Document:

QuickLinks
 -- Click here to rapidly navigate through this document
  

 
 

EXHIBIT 10.81    
  

 
 

EMPLOYMENT AGREEMENT    
  

        THIS AGREEMENT is made effective as of January 1, 2003, between VCampus Corporation, a corporation organized and existing under the laws of the State of
Delaware ("VCAMPUS") and Narasimhan P. Kannan ("Kannan"). 

        WHEREAS,
VCAMPUS desires to employ Kannan and Kannan desires to accept such employment on the terms and conditions hereinafter set forth; and 

        WHEREAS,
the parties hereby acknowledge that the goodwill, continued patronage, names, addresses and specific business requirements of VCAMPUS' clients and customers, and the designs,
procedures, systems, strategies, business methods and know-how of VCAMPUS, having been acquired through VCAMPUS' efforts and the expenditure of considerable time and money, are among the
principal assets of VCAMPUS; and 

        WHEREAS,
the parties hereby acknowledge that as a result of the position(s) in which Kannan will be employed, Kannan will develop special skills and knowledge peculiar to VCAMPUS'
business, whereby he will become, through his employment with VCAMPUS, acquainted with the identities of the clients and customers of VCAMPUS, and will acquire access to the techniques of VCAMPUS in
carrying on its business, as well as other confidential and proprietary information; and 

        WHEREAS,
the parties hereto acknowledge that the Covenants set forth in Section 8 of this Agreement are necessary for the reasonable and proper protection of VCAMPUS' confidential
and proprietary information (as defined herein), customer relationships, and the goodwill of VCAMPUS' business, and that such Covenants constitute a material portion of the consideration for Kannan's
employment hereunder. 

        NOW,
THEREFORE, in consideration of the premises and mutual promises and covenants contained herein, and for other good and valuable consideration, the receipt and legal sufficiency of
which are hereby acknowledged, the parties agree as follows: 

        1.    Term.    VCAMPUS agrees to employ Kannan, and Kannan agrees to be employed, as President and Chief Executive
Officer of VCAMPUS, for a term of six (6) months commencing January 1, 2003 and ending June 30, 2003 (the "Initial Term"), unless such employment is sooner terminated as provided
herein. The parties intend for this employment agreement to serve as a bridge to a potentially more long-term employment arrangement to be negotiated between the parties. 

        2.    Renewal Terms.    Unless either party provides written notice to the other of its/his intention not to renew
this Agreement at least fifteen (15) days prior to the expiration of the Initial Term (or then current renewal term hereof), this Agreement shall be automatically renewed for consecutive
additional one (1)-month renewal terms, subject to the termination provisions set forth in Section 6 hereof. 

        3.    Compensation.    

        (a)    Base Salary.    In consideration of Kannan's services as President and Chief Executive Officer (or any other
capacity in which Kannan may be employed by VCAMPUS), VCAMPUS shall pay Kannan a minimum annual base salary of Two Hundred Eighty Thousand Dollars ($280,000.00) per annum (equivalent to $23,333 per
month), payable in equal monthly installments in accordance with VCAMPUS' normal payroll practices. Provided, however, VCAMPUS shall be entitled to retain from any payments due to Kannan hereunder, on
a net (after tax) basis, up to Three Thousand Dollars ($3,000.00) per month, to be applied to the repayment of any and all loans owed by Kannan to VCAMPUS. Both parties acknowledge and agree that
nothing in the 

1

 

foregoing provision of this Section 3(a) in any way modifies the terms of the outstanding loan from Kannan to VCAMPUS and that the terms of such loan remain in full force and effect. 

        (b)    Stock Options.    Subject to approval by the VCAMPUS Board of Directors, VCAMPUS agrees to grant Kannan a
performance-based option to purchase 35,000 shares of VCAMPUS' common stock pursuant to the form of Performance Stock Option Agreement attached hereto as Exhibit A, with such options vesting as
provided therein. 

        (c)    Performance Bonuses.    Kannan shall be eligible to receive performance bonuses, as determined in the sole
discretion of the Board of Directors of VCAMPUS, based upon factors determined appropriate by the Board of Directors, which may include, for example, attainment by VCAMPUS of breakeven operations and
profitability during the term of this Agreement and any renewals thereof. 

        4.    Employee Benefits, Vacation.    During the term of this Agreement, Kannan shall be eligible to receive and/or
participate in all regular employee benefits that are offered by VCAMPUS to its executive employees, including, without limitation, major medical, dental, 401(k) Retirement Plan and
long-and short-term disability insurance coverage for Kannan. Except for the specific employee benefits set forth above, VCAMPUS shall have no obligation to provide Kannan with
life insurance, car allowance, memberships or any other similar executive benefits. During the initial term or any renewal terms hereof, Kannan shall be entitled to receive up to two hundred
(200) hours of paid vacation per calendar year (or a pro rata portion thereof based on the length of the then current term). Kannan may not carry over any hours of accrued but unused vacation
from one calendar year or six-month term to the next. Except as may be required by law, VCAMPUS will not provide Kannan with monetary compensation for such accrued but unused vacation
time. 

        5.    Reimbursement of Expenses.    Kannan is authorized to incur reasonable expenses in connection with the business
of VCAMPUS including expenses for travel and similar items. VCAMPUS will reimburse Kannan for all such reasonable and management-approved expenses upon itemized account of expenditures. In particular,
Kannan will be entitled to receive reimbursement for mobile phone expenses related to VCAMPUS matters of up to $175.00 per month. 

        6.    Termination.    

        (a)    Termination Without Cause.    Either VCAMPUS or Kannan may terminate this Agreement without cause with thirty
(30) days written notice to the other party. Upon termination without cause, Kannan shall receive accrued but unpaid base salary for days worked prior to termination. If terminated without
cause by VCAMPUS, Kannan will also be entitled to receive the remaining balance, if any, of his unpaid base salary for the remainder of his employment term, in accordance with VCAMPUS' normal payroll
practices. In addition, upon a termination of Kannan by VCAMPUS without cause during the term of this agreement, VCAMPUS further agrees to pay the premiums in connection with Kannan's continued
participation in the VCAMPUS' group health plan pursuant to COBRA, subject to such plan's terms, conditions and restrictions. VCAMPUS' obligation to pay the base salary and benefits described herein
is conditioned upon Kannan's execution of a full Release of all claims that Kannan may have against VCAMPUS in a form satisfactory to VCAMPUS. 

        (b)    Termination for "Cause".    VCAMPUS may discharge Kannan immediately for "Cause," which shall be limited to: 

          (i)  Kannan's
gross negligence or willful misconduct that results in material harm to the financial condition, business, assets, or prospects of VCAMPUS; 

        (ii)  the
conviction of, or the entering of a plea of no contest by, Kannan for a felony or crime involving moral turpitude; 

2

 

        (iii)  the
Board of Directors determines that Kannan has engaged in theft, fraud, misappropriation or embezzlement in connection with his services for the Company; or 

        (iv)  the
Board of Directors determines that Kannan has repeatedly failed to carry out the reasonable directions of the Board of Directors of the Company, which failure
cannot be cured or shall not have been cured within thirty (30) days after receipt by Kannan of written notice specifying in reasonable detail the failure to so carry out such directions. 

        (c)    Termination due to Death or Disability.    In the event of Kannan's death or "disability" (as defined below),
this Agreement shall terminate immediately, and VCAMPUS shall pay to Kannan's spouse or beneficiary Kannan's accrued unpaid base salary. For purposes of this Agreement, "disability" shall mean the
event of Kannan's physical or mental inability (as verified by a physician selected by VCAMPUS) to perform his essential functions hereunder, with or without reasonable accommodation, for a period of
at least sixty (60) consecutive days during the Agreement. 

        7.    Severance Benefit.    Except for the payments described in Section 6(a) above, no severance benefit shall
be payable to Kannan in connection with any termination of this Agreement. 

        8.    Restrictive Covenants.    The following restrictions shall apply during Kannan's employment and for the
indicated periods of time following termination or expiration of this Agreement. 

        (a)    Non-solicitation of Customers.    During Kannan's employment with VCAMPUS, and for the one
(1) year period of time following termination or expiration of this Agreement for any reason whatsoever, Kannan agrees not to solicit business with any client or customer of VCAMPUS (which did
business with VCAMPUS during Kannan's employment), whether or not VCAMPUS is doing work for such client or customer as of the date of termination of Kannan's employment. 

        (b)    Nonsolicitation of Employees.    During Kannan's employment with VCAMPUS, and for the one (1) year
period following termination or expiration of this Agreement for any reason whatsoever, Kannan further agrees not to initiate contact with, solicit, entice, or attempt to entice in any form, fashion
or manner any employee of VCAMPUS for the purpose of inducing that employee to terminate his/her employment with VCAMPUS. 

        (c)    Non-disclosure.    During Kannan's employment and for a period of one (1) year after
termination or expiration of this Agreement for any reason whatsoever, Kannan agrees not to disclose, or to knowingly allow any other employee to disclose, to any other person or business entity, or
use for personal profit or gain, any confidential or proprietary information of VCAMPUS, regardless of whether the same shall be or may have been originated, discovered or invented by Kannan or by
Kannan in conjunction with others. For purposes of this Agreement, the term "confidential or proprietary information" shall include, without limitation: the names, addresses and telephone numbers of
past, present and prospective clients or customers of VCAMPUS, as well as products, designs, business plans, proposed business development, marketing strategies, customers requirements, contractual
provisions, employee capabilities, proposed marketing initiatives, pricing methods, company earnings, computer software and reporting systems; and the procedures, systems and business methods of
VCAMPUS. 

        9.    Remedies for Breach.    Kannan hereby acknowledges and agrees that a violation of any of the covenants set forth
in Section 8 (the "Covenants") would result in immediate and irreparable harm to VCAMPUS, and that VCAMPUS' remedies at law, including, without limitation, the award of money damages, would be
inadequate relief to VCAMPUS for any such violation. Therefore, any violation or threatened violation by Kannan of the Covenants shall give VCAMPUS the right to enforce such Covenants through specific
performance, temporary restraining order, preliminary or permanent 

3

 

injunction, and other equitable relief. Such remedies shall be cumulative and in addition to any other remedies VCAMPUS may have, at law or in equity. 

        10.    No Conflict.    Kannan represents and warrants to VCAMPUS that to his knowledge, neither the execution and
delivery of this Agreement, nor the performance of his duties hereunder violates or will violate the provisions of any other agreement to which he is a party or by which he is bound. Kannan agrees to
hold harmless and indemnify VCAMPUS in the event that of any claims against VCAMPUS arising out of such breach. 

        11.    Return of VCAMPUS Property.    Upon the termination of Kannan's employment with VCAMPUS for any reason, Kannan
shall leave with or return to VCAMPUS all personal property belonging to VCAMPUS ("VCAMPUS Property") that is in Kannan's possession or control as of the date of such termination of employment,
including, without limitation, all records, papers, drawings, notebooks, specifications, marketing materials, software, reports, proposals, equipment, or any other device, document or possession,
however obtained, whether or not such VCAMPUS Property contains confidential or proprietary information of VCAMPUS as described in Section 11(c) hereof. 

        12.    Survival.    The provisions of Sections 8, 9, 10, and 11 hereof shall survive the termination of this
Agreement, regardless of the manner or cause of such termination. 

        13.    Effect of Agreement.    This Agreement sets forth the final and complete Agreement of the parties. It shall not
be assigned by Kannan and may not be modified except by way of a writing executed by both
parties. All the terms and provisions of this Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their successors and assigns. 

        14.    Notices.    Any Notice, demand, or other communication required or permitted hereunder shall be deemed properly
given when placed in writing and deposited in the United States Postal Service, by registered mail, postage prepaid, overnight mail or personal delivery, addressed as follows: 

If
to Kannan: 

Narasimhan
P. Kannan

(at his address as shown on the records of VCAMPUS)

If
to VCAMPUS: 

VCampus
Corporation

1850 Centennial Park Drive, Suite 200

Reston, VA 20191

Attn: Chief Financial Officer 

With
a copy to: 

Wyrick
Robbins Yates & Ponton LLP

Suite 300

4101 Lake Boone Trail

Raleigh, NC 27607

Attn: Kevin A. Prakke 

        15.    Governing Law.    The provisions of this Agreement and any disputes arising hereunder shall be governed by and
construed in accordance with the laws of the State of Virginia. 

4

 

        IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed and their seals affixed hereto as of the day and year first above written. 

	 	 	VCAMPUS Corporation
	

 	
 	

By:	

 	
 	

 
	Corporate Seal	 	Name:	 	 	 
	 	 	Title:	 	 	 
	

Attest:	
 	

 	

 	
 	

 
	Secretary	 	 	 	 	 
	 	 	 	 	 	(SEAL)
	 	 	 	
 Narasimhan P. Kannan	 	 

5

QuickLinks

EXHIBIT 10.81

EMPLOYMENT AGREEMENTExhibit 10.45

 

EXECUTION                                                                                                                                 
CONFIDENTIAL

OVERTURE SEARCH SERVICES AGREEMENT

 

      This Overture Search Services Agreement (the “Agreement”) is
effective as of May 1, 2002 (“the “Effective Date”) and entered into by and
between Overture Services, Inc. (“Overture”), a Delaware corporation with
offices at 74 North Pasadena Avenue, 3d Floor, Pasadena, CA 91103, and Yahoo!
Inc. (“Yahoo”), a Delaware corporation with offices at 701 First Avenue,
Sunnyvale, CA 94089, and hereby supercedes in its entirety the Overture Search
Services Agreement entered into as of November 13, 2001 by and between Overture
and Yahoo, as amended by the letter agreement regarding the treatment of
[*]-related search queries entered into as of December 14, 2001, the letter
agreement regarding the treatment of search queries submitted by AU/NZ Users
entered into as of April 2, 2002 and the letter agreement regarding the
treatment of “Search in other Search Engines” links entered into as of April 2,
2002, and as clarified by the clarifying letter regarding the parties’ intent
with respect to Impressions dated February 14, 2002 (collectively, the “Prior
Agreement”).

 

RECITALS

 

      WHEREAS, Overture has developed certain technology and
functionality for matching particular keyword requests with a set of search
results, for providing the results of that match via the Internet and then enabling
users to follow a link to a designated page for advertisers which comprise the
results of such match; and

 

      WHEREAS, Yahoo is a global Internet media company that offers
a branded network of media, communications and commerce services to more than
220 million users worldwide; and

 

      WHEREAS, Overture and Yahoo desire to enter into a strategic
relationship whereby Overture will provide Yahoo with search results in
response to search queries conducted through Yahoo’s principal directory to the
World Wide Web, and the parties will share revenue generated from these search
results, as further described in this Agreement.

 

      NOW, THEREFORE, in consideration of the mutual promises and
conditions contained herein, and for good and valuable consideration, the
parties agree as follows:

 

AGREEMENT

 

1.    Definitions. The following capitalized terms have the meanings
set forth

       below.

 

      1.1   Actual Click
means any click on an Overture Result by a U.S. User

             derived from an Impression, including but not limited
to all

             [*] Clicks, as measured by Overture.

 

      1.2   Above the Fold
means placement within the visible portion of a page,

             when viewed via Microsoft’s principal “Internet
Explorer” browser

             product (U.S. versions 4.0 and higher) under the
default Internet

             Explorer browser settings in a maximized browser
window on a

             computer screen at a resolution of 800 pixels wide by
600 pixels

             high, such that the user need not scroll down or to
the right or to

             the left in order to see an item so placed.

 

      1.3   Advertiser means
any third party or an agent thereof (e.g., an

             advertising agency), excluding [*] and any agents
thereof, who has

             entered into a contractual relationship with Overture
that obligates

             the third party to pay Overture (whether cost per
click, cost per

             action, cost per impression, paid inclusion,
pay-for-placement or

            other means of cash compensation) every time a user
clicks on a link

             to that third party’s web site.

 

      1.4   Affiliate means
any entity worldwide, including but not limited to

             corporations, partnerships, joint ventures and limited
liability

             companies, in
which another party directly or indirectly

 

* Certain information on this page
has been omitted and filed separately with

  
the Commission. Confidential treatment has been requested with respect
to the

  
omitted portions.

 

 

 

 

EXECUTION                                                           CONFIDENTIAL

 

            holds at least a majority ownership, equity, or
financial interest.

 

      1.5   Bidded Click
means an Actual Click other than a [*] Click, as

            measured by Overture.

 

      1.6   Click-Through
Rate or CTR means (i) when calculating Overture’s CTR,

            the percentage of all Impressions on which Overture
Results are

            displayed that receive a Bidded Click and (ii) when
calculating

            Yahoo’s CTR, the percentage of all impressions of Yahoo
Search

            Results Pages on which Yahoo Results are displayed that
receive a

            click, excluding all clicks that are determined by
Yahoo to be [*]

            (e.g., a user repeatedly clicking on a particular Yahoo
Result

            within a finite period of time, or an activity by a
bot, macro

            program, Internet agent or any other automatic means),
which Yahoo

            shall calculate in a substantially consistent manner
across the

            Yahoo Network.

 

      1.7   Confidential
Information has the meaning set forth in Section 12.1

            below.

 

      1.8   Effective Date
has the meaning set forth in the preamble above.

 

      1.9   Estimated Clicks
means the following amounts during the Quarters

            shown below (Q1 means the Quarter beginning on May 1,
2002):

 

 

          
—------------------------------------------------------------

           Q1                                         [*] Bidded Clicks

  
        —------------------------------------------------------------

           Q2                                         [*] Bidded Clicks

          
—------------------------------------------------------------

           Q3                                         [*] Bidded Clicks

          
—------------------------------------------------------------

           Q4                                         [*] Bidded Clicks

          
—------------------------------------------------------------

           Q5                                         [*]
Bidded Clicks

          
—------------------------------------------------------------

           Q6                                         [*] Bidded Clicks

           —------------------------------------------------------------

           Q7                                         [*] Bidded Clicks

          
—------------------------------------------------------------

           Q8                                         [*] Bidded Clicks

           —------------------------------------------------------------

           Q9                                         [*] Bidded Clicks

          
—------------------------------------------------------------

           Q10                                       [*] Bidded Clicks

          
—------------------------------------------------------------

           Q11                                       [*] Bidded Clicks

          
—------------------------------------------------------------

           Q12                                       [*] Bidded
Clicks

          
—------------------------------------------------------------

           Each Quarter of any Extension

           Term                                     [*] Bidded Clicks

           —------------------------------------------------------------

 

 

      1.10  Estimated Yahoo
Payments means the following amounts during the

            Quarters shown below (Q1 means the Quarter beginning on
May 1,

            2002):

 

 

 

           —------------------------------------------------------------

           QUARTER                            ESTIMATED YAHOO PAYMENT

          
—------------------------------------------------------------

 

           Q1                                 $[*]

           —------------------------------------------------------------

           Q2                                 $[*]

          
—------------------------------------------------------------

           Q3                                 $[*]

           —------------------------------------------------------------

           Q4                                 $[*]

          
—------------------------------------------------------------

           Q5                                 $[*]

           —------------------------------------------------------------

           Q6                                 $[*]

          
—------------------------------------------------------------

           Q7                                 $[*]

           —------------------------------------------------------------

           Q8                                 $[*]

          
—------------------------------------------------------------

           Q9                                 $[*]

           —------------------------------------------------------------

           Q10                               $[*]

          
—------------------------------------------------------------

           Q11                               $[*]

           —------------------------------------------------------------

           Q12                               $[*]

          
—------------------------------------------------------------

           Each Quarter of any Extension

           Term                             $[*]

           —------------------------------------------------------------

 

 

 

      1.11  Equivalent
Search Product means a search listings product or

            service, including but not

 

* Certain information on this page
has been omitted and filed separately with

 
the Commission. Confidential treatment has been requested with respect
to the

 
omitted portions.

 

 

 

2

 

 

EXECUTION                                                          
CONFIDENTIAL

 

            limited to any updates, upgrades and enhancements made
by Yahoo or a

            Yahoo Affiliate thereto, that (a) [*] equivalent to a
search

            listings product or service operated by Overture at any
time during

            the Term to supply Overture Results or other
Overture-supplied

            search results under this Agreement; (b) is developed
[*] Yahoo or a

            Yahoo Affiliate by [*]; and (c) is operated and used by
Yahoo or a

            Yahoo Affiliate.

 

      1.12  Excluded Terms
means those terms set forth in Exhibit G, as updated

            from time to time [*] in writing pursuant to Section
4.5 below,

            for which Overture is precluded from delivering
Overture Results to

            Yahoo.

 

      1.13  Extension Term
means either of the two extension periods set forth

            in Section 10 below.

 

      1.14  Featured
Sections means the rectangular graphical areas on the Yahoo

            Search Results Pages in which Overture Results are
displayed (and,

            according to Section 4.4, in which the Yahoo Result
might be

  
         displayed), which
comprises the Featured Top Section and the

            Featured Bottom Section, as further described in
Section 5.2 below.

 

      1.15  [*] Clicks means
any Actual Click that is determined by Overture’s

            “click protection system” to be [*] (e.g., a user
repeatedly

            clicking on a particular Overture Result within a
finite period of

            time, or an activity by a bot, macro program, Internet
agent or any

            other automatic means), which “click protection system”
shall

            calculate [*] Clicks in a substantially consistent
manner across all

            implementations of Overture’s search results and,
subject to

            reasonable modifications made by Overture, throughout
the Term.

