

“Google Brand Features” means Google’s trade names, trademarks, logos and other distinctive brand features;

 

“Google Branding Guidelines” means the then-current brand treatment guidelines applicable to the AdSense Services and Search Services which may be found at the following URL: http://www.google.com/wssynd/02brand.html (or such other URL Google may provide from time to time);

 

“Google Program Guidelines” means the policy and implementation guidelines applicable to the AdSense Services and Search Services as notified to Company by Google from time to time;

 

“Google Technical Protocols” means the Google technical protocols and other technical requirements and specifications applicable to the Services as notified to Company by Google from time to time;

 

“Group Company” means in relation to each of the parties, any corporate body that (directly or indirectly) controls, is controlled by or is under common control with that party;

 

  

  

  

 

“Intellectual Property Rights” means all copyright, moral rights, patent rights, trade marks, rights in or relating to databases, rights in or relating to confidential information and any other intellectual property rights (registered or unregistered) throughout the world;

 

“Net AdSense Revenues” means, for each of the AdSense Services, for any period during the Term, AdSense Revenues for that period minus [***]

 

“Order Form” means a fully executed Google order form which incorporates this GSA;

 

“Request” means a request from Company or an End User to Google for a Search Results Set and/or an Ad Set (as applicable);

 

“Results” means Search Results Sets, Search Results, Ad Sets and/or Ads;

 

“Results Page” means any Site page, or page forming the content in a Feed, which contains any Results;

 

“Search Box” means a search box or other means approved by Google for the purpose of sending search queries to Google as part of a Request;

 

“Search Query” means a search query submitted directly on the Site or through any Approved Client Application by an End User by way of a Search Box;

 

“Search Result” means a search result forming part of a Search Results Set;

 

“Search Results Set” means a set of one or more search results provided through the applicable Search Services;

 

“Search Services” means the search services listed on the front pages of the applicable Order Form;

 

“Search Site” means, for the Search Services, the web site(s) located at the URL(s) listed on the front pages of the applicable Order Form in the Search Services section, together with any additional URL(s) approved by Google from time to time in accordance with clause 6.3(a) of this GSA;

 

“Services” means the Advertising Services and/or Search Services (as applicable);

 

“Site” means, the Search Site(s), the AdSense Site(s) and/or the ADX Site(s), as applicable;

 

“Term” means the term as stated in the applicable Order Form;

 

“Valid Request” means [***]

 

“Year” means, during the Term (as applicable): (a) a period of 12 months commencing on the Order Form Effective Date; or (b) any subsequent 12 month period thereafter, each commencing on the anniversary of the Order Form Effective Date;

 

“Year One” means the first period of 12 months starting from the Order Form Effective Date.

 

	
1.2

	
The words "include" and "including" will not limit the generality of any words preceding them.

 

  

  

  

 

	
2.

	
Implementation Requirements

 

	
2.1

	
Launch of the AdSense Services and Search Services

 

	
  

	
(a)

	
The parties will each use their reasonable endeavours to launch the AdSense Services and Search Services into live use within [***] from the effective date of the applicable Order Form.

 

	
  

	
(b)

	
Company will not put its implementation of the AdSense Services and Search Services for a Site into live use (or any amended implementation pursuant to clause 6.2a or b) until Google has notified Company that the implementation for that Site is approved (this approval not to be unreasonably withheld or delayed).

 

	
2.2

	
Implementation

 

	
  

	
(a)

	
Implementation of Services on a Site, Approved Client Application or through a Feed is conditional on Company or, in the case of ADX Services, on Company or Company Partner:

 

	
  

	
(i)

	
being the technical and editorial decision maker in relation to each page, including Results Pages, on which the Services are implemented; and

 

	
  

	
(ii)

	
having control over the way in which the Services are implemented on each of those pages;

 

	
  

	
(b)

	
Company will ensure that the AdSense Services and Search Services are implemented and maintained in accordance with:

 

	
  

	
(i)

	
the applicable Google Technical Protocols;

 

	
  

	
(ii)

	
the applicable Google Branding Guidelines;

 

	
  

	
(iii)

	
the applicable Google Program Guidelines; and

 

	
  

	
(iv)

	
the mock ups and specifications for such AdSense Services and Search Services set out in the exhibits to the applicable Order Form, unless otherwise approved by Google or permitted in accordance with clause 6.2(a), (b) or (c).

 

If there is any conflict between: (a) the items listed in 2.2(b)(i), (ii) and (iii); and (b) the mock ups and specifications referred to in 2.2(b)(iv), then the items listed in 2.2(b)(i), (ii) and (iii) shall take precedence over 2.2(b)(iv), and Company shall make all changes requested by Google in respect of the implementation of the AdSense Services and Search Services to resolve such conflict.

 

	
  

	
(c)

	
Company will ensure that the ADX Services are implemented and maintained in accordance with:

 

	
  

	
(i)

	
the applicable Google Technical Protocols; and

 

	
  

	
(ii)

	
the ADX Guidelines.

 

	
2.3

	
Requests

 

	
  

	
(a)

	
Google will:

 

	
  

	
(i)

	
for each Valid Request received by it, where available provide a Search Results Set or an Ad Set (as applicable); and

 

	
  

	
(ii)

	
within [***] of the end of each month during the Term, make available to Company Search Services and/or Advertising Services revenue and usage reports (as applicable) in such form and manner as Google generally makes such reports available at that time.

 

  

  

  

 

	 	
(b) 

	
Company will:

 

	
  

	
(i)

	
ensure that every Search Query generates a Request containing that Search Query;

 

	
  

	
(ii)

	
ensure that all Requests are sent to Google without editing, modifying or filtering the Requests or any Search Queries contained in the Requests individually or in the aggregate; and

 

	
  

	
(iii)

	
display the Search Results Sets and/or Ad Sets (as applicable) on the applicable Site or as part of the applicable Feed.

 

	
3.

