Back to top

SECOND AMENDMENT TO AMENDED AND RESTATED PFP ADVERTISER DISTRIBUTION AGREEMENT

Advertising or Marketing Agreement

SECOND AMENDMENT TO AMENDED AND RESTATED PFP ADVERTISER DISTRIBUTION AGREEMENT | Document Parties: Idearc Media Corp | Idearc Media LLC | Localcom Corporation | Verizon Directories Corp You are currently viewing:
This Advertising or Marketing Agreement involves

Idearc Media Corp | Idearc Media LLC | Localcom Corporation | Verizon Directories Corp

. RealDealDocs™ contains millions of easily searchable legal documents and clauses from top law firms. Search for free - click here.
Title: SECOND AMENDMENT TO AMENDED AND RESTATED PFP ADVERTISER DISTRIBUTION AGREEMENT
Date: 3/5/2009
Industry: Advertising     Sector: Services

SECOND AMENDMENT TO AMENDED AND RESTATED PFP ADVERTISER DISTRIBUTION AGREEMENT, Parties: idearc media corp , idearc media llc , localcom corporation , verizon directories corp
50 of the Top 250 law firms use our Products every day

Exhibit 10.3

Portions of this exhibit indicated by “***” have been omitted pursuant to the Company’s request for confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934, as amended, and the omitted material has been separately filed with the Securities and Exchange Commission.

SECOND AMENDMENT
TO

AMENDED AND RESTATED PFP ADVERTISER
DISTRIBUTION AGREEMENT

     This Second Amendment to Amended and Restated PFP Advertiser Distribution Agreement (“ Second Amendment ”) is effective as of the 1st day of March, 2009 (the “ Second Amendment Effective Date ”) and entered into by and between Local.com Corporation (f/k/a Interchange Corporation), a Delaware corporation, whose principal offices are located at One Technology Drive, Building G, Irvine CA 92618 (“ Local ”), and Idearc Media LLC (f/k/a Idearc Media Corp., f/k/a Verizon Directories Corp.), a Delaware corporation, with its principal place of business located at 2200 West Airfield Drive, D/FW Airport, Texas 75261 ( Idearc ), to amend the Amended and Restated PFP Advertiser Distribution Agreement effective as of March 1, 2007 and entered into by and between Local and Idearc, as amended (the “ Agreement ”).

1. Amendments . The Agreement is hereby amended, as of the Second Amendment Effective Date, as follows:

 

a.

 

Addition of Fixed Fee Advertisements . Section 1(e)(Confidential Information) is amended to change the reference to “the Pay for Performance Advertisements” to “one or more PFP Ads or Fixed Fee Ads”. Section 1(dd)(Results Pages) is amended to change the reference to “one or more Pay for Performance Advertisements” to “one or more PFP Ads or Fixed Fee Ads”. The fourth sentence of Section 3(f)(i)(1) and the third sentence of Section 3(f)(i)(2) are amended to change the references to “but expressly excluding each and every PFP Ad” to “but expressly excluding each and every PFP Ad and each and every Fixed Fee Ad”. Section 3(f)(vi) is amended to change the references to “Pay for Performance Advertisements” to “PFP Ads and Fixed Fee Ads”. Section 6(a)(iv) of the Agreement is amended to change the reference to “Pay for Performance Advertisement(s)” to “PFP Ad(s) and Fixed Fee Ad(s)” and to change the reference to “Pay for Performance Advertisements” to “PFP Ad(s) or Fixed Fee Ad(s)”. Section 9(c) is amended to change the reference to “Pay for Performance Advertisements” to “PFP Ads and Fixed Fee Ads.”

 

 

b.

 

Definitions .

 

i.

 

Pay Per Click Advertisements . Section 1(x) is amended to read in its entirety as follows:

 

 

 

 

Pay Per Click Advertisements ” or PPC Ads means, collectively, (1) an advertising product for which advertisers pay Idearc a specified amount (“ PPC Bid Amount ”), pursuant to Idearc’s policies, for each Qualified Click, and (2) an advertising product obtained by Idearc from a third party and for which Idearc earns a specified amount for qualified clicks.

 

***

 

Portions of this page have been omitted pursuant to a request for confidential treatment and filed separately with the Securities and Exchange Commission

 


 

 

ii.

 

Search Results . Section 1(ll) is amended to read in its entirety as follows:

 

 

 

 

“Search Results” shall mean the PFP Ads, Fixed Fee Ads (and such other content as available within the then-current version of the “Superpages.com XML API and Display Requirements” document) provided by Idearc to Local in response to Queries, as defined above, on a Query-by-Query basis.

 

 

iii.

 

Additional Definitions . Section 1 is amended to add the following definitions, as subsections (vv), (ww) (xx) and (yy), respectively:

 

 

 

 

“Fixed Fee Ad” means each of, and “ Fixed Fee Ads ” means all of, the advertisements (including all content contained therein), which may or may not contain active links, for which the advertiser pays Idearc a specified flat fee per month.