 

      1.16  Gross Revenue means amounts earned by
Overture from Bidded Clicks,

            less (i) [*]% to account for bad debt and credit card
processing

            fees; and (ii) any refunds Overture pays to its
Advertisers derived

            from [*] Clicks. For purposes of clarity, Overture does
not

            recognize amounts for [*] Clicks.

 

      1.17  Guaranteed Fixed
Payment means those payments set forth in Section

            8.1 below.

 

      1.18  Guaranteed
Impressions means the following amounts during the

            Quarters set forth below:

 

 

 

           —------------------------------------------------------

           Q1                                      [*] Impressions

           —------------------------------------------------------

           Q2                                      [*] Impressions

           —------------------------------------------------------

           Q3                                      [*] Impressions

           —------------------------------------------------------

           Q4                                      [*] Impressions

           —------------------------------------------------------

           Q5                                      [*] Impressions

           —------------------------------------------------------

           Q6                                      [*] Impressions

           —------------------------------------------------------

           Q7                                      [*] Impressions

           —------------------------------------------------------

           Q8                                      [*] Impressions

           —------------------------------------------------------

           Q9                                      [*] Impressions

           —------------------------------------------------------

           Q10                                    [*] Impressions

           —------------------------------------------------------

           Q11                                    [*] Impressions

   
       —------------------------------------------------------

           Q12                                    [*] Impressions

           —------------------------------------------------------

           Each Quarter of any Extension 

           Term                                  [*] Impressions

           —------------------------------------------------------

 

 

      1.19  Impression means
the display by Yahoo of each and every Yahoo Search

            Results Page in response to a Yahoo Search Query, as
measured by

            Yahoo, except for those Yahoo Results Pages (a) for
which Overture

            does not deliver Overture Results as a result of (i) a
Yahoo

            Technical Lapse (as defined in the Service Level
Agreement); (ii)

            noncompliance by
Yahoo with the Service Level Agreement attached as

            Exhibit A (e.g., where Yahoo delivers too many Yahoo
Search Queries

            per second); or (iii) the suppression or removal of
Overture

 

 

* 
Certain information on this page has been omitted and filed separately
with

  
the Commission. Confidential treatment has been requested with respect

  
to the omitted portions.

 

 

3

 

 

EXECUTION                                                           CONFIDENTIAL

 

            Results according to Sections 4.2 or 4.5 below; (b)
displayed in

            response to Yahoo Search Queries submitted from “next”
pages in

            excess of [*]% of the total Yahoo Search Queries for the
applicable

            Quarter; (c) displayed in response to test queries
submitted by

            Yahoo in accordance with the Service Level Agreement
(e.g., Yahoo

            pinging Overture servers to ascertain performance),
which queries

            Yahoo will
identify as such in accordance with Section 8.4(f) below;

            or (d) failure by Overture to deliver Overture Results
due to a

            force majeure event as described in Section 16.7 below.
For clarity,

            the exclusions set forth in subsections (a)-(d) above
set forth the

            [*] which the display by Yahoo of a Yahoo Search
Results Page in

            response to a Yahoo Search Query will not constitute an
Impression

            under this Agreement (e.g., all Search Results Pages on
which Yahoo

            displays no Overture Results in accordance with a “no
results

            delivered” response from Overture will constitute
Impressions under

            this Agreement).

 

      1.20  Initial Term
means the period commencing on the Effective Date and

            continuing until April 30, 2005.

 

      1.21  [*]

 

      1.22  Licensed
Materials means the Overture API, the Overture Results and,

            if any, the Overture Marks provided by Overture to
Yahoo in

 
          accordance with this
Agreement.

 

      1.23  Main Body Search
Results means all search results displayed in the

            Non-Featured Sections of the Yahoo Search Results
Pages.

 

      1.24  Measurement
Period means the period from the first day of the first

            Quarter in which the [*] is less than the [*] until the
last day of

            the first Quarter in which the [*] is less than the
[*].

 

      1.25  Modeled Metrics
means the following amounts during the Quarters

            shown below (Q1 means the Quarter beginning on May 1,
2002):

 

 

           —----------------------------------------

           QUARTER                   [*]

           —----------------------------------------

 

           Q1                                 [*]

           —----------------------------------------

           Q2                                 [*]

           —----------------------------------------

           Q3                                 [*]

           —----------------------------------------

           Q4                                 [*]

           —----------------------------------------

           Q5                                 [*]

           —----------------------------------------

           Q6                                 [*]

           —----------------------------------------

           Q7                                 [*]

           —----------------------------------------

           Q8                                 [*]

           —----------------------------------------

           Q9                                 [*]

           —----------------------------------------

           Q10                               [*]

           —----------------------------------------

           Q11                               [*]

           —----------------------------------------

           Q12                               [*]

           —----------------------------------------

           Each Quarter of any Extension

           Term                             [*]

           —----------------------------------------

 

 

      1.26  Non-Featured
Section means the entire portion of each Yahoo Search

            Results Page, excluding the Featured Sections.

 

      1.27  Overture
Affiliate means any entity worldwide, including but not

            limited to corporations,

 

 

* Certain information on this page
has been omitted and filed separately with

 
the Commission. Confidential treatment has been requested with respect
to the

 
omitted portions.

 

 

4

 

EXECUTION                                                          
CONFIDENTIAL

 

            partnerships, joint ventures and limited liability
companies, in

            which Overture directly or indirectly holds at least a
majority

            ownership, equity, or financial interest.

 

      1.28  Overture
Affiliate IP means any patents that are owned or controlled

            by an Overture Affiliate at any time during the
applicable term of

            any of the licenses granted in Section 2.5 below.
Overture Affiliate

            IP shall not mean patent claims found not to be valid
in a final

            determination by a court of competent jurisdiction.

 

      1.29  Overture API
means any proprietary XML application programming

            interfaces of Overture, and any successors thereto or
replacements

            thereof, that enable the exchange of Yahoo Search
Queries and

            Overture Results between the parties in accordance with
this

            Agreement.

 

      1.30  Overture
Disqualified Entity means those entities listed in Exhibit

            J, which list will [*] and may be updated by Overture
according to

            Section 2.5(d) below, with which Overture [*].

 

      1.31  Overture
Licensed IP means any patents that are owned or controlled

            by Overture at any time during the applicable term of
any of the

            licenses granted in Section 2.5 below. Overture
Licensed IP shall

            not mean patent claims found not to be valid in a final

            determination by a court of competent jurisdiction.

 

      1.32  Overture Marks
means any or all of the following, as provided by

            Overture and in which Overture has prior rights: (a)
the mark

            “Overture” in typed form and stylized formats; (b) a
circular

            center, surrounded by three concentric circular rings
(the “Overture

            Logo,” as modified from time to time by Overture); (c)
any words or

            phrases in which Overture has intellectual property
rights; (d) any

            word, symbol or device, or any combination thereof,
used or intended

            to be used by Overture to identify, to indicate the
source of origin

            or to distinguish Overture’s products or services from
the products

            or services of others; and (e) any updates to the
foregoing.

 

      1.33  Overture Reports
means all information and data that falls within

            the categories set forth in Exhibit F, which
information and data

            Overture will
provide to Yahoo according to Section 8.4(b).

 

      1.34  Overture Results
means the search results provided by Overture in

            response to a Yahoo Search Query under this Agreement,
which search

            results (a) include only those search results provided
by

            Advertisers; (b) do not include search results that are
not capable

            of generating Gross Revenue (e.g., search results
included as a

            bonus or a charitable donation); and (c) contain a title
and

            description for display by Yahoo according to Section
4.3(a) below.

 

      1.35  Overture Site
means the web site operated by or on behalf of

            Overture, which is dedicated to the display by Overture
of paid

            search results and currently located at
http://www.overture.com.

 

      1.36  Paid Advertising
means any form of on-line advertising or promotion

            for which Yahoo receives compensation in the form of
cash or barter

            from either the party being promoted or a third party
acting on

            behalf of the promoted party.

 

      1.37  Paid Inclusion
means that, in exchange for a cash payment from a

            third party, a search engine will guarantee to index
(but not

            necessarily to display) pages from that third party’s
web site.

 

      1.38  Price Per Click
or PPC means the average price per click that

            Overture earned from its Advertisers on the Yahoo
Search Results

            Pages during the Quarter.

 

 

* Certain information on this page
has been omitted and filed separately with

 
the Commission. Confidential treatment has been requested with respect
to the

 
omitted portions.

 

 

 

5

 

 

EXECUTION                                                           CONFIDENTIAL

 

      1.39  Quarter means
the three calendar month periods beginning May,

            August, November and February of each year of the Term.

 

      1.40  Redesign means
any change to any element of a Yahoo Search Results

            Page implemented by Yahoo.

 

      1.41  Required Number
of Overture Results means, with respect to the

            Featured Top Section, three Overture Results (where
such number is

            subject to reduction under Sections 4.4 and 4.5) and,
with respect

            to the Featured Bottom Section, two Overture Results.
The numbers

            for both the Featured Top Sections and the Featured
Bottom Sections

            are subject to increase under Section 4.3(b).

 

      1.42  Restricted Search Results means any [*]
search results that are (a)

            [*] the Overture Results or to the Main Body Search
Results (e.g.,

            [*]); (b) displayed by Yahoo on [*] in response to a
user’s [*]

            search query [*] comprised of a keyword or phrase,
which search

            query is submitted [*] for the provision of search
results; and (c)

            assembled on the basis of a [*] administered process in
which

            advertisers pay to [*] their search results for a
particular keyword

            or phrase, where payment can take the form of cost per
click, cost

            per action, cost per impression, Paid Inclusion,
pay-for-placement

            or any other means of cash compensation paid by the
advertiser [*].

 

      1.43  Revenue Share
Payment has the meaning set forth in Section 8.2

            below.

 

      1.44  Search Results
Characteristics means all aspects of the Yahoo

            Results, Overture Results and Main Body Search Results,
including

            but not limited to, left and right margins, pictures or
images

            associated with the search results, text size, color,
font, heading,

            shading/background, spacing, blank areas, length,
existence of URL,

            and all other aspects of “look and feel.”

 

      1.45  Term means the
Initial Term and, if applicable, each Extension Term

            until the expiration thereof, unless terminated as set
forth herein.

 

      1.46  Top Link
Position means the first search result position in the

            Featured Top Section, wherein Yahoo displays either a
Yahoo Result

            or an Overture Result in accordance herewith.

 

      1.47  U.S. User means
a human user (i.e., not a `bot, metaspider, macro

            program, Internet agent or any other automated means)
who, at the

            time of conducting a Yahoo Search Query, is accessing
the Internet

            from an Internet Protocol address within the United
States or

            Canada, as measured by Yahoo.

 

 
    1.48  Yahoo Affiliate means any entity worldwide,
including but not

            limited to corporations, partnerships, joint ventures
and limited

            liability companies, in which Yahoo directly or
indirectly holds at

            least a majority ownership, equity, or financial
interest.

 

      1.49  Yahoo Directory
means the browse tree (i.e., the taxonomy of

            categories through which users navigate by clicking on
category

            links) within Yahoo’s principal, U.S.-targeted directory
to the

            World Wide Web, currently located at
http://www.yahoo.com, which

            browse tree currently resolves to dir.yahoo.com.

 

* Certain information on this page
has been omitted and filed separately with

 
the Commission. Confidential treatment has been requested with respect
to the

 
omitted portions.

 

 

6

 

EXECUTION                                                          
CONFIDENTIAL

 

      1.50  Yahoo Foreign
Properties means Yahoo’s or a Yahoo Affiliate’s

            foreign-targeted network of media, communications and
commerce

            properties, including but not limited to those
properties that are

            branded in whole or in part by or on behalf of Yahoo or
a Yahoo

            Affiliate and presented in the local languages (e.g.,
Yahoo!

            Germany, currently located at http://www.yahoo.de) and
any other

            foreign-targeted products or services that are
developed and branded

            in whole or in part by or on behalf of Yahoo or a Yahoo
Affiliate.

 

      1.51  Yahoo Foreign
Vertical means any foreign-targeted, category-specific

            property within the Yahoo Foreign Properties that is
owned or

            operated by or on behalf of Yahoo or a Yahoo Affiliate,
including

            but not limited to those presented in the local
language (e.g.,

            Yahoo! UK Shopping, currently located at

            http://shopping.yahoo.co.uk, and Yahoo! Italia Finance,
currently

            located at
http://finance.yahoo.it).

 

      1.52  Yahoo Marks
means trademarks, service marks or graphical brand

            features of Yahoo in which Yahoo has prior rights.

 

      1.53  Yahoo Network
means Yahoo’s U.S. targeted network of media,

            communications
and commerce properties, including but not limited to

            Yahoo Search, the Yahoo Verticals and any other U.S.
targeted

            products or services that are developed and branded in
whole or in

            part by or on behalf of Yahoo or a U.S. based Yahoo
Affiliate;

            provided that any entity or property acquired,
developed, controlled

            by or branded in whole or in part by or on behalf of
Yahoo or a U.S.

            based Yahoo Affiliate after the Effective Date with
whom Overture

            has a then-existing contractual relationship will
continue to

            perform under the existing contract with Overture (to
the extent

            that such performance is within the reasonable control
of Yahoo)

            and, upon request by Overture, Yahoo shall not send any
Yahoo Search

            Queries from any such entity in the event that no
contractual

            relationship exists between the entity and Overture at
the time of

            the date of acquisition, development or branding in
whole or in

            party by or on behalf of Yahoo.

 

      1.54  [*].

 

      1.55  Yahoo Results
means search results sold, bartered or bonused by

            Yahoo that are displayed in the Top Link Position
solely on the

            first Yahoo Search Results Pages displayed in response
to a Yahoo

            Search Query (i.e., no “next” Search Results Pages),
unless Overture

            delivers the same Overture Results for any Yahoo Search
Query

            according to
Section 3.2 (in which case Yahoo will be entitled to

            display the same Yahoo Result on subsequent Yahoo
Search Results

            Pages).

 

      1.56  Yahoo Search
means the search functionality within Yahoo’s

            principal, U.S.-targeted directory to the World Wide
Web, currently

            located at http://www.yahoo.com, which search
functionality

            currently resolves either to search.yahoo.com or to

            google.yahoo.com.

 

      1.57  Yahoo Search Box
means a graphical area substantially similar in

            form to the example set forth in Exhibit B that appears
on web pages

            across the Yahoo Network, including but not limited to
the front

            page of Yahoo Search and all Yahoo Search Results
Pages, through

            which a user can only submit a search query that is [*]
a keyword or

            phrase that resolves to Yahoo Search. Additionally,
searches

            initiated by a user clicking on the “next” button on a
Yahoo Search

            Results Page and searches conducted after Yahoo
provides the user

            with the correction to a misspelled word (in which case
the user may

            click on the corrected spelling to connect to a Yahoo
Search Results

            Page) and
“Related Searches” (or similar functionality) that appear

            below the Featured Bottom Section as shown in Exhibit C
will be

            deemed as submitted through a Yahoo Search Box. For
clarity, search

            boxes that resolve to searchable directories other than
[*] or

            successor directories thereto (e.g., searches submitted
through any

            Yahoo Vertical, including but not limited to the search
box that

            resolves to the specialty directory within Yahoo’s

 

* Certain information on this page
has been omitted and filed separately with

 
the Commission. Confidential treatment has been requested with respect
to the

 
omitted portions.

 

7

 

 

EXECUTION                                                          
CONFIDENTIAL

 

            shopping-related property) are not Yahoo Search Boxes.

 

      1.58  Yahoo Search
Query means any search query comprised of a keyword or

            phrase and initiated through the Yahoo Search Box by a
U.S. User.

            For clarity, search queries initiated through means
other than the

            Yahoo Search Box (e.g., searches initiated through any
Yahoo

            Vertical, including but not limited to the search box
that resolves

            to the specialty directory within Yahoo’s
shopping-related property)

            will not be deemed a Yahoo Search Query.

 

      1.59  Yahoo Search
Query Reports means information and data regarding (a)

            the performance of the Overture Results, to the extent
provided by

            Yahoo and not collected by Overture directly, including
but not

            limited to Impressions, the association with Yahoo of
[*] and the

            total number of test queries performed by Yahoo; (b)
the performance

            of [*], which information and data falls within the
same categories

            as those listed in Exhibit F for which Overture must
provide

            information and data about the Overture Results (e.g.,
[*] average

            cost per click and [*]); and, if applicable, (c) any
statistics

            provided by Yahoo regarding the number and type of
Yahoo Search

            Queries and U.S. Users.

 

      1.60  Yahoo Search
Results Pages means those web pages within Yahoo

            Search, excluding the Jump Page, displayed in response
to Yahoo

            Search Queries.

 

      1.61  Yahoo Top Link
Coverage means the total number of Yahoo Search

            Queries that resulted in Yahoo’s display of a Yahoo
Result, divided

            by the total number of Yahoo Search Queries, as
calculated by Yahoo

            on a Quarterly basis.

 

      1.62  Yahoo Vertical
means any U.S. targeted, category-specific property

            within the Yahoo Network that is owned or operated by
or on behalf

            of Yahoo or a U.S. based Yahoo Affiliate, including but
not limited

            to Yahoo’s travel-related property (currently located
at

            http://travel.yahoo.com), finance-related property (currently

            located at http://finance.yahoo.com), shopping-related
property

            (currently located at http://shopping.yahoo.com) and
its

            music-related property (currently located at

            http://launch.yahoo.com).

 

2.    Licenses and Ownership.

 

      2.1   Licenses by
Overture; Overture API and Licensed Materials. Subject

            to the terms and conditions of this Agreement, Overture
grants to

            Yahoo a limited, non-exclusive, non-assignable,
non-transferable,

            non-sublicensable license during the Term to use the
Overture API

            solely for the purpose of enabling the exchange of
Yahoo Search

            Queries and Overture Results between the parties in
accordance with

            this Agreement and to reproduce, reformat and publicly
display the

            other Licensed Materials provided by Overture on Yahoo
Search

            Results Pages in accordance with this Agreement. Yahoo
shall not

            cache or store any Overture Results or any other
Licensed Material.

 

      2.2   Use of Reports.

 

            (a)   Use of
Overture Reports. Yahoo may use the Overture Reports

                  and information disclosed under Section 8.4 only
to verify

                  performance and payment under this Agreement, and
may

                  reproduce the Overture Reports only as necessary
to do so.

                  [*]. Within 10 days (unless such data is needed
for a

                  potential dispute between the parties) after
expiration or

                  termination of this Agreement, Yahoo shall delete
and destroy

                  (and certify such destruction to Overture) or
return to

                  Overture any and all copies of Overture Reports
in Yahoo’s

                  possession and all copies disclosed to Yahoo
Affiliates. Other

                  than the obligation to delete, destroy or return
information,

                  this Section 2.2(a) terminates when the Agreement
terminates

                  or expires.

 

  
         (b)   Use of Yahoo Search Query Reports. Overture
may use the Yahoo

                  Search Query Reports and

 

* Certain information on this page
has been omitted and filed separately with

 
the Commission. Confidential treatment has been requested with respect
to the

 
omitted portions.

 

 

8

 

EXECUTION                                                          
CONFIDENTIAL

 

                  information disclosed under Section 8.4 only to
verify

                 
performance under this Agreement or, as long as the Yahoo

                  Search Query Reports are not associated with
Yahoo or

                  otherwise identifiable as being derived from
Yahoo, for its

                  internal purposes (e.g., [*]) and may reproduce
Yahoo Search

                  Query Reports as necessary to do so. [*]. Within
10 days

                  (unless such data is needed for a potential
dispute between

                  the parties) after expiration or termination of
this

                  Agreement, Overture shall delete and destroy (and
certify such

                  destruction to Yahoo) or return to Yahoo any and
all copies of

                  reports provided by Yahoo pursuant to Section
8.4(c). Other

                  than the obligation to delete, destroy or return
information,

                  this Section 2.2(b) terminates when the Agreement
terminates

                  or expires.

 

      2.3   Use of
Information and Data.

 

            (a)   Information
and Data Collected by Yahoo. All information and

                  data provided to Yahoo by users on the Yahoo
Network or the

                  Yahoo Foreign Properties or otherwise collected
from users on

                  the Yahoo Network or the Yahoo Foreign Properties
by Yahoo

                  will be retained and owned exclusively by Yahoo.
Overture

                  acknowledges that certain of that information and
data may be

                  related to the performance of the Overture Results
(the

                  “Overture Performance Data”). [*]. This Section
survives

                  expiration or termination of the Agreement.

 

            (b)  
Information and Data Collected by Overture. All information

                  and data provided to Overture by users off the
Yahoo Network

                  and the Yahoo Foreign Properties or otherwise
collected from

                  users off the Yahoo Network and the Yahoo Foreign
Properties

                  by Overture will be retained and owned
exclusively by

                  Overture. Yahoo acknowledges that certain of that
information

                  and data may be related to Yahoo Search Queries
(the “Yahoo

                  Performance Data”). [*]. This Section survives
expiration or

                  termination of the Agreement.

 

      2.4   Ownership of
Marks.

 

            (a)   Overture
Marks. Yahoo will not contest the validity of, or

                  Overture’s ownership of, any of the Overture
Marks. During the

                  Term,
Yahoo will not, in any jurisdiction, adopt, use or

                  register, or apply for registration of, whether
as a corporate

                  name, trademark, service mark or other indication
of origin,

                  or as a domain name, any Overture Marks, or any
word, symbol

                  or device, or any combination confusingly similar
to any of

                  the Overture Marks.