	
Support Services

 

For each Agreement, Google will provide technical support services to Company during the applicable Term in accordance with Google’s technical support guidelines, as notified to Company by Google from time to time.  Google will not provide any technical support services in relation to any features which are identified by Google as “Beta” or unsupported in Google’s technical documentation from time to time.

 

	
4.

	
Policy and Compliance Obligations

 

	
4.1

	
Company will not, and will not knowingly or negligently allow any third party to:

	
  

	
(a)

	
modify, obscure or prevent the display of all, or any part of, any Results;

 

	
  

	
(b)

	
edit, filter, truncate, append terms to or otherwise modify any Search Query;

 

	
  

	
(c)

	
implement any click tracking or other monitoring of Results;

 

	
  

	
(d)

	
display any Results in pop-ups, pop-unders, exit windows, expanding buttons, animation or other similar methods;

 

	
  

	
(e)

	
interfere with the display of or frame any Results Page or any page accessed by clicking on any Results;

 

	
  

	
(f)

	
display any content between any Results and any page accessed by clicking on those Results or place any interstitial content immediately before any Results Page containing any Search Results;

 

	
  

	
(g)

	
enter into any type of co-branding, white labeling or sub-syndication arrangement with any third party in connection with any Results or Ad revenue (including any arrangement under which a third party pays to or receives from Company any fees, revenue share or other amounts in return for the display of Results), except that Company may enter into an arrangement with a Company Partner in accordance with the relevant Agreement where the ADX Services are implemented on the ADX Site(s) of that Company Partner;

 

	
  

	
(h)

	
directly or indirectly: (i) offer incentives to End Users to generate Requests or clicks on Results; (ii) fraudulently generate Requests or clicks on Results; or (iii) modify Requests or clicks on Results;

 

	
  

	
(i)

	
“crawl”, “spider”, index or in any non-transitory manner store or cache information obtained from the Services (including any Results);

 

	
  

	
(j)

	
display on any Site, Approved Client Application or Feed, any content that violates or encourages conduct that would violate any applicable laws, any third party rights, the Google Program Guidelines or Google Technical Protocols applicable to the AdSense Services or Search Services, or the ADX Guidelines applicable to the ADX Services, as notified to Company by Google from time to time;

 

	
  

	
(k)

	
send Requests to Google which are not Valid Requests; or

 

	
  

	
(l)

	
provide End Users with access (directly or indirectly) to any Results or Services using any application, plug-in, helper, component or other executable code that runs on a user’s computer, other than an Approved Client Application.

 

  

  

  

 

	
4.2

	
Google may generate a reasonable number of Requests or make a reasonable number of uncompensated clicks on any Results at any time to check that that the Services continue to be implemented in accordance with the applicable Agreement and are functioning well.

 

	
5.

	
Compliance

 

	
5.1

	
Company will not knowingly or negligently allow any use of or access to the Services through any Site, Approved Client Application or Feed which is not in compliance with the terms of the applicable Agreement or not otherwise approved by Google. Company will use its reasonable endeavours to monitor for any such access or use and will, if any such access or use is detected, take all reasonable steps requested by Google to disable this access or use.  Notwithstanding clause 15.2, if Company is not in compliance with this GSA or any Agreement at any time, Google may, with written notice to Company, suspend provision of all (or any part of) the applicable Services until Company implements adequate corrective modifications as reasonably required and determined by Google. Google shall use reasonable endeavours to hold a meeting with Company (including by way of telephone and/or video conference) to explain the reason for any suspension of the Services (or any part of them) before such suspension is put into effect.

 

	
5.2

	
Company will procure that Company Partner uses, or accesses the ADX Services, including Results, in accordance with this GSA and any Agreement, as if Company’s obligations in this GSA and any Agreement were obligations on Company Partner.  Company will not provide Company Partner with access to the ADX user interface.  Company accepts full liability for the actions and/or inactions of the Company Partner as if such actions and/or inactions were Company’s own.

	
6.

	
Changes and Modifications

6.1           By Google

	
  

	
(a)

	
If Google modifies any Google Branding Guidelines, Google Program Guidelines, Google Technical Protocols or ADX Guidelines and the modification requires action by Company then, subject to clause 6.2(e), Company will complete the necessary action no later [***] from receipt of notice from Google of the modification.

 

	
6.2

	
By Company

 

	
  

	
(a)

	
Unless approved in writing in advance by Google, Company will not make any changes in relation to:

 

	
  

	
(i)

	
the display or implementation of the Search Box, including changes to the format, size or placement of the Search Box;

 

	
  

	
(ii)

	
the display of Search Results Sets, Search Results, AFC Ad Sets or AFC Ads on a Results Page, including changes to their number, colour, font, size or placement or the extent to which they are clickable;

 

	
  

	
(iii)

	
the display of Equivalent Ads, AFS Ad Sets or AFS Ads on a Results Page, including changes to their number, colour, font, size or placement or the extent to which they are clickable; or

 

	
  

	
(iv)

	
the use of any Google Brand Features or other attribution or similar wording.

 

	
  

	
(b)

	
Where Company requests approval pursuant to clause 6.2(a)(iii) above, Google may only withhold its approval on grounds that the proposed change would be in breach of the applicable Agreement or the Google Branding Guidelines and Google may not withhold its approval on purely commercial grounds.  If Google does not respond to any such request for approval within [***] of receipt from Company, such approval shall be deemed given by Google.  Notwithstanding the foregoing, Company shall at all times comply with the requirements of clause 7.2(b).

 

  

  

  

 

	
  

	
(c)

	
Subject to clauses 6.2(a) and (b), Company may update the design and content of any Site, Approved Client Application or Feed in a manner consistent with its obligations under this Agreement.

 

	
  

	
(d)

	
Company will provide Google with at least [***] advance notice of any change in code or serving technology that could reasonably be expected to affect use of the Services.