 

 

 

 

LC Local Query ” means each of, and “ LC Local Queries ” means all of, the Local Queries initiated through a Local Hosted Search Form on the PG Local-Owned Web Site or through a Local Hosted Search Form on an LC Co-Branded Site or through an LC TP Search Form.

 

c.

 

Term; Renewal . Section 2, first sentence, is amended to read in its entirety as follows:

 

 

 

 

Unless sooner terminated in accordance with the terms of this Agreement, this Agreement will commence on the Amended Effective Date and will continue until March 31, 2010 (the “ Second Amendment Initial Term ”), after which it will automatically renew and extend on a month to month basis until terminated in accordance with this Agreement (collectively, the “ Term ”). Either party may terminate this Agreement after it converts to a month to month term for any reason or no reason upon sixty (60) days prior written notice to the other party.

 

 

d.

 

Local’s Obligations . Section 3(f)(i)(1)(a) is amended to read in its entirety as follows:

 

 

 

 

“display (to the end user who initiated such Local Query) the PFP Ads and Fixed Fee Ads contained within Search Results resulting from such Local Query on each applicable resulting Local Results Page of the Local.com Web Site, in accordance with the rules set forth on Exhibit H-1 to this Agreement (the “ Local.com Results Page Display Rules ”), without altering the content of the PFP Ads or the Fixed Fee Ads, and”

 

***

 

Portions of this page have been omitted pursuant to a request for confidential treatment and filed separately with the Securities and Exchange Commission

2


 

 

e.

 

Local’s Obligations . Section 3(f)(i)(2)(a) is amended to read in its entirety as follows:

 

 

 

 

“display (to the end user who initiated such Local Query) the PFP Ads and Fixed Fee Ads (contained within Search Results provided by Idearc as a result of such Local Query) on the Local Results Pages of the particular Local Web Site from which such Local Query was initiated (or, to the extent such Local Query producing such PFP Ads and/or Fixed Fee Ads was initiated on an LC Third Party Web Site, on the Local Results Pages of the LC Co-Branded Site corresponding to such LC Third Party Web Site), in accordance with the rules set forth on Exhibit H-2 to this Agreement (the “ LC Web Sites – Results Page Display Rules ”), without altering the content of the PFP Ads or the Fixed Fee Ads, and”

 

 

f.

 

Local’s Obligations . Section 3(f)(i)(2) is amended to add the following sentence at the end thereof:

 

 

 

 

Local shall ensure that *** featured advertising box (labeled “Featured Sponsors” or labeled with similar text) appears on each Local Results Page (of the applicable LC Web Site) resulting from an LC Local Query, above the fold, and before any other featured advertising space (the “ LC First Featured Advertising Box ”), provided that the applicable third-party partner of Local permits Local to include an LC First Featured Advertising Box on such Local Results Pages, which LC First Featured Advertising Box will initially appear as set forth in Exhibit G (Mock-Up of Results Page on LC Web Sites).

 

 

g.

 

License Grants; Covenants — Idearc . Section 4(a) is amended to add the following sentence:

 

 

 

 

Notwithstanding anything to the contrary, nothing contained in this Section 4(a) will be construed to give Local the right to (and Local shall not) display any Fixed Fee Ad on any Local Business Detail Page or any Additional Local Page on the Local.com Web Site or any LC Web Site (or at any other page or position of the Local Network, except (i) in the First Featured Advertising Box in accordance with the Local.com Results Page Display Rules and the terms and conditions of this Agreement and (ii) in the LC First Featured Advertising Box in accordance with the LC Web Sites – Results Page Display Rules and the terms and conditions of this Agreement).

 

 

h.

 

Compensation — Revenue Share . Section 6(a)(i)(1) is amended to change the reference to “Section 6(a)(i)(2)” to “Section 6(d)”. The third sentence of Section 6(a)(i)(1) is amended to read in its entirety as follows:

 

 

 

 

For purposes of this Agreement, (a) “ Total Revenue ”, with respect to each calendar month, means *** of (i) all fees billed by Idearc to its Bid Program

 

***

 

Portions of this page have been omitted pursuant to a request for confidential treatment and filed separately with the Securities and Exchange Commission

3


 

 

 

 

advertisers for Qualified Clicks (occurring during such calendar month) on PPC Ads, (ii) all fees earned by Idearc from a third party for Qualified Clicks (occurring during such calendar month) on PPC Ads obtained by Idearc from a third party and for which advertisers pay such third party and (iii) the PPC Equivalent Bid Amount for each Qualified Click (occurring during such calendar month) on a PfC Ad, each to the express exclusion of any “minimum monthly fees” or other fees due to Idearc from its advertisers that are not applied towards PPC or PfC fees for Qualified Clicks, and (b) “ Local Revenue ”, with respect to each calendar month, means *** of (i) all fees billed by Idearc to its Bid Program advertisers for Local Qualified Clicks (occurring during such calendar month) on PPC Ads, (ii) all fees earned by Idearc from a third party for Local Qualified Clicks (occurring during such calendar month) on PPC Ads obtained by Idearc from a third party and for which advertisers pay such third party and (iii) the PPC Equivalent Bid Amount for each Local Qualified Click (occurring during such calendar month) on a PfC Ad, each to the express exclusion of any “minimum monthly fees” or other fees due to Idearc from its advertisers that are not applied towards PPC or PfC fees for Local Qualified Clicks. Idearc shall not include any ads, other than PFP Ads and Fixed Fee Ads, in Search Results provided to Local under this Agreement, without Local’s prior written consent.