 

            (b)   Yahoo
Marks. Overture will not contest the validity of, or

                  Yahoo’s ownership of, any of the Yahoo Marks.
During the Term,

                  Overture will not, in any jurisdiction, adopt,
use or

                  register, or apply for registration of, whether
as a corporate

                  name, trademark, service mark or other indication
of origin,

                  or as a domain name, any Yahoo Marks, or any
word, symbol or

                  device, or any combination confusingly similar to
any of the

                  Yahoo Marks.

 

      2.5   Overture Licensed
IP.

 

            (a)   License
Grant; Yahoo Results and Exclusive Results. In

                  consideration of the rights and benefits provided
hereunder

                  (including but not limited [*]),

 

* Certain information on this page
has been omitted and filed separately with

 
the Commission. Confidential treatment has been requested with respect
to the

 
omitted portions.

 

 

9

 

 

EXECUTION                                                           CONFIDENTIAL

 

                  and subject to the terms and conditions of this

                  Agreement, Overture hereby grants to Yahoo during
the Term of

                  this Agreement a non-exclusive, non-assignable
(except as set

                  forth in
Section 2.5(i) below), non-sublicensable,

                  non-transferable (other than an assignment under
Section

                  2.5(i) below), world-wide [*] license, on an as
is basis,

                  under the Overture Licensed IP to [*] and use an
Equivalent

                  Search Product for the exclusive purpose of
generating Yahoo

                  Results for display in the Top Link Position and
Exclusive

                  Results as described in Sections 4.4 and 5.1(b).

 

  
        (b)    License Grant; Yahoo Verticals. Subject to
the terms and

                  conditions of this Agreement, Overture hereby
grants to Yahoo

                  and the Yahoo Affiliates a non-exclusive,
non-assignable

                  (except as set forth in Section 2.5(i) below),

                  non-sublicensable, non-transferable (other than
an assignment

                  under Section 2.5(i) below), world-wide, [*]
license

                  exercisable during the Term, on an as is basis,
under the

                  Overture Licensed IP to [*] and use an Equivalent
Search

                  Product on any Yahoo Vertical and, to the extent
that

                  Overture-supplied search results are displayed
within [*]

                  during the Term, any Yahoo Foreign Vertical;
provided that

                  Yahoo and Yahoo Affiliates will not [*] or use
the Equivalent

                  Search Product under the foregoing license until
the date that

                  is at least [*] after Yahoo gives written notice
to Overture

                  that Yahoo or a Yahoo Affiliate intends to
exercise the

                  foregoing license, and Yahoo will continue to
give Overture

                  written notice for each subsequent Yahoo Vertical
or Yahoo

                  Foreign Vertical in which it or a Yahoo Affiliate
intends to

                  exercise the foregoing license. The parties agree
to [*] to

                  discuss ways in which Overture can offer and
provide [*] on

                  Yahoo
Verticals and Yahoo Foreign Verticals. [*]. The term of

                  each license exercised by Yahoo under this
Section 2.5(b)

                  shall continue until, but in no event extend
beyond, [*],

                  unless earlier terminated by Yahoo according to
Section

                  2.5(k).

 

           (c)    License
Grant; Equivalent Search Products. Subject to

                  the terms and conditions of this Agreement,
Overture hereby

                  grants to Yahoo and the Yahoo Affiliates a
non-exclusive,

                  non-assignable (except as set forth in Section
2.5(i) below),

                  non-sublicensable, non-transferable (other than
an assignment

                  under Section 2.5(i) below), world-wide, [*]
license, on an as

                  is basis, under Overture Licensed IP to [*] and
use an

                  Equivalent Search Product solely within (1) Yahoo
Search; (2)

                  those Yahoo Verticals and Yahoo Foreign Verticals
in which

                  Overture-supplied search results are displayed as of the
day

                  before the date on which this Agreement either
expires or

                  terminates other than by reason of Yahoo’s
breach; and (3)

                  those Yahoo Verticals and Yahoo Foreign Verticals
in which

                  Overture-supplied search results have been
displayed at any

                  time during the Term, but only in the case that
Overture has

                  ceased to supply such search results to that
Yahoo Vertical or

                  Yahoo Foreign Vertical due to either Overture’s
election to

                  discontinue the applicable search service or
Yahoo’s election

                  to discontinue the applicable search service by
reason of

                  Overture’s breach; provided that Yahoo and Yahoo
Affiliates

                  will not [*] or use an Equivalent Search Product
under the

                  foregoing license until expiration of this
Agreement or

                  termination of this Agreement for any reason
other than

                  Yahoo’s breach. The term of the license set forth
in this

                  Section 2.5(c) shall continue until, but in no
event extend

                  beyond, [*], unless earlier terminated by Yahoo
according

 

* Certain information on this page
has been omitted and filed separately with

 
the Commission. Confidential treatment has been requested with respect
to the

 
omitted portions.

 

 

 

10

 

 

EXECUTION                                                          
CONFIDENTIAL

 

                  to Section 2.5(k).

 

            (d)   License
Restrictions.

 

                  (1)   [*].
With respect to the licenses set forth in this

                        Section 2.5, the rights to [*] extend only to the

                        following circumstances:

 

                        (A)  
Yahoo and the Yahoo Affiliates will be entitled to

                              [*] the Equivalent Search Products;

 

                        (B)  
Yahoo and the Yahoo Affiliates will be entitled to

                              enlist Overture (subject to
Overture’s agreement)

                              either (A) [*] of the Equivalent
Search Products

                              for Yahoo or the Yahoo Affiliate; or (B) to

                              provide [*] of the Equivalent Search
Products to

                              Yahoo or the Yahoo Affiliate (e.g.,
in the case

                              that Yahoo elects to use [*] as an
Equivalent

                              Search Product, or as a component
thereof); and

 

                        (C)  
Yahoo and the Yahoo Affiliates will be entitled to

                              [*] to build all or part of the
Equivalent Search

                              Products [*]; provided that (i) the
Equivalent

                              Search Products either are owned by
Yahoo or a

                              Yahoo Affiliate or are [*] Yahoo or a
Yahoo

                              Affiliate [*]; (ii) Yahoo operates and
uses the

                              Equivalent Search Products [*]

                              Overture will be entitled to update
the list of

                              Overture Disqualified Entities from
time to time

                              in writing, [*].

 

                  (2)   [*]
Yahoo Search Boxes. Yahoo will not be entitled to

                        use any licenses hereunder in connection
with [*]

                        according to Section 3.1 below.

 

            (e)   Overture
Affiliate IP. With respect to the licenses granted

                  under this Section 2.5, Overture will undertake
all reasonable

                  efforts to cause Overture Affiliates to grant to
Yahoo

                  identical licenses under the Overture Affiliate
IP in the

                  applicable regional markets. Notwithstanding the
foregoing

                  sentence, to the extent that Overture elects to
transfer any

                  Overture
Licensed IP to any Overture Affiliate during the term

                  of any license granted under this Section 2.5,
such that the

                  affected Overture Licensed IP becomes Overture
Affiliate IP,

                  Overture will undertake all steps necessary to
ensure that

                  Yahoo maintains the licenses hereunder to that
Overture

                  Affiliate IP.

 

            (f)   Royalty.
[*], the parties agree that the royalty payable under

                  the license set forth in [*] should be [*]. For
purposes of

                  [*], a FMV royalty shall

 

* Certain information on this page
has been omitted and filed separately with

 
the Commission. Confidential treatment has been requested with respect
to the

 
omitted portions.

 

 

 

11

 

 

EXECUTION                                                          
CONFIDENTIAL

 

                  mean a royalty that would be agreed upon by a
willing licensee

                  and
willing licensor in an arms length negotiation for a

                  license of a substantially similar scope to the
license

                  granted under the applicable Section. Taking
those factors

                  into account, the parties agree that the royalty
payable by

                  Yahoo for exercise of the license under [*] (the
“Applicable

                  Royalty”) shall be as follows:

 

                  (1)   Upon
Expiration. In the event of expiration of this

                        Agreement, the Applicable Royalty shall be as follows:

                        [*]

 

                  (2)   Upon
Termination. In the event of termination of this

                        Agreement under Section 15.4 (Termination
for Change of

                        Control) or other termination of this Agreement
other

                        than by reason of Yahoo’s breach, the
Applicable Royalty

                        shall be as follows:

 

                        [*]

 

                  Under no circumstances shall the FMV royalty
under [*] or the

                  Applicable Royalty under [*] be payable until
Yahoo commences

                  to exercise the applicable license thereunder,
nor shall it

                  extend beyond the term of the applicable license
(and, in no

                  event, beyond [*]).

 

            (g)   Procedure
for Determination of Royalty. Upon written notice by

                  Yahoo (1) no less than [*] days for purposes of
Section

                  2.5[*], and (2) no sooner than [*] under Section
2.5(f)(2) for

                  purposes of Section 2.5[*], Yahoo and Overture
will negotiate

                  in good faith and undertake commercially
reasonable efforts to

                  establish a FMV royalty. Upon such notice, each
party will

                  provide the other party with such information as
the

                  requesting party may reasonably request for
purposes of

                  establishing FMV, including but not limited to
information

                  concerning royalty-rates or other consideration
under any

                  other licenses granted by Overture under any
Overture Licensed

                  IP. Failure to mutually agree upon a specific
royalty within

                  [*] days after that notice will constitute an
Escalation Event

                  under Section 16.5(a) below. If the procedures
outlined under

                  Section 16.5(a) fail to resolve the royalty,
then, unless the

                  parties mutually agree upon a third party
appraiser to

                  determine FMV, the parties agree to submit the
determination

                  of the royalty to arbitration. The arbitration
will be

                  conducted in accordance with Section 16.5(b) below,
except

                  that the Panel shall hold a hearing and render
its decision

                  within 90 days after appointment of the third
arbitrator of

                  the Panel. Either party shall be entitled from
time to time to

                  request
that FMV be re-determined in accordance with the

                  provisions of this Section 2.5(g), provided that
such request

                  shall not be made within [*] months after the
previous

                  determination of FMV; such re-determined FMV
shall be used to

                  compute the Applicable Royalty prospectively,
effective as of

                  the date such re-determination is requested in
accordance with

                  the provisions of this Section 2.5(g).

 

            (h)   Other
License Provisions. At the same time and under the same

                  procedure as for the determination of a royalty
under

                  Subsection 2.5(g) above, the parties shall in
good faith

                  negotiate to determine the remaining provisions
of the

                  licenses under Sections 2.5[*], including but not

                  limited to provisions relating to payment
procedure, reporting

                  procedure, record keeping requirements, audit
procedure,

                  default and cure, termination and dispute
resolution.

 

            (i)  
Assignment. Notwithstanding the provisions of Section 16.2,

                  Yahoo may, [*] the prior

 

* Certain information on this page
has been omitted and filed separately with

 
the Commission. Confidential treatment has been requested with respect
to the

 
omitted portions.

 

 

12

 

 

EXECUTION                                                           CONFIDENTIAL

 

                  written consent of Overture, assign the licenses
and other

                  rights granted under this Section 2.5 to any
entity that

                  succeeds to all or substantially all of the
assets and

                  liabilities of Yahoo. Upon such assignment, the license set

                  forth in this Section 2.5 will be binding upon
and inure to

                  the benefit of the parties hereto and their
successors and

                  assigns.

 

            (j)   Covenant not to Sue. Overture, on behalf of
itself and the

                  Overture Affiliates, covenants that neither
Overture nor the

                  Overture Affiliates will sue either (1) any
advertiser for its

                  use of or participation in an Equivalent Search
Product

                  operated by Yahoo or a Yahoo Affiliate in
accordance with the

                  licenses granted hereunder; or (2) any third
party other than

                  an [*] solely for its [*] in accordance with the
licenses

                  granted hereunder. For clarity, nothing herein
shall be deemed

                  to limit any claims of Overture against any third
party with

                  respect to any act or omission other than [*] in
accordance

                  with the licenses granted hereunder.

 

            (k)  
Termination. Yahoo will be entitled to terminate the foregoing

                  licenses, in whole or as to any Overture Licensed
IP, at any

                  time on written notice to Overture. Should
Overture terminate

                  this Agreement under Section 15.2 below by reason
of Yahoo’s

                  breach of this Agreement, all licenses under this
Section 2.5

                  terminate. In addition, should Yahoo divest
itself of all or

                  part of a Yahoo Affiliate, such that the affected
Yahoo

                  Affiliate no longer is a Yahoo Affiliate as
defined hereunder,

                  all licenses under this Section 2.5 terminate
with respect to

                  that affected Yahoo Affiliate.

 

            (l)   Nothing in
this Agreement shall be construed as imposing any

                  obligation upon Overture to provide any data,
know-how or

                  other information to Yahoo or the Yahoo
Affiliates under the

                  licenses identified in this Section 2.5.

 

      2.6   Ownership;
Reservation of Rights. This Agreement is not intended to

            and shall not affect ownership by either party of any
of its

   
        intellectual property
rights, content, products and services, and

            nothing set forth in this Agreement shall be construed
as the

            assignment or transfer of any ownership rights in any
of the

            foregoing from one party to the other. Other than the
express

            licenses set forth in this Section 2, nothing in this
Agreement, and

            nothing in any press release or other statement made in
connection

            with this Agreement (including but not limited to the
press release

            planned under Section 12.3 below), will be deemed a
license (by

            implication, estoppel or otherwise) under either
party’s patent

            rights or other intellectual property rights. Nothing
in this

            Agreement, and
nothing in any press release or in any other

            statement made in connection with this Agreement, will
be deemed an

            admission by either party that any existing, planned or
contemplated

            products, services or technology of the other party
infringes or

            does not infringe its (or a third party’s) patent or
other

            intellectual property rights or that the other party’s
(or a third

            party’s) patent or other intellectual property is
valid. Likewise,

            neither party’s performance according to the terms and
conditions of

            this Agreement will in any way broaden the intellectual
property

            rights of the other party. Both parties reserve all
rights not

  
         expressly granted.

 

      2.7   Non-Waiver of
Claims. Nothing herein constitutes a waiver of any

            pre-existing claims of one party against entities, or
with respect

            to businesses, services or product lines, acquired by
the other

            party during the Term of this Agreement or the term of
a license

            under Section 2.5 above.

 

3.    Maintenance of Yahoo Search Box; Delivery of Yahoo Search
Queries.

 

      3.1   Yahoo Search
Box. Yahoo will enable all U.S. Users to initiate Yahoo

            Search Queries through the Yahoo Search Box. Yahoo will
display the

            Yahoo Search Box on the front page of Yahoo Search and
all Yahoo

            Search Results Pages. Yahoo will be entitled to display

            commerce-related “universal” search boxes (i.e.,
shopping and/or

            auctions) on the front page of Yahoo Search no

 

* Certain information on this page
has been omitted and filed separately with

 
the Commission. Confidential treatment has been requested with respect
to the

 
omitted portions.

 

 

 

 

13

 

 

EXECUTION                                                          
CONFIDENTIAL

 

            more than 5 days in a month. The Yahoo Search Box shall
be the only

            [*] search functionality for general searches (e.g.,
[*]) of the

            World Wide Web displayed within the Yahoo Network
during the Term

            (e.g., [*]). Yahoo will be entitled to [*] and to
derive search

            traffic [*] (or similar search functionality) on [*]
provided that

            such search traffic is directed to the Yahoo Search
Results Pages.

            If Yahoo exercises its rights under the preceding
sentence, then the

            parties will negotiate in good faith for the purpose of
executing an

            amendment to this Agreement, which amendment will, at
Overture’s

            option, either (a) address the manner in which [*] and
the method by

            which Yahoo will be compensated for such traffic; or
(b) provide for

            the suppression of [*] for those Yahoo Search Results
Pages

            displayed in response to a Yahoo Search Query from this
[*], in

            which case the resulting Impression would not be
counted hereunder

            and the provisions of Section 7 would not apply.

 

      3.2   Yahoo Search
Queries; Delivery by Yahoo. Except as set forth in

            Section 5.4, Yahoo will send the Yahoo Search Query to
Overture each

            and every time that a U.S. User initiates a search
through a Yahoo

            Search Box. When a U.S. User submits a Yahoo Search
Query by

            clicking on the “next” button on a Yahoo Search Results
Page, Yahoo

            will differentiate the Yahoo Search Query in a manner
acceptable to

            Overture so that Overture can deliver Overture Results
that differ

            from those Overture Results appearing on the prior
Yahoo Search

            Results Pages. Notwithstanding the foregoing, Yahoo
acknowledges and

            agrees that Overture will be entitled to deliver the
same Overture

            Results for any Yahoo Search Query initiated by a
“next” button to

            the extent that Overture does not have additional
Overture Results

            for the keyword or phrase. As of the Effective Date,
the parties do

            not intend this Agreement to apply to Yahoo Search or
to any search

            functionality within a Yahoo Vertical to the extent
that the search

            functionality is accessed or enabled through wireless
or voice

            services (however, the parties may include such
wireless and voice

            services during the Term by mutual consent).

 

4.    Delivery and Maintenance of Overture Results.

 

      4.1   Delivery by
Overture. After receiving a Yahoo Search Query from

            Yahoo, Overture will deliver to Yahoo, according to the
Service

            Level Agreement attached hereto as Exhibit A, either
Overture

            Results or a response that no results are being
delivered for that

            Yahoo Search Query. Overture will be entitled to
redirect URLs

            embedded within the Overture Results in the process of
transferring

            a user to the Advertiser site promoted within the
applicable

 
          Overture Result, so
that Overture is able to record Actual Clicks.

 

            (a)   Remedies.
The parties acknowledge that it is in the financial

                  best interest of both parties to avert Unresolved
Catastrophic

                  Problems
and Recurrent Problems, as such terms are defined in

                  the Service Level Agreement attached as Exhibit A
hereto and

                  this Agreement, respectively, and that the
damages

                  attributable to such Unresolved Catastrophic
Problems and

                  Recurrent Problems would be difficult to
ascertain. Therefore,

                  the parties have specified the liquidated damages
below as a

                  reasonable estimate of such damages and as each
party’s sole

                  and exclusive remedy other than termination (in
the event of

                  an uncured, material breach pursuant to Section
15.2 below)

                  for such Unresolved Catastrophic Problems that
prevent

                  Overture
from fulfilling its delivery obligations pursuant to

                  Section 4.1 above and for Recurrent Problems. For
purposes of

                  this Section 4.1, a “Recurrent Problem” means any
Problem,

                  Severe Problem, or Catastrophic Problem (each,
individually, a

                  “Recurrent Problem Element”), or any combination
of Recurrent

                  Problem Elements, which renders the Overture
Results

                  unavailable or unusable for more than [*] in any
[*], and is

                  attributable to a single party.

 

                  (1)  
Yahoo Remedy for Unresolved Catastrophic Problems. For

                        any Unresolved Catastrophic Problem within
the

                        reasonable control of Overture, Overture
will pay to

                        Yahoo an amount calculated as [*] of Gross
Revenue that

                        Yahoo would have earned pursuant to this
Agreement

                        during the period beginning [*] after the
earlier of

                        Overture’s

 

* Certain information on this page
has been omitted and filed separately with

 
the Commission. Confidential treatment has been requested with respect
to the

 
omitted portions.

 

 

14

 

 

EXECUTION                                                          
CONFIDENTIAL

 

                        learning of, or Yahoo’s providing notice to
Overture

                        that a Problem, Severe Problem or Catastrophic
Problem

                        attributable to Overture has been detected
but not

                        resolved. Overture’s liability for such
payment will not

                        extend beyond the point in time when (i)
Overture has

   
                    resolved the
Catastrophic Problem, even if Yahoo has

                        elected to manually override pursuant to
Section IV(F)

                        of the Service Level Agreement; or (ii) a
Yahoo

                        Technical Lapse is in effect. For clarity,
Overture’s

                        liability would continue to accrue
incrementally if

                        Yahoo resolves such Technical Lapse but
Overture has not

                        resolved the Catastrophic Problem.

 

                  (2)  
Overture Remedy for Unresolved Catastrophic Problems. In

                        the event of any Unresolved Catastrophic
Problem within

                        the reasonable control of Yahoo, Yahoo will
pay to

                        Overture an amount calculated as [*] of Gross Revenue

                        that Overture would have earned pursuant to
this

                        Agreement during the period beginning [*]
after the

                        earlier of Yahoo’s learning of, or
Overture’s providing

                        notice to Yahoo that a Problem, Severe
Problem or

                        Catastrophic Problem attributable to Yahoo
has been

                        detected but not resolved. Yahoo’s
liability for such

                        payment will not extend beyond the point in
time when

                        (i) Yahoo has resolved the Catastrophic
Problem to meet

                        the acceptable performance standards set
forth in the

                        Service Level Agreement, or (ii) a technical lapse by

                        Overture (such as a Problem, Severe Problem
or

                        Catastrophic Problem attributable to
Overture) is in

                        effect. For clarity, Yahoo’s liability
would continue to

                        accrue if Overture resolves such technical
lapse but

                        Yahoo has not resolved the Catastrophic
Problem.