 

	
  

	
(e)

	
If a fault in Company’s implementation of the Services (or any of them) could cause or is causing an interruption or degradation of the Services (or any of them), Company will make the required fixes or changes as soon as reasonably possible.

 

6.3           Site List Changes

 

	 	
(a)

	
Company may notify Google from time to time that it wishes to add additional URLs to those comprising the AdSense Site(s) or Search Site(s), such notification to be sent to Google at least [***] (or such shorter period as Google may agree) before Company wishes the addition to take effect. Google may approve or disapprove the request at its reasonable discretion, this approval or disapproval to be in writing.

 

	 	
(b)

	
Company may notify Google from time to time that it wishes to add additional URLS or remove URL(s) to those comprising the ADX Site(s) by either sending notice to Google or adding or removing the URL(s) through the ADX user interface.

 

	 	
(c)

	
If there is any change in control of any Site or Feed (such that the conditions set out in clause 2.2 (a) are not met):

 

	
  

	
(i)

	
Company will notify Google at least [***] in advance of the change;

 

	
  

	
(ii)

	
unless the entire applicable Agreement is assigned to a third party in accordance with clause 16.3, from the date of such change, that Site or Feed will be treated as removed from the applicable Order Form and Company will ensure that from that date the Services are no longer implemented on that Site or through the applicable Feed(s).

 

	
7.

	
[***]

 

	
8.

	
Intellectual Property Rights

 

Except to the extent expressly stated otherwise in this GSA or any Agreement, neither party will acquire any right, title, or interest in any Intellectual Property Rights belonging to the other party, or the other party’s licensors.

 

	
9.

	
Trade mark licence

 

	
9.1

	
Google grants to Company a non-exclusive and non-sublicensable licence during the Term to use the Google Brand Features solely to fulfil Company’s obligations under the applicable Agreement in accordance with its terms and subject to compliance with the Google Branding Guidelines in respect of the AdSense Services and/or Search Services.

 

	
9.2

	
All goodwill arising from the use by Company of the Google Brand Features will belong to Google.

 

	
9.3

	
Google may revoke the licence granted under clause 9.1 above at any time on reasonable written notice.

 

	
10.

	
Payment

 

	
10.1

	
Search Services

 

	
  

	
[***]

 

  

  

  

 

	
10.2

	
AdSense Services

 

	 	
[***]

 

	
10.3

	
ADX Services

 

[***]

 

	
10.4

	
All Services

 

	
  

	
(a)

	
[***]

 

	
  

	
(b)

	
In respect of the Search Services and the AdSense Services, all payments due to Google or to Company will be in the currency specified in the applicable Order Form and made by electronic transfer to the account notified to the paying party by the other party for that purpose.  In respect of the ADX Services, all payments to Company will be in the form of payment and currency specified by Company in the ADX user interface.  In all cases, the party receiving payment will be responsible for any bank charges assessed by the recipient's bank.

 

	
  

	
(c)

	
Google will, unless it has notified Company otherwise, set off the search fees payable by Company under an Agreement against Google’s payment obligations to Company under that Agreement.

 

	
  

	
(d)

	
If Google recognises any ad revenues in error or otherwise overpays Company for any reason, Google will, unless it has notified Company otherwise, set off the overpaid amounts against Google’s payment obligations to Company under the Agreement to which the overpaid amounts related or require Company to pay to Google within [***] of an invoice, any such overpaid amounts.

 

	
  

	
(e)

	
Google or Company (as applicable) may charge interest at the rate of [***] above the base rate of Barclays Bank PLC from time to time, from the due date until the date of actual payment, whether before or after judgment: (i) in the case of Google, on any fee for Search Services which is overdue; and (ii) in the case of Company, on any payments to be made by Google to Company in relation to Advertising Services which are overdue, unless such payments have been set off.

 

	
11.

	
Warranties

 

	
11.1

	
Each party warrants to the other that it will use reasonable care and skill in complying with its obligations under this GSA and any Agreement(s).

 

	
11.2

	
No conditions, warranties or other terms apply to any Services or to any other goods or services supplied by Google under this GSA or any Agreement unless expressly set out in this GSA or the applicable Agreement. Subject to clause 13.1(b), no implied conditions, warranties or other terms apply (including any implied terms as to satisfactory quality, fitness for purpose or conformance with description).

 

	
12.

	
Indemnities

 

	
12.1

	
If either:

 

	
  

	
(a)

	
Company receives a claim from a third party that either Google’s or any Google Group Company’s technology used to provide the Services or, where Company has ordered the Search Services and/or AdSense Services , any Google Brand Feature infringe(s) any Intellectual Property Rights of that third party; or

 

	
  

	
(b)

	
Google receives a claim from a third party that the Company Content, Site and/or Approved Client Application (if any) infringe(s) any Intellectual Property Rights of that third party or a claim from a Company Partner relating to any use of, or access to, the ADX Services, or the implementation or display of Ads on a Site of a Company Partner;

 

  

  

  

 

(in each case, an “IP Claim”) then the party which received such IP Claim (the “Recipient”) will:

 

	 	
(i) 

	
promptly notify the other party;

 

	
  

	
(ii)

	
provide the other party with reasonable information, assistance and cooperation in responding to and, where applicable, defending such IP Claim; and

 

	
  

	
(iii)

	
give the other party full control and sole authority over the defence and settlement of such IP Claim.  The Recipient may appoint its own supervising counsel of its choice at its own expense.

 

	
12.2

	
Provided the Recipient complies with clause 12.1(i) to (iii) and subject (if applicable) to clause 12.3, the party notified in accordance with clause 12.1(i) (the “Indemnifying Party”) will accept full control and sole authority over the defence and settlement of such  IP Claim and will indemnify the Recipient against all damages and costs awarded for such IP Claim, settlement costs approved in writing by the Indemnifying Party in relation to such IP Claim, reasonable legal fees necessarily incurred by the Recipient in relation to such IP Claim and reasonable costs necessarily incurred by the Recipient in complying with clause 12.1(i) to (iii).