 

 

i.

 

Compensation – Revenue Share . The Agreement is amended to delete Section 6(a)(i)(2) (Time and Manner of Payment) and Section 6(a)(ii)(2)(Time and Manner of Payment) in their entirety.

 

 

j.

 

Compensation — Revenue Share . Section 6(a)(ii)(1) is amended to read in its entirety as follows:

 

 

 

 

Amount . With respect to each calendar month of this Agreement (beginning with March 1, 2009), Idearc will pay Local *** of the Network Revenue relating to such calendar month (the “ Network PFP Revenue Share ”), in accordance with the provisions of Section 6(d), below. For purposes of this Agreement, “ Network Revenue ”, with respect to each calendar month, means *** of (i) all fees billed by Idearc to its Bid Program advertisers for Network Qualified Clicks (occurring during such calendar month) on PPC Ads displayed on a Network Results Page in accordance with the terms and conditions of this Agreement, (ii) all fees received by Idearc from a third party for Network Qualified Clicks (occurring during such calendar month) on PPC Ads obtained by Idearc from a third party and for which advertisers pay such third party and (iii) the PPC Equivalent Bid Amount for each Network Qualified Click (occurring during such calendar month) on a PfC Ad displayed on a Network Results Page in accordance with the terms and conditions of this Agreement, each to the express exclusion of any “minimum monthly fees” or other fees due to Idearc from its advertisers that are not applied towards PPC or PfC fees for Network Qualified Clicks. For example, if Network Revenue

 

***

 

Portions of this page have been omitted pursuant to a request for confidential treatment and filed separately with the Securities and Exchange Commission

4


 

 

 

 

relating to May 2009 is of a total amount of ***, Idearc will pay Local ***, in accordance with the provisions of Section 6(d), below).

 

 

k.

 

Compensation – Miscellaneous. The fourth sentence of Section 6(a)(iii) of the Agreement is amended to read in its entirety as follows:

 

 

 

 

“Local acknowledges and agrees that Idearc will receive any and all remaining proceeds arising out of the PFP Ads and Fixed Fee Ads and the aforementioned compensation (specified in Sections 6(a)(i)(1) and 6(a)(ii)(1)) is the sole compensation due to Local, except as expressly set forth in Section 6(b) or any other section of this Agreement.”

 

 

l.

 

Compensation – Enabled Search Fees . The Agreement is amended to add Section 6(b), to read in its entirety as follows:

 

 

 

 

Enabled Search Fees .

 

i.

 

Initial Amount; Miscellaneous . Idearc will pay Local *** for each Enabled Search (as defined below), ***

 

 

ii.

 

Benchmarking Related to Fixed Fee Ads . For the period beginning on the date on which Idearc first includes a Fixed Fee Ad in Search Results provided to Local in response to a Local Query through the date that is *** thereafter, Idearc shall determine (a) the percentage of Local Queries in response to which Idearc provides Local with Search Results that contain only Fixed Fee Ad(s) during such period (the “ Fixed Fee Only Benchmark Percentage ”, (b) the percentage of Local Queries in response to which Idearc provides Local with Search Results that contain PFP Ad(s) and Fixed Fee Ad(s) during such period, and (c) the percentage of Local Queries in response to which Idearc provides Local with Search Results that contain only PFP Ad(s) during such period. In the event that, (a) during any calendar month during the Term of this Agreement, the percentage of Local Queries in response to which Idearc provides Local with Search Results that contain only Fixed Fee Ad(s) is greater than the Fixed Fee Only Benchmark Percentage plus *** (the “ Fixed Fee Threshhold Percentage ”) and (b) the percentage of Local Queries in response to which Idearc provides Local with Search Results that contain only Fixed Fee Ad(s), over the *** period following Idearc’s receipt of written notice from Local that the Fixed Fee Threshhold Percentage was exceeded, is not less than or equal to the Fixed Fee Threshhold Percentage, then Idearc and Local will renegotiate the amount of the Enabled Search Fee and/or the Local PFP Revenue Share for Local Queries. Idearc’s determination and calculation of the Fixed Fee Only Benchmark Percentage, the percentage of Local Queries in response to

 

 
SITE SEARCH

AGREEMENTS / CONTRACTS

Document Title:

Entire Document: (optional)

Governing Law:(optional)


Try our advanced search >>
 

CLAUSES

Search Contract Clauses >>

Browse Contract Clause Library>>

Get Email Updates
Email:
This is only a partial view of this document. We have millions of legal documents and clauses drafted by top law firms. learn more search for free browse for free learn more