 

                  (3)   The
Parties’ Remedies for Recurrent Problems. The party

                        responsible for any Recurrent Problem will
pay the

                        non-breaching party (the “NBP”) an amount
calculated as

                        the [*] of Gross Revenue that the NBP would
have earned

                        during the total period in which the Recurrent
Problem

                        Elements occurred. The beginning of this
period

                        commences [*] after the party that is
responsible for

                        the Recurrent Problem initially learns of,
or receives

                        notice of, the occurrence of the first
Recurrent Problem

                        Element in the Recurrent Problem. The
liability of the

                        party responsible for the Recurrent Problem
will not

                        extend beyond the point in time when the
responsible

                        party has resolved the final Recurrent
Problem Element

                        in the Recurrent Problem and will not
include periods

                        when the NBP experiences a technical lapse
during a

                        Recurrent Problem Element. For clarity, the
responsible

                        party’s liability would continue to accrue
incrementally

                        if
the NBP resolves such technical lapse but the

                        responsible party has not resolved the
Recurrent Problem

                        Element.

 

      4.2   Suppression by
Overture. Overture will suppress delivery of certain

            Overture Results
to Yahoo in accordance with the following:

 

            (a)  
[*]-Related Overture Results. Overture will suppress

                  [*]-related Overture Results, at a minimum, to
the same degree

                  as the [*] that appear on the Overture Site as of
the

                  Effective Date. Upon receipt by Overture of [*]
Yahoo Search

                  Query for which Overture has [*] Overture
Results, Overture

                  will send to Yahoo such [*] Overture Results. For
all other

                  [*] Yahoo Search Queries, Overture shall not
return any

                  Overture Results, and if Overture does send an
Overture

                  Result, then Yahoo shall be entitled to block
such Overture

                  Result
from being displayed pursuant to Section 4.5(a) below.

                  The parties acknowledge and agree that the
delivery of

                  [*]-related Overture Results to Yahoo is not
contemplated by

                  this Agreement and, thus, [*].

 

            (b)   Overture
Results related to [*]. Overture will suppress

                  Overture Results that link directly to a page
owned or

                  operated by [*].

 

* Certain information on this page
has been omitted and filed separately with

 
the Commission. Confidential treatment has been requested with respect
to the

 
omitted portions.

 

 

15

 

 

EXECUTION                                                          
CONFIDENTIAL

 

            (c)   Overture
Results in response to Excluded Terms. Overture will

                  not deliver Overture Results to Yahoo in response
to a U.S.

                  User’s search of the Yahoo Search for an Excluded
Term.

 

            (d)   Overture
Results identified by Yahoo. Upon a reasonable

                  request by Yahoo according to Section 4.5 below,
Overture

                  agrees to cease delivery of the affected Overture
Result.

 

            (e)  
Suppression of all Overture Results. Overture will be entitled

                  to cease delivery of all Overture Results for any
Yahoo Search

                  Query in Overture’s keyword marketplace that
triggers

                  Overture’s compliance obligations under this
Section 4.2.

 

      4.3   Display by
Yahoo. After receiving Overture Results from Overture in

            response to a Yahoo Search Query, Yahoo will display
the Required

            Number of Overture Results in the Featured Sections as
provided for

            in this Agreement, unless Overture provides less than
the Required

            Number of Overture Results to Yahoo in response to the
particular

            Yahoo Search Query, in which case Yahoo will display
all Overture

            Results provided by Overture in the Featured Sections.

 

            (a)   Order and
Appearance. On the Effective Date and during any

                  population test pursuant to the Estimated Yahoo
Payment and

                  Guaranteed Fixed Payment Adjustment Process set forth
in

                  Exhibit K, the Yahoo Search Results Page shall be
displayed as

                  provided for in Exhibit C. Yahoo will display the
Overture

                  Results in the order provided by Overture. Yahoo
will display

                  Overture
Results in the Featured Sections with Overture’s full

                  title and a truncated description, both of which
together will

                  consist of no less than 88 characters (as shown
in the mock-up

                  attached as Exhibit C hereto), as well as with
the full URL of

                  the web page associated with each Overture
Result. When viewed

                  via Microsoft’s principal “Internet Explorer”
browser product

                  (U.S. versions 4.0 and higher) on the Microsoft
Windows

                  platform or any other browser that easily
supports a mouse

                  over implementation, the title will give rise to
the full

                  description to the extent that the user passes his
or her

                  cursor over the title (a “Mouse Over”), which
Mouse Over will

                  be substantially similar in form to the example
set forth in

                  Exhibit C. Yahoo will not modify [*] of the
Overture Results,

                  except
that Yahoo will truncate the description as described

                  in the foregoing sentence. The only content in
the Featured

                  Sections shall be the Overture Results and the
Yahoo Results,

                  as provided for in this Agreement. All of the
Search Result

                  Characteristics of the Overture Results and the
Yahoo Results

                  in the Featured Sections, as well as the
Exclusive Result,

                  shall be identical. To the extent that the [*] of
the Overture

                  Results and the [*] are not identical to the Main
Body Search

                  Results, Yahoo will provide Overture with written
notice, and

                  any dispute regarding the difference between [*]
will be

                  deemed an Escalation Event that is not subject to
arbitration

                  under

 

* Certain information on this page
has been omitted and filed separately with

 
the Commission. Confidential treatment has been requested with respect
to the

 
omitted portions.

 

 

16

 

 

EXECUTION                                                          
CONFIDENTIAL

 

                  Section 16.5(b) below (i.e., [*]). The entire
first search

                  result in
the Featured Top Section shall appear Above the

                  Fold. The heading of the Featured Sections shall
be “Sponsor

                  Matches” or such other heading as is mutually
agreed upon by

                  the parties. Yahoo agrees that it will not [*].

 

            (b)   Increases
in the Required Number of Overture Results. Yahoo

                  will be entitled to increase the number of
Overture Results

                  that appear within the Featured Sections as long
as Yahoo (a)

                  provides Overture with no less than [*] prior
written notice

                  of the increase setting forth the keywords and
terms for which

                  the number of Overture Results shall be increased
and the

                  duration of time that the increase will last
(which in no

                  event shall be less than [*]); (b) enlarges the
applicable

                  Featured Section, as determined by Yahoo,
proportionally to

                  account for the increased number of Overture
Results; and (c)

                  confers with Overture regarding possible
revisions to the

                  Service Level Agreement in order to account for
the additional

                  Overture Results and, to the extent that the
parties cannot

                  agree on the appropriate revision or whether a
revision to the

                  Service Level Agreement is warranted at all, the
parties will

                  resolve the issue via the escalation provisions
set forth in

                  Section 16.5(a). If Yahoo elects to [*] within
the Featured

                  Sections after the date that is [*] from the
Effective Date,

                  then Yahoo will provide Overture with [*] days
prior written

                  notice, and Yahoo agrees to add one additional
Overture Result

                  to the Featured Top Section with respect to [*]
keywords or

                  phrases upon which the parties mutually agree,
which agreement

                  will not
unreasonably withheld, for the period during which

                  [*].

 

            (c)   No
Incentives to Click. Yahoo will not provide users with any

                  incentives (e.g., points or special offers) to
click on

                  Overture
Results.

 

      4.4   Preemption by
Yahoo. In response to Yahoo Search Queries, Yahoo will

            be entitled to display either (a) one Yahoo Result on
the first

            Yahoo Search Results Pages, unless Overture delivers
the same

 
          Overture Results for
any Yahoo Search Query according to Section 3.2

            (in which case Yahoo will be entitled to display the
same Yahoo

            Result on subsequent Yahoo Search Results Pages), in
the Top Link

            Position; or (b) one Exclusive Result (as defined
below) in the

            “Yahoo! Exclusives” (or similarly named) section of the
Yahoo Search

            Results Pages according to Section 5.1(b) below. If
Yahoo elects to

            display a Yahoo Result in the Top Link Section in
response to a

            particular Yahoo Search Query, then the Required Number
of Overture

            Results in the Featured Top Section for the particular
Yahoo Search

            Query will be reduced to two.

 

      4.5   Removal by
Yahoo; Potential Liability; Excluded Terms; Contextual

            Relevance. Yahoo will be entitled to block the display
of any

            Overture Result for which Overture has an obligation to
suppress

            delivery pursuant to Section 4.2 and this Section 4.5.

 

            (a)   Overture
Results that Yahoo deems Objectionable. As it

                  consistently administers its company-wide
advertising

                  policies-(e.g., [*]), Yahoo will be entitled to
block Overture

                  Results
that do not comply with such policies from the Yahoo

                  Search Results Pages or to amend the list of
Excluded Terms to

                  include any keywords or phrases to which those
Overture

                  Results relate, as reasonably determined by
Yahoo. Yahoo also

                  will be entitled to block or to request removal
of any

                  Overture Results that [*]. Yahoo also will be
entitled to

                  block or to request removal of any Overture
Results that, in

                  Yahoo’s reasonable belief, might [*] or might
[*]. In any

                  event, Yahoo agrees to notify Overture and to
provide Overture

                  with an electronic copy of the Overture Results
that give rise

                  to Yahoo’s request.

 

            (b)   Overture
Results that Yahoo deems Contextually Irrelevant. As

                  it consistently administers its Yahoo Search-wide
editorial

                  policies, Yahoo will be entitled to block or to
request

                  removal of any Overture Results that are not
contextually

                  relevant to the Yahoo Search Query. The

 

 

* 
Certain information on this page has been omitted and filed separately
with

  
the Commission. Confidential treatment has been requested with respect

  
to the omitted portions.

 

 

17

 

 

EXECUTION                                                          
CONFIDENTIAL

 

                  parties will discuss relevancy issues in good
faith, including

                  but not limited to the means for resolving
relevancy issues

                  (e.g., revision of title and description, filter
or removal).

                  Any disagreement between Overture and Yahoo
concerning whether

                  an Overture Result is contextually relevant under
this Section

                  4.5(b) shall give rise to an Escalation Event.

 

      4.6   Yahoo
Suppression. Yahoo will suppress delivery of certain Yahoo

            Results in
accordance with the following:

 

            (a)   Results
that Overture deems Potentially Damaging. Overture

                  will be entitled to request that Yahoo not
display any Yahoo

                  Results that, in Overture’s reasonable belief,
might subject

                  Overture to criminal or civil liability.

 

            (b)   Contextual
Relevance. As it consistently administers its

                  editorial policies, Overture will be entitled to
request that

                  Yahoo not
display any Yahoo Results that are not contextually

                  relevant to the Yahoo Search Query. The parties
will discuss

                  relevancy issues in good faith, including but not
limited to

                  the means for resolving relevancy issues (e.g.,
revision of

                  title and description, filter or removal). Any
disagreement

                  concerning this Section 4.6(b) shall give rise to
an

                  Escalation Event.

 

5.    Yahoo Search Results Pages; Featured Sections.

 

      5.1   Creation and
Maintenance of Yahoo Search Results Pages. Yahoo will

            create and maintain the Yahoo Search Results Pages
during the Term

            and, except as set forth in Section 5.4, display a Yahoo
Search

            Results Page in response to the submission of every
Yahoo Search

            Query.

 

            (a)   Editorial
Control. Yahoo will be solely responsible for the

                  design, layout, “look and feel,” posting and
maintenance of

                  the Yahoo Network, including but not limited to
the Yahoo

                  Search Results Pages and any sections thereof.
Notwithstanding

                  any provision herein to the contrary, except
Section 4.3(a)

                  and the
introductory paragraph thereto which contain the

                  minimum display requirements, Yahoo will be
entitled to

                  redesign or modify [*], of the Yahoo Network,
including but

                  not limited to the Yahoo Search Results Pages and
any sections

                  thereof. Yahoo will undertake commercially
reasonable efforts

                  to provide Overture with a reasonable amount of
notice prior

                  to implementing any Redesign of the Yahoo Search
Results

                  Pages.

 

            (b)  
Pre-Approved Change to Yahoo Search Results Pages. With

                  respect to Yahoo Search Results Pages on which
Yahoo does not

                  display a Yahoo Result, Overture hereby approves
Yahoo’s

                  creation and display of a “Yahoo! Exclusives” (or
similarly

                  named) section on the Yahoo Search Results Pages,
which

                  section will include no more than one search
result (an

                  “Exclusive
Result”) and might appear above the Featured Top

                  Section.

 

            (c)  
Acknowledgement of Redesign. The parties acknowledge and agree

                  that Yahoo might implement more than one “look
and feel” for

                  the Yahoo
Search Results Pages, which “look and feel” could

                  vary based on the nature of the Yahoo Search
Query, as

                  determined by Yahoo.

 

            (d)   “Sponsor
Matches” Link. Both parties acknowledge and agree

                  that, with respect to the page to which users
navigate

                  directly from the “What are Sponsor Matches?”
link (as shown

                  on the mock-up) or other similar link on the
Yahoo Search

                  Results Page (the “Help Page”), the Help Page
that has been

                  used prior to the Effective Date shall be the
Help Page that

                  is used after the Effective Date, unless
otherwise mutually

                  agreed upon by the parties.

 

      5.2   Creation and
Maintenance of Featured Sections. Yahoo will create and

            maintain the Featured Sections on the Yahoo Search
Results Pages

            throughout the Term in accordance with the terms of

 

* 
Certain information on this page has been omitted and filed separately
with

  
the Commission. Confidential treatment has been requested with respect

  
to the omitted portions.

 

 

18

 

 

EXECUTION                                                           CONFIDENTIAL

 

            this Agreement, including but not limited to Section
4.3(a) above.

            On the Effective Date and during any population test
pursuant to the

            Estimated Yahoo Payment and Guaranteed Fixed Payment
Adjustment

            Process set forth in Exhibit K, the Featured Sections
shall be

            displayed as provided for in Exhibit C.

 

      5.3   Blocked Content.
Yahoo will undertake commercially reasonable

            efforts not to sell advertising units (including but
not limited to

            pop-up windows) that block any portion of a user’s view
of the

            Overture Results [*].

 

      5.4   Jump Page
displayed in response to Hybrid Search Queries. With

            respect to [*] Yahoo Search Queries for which
“filtered” Overture

            Results are available (the “Hybrid Search Queries”),
Yahoo will be

            entitled to present a jump page (the “Jump Page”) to
each and every

            U.S. User in response to that U.S. User submitting a
Hybrid Search

            Query, which Jump Page will (a) inform the U.S. User
that the Hybrid

            Search Query is likely to return [*] search results;
(b) enable the

            U.S. User to navigate directly to a contextually relevant
Yahoo

            Search Results Page and, to the extent that the U.S.
User selects

            this option, Yahoo will send the Hybrid Search Query to
Overture in

            accordance with Section 3.2 above; (c) enable the U.S.
User to

            submit a new Yahoo Search Query; and, in some cases,
(d) enable the

            U.S. User to navigate directly to a page within a third
party web

            site on which contextually relevant [*] search results
are

            displayed, thereby terminating the Hybrid Search Query.
Any other

            treatment of Hybrid Queries will be subject to mutual
agreement of

            the parties. The parties acknowledge and agree that the
Jump Page

            does not constitute a Yahoo Search Results Page, and
that Yahoo’s

            treatment of Hybrid Search Queries in this manner does
not

            constitute a breach of this Agreement. The parties
further

            acknowledge and agree that the delivery of [*] Overture
Results to

            Yahoo is not contemplated by this Agreement and, thus,
Yahoo [*].

 

6.    Technical Implementation; Interaction between the Parties.

 

      6.1   Compliance with
Service Level Agreement. Each party will comply with

            the terms and conditions of the Service Level Agreement
attached

            hereto as Exhibit A.

 

      6.2   Technical
Resources; Quarterly Meetings. During the Term, each party

            will contribute those technical resources reasonably
necessary to

            facilitate the exchange of Yahoo Search Queries and
Overture Results

            and the improvement of the tracking and reporting
outlined in

            Section 8.4 below. The search product development teams
of the

            parties will meet no less than once per Quarter to
exchange

            information regarding relevance of Overture Results and
Yahoo

            Results and developing trends in the search product
market.

 

      6.3   No Disparaging
Comments. Yahoo will not post any disparaging

            comments attributable to Yahoo about Overture or the
Overture

            Results on Yahoo Search and the accompanying directory
property

            during the Term (e.g., [*]), and Overture will not post
any

            disparaging comments attributable to Overture about
Yahoo or Yahoo

            Search on the Overture Site during the Term. In
addition, during the

            Term, Yahoo agrees (a) not to use Overture’s
Confidential

            Information, the Overture Results or the Overture
Reports for the

            purpose of
selling Overture advertisers placement in any Yahoo

            search sponsor matches program; (b) not to target
Overture

            advertisers by parsing the Overture XML feed for
Overture advertiser

            contact information or by obtaining such information
from another

            source provided by Overture. Notwithstanding the
foregoing, under no

            circumstances shall this Agreement be deemed to
restrict Yahoo in

            any manner from: (1) marketing any Yahoo product or
service

            (including but not limited to any Yahoo sponsor matches
program) to

            any existing Yahoo advertiser, content provider, or
Yahoo registered

            user; (2) marketing any Yahoo product or service to any
potential

            Yahoo

 

* Certain information on this page
has been omitted and filed separately with

 
the Commission. Confidential treatment has been requested with respect
to the

 
omitted portions.

 

 

19

 

 

EXECUTION                                                          
CONFIDENTIAL

 

            advertiser through “one-to-one” contacts (e.g.,
telephone calls,

            letter, e-mails, sales calls); or (3) marketing any
Yahoo product or

            service through any mass media (e.g., television,
radio, print,

            online) that does not specifically target Overture
advertisers by

            name. For clarity, individual Yahoo! salespeople may
distinguish

            Yahoo! sponsor matches programs from Overture’s by
comparing aspects

            of the two programs (e.g., [*]).

 

      6.4   Co-Marketing
Opportunities. The parties agree to deliver marketing

            messages on behalf of each other via email or other
means, the

            recipients, content and timing of which will be
mutually agreed upon

            by the parties, which approval shall not be
unreasonably withheld.

 

7.    Exclusivity; Additional Domestic Opportunities; International.

 

      7.1   Exclusivity.

 

            (a)   General. Except as set forth herein, the
Overture Results will

                  be the only Restricted Search Results displayed
by Yahoo

                  within [*] during the Term. In addition, other
than Yahoo

                  Results and Exclusive Results displayed by Yahoo
in accordance

                  herewith and any search results for which Yahoo
is compensated

                  through its [*], Yahoo will not display within
Yahoo Search

                  any [*]. Finally, Yahoo will not display Paid
Advertising that

                  promotes the Restricted Search Results of any [*]
in the area

                  between the [*] and the [*] or [*] or [*] of the
Featured Top

                  Section.

 

            (b)   [*].
During the Term, Yahoo will not enter into any agreement

                  with any third party under which Yahoo is
supplied with (1)

                  [*] products for use within [*]; or (2) [*]
products for use

                  on the Yahoo Network, which [*] products (i) are
[*] to

                  Overture’s [*] search service as of the Effective
Date; and

                  (ii) assemble Restricted Search Results for
display in

                  response to general searches [*]. During the
Term, if [*]

                  offers a service outside the scope of the [*],
then Yahoo is

                  free to utilize that service on the Yahoo
Network, subject to

                  Section 7.3 below.

 

      7.2   Exclusions;
Clarifications; Acknowledgements.

 

            (a)   Exclusions;
Yahoo Listings and [*]. Notwithstanding anything

                  to the contrary in this Agreement, Yahoo will be
entitled to

                  continue to offer and grow its listings
businesses (e.g.,

                  [*]), as long as Yahoo does not place its
directory “Sponsor

                  Listings” (or similarly named listings) within
Yahoo Search in

                  a manner that [*] (for clarity, [*]). In
addition,

                  notwithstanding anything to the contrary in this Agreement,

                  Yahoo will be entitled to monetize all or part of
the Main

                  Body Search Results by

 

* 
Certain information on this page has been omitted and filed separately
with

  
the Commission. Confidential treatment has been requested with respect

  
to the omitted portions.

 

 

20

 

 

EXECUTION                                                          
CONFIDENTIAL

 

                  implementing [*], provided that Yahoo will notify
Overture,

                  and discussions arising therefrom will be deemed
an Escalation

                  Event (with the criteria being whether [*]),
before Yahoo

                  itself [*] (or instructs the [*]) to the fact
that a Main Body

  
               Search Result is
paid. Any [*] results will be displayed with

                  the same Search Result Characteristics as the
other Main Body

                  Search Results, and the [*] results may not be
displayed in a

                  separate section, but rather must be displayed
among the other

                  Main Body Search Results. Overture acknowledges
and agrees

                  that (1) Yahoo may not have control over [*]; and
(2) Yahoo

                  uses and will continue to use the fact that a web
site within

                  its directory is [*] for display in the Main Body
Search

                  Results.

 

            (b)  
Clarifications; U.S. Users. For clarity, the exclusivity set

                  forth in this Section 7 extends to U.S. Users on
Yahoo Search

                  only, unless the parties mutually agree in an
executed

                  amendment to this Agreement to broaden the
exclusivity to

                  include New Domestic Opportunities or International

                  Opportunities as set forth in Section 7.3 and 7.4
below.