 

	
12.3

	
Google will not have any obligations or liability under this clause 12 in relation to any IP Claim arising from any:

 

	
  

	
(a)

	
use of the Services or Google Brand Features in a modified form or in combination with materials not furnished by Google;

 

	
  

	
(b)

	
[***]

 

	
  

	
(c)

	
[***]

 

	
  

	
(d)

	
acts or omissions by Company Partner.

 

	
12.4

	
Company will not have any obligations or liability under this clause 12 in relation to any IP Claim arising from content, information or data provided to Company by Google save where Company’s use of such content, information or data is in breach of the terms and conditions of this GSA or any Agreement.

 

	
12.5

	
Google may (at its sole discretion) suspend Company’s use of any Services or Google Brand Features which are alleged, or believed by Google, to infringe any third party’s Intellectual Property Rights, or to modify such Services or Google Brand Features to make them non-infringing. If any suspension of Services under this clause continues for more than [***], Company may, at any time until use of the applicable Services is reinstated, terminate the applicable Agreement immediately upon written notice.

 

	
12.6

	
This clause 12 states the parties’ entire liability and exclusive remedy with respect to infringement of a third party’s Intellectual Property Rights.

 

	
13.

	
Limitation of Liability

 

	
  

	
[***]

 

	
14.

	
Confidentiality

 

	
14.1

	
The recipient of any Confidential Information will not disclose that Confidential Information, except to Group Companies, employees and/or professional advisors who need to know it and who have agreed in writing (or in the case of professional advisors are otherwise bound) to keep it confidential. The recipient will ensure that those people and entities: a) use such Confidential Information only to exercise rights and fulfil obligations under this Agreement, and b) keep such Confidential Information confidential. The recipient may also disclose Confidential Information when required by law after giving reasonable notice to the discloser, such notice to be sufficient to give the discloser the opportunity to seek confidential treatment, a protective order or similar remedies or relief prior to disclosure.

 

  

  

  

 

	
14.2

	
Notwithstanding clause 14.1 above, and except, in respect of ADX Services, as specified by Company’s anonymity preferences selected in the ADX user interface, Google may: (i) share Site-specific statistics, the Site URL(s), and related information collected by Google through its provision of the Advertising Services to Company with advertisers or potential advertisers; (ii) share know how gained by Google through its provision of the Services to Company (including sharing information illustrating this know how presented in an anonymised or aggregated form) with third parties.  In either case, this sharing of information will not include any sharing of personally identifying information.

 

	
14.3

	
Notwithstanding clause 14.1 above, Company may disclose to Company Partner, or to any other third party, the ADX reports provided by Google to Company.  Company shall not disclose to any Company Partners, or any other third party, the Percentage of ADX Revenues payable to Company, or any information that could allow such Company Partners or third party to calculate the Percentage of ADX Revenues payable to Company.

 

	
14.4

	
Company will ensure that at all times during the applicable Term, Company or, in the case of ADX Services, Company and Company Partner has a clearly labelled and easily accessible privacy policy in place relating to the applicable Site(s) and that this privacy policy:

 

	
  

	
(a)

	
clearly discloses to End Users that third parties may be placing and reading cookies on End Users’ browsers or using web beacons to collect information in the course of advertising being served on the applicable Site(s); and

 

(b)           includes information about End Users’ options for cookie management.

 

	
14.5

	
Google may migrate data derived from Company’s use of the DoubleClick Advertising Exchange to ADX.  The parties agree that any data migrated to ADX will be subject solely to the terms of this GSA or any Agreement.

 

	
14.6

	
Google hereby acknowledges that Company is a publicly traded company, and as such is obliged to comply with certain disclosure rules, including the obligation to disclose the existence of this Agreement and its material terms and conditions to the U.S Securities and Exchange Commission (the “Authority”). Company shall work with Google to agree which terms of this Agreement should be treated as confidential (“Confidential Terms”) and Company shall use best endeavors to ensure that such Confidential Terms are granted confidential treatment by the Authority . Providing that Company has used best endeavours to ensure that the Confidential Terms are granted confidential treatment by the Authority,  Company shall not be held liable under this Agreement in the event that Confidential Terms are eventually required by the Authority to be publicly disclosed.

	
14.7

	
Subject to clause 14.6, neither Party will issue any press release regarding this GSA or any Agreement without the other’s prior written approval.

 

	
15.

	
Term and Termination

 

	
15.1

	
This GSA will commence on the GSA Effective Date and remain in force until it terminates or expires in accordance with its terms.  Each Agreement shall (unless earlier terminated in accordance with its terms) remain in force for the Term, at the end of which it shall expire automatically.

 

  

  

  

 

	
15.2

	
Without prejudice to clause 5.1, a party may suspend performance under any Agreement (in whole or in respect of a page of a Site, a Site or Sites) and/or terminate any Agreement (in whole) or remove a page of a Site, a Site or Sites from any Agreement with immediate effect, if the other party:

 

	
  

	
(a)

	
is in material breach of the Agreement where the breach is incapable of remedy;

 

	
  

	
(b)

	
is in material breach of the Agreement where the breach is capable of remedy and fails to remedy that breach within [***] after receiving written notice of such breach; or

 

	
  

	
(c)

	
is in material breach of the Agreement more than twice even if the previous breaches were remedied,

 

provided (in each case) that any such suspension or removal of a page(s) or Site(s) may only take effect in relation to the page(s) or Site(s) on (or in respect of which) the relevant breach has occurred.

 

	
15.3

	
A party may suspend performance and/or terminate this GSA (and all Agreements) with immediate effect, if:

 

	
  

	
(a)

	
the other party enters into an arrangement or composition with or for the benefit of its creditors, goes into administration, receivership or administrative receivership, is declared bankrupt or insolvent or is dissolved or otherwise ceases to carry on business; or

 

	
  

	
(b)

	
any analogous event happens to the other party in any jurisdiction in which it is incorporated or resident or in which it carries on business or has assets.

