CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.
AMENDMENT TO
DISTRIBUTION AGREEMENT
This
Amendment to Distribution Agreement (this “ Amendment
”), effective as of October 29, 2005 (“
Amendment Effective Date ”), is made and entered into
by and between America Online, Inc. (“ AOL ”), a
Delaware corporation, with its principal offices at 22000 AOL Way,
Dulles, Virginia 20166 on the one hand, and Homestore, Inc., a
Delaware corporation, with offices at 30700 Russell Ranch Road,
Westlake Village, California 91362, on the other hand (
“HS” ). Defined terms that are used but not
defined herein shall be as defined in the Distribution Agreement
between AOL and HS effective as of June 30, 2004 (as amended,
the “ Agreement ”).
The
Parties hereby agree as follows:
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1.
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[*] Floor . Section 1.2 of the Agreement
is replaced in its entirety with the following: “Failure to
achieve any particular number of [*] during the Term or any
individual quarter therein shall not result in a breach of this
Agreement or any other liability to AOL hereunder, except that in
the event that AOL delivers less than [*] ( [*] )
[*] in any quarter during the Term, then, as HS’ sole
remedy, AOL shall provide HS with a credit against the next
quarter’s payment in the amount equal to the number of
[*] constituting the shortfall from [*] ( [*]
) multiplied by [*] Cents ($ [*] ), up to a shortfall
of [*] ( [*] ) [*] in any quarter, and
[*] Cents ($ [*] ) per [*] for a shortfall in
excess of [*] ( [*] ) [*] in that quarter (the
“ Shortfall Amount ”); provided that if a
shortfall occurs in the final quarter of the Term, then AOL shall
either provide HS with a credit against payments owed to AOL (in
the event HS owes any amounts to AOL), or pay to HS cash equal to
the Shortfall Amount.”
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2.
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Upside Payments
. In Section 1.3 of
the Agreement, the table contained therein shall be replaced in its
entirety with the following:
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[*]
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CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.
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1
The following
sentence shall be added to Section 1.3: “The Parties
agree that no payments pursuant to this Section 1.3 shall be
due pursuant to the Agreement as in effect prior to the Amendment
for the period from October 1 through the Amendment Effective Date.
The Parties agree that HS shall pay to AOL amounts calculated
pursuant to this Section 1.3, as amended by the Amendment, for
the Customized Site [*] delivered during the period
commencing October 1, 2005.”
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3.
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Promotion Plan.
. The first sentence of
Section 1.1.1 is hereby replaced in its entirety with the
following: “AOL shall provide HS with the Promotions set
forth on Exhibit A , attached hereto and made a part
hereof (the “ Promotion Plan ”),
including Promotions in the single channel or equivalent area that
is primarily focused on real estate in each of the AOL.com, AOL
Service, Netscape.com, and CompuServe Service, and the single page
in AOL CityGuide that is primarily focused on real estate (such
channels or areas and page being collectively referred to as the
“ Real Estate Channel ”), as depicted for
the AOL Properties in the screen shots attached hereto as
Exhibit G , which shall be subject to the provisions of
Section 1.4.”
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The
second sentence of Section 1.1.1 is hereby deleted in its
entirety and replaced with the following sentence: “HS
acknowledges that as of the Amendment Effective Date, AOL has plans
to develop and launch a new design for the Real Estate Channel
within the AOL Properties, although under such current plan, AOL
does not expect that the new design would be launched until
approximately [*] (the ‘ Launch Date
‘).”
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The
third sentence of Section 1.1.1 is hereby deleted in its
entirety and replaced with the following sentence: “From the
Amendment Effective Date until the actual date of launch of such
new design (whether or not such date is on the Launch Date), AOL
shall (i) continue to provide Promotions on the AOL Properties
that, at a minimum, are substantially similar in quantity and
quality to those integrated Promotions provided by AOL to HS
pursuant to this Agreement in the Real Estate Channel and personal
finance channel; and (ii) AOL will apply commercially
reasonable efforts to work with HS to provide HS with additional
Promotions
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4.
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White Label Site. HS shall collaborate with AOL
on the development of the White Label site (as defined in the
Programming Plan). [*]
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5.
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Key Indicators
.
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a.
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The
following shall replace subsection (b) of Section 5.2.1
of the Agreement in its entirety: “(b) the maintenance
of listings of apartments within [*] Rental Properties, at
least [*] percent ( [*] %) of which shall be spread across
the top [*] ( [*] ) Metropolitan Statistical Areas,
as determined by the U.S. Bureau of the Census from time to time in
the United States.”
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b.
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The
following shall be added as a new subsection (d) of
Section 5.2.1 of the Agreement: “(d) The
maintenance of listings for at least [*] new home
communities, at least [*] percent ( [*] %) of which
shall be spread across the top [*] ( [*] )
Metropolitan Statistical Areas, as determined by the U.S. Bureau of
the Census from time to time within the United States, shall also
be a Key Indicator.”
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[*]
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CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.
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2
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c.