 

            (c)  
Acknowledgements; European Users on Yahoo Search. Overture

                  acknowledges and agrees that Yahoo has entered
into agreements

                  with (a)
LookSmart International Pty Limited (“LookSmart

                  Australia”) under which, among other things,
LookSmart

                  Australia provides and Yahoo displays Restricted
Search

                  Results in response to search queries submitted
to Yahoo

                  Search from Internet Protocol addresses within
Australia or

                  New Zealand, as measured by Yahoo; and (b)
eSpotting Media

                  (UK) Limited (“eSpotting UK”) under which, among
other things,

                  eSpotting UK might provide and Yahoo might
display Restricted

                  Search Results in response to search queries
submitted to

                  Yahoo Search from Internet Protocol addresses
within Europe,

                  as
measured by Yahoo. Overture agrees that nothing in this

                  Agreement will be construed to prohibit,
restrict, or

                  otherwise prevent Yahoo from continuing to
participate in and

                  pursue the foregoing relationships, as long as
these pursuits

                  do not violate this Agreement. Nothing in this
provision or

                  Agreement shall be construed to constitute an
admission by

                  Overture that any third party system does not
infringe any

                  Overture intellectual property right. Further,
nothing in this

                  provision or Agreement shall preclude Overture
from asserting

                  a claim for infringement against any third party
for

                  infringement of Overture’s intellectual property or
seeking an

                  injunction against providing infringing search
results to

                  others, including Yahoo.

 

      7.3   Additional
Domestic Opportunities. If, during the Term, Yahoo elects

            to create a new opportunity for a [*] for display on
the Yahoo

            Network but outside Yahoo Search and Yahoo Directory
(the “New

            Domestic Opportunity”), then Yahoo will provide
Overture with

            written notice that sets forth Yahoo’s business
requirements for the

            New Domestic Opportunity. The parties will negotiate in
good faith

            for the purpose of executing an amendment to this
Agreement under

            which Overture will provide the New Domestic
Opportunity under

            reasonable terms and conditions. [*].

 

* Certain information on this page
has been omitted and filed separately with

 
the Commission. Confidential treatment has been requested with respect
to the

 
omitted portions.

 

 

 

21

 

 

EXECUTION                                                          
CONFIDENTIAL

 

      7.4   International
Opportunities. The parties will negotiate in good

            faith for the purpose of executing an amendment to this
Agreement

            under which Overture or an Overture Affiliate will
provide

            Restricted Search Results within certain mutually
agreed upon areas

            of those Yahoo Foreign Properties located within the
[*], which

            provision by Overture cannot occur until Yahoo’s or the
Yahoo

            Affiliate’s pre-existing contractual obligations with
respect to the

            display of Restricted Search Results on the [*] expire
or terminate.

            If, during the Term, Yahoo or a Yahoo Affiliate elects
to create a

            new opportunity for a third party to provide Yahoo with
Restricted

            Search Results for display on any Yahoo Foreign
Property (the

            “International Opportunity”), then Yahoo will provide
Overture with

            written notice that sets forth Yahoo’s business
requirements for the

            International Opportunity. The parties will negotiate
in good faith

            for the purpose of executing an amendment to this
Agreement under

            which Overture will provide the International
Opportunity under

            reasonable terms and conditions. [*]. Upon Overture
providing

            services in a new market under this Agreement, whenever
a user of

            such market conducts a search on Yahoo Search, Yahoo
shall display

            Overture’s search results for that market and not the
Overture

            Results.

 

8.    Overture’s Payment Obligations. Overture will make payments to
Yahoo in

      accordance with the following:

 

      8.1   Guaranteed Fixed
Payments. Overture will make the applicable

            Guaranteed Fixed Payment to Yahoo within [*] days after
the start of

            the applicable Quarter according to the schedule set
forth below,

            unless the applicable Guaranteed Fixed Payment is
reduced according

            to Section 8.7 below. If the parties reasonably believe
that a

            Revenue Share Payment will be less than the Guaranteed
Fixed Payment

            in a particular Quarter, then Overture shall pay to
Yahoo a [*]

            reasonable estimate of the next Guaranteed Fixed
Payment due (which

            reasonable estimate shall not bind either party to such
number) and,

            once the parties
determine the correct Guaranteed Fixed Payment for

            that Quarter according to Section 8.7 below, the party
that owes

            money to the other shall pay the same. If Yahoo owes
money to

            Overture, then Overture shall be entitled to reduce its
next

            payment(s) by the amount that is owed until the entire
amount has

            been repaid.

 

 

 

          
—-----------------------------------------------------------

           Quarter                             Guaranteed Fixed Payment

          
—-----------------------------------------------------------

 

           Q1                                  $[*]

          
—-----------------------------------------------------------

           Q2                                  $[*]

          
—-----------------------------------------------------------

           Q3                                  $[*]

          
—-----------------------------------------------------------

           Q4                      
           $[*]

          
—-----------------------------------------------------------

           Q5                                  $[*]

          
—-----------------------------------------------------------

           Q6                                  $[*]

          
—-----------------------------------------------------------

           Q7                                  $[*]

          
—-----------------------------------------------------------

           Q8                                  $[*]

          
—-----------------------------------------------------------

           Q9                                  $[*]

          
—-----------------------------------------------------------

           Q10                                $[*]

           —-----------------------------------------------------------

           Q11                                $[*]

          
—-----------------------------------------------------------

           Q12                                $[*]

           —-----------------------------------------------------------

 

 

* Certain information on this page
has been omitted and filed separately with

 
the Commission. Confidential treatment has been requested with respect
to the

 
omitted portions.

 

 

22

 

 

EXECUTION                                                          
CONFIDENTIAL

 

 

          
—-----------------------------------------------------------

           Each Quarter of any Extension
Term  $[*]

          
—-----------------------------------------------------------

 

 

      8.2  
Revenue Share Payments. Overture will make Quarterly revenue share

            payments (the “Revenue Share
Payments”) to Yahoo based on Gross

            Revenue in the applicable Quarter
according to the schedule set

            forth below, but only to the
extent that the applicable Revenue

            Share Payment exceeds the
applicable Guaranteed Fixed Payment made

            by Overture (e.g., if the Revenue
Share Payment for the applicable

            Quarter were to exceed the
Guaranteed Fixed Payment made by Overture

            for the applicable Quarter, then
Overture would make a payment to

            Yahoo in the amount of the
difference between the applicable Revenue

            Share Payment and the applicable
Guaranteed Fixed Payment). [*].

            Percentages of Gross Revenue apply
solely to Gross Revenue within

            each of the ranges listed below
(i.e., [*]). Revenue Share Payments

            are due and payable to Yahoo
within [*] days after the end of the

            applicable Quarter.

 

            [*]

 

            Overture will retain all revenue
that it derives from the Overture

            Results, except as specifically
set forth in this Agreement.

 

      8.3  
Advance Payment; Renewal Fee; Prior Agreement True-Up.

 

            (a)   Advance Payment. On or before the date that is [*] days after

                  the Effective Date, Overture
shall pay to Yahoo, as an advance

                  payment, [*] of the
Guaranteed Fixed Payment due for [*] as

                  specified in Section 8.1
above (the “Advance Payment”). If

                  this Agreement is terminated
prior to the end of the [*], then

                  Yahoo will apply the Advance
Payment to any amount owed by

                  Overture to Yahoo hereunder. If the Advance Payment
is greater

                  than the amount owed by
Overture to Yahoo hereunder, then the

                  difference between the
amount of the Advance Payment and the

                  amount owed by Overture to
Yahoo hereunder shall be refunded

                  to Overture within [*] days
after the effective date of

                  termination.

 

            (b)   Renewal Fee. If Yahoo irrevocably exercises its First Option

                  (as defined below) according to Section 10 below and so

                  notifies Overture in writing
no later than April 30, 2004,

                  then Overture shall pay to
Yahoo a renewal fee in the amount

                  of $2,000,000 within 60 days
after Yahoo’s notice.

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

 

 

23

 

 

EXECUTION                                                          
CONFIDENTIAL

 

            (c)   Prior Agreement True-Up. The parties acknowledge and agree

                  that, under the Prior
Agreement and in consideration of

                  Yahoo’s performance under the Prior Agreement, Overture
owes

                  additional fees in the
amount of $[*] (the “True-Up Payment”).

                  Overture shall pay the
True-Up Payment to Yahoo within [*]

                  days after the Effective
Date.

 

      8.4  
Tracking; Reporting.

 

            (a)   Tracking. Yahoo will include [*] search URLs or other source

                  feed indicators provided by
Overture (the “Tags”) for (i) [*];

                  (ii) Yahoo Search Results
Pages within the Yahoo Network

                  within which Overture
Results are displayed and (iii) any

                  search service testing
performed by Yahoo related to the

                  Overture Results. Overture
will use the Tags solely for [*].

 

            (b)   Overture Reporting. Overture will be responsible for tracking

                  and calculating Gross
Revenue and Revenue Share Payments.

                  Overture will provide Yahoo
a monthly report that sets forth

                  in reasonable detail the information listed in Exhibit F
(the

                  “Overture Reports”) in a
format to be mutually agreed upon by

                  the parties. All reports
provided hereunder will be

                  accompanied by a certificate
of accuracy, signed by Overture’s

                  Chief Financial Officer or
similar officer with responsibility

                  for the reporting function.

 

            (c)   Yahoo Reporting. Yahoo will provide Overture with access to

                  either offline reports or an online database (and
each of

                  which will be deemed Yahoo
Search Query Reports to the extent

                  reduced to tangible form by
or for Overture) that sets forth

                  Yahoo’s calculation of the
Yahoo Search Queries, Impressions

                  and “next” button Yahoo
Search Queries delivered hereunder in

                  the aggregate, as well as
the number and percentage of

                  Timeouts (as that term is
defined in the Service Level

                  Agreement attached hereto as
Exhibit A) and the number of

                  times that Yahoo displayed
an impression that was not in

                  compliance with the terms of
this Agreement. The Impression

                  information shall be reflected in the on-line
reporting

                  database within 48 hours. In
addition, with respect to the

                  Yahoo Results and Exclusive
Results, Yahoo will provide

                  Overture with a Yahoo Search
Query Report that sets forth in

                  reasonable detail monthly
Impressions for the Yahoo Results

                  and Exclusive Results in the
aggregate and the aggregate

                  information and data that
falls within the same categories as

                  those listed in Exhibit F
for which Overture must provide

                  information and data about
the Overture Results (e.g., total

                  clicks, average cost per
click and average click-through

                  rate). All reports provided hereunder will be
accompanied by a

                  certificate of accuracy,
signed by Yahoo’s Chief Technology

                  Officer or similar officer
with responsibility for the

                  reporting function.

 

            (d)   `Bot Traffic. Yahoo will implement a tracking solution that

                  tracks the number of
Impressions (i.e., a tracking solution

                  that determines which Yahoo
Search Queries were performed by

                  U.S. Users, thereby qualifying as Yahoo Search Queries,
and

                  which search queries were
performed by `bots, metaspiders,

                  macro programs, Internet
agents, any other automated means, or

                  by Yahoo as part of any
testing in accordance with the

                  subsection (e) below and the
Service Level Agreement).

 

            (e)   Mutual Exchange of Information. The parties hereby agree to

                  negotiate in good faith for
[*] days following the Effective

                  Date to provide an exchange
of information during the Term

                  that (i) enables either
Overture to develop its own reasonable

                  estimates of `bot traffic in
addition to the numbers reported

                  in the Yahoo Search Query
Reports or Yahoo to develop its own

                  marketplace for the Yahoo
Results and Exclusive Results, (ii)

                  does not violate any law or
regulation affecting user privacy,

                  (iii) provides contractual assurances to each party that such

                  information will not be used
for any purpose other than those

                  set forth in subsection (i)
above, and (iv) provides standards

                  for storing and destroying
such information. The parties

                  acknowledge and agree that
the goal of this Section 8.4(e) is

                  to exchange that information

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

 

24

 

 

EXECUTION                                                          
CONFIDENTIAL

 

                  reasonably necessary for
each party to administer this

                  Agreement on a timely basis
and to mutually determine relative

                  fault for adjustments to the
Estimated Yahoo Payment and the

                  Guaranteed Fixed Payments under
Section 8.7 below. Any failure

                  to complete such
negotiations will trigger an Escalation Event

                  pursuant to Section 16.5(a)
below.

 

            (f)   Testing. Yahoo agrees to (i) identify search queries submitted

                  by Yahoo in connection with any test conducted by
Yahoo in

                  accordance with the Service
Level Agreement as “test” queries

                  by marking them as such in a
data field at the time of

                  submission; and (ii) include
a total of these “test” queries

                  in the Yahoo Search Query
Reports.

 

      8.5  
Mutual Audit Rights. Each party (the “Auditing Party”), at its own

            expense, will be entitled to
retain a reputable, independent

           
certified public accounting firm reasonably acceptable to the other

            party (the “Audited Party”) solely
for the purpose of auditing, at a

            mutually agreed upon time during
normal business hours, those

            records of the Audited Party that
relate to the calculation of `bot

            traffic, Click-Through Rate, Price
Per Click, Impressions, Yahoo

            Results, U.S. Users, Gross Revenue
or the Revenue Share Payments.

            Prior to an audit, the Auditing
Party will require the certified

            public accounting firm (the
“Auditor”) to sign a confidentiality

            agreement reasonably acceptable to
the Audited Party, and the

            results of the audit will be
deemed “Confidential Information”. Such

            audit shall be conducted in
accordance with generally accepted

            auditing standards and the Auditor
will be entitled to disclose to

            the Auditing Party only whether or
not the Audited Party is in

            compliance and the amount of any
non-compliance, if any, and will be

            precluded from disclosing any
other Confidential Information to the

            Auditing Party without written
consent of the Audited Party. If an

            audit reveals an underpayment,
then the Audited Party will

            immediately make payment to the
Auditing Party in the amount of the

            underpayment [*]. If an audit
reveals an underpayment or

            miscalculation of more than 10%,
then the Audited Party will pay the

            reasonable cost of that audit.
Either party shall only be entitled

            to [*] during the Term, which will
apply to the prior [*] under the

            Agreement. Upon request by the
Auditor, Yahoo shall provide the

            Auditor access to its query logs to confirm compliance with the

            Guaranteed Impressions of this
Agreement.

 

      8.6  
Payment Mechanics. Overture will make payments to Yahoo in U.S.

            dollars via wire transfer into
Yahoo’s main account according to the

            instructions set forth below:

 

            [*]

 

      8.7  
Estimated Yahoo Payment and Guaranteed Fixed Payment Reductions.

 

            (a)   Principles. The principles below convey the shared

                  understanding of the parties
of how economic value is

                  generated and how actions by
the parties can change the rate

                  of economic value creation:

 

                  (1)   [*] is responsible for Impressions as
modeled in this

                        Agreement.

 

                  (2)   [*] is responsible for Coverage as modeled
in this

                        Agreement.

 

                  (3)   [*] is responsible for PPC as modeled in
this

                        Agreement.

 

                        [*] based its PPC model on [*]. [*] may impact PPC
in a

                        number of different
ways (but the parties recognize that

                        such ways may or may
not adversely affect PPC) which

                        will be considered by
the parties in

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

 

25

 

 

EXECUTION                                                          
CONFIDENTIAL

 

                        determining relative
fault in their discussions and in

                        third party
arbitration. These ways include (but are not

                        limited to) by [*].

 

                        The PPC on [*] is one
indicator of the degree to which

                        [*] is achieving the
PPC for which it is responsible.

                        [*].

 

                  (4)   [*] is responsible for CTR as modeled in
this Agreement.

                        [*] based its CTR
model on the [*]. [*] may impact CTR

                        in a number of
different ways (but the parties recognize

                        that such ways may or
may not adversely affect CTR)

                        which will be
considered by the parties in determining

                        relative fault in
their discussions and in third party

                        arbitration. These
ways include (but are not limited to)

                        [*] and [*] may impact
CTR through [*].

 

            (b)   Estimated Yahoo Payment. Once a Measurement Period is

                  triggered, the Estimated
Yahoo Payment and Guaranteed Fixed

                  Payment Adjustment Process
set forth in Exhibit K will be

                  followed. If an adjustment
in the Estimated Yahoo Payment is

                  required, then the following
formula will be used to determine

                  that adjustment:

 

                  [*]

 

            (c)   Credit for Guaranteed Fixed Payment. If the Revenue Share

                  Payment is less than the
Guaranteed Fixed Payment in Quarter

                  X, then Overture will be
credited toward the Guaranteed Fixed

                  Payment in Quarter Y an amount (the “Credit”) = [*]:

 

                  (1)   [*], or

 

                  (2)   [*].

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

 

 

26

 

 

EXECUTION                                                          
CONFIDENTIAL

 

                  If the above calculation
occurs during the final Quarter of

                  the Agreement (inclusive of
any Extension Terms), then the

                  Term of the Agreement will
be extended until the actual

                  Revenue Share Payment is
equal to the Credit. For clarity,

                  [*]. If the parties mutually agree not to extend the Term as

                  set forth herein, then Yahoo
will pay the amount of the Credit

                  to Overture within [*] days
after the expiration of the

                  Agreement.

 

            (d)   Measurement
Period. A Measurement Period is triggered when the

                  [*]. At the time a Measure
Period is triggered, the Parties

                  shall determine a fair
reserve from the Guaranteed Fixed

                  Payment as described in
Section 8.1 above.

                  By way of example, [*].

 

 

            (e)   Adjustment. If, in a Quarter subsequent to a Measurement

                  Period, the Yahoo Revenue
Share exceeds the Estimated Yahoo

                  payment for that Quarter (as
adjusted, if applicable), then

                  Overture will reset the
Estimated Yahoo Payment and the

                  Guaranteed Fixed Payment for
the subsequent Quarter to the

                  level calculated using the
formula in Section 8.7(b) above,

                  subject to the following
exceptions:

 

                  (1)   To the extent that the Guaranteed Fixed
Payment is

                        adjusted upwards [*].

 

                  (2)   The Guaranteed Fixed Payment will not be
adjusted

                        upwards unless the
actual revenue share to Yahoo is

                        greater than or equal
to [*]% of Estimated Yahoo Payment

                        for a given Quarter.

 

      8.8  
Late Payments. Any Guaranteed Fixed Payment or undisputed Revenue

            Share Payment that is paid more
than [*] days late will bear

            interest at the rate of [*]% per
month.

 

      8.9  
[*]

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

 

27

 

 

EXECUTION                                                          
CONFIDENTIAL

 

9.    Impressions.

 

      9.1  
Deliveries. Yahoo will deliver the Guaranteed Impressions for each

            Quarter, except that Yahoo will be
deemed to have delivered the

            Guaranteed Impressions for any
Quarter in which [*] for that

            Quarter. Additionally, if [*],
then Yahoo will be deemed to have

            delivered the Guaranteed
Impressions for that Quarter, regardless of

            the number of Impressions actually
delivered. For clarity, Yahoo

            will continue to deliver
Impressions hereunder, by virtue of

            delivering each and every Yahoo
Search Query to Overture according

            to Section 3.2 above, even if
Yahoo has delivered the Guaranteed

            Impressions for a particular
Quarter. For additional clarity, the

            fact that the Guaranteed
Impressions are deemed delivered hereunder

            will not preclude the parties from
considering Impressions in

            connection with an adjustment
under Section 8.7 above.

 

      9.2  
Remedy, Make-Good. If Yahoo does not deliver the Guaranteed

            Impressions within the applicable
Quarter, then it will “make good”

            the shortfall by extending its
obligations hereunder at the end of

            the Initial Term or the end of the
applicable Extension Term, if

            any, until it delivers the
Guaranteed Impressions.

 

10.   Yahoo’s Option to Extend. Yahoo shall have
two options to extend the Term,

      each of which shall extend the Term by
an additional two or three years,

      as determined by Yahoo. The first option
to extend (“First Option”), if

      exercised by Yahoo, shall extend the
Term for a period commencing on May

      1, 2005 and continuing until either
April 30, 2007 or April 30, 2008 (an

      “Extension Term”), depending on whether
Yahoo chooses the two year option

      or three year option. In order for Yahoo
to exercise the First Option,

      Yahoo must notify Overture in writing
prior to [*] of its desire to

      exercise such option. The second option
to extend (“Second Option”), if

      exercised by Yahoo, shall extend the
Term for a period commencing on the

      date on which the first Extension Term
expires (i.e., either April 30,

      2007 or April 30, 2008) and continuing
for a period of either two or three

      years from

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

 

28

 

 

EXECUTION                                                          
CONFIDENTIAL

 

      the date on which the first Extension
Term expires, depending on whether

      Yahoo chooses the two year option or
three year option. In order for Yahoo

      to exercise the Second Option, Yahoo must have exercised the
First Option

      and Yahoo must notify Overture in
writing prior to the date that is [*]

      prior to the end of the First Option of
its desire to exercise the Second

      Option. All notices of exercise
hereunder must disclose whether Yahoo is

      extending the Term for two years or
three years.

 

11.   Representations and Warranties.

 

      11.1 
Overture Warranties. Overture represents and warrants that it has

            full power and authority to enter
into this Agreement. Overture

            further represents and warrants to
Yahoo that Overture’s total costs

            for credit card charges and bad
debt for the first 9 months of 2001

            was [*]% of amounts earned by Overture
for Bidded Clicks. Bad debt

            for the purpose of this Agreement
consists of matters which Overture

            categorizes in its normal course
of business as uncollectable

            revenues and invoiced revenues
that are not collected. Overture

            uncollectable revenues consists of
the following: credit card fraud;

            adjustments for system and other
errors in billing on a client

            account; adjustments made to
advertiser’s accounts for disputed

            billings; and adjustments [*]
after processing through our normal

            click-through protection filters.
Overture finally represents and

            warrants that, as of the Effective
Date and at all times throughout

            the Term, it has all consents,
approvals, licenses and permissions,

            necessary for Overture to perform
all of its obligations hereunder

            and for Yahoo to exercise all of
its rights hereunder.