 

	
15.4

	
[***]

 

	
15.5

	
Google has the right (in its sole discretion) with [***] notice to Company to remove or require Company to remove the AFC Services from any Site (or part of a Site) on which the AFC RPM falls below [***] for the previous calendar month. For the purposes of this clause 15.5, “AFC RPM” means AFC AdSense Revenues per [***] AFC Requests.

 

	
15.6

	
Google may terminate any Agreement on at least [***] to Company if at any time the average total amount of Ad Revenues (in respect of all Advertising Services provided under the relevant Order Form) calculated across [***] is less than or equal to [***].

 

	
15.7

	
The parties acknowledge that following any removal of the AFC Services from any Site or termination of an Agreement pursuant to clause 15.5 or 15.6, Company may continue to receive the applicable Google advertising services in relation to the relevant Site (or part of a Site) by entering into an online agreement with Google in respect of such services and Site.

 

	
15.8

	
Upon the expiration or termination of this GSA for any reason:

 

	
  

	
(a)

	
all rights and licences granted by each party will cease immediately; and

 

	
  

	
(b)

	
if requested, each party will use its reasonable endeavours to promptly return to the other party, or destroy and certify the destruction of, all Confidential Information disclosed to it by the other party.

 

	
15.9

	
The termination or expiration of an individual Agreement will not have the effect of terminating any other Agreement or this GSA unless expressly agreed to by the parties in writing.  If an Agreement (but not this GSA) terminates or expires, all rights and licences granted by Google to Company under that Agreement will cease immediately.  Termination or expiration of all Agreements will result in the expiration of this GSA on the same date on which the last Agreement terminates or expires.

 

	
16.

	
General

 

	
16.1

	
All notices of termination or breach must be in English, in writing, addressed to the other party’s Legal Department and sent to Company’s postal address, fax number or email address identified for legal notices on the applicable Order Form or to legal-notices@google.com (as applicable) or such other address as either party has notified the other in accordance with this clause. All notices will be deemed to have been given on receipt as verified by written or automated receipt or electronic log (as applicable).

 

  

  

  

 

	
16.2

	
All other notices must be in English, in writing (which for these purposes may include an email), addressed to the other party’s primary contact and sent to their then current postal address or email address.

 

	
16.3

	
Neither party may assign any of its rights or obligations under this GSA or any Agreement without the prior written consent of the other.  Where a party gives the other party such written consent: (a) the assignor shall ensure that the assignee has agreed in writing to be bound by the terms of this GSA and the applicable Agreement(s); and (b) the assignment takes effect from 23:59 on the last day of the relevant calendar month.

 

	
16.4

	
[***]

 

	
16.5

	
Except as expressly stated otherwise, nothing in this GSA or any Agreement will create or confer any rights or other benefits in favour of any person other than the parties to this GSA.

 

	
16.6

	
Except as expressly stated otherwise, nothing in this GSA or any Agreement will create an agency, partnership or joint venture of any kind between the parties.

 

	
16.7

	
Neither party will be liable for failure to perform or delay in performing any obligation under this GSA or any Agreement if the failure or delay is caused by any circumstances beyond its reasonable control.

 

	
16.8

	
Google may (at its sole discretion) suspend the provision of any Services or modify any Services at any time to comply with any applicable law. If any suspension of Services under this clause continues for more than [***], Company may, at any time until provision of the applicable Services is reinstated, terminate the applicable Agreement immediately upon written notice.

 

	
16.9

	
Failure or delay in exercising any right or remedy under this GSA or any Agreement will not constitute a waiver of such (or any other) right or remedy.

 

	
16.10

	
The invalidity, illegality or unenforceability of any term (or part of a term) of this GSA or any Agreement will not affect the continuation in force of the remainder of the term (if any) and this GSA or applicable Agreement.

 

	
16.11

	
Subject to clause 13.1(b), this GSA and the Order Forms entered into under it set out all terms agreed between the parties in relation to its subject matter and supersede all previous agreements between the parties relating to the same. In entering into this GSA and the related Order Forms neither party has relied on any statement, representation or warranty not expressly set out in this GSA or any Order Form.

 

	
16.12

	
This GSA and any Agreements and any dispute (contractual or non-contractual) concerning this GSA and any Agreement(s) or their subject matter or formation (a “Dispute”) are governed by English law.

 

	
16.13

	
Any Dispute shall be referred to and finally resolved by arbitration under the rules of the LCIA, which rules are deemed to be incorporated by reference into this clause.  The number of arbitrators shall be three. The seat, or legal place, of arbitration shall be London, England.  The language to be used in the arbitration shall be English.

 

	
16.14

	
Clause 16.12 shall be without prejudice to the right of either party to apply to any court of competent jurisdiction for emergency, interim or injunctive relief (together "Interim Relief").  Such Interim Relief shall be subject to review and subsequent adjudication by the arbitral tribunal such that any dispute in respect of Interim Relief shall be determined by the arbitral tribunal.

 

  

  

  

 

Signed by the parties on the dates shown below.

 

	
Google

	
Company

	
By: ___________________________

	
By:  ___________________________                     

	
Print Name: _____________________

	
Print Name: _____________________                       

	
Title: __________________________

	
Title: __________________________           

	
Date: __________________________

	
Date: __________________________            

  

  

  

 

PORTIONS OF THIS ORDER FORM WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934; [***] DENOTES OMISSIONS.