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The
following shall be added to the end of Section 6.3 (HS
Reporting): “Additionally, HS will supply AOL with a report
once annually which details HS’ performance in maintenance of
the Key Indicators described in Section 5.2.1 above; provided,
however, that AOL may also request a report no more than once per
quarter in the event it has a reasonable belief that HS has fallen
substantially below the Key Indicator thresholds. HS shall deliver
the first report on Key Indicators to AOL no later than thirty
(30) days after the date of last signature
below.”
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7.
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Payment . The date of November 1, 2005
is deleted from Section 6.1 of the Agreement. The following is
added to Section 6.1 of the Agreement: “As further
consideration for the services provided by AOL pursuant to this
Agreement, HS agrees to pay AOL an aggregate of [*] Dollars
($ [*] ), consisting of eight (8) payments of
[*] Dollars ($ [*] ) each, no later than each of the
following dates: November 1, 2005, February 1, 2006,
May 1, 2006, August 1, 2006, November 1, 2006,
February 1, 2007, May 1, 2007, and August 1,
2007.”
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8.
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Omniture Tracking
. The following shall be
added to the Agreement as a new Section 6.7: “HS shall
use commercially reasonable efforts to implement Omniture tracking
codes for AOL on the Customized Site no later than
December 31, 2005. HS shall work in good faith and cooperate
with AOL and with Omniture to promptly resolve any technical issues
that impact the collection or validity of any data in connection
with the Omniture tracking codes on the Customized Site. HS
acknowledges and agrees that it shall not have access to or collect
information from the extranet tool for AOL’s Omniture
tracking codes on the Customized Site (the “ Omniture
Data ”). Any Omniture Data provided to HS shall be
mutually agreed and provided by AOL in reports. Unless otherwise
agreed by the parties, the Omniture Data shall not be used to
determine the [*] or Customized Site [*] for purposes
of Section 1.3.
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9.
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Term . The first three sentences of
Section 7.1 are hereby replaced in their entirety with the
following: “Unless earlier terminated as set forth herein,
the Term of this Agreement shall end on September 30,
2007.”
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10.
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Search Ad Placement
. Delete Exhibit A
from the Agreement in its entirety and substitute the
Exhibit A attached to this Amendment.
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11.
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AOL Apartments
Classifieds .
Delete Section 1.1.2 in its entirety.
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12.
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Programming Plan
. The content of
Exhibit C of the Agreement (Programming Plan) is replaced in
its entirety with the programming plan contained in Attachment 1 of
this Amendment.
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13.
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Additional Provisions
. This Amendment is
supplementary to and modifies the Agreement. Nothing in this
Amendment should be interpreted as invalidating the Agreement, and
provisions of this Agreement will continue to govern relations
between the Parties insofar as they do not expressly conflict with
this Amendment. This Amendment may be executed in counterparts,
each of which shall be deemed an original and all of which together
shall constitute one and the same document.
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[Signature page follows.]
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[*]
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CERTAIN
INFORMATION IN THIS EXHIBIT HAS BEEN OMITTED AND FILED SEPARATELY
WITH THE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.
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3
IN WITNESS
WHEREOF, the Parties hereto have executed this Amendment as of the
Amendment Effective Date.
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AMERICA
ONLINE, INC.
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HOMESTORE,
INC.
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/s/ Tom
Newman
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By:
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/s/ Allan P.
Merrill
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Tom
Newman
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Name:
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Allan P.
Merrill
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SVP,
AMN
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Title:
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EVP
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10-28-2005
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Date:
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10-29-2005
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4
ATTACHMENT 1
PROGRAMMING PLAN
General
Programming Overview and Requirements:
HS and its
family of brands (e.g., Realtor.com, Rent.net, Homebuilder.com)
will provide the editorial content and functionality set forth
below and otherwise mutually agreed by the Parties from time to
time for integration within the AOL Properties. The editorial
content provided by HS will supplement existing content offerings
provided by other current channel partners and may primarily be
used as rotating feature and how-to articles. HS will provide
features that are timely, reflecting current trends and interests,
and appropriate for the audience of each AOL property. All Content
will be updated at least as frequently as the industry standard set
by other leading Content providers in the relevant category and in
accordance with the schedule set forth below where specified. HS
will provide to AOL any Content optimized for broadband access
which is available on the Generally Available Sites.
Customized Sites and Customized
Programming
HS shall
deliver the programming specified below on each version of the
Customized Site co-branded with the applicable AOL Property.
AOL’s provision of the Promotions specified in Exhibit A
shall be contingent on HS providing the following Content. If any
such Content is unavailable, AOL shall be relieved of the
obligation to provide any Promotion related to such Content from
the date such Content becomes unavailable until [*] (
[*] ) days after such Content again becomes available. In
the event that AOL does not deliver any Promotions in accordance
with the foregoing sentence, AOL shall be relieved of a
proportional amount of the [*] Floor.
General
Content & Functionality Requirements
:
HS will provide
the following tools, functionality and Content:
Logos for
the following HS brands in EPS format :
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Homestore.com
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Realtor.com
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Rent.net
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Homebuilder.com
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