 

      11.2 
Yahoo Warranties. Yahoo represents and warrants that it has full

            power and authority to enter into
this Agreement.

 

      11.3 
Disclaimer. EXCEPT AS SET FORTH IN SECTION 13, NEITHER PARTY WILL BE

            RESPONSIBLE FOR ANY CONTENT
PROVIDED BY THIRD PARTIES, INCLUDING BUT

            NOT LIMITED TO ADVERTISERS, OR FOR
ANY THIRD PARTY WEB SITES THAT

            CAN BE LINKED TO OR FROM THAT
PARTY’S WEB SITE. NEITHER PARTY

            NOR SUCH PARTY’S LICENSORS MAKE
ANY OTHER WARRANTY OF ANY KIND,

            WHETHER EXPRESS, IMPLIED, STATUTORY
OR OTHERWISE, INCLUDING BUT NOT

            LIMITED TO WARRANTIES OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR

            USE AND NONINFRINGEMENT.

 

12.   Confidentiality.

 

      12.1 
Definition. “Confidential Information” means any information

            disclosed by either party to the other party during the Term
(and

            any renewals terms), either
directly or indirectly, in writing,

            orally or by inspection of
tangible objects, which is designated as

            “Confidential,” “Proprietary” or
some similar designation. All of

            the terms of this Agreement,
including but not limited to all

            Overture Reports and all Yahoo
Search Query Reports, will be deemed

            “Confidential.” Information
communicated orally will be considered

            Confidential Information if such
information is designated as being

            Confidential Information at the
time of disclosure and confirmed in

            writing as being Confidential
Information within 20 days after the

            initial disclosure. Confidential
Information will not, however,

            include any information that (a)
was publicly known and made

            generally available in the public
domain prior to the time of

            disclosure by the disclosing
party; (b) becomes publicly known and

            made generally available after
disclosure by the disclosing party to

            the receiving party through no
action or inaction of the receiving

            party; (c) is already in the possession
of the receiving party at

            the time of disclosure by the
disclosing party; (d) is obtained by

            the receiving party from a third
party without a breach of such

            third party’s obligations of
confidentiality; or (e) is

            independently developed by the
receiving party without use of or

            reference to the disclosing
party’s Confidential Information.

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

 

29

 

 

EXECUTION                                                          
CONFIDENTIAL

 

      12.2 
Restrictions. Other than the rights expressly granted under Section

            2, the receiving party agrees (a)
not to disclose any Confidential

            Information to any third parties;
(b) not to use any Confidential

            Information for any purposes other
than to exercise its rights or

            perform its obligations under this
Agreement; and (c) to keep the

            Confidential Information
confidential using the same degree of care

            the receiving party uses to
protect its own confidential

            information, as long as it uses at least reasonable care. If
either

            party receives a subpoena or other
validly issued judicial process

            requesting, or is required by a
government agency (e.g., the

            Securities and Exchange
Commission) to disclose, Confidential

            Information of the other party,
then the receiving party will notify

            the disclosing party of such
request and will reasonably cooperate

            to seek confidential treatment or
to obtain an appropriate

            protective order to preserve the
confidentiality of the Confidential

            Information. Notwithstanding the
foregoing, either party may

            disclose following notice to the
other party, pursuant to a

            confidentiality agreement no less
restrictive than the

            confidentiality terms hereof, the
terms of this Agreement and

            performance hereunder to third
parties for the purpose of due

            diligence examinations in the
context of financings or a potential

            Change of Control (as defined in
Section 15.4). All obligations

            under this Section 12.2 will
survive for a period of [*] after

            termination or expiration of the
Agreement.

 

      12.3 
Press Release. Immediately upon execution of the Agreement, the

            parties will jointly issue the
press release attached hereto as

            Exhibit D, the content of which
has been mutually agreed upon by

            both parties. Further, the parties
agree that Overture and Yahoo or

            the applicable Yahoo Affiliate and
Overture Affiliate will jointly

            issue a press release, the timing
of which will be mutually agreed

            upon, relating to any amendment of
this Agreement to incorporate an

            International Opportunity in
accordance with Section 7.4 above.

            Neither party shall issue any
additional press releases in

            connection with this Agreement
without the other party’s prior

            written consent, which will not be
unreasonably withheld. Excluding

            disclosures that are required by
law, neither party will disclose

            any other terms of this Agreement
to any third party via any medium

            without the prior approval of the
other party. When determining

            whether a disclosure is “required
by law,” each party may rely on

            its legal counsels’ advice on such
matters. Notwithstanding the

            foregoing, (a) Overture shall have
the right to notify its

            advertisers and potential
advertisers of the general nature of this

            transaction (including Overture’s
estimate of the increase in

            traffic) pursuant to the general
provisions of Exhibit I in order to

            encourage Overture’s advertisers
to increase their spending with

            Overture and to encourage
potential advertisers to advertise with

            Overture; and (b) both parties
shall be entitled to (i) provide

            additional disclosures containing
any and all information contained

            in any previously agreed upon
press release; and (ii) list the other

            party’s name in advertising and
other materials (provided that such

            language shall not disparage the
other party) according to the other

            party’s then-current brand usage
guidelines, which the other party

            will make available upon request.

 

13.   Indemnification.

 

      13.1 
Overture Indemnification. Overture, at its own expense, will

            indemnify, defend and hold harmless Yahoo and Yahoo Affiliates,

            employees, representatives and
agents from and against any claim,

            demand, action, investigation or
other proceeding, including but not

            limited to all damages, losses,
liabilities, judgments, costs and

            expenses arising therefrom,
brought by any third party against Yahoo

            (collectively, a “Yahoo Claim”) to
the extent that the Yahoo Claim

            is based on, or arises out of an
allegation that Overture’s

            performance hereunder (including
but not limited to Overture’s

            practice of any method under the
Overture Licensed IP by which

            Overture assembles and orders
Overture Results for delivery to Yahoo

            hereunder) or the Licensed Materials violates any
applicable law,

            rule or regulation or infringe the
rights of any third party,

            including but not limited to
intellectual property rights, privacy

            and publicity rights, claims of
defamation, false or deceptive

            advertising claims and consumer
fraud.

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

 

30

 

 

EXECUTION                                                          
CONFIDENTIAL

 

      13.2 
Yahoo Indemnification. Yahoo, at its own expense, will indemnify,

            defend and hold harmless Overture
and Overture Affiliates,

            employees, representatives and
agents from and against any claim,

            demand, action, investigation or
other proceeding, including but not

            limited to all damages, losses, liabilities,
judgments, costs and

            expenses arising therefrom,
brought by any third party against

            Overture (collectively, an
“Overture Claim”) to the extent that the

            Overture Claim is based on, or
arises out of an allegation that

            Yahoo’s performance hereunder or
the Yahoo Marks violate any

            applicable law, rule or regulation
or infringe the rights of any

            third party, including but not
limited to intellectual property

            rights, privacy and publicity
rights, claims of defamation, false or

            deceptive advertising claims and
consumer fraud.

 

      13.3 
Indemnification Procedure. All indemnity obligations arising under

            this Section 13 will be subject to
the following requirements: (a)

            the indemnified party will provide
the indemnifying party with

            prompt written notice of any Yahoo
Claim, in the case that Yahoo is

            the indemnified party, or any
Overture Claim, in the case that

            Overture is the indemnified party, (as applicable, a
“Claim”),

            except that failure to give prompt
notice will not waive any rights

            of the indemnified party to the
extent that the rights of

            indemnifying party are not
materially prejudiced thereby; (b) the

            indemnified party will permit the
indemnifying party to assume and

            control the defense of the Claim
upon the indemnifying party’s

            written acknowledgment of its
obligation to indemnify; (c) upon the

            indemnifying party’s written
request, and at no expense to the

            indemnified party, the indemnified
party will provide the

            indemnifying party with all
available information and assistance

            reasonably necessary for the indemnifying party to defend the
Claim.

            The indemnifying party will not
enter into any settlement or

            compromise of the Claim (except a
settlement or compromise that (i)

            is full and final with respect to
the Claim; (ii) does not obligate

            the indemnified party to act or to
refrain from acting in any way;

            (iii) does not contain an
admission of liability on the part of the

            indemnified party; (iv) dismisses
the Claim with prejudice; and (v)

            is subject to confidentiality,
such that no party may disclose the

            terms of the settlement or
compromise without the indemnified

            party’s prior written consent)
without the indemnified party’s prior

            written approval, which shall not
be unreasonably withheld.

 

14.   Limitation of Liability. EXCEPT FOR
INDEMNITY OBLIGATIONS ARISING UNDER

      SECTION 13 ABOVE, ANY BREACH OF SECTION
12.2 (CONFIDENTIALITY —

      RESTRICTIONS) OR ANY WILLFUL, UNCURED
AND MATERIAL BREACH OF THIS

      AGREEMENT, UNDER NO CIRCUMSTANCES WILL
EITHER PARTY OR ITS AFFILIATES BE

      LIABLE TO THE OTHER PARTY OR ITS
AFFILIATES FOR ANY INDIRECT, INCIDENTAL,

      CONSEQUENTIAL, SPECIAL OR EXEMPLARY
DAMAGES ARISING FROM THE SUBJECT

      MATTER OF THIS AGREEMENT, INCLUDING BUT
NOT LIMITED TO LOSS OF DATA,

      BUSINESS, PROFITS OR GOODWILL AND COSTS
OF PROCUREMENT OF SUBSTITUTE GOODS

      OR SERVICES, REGARDLESS OF THE LEGAL
THEORIES AND EVEN IF THAT PARTY HAS

      BEEN AWARE OR ADVISED OF THE POSSIBILITY
OF SUCH DAMAGES. IN NO EVENT WILL

      YAHOO’S AGGREGATE, CUMMULATIVE LIABILITY
TO OVERTURE UNDER THIS AGREEMENT

      EXCEED THE SUM OF $[*] AND ANY AMOUNTS
CREDITABLE OR REFUNDABLE TO

      OVERTURE UNDER THIS AGREEMENT PURSUANT
TO SECTION 8, EXCEPT THAT YAHOO’S

      AGGREGATE, CUMMULATIVE LIABILITY TO
OVERTURE UNDER THIS AGREEMENT WILL NOT

      EXCEED THE SUM OF $[*] AND ANY AMOUNTS
CREDITABLE OR REFUNDABLE TO

      OVERTURE UNDER THIS AGREEMENT PURSUANT
TO SECTION 8 IN THE EVENT OF

      YAHOO’S WILLFUL, EFFICIENT BREACH OF
THIS AGREEMENT. IN NO EVENT WILL

      OVERTURE’S AGGREGATE, CUMMULATIVE
LIABILITY TO YAHOO UNDER THIS AGREEMENT

      EXCEED THE SUM OF $[*] AND ANY AMOUNTS
PAST DUE UNDER THIS AGREEMENT

      PURSUANT TO SECTION 8, EXCEPT THAT
OVERTURE’S AGGREGATE, CUMMULATIVE

      LIABILITY TO YAHOO UNDER THIS AGREEMENT
WILL NOT EXCEED THE SUM OF $[*]

      AND ANY AMOUNTS PAST DUE UNDER THIS
AGREEMENT PURSUANT TO SECTION 8 IN THE

      EVENT OF OVERTURE’S WILLFUL, EFFICIENT
BREACH OF THIS AGREEMENT.

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

 

 

31

 

 

EXECUTION                                                          
CONFIDENTIAL

 

15.   Term.

 

      15.1 
Term. This Agreement will become effective as of the Effective Date

            and, unless terminated or renewed as
set forth herein, will remain

            effective for the Term.

 

      15.2 
Termination. If either party breaches this Agreement in any material

            respect, and that party does not
cure its breach within 30 days

            after written notice by the
non-breaching party of its breach, then

            the non-breaching party will be
entitled to terminate this Agreement

            immediately upon written notice to
the breaching party after failure

            to cure within those 30 days.

 

      15.3 
Termination for Cause. Following the first year of this Agreement,

            Yahoo will be entitled to
terminate this Agreement upon [*] prior

            written notice (the “Termination
Notice”) to Overture if the [*] is

            less than [*] for [*] consecutive
Quarters; provided that the reason

            the [*] is less than [*] must be
determined to be Overture’s

            responsibility by applying the
principles and provisions described

            in Section 8.7 above. Upon receipt
of the Termination Notice,

            Overture shall have the right to
increase the Guaranteed Fixed

            Payment from its current level of
approximately [*] to [*] in which

            case the Agreement shall continue
as if no Termination Notice had

            been delivered.

 

      15.4 
Termination for Change of Control. For purposes of this provision,

            “Change of Control” means (a) the
direct or indirect acquisition

            (except for transactions described
in clause (b) of this paragraph

            below), whether in one or a series
of transactions by any person (as

            such term is used in Section 13(d)
and Section 14(d)(2) of the

            Securities Exchange Act of 1934,
as amended (the “Exchange Act”)),

            or related persons (such person or persons, an “Acquirer”)

            constituting a group (as such term
is used in Rule 13d-5 under the

            Exchange Act), other than in all
cases Yahoo and/or controlled

            affiliates of, or an entity that
controls 50% or more of, Yahoo, of

            (i) beneficial ownership (as
defined in the Exchange Act) of issued

            and outstanding shares of stock of
Overture, the result of which

            acquisition is that such person or
such group possesses in excess of

            50% of the combined voting power
of all then-issued and outstanding

            stock of Overture, or (ii) the
power to elect, appoint, or cause the

            election or appointment of at
least a majority of the members of the

            board of directors of Overture (or
such other governing body in the

            event Overture or any successor
entity is not a corporation); (b) a

            merger or consolidation of
Overture with a person or a direct or

            indirect subsidiary of such person, other than in all cases
Yahoo

            and/or controlled affiliates of,
or an entity that controls 50% or

            more of, Yahoo, provided that the
result of such merger or

            consolidation, whether in one or a
series of related transactions,

            is that the holders of the
outstanding voting stock of Overture

            immediately prior to such
consummation do not possess, whether

            directly or indirectly,
immediately after the consummation of such

            merger or consolidation, in excess
of 50% of the combined voting

            power of all then-issued and
outstanding stock of the merged or

            consolidated person, its direct or
indirect parent, or the surviving

            person of such merger or consolidation; (c) the
stockholders of

            Overture approve a plan of
complete liquidation of Overture; or (d)

            a sale or disposition, whether in
one or a series of transactions,

            of all or substantially all of
Overture’s assets. Overture will

            provide Yahoo with prompt written
notice following (or at Overture’s

            election, up to [*] days prior to)
(i) the approval by the

            Overture board of directors of a
transaction that is or is intended

            to be a Change in Control or (ii)
the public announcement (including

            without limitation by means of a
filing pursuant to Section 13D of

            the Exchange Act) by any third
party of its intention to effect a

            Change in Control of Overture,
including without limitation the

            initiation of a tender offer,
proxy fight, consent solicitation or

            other means designed or intended
to effect a Change in Control of

            Overture. Upon receipt of such
notice from Overture, Yahoo will be

            entitled to the right (the “Change
of Control Right”) to elect in

            writing (the “Change of Control
Election”) to Overture, within [*]

            days of receipt of such notice,
either the “Continue on Revised

            Financial Terms” option set forth
in subpart (a) immediately below

            or the “Termination; Termination
Fee” option set forth in subpart

            (b)

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

 

 

32

 

 

EXECUTION                                                  
        CONFIDENTIAL

 

            immediately below. Notwithstanding
anything to the contrary herein,

            once a Change of Control has been
consummated, Yahoo shall have no

            further rights under this Section
15.4 in respect of a subsequent

            Change of Control , if any, that
may be consummated. The following

            subparts (a) and (b) are the two
choices, one of which Yahoo may

            elect pursuant to a Change of
Control Election (it being understood

            that if Yahoo does not make an
election prior to the end of such

            [*] day period, then it shall be
deemed to have elected the option

            set forth in subpart (a) below):

 

            (a)   Continue on Revised Financial Terms. Yahoo elects to maintain

                  the Agreement under its
terms and conditions, subject to the

                  following adjustment, to
become effective immediately prior to

                  the consummation of the
Change of Control: Overture will

                  increase the percentage at which it makes Revenue Share

                  Payments hereunder by (1)
[*]% (e.g., in year 3 of the Initial

                  Term, the revenue share
percentage would increase from [*]% to

                  [*]%) to the extent that the
Acquirer is [*] or controlled by

                  one of such entities or any
successor to substantially all of

                  the current business of any
of such entities (each, a

                  “Designated Company”); or
(2) [*]% to the extent that the

                  Acquirer is any entity other
than a Designated Company. The

                  term of the increased
Revenue Share Payment percentages

                  pursuant to this subpart (a)
shall continue from immediately

                  prior to the consummation of the Change of Control
until the

                  later of (x) one year
following consummation of the Change of

                  Control, and (y) the
expiration of the Initial Term (if the

                  Change of Control is
consummated during the Initial Term) or

                  the applicable Extension
Term (if the Change of Control is

                  consummated during an
Extension Term). Notwithstanding the

                  foregoing sentence, to the
extent that either (i) the Change

                  of Control occurs after
January 1, 2005 and Yahoo has not

                  provided Overture with
written notice of Yahoo’s intent to

                  exercise the First Option
according to Section 10 above; or

                  (ii) the Change of Control
occurs after the date that is six

                  months prior to the end of
the First Option and Yahoo has not

                  provided Overture with
written notice of Yahoo’s intent to

                  exercise the Second Option according to Section 10 above, the

                  term of the increased
Revenue Share Payment percentages

                  pursuant to this subpart (a)
shall continue from immediately

                  prior to the consummation of
the Change of Control until the

                  expiration of the
then-current Term (i.e., the Initial Term in

                  the case of clause (i) above
and the first Extension Term in

                  the case of clause (ii)
above).

 

            (b)   Termination;
Termination Fee. Yahoo elects to terminate the

                  Agreement, in which case the
following will become effective

                  immediately prior to the
consummation of the Change of

                  Control: the Agreement will
terminate and Overture will pay to

                  Yahoo a termination fee of
(i) if Acquirer is a Designated

                  Company, then (A)
$10,000,000 in cash, payable promptly upon

                  consummation of a Change of
Control; and (B) 3% of the

                  outstanding shares of
Overture Common Stock, on a fully

                  diluted basis immediately
prior to consummation of the Change

                  of Control (calculated on
the treasury stock method (utilizing

                  the average closing trading
price of shares of Overture for

                  the 10 trading days ending
on the day that is two trading days

                  prior to but not including
the date of consummation of the

                  Change of Control (the “Ten-Day Average Price”))) which,

                  subject to applicable
governmental regulatory approvals and

                  the expiration of applicable
waiting periods, shall be issued

                  immediately prior to
consummation of a Change of Control; or

                  (ii) if Acquirer is not a
Designated Company, then (A)

                  $5,000,000 in cash, payable
promptly upon consummation of a

                  Change of Control; and (B)
2% of the outstanding shares of

                  Overture Common Stock, on a
fully diluted basis, immediately

                  prior to consummation of the
Change of Control (calculated on

                  the treasury stock method as
aforesaid) which, subject to

                  applicable governmental regulatory approvals and the

                  expiration of applicable
waiting periods, shall be issued

                  immediately prior to
consummation of a Change of Control (the

                  shares referred to in
clauses (i)(B) and (ii)(B), the

                  “Overture Shares”).
Notwithstanding the foregoing, if the

                  Change of Control is the
type described in clause (a) of the

                  first paragraph of this
Section 15.4, then the obligation of

                  Overture to issue Overture
Shares and make payments to Yahoo

                  pursuant to this paragraph
shall take effect as promptly as

                  practicable following the
Change of Control, rather than

                  immediately prior to or upon the Change of Control. In

                  connection with the issuance
of the Overture Shares, the

                  parties will cooperate in
the filing of any

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

 

 

33

 

 

EXECUTION                                                          
CONFIDENTIAL

 

                  applicable regulatory filing
pursuant to the Hart-Scott-Rodino

                  Antitrust Improvements Act
of 1976, as amended (the “HSR

                  Act”). Overture and Yahoo
will share equally any applicable

                  filing fee required in connection with any such HSR Filing.

                  The parties will retain and
pay their own legal counsel and

                  other expenses, if any, in
connection with such filing. The

                  parties also will use all
reasonable efforts to file any

                  applicable regulatory filing
promptly, so as to permit the

                  timely issuance of the
Overture Shares. In addition, if the

                  Change of Control is the
type described in clause (a), (c) or

                  (d) of the first paragraph
of this Section 15.4 (a “Non-Merger

                  Change of Control”), unless
Yahoo can trade the Overture

                  Shares in the public market
without an effective registration

                  statement, Overture will use all reasonable efforts to
file

                  and have the SEC promptly
declare effective a registration

                  statement pursuant to which
the Overture Shares will be fully

                  registered for resale by
Yahoo under the Securities Act of

                  1933, as amended, and any
applicable state securities law;

                  following effectiveness of
the registration statement, subject

                  to applicable law. Overture
will take all reasonable actions

                  to ensure Yahoo’s ability to
dispose of the Overture Shares as

                  promptly as desired by
Yahoo. If the terms of the issuance of

                  Overture Shares are publicly
disclosed by Overture, upon

                  Yahoo’s request, Overture
shall take reasonable steps to apply

                  for and obtain a permit for
the issuance of the Overture

                  Shares to Yahoo from the
California Department of Corporations

                  in the event of a Non-Merger Change of Control.