 

	 	
Google Ireland Limited

Gordon House

Barrow Street

Dublin 4

Ireland

 

	
Google Search and Advertising Services Agreement 

ORDER FORM

 

	  
	
COMPANY: Incredimail Ltd

 

 

 

	
GSA Effective Date:

1st January 2011

	  	
commercial contact

	
legal notices

	
technical contact

	
name:

	
Josef Mandelbaum

	
Yacov Kaufman

	
Yuval Hamudot

	
 title:

	
CEO

	
CFO

	
CTO

	
address, city, area,

postal code, country:

	
Orr Towers,

4 Hanechoshet St

Tel Aviv 69710, Israel

	
Orr Towers,

4 Hanechoshet St

Tel Aviv 69710, Israel

	
Orr Towers,

4 Hanechoshet St

Tel Aviv 69710, Israel

 

	
phone:

	
+97237696102

	
+97237696157

	
+97237696106

	
fax:

	  	  	  
	
email:

	
josef@incredimail.com

	
yacov@incredimail.com

	
yuval@incredimail.com

	
VAT ID number:

	  
	
Order Form Effective Date: 1st January 2011

	
Term: from the Order Form Effective Date to 31 January 2013 (inclusive)

 

	
SEARCH SERVICES

 

	
WEB SEARCH SERVICES (“WS”)

 

	
search fees

(for all Search Queries transmitted to Google for the 

purpose of obtaining Search Results)

	
 

[***]

 

	
 

[***]

 

 

  

  

  

 

	
ADSENSE SERVICES

 

	
ADSENSE FOR SEARCH  (“AFS”)

 

	
Percentage (%) of Net AdSense Revenues for AFS 

payable to Company

	
 

[***]

 

(see Mock-Up screenshots attached at Exhibits A, B, C and D)

 

 

Approved Client Application(s):

 

Incredimail toolbar

Hiyo toolbar

 

(see Mock-Up screenshots attached at Exhibits E and F)

 

	
 

[***]

 

 

	
Payment Information Details

	
currency:

o     Euros

o     GB pounds

x US dollars

o     other:      

 

This Payment Information Details section applies only to the Search Services and AdSense Services as Company may select the relevant currency for ADX by using the ADX user interface.

 

 

  

- 2 -

  

PORTIONS OF THIS ORDER FORM WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934; [***] DENOTES OMISSIONS.

 

GSA Order Form Terms and Conditions

 

“GSA” means the Google Search and Advertising Services Agreement entered into between Google Ireland Limited (“Google”) and Company with the GSA Effective Date stated on the front sheet of this Order Form.

 

This is an Order pursuant to the GSA.  If there is any conflict between this Order Form and the GSA then this Order Form will, except as set out in clause 2.2(b) of the GSA, take precedence in relation to the Services to be supplied under this Order Form.

 

This Order Form shall commence on the Order Form Effective Date and shall continue for the period of the Term stated on the front sheet of this Order Form, unless terminated earlier in accordance with its terms. Any capitalized terms not defined in this Order Form shall have the meaning set out in the GSA.

 

Special Terms and Conditions

 

	
  

	
1.

	
Blocklist

 

	
  

	 	
Google shall use its reasonable endeavours to block advertisements containing those URLs as agreed between the parties from time to time.

 

	 	
2. 

	
Client Applications

 

	 	
2.1.

	
Subject to the Company’s compliance with clauses 2.2 and 2.3 below, the client application(s) set forth in the cover page(s) of this Order Form is an Approved Client Application for the purposes of (a) sending Requests to Google in connection with the Search Services which resolve to Results Pages on the WebSearch Site(s); and (b) sending Requests to Google for the purposes of generating Ad Sets to be displayed on the Site(s).

 

	 	
2.2.

	
[***]

 

	 	
2.3.

	
[***]

 

	 	
2.4.

	
Where an Approved Client Application provides End Users with the option to re-set his or her homepage to a Site and/or re-set his or her search engine to the WebSearch Services and  End Users choose not to re-set his or her homepage and/or search engine, Company shall provide End Users with a clear plain English message that no change has been made and, at Google’s option, shall provide Google with a copy of the message that will be sent to all such End Users for Google’s prior approval (such approval not to be unreasonably withheld or delayed). Where an End User chooses not to re-set his or her homepage to a Site and/or search engine to the WebSearch Services,  Company shall not offer such option to re-set to that End User again.

 

	 	
3. 

	
Company Suggested Searches using Company Provided Keywords

 

	 	
3.1

	
Subject to the remainder of this clause 3, Company may implement on the Site certain text links consisting of suggested keywords which are provided by Company or a third party (subject to Company obtaining Google’s prior written approval of such third party such approval not to be unreasonably withheld or delayed) (“Company Provided Keywords”) and which generate Requests when clicked on by End Users. If Company wishes to use Company Provided Keywords that are provided by a third party it shall send a written request to Google (each a “Third Party Notice”) and Google shall provide Company with a written reply, either approving or rejecting Company’s request, within fifteen days of Google’s receipt of such Third Party Notice. In the event that Google does not send a reply to a Third Party Notice  within fifteen days of Google’s receipt of such notice then Google shall be deemed to have given its approval to the Third Party Notice but Customer shall still be required to comply with all other provisions of this clause 3 including but not limited to clause 3.9.

 

	 	
3.2

	
Company shall ensure that all clicks by End Users on Company Provided Keywords generate Valid Requests: (i) which contain all of the relevant Company Provided Keyword(s) as presented to and clicked by the End User; and (ii) which are transmitted to Google in the manner specified by Google from time to time, without editing, filtering, truncating, appending terms to or otherwise modifying such Requests, either individually or in the aggregate.

 

	 	
3.3

	
Company may select the Company Provided Keywords using an automated or algorithmic mechanism which shall be subject to Google's approval ( such approval not to be unreasonably withheld or delayed).  If Company wishes to select Company Provided Keywords using an automated or algorithmic mechanism it shall send a written request to Google (each an “ Automated Notice”) and Google shall provide Company with a written reply, either approving or rejecting Company’s request, within fifteen days of Google’s receipt of such Automated Notice. In the event that Google does not send a reply to a request within fifteen days of Google’s receipt of such Automated Notice then Google shall be deemed to have given its approval to the Automated Notice but Customer shall still be required to comply with all other provisions of this clause 3 including but not limited to clause 3.9.