                  Notwithstanding anything to
the contrary herein, in lieu of

                  issuing Overture Shares to
Yahoo pursuant to this subpart (b),

                  Overture may elect, in its
sole discretion, instead to pay

                  Yahoo cash equal to the
market value of such Overture Shares

                  based on the Ten-Day Average
Price.

 

      15.5 
Effect of Termination or Expiration. Upon termination or expiration

            of this Agreement for any reason, (a) except as set forth
in Section

            2.5 above, all licensed rights
granted herein will terminate

            immediately; (b) Yahoo will
immediately cease use of the Licensed

            Materials; (c) Overture will
immediately cease use of the Yahoo

            Search Query Reports other than as
contemplated herein; (d) Yahoo

            will cease all use of all Overture
Reports other than as

            contemplated herein; and (e)
Sections 1, 2.2 (with respect to the

            covenants to destroy/certify
destruction of information only), 2.3

            2.5, 8.1 and 8.2 (with respect to
payments accrued during the Term),

            8.3, 8.7 (with respect to credits
accrued during the Term), 8.8,

           
9.2, 12-14, 15.5 and 16 of this Agreement will survive. The parties

            further agree that, in the event
of an early termination under this

            Agreement, each party will be
entitled to any fees due or owed to it

            by the other party (e.g., Overture
will be entitled to a pro rata

            refund of the applicable
Guaranteed Fixed Payment in the event of a

            proper termination of the
Agreement by Overture). The remedies

            stated herein are cumulative and
in addition to any remedies

            available at law or equity, and
nothing contained herein shall be

            deemed to limit either party’s
right to pursue any and all such

            remedies.

 

16.   Miscellaneous.

 

      16.1 
Notice. Any notice required for or permitted by this Agreement must

            be in writing and delivered by (a)
personal delivery; (b)

            nationally-recognized overnight
courier; (c) certified or registered

            mail, return receipt requested; or
(d) email, telecopy or facsimile

            transmission, confirmed by
concurrent notice delivered by one of the

            means set forth in subsections (a)
— (c) above. All notices will be

            deemed delivered upon receipt by
the receiving party. All notices

            must be sent (1) to Yahoo at 701
First Avenue, Sunnyvale, California

            94089, Attn: Vice President, North
American Operations, with a copy

            to its General Counsel; or (2) to
Overture at 74 North Pasadena

            Avenue, third floor, Pasadena, California 91103, Attn: Vice

            President Business Affairs. Each
party will be entitled to change

            its address for purposes of this
Section 16.1 by providing written

            notice to the other party in
accordance herewith.

 

      16.2 
Assignment; Binding Effect. This Agreement will be binding upon and

            inure to the benefit of the
parties hereto and their permitted

            successors and assigns, as set
forth herein and Section 15.4

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

 

34

 

 

EXECUTION                                                           CONFIDENTIAL

 

            above. Neither Overture nor Yahoo
may assign this Agreement, or any

            of its rights hereunder, or
delegate any of its duties hereunder

            without the prior written consent
of the other party.

            Notwithstanding the foregoing,
either party may, without the prior

            written consent of the other
party, assign this Agreement to any

            entity that succeeds to all or
substantially all of the assets and

            liabilities of that assigning
party. If an assignment or delegation

            is made by Overture according to
Section 15.4 above, then the terms

            and conditions set forth in that
Section 15.4, including but not

            limited to all applicable notice periods and remedies, will
apply to

            that assignment or delegation. If
an assignment or delegation is

            made by Yahoo in connection with
the sale of all or substantially

            all of its assets and liabilities,
and either (a) the assignee is an

            Overture Restricted Company; or
(b) Overture reasonably determines

            that the assignee does not have
sufficient capital or assets to

            perform its obligations under this
Agreement, then Overture will be

            entitled to approve the assignment
or to terminate this Agreement

            within 30 days after the date on
which the assignee succeeds to all

            or substantially all of Yahoo’s
assets and liabilities. If Overture

            approves the assignment, then this
Agreement will be binding upon

            and inure to the benefit of
Yahoo’s successor or assign.

 

      16.3 
No Third Party Beneficiaries. All rights and obligations of each

            party hereunder are personal to
that party. This Agreement is not

            intended to benefit, nor shall it
be deemed to give rise to, any

            rights in any third party.

 

      16.4 
Governing Law; Attorneys’ Fees. This Agreement will be governed and

            construed, to the extent
applicable, in accordance with United

            States law, and otherwise, in
accordance with California law,

            without regard to conflict of law
principles. In the event of any

            material breach by either party of
any provision of this Agreement,

            the non-breaching party will be
entitled to suspend its performance

            hereunder until the breach is
cured. The prevailing party in any

            action arising hereunder will be entitled
to recover reasonable

            expenses, including but not
limited to attorneys’ fees.

 

      16.5 
Dispute Resolution.

 

            (a)   Escalation Events. If the parties cannot agree on disputes

                  arising from the
determination of a reasonable royalty, the

                  calculation of Impressions,
revisions to the Service Level

                  Agreement according to
Section 4.3(b), or any other subsequent

                  dialogue provided for under
this Agreement, then the dispute

                  will be subject to
escalation (an “Escalation Event”). An

                  Escalation Event first will
be discussed in good faith by the

                  parties at a mutually
convenient location in an attempt to

                  resolve the Escalation Event amicably, in whole or in part.
A

                  senior director or vice
president of business development with

                  decision-making authority
(“Senior Business People”) will

                  participate in these
discussions. If the Senior Business

                  People cannot resolve the
Escalation Event within [*] days,

                  then each party will
designate a senior executive with

                  decision-making authority
(“Senior Executive”) to meet and

                  confer in an effort to
resolve the Escalation Event. If the

                  Senior Executives cannot
resolve the Escalation Event within

                  [*] days, then the chief
executive officers of the respective

                  parties (“CEO”) will meet and confer in an effort
to resolve

                  the Escalation Event. Any
decisions and resolutions of the

                  Senior Business People,
Senior Executives or CEOs will be

                  final and binding on the
parties once reduced to writing and

                  signed by the parties. If
the procedures outlined under this

                  Section 16.5(a) fail to
resolve an Escalation Event, then the

                  parties hereby agree to submit
the issue to binding

                  arbitration pursuant to
Section 16.5(b), except as set forth

                  in Section 2.5(g) [?].

 

            (b)   Arbitration, Equitable Relief. All controversies, disputes,

                  differences or claims
between the parties arising out of or

                  relating to this Agreement
(each, a “Dispute”), including but

                  not limited to any
unresolved Escalation Events and any

                  question concerning the
existence, validity, termination,

                  interpretation, performance
or enforcement of this Agreement,

                  will be finally and
exclusively settled by binding arbitration

                  in accordance with the
following:

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

 

35

 

 

EXECUTION                                                           CONFIDENTIAL

 

                  (1)   Submission; Rules. Either party will be
entitled to

                        submit a Dispute to
JAMS for binding arbitration in San

                        Francisco, California
or Los Angeles, California by

                        providing written
notice to the other party and to JAMS.

                        Discovery will be
conducted in accordance with Rules 26

                        through 36 and Rule 45
of the Federal Rules of Civil

                        Procedure.

 

                  (2)   Appointment of Panel. The parties will
assemble a panel

                        of 3 arbitrators (the
“Panel”) as follows: Each party

                        will nominate one
arbitrator, and those 2 arbitrators

                        will select a
chairperson of the Panel. Each arbitrator

                        on the Panel must have
at least 5 years senior

                        management or
consulting experience in the on-line

                        services industry and must not have been employed by or

                        a supplier to either
party during the preceding 2 years.

 

                  (3)   Timing. The parties will undertake
commercially

                        reasonable efforts to
conclude any arbitral proceedings

                        within 180 calendar
days from the date on which the last

                        arbitrator accepts his
or her appointment; provided,

                        however, that if the
arbitral award is not issued within

                        such 180 calendar
days, then the arbitration proceedings

                        will continue until an
award is made.

 

                  (4)   Legal and Equitable Remedies. Neither party
will be

                        entitled to file a legal action against the other party

                        until the arbitration
is concluded, but nothing herein

                        prohibits a party from
requesting temporary injunctive

                        relief from any court
of competent jurisdiction. Either

                        party may at any time
apply to a court of competent

                        jurisdiction for
equitable relief.

 

                  (5)   Decision. Any decision or award of the
Panel will be

                        based solely on the
terms of this Agreement and the

                        facts and legal
arguments presented at the hearing and

                        any documents
presented in accordance with the discovery

                        rules. The Panel will issue a written decision that sets

                        forth its rationale in
reasonable detail. Any award

                        rendered by the Panel
may be enforced by any court of

                        competent jurisdiction.
The Panel will have the

                        authority to award
specific performance or an injunction

                        to the prevailing
party, or to make an award of direct

                        damages, but will have
no right to grant special,

                        punitive or exemplary
damages, or indirect or

                        consequential damages
unless such amounts are allowed

                        under this Agreement.

 

      16.6 
Independent Contractors. The parties are independent contractors

            with respect to the subject matter
of this Agreement. This Agreement

            will not be construed to create a
joint venture or partnership

            between the parties. Neither party
will be deemed to be an employee,

            agent, partner or legal
representative of the other party for any

            purpose, and neither party will
have any right, power or authority

            to create any obligation or
responsibility on behalf of the other

            party.

 

      16.7 
Force Majeure. Neither party will be liable hereunder (and their

            performance shall be excused under
this Agreement) by reason of any

            failure or delay in the
performance of its obligations (except for

            the payment of money) on account of strikes, shortages, riots,

            insurrection, terrorism, fires,
flood, storm, explosions,

            earthquakes, Internet outages
beyond the reasonable control of such

            party, acts of God, war, governmental
action, or any other cause

            that is beyond the reasonable
control of such party.

 

      16.8 
Compliance with Law. Each party will be responsible for compliance

            with all applicable laws, rules
and regulations, if any, related to

            the performance of its obligations
under this Agreement.

 

      16.9 
Entire Agreement. This Agreement, including all exhibits attached

            hereto, constitutes the entire
agreement between the parties with

            respect to the subject matter
hereof and supersedes any prior or

            contemporaneous proposals, whether
written or oral, with respect to

            the subject matter hereof. Any
amendments to this Agreement must be

            in writing and executed by an officer
of each party.

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

 

36

 

 

EXECUTION                                                          
CONFIDENTIAL

 

      16.10 Counterparts. This Agreement may
be entered into by each party in

            separate counterparts, which will
constitute one fully executed

            Agreement upon execution by both
Yahoo and Overture.

 

      16.11 Severability. If any provision of
this Agreement is held or made

            invalid or unenforceable for any
reason, this Agreement will be

            construed as if that provision had
never been contained herein, but

            considering the original
intentions of the parties.

 

      16.12 Waiver. The terms or covenants of
this Agreement may be waived only

            by a written instrument executed
by a duly authorized representative

            of the party waiving compliance. The failure of either party
at any

            time or times to require
performance of any provision hereof will in

            no manner affect the right at a
later time to enforce the same. No

            waiver by either party of the
breach of any term or covenant

            contained in this Agreement,
whether by conduct or otherwise, in any

            one or more instances, will be
deemed to be, or construed as, a

            further or continuing waiver of
any such breach or a waiver of the

            breach of any other term or
covenant contained in this Agreement.

 

      16.13 Section Headings. The section
headings contained herein are for

            reference purposes only and do not
in any way affect the meaning or

            interpretation of this Agreement.

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

                  [REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK]

 

 

37

 

 

EXECUTION                                                          
CONFIDENTIAL

 

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

 

	
  “Yahoo”

  	
  “OVERTURE”

  
	
  YAHOO!
  INC., A DELAWARE CORPORATION

  	
  OVERTURE
  SERVICES, INC., A

  
	
   

  	
   

  	
   

  	
  DELAWARE
  CORPORATION

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Greg Coleman

  	
   

  	
  By:

  	
  /s/
  Todd Tappin

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
  Todd
  Tappin

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
  CFO

  

 

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

 

38

 

EXECUTION

 

EXHIBIT A

 

SERVICE LEVEL AGREEMENT

 

        The purpose of this Service Level
Agreement (the “SLA”) is to describe the service level commitments that the
parties are obligated to deliver under this Agreement. The sections are as
follows:

 

        I.      Definitions

 

        II.     Contacts

 

        III.    Support Procedures

 

        IV.     Operational Metrics

 

                I.      DEFINITIONS

 

A.      Definitions.

 

        (i)     Aggregate Response Time. This value is the sum of the Internal

                Overture Response Time and the
Network Response Time.

        (ii)    Availability. The percentage of the total properly formatted

                Yahoo Search Queries (as
defined in the Agreement) for which

                Overture responds (either with
a “no results delivered” response

                or a response in the form of
properly formatted Overture

                Results, regardless of whether
delivered within the Critical

                Threshold or not (i.e.,
Timeouts are irrelevant to the

                calculation of Availability to
the extent that a response in the

                form set forth herein is
ultimately delivered by Overture)).

                Load balancing must be in
effect for the Availability terms to

                be applicable. Catastrophic
Problem. A Problem that persists for

                a period of [*] or more during
Peak Hours and [*] or more during

                Non-Peak Hours.

 

        (iii)   Implementation Change. A request by Yahoo to incorporate a new

                feature or enhance an existing
feature of the Overture Services

                provided to Yahoo under the
Agreement to which this SLA is

                attached as an Exhibit.

 

        (iv)    ICMP. An Internet Control Message Protocol used for, among
other

                things, determining whether a
particular computer is attached to

                the Internet and working
properly.

 

        (v)     Internal Overture Response Time. The period of time beginning
at

                the time of Overture’s receipt of a Yahoo Search Query
from

                Yahoo to completion of send by
Overture, as measured by

                Overture’s NOC.

 

        (vi)    Minor Problem. A cosmetic display issue which allows the major

                elements of Overture results
to display, but causes textual

                irregularities (e.g., an
umlaut not displaying properly). For

                clarity, [*].

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

 

                                                                                                           
Confidential

 

 

Page 1

 

        (vii)   Network Response Time. The period of time required for an ICMP

                ping packet to complete a
round trip cycle between Yahoo and

                Overture. Network Response
Time will be measured from each

                party’s data center to the
other party’s data center.

 

        (viii)  NOC. Network Operations Center.

 

        (ix)    Non-Peak Hours. Non-Peak Hours shall mean all hours outside of

                Peak Hours.

 

        (x)     Normal Maintenance. Ongoing scheduled maintenance.

 

        (xi)    Peak Hours. Peak Hours shall mean [*].

 

        (xii)   Problem. An error, bug, incompatibility or malfunction, which

                renders the Overture Results
unavailable to or unuseable by

                Yahoo for [*] consecutive [*]
or more. A “Problem” can include,

                but is not limited to,
instances of [*], but does not include

                circumstances where Yahoo or
Overture is not available to the

                Internet at large due to a force majeure event (as described in

                Section 16.7 of the Agreement
to which this document is

                attached).

 

        (xiii)  Problem Resolution. A correction, patch, fix, alteration or

                Temporary Workaround that minimizes the effect of a Problem,

                Severe Problem, or
Catastrophic Problem restoring the system to

                the levels set forth in this
SLA within the response times set

                forth in this SLA.

 

        (xiv)   Results Set. A Results Set will consist of the number of

                Overture Results required to
be displayed pursuant to the

                Agreement, or a “No Results
Delivered” notification, if

                applicable, which Results Set
is properly formatted in a

                mutually agreed XML format.

 

        (xv)    Severe Problem. A Problem that persists for a period of [*] or

                more during Peak Hours and [*]
or more during Non-Peak Hours.

 

        (xvi) 
 Temporary Workaround. A
temporary technical solution that

                restores the system to the
levels set forth in this SLA,

                although there may be ongoing
or additional measures until a

                permanent solution can be
implemented.

 

        (xvii)  Timeouts. A timeout refers to an action taken by Yahoo

                production servers when
Overture Results are not received within

                the maximum Aggregate Response
Time referred to as the “Critical

                Threshold” in Article IV, Section E below. This action will

                result in Overture Results not
being displayed, but may or may

                not constitute an “Impression”
under the Agreement.

 

        (xviii) TTL. Time-to-live settings that
determine the time that the

                Overture entries remain in the
Yahoo DNS cache.

 

        (xix)   Unresolved Catastrophic Problem. A Catastrophic Problem that

                does not have a Problem
Resolution within a total period of [*]

                or more during Peak Hours ([*]) and [*] or more during
Non-Peak

                Hours.

 

        (xx)    Yahoo Technical Lapse. A Yahoo Technical Lapse means a set of

                technical circumstances within
Yahoo’s reasonable control

                whereby (i) a properly formatted set of Overture
Results are

                delivered to Yahoo in response
to a properly formatted Yahoo

                Search Query within the
Critical Threshold established in

                Article IV, Section E below,
but are not displayed as a Yahoo

                Search Results Page or (ii)
Yahoo is unable to receive a

                properly formatted set of
Overture Results and does not transmit

                properly formatted Yahoo
Search Queries to Overture.

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

                                                                                                            Confidential

 

 

Page 2

 

        II.     CONTACT INFORMATION

 

A.      Contact Information.

 

        (i)     Overture Support Personnel.

 

        [*]

 

        (ii) 
  Yahoo Support Personnel.

 

        [*]

 

        B. Updates. Either party may change
its designated support personnel at its discretion with reasonable written
notice to the other party. Each party’s preliminary contact personnel are as
shown in Article II, Section A.

 

        III.    SUPPORT PROCEDURES

 

A.      Support Procedures.

 

        (i)     All Problems, Severe Problems, and Catastrophic Problems

                reported by either party must
be submitted to the other party,

                as appropriate, via the
technical support telephone number, via

                email or pager to the contact
information set forth in the

                Support Table, and each such
Problem, Severe Problem, and

                Catastrophic Problem will be
given a unique reference number by

                the receiving party.

 

        (ii)    The responsible party shall inform the other party’s technical

                support personnel of ongoing
efforts to provide a Problem

                Resolution concerning
Problems, Severe Problems, and

                Catastrophic Problems at least
once per day, or more frequently

                if such is provided for in the
Support Table until such Problem

                Resolution is complete.

 

*  Certain information on this page has been
omitted and filed separately with

   the Commission. Confidential treatment has
been requested with respect

   to the omitted portions.

 

 

                                                                                               
   Confidential

 

Page 3

 

        (iii)   In the event that there is a Minor Problem, Problem, Severe

                Problem or Catastrophic
Problem during Non-Peak Hours, the

                reporting party shall contact
the other party’s NOC via customer

                support pager at the email
pager address provided herein for

                such purpose.

 

B.      Overture Response. Upon receiving
notification from Yahoo, Overture

        shall promptly determine whether the
request is a Minor Problem, a

        Problem, a Severe Problem, or a
Catastrophic Problem or none of the

        above according to the definitions set
forth above. If it is determined

        by the parties that the issue is
Overture’s responsibility, then

        Overture will respond to the request
within the response times set forth

        in this SLA and shall use all
commercially reasonable efforts to resolve

        the Minor Problem, Problem, Severe
Problem or Catastrophic Problem in

        accordance with this SLA. If the
parties agree that a Minor Problem,

        Problem, Severe Problem, or
Catastrophic Problem is not Overture’s

        responsibility, then Overture shall
reasonably cooperate with Yahoo to

        provide a Problem Resolution.

 

C.      Yahoo Response. Upon receiving
notification from Overture, Yahoo shall

        promptly determine whether the request
is a Minor Problem, Problem, a

        Severe Problem, or a Catastrophic
Problem or none of the above,

        according to the definitions set forth above. If it is
determined by the

        parties that the issue is Yahoo’s
responsibility, then Yahoo will

        respond to the request within the
response times set forth in this SLA

        and shall use all commercially
reasonable efforts to resolve the Minor

        Problem, Problem, Severe Problem, or
Catastrophic Problem in accordance

        with this SLA. If the parties agree
that a Minor Problem, Problem,

        Severe Problem, or a Catastrophic
Problem is not Yahoo’s responsibility,

        then Yahoo shall reasonably cooperate
with Overture to provide a Problem

        Resolution.

 

D.      Indeterminate Responsibility. If the
parties disagree which party bears

        responsibility for a Problem, Severe
Problem, or Catastrophic Problem

        then both parties will form a
resolution team comprised of at least a

        technical contact representing each
party. Any continuing disagreement

        regarding responsibility, or any
failure by either party to effect a

        Problem Resolution within the times
indicated will result in escalation

        to the Primary business contact as
identified in Article II above and as

        set forth in Section E below.

 

                SUPPORT TABLE

 

 

	
  RECEIPT OF NOTICE

  	
   

  	
  TYPE OF PROBLEM REPORTED

  	
   

  	
  RESPONSE TIME

  	
   

  	
  TIME FOR IMPLEMENTATION CHANGE AND
  REPORTING OBLIGATIONS

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  During
  business hours or other times.