 

 

  

- 3 -

  

	 	
3.4

	
Company shall ensure that

 

	
  

	
3.4.1

	
Company Provided Keywords are determined by objective measures (rather than commercial criteria) such as search query frequencies and relevancies, and are not selected manually or in such a way as to be commercially biased to favour Search Queries that result in Ads with high CPC or otherwise;

 

	
  

	
3.4.2

	
Company Provided Keywords do not include any Google Brand Features and, subject to clause 3.8, are accompanied by wording that states that such Company Provided Keywords are provided by Company or a third party (e.g. “search terms provided by Incredimail”);

 

	
  

	
3.4.3

	
Company Provided Keywords do not contain or refer to any pornographic, hate-related or violent content or contain or refer to any other material, products or services that violate or encourage conduct that would violate any criminal laws, any other applicable laws, or any third party rights;

 

	
  

	
3.4.4

	
if Company Provided Keywords are related keywords, such keywords are relevant to the Request which generated the Results Page containing Search Results on which such Company Provided Keywords are displayed;

 

	
  

	
3.4.5

	
if Company Provided Keywords are popular keywords, then such keywords are derived from previous End User searches and arranged by popularity and Company shall ensure that such popular keywords are based on aggregate (not individual) End User searches. Company shall ensure that the list of popular keywords derived from previous End User searches is refreshed no less frequently than once per week.

 

	
  

	
3.4.6

	
if Company Provided Keywords are suggested keywords as part of auto-complete functionality, then such keywords are relevant to the current text entered into the Search Box by the End User.

 

	 	
3.5

	
Google may from time to time require that particular words or terms are not used as Company Provided Keywords.

 

	 	
3.6

	
Google may prohibit the sending of Requests by Company using Company Provided Keywords, may refuse to serve Ads in response to Requests generated via Company Provided Keywords, or may ask Company to disable Company Provided Keyword functionality altogether, if Google in its sole discretion determines that such feature or implementation is detrimental to Google and/or Google’s advertiser(s).

 

	 	
3.7

	
Company will use and assign Client IDs and/or channel IDs in relation to Company Provided Keywords as instructed by Google at all times, and will provide such information to Google as Google may reasonably request with respect to the use and application of any such Client IDs and/or channel IDs.

 

	 	
3.8

	
Company shall ensure that the implementation of such functionality is in accordance with the mock ups in Exhibit C and that Company Provided Keywords are clearly labelled with the designation approved, or notified, by Google to Company from time to time.

 

	 	
3.9

	
Company may only put its implementation of Company Provided Keywords into live use once Google’s technical and account management personnel are satisfied that Company has properly implemented Company Provided Keywords on the Site in accordance with Google’s technical and branding requirements and otherwise in accordance with the Agreement and Google has approved the Company’s implementation (such approval not to be unreasonably withheld or delayed).

 

	 	
3.10

	
Google may decide to offer to provide to Company functionality as part of the Search Services that is the same as or similar to Company Provided Keywords during the Term (“Google Provided Keywords”). If Google chooses to make Google Provided Keywords available to the Company during the Term it shall provide the Company with written notice (including by email) that shall include any terms of use and Company shall cease to provide Company Provided Keywords to End Users within 30 days of receipt of Google’s notice and shall implement Google Provided Keywords in accordance with the terms of use set out in the notice.

 

	 	
3.11

	
Google will not have any obligations or liability under clause 12 (Indemnities) of the GSA arising from or in connection with any Company Provided Keywords.  Company shall indemnify Google against all liabilities, costs, expenses, losses and damages suffered or incurred by Google or any Google Group Company as a result of any third party claim in connection with, arising from or related to the use of Company Provided Keywords and/or the implementation of that feature on any Site. In order for the indemnity given in this clause to apply in relation to a particular claim, Google will: (i) notify the Company in writing of such claim, as soon as reasonably practicable following Google’s internal investigation of such claim ; and (ii) provide Company with reasonable information, assistance and co-operation in defending the claim; and (iii) give Company full control and sole authority over the defence and settlement of such claim, subject to Google’s approval of any such settlement, which approval will not be unreasonably withheld or delayed.  Nothing in the GSA or any Order Form will exclude or limit Company’s liability under this clause 3.11. Company shall be liable for any act or omission by any such third party provider which, if had been committed by Company directly, would constitute a breach of this Agreement by Company.

 

	 	
4. 

	
Search History

 

	 	
4.1.

	
Company shall not implement on the Site text links provided by Company that consist of an End User’s previous Search Results and which generate Requests when clicked on by End Users (“Search History”) without Google’s prior written approval (including by email) such consent not to be unreasonably withheld or delayed. Google may require Company to provide mock-ups of the Site incorporating Search History before giving such approval.

 

  

- 4 -

  

 

	 	
4.2.

	
Subject to clause 4.1, Company shall not make Search History available to an End User unless it :

 

	
  

	
a)

	
Has provided the End User with sufficient information to allow End User to make an informed choice as to whether or not to enable Search History;

 

	
  

	
b)

	
Has obtained the End User’s prior opt-in consent to enable this feature; and

 

	
  

	
c)

	
Provides the End-User with the option, at all times, to disable Search History and delete his or her Search History .

 

	 	
4.3.

	
Subject to clauses 4.1 and 4.2, Company shall only provide an End User’s Search History to the End User that performed the searches and shall not provide such Search History to any other End User.

 

	 	
4.4.

	
Subject to clauses 4.1, 4.2 and 4.3, if Company implements Search History on the Site it shall ensure that no Requests contain any End User personal data. For the purposes of this clause 4.4 “personal data” means any information relating to an identified or identifiable natural person; an identifiable person is one who can be identified, directly or indirectly, in particular by reference to an identification number or to one or more factors specific to his physical, physiological, mental, economic, cultural or social identity.

 

	 	
4.5.

	
Company may only put its implementation of Search History into live use once Google’s technical and account management personnel are satisfied that Company has properly implemented Search History on the Site in accordance with Google’s technical and branding requirements and otherwise in accordance with the Agreement and Google has approved the Company’s implementation (such approval not to be unreasonably withheld or delayed).