  	
   

  	
  Minor
  Problem

  	
   

  	
  Initial
  response to request within [*] during business hours and [*] after business hours
  begins if reported outside of business hours.

  	
   

  	
  Responsible
  party will provide notifications [*] per business day until Problem
  Resolution.  All such notifications
  will be to the other party’s NOC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Problem
  Resolution or plan for Problem Resolution by next business day.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  During
  normal business hours (8:00 a.m. — 6:00 p.m.

  	
   

  	
  Problem

  	
   

  	
  Initial
  response to request within [*]

  	
   

  	
  Responsible
  party will provide a proposed Problem Resolution.  If the Problem

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

*  Certain information on this page has been
omitted and filed separately with

   the Commission. Confidential treatment has
been requested with respect

   to the omitted portions.

 

 

                                                                                      
                                                                  Confidential

 

Page 4

 

 

 

 

	
  PST

  Monday-Friday)

  	
   

  	
   

  	
   

  	
  [*].

  

  Problem Resolution or plan for Problem Resolution within [*].

  	
   

  	
  Resolution
  is not immediate, the responsible party will provide [*] on the first day of
  occurrence and then daily updates. All such notifications and updates will be
  sent to the other party’s NOC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  During
  normal business hours (8:00 a.m. — 6:00 p.m. PST Monday-Friday)

  	
   

  	
  Severe
  Problem

  	
   

  	
  Initial
  response to request within [*].

  

  Problem Resolution or plan for Problem Resolution within [*].

  	
   

  	
  Responsible
  party will provide a proposed Problem Resolution to address the Severe
  Problem. If the Problem Resolution is not immediate, the responsible party
  will provide notifications every [*] hours on the first day of occurrence and
  then daily updates thereafter.  All
  such notifications and updates will be to the other party’s NOC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  During
  normal business hours (8:00 a.m. — 6:00 p.m. PST Monday-Friday)

  	
   

  	
  Catastrophic
  Problem

  	
   

  	
  Initial
  response to request within [*].

  

  Problem Resolution or plan for Problem Resolution within [*].

  	
   

  	
  Responsible
  party will provide a proposed Problem Resolution to address the Catastrophic
  Problem. A Catastrophic Problem will result in escalation to the Primary
  business contact as identified in Article II above and as set forth in
  Section E below.  If the Problem
  Resolution is not immediate, the responsible party will provide notifications
  every [*] until resolved.  All such
  notifications and updates will be to the other party’s NOC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  During
  all other times.

  	
   

  	
  Problem

  	
   

  	
  Initial
  response to request within [*].

  

  Problem Resolution or plan for Problem Resolution within [*] of next business
  day.

  	
   

  	
  Responsible
  party will provide a proposed Problem Resolution in response to the Problem
  or Severe Problem.

  

  If the Problem Resolution is not immediate, responsible party will provide
  [*] on the first business day after the occurrence and then daily updates
  thereafter. All such notifications and updates will be to the other party’s
  NOC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  During
  all other times

  	
   

  	
  Severe
  Problem

  	
   

  	
  Initial
  response to request within [*].

  

  Problem Resolution or plan for Problem Resolution within [*].

  	
   

  	
  Responsible
  party will provide a proposed Problem Resolution in response to the Problem
  or Severe Problem.

  

  If the Problem Resolution is not immediate, responsible party will provide
  notifications every [*] on the first business day after the occurrence and
  then daily updates thereafter All such notifications and updates will be to
  the other party’s NOC.

  

 

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

                                                                                                                   Confidential

 

 

Page 5

 

 

 

	
  During
  normal business hours (8:00 a.m. — 6:00 p.m. PST Monday-Friday)

  	
   

  	
  Catastrophic
  Problem

  	
   

  	
  Initial
  response to request within [*].

  

  Problem Resolution or plan for Problem Resolution within [*].

  	
   

  	
  Responsible
  party will provide a proposed Problem Resolution to address the Catastrophic
  Problem. A Catastrophic Problem will result in escalation to the Primary
  business contact as identified in Article II above and as set forth in
  Section E below.

  

  If the Problem Resolution is not immediate, the responsible party will
  provide notifications every [*] until resolved. All such notifications and

  updates
  will be to the other party’s NOC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  During
  business hours or other times.

  	
   

  	
  Implementation
  Changes

  	
   

  	
  Within
  [*].

  	
   

  	
  Notification
  of or request for Implementation Changes should be sent to the Business
  Contacts outlined in Article II, section (i) and (ii)

  

 

 

 

        E.      Escalation Process.

 

        (i)     Each party hereby agrees to notify the other party’s NOC
within

                [*] of detecting any Problem,
Severe Problem, or Catastrophic

                Problem and to notify the
other party of a Minor Problem.

 

        (ii)    In the event that either party does not respond to the other

                party within the response time
from receipt of communication or

                detection of a Minor Problem,
Problem, Severe Problem, or

                Catastrophic Problem, then
each party may contact any of the

                personnel outlined in the
Contacts section, Article II.

 

        IV.     OPERATIONAL METRICS.

 

A.      Availability. Overture will maintain
[*]% Availability as measured by

        [*] production query logs, verified by
[*] with at least [*] intervals,

        reported [*]. In the event of
discrepancies between these two sources,

        Yahoo and Overture will work together
to determine root cause of such

        discrepancy. If Availability falls
below [*]%, Problem Resolution would

        occur, and the Cure Period (i.e., the
process under Article IV, Section

        G) would be in effect. Overture will
provide to Yahoo reasonable

        technical specifications for
redirecting traffic in case of temporary

        unavailability of an Overture search
data center.

 

B.      Capacity. Overture will provide capacity
based on Yahoo’s current

        forecast of [*] Yahoo Search Queries
per [*], supporting a peak rate of

        [*] (the “Peak Rate”), which is [*]
that of the average per day Yahoo

        Search Query rate. The parties
acknowledge that Yahoo’s volume forecast

        and “Peak Rate” will increase during
the Term. Overture will use

        commercially reasonable efforts
provide increasing capacity to

        accommodate such growth in a timely
fashion. [*]. Additionally, Overture

        will provide up to [*]% capacity
beyond these levels if so requested by

        Yahoo, provided that Yahoo gives a
minimum of [*] days prior written

        notice. Yahoo will notify Overture if
Yahoo anticipates an increase of

        Yahoo Search Queries by more than [*]%
in any calendar quarter. During

        the period of time that Overture is
working to accommodate the

        additional capacity, the Availability,
Response Times, and Timeouts will

        be

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

 

                                                                                                             
Confidential

 

 

Page 6

 

 

 

        renegotiated for the additional
traffic. [*]. Finally, [*].

        Notwithstanding the previous sentence,
if Yahoo delivers Yahoo Search

        Queries [*].

 

C.      Site monitoring. Overture will monitor
the performance of its

        obligations under this Agreement using
automated tools/utilities

        developed and/or configured by
Overture, or contracted with external

        third parties, to validate the
Availability of [*]% and response

        times. Additionally, Yahoo will
perform a [*] test for compliance with

        operational metrics and will share
such results with Overture on a [*]

        basis. If either party detects fault,
the discovering party will respond

        as defined in Article III, “Support
Procedures.”

 

D.      Response Times. Overture will comply with
the following operational

        metrics:

 

      [ ] INTERNAL OVERTURE RESPONSE TIME
shall [*].

 

      [ ] AGGREGATE RESPONSE TIME shall [*].
In the event of discrepancies

          between these two sources, Yahoo and
Overture will work together to

          determine root cause of such discrepancy.

 

      [ ] RESPONSE TIME ENHANCEMENT. The
parties mutually agree that they

          will employ reasonable efforts to
provide an Average Aggregate

          Response Time that is lower than the
stated number in this SLA.

          Specifically, the parties will
engage in good faith efforts to develop

          co-location infrastructure to
support enhanced operational metrics.

          Upon the mutually acceptable
completion of such co-location efforts,

          the parties agree to amend this SLA to improve the
operation metrics

          set forth in this Section IV.

 

E.      Critical Thresholds. Aggregate Response
Time that is greater than [*]

        will result in Timeouts (the “Critical
Threshold”).

 

F.      Problems and Critical Threshold. If
there is a Severe Problem or

        Catastrophic Problem, Yahoo may, at
its discretion, lower the Critical

        Threshold until a Problem Resolution
is completed. Additionally, if

        Severe Problem or Catastrophic Problem
results in no results being

        returned to Yahoo within any
threshold, Yahoo may, at its discretion,

        disable the Overture results until a
Problem Resolution is completed.

 

G.      Cure Period. Once the responsible party
is identified for a Minor

        Problem, Problem or Severe Problem,
according to Article III, Section B

        or C, the responsible party shall
identify and communicate a Problem

        Resolution or plan and shall comply
with the support table set forth in

        Article IV. The responsible party
shall use commercially reasonable

        efforts to implement a Problem
Resolution as soon as possible and in any

        event, within 8 business days, and to
implement Problem Resolution for

        Minor Problems as soon as possible
and, in any event, within 21 days. If

        the responsible party cannot implement
a Problem Resolution for the

        Problem or Severe Problem within 8
business days, the other party may

        deem such failure an Escalation Event
pursuant to Section 16.5(a) of the

        Agreement. Overture’s failure to
comply with the operational metrics set

        forth in Article IV, Sections A or D
will be deemed a Problem and will

        be subject to this Section G of
Article IV.

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

                                                                           
                                   Confidential

 

 

Page 7

 

H.      DNS. Overture uses DNS-based global load
balancing to direct search

        traffic to one of the several
facilities that serve Overture’s search

        traffic. Yahoo servers shall adhere to
the TTL in the Overture name

        server resolution response (no more
than [*]), periodically

        querying the Overture DNS servers to
determine the IP address of the

        Overture site where the Yahoo servers
must direct their query traffic.

        Overture will not be responsible for
satisfying requirements for

        Availability Response Times if TTLs
exceed [*].

 

I.      Maintenance Requirements. Normal
Maintenance occurs on [*], and will not

        exceed [*], and will not be counted in
the determination of Availability

        (Section A) and Response Times
(Section D) of this Section IV.

 

J.      Monitoring Servers. In addition to the
Yahoo’s servers monitoring

        Aggregate Response Times, Overture may
at its option place a monitoring

        server (or servers, one for each site)
proximal to the Yahoo production

        network to aid in the resolution of
connectivity and Network Response

        problems. Yahoo may place a monitoring
server (or servers, one for each

        site) proximal to the Overture
production network, also to aid in the

        resolution of connectivity and Network
Response problems.

 

K.      Reporting. Both parties will make
available upon request, in a format

        mutually agreed by both parties, a
report showing Availability, Internal

        Response Time and Aggregate Response
Time as measured under this SLA.

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

                                                                                                               
Confidential

 

 

Page 8

 

 

EXECUTION                                                                                                                                 
CONFIDENTIAL

EXHIBIT B

 

YAHOO SEARCH BOXES

 

 

[Graphic of Yahoo Search Box]

 

 

 

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

 

 

EXECUTION                                                                                    
                                             CONFIDENTIAL

 

EXHIBIT C

 

YAHOO SEARCH RESULTS PAGES

 

 

[Graphic depicts example of “mouse over”
Overture search result and

corresponding text box with result
description]

 

 

[Graphic depicts search results page on
Yahoo network, including implementation

and presentation of Overture search
results] 

 

 

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

 

EXECUTION                                                                                                                                 
CONFIDENTIAL

 

EXHIBIT D

 

         YAHOO! AND OVERTURE EXTEND
PAY-FOR-PERFORMANCE SEARCH AGREEMENT

OVERTURE
CONTINUES TO POWER SUCCESSFUL YAHOO! SPONSOR MATCHES PROGRAM

SUNNYVALE
& PASADENA, Calif. — (BUSINESS WIRE) — April 25, 2002 — Yahoo! Inc.
(Nasdaq:YHOO - news), a leading global Internet company, and Overture Services,
Inc. (Nasdaq:OVER - news), the world’s leading provider of Pay-For-Performance
search to Web sites across the Internet, today announced that they have
extended their relationship to a three-year agreement to distribute Overture’s
search listings through Yahoo! Sponsor Matches.

 

Under
the agreement, Overture will continue to provide Yahoo! with its editorially
reviewed Pay-For Performance search results from its growing base of 60,000
advertisers. This agreement is a renewal of a relationship that began in
November 2001. The terms of the agreement were not disclosed.

 

“We
will continue to leverage our strength as the leading search platform and are
extremely pleased to be working with an industry leader like Overture,” said
Terry Semel, chairman and chief executive officer, Yahoo! Inc. “Search and paid
listings are key growth areas for Yahoo! and with the strong success of Sponsor
Matches since its launch in November, we are looking forward to providing even
more comprehensive and enhanced search opportunities for advertisers and
consumers.”

 

Yahoo!
Sponsor Matches is an enhanced placement program that gives Web sites increased
visibility in Yahoo!’s search results, distinguished in clearly demarcated
sections. Since its inception, the Yahoo! Sponsor Matches program has shown
strong performance and experienced click-through rates considerably higher than
the industry average. Businesses are able to reach their targeted consumers
more effectively through enhanced placement in search results on keywords that
are relevant to their business and consumers are able to find services that are
relevant to their needs.

 

“We
are excited to announce this long-term partnership with one of the most popular
destination sites on the Internet,” said Ted Meisel, president and chief
executive officer, Overture Services, Inc. “It is clear that Yahoo! views
search as a strategic priority and we look forward to developing new search
products with them in the future.”

 

Overture’s
search results are generated by Overture’s 60,000 advertisers who bid for
placement on keywords that are relevant to their businesses. These listings are
carefully screened by Overture’s 100-person editorial team before being
distributed to the company’s affiliate partner network, which includes many of
the Internet’s most popular destination sites.

 

About
Yahoo!

Yahoo!
Inc. is a leading provider of comprehensive online products and services to
consumers and businesses worldwide. Yahoo! reaches more than 237 million
individuals worldwide each month, and is the No. 1 Internet brand globally. Headquartered
in Sunnyvale, Calif., Yahoo!’s global network includes 25 World properties and
is available in 13 languages.

 

About
Overture (formerly GoTo)

Overture,
(Nasdaq: OVER - news), formerly known as GoTo, is the leader in
Pay-For-Performance search on the Internet. The company created the market for
Pay-For-Performance search by redefining how businesses market online. In the
first quarter of 2002, Overture facilitated more than 587 million paid
introductions on a worldwide basis between consumers and its approximately
60,000 advertisers, who bid for placement on relevant search results and pay
Overture only when a consumer clicks on their listing. Following a rigorous
screening for user relevance by Overture’s 100-person editorial team, the
company distributes its search results to tens of thousands of sites across the
Internet, including America Online, Microsoft and Yahoo! - making it the
largest Pay-For-Performance search and advertising network on the Internet.
Overture is based in Pasadena, California, with offices in New York, San
Francisco and the UK, Germany and Ireland. For more information, visit
www.overture.com.

 

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

 

Yahoo!
and the Yahoo! logo are registered trademarks of Yahoo! Inc. Overture and
Pay-For-Performance are service marks of Overture Services Inc. All other names
are trademarks, registered trademarks or service marks of their respective
owners.

 

This
press release contains forward-looking statements within the meaning of the
federal securities laws. These forward-looking statements include without
limitation statements regarding Yahoo!’s users will continue to use Overture
search results, that advertisers and businesses will want to participate in
Sponsored Matches by seeking enhanced placement in the search results, that
businesses will be able to reach customers more effectively through enhanced
placement in search results, that the companies will develop new search
products. These forward-looking statements are subject to risks and
uncertainties that could cause actual results and events to differ materially.
These risks and uncertainties include, among others that the implementation may
not be successful or generate revenue for Overture or yield economic benefits
to Overture, that the development of new search products may not happen and if
it does happen that it will be successful or generate revenue for Overture or
yield economic benefits to Overture, the risk that Overture’s advertisers and
businesses may not want traffic from Yahoo! and the risk that Yahoo!’s users
may not want to use the Sponsor Matches product. For a discussion of other
risks that could cause actual results or events to differ materially from such
forward-looking statements, see the discussion of “Risks That Could Affect Our
Financial Condition and Results of Operations” in Overture’s 10-K filing with
the SEC for the period ended December 31, 2001. Overture undertakes no
obligation to update forward-looking statements to reflect events or
circumstances occurring after the date of this press release.

--------------------------------------

Contact:

 

     Overture Services, Inc.

     Al Duncan, 626/685-5714 (Media)

      al@overture.com

     Jim Olson, 626/229-5242

      jim.olson@overture.com

     Laurie Berman, 626/229-5368 (Investors)

      laurie.berman@overture.com

        or

     Yahoo!

     Diana Lee, 408/349-6501

      dianalee@yahoo-inc.com

        or

     Fleishman Hillard PR

     Nicole Waddell, 503/221-2368

      waddelln@fleishman.com

 

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

 

EXECUTION                                                                                                                                
CONFIDENTIAL

EXHIBIT E

 

[*]

 

[*]

 

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

 

 

EXECUTION                                                                                                        
                        CONFIDENTIAL

EXHIBIT F

 

OVERTURE REPORTS

 

MAIN
MONTHLY REPORTS:

 

      —    
Yahoo average CPC

 

      —    
Published site wide CPC (delivered in the report following

            Overture’s quarterly announcement
of this number)

 

      —     Yahoo Search
Queries asked of Overture (number)

 

      —    
Total Actual Clicks delivered from Yahoo (number)

      [*]

 

SOURCE
OF QUERY REPORTS:

 

For
each unique source of Yahoo Search Queries (e.g., “next” Yahoo Search Results
Pages) that Yahoo “tags” pursuant to Section 8.4(a), Overture will provide the
following reports:

 

      —    
Average CPC for that source

 

      —    
Yahoo Search Queries asked of Overture from each source (number)

 

      —    
Total Actual Clicks delivered from Yahoo from each source (number)

      [*]

 

      —    
Total Gross revenue earned by Yahoo from each source

 

      —    
All of the above in a cumulative manner annually and over the Term

            (totals/averages across the term,
as distinct from the applicable

            Quarter)

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

 

1

 

 

EXECUTION                                                                                                                                 CONFIDENTIAL

EXHIBIT G

 

EXCLUDED TERMS

 

[*]

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

 

 

EXECUTION                                                                                                                                
CONFIDENTIAL

EXHIBIT H

 

OVERTURE RESTRICTED COMPANIES

 

[*]

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

 

 

EXECUTION                                                     
                                                                           CONFIDENTIAL

EXHIBIT I

 

Subject:
Overture Signs Long-Term Yahoo! Agreement

 

Dear
Overture Advertiser:

 

Overture
is excited to announce the renewal of our Pay-for-Performance(TM) search
agreement with Yahoo! for the next three years. We are pleased to have secured
long-term agreements with two of the most popular destinations on the Internet
— Yahoo! and MSN. These agreements give Overture advertisers an opportunity to
reach a majority of all active Internet users.

 

Overture
search results will continue to appear on Yahoo at www.yahoo.com. As the
leading provider of comprehensive online products and services, Yahoo! reaches
millions of users and is the number one Internet brand globally.

 

Earlier
today we announced that our U.S. search distribution relationship with America
Online has ended, including AOL, AOL.com, Compuserve and Netscape (scheduled to
end in August). Overture will continue to provide its search results to AOL
Europe’s Internet properties in the UK, Germany and France.

 

The
strength of our affiliate network, which includes, Yahoo!, MSN, AltaVista,
Lycos, Infospace, AskJeeves, and CNET, allows Overture to deliver the quality
and quantity of leads you’ve come to expect from us.

 

We
are committed to your success and look forward to continuing to deliver the
highest return on your advertising investment.

 

Sincerely,

 

 

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

 

EXECUTION                                                                                                                                
CONFIDENTIAL

EXHIBIT J

 

OVERTURE DISQUALIFIED ENTITIES

 

[*]

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

 

EXECUTION                                                                                                                                 CONFIDENTIAL

 

EXHIBIT K

 

ESTIMATED YAHOO PAYMENT AND GUARANTEED
FIXED PAYMENT ADJUSTMENT PROCESS

 

[*]

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

 

 

EXECUTION                                                                                                                               
CONFIDENTIAL

EXHIBIT 8.4

 

YAHOO
REPORTING:

Yahoo
will provide monthly Yahoo Search Query reports that include the following
categories of information:

 

      [*]

 

YAHOO
SEARCH QUERY, IMPRESSION AND `BOT TRAFFIC VERIFICATION INFORMATION:

Yahoo
will provide Overture with the following information in a data field at the
time-of-search to enable Overture to develop its own reasonable estimates of
searches performed by `bots as a percentage of Yahoo Search Queries and
Impressions:

 

      [*]

 

Yahoo
will be entitled to encrypt such information so long as the encryption
algorithm is consistent (allowing Overture to verify valid searches performed
by human users in a consistent manner that is time-independent). Accordingly,
Yahoo will provide Overture with six weeks notice prior to a change in the
encryption data, which preserves the utility of the data for the purpose of
verifying valid Impressions and Search Queries.

 

 

*
Certain information on this page has been omitted and filed separately with

  the Commission. Confidential treatment has
been requested with respect to the

  omitted portions.

 

 

 

1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00046-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00046-of-00352.parquet"}]]