 

	 	
4.6.

	
Company will use and assign Client IDs and/or channel IDs in relation to Search History as instructed by Google at all times, and will provide such information to Google as Google may reasonably request with respect to the use and application of any such Client IDs and/or channel IDs.

 

	 	
4.7.

	
Google will not have any obligations or liability under clause 12 (Indemnities) of the GSA arising from or in connection with any Search History.  Company shall indemnify Google against all liabilities, costs, expenses, losses and damages suffered or incurred by Google or any Google Group Company as a result of any third party claim in connection with, arising from or related to the use of Search History and/or the implementation of that feature on any Site. In order for the indemnity given in this clause to apply in relation to a particular claim, Google will: (i) notify the Company in writing of such claim, as soon as reasonably practicable following Google’s internal investigation of such claim; and (ii) provide Company with reasonable information, assistance and co-operation in defending the claim; and (iii) give Company full control and sole authority over the defence and settlement of such claim, subject to Google’s approval of any such settlement, which approval will not be unreasonably withheld or delayed.  Nothing in the GSA or any Order Form will exclude or limit Company’s liability under this clause 4.7. Company shall be liable for any act or omission by any such third party provider which, if had been committed by Company directly, would constitute a breach of this Agreement by Company.

 

	 	
4.8.

	
Company shall ensure that the implementation of such functionality is in accordance with the mock ups in Exhibit D and that Company “Search history” are clearly labelled with the designation approved, or notified, by Google to Company from time to time.

 

	 	
5. 

	
Early termination of Agreement

 

	 	
5.1.

	
 Either party may terminate this Agreement on 31 December 2011 by giving the other party not less than 90 days prior written notice. For the avoidance of doubt, if neither party serves a valid notice of early termination in accordance with this clause 5.1, this Agreement shall remain in full force and effect for the remainder of the Term unless terminated in accordance with the GSA.

 

	 	
6. 

	
Google Brand Features

 

	 	
6.1.

	
No licence to use Google Brand Features is granted by Google to Company under this Agreement and Company shall not be permitted to include any Google Brand Features  or attribution on any Site or as part of or in association with any Approved Client Application.

 

  

- 5 -

  

 

 

Signed by the parties on the dates shown below.

 

	
Google

	
Company

	 	 
	
By: ___________________________

	
By:  ___________________________                     

	
Print Name: _____________________

	
Print Name: _____________________                       

	
Title: __________________________

	
Title: __________________________           

	 
Date: __________________________

	Date: __________________________

  

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PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934; [***] DENOTES OMISSIONS.

 

MOCK-UPS

 

EXHIBIT A

[***]

 

  

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PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE COMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES EXCHANGE ACT OF 1934; [***] DENOTES OMISSIONS.

 

EXHIBIT B

[***]

 

  

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EXHIBIT B CONTINUED

[***]

 

  

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PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE 

COMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES 

EXCHANGE ACT OF 1934; [***] DENOTES OMISSIONS.

 

EXHIBIT C

[***]

 

  

- 10 -

  

 

EXHIBIT C CONTINUED

[***]

 

 

  

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PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE 

COMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES 

EXCHANGE ACT OF 1934; [***] DENOTES OMISSIONS.

 

EXHIBIT D

[***]

 

  

- 12 -

  

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE 

COMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES 

EXCHANGE ACT OF 1934; [***] DENOTES OMISSIONS.

 

EXHIBIT E

[***]

 

  

- 13 -

  

 

EXHIBIT E CONTINUED

[***]

 

  

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EXHIBIT E CONTINUED

   [***]

 

  

- 15 -

  

 

EXHIBIT E CONTINUED

[***]

 

  

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EXHIBIT E CONTINUED

[***]

 

  

- 17 -

  

 

PORTIONS OF THIS EXHIBIT WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE 

COMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES 

EXCHANGE ACT OF 1934; [***] DENOTES OMISSIONS.

 

EXHIBIT F

[***]

 

  

- 18 -

  

 

EXHIBIT F CONTINUED

[***]

 

  

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PORTIONS OF THIS SCHEDULE WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF 

THE COMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE 

SECURITIES EXCHANGE ACT OF 1934; [***] DENOTES OMISSIONS.

 

Schedule 1 – Client Application Guidelines

[***]

 

  

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PORTIONS OF THIS APPENDIX WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE 

COMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES 

EXCHANGE ACT OF 1934; [***] DENOTES OMISSIONS.

 

APPENDIX A

[***]

 

  

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PORTIONS OF THIS APPENDIX WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE 

COMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES 

EXCHANGE ACT OF 1934; [***] DENOTES OMISSIONS.

 

Appendix B

[***]

 

  

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PORTIONS OF THIS APPENDIX WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE 

COMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES 

EXCHANGE ACT OF 1934; [***] DENOTES OMISSIONS.

 

Appendix C

[***]

 

  

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PORTIONS OF THIS APPENDIX WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE 

COMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES 

EXCHANGE ACT OF 1934; [***] DENOTES OMISSIONS.

 

Appendix D-1

[***]

 

  

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Appendix D-2

[***]

 

  

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PORTIONS OF THIS APPENDIX WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE 

COMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE 

SECURITIES EXCHANGE ACT OF 1934; [***] DENOTES OMISSIONS.

 

Appendix E

[***]

 

  

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Appendix E (continued)

[***]

 

  

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PORTIONS OF THIS APPENDIX WERE OMITTED AND HAVE BEEN FILED SEPARATELY WITH THE SECRETARY OF THE 

COMISSION PURSUANT TO AN APPLICATION FOR CONFIDENTIAL TREATMENT UNDER RULE 24b-2 OF THE SECURITIES

 EXCHANGE ACT OF 1934; [***] DENOTES OMISSIONS.

 

Appendix F

[***]

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